The Current Market Scenario of Beverage Industry in Bangladesh

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The Current Market Scenario of Beverage Industry in Bangladesh Origin of the study The report has been prepared as a pre requirement for the completion of Ph.D program. This report presents Beverage industry which needed to do a market research in Bangladesh to find out their position in the market by analyzing the current scenario of beverage industries in Bangladesh. This report has been supervised and approved by Dr.Salim Bhuiyan, Academic Director American World University Bangladesh Campus. Rational of the Study To survive in today’s business it is very important to have competitive edge to out skirt the competitors. This edge can be achieved through strategic implementation. The intent of this study is to develop some applicable strategies which will establish the new brand strongly in the market and thus will enjoy substantial market share. The purpose of the Study was to gather necessary information from the market to adopt an appropriate strategy improving the market share of CSDs. On the other hand tries to find out the market share of the companies, target market, market segments market positioning, competitors strengths and position, product development and product modifications, analysis of consumer group and consumer buying behavior, overall marketing strategies, marketing programs and marketing decisions. Objective of the Study Every task has some objectives. The objectives of this study are as follows: Broad Objective: To device the overall marketing programs of the company and to discover the findings of company’s strategic lacking that can helpful for the company to take specific marketing decisions. The special trend line for broad objectives areGeneral (consumer) Brand awareness and source of awareness Consumption habits with regard to CSDs Reasons for drinking CSDs Brand preferences and consumer likes and dislikes Brand switching and the reasons for the same Identified attributes associated with different brands Place of consumption of CSDs Preference of pack by place of consumption Time of consumption Consumption occasions CSDs purchase habits Ad awareness Demographic profile of consumers by income ,education, profession Media habits /preferences (print/ radio/ television/ POS/ outdoor)


Radio and television pogramme prcfcrnccs B. Specific objectives: The specific objectives in accordance with broad objectives are: To focus on the mission of the company. To focus on the production procedure and system of the company. To focus on the future plan of the company. To focus on the industry situation and environment of the company. To focus on the competitors stayed in the soft drink market. To focus on customer buying behavior and buying decisions. To focus on the target market and market segments. To focus on the marketing programs and plan. And the special trend lines areConsumer To determine brand awareness To evaluate brand image (mage mapping ) To determine consumption habits and pattern (frequency ,quantity, time, etc,) To evaluate brand flavor and pack size preference To understand brand switching tendencies/patterns To assess price sensitivities To determine consumer profile by income, age, education, profession and media habit. Trade To evaluate GOBAL’s distribution strategy and policies against competition To make an assessment of the acceptance by the trade of sales promotion schemes To evaluate stocking habits and practices Scope of the Report We use questionnaire survey on the 5 areas of Dhaka city those are Dhanmondi, Gulshan, Mirpur, Uttara, and Old Dhaka. In this section we achieve a lot of knowledge about customers buying behavior. Earn very remarkable information about present market condition on Beverage from consumers, retailers and also business markets. The Study focused both on consumers of CSDs to understand the pull effect and on retailers who stock CSDs to understand the push effect with regrind to the promotion and distribution of the product. Geographic Scope Carbonated soft drinks market mainly divides into 6 (six) regions. These are Dhaka metro, Dhaka outside, Chittagong, Sylhet, Kulna and Bogura. Among these Dhaka metro region consumers the 60% of the total sales, so for this lucrative market, this survey is done on the Dhaka metro region. To get more accurate data the survey is done from different parts of Dhaka city.


Methodology Research Design Before going into an in-depth research, a conceptual structure was visualized under which the whole study was conducted. to find out the current market scenario of Beverage industry in. Hence the research is an exploratory type of research. ] In order to conduct this study three kinds of questionnaire were designed. They wereQuestionnaires for Retailers. Questionnaires for Consumers. Questionnaires for Company Sampling Techniques For market survey in Dhaka City the operation area were divided into 5 parts. These 5 parts of the city represented 5 major sites of Dhaka City. From the 5 sites, survey was done in 100 confectioneries, including shops, restaurants, hotels and some other places where beverage products had found. Therefore, the sample size for market share was 100 and it was chosen randomly. For consumer survey, the sample size was 50. Every person answered the questions and filled the questionnaire by their own. Sampling procedure a)

Population:

For the field survey, the population was all the outlets and the final consumers of Dhaka City, b. Sample size The sample size was specified by All Beverage companies. Outlets: 100 Final consumer: 100 c.

Sample Selection.

For the field survey, Dhaka City was divided into five zones to get a better view of the demand for each zone, Furthermore. From each zone twenty outlets were selected randomly. The zones are given below, Zone 1: Gushan, Banani, Baridhara, Badda. Zone 2: Uttara, Nikunja, Khilkhat. Zone 3: Mirpur-(10, 14) Kachukhet, Kafrul, Shawrapara. Zone 4: Dhanmondi, Jigatula, Mohammadpur. Zone 5: Narinda, Lalbag, Azimpur. Each zones had twenty outlets. And 20 outlets were of four types. a) Grocery b) Departmental store c) Confectionary d) Fast food shops In the report the zones will resemble respected areas.


For the consumer survey, the samples were randomly selected. It was conducted according to my convenience. Data Collection Data is gathered from information, which is the foundation of research. The search for answers to research questions call for collection of data the data collection beings after a research problem has been identified and research design/plan chalked out while decaling about the method of data collection to be used for the study data are facts, figures and other relevant materials past and present serving as bases for study and analysis. Data collection technique Data regarding the project were collected from the distributors’ point and retail stores by talking with them and their personnel. For all the respondents data was collected through personnel interview, structure and non-structure questionnaire as well. Data collection instruments For the field survey, the questionnaire was designed with both open-ended and close ended structured questionnaire and observation. In questionnaire different scale for collecting data from the distributors and retailers was used. Graphic ratting scale and percentage scales were used to collect data from the respondent. Sources of Information The information used in writing this report has been collected from both primary and secondary sources: Primary data: Primary data are generated when a particular problem at hand is investigated by the researchers employing mail questionnaires, telephone surveys, personal interviews, observations and experiment. Secondary data: Secondary data’s are previously collected and developed for some purpose other than helping to solve the problem at hand. Secondary data tends to cost substantially less than primary data and can be collected in less time. We collected internal and external secondary data. Internal secondary data are available within the organization, whereas external secondary data are provided by source outside the organization. Our internal secondary data collected from Global Beverage Com. Ltd. and External secondary data were collected from the company brochures, journals, newspaper reports, magazines, internet (websites), catalog, company purchase order, yellow pages and research reports. Processing the data Once the data has been recorded the processing of data begins. This includes the functions of coding and editing. Editing involves the reviewing the data forms as to legibility consistence


and completeness. Coding involves establishing categories for responses and groups of responses, so that numerals can be used to represent. My primary data owing to the pressure of interviewing questionnaire were written down immediately, and hence was not systematic. After processing of the data allows organized and then prepare it for computer analysis. Data Analytical Tools To present the collecting data I have the following analytical tools: Table Chart iii) Graph etc. Respondent Selection Technique First, a list of areas with likely concentration of target respondents was selected randomly from the exhaustive list of areas in each centre. Then, in each such are, a convenient starting point was selected. From this point any of the first three households would be selected randomly. The household, thus selected, was considered to be the first contacted household. From then on every third household was contacted for locating the target respondent. House gaps were given mainly to achieve greeted area coverage. From one starting point not more than eight target respondents were selected. There were therefore multiple starting points within a selected area, making the survey more representative than it would have been by selecting a single starting point. Respondent Profile Consumer Male-female ratio Age groups

: :

50.50 12-15 (21%) 16-19 (30%) 20-24 (11%) 25-29 (13%) 30-34 (13%) 35-39 (12%)

Questionnaire Survey We survey the following age group: 6-12, 13-19, 20-26, 27-33, 34-40, 41 and above. Also survey on dealers, retailers, and business market. We find out their performance for soft drinks. It helps us to collect information on what customer think about soft drinks, is it reasonable price for them and so many things. Limitations of the study Due to some limitations there can be some erroneous results. Although we tried our level best to eliminate errors, unfortunately we faced some limitations while working on this report. The limitations that we have faced during preparing the report are as follows: Limited Time


The limited time for the survey was the main constraint. The intern had to survey the whole Dhaka city and the beverage companies within the internship period, which was not sufficient. Data Primary and secondary data obtained from sources such as the distributors, their employees and retailers could not have been inaccurate. Important information may have been concealed. Restrictions on Providing Data As government organization, they were not interested to help us by giving information some of the employees tried to avoid different types of information, as it was the rule of the organization not to provide any financial information to an outsider. Unwillingness to cooperate There is always a chance that survey like this would not meet a cordial invitation of all the interviewees, because they do not get paid for it. Small Sample Size Sample size for the customers was not sufficient for revealing highly accurate. Therefore it may not reflect the actual scenario. Lack of adequate information There was lack of sufficient primary and secondary data. Improper Communication Sometimes respondents are not capable enough to answer questions because they cannot recollect or have never gained attention to what they do and why. Some respondents may have answered some questions without knowing the correct answer in order to appear smart, or they may have tried to help us by giving pleasing answers. Seasonal Demand The demand for beverages is seasonal and irregular. Hence only the demand for the summer time could be estimated. Scarcity of Information Some of the information needed to explore the current market scenario of the companies is maintained with confidentiality such as, information related to pricing, sales and advertisement.


Political disturbance Due to unavoidable political climate, survey could not be done properly. Beverage companies in Bangladesh Abdul Monem Ltd. Tabani Beverage Transcom Beverage National Beverage Al Amin Beverage Globe Soft Drinks Akij Foods Ltd. Global Beverage Ltd. Pran Group Partex Group ZamZam Group Problem Statement A few of distributors in (Mirpur, Cantonment, Uttara, Gulshan, Old Town only 3 distributor) Areas. Product not available for retailer shop because lack of distributor. Poor communication between companies SR to retailers. Company product price high. Credit facility not available. Company only given Pull strategy for final consumer but not given push strategy for retailer shop. Company most of the product quality is good but some product is not good quality. Less profit of various company products to sellers. Recommendations Marketing plans focus on a product/market and consist of the detailed marketing strategies and programs for achieving the product objectives in a target market. A marketing plan is the central instrument for directing and coordinating the marketing effort.By analyzing the current situation, we have realized that there is a need for modifying the current marketing scenario of Beverage Industry in Bangladesh. Therefore, in the following, we would recommend some ways to develop a proper marketing plan for Beverage Industry.The marketing planning process consists of the following steps: Researching and selecting target markets, Analyzing marketing opportunities, Setting objectives, Designing market strategies, Planning marketing programs and Controlling the marketing effort. Geographical diversification: Opportunity to increase sales through advertising Opportunity of product differentiation Competitive advantages


Market extension They have to target not only the youth generations but also their target should generalize. To maintain their popularity they have to strengthen their position in consumer’s mind from their competitors. They have to introduction new varieties of product in context of Bangladesh. Distribution outlets in the remote places of the country should have to be stronger. Some specific bottles price should be reduced They should launch new TV advertise. They should sponsors in the sports. Increase the number of distributor in Dhaka city like, Mirpur, Dhanmondi, Uttara, Gulshin, and old town. Decrease the product price. Given the credit facility for retailer shop because most of the retailer shops want this facility form company. Build up good relationship between company SR and retailer shop. Increase the quantity of profit because company product a few of profit. Given the push and pull strategy both retailer shop and final consumer. Marketing Market In economics, a point at which the forces of supply and demand converge to establish a price for an article of trade.It may be a physical centre, usually designeted by the term “marketplace”,or it may presented simply a group of interested buers and sellers,who are seattered geographically and whose bids and offers set a price. Public markets developed from the fairs of medieval Europe, particularly those in England, France, and the low countries.In those nations, fairs served principally as a means for selling the agricultural produce of the area.This type of market has existed for years in the United States, one of the oldest being in new orleans.Since world war we, however, mass distribution and modern refrigeration and processing methods have led to a sharp decline in the economic role played by such markets. Organized stock exchanges or securities markets, commodity markets, and the money market are also examples of public markets. A stock market enables investors to buy or sell bonds or shares of stock. Of more than a dozen securities exchanges in the United States, the largest is the New York Stock Exchange. Commodity markets deal in contracts to buy or sell foods, metals, or other gods. The Chicago Broad of trade is the largest association of commodity traders in the United States. Money or currency markets are concerned with large-scale money and credit transactions by banks, either within a single country or internationally. Marketing Marketing-As defined by the committee on deffinations of the American Marketing Association,” marketing is the performance of businass activities directed toward, and incident to, the flow of goods and services from producer to consumer or user.”Marketing ,therefore ,is made up on the one hand of such physical activities as transporting,strong,and selling goods,and on the other hand of a reries of decisions that must be reached by any


organization undertaking any part of the process of moving goods from the producer to the consumer. People often say that marketing means shopping in the supermarket.Originally, however, marketing stems from the Latin word mercari, meaning “to truck and barter.� Barter exchange of fish, game, salt, and tools first took place in prehistoric societies. Trucking and bartering became periodic at fixed places as production expanded beyond daily subsistance requirements. The marketing concept The marketing concept is a management philosophy stating that an organization should strive to satisfy the needs of consumers through a coordinated set of activities that also allows the organigation to achive its objectives.Thus customer satisfaction is the major force underlyning the marketing concept and driving the entire company. The marketing concept calls for all departments and all members to be committed to satisfying customers. The firm must determine consumer needs and wants,develop quality products that satisfy them,make products readily available at prices acceptable to buyers (and that will allow a profit),and provide service and after-sales support. Frirms benefit from practicing the marketing concept.They do not waste money on developments in which customers are not interested. Also, customers pay more for products they belive will provide greater value and satisfaction, they come back, and they refer business. Repeat business lowers sales costs and boosts profits; holding on to current customers is about one fifth the cost of acquring new ones.Some marketers say the marketing concept helps set up a cycle of success: Customer satisfaction leads to loyal customers, which produces higher profits that make employees want to stay with the firm, which in turn makes for better customer service and satisfaction. Focusing on the customer sounds like an obious, commonsence way to run a successful business,but not all firmsgear their marketing activities closely to the customer. The marketing concept is not alwayes easy to put into practice. Top-level managers must be commited to it and must gain the commitment of other members of the organization. An organization may need to restrucrure departments or functions to better coordinate activities. Often a firm must be willing to forgo short-term profits for long-term customer satisfaction. And because consumer tastes and preferances constantly change, the firm must continually obtain information about customers and their needs and tailor its products to meet changing consumer preferences. The business action illustrates how several firms, large and small, practice the marketing concept. The marketing concept has been expressed in many colorful ways: Meeting needs profitably Find wants and fill them. Love the Customer, not the product You are the boss. Importance of marketing Financial success often depends on marketing ability.Finance,operations,accounting,and other business functions will not really matter if there is not sufficient demand for products and services so the company can make a profit .There must be a top line for there to be a bottom line.Many companies have now created a chief marketing officer,or CMO ,position to put marketing on a more equal footing with other C-level executives such as the chief


executive officer (CEO) and chief financial officer (CFO). Press realeases from organizations of all kind-from consumer goods makers to health care insurers and from non-profit organizations to industrial products manufacturers-trumpet their latest marketing achivements and can be found on their web sites. In the business press, countless articles are devoted to marketing strategies and tactics. Marketing is tricky, however,and it has been the Achilles’heel of many formerly prosperous companies.But making the right decisions is not alwayes easy.Marketing managers must make major decisions such as what features to design into a new product,what prices to offer customers,where to sell products,and how much to spend on advertising or sales.They must also make more detailed decisions such as the exact wording or color for new packaging.The companies at greatest risk are those that fail to carefully monitor their customers and competitors and to continously improve their value offerings. They take a short-term, salesdriven view of their business and ultimately,they fail to satisfy their stockholders,their employees,their suppliers,and their channel partners.Skillful marketing is a neverending pursuit. What do people want from marketing? Consumer needs And Interests: Consider the consumer interest. Consumers want to be supplied with goods and services. Households want a broad variety of goods available in quantities small enough to consume before they spoil or become outmoded. Usefulness to a household means being able to buy small quantities that can be economically supplied.Furthermore, the household wants to avoid spending a lot of time and effort searching for the many varieties of goods required for daily consumption. Consumers demand fairly accessible location convenient shopping times, small quantities, and large varieties. These demands create a discrepancy in economics of consumption and production that trigger the marketing process. This “discrepancy” between assorments that consumers demand and assortments that are economical to produce gives raise to the marketing services needed to equalize the supplies offered by producers with the demands of consumers. Business needs: Business people in pursuit of profit need tools to help them identify promising market opportunities, marketing hazards, and means for managing and supplying demands. Private business wants a minimum of government interference and a stable political and economic climate. Consequently, while seeking freedom to compete with others, most business firms do not resist government efforts to protect their particular industry. In Europe the live-andlet-live attitude takes the form of market sharing known as cartelization, where rivals agree to stay out of each other’s trading areas or not to cut prices. Social aspects: Social scientists see marketing as an adaptive feedback mechanism for mobilizing resources for risky enterprises and allocating them according to the intensity of competing demands for their use. Marketing has proven highly efficient in redirecting the uses to which resources are


put. Marketing also serves to mobilize and allocate scarce resources by means of the market supply-demand-price mechanism. People willing and able to pay for the use of a certain resource may well bid that resource away from uses that other people, less able to pay, consider just as important.This situation gives rise to the question of distributive justice. Benefits of one group frequently yield costs for others.Therefore, farmers organize marketing cooperatives in hopes of wresting control over their economic destinies from the unpredictsble fluctuations in market price.Minorities seek government protection from unscrupulous lenders and sellers.Enviornmentalists seek legislation on returnable beverage containers and a ban on enviornmentally hazardous practices.Consumerists seek a broad range of political and legal weapons to use in their struggle with makers of hazardous or shoddy products. How does marketing work? The Mechanics of marketing: Fully negotiated exchanges specify precisely the qualities, performance characteristics of the goods themselves, the time and place of delivery, the time, place, and method of payment, and the ancillary services to be provided to the buyer by the seller after the goods are in use. Even the use of money, so commonplace in modern exchange, took thousands of years to develop.Guarattees and warranties for service after sales are still evolving as goods become more complex. Furthermore, “complex exchanges” are required to tie each producer to widely dispersed consumers by means of marketing intermediaries. Money exchange in the pursuit of self-interest guides the private sector of the economic system .Each organization in a marketing channel must coordinate its behavior and expectations with that of its trading partners. Motivated largely by the self-interest of the trading partners-or what Adam Smith called the “invisible hand”-the amazing thing is not that this system sometimes fails but that it usually works. It succeeds to the degree that it can deliver the quantities and assortments of goods that many scattered consumers demand from producers-whose only clues to what to make and distribute are provided by sales, profits, and marketing information. Determining Consumer Demand: Within the market-exchange sector, specialists discover and measurement wants. They manage demand, using tools ranging from product and package design to promotion and pricing instruments. They physically supply and coordinate the delivery of supplies to match the location and timing of demands. Detecting demands takes two major forms: marketing research and environmental “scanning.” Marketing research consists of reporting and forecasting sales, surveys, and experiments with all the marketing instruments that encourage people to buy. Information about product preferences, selling prices, and promotional themes is used to discover what “market niche” the product can fill most effectively. Since not all of a marketing program lies within the power of the marketing organization to command, scanning the environment discovers markets as they develop. Watching competitors, finding new technological applications for end uses, and studding economics and social relationships and trends enable a firm to anticipate changes. Demand discovery activities can then be directed toward maintaining a portfolio of products and services


reasonably matched to emerging demands despite the uncertainties of consumer fads and changing tastes. Demand managers so often seek to expand demands that they are given the misleading job title of “sales manager”. Major marketing fields include retailing, advertising, product planning, sales management, and personal selling. These career paths lead to the top of corporate management because mastery of these activities is crucial to the income-producing side of business. People who direct and coordinate demand management programs are usually given the title of “marketing manager”. Marketing managers coordinates pricing, product design, advertising, and personal selling-along with those aspects of physical display and distribution intended to lure customers into purchasing behavior. Distribution: Physical distribution has been called the last frontier of marketing because in physicalsupply activities opportunities exist for reducing costs, improving customer satisfaction, and raising marketing productivity. Physical-distribution managers match supply to demand. They concentrate supplies in quantities large enough to ship economically, build up the assortments that customers want to consume together, and route these to scattered consumption sites. The “demand-supply equalization process” requires coordination all the way from producer to consumer. Market-news reporting of supply, demand, and price reporting-particularly for farm and extractive-industry products-helps marketers know what to ship, where to ship it, and when. Business and marketing ethics Ethics which is a branch of philosophy deals fundamentally with the rules of human conduct from moral point of view. Business ethics is a specialized area of general ethics in which an awareness of ethical issues and a systematic approach to solving them are particularly important. Like other areas of ethics, business ethics has to do with the establishment and maintenance of vital and significant relationships among human beings – specifically, in this case, among employers, employees, competitors, consumers, suppliers, creditors, community, etc. As in other areas, ethical principles have the valuing of life, the string for goodness and avoiding of badness, the just and fair distribution of good and bad, honesty and truth telling, and individual freedom – apply to business ethics. Social Responsibility of business Social Responsibility of Business refers to management decisions and actions taken for reasons at least partially beyond the organization’s direct economic or technical interest. The concept of social responsibility is merely in growing stage towards social effectiveness of business. It is the philosophy which justifies business involvement in its social community. The simple fact is that business is a major social institution, and as such it is importantly involved in social values. In the operation of pluralism many groups influence business, and, in turn, business influences them. Society’s expectations of business are increasing dramatically – perhaps excessively. Society expects that business which enters a community will make it better. Business leaders, in order to perform their new role effectively need to develop value systems that recognize responsibilities to claimants other than stockholders.


Marketing Strategies for Competitive advantage: Designing a competitive marketing strategy begins with thorough competitor analysis. The company constantly compares the value and customer satisfaction delivered by its Products, Price, Channels, and Promotion with those of its close competitors. we will discus the companies’ controllable tactical marketing tools one after another. Product Product means the goods and service combination the company offers to the target market. The concept of product life cycle: To say that a product has a life cycle is to assert four things: Products have a limited life. Product sales pass through distinct stages each posing different challenges, opportunities, and problems to the seller. Profits rise and fall at different stages of the product life cycle. Products require different marketing, finance, manufacturing, purchasing, and human resource strategies in each stage of their life cycle. Most product life cycle curves are divided into four stages: Introduction: A period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses incurred with product introduction. In launching a new product, marketing management can set a high or low level for each marketing variable (price, promotion, distribution, product quality). Considering only price and promotion, management can pursue one of four strategies: a) Rapid skimming: Launching the new product at a high price and a high promotion level. b) Slow skimming: Launching the new product at a high price and low promotion. c) Rapid Penetration: Launching the product at a low price and spending heavily on promotion. d) Slow Penetration: Launching the new product at a low price and low level of promotion. Growth: A period of rapid market acceptance substantial profit improvement. During this stage, the firm uses several strategies to sustain rapid market growth as long as possible: It improves product quality and adds new product features and improved styling. It adds new models and flanker products. It enters new market segments


Maturity: A period of a slowdown in sales growth because the product has achieved acceptance by most potential buyers. The maturity stage divided into three phases: growth, stable, decaying maturity. In the first phase, the sales growth rate starts to decline. There are no new distribution channels to fill. In the second phase, sales flatten on a per capita basis because of market saturation. In the third phase, decaying maturity, the absolute level of sales starts to decline, and customers begin switching to other products and substitutes. Market modification: The company can try to expand the market for its mature brand by working with the two factors that make up sales volume. Volume =Number of brand user * usage's rate per user. The company can try to expand the number of brand users in three ways: Convert nonusers Enter new market segments Win competitor’s customers. Convincing current brand users to increase their usage of the brand can also increase volume. Here are three strategies: The company can try to get customers to use the product more frequently. The company can try to interest users in using more of the product on each occasion. The company can try to discover new product uses and convince people to use the product in more varied ways. Product Modification: Managers also try to stimulate sales by modifying the product’s characteristics through quality improvement, feature improvement, or style improvement. Quality improvement aims at increasing the product’s functional performance-its durability, reliability, speed, and test. Feature improvement aims at adding new features that expand the product’s versatility, safety, or convenience. A strategy of style improvement aims at increasing the product’s aesthetic appeals. Marketing mix modification: Product managers might also try to stimulate sales by modifying other marketing mix elements: prices, distribution, advertising, sales promotion, personal selling, and service. 4). Decline: The period when sales show a downward drift and profits erode. Sales decline for a number of reasons, including technological advances, shifts in consumer tastes, and increase domestic and foreign competition. All leads to over capacity, increased price-cutting, and profit erosion. New product development process There are eight stages for new product development and they are given bellow__


Idea generation: New product ideas can come from many sources; customers, scientists, competitors, employees, channel members, and top management. Idea screening: Ideas should be written down and reviewed each week by an idea committee, which sorts them into three groups: promising ideas, marginal ideas, and rejects. Concept development and testing: Concept development is a meaningful understanding of product idea, which is developed in consumer terms. A product idea can be turned into several concepts. The questions are who will use the product? What benefit should this product offer? When to be used? Marketing strategy development: The plan consists of three parts. The first part describes the target market's size, structure, and behavior. The second part outlines the planned price, distribution strategy, and marketing budget for the first year. The third part of the marketing strategy describes the long run sales and profit goals and marketing mix strategy over time. Business analyzing: Management needs to prepare sales; cost and profit projections to determine whether they satisfy company objectives. If they do, the product concept can move to the product development stage. Product development: If the product concept passes the business tests, it moves to R&D or engineering to be developed into a physical product. Up to now it has existed only as a word description, a drawing or a prototype. This step involves a large jump in investment that dwarfs the cost incurred in the earlier stages. At this stage the company will determine whether the product idea can be translated into a technically and commercially feasible product. Market testing: After management is satisfied with functional and psychological performance, the product is ready to be dressed up with a brand name and packaging, and put to a market test. Commercialization: If the company goes ahead with commercialization, it will face its largest costs to date. It needs to solved four questions: when, where (place, location and distribution), to whom (target market), how (marketing strategy) Dealing with competitors It would seem a simple task for a company to identify its competitors. In addition to the industry approach, we can identify competitors using the marketing approach: competitors are companies that satisfy the same customer need. We can gain inside by classifying firms by the role they play in the target market: leader, challenger, follower, or nicher.


Market leader strategy: Many industries contain one firm that is the acknowledged market leader. This firm has the largest market share in the relevant product market. It usually leads the other firms in price changes, new-product introductions, distribution coverage and promotional intensity. Market leader strategy holds Expanding the total market Defending market share Expanding market share Expanding total market: The dominant firm normally gains the most when the total market expands. The market leader should look for new user, new uses and more usage of its product. Defending market share: While trying to expand total market size, the dominant firm must continuously defend its current business against rival attacks. Sometimes the competitors are domestic; sometimes it is foreign. The best defense is a good offence. A dominant firm can use the six defense strategies and they are as follows Position defense: The basic defense is to build an impregnable fortification around one’s territory. Although defense is important, leaders under attack would be foolish to put all their recourses into only building fortification around their current product. Flank defense: The market leader should also erect outposts to protect a weak front or possibly serve as an invasion base for counterattack. Preemptive defense: A more aggressive maneuver is to attack before the enemy starts its offense. A company can launch a preemptive defense in several ways. It can wage guerrilla action across the market-hitting one competitor here, another there-and keep every one off balance. Counteroffensive defense: Most market leaders, when attack, will respond with a counter attack. The leader cannot remain passive in the face of a competitor’s price cut, promotion blitz, product improvement, or sales territory invasion. In a counteroffensive, the leader can meet the attacker frontally or hit his flank or launch a pincer movement. Mobile defense: The leader stretches its domain over new territories that can serve future centers for defense and offense. It spreads through market broadening and market diversification. Contraction defense: The best courses of action then appear to be planned contraction. Planned contraction means giving up weaker territories and reassigning resources to stronger territories.


Expanding market share: Market leaders can improve their profitability by increasing their market share. A company should consider three factors before pursuing increased market share: The possibility of provoking antitrust action. Economic cost The wrong marketing mix strategy. Market challenger strategy: Firms that occupy second, third, and lower ranks in an industry are often called runner-up, or trailing firms. The competitive attack strategies available to the market challengers. Frontal attack Flank attack Encirclement attack By pass attack Guerrilla attack Market follower strategy: Many companies prefer to follow rather than challenge the market leader. A market follower must know how to hold current customers and win a fair share of new customers. Four broad strategies can be distinguished: Counterfeiter: The counterfeiter duplicates the leader’s products and package and sales it on the black market or through disreputable dealers. Cloner: The Cloner emulates the leader’s products name and packaging, with slight variation. Imitator: The imitator copies some things from the leader but maintains differentiation in terms of packaging, advertising, pricing and so on. Adapter: The adapter takes the leader’s products and adapts or improves them. Market- Nicher strategy: An alternative to being a follower in a large market is to be a leader in a small market, or niche. Smaller firms normally avoid competing with larger firms by targeting small markets of little or no interest to the larger firms.


The key idea in nichemanship is specialization. The following specialist roles are open to nichers: End-user, Vertical-level, Customer-size, Geographic, Product or product-line, Product-feather, Quality-price, and Service specialist. Price Price is the element in the marketing mix that produces revenue; the other elements produce costs. Companies set price in a number of ways: in small companies top management sets prices. In larger companies, top management sets the general pricing objectives and policies proposed by lower levels of management. In industries where pricing is a key factor companies establish a pricing department. This department reports either to the marketing department or top management. The firm has to consider a large number of factors in setting a price for the first time. Now we will, describe a six-step procedure for price setting: 1). Selecting the pricing objectives: The clearer a firm is about its objectives, the easier it is to set price. Each possible price will have a different impact on various objectives such as profits, sales revenue, and market share .A Company can pursue four major objectives through its pricing. Survival: When a company faces over capacity intense competition, or changing consumer wants, the objective is to survive .To keep the plant going and the inventories turning over, they company must cut price. Current profit maximization: Many companies want to set prices that will maximize current profits. They estimate the demand and costs associated with alternative prices and choose the price that produces maximum current profits, cash flow or rate. A market share leadership: Some companies believe that if they own the largest market share, they will enjoy the lowest cost and highest long run profit. They go after market share leadership by setting price as low as possible. Product- quality leadership: A company may aim to be the product quality leader in the market. This normally calls for charging a high price to cover the high product quality and high cost of R and D. 2). Determining demand: Each price set by the company will lead to a different level of demand and therefore have a different effect on its marketing objectives. In normal case demand and price are inversely related, that is, the higher the price, the lower the demand. But in the case of prestige goods, the demand curve is positively sloped. Methods of estimating demand schedule: There are two ways to estimate demand. Competitors price remain constant regardless of the price charge by the company. Competitors charge a different price for each price the company chooses.


Price elasticity of demand: Marketer needs to know how demand responds to a charge in price. Price elasticity of demand = %charge in quantity demand / % charge in price. If demand hardly changes with a change in price, the demand is inelastic. If demand change greatly the demand is elastic. 3) Estimating costs: Demand sets a ceiling on the price, and costs set the floor. Price can be set at any point between the two. Types of costs: Cost takes two forms, Fixed and Variable. Fixed costs: Fixed costs are costs that do not vary with production or sales revenue, that is, rent, interest, salary and so on. Variable costs: Variable costs vary directly with the level of production. That is, cost of raw material, packaging, etc. Variable cost per unit is fixed. Total cost = Fixed cost + Variable cost Average cost = Total cost / number of units produced. Cost behavior at different levels of production per period: In order to set price intelligently, management needs to know how its costs vary with different levels of production. 4) Analyzing competitor’s price and offers: To set the price, company needs to learn the price and quality each competitor’s offer. This can be done in several ways. The firm can acquire competitor’s price lists, buy competitors equipment and take apart. The firm can ask buyers how they perceive the price and quality of each competitor offer. If the firm’s offer is similar to a major competitor offer then the firm price should be closer to the competitor. If the firm’s offer is inferior, the firm’s price should not be more or equal to the competitors. If the firm’s offer is superior, the firm can charge more than the competitor. The firm must also be aware that competitors might charge this price in response to the firm’s price. 5) Selecting a pricing method: Given the three Cs – the customers demand schedule, the cost function and competitor’s prices – the company is ready to select a price. The price will be somewhere between one that is too low to produce a profit and one that is too high produces enough demand. Some price setting method: Cost-plus pricing: cost-plus pricing is to add a standard mark up to the product cost. Formula to calculate cost-plus pricing is – Mark up price = unit cost/ (1- desired return on sales) Cost pricing remains popular for a number of reasonsSellers can determine costs much more easily than they can estimate demand.


As all firms in the industry use this pricing method, this price tends to be similar. Many people feel that cost-plus price is fairer to both buyer and seller. Break even analysis and profit pricing: Here the firm determines the price that would produce its target rate of return on investment. The target profit price is calculated by – Target profit price = Unit cost + (desired return * invest capital)/Unit sales Break even volume = Fixed cost / (sales price – Variable cost) C) Perceived value pricing: some times companies set their price basing on the products perceived value. They see the buyer's perception of value not the sellers cost, as the key to pricing. They use the non-price variables in the marketing mix to build up perceived value in the buyer's mind. d) Going rate pricing: In going rate pricing, the firm pays less attention to its own costs or demand and bases its price largely on competitors’ prices. The firm may charge it, more, or less than its major competitors.

e) Sealed bid pricing: This pricing is common where a firm bids for jobs. The firm bases its price on competition of how competitors will price rather than on a rigid relation on the firm’s costs or demands. 6) Selecting the final price: In selecting the final price the company must consider additional factors. Psychological pricing: Many consumers use price as an indicator of quality. Prestige pricing is effective with ego sensitive products. Such as perfumes and expensive cars. Many sellers believe that price should end in an odd number. Impact of price on other parties: Management must also consider the relations of other parties to the contemplated price. These parties are distributors, dealers, company sales force, competitor’s suppliers and government. Company pricing policies: The contemplated price must consistent with company pricing policies. Pricing department of the company must set a price that is responsible to customers and profitable to the company. Place /Distribution (channel) Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption.


Producers do gain several advantages by using intermediaries. Many producers lack the financial resources to carry out direct marketing. Producers who establish their own channels can after earn a greater return by increasing their investment in their main business. Marketing intermediaries, through their contact, experience, specialization, and scale of operation offer the firm more than it can achieve on its own. Middlemen reduce the amount of work and provide cost savings. Channel design for Manufacturers: In designing marketing channels, manufacturers have to struggle between what is ideal and what is available. Designing a channel system calls for analyzing customer needs, establishing channel objectives, identifying the major channel alternatives and evaluating them.

Analyzing customer needs for service output: Understanding what, where, when, why and how target customers by is the first step in designing the marketing channel. Channels produce five service outputs: Lot size: The lot is the number of units that a consumer receives at any given delivery. The smaller the lot size, the greater the level of service provided by the marketing channel. Waiting time: Waiting time is the period during which consumer must wait, after ordering, for receipt of the goods. Consumer normally prefers fast delivery channels. Spatial convenience: Spatial convenience or market decentralization expressed the degree to which the marketing channel makes it easy for customers to purchase the products. 4. Product variety: The greater the variety of product provided by the marketing channel the higher the service output. Establishing the channel objectives and constrains: Effective channel planning means that the manufacturer should determine which market segments to serve and with what objectives. Each producer develops its channel objectives in the context of following constraints: Customer characteristics Product characteristics Middlemen characteristics Competitive characteristics Company characteristics Environmental characteristics Identifying the major channel alternatives:


After establishing channel objectives, the firm should identify its major channel alternatives. A channel alternative is described by three elements: Types of intermediaries: The firm should identify types of intermediaries available to carry on its channel work. Company sales force Manufacturers’ agency Industrial distributor Number of intermediaries: The companies have to decide on the number of intermediaries to use at each channel level. Three strategies are available: Intensive distribution Exclusive distribution Selective distribution Terms and responsibilities of channel members: The producer must determine the condition and responsibilities of the channel members. The main elements in the "trade-relation mix" are given below The price policies Conditions of sales Territorial rights Evaluating the major channel alternatives: Each channel alternatives to be evaluated against the following criteria Economic criteria Control criteria Adaptive criteria Sales promotion Sales promotion consists of a diver’s collection of incentive tools, mostly short term, and design to stimulate quicker or greater purchase of particular products or services by consumers or the trade Sales promotion includes tools for consumer promotion (samples, coupons, cash refund offers, prices off, premiums, prizes, patronage rewards, free trials, warranties, tie-in promotions, cross-promotions, point-of-purchase displays, and demonstrations); trade promotion (prices off, advertising and display allowances, and free goods); and business-and sales force promotion (trade shows and conventions, contest for sales reps, and specialty advertising) Beverage What is beverage? : A beverage is composed chiefly of water used as a drink for the purpose of relieving thirst and introducing fluid to the body, nourishing the body, and stimulating or soothing the individual. Beverages are consumed mainly for their thirst quenching properties or for their stimulating effects. Three groups of beverages are commonly consumed. These include:(i) carbonated non-alcoholic beverages or soft drinks,(ii) non-carbonated non-alcoholic stimulating beverages such as coffee and tea and (iii) alcoholic beverages. History of beverage:


Carbonated nonalcoholic beverages are generally sweetened, flavored, acidified, colored, artificially carbonated, and sometimes chemically preserved. The origin goes back to Greek and roman times when naturally occurring mineral waters were prized for “medicinal” and refreshing qualities. But it was not until about 1767, when the British chemist Joseph Priestley found that he could artificially carbonate water, that the carbonated beverage industry got its start. An early method of obtaining the carbon dioxide was by acidification of sodium bicarbonate or sodium carbonate, and from the use of these sodium salts came the name “soda” which remains today, although most carbon diozide is no longer generated in this fashion. Gradually, fruit juices and extracts were added to carbonated water for improved flavor. Each beverage must be considered foods in the broad sense, since all are made from food ingredients, all are subject to food laws and regulations, and all are consumed in large quantities. The annual per capita consumption of soft drinks in the United States in 1991 was 43 gal according to the U.S. Department of Agriculture, which was the highest of any category of beverage and well above the per capita consumption of milk. It is likely that soft drink consumption exceeds even tap water. In other countries and areas, packaged beverages may be safer to consume than the local water supply. Further, carbonated soft drinks furnish calories; coffee and tea, although no caloric, frequently are consumed with cream or suger and, thus are vehicles of caloric intake. Classification of beverage Beverages may be classified according to their function in the body. A particular beverage may have more than one function. Refreshing

: Water-plain, carbonated beverages not containing fruit Juices; fruit juices; iced tea and butter milk with salt and lime juice.

Nourishing

: Milk-pasteurised, skimmed, evaporated, dried, malted; butter milk, chocolate and coco; milk shakes; eggs-egg nogs made with whisky, rum, brandy, fruit juices, coffee and chocolate; fruit juice; glucose, lemonade. : Egg nogs made with whisky, brandy, coffee; coffee or tea and cocoa or chocolate beverage.

Stimulating Soothing Appetising

: Warm milk and hot tea. : Soups, fruit juice and alcoholic drinks in limited quantity.

Carbonated non-alcoholic beverages The most popular soft drinks include those based on cola (extract from the cola tree), orange, root beer, ginger, lemon and lime. Soft drinks may be classified into three types as carbonated, fruit favored and sparkling soda water. The carbonated beverages may contain artificial flavor or natural fruit juice.


Ingredients and Manufacture: The major ingredients of carbonated soft drink beverages in addition to water and carbon dioxide are sugar, flavoring, colors, and acids. Typical levels of sugar, carbon dioxide, and acidity for various beverages are given in table 1, although the products of different manufacturers may very somewhat from these values. Sugar: The most common sugar used in soft drinks is high-fructose corn syrup or related corn sugars. Initially, sucrose, purchased as pure colorless syrup from the manufacturer or made into syrup at the beverage plant from high-purity crystalline sugar, was most commonly used and is still widely used. Increasingly, however, sucrose has been replaced with high-fructose corn sugars which are sweeter and thusless costly on an equal-sweetness basis. The corn sugar (or sugar syrup) is supplemented with flavoring, coloring, and acidic ingredients and may be stabilized with a preservative. Finished beverages contain about 8-14% sugar. The sugar not only contributes sweetness and calories to the drink but also adds body and mouth feel. For this reason when dietetic beverages are made with a non-nutritive or low-calorie sweetener to replace all or much of the sugar, an agent such as carboxymethyl cellulose or pectin is sometimes added to give the same mouth feel as the sugar product. Reduced calorie and non-nutritive sweeteners: Soft drinks which provide no calories are sweetened with non-nutritive sweeteners such as saccharin, Acesulfame K, or cyclamate, whereas reduced-calorie soft drinks

Flavor

Sugar

Carbonation Gas volume

Acid %

PH

Cola flavor Root beer Ginger ales Cream (vanila) Lemon and lime Orange Cherry Raspberry Grape

10.5 9.9 9.5 11.2 12.6 13.4 12.0 12.3 13.2

3.4 3.3 3.8 2.6 2.4 2.3 2.4 3.0 2.2

0.09 0.04 0.10 0.02 0.10 0.19 0.09 0.13 0.10

2.6 4.0 3.0 3.4 3.7 3.0 3.0

Have sweeteners that have calories but also are high-intensity sweetners. This means that considerably fewer sweeteners must be used to get the same degree of sweetness, so the drink ends up with fewer calories. For example the common artificial sweetener aspartame (trademark nutrasweet) IS a dipeptide that yields 4 kcal/ g-the same as sugar-but is about 150-200 times sweeter than sugar (sucrose) and so can sweeten in very small amounts. Thus, it is a nutritive sweetener but contributes very few calories.


Flavorings Synthetic flavor compounds, natural flavor extracts, and fruit juice concentrantes are used to flavor soft drinks. These flavors must be stable under the acidic conditions of the beverage and on exposure to light for a year or more, since bottled drinks may be held this long or longer. The flavors do not have to stable to heat much over 38(DEGRE) C, since beverages are not commonly heat-sterilized or pasteurized. An artificial fruit flavor made from synthetic flavor compounds and natural flavor extracts (table 2) may contain over two dozen components contributing several hundred distinct compounds. Cola flavors may be as or more complex, and their compositions are guarded secrets, sometimes formulated to contain ingredients that will add to the difficulty of chemical analysis and duplication by competitors. Cola flavors may contain a source of caffeine, which is a mild stimulant. There also is a growing market for caffeine-free colas. When fruit derivatives that contain flavor oils are used, it is necessary to employ an emulsifying agent to keep the oils from separating out in the beverage. Water-soluble gums at low levels are the principal emulsifiers employed for the purpose. Colors Some important coloring agents for soft drinks are the synthetic colors, particularly U.S. certified food colors, which have been approved by the drug administration. All certified batches of such colors must meet stringent chemical purity standards in their manufacture. Caramel from heated sugar, a no synthetic color, is also commonly used in dark beverages such as colas. These coloring materials are much preferred to the natural fruit colors because of their greater coloring power and color stability. Even when natural fruit extracts or juices are used, their colors are generally supplemented with the synthetic colors. Acid Carbon dioxide in solution contributes to acidity, but this is supplemented with additional acid in most carbonated drinks. The main reasons for acidification are to enhance beverage flavors and to act as preservatives against microbial growth. The principle acids used are phosphoric, citric, fumaric, tartaric, and malic acids. Citric, tartaric, and malice are important natural acids of fruit and so they are used, along with numeric acid, mainly in fruit-flavored drinks, with citric being the most widely employed. Phosphoric acid is preferred for use in colas, root beer, and other no fruit drinks. In addition to flavor enhancement, acid acts as a preservative in non-heated-treated beverages. However, unless a very high degree of sanitation is employed in soft drink Manufacture, the PH imparted by the acid, even in combination with acidic fruit juices, is not sufficient to ensure long-term microbial stability. For this reason,an additional preservative may be necessary; the most common is sodium benzoate at a level of about 0.03-0.05% in the final beverage. In the acid drink, sodium benzoate is converted to benzoic acid, which is more effective as a preservative. Water The major ingredient in carbonated soft drinks- accounting for as 92% by volume-is water. It is essential that the water be as nearly chemically pure as is commercially feasible, since


traces of impurities react with other constituents of the drink. In this respect, municipal dirking water, although satisfactory from a bacteriological standpoint, generally is not chemically is not chemically pure enough for use in soft drinks. The standards for beverage water listed in Table 3 would not be met by most municipal water supplies. The alkalinity of beverage water must be low to prevent neutralization of the acid used in the beverage, which would alter flavor and decrease the preservative property of the beverage. Iron and manganese must be low to prevent reaction with coloring agents and flavor components and flavor components. Residual chlorine must be virtually nonexistent since it adversely affects the flavor of the drink. Turbidity and color must be low for an attractive appearance of the drink. Organic matter as well as inorganic solids must be low since colloidal practical nuclei for carbon dioxide accumulation and release from solution, which results in beverages boiling and gushing when containers are filled or opened. To achieve these high water standards, bottling plants generally condition water with additional treatments such as chemical precipitation of minerals, deionization, and addition of activated charcoal to remove odors, flavors, and residual chlorine, final paper filtration to remove traces that may pass the carbon filter, and deaeration to remove oxygen. Although the water supply in a bottling plant can be adequately controlled by these methods, the big problem occurs when the syrups and flavor bases are shipped to various locations to be used in fast-food restaurants and vending machines. In these locations the quality of the water will very and frequently not meet the tight specifications of the bottling plant. The quality of the drink may suffer and vary from location to location even though the syrup formula is constant. Carbon Dioxide The sparkle and zest of carbonated beverages stems from the carbon dioxide gas. Carbon dioxide can be obtained from carbonates, limestone, the burning of organic fuels, and industrial fermentation processes. Soft drink bottlers buy carbon dioxide in high-pressure cylinders from manufacturers who produce the gas to comply with food purity regulations. In the cylinders, the gas under pressure exists as a liquid. The amount of CO 2 Used in beverages depends on their particular flavor and brand.CO2 improves flavor, contributes acidic preservation action, produces tingling mouth feel, and gives the sparkling effervescent appearance to the beverage. The amount of carbon dioxide in beverages is measured in volumes of gas per volume of liquid. A volume of gas is the volume occupied by the gas under standard temperature and pressure. Thus, a beverage containing 2 liters of CO2 (at STP) per liter beverage is carbonated at 2 volumes. Most beverages are carbonated in the range of about 1.5-4 volumes .This is done with with a carbonator, of whivh there are several designs.In all, however, carbonation is speeded by proving intimate contact between the liquid and the CO 2 gas, colling the liquid since the solubility of CO2 in water in greater the lower the temperature, and applying pressure to force more CO2 into solution. In practice, the entire flavored drink may be carbonated, or only the water may be carbonated for subsequent mixture with the flavored syrup.


Plant layout Flavored syrup containing al of the drink ingredients except the remaining water and CO 2 is pumped to a metering device called a synchrometer. Treated and deaerated water also is pumped to the synchrometer. This device then meters the syrup and water in fixed proportion to the carbonator. The carbonated beverage then goes to the bottling or canning line where it is admitted to sanitize containers under a CO2 pressurized atmosphere to prevent loss of CO2 and beverage boiling. The containers are than capped; they are not subsequently heat-treated. In restaurants and similar establishments, concentrated syrups containing the sweetener and flavors is directly mixed with carbonated water as the drink is being drawn. Syrup from the beverage manufacturer is held in one tank and pressurized carbon dioxide in a second tank. Company profile Company profile of Abdul monem limited Abdul monem limited focusing to this philosophy grew over the years by providing the best services and highest quality products. Actually, this key philosophy has remarked Abdul monem limited as the most trusted and one of the leading companies in Bangladesh. Started as a construction contractors in 1956 and later diversified to food sector Abdul monem limited proudly represents brands like Coca-Cola,Igloo,Amomilk and that are the milestones to our quest to provide the best and quality products to our thousands customers. Abdul monem limited started the business line as the infrastructure development contractors. Over the decades Abdul monem limited has successfully accomplished many projects including projects aided by the World Bank and Asian Development Bank. In recognition to our commitment for work excellence we have able to initiated projects in joint ventures and receive many rewards for the achievements. Abdul monem limited maintenance and operation work of the Bangabandhu Jamuna Multi purpose Bridge for 5 (five) years. This bridge has a great impact over the socio-economic development of the people of the North Bengal region. They made joint venture contract with the INTERTOLL of South Africa for the toll collection and Sir Owen of Williams of England for the maintenance work. Abdul monem limited aims at generating appropriate financial results through sustainable growth and constant renewal of balanced business structure. The company is open and trustworthy to all its business partners and consumers. Through our business activities, they wish to make worthwhile contribution to the progress of the country. Guided by the visional believes in ensuring long term existence by being profitable, successful and sustainable. This is achieved by the company’s commitments in providing value-adding products and services demonstrate the company’s commitment to use resources optimally. To achieve the company’s long term goals, the senior executives exhibit behavior based on the principles of leadership and teamwork in general and situational leadership model in particular. They are result oriented, accountable, open and humane. Abdul monem limited has a new challenge, the challenge to keep them competitive in the millennium with the leading edge technologies as well as products and services.They have long experience in accomplishing that in the past and they sure that would be able to meet this challenge. Abdul Monem Limited is the authorized bottler for the Coca-Cola, Fanta and Sprite. AML started its bottling operation by acquiring the plant of the K. Rahman & Company in 1982. In 1987 the Company made an aggressive move to expand the market by installing a new H&K


bottling line with an installed capacity of 450 Bottles Per Minute (BPM) bottling capacity at Comilla. With this move, the Company immediately gained the market leadership position from the Pepsi which was the leader for more than 27 years. Long term planning and aggressive marketing approach rewarded the Company with the market leadership position for the brands that remains till to-day. In 1991 the Company was awarded with the President’s Turtle Award by the President of The Coca-Cola Company for recognition of its contribution for positioning the brand. This is the most prestigious reward to the Bottlers from The Coca-Cola Company (TCCC). In 1994, the Company established another bottling plant at Chittagong. This state of the art bottling plant with an installed capacity of 600 BPM is the most modern plant in the Country equipped with the straight-line-technology from KHS Germany. This plant was established to expand the market further in order to ensure that the Coca-Cola Company’s quality products reach the consumer’s door-step even to the remote places to uphold the motto "ALWAYS COCA-COLA". Abdul Monem Limited is strived to be a good neighbor, consistently shaping its business decision to improve the quality of life in the communities in which the company do the business. It’s a special thing to have billons of friends around the world and the company never forgets it. Mission statement At K. Rahman & Co. (an enterprise of Abdul Monem Limited) Coca-cola bottling planed, Comilla, are committed to consistently produce and supply the quality product, to the bet customer and consumer satisfaction at economical cost to develop and grow along with our partners as a responsible corporate citizen every time. Beliefs There is much in our world to celebrate, refresh, and strengthen and product the Coca-Cola Company is a vibrant network of people, in over 200 countries, we strive every day to refresh the marketplace, enrich the workplace, protect the environment and strengthen our communities. We are a local employer with responsibility to enable our people to tap into their full potential, working at their innovative vest and representing the diversity of the world we serve. Abdul Monem Limited is an investor in local economies and a driver of marketplace innovation, with a responsibility to act as good steward of our natural environment. And we are a local citizen, understanding our responsibility to contribute to an improved quality of life in our communities Learn more about our beliefs and how they guide our actions every day, around the world. Food Safety Policy We are K. Rahman Co. an enterprise of Abdul Momen Limited, Comilla engaged in beverage manufacturing are committed to adopt Good Manufacturing practices and continually improve own process andsystems throughout the beverage manufacturing chin to ensure food safety. Compony Profile Transcom Group Transcom originated with tea plantations in 1885 and is today one of the leading and fastest growing diversified business houses in Bangladesh employing over 5000 people. Not many industrial groups in Bangladesh can claim a history of continuous business pursuits stretching


hack over 100 years. Initially, tea and later jute formed the backbone of the family business. Although these are still part of the activities, they contribute marginally to the overall group turnover. These early industrial ventures have moved over to businesses involved in hightech manufacturing, international trading and distribution, forming strong ties with a host of blue chip multinational companies. In recent years, Transcom has emerged as an increasingly significant media house in Bangladesh. This is the flagship and holding company of the Transcom enterprises. Transcom Limited is the flagship and holding company of the Transcom enterprises. There are many other enterprises within this group described subsequently. Corporate Head Office is located at Gulshan. Transcom Today These early industrial ventures have moved over to businesses involved in high-tech manufacturing, international trading and distribution, forming strong ties with a host of blue chip multinational companies. In recent years Transcom has emerged as an increasingly significant media house in Bangladesh. TRANSCOM is now dealing with several other companies located in the overseas countries. Day by day the organization is expanding. TRANSCOM TODAY 1. Distribution:

2. Manufacturing:

3. Media :

4. Tea :

5. Associates:

Transcom distribution Co. Ltd. Beverage Distribution Ltd. Transcom Electronics Ltd. Philips Lighting. Transfin Finding 2nd Trinco Ltd. Tea Holdings Ltd Bangladesh Electrical Industries Ltd. Bangladesh Lamps Ltd. Transcom Beverage Ltd. Eskayef Bangladesh Ltd. Prothom Alo Daily Star Anandadhara Saptaik 2000 Transcraft Ltd. M. Rahman Tea Co. Monipur Trea Co. Ltd. Marine Tea Co. Ltd. Heritage Tea W. Rahman Jute Mills Ltd. Reliance Insurance Ltd. Media World Ltd.

Pepsi in Bangladesh: On the basis of an exclusive Franchise for Bangladesh from Pepsico USA, TBL acquired three modern bottling plants at Dhaka, Chittagong and Bogra from BBIL, Dhaka; EBIL, Chittagong and NBIL, Bogra; in March 2000. TBL manufactures the famous Pepsi range of


beverages-Pepsi, 7up, Mirinda Orange, Mirinda Lemon, Slice and Soda. As a corporate citizen, Pepsi believes it has a responsibility to contribute to the quality of life in our society. TBL has put this philosophy into action through the support of social agencies, projects and programs and the scope of this support is extensive and it has not been difficult to blend with this philosophy because the Transcom Group also followed such a corporate ideology. Transcom Beverage’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. Their mission is to be the world's premier consumer Products Company focused on convenient beverages. They seek to produce healthy financial rewards to investors as they provide opportunities for growth and enrichment to their employees, business partners and the communities in which they operate. And in everything they do, they strive for honesty, fairness and integrity. Company Profile Of Tabani Beverage "Tabani Beverage Co. Ltd." is structured through the government rules & regulations which “Chairman" is the honorary "Prime Minister" of the Republic of Bangladesh. Its products are Coke, Sprite, Fanta and Sunfill. The activities of its are mainly performed through Marketing & Distribution process. Founder - Mr. Abdur Rahman Tabani Established year – 1964 Nature of the Organization: It is a government Organization. After the independence of Bangladesh it became a part of “Bangaldesh Freedom Fighters Welfare Trust" (BFFWT)" under the “Ministry of Defense." But from now it is under the “Ministry of Freedom Fighters." Work: It distributes Coke, Sprite, and Fanta & Sunfill in Bangladesh. Objective: To earn profit by serving best quality of drink to the consumer. Another objective is to increase the goodwill of Coca-Cola Company. Address: Head Office Road # House # Mirpur, Dhaka. Name of the General Manager: Md. Shajahan. Total Number of Employees: 280 employees Total Number of Workers: 112 Workers. Workers in terms of “Daily Payment" &” No Work No Pay": 950

Company Profile of Partex Group History is a recorded event of the past. Every company in the world has their own history. Partex group has a history and is no different. The company started in 1959 with the beginning in the tobacco trading business. The founder Chairman and the Managing Director


Mr. M.A. Hashem, who has grown steadily over the years and become one of the leading industrial conglomerates of the country .Every country in the world need their own large corporate body in the country. Partex group of Companies is the largest corporate body in our county. To full fill the requirements in a country Mr. Hashem established (in early seventies) its head quarter in the port city of Chittagong with his hard work he had involved the company in iron, steal, Wheat, Milk and other essential commodities. To be one of the biggest corporate bodies of the country it involves itself in 19 different types of items. All of the 19 different types of industries have their own management but price quality ratio to customers in Bangladesh. The Partex group introduced RC Cola, the beverage Company in 1997 as private Limited Company under the companies Act, 1913. But before 1997 the RC Cola in 1995 introduced of a premium draft cola. The Manufacturing and Trading Concerns of the Partex Group. Partex Group operates 19 industrial and trading concerns. They are: Company Name of Partex Group Partex Group owns and successfully operates 19 manufacturing and trading concerns and offers the best price-quality ratio to customers in Bangladesh. The companies are: Serial no. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

Company Name Danish Condensed Milk Danish Milk Bangladesh Ltd. Star Vegetable Oil Ltd Star Coconut Oil Ltd Russel steel mills Ltd Rubel Steel Mills Ltd Amber Cotton Molls Ltd Amber Pulp and Paper Mills Ltd Partex Beverage Ltd Partex Real Estate Ltd Partex Air Ltd Partex CNG Ltd Star Chemicals Ltd Star Particle Board Mills Ltd Ferrotechnic Super ware Nail Factory Fotoroma Ltd Corvee Maritime Co Ltd Hasem corporation Pvt. Ltd

Managing Director Aziz al Mahmood Aziz al Mahmood Aziz al Kaiser Aziz al Kaiser Aziz al Mahmood Aziz al Mahmood Shawkat Aziz Aziz al Masood Ashfaq Aziz Aziz al Kaiser Shawkat Aziz Shawkat Aziz Shawkat Aziz Aziz al Kaiser Aziz al Kaiser Aziz al Kaiser Ashfaq Aziz Mr. M.A. Hashem Mr. M.A. Hashem

Growth Rate: The growth rate of the group is 30% per annum. Net worth: Net worth at current market price is 5500 Million Taka.


Distribution: The group has approx. 250 (Plus) distributors around the nation. Employees: There are over 8000 employees working in the group across the country (Ref Profile Partex Group). Missio “To provide value at an economic cost, progress in diversity, and continue to contribute to the growth of industrialization in Bangladesh being the market challenger”. Objective of RC Partex beverage industry is technically well equipped and quality control, at all stage, and is of highest order. The commitment of each department has ensured a management system of the highest standards. From the initial rigorous quality taste of raw material to final inspection, the beverages are assured of the highest quality. The product is an enduring testimony to the unique excellence of the workforce. RC’s strength lies in the fact that it is the best in taste test against the order two colas. RC takes an aggressive approach when planning its marketing strategy. Traditional marketing packages, prices, promotion and distribution systems do not bind it, and by the same token, it does not discard traditional marketing patterns if they present the means or opportunity of expressing a positive point of different. RC management approaches each situation with an open mind instead of imposing marketing plans and programs on its franchisees. They recognize the differences as well as similarities in each market and try to do be understanding and responsive to each bottle’s needs. Royal Crown Cola Company is proud of its products and of the bother’s that distribute them. Together they maintain the high standards that were established by the company’s pioneers. Their goal is always to provide the best possible products at the reasonable prices, promptly and courteously to customers everywhere. Management Structure Analysis The Number 1 person of RC Cola Is Managing Director. After him the post of Director Marketing does come. He has two supporting executives to help him in works. One of them is Marketing Manager and another one is Controller, sales. Marketing Manager has an executive officer named Brand Officer. Controller, Sales Manager has also two executive officer to help him. They are Bottle Manager and Sales Manager. Sales Manager has his Deputy, Asst. Sales Manager. Asst. Sales Manager has a subordinate, Sales Officer and Sales Officer has a Deputy, Asst. Sales Officer. Another two people work under him. They are Sales Representative and merchandiser. Management Function of RC RC Cola’s Management System Functions in four ways. They are as followsPlanning: Partex Beverage (RC) has top down planning approach. The top-level Management like Managing Director and Director Marketing has authority to decide how they will go through and achieve their goal. If the Brand Officer or Sales Manager gives some idea or plan to marketing Manager or Controller Sales Manager the top level Management always


encourages their ideas and gives them the opportunity to carry with their plans and ideas if the Management thinks that the idea will turn into profit. The top-level management sometimes asked the Marketing Manager or Brand Officer to make some innovative plan for the company. If they become successful to innovative something new the top level Management has a look on it and then they decide whether to go through it or not. Organizing Partex Beverage is a concern of Partex Group of Industries. It is franchised from American Royal Crown Company. RC’s industry is in Rajendropur, Gazipur. It has sales and corporate officer in Motijheel C/A in Ispahani Building. RC’s head and only office is situated in Sena Kalyan Bhaban (16th floor). Staffing RC recruits staffs according to their qualifications and the nature of their job. For recruitment, the top-level Management always gives more priority on oral tests (viva-voice). Directing & Controlling RC’s all employees have to maintain the office time of Partex Group as it is a concern of Partex Beverage and the office time is from morning 9 a.m. to evening 5 p.m. Asst. Sales Officer and Sales Representative has to stay outside of the office for their working purpose. In office, the sitting arrangements are created in such a way that if the subordinates face any problem they can easily asks their superiors. Although RC has a particular office time, all the employees have so much responsibility that if they have any major work in their hand they leave the office completing the work. Production Tabani Beverage's products are consumer products. Its product breadth and depth determine its products mix. Tabani sells four brands of drinks “Coca-Cola, Sprite, Fanta and Sunfill. These drinks are sold in different volumes, 175ml, 250ml, 1000ml, and 1500ml and there is also 330ml can available on these brands. Soda a by-product of these drinks is sold loosely. Post Mix sells the drinks in paper cups of 250ml. Another product Pre-Mix supplied to the shop with machine. All the products have individual trademarks and thus have legal protection. Fig: 4.1 Chart of the Brand Name & Quantity Available 1600 1400 1200 1000 800 600 400 200 0

175ml250ml3 30ml1000ml1 500ml

Coke

Fanta Sprite Sunfill Post & Pre Mix


Table: 4.1 Contains the Brand Name & Size Product Brand Name & Size Bottle (Small) Bottle (Big) Pet Bottle Can

Coke

Sprite

√ √ √ √

√ √ √ ×

Diet Coke × × × √

Fanta

Sunfill

√ √ × ×

√ × × ×

Post & Pre-Mix × × × ×

Raw-materials & Formula The raw materials of Coke are Carbonated Water, Sugar, Caramel Colour, Acidulant, Natural Flavours and Caffeine. The raw materials and the bottles are imported from the “Coca-Cola Export Corporation of Singapore. They also import from France, Egypt. The company locally imports some portion of the sugar. The formula of their product is provided by the “Coca-Cola Export Corporation.” Manufacturing Process The products are manufactured in three stages. In the first stage the bottles are cleaned (in eight different stages) with water, lime and soda in Varying temperatures. In the second stage the drink is prepared in three giant boilers by mixing boiling water with sugar, the concentrate and adding carbon-di-oxide to the mixture. In the third stage this drink is sent to the refilling line where the bottles are automatically refilled, sealed and crated. Employees and Workers Here we are presenting a table with the details data about the employees & workers of Tabani Beverage Co. Ltd. Post

Type of Payment

Officer Employe e Worker Worker Worker Production Capacity

of Number

Salary Salary

Type employment Permanent Permanent

Salary Daily Payment No work no pay

Permanent Permanent Temporary

112 500 450

65 215


Tabani Beverage has two production lines, which produce this output. One with capacity of 500 bottles of per minutes (BPM) that product the 250ml and 1000 ml. bottles and another with a capacity of 250 BPM which produces 175ml bottles. The drinks can be produced one at a time simultaneous production of the three drinks are technically impossible. Another company Abdul Monem Ltd. helps Tabani Beverage to produce these bottles. They have two site areas in Chittagong and Comilla. The production chart is given below:

Packages

Chittagong 10 Acres 1997 KHS-Germany(PLC Controlled-Fully Automated) 600 BPM 6.5 Mill-Cases/Yr 250ml, 1000 ml

Capability

Plastic Cases

Site Area Year of Operation Line Capacity

Comilla 6 Acres 1987 H&K/KHS-Germany 450 BPM 4.5 Mill-Cases/Yr 175ml, 250ml, 1000ml. -

Production Assistance Coca-Cola Export Corporation is providing technical assistance & production formulas of various Coca-Cola products produced by Tabani Beverage Co. Ltd. They also provide a product specialist to ensure the quality of the product. Coca-Cola Export Corporation also arranges various programs to improve the skill of the employees of Tabani Beverage Company in home and abroad. In fine we may say Coca-Cola Export Corporation is always ready assist Tabani Beverage Company. Company Profile of Globe Soft Drinks Ltd. Globe Soft Drinks Ltd. started its operation on 17 th July 2002 through a colorful and gorgeous launching ceremony at winter garden of DHAKA SERATON HOTEL. The launching ceremony was attended by all of their distributors and leading personalities of this country. The Globe Soft Drinks Ltd. is able to produce carbonated and non-carbonated drinks, natural juice and mineral water in its plant. The plant is well equipped with hi-tech and modern machineries from Italy. With the pharmaceuticals background the company is committed to quality productivity and innovation in manufacturing and selling. All of their products are manufactured and packaged in a manner designed to ensure highest possible quality as the products and packages are done by latest PLC based sophisticated machineries. Water is the basic in addition to their German origin concentrate, ingredient in URO and its allied products comprising over 85% of the total volume. In order to produce an appealing and refreshing beverage, the ingredient water must not contribute substances which will affect the taste or appearance of the drinks. It is essential, therefore, that only water of the highest quality be used in the production of URO and its allied products. Board of Directors: Mr. Harunur Rashid - Chairman & Managing Director.


Mr. Mamunur Rashid - Director Mr. Shahiduddin Alamgir - Director Mr. Ahmed Hossain - Director Mr. Sirajul Islam Swapan - Director The Globe soft drinks Limited is situated besides Maijdee Road, near at Chowmuhani, the commercial center of Noakhali district. It is 173 Km far from capital city, Dhaka. The register office of the company is located at Alipur, Maijdee Road, Begumgonj, and Noakhali, Bangladesh. Telephone: (0321) 52079, 51125, 51629, 51996 Fax: (0321) 51829, E – Mail: gplnkl@bttb.net.bd The industrial units are located at BSCIC industrial Area, Begumgonj, and Noakhali, Bangladesh. The Dhaka office is located at House No- 251/L (New), Road No- 13/A (New), Dhanmondi R/A, Dhaka, Bangladesh. Telephoneď Œ02) 8110460, 8128018, 9121562, Fax: 880-2-9126122, E-mail:globe.pl@bdcom.com. All central marketing activities are conducted from the Dhaka office. The principal activities of the company are manufacturing of quality medicines for human being and sales there of. The company employed 540 as of December 31, 2004. Globe Soft Drinks Ltd. is a member of Globe Pharmaceuticals Group of companies Ltd.The other member companies of this group are as follows: Globe Pharmaceuticals Ltd. Globe Biscuits & Dairy Mills Ltd. Globe Soft Drinks Ltd. Globe Drugs Ltd. Globe Fisheries Ltd. Globe Agro vet Ltd. Globe Flour Mills Ltd. Getex Plastic Ltd. Getex Composite Textiles Ltd. Globe Pharmaceuticals group of companies Ltd. is a leading national business house engaged in pharmaceuticals business for the last 18 years. As part of the diversification plan they have already entered in the FMCG market with their ISO 9002 certified company Globe Biscuit & Dairy Milk Ltd. As part of the expansion plan in the FMCG market the company has entered in the carbonated soft drinks market. Mission: Each of its activities must benefit and add value to health for all of our society. Developing promoting the health sector of the national economy by enhancing national economy by enhancing corporate, moral and ethical values, catering to users need through manufacturing and supplying quality medicines, maximizing goodwill and ultimately bringing about changes in the quality life in Bangladesh.


Vision Building a true marketing led enterprise with motivated workforce, innovative vision, and strong revenue based product portfolio and customer satisfaction. Objective: Plan for long term perspective and design the policy for clarity, responsibility and accountability. Quality: The Commitment To achieve and maintain a steady quality, a range of sophisticated state of the art technology is engaged in operation. Globe has adopted the latest quality philosophy by organizing a well equipped Quality Assurance Department in the plant in addition to Quality Control Department. Above all highly qualified, well trained, experienced and dedicated professionals are our most valuable assets. Research & Development: GLOBE Research and Development is devoted to improve the health care facility of people. GLOBE has brought in advanced technology for its Research and development works. Research and development includes the bibliographic search aided by a resourceful library, design and selection of process that maximizes efficiency and minimizes the environmental impact, accelerated and long term stability testing, product quality optimization and translation of new scientific insight into the products. Global Operations Globe has extended its range of services towards the highway of global market. Registration of many of Globe finished goods in Asia, Europe and Africa is now under process. Industry Standard for Globalization Globe is now on its way to becoming a high performance Global company. To this end Globe is going to build a new plant which is expected to go into operation by 2006. This plant would be of USFDA standard manufacturing and quality assurance facilities. Ensuring Customer satisfaction Globe is committed to ensure better life through quality medicine. The ultimate motto is to ensure customer satisfaction by exceeding their level of expectations. The extensive marketing network comprising of latest technical and logistic support along with more than 390 skilled and qualified field staff is a key to succeed in achieving customer satisfaction level beyond their expectation. The modern warehousing and completely computerized invoicing facilities of Globe ensure just in time delivery and high customers satisfaction.


Production capacity When they started first the production capacity of their plant was 10,000 litres of carbonated soft drinks per hour. To meet the increasing market demand they have increased their production capacity to 25,000 litres per hour at the end of 2003. Future plan A complete new AST Beverage Ltd. in Dhaka is going to start producing carbonated soft drinks and mineral water from April.2005. AST Beverage Ltd. will be able to produce 30,000 litres of carbonated soft drinks and 30,000 of litre mineral water per hour. Very shortly the company is going to launch some more exciting new flavours of carbonated soft drinks in the market. The company has already started to export its product in India. Very shortly they will be able to export their product in some more neighbouring countries Global Beverage Company Limited: The Youth Group of Companies founded in 1984 with an elementary Garments manufacturing unit. The group has expanded to Garments & textile related eight industrial entities operating profitably. Striving out of its elementary garments manufacturing unit Youth Group spanned a fantastic jump onward within a brief period of ten years and emerged to be a prolific manufacturing conglomerate in Bangladesh. The Group takes to its wing a sweeping wind generated by the eight units of diverse industrial entities down under its trend setting enterprise. These units excel in product diversity ranging from corrugated carton units, general merchandising, buying agency, terry towel, industrial thread, C&F division, food & beverage.... to hundred percent export led garments, its backward linkage enterprises and a full-fledged textile mill. Backward integration and diversity has been the source of strength. Having consolidated its position in the garments sector the group now is going into diversification to accelerate its growth further by entering the domestic market with fast moving consumer products. The Group now is focusing on the food and beverage product category with a vision to offer consumers global premium quality products and brand names at an affordable price. Diversification outside of garments started since 1998 with entering into the energy sector and into the food and beverage sector. The Energy Development Company Limited and the Global Beverage Company Limited are the two new diversified concerns so far. The enterprises of the Youth Group are hundred percent export-oriented businesses, except the Global Beverage Company. The Group earned turnover of about BDT 135 Crore in the year 2000-2001 from export. The 2002-03 annual turnovers from export is projected to be near about two billion in BDT. Over last decade, the group’s revenue generator was the garments export and backward integration.


Islami Bank Bangladesh Limited (IBBL), the financing partner of the Youth Group has contributed significantly to the growth. Subsidiary Enterprise of the Youth Group of Companies Garments Division Youth Garments Ltd. Chowdhury apparels (Pvt.) Ltd. Dewan Modern Garments (Pvt.) Ltd. Youth Fashion Ltd. Dewan Apparels Ltd. Textile Division Unicom Textile Mills Ltd. Southeast Fabrics Ltd. Impact Thread Ltd. Youth Spinning Mills Ltd. Trading Division Youth Garments (C&F) Ltd. Fair Deal Enterprise Multimode Merchandising Ltd. Food & Beverage Division Global Beverage Co. Ltd. Garments division Shirts, Blouse, Trousers, Shorts and Knitwear Textile Division 100% cotton, Polyester, and Blended Fabrics, T/C Woven Interlining; 100% Cotton Terry Towel, Shop Towel, Bar mops, Bathmat, Beach Towel; and 100% Polyester Spun Sewing Thread. Packaging Division Corrugated Carton, Neck board, Backboard and Tissue paper. Food Division (Global Beverage Co. Ltd.) The GBCL is the exclusive franchisee for manufacturing and marketing the Virgin carbonated beverage soft drinks brands within the territory of Bangladesh. At present the GBCL is producing the following brands in cans as well as in 1.5 L and in 500 PET bottles. Virgin Red : Regular Cola Flavored Carbonated Soft Drinks (CSD) Virgin White : Diet Cola Flavored CSD Virgin Orange : Orange Flavored CSD Virgin Blue : Lemon-Lime Flavored CSD The Global Beverage Company Limited: Nature of YOUTH is always to look out for ways to be better and better with the passes of time and to re-energize own self, to be more interesting, fun, innovative and diverse. It’s a process of continuous improvement so do YOUTH GROUP and its Management. Youth Group Management was searching for diversification and new ventures to satisfy domestic needs rather than long established export led concerns. Especially, the Managing Director Mr. Feroz Alam was eager to come-out from the monotony of simply integrating backward and forward in a single industry. And finally, he could discover the domestic market segment where the consumer had been consistently ripped-of and under-served. At that time he undertook a survey on “Consumer Attitude towards Soft Drink in Bangladesh”.


Through that research study, it was discovered that the most of the beverage brands operating till then had some serious drawbacks causing the consumers victim in several ways instead of properly serving; for instance, lack of hygiene maintenance in traditional glass bottles and in fountain served drinks – was an important thing that stroke Mr. Alam. After all these thinking, conducting research study and feasibility study, searching and contracting the franchiser company and accomplishing so many other jobs the Global Beverage Company Limited was formed to launch the due and appropriate beverage brand – Virgin carbonated soft beverage drinks. Virgin carbonated soft drink brands are extremely popular in the U.K. and part of Europe due to its satisfying capability, not due to enjoying long running monopoly or duopoly in the market. The comment noted here is by no means worthless, because the Virgin brands are already proved to be very much popular in Bangladesh within a very least time period. The properties that facilitated this brand to satisfy the consumers along with to gain competitive advantage over its competitors can be seen as the following characteristics: Product Strength Manufacturing strength Marketing strength & distribution strength Objective and Functions of Global Beverage Co. Ltd: Global Beverage Company Limited objectives are; Supply Quality Soft Drinks to the consumer of Bangladesh Best use of potentiality of Beverages industry of Bangladesh Use the most modern technology in business field to the best possible matches with the socio-economic condition of Bangladesh. Give opening to the new jobs.

extent, which

Developing a set of human resources with the most modern business philosophy, practice and technology. Try to start a new era about the consumption of soft drink with can. Product Strength Virgin CSD achieved no I position in terms of taste in UK at a blind test. In Bangladesh within a short span of time gained significant market share. Virgin beverage brands are 100% Hygienic, becauseConventional bottles that are used even year after year never can guarantee hygiene, whereas can is fully pilfer proof from any such deterioration’s. Fountain CSD widely, sold in the fast food shops and mobile tri-vans are most unhygienic; because the source of water to prepare fountain CSD is the WASA supplied raw water, which we know are mostly probable to be contaminated and harmful to health, while Virgin is always free from such impure water usage. Quality and taste is proved to be of international premium standard. International premium quality product at an affordable price coupled with convenience of non-returnable packaging would have provided GBCL its competitive advantage over its competitors in the beverage market. No chance of leakage in the scaled can. Attractive can and PET bottles coupled with premium standard taste first time in Bangladesh.


Easy availability at a reasonable and at an affordable price. Easy to open, carry, and consume, even while moving with any transport. Information about the ingredients and date of expire is clearly stated. Contains only carbonated soft drinks flavored with juice. On the other hand retailers are willing to keep this brand in their shop subsequent rationale.

because of the

The attractive packaging enhance the beauty of the shop This packaging is long lasting and has a long shelf life. Timely delivery and availability. Low cash involvement from the retailers side Low shelf space required compare to conventional bottle. All these attributes and offerings allowed the competitive advantage in the market place for this new brand of beverage drinks. Manufacturing Strength: The GBCL has got the technologically most modern manufacturing facility for beverages installed with very sophisticated quality control equipment. GBCL investment in the capital machinery cost approximately Tk. 20 crore. It is the most modern and hygienic beverage plant in Bangladesh. Key Features of the Manufacturing Plant Process capabilities Back process can produce both CSD and non CSD beverages Tubular pasteurize for non-CSD/juice/hot filled beverage products. On the analyzer and state of the art lab equipment to ensure quality. Filling capabilities Fully automated can filling-line Fully automated PET filling-line from blowing stage to the final packing. Quality Control capabilities GBCL has an online analyzer capable to detect any quality problem while production; the analyzer continuously monitors the raw material and product at every stage. That valuable analyzer is only used by GBCL for the first time in Bangladesh. No other beverage plant in Bangladesh can offer such diverse range of capabilities under one roof. Because of up to date technological use GBCL is clearly ahead to its competitors. Above all the company has the will power to be successful. Marketing strength & distribution strength: A well-defined marketing structure is already in place, consisting – Brand-Marketing Trade marketing & distribution


Management draws on talented people from within the group as well as from outside professionals to confront and solve problems in new, practical ways, ways that work. Management style empowers and encourages fresh ideas. The marketing & distribution team consist of market proved professional persons. The marketing team headed by Sayef U. Nasir Ex-BAT personnel and Distribution team headed by Tariquzzaman, He was in BAT, MGH and PEPSI. Under their leadership the Virgin brand is growing very fast in our country. Basic corporate structure Global Beverage Com. Ltd. has divided its total organization into varies departments and dressed them with positions as required for their smooth functioning and achieving the target of the organization. Global Beverage Company Limited has four departments; those are production department. Sales, Marketing and Distribution department and personnel department. Production Department Global Beverage Company Ltd. produces soft drinks in its own factory at Gazipur. The factory runs six days in a week in multiple shifts. Production department divided in to four sub department viz. Quality Esurience Department, Production Department. Maintenance Department, Factory Administration Department. Factory Administration Department Factory administration department plays a very important role between production and operation. Factory administration department for making combination for all the departments and continue the job with out any problem. Those departments are Store Department, VAT Department, Shipping Department, Accountant Department, Administrative Department and Security Department. Sales, Marketing and Distribution Department Sales, marketing and Distribution department are a vital department of Global Beverage Com. Ltd. Chief executive of Marketing department is General Manager of Sales, Marketing and Distribution department. Marketing department can be divided into three department viz. Group Brand Manager, Deputy General Manager Sales and Personnel Manager. Three have also a Regional Sales Manager and some Area Manager in some different region. Global Beverage Com. Ltd. divides all the country as five parts for batter way to distribute their product. Virgin in International Market: Virgin is a well-known brand name over the world. Virgin Trading Company Limited (VTCL) was found in November 1994 in the UK to market a range of FMCG goods under the virgin brand name in a 50/50 deal with COTT of Canada. Now they are operating business with a lot of products such asTravel: Virgin trains, Virgin Holiday Travel programs, Virgin Flights, virgin travel guide Life Style: Virgin Food & Drinks, Virgin Health & Beauty, Virgin Wines. Entertainment: Virgin Music, Virgin Movies, Virgin Books, and Virgin Website.


Mobile: Virgin Telephone, Virgin Mobile. Home Service: Virgin Internet Service Provider, Virgin Gas & Electricity Service Provider, and Virgin Telephone Service Provider. Motoring: Virgin Bikes, Virgin Motorcars. Financing: Virgin Credit card & life insurance provider by Internet and Mortgage, Virgin Business guide. Virgin Trading Company Ltd. (VTCL) purchased COTT’s share of the Virgin Cola Company in January 1998. And they are taking over the full control of sales, marketing, logistics and distribution. Virgin drinks operated its business in 14 countries of the world those are given belowUnitedKingdom(UK),Sweden,Croatia,France,Switzerland,Tunisia,Algeria,Bangladesh,South Africa,Italy,Singapore,Taiwan,Russia,Japan. From this following chart Virgin launches their business in 14 countries world wide. South Africa captured the 1st position, Bangladesh took the 2nd position and United Kingdom placed the 3rd position by the context of selling of Virgin soft drinks Virgin Soft Drinks in Bangladesh Context In 1984, the Youth Group started their garments industry largely. Now they are continuing their business. Global Beverage Company Limited (GBCL) is the sister concern of Youth Group. GBCL has introduce the Virgin soft drinks on 3rd December in 1999 for the first time in Bangladesh with an exclusive franchise agreement of Virgin Enterprise Limited of United Kingdom for manufacturing and marketing its beverage brands “Virgin” within Bangladesh territory. Now Virgin brand of soft drinks one of the country’s fastest growing carbonate beverages. Production Zone Virgin drinks started their business since 1999. Its production zone located at Gazipur and starting production from the beginning. This zone covered more than three acors of land. GBCL has a future plan about expansion of production area. Size of Workers and Their Working Hours: Global Beverage Company Ltd. (GBCL) has 140 skillful workers in their product zone, and management level. Workers work in 2 shifts per day and 8 hours for per shift. Raw Materials: The raw materials for Virgin cola are divided into two categoriesI mported raw materials: Aluminum can pet resin for pet bottle making LDPE resin for pet bottle cap making


Activated carbon Sodium citrate, Citric acid, Ascorbic acid, sodium benzoate, Phosphoric acid, caffeine. Local raw materials: Carbon dioxide gas (From Bangladesh Oxygen Company) Sugar Color Labeling Corrugated box carton Manufacturing Global Beverage Company Limited (GBCL) manufacturing process is more modernized and hygienic than the others in beverage industry. They are producing their product according to market demand for the actual and potential customer. In processing level they follow international standard quality and attractive packaging. Production Flow Chart

Production Process

Ready for Market

Water Treatment

Paletization

Syrup Preparation

Shrink Wrapping

Can Seaming

Tray Packaging

Filling-

Warming- Washing

Date Coding

Fill Level Detect

Source: GBCL Mission Statement : Global Beverage Company Limited (GBCL) has mentioned its product oriented mission statement is, “We are providing international quality drinks with world famous brand name at an affordable price.” GBCL follows niche marketing strategy. They segmented product with different sizes, flavors and colors. Mission Dialog: GBCL continuing their business arena with attractive mission dialog “IT’S YOUR LIFE, COLOR IT.” Now they are taking steps reforming this mission dialog in terms


of Bengali. It is the way where Virgin can influence people very popularly for their easy understanding. Company’s Future Plan: Global Beverage Company Limited (GBCL) has a future plan to introduce snacks-food as a new Virgin product in Bangladesh and also introduce fountain pack. Now they are trying to launch 250 ml with a plastic container. Management hopes that it will increase their sales. Company Profile of Pran Beverage: Agriculture Marketing Company Ltd. (AMCL) was set up in 1985 for farming and marketing of agricultural products for local and export market. Subsequently a modern fruit processing plant with bottling and canning facilities was added in 1993 to produce fruit juice squash, sherbet, jam, jelly etc. At present Agriculture Marketing Company Ltd. have 40 products in different types and sizes in existing market in Bangladesh and other country in the world. It has a dehydration unit to dehydration mushroom, banana, mango, papaya, beans and other fruits and vegetables, its products have good acceptability to the consumer all over the country. Its turnover has been increasing day by day. CORPORATE MISSION POVERTY AND HUNGER ARE CURSES OUR AIM: TO GENERATE EMPLOYMENT AND EARN DIGNITY AND SELF-RESPECT FOR OUR COMPATRIOTS THROUGH PROFITABLE ENTERPRISES

The company's processing unit started commercial production in July 1993 arid launched its products in the market under the brand name PRAN.The company was initially engaged in only agro-business. The company cultivated many types of fruits and vegetables. More over extensive cultivation of gherkin, mushroom, and body corn were taken up through contract grousers. Processed gherkin and fresh vegetables were exported and mushroom and baby corn were canned and marketed locally.


Continual Improvement of the Quality Management System Management Responsibilitie s Commitment P olicy

Customer Requiremen t

Resource Management

Objective

HRM & Training

P lanning

MIS Accounts & Fin.

Inf rastructure

M gt. Analysis & Imp rovement Audit

Review

Customer Satisfaction

P rocess/P roduct Control

P urchasing

Improv ement through analy sis

P roduction Calibration

Product Realization

Product

The company processes most of the fruits produced in Bangladesh like mango, pineapple, banana, guava, lemon, satkora, and many other types of fruits and vegetables including tomato. The plant facilities including canning, pulping, juice making and bottling jam, jelly, pickles etc. It has also facility for dehydration of fruits and vegetables and mineral water. The technology is for tissue culture laboratory. The Agricultural marketing company limited has incorporated in Bangladesh on May 1985 as privet limited company under the company act, 1913 and subsequently in 22nd June, 1993 the company was converted into public limited company.

Pran Is Specialized in Agro Processing and the Country’s First & Largest Agro Processor Having Iso 9001, Haccp and Halal Certification


The company is a publicly traded one listed with both Dhaka and Chittagong stock exchanges in January 1996. By this it has become a renowned agro- processing industry in food sectors. Agricultural marketing company limited at a glance: Name of the institution: Agricultural marketing company limited (An enterprise of PRAN-RFL Group) Year of establishment: 1985 Head office: Property Heights, 12, R.K. Mission road, Motijheel C/A Dhaka. First commercial production: July, 1993 Human Resources of PRAN-RFL Group (Till December 2006): Property Development Ltd (PDL) 40 Agricultural Marketing Company Limited (AMCL) 1679 Common Services Personnel (CS) 305 Bangladesh Lift Industries Limited (BLIL) 79 Rangpur Foundry Limited- RFL (Head office & Sales) 229 Rangpur Foundry Limited- RFL (Factory) 123 PRAN Foods Ltd. (PFL) 1712 PRAN Agro Ltd- PAL (H/O & Natore) 875 RPL (PVC & Plastic Factory) 1202 PRAN Dairy Limited (PDL) 324 Banga Agro Processing Limited (BAPL) 20 PBL 852 Export 33 Distribution H/O 90 Distribution Ghorashal (PIP & AMCL) 257 Total number of sales Distributors 400 FACTORIES: Ghorashal (AMCL & PIP) Rangpur (RFL) Nator (PAL) Brahmonbaria Chittagong Their corporate head office located in following address: Agriculture Marketing Co. Limited Property Heights, 12, R K Mission Road Dhaka 1203, Bangladesh. Phone Number: 88-02-9563126, 9667482-3 Fax: 88-02-9559415 Email: amcl@prangroup.com Website: www.pranfoods.net Pran agriculture marketing company limited has controlled the nine individual Business Units on their umbrella. Agricultural Marketing Company Limited (AMCL) PRAN Foods Limited (PFL)


PRAN Agro Limited. (PAL) PRAN Agro Business Limited (PABL) Bango Agro Processing Limited (BAPL) PRAN Dairy Limited (PDL) PRAN Beverage Limited (PBL) PRAN Confectionery Limited (PCL) PRAN Exports Limited (PEL) Other side they are controlled six factories to produce their product: 01. PIP (Narsingdi) PRAN Dairy PRL ACML (Part) PBL PCL PEL 02. Ghorashal ACML PFL 03. Rangpur RFL BAPL ( Rice) 04. Natore PAL PABL 05. Chittagong PRAN Tea Al- Mostafa Bread & Biscuit (PVT) ltd (Sub-contract- Biscuit) Fulkoli Food Products (Sub-contract- Biscuit) 06. BramhonBaria 1. Ratan Foods Ltd. (Sub-contract- Biscuit) Export Our Major Market: India, KSA, Djibouti & UK We are exporting more then 64 Countries: Angola, Australia, Austria, Bahrain, Belgium, Benin, Brunei, Burkina Faso, Bhutan, Cameroon, Canada, Capo Verde Islands, Chad, Congo, Djibouti, Eritrea, Equatorial Guinea,Ethiopia, France, Gabon, Gambia, Germany, Ghana, Greece, Guinea, India, Italy, Ivory Coast, Japan, Korea, KSA, Kuwait, Lebanon, Malaysia, Mali, Mauritania, Mauritius, Myanmar, Mayotee, Nederland Antilles, Nepal, Niger, Oman, Pakistan, Palestine, Qatar, RCA, Reunion Islands, Senegal, Sierra leone, Singapore, Sri Lanka, Sudan, Sweden, Switzerland, Togo, UAE, UK, USA, Yemen. Exported Products: Fruit Juices in Aseptic Pack & Glass Bottle, Fruit juices in Tin Can, Fruit Drinks in Plastic Bottle, Instant Powdered Drinks, Pickles in Glass Jar & bulk, Canned Fruits & Vegetables, Extruded & Bangladeshi Snacks, Tea, Rice, Puffed Rice, Flatten Rice, Jam & Jelly in Glass Jar, Cup & bulk, Spices, Mustard Oil, Mineral Water, Dehydrated Fruits, Tomato Ketchup /


sauce in Glass Jar, Candies, Bubble Gum, Ball Gum, Molasses, Lollipop, Cup Jelly and so on. Import We are import following items: Raw Materials: Cassava powder, Corn Grits, Orange Concentrate, Potato starch, Potato granules Chemicals: Ascorbic Acid, Beta Carotene, CMC, Citric Acid, Caustic Soda, Hotmelt, Pectin, Potassium Sorbet, Xanthan Gum, Different Flavors, Confectionery raw material Packing Materials : Aluminum Foil, Crown Cork, Flexible Packing material, Glass Bottle, Glass Jars, HDPE, Lug Cap (30, 53 & 63mm), PET, Shrink Labels, Shrink caps, Tin Can, U-Straw. ISO 9001 Certified Agricultural Marketing Co Ltd is the first and largest food processing industry in Bangladesh to earn the prestigious distinction of ISO 9001 certificate. This supreme certification ensures that PRAN products reach to the consumers maintaining the highest level of quality & satisfaction. Other then AMCL, PRAN has also acquired many International certificates like HACCP, HALAL, Vegetarian sign and so on. Our another business unit Rangpur Foundry Ltd (RFL) has also got the prestigious certificate "ISO 9001" for it's quality management system.


Countrywide Distribution Network Company appointed Sales Force to cover every part of the Country. Sales Network Pran sales force comprises as bellow, Number of Executives: 137.Number of Sales Representatives 1510 (Selling to retailers all over Bangladesh through Distributors) At this moment company appointed total Distributors are 720. Company Profile of Akij Beverage Akij beverage is a unit of akij group. Very recent, in April 2006 Akij group come in market with Beverage. Others unit of akij group are: Dhaka Tobbaco Dolphin match Akij Jute mill Akij cement Akij Navigation Akij group of companies’ corporate office is lockated in 73, Dilkusha C/A, Dhaka as name of Akij chamber. Machineries suppliers All of Beverage production machines supplied by German company “Knonch” Raw materials suppliers A German company name is “Firmenich” provided all of raw materials. Objective of Akij Beverage Ltd.: Supply Quality Soft Drinks to the consumer of Bangladesh Best use of potentiality of Beverages industry of Bangladesh Use the most modern technology in business field to the best possible extent, which matches with the socio-economic condition of Bangladesh. Developing a set of human resources with the most modern business philosophy, practice and technology. Make a new era about the consumption of soft drink with can & pet bottle. Product Strength Akij Beverage achieved great position in terms of taste In Bangladesh within a short span of time gained significant market share. Akij beverage brands are 100% Hygienic, becauseConventional bottles that are used and WASA supplied raw water, which we know are mostly probable to be contaminated and harmful to health. No chance of leakage in the scaled can. Attractive can and can PET & bottles coupled with premium standard taste first time in Bangladesh. Affordable price. Easy to open, carry, and consume. Information about the ingredients and date of expire is clearly stated. The attractive packagings enhance the beauty of the shop long lasting packaging .Timely delivery and availability. Manufacturing Strength Very sophisticated quality control equipment. Investment in the capital machinery cost approximately Tk. 26 crore. And It is a most modern and hygienic beverage plant in Bangladesh. Process capabilities Back process can produce both CSD and non CSD beverages


Quality Control Akij Beverage has an online analyzer capable to detect any quality problem while production; the analyzer continuously monitors the raw material and product at every stage. Mission Mission is to make quality products that satisfy customers’ needs with an affordable price. Company Profile National Beverage Sunman group is one of the pioneers in Garments Business in Bangladesh. It has got 17 Factories out of which one is at abroad (at Cambidia). They have total 95 production lines with capacity of 100000 dz per month in different styles and categories. Their annual export is around 1000000 dz which could be increased up to 1200000 dz. Their annual turn over is around seventy million US Dollar (US$70.000.000.00). They are working for USA,Canada and Europian market for different styles and catagories.The factories are equipped with modern machines and augmented with latest attachments. Our total numbers of machines in the Group around 4000 which is increasing with the increase of business volume. Considering the importance of Backward Linkages in garment sector they have developed own Textile sector also, where they have facilities of spinning,weaving,dying,printing & finishing of different type, contents and constructions of good quality fabric. The Textile is still developing and they are setting Textile with modern machineries and equipments to compete with the World standard. Sunman group of companies at a glance National Beverage Industries ltd. Alfa Textiles ltd. Glory industries ltd-1 Glory industries ltd-2 Sunflower Garments ltd. Sunman Apparels ltd. Quasem saewhan ltd. Pioneer Dresses ltd. United Dresses ltd. Sunmark Jeans ltd. Golden Horizon ltd. Sagar Knit Wears ltd. Sunknit Textiles ltd. Sunman sweaters ltd. Overseas companies Coast Line Mode GMBH (Germany) Five Continents Credit Ltd (Hong Kong) Tees Mart Inc. (U.S.A.) Benros (Moscow) Ocean Gmts.Co. Ltd.


(Cambodia) National Beverage Ind Ltd has a plant located in Hemayetpur Savar, Dhaka. Capacity of 450 bottles per minute, which is 4 million cases per year. The total market share for beverages in Bangladesh is approximately 40 million cases per year among which Sun Crest Cola has 3.5 million cases. National Beverage Ind ltd is the authorized bottler for the Sun Crest Cola, Bubble up Kickapoo, Apple and Moza. National Beverage Ind Ltd started their bottling operation by acquiring the plant in 1982. Hemayetpur Savar Site Area 18 Acres Year of operation 1982 Line KHS - Germany (PLC Controlled-Fully Automated) Capacity 450 BPM 4 Mill. Cases/Yr 250ml, 500 ml, 1000ml, Packages 1500ml & 260ml The Corporate Profile Corporate Head Quarters: House # 67, Road # 1, Block-I, Banani, Dhaka- 1212. Year of Establishment: 1982 Business Lines Construction: Exporters of Ready Made Garments. Bottler of Sun Crest Cola, Bubble Up, Apple, Kickapoo. Producer of Moza Joy Juice. Producer of Ice Berg Mineral Water Yearly turnover: US$ 200 million Sun Crest Cola in Bangladesh Sun Crest Cola entered the local market in 1982.National beverage Ind Ltd started bottling in 1982. The marketing of Sun Crest Cola by National Beverage Ind Ltd concentrates all divisions of the country. They are -Dhaka, Chittagong, Barisal, Comilla, Khulna, Bogra and Sylhet. Marketing Strategy of sun Crest Cola in Bangladesh by National Beverage Ind Ltd. In Bangladesh, Sun Crest Cola has a market share of 10%. Their closest competitor is Royal Crown Cola (R.C Cola) a product from Partex Group. The approximate market share of the companies as follows, which has been taken from Sun Crest Cola Bangladesh Office. Company Profile of Al-Amin Group Al-Amin Group, one of the leading conglomerate groups of companies in Bangladesh. Anwar Mirza, a visionary leader and the founder of this Group, who turned a small bakery into the largest and the most modern biscuits manufacturing company in Bangladesh. The group was incorporated in 1969 as a private limited company in Bangladesh. Today, Al-Amin group is more than a biscuit company. The group has vested interest in beverage, trading, textile, insurance company, snacks, fishery, pharmaceutical, oil, plastic, and other consumer products. The group generates employment opportunities for more than twenty five thousand people in Bangladesh. Al-Amin group is also one of the largest buyers of our country's agricultural and dairy products. The group is also one of the largest taxpayers of the country. Al-Amin Group plays a vital part of the everyday life.


Mission: Mission is to make quality products that satisfy customers’ needs with an affordable price that is within the range of their buying capacity. Vision: Vision is to be the best and to be the world’s leader in everything we do, and every product we make. Company Profile of ZamZam Group: ZamZam Iran co.established on 1979 and ZamZam group consists of 16 soft drink manufacturing companies on top of which stands ZamZam Iran .ZamZam Iran as the mother co.supplies all types of extract,concentrate,bottle crows & caps and pet bottles required by other ZamZam companies. Other ZamZam companies’ lockated all over the Iran and other ZamZam licensees in other countries produce soft drinks. ZamZam group produces over 65 products and distributes them soft drinks with cola, orange,lemon base flavors. ZamZam group is the largest soft drink manufacturing company existing in iranian domestic market, monopolizing non-alcoholic beer in domestic market and as a leader company in production of soft drinks. ZamZam has established under provisions of private sector and bearing with expression to strengths of Iran industries and in presence of five continents in reliance with its abilities. Management Policy: The main objectives of ZamZam group are based on the supply of high quality and miscellaneous products to achieve the satisfaction of local and international customers. Such as a policy shall be followed by establishment and maintenance of quality assurance system within the framework of world standards. The management of ZamZam group declares the following for the realization of its long-term and short-term objectives in line with its commitment to quality policy: The strategic goal of the group in the field of management systems. Improvement & development of the efficiency of management systems existing in the subsidiaries Strategies of the group on management systems: Policy setting and planning the establishment of management systems in group companies. Establishment of the management systems ISO 17025, DHSAS 18001, ISO 14001, ISO 9001, HACCP, TQM and in group companies. Access of the group companies to motional titles-including national quality award, consumers right protection, Typical Unites, Green Company, Health-findlay company etc. Application of quality engineering systems in group companies. Application of self-evaluation systems in group companies. Improvement and uniformity of the executive methods in group companies through balanced evaluation. ZamZam Group strategies


Superior in Quality Among the priorities and strategies of the drink industrial group is the superiority in quality, To have an exact control of the production process and quality of the products produced in any of the plants (gaseous drinks, matte, and churned yogurt drink) a quality control lab has been established on the production line of each single plant and different physical and chemical tests are carried out according to international standards and the standards declared by ministry of health. Superior in market share Research on local and international markets, access to new markets. Development of activities in the existing markets. Increasing the production capacity. Improvement & development of sale and marketing systems. Development of international markets for export of products. Using most advanced and update technology. Superior in variety The broad geographic scope of distribution and a taste from one hand and the export of products to Persian Gulf countries from the other hand have provided for ZamZam group’s adoption of a strategy for offering a variety of products. This strategy has caused the development and retention of market share. Increase of Presence in international markets ZamZam group intends to increase its presence in international markets using its scientific and research potentials and integration of international parameters including innovation of a variety of formulation in accordance with the tastes of end-users.It intends to continue licensed production in other countries through the filling companies granted its license. International Marketing International activities of ZamZam are concerning ZamZam products produced abroad and numerous projectsare continued to be completed in this respect. The local investors intending to establish drink producing plants or prossessing the requirements in this respect, may contact ZamZam Iran for conclusion of licensed production agreements and to enjoy the technical and managerial supports of ZamZam group. In Bangladesh product manufacturing under authority of ZamZam Iran co.by Global Beverage Co.Ltd. Bagher Bazar Gazipur. (An Enterprise of Alliance Holdings) Exclusively Marketed by MM Ispahani Limited

Brand History


Introduction of Brand history Brands originated with the 19th-century advent of packaged goods. Industrialization moved the production of many household items, such as soap, from local communities to centralized factories. These factories needed to sell their products nationwide, to a customer base familiar only with local goods. It quickly became apparent that a generic package of soap had difficulty competing with familiar, local products. The packaged goods manufacturers needed to convince the public that their product was just as trustworthy. A brand takes the form of a symbolic construct created by a marketer to represent a collection of information about a product or group of products. This symbolic construct typically consist of a name, identifying mark, visual images or symbols, or mental concepts which distinguishes the product or service. A brand often carries connotations of a product's promise, the product or service point of difference among its competitors which makes it special and unique. It is an attempt by marketers to give the product a "personality" or "image". Because of this, it can form an important element of an advertising theme: It serves as a quick way to show and tell consumers what a supplier has offered to the market. Products that are well known are said to have acquired brand recognition. When a brand has accumulated a mass of positive sentiment among consumers, marketers say that its owner has acquired brand equity. A brand name comprises that part of a brand consisting of words or letters that humans can verbalize. A brand name that has aquired legal protection becomes a trademark. Branding has become part of pop culture. Numerous products have a brand identity: from a common table salt through designer clothes. Non-commercially, branding can also apply to the marketing of entities which supply ideas or promises rather than goods and services -such as political parties or religious organizations. Consumers as a group look on the brand as an important aspect of a product and it can also add value to a product or service. It carries the reputation of a product or company. A branded laundry detergent may sell twice as much product as a store-brand detergent. Although it is almost exactly the same, people have learned to think that the branded product is better and that because it is more expensive it has a better quality. History of Coca-Cola Company John Styth Pemberton, an Atlanta pharmacist who developed patent medicines, first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. It was May of 1886 when the pharmacist concocted caramel colored syrup in a three-legged brass kettle in his backyard from carbonated water, cane sugar syrup, caffeine, and extracts of kola nuts and coca leaves. He first distributed the new product by carrying Coca-Cola in a jug down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the soda fountain. Whether by design or accident, carbonated water was teamed with the new syrup, producing a drink that was proclaimed Delicious and Refreshing.


Picture: Jacobs’s Pharmacy in Atlanta, Georgia (USA) Dr. Pemberton's partner and bookkeeper, Frank M. Robinson, suggested the name "CocaCola" and penned it in the unique flowing script that is famous worldwide today. Mr. Robinson thought that "The two C's would look Ill in advertising. On May 29, 1886, the first newspaper advertisement, in The Atlanta Journal, pronounced Coca-Cola "Delicious and Refreshing - A theme still around today. Early Growth In 1886, sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with this No. 1 soft drink brand ever since. For his efforts, Dr. Pemberton grossed only $50 and spent $73.96 on advertising. He had to sell two-thirds of his business in 1888 to cover his losses and keep the business afloat. Pemberton, hoIver, was ill, and was never able to see what a legend he created as he died in 1888.

Picture: The Very First Effort of Advertising (1886) By 1891, Atlanta entrepreneur Asa G. Candler had acquired complete ownership of the Coca-Cola business, with a total investment of $2,300. The next year Candler and his brother, John; Frank Robinson; and two associates formed the Coca-Cola Co. Within four years, his


merchandising flair helped to expand consumption of Coca-Cola to every state and territory of the United States of America. The trademark "Coca-Cola" was first registered in the US Patent Office on January 31, 1893. He also responded to growing concerns over the dangers of cocaine by reducing the amount of coca in the drink to a trace. HoIver, he kept some coca extract in Coca-Cola so the name would accurately describe the drink. Candler only had a patent on the name, and not the drink syrup—that is, the drink’s base, containing all the ingredients minus the carbonated water. He figured that keeping the coca in his formula would legally allow the company to distinguish its drink from imitations. Other companies also produced soda drinks made with kola nut extracts. Early advertising discouraged calling the product "Coke" (as Candler thought it may be misinterpreted as short for cocaine) and urged customers to use the full name. But "Coke" was here to stay and became a trademark in 1945. Candler also spent more than $11,000 on his first massive advertising campaign in 1892. The Coca-Cola logo appeared across the country, painted as a mural on walls; displayed on posters and soda fountains where the drink was served; and imprinted on widely marketed, common household items, such as calendars and drinking glasses. In addition, Candler was the first person ever to use coupons to gain customers for a product. He distributed flyers offering free soda fountain glasses of Coca-Cola to people visiting his drugstore. In 1894 the Coca-Cola Company opened its first Coke syrup production plant outside of Atlanta, in Dallas, Texas. That same year a candy store owner in Vicksburg, Mississippi, installed bottling machines and produced the first bottled Coke. It had previously been sold only at soda fountains. The following year plants Ire spread to Los Angeles, and Chicago. By 1896, the drink was sold in all U.S. states and territories. In 1899 lawyers Benjamin Thomas and Joseph Whitehead of Chattanooga, Tennessee, bought the exclusive rights to distribute Coke syrup to bottlers throughout most of the country for only one dollar. At the time, Candler saw little profit in bottling, and was more than willing to give up that part of the business. Their contract maintained that Candler could withdraw bottling rights, hoIver, if the quality of bottled Coke was not consistently high. Because of differences in availability of time and money, Thomas and Whitehead split their partnership soon after it started. In 1890 Thomas took bottling rights for the Northeast and the Ist Coast. Whitehead received financial backing from Chattanooga businessman John Lupton, and the two formed the Dixie Coca-Cola Bottling Plant in Atlanta. They had bottling rights for the Southeast, and they soon gained rights for the SouthIst and MidIst as Ill. Their enterprise established an extensive bottling franchise system that still exists.

Picture: Coca-Cola was already in wide distribution “at all (soda) fountains” before the ford name became a household word. In those days, only the Ialthy could afford an automobile, and it was still considered quite avant-garde. Thus, it was an attractive and interesting association for coke illustrated in this 1905 advertisement.


In 1915 the Root Glass Company created a contour glass bottle for Coke, its design based on the curvature of a coca bean. This bottle design became a Coke trademark worldwide. The same year, Candler retired from the company, passing it on to his children and moving into politics. He was elected mayor of Atlanta in 1916. In 1919 the Candler family sold Coca-Cola to businessman Ernest Woodruff of Columbus, Georgia, for $25 million. Woodruff’s son, Robert, was elected company president in 1923. Robert Woodruff was a skilled marketer, and he put more of the company’s resources into market research than into manufacturing Coke. His more than six decades of leadership took the business to unrivaled heights of commercial success, making Coca-Cola an institution the world over.

Picture: By 1925, with the “charm of purity”, CocaCola’s sales reached six millions a day. The company took the opportunity of using this figure in one of its ad.

Picture: Coca-Cola discovered the benefits of celebrity advertising very early. This 1934 tray with pictures of famous movie stars Johnny Iismuller (Tarzan) and Maureen O’ Sullivan proved very appealing to their fans.

Wartime Developments During World War II (1939-1945), Woodruff also boosted Coke’s popular image in the United States by pledging that his company would provide Coke to every U.S. soldier. The company did not limit itself, hoIver, to only doing business that would increase its success in


America. In the period leading up to the war, betIen 1930 and 1936, it had set up a division of the company in Germany, and it continued that venture during the war. It recreated its image as a German company and alloId the Germans to produce all but two, secret, Coca-Cola ingredients in their own factories. In 1941 the German company’s president, Max Keith, developed Fanta orange soda using orange flavoring and all the German-made Coke ingredients. The Coca-Cola Company’s wartime efforts helped it expand its global market, often with the economic support of the U.S. government.

Picture: This 1943 ad of coke reflected life during wartime. Coke folloId the troops, with a total of 64 bottling plants shipped abroad during the war and set up as close as possible to combat areas in North Africa, Europe and the Pacific. An order from Coca-Cola’s president gave the assurance that “everyman in uniform gets a bottle of Coke for 5 cents wherever he is and whatever it costs the company.” By the end of the war in 1945, it had established 64 overseas bottling plants. That same year the company registered a patent on Coca-Cola’s popular nickname, Coke. Postwar Development In 1955 Robert Woodruff retired as the Coca-Cola Company’s president. Candler and Woodruff are remembered as the two most important figures in the company’s early growth, both for their contributions to the company and their considerable fortunes donated to the city of Atlanta. After Woodruff’s departure, the company began to diversify by producing new products, acquiring new businesses, and entering new international markets. In 1960 the Coca-Cola Company purchased the Minute Maid Corp., producer of fruit juices, and began offering Coke in cans. BetIen 1960 and 1963 it also launched four new soft drinks in the United States: Fanta, an orange soda; Sprite, a lemon-lime soda; Tab, a diet cola; and Fresca, a diet grapefruit-flavored soda. In 1964 the company acquired the Duncan Foods


Corp. In 1967 it created the Coca-Cola Foods Division (later Coca-Cola Foods) by merging its Duncan and Minute Maid operations. In the late 1960s, Coca-Cola faced difficulties in some of its foreign markets. When the company built a bottling plant in Israel at the outset of the Arab-Israeli War, the governments of all Arab League nations banned the production and sale of Coke. A year later the company withdrew from its markets in India when that country’s government requested that Coca-Cola reduce its equity in joint ventures to 40 percent. The company refused to relinquish so much control over those operations. In 1977 Coca-Cola began packaging Coke and other drinks in two-liter plastic bottles. The popularity of these large bottles grew over time, and their sales earned the company new profits, primarily in small specialty and convenience stores. In 1982 the company introduced Diet Coke, which soon became the best-selling diet soft drink in the world. Also in 1982 Coca-Cola purchased the motion-picture company Columbia Pictures Industries, Inc., also known as Tri-Star Pictures, for almost $700 million. Two years later, the company sold off its Columbia holdings and other media acquisitions to Sony Corporation for over $1.5 billion. By 1984 Pepsi-Cola had gained on Coke’s previous domination of the U.S. market to the point that the two had almost equal sales. In an attempt to regain market dominance, the company attempted the first-ever revision of the original Coke recipe. This led to the greatest business-decision mistake in its history and the gave birth to one of the most talked about marketing mishap in the history of the world. Recent Developments Since 1986 The Coca-Cola Company consolidated all of its non-franchised U.S. bottling operations as Coca-Cola Enterprises, Inc. The new company began acquiring independent bottling companies, a venture that grew into the world’s largest bottler of soft drinks by 1988. While Coca-Cola Enterprises distributes over half of all Coca-Cola products in the United States, small franchise businesses continue to bottle, can, and distribute the company’s drinks worldwide. In 1987 the Coca-Cola Company was listed in the prestigious Dow Jones Industrial Averages (see Dow Jones Averages) index of stock market performance (for the second time, it had also been listed briefly in the 1930s). Its stock is traded on the New York Stock Exchange. Coca-Cola and PepsiCo products occupied nine of the top ten spots in the U.S. soft drink market in the mid-1990s. Worldwide, Coca-Cola ranked first in soft drink sales, and the company earned almost 80 percent of its profits from international sales. Today, Coca-cola is the number one brand in the world. The Coca-Cola company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, producing more than 300 beverage brands (that includes coke, classic coca-cola, diet coke, caffeine free coca-cola, cherry coke, diet cherry coke, fanta, sprite, diet sprite, Mello Yello, Aquarius, Georgia brand ready-to-drink coffee, and hundreds more).


The corporate headquarter of Coca-Cola is situated in Atlanta, USA with operations in over 200 countries around the world through licensing, franchising, and effective distribution networks. It is the global leader in the soft drink industry conquering a market share of 56% according to the global CSD market in the latest Beverage Digest. Brand Elements Other than the product performance, the brand elements of Coca-Cola are considered the features that made the brand the strongest in the world. The following brand elements are visible for Coca-Cola: Name Logo Symbol Color Slogan Jingle Packaging Name The name “Coca-cola”, as mentioned earlier in the History section, was suggested by Dr. Pemberton's partner and bookkeeper, Frank M. Robinson. The reason behind naming it such is unknown. As the product became popular, consumers started to call it “Coke”. It is one of the very few products in the world which consumers call more by the pet name rather than the original one. Logo The coca-cola logo was also designed by Frank M. Robinson. The logo, when first developed, shoId “Coca-Cola in a flowing script where the two ‘C’s Ire written in unique styles. The first C had its bottom part extended; while the seconds C’s top part was extended and was inserted through the loop created by the cursive ‘l’. Now a day, the logo also contains the word ‘Enjoy’ above the word ‘Coca-Cola’ (see next page). There is also a wave that runs below the word ‘Coca-Cola. Coca-Cola’s trademarked logo varies from country to country, but the overall look is retained through the use of similar letter forms and style, even with different alphabets. Some examples are shown in the below:


(English)

(Japanese)

(Hebrew)

(Bengali)

(Chinese)

(Arabic)

(Thai)

(Polish)

Picture: CocaCola Logo in Different Languages (French)

(Spanish)

Symbols The Coca-Cola Company used its logo as its symbol for a long time. HoIver, after the introduction of canned coke in the early 60s, it developed a symbol to go with the can that shoId the coca-cola bottle. the mid 90s they redesigned the symbol and to show both the bottle and the logo on a red circular background.

In

It also shows some drops of water on the background circle and a small splash on the upper left corner of the circle. The drops and splash of water indicates freshness and reminds the consumers about the refreshing qualities of the beverage. Colo Coca-Cola uses red as its brand color. Incase of the logo it is white text with red background. The brand color is not only red, it is ‘customized’. To maintain consistency around the world, the coca-cola company has defined its ‘red’ coloring in the logos and symbols Packaging The coca-cola bottle is arguably the most popular packaging of a product in the whole world. As a matter of fact, may expert will agree to label it the “Legend of Product packaging”. Though bottled coke was introduced in 1899, it took the curvaceous shape (many compare it with the shape of a woman’s body) in 1916. The bottle design has remained more or less similar ever since with minor changes in glass ingredients, sealed cap and bottle sizes.


In the early 60s, coca-cola company introduced canned coke. It was greeted with appreciation by people who had to travel a lot and had a tough time carrying beverages in glass bottle. In the early 90s coca-cola started producing coke in P.E.T bottles after it saw RC Cola increase its market share by introducing their beverage in such bottles. Coke is available in different sizes at different parts of the world according to the consumers need and culture. The largest available size is the 6 liter P.E.T. bottle in Bahrain and the smallest size is 120 ml. glass bottles in India (popularly known as “chhota coke” or small coke). Companies Coca-Cola Company is ranked number 1 and its main rival Pepsi-Cola Company is not even among the top 20 in the Top 100 valuable brands. Thus when people consider that they are buying a product of the number one company of the world, it has a very positive effect on the brand. Country of Origin Coca-Cola is a product of American origin. Often this acts as a status quo for the people from third world countries. Although in the recent years Coke has tried to promote itself as a global product it is still associated in the minds of the consumers as American. In fact CocaCola is considered as one of the icons of the American society. Coca-Cola once the slogan “Coke is America, America is Coke” in its marketing campaign. Award of Coca-Cola Company According to Brand, Company, &Advertising. Brand History of Coca-Cola The Coca-Cola Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with world headquarters in Atlanta, Georgia. The Company and its subsidiaries employ nearly 31,000 people around the world. Syrups, concentrates and beverage bases for Coca-Cola, the Company's flagship brand, and over 230 other Company soft- drink brands are manufactured and sold by the Coca-Cola Company and its subsidiaries in nearly 200 countries around the world. By contract with The Coca-Cola Company or its local subsidiaries, local businesses are authorized to bottle and sell Company soft drinks within certain territorial boundaries and under conditions that ensure the highest standards of quality and uniformity. The Coca-Cola company stock, with ticker symbol KO, is listed and traded in the United States on the New York Stock Exchange. Common stock also is traded on the Boston, Cincinnati, Chicago, Pacific and Philadelphia exchanges. Out side the United States, Company common stock is listed and traded on German and Swiss exchanges. The Company's operating management structure consists of five geographic groups plus the Minute Maid Company. The North America Group comprises the United States and Canada. The Latin America Group includes the Company's operations across Central and South America, from Mexico to the tip of Argentina. The Greater Europe Group starches from


Greenland to Russia's Far East, including some of the most established markets in Western Europe and the rapidly growing nations of Eastern and Central Europe. The Africa and Middle East group encompasses the Middle East and the entire continent of Africa. The Asia Pacific Group has operations from India through the Pacific region including China, Japan, and Australia. The Minute Maid Company the Company's juice subsidiary in Houston, Texas is the world's leading marketer of juices and juice drinks. The Minute Maid Company's products include Minute Maid Premium Orange Juice calcium, Minute Maid premium Lemonade Iced T ea, Minute Maid Coolers, Hi-C Blast and Five Alive. The Coca-Cola Company has a commitment, more than a century old, to social responsibility through philanthropy and good citizenship. The company's reputation for good corporate citizenship results from charitable donations, employee volunteerism, technical assistance and other demonstrations of support in thousands of communities worldwide. The Coca-Cola Company continues to sponsor the world's most exciting sports events, including world cup soccer, the National Football League, National Basketball Association, NASCAR, the Tour de France, the Rugby World Cup, COPA America and numerous local sports teams. The Coca-Cola Company has sponsored the Olympic Games since 1928. One of the Coca-Cola Company's greatest strengths lies in its ability to conduct business on a global scale while maintaining a local approach. At the heart of this approach is the bottler system. The Company has business relationships with three types of bottlers: Independently owned bottlers, in which they have no ownership interest; Bottlers in which they have invested and have a non-controlling ownership interest and Bottlers in which they have invested and have a controlling ownership interest During 1999, independently owned bottling operations produced and distributed approximately 27 percent of their worldwide unit case volume. Bottlers in which Coca-Cola own a non-controlling ownership interest produced and distributed approximately 58 percent of their 1999 worldwide unite case volume. Controlled bottling and fountain operations produced and distributed approximately 15 percent, of that volume. Coca Cola view certain bottling operations in which they have a non- controlling ownership interest as key or anchor bottles due to their level of responsibility and performance. The strong commitment of both key and anchor bottlers to their own profitable volume growth helps Coca Cola meet their strategic goals and furthers the interests of their worldwide production, distribution and marketing systems. These bottlers tend to be large and geographically diverse, with strong financial resources for long-term investment and strong management resources. These bottlers give Coca Cola us strategic business partners on every major continent. Brand History of Sprite and Fanta Sprite world's best selling lemon-lime soft drink, was introduced in 1961, has the distinctive “Lemon� taste. Fanta-a hot favorite among the younger people was first produced and sold by a Naples, Italy Bottles in 1955. Fanta Orange is the largest selling trademarked orange


drink in the world. (Ref: internet) The Coca-Cola Export Corporation was created on 13th March 1930. This wholly owned subsidiary was formed to handle the United Stages, Canada and Cuba. The corporation supplies the bottles not only with the syrup or concentrate and beverage basses, but also actively engages in management guidance to help ensure the profitable growth of the bottles business, enhancing the value of the franchise. The management counseling covers a broad spectrum of business experience such as product quality control, marketing, advertising, engineering, and financial and personal training. Introduction of Coca-Cola in Bangladesh Two independent Bangladesh bottlers of Coca-Cola employing over 1,500 Bangladeshis and providing a source of income for over 35,000 retailers have and who dedicated their men, material and machines for a refreshing, delicious drink that is made in Bangladesh. The relationship between the Coca-Cola Company and its bottlers is a partnership which links the worldwide skills, experience, technology and resources of the Coca-Cola Company with the local knowledge and entrepreneur-ship in each country. In Bangladesh this partnership, established in 1972, now includes 2 franchise bottling operations and one canning plant all wholly owned and operated by Bangladeshis. The CocaCola Export Corporation is committed to providing it's bottlers with ongoing assistance in management, production, marketing, promotion and others areas related to an efficient bottling operation. Quality control, testing and inspection procedures are integral to every step of producing high quality soft drinks and are monitored constantly by the Coca-Cola Company. Legal Entity of the Company The Company is a private company. Coca-Cola has two franchises which are operation allover Bangladesh for bottling and distribution Coca-Cola products. The two franchises are Tabani Beverage Company Ltd. an enterprise of Bangladesh Freedom Fighter's Welfare Trust, and K. Rahman & Company, an enterprise of a Monem Ltd. TABANI BAVERAGE

ABDUL MONEM LTD.

CHITTAGONG DHAKA DIVISION DIVISION KHULNA DIVISION RAJSHAHI DIVISION BARISHAL DIVISION SYLHET


DIVISION Brand History of Pepsi Cola The Pepsi-Cola story itself begins with a drugstore in New Bern, North Carolina, and a pharmacist named Caleb Bradham. Bradham’s aim was to create a fountain drink that was both delicious and healthful in aiding digestion and boosting energy. It would be free of the impurities found in many bottled health tonics, and it would contain none of the stronger narcotics often added to popular fountain drinks. As most pharmacies in 1896, Bradham’s drugstore housed a soda fountain where the smalltown clientele would meet to socialize. Bradham’s establishment even featured a kind of primitive jukebox, which for a nickel would entertain the listener with the latest musical selections rendered by violin or piano or both. It was at such convivial gatherings that Bradham would offer his latest concoction. Over time, one of his recipes becomes known as Brad's Drink. A member of the press declared “It has sparkle and just enough acidity to make it pleasant” Soon its popularity would exceed the boundaries of New Bern. The cellar of Bradham’s drugstore served as the original site of Pepsi-Cola syrup manufacturing .Electing to start his new business on a small, management scale, Bradham based his operation on familiar territory. Ingredients were hauled downstairs to cramped quarters where they were mixed together and then cooked in large kettle. The syrup was subsequently poured into one-gallon jugs and five-gallon kegs to be shipped to customers. By 1902, the demand from surrounding drugstores increased so dramatically it dawned on Bradham that Pepsi-Cola was something special. On December 24, 1902, he filed incorporation papers with the state of North Carolina, in these, he indicated his plans for corporate branches in Virginia, Maryland, Pennsylvania, and New York (Ref: Internet) . History of the Pepsi Company Pepsi Co. Inc. is amongst the most successful consumer product companies in the world, with 1998 revenues of over $22 billion and 151,000 employees. Until today Pepsi Cola is the second largest company in the world. Today consumers spend about $33 billion on PepsiCola beverages. Brand Pepsi and other Pepsi-Cola products – including Diet Pepsi, PepsiOne, Mountain Dew, Slice, Sierra Mist and Mug brands – account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $60 billion. Outside the United States, Pepsi-Cola soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and territories. PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded. Today, every one of their workers strives to maintain the same high standards of quality and taste that have made Pepsi so popular all around the world. Pepsi in Bangladesh On the basis of an exclusive Franchise for Bangladesh from Pepsico USA, TBL acquired three modern bottling plants at Dhaka, Chittagong and Bogra from BBIL, Dhaka; EBIL,


Chittagong and NBIL, Bogra; in March 2000. TBL manufactures the famous Pepsi range of beverages-Pepsi, 7up, Mirinda Orange, Mirinda Lemon, Slice and Soda. As a corporate citizen, Pepsi believes it has a responsibility to contribute to the quality of life in our society. TBL has put this philosophy into action through the support of social agencies, projects and programs and the scope of this support is extensive and it has not been difficult to blend with this philosophy because the Transcom Group also followed such a corporate ideology. Transcom Beverage’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people.Their mission is to be the world's premier consumer Products Company focused on convenient beverages. They seek to produce healthy financial rewards to investors as they provide opportunities for growth and enrichment to their employees, business partners and the communities in which they operate. And in everything they do, they strive for honesty, fairness and integrity. Pepsi was first introduced in Bangladesh in 1976. The Brand was introduced by late Mia Amenullah, former executive Director of Bangladesh Beverage Ltd. In 1989 the company merged with the 7UP. Very currently Pepsi Company changed there franchisee in Bangladesh and M/S Transcom Beverage Ltd. has been appointed as Pepsi's new franchise Legal Entity of the Company. The company operates in Bangladesh as a private company. Operation The company has time operating plants. The plants and location at Dhaka, Chittagong, Bogra and Jessor, Also it has six different brands including Slice and Mirinda Lemon. Brand History of RC Cola. Royal Crown Company Inc., originally called the Union Bottling Works, was born in Columbus Ga. in 1905. A young graduate pharmacist" Claud A. Hatcher, began creating his own soft drinks in the basement of his family's wholesale grocery business. From these humble beginnings" Royal Crown Cola Co. grew to be the third largest soft drink company in America. At first the Hatcher Grocery Co. purchased bottled drinks from a local bottler and resold them to its grocery customers. At this part of the growth of business, Mr. Hatcher insisted that the bottler pay the company a commission or compensate him in some way for handling the drinks. A dispute arose and Mr. Hatcher concluded that his company had purchased its last case of drinks from an outsider. Henceforth it would produce and bottle its own drinks under its own labels. The first line of beverages was named Royal Crown" and the first cola drink that he devised was called Chero-Cola. Subsequent generations were to apply the Royal Crown trademark to a cola, and it was to become so important that the corporation would be renamed "Royal Crown Cola Co."


Shortly after that, Hatcher Grocery Company decided to engage in the manufacture of soft drinks" its officials organized the wholly owned Union Bottling Works. The manufacture and bottling of soft drink syrups continued within the framework of the Union Bottling Works until 1912, when the newly organized Chero-Cola Co. took over the business and vastly expanded it. Among the early products were Royal Crown Ginger Ale, Royal Crown Strawberry, Royal Crown Root Beer and Chero-Cola. As the sales of carbonated beverages by the Hatcher Grocery Co. became more important, it was decided to incorporate the Chero-Cola Co. In 1912, a charter was granted by Judge S. Price Gilbert in Muscogee County Superior Court of Columbus. The company was to manufacture a line of syrups and flavor concentrates to be sold to franchised bottlers who bottle and sell these concentrates and syrups under trademarks owned by the Chero-Cola Co. in fact, litigation concerning the use of the company's trademark continued in one form or another until 1944 when the final victory was won by Royal Crown Cola Co., setting for all times its right to use the word "cola" in the name of its beverages. The years 1914 -1920 showed steady, but at times, rapid growth in sales. Both profits and company assets increased steadily. (Ref: internet) . The First Crisis Chero-Cola Co. faced its first crisis during World War I. In 1918, the Food Administration imposed a severe limitation on the use of sugar by less essential food products, which included soft drinks. This limitation failed to ease the sugar crisis, and in the latter part of 1918, a meeting was held by government officials for the purpose of declaring the soft drink industry non-essential and ordering it to be closed up for the duration of the war. However on presentation of the facts showing the widespread nature of the industry, its aggregate size and importance, the threat failed to materialize. As a first effort to relieve the sugar shortage, Chero-Cola Co. established and operated its own sugar refinery .It purchased a supply of raw sugar from Cuba. Chero-Cola Co. operated the refinery for a period of about three years. The refinery was not able to furnish the entire sugar requirements of the company, and its output had to be supplemented by the purchase of refined sugar. After approximately two-million dollars worth of sugar had been purchased, filling to capacity every company's warehouse in Columbus, the inevitable occurred. The price of sugar dropped drastically. It hit a low of eight cents a pound in December of 1920. To compound the troubles of the struggling company, the depression was well within sight. During the years, 1922 -1924 common stock was sold in order to raise capital. It was not until 1926 that all of the debts of the company incurred during this first crisis were finally paid. The continuous growth and successful operation of the company during the years of 1912 through 1919 had generated a firm confidence in the business and its management. Without that confidence, the permanent financing which enabled the corporation to survive its first crisis could not have been obtained. It was during this severe sugar shortage that a basic change in the operations of Chero-Cola took place. Heretofore all of its products were made and shipped in the form of finished bottling syrup, with all the ingredients, including sugar, already added.Nothing had to be added by the bottler except water and carbonation. The sugar crisis, along with the skyrocketing price of sugar as a result of the shortage, forced Chero-Cola Co. to consider some


other forms of manufacturing.Therefore, it was during the first half of the 1920s that the Chero-Cola Co. began to ship its products to bottlers in the form of concentrates instead of syrup. This procedure required the bottler to add pure cane sugar and water to the concentrate. At that time, one gallon of concentrate yielded 26 gallons of soft drink syrup. This resulted in savings, both in the container and in the freight cost. It also enabled the finished beverage to have a fresher taste. The policy of shipping concentrates instead of syrups has continued to the present day. (Ref: Internet) Introduction of RC Cola in Bangladesh: RC Cola was first introduced by Partex Bangladesh Ltd in act 1997. Objectives of RC Cola Partex beverage industry is technically well equipped and quality control, at all stage, is of the highest order. The commitment of each department has ensured a management system of the highest standards. From the initial rigorous quality test of raw material to final inspection, the beverages are assured of the highest quality. RC's strength lies in the fact that it is the best in taste-test against the other two colas. RC takes and aggressive approach when planning its marketing strategy .Traditional market packages, prices, promotion and distribution systems do not bind it, and by the same token, it does not discard traditional marketing patterns if they present the means or opportunity of expressing a positive point of difference. RC management approaches each situation with an open mind instead of imposing marketing plans and programs on its franchisees. They recognize the difference as well as similarities in each market and try to be understanding and responsive to each bottle’s needs. Royal Crown Cola Company is proud of its products and of the bottler’s who distribute them. Together they maintain the high standards that were established by the company’s pioneers. Their goal is always to provide the best possible products at the reasonable prices, promptly and courteously to customers everywhere. Operations At first in 1995 RC Cola introduced a premium draft Cola. It introduced RC products in Bangladesh market in 1997 adding Royal crown lemon (First of its kind) with three other refreshing flavors of sweet and seriated RC Cola fresh orange lemon of Royal orange, the tangy line taste of Upper 10. Brand History of SunCrest Suncrest Beverage Industries Ltd. (NBIL) started its business in 1992.Its first factory was situated in chittagong and then it transferred to Hemayetpur,savar in Dhaka in 1995. The company introduced the first P.E.T bottle in Bangladesh in Beverage sector.The National Beverage industry Ltd.is a sister concern of the Sunman Group.The mother concern of the company is Monarch Beverage of Atlanta which main factory is situated in U.S.A at Atlanta Region. The company has achieved bottler award in 1997 from monarch,U.S.A . Operations


Initially the Co. used to produce eight flavors but it is now continuing with five flavors. Suncrest was the first to introduce a 1.5 litter plastic bottle, which turned out to be a profitable step for them. It is called the Suncrest mega. Its varieties are: Suncrest Cola Suncrest orange Kickapoo joy juice Bubble up (Lime) Brand History of Virgin Cola Virgin Trading Co. Ltd. UK. Virgin Trading Company Limited (VTCL) was found in November 1994 in the UK to market a range of FMCG goods under the virgin brand name in a 50/50 deal with COTT of Canada. In January,1998. VTCL purchases COTT’s share of the Virgin Cola Company, taking over the full control of sales, marketing, logistics and distribution. Virgin Cola manufacturing concern is a subsidiary of the Virgin Group of Companies headed by Richard Branson. VGOC established them selves as capable of successfully taking on the monopolies of giant multinational companies (MNC's) by shaking-up the long-running duopoly between the giant multinationals -Coke and Pepsi and bring fun and innovation to the marketplace. Recently, in the largest ever independent taste test, conducted by the Harris Research Center, the three most successful cola brands were compared -Virgin was found to be the nation’s (UK’s) clear favorite in blind tasting held throughout the country. Besides UK, the Virgin Cola Company is now operating in France, Japan, Australia, and South Africa, the next country in the hit list is to be Coke and Pepsi’s homeland -the USA. In Bangladesh, the Global Beverage Company Limited (GBCL) has taken the initiative to manufacture and market several brands of Virgin Carbonated Soft Beverage and within a short period has captured an enormous recoginition and substantial market share with the help of an enthusiastic entrepreneur, a foreseeable administration team and with all of its hard working human resources. (Ref: internet) Introduction of Virgin in Bangladesh It was introduced in the Market in 1999. Legal Entry in Bangladesh The Virgin Carbonated Beverage brands are fastest growing Carbonated Soft Drinks (CSD) in UK as well as now in Bangladesh. Youth Group, one of the rapidly emerging conglomerates in Bangladesh, has brought the Virgin Carbonated Beverage products in Can and in PET (Poly Ethylene Thupthelen) bottles through its subsidiary firm-the Global Beverage Company Limited (GBC) for the first time in Bangladesh in this product category. This is the first domestic venture as well as first step in the food and beverage industry by the Youth Group. Virgin CSD has been introduced in Bangladesh very recently, since November 1999 under exclusive franchise agreement with the Virgin Trading Company Limited of United Kingdom (UK) for manufacturing and marketing its beverage brands within Bangladesh terrain. GBCL is also going to launch still drinks (fruit juice), and mineral water very shortly.


Operation The company has its factory located at Mirpur and it has three different types of flavors. The flavors areVirgin Red/ Virgin White Virgin Blue Virgin Orange They are the only company those who have not used the bottles. They only produce can and can give a great deal of service to consumer. Coca-Cola Co.versus Pepsi Co Quenching Their Customers’ Thirst for New Beverages For many years,the term “cola wars” has been used to describe the hard-fought battle for market share that has been waged by Coca-Cola and pepsi. Coke has managed to stay on top,and in 2001 boasted 43.7% of the U.S. soft drink market but consumers’tastes evolved,and sales of carbonated sodas slowed. Juices,bottled water,sports drinks,coffee beverages, and vitamin-enriched drinks are now being marketed,both by pepsi and by coke. Pepsi has been more proactive at introducing new types of noncarbonated beverages to a population that is increasingly health concious and more individualistic. In fact,pepsi is the top seller of noncarbonated beverages in the U.S. As their product mixes are expanding,coke in particular is struggling to determine the best way to market a variety of disparate brands instead of just its powerhouse sodas. Fizzling soda sales After growing at a rate of 2 % to 3 % each year during the 1990s,domestic soda sales declined in 1999 and 2000. They rebounded slightly in 2001,with a small increase of 0.6%. However,the average U.S. consumer drank less soda in 2001,estimated at 55.4 gallons,as opposed to 55.7 gallons in 2000 and 55.9 gallons in 1999. These trends have had a profound impact on the top two soft drink producers. During the 1980s and most of the 1990s,coca-cola’s performance was excellent. Except for the embarrassing failure of “New Coke”,a reformulation of its flagship cola’s flavor in 1985,the company’s strategy was on target. During that period,coca-cola had annual earnings increases that averaged at least 15% and its stock rose a dazzling 3,500%. But by 2001,the company experienced its third consecutive year of flat or declining market share in the U.S. In addition,earnings were declining,and coca-cola was facing serious threats on several fronts,not the least of which was from its perennial challenger, Pepsi. After losing market share to Coca-Cola in the 1990s,pepsi began to make small gains on coke’s share of the domestic cola market,and in 2001 claimed 32% of the $61.7 billion industry. The company began aggressively fighting with Coke for every vending machine,restaurant contract,and supermarket shelf that came available. Boosting PepsiCo’s (the parent company of Pepsi-Cola) overall health is its fast-growing snack foods division,Frito-Lay International,which comprises more than 60% of the company’s sales. Perhaps anticipating the slowdown in soda sales,Pepsi asserted its desire to become a “total beverage company” in the early 1990s and began repidly expanding its product mix to include bottled water,juices, and much more. This plan has paid off as an aging population of


consumers have become increasingly concerned about the health risks associated with caffeine,sugar,and artificial sweetners. At the same time,recognizing that 12-to-24-years-olds drink the most soda,Pepsi revitalized its cola products with splashy and campaigns. Experimenting with New Flavors of Management at coke Maintaining a focused,coherent strategy has been difficult for coca-cola since the company lost its longtime and highly regarded CEO in 1997 when Roberto Goizueta died of cancer. He was replaced by Doug Ivester, a rigid and analytical executive who alienated coke’s largest bottlers and whose European expansion efforts ran into government regulatory hurdles. As a result,coke’s earnings declined despite very aggressive growth targets,and the company’s advertisements and promotional strategies lost momentum . Ivester was replaced by Douglas Saft in December of 1999,and in January of 2000,it fell to Daft to announce that Coke would lay off 6,000 employees,about 20% of its work force. He also decided to emphasize decentralized decision making to give local managers more authority over marketing strategy. “Think local,act local” was the phrase coined by Daft to describe Coke’s new strategy. “No one drinks globally..Local people get thirsty and go to their retailer and buy a locally made Coke.” Daft engaged in joint ventures with Nestle for ready-to-drink teas and coffees,and with Walt Disney for Disney-branded children’s drinks. The new joint ventures and the focus on local decision making were major depatures for the company that has long been known for brilliant global marketing strategies that result in coke being the most recognized brand in the world. Daft also inherited unrealistic growth expectations. Stockholders and analysis had come to expect 15% to 20% annual growth in earnings,and 7% to 8% annual increases in revenues. “For us to achieve the growth rate that people are expecting,we have to become more diversified,” stated one of Coke’s marketing executives in february of 2000. “We have to move beyond Coke and the carbs (other carbonated beverages).” Juicing up Their product Mixes Although soft drink sales rose a very modest 0.6% in 2001,the top two brands experienced declines. Coca-cola classic managed to hold onto the top spot,but its market share declined slightly,as did Pepsi-Cola’s. And both products experienced diminished sales volumes. At the same time,the noncarbonated beverages market grew 60% faster than soft drinks in 2001,and Pepsi sold more than any other company. In fact,Pepsi owns Tropicana,the #1 orange juice brand;Lipton,the # 1 iced tea brand;Gatorade,the # 1 sports drink brand;and Aquafina,the # 1 bottled water brand. It began pouring resources into these and other noncarbonated beverages well before Coke,and its efforts have paid off. For instance,Pepsi acquired Tropicana in 1998 to compete with Coke’s Minute Maid brand. Supported by Pepsi’s marketing, Tropicana captured 39% of the chilled orange juice market in 2001, and ranked # 3 in sales among all supermarket beverages,trailing only Pepsi-Cola and Coca-Cola classic. Coca-Cola responded by introducing a non-from-concentrate orange juice called Simply Orange that it claims tastes even fresher than Tropicana. It hopes the new brand will steal away some loyal Tropicana drinkers without cannibalizing any of Minute Maid’s 21% market share.


Perhaps the hardest-fought recent battle waged between Coke and pepsi has been for the acquisition of Quaker Oats,owner of the Gatorade brand. In 2000,coke’s board refused to approve a $ 16 billion offer for Quaker. That cleared the way for pepsi to buy the company for $ 13.8 billion in 2001,giving it a commanding 78% share of the sports drink market. By comparison,Coke’s powerade has only 15%. Soon after pepsi acquired Gatorade,Coke decided to overhaul its line of powerade drinks. It began by respositioning the brand to appeal to people besides just the traditional athletes targeted by Gatorade,and developed ads geared toeard those participating in extreme sports such as rollerblading. It also announced plans to add new powerade products,such as a breakfast drink and beverages with herbal supplements and energy enhancements. Some analysts worry that the brand will be diluted with all these new additions.Others feel Pepsi’s lead is too large to overcome. One analyst commented that, “There’s a lot of brand equity in Gatorade. As the distant number two,Coke shouldn’t overinvest.” Prior to its acquisition of Quaker,pepsi also managed to outmaneuver Coke in its bid for South Beach Beverages and the SoBe brand in 2000.At the time of sale,SoBe’s line included more than 30 different drink’s,with more on the way. In 2001,Coke responded by supplementing its “new age” fruitopia line of juice drinks with the purchases of Mad River Traders and Odwalla,the makers of premium juice drink’s,teas,and gourmet sodas. Although both purchases were relatively small ($ 7 million and $ 181 million,respectively) they gave Coke the means to compete with pepsi in this rapidly growing market that has gained wide appeal with younger consumers. Coke purchased another small company called P.J.Bean in 2001. Its planet Java bottled coffee drinks and roasted coffee were meant to take on Pepsi’s Frappuccino products. Again,the company was very small (with only 100,000 cases sold in 2000), but like Odwalla and Mad River, Coke planned to rapidly increase sales by utilizing its massive distribution system. Although most of their focus has been on expanding their domestic,noncarbonated beverage offerings in the U.S.,Coke and pepsi have recently introduced some new sodas as well. Pepsi,trying to develop a lemon-lime brand to compete with Coke’s Sprite and Cadbury Schweppes’7UP,launched Sierra Mist in 2000. Its previous lemon-lime products,Teem,slice,and storm were all unsuccessful,but sierra Mist has proven to be popular with younger consumers. Pepsi also unveiled lemon-flavored Pepsi Twist and cherry-flavored Mountain Dew Code Red,and Coke countered with Diet Coke with Lemon. On the international front,both companies have a large stable of brands that have been developed or acquired in order to appeal to local cultures and tastes. For instance,Coke markets Thums Upin India and Inca Cola in Peru. In Japan,Coke offers Marocha Green Tea,and in Brazil it has developed a carbonated soda that incorporates a locally popular flavor from guaranaberries that are found in the Amazon. But Coke is facing challenges in many foreign markets as well. Declining economics in Brazil,Japan,and Russia adversely affected Coke’s sales. And in mexico,the # market for Coke outside the U.S.,Coke has been charged with illegally signing exclusivity agreements with its retailers,charges similar to those that have been brought against Coke in Europe. Perhaps the most unexpected new product to be introduced by these companies has come from Coke.Many hip Londoners are now sporting Coca-Cola Ware. The new clothing


line,which features trendy sportswear,was a hit in stylish London boutiques,and has been a big seller with Coke’s coveted 13-to 29-year-old audience. Coke hopes to introduce it to the rest of Europe and Eurasia by 2002 ,and eventually to the U.S. market. Trying to hit the spot with various ad strategies Despite having more than 230 brands in 200 countries,Coca-Cola soda still accounts for 60% of the company’s global sales. Long recognized as “the world’s most famous brand,” CocaCola has had a string of advertising hits using taglines such as “Coke is it”, “Always CocaCola” and “ The Real Thing.” And anyone old enough to recall the days of bell-bottom pants,yellow smiley faces,and peace signs will surely remember the landmark tetevision ad that showed kids from around the world swaying while singing, “I‘d like to teach the world to sing………..I’d like to buy the world a Coke.”The campaigns contributed to Coke’s recognition througout the world,but as Coca –Cola continued to diversify its product offerings,it became more difficult to advertise on a global basis. One analyst sums up this conundrum by saying, “Without the Coke name,they’re just another brand on the shelf.” For this reason,Daft announced his “Think local, act local” strategy in 2000,and empowered local marketing managers to develop their own ideas for products and how to market them. Unfortunately,this led to some ads that were not considered to be appropriate by Coke’s executives,and some of them even turned off consumers. In 2001,Daft announced that the corporate marketing team in Atlanta had developed the theme,”life Tastes Good,”and that local managers were free to use this concept and further develop it to fit local cultures and sensibilities. The theme was yanked after it proved to be only marginally successful. In addition,many local managers were frustrated by the lack of direction from corporate headquarters,and some were turning with Coke’s wholesome image. For example,one Italian ad featured nude bathers. As a result,some analysis feared Coke was losing its wellestablished identity. Coke also banked on a tie-in with the successful film,Harry Potter and the Sorcerer’s Stone to spur sales,but Coke’s placement was so minor in the ads that Coke’s marketing vice president questioned the investment. In March 2002,Coke switched gears once more and abandoned the “Think local,act local” concept. According to a marketing executive at CocaCola, “It was pretty obvious we had lost our way.” For the second time in one year,Coke began looking for a universal tagline to spur sales of its flagship cola products,although one marketing executive contends that local managers will still have some flexibility to tweak the themes so they make sense within their local markets. While Coke searched for its next big tagline,Pepsi proclaimed, “The Joy of Cola.” Long a proponent of celebrity-based ads,pepsi hit the jackpot in 2001 with upbeat spots featuring pop-culture princes Britney Spears singing about her favorite soft drink. That same year pepsi launched www.pepsistuff.com,an Internet site that took pepsi’s loyalty program online.PepsiStuff was a program that allowed consumers to exchange proof of purchases for items such as branded clothing,video games,and DVDs,but it required that pepsi print 100 million 10-page catalogs. By going online,the need for the catalogs was eliminated,and pepsi gained valuable data about more than 3.5 million consumers by requiring them to provide


name,e-mail address,zip code,and date of birth.In addition to this new database,pepsi benefited from a 5% spike in sales during the promotion. Only time will tell whether pepsi will be successful in its bid to take over Coke’s top spot in the famous clash of the colas. But that duel may ultimately prove to be just one battle in a much larger war. Coca-Cola’s Long-Term Markrting Strategy In May 1999,the coca-cola Company was examining its long-term marketing strategy to seek grouth and profitability. The person heading this effort was none other than the company’s CEO,M.Douglas Ivester,who was appointed to lead the company in late 1997 after the death of his predecessor,the legendary Roberto C.Goizueta. For the coca-cola company,which rode the wave of global capitalism further than almost any other U.S.multinational,the recent turbulence strikes at the core of its being. After years of solid 15 percent or better annual earning gains,coke® surprised Wall street in the third quarter of 1998 with weak results. That was followed by a fourth quarter in which earnings plunged 27 percent from those in 1997. For the year 1998,coke registered a 1 percent drop in operating income,to $4. 97 billion on $18 . 8 billion in revenues,and was likely to be flat again in 1999. To a company that has been considered one of America’s premier grouth stocks,that’s akin to falling off a cliff. Indeed,the reaction on Wall street has been humbling. During Goizueta’s 16-years reign,coke shares rose a breathtaking 3,500 percent. But after the bad news began to pile up in the summer of 1998,Coke’s stock fell by nearly a third,from 88 to around 59 in april 1999. Some investors wondered whether Coke’s days of outsize returns were gone forever. Still,there were some who believed the worst might be over. Despite a dismal first quarter in which operating profits fell by 9 percent, Coke shares climbed in May 1999 to 66. Exibit 1 summarizes Coca-Cola’s financial results. Exibit 2 highlights Coke’s financial woes. Crisis in the overseas market Coca-Cola’s derived more than three-quarters of its profits and 71 percent of its grouth outside the United States since summer of 1998;however,the global crisis had a marked impact on Coke’s performance;and its sales and profits were battered by the turmoil abroad. In brazil and japan,two of Coke’s biggest overseas markets,flattened consumer buying power left grouth in 1998 almost nonexistent. In Russia,where Coke has invested more than $700 million over the past eight years,the collapse of the economy left the Coke system operating at 50 percent capacity. The global crisis haf left many thirsty people in Asia,Russia,and Latin America unable to afford a Coke. In Brazil,its third-largest market,Coke had lost more than one-tenth of its 54 percent market share to low-cost local drinks produced by familly owned bottlers exempt from that country’s punitive soft-drink taxes. And in japan,Coke’s fourth-largest market,sales had been flattened both by economic turmoil and an emboldened Pepsi®, which last year signed up beverage gaint suntory as its new Japanese distributor.


Problems at home Back at home,where Coke derived one-fifth of its profits,it faced an entirely different order of problems. C onsumers here already drank more soft drinks than in any other country outside of Maxico-45 percent of it from the Coca-Cola Co. Combining that with a reinvigorated pepsi fighting for every scrap of market share,Coke was left with less room to maneuver . Almost anywhere it turned, it faced the prospect of having to sacrifice profitability to increase sales.With the average American already swilling more than 800 servings of soda a year ,skeptics wonder how much growth could be wrung out of the United States.The flagship brands,Coke Clasic and diet Coke,are still growing at roughly 4 percent a year,but they might be approaching the limit.In recent years,consumers appetite for colas overall have flattened-and diet soda has actually lost ground to bottled water.Further,at the very moment he could least afford it,Ivester was being forced to expand precious resources to fight off a reinvigorated Pepsi Co Inc,which was aggressively trying to win back the market share it had lost to coke earlier this decade. Suddenly,pepsi was fighting tooth and nail for every restaurant chain,every supermarket display,and every vending machine opportunity that came up.That new sense of purpose had forced Coke to make much costlier concessions to retain its biggest customers. Unlike past skirmishes,this Cola War was shaping up to be a war of attrition,in which the market-share winner might turn out to be the earnings loser. Strategy For Markets Abroad In the short run,Ivester was doing whatever it took to keep the syrup flowing. To make drinks more affordable,Coke switched from refundable glass packaging and introduced cheaper 6.5oz. Bottles. It scaled back ad campaigns in favor of instore “instant win” promotions. In poland,coke bundled free candy bars with its half-liter bottles-one of several moves that had helped boost first-quarter 1999 sales there 17 percent.Costs were being cut,too:Coke’s indonesion officials,for instance,relinquished their downtown office space and moved into a bottling plant. But Ivester did not manage just for the short term. For the long term,Ivester’s response to his company’s myriad problems has been remarkably consistent. Rather than pulling back as the going got rough, Ivester had repeatedly doubled his bets by spending lavishly in order to win an ever-bigger slice of the global market.That meant using the downtown as a chance to buy bottlers,distribution,and even rival brands cheap. By investing in new capacity around the world,ha was making a bet that the global economy would recover swiftly. On a recent swing through Brazil,he announced that despite the 40 percent devaluation of the real,Coke would boost its investment in Brazil by 10 percent,to $366 million and plow more than $1 billion into Africa over the next three to five years,doubling Coke’s investment there. And in china ,where Coke volume grew 20 percent during 1998,Coke managers were taking the ultimate long-term view,putting together a 100year plan at Ivester’s request. Ivester argued that the investments would allow Coke to emerge from this period stronger than ever. His view was that in any crisis there was opportunity. In effect,he was betting that the big investments made in 1999 and following years,would buy Coke market share and grouth opportunities in the future. It was a risky bet. In the short term,the spending spree added to the pressure on Coke’s bottom line and hammered operating margins down from


historical levels of over 26 percent to 21 percent by the end of 1998. Even at its current depressed stock price,Coke traded at a priceearning ratio of 45—a number that would surely decline if Ivester’s strategy fell short. Already,Wall street was becoming more skittish.However, Ivester insisted in some cases that price were just too low to pass up. Coke offered $187 million to Britain’s Inchcape PLC for four bottling plants in Russia. But as the economy contued to sour,Coke eventually got them in October,1998,for just $87 million. Still,crisis warned that it could be 15 years before Coke sees a return on its Russian investments. Coke pointed to Maxico as an example of the strength of its long-term strategy. Mexican managers boosted market share in their country from 53 percent to 68 percent by investing in new plants during the peso crisis. Coke did not break out earnings by country but says the market was “very profitable” and that volume rose 13 percent during 1998. Ivester was not betting just on his ability to get more people around the world to drink more Coke. Having spent the past decade building a worldwide bottling system he intended to use it to deliver any beverage that could find a big following. His boldest gambit yet was his $1.85 billion deal to acquire rights to Canada Dry Dr Pepper and the rest of Cadbury Schweppes PLC’s soft drinks and mixers in 120 markets outside the United States—a deal that would give Coke two more percentage points of global market share and probably more than that in time. That was a big if, the deal is facing stiff resistance from regulations in such countries as Maxico and Australia,where Coke already has a 65 percent market share. Some analysts and rivals felt that the problems stemmed as much from Coke’s intransigence as its size. In France,Coke,s proposed takeover of the Orangina brand has been blocked by regulators for 16 months,though analysts believe Coke would make concessions and end the impasse soon. Strategy For The Home Market In the United States the company intended to spend whatever it took to hold on to key customers or sign up new one. But not all of Coke’s U.S. marketing expenditures were likely to be that lucrative. With Pepsi upping the ante, Coke must pay more to keep its most important fountain contracts. Consider the heated bidding over the 10,000-store chain of Burger king corp,which recently came up for renewal.Burger king paid coke about $220 million a year for 40 million gallons of soda syrup, according to industry sources. Under the old contract,Coke gave back about $25 million of that in rebates to the food chain. After Pepsi pitched Burger king for the business,Coke ended up winning,but only by doubling its rebate. That cut Coke’s margins. Worse,the Burger king rebates would likely jack up the price for many of Coke’s remaining contracts. Incressingly,Coke also to pay top dollar to sign smaller,less traditional deals. For example,a Coke bottler agreed to pay $28.5 million over ten years for sales rights across a single Michigan school district,twice what Pepsi offered. Coke thought the hefty fee,which worked out to an annual $28 per student,would pay off,since soda loyalities were often established in the teen years. Meanwhile,in the supermarket,where margins were a paltry 3 percent,Coke’s attempts to raise prices had hurt sales. Additionally, Ivester had set a goal of increasing per capita U.S.consumption of all Coke products by 25 percent a year,to five hundred 8-oz. Servings. That meant every American,on


average should be drinking close to two cups of Coke’s products every day. To get there,he was looking for new ways and new places to sell a thirsty public a Coke or a Coke product. If Ivester had his way,consumers would soon find Coke’s red-and-white machines everywhere from the local post office to the school cafeteria. Although they accounted for an estimated one-tenth of Coke’s system-wide sales,vending machines carried room for a lot more. A couple of years ago,he asked execs at Coca-Cola consolidated-his second largest U.S. bottleto try an experiment.He wanted them to double the number of vending machines in salisbury,North Carolina,a small city that had been budgeted for a modest 4 percent increase in capital spending. The result:Each machine generated 30 percent to 50 percent annual return. Coke Consolidated is now adding 25,000 new vending machines. Coke is also testing a hybrid gas pump/vending machine in pennsylvania and was working on a similar stamp/beverage machine for post offices Further,Coke has added a host of new products in the United States,from other soft drinks such as citrusflavored surge,to juices,teas,and now water. Yet even as he moved to capture a large share of those side markets,Ivester emphatically rejected the notion that Coke had hit a permanent plateau in the United States. He said that pundits had predicted the passing of colas ever since the 1930s. During lunch in his executive dining room,Ivester compared consumption per capita for each city or region with that of another country. The per-person consumption of Coke in Lubbock,Texas,for instance,wasw no higher than in Chile;the consumption in Knoxville,Tennessee,was the same as that in Mexico. And consumers in phoenix and Los Angels-two of the lowest areas in soft-drink consumption-drink no more Coke than people in Hungary. “Why am I so optimistic about the future? Look at this map,” Ivester claimed. Ivester’s Style Of Management The barrage of bad news caught Coke at a ticklish time. Managing a downdraft is tough for anyone,but Ivester,52,had barely moved into the corner office when the numbers began to fall apart last summer. On top of that,he followed one of the most successful and revered CEOs in corporate history.For all their mutual respect couldn’t have been more different:Goizueta,the Cuban aristocrat,and Ivester,the first in his family to attend college. The cerebral Goizueta fancied himself the master strategist who ruled at one remove.His pupil,who put in 14 hour days and stayed in contact with managers worldwide through e-mail,voice mail,and an alphanumeric pager,did not hesitate to get involved at street level,whether it was monitoring a minor acquisition in Peru or a bottler’s complaint in South Africa. The emphasis on nitty gritty details and creative solutions were vintage Ivester. And it was a sharp departure from the arm’s-length,patrician style of his predecessor.Now,18 months into his tenure,Ivester’s style and substance were being tested in ways he never could have anticipated. Although he took over one of America’s most admired companies after spending years preparing for the role,the soft-spoken ex-accountant was steering a company that faced a world of trouble. Ivester,the son of a textile-mill supervisor,gave up the partner track at accountants Ernest & Whinney to join Coke’s finance staff in 1979 and had since worked in nearly every corner of the Coke empire.Under Goizueta,he executed many of the tactics that had won Coke a 50 percent share of the worldwide soda market. In 1986,Ivester engineered the ingenious spinoff of Coke’s bottling operations. As European chief later in the decade,he led the push into


eastern Europe by driving a truckful of Coke into East Germany even as the Berlin Wall was falling. And,as head of Coca-cola USA from 1991 to 1994,he introduced a plastic version of Coke’s contour bottle that helped lift Coke’s U.S.market share two percentage points.Inside the Coke camp,few question that Ivester had the right stuff to takr Big Red back to its glory days. Coke’s board has make it clear that Ivester had its undiluted confidence. Even as the economic winds battering Coke reached gale force,Ivester remained unflappable. In a pep talk to employees in february,Ivester was resolute that the business had not foundamentally changed,noting that Coke had weathered countless economic crises in its 113 years. “We’re dealing with human thirst,”Ivester told employees in his gentle Georgia accent. “There’s nothing about economic change that is going to change people’s thirst.”Ivester insisted that his strategy included nothing that his mentor,Goizueta,would not have done. But although Ivester might have held to his original vow of “no left turns” after Goizueta’s death from cancer in late 1997,these have been some subtle changes in the Coke culture and style. While Goizueta kept constant watch on Coke’s stock and the analysts who followed it – sometimes critiquing their reports with handwritten notes-Ivester poured his energies instead into Coke’s customers,no matter how small. J.L. “sonny” Williams,president of Minyard food stores in Coppell,Tex,recalled how Ivester sent a red wagon after the birth of his first child last year,and then took time during a recent stop in the Lone State to chat over barbecue and tour one of Minyard’s 85 stores. “It was nice to see a CEO who was so down to earth”,said Williams. Minyard said he had never met anyone from Pepsi headquarters. Ivester claimed that if the company focuses on the customers,the business will prosper,and if the business prospers,the stock will eventually be priced right. Ivester also began the delicate task of shifting Coke’s corporate culture,which had developed a reputation in some quarters for arrogance and stodginess. To speed the decisionmaking process,Ivester cut several layers out of Coke’s organizational hierarchy. Under Goizueta he began scraping Coke’s grueling December planning marathons with managers in favor of real-time budgeting,giving his field generals more freedom to respond to any opportunities that might arise. And,he tried to soften Coke’s old “tough-love” style of management According to Ivester,”Many employees today did not grow up in tradirional households.” You’ve got to transition to a modern style of motivating people. And as part of that strategic effort,Ivester had encouraged more of his troops to think boldly to take more risk,even encouraging one manager who had a scheme to use a laser to beam Coke’s trademark off the moon to “go for it.”(“It actually would have worked,”assured the manager,Steve Koonin. “But the FAA was worried about the risk of us slicing airplanes in half.”) The Pepsi Challenge--Coca-Cola’s Long-Term Marketing Strategy The Cola wars used to be a walkover for coke. As relentless as a Roman legion,it regularly humbled a distracted Pepsi,widening its market-share lead. But Coca-cola company’s easy victories are history. A newly invigorated pepsi has forced Coke,already struggling with internationa woes,to expend huge chunks of money and time to defend its 44 percent to 31 percent U.S. lead.PepsiCon Inc. into fighting trim has been the mission of Chairman and CEO Roger A. Enrico since he took over in 1996. Enrico has made pepsi a leaner,feistier foe


by spinning off capital-intensive distractions such as restaurants and bottling.Now,with revved-up marketing,price wars in the stores,and an assault on Coke’s lead in fountain and vending-machine sales,he is going after Coke with a vengeance. Says Philip A. Marineau,Pepsi’s head of beverage operations: “We’ve reenergized our system.”KUDOS. Nowhere is the change more visible than in Pepsi’s marketing. After years in which it pumped out glitzy ads that did not sell much,Pepsi is doubling spending-to-$300 million a year-to launch a fusillade of new initiatives that are finally winning kudos from marketing exparts. In March 1999,Pepsi rolled out a splashy new campaign for its flagship Pepsi-Cola brand. And to hype its new pepsi one diet drink,the cheeky No.2 is even dusting off its old “Pepsi Challenge” gambit from the 1970s,the last time it made gains on Coke. But perhaps its biggest move will come starting in May 1999, with the release of star Wars : Episode 1The Phantom Menace. With plans to spend up to an estimated $2 billion over the sixyear,three-film deal,Pepsi has scored a big piece of what sould be one of the hottest promotional opportunities around. Look for Pepsi to exploit the films with toys,ads,and cobranded soft drink cans. Out in the real world,the newly pugnacious company’s chief avenue of attack is fast-food chains. Now accounting for one-quarter of all beverage sales,such chains are the fastest growing distribution channel,and ,with margins of 15 percent,one of the most lucrative. Coke,with 8 of the 10 largest fast-food chains in its pocket,has a commanding 65 percent to 25 percent market share advantage. But Pepsi has scored some minor victories,stealing seven smallish fast food accounts from Coke,including Pizza inn inc. (525 outlets) and Bojangles’ Restaurant inc. (257). And its biggest victory may have come simply from being a contender when Coke recently renewed its contract. “The fact is,we put a scare into Coke,” says Pepsi exec. “Wait till we go after McDonald’s.”Coke must also worry about Pepsi’s bid to plant more of its blue vending machines around the landscape. Since 1997,Pepsi has added 170,000 machins nationwide,for a total of about 1 million. Today,Coke remains far ahead,with roughly 1.4 million machines. But Pepsi’s push has made the battle to place the machines-which boast margins of more than 30 percent-far more competitive.SNACK TIME.Enrico also wants Pepsi to do better at exploiting the one edge it enjoys:the combined strength of its soft drinks,its new Tropicana juice unit,and FritoLay,the world’s largest salted-snack provider. After all,people heading to the store for a snack often pick up soft drinks at the same time. So far,the “powder of One” campaign has consisted of a few joint promotions. But Enrico is making sales calls on supermarket-chain CEOs with the heads of frito-Lay,Pepsi,and Tropicana. Their pitch: Increase your sales by moving soft drinks next to snacks. Count on Coke,which would be at a disadvantage because it does not sell chips or pretzels,to resist Pepsi’s aisle-placement plans. The reality remains that Coke can no longer coast. “pepsi has changed the rules,” says William W. Wilson,CEO of independent Pepsi-Cola Bottling Co. of New York. “It’s finally willing and able to spend big-time on catching Coke.” No wonder Coke is looking over its shoulder. (Source-Business Week,May 3, 1999,page-151)


Environmental Analysis Current marketing objectives and performanc Target market Market segmentation Demand Positioning Consumer beheavior Environmental Analysis Introduction to Environmental Analysis Here a brief environmental analysis is provided to understand the general market condition in which the product will be promoted. Regarding the information obtained and provided here, the actual target market will be addressed. And this general information will provide a background for this study from which we will narrow our study to our target market and the marketing plan. The major forces of the Marketing environment of Soft Drinks industries(SDI) are listed in the following: Competitive forces Economic forces Political forces Legal and regulatory forces Technological forces Sociocultural forces For a better view of the environmental analysis, the elements of these forces are briefly illustrated in the following. This section is provided to create an introductory view of the environmental analysis to mention the elements discussed under the main headings. The detailed illustration is placed in the subsequent section. The environmental forces are discussed in a detailed view in the following pages. This report is an assessment of the market to provide the company with the information needed to analyze the feasibility of the project. The different forces of the environment are also illustrated in accordance with such view. 1. Competitive Force: Response of the competitors with the change of company’s marketing mix Competition in SDI Although the competition in the SDI is not dense, but it is intense. The market is going through a transition period from growth to maturity in its product life cycle. And it is the most important force to be considered against any campaign of SDI. The competitive force is illustrated below: Company’s industrial competitors: The major industrial competitors of soft drinks are Cocacola, Pepsi, Royal Crown (RC), Uro,Mojo and Double-cola. And the main players of the game is the first three. If the name of the top five competitors are enumerated in accordance to their standing; approximately it will be the following:


Coca-Cola Pepsi Royal Crown (RC) Virgin Uro Mojo From these citizens of the market competitors, Coca-cola and Pepsi is long ahead of the road. But RC,Uro,Mojo and Virgin are in a close competition with and moving side by side in the market. Competitor’s strengths and weaknesses: The strengths and weaknesses are discussed in the following: Strength: The strengths of both Coca-cola and Pepsi are analogous. Their paramount strength is their Brand and Brand loyal customers. This is developed in a long course of time which enabled the company with multinational operation and far matured financial strength. Their media appearance and celebrity involvement is also an important strength. And RC entered the market contemporary to Virgin and went a little ahead with improved product offering. And all three of these have foreign backing of financial support. For this virgin cannot use its foreign support as a competitive advantage. Weakness: The major player, Coca-cola has its main weakness in management. Its management is bisected and the production and distribution is handled separately. For this reason it is not in such position in the market, where it is suppose to by at this moment. Although Pepsi is developing but it’s image in the market is not strong enough so it can be placed in a vulnerable state in the market with the right marketing action. RC has failed to create the desired impression to the consumer’s mind. At its entrance level, its glass bottle contained 50ml more of the product which eventually have a depreciating effect on its prestige. And all three of them are relatively moving in a sloth pace in the market. They are not doing aggressive marketing like the new entrants in the market which eventually poses as their weakness that makes their market vulnerable to the competitors.Response of the competitors with the change of company’s marketing mix: The competitor’s arena can be considered relatively numb to the reaction of the change of the company’s marketing mix. For this reason, a change in price, enhancement of product, improvement of promotion or extensive distribution program is expected to have less prompt reaction by the competitors. The study of the past cases shows that the competitors change their marketing mix in accordance to their policy, not in reaction to the company’s activities regarding product promotion. The competition in SDI: The main competition of SDI today is mainly about the image. Because when it comes to any IBCG, the pivotal factor is - which brand is having the first and the strongest incentive in the consumer’s mind. This is the factor which ultimately takes the buyer to the end of the buying process. Although price is not a major factor in the market but competitive or leading price could eventually put a company in a competitive advantage point. So the war is not at price but at promotion where lie the factor of the improving brand image and the volume of sales.


And after these factors considered and accounted; the rest is about the strength of the distribution network. 2. Economic Force The economy and its state is another pivotal factor to the marketer for any of his campaign. The general perspective or VSD Company is stated below. The general economic condition of theCountry and Regions: From the perspective of SDI, the economic condition of the country is quite favorable for the company. The market research of the country by the company shows that the economic condition of the members of the target market is flourishing for the last four years. This is a favorable condition for the company as this will lead the consumer to buy the product of the company in a bigger volume throughout time.The target market is mainly divided into 3 major segments and among these only the rural is suffering from economic stagnation. But the other two portion of the market is improvising. As our economy of the rural sector is widely dependant to the agricultural sector. So the underdeveloped status of this sector left our rural market financially weak. And for this reason most of the potential buyers are not participating the market with their desired effort. The other two segments are illustrated in the target market section. But for economic consideration it can be stated that their circumstance is well developed or improving. Consumer’s opinion of the company: Although the consumers appear to be promising to the economy and to the industry; but they are not in a favorable stance to the company as they are to the former two. The favorable condition of the market of SDI creates the positions for potential buyers in the market. But those buyers are not yet prepared to be the company’s loyal customers in regard to the current product mix offering the company is providing. But the consumers are optimistic to the industry and are out looking for products to try out and venturous adoption of new flavor and concept. Consumers buying power: With the economic flourishing of the market the consumers and target market is now equipped with increased buying power. This enables the company to increase its profits by selling their products against the remaining discretionary income of the consumer. The last consumer research conducted by the company at the end of their last fiscal year shows that the buying power of the urban segment has improved significantly, the suburban segment is also developing its buying power at a slower pace while the development of the buying power of the rural area is rather discouraging. Spending pattern of the consumer: The spending power of the consumer is also favorable to the company. As the economic condition of the target market is evolving positively, now they have more buying power. The improved economic condition inclines the buyer for a change in spending pattern. And usually while this improves the standard of their livings it also direct their spending pattern to the buying of amenities and elements of carnal pleasure which involves the company product.While considering the spending pattern, it must also be noted that the products of SDI is of IBCG type. And in many cases their purchase processes and patterns follow


eccentric trends. So when the consumer has buying power, it depends not on the spending pattern but on the incentive of promotion on that spur of moment. The volume of purchase: Consumers are buying more of our products day by day. The reason or intend for a purchase affects the choices of made. SDI is considerably satisfying the needs of different kind of consumers, its sales are increasing. People are finding the product quality satisfactory comparing with price.Moods have an influence in purchase decision. SDI is able to create that mood is the consumers through their advertisings, people are buying the product more. The consumers who are optimistic about the economy are free spending and apparently carefree. So they are buying the product more and more. 3.Political Force Political forces are of lesser significance to the company are they are not directly related to the industry and also to the company itself. It is briefly discussed in the following. The electoral effect on the company: The Company doesn’t enjoy or suffer any notable favor or consequence due to the election of a new party. Although if the former party is re-elected, then the company has the opportunity to continue with the operations consistent with the policies in force. But election of a new political representative may entail some minor modification in the operations to adapt with the new policies. Level of political involvement: Company’s level of involvement to the political parties is nearly nil. There is no recognized political involvement by the company to any political parties. It is because none of the major shareholders participate in organized political practices. This leaves the company free of a major encumbrance. And the company expects to remain this way. Maintenance of political liaison: The Company also doesn’t maintain any political liaison to any party as there has never been such entailment. The nature of the industry enables the company to be left free of political affiliation. 3. Legal and regulatory forces: Legal specification for the industry: There are not many legal specification those the company has to follow. The chief legal specification for the industry to be followed is the Standard of BSTI. The product has to be produced and also its quality have to be maintained in accordance with the specification of BSTI. And then there are the issues of wastage and pollution control. The company has to maintain the industrial waste with the right measure. And in this issue, the company is in a favorable stance because most of the byproduct of the industry is the byproduct of edible element and they does little harm to the environment. But recently its is facing with the threats of the accuse of water pollution. This is the result of the cleaning of industrial


reservoir with chemicals. To overcome this the company is planning to establish a water treatment plant. The company is planning to go for a collaborative strategy with some of the local neighbor industries for this purpose. 5.Technological forces Technological involvement in the industry: In the industrial sense, the technological involvement in SDI is relatively low. The main technological involvement here is in the production and packaging. Unlike technological industries for example Intel, it doesn’t undergo with constant intermittent technological development. So this aspect of the industry is relatively stable. SDI production is a simple industrial process. But it uses different packaging and bottling process. This also involves sophisticated technology. Effect of technological change: The effect of technological change in the competitor’s environment is not very important for SDI except for some momentary revolution in production efficiency, cost economy or product quality. Because the production unit, production procedure, selection of flavor and the technological policies are determined by their Mother company. So when the need for technological change is identified and notified to the Mother Company is then responsible for making the decision and initiating the change . Possible change in the industry for the recent change in technology: There is no possible technological change in the industry for recent times. Technological impact on marketing: There are some major impact of technology in the field of marketing and promotion. Instead of conventional newspaper advertisings or banners not it is a necessity for the marketer to come ‘on-air’ and advertise on the mass media. Technology is enabling the marketer, closer to the mind of the consumer while the consumer is getting less susceptible to the advertisement for a given standard. So it is getting equally difficult to influence the customer and the marketer is trying to do the job in new ways which entails technological utilization. For example, the recent increase in the usage of the internet has opened a new gateway of internet mass marketing. 6.Sociocultural forces Sociocultural forces are also important factors of the marketing environment because it determines the effect of the product to the society as to the market. The Sociocultural issues are discussed below. Society’s demographics and value: The demographic mix (age, education, roles in family) of the society is favorable to the market. The nation’s age mix is normal which avails a significant number of young people available in the market which is very important to the SDI. Now the value of the consumer is


changing. And in this regard, there are different kinds of values in different age groups for the company. The young people are venturous and they like the image of the company. They like color and exquisite concept. The middle age group those are aged from 24-34, they are less reactive to the company’s actions. This is the brand loyal group and they usually prefer the brands they used to drink in their young age, otherwise they just go for a well reputed brand. And the aged group has unfavorable attitude to the SDI. They don’t like the concept of colored carbonated drinks. Ethical issues: There are some ethical issues to be concerned at, because the activities of SDI is changing the value of the society. So it has to be done in such a way that it doesn’t change the value in harms way so that the company can not be held responsible for such change. The industry is initiating a change in the food habit of the society and if it is not done in a healthy way; then this will incur unthinkable consequence. It will also destroy the future potential market. Coca-cola’s marketing success already burdened the Nation of US with the problem of obesity. So we also have to keep this issue in mind. Current Marketing objectives and Performance Review of marketing objectives The current company objectives are enumerated below. They are detailed in the subsequent section. Maintain a healthy profit margin The first and the most important objective of the company is to maintain a healthy profit margin to ensure a competitive survival. The SDI competition is mainly at promotion. 70% of the SDI expenditures involve promotional activities. So in order to continue to remain competitive, the company must ensure a large sales volume with a healthy profit margin to back the promotional expenditure. Consumer satisfaction Consumer satisfaction is another pivotal factor with unparallel importance. Although the company invest a lot in the promotion to put the buying incentive inside the consumers head. But the most important post purchase incentive to the consumer is the past experience with the product, comparing to the competing products. So as the company realizes that the consumer satisfaction is the key factor; it is also set as the fron-line objective. Creation of brand loyal customers Another important factor to the company is a group of loyal customers. The company can only expect to reach its sales volume when a customer buys the product and comes back for more. So the company intends to create a set of brand loyal customers with improved product quality, competitive price and with the right promotional image. Capture the maximum portion of market to achieve the economy of mass production


The company also set its target to keep a major slice of the market share under its own custody. Because mass production diversifies the fixed cost of production maintenance and promotion to a greater extent. This is essential to the company. Stay ahead of the game with a better product The company also identifies the changing need of the consumers. The recent advent of the new soft drinks to captured a huge share of the market with its new set of product attributes. This shows the unidentified new market for SDI which can be obtained by a new product according to consumer taste and convenience. The consistency of the objectives with the recent changes of the need of the consumer society Although all the established company objectives are in consistent with the current needs of the consumers. But they don’t cover all the requisites of the consumer expectations. So ultimately there is a deviation from the need of the consumer, to the objectives of the company. To mentions some of the requirements not covered by the company objectives are: corporate social responsibility, preservation of natural environment. Target Markets of Soft Drink We are covering target market analysis, point of difference relative to the competitors and market positioning in consumers mind stated in the belowTarget Market Every Company must have a specific target market for its product. If any company doesn’t have target market they cannot achieve their main objective and not survive in the market longer period. In survey we found SDI market divided based on age level, which is given belowSDI Market

Child

Teenager

Young generation

Age Group

Percentage (%)

6-12 13-19 20-26 27-33 34-40 41 & above

50.25 22.00 11.20 4.50 2.30

9.75

Urban citizen


The table shows that 50.25% consumers are from 13-19 age group takes the leading position of the survey. The following percentage is 22.00 at the age of 20-26. The main targeted market is the teenager and the young generation. But now a day we are also focusing our child generation. Strategies for Target Market Based on production capacity planningFirst Phase 2004-2006

Second Phase 2007-2009

Urban city Semi urban city Dhaka Metro Dhaka Region Ctg. Metro Ctg. Region Sylhet Metro Sylhet Region Razshahi Metro Razshahi Region

Third Phase 2010Urban & Rural

Point of Difference SDI started their business in Bangladesh many years. In that time they captured market share very quickly by introducing quality advertisement, well distribution policy, attractive packaging, satisfied testing quality level etc. It also has sophisticate quality control equipment. Now a day, they are continuing their contingency level and also contribute to make a better position in the consumers mind. Now we are going to point out the distinctive characteristics relative to the competitorsMaintaining standard quality level. Convenience to carry and easy to open its cork. More hygienic than the others. Tasty with various products. It does not harmful for environment. Its can and bottle can be recyclable. No deposit for bottle and can. Smart looking can and pet bottle. Need not to return from the very beginning. It maintains standard quality advertisement. They provide smooth distribution. Expiry date, ingredients and nutritional information are also available in product level. Targeting the market based on Demography: Demographic characteristics include age, income, social class education etc. Age: Age is a major factor that should be considered by the marketers of the company. The young people between the age of 8 to 24 are the main target customers of SDI. Income and Social class: Income and social class strongly affect in preference in product as social class is a composite demographic measure. Soft Drinks Industries major consumers are the middle level and the upper level peoples of the society. Lower level peoples are not their potential buyers.


Education: Education plays a major role in selecting the product and brand chosen. Educated people have different choices in brands, colors, flavors, tastes etc. SDI consider the educated people as their target consumers rather than uneducated people. Education makes a person aware of what is good or bad. It gives a social status. Education does influence people in taking their purchase decision. So, educated peoples are the major consumers of the Soft Drinks. Targeting the market based on Geography Dividing markets based on Geographic distribution like-regions, cities, countries, climate, urban-rural identification is considered in marketing because consumer wants and product usage often are related to one or more of these categories. Urban-rural identification: Main customers of Soft Drinks are the urban people. All companies have a big market in the divisional cities like Dhaka, Chittagong, Khulna, Rajshahi etc. Basically rural people are not their target customers. But they can improve their promotional activities to make the rural people as their customers, as most of the people of our country lives in rural area. So there could be a large market. Climate: In Bangladesh, here are three major marketing seasons on which the marketer base their promotional activities of SDI. Like, in the summer season people get more dehydrated so people usually buys the soft drinks and thus companies targets summer season as they can sell more on that time. Targeting the market based on Psychograph: Attitude, Opinion, Interest, Product uses, benefit sought is the components of targeting the market on psychographics segmentation. Attitude: Drinks companies made a different attitude on their target customers towards their product. These make a different impression on the buyers mind and they go for purchase. Usage-rate: Usage rate is the rate at which people use or consume the product. That is categorization of usage rates in nonusers, light users, medium users, and heavy users of the product. A survey on product usage rate shows that about 40% of its target market people are light user, 30% are medium user, 10% are heavy user and 20% are nonuser of Soft Drinks.


Benefit Sought: The industry is targeting a group of consumers who desire a set of attributes and benefits from a bottle of SDI and try to provide them in accordance to the need specified. Their expectations from a bottle of SDI are: Flavored drink: First when the consumer is thirsty or feeling like to have something to drink then he doesn’t want just a bottle of water but he wants some flavor in it. Brand consideration: When the consumer is consumer is considering for a purchase of a bottle of soft drinks, he or she is likely to be considering the brand next. Because the consumer will want the opportunity of having the prestige of holding the bottle of soft drinks of a reputed brand which will ultimately define his taste and class. Attractive appearance: The appearance outside of the package, bottle or Can has to be attractive which will also add value to the prestige. Hygiene: After considering these three, the consideration for hygiene comes. When the consumer finds the soft drink in accordance to the choice and prestige then he or she considers the matter of hygiene. But this consideration is often neglected by the consumer who goes on with rapid consumption of CSD even after knowing the information that it is not healthy to have too much CSD. Improved quality: The desired consumer is always looking for improved quality of the product of which the marketer tries to provide to increase his market share. Varieties of flavor: Up till this point of time the consumer experienced only a handful of flavors. They are Cola, Lemon, Orange etc. So now the consumer is now looking for new flavor. Reasonable price: When all these are satisfied. Then comes the role of reasonable price. Although price plays a major part in the consumers mind as a whole. But at the time of the decision making process, if the buyer has the ability the he or she will go for the better choice, not the better price. Special offer with it: The buyer also inclines to the product if it has additional offerings (lottery, gift) with it.


Market Segmentation Market Segmentation means to divide a market into distinct groups of buyers who have distinct needs, characteristics or behavior and who might require separate products or marketing mix. Where, Market segment means a group of consumers who respond in a similar way to a given set of marketing efforts. We can segment the market into the following ways:According to Area According to Time

Urban, Semi Urban, Rural. Peak, Off-peak.

Demand of Product Demand of the product is also important to a market. Because if there are many customers in that market but they aren’t so willing to purchase the product, then the product is not sold effectively. So in this case the product is not sold mostly. So before deciding every thing we must know the willing power of a customer. And if the customer of that market has good demand of that product then it will be sold effectively. Demand of product is increasing due to total infrastructural development. Consumer likes chilled product that need refrigerator. Electrification & Road communication had increased significantly. Fast food culture is developing. Consumer taste & habit is changing. Market size is very big. In peak period (March-July) all the existing company cannot able to fulfill the demand of the market. Demand of Lemon, Cloudy Lemon, and Orange & Ginger is increasing. Area of SellingArea of the market is the most important thing for a product. That is not only it is important to sell but also for all kinds of advantages.For example- Kawran Bazar Market is very large than other markets. That is if a market is small to look than most of the customers didn’t attract by that market and didn’t go to that market because most of the customers feel uneasy to go there for small area. So area of the market is very important for a product. Urban City, Big City, Market, Highway Hotel & Restaurant, Canteen, All General Shop Selling CSD (Carbonated Soft Drinks). Market of Drinks has been divided into distinct group of people according to there taste, needs, characteristics or behavior. Some people, for there shortage of money can’t be able to buy 1 liter DC. These kinds of people are poor people who have lower income level. Taking this condition in mind Beverage companies producing mobile bottle amounted Tk.10-15. Factors of demand for beverage The following factors influence the direction of demand. Quality of product Price of beverages Taste of the consumer Brand image Effective marketing strategy Quality of life Geographical area Season


Positioning There are so many drinks company in the Bangladesh market. These companies operated their business with world famous brand names. In the below we are showing market positioning of all kinds of cola flavor soft drinks: SL. No.

Brand Name (Cola flavor) Uro cola Sun Crest cola RC cola Virgin cola Pepsi cola Coca cola Mojo Lemu Teem Pepsi Blue Pepsi Aha Sprite Pran up Pran cola 7 Up Sun Crest Bubble Up Fizz Up Royal Tiger Double cola Upper 10 Fanta Mirinda

Position (%) 1% 3% 29% 10% 24% 43% 4% 4% 4% 3% 4% 5% 3% 2% 3% 1% 1% 2% 2% 1% 2% 1% 1%

Data source: Survey The table state that the leading position captured by the Coca cola at 43%, 24% captured by the Pepsi cola and Virgin cola takes 10%. The following are respectively 29% of RC cola, 3% of Sun Crest cola and 1% of Uro cola. So we can say that the Coca takes the first position in the consumer mind. Pepsi is the second RC cola is in third and Mojo is in fourth position. Consumer buying behavior In survey we have found two types of consumer buying behavior of Soft Drinks. Habitual buying behavior: Consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences. Consumers are showing their huge investment in brand loyalty.We found in survey not a single consumer is in Habitual buying behavior.


Varity seeking behavior: Consumer buying behavior in situations characterized by low consumer involvement by significant perceived brand differences. Consumers are not conscious with brand loyalty. We found in survey all consumers are staying with Varity seeking behavior. Model of Consumer Behavior:

Marketing & Other Stimuli Marketing Other Stimuli Product Economic Price Technology Place Political Promotion Culture

Buyer Black Box Buyer Characteristics Decision Process

Buyer Responses Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount

Figure: Model of consumer Behavior In survey we have seen that some consumer stated their opinion about Beverage product. Those who like Beverage their main influencing source are short-term promotion program, product packaging, ads, affordability to consume and availability of product these are all marketing and other stimuli. In buyer black box all decisions can be made by consumer’s own choice, which is, depends on buyer’s own characteristics. The next stage is buyer responses where consumer takes decision about brand, flavor, purchase amount, sizes, dealer and purchasing time. SWOT Analysis SWOT Analysis of Total Beverage Market Strengths are defined below. 1. PRICING 2. ADVERTISING 3. BACKED BY FOREIGN FRANCHISEE 4. MOTTO 5. POPULARITY Weaknesses are defined below. 1. NO INTERNATIONAL RECOGNITION 2. NOT ENOUGH PUBLICITY OR PROMOTION 3. NOT ENOUGH POPULARITY ON THE CONTRAST WITH OTHER COMPANIES Opportunities are defined below. 1. IMPROVEMENT ON VARIETIES 2. PRICE VARIATION 3. PROMOTION


Threats are listed below. 1. COMPETITORS ACTION 2. MANAGEMENT FAILURE 3. LOOSE THE TARGET MARKET Strengths Strength 1: Pricing Price plays a significant role as a strength of a company. Lowering the price in regard to other companies without affecting the employees financially and with that mentally is appreciable in any company. It motivates the employees in a way that it is in a good condition and it will be in a far better position than now. That improves the mentality of the employees to work even harder. This effects the company operations to a huge content in regard to productivity, sales volume and profitability.People can be tempted easily if they are given a product at a comparatively low price than other companies producing the same product. People, referred here as the target market, doesn't want to spend much on CSD. So companies producing CSD are always on the look out for any type of price reduction. People are much more satisfied if the price is low. Most of the people in our country live under the poverty line. So affording a costly CSD is not possible for them. So the price of this products which is relatively low than in most other CSD is creating long lasting effect on the target market. Strength 2: Advertising Advertising is the promotional activity of a company regardless of the product. So it plays a great role in the promotional portion of the company operation. This section plays a vital role in the company's popularity as well as the product and thus affecting the sales volume. The large the sales volume, the large amount of profits it can incur.People like new and improved advertising of any product. These ads create an impact on the buyers mind. They influence the buyers to buy more and consume the product more. So the advertisements need to be creative and more appealing which virgin provides to the fullest capacity. So it is attracting a huge amount of customers through the creative efforts of the people responsible for the promotional operations. Strength 3: Backed by foreign Franchisee This company is backed by a British mother organization which provides all the funding for its operations. As there is no political force applied here the operations go pretty smooth. The operator or the chief people over here are directly responsible for their actions and has to justify to the mother organization.People in this country are much more attracted to foreign products than native products. As it is a company backed by foreign franchisee people is more attracted to it. People react differently and favorably in regard to the foreign backings. That's how it creates more popularity and increases the sales volume. Strength 4: Motto Beverage product is largely backed by the motto .This motto provides the colorfulness of the company and the product. The employees working in the company are also moved by this


theme. They are motivated to work in a pleasant environment and making the company a place to relish for.Coloring the life means adding sparkles to it. It can be of any sorts. Making lives more beautiful, energetic, bringing joy and happiness and becoming more enthusiastic is what is meant by this motto or the theme. People like this kind of flair. They understand the importance of being constantly in pressure and side by side the necessity of joy and colorfulness in their lives. Most of the people in the target market are ranged between the preteens and the teens. They are the ones who are mostly motivated by this motto. Because, at that age human tend to add a little bit extra to their ordinary live. Brand through their motto conveys that message to the people. It's basically about the image of the product which the company is working to develop.Eventually this motto has the providence of future strengths, as no other competing companies have such fundamental motto. If we look at the major players at the market, CocaCola , RC doesn't have any motto to promote as a theme. While Pepsi occasionally use mottos like "ye dil mange more" but they are less likely to be used as a fundamental theme on which consumer incentive can be developed to direct the impulse decision making to the favor of the company. Strength 5: Popularity Popularity is one thing that is desired by all the companies any where around the world. The most popular companies strive for more as well as other companies. Popularity drives the employees in maintaining it for as long as possible. This popularity is a very important factor that drives the company operations to go faster and smoother.People consume the most popular products than that of other least popular products. So being popular this company gets the target market's attention. And thus it maintains a large scale of sales volume, which in return increases profitability. In the metro portion of the virgin cans are sold very frequently, because of their popularity among the major target market which is in between the teenagers. The popularity is on the rise and it is spreading to the whole country in a rapid pace. Weaknesses Weakness 1: No International Recognition International recognition is closely related with brand loyalty. Because of the fact that the product which is internationally acclaimed is the brand the target market is supposed to look for. Some companies in regard to other competing companies does not have an international recognition. For that reason Virgin,Mojo,Uro,Suncrest,Pran has not as widely popular as other two most competitive forces in CSD market which are Coke and Pepsi. So people are not looking at the product as they are so much compelled with the recognizable products which are on display. So it also affects the sales volume and by doing so the profitability and popularity also decreases. Customers satisfied with the other brand products are not looking for any other alternatives. So it also has long lasting psychological effect on the target market. The employees in the company are sometimes frustrated with the fact that competing companies are so well oriented in recognition to the world. Whereas they are stuck in a position where there is only nationwide recognition.The needs of the target market are diversified in many ways. So meeting these needs in respect of international recognition is possible for some particular


sections only. As it is nationally recognized the publicity should be effective enough to stamp the name of the product in the hearts of the people. The company should also judge and follow the campaigns that are followed by the rival companies making some minor or major modifications. The product quality, quantity, price, shape and other relative stuffs should also be considered in regard to the companies recognized to the whole wide world. Weakness 2: Not enough publicity or promotion Not enough publicity and absence of quality promotional activities are the weaknesses of Some National Companies. They not have quality advertisements to attract huge amount of consumers. People are easily motivated if they come in contact with a suitable and attractive advertisement of any product. But some lacks that. Their promotional activities do not cover quality. They are not up to the mark or standard enough to convey the message clearly. They lack stars from the nation and international region. They also lack creativity and the spark that is needed to implement the thought of this product profoundly in the minds of the target market. They do not participate in any public appearances often.This weakness can be covered through the recruitment of creative workforce and participating, sponsoring in huge publicity campaign. Creating compatible and international standard advertisements and public offerings sometimes reduces this weakness to some content. Employees should be instructed in a way that they come up with new and innovative ideas. There should be good relationship among the position hierarchy of the management and the officials. Weakness 3: Not enough Popularity on contrast with other Competing companies The lacking in popularity is the effect of the previous weaknesses. These play a vivid role in the decrement of the popularity of the particular product in the consumer market. Also the strength of other companies plays a gigantic role as they are in the top notch position in the CSD market. The strengths of other companies sometimes act as the weaknesses for the company that is competing. These things act as the determinant for increase or decrease in popularity.To prevent this from occurring, the company heavily relies on the workforce and the management. Effective planning and converting weaknesses to strength help in solving this situation. Opportunities Opportunity 1: Improvement on varieties Few companies are very sound in regard to opportunities. There is a vast array of opportunities for this company. One of those opportunities is the variety of product in view of color and taste. They have the opportunity to go for product change in any condition at any given time. They can prepare for the change in the taste of the target market in future. Their products can be compatible with the course of time. For the different age groups in the target market they can devise new flavors which are preferred by each particular group. There is another possibility in improving the packaging the product. With a view to opt the opportunities the management and the marketing side has to work rigorously. Companies has already many flavors but can't be sure that all the flavors will be liked by the target market. So they need to be on the lookout or keep on researching about new and improved flavors. For this laboratory expansion and enhancement in work force is very much needed. The


equipments that are needed in packaging & labeling need to be improved throughout the company's operations constantly. Opportunity 2: Price Variation The price of any product should be set on the bases of buying power of the target market. If their buying power goes up than normal a company can introduce high priced products into the market and also get a good sale with it if the product is liked by the target market regardless of the price. But the economic and financial condition of the people in our country as a whole is not pretty good at the moment. In some areas of the urban portion the buying power shoots up whereas the people living in the rural areas suffer mostly financially. So the pricing of the product is a very complicated job. There is this opportunity where the price should be cut down to size and sometimes the price should be set high in regard to the situation. The pricing should also vary in regard to the competitor's action that is if they cut price Virgin should also look for ways to cut down their price also. That is they should always be alert what the competitive market is doing regarding the price.Price of a product is determined by the marketing representatives and other related officials. Whenever there is any differentiation in the prices of competitors product the officials look deep into the issue and find out the important points which they can work on. After reviewing the relative issues they make decisions on pricing whether to increase or to decrease. They can form a survey group which will judge the peoples reaction to the present price and in future what they want. By judging the peoples opinions and relative marketing factors the company evaluates its position aside with it's competitors. Opportunity 3: Promotion Beverage is a nationwide popular product it carries out different promotional activities in the country. But as we know the promotional activity is not up to the mark for the company. So there is every opportunity of improving the quality of the promotional activities of Product. It can use national TV celebrities and sometimes go for band musicians also to perform in their ads to create an image in the minds of the target market. Marketing is nowadays is very much dependant on promotion. People like watching their favorite movie star or musician on screen and they are motivated by the things they wear, they drink, they eat or any other stuff. As Virgin hasn't acquired that promotional stand there is every opportunity to avail that. It can also get foreign movie stars or musicians to take part in their billboards or hoardings. These things create a very big impression on the target market.There should a different section of the company dealing with this promotional activity. They should always be aware of the fact that people are looking for variety in ads and commercials. There should be some spices in the ads in order to attract consumers. They should include creative workforce in their department to make unique ads and commercials. They should make contracts with the most popular on screen superstars and popular persons in any field like music, sports, charity etc. Threats Threat 1 Competitor’s action A company largely faces threat from its competitors. The common threat is the actions the other companies conduct on reaching the top spot. These actions include lots of activities. Such as promotional activities, pricing, packaging, labeling, introduction of new products, organizing charitable functions, organizing different social occasions and sponsoring


different social welfare. These are the activities that boost the image of a company regardless of other company's position. These things also create an impact and a long lasting image on the target market's minds. All the activities are somewhat in need for the target market. If the competitors stay ahead by these activities they are sure to flourish. There are many competitors of Beverage product in Bangladesh and throwing challenges towards it. So these are considered as major threats for this CSD Company.To counterattack these threats first the company has to judge the threats that are thrown at it. It has to judge the effects these threats have on the company and the target market. Then it has to compare the activities that this company is undertaking with the activities that are performed by the other companies. If there is any kind of deviation they should quickly take corrective measures. If found that it is ahead of the game it should improve the condition at such a level that it becomes tough for other competitors to reach. Threat 2: Management Failure Another major threat it faces is the management failure. All Drinks companies are a small portion of the major company it operates in large scale in Bangladesh. So the management has to be very much rugged to cope up with the large business in regard to Bangladesh. In respect of Bangladesh there are some difficulties in managing a large scale company. These may be inefficient employees, political force and other unwanted issues. The management structure may be in jeopardy or unstable. As well as the mother company doesn't involve itself directly into the management. There is every chance of corruption and misinterpretation of information. So there is a big chance of failure in management.To deal with the management problem the company should be able to appoint appropriate and efficient employees in their rightful position. They should train them up so they can deal with the diversified situations that they will be facing. Another thing that can be done is seek help from the main or the mother company. Threat 3: Loose the target market The next threat can almost be defined as the result of other threats. All the threats that are described above this is the last thing that can occur as the consequence of those. The company may completely loose its target market. Then it may totally dissolute from the business world. That's why the company has to be alert of the threats and be very cautious about handling them. The target market may loose interest in buying the products if there is flavor, price, quality, quantity and other facts are inconsistent with the product and the competitive market. The company should be aware of the fact that it is last on the list and it has to work its way up to the top. So the intention to work hard should develop in the management as well as the employees. They should be reminded of the fact that it may dissolute if the desired position is not acquired. Company Wise SWOT Analysis SWOT analysis defines that company’s own strength, weakness, opportunity, and threat. It is most needed things for a company that determines its current situation in the market.


Abbreviation

Amplification

Strength Opportunit Threaty

SWOT

Weakness SWOT analysis naturally occurred in two factors. 1) Internal Factor

Strength Weakness Opportunity Threat

SWOT Analysis Of Abdul Monem Ltd. Strengths Management competence. Good marketing skills. Good materials management systems. Competence of information system. Competence of human research. Brand name reputation. Appropriate management style. A large market share. Weaknesses: Conflict in between pure marketing knowledge and application. Decline in research and development for innovation. Don't feel necessity of market survey and not eager to understand consumer behaviors. Not eager to redesign or reformat the product. Opportunities: Company can expand its product line by introducing differentiation or introducing new items for various using purposes. Can apply research and redevelopment in new areas. Extend cost or differentiation advantages. Exploit new market segments. Threats: Changes in consumer tastes. Rapidly rising and invention of new or substitute products. New forms of vigorous industry competition.


Political instability and government regulation. SWOT Analysis of Tabani Beverage Ltd. Strengths World famous brand name. Pioneer product in this field. Weakness Tabani Beverage has not very competence sales force. They don’t follow any strong marketing strategy due to government organization. The company cann’t produce pet bottle and purchase from other company. Opportunity There is a better chance to create market demand in Bangladesh. Company can focus customers mind by implementing more modernized advertising. Threats Tabani Beverage follows Government regulation but some competitors do not. Other competitors introduce ‘Can’. Other competitors reduce their price. SWOT Analysis Of Transcom Beverage Ltd. STRENGTHS Renowned product doing business all over the world carrying good image among the customer. Availability of large number of technically sound professionals. Relatively higher profitability of Beverage products. Extended government and institutional support. Competition among the marketers to introduce new brands. WEAKNESSES Lack of professionalism of most of the retailer & whole sellers. Political unrest and natural disaster after disrupt expected sales growth. Procurement of majority of the raw materials from abroad. Bangladesh has no facilities of studies on Beverage products. Opportunities Increasing socio-economic status of the people in Bangladesh. Globalization and increasing free flow of information. Increasing the awareness of use quality product rather than local product. Large number of population of the country.


Threats Misguiding information by some marketers especially with the new brand targeting the well established existing one. Tendency of the retailer and whole sellers to get benefit irrationally within very short time SWOT analysis of Partex Beverage Ltd. Strength Partex beverage LTD is the Best of Partex groups and the Partex group has a good image in the market also in the consumer. They are financially supported by its Motion concern. Their distribution channel is very wide and they using the current dynamic market theory. Well behaved and experienced executives in the group. Friendly working environment is found in the company Weakness Untrained Sales force. So RC is not available is in every where in the market. Production of RC is low New brand in Bangladesh so it needs time to make its position in the market and in the consumer. Insufficient Promotional activity Opportunity Increasing the target Market The company can use extrusion technology Quality conscious consumer Threats Lots of low competitors are in the target market Consumers taste are always changeable so consumer always prefer new item Consumers are price conscious but day by day price is increasing. SWOT Analysis OF Akij Beverage Ltd. Strength: The company has good number of products. The company has a good marketing management. Distribution channels are good. Good number of field forces. Marketing people are very skilled. Weakness: Employees are not motivated. Management doesn’t follow any organizational structure. Opportunity: Good number of field forces. Good number of products range. Sophisticated products are available. Market coverage is good. Threat: Competitors are very much active.


Numbers of competitors are more. Competitors coverage are also very good. SWOT Analysis of Global Beverage Ltd. Strengths Virgin is a world famous brand name. Virgin is the pioneer in this field. Virgin maintains standard quality level. It provides attractive design. Distinctive packaging. It creates image in young generation. Well influencing advertising. Strong marketing and distributing side. Weakness Virgin has no fountain pack. Virgin is recently introduced in Bangladesh in 1999 that’s why they didn’t captured big market. GBCL doesn’t follow societal marketing concept. Opportunity There is a better chance to create market demand in Bangladesh. Virgin can focus customers mind by implementing more modernized advertising. Fountain pack and 250 ml with plastic container can increase more customers. Virgin has taken short-term program for pet bottle. Virgin needed to reduce its price for improving its sales without changing quality level. Has a big chance to entrance into international market by exporting neighborhood countries. Threats GBCL follows Government regulation but some competitors do not. Other competitors introduce ‘Can’. Other competitors reduce their price. SWOT Analysis Of Globe Soft Drinks Strength: The company has good number of products. The company has a good marketing management. Distribution channels are good. Good number of field forces. Weakness: There is no specific job description. Management doesn’t follow any organizational structure. They don’t have any job description. Opportunity: Good number of products range. Sophisticated products are available. Threat: Numbers of competitors are more. Competitors coverage are also very good. Swot Analysis Of Pran Group Strengths Management competence.


Good materials management systems. Brand name reputation. Appropriate organizational style. Appropriate management style. Weaknesses: Partial poor marketing plan and maximum time emphases on only TV advertisement not on other promotional mix. Not eager to redesign or reformat the product. Lack of technical manufacturing skill. Opportunities: Company can expand its product line by introducing differentiation or introducing new items for various using purposes. Diversity into new growth business. Overcome barriers to entry. Threats: Increasing foreign companies’ domination. Changes in consumer tastes. Rapidly rising and invention of new or substitute products. New forms of vigorous industry competition. SWOT Analysis OF National Beverage Ltd. Strength: The company has good number of products. Distribution channels are good. Good number of field forces. Weakness: There is no specific job description. Employees are not motivated. . Management doesn’t follow any organizational structure. Opportunity: Good number of field forces. Good number of products range. Sophisticated products are available. Threat Competitors are very much active. Numbers of competitors are more. Competitors coverage are also very good. SWOT Analysis Of Al-Amin Beverage Strengths Availability of large number of technically sound professionals. Relatively higher profitability of Electronics products. Extended government and institutional support. Weaknesses Lack of professionalism of most of the retailer & whole sellers.


Political unrest and natural disaster after disrupt expected sales growth. Procurement of majority of the raw materials from abroad. Unethical practices of some marketers. Opportunities Globalization and increasing free flow of information. Increasing the awareness of use quality product rather than local product. Large number of population of the country. Threats Company don’t follow and provide good marketin strategy and promotional activities where competitors give much more. The company is not interest in this business because of maximum products are in declining stage. SWOT Analysis Of ZamZam Group Strengths Foreign group of company Experience in international market Weaknesses: Very new in Bangladesh market. Product line is very few. Opportunities: Company can expand its product line by introducing differentiation or introducing new items for various using purposes. Can apply research and redevelopment in new areas. Diversity into new growth business. Threats: Increasing foreign companies’ domination. Not have any experience in marketing strategy and promotional activities of Bangladesh. Political instability and government regulation. Product Life Cycle Marketing mix Marketers have essentially six variables to use when crafting a marketing strategy and writing a marketing plan. They are price, promotion, product Profit, Packaging and distribution (also called placement). They are sometimes referred to as the four p's. A marketing mix is a combining of these six variables in a way that will meet or exceed organizational objectives. A separate marketing mix is usually crafted for each product offering. When constructing the mix, marketers must always be thinking of who their target market are. Mix coherency refers to how well the components of the mix blend together. A strategy of selling expensive luxury products in discount stores has poor coherency between distribution and product offering. In the long term, all six of the mix variables can be changed, but in the short term it is difficult to modify the product or the distribution channel. Therefore in the short term, marketers are limited to working with only half their tool kit. This limitation underscores the importance of long term strategic planning. Some commentators have increased the number of p's in the mix to 5, 6 or even 8. "People" is


sometimes added, recognizing the importance of the human element in all aspects of marketing. Others include "Partners" as a mix variable because of the growing importance of colaberative channel relationships. Here I discus 6 p’s as : Product Price Profit Packaging Promotion Distribution Product In marketing, a product is anything that can be offered to a market that might satisfy a want or need. However it is much more than just a physical object. It is the complete bundle of benefits or satisfactions that buyers perceive they will obtain if they purchase the product. It is the sum of all physical, psychological, symbolic, and service attributes. A product is similar to goods. In economics, goods are physical objects that are available in the marketplace. This differentiates them from a service, which is a non-material product. There are three aspects to any product or service: 1. Core Benefits In-use benefits Psychological benefits (e.g., self-image enhancement, hope, status, self worth) Problem reduction benefits(e.g., safety, convenience) 2. Tangible Product or Service Product attributes and features Quality Styling Packaging protection and label information Brand name 3. Augmented Product or Service Warranty Installation Delivery Credit availability After-sale service and maintenance Classifying Products Product management involves developing strategies and tactics that will increase product demand (referred to as primary demand) over the product's life cycle. One useful technique in understanding a product is the Aspinwall Classification System. It classifies and rates products based on five variables: replacement rate - how frequently is the product repurchased


gross margin - how much profit is obtained from each product (average selling price less average unit cost) buyer goal adjustment - how flexible are the buyers' purchasing habits in regards to this product duration of product satisfaction - how long will the product produce benefits for the user duration of buyer search search behaviour - how long will they shop for the product Types of Products There are several types of products: Consumer products - used by end users Industrial products - used in the production of other goods Convenience goods - purchased frequently and with minimal effort Impulse goods - purchase stimulated by immediate sensory cues Emergency goods - goods required immediately Shopping goods - some comparison with other goods Specialty goods - extensive comparisons with other goods and a lengthy information Search Unsought goods - e.g., cemetery plots, insurance Perishable goods - goods that will deteriate quickly even without use Durable goods - goods that survive multiple use occasions Non-durable goods - goods that are used up in one use occasion Capital goods - installations, equipment, and buildings Parts and materials - goods that go into a finished product Supplies and services - goods that facilitate production Commodities - undifferentiated goods (e.g., wheat, gold, sugar) By-products - a product that results from the manufacture of another product The various product varieties are offered by the various companies in Bangladesh beverage market. The companies are offering their product in different size quality and bottling to meet the varied requirement of the customers. In the beverage market soft drinks are found in bottle, cans and in fountain machines. In this study fountain Machine product are not concerned. The summarizations of varieties Product offered by the different companies are as followsCOCA-COLA Coco-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. Created in Atlanta, Georgia, by Dr. John S. Permberton, Coco-Cola was first offered as a fountain by mixing Coco-Cola syrup with carbonated water. Coco-Cola was registered as a trademark in 1887 and by 1895 Coco-Cola was being sold in every state and territory in the United State. In 1899, the company began franchised bottling operations in the United State. Today, you can find Coco-Cola in virtually every part of the world. The Coco-Cola company has more than 300 in its portfolio. Ingredients–Carbonatedwater,suger,caramel colour,acidulant,natural flavours and caffeine. Nutrition facts per 100 ml.


Energy Total fat Protein Carbohydrate

42 kcal 0 gm 0 gm 11 gm

Size : 250ml.,1000ml. Glass bottle. 500ml.,1000ml.,1500ml.,2250ml. Pet bottle. 250ml. Can. Sprite Introduced in 1960, Sprite is the world’s leading lemon-lime flavored soft drink. Sprite is sold in more than 190 countries and ranks as the No.4 soft drink worldwide with a strong appeal to young people.Millions of people enjoy sprite because of its crisp, clean taste that really quenches your thirst. But Sprite also has an honest, straightforward attitude about things that sets it apart from other soft drink, Sprite encourages you to be true to who you are and to obey your thirst. Ingredients –Carbonated preservative. Nutrition facts per 100 ml. Energy Total fat Protein Total carbohydrate

water,suger,natural

flavours,permitted

acidulant

salts

and

41 kcal 0 gm 0 gm 10 gm

Size : 250ml.,1000ml. Glass bottle. 500ml.,1000ml.,1500ml.,2250ml. Pet bottle. 250ml. Can. Fanta A favorite in Europe since the 1940s, Fanta was acquired by the Company 1960. Fanta is the core flavor, representing about 70% of sale, but other citrus and fruit flavors have their own sol fun base.

in

Consumers around the world, particular teens fondly associate Fanta with happiness and special times with friends and family. This positive imagery is driven by the brand’s fun, playful personality, which goes hand with the bright color (particularly orange fruit taste, and tingle carbonation. Fanta sells best in Brazil, Germany Spain, Japan, Italy and Argentina. Fanta Distribution was increased in the U.S. in 2001 with the turn of tour flavors: orange, strawberry, pineapple and grape. Orange, the biggest seller, is now available in most of the country. Ingredients– Carbonated water,suger, permitted flavours,Acidulant,Stabilizer,Preservative and colour. Size :250ml. Glass bottle. Diet Coke

artificial


The most popular sugar-free soft drink in America—it's the one that started the fun with its clean, crisp, refreshing taste and stylish can. The original drink for people who want great taste without any of the calories, diet Coke is a classic. Size : 500ml.,1000ml.,1500ml.,2250ml. Pet bottle. 250ml. Can. Pepsi Pepsi Cola is a consumer product, which is bought frequently for personal consumption. It can be classified as convenience product this is generally available to the nearest retailer shop and fast food. When a consumer attempt to purchase this type of product they have in their mind about the objective and price of the product. PepsiCo Limited in Bangladesh works as strategic business unit of Transcom Beverage Limited which is the actual franchise organization of Pepsi Co. Inc. (USA). The products that PepsiCo offers are given below: Size : 250 ml glass bottle 500,1000,2000 ml pet bottle Ingredients : Carbonated water,sugar,caramel sequestering and buffering agents and added flavours. Pepsi Diet Size : 500,1000,2000 ml pet bottle. Ingredients : Carbonated water,Caramel ,Sequestering and Buffering Agents,Aspartame Acesulfame potassium,Flavours and preservative. (Note : This carbonated water contains and admixture of aspartame (Methyl Ester ) and Acesulfame potassium.Not for Phenylketonevrics.Not recommended for children.) 7 up Size : 250 ml glass bottle. 500,1000,2000 ml glass bottle. Ingredients : Carbonated water,Sugar, sequestering and buffering agents,Emulsifying and stabilizing agents,Preservative and flavour. 7 up ICE Size : 500 ml,1000 ml. pet bottle. Ingerdients : Carbonated water,Sugar, sequestering and buffering agents,Critic acid,Malic acid, Emulsifying and stabilizing agents, Preservative and flavours. 7 up (light) (sugar free) Size : 500 ml.pet bottle. Ingerdients : Carbonated water,Acidity regulators and sequestering agent,Aspartame and acesulfame potassium,Flavours and preservative.


Teem (Lemon) Size : 500 ml pet bottle. Ingredients : Carbonated water,Sugar, Buffering agents,Emulsifying and stabilizing agents,Preservative and flavour. Slice Size : 250 ml glass bottle. Ingredients : Treatro water,Sugar,Mango pulp,Vitamin C,Preservative and flavours. Mountain Dew Size : 200 ml glass bottle. 500,1000 ml pet bottle. Ingredients: Carbonated water,Sugar,Ascorbic acid,Salts,Preservative,Permitted colour and flavours. RC cola Size :330ml.,500ml.,1000ml.,1250ml.,2000ml. Pet bottle. 250ml. Can . Ingredients Carbonated water,Granulated sugar, and/or high fructose corn syrup,caramel colour (E/150),Phosphoric acid,Critic acid,Caffeine and natural cola flavour. Nutrition facts Serving size 8 fl oz (240 ml) Serving per container about 4 Calories 110 mg Total fat 0 g Sodium 0 mg Total carbohydrate 27 g Sugars 30 g Protein 0 g RC Lemon Size :330ml.,500ml.,1000ml.,1250ml.,2000ml. Pet bottle. 250ml. Can . Ingredients Carbonated water,Granulated sugar, and/or high fructose corn syrup,critic acid,Gum acacia,sodium benzoate(A preservative),Glyceryl abietate , Natural flavour,Fractionated cocunut oil and Quinoline yellow #10 (E-104) Nutrition facts Serving size 8 fl oz (240 ml) Serving per container about 2 Calories 129 Total fat 0 g


Sodium 7 mg Total carbohydrate 32 g Protein 0 g RC Orange Size : 500ml. Ingredients Carbonated water,Granulated sugar, and/or high fructose corn syrup,critic acid,Gum acacia,sodium benzoate(A preservative),Glyceryl abietate , Natural and artificial flavour,and yellow # 6 (E-110 ) Nutrition facts Serving size 8 fl oz (240 ml) Serving per container about 2 Calories 118 Total fat 0 g Sodium 9 mg Total carbohydrate 27 g Protein 0 g Upper 10 Size :330ml.,500ml.,1000ml.,1250ml.,2000ml. Pet bottle. 250ml. Can . Ingredients Carbonated water,Granulated sugar, and/or high fructose corn syrup,critic acid, sodium benzoate(A preservative),Sodium citrate,Natural flavour and Gum acacia. Nutrition facts Serving size 8 fl oz (240 ml) Serving per container about 8 Calories 124.06 (519.42 kj) Total fat 0 g Sodium 26.87 mg Total carbohydrate 30.77 g Protein 0 g Mojo (cola flavour) Size: 2 ltr.,1 ltr.,250 ml. Can size-250 ml. Ingredients :Treated water,refined flavours,natural colours,caffeine. Nutrition Facts per 100 ml. Energy

suger,carbon

43.0 kcal

dioxide,carmel,acidulant,natural


Fat Protein Carbohydrate

0.0 gm 0.0 gm 10.5 gm

Lemu (lemon) Pet bottle size:2 ltr.,1 ltr.,250 ml. Can size:250 ml. Ingredients :Treated water,refined suger,carbon dioxide, acidulant,natural flavours,natural colours,Preservatives and salts. Nutrition Facts per 100 ml. Energy Fat Protein Carbohydrate

43.5 kcal 0.0 gm 0.0 gm 11.0 gm

Virgin Cola Virgin Cola is the famous soft drinks that GBCL manufacturer. Ingredients Carbonated Water Sugar Colour (E150d) Phosphoric Acid Flavorings Caffeine

Nutritional Information Typical Value per 100 mls Energy 186/44 kcal Protein Less than 0.1g Carbohydrate 10.9g

Can Size : 250 ml Pet Bottle : 500 ml, 1 Liter and 1.5 Liter Virgin Orange Ingredients Carbonated Water Sugar Orange Fruit (5%) Citric Acid Stabilizer Flavorings Sodium Benzoate Ascorbic Acid Colour

Nutritional Information Typical Value per 100 mls Energy 230/55 kcal Protein Less than 0.1g Carbohydrate 13.5g Fat Less than 0.1g

Can Size : 250 ml Pet Bottle : 500 ml, 1 Liter and 1.5 Liter Virgin Lemon Virgin lemon is another soft drinks produced by GBCL. Ingredients

Nutritional Infor-mation


Carbonated Water Sugar Ascorbic Acid Citric Acid Flavorings Sodium Citrate Sodium Benzoate

Typical Value per 100 mls Energy 180/43 kcal Protein Less than 0.1g Carbohydrate 10.3g Fat Less than 0.1g

Can Size : 250 ml Pet Bottle : 500 ml, 1 Liter and 1.5 Liter Virgin Diet Peoples are more health conscious, so GBCL think about this topic and they produced Virgin Diet for their consumer. Ingredients Carbonated Water Color (E150d) Phosphoric Acid Sweetener (Aspartame) Acidity Regulator (Sodium Citrate) Preservative (Sodium benzoate) Flavorings Caffeine

Nutritional Information Typical Value per 100 mls Energy 1.8/0.44kcal Protein Less than 0.1g Carbohydrate 0.1g Fat Less than 0.1g

Can Size : 250 ml Pet Bottle : 500 ml, 1 Liter and 1.5 Liter Uro Cola Pet Bottle size : 2 ltr.,1 ltr.,500 ml,330 ml. Can size : 250 ml. Ingredients : Carbonated water,Caramel colour,Sugar,Phosphoric Acid,Caffeine and others flavourings. Uro Lemon Pet Bottle size : 2 ltr.,1 ltr.,500 ml,330 ml. Can size : 250 ml. Ingredients : Carbonated water,Granulated sugar and /or high fructose corn syrup,critic acid,gum acacia,sodium benzonate,(apreserbvative),Glyceryl abietate natural flavor,Fractionated coconut oil and quinoline yellow #10 (E-104) Fizz Up (Clear Lemon) Pet Bottle size : 2 ltr.,1 ltr.,500 ml,330 ml. Can size : 250 ml. Ingredients :Carbonated water, Granulated sugar, critic acid, sodium benzonate,sodium citrate and flavour. Uro Orange


Pet Bottle size : 1 ltr., 330 ml. Can size : 250 ml. Royal Tiger Glass bottle size: 150 ml. Can size: 250 ml. Ingredients :Ingredients declaration per 270 ml. Sweetened carbonated energy drinks.Taurine,Glucoron Delta Lactone,Caffine,Inositol,Pyridoxine HCL,Caffeine,Vit B 3, Vit B 5,Treated water,Flavouring Agent, Permitted colour. Nutrition Facts carbonated Energy Drinks per 270 ml. Calories per serving Saturated Fat Total Carbohydrate Suger

165 kcal

Total Fat

0g

0g 44 g

Cholesterol Dietary fibre

0g 0g

42 g

Protein

0g

Suncrest Cola Pet Bottle size : 250ml.,500 ml,1000 ml .,1500ml. Can bottle size: 250ml. Ingredients : Carbonated water,Sugar and permitted flavours. Suncrest Super Lemon Pet Bottle size : 250ml.,500 ml,1000 ml .,1500ml. Can bottle size: 250ml. Ingredients : Carbonated water,Sugar ,Critic Acid,Sodium Benzoate,Gum Acacia,Ester Gum and natural flavour. Bubble Up Pet Bottle size : 250ml.,500 ml,1000 ml .,1500ml. Can bottle size: 250ml. Ingredients : Carbonated water,Sugar and permitted flavours. Kickapoo Joy Juice Pet Bottle size : 250ml.,500 ml,1000 ml .,1500ml. Can bottle size: 250ml. Ingredients : Carbonated water,Sugar,Permitted flavours,contains no fruit juice or pulp,But added flabours. Pran Cola Size : 250ml. Glass bottle. 330ml.,500ml.,1000ml. Pet bottle. Made from best cola carbonate Hygienically produced by the State-of-the-Art-Technology Ingredients : Carbonated water,sugar,Acidulant,caramel colour (E-150),Caffeine and natural flavour.

Nutrition facts (Per 100 ml.


Energy Total fat Total carbohydrate Protein

43-60 kcal 0g 10.90 g 0g

Pran Up (Clear Lemon) Size : 250ml.,330ml.,500ml.,1000ml. Pet bottle. Ingredients :Carbonated water, Suger, Critic Acid, (E-330),Vitamin C, (Asorbic Acid E300), Sodium Citrate (E-331),Sodium Benzoate (E-211),Natural Identical Flavor. Nutrition Facts (Per 100 ml) Energy 48 kcal Total Fat 0g Total carbohydrates 12 g Protein 0 Pran lemon (Cloudy Lemon) Size : 330ml.,500ml.,1000ml. Pet bottle. Ingredients :Carbonated water, Suger, Critic Acid, (E-330),Vitamin C, (Asorbic Acid E300), Sodium Citrate (E-331),Sodium Benzoate (E-211),Natural Identical Flavor and permitted color (E-171). Nutrition Facts (Per 100 ml) Energy Total Fat Total carbohydrates Protein

48 kcal 0g 12 g 0

Double Cola Size : 330ml.,500 ml.,1000ml.,2000ml.pet bottle 330ml. Can. Ingredients : Carbonated water,sugar,caramel color,Natural and artificial flavor,Phosphoric acid,Caffeine,Critic acid,Sodium Benzoate Nutrition facts Serving size 250 ml. Calories Total fat Sodium Total carb Sugars

90 0g - 0% 10 mg - 1% 22 g - 7% 22 g


Protein

0g

SKI (Cloudy lemon & orange) Size : 500 ml.,1000ml. Ingredients : Carbonated water,sugar,critic acid,sodium citrate,Gum Acacia,Sodium Benzoate,Ester gum and natural flavours. Nutrition facts Serving size 250 ml. Calories Total fat Sodium Total carb Sugars Protein

139 0g - 0% 112 mg - 5% 36 g - 1% 33 g 0g

ZamZam cola Size :250ml.pet bottle. Ingredients : Carbonated water,Suger,Phosphoric Acid,Natural. Table of nutritional Values Sodium

Suger

Carbohydr ate

Saturat ed

Fat

Protein

Calorie

18 mg

31.2 gr

31.2 gr

0 gr

0 gr

0 gr

525 kj

ZamZam Lemon Size :250ml.pet bottle. Ingredients : Carbonated water,suger,Acidulant (critic acid E 330),Natural lemon flavour,Preservative (E 211). Sodium

Suger

Carbohydr ate

Saturat ed

Fat

Protein

Calorie

18 mg

31.2 gr

31.2 gr

0 gr

0 gr

0 gr

525 kj

Pricing Pricing policy is one of the major parts of marketing strategy for any company. That is why the Pricing policy is kept secret by the companies. Because disclosing of pricing policy of a company can help its competitors to identify its marketing strategy. Therefore it will help the competitors to avail of a competitive advantage over the company. This has been the case for the beverage companies as well. As a result the denied providing information about the pricing strategy to maintain their secrecy.


On the other hand the market is oligopolistic which illustrates that the smaller firms usually follow the price of the market leader. They change their prices when the market leader's prices change rather than their own demand or cost changes. That is why it is been assumed that the beverage companies follow the going rate pricing policy. Price is one of the major factors that influence demand. The beverage companies in Dhaka City put much importance on their pricing the product from distributors to the final consumers. It has been seen that the MRP of regular size bottles are very similar. This is because it is the retail market price, which actually the consumers see and it also influence the demand. So the companies in this oligopoly market try to increase the demand by maintaining the going price rate. There are different sizes in the regular or small size bottle. Here likes the strategy of the companies. Despite the current demand caused by other factors, the companies try to attract people by offering different sizes . The pricing decision are influenced both by a number of internal and external factors. The internal factors include the cost ofRaw materials Packaging materials Transportation These factors are taken into account and per unit manufacturing cost are calculated. This is known as the Factory Price the external factors include.Government Regulations: It plays a big role because with the factory price 25% tax (15% VAT and 10% supplementary tax) is added. Table: 7.1 Pricing Of Coca-Cola Company Size

Distributor price (per unit)

Retailar price (per unit)

Consumer price (per unit)

250ml.(glass botle) 250ml.(can)

8.50Tk.

9.50Tk.

12Tk.

15Tk.

16.50Tk.

20Tk.

500ml.(pet)

14Tk.

16Tk.

20Tk.

1000ml.(pet)

27Tk.

29Tk.

35Tk.

1000ml.(glass)

23Tk.

25Tk.

30Tk.

2000ml.(pet)

49Tk.

52Tk.

60Tk.

2250 ml.(pet)

60.50Tk.

63Tk.

70Tk.


Table: 7.2 Pricing of pepsi company Size

Distributor price (per unit)

Retailar price (per unit)

Consumer price (per unit)

250ml.(glass botle) 250ml.(can)

8.50Tk.

9.50Tk.

12Tk.

15Tk.

16.50Tk.

20Tk.

500ml.(pet)

14Tk.

16Tk.

20Tk.

1000ml.(pet)

27Tk.

29Tk.

35Tk.

1000ml.(glass)

23Tk.

25Tk.

30Tk.

2000ml.(pet)

49Tk.

52Tk.

60Tk.

Table: 7.3 Pricing of RC cola Size (Rccola,Lemon, Orange,Upper 10) 250ml.(can) 330ml.(pet) 500ml.(pet) 1000ml.(pet) 1250ml.(pet) 2000ml.(pet)

DISTRIBUTOR (PER UNIT)

PRICE

16 Tk. 12 Tk. 17.30Tk. 29.25Tk. 33.75Tk. 50.20Tk.

RETAILAR PRICE (PER UNIT)

CONSUMER PRICE (PER UNIT)

17.50 Tk. 13.50 Tk. 18.50 Tk. 31Tk. 35.50Tk. 53Tk.

20Tk. 15Tk. 20Tk. 35Tk. 40Tk. 60Tk.

Table : 7.4 Pricing of Akij Beverage ltd. Size (Mojo,Lemu)

Retailars price (per unit)

Consumer price (per unit)

150ml.(pet)

9.50Tk.

12 Tk.

250ml.(can)

15Tk.

18 Tk.

250ml.(pet)

10.50Tk.

15 Tk.

1000ml.(pet)

31.25Tk.

35 Tk.

2000ml.(pet)

43.50Tk.

60 Tk.


Table: 7.5 Pricing of virgin Sizes

Promotion

Dealer

Retailer

Final consumer

Can 250ml (cola,lemon,orange)

Tk. 12.30

Tk. 12.30

Tk. 13.5

Tk. 15

Diet can 250 ml

Tk. 14.76

Tk. 14.76

Tk. 16.5

Tk. 18

Small pet 500 ml

Tk. 17.50

Tk. 17.50

Tk. 18.5

Tk. 20

Medium pet 1 liter

Tk. 21.25

Tk. 21.25

Tk. 23.0

Tk. 25

Large pet 1.5 liter

Tk. 31.30

Tk. 31.30

Tk. 32.8

Tk. 35

Table: 7.6 Pricing of Globe soft Drinks Size (Mojo,Lemu) 250ml.(can)

Distributor price (per unit) 12Tk.

Retailer price (per unit) 14Tk.

Consumer price (per unit) 18Tk.

280ml.(pet)

9Tk.

10.50Tk.

12Tk.

330ml.(pet)

11Tk.

12.50Tk.

15Tk.

500ml.(pet)

15.50Tk.

17Tk.

20Tk.

1000ml.(pet)

29Tk.

31Tk.

35Tk.

2000ml.(pet)

45Tk.

49Tk.

60Tk.

Table: 7.7 Pricing of National Beverage Size (Suncrest,Bubble

Distributor price (per unit)

Retailar price (per unit)

Consumer price (per unit)


Up,Kickapoo) 250ml.(pet)

8.50Tk.

10Tk.

12Tk.

500ml.(pet)

12.50Tk.

14.50Tk.

20Tk.

1000ml.(pet)

28.50Tk.

31Tk.

40Tk.

1500ml.(pet)

30.50Tk.

35Tk.

45Tk.

Table: 7.8 Pricing of PRAN group Size Retailar price (pran cola,pran up,pran (per unit) lemon)

Consumer price (per unit)

250ml.(glass bottle)

10Tk.

12Tk.

330ml.(pet)

11.50Tk.

15Tk.

500ml.(pet)

16Tk.

20Tk.

1000ml.(pet)

29.50Tk.

35Tk.

2000ml.(pet)

53Tk.

60Tk.

Pran group distribute product by their own company’s distributor so they have no distributor price. Table: 7.9 Pricing of al-amin beverage

Double Cola 330ml. Can.

13.75

16.00

Consum er price (per unit) 20

Double Cola 330ml. Pet.

10.00

12.00

15

Double Cola 500ml. Pet.

13.00

15.00

20

Double Cola 1000ml. Pet.

26.25

30.00

35

Name of Items

Distributor (per pcs.)

price

Retailar price (per pcs.)


Double Cola 1500ml. Pet.

35.75

40.00

45

Double Cola 2000ml. Pet.

40.50

45.00

50

Chaser 500ml. Pet.

13.00

15.00

20

Chaser 1000ml. Pet.

26.25

30.00

40

Chaser 1500ml. Pet.

35.75

40.00

45

Chaser 2000ml. Pet.

40.50

45.00

50

Cloudy Ski 500ml. Pet.

13.00

15.00

20

Cloudy Ski 1000ml. Pet.

26.25

30.00

35

Table: 7.10 Price of ZamZam group Size

Distributor (per pcs.)

250ml. cola

250ml. Lemon

price

Retailar price (per pcs.)

Consumer price (per pcs.)

9 Tk.

9.50Tk.

12 Tk.

9 Tk.

9.50Tk.

12 Tk.

Profit Of course the objective of many companies is to maximize profit.But in practice,defining “maximum profit” is difficult.No matter how profitable a firm becomes,it still may not have reached a point of maximum profit. Most firms express this pricing objective as a percentage increase over current profits.A company’s pricing objective may be to increase profit by 10 percent in one year. Profit of coca-cola Profit margin for 250 ml(can) 1 For the distributor: 1 tk per pcs. 2. F or the retailers: 1.50 tk per pcs. Profit margin for 250 ml (glass bottle) 1. For the distributor: 1.50tk per pcs. 2. For the retailers: 3.50 tk per pcs. Profit margin for 500 ml(pet) 1. F or the distributor: 2 tk per pcs. 2. For the retailers: 4 tk per pcs. Profit margin for 1000 ml(glass bottle) 1. F or the distributor: 2 tk per pcs 2. For the retailers: 5 tk per pcs .


Profit margin for 1000 ml(pet bottle) 1. F or the distributor: 2 tk per pcs. 2. For the retailers: 6 tk per pcs. Profit margin for 2000 ml(pet bottle) 1. F or the distributor: 3 tk per pcs. 2. For the retailers: 8 tk per pcs . Profit margin for 2250 ml(pet bottle) 1. F or the distributor: 2.50 tk per pcs. 2. For the retailers: 7 tk per pcs. Profit of Pepsi Profit margin for 250 ml(glass) 1 For the distributor: 1 tk per pcs. 2. F or the retailers: 2.50 tk per pcs. Profit margin for 250 ml(can) 1. For the distributor: 1.50 tk per pcs. 2. For the retailers: 3.50 tk per pcs. Profit margin for 500 ml(pet) 1. F or the distributor: 2 tk per pcs. 2. For the retailers: 4 tk per pcs. Profit margin for 1000 ml(glass) 1. F or the distributor: 2 tk per pcs. 2. For the retailers: 5 tk per pcs. Profit margin for 1000 ml(pet) 1. F or the distributor: 2 tk per pcs. 2. For the retailers: 6 tk per pcs. Profit margin for 2000 ml(pet) 1. F or the distributor: 3 tk per pcs. 2. For the retailers: 8 tk per pcs. Profit of RC Profit margin for 250 ml(can) 1 For the distributor: 1.50 tk per pcs. 2. F or the retailers: 2.50 tk per pcs. Profit margin for 330 ml(pet) 1 For the distributor: 1.50 tk per pcs. 2. F or the retailers: 2.50 tk per pcs. Profit margin for 500 ml(pet) 1 For the distributor: 1 tk per pcs. 2. F or the retailers: 1.50 tk per pcs. Profit margin for 1000 ml(pet) 1 For the distributor: 1.75 tk per pcs. 2. F or the retailers: 4 tk per pcs. Profit margin for 1250 ml(pet) 1 For the distributor: 1.25 tk per pcs.


2. F or the retailers: 4.50 tk per pcs. Profit margin for 2000 ml(pet) 1 For the distributor: 2.80 tk per pcs. 2. F or the retailers: 7 tk per pcs. Profit Akij beverage Akij group has own company’s distributor and no distributor profit. Profit margin for 150 ml(pet) 1. F or the retailers: 2.50 tk per pcs. Profit margin for 250 ml(can) 1. For the retailers: 3 tk per pcs. Profit margin for 250 ml(pet) 1. For the retailers: 4.50 tk per pcs. Profit margin for 1000 ml(pet) 1. For the retailers: 3.75 tk per pcs. Profit margin for 2000 ml(PET) 1. For the retailers: 6.50 tk per PCS. Profit of Globe soft Drinks Profit margin for 250 ml(can) 1 For the distributor: 2 tk per pcs. 2. F or the retailers: 4 tk per pcs. Profit margin for 280 ml(pet) 1. For the distributor: 1.50 tk per pcs. 2. For the retailers: 1.50 tk per pcs. Profit margin for 330 ml(pet) 1. F or the distributor: 1.50 tk per pcs. 2. For the retailers: 2.50 tk per pcs. Profit margin for 500 ml(pet) 1. F or the distributor: 1.50 tk per pcs. 2. For the retailers: 3 tk per pcs. Profit margin for 1000 ml(pet) 1. F or the distributor: 2 tk per pcs. 2. For the retailers: 4 tk per pcs. Profit margin for 2000 ml(pet) 1. F or the distributor: 4 tk per pcs. 2. For the retailers: 11 tk per pcs. Profit of virgin Profit margin for 250 ml(can) 1 For the distributor: 1 tk per pcs. 2. F or the retailers: 2.50 tk per pcs. Profit margin for 250 ml(diet can) 1. For the distributor: 1.74 tk per pcs 2. For the retailers: 1.50/tk per pcs Profit margin for 500 ml 1. F or the distributor: 1 tk per pcs 2. For the retailers: 1.50 tk per pcs Profit margin for 1000 ml


1. F or the distributor: 1.75 tk per pcs 2. For the retailers: 2 tk per pcs Profit margin for 1500 ml 1. F or the distributor: 1.50 tk per pcs 2. For the retailers: 2.20 tk per pcs Profit of National Beverage Profit margin for 250 ml(pet) 1 For the distributor: 1.50 tk per pcs. 2. F or the retailers: 2 tk per pcs. Profit margin for 500 ml(pet) 1. For the distributor: 2 tk per pcs. 2. For the retailers: 5.50 tk per pcs. Profit margin for 1000 ml(pet) 1. F or the distributor: 2.50 tk per pcs. 2. For the retailers: 9 tk per pcs. Profit margin for 1500 ml(pet) 1. F or the distributor: 4.50 tk per pcs. 2. For the retailers: 10 tk per pcs. Profit OF Pran Pran group has own company’s distributor and no distributor profit. Profit margin for 250 ml(glass bottle) 1. F or the retailers: 2 tk per pcs. Profit margin for 330 ml(pet) 1. For the retailers:3. 50 tk per pcs. Profit margin for 500 ml (pet) 1. For the retailers: 4 tk per pcs. Profit margin for 1000 ml (pet) 1. For the retailers: 5.50 tk per pcs. Profit margin for 2000 ml (pet) 1. For the retailers: 7 tk per pcs. Profit of Al-amin beverage Profit margin for 330 ml(can) 1 For the distributor: 1.25 tk per pcs. 2. F or the retailers: 4 tk per pcs. Profit margin for 330 ml(pet) 1. For the distributor: 2 tk per pcs. 2. For the retailers: 3 tk per pcs. Profit margin for 500 ml(pet) 1. F or the distributor: 2 tk per pcs. 2. For the retailers: 5 tk per pcs. Profit margin for 1000 ml(pet) 1. F or the distributor: 3.75tk per pcs. 2. For the retailers: 5 tk per pcs. Profit margin for 1500 ml(pet) 1. F or the distributor: 4.25 tk. per pcs. 2. For the retailers: 5 tk per pcs. Profit margin for 2000 ml(pet)


1. F or the distributor: 4.50 tk per pcs. 2. For the retailers: 5 tk per pcs. Profit of zamzam Profit margin for 250 ml 1 For the distributor: 50 tk per pcs. 2. F or the retailers: 2.50 tk per pcs. Packaging and leveling Packaging is the enclosing of a physical object, typically a product that will be offered for sale. Labeling refers to any written or graphic communications on the packaging or on a separate label. The purpose of packaging and labels Packaging and labeling have five objectives: Physical protection of the object – The objects enclosed in the package can be protected from damage caused by physical force, rain, heat, sunlight, cold, pressure, airborne contamination, and automated handling devices. Agglomeration – Small objects are typically grouped together in one one package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils. Alternatively, bulk commodities (such as salt) can de divided into packages that are a more suitable size for individual households. Information transmission Information on how to use, transport, or dispose of the product is often contained on the package or label. An example is pharmacetrical products. Some types of information are required by governments. Marketing – The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Reducing theft – Some packages are made larger than they need to be so as to make theft more difficult. An example is software packages that typically contain only a single disc even though they are large enough to contain dozens of discs. Packaging materials Commonly used packaging materials include: Corrugated cardboard Jute Paper Plastics, including expanded polystyrene Wood


Bubble wrap The type of material chosen depends on: the sensitivity of the product; the types of damage that are likely; the value of the product; the size of the product; the weight of the product; the length of time the product will be packaged; and the method of shipping being used. Packaging involves designing and producing the container or wrapper for a product. We can classify packaging in to two stages as followsPrimary packaging: Plastic container, aluminum container for can. Secondary packaging: We package certain product through out the 1 (one) dozen any quantity of product with a case. There are three types of packaging in Beverage industries in Bangladesh as : Glass Bottle. Plastic (pet) Bottle. Aluminium can. Labeling Labels may range from simplest tags to products to complex graphics that are part of the package. Printed information always appears with the package. Labeling includes brand name, ingredients, quantity size, and manufacturing & expiring date. Packaging of coca-cola Packaging: Virgin has designed its product through various types of packaging: 250ml x 24 glass bottle per plastic case. 250ml x 24 Aluminium can per plastic crate. 500 ml x 24 pet bottle per plastic crate. 1000 ml x 12 pet bottle per plastic crate. 1000 ml x 12 glass bottle per plastic case. 1500 ml x 12 pet bottle per plastic crate. 2000 ml x 6 pet bottle per plastic crate. 2250 ml x 6 pet bottle per plastic crate. Labeling: Printed information always appears with the package. Labeling includes brand name, ingredients, quantity size, and manufacturing & expiring date. Packaging & Leveling of Pepsi Packaging: Virgin has designed its product through various types of packaging:


250ml x 24 glass bottle per plastic case. 500 ml x 24 pet bottle per plastic crate. 1000 ml x 12 pet bottle per plastic crate. 2000 ml x 6 pet bottle per plastic crate. Labeling: Printed information always appears with the package. Labeling includes brand name, ingredients, quantity size, and manufacturing & expiring date. Packaging & Leveling of RC Packaging: Virgin has designed its product through various types of packaging: 330 ml x 24 pet bottle per plastic crate. 250ml x 24 Aluminium can per plastic crate. 500 ml x 24 pet bottle per plastic crate. 1000 ml x 12 pet bottle per plastic crate. 1250 ml x 12 pet bottle per plastic crate. 2000 ml x 6 pet bottle per plastic crate. Labeling: Printed information always appears with the package. Labeling includes brand name, ingredients, quantity size, and manufacturing & expiring date. Packaging & Leveling of Akij Beverage Packaging: Virgin has designed its product through various types of packaging: 150ml x 24 Aluminium can per plastic crate. 250ml x 24 Aluminium can per plastic crate. 250ml x 24 pet bottle per plastic crate. 1000 ml x 12 pet bottle per plastic crate. 2000 ml x 6 pet bottle per plastic crate. Labeling: Printed information always appears with the package. Labeling includes brand name, ingredients, quantity size, and manufacturing & expiring date. Packaging & Leveling of Globe soft drinks Packaging: Virgin has designed its product through various types of packaging: 250 ml.can & 150 ml. Glass Bottle. 250 ml x 24 Aluminium can per plastic crate. 330 ml x 24 pet bottle per plastic crate. 500 ml x 24 pet bottle per plastic crate. 1000 ml x 12 pet bottle per plastic crate. 2000 ml x 6 pet bottle per plastic crate. Labeling: Printed information always appears with the package. Labeling includes brand name, ingredients, quantity size, and manufacturing & expiring date.


Packaging of virgin Packaging: Virgin has designed its product through various types of packaging: 250ml x 24 pet bottle per plastic crate. 250ml x 24 Aluminium can per plastic crate. 500 ml x 24 pet bottle per plastic crate. 1000 ml x 12 pet bottle per plastic crate. 2000 ml x 6 pet bottle per plastic crate. Labeling: Printed information always appears with the package. Labeling includes brand name, ingredients, quantity size, and manufacturing & expiring date. Packaging & Leveling of Suncrest Packaging: Virgin has designed its product through various types of packaging: 250ml x 24 pet bottle per plastic crate. 500 ml x 24 pet bottle per plastic crate. 1000 ml x 12 pet bottle per plastic crate. 1500 ml x 12 pet bottle per plastic crate. Labeling: Printed information always appears with the package. Labeling includes brand name, ingredients, quantity size, and manufacturing & expiring date. Packaging & Leveling of Pran Cola Packaging: Virgin has designed its product through various types of packaging: 250ml x 24 glass bottle per plastic case. 250 ml x 24 pet bottle per plastic crate. 330 ml x 24 pet bottle per plastic crate. 500 ml x 24 pet bottle per plastic crate. 1000 ml x 12 pet bottle per plastic crate. 2000 ml x 6 pet bottle per plastic crate. Labeling: Printed information always appears with the package. Labeling includes brand name, ingredients, quantity size, and manufacturing & expiring date. Packaging & Leveling of Al-Amin Packaging: Virgin has designed its product through various types of packaging: 330 ml x 24 Aluminium can per plastic crate. 330 ml x 24 pet bottle per plastic crate. 500 ml x 24 pet bottle per plastic crate. 1000 ml x 12 pet bottle per plastic crate. 2000 ml x 6 pet bottle per plastic crate.

Labeling: Printed information always appears with the package. Labeling includes brand name, ingredients, quantity size, and manufacturing & expiring date.


Packaging & Leveling of ZamZam Cola Packaging: Virgin has designed its product through various types of packaging: 250ml x 24 pet bottle per plastic crate. Labeling: Printed information always appears with the package. Labeling includes brand name, ingredients, quantity size, and manufacturing & expiring date. Promotion Every company must divide the total promotion budget among the major promotion tools like advertising, Personal Selling, Sale Promotion, Public relation. Among all the promotional tools advertising is the most expensive. Advertising is also divided into print, television and broadcasting. It is a large geographic coverage. The advertising is in television where the market size is large, sales are high, Profit is high but cost is low, that means economic scale is concern.We know that for the consumer good advertisement is 95% or very high. So it deals with a large number of expenses. Without promotion, a company can't lunch a product properly in the market. Mainly the beverage companies are dependent on advertisement. Hence every company treats the advertisement budget and policy as their business secret. Promotional system of Coca-Cola Advertising Throughout the history of the world's most popular soft drink, advertising for Coca-Cola has followed the trends of time. The overall theme has been refreshment-one of the pleasant things in life, distinctive and available nearly everywhere, researching out to consumers with this message, the early advertising message read. “Drink Coca-Cola, Delicious Refreshing." Countless novelty items depicting the trademark were given away at sales locations, creating an important channel for constant product promotions. The first outdoor painted wall on a drug store in Cartersville, Georgia, in 1894 becomes the forerunner of thousands to follow until nationwide use of billboards began in 1925. As bottles began selling Coke in bottles, availability skyrocketed. Advertising followed the lead to make Coca-Cola best known soft drink in the world!Now famous print-ads, featuring fine illustration by top artists including Norman Rockwell, projects memorable images of the drink's quality in leading magazines. Coca Cola also becomes one of the radio' first commercial sponsors during the 1930's. Today, advertising for Coca-Cola and the Company's other products are carefully aimed towards individual tastes. While understanding the universal appeal of refreshment? And very appropriately, the Company has globally launched its new advertising theme “Always Coca-Cola�Advertising the world's best-known consumer product demands the talents of professionals are many different areas. The company enlists experts in the creative, media planning and buying, research and sales promotion arenas from excellent advertising agencies to work in cooperation with its internal marketing team. Not only this also sponsoring sports and cultural events has become a regular habit of CocaCola.Advertising mainly handled by the marketing department of the company. They have a specific amount of budget for the advertisement per annum. Unitrend Ltd is Coca-Cola Far East Ltd.


Companies’ media partner for Bangladesh.They sponsor many concerts and cultural program as a part of their advertising strategy. They also sponsor on bill board, TV ads and many other social and cultural activities like- Star Cineplex at Bashundhara City shopping mall, Panthapath, Dhaka and so on. They have their own slogans for advertisement like ---“Thandar Naam Coca-Cola”, “Hridoye Maton Dola”.

Media Advertising The company gives competitive ads in TV channels, and uses means like News paper and magazine to promote their new innovations, changes, etc. Some of the interesting and significant ones are illustrated throughout the report. Direct Response Advertising The company has Ib sites where people can visit, browse what’s in there, make complaints, make queries, provides flash ads, their brand detail, details about their companies’ activities, etc. They also have a helpline telephone system where people can make queries and the number is provided in each of their products. Place Advertising They do have billboards, posters in market places, roads, in cinema theaters, airports, i.e., in all public places. The advertisement on the next page is one of the upcoming place advertisements Coca-Cola Company is planning for the Japanese market in 2004:


Picture: 2004 Place Advertisement for Japanese Market Trade Promotion The company provides trade deals and buying allowances, point-of-purchase display allowances, and dealer incentives to motivate their dealers and distributors to carry their brands only and not the competitors.

Picture: Decorating Shops with Coca-Cola Theme Trade promotion: Coca-Cola has the following types of program a) They give two bottles free per crate for regular size bottles. b) They give one bottle free per crate for family size bottles. Consumer Promotions Coca-cola distributed free Harry-Porter books, Yo Yo, other below the cap gifts, free products with quantity purchase and etc. Recently, Coca-Cola has emphasized more on this option as it has the advantage of direct visibility on consumers, which is the main market strategy for Coca-Cola. Sales Promotion:


Coca-Cola Far East Ltd has their own unique sales promotion regarding their own product. Such as Under The Crown (UTC). Different prizes are given through this offer like Car, gold, motorcycle, discount, cash refund and so on. Sales Promotion : Some of the programs of Coca-Cola are Yoyo Programs. Free cards. Liner programs. In the past, Coca-Cola has been seen as one of the most prominent spokesperson for the USA soldiers in World War II. Also, Coca-Cola realized the benefits of publicity very early. This 1950 Time magazine cover describes coke as the world’s friend. Receiver’s response processes: The Coca-Cola Company influence the customer through the attractive advertisement, these advertisement they complete through the Television, Radio, Posters, neon sigh advertisement, News paper advertisement. In the advertisement they try to give message to the consumer about their product, such as its quality, and benefits. The consumer influence Coca-Cola Company’s advertisement and buy the Coca-Cola. The company collects information about Customer’s response process by analyzing market survey and reports from the dealer or retailers. Promotional activities of PepsiCo Limited:

a uses, the

Picture: A women who is a model of CocaCola.

Time to time the company Pepsi has a modest budget for promotional activities and the promotional strategy is designed to create consumer pull in the market. Pepsi does not hesitate to spend its budget to create consumer pull. Pepsi believes in the target achievement monthly, calculating the annual target rather than the budget volume. Off course when the target is set for the next year an estimated budget usually is chalked out. gives the trader support in the form of promotions. Sponsorship of any event is highly encouraged by focusing on Pepsi image. Thus sponsorships like the world cup cricket, world cup football, tri-nation cricket are encouraged. If sponsorship rights are not owned by Pepsi, then different kinds of competitions or games are arranged locally related to the same occasion. For example, world cup’99 cricket was not


sponsored by Pepsi, but Pepsi made its presence felt to the end consumers by offering free cards of players in each bottle/glass of drinks. This redemption program was found during the internship which is still running. It was announced through new paper. TV ad, poster and banner that there are lots of exciting gifts against specified number of cards which are to be submitted to different redemption centers with some fixed money, and gifts are to be collected, Such as: 20 Cards + Tk 70 34 Cards + Tk 150 10 Cards + Tk 10 9 Cards + Tk 5 8 Cards + Tk 5

= One world cup tea shirt = One wrist Watch = One world cup poster = One bottom cover set = One hit man game

This promotion was a countrywide promotion that was very successful especially in Dhaka. During this promotion poster, sticker, bunting, danglers (POP/POS materials) were created and distributed to the retailers to decorate their outlets. Colorful banners were hung up in every strategic place all over Dhaka. News insertions were given in all the major dailies during the world cup and also after that during the redemption program. Another promotion program has been organized in conjunction with Wonderland Park. The target was to increase sales volume by offering “Grab a Pepsi with food and get a free entry ticket to Wonderland”. For this program, attractive posters and banner were created. This program was a success for Pepsi. They are also offering a free “CURL” chips with every 1000 ml of drinks. The latest sales promotion of Pepsi is that when you buy a Pepsi of any size they are giving you a card an when you scratch the card there are some gifts. (Car, Motor Cycle, Radio, Money etc.). This promotional activities has start after I had done my survey. Pepsi believes that it must do more than make good products and inform consumers about product benefits and carefully position products in consumers’ mind. To do this Pepsi like any other company uses the promotion tools of: Advertising Sales promotion Public relation Advertising: For over 100 years, Pepsi-Cola has produced some of the finest soft drink ads available anywhere in the world. From today's "Joy of Pepsi," as sung by Britney Spears, to yesterday's "Nickel, Nickel" (1939). They believe that their ads are as memorable as the products they produce. In our country Pepsi-Cola is continuing to produce many local ads for promoting its products Pepsi uses different media for advertising like- on air advertisement, television, newspaper, magazines, radio & neon-sign etc. Everyday Channel-I telecast a program named “Pepsi Jukebox”. Sales promotion:


Every year Pepsi introduces short-term incentives to encourage the sales of its product. These are: Trade promotion: Pepsi offers its distributors two bottles of beverage free with each case of Pepsi irrespective of the size of the bottle. Pepsi offers the following types of program. They give 2-3 bottles free per crate for regular size bottles. They give one bottle free per crate for family size bottles. They give credit facility of 100 Tk. Per crates. This facility is only for the bottles. Sales promotion: Pepsi provides bonuses, contests, sales rallies etc. to motivate the sales force.Pepsi has offered (a) Free star cards program, (b) Liner Program (c) Quiz Program Public relation: Pepsi has great contribution in case of public relation. Some of these are stated as below: Public affairs Pepsi is always involved in building and maintaining national or local community relations. Every year it organizes several concert, sports and cultural activities in our country. Press conference: When Pepsi wants to introduce any new product or flavor then it often maintains the press relation to create and place newsworthy information in the media to attend attention. Recently Pepsi have launched their new product named ‘Pepsi-Blue’ and have arranged press conference for the purpose of discussing its various features. Product publicity: Pepsi always tries to maintain relationship to general and potential customers through publicity of its product through different types of publicity instruments. Like T-Shirts attached with Pepsi logo, posters on the wall, etc. Personal Selling For the purpose of making sales and building customer relationship Pepsi follow: Tele marketing: Pepsi co. do not sale on over telephone but now they are thinking about this. Online marketing: They do not provide this service for the customer but they have web site named WWW.PepsiCO .COM Credit sell: Pepsi co. doesn’t sell on credit. They sale their products on cash basis.


Tutorial sales force structure: Actually this co. don’t apply any sales person to sell its product. Relationship marketing: The Pepsi co. follow the relationship marketing to maintain & enhancing strong value laden relationship with its customer & other stockholders. Praline: It’s a separate wing. That engaged in communicating the officer, dealer, developer & architect Promotion OF RC RC Cola Co. also has their promotional activities. Their promotion strategy is designed to create consumer push in the market. The advertisement ratio of Partex Beverage Co. (RC Cola) Ltd is given.

Interpretation: The total yearly advertisement budget of Partex Beverage Ltd. is about 75, 00,000 Tk. (75 Laks). From this budget 35% are spent for outdoor advertisement i.e. Bill boards, posters, banners etc. The remaining expenses are 20% and 18% of the budget respectively for television and press ads. Trade Promotion RC Cola: Trade Promotion: RC Cola offers promotional programs to the distributors throughout the year. Such as, RC Cola gives 1-5 bottles free for every crate. In the beginning of the year they give free calendars to the traders. During Bid a the company gives credit facility upto 300 crates to the distributors. Sales promotion: To attract the customers RC Cola has offered Free Football World Cup'98 ’02 ’06 fixture. Free Cricket World Cup'99 ’03 ‘07 fixtureFree Class routines. Promotional activities of Akij Beverage Ltd. This promotion was a countrywide promotion that was very successful especially in Dhaka. During this promotion poster, sticker distributed to the retailers to decorate their outlets. The company organized some promotional program in Sishu mela park. The target was to increase sales volume by offering “Mazic Show by country wide famous magician. For this program, attractive posters and banner were created. They are also offering some free


programs with every 1000 ml of drinks. The other sales promotion of the company is that, when you buy a a product of any size they are giving you a card and when you scratch the card there are some gifts as: Criket bat ,Criket ball, Radio, Money etc.). Advertising: Akij Beverage Ltd. uses different media for advertising like- Television, newspaper, magazines, radio etc. During World Cup 2007 the company given various gift items by quize program. Sales promotion: Akij Beverage offered some sales promotion incentives to encourage the sales of its product. These are: Trade promotion: Akij Beverage offers the following types of program. They give 2 bottles free per crate for regular size bottles. They give one bottle free per crate for family size bottles. They give 2 bottles free per crate for Can. Sales promotion Akij Beverage provides bonuses, contests, sales rallies etc. to motivate the sales force. Akij Beverage has offered (a) Free star cards program, (c) Quiz Program Public relation: Akij Beverage always trying to maintaining local community relations. And organizes several concert, sports and cultural activities in our country. Promotional system of Globe Soft Drinks Ltd. Advertising: Globe soft drinks ltd. uses direct communications to target buyers, consumer and public. The communications to aware the consumer about company image, product quality,and price . Globe soft drinks uses belows advertising media: Television The firm realized it and started to spend TV advertising of Uro cola,Fizz up and Royal Tiger. Radio Most of the people of Bangladesh live in village. Radio is now available everywhere. So, the company emphasizes advertisement on radio. Newspaper


Newspaper is a important media that use a company can easily reach to the target customer. Almost all the daily newspapers have been used for the advertising of Uro cola,Fizz up and Royal Tiger marketing in Bangladesh. Such as The Daily Prothom Alo, The Daily Amar Desh, The Daily Nayadiganta, The Daily Star, The Daily Jugantor, The Daily Manobjomin etc. Cinema The company try to increase sales volume by arranging advertisement through cinema. Magazine In Bangladesh there are some specific target group of Uro cola,Fizz up and Royal Tiger is reading magazines. So to create attention of the product the company has spend a large number of amounts to advertising of magazine. Sales promotion Sales promotion of the company consist of diverse collection of incentive tools, mostly short term, designed to stimulate quicker and for grater purchase of particular products or services by customer, where advertising offer a reason to buy Uro cola,Fizz up and Royal Tiger. Others trade promotion and Consumer promotion such as discount, incentives, coupon gift etc is available to the company. Personal selling Personal selling creates a good relationship to the dealers, distributors, wholesales, retailers, customer to purchase product. So the company's sales people play the vital role country wide. Promotion of Global Beverage Company Ltd Promotion Mix Strategies: Marketers can choose basic two promotional marketing mix strategies these are given below: Pull Strategy

Push Strategy

Producer

Producer

Whole Sellers & Retailers

Whole Sellers & Retailers

Consumers

Consumers


Global Beverage Company Ltd. follows these two promotional mix strategies at a time. In pull strategy they influence consumers by advertising sales promotional programs. Then consumers make demand to retailers, about their choice. Again retailers make demand to Producer. In push strategy producer wants to influence retailers and wholesalers by personal selling, trade promotional programs. Retailers are willing to motivate consumers by implementing personal selling advertising and sales promotional programs. Promotion is one of the marketing tools that a company uses to achieve its marketing objectives. Each promotion tools has unique characteristics to improve their total sales. Marketing promotion can be classified several stepsAdvertising: Advertising is the way where massage could be delivered to the consumers mind. Massage can be delivered to the consumer by the sound, music, choreography, lighting, and performer appearance. Advertisement massage must be believable, meaningful and distinctive. Advertising can be used to buildup a long-term image for a product and also can trigger quick sales. Advertising media: TV channel News paper Magazine and Journal Web site Radio Bill board Neon board Light box Printed poster Advertising time & located areas Virgin advertising is shown in TV channel from evening to midnight. The customers usually watch advertise in the evening. Almost every popular newspaper, magazine and journal is use for advertising. Advertising presented in the noon and afternoon session in Radio. Virgin Website shows attractive advertising in all time. Printed poster is naturally using all over the Bangladesh. Light box advertising usually found in retailer shops, super markets, and general stores spread all over the Bangladesh. Bill boards are shown in crowded areas such as at Mirpur, Farmgate, Jatrabari, Moghbazar, Gulshan-1, Tangi etc. Neon board is seen at Malibagh, Karwanbazar, Banani. Some retailers, customers, and dealers widely focus on the quality of advertisement. If GBCL served modernized advertising they have a better chance to improve their sales. Personal selling Personal presentation by the firm sales force for the purpose of making sales and building customer relationship.Virgin uses personal selling in different stages of marketing and distribution. Company distributes their product among the dealers, resellers, retailers by maintaining excellent relationship.


Sales Promotion Sales promotion includes a wide way of tools that can attract consumer’s attraction, strong incentive of purchase, free gift, discount and several types of occasional program. Consumer Promotion Tools In consumer promotion tools GBCL provided some short- term attractive sales promotional tools. In Premium tools it followed - Eid dhamaka Tk. 5 discount for previous Eid festival and continuing still on. In Advertising Specialty they provided scratch card for various gift items such as- caps, T-shirts, bags, mugs and nice looking glasses conducted with Virgin brand name. In Contest & Sweepstakes they arranged exclusive travel ticket Dhaka to Singapore, and Dhaka to Cox’s Bazar. Trade Promotion Tools Here GBCL took steps to give special discounts, allowances, specialty advertising items, free goods, push money to the retailers and dealers. GBCL arranged conference every year among the dealers and also rewarded the first three dealers in terms of greater sales volume. GBCL can get such benefits by implementing trade promotional tools are given belowTo carry the brand name. Give a brand shelf space. Promote brands in advertising. Push to the consumers. Business Promotion Tools: GBCL rewarded its business market like as supermarket, departmental store, general store in terms of sales unit. They make advertising nameplate for business market by their own cost. In survey we have seen that virgin needs to improve their sales promotion for raising their sales. Many consumers sited that if virgin provides more gift items they will encourage for buying it. So GBCL need to improve their selling by implementing some attractive sales promotion programs. Public Relation Public relation is used to promote products, people, places, ideas, activities, organizations and even nations.Virgin arrange musical program in Ekushay TV (ETV) for maintaining good relationship with the consumers. GBCL has developed public relationship with participating trade fare, continuing press relations for short-term promotional plan certain newsworthy information in the news media. It also sponsored in audio industry. They arrange yearend conference to make strong public relationship among the people. Promotional policy of National Bewverage Advertising In the world of soft drink, Sun Crest Cola has made a history for its advertising. As bottlers began selling Sun Crest Cola in bottles, availability skyrocketed. Advertising followed the


lead to make Sun Crest Cola the best-known soft drink of the world. For the first time Sun Crest Cola reaching out to customers with message read "Drink Sun Crest Cola, Delicious, Refreshing." Most of the advertisements and its messages are globalizes and standard. But the messages are translated into local language, except few. Better presentation, music, copy appeal and aesthetic value are the advantage of using the global advertisement. Now famous print ads featuring fine illustrations by top artists projected memorable images of the drink's quality in leading magazines. The Company enlists experts in the creative, media planning and buying research and sales promotion arenas from excellent advertising agencies to work in cooperation with its international marketing team. Cable TV, local TV, newspapers, magazines, billboard, neon sign, poster, leaflet, sticker etc. all are surrounded by Sun Crest Cola' persuasive messages. Brand name is the main emphasis in the advertisement copy. Some local advertisements are made too to meet rural market purpose. The Company always has come up with new ideas like teen related contests supported by effective researches. Sun Crest Cola is always there for the teens to express themselves as well as to get this name as their prime brand. Launching a new craze in the mass youth is one of their key promotional processes. Coca-Cola arranges large promotional programs in the two prominent segments of the regular year - the first one is during religious festivals like Bid and the other one is during the summer. Personal Selling Few numbers of sales persons are employed to this organization. They are all local and mainly dedicated to the promotional effort of the Company. Sales Promotion Sun Crest Cola uses sales promotion often. To increase sales in different areas and to resist sales decline in off-seasons it spends heavily on sales promotion. Samples, coupons, gifts, stickers etc. are used very successfully. All of its sales promotion strategies are equipped with persuasive advertising. Trade promotion The producers offer it to the retailers. Offers discount per crate of Sun Crest Cola Offering bottles of Sun Crest Cola free. Offers coolers on credit, with the conditions that only Sun Crest Cola can be sold from the coolers Promotion of PRAN group Promotional Mix consists of four major modem of communication these are: Advertising, personal selling, sales promotion and publicity. PRAN Company uses all above promotional strategy to enhance its sales: Advertising Advertising is one of the most common tools that the company uses to direct persuasive communications to longer target buyers, consumer and public. It can aware to the consumer about its quality price and consumption pattern. Advertising can he done in various ways such as:


a) Television: TV is the biggest media in Bangladesh to reach to consumer. The firm realized it and started to spend TV advertising of pran cola. b) Radio: Most of the people of Bangladesh live in village. Radio is now available everywhere. Radio can build up good appeals. So, the company emphasizes advertisement on radio. c) Newspaper: Newspaper is a important media that use a company can easily reach to the target customer. Almost all the daily newspapers have been used for the advertising of pran cola marketing in Bangladesh. Such as The Daily Prothom Alo, The Daily Ittefaq, The Daily Amar Desh, The Daily Shamokal, The Daily Nayadiganta, The Daily Observer, The Daily Star, The Daily Jugantor, The Daily Janakantha, The Daily Manobjomin etc. d) Cinema: Some people especially middle lower class enjoy cinema. So to increase sales volume the company has to arrange advertisement through cinema. e) Magazine: Various kinds of Magazine are publishing in Bangladesh and a specific target group of pran cola is reading these magazines. So to create attention of the product the company has spend a large number of amounts to advertising of magazine. Personal selling Personal selling is one of the most important to the firm. Personal selling creates a good relationship to the dealers, distributors, wholesales, retailers, with customer or others of PRAN. So the company's sales people also play a vital role there. Sales promotion: Sales promotion is another essential ingredient in marketing campaigns. Such promotion consist of diverse collection of incentive tools, mostly short term, designed to stimulate quicker and for grater purchase of particular products or services by customer, where advertising offer a reason to buy PRAN cola others trade promotion and Consumer promotion such as discount, incentives, coupon gift etc. Publicity: PRAN group in Bangladesh use some publicity, the company frequently provide the material for publicity in the form of news releases, press conference and photograph.


5) Out Door Advertising are used to aware the people.

Neon signs, bell signs, billboards, walling art etc

Promotio of Al Amin beverage industries Ltd Promotion means activities that communicate the merits of the product and persuade target customers to buy it.Promotion activities of Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) helps to describe the merits of Double Cola.The promotion activities of Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) helps to persuade target customers to buy it. Advertising After determining its advertising objectives, Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) next sets its advertising budget. To set advertising budget the company had considered the following factors: Stage in the product life cycle

Market share Product differentiation


Since soft drinks are the products having the category of undifferentiated brands, it needs heavy advertising to set them apart. They are creating their advertises in Bangladesh and abroad In Bangladesh they are creating there T.V advertising from Morza groups the largest T.V advertising firm in Bangladesh. Some T.V and radio advertises are prepared from Thailand. They are adverting in some newspapers and magazines. They operates some outdoor advertises also. The above activities give a total picture that Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) Advertising budget Stage Beginning of the product Current time Total

Expenditure 70,00,000.00 (each) 50,00,000.00 (each) 1,10,00,000.00

Creating the advertising message Al-amin group determines to create advertising message as it’s advertising strategy. Message Mone lage dola

This message theme emphasize on great refreshment.

Selecting advertising media S.l. no 1.

Medium

Activity

Reasons for selection

Newspaper

New Age Daily Star Bhorer Kagoj Doinik Ittafak

2

Television

N Tv Atn Bangla Channal I

3

Radio

Bangladesh Betar

-Flexibility -Timeliness -good local market coverage -Broad acceptability -High believability -Good Mass market coverage -Low cost per exposure -Combines sight -Sound and motion appealing to the senses -Good local acceptance -High geographic and demographic selectivity -Low cost


4

Magazines

The Business Bangladesh Anandalok

-High geographic and demographic selectivity -Credibility and prestige -High quality reproduction.

5

Outdoor

Free product delivery to: DMC, BUIT, B.F Shahin College, Commilla Sena Nibas(Golf sponser)

-Little audience selectivity -Creative Limitations.

Al Amin beverage industries Ltd. evaluates both the communication affects and the sales effect of the advertising regularly Measuring the communication affect of an advertising- copy testing tells whether the ad is communicating well Al Amin beverage industries Ltd. measure the sales affect of an advertising by comparing past sales with past advertising expenditure. Al Amin beverage industries Ltd. vary the amount it spend on advertising in different market areas and measure the differences in the resulting sales level. Sales promotion: Al Amin beverage industries Ltd provides some short term incentives to in courage the purchase or sale of a product. They follow some tools to encourage people. These are as follows A- Sampling B- Coupon. Distribution Distribution is one of the most important elements of marketing mix. The consumers get the final products through the distribution of the companies. A proper and effective distribution can make products readily available to the consumers. It makes the existing demand for the product satisfied by adequate supply. Moreover when the product is readily available to the customers, the customers go more for the product, because they do not have to search for it. This ultimately increases the demand and the total sale of the product. Hence, an effective distribution system can be a competitive advantage over the competitors. In this world most producers use intermediaries to bring their products to market. They try to forge a distribution channel a set of interdependent organization involved in the process of marketing a product or service available for use or consumption by the consumer or business users. So, distribution is one of the most important elements of marketing mix. By using the plural, results in a greater efficiency in marketing goods available to target markets. From the economic system's point of view the role of marketing intermediaries is to transform the assortments of products made by producers into the assortment wanted by consumers. Also an effective distribution system can be a competitive advantage over the competitors. All the beverage companies have their own distribution system and each and every company distribution system are described below-


Distribution Channel Of Coca-Cola Channel of Distribution: Coca-Cola has their distribution channel. This company has a generally channel behavior of vertical marketing system that all the manufacture. Wholesale; retailer and consumer work together, like-

Company

Distributor

Retailers

Consu mer

7.1 Figure-: Coca-Cola distribution Channel But by the company they also use three types of channel. Those are Zero level Channel One level Channel Two level Channel The three level of channel are described in the belowZero Level Channels Implementing Zero level channels in selling Coca-Cola soft drink to the consumers is directly supported with valuable information from the consumers. This channel is used for Coca-Coal Post Mix drink Factory

Sales Department

Customer

7.2 Figure- Zero Level Channel of Coca-Cola. One Level Channel

Trolley Operation


One level channel is organized and systematic channel to meet the Coca-Cola demand for the existing market. In this channel there is one intermediary to reach the final customers. CocaCola Tabani Beverage Company uses this channel for its Post Mix drink.

Factory Sales Retailers

Trolley Operation Customer 7.3 Figure-: One level Channel of Coca- Cola. Competitive benefits of the one level channel are as followsTwo Level Channel Distribution system consists of 2 intermediaries and company complex. In this channel the Coca-Cola products are delivered from the sales force to sales distributor to retailers to customers. Implementing a number of channel levels and intermediaries in distribution-

Factory Sales Trolley Operation Company Distributor Retailers Customer Poses loosing control on the intermediaries and also affects the profit margin of the company initially but it will in fact cover the unexplored market and will increase the existing sales. It is proposed to implement two level channels in distribution considering the existing limited


support facilities as a lack of trained salesman, inadequate logistic support. Tabani Beverage uses this Channel for its BOTTLE drink and Post mix. By my survey the Coca-Cola Company delivered to the outlets 7 days a week are minimum one trip per day. No of Distributors, Sales Person and Transport. The company has more than to sales people working throughout the capital city. They also have 2 market supervisors who are market representatives. This company has 39 distributors currently and has 26 vehicles, 40-50 pickups in Dhaka City. Delivery System The delivery system of Coke is given below. Company to Distributor Coke distributes their products to the distributors by using their own trucks. Company bears the cost up to this part of the distribution process.

Distribution Network In Bangladesh, Tabani Beverage Company and Abdul Monem Ltd (Beverage Section) are the main two-bottler companies. They bottle the soft drinks and distribute it through the whole country. Tabani Beverage Company only bottles the Return & Glass bottle (RGB) for distributing in Dhaka City and the Rajshahi zone. Abdul Monem Ltd (Beverage Section) covers the Dhaka City and the rest of the country by Return & Glass Bottle (RGB) and PET Bottle.

Sales Force


The sales forces under the Abdul Monem Ltd (Beverage Section) and Tabani Beverage Company contribute in the sales of the country. The activities of sales forces are the main thing of a company to increase their sales volume. The sales force under Abdul Monem Ltd (Beverage Section) and Tabani Beverage Company play an important role in selling and distributing the Coca-Cola product.

Distributor to Consumers Distributors use their vehicles to distribute the products. The distributors, in this stage have to bear all the cost. Deposit System The distributors have to deposit 1, 00,000 Tk. to become a distributor and have their own 3 to 4 vehicles, which have the red the logo on it. The distributors have to buy certain amount of bottles or crates and often they have to buy only liquid for the company.Deposits to the retailer are that the retailers have to pay for the bottles. Credit Facility The Coca-Cola Company usually does not give any credit facilities but some times these facilities depend upon the distributors. Distribution channels of pepsi company Pepsi Co. is a world leader in convenient foods and beverages, with revenues of about $25 billion. Today consumers spend about $33 billion on Pepsi-Cola beverages. This type of huge sell is possible only through efficient and effective logistic support. PepsiCo Limited is a franchise organization; the franchiser is Transcom beverage BD. LTD. who links the several stages of production and distribution process in BD. Under Transcom


Beverage Pepsi Co. BD. Ltd. works as an independent organization. Transcom beverage LTD. follows manufacturer- sponsored wholesaler franchise system. PepsiCo Limited firstly divides the whole Bangladesh into four zones those are Dhaka, Chittagong, Rajshahi and Khulna. I n each of these zones two or three zonal distributors are selected. They can also be mentioned as wholesalers. PepsiCo Limited supplies their soft drinks these distributors by their own transportation service. It can be mentioned here that for transportation purpose they have twenty nine trucks. Retailers of each separate zone contact with the zonal distributor and ask them to supply according to their demand. To be a distributor of PepsiCo Limited an individual or organization must have some criteria that given bellow The person or company must have experience or to relate with dealership business. He or it must have to be financially solvent with TK.1,00,0000 (10 Lakh). Must have auto vehicles and employees. Regular goods order must have to be maintained. A security of TK.1,000,00 Have to keep to Pepsi for six (6) months. Zonal distributors sometime appoint more distributors on a locality basis such as in Dhaka and Chittagong. These distributors supply the product according to the retailers demand. Mostly this transportation is done by the distributors’ own vehicles such as van, pickup etc. they visit each retailers shop usually twice a week. But in case of summer season suppliers can provide the product even seven days a week based on sales of the retailers. Pepsi applies some motivation system to motivate their distributors. These includes if the distributors makes a good regular goods order and sale exceeds above target then Pepsi gives financial rewards to them and also some cases of goods are given free to them. But if there is any mismanagement there is also some punishment for the distributors such as if distributors fail to make minimum target of order or a least target of sale then Pepsi cancels their distributorship. No of Distributors, Sales Person and Transport The Pepsi Company has 25 sales percent of the official level and over l00 sales people is the fieldwork. They have 25 distributors and the company has 300 vehicles in total, 65 vehicles are in the Dhaka City. Delivery System The delivery system of Pepsi is given below Company to distributor Pepsi distributes their products to the distributors by using their own trucks and at their own cost.


Distributor to Consumers Distributors use their vehicles to distribute the products to the outlets. The distributors bear all the cost at this level. Deposit System The deposit system is same as the Coca-Cola company that the distributor has to pay 1,00,000 Tk to become a distributor and has 3 to 4 vehicles that must have blue color and have the Pepsi logo on it.Deposit of bottles of Pepsi co is distributor size bottles and 20 tk for 1000 ml bottles for the crates the distributor has to pay 35 Tk per crate as 150 Tk per 1 It bottle. Credit Facility Pepsi Company gives the credit facility for the bottles not for the liquid. This facility is depending on the distributors. Number of channels Pepsi Co. BD. LTD. follows indirect marketing channel. That means a marketing channel that has two or more intermediaries as wholesaler and retailers. Firstly the distributor collects the product from the franchise org. and then supplies it to the retailers. Company

Distributor

Retailar

Consumer

Channel behavior and organization Pepsi Co. BD. LTD. binds by the channel behavior of Conventional vertical marketing system. Transcom beverage ltd. though the franchiser but under it Pepsi works as independently as conventional vertical marketing system

Manufacture Distributors

Retailer

Consumer

Logistics management


Pepsi has a strong logistics management or marketing logistics that maintain the functions are order processing, it has a warehouse which is a distribution center and Pepsi stock their inventory in that center which is situated in Tejgaon Dhaka. It has its own transportation service as by trucks. Pepsi has 29 trucks in their own for transportation service. Retailers: On behalf of Pepsi the distributor of Pepsi in each zone supplies to the retailers. The retailers of Pepsi Co. are the normal shopkeepers as departmental store, fast food shop etc.Pepsi motivate their retailers by providing them refrigerator, sign board, neon sign and repair of the refrigerators. There are also some punishment for retailers if for their fault Pepsi loose target customers, Pepsi resigned them as their retailer. All these are done by the local distributors on behalf of Pepsi. Distribution system OF partex Beverage Channel of Distribution RC cola have their own distribution channel. The channel behavior is vertical marketing system

Company

Distributor

Retailers

Consumer

Figure :7.3 RC Cola Distribution Channel This is the vertical marketing channel because they work together are not individuals or profit maximizing. The channel is indirect but simple. They distribute RC Cola products twice a week, which is the frequency of distribution. Number of Distributors Sales and Media RC Cola Company has 40 distributors on the whole over the country and only 13 in Dhaka city. They have 60 sales persons. Those who are related with selling system, among four of them are top executive, who are directly related with the sales. They have also own trucks, pickup and vans. Delivery System a) Company to distributor: -the delivery system of the company is very systematic. The goods are delivered from the company's warehouse to distributor's warehouse by using company vehicles (company's own cost) b) Distributors to retailers: -The distributors deliver the products to the retailers by using their vehicles. At this stage, the distributors have to bear the cost. Deposit System


To deposit to the company every distribution has to deposit 1, 00,000 Tk. at first time to become a distributor in the company. The deposit for a bottle: a distributor has a deposit 20 Tk for 1 and 5 Tk for 300 ml bottles. To deposit for a crates a distribution has to deposit 30 tk per crates for 300 ml bottles. 50 tk per crate for 6 bottles crate and 100 tk for 1 let bottles. Credit Facility RC cola credit facilities are limited. The credit facility is dependent on their distributors. Distribution system Akij Beverage Ltd. Akij Beverage Ltd. have their own distribution channel. The channel behavior is vertical marketing system

Company

Distributor

Retailers

Consumer

Figure : 7.4 Distribution Channel. The company distribute their products to distribution point three times in a week, which is the frequency of distribution. Number of Distributors Sales and Media Company has 142 distributors on the whole over the country and only 15 in Dhaka city. They have 280 sales persons. Those who are related with selling system, among four of them are top executive, who are directly related with the sales. They have also own trucks, pickup and vans. Delivery System The goods are delivered from the company's warehouse to distributor's warehouse and retailers by using company vehicles (company's own cost) Deposit System Therefore company’s own distributor so need not any deposite. Credit Facility All distributors are company’s own so Company need not have credit facilities. Distribution Process of Global Beverage (virgin) Global Beverage Com. Ltd. organizes their channel of distribution by their official personnel. Global Beverage Com. Ltd. distributes their product by Indirect Channel of Distribution. They don’t have any direct sales force for selling their product. Global Beverage Com. Ltd. has total 91 distributors for distribute their product all the countryside. They don’t take any security money from their distributors and never serve product to their distributor on


the basis of credit policy. Distributors play a very vital role under the Global Beverage’s channel of distribution because only they serve the product to the different distributor who is out the Dhaka region. All the products are store to their factory warehouse. Global Beverage has own 3-covered van for serving product for their Dhaka’s distributor. They rent truck from different transportation company for serving their product to all the countryside distributors. Distribution Process Factory

Factory Warehouse

Distributor

Wholesaler

Retailer Outlet

Consumer

Distributors There are 105 distributors of GBCL spread over their business in Bangladesh. The distribution areas are stated belowDhaka Division 48 Chittagong division 15 Sylhet division 10 Khulna division 16 Rajshahi division 16 Delivery system Virgin Company’s structure of delivery system is followingFactory Warehouse Distributor Retailers Consumers


Company to distributor Company’s own cost they distribute their product to the distributor. Distributor to retailers Distributor’s own cost they deliver the product to the retailer using their vehicles. Distribution Process of Globe soft Drinks Ltd. Globe soft drinks Ltd. organizes their distribution by their company personnel. Globe soft drinks Ltd. distributes their product by Indirect Distribution Channel . They don’t have any direct sales force for selling their product. Globe soft drinks Ltd. has total 125 distributors for distribute their product all the countryside. They don’t take any security money from their distributors and never serve product to their distributor on the basis of credit policy. Distribution Process Factory

Distributor

Retailer Outlet

Wholesaler

Consumer

Distributors There are 125 distributors over their business in Bangladesh. The distribution areas are : Dhaka Division 54 Chittagong division 22 Sylhet division 14 Khulna division 19 Rajshahi division 16 Delivery system Globe soft drinks Ltd. structure of delivery system is following-


Factory Warehouse Distributor Retailers Consumers Company to distributor Company’s own cost they distribute their product to the distributor. Distributor to retailers Distributor’s own cost they deliver the product to the retailer using their vehicles. Deposit System To deposit to the company every distribution has to deposit 1, 20,000 Tk. at first time. To deposit for a crates a distribution has to deposit 50 tk per crates for 500 ml bottles. 80 tk per crate for 6 bottles crate and 150 tk for 1 litre bottles. Credit facilities Credit facilities depends on distributor National Beverage Distribution National Beverage Ind ltd , like the world wide Sun Crest Cola, focuses on gaining minimum market share in the beverage market in Bangladesh. They already have a share of 10% (3.5m cases out of 30m cases per year) in the Bangladesh beverage market. Now. National Beverage Ind Ltd in order to distribute their products more intensely has made exclusive contracts with different restaurants and party centers to sell their products only. Country wide total distributor of National Beverage 180 as : Chittagong 80 Comilla 25 Barisal 25 Khulna 15 Sylhet 20 Bogra 15 Logistics The Company has strong logistic fleet and manpower to ensure the distribution of the product to each corner of the market place. Even the unit has its own Cargo Vessels to service the Southern part of the country where waterways is holding a major part of the land. Distribution policy of PRAN group


Channel characteristics of PRAN group of Bangladesh generally maintain a four-tier distribution channel. The PRAN Company does not more retail sale directly from the production center, PRAN Beverage pack move form factory to dealer's agents, agents to wholesalers, wholesalers to retailers and finally retailers to consumers. The industrial buyers mainly sell juice pack to the wholesalers. They also sell juice pack to retailers besides the wholesalers. 'The wholesalers mainly sell juice product to the customers besides the retailers. They also sell juice pack to the customers beside the retailers. The customer mainly collects juice pack from retailers.Wholesalers of the company are trained and contractual. The company divides sales territories among the wholesales. It provides commission and other financial facilities to the wholesalers to motivate the. The company does exclusive distribution. It has power of controlling wholesalers. Distribution Structure

Manufacturer Agent / Dealer / Distributor Wholesalers Retailer

Consumer

Consumer

Distribution Network

SALES REPRESENTATIVES

700

DISTRIBUTORS

400

ZONAL MANAGERS

80

REGIONAL MANAGERS 17

Countrywide Distribution Network Company appointed Sales For all over the Country Sales Network 70 Executives


486 Sales Representatives ( Selling to retailers all over Bangladesh through Distributors) Country Divided by Sales Zone Distribution Network At this moment total Distributors are 345 Distribution Channel Of Aal-Amin Beverage Marketing channel is a set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. Al Amin beverage industries Ltd. are operating their beverage business by the following marketing channel: ManufacturerDistributorWholesalerRetailerConsumer Location Super Shops General Stores Departmental Stores Shopping Males Super markets Product Life Cycles The product life cycle is an important concept in marketing. After launching the new products, management wants the product to enjoy a long and happy life. So each product has a life cycle. When product sales and profits are included in the life cycle the life cycles have five stages: development stage, introduction stage, growth stage, and maturity stage and decline stage. The old beverage companies and the new beverage companies are in different stages in the life cycle. According to the source of the beverage companies the following stage could be determined for their products. Coca-Cola Coca-Cola is one of the oldest companies in the beverage market. According to their present situation they are in the maturity stage. In this stage their profit level is not satisfactory .To keep their position in this stage they have to spend a lot of money for the advertisement of the product. Sprite


Sprite is one of the oldest Product in the beverage market. According to their present situation they are in the maturity stage. To keep their position in this stage they sould increasing their promotional policy and activities. Fanta Fanta is also an old Product in Bangladesh . But It is not as popular as coke. Fanta is now in maturity stage. Sunfill Sunfill is now in Declining stage. Pepsi Cola Pepsi Co. is also an old company in our country but they are not as popular as coke. They were in the growth stage but now they are in between growth to maturity stage. In this stage the profit is increasing but they have to prepared themselves for the maturity stage. Pepsi Aha Pepsi Aha is very new in market and in introduction stage. Pepsi Blue Pepsi Blue is in introduction stage. 7 Up 7 Up is one of the oldest Product in the beverage market of Bangladesh . According to their present situation they are in the maturity stage. In this stage their profit level is on the decline. To keep their position in this stage they have to spend a lot of money for the advertisement of the product. Mirinda Mirinda is now in maturity stage. Slice Slice is now in maturity stage. RC Cola RC Cola is in introduction stage. They are not a very new company but they can not move their position from introduction to growth stage. But very much trying to take position by various promotional activities. RC Lemon


This company is in introduction stage but for their promotional activities, they are in between introduction to growth stage because their profit is increasing. Upper 10 Upper 10 is in introduction stage. The Product is moving its position from introduction to growth stage. Virgin Cola Virgin is a new company in our country. This company is in introduction stage but for their promotional activities, they are in between introduction to growth stage because their profit is increasing. Virgin Diet Virgin diet is in introductio stage. Virgin Lemon Virgin lemon is in introductio stage Virgin Orange Virgin orange is in Declining stage. SunCrest Cola Sun Crest is in the declining stage. They are in this stage because their sales falloff and profits drop. Bubble Up Bubble up is in introduction stage. Kickapoo Kickapoo is now in Declining stage. Uro Cola Uro cola is in introduction stage but for their promotional activities, they are in between introduction to growth stage because their profit is increasing. Uro Orange Uro orange is in introduction stage. Uro Lemon Uro lemon is in introduction stage but for their promotional activities, they are in between introduction to growth stage because their profit is increasing.


Fizz Up Fizz up is in introduction stage but for their promotional activities, they are in between introduction to growth stage because their profit is increasing. Royal Tiger Royal Tiger is in introduction stage. Pran Cola Pran cola is in introduction stage. Pran Up Pran up is very recent in market and in introduction stage. Double Cola Double cola is in introduction stage. The Product is moving its position from introduction to growth stage. Chaser Chaser is in introduction stage. The Product is moving its position from introduction to growth stage. Mojo Mojo is very recent in market and is in introduction stage but for their strong promotional activities, they are in between introduction to growth stage because their profit is increasing. Lemu Lemu is also very recent in market and is in introduction stage but for their strong promotional activities, they are in between introduction to growth stage because their profit is increasing. Speed Speed also very recent in market but its position is not good but trying to get position by promotional activities. ZamZam Cola & lemon ZamZam cola & lemon are product of an iranian company. ZamZam cola is not available in market .


ANALYSIS Total Market Analysis Market Survey Soft Drinks Market Increasing In Bangladesh: Industry Analysis In recent years soft drinks companies are increasing in Bangladesh because of low barriers. So the duopoly market of Coke and Pepsi doesn’t exist any more. Moreover this market is becoming saturated new companies. Though Bangladesh is a small country considering the area, it is a big market for any manufacturer as the population is very high. Moreover the population is increasing and consumption of soft drink is also increasing. The following chart will give some indications of the increasing beverage market. Table-8.1 increasing beverage market.

Year 1993-1994 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

Production(million) 70.12 94.94 104.85 124.94 140.24 147.44 165.24 182.14 202.23 221.12 238.25 252.16 259.12

Table : [Source: TBCL, Bangladesh Shilpa Bank (BSB)] From the table we can see a continuous increase of production in Beverage industry. Here we can see that the demand for beverage is increasing as the production has gone up. Fig: 8.1 Market Share Of Different Companies


Abdul Monem Ltd.

Total Beverage Market Share

Tabani Beverage Transcom Beverage National Beverage Al Amin Beverage Globe Soft Drinks Akij Foods Ltd. Global Beverage Ltd. Pran Group Partex Group ZamZam Group

Source: Secondary data from market survey Table 8.2 Abdul Monem Limited Coca-Cola 57 % Sprite 30 % Fanta 9 % Sunfill 4 % Interpretation

Fig : 8.2 Abdul Monem Limited Market Share

Sunfill Fanta 4% 9%

Coca-Cola

Sprite 30%

Coca-Cola 57%

Sprite Fanta Sunfill

In the Bangladesh Beverage limited we found that Coca-Cola has 57% market share Sprite has the 30% market share Fanta has the 9% market share and Sunfill has only 4% market share. Table: 8.3Akij Beverage Limited Mojo

51 %


Lemu

37 % Speed

12 %

Fig: 8.3Akij Beverage Limited Interpretation In the Akij Beverage limited found that Mojo cola has 51 % market share Lemu Lemon has

Market Share

Speed 12% Mojo Lemu 37%

Lemu

Mojo 51%

Speed

the 37 % market share and Speed has only 12 % market share. Table 8.4 Al-Amin Beverage Ltd. Double Cola 53 % Chaser 47 % Fig: 8.4 Al-Amin Beverage Ltd

Market Share

Chaser 47%

Double Cola 53%

Double Cola

Chaser


Interpretation In the Al-Amin Beverage limited found that Double cola has 53 % market share Chaser has the 47 % market share . Table : 8.5 Global Beverage Company Limited Virgin Cola regular 57% Virgin Cola Diet 12 % Virgin Orange 15% Virgin Blue 16% Fig : 8.5 Global Beverage Company Limited

Interpretation Virgin Cola is the top position to holding 57% and Virgin orange and Virgin Blue are most close position to holding 15% and 16% market share. Table- 8.6 Globe Soft Drinks Limited Uro Cola Uro Lemon

28 % 27 %

Fizz Up Royal Tiger

28 % 10 %

Uro Orange

7%


Fig- 8.6 Globe Soft Drinks Limited

Market Share

10%

28%

Uro Cola Uro Lemon

28%

Uro Orange Fizz Up 7%

27%

Royal Tiger

Interpretation In the Globe Soft Drinks limited found that Uro cola has 28% market share Uro Lemon has the 27% market share Uro orange has the 7% market share Fizz Up has 28% market share and Royal Tiger has 10 % market share. Table: 8.7 National Beverage Limited Sun Crest Cola Jay Juice Bubble Up Sun Crest Apple Kickapoo Fig: 8.7 National Beverage Limited

58% 04% 19% 05% 14%


Interpretation Here the Sun Crest Cola is the top Position to holding 58% market share and their close competitor is Babble Up to holding 19%. Kickapoo is the 14% ,Jay Juice 05 % , Sun Crest apple 05 % market share. Table: 8.8 Partex Beverage Limited. RC Cola Upper 10 RC Orange RC Lemon

24% 04% 07% 65%

Fig: 8.8 Partex Beverage Limited.

Interpretation In the Partex beverage I found that RC Lemon has the 65% market share after that RC Cola has the 24% and upper 10 and Rc orange are 7% and 4% market share. Table: 8.9 Pran Beverage Limited Pran Cola Pran Up

55 % 45 %


Fig: 8.9 Pran Beverage Limited

Market Share

45

Pran cola

55

Pran Up

Interpretation In the Pran Beverage limited found that Pran cola has 55 % market share and Pran up has the 45 % market share . Table:8.10 Tabani Beverage Limited. Coca-Cola Sprite Fanta Fig:8.10 Tabani Beverage Limited.

71% 21 % 08%


Interpretation From this graph we found that Coca-Cola has a 71%, Sprite has a 21% and Fanta has a 8% market share. Here we found that Coca Cola has a top position and Fanta has the last position. Table: 8.11 Transcom Beverage Limited Pepsi Cola 7 UP Mirinda Orange Mirinda Lemon

58% 21% 12 % 09%

Fig: 8.11 Transcom Beverage Limited

Interpretation In the Bangladesh Beverage limited we found that Pepsi cola has 58% market share 7up has the 21% market share Mirinda orange has the 12% market share and Mirinda lemon has only 9% market share. Table: 8.12 Zam Zam Group Limited ZamZam Cola

250 ml.

ZamZam Lemon 250 ml. Fig: 8.12 Zam Zam Group Limited


Interpretation:

Market Share

ZamZam Lemon 250 ML

ZamZam Cola 250 ML

The company very recent come in Bangladesh .Here the ZamZam Cola’s 250 ml. has 50% market share and ZamZam Cola’s 600 ml.has 50 % market share. Product Wise Market Share


6%

1%

11%

6% 1%

7%

7%

1% 1% 7%

7% 1% 1% 1% 1%

4% 2%

4% 2% 2% 2%

7% 5% 2% 1%1%1% 2% 2% 2%1%1%

Coc a-Cola

S prit e

Fant a

S unfill

RC Cola

RC Le mon

Upper 10

P epsi

7 Up

Mirinda

S lice

P epsi Aha

P epsi Blue

S uncrest Cola

Bubble Up

Kicka poo

Moz a

Uro Cola

Uro Lemon

Uro Orange

Fiz z Up

Royal Tiger

P ra n Cola

P ran Up

Double Cola

Chaser

Mojo

Lemu

S pe ed

Virgin Cola

Virgin Lemon

ZamZam Cola


Table: 9.1 How old are you?

Valid

10-14 15-19 20-24 25-30 35 and above Total

Frequency

Percent

Valid Percent

Cumulative Percent

8

4.0

4.0

4.0

36

17.9

17.9

21.9

80

39.8

39.8

61.7

46

22.9

22.9

84.6

31

15.4

15.4

100.0

201

100.0

100.0

Fig: 9.1 How old are you?

10\14 15\19 20\24 25\30 35 & abive

Source –Market Analysis


Table : 9.2 Profession?

Vali d

Student

Frequency

Percent

Valid Percent

Cumulativ e Percent

136

67.7

67.7

67.7

14

7.0

7.0

74.6

10

5.0

5.0

79.6

36

17.9

17.9

97.5

5

2.5

2.5

100.0

201

100.0

100.0

Businessman

Housewife Employee Others Total Fig : 9.2 Profession?

Student Businessman House wife Employees Others

Source –Market Analysis


Table 9.3 Sex?

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

122

60.7

60.7

60.7

79

39.3

39.3

100.0

201

100.0

100.0

male

female

Total

Fig: 9.3 Sex?

80 60 40 Series1

20 0

S1 Male

Source –Market Analysis

Female


Table 9.4 Location?

Percent

Valid Percent

Cumulat ive Percent

Gulshan Banani 43 DOHS Uttara

21.4

21.4

21.4

Dhanmondi Lalmatia M.Pur Dhaka 60 university

29.9

29.9

51.2

27

13.4

13.4

64.7

32

15.9

15.9

80.6

39

19.4

19.4

100.0

201

100.0

100.0

Frequency Vali d

Old town Mirpur Shamoylio Kamlapur Basabo Total

Fig: 9.4 Location?

Gulshan, Banani Dhanmondi Lalmatia Old Town Mirpur Shayamoli Kamlapur Basabo

Source –Market Analysis


Table: 9.5 Most favorite drink?

Valid

Water Soft drinks Energy drink Juice lassie Total

Frequency

Percent

Valid Percent

Cumulative Percent

68

33.8

33.8

33.8

93

46.3

46.3

80.1

12

6.0

6.0

86.1

17

8.5

8.5

94.5

11

5.5

5.5

100.0

201

100.0

100.0

Fig: 9.5 Most favorite drink?

Water Energy drinks Soft Drinks Juice Lassie

Source –Market Analysis I have seen in the tables with chart. From the table I find that 33.8 percent consumers like water, 46.3 percent consumers like soft drinks, and 20 percent consumers like energy drink, juice and lassie. Demands of soft drinks are high but growth is low. People like soft drinks but not purchased because of price. Table: 9.6 Most favorite fizzy drinks?


Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Coke

92

45.8

45.8

45.8

Pepsi

41

20.4

20.4

66.2

virgin

17

8.5

8.5

74.6

RC

34

16.9

16.9

91.5

Mojo

17

8.5

8.5

100.0

201

100.0

100.0

Total

Fig: 9.6 Most favorite fizzy drinks?

Coke Pepsi Virgin RC Mojo

Source –Market Analysis From the table i find that Coke is market leader, Pepsi and Rc are market follower. Virgin and Mojo are doing same.

Table: 9.7 How many times do you take Soft drinks ?


Valid

Twice a day Once a day Once a week Once a month Never Total

Frequency

Percent

Valid Percent

Cumulative Percent

33

16.4

16.4

16.4

59

29.4

29.4

45.8

83

41.3

41.3

87.1

21

10.4

10.4

97.5

5

2.5

2.5

100.0

201

100.0

100.0

Fig: 9.7 How many times do you take Soft drinks ?

Never Once a month Once a weak

Series1

Once a day Twice a day 0

10

20

30

40

50

Source –Market Analysis From the table i observe that maximum consumers usually take soft drinks once in a week, but there are few consumers like students take soft drinks regularly, and very few consumers take soft drinks two times in a day.

Table: 9.8 Most favorite flavor?


Valid

cola clear lemon orange cloudy lemon Total

Frequency

Percent

Valid Percent

Cumulative Percent

116

57.7

57.7

57.7

48

23.9

23.9

81.6

13

6.5

6.5

88.1

24

11.9

11.9

100.0

201

100.0

100.0

Fig: 9.8 Most favorite flavor?

Cola Clear Lemon Orange Cloudy Lemon

Source –Market Analysis From the table i observe that 57 percent consumer likes Cola and 24 percent consumer likes Clear Lemon (sprite, 7 up). Besides this Cloudy Lemon has a little bit market demand. Since Cola is first introduced by the beverage company, so consumers are habituated by taking Cola. But now-a-days Clear Lemon and Cloudy Lemon are second choices of consumers.

Table: 9.9 Mostly Available Drink?


Valid

Coke Pepsi Virgin RC Mojo Total

Frequency

Percent

Valid Percent

Cumulative Percent

106

52.7

52.7

52.7

34

16.9

16.9

69.7

10

5.0

5.0

74.6

39

19.4

19.4

94.0

12

6.0

6.0

100.0

201

100.0

100.0

Fig: 9.9 Mostly Available Drink?

60 50 40 30

Series1

20 10 0

Coke

Pepsi

Virgin

RC

Mojo

Source –Market Analysis We observe in the table that the most available soft drinks are Coke, then Rc and Pepsi. we find in previous table that Coke is market leader, it captures the maximum market share because of high demand.

Table: 9.10 Favorite Advertisement?


Valid

Coke Pepsi Virgin RC Mojo Total

Frequency

Percent

Valid Percent

Cumulat ive Percent

48

23.9

23.9

23.9

28

13.9

13.9

37.8

13

6.5

6.5

44.3

76

37.8

37.8

82.1

36

17.9

17.9

100.0

201

100.0

100.0

Fig: 9.10 Favorite Advertisement?

40 30 20 Series1

10 0 Coke

Pepsi

Virgin

S1 RC

Mojo

Source –Market survey In case of advertisement people like the advertisement of Rc. The jingle of the advertisement “Tomar Jonno Morte Pari” was the best a mong all TV advertisement. One survey conducted by the Partex Beverage and result was increasing of sales volume because of advertisement.

Table: 9.11 Good quencher Drinks


Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Coke

90

44.8

44.8

44.8

Pepsi

37

18.4

18.4

63.2

Virgin

16

8.0

8.0

71.1

RC

39

19.4

19.4

90.5

Mojo

19

9.5

9.5

100.0

Total

201

100.0

100.0

Fig: 9.11 Good quencher Drinks

50 45 40 35 30 25

Series1

20 15 10 5 0 Coke

Pepsi

Source –Market Analysis

Virgin

RC

Mojo


Table: 9.12 Most Prestigious drink?

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Coke

107

53.2

53.2

53.2

Pepsi

38

18.9

18.9

72.1

Virgin

16

8.0

8.0

80.1

RC

27

13.4

13.4

93.5

Mojo

13

6.5

6.5

100.0

Total

201

100.0

100.0

Fig: 9.12 Most Prestigious drink?

60 50 40 30

Series1

20 10 0

Coke

Pepsi

Virgin

RC

Mojo

Source –Market Analysis Most of the consumers think that Coke is more prestigious than other soft drinks.


Table: 9.13 Which one is best in taste?

Vali d

Frequency

Percent

Valid Percent

Cumulativ e Percent

Coke

99

49.3

49.3

49.3

Pepsi

37

18.4

18.4

67.7

Virgin

18

9.0

9.0

76.6

RC

30

14.9

14.9

91.5

Mojo

17

8.5

8.5

100.0

Total

201

100.0

100.0

Fig: 9.13 Which one is best in taste?

Mojo

RC

Virgin

Series1

Pepsi

Coke 0

20

40

60

Source –Market Analysis If i compare Cola with Clear Lemon, then we find, 49 percent people believe that the taste of Coke is different and best, Coca-Cola is the best in Cola, but in case of Clear Lemon 7 up got the highest percentage. Consumers said that among the Clear Lemon 7 up is the best.


Table: 9.14 Good in Cola ?

Valid

Coke

Frequency 112

Percent 55.7

Valid Percent 55.7

Cumulativ e Percent 55.7

Pepsi

35

17.4

17.4

73.1

Virgin

11

5.5

5.5

78.6

RC

28

13.9

13.9

92.5

Mojo

15

7.5

7.5

100.0

Total

201

100.0

100.0

Fig: 9.14 Good in Cola ?

Coke Pepsi Virgin RC Mojo

Source –Market Analysis

Table: 9.15 Good in Clear Lemon ?


Valid

Frequency

Percent

Valid Percent

Cumulative Percent

sprite

77

38.3

38.3

38.3

7 up

80

39.8

39.8

78.1

virgin

20

10.0

10.0

88.1

13

6.5

6.5

94.5

fizz up

11

5.5

5.5

100.0

Total

201

100.0

100.0

upper 10

Fig : 9.15 Good in Clear Lemon ? 40 35 30 25 20 Series1

15 10 5 0

Sprite

7 up

Virgin

Source –Market Analysis

Upper 10

Fizz up


Table: 9.16 Good in Cloudy Lemon?

Vali d

Virgin

Frequency 35

Percent 17.4

Valid Percent 17.4

Cumulative Percent 17.4

RC lemon

127

63.2

63.2

80.6

27

13.4

13.4

94.0

Lemu

12

6.0

6.0

100.0

Total

201

100.0

100.0

Uro lemon

Fig: 9.16 Good in Cloudy Lemon?

Virgin RC Lemon Uro Lemon Lemu

Source –Market Analysis


Table: 9.17 Favorite Size?

Valid

250 ml 500 ml 1 liter Total

Frequency

Percent

Valid Percent

Cumulative Percent

91

45.3

45.3

45.3

71

35.3

35.3

80.6

39

19.4

19.4

100.0

201

100.0

100.0

Fig: 9.17 Favorite Size? 50 45 40 35 30 25

Series1

20 15 10 5 0 250 ml

500 ml

1000 ml

Source –Market Analysis The increasing price of carbonated soft drinks is one of the reasons for negative growth. The price increased in last year of all size. Sales volume is affected by price, especially in case of 250 ml. I have seen above table and chart that 45.3 percent people prefer 250 ml. The price of 250 ml increased 2 tk per bottle in the last year. As a result some consumers are not taking soft drinks willingly like before.


Table: 9.18 What usually do when both are available at tk 10 only?

Valid choose water

Frequency

Percent

Valid Percent

Cumulative Percent

76

37.8

37.8

37.8

62.2

62.2

100.0

100.0

100.0

choose Soft 125 drink Total 201

Fig: 9.18 What usually do when both are available at tk 10 only?

Choose water Choose soft drink

Source –Market Analysis The availability of mineral water is increasing day by day. Now-a-days one can buy a glass of water by tk 10 only. But when the price of bottle water is same to soft drinks consumers are willingly purchase soft drinks instead of water.


Table: 9.19 Is Quality going downward?

Valid

yes no Total

Frequency

Percent

Valid Percent

Cumulative Percent

151

75.1

75.1

75.1

50

24.9

24.9

100.0

201

100.0

100.0

Fig: 9.19 Is Quality going downward? 80 70 60 50 40

Series1

30 20 10 0 Yes

No

Source –Market Analysis Quality is another reason for negative growth. I observed in the figure that 75 percent consumers are not happy with soft drinks quality. Consumers think that so many beverage companies are in the market. They are not assuring about the quality of their product. As a result, beverage companies are loosing their customers. Table: 9.20 Most Preferred Brand Consumed by the Consumer Out of the total sample size, 62.13% consumers like Coke, 17.26% Pepsi, 9.11% RC, 6.75% Virgin and others 4.75%. According to the result of the survey, we find that most of the consumer in the Dhaka city liked Coke and the ratio is 62.13%.


Fig: 9.20 Most Preferred Brand Consumed by the Consumer

MOST POPULER BRAND 70.00%

62.13%

60.00% 50.00% 40.00% 30.00% 17.26%

20.00% 10.00%

9.11%

6.75%

4.75%

RC

VIRGIN

OTHERS

0.00% COKE

PEPSI

Table: 9.21 Most Prefer Type of Flavor The consumers informed the following above the most prefer type of soft drinks: 51% consumer indicated that they liked the Cola flavor most. 18% of them like the Orange flavor, 20% liked Lemon, 4% liked Diet, 4% Mango and others 3% liked Lime. Actually, children and women liked Orange and Mango flavor most. Diet liked by health conscious people.


Fig: 9.21 Most Prefer Type of Flavor

MOST PRFERRED TYPE OF FLAVOR 60%

51%

50% 40% 30% 18%

20%

20%

10%

4%

4%

3%

DIET

MANGO

LIME

0% COLA

ORANGE

LEMON

Table: 9.22 Influential Factors The influential factors are taste, brand, advertisement, friend’s influence and one of the vital factor availability. The result had shown that 67% taste, 13% brand, 10% advertisement, 7% friend’s influence and 3% availability influence the consumers to buy or have the beverage product.


Fig: 9.22 Influential Factors

INFLUENTIAL FACTORS TO CHOOSE A SOFT DRINKS 80% 70% 60% 50% 40% 30% 20% 10% 0%

67%

10%

7%

3%

AV

AL AB

ILI TY

IN F FR IEN D

AD S

BR AN D

TA S

TE

13%

Table: 9.23 Pack Preference The consumer indicated the following things about there pack preference of soft drinks:.23% of the consumer liked the fountain drinks, 27% liked 300ml bottle, 23% liked 250ml can, 19% liked 1000 and 1500ml PET bottle and only 8% liked 1000ml glass bottle. Consumers do not like the 1000ml glass bottle because of hazard of deposit system of bottle from the consumer.


Fig: 9.23 Pack Preference

PACK SIZE PREFFERED BY CONSUMER 30%

27% 23%

25%

23%

19%

20% 15%

8%

10% 5% 0% 300 ML

1000&1500 ML PET

1000 ML GLASS BOTTLE

250 ML CAN FOUNTAIN

Table: 9.24 Segmentation of the Consumer we have divided the consumers according to the age. The segments are children, teen age, youth, people over 35 years. The aim was to find out which segment like most the beverage product. The result indicate that 12% children, teen agars 49%, youth25%, people over 35 years 14% consumed or have beverage product. Therefore, the result indicates that tee agars are the main segment of the consumers.


Fig: 9.24 Segmentation of the Consumer

SEGMENTATION OF THE CONSUMERS 60% 49%

50% 40% 30% 20%

25% 14%

12%

10% 0% CHILDREN

TEEN AGE

YOUTH

OVER 35YRS

Table: 9.25 Sources of Information The consumers reported the following about the sources of information 36% of them got the information about soft drinks from TV, 32% got the information from the print media, 18% from the Radio, 12% from the out door (billboard) and only 2% from the word of mouth communication.


Fig: 9.25 Sources of Information

SOURCES OF INFORMATION 40%

36% 32%

35% 30% 25% 18%

20%

12%

15% 10%

2%

5% 0% TV

RADIO

PRINT

BILLBOARD WORD OF MOUTH

Table: 9.26 Comparison of Cola Taste Preference The varieties of Cola in beverage products are: Coca cola Pepsi RC Virgin Suncrest The consumers indicate that they like Coke’s cola most. The result I got they liked 46% cola of Coke, 24% cola of Pepsi, 12% of RC, 15% of Virgin and 3% of Sun-crest’s cola. Fig: 9.26 Comparison of Cola


COMPARISON OF COLA

3% 15% COKE 46%

12%

PEPSI RC VIRGIN SUN CREST

24%

Table: 9.27 Reasons for Liking There were some categories in reasons for liking the beverage companies soft drinks. They were as follows: Well balanced Punch Strong Sweetness Taste The consumers informed the following things about their choices of the five categories, for liking the Cola flavor: 100% of the consumers indicated that only Coke was well balanced. Well balance means the balance combination of punch, strong, sweetness, and taste. 83% reported that coke had punch, 10% indicated that RC had punch and the rest of 7% informed that Virgin had the punch. 81% consumer indicated that Coke was strong and 13% reported for Pepsi and 3% consumer reported each for RC and Virgin. 91% consumer indicated that Coke had the sweetness, 5% indicated that Pepsi had the sweetness and 2% indicated that RC and Virgin each had the sweetness. 85% consumer indicated that Coke had the perfect taste, 10% indicated that Pepsi had that, 3% indicated that RC had the taste and 2% consumer indicated that Virgin had good taste.


Fig: 9.27 Reasons for Liking

REASONS FOR LIKING THE COLA FLAVOR 100

91

85

83

81

COCA COLA PEPSI RC 10 7

33

BA

LA NC ED

VIRGIN

W

EL L

S TN ES

SW

EE

TA S

13

PU NC H

522

2

ST RO NG

10 3

TE

120 100 80 60 40 20 0

Table: 9.28 Reasons for Not Liking There were also some categories for not liking reasons. They were as follows: No punch Not strong Too strong Not sweet Too sweet Bitter taste Tasteless Taste The consumers informed their reasons for not liking only for RC and Virgin. They did not like RC and Virgin for the following reasons: 38% of the consumer indicated that RC had no punch, while the rest of 62% indicated that Virgin had no punch.

Fig: 9.28 Reasons for Not Liking


REASONS FOR NOT LIKING OF COLA 120 100

100

80 60

63

50

40

COCA COLA

75 50

37

50

60

62

40

38

25

20

PEPSI RC COLA VIRGIN

TO O

S

S

E

E T TR N O O N T G S TR O N N G O P U N C H

T W

E W N O T

S

TO O

R

TA

S

E

TE

S S LE B

IT TE

TE

TA

S

TA

S

TE

0

In the “not strong” category, 40% consumers did not like RC Cola because it was not strong and 60% disliked Virgin for the same reasons. In the “too strong” category, 100% consumers disliked RC Cola because it was too much strong. In the “not sweet” category, 50% disliked RC Cola because it was not sweet and the rest did not like Virgin for the same reason. In the “too sweet” category, 75% of consumer indicated that RC Cola was sweeter than Virgin. In the “bitter taste” category, 50% consumers disliked both RC Cola and Virgin because they were of bitter taste. In the “taste less” category, 37% consumer did not like RC Cola because it was taste less and 63% consumers disliked Virgin for the same reason. In the “taste” category, 50% consumers reported each for RC Cola and Virgin that they did not have the taste. Table: 9.29 Comparison of Orange Taste Preference The varieties of orange in beverage products are: Fanta Mirinda RC orange Virgin orange


Fig: 9.29 Comparison of Orange COMPARISON OF ORANGE 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

80%

10%

FANTA

MIRINDA

8%

VIRGIN ORANGE

2% RC ORANGE

Talbe: 9.30 Reasons for liking The consumers informed the following things about their taste preference in Orange flavor 80% of the consumer liked the taste of Fanta, 10% liked Mirinda, 8% liked Virgin orange and 2% liked the taste of RC Orange. The consumers informed the following things about their choices of the five categories, for liking the Orange flavor: 75% of the consumers indicated that Fanta was well balanced and 6% consumer indicated that Mirinda was well balanced, 10% indicated that RC Orange was well balanced and 9% indicated that Virgin orange was well balanced.


Fig: 9.30 Reasons for liking REASON FOR LIKING THE ORANGE FLAVOR % 120

100

1 17

11

9

11

10

20

80

6 VIRGIN ORANGE RC ORANGE

60

MIRINDA 100 82

40

80

FANTA

79

75

A N C E D L

B A L

P U N C H W E L

R O N G S T

E A S T

T

S W E E T

0

N E S S

20

100% of the consumers indicated that only Mirinda had the punch. 79% consumer indicated that Fanta was strong and 11% consumer reported each for Mirinda and Virgin orange. 80% consumer indicated that Fanta had the sweetness and 20% indicated that Mirinda had the sweetness. 82% consumer indicated that Fanta had the perfect taste, 17% indicated that Mirinda had that and 1% consumer indicated that Virgin orange had good taste. Table 9.31 Reasons for Not Liking There were also some categories for not liking reasons. They were as follows: Horrible Sour No punch Too strong Not sweet Too sweet Bitter taste Tasteless Taste The consumers informed the following reasons about their reasons for not liking, only for Mirinda, RC orange and Virgin orange: 100% of the consumers disliked RC orange because it was horrible.


67% disliked RC orange because it was sour and 33% did not like Virgin orange for the same reasons. Fig: 9.31 Reasons for Not Liking REASONS FOR NOT LIKING THE ORANGE FLAVOR 120 100 80

100

100 81 67

64

60 40

75 50

33

20 0 HORIBBLE

33 6

36

13 17

TASTELESS

100 83 FANTA MIRINDA RC ORANGE

57 29

25

14

NOT SWEET

VIRGIN ORANGE 17

NO PUNCH

100% of the consumers indicated that RC orange had no punch. In the “not strong” category, 83% consumers did not like RC orange because it was not strong and 17% disliked Mirinda for the same reason. In the “too strong” category, 70% consumer disliked Virgin orange because it was too much strong. In the “not sweet” category, 75% disliked RC orange because it was not sweet and the rest 25% did not like Mirinda for the same reason. In the “too sweet” category, 14% of consumer disliked Mirinda because it was too sweet, 57% disliked RC orange as it was also too sweet and 29% did not like Virgin orange for the same reason. In the “bitter taste” category, 64% consumers disliked RC orange and 36% consumers did not like Virgin orange because both of them were of bitter taste. In the “taste less” category, 50% consumer disliked RC orange because it was taste less and 33% consumer disliked Virgin orange because it was also taste less and the rest 17% consumer did not like Mirinda for the same reason. In the “taste” category, 6% consumers disliked Mirinda because it had no taste, 81% disliked RC orange and 13% disliked Virgin orange for the same reason. Table: 9.32 Comparison of Clear Taste Preference The varieties of clear in beverage products are:


Sprite 7UP Upper 10 Bubble Up The consumers informed the following things about their taste preference of Clear flavor 77% of the consumer liked the taste of Sprite, 7% liked 7UP and 3% liked the taste of Upper 10. Fig: 9.32 Comparison of Clear T AST E PREFERENCE OF CLEAR

3% 7%

0% SPRITE 7UP UPPER 10 BUBBLE UP 77%

Table: 9.33Reasons for Liking The consumers informed the following things about their choices of the five categories, for liking the Clear flavor: 92% of the consumers indicated that Sprite was well balanced and 8% consumer indicated that 7UP was well balanced. 89% of the consumers indicated that Sprite had the punch and 11% indicated that 7UP had the punch. Fig: 9.33Reasons for Liking REASON FOR LIKING THE CLEAR FLAVOR %

6

9

8

11

6

7UP

91

E D A L A N C

H U N C W

E L L

B

P

N G S T R

O

S T N E E E

92

89

S

88

BUBBLE UP UPPER 10

100

S W

T A S T E

102 100 98 96 94 92 90 88 86 84 82

SPRITE


100% of the consumer indicated that Sprite was strong. 91% consumer indicated that Sprite had the sweetness and 9% indicated that 7UP had the sweetness. 88% consumer indicated that Sprite had the perfect taste, 6% indicated that 7UP had that and 6% consumer indicated that Upper 10 had good taste. Table:9.34 Reasons for Not Liking There were some categories for not liking reasons. They were as follows: Sour No punch Too strong Not sweet Too sweet Bitter taste Tasteless Taste The consumers informed the following things about their reasons for not liking, 7UP, Upper 10 and Bubble up. They did not like 7UP, Upper 10 and Bubble up for the following reasons: 50% disliked Upper 10 because it was sour and 50% did not like Bubble up for the same reason. 40% of the consumer did not like 7UP because it had no punch and 60% disliked Bubble up because it had also no punch. In the “not strong” category, 80% consumers disliked 7UP and 17% disliked Bubble up because both of them were not strong. In the “too strong” category, 13% of consumers did not like both of 7UP and Upper 10 because they were too strong and 74% consumer dislike Bubble up because it was too much strong.


Fig:9.34 Reasons for Not Liking REASONS FOR NOT LIKING THE CLEAR % 120

100 17

25 80

50

58

60

63

60 72

60

25

BUBBLE UP UPPER 10

74

7UP SPRITE 83

40

T E

13

S

S

W

W

E

E

40

E T T R N O O N T G S T R O N N G O P U N C H

B

14

N O T

R

S

T A

L E

S

S

S

T E

17

13

T O O

20

IT T E

T E

T E

S

S

T A

T A

O U R

0

50

14

11

S

25

26

T O O

20

20

50

In the “not sweet” category, 51% disliked 7UP and 25% consumers disliked both of Upper 10 and Bubble up because they were not sweet. In the “too sweet” category, 14% of consumer disliked both of 7UP and Upper 10 because they were too sweet and 72% disliked Bubble up for the same reason. In the “bitter taste” category, 17% disliked 7UP, 258% customers disliked Upper 10 and 58% did not like Bubble up because they had the bitter taste. In the “taste less” category, 20% consumers disliked 7UP and 60% consumers did not like Bubble up because they were taste less and the rest 20% consumers disliked Upper 10 for the same reason. In the “taste” category, 11% consumers disliked 7UP, 26% disliked Upper 10 and 63% did not like Bubble up because all of them had no taste. Table 9:35 Comparison of Cloudy Lemon Taste Preference The varieties of cloudy in beverage products are: Mirinda lemon RC lemon Kickapoo


The consumers informed the following things about their taste preference of Cloudy flavor 72% of the consumer liked the taste of RC Lemon, 20% liked Mirinda lemon and 8% liked the taste of Kickapoo. Fig: 9:35 Comparison of Cloudy Lemon TASTE PREFERENCE OF CLOUDY LEMON

8%

20% MIRINDA LEMON RC LEMON KICKAPOO

72%

Table: 9.36 Reasons for Liking The consumers informed the following things about their choices of the five categories, for liking the Cloudy flavor: 81% of the consumers indicate RC lime was well balanced, 6% consumer indicate that Mirinda lime was well balanced and 13% indicate that Kickapoo was well balanced. 100% of the consumers liked only RC lime because it had the punch. 25% of the consumer indicated that Mirinda lime was strong, 63% indicated that RC lime was strong and 13% indicated that Kickapoo was strong. Fig: 9.36 Reasons for Liking REASONS FOR LIKING THE CLOUDY LEMON 120 100

11

18

13

13

80 KICKAPOO 56

60

RC LEMON

63

64

100

81

40 20

33

25 N C E

L L

B

A

L A

U N C H E

S

P W

S

W

E

E

T A

S

T N E

T E

S

S

0

T R O N G

D

18

6

MIRINDA LEMON


33% consumer indicated that Mirinda lemon had the sweetness, 56% indicated that RC lime had that and 11% indicated that Kickapoo had the sweetness. 18% consumers liked both of Mirinda lime and Kickapoo because they had taste and 64% consumers liked RC lime for the same reason. Table : 9.37 Reason for Not Liking There were also some categories for not liking reasons. They were as follows: Sour No punch Too strong Not sweet Too sweet Tasteless Taste The consumers informed the following things about their reasons for not liking Mirinda lime and Kickapoo: 67% disliked Mirinda lime because it was sour and 33% did not like Kickapoo up for the same reason. 20% consumers did not like both of Mirinda lime and RC lemon because they had no punch and 60% disliked Kickapoo for the same reason. In the “not strong” category, 20% consumers disliked Mirinda lime, 30% consumers disliked RC lime and 50% did not like Kickapoo because all of them were not strong. Fig : 9.37 Reason for Not Liking

REASONS FOR NOT LIKING THE CLOUDY LEMON 120 100 33

80

60

60

60 100

40

67

20

20 20

25 6

50

69

30

RC LEMON

20 40

40

KICKAPOO MIRINDA LEMON

20

NO

SO U R P UN TO CH O S TR O NO N G T S W TO E ET O SW EE TA T S TE LE TA S S S TE LE NO S T S S TR O NG

0

100

30

In the “too strong” category, 100% consumers disliked Mirinda lime because it was too strong.


In the “not sweet” category, 100% consumers did not like RC lime because it was not sweet. In the “too sweet” category, 40% consumers disliked Mirinda lime because it was too sweet and 60% disliked Kickapoo because it was too sweet. In the “taste less” category, 50% consumers disliked Mirinda lime and 20% did not like RC lime because both of them were taste less and the rest 30% consumers disliked Kickapoo for the same reason. In the “taste” category, 59% consumers disliked Mirinda lime, 6% disliked RC lime and 24% did not like Kickapoo because all of them had no taste. The brand on the top of the mind (TOM) of all irrespective of socio-economic class, age, and region was the same with the regared to total spontaneous awareness. However, considering total awareness (spontaneous plus prompted) RC was number one, closely followed by Coca-Cola. Fig: 9.38 Top of Mind Brand Total (SEC) Top of MInd Brand Total (SEC) 60 48.8

50

Coke RC

40

7-Up Pepsi

30

24.2

Sprite

20

Virgin 8.4

10

6

5.4

Uro 4

1.9

Fanta

0.2

0 1

Virgin was the fifth TOM brand among the SEC A and B, but sixth amongst all SEC. It was sixth and eighth in term of total spontaneous and total awareness respectively. Fig: 9.39 Total Spotaneous (Total SEC)

Total Spontaneous (Total SEC) 100 80 60 40

91.2

80

62.5

60.1

20

49.3

49.1

41.8 23.8

0 Coke

RC

Pepsi

7-Up

Sprite

Series1

Virgin

Mojo

Uro


Fig: 9.40 Total Awareness (Total SEC)

Total Awareness (Total SEC) 105

100

100

98

96

95

94

92

90

90

88

86

85 80 75 RC

CocaCola

Pepsi

7 Up

Sprite

Uro

Fanta

Virgin

Series1

Consumption habits Table: 9.38 Reasons for drinking CSD As a whole people drink CSD more to help with digestion of food than for any other reason, irrespective of age, SEC, sex, etc. Beats the heat (quenches thirst), removes fatigue, tastes good were the other major reasons cited for drinking CSD as can be seen from the following graph. Fig: 9.41 Reasons for drinking CSDs Reasons for drinking CSDs 60

52.6

50 40 30

31.4

28.4

Series1

21.2

20 10

14.1 12.4 5.9 3.4 1.4 1.3 1.3

S

H

el p

di ge w B st ee it s i ps th on aw e h ay ea fa t G iq o ue M i n od d ta sa st S ns e at ls ta f r e t io H el sh n p th to en i rst te Li Fa ke sh rt a C in io it ar na w bo hi b le le d Li ke y d ou tin fla rat g vo e i s ur h /f r i ag gh ra nc C e ol ou rf ul

0

Table: 9.39 Brand preferences The two most preferred brands were Coca-Cola and RC. Coca-Cola was the men’s first choice while RC the wome’s.

1


7Up Was the third choice by both sexes. Coca-Cola was the first preference of SEC A and B consumers, while RC was SEC C’s Fig: 9.42 Most proferred Brand Most proferred Brand 40 35 30 25 20 15 10 5 0

34.5

33.1 9.9

Coke

RC

7-Up

5.9

4.7

4.2

3.2

0.4

Sprite

Virgin Cola

Pepsi

Uro

Fanta

Series1

Coca-Cola was the most preferred brand in the age group 20-39. RC was the young ones’ first choice being preferred most in the age group 12-19 Virgin Cola was the fifth choice among CSDs, being more popular with SEC A and B and female consumers. There was some preference for only this variant of Virgin while there seemed to be little interest in the others. The age group 35-39 did not seem to care much about any variant of Virgin . Brand purchase The most purchased brands were RC and Coca-Cola followed far behind by 7-Up and Virgin. Fig: 9.43 Most purchased Brand Most purchased Brand 40 35

35.9

33.2

30 25 20

Series1

15 9.5

10 5 0

6.6

5.1

3.9

3.8 0.1

RC

Coke

7-Up Virgin Sprite

Uro

Pepsi Fanta

Table: 9.40 Substituted brands In the absence of the preferred brand at the outlet, Coca-Cola came out to be the number one substitute brand followed by RC, Sprite, Pepsi, up and Virgin in that order.


Fig: 9.44 Sustituted Brands Substituted Brands 35 30 25 20

Series1

33.1

15

20.5

10

11.4

5

11.3

9.5

5.4

0 Coke

RC

Sprite Pepsi

7-Up Virgin Cola

4

1.2

Uro

Fanta

Place of consumption and Pack preference Fig: 9.45 Place of Consumpution Place of Consumuption 100 80 60

91.8

pi ng

3 ss i

tp la y ile

go

llg tc o A

11.9

A

e

13.9

W h

ile

18.9 l

w or k A t

e th om A

22

Tr av ei in g

25.7

0

ts ch oo

20

A

40

W h

CSD is consumed most at home, mentioned by 92% of the Series1

respondents, lager pack being more popular. At work/ school and while traveling are the other important place of consumption. Popular packs at different place of consumption can be seen from the following matrix : Place consumption

of Response frequency

Popular Packs

At home

92%

1 lit,1.5 lit, pet and 1 glass (Figure??)

At work

26%

While traveling

22%

1 lit, pet, 250 ml glass and pet, 500 ml pet Can Can


At school /college

33%

Can, 250 ml glass, 1 lit pet and glass

At play

12%

Can , 1 lit pet, 250 glass and pet

Table: 9.41 Time of consumption CSD consumption seemed to be the most during mid afternoon (after lunch and before evening), irrespective, of SEC, age sex and area. They only peculiarity seemed to be in Khulna and Rajshahi where more than 50% of consumers seemed to drink CSds at night w ith approximately a third of the total having a drink late at night before retiring. Women appeared to drink CSDs at lunch more than men while larger number of men seemed drink CSDs during mid morning than women (in between breakfast and lunch) Almost 50% of the consumers appeared to drink CSDs during lunch Overall the tendency to drink CSDs at night ( at dinner or after seemed to be relatively low. Fig: 9.46 Time of consumption Time of Consmusption 45 40 35 30 25 20 15 10 5 0

41.8

34.1 22.4

15.5 2.5

Lunch

Mid morning

Dinner

After dinner BreaK fast

0.7 Mid night

Series1

CSD Purchase habits Brand switching and the reasons for the same Brand switch between brands purchased most in the last one month to brands purchased last was not noticed much. However, whatever switch took place was mainly due to the nonavailability of the most purchased brand. Some switching took place also to try out new brands. The tendency to switch for trying out a new brand seemed to be more among the SECA A and B consumers. It second that more men would switch to try out a new brand than women would.


Among the different age groups only those between 16 and 19 had switched more to try out a new brand than for any others reason. Purchase frequency It seemed by and large that most consumers of soft drinks would buy the drinks about 2-3 times a week. The only exception was among the SEC C consumers. Most in this class would buy the drinks once in every fifteen days. Men appeared to buy soft drinks more frequently that women. As perhaps expected urban consumers would buy soft drinks more frequency than semi urban/semi rural consumers. More people in Dhaka seemed to buy soft drinks about 2-3 times a week than anywhere class in the country. Table 9.42 Most consumers of Chittagong and Rajshahi seemed to buy soft drinks once in a week. Purchase Total By SEC frequency Base 1000 SEC A SEC B SEC C 2/3 times per 28.9 136 136 402 week Once per week 23.0 32.2 34.7 23.5 Once per 15 18.7 days 4/5 times per 15.4 week Once a month 8.7

23.8

22.0

22.5

14.9

16.3

23.6

17.0

12.5

14.9

Everday

4.2

6.7

9.4

10.4

1.0

4.9

5.2

3.2

100.00

0.5

-

1.9

3.67

100.0

100.00

100.0

Less than month Total Mean score

one

Place of purchase Overwhelmingly the usual place of purchase of CSDS was a small localized retail shop more commonly known as a general store. This was the was the case in both urban and semi urban/semi rural areas of the country, among all SECs and age groups. A lot of purchase of CSDs took place in confectionerise (It is possible that some respondents termed the general stores as “ confectioneries� since in most general stores one would get confectionery items like bread, biscuits, cakes and savories.


Quite a bit of CSD purchase to0ok place at fast food/coffee shops. Fig: 9.47 Place of Purchase

Place of Purchase 70

68

60 50 40 30

29.6

10 0 Confectionary

Series1

21

20

1.3 Fast food restaurtant

1 Vending machine

Consumer perception and attitudes Brand perception As a whole, Coca-Cola and RC received higher association with majority of the attributes, indicating better overall perception, as can be seen from the graph overleaf. However, brand wise specific perceptions are as follows: Coca-Cola and Pepsi were perceived to be brands which were available everywhere. CocaCola was also perceived by many as a drink for “outgoing people” and a good quality drink. RC, Virgin and Uro were mostly linked to entertaining advertisements RC was also considered as being available everywhere and being a drink for outgoing people. Virgin also was named as a brand available everywhere and was recognized as being a new drink. Regarding quality consumers perceived a strong relationship with Coca-Cola and RC. The perception was rather low with Virgin. A large number of respondents found Coca-Cola and RC to be “refreshing” drinks along with Pepsi, Sprite and 7 up. Uro, Virgin, Mirinda, Fanta and RC were thought be drinks for children by about a quarter of the consumers. Approximately half of the respondents thought Coca-Cola and RC were drinks for people like them Nearly a third of the people thought Coca-Cola and RC were drinks with a difference only 20% felt that way about virgin and Uro.


Perception Available everywhere For outgoing people Refreshing drink Good quality drink Good quality drink Has an entertaining ad

Brand Perceived by Coca-Cola, Pepsi, RC, All age groups, Virgin, Fanta, Mirinda. both sexes Coca-Cola, RC All age groups, both sexes Sprite 7 up, Coca-Cola, All age groups, Pepsi, RC More men than women Coca-Cola, RC All age groups, both sexes RC, Virgin, Uro All age groups, both sexes Mojo,RC All age groups, both sexes

Table:9.43 However, brand wise specific perceptions are as follows: Image

Brands

Perceived by

Fun

Coca-Cola, Pepsi, 7 Up, RC Virgin (low) RC, Coca-Cola Virgin Uro, Pepsi, 7 up (all low) Virgin, Uro, RC Virgin

All age groups, both sexes

Trendy Modern Cool America n Boring Chidish

Coca-Cola Fanta, Mirinda Fanta, Mirinda Virgin, Uro, RC Virgin, Uro, RC

All age groups, both sexes All age groups, both sexes 16-24 and 30-34 (more from these age groups than women) All age groups, both sexes All age groups, both sexes 12-15,20-39 age groups Men Women

Most people associated almost all the good images to Coca-Cola and RC Though by significantly lesser number of people almost all the good images were also associated to virgin and Uro. Fig: 9.48 Over all rating in 5-point scale Overall rating in 5-point scale Series1 5

4.45 3.88

4

3.5

3.4

3.31

3 2 1 0

Offers a wide choice

Brand for young people

Internationa brand


New Variants sought Various unusal suggestions for new variants, such as “hot/spicy”,“chocolate flavour”, “coffee flavour” have been put forward, By far the maximum recommendations have come for various fruit flavorus. The drinks/flavorus which the Virgin consumers would like to see most in future: Mango flavour More fizzay variant Lichy flavoru Chocolate flavour Pineapple flavour Grape flavour Past consumers Reasons for discontinuing Some Brands Overwhelming by the main reason cited for discontinuing brands was “DID NOT TASTE GOOD”. This was the reasponse across all SECs, age groups, sexes and areas. No other response in the whole study has been so unanimous. The next important reason was “high price” which seemed to matter more to the consumers belonging to SEC B and semi urban/semi rural areas, age groups 12-24 and 30-34 and to the women. “Non availability” of the product was another important reason cited for not continuing with the Brand Reasons Base Doesn’t taste good High price Not available in every shop Others don’t like it Quality has deteriorated Doesn’t satisfy Less pungent

Total

By SEC

64.8 40.9 12.8 10.1 9.8 8.0 7.5 7.0

SEC-A 323 43.2 8.8 13.7 6.2 8.6 8.7 5.2

Aware but never tried Reasons for not ever trying Beverage

Table: 9.44 Reasons for not ever trying

SEC-B 93 43.0 19.2 8.7 4.2 4.4 8.8 10.3

SEC-C 232 37.3 15.1 6.4 16.2 8.7 5.5 7.7


Reasons

Total

By SEC SEC-A

SEC-B

Base It doesn’t taste good

648 25.2

323 21.7

93 36.2

SECC 232 25.2

Don’t want to shift brand Not available everywhere Nobody brings it home

23.2

30.2

15.5

19.5

15.3

20.6

6.9

13.1

12.8

11.3

13.7

13.7

High price

12.7

8.2

13.1

16.3

About 18% of those who were aware of the Beverage brand appear not ever having tried the drinks. The reasons cited for this were: 1. “Heard that it did not taste good”: Seemed important to SEC “B” and “C” age groups 16-24 and 30-39, and to women relatively more than men. 2. Did not wish to switch brands :Was the views of SEC “A” consumers and those in age group 16-19, and 25-29. 3. Was not available everywhere : Seemed to be of concern more to age groups 16-24 and 35-39 and to SEC “A” consumers 4. Nobody brought it home : To those in age group 12-15 this was the most important reason for not ever getting to try the brand. 5. High price : “C” consumers and the age groups 16-19 and 25-29, and those in the semi urban/semi rural areas. Interestingly, this also seemed to be a problem with men. Logo Majority reacted positively to the suggested Bangla logo. However, a large number of respondents did not like it much. Fig: 9.49 CSD ads seem-01 60 50 40 58.3

30

Series1

20

34

10

7.8

0

Good

Not so Good

Poor

140 120

120 100

100

80

80

Series1

60

Fig: 9.50 CSD60ads seem-02

40

40

20

20

0

0 Coke

Pepsi

7Up

RC

Sprite

Virgin

Uro


Advertisements of RC was recalled by almost all (96%) respondents belonging to all age groups, sexes, socio-economic classes, and areas. Ads of Coke, Uro, Pepsi and Viging were also highly recalled. Most had reported seeing advertisements of all CSds on television followed by signage’s, print media, posters and billboards. There was hardly any difference in this pattern with regard to sex, SEC, age, and are. Fig: 9.51 Media habit Incidence of watching TV 10

Watch TV Do not watch TV

90

As is clear from the above pie chart more than 90% of the respondents watch television. Viewer ship of TV is relatively more in SEC “A” and “B”, in the age groups 12-15 and 3539, and among the women. As is expected more people in the urban areas watch TV than in the semi-urban/rural areas. Going by region TV viewership was greater in Dhaka and Khulan regions compared to the other parts of the country As can be seen in the graph below 100% of the consumers of Beverage watch TV. As RC, Coke and102 Pepsi are more widely available, including in semi-urban and rural areas, there is 100 a section 100 of its consumers who do not watch TV. 98

98

96

96

94

94

92

92

Series1

90

90

88

88 86 84 82 Coke

RC

Pepsi

7 Up

Sprite

Virgin

Uro


Fig: 9.52 TV viewing time 80

80 70

70

60

60

50

50

40

40

Series1 Series2

30

30

20

20

10

10 0

0 1

0 2

0 3

0 4

0 5

6

7

8

9

TV viewing time By and large bulk of the viewing takes place between 7 pm and 10 pm A significant number of the CSD consumers seemto watch TV even after 10 pm Interestingly about a quarter of the women respondents reported watching TV beyond 1 am Looking at the TV viewing habit of the CSD consumers by brand there is hardly any difference in the picture Fig: 9.53 TV viewing time TV channels watched 90 80 70 60 50 40

Series2 80

30

70

Series1

80 50

20

40

10 0

0 1

0 2

0 3

0 4

5

30

6

20 7

10 8

0 9

Despite the influx of satellite channels BTV (terrestrial and non-satellite) remains the most watched channel among the CSD consumers. This has more to do with the reach of the satellite channels than with programme preferences. For the same reason perhaps BTV is watched more in the semi-urban/rural areas (81%) than in the urban areas (69%).


Channel is the next most watched channel followed by ATN and Star Plus More men than women seem to watch Channel I, and more women than men watch ATN. There is hardly and differnce in the picture looking at it by CSD brands Fig-9.54 Programmes watched regularly 90

80

80

70

70

60

60

50

50

40

40

Series1 30

30

20

20

10

e s G a m

d i H in

a l ic u s M

S T V

a g a M

e ri a

zi n e

w s N e

li e n g a B

D ra m

a

0

l

10

Drama appeared to be the most popular TV programme followed Bengali Cinema. News and Magazine porgamme. Strangely even children as young as 12- 15 years old watched TV drama more any other progamme News is watched more by the older segment of the population – approximately 50% of the 30- 39 years age group. While significantly lager number of women (39%) the men (25%)watch Bengali cinema, significantly lager number on men (37%) than women (26%)watch the news programmes. The ratio of watching Bengali cinema is more in the semi – urban / rural areas (40%)than in the urban (29%). The percentage of Begali cinema viewers is significantly larger in Chittagong, Khulna, Rajshahi areas (over 35%) than in Dhaka (28%). Similarly significantly larger number of people in Dhaka (37%) watch the News than in the other parts of the country (between 23% 27%). Relatively a larger number or pepole in Chittagong and Khulan (over 35%) watch the magazine programmes (app. Such programmes do not appear to have much appeal in the Rajshahi area) Going by CSD brands whiled the greater segment of all consumers of all brands watch TV drams more than any other programmed, it seems that larger number of the Coke, Sprite, Uro and virgin consumers watch News10more than Bengali cinema. The extent of magazine programmes viewing is more or less the same by all consumers. Fig: 9.55 Incidence of radio listening

Do not listen to radio Listen to radio

90


Only 14% of the respondents reported listening to the radio with the incidence being higher in the semi-urban/rural areas (20%) than in the urban (10%) Relatively more people in Dhaka and Rajshahi (16%-17%) listen to the radio than in the other parts of the country (approximately 8%) The highest radio listening is among the 7 Up, RC, and Coke consumers (15%-17%) Radio listening is rather low by the Virgin consumers (10%). Which most of the listening is done between 12 pm, men listen to the radio more in the morning (6am-9am). Dhaka-Kha is the more preferred radio station. Fig: 9.56 Newspapers read 30

30 25

20

20

15

15

Series1 Series2 10

10

5

5 0

0

025%

0

0

0

1

2

3

4

5

0 6

7

Out of the 21 Daily news pares mentioned as being more or less regularly read only one The Dialy Star is in English. All others are Bengali. Only 0.2% of the total respondents reported reading The Daily Star regularly. Virtually across all levels and in all areas Protho Alo followed by Jugantor, Ittefaq, Jonokontho and Inqilab are the most regularly read newspapers. For some reason the difference is in the age group 25-29 where Prothome alo is followed by Ittefaq, Jugantor, Inqilab and Jonokontho.


Newspapers are read more by men than women and more in the urban than semi-urban/rural areas. While Prothom Alo is the most regularly read Daily by consumers of all brands it seems that Virgin consumers read the Ittefaq more regularly than Jugantor. Periodicals and magazine read The study has revealed that the readership (weeklies/fortnightles/monthlies) are rather low. The most regularly read periodicals/magazines are:

of

periodicals

and

magazines

Alpin, Bicchu, Jai Jai Din, Sanonda, Anondo Lok, Purnima Fig: 9.57 Outdoor ads/shop facials noticed

45

Yes No

55

The above graph represents the overall picture across almost all levels, and sexes, However, it seems that the outdoor ads and shop facias are noticed by a relatively lesser number of people (approximately 55%) in Chittagong and Rajshahi. The consumers of RC also seem to have noticed such material less than the consumers of other brands (65% vs over 70%) Fig: 9.58 Incidence of watching movies at cinema halls 10

Yes No

90

More 90% of the people across levels, categories and areas do not go to cinema halls to watch movies Relatively more men (11%) go to cinema halls if at all than women (01%) Cinema hall goers are relatively more in urban than in semi-urban/rural areas


Almost 100% of those in Chittagong do not seem to go to cinema halls Cinema hall going seems to be relatively more amongthe Mirinda and Virgin consumers Among those who do go to cinema hall most (about 63%) do so on an average once in a month About 26% of those who go to cinema halls do so more than once in a month Looking at the picture by CSD brand consumers among the virgin consumer 78% of the cinema goers go once a month a month to the cinema halls. This is higher than the frequencies observed in all other brand consumers. Brands (usually) available at shop Coca-Cola and RC at more than 90% of the shops Sprite and 7Up at more than 80% to 90% shops Pepsi, Uro Cola and Virgincola at less than 80% of the shops More than 95% of the shops would have the I lit pet bottle of the CSDs The 1 lit pet bottels of Coca-Cola, Pepsi, RC Cola, RC Lime, virgin cola would (usually) be available at more than 90% of the shops Brands stocked/available at shop At time of the survey more than 50% of the shops had Coca-Cola in their stock most of it being in Dhaka RC Cola was available at 24% of the shops most of which were in Dhaka Rc Cola was available in more semi urbas semi rural shops than in urban RC and Coca-Cola seemed to be available in the same number of shops in Chittagong 7 Up and Pepsi were available at less than 10% of the shops Only 2% of the shops had Virgin Cola most of which were in the urban areas. It appeared that relatively more shops in Chittgong Stocked the brand than in Dhaka Reasons for stocking The single most important reason for stocking a brand would be its demand in the market. Clearly quick turnover was more important than anything else. Among the other far less important reasons for stocking a brand the following were of some significance: Refrigerators provided for showeasing/keeping the brand Good quality Alwasy available Sales incentive (two bottles free with each case) Seasonality of Stocking Mostly between April and September. Brands sold most The picture was almost similar to that of “brands stocked�. Coca-Cola was the highest selling brand followed by RC Cola, 7 Up, and Pepsi. Sales of Virgin Cola, Uro Cola, was reported to be very low. Reasons for selling most Good taste High demand

: :

Coca-Cola, RC Cola RC Cola, Coca-Col, Sprite, Pepsi, virgin


Good quality

:

RC Cola, Pepsi Coca, 7 UP

Most profitable brand Coca-Cola RC Cola 7 Up Pepsi Uro Cola Virgin Cola Mojo Lemu Sprite Fizz Up Chaser Reasons for being profitable Fast moving (quick turnover) More cornmission/bonuse Price to trade is low Tendency to promote septic brands More than 60% reported that would not promote a specific brand on their own Approximately 36% suggested they would promote a spefic brand under the following circumstances: If the brand asked for by the customer was not available If a brand was more profitable Availability for sample stocking Are sales promotion programmers by companies effective and how? Nearly 90% felt that salse promotion schemes by companies were effectives as those resulted in: Increased sales Attacted consumers to the brand Most effective sales schemes/suggestions for new schemes Search cards for consumers Prizes for volume purchases by consumers More free bottles/per case for traders Free gifts/bottle MARKET SHARE

VI R GI N L EM ON 5% M OU N T A I N D EW

Chart- 9:01 Market share of the Lemon beverage companies in Dhaka City is shown in the 12 % following chart. R C LEM ON 52% U R O L EM ON 3 1%


Interpretation It is clear from the chart that RC Lemon Company has the leading share of the market (52%). But it is not the current demand for RC Lemon in Dhaka City. URO Lemon has 31% share of the market. Mountain dew has the third largest share in Dhaka Lemonade market after URO and RC. However, Mountain dew URO are playing substitution role in Dhaka market, as RC Lemon is not available in the market often. Because production is much more lesser than the demand. Chart: 9.2 The following chart shows the zone wise market share of the Beverage Companies. MARKET SHARE (ZONE WISE )

100% 90% 80% 70% 60% M K T SH A R E

50% 40% 30% 20% 10% 0% Z-1

Z-2

Z-3

Z-4

Z-5

ZO N E

RC LE M ON

URO LE M ON

M OUNT A I N DE W

V I RGI N LE M ON

Interpretation Every zone showed that RC Lemon leads the market share in the lemon beverage market. URO Lemon is in the second; Mountain Dew is nearest to URO Lemon having only two sized bottles. Identification of Customers The following sections will try to identify the customers of Lemon beverage by bottle size, age and occupations.


Identification by Bottle Size Demand for 1 Litre, 500 ml bottles and can reflects the customer's choice. The demand is estimated by the sales of the retailers. This finding will help Partex Beverage to make marketing strategy for each size of bottles. Table: 9. 44 Bottle wise market share of lemon beverage are shown in the following table: BOTTLEWISE ARKET SHARE 1.5-2 LITTER 1 LITTER 200-500 ML CAN TOTAL RC LEMON 0.00% 64.09% 52.48% 57.74% 51.07% URO LEMON 54.24% 26.51% 26.72% 42.26% 31.15% MOUNTAIN DEW 45.76% 0.00% 14.74% 0.00% 12.29% VIRGIN LEMON 0.00% 9.40% 6.06% 0.00% 5.50% Interpretation The above table clearly shows that market Share of RC Lemon for all sizes. Consumer Preference: Bottle wise CONSUMER PREFERENCE - BOTTLE WISE BOTTLE TYPE 1 LT 500 ML CAN

% 25.00% 45.00% 30.00%

Interpretation Demand for 500ml PET bottles of RC Lemon is 45%. It clearly indicates that company should change their plan in order to increase sales of 1 liter PET bottles. First Preference among brands according to According to SEX consumers BRANDS MALE (%) FEMALE (%) COKE 13 11 SPRITE 9 5 PEPSI 7 5 RC COLA 10 2 RC LEMON 6 3 MOUNTAIN DEW 4 2 7UP 4 1 URO LEMON 2 2 ANY LEMON FLAVOUR 3 1 FIZZ UP 1 1 URO COLA 2 0

Among total respondents TOTAL (%) 24 14 12 12 9 6 5 4 4 2 2


ANY COLA FLAVOUR VIRGIN COLA VIRGIN LEMON TOTAL

0 0 0 61

2 2 2 39

2 2 2 100

Interpretation The respondents are regular drinkers of soft drinks. 24% of the respondents first choice is Coke. RC Lemon is in the fifth position for the first preference. URO Lemon is in the 8th position as 4% of the respondent's first choice URO Lemon. Surprisingly Mountain Dew is in 6th place as they are scoring goals in open field regarding the fact that RC Lemon production is less and supply is not up to the mark 39% of the respondents are female so clearly female likes Lemon more that male. First Preference among flavour according to According to SEX consumers FLAVOUR MALE (%) FEMALE (%) COLA 52.46% 56.41% LEMON 26.23% 28.21% LIME 21.31% 15.38%

Among total respondents (%) 52 29 19

Interpretation According to the respondents there is a very good market for Lemon beverage. 29% prefers Lemon as their 1st choice. And 28.21% of them are female. consumer preference among Among total lemon brands irrespective of According to SEX respondents the first preference BRANDS MALE (%) FEMALE (%) (%) RC LEMON 81.97% 64.10% 75 URO LEMON 3.28% 5.13% 4 FIZZ UP 1.64% 2.56% 2 MOUNTAIN DEW 4.92% 5.13% 5 VIRGIN LEMON 0.00% 5.13% 2 ANY LEMON FLAVOUR 3.28% 0.00% 2 DOESN’T PREFER LEMON 4.92% 17.95% 10 ATALL

Interpretation


Those respondents' first preference is not Lemon drinks but asked among Lemonade which drink is preferable 75% of them answered positively for RC Lemon. And 81.97% of them were male. Table: 9.45 Identification by Age: The respondents for this study were regular drinkers of beverages. Among the 100 respondents, the following observation were found. First Preference among brands AGE GROUPS (IN %) according to AGE GROUP BRANDS

0-9 0 0 2 0 2

COKE SPRITE PEPSI RC COLA RC LEMON MOUNTAIN DEW 0 7UP 0 ANY LEMON FLAVOUR 0 URO LEMON 0 ANY COLA FLAVOUR 0 FIZZ UP 0 URO COLA 0 VIRGIN COLA 0 VIRGIN LEMON 0 Total 4

10-19 1 5 2 0 2

20-29 20 0 7 3 3

30-393 7 0 4 2

40-49 0 1 1 3 0

50-59 0 0 0 2 0

59+ 0 1 0 0 0

2 0

4 0

0 3

0 2

0 0

0 0

1 2

0 2

0 0

1 0

2 0

0 0

0 0 0 0 0 15

0 0 2 2 2

2 1 0 0 0

0 1 0 0 0

0 0 0 0 0

0 0 0 0 0

45

22

9

4

TOTA L 24 14 12 12 9 6 5 4 4 2 2 2 2 2 1

Interpretation Respondent's first preference among brand according to age group is shown in the table.Among 100 respondents, Coke is preferred by 24 consumer. RC Lemon is preferred by 9 out of 100 respondents. And 3 of them having age 20-29. So it is clearly observed that RC Lemon is popular among all the brand and lemonade drinks.

Table 9.46 Age Group


First Preference among flavour AGE GROUPS according to AGE GROUP FLAVOUR 0-9 10-19 20-29 30-39- 40-49 50-59 59+ COLA 50.00% 20.00% 75.56% 40.91% 44.44% 50.00% 0.00% LEMON 50.00% 46.67% 24.44% 13.64% 22.22% 50.00% 0.00% 100.00 LIME 0.00% 33.33% 0.00% 45.45% 33.33% 0.00% % Fig: 9.59 Age Group 120.00%

100.00%

RC LEMON

80.00%

URO LEMON FIZZ UP MOUNTAIN DEW

60.00%

VIRGIN LEMON ANY LEMON FLAVOUR DOESN’T PREFER LEMON ATALL

40.00%

20.00%

0.00% 0-9

10-19

20-29

30-39- 40-49

50-59

59+

FLAVOR WISE PREFERENCE ACCORDING TO AGE GROUP

100%

90%

80%

70%

60% LIME 50%

LEMON COLA

40%

30%

20%

Fig: 9.60 Flavor Wise Preference Accouring to Age Group 10%

0%

0- 9

10- 19

20-29

30-39-

40-49

50-59

59+

LIME

0.00%

33.33%

0.00%

45.45%

33.33%

0.00%

100.00%

LEMON

50.00%

46.67%

24.44%

13.64%

22.22%

50.00%

0.00%

COLA

50.00%

20.00%

75.56%

40.91%

44.44%

50.00%

0.00%

AGE GROUP


AGE GROUP preference among lemon brands AGE GROUPS irrespective of the first preference BRANDS 0-9 10-19 20-29 30-39100.00 66.67 71.11 86.36 RC LEMON % % % % 13.33 URO LEMON 0.00% 4.44% 0.00% % FIZZ UP

0.00% 0.00% 0.00% 4.55%

MOUNTAIN DEW VIRGIN LEMON 120.00%

0.00% 6.67% 8.89% 0.00% 0.00% 0.00% 4.44% 0.00%

ANY LEMON FLAVOUR

0.00% 6.67% 0.00% 0.00%

DOESN’T 100.00% PREFER LEMON 11.11 0.00% 6.67% 9.09% ATALL %

40-49 50-59 59+ 66.67 100.00 0.00% % % 0.00% 0.00% 0.00% 11.11 % 0.00% 0.00% 11.11 % 11.11 %

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

100.00 %

RC LEMON

80.00%

URO LEMON FIZZ UP 60.00%

MOUNTAIN DEW VIRGIN LEMON ANY LEMON FLAVOUR

40.00%

DOESN’T PREFER LEMON ATALL

20.00%

0.00% 0-9

10-19

20-29 30-39-

40-49

50-59

59+


Table: 9.47 Identification by occupation First Preference among brands according to OCCUPATION OCCUPATION BRANDS student business COKE 12 3 SPRITE 5 4 PEPSI 9 1 RC COLA 1 6 RC LEMON 7 0 MOUNTAIN DEW 6 0 7UP 0 2 URO LEMON 4 0 ANY LEMON FLAVOUR 1 1 FIZZ UP 0 1 URO COLA 2 0 ANY COLA FLAVOUR 0 0 VIRGIN COLA 1 1 VIRGIN LEMON 2 0 Total 50 19

First

Preference

among OCCUPATION

service 9 2 2 4 2 0 2 0 1 0 0 1 0 0 23

h.wife 0 3 0 1 0 0 1 0 1 1 0 1 0 0 8


flavour according OCCUPATION FLAVOUR COLA LEMON LIME

to student 50.00% 40.00% 10.00%

business 57.89% 10.53% 31.58%

Preference among lemond brands according to OCCUPATION OCCUPATION BRANDS student business RC LEMON 70.00% 84.21% URO LEMON 8.00% 0.00% FIZZ UP 0.00% 5.26% MOUNTAIN DEW 10.00% 0.00% VIRGIN LEMON 4.00% 0.00% OTHER LEMON FLAVOUR 2.00% 0.00% DOESN’T PREFER LEMON 6.00% 10.53% ATALL

service 69.57% 13.04% 17.39%

h.wife 25.00% 25.00% 50.00%

service 78.26% 0.00% 0.00% 0.00% 0.00% 4.35%

h.wife 75.00% 0.00% 12.50% 0.00% 0.00% 0.00%

17.39%

12.50%

Fig:9.6 1 PREFERENCE AMONG LEMONADE ACCORDING TO OCCUPATION

h.wif e

RC LEMON URO LEMON FIZZ UP MOUNTAIN DEW VIRGIN LEMON OTHER LEMON FLAVOUR DOESN’T PREFER LEMON ATALL

servic e

busines s

studen t

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %


Fig:9.62 Factors of RC Lemon Preference Factors of RC Lem on Preference

40%

Cheaper

Low fat

0%

Help in digestion process

0%

No artificial Color

12%

Bitter taste

0%

Taste Good 0%

48% 10%

20%

30%

40%

50%

60%

%

The above chart refers to question No. 8 from Questionnaire for the outlets. Availability of the Lemon beverage products in Dhaka City Availability of the products can also be expressed in terms of supply of the products. Availability shows how available the product is in the market. So it is directly related with the supply of products, which actually satisfies the demand. Moreover, a sufficient supply can be done through an effective distribution system. Therefore, availability of the Lemon beverages of different companies in Dhaka City depends on the demand in the particular areas and the effectiveness of the distribution system of the companies. It is expected that the areas having higher demands of a product should have adequate supply of that product. So the product should be available in those areas. On the other hand, availability of a particular product in a particular area can increase the demand for that product in that area. The following table shows the availability of the Lemon beverage products in the Dhaka Market. BRAND WISE AVAILIBILITY PRODUCT % RC LEMON 100 URO LEMON 100 MOUNTAIN DEW 75 VIRGIN LEMON 25


Fig : 9.63 Availability of Lemon beverage

Availability of Lemon beverage 8% 34%

25%

RC LEMON URO LEMON MOUNTAIN DEW VIRGIN LEMON

33%

Interpretation From the chart it is clear that RC Lemon & URO Lemon products are available in 100% of the outlets in Dhaka City. Whereas the availability of Mountain dew is 75% and Virgin Lemon is very poor. Their low demand and weak distribution system might be the cause for this. Table: 9.48 Constant availability of the Lemon brands. DISTRIBUTOR SUPLLY TO SHOPS WHICH HAS THOSE PRODUCTS PRODUCT % RC LEMON 0 URO LEMON 100 MOUNTAIN DEW 100 VIRGIN LEMON 100 Interpretation Clearly RC Lemon is not found always in the shop. Once in a weak the retailers get RC Lemon where as the demand is very high so substitute product URO Lemon and Mountain dew covers the gap place. Policy of the beverage companies regarding pet bottles In the beverage business, the companies often face problems with burst and broken bottles, which is a regular phenomenon in the business. Since most of the soft drinks are carbonized (CSD) products, heavy shake of the bottles causes burst of bottles. As a result the shopkeepers or the distributors face shortage of bottles. Partex beverage though that it is time that they should introduce pet bottles in the marker. PET is a popular package for food and non-food products because it is inexpensive, light weight, re-salable, shatter resistant and recyclable. More and more, the food and drink industry is using a plastic resin PET to replace glass as the preferred material for containers. Over the years, this trend has developed in the


packaging arena, specially, the use of PET plastic bottle. The marketing of beverage in PET bottles has started and is here to stay. Coolers in the beverage business Coolers play an important role in the beverage market, Beverage is a kind of product, which is taken cool most of the time. Therefore the retailers must have a cooler to keep the beverages cold. But the coolers in this country are expensive and an ordinary shopkeeper cannot afford to buy a cooler. Keeping this in mind some of the beverage companies have taken the initiative to provide coolers to the retailers. The coolers are attractive and have the company logo and color on them. The companies distribute the coolers on the basis of a retailer's sale. To get a cooler from a company, a retailer has to deposit a refundable amount to the respected companies. The amounts vary from four thousand to six thousand Taka depending on the cooler size and capacity. This cooler distribution is another promotional activity of the beverage companies. The traders become more interested when the companies offer such things. Moreover, the coolers are given to the retailers on the condition that the retailers can not keep other company’s products in their coolers. As a result, attracted by the offer the retailers keep the products, which ultimately promote the sales of the company. Again the bottles are displayed in the coolers and advertise themselves.In the beverage market, RC Lemon's promotional activities is not good. The numbers of existing coolers of these companies in Dhaka market are given in the following. From the survey it is found that most of respondents showed negative attitude towards coolers, only the known people get coolers. Quantitative Aspect Monetary Enticement Received Monetary Enticement Findings Total no. Respondents 14 14 14

of

the

Monetary enticement Commission Profit Bonus

Frequen cy 14 0 0

Perce nt 100% 0% 0%

Valid Percent 100% 0% 0%

Analysis: Beverage Companies arrange commission for all the distributors. Distributors are not getting any profit or bonus from the manufacturer. All distributors said that they only receive commission from the Beverage Companies.


Received M onetary Enticement 15

10 Frequency 5

0 Commission

Profit

Bonus

Graph : Received monetary enticement chart Relationship between "Commission" and "Effort"

Findings Total no. Respondents 14 14 Total

of

the

Comment Yes No

Frequenc y 14 0 14

Percen t 100% 0% 100%

Valid Percent 100% 0%

Table :9.49 Relationship table between commission and effort Analysis All distributors tried to cover a big market for more selling of SDI's produces and with out giving effort it's not possible. Distributor's effort made their profit, but some time the level of effort was not satisfactory level. If the distributors will get more monetary enticement from the manufacturer, it should be motivate them for giving more effort to sell more manufacturer product. 100% of the distributor gave their opinion that they think, there have a relationship between commission and effort. Fig: 9.64 Relationship Chart Between Commission and Effort


Relationship Chart Between Commission and Effort 120% 100% 80% 60%

Percent

40% 20% 0% Percent

Yes

No

100%

0%

Graph : Relationship graph Reasons, which indicates the relationship between Commission" and "Effort" Finding Total Reason no. of the Respo ndent s 14 If the commission is more, we will try to put more effort because if we get more commission its may generate our profit. 14 Commission motivates us for giving more effort to do business on favor of Beverage companies. Total

Frequency

Percent

Valid Percent

9

64%

64%

5

36%

36%

14

100%

Table : Reasons indicate relationship between " Commission" and "Effort" Analysis All distributors granted that there has relationship between " Commission" and "Effort". Distributors told different reasons for proving this assumption. All their comments are tall in to two general categories. Out of fourteen distributors 64% distributors think that if the commission is more, we will by our level best and will give more effort. Because, if they put more effort more number of quantity will be sold which generate more profit for their business. So, I found that majority of the respondents directly focus about monetary enticement. On the other hand 36% of the respondents think, commission motivates them for giving more effort to do business with SDI’s Ltd. Non-monetary enticements Distributors like for themselves. Analysis:


Non-monetary enticement is a new business policy that bound the channel to the manufacturers. Distributors always demand dress for their salespeople at first because distributors want to motivate their salesmen first. The reason is that a sales man makes sales call for the distributor. Out of fourteen distributor 93% of the respondents choose all the non-monetary enticement for them form the list. 93% Distributors want dress for their sales people, transportation facility from Global Beverage Com. Ltd. back up service, and training program for their sales personnel for better selling. Only 7% distributors like dress for their sales personnel. Findings No. of the respondents 14 14 14 14

Non-monetary Enticement Dress for the sales personnel Transportation facility Back up service Training program for the sales personnel All of the above

14

Frequen cy 1

Perce nt 7%

Valid Percent 7%

0 0 0 13 14

0% 0% 0% 93% 100%

0% 0% 0% 93% 100%

Table :Distributors desire ness for non-monetary enticement Relation between motivation and non-monetary enticement Analysis: 100% distributor thinks that non-monetary enticements motivate them and their sales personnel as well. They think they will be motivated by non-monetary enticements because of different reasons. They gave different reason for motivation. Findings No. of Reason the respond ents 14 We will be happy and will be benefited in our business area 14 Its makes our business easy and we will be profitable and motivate as Total well Table : Motivational Reasons

Analysis

Frequenc y

Percen t

Valid Percent

8

57%

57%

6

43%

43%

14

100%


Distributors gave different reasons for their motivation by the non-monetary enticement. we categorized all there reason in to two parts, and made the calculation. If found that, 57% of the total respondents says they will be motivate because they will be happy with the nonmonetary enticement and will be benefited in there business area. Rest of the 43% respondents gave there opinion that its make easy to do business and we will be profitable, so we will be motivate as well. Reasons for motivation

We w ill be happy and w ill be benefited in our business area

43% 57%

Its makes our business easy and w e w ill be profitable and motivate as w ell

Chart : Motivational Reasons Relationships between "Distributors" and " Beverage Industries Ltd." Findings: Total No. respondents 14 14 14 14 Total

of

the

Relationshi p Very Friendly Friendly Formal Very Formal

Frequenc y 4 6 4 Nil 14

Percen t 29.5% 43% 27.5% Nil 100

Valid Percent 29.5% 43% 27.5% Nil

Table : Relation between Beverage companies and Distributors Analysis Relationship always plays a vital role in business area. 29.5% distributors response that the relationship between Beverage companies and them is very friendly and close. 43% respondents say the relationship if friendly with the Beverage Companies. And another 27.5% of the distributor lead formal relationship with Beverage Companies.

Fig: 9. 65 Business Relation Between SDI and Distributors


Business Relation Between SDI and Distributors 50.00%

43%

40.00% 30.00%

28.50%

28.50% Percent

20.00% 10.00% 0.00% Very Friendly

Friendly

Formal

Graph : Business relation chart between SDI & Distributors Communication gap between SDI & distributors Analysis Different type of communication gap can be play in business area, specifically in channel of distribution. This communication gap can be adequate of understanding or its may be official gap between the manufacturer and distributors. 64% distributors face communication gap between SDI and them. Distributors face communication gap during promotional activity and during any program period. Its can be consumers program or retailers program. Some times official fail to understand distributor's problem and they think that the problem is false or different program with out discus with the distributors. But 36% distributors deemed that they are not facing any communication gap between manufacturer and them. Table: 9.50 Findings Total No. respondents 14 14 Total

of

the Yes No

Frequenc y 9 5 14

Percen t 64% 36% 100

Valid Percent 64% 36%

Fig : 9.66 Communication gap table between Beverage companies & distributors Com m unication gap

No 36%

Yes Yes 64%

No

Graph : Communication gap chart between Beverage companies & distributors.


Thinking about good communication, which is a motivational factor in business area between Distributors and Manufacturer. Analysis All distributors agree with this point that good communication is a motivational factor in business area, specifically in the way of product distribution. All distributors gave different reason, what motivate them if there have a good communication between SDI and them.So in my findings we found that 100% of the distributors think that if there have a good communication between companies and distributors that will make them more motivated for doing more jobs for the manufacturer. Reasons for thinking about good communication that is a motivational factor in business. Findings Total No. of the Respondents 14

14 14

Reasons for motivation

Frequenc y

Perce nt

Its makes a comfortable business environment to do business with Beverage companies and it will be motivate and try for level best We will be benefited in our business field by learning new technique and opportunity If Beverage companies continue a good communication with Beverage companies, I think that they care and think about me and my business as well.

6

43%

Valid Percen t 43%

5

36%

36%

3

21%

21%

14

100%

Total Reasons for motivation through good communication Analysis

After completed all the questionnaire survey, we categorized all the reasons in to three divisions. I found that all the answers are little bit similar with each other. My findings focus that 43% of the total respondents think that good communication makes a comfortable business environment between Beverage companies and the distributors and they will be motivated and try their level best. 36% of the respondents think that they will be benefited in their business field by learning new business techniques and they will make new business opportunity. Rest 21% distributors think that if Beverage companies continues a good communication with them, they think that they will care to distributors and think about them for their business as well. Relationship maintaining criteria with distributors Analysis


By different way a manufacturer company maintains relationship with his distributors. It can be by forcing legal power. After data collection ad prepared calculation I found that 93% of Various companies distributors gave the opinion that Some companies maintain relationship with them by enforcing legal power. Company maintain relationship with them by combination of all. Findings Total no. of the respondents 14 14 14 14

Relationship maintaining way By Threatening By Rewarding By Enforcing Legal Power Combination of all above

Total

Frequency

Percent

Valid Percent

Nil 13

93%

93%

1

7%

7%

14

100%

Nil

Graphical chart for visual the relationship maintaining way Fig: 9. 67 Relationship maintaining way Relationship maintaining way 100% 80% 60%

Percent

40% 20% 0% By Theatening

By Rew arding

By Enforcing Legal Pow er

Combination of all above

Geographical chart for visual the relationship maintaining way Awareness periods during any program or promotional activity. Analysis Distributors worked for the manufacturer as an angle in the market. It's the right to the distributor to know about different upcoming program for the retailers, distributors on for the end users. Fortunately or unfortunately distributors of the global beverage's never aware of it from the beginning. All the respondents gave their opinion that they knew about any program just before start the programs, which fall them in to deep trouble in to the market during distributional operation.


Findings Total No. of the Respondents 14 14 14 Total

Awareness Period

Frequency

Percent

Valid percent

Just Before Start the Program From the beginning of the Program Others

14 Nil

100%

100%

Nil 14

100%

Table :9.51 Awareness period during program period. Awareness Period Before Start Program 120% 100%

100%

Just Before Start the Program

80% From the beginning of the program

60% 40% 20% 0%

Others 0% Just Before Start From the the Program beginning of the program

0% Others

Awareness period Distributors feelings as an authorized distributor of SDI companies Analysis People's satisfaction and dissatisfaction answer the question of people's feelings 36% of the respondents are very proud as a distributor of some Beverage Beverage Companies, but majority of the distributor 50% just happy as a distributor of The company. 14% of the distributors hold the distribution ship only for making money.


Findings Total no. of the Respondents

Feelings

Frequency

Percent

Valid Percent

14

Very Proud

5

36%

36%

14

Just Happy

7

50%

50%

14

No. I hold tem for making money

2

14%

14%

14

100%

Total

Distributors feelings as an authorized distributor of Beverage companies. Frequency Percent 60% 40%

Frequency Percent

20% 0% Very Proud

Just Happy

No I hold them for making money

Graph : Distributor's proud ness chart Training program for the distributor's sales personnel. Analysis Some Beverage Companies never arranges any training program for the distributor's sales personnel. Distributors Club Analysis Beverage companies have no distributors club or distributors never process any club for support their activity. Action take by Beverage companies against distributor incase contract criteria .

of

failure to fulfill any

Analysis 57% respondents think that if once they failed to fulfill any criteria on the contract of company will sue their company and terminated the relationship. On the other hand 43% think they will be looking forward for their apology and compensation.


Findings Total No. of the Respondents 14

14

14

14 Total

Action should be taken against Distributor Sue your company immediately and terminated relationship Will be looking for your apology and compensation Will understanding and helpful to make things fine gain Ohters

Frequency

Percent

Valid Percent

8

57%

57%

6

43%

43%

Nill

Nill 14

1

100%

Table : Distributors thinking about the action can taken by Beverage companies incase of failed to fulfill contract criteria Qualitative Aspect Distributors Point of View All the distributors talked with me very frankly and told me that this is the second time someone came from company to talk with them about their problem, satisfaction level and motivational factor. So, all of them were very friendly with me and helped me for my project study. They also gave me lots of information about the SDI’s channel of distribution. Firstly, we talked about their level of satisfaction with the monetary enticement what they received from Beverage Companies. They told me that they got only 4.15% commission from the companies, which is not sufficient for them, but they were worried to give the answer for the question. Some distributors were not satisfied but they gave the answer that the commission is moderate. All the distributors' way of thinking is little bit similar in case of commission and effort. They said if we got more commission, why we do not put our level best effort? No doubt, we will do it, because of receiving more commission and in case of motivation.SDI's distributors received nothing as non-monetary enticements accept free cost of delivery. All the distributor thought non-monetary enticement motivate them for giving more effort and motivate their sales people as well. They think they will be benefited and happy by different non-monetary enticement. Distributors also think that non-monetary enticement makes their business easy


and profitable. Like dress for the sales people, transportation facility during Eid festival or training program for their sales personnel. Distributors think that good communication between Beverage companies and them is a strong motivational factor in the business field. They gave me some reason for that, firstly majority of them gave their opinion that good communication makes a comfortable business environment between company and distributors. Secondly, by the good communication distributors can learn new ideas and business techniques what make them benefited in their business field. Other group of distributors said that if company continue a good communication with us than it will motivate us because we can thank that company care and think about our business. Retailer's data analysis and presentation findings . Quantitative Aspect Retailer's selling different manufacturers product. Findings Total No. of the Respondents 70 70 70 70 Total

No. Of the manufacturers product a retail store sold 1 2-3 4-5 More than 5

Frequency

Percent

Valid Percent

Nil 20 44 6 70

29% 63% 8% 100%

29% 63% 8%

Different manufacturer's product sold by retailers This data proved that these retailers sold Beverage products and capable in differentiate and compare different topic with Beverage's product and different distributor's product as well. After calculation we found that there has not a single retailer who only sold specific Beverage company product. So, we confirmed that retailer's data is useful for my survey purpose. we also found that 29% of the total respondents sold 2 to 3 types of soft drink, 63% sold 4 to 5 types of soft drink into their retail stores and only 8% of the retailers sold more than 5 types of soft drink.


Types of soft drinks sold by Retailer 100%

1

80% 63%

60% 40%

2 to 3

4 to 5

29%

20% 0%

8%

0% 1

2

3

M ore than 5

4

Graph : Quantity of the retailers sold different type of soft drink. Monetary enticements received by retailers ( In General) Analysis All the soft drink manufacturers or eagle distributors gave their product to the retailer as profit basis. All the respondents (100%) gave their answer that they received profit from all the manufacturers. Rating Beverage companies monetary enticement received by the retailers. Findings Total no. Of the Respondents 70 70 70 70 Total

Rating about monetary enticement Satisfied Moderate Not satisfied Very Dissatisfied

Frequency

Percentage

Valid Percent

1 27 36 6

10% 39% 51% 9%

1% 39% 51% 9%

70

100%

Table : Retailers rating against monetary enticement. Analysis When the questions arise, "how satisfied a retailer is with the company monetary enticement?" is really a vital area. After all of my calculation, we found that only 1 retailer satisfied out of 70 retailers. 39% retailers gave their answer in favor of moderate and the majority 51% of the total respondents said total respondent said that they were not satisfied with some companies monetary enticement. 9% retailer gave their answer that they were very dissatisfied with some companies profit margin, which they receive as a monetary enticement.


Rating Scale about company Monetary Enticement 60% 50% 40% 30%

Percent

20% 10% 0%

Satisfy

Moderate

Not Satisfy

Very Dissatisfy

Graph :Retailers satisfaction level with the Beverage companies monetary enticement Reasons for satisfaction Analysis Only 4% respondents said that they are satisfied with company monetary enticement for three different reasons and 96% of the total respondent gave their opinion against it. They said that they are not satisfied with the monetary enticement. In this case all retailers gave different reason for not satisfied. we categorized all the reasons in to five parts and it will be discussed in the qualitative part. Comparison of monetary enticements with each other company Analysis Different manufacturers gave different amount of monetary enticement to the retailers. This table and data can easily found the retailers satisfaction level and compare with each others monetary enticement syatem. Total no. of Respondents 70 70 70 70 70 Total

the

Comparison Criteria

Frequency

Percent

Valid Percent

Very Competitive Competitive Moderate Low Very low to compare with others

Nil 1 23 37 9

1% 33% 53% 13%

1% 33% 53% 13%

70

100%

Table :9.52 Comparison of monetary enticements with each other company From here we found that only 1% retailer think that one company monetary enticement is competitive with others. 33% of the total respondents gave their opinion that the profit margin what they receive from Some companies is moderate level. On the other hand 53%


respondents said profit margin is lower than others, 13% of retailers gave their opinion that the profit margin is very lower to compare with each others. Comparison List 60%

53%

50% 40%

33%

30% 20% 10% 0%

13% 0% Very Competitive

1% Moderate

Very low to compare with others

Fig: 9.68 Comparison Chart of soft drink Companies about monetary enticement. Satisfaction level with the non-monetary enticement Findings Total No of Comment Frequency Percent Valid Percent the Respondent s 70 Yes 16 23% 23% 70 No 54 77% 77% Total 70 100 Table :9.53 Retailers satisfaction level with non-monetary enticement . Analysis Where majority of the respondents receive nothing yet, how a majority respondents can says yes when question of the satisfaction level come to the point. we found that only 23% of the total respondents say " yes" they are satisfied with the non-monetary enticement what they receive from company, and 77% of the respondents say “no� they are not satisfied with the non-monetary enticement, what they receive or not from company . There have some reasons behind saying " yes" or " no" those reasons will be discussed and categorized in the next part. Satisfaction level w ith Non-monetary enticem ent

77% Yes No 23%

Graph:Graphical representation of Retailers satisfaction


Different reason for selling Specific company better than others

Product if the non-monetary enticement is

Findings Total no. of the Reasons respondents 70 Its may help me for profit generate ( iF free product we get from the company) 70 Its motivate me and I will put more effort for more Product selling 70 I will be benefited by those nonmonetary enticement. 70 I don't know That what will happened 70 No comment ( may be for busy with the customer) Total

Frequency

Percent

10

14%

Valid Percent 14%

42

60%

60%

7

10%

10%

5

7%

7%

6

9%

9%

70

100%

Table : Reasons for selling more sprcific company’s Product. Analysis Retailers sold different manufacturers product for different reasons. we asked the question to the respondents that if the company’s monetary and non-monetary enticement is better than others what they do. 100% respondents said, they would try to sell more product of the company for different reasons. All the reasons categorized in to five parts. 14% respondents think that it will generate their profit for them. 60% think that it will motivate them for more selling the product. Only 10% think that by the monetary and non-monetary enticement they will by benefited, so they will try for more selling and 7% retailers do not know what will be their action. Rest 9% of the retailers was not able to answer for their shortage of time. Non- monetary enticement revived from Global Beverage Com. Ltd. Analysis


Only 23% retailer received signboard from some companies and 11% respondents received Freeze from another company as non-monetary enticement. No one received all of their nonmonetary enticement. Majority other respondents 66% received nothing from company yet. Even they were not received any single product of that company’s from the distributors. Findings Total no of Respondents

Received non monetary incentive

Frequency

Percent

Valid Percent

70 70 70 70

Free product Sigh Board Freeze All of the above None

Nil 16 8

23% 11%

23% 11%

46 70

66% 100%

66%

70 Total

Calculation about non-monetary enticement with was received by retailer from company’s . Non-monetary enticement received by Retailers 70% 60% 50% 40%

66%

30%

Percent

20% 23%

10% 0%

0% Free product

Sigh Board

11% Freeze

0% All of the above

None

Graph : Non-monetary enticement received by retailers from company’s. What will be the action if the retailer will be the satisfy with company's monetary and nonmonetary enticement. we have taken a company for this analysis as sample (Global Beverage Company Limited) Findings Total no. of Action Frequency Percent Valid the Percent respondents 70 Motivate 37 53% 53% customers for buying more GB's Product


70 70 70 Total

Display more Both Other

1 32

1% 46%

70

100%

1% 46%

Table : Retailer's action. Analysis 53% retailers gave their opinion that they will try to motivate the customer buying more GBCL's product. Only 1% said that they could only display more and nothing else. 46% respondents gave their opinion that they will do both for the GBCL's product. Action taken by retailer 60% 50% 40% 30% 20% 10% 0%

Percent

Motivate customers for buying more GB's product

Display more

Both

Other

Graph : Action chart taken by retailers Qualitative aspect we covered 70 retailers from all the Dhaka metro and Dhaka outer region and minimum five outlets from every distributor point. So, we did a hard job doing my retailer survey part. Firstly we visited distributor's point and then did the survey under their covered territory. Retailers were little bit familiar about the survey procedure. So, they are interested to give the answer. All retailers sold different type of manufacturer's soft drink, so they have the ability to compare different criteria with each other. Some time distributors were not able to answer the question properly because of busy with their customer. Majority of the retailers were not satisfied with some company’s monetary enticement because it is comparably lower with other soft drink companies. Retailers gave different reasons for not satisfied with monetary enticement. Retailers told me five reasons for not satisfied with monetary enticement. Firstly they think some soft drink company’s gave them more for the same product of other company, other group of retailers claims that is not enough for our business , the profit margin is not good enough and lower than others. Some retailers want more profit margins from all companies. All retailers agree that more profit margins motivate them for selling a specific brand product. Majority numbers of the retailers were not satisfied with non-monetary enticement. Some retailers told me that thousand times we asked for a signboard from some companies and they only gave me their verbal commitment that they will give it to me, but nothing we


got from them so far. They lied with us and we were disappointed with their behavior. Some retailers were satisfied because they thought that they got some- thing from company but others don't have yet. Promotion As Bangladesh is developing country, people’s demand for soft drinks is not so important to them. So it is very essential to develop proper and perfect marketing and promotion strategy to pursue people for soft drinks. In Bangladesh. Now company’s created a tremendous awareness among the target customer, because of their colorful package, brand name and other attractive promotional activities. Target Audience of Advertisement Soft Drinks segment its target market in different ways; these are Demographic Segmentation. Geographic Segmentation. Based on the Geographic segmentation Soft Drinks divides its target customers into two parts; Rural Area. Urban Area. In case of Demographic Segmentation Soft Drinks divides its target customers into three categories. These are; Under 15 Years of age. 15-25 Years of age. Above 25 years of age. We can classify these three categories of target customers of Soft Drinks as follows; Classification Data: (In Percentage) SEX-

Male 58%

. Occupation- Student others 66% Education-

Primary 8%

Female 42% Professionals Businessmen Teacher

House

wife

12%

7%

4%

2%

Secondary 10%

H. Secondary Graduation 10% 56%

9%

Post Graduation 16%

This was the most vital part of my intern-ship work to gather the information about the advertisement budget and its ratio. However, it very sensitive information for all beverage companies, so they gave me the approximate data about the advertisement and its ratio. There


are different media is used for the advertisement. Those are press, out door, T V and different events. Some companies emphasize on TV media and some focused on the sports events. The companies most frequently use this two medium. As my topic is to study the recent market scenario of the beverage industries of the Dhaka city. Therefore, we have collected the information of the companies, which is actually Dhaka reason based. Only the T V and newspaper advertisement ratio of Coke, Pepsi, R C, Mojo, Uro, Pran, Virgin and Sun crest companies had possible to gather. The T V advertisement ratio of Pepsi, Coke, Pepsi, R C, Mojo, Uro, Pran Virgin and sun crest was available for last month of February and March. In the above three months Pepsi spent 47, 88,500 TK, Coke spent 5, 00,000 TK, Virgin spent 18, 58,000 TK, R C and Sun crest spent near about 23, 00,000 TK for this two month. This is the highest budget of the history of Sun crest for the T V advertisement. The reason behind this was recently they had launched a new pack size in the market. This is totally a concept for the Bangladesh beverage market. The newspaper advertisement ratio of Pepsi, R C, Sun crest and Virgin was available for the month of January to March. As I mentioned earlier that Coke Company is divided in to two-production operation in Bangladesh. The government owned part had not spent a lot for the advertisement in the recent years. On the other hand Pepsi as usually spends more than 2, 00,000 TK per month for the newspaper advertisement. Pepsi gives 19 ads in different newspaper and spent 19, 00,000 TK. in the month of February they spent most because of Eid-ul-Azah. Virgin spent 05, 55,000 TK for the month of March and February. In these two months, they spent a lot for the business promotion. In the month of February, it was winter, when beverage product becomes a bit slow. In the month of March, they tried to promote, the Cheers, which are Mango flavored. They offered one glass with every three cans of the Cheers. Recently Sun crest spent more then 15, 00,000 TK in different newspapers. In the month of March, they had launched 250 ml PET bottle. For introduction of the new product, they spent the special amount of money. R c spent only 75,600 TK, their amount is very low compare to others. They spent more on T V adds. Although they spent less for the newspaper but their advertisement is not few in this media. They gave the sponsorship for the laser –light show, which was first time in Bangladesh. So R C get the advertisement advantage from this laser show adds. Most Preferred T V Channel for the Advertisement In Bangladesh, we have four private and national T V channels. Only one of them is government owned. T V advertisement is a very powerful communication medium between companies and retailers and mostly with the consumers. According to the retailers, E TV is most preferred medium for them. 66% liked E TV, 25% B TV, 6% liked Channel I and others liked A T N Bangla.


Fig: 9.69 Most Prefered TV Channel

Most Prefered TV Channel

11%

BTV

19%

ntv

10%

Channel I ATN 8%

20%

Baisakhi Bangla vision

13% 19%

RTV


Fig: 9.70 Media Wise Advertisement Ratio of Beverage Products In Dhaka City Advertisement Ratio on TV Channel in bangladesh

11%

19% BTV

10%

ntv Channel I

8%

ATN

20%

Baisakhi Bangla vision RTV

13% 19%

Long, Medium and Short term objectives of promotion The Short Term objective of Beverage Company the is to expose the features of the product to the target customers using various media.Company will let their target customers know about the features of the product, i.e., there are different taste & flavor of the product and also it has different colors & sizes of bottles & cans. In every fiscal year they just want to increase their sales to gain a significant share of the existing soft drinks market. The Long Term objective of the campaign is to create the likings and preference of the brand among its target customers. Ccmpany decided to carry on its promotional activities among its target customers only during the summer. In Bangladesh, the duration of summer season is usually starts from April and ends at September. As target customer are aware of the brand, so Beverage companyies needs not to create the awareness which is needed in the initial stages of a product according to the Customer choice. For TV Commercial we have selected the BTV and NTV , and Channel1 as the media vehicle .We have chosen BTV because we have customers in rural areas where cable TV is unavailable .And we have chosen NTV and Channel1 as our Media vehicle because NTV is the most popular private/ Cable TV among the others. We have chosen The Daily Star” and “The Prothom ALO” as print media vehicle. During conducting our survey we have found that most of the target customers have favored these two newspapers as the best option.


Fig: 9.71 Area wise Target Audience of TV Channel Area wise Target Audience Of TV Channel

Urban Area 38%

Rural Area Urban Area

Rural Area 62%

Source: Field Data (Target audience preference about TV channel (In Percentage)) Duration and Timing (Scheduling/ Media Planning As Virgin is a soft drinks and the core benefit of Virgin is to quench thirst. As a result, usually the demand for Virgin Drinks will be more during summer in our country. Since in Bangladesh, summer season stayed for 6 months (from April to September) the duration of our promotional campaign is six months. For TV commercials we use the following schedule: TVC (Duration is same 43 seconds ) Channel Name Day BTV Thursday NTV Thursday & Friday Channel 1 Thursday

Slot Before the weekly drama During the mid break of drama (Kacher Manush) During the mid break of the musical program (The One)

For Print advertising we use the following schedule: Newspaper Name Daily Star

Size

Day

6 col x 12 inch

Prothom Alo

4 col x 6 inch

First & Saturday First & Saturday

Alternative Communication Strategies

Place last Page – 3 last Sports Page


But Beverage company can chose more than these three media as their promotional activities. As the major part of Beverage target customers are in between 15 to 35, Company can increase its sales by influencing this group. They should highlight the brand name in different ads, can arrange concert in different festivals like in “Pahela Baishakh�, by using poster, leaflet, and calendars to enhance the brand image, and run different promotional activities, like Quiz contest into the school, College and University, Special quantity incentives, cash discount for students etc. For the under 15 aged customer they should offer different gifts like toys, Sticker, Tattoos etc to attract them. During Off season or on the occasion of different festivals like Eid, picnic, marriage ceremony etc, company may offer free with a certain amount of purchase (1 bottle free with 1 case) and offer special discount like 20% off at each packages. I have found from consumer survey that company should use promotional campaigns to enhance its brand image & the brand equity among its target customers; so we need not to choose any alternative communication strategy other than these. Promotion Channel Display of Crates and Bottles The retailers informed that arranged the display of the bottles and crates themselves, according to the size of their shop. Company people never forced them to adopt any particular style of display unless the retailers were said to do so. Signboards 36 % of the retailers informed that they had paid for the signboards themselves. Among the rest 64% signboards, 28% signboards were found of Coke, 16% Pepsi, 9% R C, 7% Virgin and 4% of each for Sun crest and PRAN signboards were found. The retailers informed that the beverage companies paid for the cost of their signboards in the particular shop or confectionery. The retailers gave the signboards measurement to the beverage producers and they had then made for the retailers, as signboards is a very useful media of advertisement for the beverage companies.


SIGNBOARDS OWNERS 40%

36%

35% 28%

30% 25% 20%

16%

15% 9%

10%

7% 4%

5% 0% Personal

Coke

Pepsi

RC

Virgin

Others

The original size of our billboard is 288 square feet. The Length is : 24 feet. The Height is : 12 feet. The per square feet cost of this billboard is Tk. 135. So, the total cost of per billboard is (Tk. 135 x 288 feet) = Tk. 38,900. The cost per billboard (including the rent and making charge) in different places are as follows: Billboard Locations Total Cost Dhaka Gulshan – 1 Tk. 1,20,000 + Tk. 38,900 Mirpur Tk. 90,000 + Tk. 38,900 Airport Tk. 1,40,000 + Tk. 38,900 Tk. 10,02,300 Shahbag Tk. 80,000 + Tk. 38,900 Farmgate Tk. 1,00,000 + Tk. 38,900 Jatrabari Tk. 1,00,000 + Tk. 38,900 Tongi Tk. 1,00,000 + Tk. 38,900 Chittagong Tk. 2,40,000 + Tk. 38,900 Tk. 2,78,900 Rajshahi Tk. 75,000 + Tk. 38,900 Tk. 1,13,900 Khulna Tk. 65,000 + Tk. 38,900 Tk. 1,03,900 Sylhet Tk. 90,000 + Tk. 38,900 Tk. 1,28,900 Barisal Tk. 60,000 + Tk. 38,900 Tk. 98,900 Net Cost (for Billboard) Tk. 17,26,800 Company Wise Cooler Position & Deposit System


The retailers informed that 45% of them had their own refrigerator. 22% Coke cooler was found and 16% Pepsi, 9% R C, 5% virgin and 3% Sun crest cooling system were found. PRAN had no cooler in retailers market. The retailers informed the following things about the payment system of beverage coolerRetailers had to deposit TK. 5000 for the refrigerator of Coke. They paid 2000-6000 TK. for Pepsi cooler. Virgin keeps 2000tk for the cooler. The retailers deposited TK 6000 for the refrigerator of R C. However, in some special cases R C did not take the deposit amount from the retailers, as company cooler was an important and useful advertisement for R C beverage. The retailers also informed that no company was interested to keep other companies soft drinks in their brand refrigerator. It was observed that the retailers kept all companies soft drinks together in a brand refrigerator whether it was of Coke’s, Pepsi’s or R C’s. Fig: 9.72 Company Wise Cooler Position COMPANY WISE COOLER POSITION 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

45%

22% 16% 9%

5%

T S

-C R E

S

IN IR G V

R C

I P

E

P

S

E C O K

P

E

R S

O

N A

L

3%

Reasons for Giving Priority of Retailers Retailers give priority to brand companies based on some factors. The factors are describe as followPublic Demand: The retailers give preference to public demand, because their profit mainly depends on consumer choice. Retailers sell that brand is soft drinks more, which the consumers like most. Discount: In this case, the retailers consider all the beverage companies in the same way, as no company offers the retailers any kind of discount. All the companies take the particular amount of bottle and crate deposit money in time. Free Bottles: The retailers always give priority to free bottles that they receive from the company. When the retailers manage to sell a particular number of bottles, every company gives them some free bottles for their encouragement, so that they give more preference in selling the products of the specific brand.


Gift Items: The retailers always give priority to those brands who give them gift items like opener, Tshirts, glass, wall clock etc. the company, which gives the retailers gift items were more preferred by them, and they like to keep more bottles of that brand. Promotional Activities It has two parts. Both parts are described bellow: Promotional Activities for Traders The beverage companies are offering several promotional activities. They are described as follows: Opener: Coke, Pepsi , R C, and Virgin companies offer this promotional activity to the traders for the goodwill of their company. Actually they keep this offer all year long. T-shirt: All the beverage companies offer this promotional activity to the traders. T-shirt is also a good advertising media. Free Bottles/ Discount of money: These two promotional activities have very close relationship with each other. The beverage companies always give free bottles in lieu of discount of money. Coke, Pepsi, R C, Virgin, and PRAN all the beverage companies maintain this promotional activities. Glass: Coke and Pepsi first started this promotional activity, but recently Virgin using this technique very effectively. This is a very costly promotional activity. Fig: 9.73 Promotional Activities for Consumer The beverage companies offer several types of program for the promotional activities of consumers.

Company Wise Promotional Activities For Consumers

Abdul Monem Ltd. Tabani Beverage Transcom Beverage National Beverage

2%

8%

Al Amin Beverage

21%

14%

Globe Soft Drinks 15%

15% 19%

3% 2% 1%

Akij Foods Ltd. Global Beverage Ltd. Pran Group Partex Group


Chart : Company Wise Promotional Activities For Consumers Linear Program: Coke and Pepsi companies offered this program long ago. It got huge public popularity. The linear program was like this-after buying a bottle of Coke or Pepsi the consumer had to collect the linear and open it. There were something printed inside of the linear. There could be some figure of money, some gift item like opener, glass etc. Only the lucky person got that linear. They give the linear to the nearest retailer shop. Coke offered a car and Pepsi company gave Motorcycle in that linear based program. Now a day, there is no practice of this kind of program by the beverage companies. Glass Program: Coke Company introduced this program. The rule of this program was –if a consumer drink 5/6 bottles of he or she would receive a glass from Coke Company through the retailer. This program is frequently use for both consumers and retailers. Other Program: There are some other types of incentives given by different beverage companies. They are given as bellow: Buy one liter Coke and get a Frisbee. Pepsi gives different food item with their liter bottle. They also give Cricket bat, ball, pad etc. R C cola gives a five-taka discount with every one-liter bottle. Fig: 9.74 Competitive Situation This part is the most vital part of this report. The retailers in this study sold the following percentage of Coke, Pepsi, Virgin, R C, Uro, Mojo, Double Cola, sun-crest and PRAN Competitive Situation of Product Selling (per day)

6%

Coca-Cola

12% 11%

16%

2% 2% 2%

Pepsi Rc Cola Mojo Uro Cola Lemu Virgin

16%

19%

Sun crest Double cola

14%

beverage product per day.

Pran Up


They sold Coke (250ml) 19 % , Pepsi 14 % , ,R C 16 %, Mojo 16 %,Lemu 12 %, Uro 6 %, Virgin 11 %, Pran 2 % ,Suncrest 2 %, and Double Cola 2 %, per day. The ratio shows that Coke has strong market share of 40.56% and sun-crest has the lowest market share of 1.61%. The liter bottle crates sold per day by the retailers were the followings45% Pepsi, 35% Coke, 9%R C, 9%Virgin and 2% Sun-crest. Here Pepsi hold the strong market share of 45% and Sun-crest has lowest market share of 2%. PRAN has no liter beverage item in the market so they do not have any market share. With regard to bottle out put / day, only Coke and RC companies revealed the information. The bottle output /day of Coke was 4500 crates of 250ml bottle and 4500 crates of 1000ml bottle. The sum of their bottle output per day was 9000 crates. On the other hand, R C outputs 6000 crates per day, 3000 crates of 300 ml bottles and 3000 crates of 1000 ml bottles. Market Survey we have done market survey within Dhaka city 5 major area and 65 location area (like, Mirpur, Cantonment, Uttara, Gulshan and Old Town). Analysis part The data collected are analyzes in this part: Field level survey: Total Ares surveyed Total areas location Total shops surveyed

5 60 300

The retail areas are the followings: Cantonment Uttara Mirpur Gulshan Old town Mirpur Mirpur area is very density area . This area I have surveyed 80 retail shops. This area location name : Mirour -13, Mirpur-11, Kazipara, Shewpara, Taltola, Monipurpara, Mirpur-10, Mirpur-11,Pollobe, North kazipara, Mirpur-1, Mirpur-2, Mirpur circle. Table :10.1 In this area, which company soft drinks are more selling product? RC 55%

Coca-Cola 10%

Pepsi 20%

7UP 20%

UR Cola 2%

Other 3%

Fig: 10.1 In this area, which company soft drinks are more selling product?


55

20 10

10

3

2

Rc

7up

cocacola

pepsi

urcola

Other

Table :10.2 In which size pack are more selling product? RC 500 Coca-Cola Pepsi 500 7UP 500 ml m 500 ml ml 65% 5% 10% 15% Fig :10.2 In which size pack are more selling product?

UR Cola 500 ml 4%

Other 1%

65

15

10

5 Rc

RC 1000 Coca-Cola ml 1000 ml 35% 20%

7up

cocacola

Pepsi 1000 ml 10%

4

1

pepsi

urcola

Other

7UP ml 15%

1000 UR Cola 1000 ml 5%

Sprite 1000 ml 10%

35 20

15

10

Rc

7up

cocacola

pepsi

10

5

urcola

Sprite

Table : 10.3 Which flavor are more selling item ? RC lemon Rc cola RC sourda Sprite 40% 15% 20% 10% Fig : 10.3 Which flavor are more selling item ?

7Up Ice 10%

UR cola 5%


40 20

15

10

10 5

RC lem on

RC cola

RC upper

Sprite

urcola

7Up

Table: 10.4 Company market position in Mirpur area. RC 50%(No:1)

Pepsi 30%(No :2)

Cocacola 15%(No :3)

Ur cola 5%(No : 4)

Other

Fig: 10.4 Company market position in Mirpur area. 50 30 15 5

Rc

Cocacola

UR cola

Pepsi

In this area , What types of facility retail customer wants form company? Credit facility (Because this area credit facility not available If company gives the credit facility that they will be more encourage for selling the company product. ) Low profit, so increase the quantity of profit. Company week sight in this area . Product not available. Product a few of high. Not good relationship distributor sales person between customers. Display arrangement This area most of the display arrangement for own but some company gives free product for display. Cantonment This cantonment area we have surveyed 65 retail shops . This area location name : ( East Karful, West kafrul, North Kafrul, Ibrimpur, Bhasentech, Manikdhe.14 Number, 3 Number, Matekhatha, Balugheet, khochukheet.) In this area which company soft drinks are more selling product?


RC

Coca-Cola

Pepsi

7UP

UR Cola

Other

50%

15%

20%

15%

4%

1%

50

15

20

15

4

Rc

7up

cocacola

pepsi

urcola

1

Other

Table: 10.5 In this area which size peaks are more selling item? RC 500 Coca-Cola Pepsi 500 7UP 500 ml UR Cola ml 500 ml ml 500 ml 50% 15% 10% 13% 10% Fig: 10.5 In this area which size peaks are more selling item?

Other 2%

50

15

13

10

10 2

Rc

7up

RC 1000 Coca-Cola ml 1000 ml 30% 20%

cocacola

Pepsi 1000 ml 15%

pepsi

urcola

7UP ml 15%

Other

1000 UR Cola 1000 ml 5%

Sprite 1000 ml 15%

30 20 15

15

15 5

Rc

7up

cocacola

pepsi

urcola

Sprite

Table: 10.6 Which flavor are more selling item ? RC lemon

Rc cola

RC sourda

Sprite

7Up Ice

UR cola


45%

15%

15%

10%

10%

5%

Fig: 10.6 Which flavor are more selling item ?

45 15

15

RC lem on

10

RC cola

RC upper

10

5

Sprite

urcola

7Up

Table: 10.7 Company market position in Mirpur area. RC 45%(No:1)

Pepsi 30%(No :2)

Cocacola 20%(No :3)

Ur cola 5%(No : 4)

Other ‌‌..

Fig: 10.7 Company market position in Mirpur area.

45

30 20 5

Rc

Cocacola

UR cola

Pepsi

In this area , What types of facility retail customer wants form company? Credit facility. Increase the quantity of profit. Company week sight in this area . Product not available. Product a few of high. Not good relationship distributor sales person between customers. Display arrangement This area most of the display arrangement for own but some company gives free product for display. Uttara In this area I have surveyed 75 retail shops. This area location name:( Khakali, Shewra, Nikhonjho, Khikheet, Dharkheen khan, Uttra model town, Jhohar shahara, Uttara house building, ranabola, Bishowroad, airport, and uttra local area. )


Table: 10.8 In this area, which company soft drinks are more selling product? RC 35%

Coca-Cola 20%

Pepsi 15%

7UP 20%

UR Cola 9%

Other 1%

Fig: 10.8 In this area, which company soft drinks are more selling product? 35% 20%

20% 15% 9% 1%

Rc

7up

cocacola

pepsi

urcola

Other

Table: 10.9 In this area which size peaks are more selling item? RC 500 ml

Coca-Cola Pepsi 500 7UP 500 ml UR Cola Other 500 ml ml 500 ml 40% 15% 20% 15% 8% 2% Fig: 10.9 In this area which size peaks are more selling item? 40%

20% 15%

15% 8% 2%

Rc

RC 1000 Coca-Cola ml 1000 ml 25% 20%

7up

cocacola

Pepsi 1000 ml 15%

pepsi

7UP ml 15%

urcola

Other

1000 UR Cola 1000 ml 5%

Sprite 1000 ml 20%


25%

20% 15%

15%

20%

5%

Rc

7up

cocacola

pepsi

urcola

Sprite

Table: 10.10 Which flavor are more selling item ? Rc cola RC sourda Sprite RC lemon 35% 15% 15% 15% Fig: 10.10 Which flavor are more selling item ?

7Up Ice

UR cola

15%

5%

35%

15%

15%

15%

15% 5%

RC lem on

RC cola

RC upper

Sprite

urcola

7Up

Table: 10.11 Company market position in Mirpur area. RC Pepsi Cocacola Ur cola 45%(No:1) 30%(No :2) 20%(No :3) 5%(No : 4) Fig: 10.11 Company market position in Mirpur area. 45% 30% 20% 5%

Rc

Cocacola

UR cola

Pepsi

In this area , What types of facility retail customer wants form company? Credit facility. Increase the quantity of profit. Company week sight in this area . Product not available. Product a few of high.

Other ‌‌.


Not good relationship distributor sales person between customers. Display arrangement This area most of the display arrangement for own but some company gives free product for display. Gulshan This area ,I have surveyed 65 retail shops. This area location name ( Gulshancircle-1, Gulshan circle-2, Banani, Mhokhali, Nhotuan bazaar, Barda, North Barda, Baridara, Jhal Khabaar, Kgurial, Khoahrial, T&T area, Bastala,Khalachanpur, Middle Barda.) Table: 10.12 In this area, which company soft drinks are more selling product? RC Coca-Cola Pepsi 7UP UR Cola Other 35% 20% 25% 10% 9% 1% Fig: 10.12 In this area, which company soft drinks are more selling product? 35%

25% 20% 10%

9% 1% Rc

7up

cocacola

pepsi

urcola

Other

Table: 10.13 In this area which size peaks are more selling item? RC 500 Coca-Cola ml 500 ml 40% 15%

Pepsi 500 7UP 500 ml ml 20% 15%

UR Cola 500 ml 7%

Other 3%

Fig: 10.13 In this area which size peaks are more selling item? 40% 15%

15%

20% 7% 3%

Rc

RC 1000 Coca-Cola ml 1000 ml 25% 15%

7up

cocacola

Pepsi 1000 ml 15%

pepsi

7UP ml 15%

urcola

Other

1000 UR Cola 1000 ml 5%

Sprite 1000 ml 25%


25%

25% 15%

15%

15%

5%

Rc

7up

cocacola

pepsi

urcola

Table: 10.14 Which flavor are more selling item? Table 4 : RC lemon Rc cola RC sourda Sprite 30% 20% 10% 20%

Sprite

7Up Ice 15%

UR cola 5%

Fig: 10.14 Which flavor are more selling item? 30% 20%

20% 15% 10% 5%

RC lem on

RC cola

RC upper

Sprite

urcola

7Up

Table: 10.15 Company market position in Mirpur area. Pepsi Cocacola Ur cola RC 40%(No:1) 30%(No :2) 20%(No :3) 10%(No : 4) Fig: 10.15 Company market position in Mirpur area.

Other ‌‌.

30%

40% 20% 10%

Rc

Cocacola

UR cola

Pepsi

In this area , What types of facility retail customer wants form company? Credit facility. Increase the quantity of profit.


Company week sight in this area . Product not available. Product a few of high. Not good relationship distributor sales person between customers. Display arrangement This area most of the display arrangement for own but some company gives free product for display. Old Town This area , I have surveyed 70 retail shops , This area location name ( Nilkheet, Alephant road, Lalbag, Bosi bazaar,Luxi Bazaar, Nazimuddin road, Bonsheel, Shoderghat, Jhonson road.) Table: 10.16 In this area, which company soft drinks are more selling product? RC

CocaPepsi 7UP UR Cola Other Cola 35% 20% 15% 25% 4% 1% Fig: 10.16 In this area, which company soft drinks are more selling product? 35%

25% 20% 15% 4% 1% Rc

7up

cocacola

pepsi

urcola

Other

Table: 10.17 In this area which size peaks are more selling item? RC 500 Coca-Cola Pepsi 7UP 500 UR Cola ml 500 ml 500 ml ml 500 ml 42% 18% 20% 12% 7% Fig: 10.17 In this area which size peaks are more selling item?

Other 1%

42%

18%

20%

12%

7% 1%

Rc

RC 1000 Coca-Cola ml 1000 ml

7up

cocacola

Pepsi 1000 ml

pepsi

urcola

Other

7UP ml

1000 UR Cola 1000 ml

Sprite 1000 ml


27%

18%

15%

15%

5%

20%

27% 18%

20%

15%

15%

5%

Rc

7up

cocacola

pepsi

urcola

Sprite

Table: 10.18 Which flavor are more selling item ? RC lemon 25%

Rc cola 20%

RC sourda 15%

Sprite 20%

7Up Ice 15%

UR cola 5%

Fig: 10.18 Which flavor are more selling item ? 25%

20%

20%

15%

15%

5%

RC lem on

RC cola

RC upper

Sprite

urcola

7Up

Table: 10.19Company market position in Mirpur area. RC 45%(No:1)

Pepsi 30%(No :2)

Cocacola 20%(No :3)

Ur cola 5%(No : 4)

Other

Fig: 10.19Company market position in Mirpur area.

45% 30% 20% 5%

Rc

Cocacola

UR cola

Pepsi

In this area , What types of facility retail customer wants form company? Credit facility.


Increase the quantity of profit. Company week sight in this area . Product not available. Product a few of high. Not good relationship distributor sales person between customers. Display arrangement This area most of the display arrangement for own but some company gives free product for display. Policy on regular burst or broken bottle Burst or broken bottles are the great problem to the beverage companies and also to the environment. The distributors collect the burst or broken bottles from the retailers. The retailer collects the broken bottles from the consumers and at the end the companies collect all the burst and broken bottles from the distributors. Each and every company has their own policy of burst or broken bottles and are described belowRC Cola company RC Cola is not an old company in our country. It is a new company so this company has not taken any policy about the burst on broken bottles yet. But they are considering about this case. Coca-Cola company The Coca-Cola Company has their policy. Every end of the year the company gives 15 days time to distributors to send the burst or broken bottles. Pepsi Company The Pepsi Company also has a policy. The company gives 10 to 15 days to the distributors to send back the broken bottles. Sun Crest company Sun Crest Company’s policy is to deduct from the deposit given by the distributor for the broken bottles. Akij Beverage company Akij Beverage company produce only pet bottle. So their policy to consumers to brust after use. Globe Soft Drinks Globe Soft Drinks also produce only pet bottle and policy to consumers to brust after use. Virgin company


Virgin Company does not have any bottles so they do not have any policy about that. But if the bottles burst for their fault the company gives 100% replacement for the bottles to the distributors. The channel by which the broken bottle is sent back to the company can be described by the following channel diagram-

Company

Distributor

Retailers

Consumer

Advertising slogans Of Beverage Product Advertising slogans : Are Claimed To Be, And Often Prove To Be , The Most Effective Means Of Drawing Attention To One Or More Aspects Of A Product. Typically They Make Claims About Being The Best Quality, Providing An Important Benefit Or Solution, Or Being Most Suitable For The Potential Customer. At The Start Of World War I, When Modern Advertising Was In Its Infancy, A Famous Poster Called On Young British Men To Heed The Need Expressed By One Of Britain's Foremost Soldiers, Lord Kitchener, And Volunteer To Serve Their Country. The Famous Slogan "Your Country Needs You" Was Heard Around The World. Still Today America Uses A Variant Of This Slogan (Uncle Sam Needs You, Or The Army Needs You). Advertising Slogans Often Play A Large Part In The Interplay Between Rival Companies. An Effective Slogan Usually: States the main benefits of the product or brand for the potential user or buyer . Implies a distinction between it and other firms' products - of course, within the usual legal constraints . Makes a simple, direct, concise, crisp, and apt statement is often witty, if it is required as not all advertising slogans are meant to be witty adopts a distinct "personality" of its own. gives a credible impression of a brand or product . Makes the consumer feel "good" . Makes the consumer feel a desire or need is hard to forget - it adheres to one's memory (whether one likes it or not), especially if it is accompanied by mnemonic devices, such as jingles, ditties, pictures or film sequences on televised commercials. Usually, slogans are created as advertising copy by professional writers among whom writers of serious literature, such as novelists may be found at times. On the other hand slogans often originate as tiebreakers created by "compers" or competition entrants as a means of elimination in trade competitions, often combined with a submitted proof of purchase of the company's product.


Advertising slogans are subject to ethical constraints and are often viewed with reservations, if not actual misgivings by official bodies, such as the advertising standards authority in the uk, or the european advertising standards alliance who claim to have a responsibility to the public good and whose decision making follows an advertising code. Similar organizations exist in canada, ireland, new zealand, australia, south africa, as well as other countries. List of advertising slogan The following is a list of advertising slogans OF Beverages in the English language: "All the taste, 1/3 of the calories", Pepsi Max, 1993 "Always Coca Cola" - Coca Cola - 1990s "Ask For More" - Pepsi 2000, mainly in much of Europe. "Coke is it" - Coca Cola, 1982 "It's the real thing" - Coca Cola, 1941 "Lipsmackin' thirstquenchin' acetastin' motivatin' goodbuzzin' cooltalkin' highwalkin' fastlivin' evergivin' coolfizzin' Pepsi" - Pepsi Cola, 1973, Boase Massimi Pollitt "Pepsi - for those who think young" - Pepsi "Same time tomorrow?" - Diet Pepsi, 1990s "The Joy of Cola" - Pepsi, 1999 "The pause that refreshes" - Coca Cola, 1929 "The real thing" - Coca Cola, late-1980s "The Uncola" - 7-Up, 1973, J Walter Thompson "Uh-Huh!" - Diet Pepsi, 1991 Slogans for the Beverages In Bangladesh Different products carry different massages. To convey these massages to the people, companies give different slogans for the beverages. These slogans provide an idea about the product's specialty and they are used in advertising the product. The slogans for the beverages are as follows. RC Cola At the very beginning of company, their slogan was "Take a fresh look at life". However, different other slogans have come over time. Now RC Cola's slogans are: 1939 “ Royal Crown is Tops in Taste" 1941 “ Best by taste test" 1956 “Better Taste Calls for RC!" 1959 “ RC the fresher refresher!" 1962 “ Royal Crown is made fresher to taste fresher" 1963 Go fresher with RC:" Overnight America's Number One, Diet Rite slogan. 1964 Go fresher Go RC" 1965 Who's drinking that Diet Rite America's entire No.1 Low calorie Soda- Everybody? 1966 Escape- Come on over to RC Cola the one with the mad, and taste" 1967 Diet Rite taste so good.. even non dieters drink it”. 1970 We cool off hot towns" 1972 "The one you loved is back" 1974 RC its just right for you" 1975 "Me and my RC" No, No, Yes, Yes" Diet Rite


1975 "Say yet to Diet Rite cola: one big delicious yes" 1980 "Here's to fun" 1981 "Taste the one that won" 1984 "Cola loving' woman, cola loving man" 1984 "Everybody's gotta Diet Rite" 1985 "Some people go out their way for the taste of RC" 1988 "Decide for yourself" 1989 "New look, same great taste" 1990 "Take the RC challenge" 1994 "Shake things up" "Be free, Drink RC". "Freedom of Choice" Rc Orange “Take it easy” Coca Cola As a global brand, coca-cola has also developed slogans in different world languages according to the characteristics and culture of the target market. Some such slogans are as follows: Country France Japan India Bangladesh

Slogan Buvez Coca-Cola (Enjoy Coca-Cola) Tsu Na Ga Ru! (Animate Life!) Thanda Matlab Coca-Cola (Cool means coca-cola). (The world’s cool if your heart is)

“Eat cricket sleep cricket drink only Coca Cola” Enjoy!” Cool means, Coca-Cola. Life taste good -Coca-Cola. Sprite Its test as if, it recovers your thirst-Sprite. For its test, you can loose your character-Sprite. Fanta “Share the fun whereever” Express your emotion from your heart-Fanta Pepsi Cola “Yea Dil Mange More Aha ......................” 7 Up “Double Refreshment” “Life is short ……Live it up” Mirinda Ahhaaaaaaaaaaaaaaaaa Mirinda Lemon “Zor Ka Zahka Dhirasa Lagi” Ashol Lebur Shotejota Sun Crest Cola


“Complete satisfaction” Pay of line for Sun Crest is “Chumuke Chumuke Poripurna Tripti” Bubble up “Kiss of Lemone Kiss of Lime” Virgin Cola It's your life, color it! Mountain Dew “Do the dew” Mojo “Its inside you” Lemu “Thirst comes first”

Recommendations All of my study and conducting survey give me the authority to write down recommendations for this project. we worked in the field and office last 2 (Two) YEARS, that's why I have the opportunity to understand the Present Market Scenario Of Beverage Industry In Bangladesh and saw it very closely. Lot of hidden things opens in front of my eyes. In this planet situation of Beverage company may changes in every single moment. All of my recommendations will be based on the present situation basis. By analyzing the current situation, we have realized that there is a need for modifying the current marketing plan for Each Beverage company. Therefore, in the following, I would recommend some ways to develop a proper marketing plan for Same.Marketing plans focus on a product/market and consist of the detailed marketing strategies and programs for achieving the product objectives in a target market. A marketing plan is the central instrument for directing and coordinating the marketing effort. The marketing planning process consists of the following steps: a) researching and selecting target markets, b) analyzing marketing opportunities, c) setting objectives d) designing market strategies. A)

Market Research:

A comprehensive market research should be done by All Beverage company. The research should focus on the current market situation, product situation and competitive situation, This report already explores the current situations of the industry.A consumer research will provide them with information of the customer needs, wants and demands and the customer’s bovine behavior. This research work should also explore the factors that influence customer’s brand loyalty, brand preference and tastes. The purpose of the research is to find out which segments of the customers are interested in beverage products and which sectors of people can be driven towards their beverage products.


B)

Opportunity And Issue Analysis:

After the research work, Beverage company proceed to identify the major opportunities/ threats, strengths/weaknesses and issues facing the product line. A SWOT analysis of All beverage company has already been done in this report. To define the main issues, All beverage company should use the findings of the market research. Using the findings of this report, company should consider the following basic issues: If All beverage company stays in, should it continue with the present products, distribution channel, and price and promotion policies? Should beverage company increase its advertising and promotion expenditure to match competitor’s expenditure? Should All beverage company incorporate new marketing strategies? C)

Objectives:

Objectives are essential for any kind of work. Nothing can be done properly without setting the objectives. For the marketing plan, Beverage company should set both the financial and the marketing objectives.The financial objectives should reflect the projected annual rate of return, turnovers and the profits. On the other hand, financial objectives must be converted into marketing objectives, which will reflect the projected market share, expansion of promotional budget, yearly revenue etc. The objectives must match the company’s budget. D)

Marketing Strategy:

In this step of planning, All beverage companies should set 'game plans' or broad marketing strategies according to the marketing mix. Target market: Company can segment the target market either geographically or by age.All beverage company can target different areas of Dhaka City, where the demand is high. Again, company can go for other cities as well. All beverage company can also set its target market by age. In my opinion, they should have middle ages as their target market as teenagers and age group 20-29 already like the product. The consumer usually use 'nominal decision making' (Hawkins. 1998) to buy beverage products, because this decision requires less information about the product. Moreover, the Beverage products are not in 'evoked set' (customers do not buy it habitually). Therefore, the company needs to adapt a ‘disrupt strategy’, which requires providing the customers as much info as possible. Giving free ads and free samples would also help. Product line: Beverage company should have more variety in its bottle sizes and types. They should provide smaller regular size bottles with lower price.


A new type of flavor (Apple or Grape) could be added in the product line. Also all Beverage company can go for fountain machine drinks. Pricing. Pricing strategy of the company should be carefully maintained. Beverage company should lower the prices of its regular size bottles to attract the consumers. Distribution: All beverage company has many distributors in the city and countrywide.But yet the products are not constant available everywhere. All company can appoint new and efficient distributors or can give training or briefing to the present ones. The company also can get help from their own mother group. Promotions: In my opinion, Beverage company should spend heavily on advertising and promotion. They should develop an advertising campaign that supports the product positioning strategy. They should use much more television, newspapers and billboards as major advertising media for Dhaka City.Beverage should give more importance on repeat customers, because repeat customers give more returns than the new customers. Product Lifecycle: Some companies are in maturity stage ,some companies are in decline stage ,and some companies are in introduction stage of their product life cycle. In this stage all company should take initiative according their present situation. Action Programs: All Beverage company can undertake different programs to achieve its business objectives. Such as consumer’s intensive programs, trader's compensating program etc. Actions are needed to carry on the marketing plan. In this stage, each marketing strategy should be elaborated to answer: What will he done? When it will be done? Who will do it? And how much will it cost? Controlling: The last section of the plan outlines the controls for monitoring the plan’s progress. Typically the goals and budget are spelled out for each month or quarter. Beverage company should review the results of each period and spot businesses that are not attaining their goals. All Managers must explain what is happening and the actions they will take to improve plan fulfillment. Beverage Ccompany may need contingency plans for adverse situations. Distributors' point of view: Under Dhaka region there have many distributors of all company and all distributors have selected territory. During working period, we mixed with them very closely and known them


inner demand for satisfaction and motivation. All the recommendations will increase distributors satisfaction level and motivational factors as well. Adequate or Superior Commission/margins: Nothing can motivate and satisfy a distributor except superior monetary commission or profit margins. The very first thing a distributor asks is "how much money am we going to make with your (manufacturer) product line?" Beverage Company gave around 4% to 6% commission for their distributors and maximum numbers are not satisfied with the commission. So this is the easiest way to satisfy the distributors by increasing their commission. Now the time has come to increase the monetary commission for the distributors. Joint sales calls Joint sales calls are a win win situation. Manufacturer also benefited because direct access to the distributor's force lets manufacturer increase distributor's salespeople's knowledge about manufacturer product and helps them feel more comfortable selling it. By this way sales will be higher, so distributors can generate more profit and the manufacturer as well. Sales force management Sales force management can help the distributors to do business with a comfortable environment. Sales force management runs by the manufacturer field sales people and management. Manufacturer salespeople are literally the last lines of communication and management between the manufacturer and the distributor, and they are responsible for implementing manufacturer business policies and procedures. A manufacturer sales person needs to be company representatives, channel defenders, trainers, and field sales managers, all wrapped up in one convenient package. As company representatives, sales people must understand, support and execute Manufacturer Company's business philosophy. As channel defenders, salespeople work to achieve satisfaction for their distributor. They stand up for the distributor's rights and seek to resolve conflicts in an equitable and acceptable manner. As trainers, manufacturer salespeople must teach, coach and train manufacturer channel members. All of the above can increase distributor's satisfaction level and act as motivational factors. Because, by all of those sales will be higher, conflict will be less and distributors will be overall benefited. Use pull strategy to motivate and satisfy distributors Pull strategy motivates end user to approach manufacturer channel of distribution and "call out" for your (manufacturer) product. So, distributor's sales will be increased. A customer than asks for a specific manufacturer product won't be satisfied with any thing else. So distributors must sell your (manufacturer) product and make more profit. Channel Motivation program Before going to design a successful motivational program, manufacturer must understand the motivational personality of manufacturer channel of distribution. What works well in one industry doesn't necessarily perform favorably in another. Better to find out how distributors


compensate their salespeople, and tailor manufacturer motivational plans accordingly. In this way manufacturers closely and strategically match manufacturer distributor's business direction. For example, global Beverage can manage a program for distributor's salespeople and announce 2% of the total sales (every day) profit for a specific period time. It's very important to vary manufacturer motivational program calendar each year. Always use the three part motivational program for the distributors, because you (manufacturer) certainly do not want to be criticized for giving reward that are so easy to sell do not produce favorable and profitable sales result. E=R=R Efforts = Results = Rewards

In other words, make sure that the rewards manufacturer give out are in proportion of the results obtained from the efforts exerted. Don't make it too easy for a distributor salesperson to earn a reward from manufacturer incentive program. This type of motivational program can motivate the distributor's sales person and motivate them for giving more effort.Field visit by manufacturer personnel with the distributors can create friendly and comfortable business relation Regular field visit by company management offer several benefits. First, distributors show that you (manufacturer) are sincerely interested in the success of the manufacturer-distributor relationship. Second, distributors introduce company personnel to the business situation of your channel members- an asset when a problem arises. Those can easily motivate distributor and build a relationship between manufacturer and distributors. Arrange Distributors Club: There have various way to show that manufacturer is take care their distributors. By this way manufacturer can arrange distributors club, where distributors and company personnel meeting together in every month. Both of them discuss about their opportunity, problems and limitations. All the discuss topics can makes a good communication between company and the Distributors. All of those things can motivate distributors to be loyal and give more effort for the distribution channel. Aware the distributors at the right time: Before arrange any program or promotional activity manufacturer give the massage to the distributors. Sometime company don’t provide their giving promotional information to their distributors. Distributors aware about different program just before start it. Otherwise, they must face problems in the market. This is distributors right to know about different program because they handle all those. It's better to aware them from the beginning of the program.


Increase non-monetary enticements: Non-monetary enticements always motivate a distributor, because non-monetary enticements are supporting help from the manufacturer. Non-monetary enticement can be any thing except cash. Some companies only served free cost delivery for their distributors. The result was dissatisfied middlemen. By giving dress for the distributor's sales personnel, transportation support incase of problem, give a fridge for distributor point, arrange training program for the salesmen or give some free product during any festival period can increase distributor's level of satisfaction and motivate them for giving more effort for the channel of distribution. Retailers point of view: Retailers are the last hand for serving product to the end user. So, they play a real vital role in the channel of distribution. We surveyed two houndred retail outlets and talked with them and try to understand what make them satisfy and motivate as well. After all the findings and analysis, we found some important issue which can easily motivate a retailer for selling a specific brand and increase their level of satisfaction. Increase profit margin: It was proved that more profit margin increase retailers level of satisfaction and motivation for selling more product from my project proposition. Different Soft Drink Manufacturer Company gave different level of profit margin to the retailers. Some companies give a very hard level of profit margin to the retailers, so ultimately they are not satisfied. Retailers have the power to convince an end user by different way. Profit margin can easily make a retailer loyal for a specific brand. Because, he can make more profit from it. This is the time for all companies to increase their profit margin for the retailers and make them loyal for their product. Offer more non-monetary enticements: Non-monetary enticement can be any thing except hard cash. It can be free product, a fridge, product rack or a neon sign for retail store. Different Soft Drink Manufacturer Company arranges free product culture in the market and retailers are more interested with this program, because it can easily increase their total profit. In summer season sometime company do not give any single free product to the retailers. So, retailers are very disappointed. Its better to give some free product to the retailers for motivate them. Company can give more neon signboard to the retailers, it's also act as a promotional activity. During summertime end user demand for chilled drink from retailers and with out a fridge. It's not possible to serve chilled drink. To increase retailers satisfaction level Gcompany can give them big fridge for serve their drink to end-user. Monitor retailer's satisfaction and motivation: After every six month all Beverage company can arrange survey program for understanding retailer's satisfaction level. After conducting survey, different program can be arranged for increasing retailers satisfaction level. Which can also motivate retailers to make them loyal for company.


Conclusion Bangladesh is mainly an agricultural country with some industry. But it has a great potential to develop industries in different sectors. Beverage industry is one of those potential sectors. There is a great demand of soft drinks among the people especially among teenagers. This demand is increases day by day. Recently Company campaigns involved in producing and marketing soft drinks. The market becomes very much competitive now a day and more new companies are entered in this sector as it’s proving as profitable industry. Beverage is one of the most popular Drinks in international market as well as Bangladesh. In all seasons Beverage is widely consumed by the customers the demand becomes high to the customers. There is a wide demand and high prospects for the Beverage. Today’s organizations work in a war zone of rapidly changing competitors, technological advances, new rules and diminishing customer loyalty. Organizations find themselves competing in a race where the road signs and rules keep changing, where there is no finish line, no permanent “Win”. They simply must keep racing, hopefully in a direction where the mass people want them to go. Today’s companies must urgently and critically rethink their business mission and marketing strategies. Instead of operating in a marketplace of fixed and known competitors and stable customer preferences, today’s companies work in a war zone of rapidly changing competitors, technological advances, new laws, managed trade policies, and diminishing customer loyalty. Companies find themselves competing in a race where the road signs and rules keep changing, where there is no finish line, no permanent “win”. They simply must keep racing, hopefully in a direction where the public wants them to go. After conduction survey and after made all the calculation I found that there is a gap between company and middlemen. Distributors doing their act only for commission and monetary profit, but distributors are not satisfied with the companies commission and monetary enticement. Distributors affecting by different problems during distribution but manufacturers have no idea about those and no interest to help them. Distributors received only free cost delivery as non-monetary enticement and nothing else. Distributors feel insulted during any program and promotional period, because they aware about all the things just before started it. The over all relationship is good and sometime excellent but all of the distributors are not feel proud as a authorized distributor. Distributors don't have any club to protect their right .Maximum distributors were worried that they will be sued and lose their distributorship if they fail to fulfill all the contract criteria. Retailers directly serve the product to the end users, so they play a vital and strong role in the channel of distribution. Retailers sold different manufacturers products and from all of them they receive profit margin. Maximum retailers were not satisfied with profit margins. Retailers claimed that the Company given monetary enticement is comparably low. Majority retailers are not satisfied with the received profit margin and monetary enticement. They gave different reasons for that. Their satisfaction level is really bellowed with the non-monetary enticement and it was bellow 50%. Retailers think that manufacturer are not interest about retailer's satisfaction and busy to make money by using them.


Coke and Pepsi have a strong background internationally, which does not have others. Coke and Pepsi are the oldest beverage companies in Bangladesh. Therefore, the two companies’ management is much more experienced than that of the others. For this reason, it will take several years for the company to improve and to capture a healthy market share. Other hand R C ,Mojo,Uro,SunCrest,Buble Up,Virgin is a newly franchise company of beverage sector in Bangladesh. In the advertisement sector, Coke and Pepsi get the readymade T V ads from their neighbor country India like. India’s Coke and Pepsi companies give them the add to advertise in the T V. this is an era of information technology and satellite culture. So consumers specially who live in the city area, they can see the adds in different channels. This is an extra advantage for these two companies. That is why Coke and Pepsi do not need to spent extra money a lot for the commercial advertise making. They directly buy the ads from Coke and Pepsi Company of India. On the other hand, if R C,Mojo,Uro,Double Cola,SunCrest,Virgin wants to advertise their product on T V, they have to spend a big budget for making it. Few companies like Virgin ,Sun Crest,Mojo,Lemo,Rc,Uro,Double Cola,Fizz Up,Pran Cola emphasized on a specific side of the consumer segment. For example virgin Mojo targeted the young generation, those who are stylish and do not like to bother to carry the glass bottle. They offered the can system for them. Eventually they got a very good response from every segment of the consumer. The reason is they offered a can with in a reasonable price. PRAN emphasized on the fruit juice in 250ml glass bottle. On the other hand, R C,Mojo,Uro,Double Cola,SunCrest,Virgin , tried to cover every segment of the consumers by offering the as many package size as possible. In an under developed country like Bangladesh, soft drinks market like coke, Pepsi, Virgin , Sun Crest,Mojo,Lemo,Rc,Uro,Double Cola,Fizz Up,Pran Cola,etc. are really a blessing for the business sector. Deficits had been found in determining the satisfaction level of the customers, but eventually the deficits can be overlooked in comparison with the other drinks available beside the soft drinks business. But for the products providers it is essential to cover up the deficits in achieving the over all satisfaction of the customers, otherwise day by day if these deficits increase, then it might be a threat for their business and also for positive appraisals in future. From the overall research study it can be said that the customer satisfaction level of soft drinks is moderate. Companies should take the necessary steps to reduce the deviation of consumer expectation and consumer satisfaction to further its market position. In this paper some suggestions and recommendations have been given so that the companies can overcome those problems. If the companies produce Beverages as for the customer's choice and demand oriented, the consumers will be highly motivate to purchase the Beverages. Some quantitative measurement is done here just to take some correct qualitative decisions and recommendations. From the survey of 200 respondents only from Dhaka city, it is not possible to give accurate information, Beverage is marketed in different cities of Bangladesh. Even in context of Dhaka city that has a large population. The things which is important about this survey, it can give an initial measurement, which requires further improvement and research.


So, through the observation of the activities and information collected from the interview of participant such as wholesalers, retailers, customers it can be said that these companies must take initiative for a better marketing and promotional policy. In this condition continues the companies will be endangered and undergo less in the long run. But it is possible to expand these companies to a greater extant, if it can make use of its present opportunities and facilities properly and it will be possible for it to earn more profit than it is earning now. Therefore, the firm will have to give importance to perform the marketing activities efficiently.

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Appendix-1 Questionnaire Questionnaire for company management Management related questions: Company Name: Group of company name. Corporate address Factory address Main sales and distribution office address Name of the chief of the company Year of establishment Brief history of the organization Organizational structure Number of employees Objective of the company Vision of the company Mission of the company Percentage of overall market share of your organization in the beverage industry. Growth rate. Position in the market. Main competitor. Problems facing in this business. Main strength of your organization than competitors. What kind of technological change you adopted than others competitors? Please tell me about your raw materials for beverage. What is your marketing policy? Market position Strategies. Market segmentation system. Which advertising firm made your company’s advertisement? What are the distinctive features of your product which competitors are not providing? Target customer How many employees are there in the company? Would you pleas tell me the number & name of different department? What is your organizational structure? Do you take Training program for employee and workers? If you, so them, what is about that? How is the training expense? How many distributors do you have? Number of the sales force. Please describe your delivery system? Number of the vehicles owned by your company. Figure of the cooler supplied by your company. What is the deposit system for the cooler? Do you face any quality problem? Which promotional strategy is most effective for your product? How do you cover the beverage market? Nationwide/ Citywide. How many shop boards/ neon/halogen signs are being used for outdoor advertisement?


Do You have any Research and Development Division. General Questions: When have you start your business? Which raw materials needed for Beverage product? From where do you collect these raw materials? How many different raw materials are purchased every year? What factor do you consider for selecting the source of raw materials? What problems are faced collecting /purchasing raw materials? How do you think to solve these problems? Is there any problem for storage of product? What method is used for demand Forecasting? Do you have any segment in market? Please mention? Would you please tell me the reasons? Do you organization participation in social development activities? What is the amount of annual expenditure for there purpose? Market, Product And Production Related Question: What is reason to produce the existing product? Are you thinking of diversification your product? Have you made simplification of your products line at present? What types of Beverage product do you produce? What is the industrial demand of Beverage? What are your target markets? What is the reason? What is the amount annual expenditure for the quality control of your products? Do you have now any step to development the quality of existing product? What is your annual production target ? What was the amount of production in the last 5 years? If the target was not fulfilling, what was the reason for that? What is the nature of market? Questions Relating To Distribution: Level of distribution channel Number of distributors / dealers How is your selling system? Please specify the number of vehicles company owned . What is the frequency of distribution? Please describe your delivery system? Which areas are you now selling product to? What sort of middleman do you engage? How do you appoint middleman? Do you provide middleman's with others facilities? What factor do you consider in case the appointment middleman? How many representatives have engaged now? Do the representatives work area-wise? How many sales Representatives work in each area? What sort of facilities do you provide with them? Do you face problem from middleman? Hodo you solve the problem? What kind of helps do you offer to the middleman? What kind of transportation do you use? Is it of your Own or fare? What is the annual expenditure for transportation in fare? What is the reason if you used transpiration of your own or transportation in fare?


Which distribution strategy do you follow? A ) Company---distributor---retailer---consumer. B ) Company---retailer---consumer. Promotion Related Questions: What kind of media do you use advertising? What is reason to use this media? How much does each media cost annually? Do you Asses the effectiveness of your advertising? What kind of problems do you face in case of assessing advertising activities? What kind of sales promotion activities do you use? What do you think how to solve these problem? What is your total sale budget for advertisement? What is your media wise advertisement ratio? Which media is most useful communication channel? What are promotional activities you take for the customers? What are promotional activities you take for the traders? Last three years advertising budget. Method of determining advertising budget. 15.What are your slogans for the products? Questions Relating To Price: What method do you follow usually to set price? What are you expenditure sectors? What is the amount of current annual expense sector wisely? Do you have any program to control the expenses? What types of problems do you face in case setting prices? What is the way do you think to solve this problem? What policy do you follow for pricing? Sales Related Questions: Profit margin for the traders. What is the deposit against crates and bottles? Is there any credit facility to traders? How is the annual sales amount the different Brands? What factor do you consider for sales product? (a) In cash (b) in credit (c) In cash credit What problems do you faced in transportation of products? What is the way do you think to solve this problem? How do you collect order from customer or Buyer? What were the sales volumes last 5 years? What is the districts amount? Competition related Question: Which company do you complete with to? What is the style of competition? A)Price b) quality c) others Financial Related Questions: What is the quantity of this company total capital? How is your capital structure? What kind of problem do you face to collect capital?

(d) others.


Appendix-2 Questionnare For Consumer Instructions to fill up these questions: 1)- Chose your answer by giving the tick mark( 3) from the alternatives. 2)- write down with your comments in blank space or where equal to sign. Name : Occupation : Age : Gender : Residence : Date :

1 . Your monthly income a) Less than 5000 b) 5000-10000 c) 10000-20000 d) 20000-30000 e) Above 30000 2...In which area you are living? a) Motijhil b) Dhanmondi c) Mirpur d) Gulshan e) Uttara 3. What do you usually drink when you are thirsty (except normal water) ? a) Mineral water b)Soft drinks c) Juice d) Energy drinks 4 .Which brand of soft drinks do you prefer most? = 5 . Why do you prefer this soft drinks ? = 6 . Which things do you prefer about your preferred brand?


7 Do you consider any thing ,which is not good in your preferred brand? = 8 . What brand do you buy when you are not getting your preferred brand? = 9 . Did you have any other preferred brand ? = 10 .( If you have) Why you are not taking this brand at present? = 11 How frequently do you using beverage? a) very frequently b) frequently c) occasionally 12 .Which attributes of following do you considers most when you purchase a brand ? a) price b)quality c)company image d)availability 13 .what price category do you think most resonable for beverage ? a) tk .10-20 b) tk.15-25 c) tk.20-40 14 . Do you always try to test when any new brand comes in the market? a) Yes b) Not 15 . Write some brands of soft drinks which you normally try to avoid. a) = Why = a) = Why = a) = Why = a) = Why = 16 . what types of benefit you expect from your preferred brand? = 17 . where do you drink soft drinks too much? (Try to serialize according to frequency) = 18 . what type of package for soft drinks you like most for yourself? a) Glass bottle b)Plastic bottle c) Cann d) Plastic glass e) = 19 . what type of package for soft drinks you like most for your house/ group/party use? a) Glass bottle b) Pet bottle c) Can d) Plastic glass 20 .Which information source played major role to choose your brand ? a) family b )friends c )retailer d) electronic media e )print media f )poster g )billbord h) liflet I )seminer 21 . Which media’s advertisement for soft drinks do you like most? a) T. V b) Radio c) Newspaper d) Bill board e) Poster f) Liflet 22 . For TV ads, which channel is most preferred by you? a) BTV b) Channel I c) E TV d) A T N Bangla f) ntv g)Bangla vision h) Baisakhi i)Bijoy 23 . Which brand’s price you prefer? a) Coca Cola b) Rc Cola c) Pepsi cola d) Virgin Cola e) Sun crest Cola f) Others = 24 .To what extent are you agree to pay 10 tk for 250 ml ? a)Strongly b)disagree c)Neither agree d) Agree e) Strongly agree f) Disagree 25 . are you ready to pay 5 tk for 175 ml? a) yes b) no


26 .To what extent you will be satisfied to pay 5 tk for 175 ml? a)Strongly b)disagree c)Neither agree d) Agree e) Strongly agree f) Disagree 27 . Which brand of white soft drinks you prefer to buy? a) 7-Up b) Sprite c) Upper-10 d) Fij-Up e) Bubble-Up f) Mountain Due g) Others = 28 . Do you prefer to buy lemon type of soft drinks? a) Yes. b) No 29 . Which brand of lemon soft drinks you prefer to buy? a) RC Lemon

b) Uro Lemon

c) Virgin Lemon

e) Sun crest Lemon

f) Others

30 . Which size of lemon you prefer to buy ? a) 250 ml

b) 300 ml

c) 1 liter

d) 1.5 Liter

e) 2.00 Liter

f) Others

31 . Which brand of Juice you prefer ? why you choose it? a) Slice = b) Pran /Aarong = c) Starship Juice = d) Sezen mango Juice = e) Danish Juice = f) Fanta / Mirinda = g) Sunfil / Others = 32 . Which size of juice you prefer to buy ? a) 2 Liter

b) 1.5 Liter

c) 1 Liter

d) .5 Liter

e) 250 ml.

f) Others

33 . Can you remember any slogan of any soft drink? Please write down. = 34 . Do you buy more when soft drinks companies offer extra amount free? a) Yes b) No 35 . Do you buy another brand instead of your favorite brand when that companies offer extra free? a)Yes b) No 36 . Do prefer to drink energy drinks? Yes. Why? No. Why? 37 . Which brand of energy drinks you prefer ? why you choose it? a) Shark (Bottle) = b) Shark (Cann) = c) Sapid = d) Black panther = e) Jangle King =


f) Tiger = g) DX –Bull = h) Red Eagle = I) Others = 38 . Which size of energy drinks you prefer to buy ? a) 250 ml b) 150 ml c) 175 ml d) 300 ml e) Others = 39 ..If you like to have Lemon, which one is best by taste? a) Cloudy lemon b) Mirinda Lemon c)Sprite d) 7UP e) Bubble UP f)Upper 10 40 For Diet which brand you like most? a) Coke b) Pepsi c)R C d) Virgin e)Others. 41 . If companies offer you some discount or free product do you agree to buy more beverage ? □ Yes □ No 42 . Do you think Coca cola’s new product will hamper total sells of others ? □ Yes □ No 43 . What is your suggestion to be improved? □ Quality □ Taste □ Price □ Packaging □ Size 44 . What are the reasons of your liking a particular Brand (In cola flavor)? COCA REASONS COLA PEPSI RC VIRGIN TASTE SWEETNESS STRONG PUNCH WELL BALANCED 45 .What are the reasons of your not liking a particular Brand (In cola flavor)? REASONS TASTE TASTELESS BITTER TASTE TOO SWEET NOT SWEET TOO STRONG NOT STRONG NO PUNCH

COCA COLA

PEPSI

RC COLA

VIRGIN


46 . What are the reasons of your liking a particular Brand (In orange flavor)? MIRIND RC VIRGIN REASONS FANTA A ORANGE ORANGE TASTE SWEETNESS STRONG PUNCH WELL BALANCED 47 .What are the reasons of your not liking a particular Brand (In orange flavor)? REASON FANTA HORIBBLE SOUR TASTE TASTELESS BITTER TASTE TOO SWEET NOT SWEET TOO STRONG NOT STRONG NO PUNCH

RC ORANGE

MIRINDA

VIRGIN ORANGE

48. What are the reasons of your liking a particular Brand (In clear flavor)? REASONS TASTE SWEETNESS STRONG PUNCH WELL BALANCED

SPRITE

7UP

UPPER 10

49 .What are the reasons of your not liking a particular Brand (In clear flavor)? REASONS SOUR TASTE TASTELESS BITTER TASTE TOO SWEET NOT SWEET TOO STRONG NOT STRONG NO PUNCH

SPRITE

7UP

UPPER 10

BUBBLE UP


50 .What are the reasons of your liking a particular Brand (In cloudy lemon flavor)? MIRINDA RC REASONS LEMON LEMON KICKAPOO TASTE SWEETNESS STRONG PUNCH WELL BALANCED 51 .What are the reasons of your not liking a particular Brand (In cloudy lemon flavor)? MIRINDA RC REASONS LEMON LEMON KICKAPOO SOUR NO PUNCH TOO STRONG NOT SWEET TOO SWEET TASTELESS TASTELESS NOT STRONG Appendix-3 Questionnare For Retailer/Shop Instructions to fill up these questions: 1)- Chose your answer by giving the tick mark( 3) from the alternatives. 2)- write down with your comments in blank space or where equal to sign. Name : Shop Name : Location : Shop type : Date :

1. What kinds of beverage do you sell more? (Please try to serial according to sales volume) a) Cola b) White beverage c) Lemon d) Orange e) Juice f) Others 2 .Which type of brand need push for seel a) suncrest b) mojo c) lemu d) suncrest e) fizz up f) uro cola g) mirinda h) sunfill 3 .Which brand gives you most profit margins for trading their product? a)Coke b) Pepsi c) R C cola d) Virgin e) Others.


4 .Which flavor does the consumer mostly like? a)Cola b)Orange c)Cloudy lemon d) Mangola e) Diet f) Clear lemon 5 .What is the reason for more seel in specific brand ? a) Low price b) High quality c) Availability d) Effective promotional method 6 .In which season beverage seel more ? a) summer b) Winter c) Spring 7 . What is the approximate average quantity that is sold daily = 8 .After the order how many days you need to received the beverage ? a) 2-5 days b) 5-8 days c) 8-12 days 9 .After order how much times you expect to get beverage ? a) 24-36 hours b) 36-48 hours c) 48-60 Which brand do you keep? a)Coke b) Pepsi c) R C cola d) Virgin e) Others. 11 . Why do you sell that particular brand. a) High Quality b) Price c) Taste d) Consumers Prefer more. E) Std. size f) Others 12 . How many crates do you sell the followings every week? = 13 .What types of sales promotion company’s offer for sell their brand ? a) Trade allowance b) Trade off c) Incentives d) others 14 .Do you think is it necessary to change the shape of bottle.If yes what types of change you think ? a) Yes b) No 15 .Which media is more effective to inform you about beverage ? a) Ellectronic media b) Web site c) print media d) Sales person 16 .What type of package in case of beverage customer wants more? (please give number according to demand) a) Glass bottle b) Plastic litter bottle c) Cann d) Plastic glass e) = f) = 17 .What size of beverage customer wants more? A) Glass bottle 250 ml b) Glass bottle 500 ml c) Can d) Mobile e) 1-Liter f) 1.5-Liter g) 2- Liter h) = 18 .Which company do you think best? Why? a) Coca Cola = b) Rc = c) Pepsi = d) Sun crest =e) Virgin =f) Uro = g) Others = 19 .Which company’s sales people do you think best? a) Coca Cola b) Rc c) Pepsi d) Sun crest e) Virgin f) Uro f) Others = 20 . Which company gives you more benefit ? a) Coca Cola b) Rc c) Pepsi d) Virgin e) Uro f) Others 21 . What type of benefit? a) Extra bottle b) Less price c) Good transaction d) Good Distribution 22 . Customer praise more about which company? a) Coca Cola b) Rc c) Pepsi d) Sun crest e) Virgin f) Uro g) Others 23 . Do you remember any thing which customer praise about any company ? = 24 . Do you remember any thing which customer criticize about any company ? = 25 . Which brand of white soft drinks you sale more ?


a) 7-Up b) Sprite c) Upper-10 d) Fij-Up e) Bubble-Up f) Mountain Due g) Mojoh) Lemu i) Pran j) Coca-Cola k) Pepsi 26. Which brand of lemon soft drinks Customer prefer to buy? a) RC Lemon b) Uro Lemon c) Virgin Lemon d) Sun crest Lemon e) Others 27. Which size of lemon customer buy more ? a) 250 ml b) 300 ml c) 1 liter d) 1.5 Liter e) 2.00 Liter f) Others = 28 .What is most important thing for the beverage product? a)Brand name b) Profit margin c) Availability d) Consumer demande) efficient sales force. 29 . Which brand of beverage customer buy more ? a) Cola b) Lemon c) Clear d) Orange 30 . Which size of energy drinks customer buy more ? a) 250 ml b) 150 ml c) 175 ml d) 300 ml e) Others = 31 . Comment about any thing related with beverage. = 32 .Which package is preferred for individual consumer’s need? a) Pet Bottle b) Can c) Aseptic Pack d) Glass Bottle 33 .Which package is mostly preferred for family need? a) 1literbottle b) 1.5liter bottle c) Pet2Liter d) 2Liter glass bottle 34 .Which size of the beverage is sold most of the time. a) 250 ml b) 500 ml c) 1 liter d) 1.5 liter 35 .Which brand’s lemon is most popular? a) Sprite b) 7UP c) Cloudy lemon d) Upper 10/e) Mirinda lemon f) Bubble Up. 36 .Which brand’s diet is most popular? a)Coke b) Pepsi c) R C d) Virgin e) Others 37 .Which medium’s advertisement influence you most? a) Press b) Television c) Out door d) Pop e) Radio 38 .Availability of beverage product is ? a) Highly convenient b) moderately convenient c) Just available d) Not available 39 .Performance of sales force of beverage company a) Extremely well organized b) Moderately organized c) Good d) Poor 40 .Which company takes the prompt action for any damage of the product? a)Coke b) Pepsi c) RC d) Virgin 41 .What is the company wise cooler position system? COOLER COKE PEPSI RC PROVIDERS COLA BY COMPANY

VIRGIN

RETAILERS OWNED 42 .Who does pay the signboards money? MONEY COKE PAID BY COMPANY DISTRIBUTORS RETAILERS

PEPSI

RC COLA VIRGIN


CONFECTIONERY OWNER 43 .What are the promotional activities of the beverage companies? PROMO COKE PEPSI TIONAL ACTIVIT IES OPENER T-SHIRT FREE BOTTLES DISCOUNT OF MONEY GLASS

RC COLA

VIRGIN

44. Have you get complain from end users about use of beverage ? a) sometime b) very rare c) absolutely notd) very often 45 . Do you face any problem while selling Virgin ( Please mention uniquely)? (Problem) a) 250 ml

□ Yes □ No. b)500 ml →

□ Yes □ No.

c) 1 liter → □ Yes □ No. d)1.5 liter → □ Yes □ No. 46 . If yes, Please mention with description ( Please mention uniquely)? a) 250 ml → …………………………………………………………… …………………………………………………………… b) 500 ml → ………………………………………………………….... …………………………………………………………… c) 1 liter

→ …………………………………………………………… ……………………………………………………………

d) 1.5 liter → …………………………………………………………... …………………………………………………………… 47 . What’s your opinion about it’s availability from the distributor ? a) Much Available b) Available c) Average d) Less available e) Not available 48.Rank the name of soft drinks according to your sales. a) Coke b) RC c) Pepsi d) Virgin e) Urocola f) Suncrest g) Bubble up 49 . Rank the size of soft drinks according to your sales. a) 250 ml b) 500 ml c) 1 liter d) 1.5 liter


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