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A REPORT ON THE COMPARATIVE STUDY OF THE BEVERAGE COMPANIES

1.0 INTRODUCTION In this report we have studied five beverage company profiles. They supply different kinds of soft drinks, different, taste, color, flavor such as cola lemon and the like. To compare the data among these three groups we have used here our view point, personal experience. We have collected this data from our neighbors, family members. In this report three beverage companies are Akij group, global beverage, Partex beverage. There is lot of things to compare among them but we can compare among their market segmentation such as age, occupation, gender their current market positioning and the like. 2.0 COMPANY PROFILE (MOJO)

2.1 Vision Any company’s vision is actually the dream to which the company always strives to reach where it may become possible or not. Here it is also not apart for Akij Group. Expanding the business in the abroad fully and becoming one of the market leaders internationally- this company thinks in this way as a part of their vision. 2.2 Mission The mission of Akij Group is to be the market leader by 2009 through their best effort, suitable and competitive marketing strategy and the consumers support. Now they are in the position of challenger and their vision focuses on those missions, goals and objectives which will make them able to be the leader from the challenger to the leader in the market. 2.3 Goal The company’s goal is to maximizing the market share in their every categorized business including Akij Food & Beverage Ltd, Akij Cement Company Ltd, Dhaka Tobacco Industries, Akij Textile Mills Ltd and Akij Particle Board Mills Ltd. 2.4 Objective The objective of Akij Group is to provide the quality products and services in such a form that the customers demand. 2.5 Strategy The company always believes in pull strategy rather than push strategy. They first of all find out the customers demand about how, when, where, and what type of product ad services


they want. Then according to that they provide their services at the right place and in the right time. 2.6 Outline of Akij Group History of Akij Group stretches back to later part of the forties. In its infancy, the Group started in humble way with jute trading which was known as the golden fiber of the country, earning highest amount of foreign exchange. Akij Group's ceaseless efforts with dynamic management and support from our numerous clients have led our Group in diversifying its business activities. In the second phase, the Group went into manufacturing handmade cigarettes popularly known as bides. This sector gave a real boost to the revenue earning of the Group as well as making a substantial contribution to government exchequer. With the passage of time, the Group undertook new ventures and presently there are 15 units of industries under its umbrella like cigarettes, handmade cigarettes, printing & packaging, textiles, hand board, pharmaceutical, leather processing and real-estate business are in operation, catering jobs for more that 32,000 people in various categories. The Group has plans for setting up more projects. The projects are already in pipeline. Foreign investors have shown keen interest in joining with us for joint ventures. The matter is under our active consideration and will hopefully soon mature. This will also help the nation's economy growth and will create job opportunities to various professionals. Akij Group is also involved in socio-cultural activities. The Group has been operating a sizeable orphanage free of charge in district town. The Group has also acquired a modern mother & children hospital previously owned by Save the Children (UK). The hospital is being operated as a non-profitable concern by Ad-Din Welfare Trust. AKIJ GROUP Akij Jute Mills Ltd. Akij Match Factory Ltd. Akij Food & Beverage Ltd. Akij Cement Company Ltd. Dhaka Tobacco Industries Akij Textile Mills Ltd. Akij Particle Board Mills Ltd. Akij Printing & Packaging Ltd Akij Corporation Limited. Composition of Akij Group of Companies Ltd. 2.6.1 Akij Food & Beverage Ltd. Akij Food & Beverage Ltd. has been established at a beautiful site Krishnapura, Dhamrai of Dhaka. It has come with the best food & beverage in Bangladesh. There are various types of drink. MOJO is the brand name of cola, Lemu is the brand name of Lemon and Speed is the brand name of energy drink. Immediately after the introduction of the brand it became very popular among its consumer because of the high quality and intensive distribution in every nook and corner of the country.


Cheecky Monkey is the brand name of banana chips produced from this factory. It also is becoming popular chips in Bangladesh. Most of our Raw materials come from various foreign countries. The quality is very strictly controlled. At every stage, non standard products are rejected. 2.7 Government Honors for Export For outstanding performance in export, the company achieved “The National Export Trophy-2001 (Gold)” for Navy Special Filter Cigarette export and “The National Export Trophy (Silver)” for hand made cigarette (popularly known as bidi) export as well as a pioneer employment provider with employment strength of 60,000 staff and officer in different categories. 2.8 Marketing Government ban on tobacco and anti tobacco campaign has induced our marketing team to become innovative in their marketing strategies. Marketing operations at Akij Corporation Ltd. includes a range of activities like Brand Management, Trade Marketing and Distribution and Marketing Research. 2.9 Human Resource The Human Resource department is responsible for developing and sustaining a workforce for Akij Corporation Ltd. There is separate Human Resource department wing for Akij Corporation Ltd for running day to day administrative work of Marketing Department. 2.10 Get in touch with Akij Group of Companies: Akij Chamber 73, Dilkusha Commercial Area Dhaka - 1000, Bangladesh Phone :( +880-2)9563008-9, 7169017-8 Fax :( +880-2)9564519 e-mail:info@akij.net 3.0 PROFILE OF THE SEGMENTATION AND TARGETMARKET 3.1 Segmentation: Akij group has segmented according to the homogenous segmentation where the consumers represent the same type of demographical, psycho graphical, cultural and social factors. Their attitude, status and lifestyle focuses on same perspective. According to the following factors the segmentation of MOJO has been done3.1.1 Age MOJO’s primary target was only the young generation where the age may vary from 16-27. But it is not limited within this age. It has also spread out among the children noticeably as well as the people above 27 years. 3.1.2 Gender Both young boys and girls are the target market for the MOJO. It is not specially made for any particular gender what actually happens for any type of cola drink. 3.1.3 Occupation Occupation is not clearly defined for the target market of MOJO; however where the age


varies within the young generation as well as children so it can easily be understood that most of them will be whether student or doing any job or business. 3.1.4 Income Actually MOJO has emphasized on the lifestyle and behavior of consumers more rather than the income. They think that it is really affordable to buy a MOJO (especially 250 ml) for their target market where their income is minimum 5000 and for the students it may be less than that. 3.1.5 Location Almost all the places of urban and rural area are under the MOJO’s distribution. Especially in each and every part of the Dhaka and Chittagong city MOJO is available. The company has emphasized on Dhaka where more than half of total sales (52%) comes from only Dhaka. 3.1.6 Social Class MOJO is targeted for the upper part of the lower class, middle class, upper middle class, and lower part of the upper class of the society. 3.1.7 Lifestyle The targeted market of MOJO is basically young generation who like gossiping, chatting, hanging with friends, making fun, watching movies, listening music. MOJO has also focused on their customer’s lifestyle in product, advertising and packaging. 3.1.8 Personality The customers of the MOJO are mostly action oriented people which include especially the experiencers. It also focuses the personality of the status oriented people including achievers and strivers. 3.2 Target Market: Cola drinks usually follow an undifferentiated marketing strategy to target their consumer. Keeping this fact in mind, we conducted a sample survey by selecting random sample from different places. The following discussion will attempt to analyze the profile of the target market based on the sample group. 3.2.1 Age Age is the major determinants in targeting the consumers. MOJO reflects the Bangladeshi culture and it represents youth. From my survey, I have found that MOJO is most preferred in the age group between 20-25 years (85% of 100). Moreover, the least MOJO preference comes from two age groups: 25-3and 35-45 years, about 1%.

AGE More than 45 1.0% 35-45 1.0% 25-35

15-20

4.0%

9.0%

20-25 85.0%


Figure 2: Age distribution of target customer 3.2.2 Sex Beverage is used for thirst-quenching purpose and this product is gender neutral, meaning there is no such kind of obligation to consume the product for male or female. However, from our survey outcome, we have found that 71% of the consumers are male and 29% are female from 100. All the respondents are from urban location. SEX female 29.0%

male 71.0%

Figure 3: Gender distribution of target customer 3.2.3 Occupation & Income Consumers’ purchasing pattern, lifestyle and status largely depend on their occupation and average monthly income of the family. The social class of the target respondents was determined by their income or taking from family. MOJO is a low involvement product and it is good enough to consume by upper and middle class. From the survey respondents, students are the most who purchase MOJO and their income level is less than 5000 taka. Business people, private service personnel and other earning people consume less amount of MOJO although their income is comparatively high than the students.

OCCUPATION Private Service Other 3.0%

Student 88.0%

6.0% Businessman 3.0%


Figure 4: Occupation diversity of target custom 4.0 POSOTIONING STRATEGY The term positioning refers to placing a brand in that part of the market where it will receive a favorable reception compared to competing products. My report is on “MOJO” cola and we have kept this name out of the selection criteria. The motive was to see whether people recommend MOJO or not. percent 60 50 40 30 percent

20 10 0

percent

Mojo

Coca cola

Pepsi

others

9

54

28

9

Figure 16: MOJO’s position in target customers’ mind 5.0 PRODUCT PROFILE 5.1 Product: MOJO Cola It has been a long time that Akij Food & Beverage Ltd. has been established at a beautiful site Krishnapura, Dhamrai of Dhaka. It has come with the best food & beverage in Bangladesh. Among its beverages (Lemu, Speed & MOJO); MOJO is the most popular drink among the young people as well as the children for its fantastic packaging, TVC and good taste.

It’s Inside “U” MOJO was launched on 14th April, 2005 at Pohela Baishakh. Introduction of the brand MOJO became very popular among its consumer because of the high quality and intensive distribution in every nook and corner of the country. MOJO focuses on mainly young people who like the enjoyment and fun. The word “MOJO”


has come from the word “Moja” (tasty). From the very beginning of its launching the company has provided subsequent and continuous heavy advertisement through different mess media. It has also given free samples to the target market. It also did an exclusive road show and their exposing to the customers during the Trade Fair 2006 was very much gorgeous. As a part of its success it can be mentioned here that during this recent year the company earned 54 crore only selling the MOJO where 52% of total sale has been made in Dhaka city. That means it has been very much popular in Dhaka city than any other division. The product MOJO cola has come with the following variations in the market• 250 ml bottle • 500 ml bottle • 1000 ml or 1 liter bottle • 150 ml can The MOJO Cola has been made with a proper technology. So there is no chance to occur fluctuation in taste. The cola drinks contain a very strong taste which can compete with the market leader Coca-Cola and RC cola. As a member of the Akij Food & Beverage, MOJO is manufactured in the factory which is situated in Krishnapura, Dhamrai, and Dhaka, Bangladesh. The beautiful and colorful packaging of MOJO attracts the customer. It consists of red, white, black, blue, yellow, and green and so on. It includes some everyday aspects of our day-to-day life such as rickshaw, truck are plying on the road, building, football, cricket ball, cell phone, antenna, electric wear, a boy with a guitar. The size of bottle (specially the 250 ml) and can is handy which the customers like most. The packaging also includes the ingredients of MOJO. The word MOJO has been written in both English and Arabic. The pay off line for MOJO is “It’s inside u”. The ingredients that are used to make the MOJO are---Refined Sugar, ---Carbon Dioxide, ---Natural Flavor, ---Caramel Color, ---Acidulate, ---Caffeine etc. Nutrition facts per 100 ml are • Energy = 43 k cl. • Fat = 0.00 gm • Protein = 0.00 gm • Carbohydrate = 10.5 gm 6.0 PROMOTIONAL ACTIVITIES To establish a product in market companies need to promote their product in front of the target customer. Now a day advertisement has become the war field for the marketers. MOJO cola is also trying to fight with their competitors in the field of advertisement. Nevertheless, we all know that good advertisement is necessary to establish a product. Catchy advertisement can ensure the success in the battlefield. After launching MOJO cola trying to establish itself in the market and some of the cases they succeed. Now we try to show how MOJO concentrating on their promotional activities. The MOJO Cola has been targeted for the young generation is designed for fun loving young adults. • Television, • Newspaper, • Radio Today & Radio Furti, • Poster, shop signs & Billboards,


• • •

•Street/road Show & Concerts - all are used for promotion of MOJO, Sponsorship of different special event such as reunion, Free sampling of MOJO has been done in many Universities as operant conditioning to motivate the people to make the second purchase. MOJO has also gone for an innovative idea during this Cricket World Cup Cricket. They have also made the world’s largest cricket bat (70 feet), which has created a big attraction of the target customers.

6.1 CURRENT PROMOTIONAL SCENARIO OF MOJO In our country, marketers do promotional activities through billboards, TV ads, sponsorship, newspaper ads, sales promotion, point of purchase ads and distribution. In few of the cases, MOJO cola is ahead of the competitors and in few cases, they are not up to the mark. At first, we will describe the cases where MOJO cola is still behind their competitors, what they are doing, and what will change their environment. 6.2 SUGGESTIVE PROMOTIONAL TOOLS 6.2.1 Billboards In this case, MOJO cola is still beside of their competitors. We can find out that the percentage of MOJO cola’s billboard ads are very little with compared to their competitors. Around the country, they failed to bring their concentration on it for this there is little awareness among the people. As an example in Dhaka city, MOJO cola placed their billboards in some places where it is very tough to attention of the target customers.


6.2.2 Newspaper Ads The number of paper ads should have to be increased. Otherwise, they cannot make mass people aware about their product. It should also contain high imagery, relevant with product MOJO cola. Newspaper Ad Operant Conditioning Encouraging the target customer to participate and win some attractive prizes by consuming MOJO. This partial consumption can lead to a permanent change in behavior in future

6.2.3 TVCs The frequencies of the TV ads have to be increased. People who watch TV regularly are seeking for innovative things made by the marketers. They pretty much bored with the traditional ads. So if MOJO cola bring new thing with their ads them it will be a turning point for their sale. People will get more interest in their product and as a result, they can be the loyal customer of this product. So TV ads should be brought with a new format, with more new things so that it can catch the target aspect with the new one.


Example # 1 Snap Shot from MOJO’s TVC Classical Conditioning As cricket generate a positive response to us, associating cricket with MOJO through TVC can increase the chance of generating the same positive response to the brand

Example # 2 Snap Shot from MOJO’s TVC Classical Conditioning As Bakharkhani (traditional food of Dhaka) generate a positive response to us, associating Bakharkhani with MOJO through TVC can increase the chance of generating the same positive response to the brand

6.2.4 Sponsorship Till now MOJO cola make sponsorship of few events like concerts, nabanno utsav, bangla noboborsho etc. they should include cyber café, canteens of university, fast food shop and other places where people goes frequently. By doing so they can be with the target audience and we will find more aware people. 6.2.5 Sales Promotion They should in for massive sales promotion to attract people from other drinks. 6.2.6 Road Shows When they first came in the market, they arranged road shows in some prestigious universities in Bangladesh. Frequent road shows can be effective for them. During world cup football and cricket they arranged world cup mania, and if they do so once or twice in a year that will be more helpful for them in the future. 6.2.7 Retailer Store Ads Most of retail shops use refrigerators supplied by Soft Drink Company. The mail condition the retailer faces that they must keep the corresponding soft drink (which company provides


refrigerators) first then they can keep some other thing. These refrigerators are posted in a way that the people can easily recognize their brand. However, MOJO does not have such type of arrangement. For this sometimes, we found that MOJO cola is out of the refrigerators to make space for other drinks. On the other hand, MOJO sponsors very few of the shop sign of the retail stores, cafeterias, restaurants etc like other brands named Coca-Cola, Pepsi etc. There is a point to add: there was also a demand-supply disorder at the point of the launching. As a result, it failed to retain the booming demand that occurred due to the successful TVC. Although the product has a moderate demand now a days it is not supplied accordingly. As a result, retailers do not have the product. Sometimes consumers cannot buy it when they want to, due to shortage of supply. They should supply their own refrigerators to the retailers, so that the drinks can always be kept cool. The supply of drinks should meet up the demands. If they supply less then people will fail to purchase MOJO cola whenever they intend to buy them. Therefore, in this field they need to bring their concentration. 7.0 DISTRIBUTION OF MOJO The distribution of MOJO is strong enough as it is quite available in every targeted area. To distribute this product the company follows the following distribution channelManufacturer Wholesaler Retailer Consumer For the product availability the customers can get MOJO at any place when they need it. It is seen that this product has been successful to occupy the refrigerators in the outlets so that is found chilled. The Distribution Channel Looks Like Manufacturer (Akij Food & Beverage Ltd)

Wholesaler/ Distributor

Retailers (Countrywide)

Consumers

Figure: Distribution Channel of MOJO


8.0 PRICING STRATEGY The three different sizes of MOJO cola have been priced differently. • 250 ml bottle = 12 tk. • 500 ml bottle = 20 tk. • 1 liter bottle = 35 tk. • 150 ml can = 12 tk. Here wholesalers take 0.5 -1.5 tk. and retailers take 2.00-2.5 tk as profit. Again comparing to the competitors product, the price is low enough to encourage the target market to shift their brands towards MOJO. 9.0 FUTURE PLAN REGARDING THE STRATEGY The immediate marketing goals are summarized in the following key objectives: 1. Have a cumulative 1000000 customers base by the end of 2010. 2. Set up a strong distribution channel by careful selection and proper execution of companies strategies. 3. Provide the most attractive and affordable products and services to the customers. 4. Aggressive market promotion and branding through effective advertisement and Promotion. 10.0 COMPANY PROFILE (RC COLA)

10.1 Vision Any company’s vision is actually the dream to which the company always strives to reach where it may become possible or not. Here it is also not apart for Partex Group. 10.2 Mission The mission of Partex Group is to provide value at an economic cost, progress in diversity, and continue to contribute to the growth of industrialization in Bangladesh by being the market challenger. 10.3 Goal The company’s goal is to maximizing the market share in their every categorized business including Partex Boards & Doors (Star Particle Board Mills), Partex Furniture Industries Ltd, Danish Food Products, Partex Beverage, Partex Plastics, Dhakacom (ISP), Partex Laminates Ltd, Amber Pulp & Paper, Amber Cotton, Trading & Shipping. 10.4 Objective The objective of Partex Group is to provide the quality products and services in such a form that the customers demand. 10.5 Strategy The company always believes in pull strategy rather than push strategy. They first of all find out the customers demand about how, when, where, and what type of product ad services they want. Then according to that they provide their services at the right place and in the right time. 10.6 Outline of Partex Beverage


In 1994, Mr. M. A. Hashem, Chairman of Partex Group visited an International Trade Exhibition in the US, where he happened to meet the executives of Royal Crown Cola Co. International. From then on he started conceptualizing the idea of “RC� beverage brand in Bangladesh. With international brand name recognition and quality he expected that it would gain acceptability in the Bangladesh market. When he returned, a wide range of marketing research was carried out by Partex as well as RC International. After positive results, in 1996, the Corporate Head and the Directors formed Partex Beverage Ltd. Mr. Ashfak Aziz (Rubel), one of the pioneers of the concept of RC, was given the position of Managing Director. Funds worth Tk. 10 Crore were raised as part of Equity from the Group. Although registered as a Public Limited Company, no public offerings have been made as yet. The factory was setup in Rajendrapur, 40km away from Dhaka city. The company commenced commercial production on 6th October 1997, and RC was launched in Dhaka on 20th October 1997. This is the story of how Partex Beverage Limited became the sole official bottler of Royal Crown Cola Co. International. Now it has been almost 3 years since then, and a number of new products, in new and innovative packages have been introduced to the market. Partex Beverage has also introduced RC outside Dhaka into unexplored markets. We are proud to say that we have stuck to our mission and are now worth over Taka 80 crore (US$ 16 Million). PARTEX GROUP Partex Boards & Doors Partex Furniture Industries Ltd Danish Food Products Partex Beverage Partex Plastics Dhakacom (ISP) Partex Laminates Ltd Amber Pulp & Paper Amber Cotton Trading & Shipping Composition of PARTEX Group of Companies Ltd. 10.6.1 Partex Beverage 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. As this part of the business grew, 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 the 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 flavour concentrates to be sold to franchised bottlers who bottle and sell these concentrates and syrups under trademarks owned by the Chero-Cola Co. In April of 1914, Chero-Cola Co. filed application in the United States Patent Office to register its trademark, Chero-Cola. The Coca-Cola Company then instituted a law suit that lasted for more than nine years. 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. 10.7 Get in touch with Partex Beverage: Corporate Office Sena Kalyan Bhaban (16th Floor) 195 Motijheel C/A, Dhaka 1000 Bangladesh Phone: +880.2.955.0555 Fax: +880.2.955.6515 E-mail: mail@partexbeverage.com Factory Jangaliapara (Banglabazar) Bhoui Mirzapur Joydevpur, Gazipur Greater Dhaka, Bangladesh Phone: +880.2.9289080 Phone: +88.0171.600.665 Fax: +88.011.88192450 11.0 PROFILE OF THE SEGMENTATION AND TARGETMARKET 11.1 Segmentation: Partex group has segmented according to the homogenous segmentation where the consumers represent the same type of demographical, psycho graphical, cultural and social factors. Their attitude, status and lifestyle focuses on same perspective. According to the following factors the segmentation of RC Cola has been done. 11.1.1 Age RC Cola’s primary target was only the young generation where the age may vary from 20-35. But it is not limited within this age. It has also spread out among the children noticeably as well as the people above 35 years. 11.1.2 Gender Both young boys and girls are the target market for the RC Cola. It is not specially made for any particular gender what actually happens for any type of cola drink. 11.1.3 Occupation Occupation is not clearly defined for the target market of RC Cola; however where the age varies within the young generation as well as children so it can easily be understood that most of them will be whether student or doing any job or business. 11.1.4 Income Actually RC Cola has emphasized on the lifestyle and behavior of consumers more rather


than the income. They think that it is really affordable to buy a RC Cola (especially 500 ml) for their target market where their income is minimum 5000tk and for the students it may be less than that. 11.1.5 Location Almost all the places of urban and rural area are under the RC Cola’s distribution. Especially in each and every part of the Dhaka and Chittagong city RC Cola is available. 11.1.6 Social Class RC Cola is targeted for the upper part of the lower class, middle class, upper middle class, and lower part of the upper class of the society. 11.1.7 Lifestyle The targeted market of RC Cola is basically young generation who like gossiping, chatting, hanging with friends, making fun, watching movies, listening music. RC Cola has also focused on their customer’s lifestyle in product, advertising and packaging. 11.1.8 Personality The customers of the RC Cola are mostly action oriented people which include especially the experiencers. 11.2 Target Market: Cola drinks usually follow an undifferentiated marketing strategy to target their consumer. Keeping this fact in mind, we conducted a sample survey by selecting random sample from different places. The following discussion will attempt to analyze the profile of the target market based on the sample group. 11.2.1 Age Age is the major determinants in targeting the consumers. RC Cola reflects the Bangladeshi culture and it represents youth. From my survey, I have found that Age Demand 15-25 6% 20-25 60% 25-35 20 35-45 10 Above 45 4% 11.2.2 Sex Beverage is used for thirst-quenching purpose and this product is gender neutral, meaning there is no such kind of obligation to consume the product for male or female. Sex Demand Male 73% female 27%


sex

female 27%

0%

Male female Male 73%

11.2.3 Occupation & Income Consumers’ purchasing pattern, lifestyle and status largely depend on their occupation and average monthly income of the family. The social class of the target respondents was determined by their income or taking from family. RC Cola is a low involvement product and it is good enough to consume by upper and middle class. From respondents, students are the Demand

other 6% Business man 10%

0%

private service 8%

Student private service Business man Student 76%

other

most who purchase RC Cola and their income level is less than 5000 taka. Business people, private service personnel and other earning people consume less amount of RC Cola although their income is comparatively high than the students. 12.0 POSOTIONING STRATEGY The term positioning refers to placing a brand in that part of the market where it will receive a favorable reception compared to competing products. RC Cola a single brnad name gives them benefits to play a dominate role in the core segment. This strategy gives them the flexibility to attract customers for other segments outside its core segments. Brand percent RC Cola 12%


Coca cola Pepsi Others

54% 28% 6% percent

60%

54%

50% 40% 28%

30% 20%

12% 6%

10% 0%

percent

percent

Rc

Coca cola

12%

54%

Pepsi others 28%

6%

13.0 PRODUCT PROFILE 13.1 Product: RC Cola It has been a long time that Partex Beverage has been established at a beautiful site of Dhaka. It has come with the quality food & beverage in Bangladesh. Among its beverages (RC Lemon, RC Orange, RC COLA & Upper 10); RC Cola is the most popular drink among the young people as well as the children for its fantastic packaging, TVC and good taste.

“The Freedom of Choice” RC Cola was launched on 25th June, 1998 with RC Flavors (RC Cola, Royal Cloudy Lemon, Royal Orange, Upper 10) in 300ml Glass bottle in Greater Chittagong, through 10 distributors. RC Cola focuses on mainly young people who like the enjoyment and fun. The word “RC” has come from the word “Royal Crown Cola”. On 24th August, 1998 Introduction of RC Flavors (RC Cola, Royal Cloudy Lemon, Royal Orange, Upper 10) in 300ml Glass bottle in Greater Noakhali. Four Distributors were mobilized. On 28th October, 1998 just before the closing stages of 1998, after assigning of few new distributors, Partex Beverage began distributing in Comilla, which added to its penetration in the southern region. On 26th March, 2000 just before the Asia Cup, which was held in Dhaka, Partex


Beverage added a feather to its cup, by launching its own mineral water brand, MUM. It was introduced in food grade PET in two sizes- 0.5 and 1.5 Liter. On 6th April 2002 Partex Beverage launched their products in Sylhet, one of the largest markets in Bangladesh, with the introduction of RC Flavors and MUM in PET. This PBL did by mobilization of distributors of Danish Distribution Network. By this pointing time, Partex Beverage had mobilizing a total of 101 distributors. The product RC Cola has come with the following variations in the market• 250 ml bottle • 500 ml bottle • 1000 ml or 1 liter bottle • 150 ml can The RC Cola has been made with the latest technology. So there is no chance to occur changeability in taste. The cola drinks contain a very strong taste which can compete with the market leader Coca-Cola and MOJO. As a member of the Partex Beverage, RC Cola is manufactured in the factory which is situated in Joydevpur, Gazipur, Bhoui Mirzapur, ,Jangaliapara (Banglabazar), Greater Dhaka, Bangladesh. The normal packaging of RC Cola attracts the customer. The pay off line for MOJO is “The Freedom of Choice”. The ingredients that are used to make the RC Cola are---Granulated Sugar, ---Carbon Dioxide, ---High Fructose Corn Syrup, ---Citric Acid, ---Gum Acacia, ---Caffeine etc. Nutrition facts per 500ml are • Energy = 129 k cl. • Fat = 0.00 gm • Protein = 0.00 gm • Carbohydrate = 32 gm 14.0 PROMOTIONAL ACTIVITIES All companies need to promote their product in front of the target customer. Now a day advertisement has become the war field for the marketers. RC cola is also trying to fight with their competitors in the field of advertisement. Nevertheless, we all know that good advertisement is necessary to establish a product. Catchy advertisement can ensure the success in the battlefield. After launching MOJO cola trying to establish itself in the market and some of the cases they succeed. Now we try to show how MOJO concentrating on their promotional activities. The RC Cola has been targeted for the young generation is designed for fun loving young adults. • Television, • Newspaper, • Radio Today & Radio Foorti, • Poster, shop signs & Billboards, • Street/road Show & Concerts - all are used for promotion of RC, • Sponsorship of different special event such as reunion, 14.1 CURRENT PROMOTIONAL SCENARIO OF RC In our country, marketers do promotional activities through billboards, TV ads, sponsorship, newspaper ads, sales promotion, point of purchase ads and distribution. In few of the cases,


RC cola is ahead of the competitors and in few cases, they are not up to the mark. At first, we will describe the cases where RC cola is still behind their competitors, what they are doing, and what will change their environment. 14.2 SUGGESTIVE PROMOTIONAL TOOLS 14.2.1 Newspaper Ads The number of paper ads should have to be increased. Otherwise, they cannot make mass people aware about their product. It should also contain high imagery, relevant with product cola. Newspaper Ad Operant Conditioning Encouraging the target customer to less thirst in the hot summer. This partial consumption can lead to a permanent change in behavior in future

14.2.2 TVCs The frequencies of the TV ads have to be increased. People who watch TV regularly are seeking for innovative things made by the marketers. They pretty much bored with the traditional ads. So if RC cola bring new thing with their ads them it will be a turning point for their sale. People will get more interest in their product and as a result, they can be the loyal customer of this product. So TV ads should be brought with a new format, with more new things so that it can catch the target aspect with the new one. Example # 1 Snap Shot from RC’s TVC Classical Conditioning A girl is drinking RC cola and a boy is looking at her. He might feel to taste that cola the is drinking.

Example # 2 Snap Shot from RC’s TVC Classical Conditioning TVC can increase the chance of generating the same positive response to the brand 14.2.3 Sponsorship Till now RC cola make sponsorship of few events like concerts, nabanno utsav, bangla noboborsho etc. they should include cyber café, canteens of university, fast food shop and


other places where people goes frequently. By doing so they can be with the target audience and we will find more aware people. 14.2.4 Sales Promotion They should in for massive sales promotion to attract people from other drinks. 14.2.5 Road Shows When they first came in the market, they arranged road shows in some prestigious universities in Bangladesh. Frequent road shows can be effective for them. During world cup football and cricket they arranged world cup mania, and if they do so once or twice in a year that will be more helpful for them in the future. 14.2.6 Retailer Store Ads Most of retail shops use refrigerators supplied by Soft Drink Company. The main condition the retailer faces that they must keep the corresponding soft drink (which company provides refrigerators) first then they can keep some other thing. These refrigerators are posted in a way that the people can easily recognize their brand. On the other hand, RC sponsors very few of the shop sign of the retail stores, cafeterias, restaurants etc like other brands named Coca-Cola, Pepsi etc. There is a point to add: there was also a demand-supply disorder at the point of the launching. As a result, it failed to retain the booming demand that occurred due to the successful TVC. Although the product has a moderate demand now a days it is not supplied accordingly. As a result, retailers do not have the product. Sometimes consumers cannot buy it when they want to, due to shortage of supply. They should supply their own refrigerators to the retailers, so that the drinks can always be kept cool. The supply of drinks should meet up the demands. If they supply less than people will fail to purchase RC cola whenever they intend to buy them. Therefore, in this field they need to bring their concentration. 15.0 DISTRIBUTION OF RC Cola The distribution of RC Cola is strong enough as it is quite available in every targeted area. To distribute this product the company follows the following distribution channelManufacturer Wholesaler Retailer Consumer For the product availability the customers can get RC at any place when they need it. It is seen that this product has been successful to occupy the refrigerators in the outlets so that is found chilled. The Distribution Channel Looks Like Manufacturer (Partex Beverage)

Wholesaler/ Distributor

Retailers (Countrywide)

Consumers


Figure: Distribution Channel of RC Cola

16.0 PRICING STRATEGY The three different sizes of RC Cola have been priced differently. • 250 ml bottle = 12 tk. • 500 ml bottle = 20 tk • 1 liter bottle = 40 tk. • 150 ml can = 15 tk. Here wholesalers take 0.5 -1.5 tk and retailers take 2.00-2.5 tk as profit. Again comparing to the competitors product, the price is low enough to encourage the target market to shift their brands towards RC. 17.0 FUTURE PLAN REGARDING THE STRATEGY The immediate marketing goals are summarized in the following key objectives: 1. Have a cumulative 1500000 customers base by the end of 2010. 2. Set up a strong distribution channel by careful selection and proper execution of companies strategies. 3. Provide the most attractive and affordable products and services to the customers. 4. Aggressive market promotion and branding through effective advertisement and Promotion. 18.0 COMPANY PROFILE (VIRGIN COLA)

18.1 Vision Any company’s vision is actually the dream to which the company always strives to reach where it may become possible or not. Here it is also not apart for Virgin Drinks. 18.2 Mission The mission of Virgin Drinks is to provide value at an economic cost, progress in diversity, and continue to contribute to the growth of industrialization in Bangladesh by being the market challenger. 18.3 Goal The company’s goal is to maximizing the market share in their every categorized business. 18.4 Objective The objective of Virgin Drinks is to provide the quality products and services in such a form that the customers demand. 18.5 Strategy The company always believes in pull strategy rather than push strategy. They first of all find out the customers demand about how, when, where, and what type of product ad services they want. Then according to that they provide their services at the right place and in the right time.


18.6 Outline of Virgin Drinks Virgin Cola is a carbonated cola soft drink produced by Princes limited. It was launched in 1994.Virgin Cola was set up during the early 1990s in conjunction with Cott, a Canadian company that specializes in bottling own-label drinks. Cott was looking for a major international brand that could have global appeal. In typical Virgin jokey fashion, when first launched the 500ml bottles were marketed as "The Pammy", as their curves were designed to resemble Pamela Anderson who was at the height of her popularity in the UK at the time. Within a few months of its release, Virgin Cola had a 50% market share in the outlets that sold it. It went on to be launched in France, Belgium, and South Africa. In its first year more than 500 million units were sold worldwide.[citation needed] However, its popularity soon waned. It is also served on Virgin Atlantic flights and sold in the on-board shops on Virgin Trains. The Gulliver's Kingdom chain of theme parks in the UK also sells post mix Virgin cola. In the United States, a national roll out was planned for 2005, six years after Virgin cola had first been launched in the UK. For the launch, Richard Branson rode into New York's Times Square atop a tank wearing girlies underwear, promising a battle with Coke and Pepsi. Virgin Cola flopped, however, and disappeared from the US market almost immediately. In the UK, it is now bottled under Silver Spring. 18.6.1 Global Beverage Co. LTD. Global Beverage Co. LTD. is the founder of Virgin drinks in Bangladesh market. It started its journey in 2005. It’s a carbonated cola soft drink. Richard Branson attempts to extend the Virgin franchise into your fridge. So far it has failed to overtake Pepsi in the UK as he claimed it would, and unlike Pepsi or Coke it's relatively hard to find cans of Virgin Cola on sale anywhere. Cross-promotion has been Branson's main weapon, serving Virgin Cola on Virgin Atlantic flights and (until they closed down) at Virgin Cinemas. Many promos tie in with Virgin Megastores as well. For a while the half-liter bottles were called 'The Pammy', an attempt to link their curvy nature to the immense popularity of alleged actress Pamela Anderson at the time of the small bottle's launch. Virgin Cola has put in an occasional appearance on popular US sitcom 'Friends', but then so has Virgin Atlantic and Mr. Branson himself. 18.6.2 Get in touch with Global Beverage Co. LTD.: Factory Bagher Bazar, Gazipur, Bangladesh Phone: +880.2.98835562 Fax: +88.011.86662652 19.0 PROFILE OF THE SEGMENTATION AND TARGETMARKET 19.1 Segmentation: Global Beverage Co. LTD. has segmented according to the homogenous segmentation where the consumers represent the same type of demographical, psycho graphical, cultural and social factors. Their attitude, status and lifestyle focuses on same perspective. According to the following factors the segmentation of Virgin drinks has been done. 19.1.1 Age Virgin drink’s primary target was only the young generation where the age may vary from 15-25. But it is not limited within this age. It has also spread out among the children noticeably as well as the people above 45 years.


Age 15-25 20-25 25-35 35-45 Above 45

Demand 6% 40% 35% 15% 4%

Age Above 45 15-25 4% 6% 35-45 15% 20-25 40% 25-35 35%

15-25 20-25 25-35 35-45 Above 45

19.1.2 Gender Both young boys and girls are the target market for the Virgin drinks. It is not specially made for any particular gender what actually happens for any type of cola drink. 19.1.3 Occupation Occupation is not clearly defined for the target market of Virgin drinks; however where the age varies within the young generation as well as children so it can easily be understood that most of them will be whether student or doing any job or business. 19.1.4 Income Actually Virgin drinks has emphasized on the lifestyle and behavior of consumers more rather than the income. They think that it is really affordable to buy a Virgin drinks (especially 200 ml) for their target market where their income is minimum 2000tk and for the students it may be less than that. 19.1.5 Location Almost all the places of urban and rural area are under the Virgin drink’s distribution. Especially in each and every part of the Dhaka city Virgin drinks is available. 19.1.6 Social Class Virgin drinks is targeted for the upper part of the lower class, middle class, upper middle


class, and lower part of the upper class of the society. 19.1.7 Lifestyle The targeted market of Virgin drinks is basically young generation who like gossiping, chatting, hanging with friends, making fun, watching movies, listening music. Virgin drinks have also focused on their customer’s lifestyle in product, advertising and packaging. 19.1.8 Personality The customers of the Virgin drinks are mostly action oriented people which include especially the experiencers. 19.2 Target Market: Cola drinks usually follow an undifferentiated marketing strategy to target their consumer. Keeping this fact in mind, we conducted a sample survey by selecting random sample from different places. The following discussion will attempt to analyze the profile of the target market based on the sample group. 19.2.1 Age Age is the major determinants in targeting the consumers. Virgin drinks reflect the Bangladeshi culture and it represents youth. From my findings, I have found that Age

Demand

15-25

6%

20-25

60%

25-35

20

35-45

10

Above 45

4%

Demand Above 45, 4% 15-25, 6% 20-25, 60% 35-45, 10

15-25 20-25 25-35 35-45

25-35, 20

Above 45

19.2.2 Sex Beverage is used for thirst-quenching purpose and this product is gender neutral, meaning there is no such kind of obligation to consume the product for male or female. Sex Demand Male

66%


female

34% Demand

0%

female 34%

Male Male 66%

female

19.2.3 Occupation & Income Consumers’ purchasing pattern, lifestyle and status largely depend on their occupation and average monthly income of the family. The social class of the target respondents was determined by their income or taking from family. Virgin drinks is a low involvement product and it is good enough to consume by upper and middle class. Occupation & Income

Demand

Student private service Business man other

68% 15% 12% 5%

Demand other 5% Business Student man 0% 12%

Student

private service 15%

private service 68%

Business man other

20.0 POSOTIONING STRATEGY The term positioning refers to placing a brand in that part of the market where it will receive a favorable reception compared to competing products. Virgin drinks a single brnad name gives them benefits to play a dominate role in the core segment. This strategy gives them the flexibility to attract customers for other segments outside its core segments.


percent 60%

54%

50% 40% 28%

30% 20% 10%

12% 6%

0%

percent

percent

virjin

Coca cola

Pepsi others

6%

54%

28%

12%

21.0 Company Profile (Coca Cola)

The Mission Statement of the Coca Cola Company Our mission statement is to maximize shareowner value over time. In order to achieve this mission, we must create value for all the constraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. Consumer demand drives everything we do. 2. Brand Coca Cola is the core of our business 3. We will serve consumers a broad selection of the nonalcoholic ready-to窶電rink beverages they want to drink through out the day. 4. We will be the best marketers in the world. 5. We will think and act locally. 6. We will lead as a model corporate citizen. The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our longterm cash flows, and create economic value added by improving economic Profit. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each


customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. There are nearly 6 million people in the world who are potential consumers of our company’s product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time. COCA COLA INTERNATIONAL Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of CocaCola that is the foundation for this Company. The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986. In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion The hierarchy of Coca Cola Company is as follows.

: Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market.


The following table can show the worldwide operating segments. (Table) Unit case growth 10 year compound annual growth Compa Industr n y y

5-year compound annual growth

2001 annual growth

Compa n y

Compa n y

Industr y

Industr y

NonAll commercial alcoholic Beverages drink 2002 2002 Compan y share

Compa n y share

Compa n y per capita Income 6% 5% 5% 5% 4% 4% 18% 9% 70 This shows that the market of the company is geographically vast and it is controlling it with great success. In 2002, the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume, that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success. Thus they are increasing their market day by day. The operation income earned by Coca Cola Company can be illustrated by the following pie chart. (Figure)

This strategy has worked a lot and it has helped them to become the World’s leading Soft Drink Company. The global unit sale of the Coca Cola Company is increasing from the last ten years. The data of the global unit sale of the Coca Cola Company can be represented by following chart.


So there is positive growth in the market of the Coca Cola Company. There is a worldwide volume increase by 4% with strong international growth of 5%. This is only due to the innovative marketing programmers, which has deepened the relationship of the customers and Coca Cola. The financial health and success of their bottling partners is a critical component of The Coca-Cola Company's ability to build and deliver leading brands. In 2002, the company had worked with their bottlers to turn good intentions into reality by improving the system economics. The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. The main reason behind this relationship is to continue realizing shared opportunities for growth, with closer coordination of operations including customer relationships, logistics and production.

Coca Cola is the world-renowned soft drink and the company is currently operating through out the world. The world wide total is about 17.8 billion. The operation review according to the segments is as follows. Operation Review (2002 worldwide unit case volume by operating segment)


So the volume is least in the Africa and most in the North America. The data about the market share of this company area wise is given in the following table. The above table shows the geographical earning of the Coca Cola Company and from this data; we can find out that the customers of Coca Cola are increasing which is shown by the company’s per capita income. Unit case equals 24 eight-ounce servings. The column, which shows the non-alcoholic beverages consist of commercially, sold beverages, as estimated by the Company based on available industry sources. The country column is derived from. The Company's unit case volume while the industry column includes nonalcoholic ready-todrink beverages only, as estimated by the Company based on available industry sources.

(Table)


In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billion and the average consumer enjoys close to two servings of our products each month. Through an intense focus on Coca-Cola, innovation and new beverages, the company has achieved volume growth of 10 percent in 2002. With developing economies and populations, this region has strong long-term potential, and the company is building an exciting family of beverage brands in addition to expanding the popularity of our core brands, led by CocaCola. In China, for example, sales of Coca-Cola increased 6 percent. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart. (Figure)

So the company is emphasizing more in this area and is trying to develop a strategy, which can increase the growth of the consumption of Coca Cola by the people of Asia. Among the countries of Asia, Japan has the highest percentage, which is about 29%. Among others, Pakistan, India and Bangladesh are those countries where the average consumption is increasing day by day.


This company is financially very strong. It is due to the strong finances, the company is still surviving the ups and down of the business world. The financial report of Coca Cola Company of the year 2001 and 2000 along with the percentage change is as follows. (Table) Year Ended December 31, (In millions except per share data, ratios and growth rates) 2002 2001 Percentage change Net operating revenues Operating income Net income Net income per share (basic) Net income per share (diluted) Net cash provided by operating activities Business reinvestment Dividends paid Share repurchase activity Free cash flow Return on capital Return on common equity Unit case sales (in billions) International operations North America operations Worldwide

20,092 5,352 3,969 1.601 1.601

19,889 3,691 2,177 0.882 0.882

1% 45% 82% 82% 82%

4,110

3,585

15%

(963)(1,791) (277)3,147

(779)(1,685) (133)2,806

24% 6% 108% 12%

26.6% 38.5%

16.2% 23.1%

-

12.5

11.9

5%

5.3

5.2

2%

17.8

17.1

4%

-

2002 basic and diluted net income per share includes a non-cash gain of $.02 per share after taxes, which was recognized on the issuance of stock by Coca-Cola Enterprises Inc., one of the equity investors of this company. 2002 basic and diluted net income per share includes the following charges: • $.24 per share after income taxes related to an organizational Realignment. • $.19 per share after income taxes related to the Company's portion of charges recorded by the investors of the company. • $.16 per share after income taxes related to the impairment of certain bottling, manufacturing and intangible assets. • $.05 per share after income taxes related to the settlement terms of a discrimination lawsuit. • $.01 per share after income taxes related to incremental marketing expenses in Central Europe. These charges are partially offset by a gain of $.05 per share after income taxes related to the merger of Coca-Cola Beverages plc and Hellenic Bottling Company S.A. and $.04 per share


after income taxes related to benefits from a tax rate reduction in Germany and from favorable tax planning strategies. DIVIDEND AND CASH INVESTMENT PLAN: The Dividend and Cash Investment Plan permits shareowners of record to reinvest dividends from Company stock in shares of The Coca-Cola Company. The Plan provides a convenient, economical and systematic method of acquiring additional shares of our common stock. All shareowners of record are eligible to participate. Shareowners also may purchase Company stock through voluntary cash investments of up to $125,000 per year. At year-end, 76 percent of the Company's shareowners of record were participants in the Plan. In 2002, shareowners invested $36 million in dividends and $31 million in cash in the Plan. COMPANY STATISTICS: The statistics of this company is impressive. Since it is operating through out the world that is why the number of employees and the bottling equipments is highest among the other bottling companies. There is a constant increase in every aspect when we compare the statistics of 2001 and the statistics of 2002. This is because; Coca Cola Company is increasing its volume day by day. The expansion of this company, which shows the success of Coca Cola brands, results in the percentage change in the statistics of the two years. The statistics is as follows. (Table) 2002ª 2001 Equivalent cases Bottle and cans Fountain Employees Vehicles Cold drink equipments Facilities Production only Distribution Combination Total Percent of North America population coverage Number of States of Operation Bottle and can equivalent case package distribution Cans Non-refillable bottles Refillable bottles Capital structure Net debt to total capital ratio EBITDA interest coverage Weighted average cost of debt Key Statistics Constant territory bottle and can volume growth Bottle and can net revenues per case change Bottle and can cost of sales per physical case change Reported EBITDA (in billions) Reported EBITDA change

4.2 billion 87% 13% 72,000 54,000 2.4 million

3.8 billion 87% 13% 67,000 52,000 2.3 million

25 385 53 463 80% 46

25 361 50 436 72% 46

44% 52% 4%

45% 51% 4%

63% 3 6.3%

59% 3 6.8%

3% Flat 1

½% 2% ½%

$1.95 (18)%

$2.39 9%


Capital expenditures( in billions) %-age of net operating revenues Coverage of North American Can/bottle volume

$0.97 6% 83%

$1.18 8% 74%

EBITDA is the Earnings before interest, taxes, depreciation, and amortization, and other nonoperating items. • Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable securities. • Equivalent Case or Unit Case is the physical case and fountain gallons converted to a standard unit of measure defined as 24 eight-ounce servings or 192 ounces per equivalent case sold by Coca-Cola Enterprises. PRODUCTS: There are different brands of the Coca Cola Company, which are currently in use through out the world. This company not only deals in the carbonated drinks but also other drinks. While launching its product, the marketing team considers the culture of the country. Major brands of coca cola • Coke • Sprite • Fanta • Diet coke • Coke classic The over all volume of this company is as follows. (Figure)

The commitment of the company is to devote resources to water only in markets where it expects profitable growth. This strategy has paid dividends. The company has successfully applied its approach to brands in several key markets, including Ciel in Mexico, Mori No Mizudayori in Japan, Bonaqua in Russia and Kinley in India. Backed by a strong network of bottling partners through out the United States, Dasani became the nation's fastest-growing water brand. In Eurasia, the entire Turkuaz brand team worked together to launch Turkey's first purified water brand. This year, Coca-Cola Company also successfully energized a major piece of its beverage strategy—water. By the end of 2001, its bottled water volume exceeded 570 million unit cases, making it the second biggest contributor to the growth of the company after carbonated soft drinks. Three of the water brands, Dasani, Ciel and Bonaqua each achieved sales of over 100 million unit cases for the year. In 2001and 2002, the company has also made good progress in coffees and teas. Beverage Partners Worldwide, the renewed and strengthened marketing partnership with Nestlé S.A., began operations in 2001. This partnership combines Nestlé's knowledge in life science,


research and development with the expertise of Coca Cola Company in brand building and distribution. At the same time, the company grew Georgia coffee in Japan by 3 percent through awardwinning marketing in a category that was flat for the year. Also in Japan—where The CocaCola Company is the leader in the total tea category, the second-largest category in the nonalcoholic ready-to-drink segment—it launched Marocha Green Tea. With sales of 46 million unit cases for the year, Marocha Green Tea is the fastest-growing product in the fastestgrowing category: green tea. The popularity of Marocha is also recognized by the industry with a leading trade journal naming Marocha the most popular new food and beverage product of the year. Know the most recognized word on the planet after “OK”!

Among the soft drinks Fanta and Sprite become successful along with the major brand Coca Cola and Diet Coke. In key markets, the company has created new packaging sizes to satisfy consumer demands. Increasingly, Mexican families have lunch together at home. The average Mexican household drinks two-and-a-half liters or more of soft drinks during that break, while a two-liter bottle was the largest available package. So the company introduced a convenient 2-½ liter bottle to select regions, contributing to the sale of nearly 1.5 billion unit cases of Coca-Cola in Mexico this year. This larger bottle will complete its nationwide rollout in 2002. In China, Coca-Cola is an integral part of holiday celebrations and the family get-togethers that accompany such events. Through an intense focus on Coca-Cola, innovation and new beverages, it has achieved volume growth of 10 percent in 2001. In China, sales of Coca-Cola increased by 6 percent. In the United States, recognizing that consumers often enjoy their diet Coke with a slice of lemon, the company "bottled" the concept. The result—diet Coke with lemon— contributed to volume growth of 4 percent for the number-one diet. Soft drink in North America: diet Coke. The company increased its two largest bottle sizes during the 2001 holidays, and festival packaging helped drive a 6 percent volume increase for Coca-Cola. The packaging innovations do not just involve resizing. The company has also responded to consumers' changing fashion styles with new bottles. With brands such as Minute Maid, Hi-C, Simply Orange and Disney juices and juice drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo in Africa. This year, the company re-launched its global sports-drink business, investing in new products, packaging, positioning and marketing. The results speak for themselves: its global sports drinks, led by Powerade and Aquarius, and grew by 13 percent in 2002, nearly double the growth rate of the worldwide sports-drink category. Revitalized in the United States, the company introduced Powerade in nearly every major Western European market, including Great Britain, Germany and Spain, as well as in Mexico and Latin America. The company launched 27 products in 2001. The commitment of the company to packaging innovation also resulted in new initiatives for our fountain business, a channel through which many consumers enjoy Coca-Cola. In the United States, the company developed Fountain, a total beverage dispensing system that is


more flexible and more reliable. Two years of research resulted in a dispensing system that provides exceptional beverage quality, easy to upgrade technology, brand and graphic customization and improved reliability. STRATEGIC PLANNING In the year 2002, the company had a great success, as the strategy worked which resulted in making Coca Cola Company the world’s leading company. In 2001, company accomplished the crust of it’s strategy as  Worldwide volume increased by 4 percent with strong international growth of 5 percent and clear signs that our North American business is growing solidly and predictable.  Earnings per share grew by 82 percent, as we delivered on our commitment to create volume growth while aggressively  Return on common equity grew from 23 percent in 2000 to 38 percent this year.  Return on capital increased from 16 percent in 2000 to 27 percent in 2001.  The company has generated free cash flow of $3.1 billion, up from $2.8 billion in 2000, a clear indication of its underlying financial strength. The strategy for the future of the company is very straightforward. The marketing strategy for the year 2002 is as follows,  Accelerate carbonated soft-drink growth, led by Coca-Cola.  Selectively broaden the family of beverage brands to drive profitable growth.  Grow system profitability and capability together with our bottling partners.  Serve customers with creativity and consistency to generate growth across all channels.  Direct investments to highest potential areas across markets.  Drive efficiency and cost-effectiveness everywhere. MAJOR COMPETITOR PEPSI INTERNATIONAL

HISTORY PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of FritoLay North America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. The advertisement of the Pepsi changes to, “You got the right one baby, Uh-Huh!”.With the extensive usage of the stars in the adds, the popularity of Pepsi increase. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-todrink tea brand in the United States. Outside the United States, Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in more than 190 countries and territories. In Asia, they selected Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the operations carried out in South West Asia. As in Pakistan, they only entered beverage industry. They have eleven bottlers covering whole Pakistan. The plant operating here is Riaz Bottlers (Pvt) LTD. This plant was established at Lahore in 1974. The total capacity of the


plant is 30,000 cases per day. They have four filling lines in the plant operating on the three shift bases. Each shift is of eight hours. They have permanent work force of 750 people and they employee approximately 1000 people more on temporary basis during summer season. Pepsi’s Products • Pepsi • Teem • Mirinda • Pepsi Max • Pepsi Lemon • Pepsi Blue • Mountain Dew • 7up COCA COLA PAKISTAN The Coca-Cola Company began operating in Pakistan in 1953. Coca-Cola, Fanta and Sprite are the brands in Pakistan. The Coca-Cola System in Pakistan operates through eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan, Multan and Lahore. The remaining two plants, independently owned, are in Rawalpindi and Peshawar. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan employs 1,800 people. During the last two years, The CocaCola System in Pakistan has invested over $130 million (U.S.) 49 years of refreshment in Pakistan Coca-Cola introduced in Pakistan 1953 Fanta introduced in Pakistan

1965

Sprite was introduced

1972

Diet Coke & Fanta Lemon

2001

PROMISE OF COKE The basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to


provide consistently attractive returns to the owners of our business. TARGET MARKET Coke’s commercials basically based on young generations, So, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market. MAJOR SEGMENTS Major segments are basically those people who take this drink daily and those areas where the demands is higher then the other areas. There are so many people who take this drink daily and those people who take weekly and those who take less often are always there as well. So, their basic segments are those people who take this drink regularly. FACTORS EFFECTING SALES There are so many factors, which affects the sale of coke. Here we are discussing three major factors which effects coke. • Per capita income • Competitors • Weather Per Capita Income First we will discuss about “Per capital income”. This is major factor that affects the sale of this soft drink. Because which every passing year budgets are becoming very strict and tight in order to purchase things. So the disposable incomes of the people are coming down. They spend heavily on rents, utilities, and education and basic necessities and after that when they get extra money they think about this soft drink .So the decreasing per capita income effects badly in selling and production of this soft drink. And to get through with this difficulty there is need to increase the level of per capita income of Pakistan because it is much lesser than the rest of the countries. Competitors Coke’s major competitor is “PEPSI” and there is no hesitation to say these because every one knows that and all the other cold drinks and water, coffee, tea are the competitors. Weather Weather is the third major factor in effecting the Coke’s selling. This is underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%. MAJOR CUSTOMERS NEED First of all the majority don’t care that what they are going to have. In other words, they don’t care before drinking that whether it is “Pepsi” or “coke”. They don’t actually differentiate between these two brands in order to their tastes. Consumers basically drink what they get. They believe on “WHAT COLD THEY SOLD” Consumer’s availability in brands is basically works like: Push availability Pull consumer’s demand. For this reason Coca-Cola have provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market. They provide this infrastructure free of cost just to provide child coke to their customer, which they want to be purchase. Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not, if not then they immediately change or repair it. MAJOR COMPETITORS Consumers firstly decide that they are going to have a soft drink. Then they compete brands with each other. Like they compete Coke with Pepsi and Sprite with 7up and team .So the major competitor of Coke is Pepsi. When they motivate to any other brand or on Coke it’s in instinct basically that based on messages derive certain feelings. But Coca Cola thinks in a different way, they believe that RC Cola, new coming AMRAT Cola, and all juices, even they take water and tea as their competitors. STRATEGIES OF QUALITY


After Micro and macro analysis Brand “coke” is primarily role 1. 1. Enhance competition moments 2. 2. When people watch cricket 3. 3. Through commercialization 4. 4. Fun time Though these strategies there could be better understanding and better connection with the public. These are the “key consumption”. THREATS FROM COMPETITORS Threats are well planned. Price is the major threat. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink. Because when the prices go higher people go for the substitute of “coke” i.e. Pepsi. And when price goes down they think that there is must be some thing wrong in it. In short it all depends on customer’s perception. TARGETS THAT WOULD LIKE TO ATTAIN Every organization runs on the bases of profit maximization so Coke is also looking for a high profit margin. There are three major ways of making money • Over night profit • Windfall profit • Ethical and un-ethical ways Over Night Profits They could be over night profit that is for the number 1 brand for the year. This could be got my increasing sales volume can be windfall profit. They are the extras profit. When the consumption the consumption is on boom. So, there is different kind of profits. Ethical And Unethical Ways Profit can also get through ethical and unethical ways. They believe on this quote “Every thing is fare in love and war”. Some profits stays for some time like “over night profits” and some just come and go like “wind fall profits”. And they can also get profit through different approaches. EXPANDING TARGET MARKET In last 2 years Coke has come back in aggressive manner. • Consumer has choice • Attractive brand name • Brand differentiating Consumer Has Got Choice Now the consumer has got choice. Because now they know the name of another big brand, though coke is the 2nd best name but it can get a better position after some time Attractive Brand Name Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word “ok”. So people can better differentiate brands with each other. Brand Differentiation Now different companies have got different brand names. So, people can distinguish between brands. Two major brands “coke” and “Pepsi” also have brand names. Coca Cola’s Brand Coca cola is “US” brand. Because they believe in the togetherness, being people together and friends are being together. Coca Cola strongly believes that Pakistani temperament is “US” not “ME” Pepsi’s Brand


Pepsi’s brand is basically is basically “ME” branded. They use the temperament of “ME”. In contrast to Coke they believe on individual struggle. THREATS AND OPPORTUNITIES FOR PRICE Opportunities If Coke is considered a luxury product. Then there is the tax rate system 15% - sales tax 20% - excise duty 27% - goes to government 03% - In making Budget After paying all these taxes coke has to pay electricity charges. We have to spend on distributions. After paying all these expenses Coke’s margin squeezed and consumers have to pay for increasing tariffs. These are the opportunities through which we can increase the price and can get profits. Threats There are much more threats in increasing prices. Because same problem of substitute. If Coke increase the price lets say 1 rupee. Then people definitely won’t go for coke. They have the best substitute of Coke that is Pepsi. So these are the threats in increasing prices. Coke will lose the margin of its profit and can face loss. STRATEGIES OF GETTING GOALS I.E. “HIGH PROFITS” To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows.  Volume can be increased  Interest level of consumers  To take part in energetic festivals How to increase the volume of consumers? Coke can increase the volume by expanding the industry of coke. Through advertisements, offering different interesting things to attract people towards this product. How to increase the interest level of consumers? Coke is increasing the interest level of consumers by offering different flavors. For example Coke is increasing the number of flavors in “Fanta”, this is one of the product of coke. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained. How to take part in energetic festivals? Coke is already taking part in the festival like “Basant” since last 3 years. Coke offers different attractive things in their festival and through this Coke gained high profit and consumption of coke increased on these occasions. And this year in this year 2002 people were anxiously waiting that what interesting thing coke is going to offer. MARKETING STRATEGY Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of which they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It's a special thing to have billions of friends around the world, and we never forget it. MARKET POSITIONING Product Range The total range of Coca Cola company in Pakistan includes:


• Coke. • Sprite. • Fanta. • Diet Coke. And company offers their products in different bottle sizes these include: • SSRB (standers size returnable bottle) • LRB (litter returnable bottle) • NRB (no return bottle) or disposable bottle • PET 1.5 (1.5 liter plastic bottle) • CANS (tin pack 330 ml) Packing Coca cola products are available in different packing • 24 regular bottle shell • 6 bottle pack for 1.5 pets • 12 bottles in a pack for disposable bottle • 24 cans in one pack. PRICE STRATEGY Trade Promotion Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And that’s why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. “Seen as sold” They do agreements with a shop keepers and stores to exclusive sale in that store. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives. Different Price In Different Seasons Some times Coca Cola Company changes their product prices according to the season. Summer is supposed to be a good season for beverage industry in Pakistan. So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle PROMOTION STRATEGIES Getting shelves They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers. Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores. Sale Promotion Company also do sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share. UTC Scheme UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children. DISTRIBUTION CHANNELS Coca Cola Company makes two types of selling Direct selling Indirect selling Direct Selling In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit


margin. Indirect Selling They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products. FACILITATING THE PRODUCT BY INFRASTRUCTURE For providing their product in good manner company has provided infrastructure these includes: • Vizi cooler • Freezers • Display racks • Free empty bottles and shells for bottles ADVERTISEMENT • Coca cola company use different mediums • Print media • Pos material • Tv commercial • Billboards and holdings Print Media They often use print media for advertisement. They have a separate department for print media. POS Material Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas. TV Commercials As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels. Billboards and Holdings Coca cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards. EXPECTATIONS FOR THE COMING YEAR Every thing starts from the attitude of consumer’s behavior. And the basic key to attract the consumers is to throw the “money away”. And positive feeling felling with the brand, which they used to have Coke wants to advertise their products heavily in the coming year. And it will take the 10% of their profits. And when we take it as a global level it is $ I billion. Coming year is the challenging year for the industry of Coke. They have to take lots of decisions that how to increase the production and where they have to spend money. For gaining success in coming year they have to have some important things like: 1. Loyal consumers are important for company’s success. 2. Workers should be the brand centric not the promotion centric. 3. They should know how much to for the brand activities. 4. They should also know that how much to do with the promotion activities for brand. HOW COKE DETERMINE THE YEARLY BUDGET Coke determines its yearly budget by the • Sales volume


• Profitability • Target volume Sales Volume Coke determines its yearly budget through the sales volume. They first concentrate on the thing is “what is the condition of their sales?” if the condition is good of their sales then they definitely increase their production and sales volume. Otherwise they concentrate on their old strategies. Profitability: The second thing through which they determines budget is the “profit” .if they r getting profits with the high margin, then they definitely want to increase their profits in the next coming year. Every organization runs on the basis of getting high profits. No organization wants to face Loss in their business. To get profit is the first priority of the Coke. Target Volume: To run the business every industry has some targets, which they want to achieve in a specific time period. If industry achieves those goals in that period then for the coming year it increases the volume of the target. So Coke Follow the same thing it has also some goals and targets to achieve in the given time period. When they succeed to achieve that target then they increase their target volume in the next year. SALES PROMOTION ACTIVITIES Coca-Cola Cricket Cricket the most sought after; watched & played game in Pakistan .the game of cricket has been owned by various brands in the industry for the promotion of their products over a period of time. It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the beverage industry. The competition has become tougher & tougher as the time has progressed. Coca-Cola signed a sponsorship agreement with eight of Pakistan’s National cricket players. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it consumers & masses invested in the opportunity and launched a massive campaign on mass media showing all these cricket stars endorsing & complimenting Coca-Cola brand. The Coca-Cola Company developed three TV commercials & four testimonial ads with the player & ran them on the national net work during various cricket matches. These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board. This campaign helped Coca-Cola to establish its association with the game & the player. Coca-Cola Concerts Abrar-ul-haq’s distinct style, lyrics & songs have made him an instant hit among the masses in Pakistan. His enormous popularity in the country & abroad is supported by Coca-Cola’s commitment towards providing healthy & fun-filled entertainment for the youth of Pakistan. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a muchappreciated TVC & MMT featured throughout the country. The TVC campaign focused on the hectic lifestyle of a pop star who found respite & relief through Coca-Cola in short moments that he had to himself during a concert. Coca-Cola’s brand positioning of providing deep down refreshment for the body, soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar. Coca-Cola Food Mela With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the people of Karachi, to a festive food festival comprising of 50 restaurants, spread out all over the bustling city’s map. The promotion saw the avid families & friends enjoying the delicacies at the restaurants; all resiliently upholding the Coca-Cola identity. Coca-Cola Basant Festival


In February the month of basant the parks & horticulture authority in Lahore nominated Coca-Cola the official sponsor of the basant festival .Coca-Cola added to the carnival atmosphere by making the festival free to enter & decorating all main roads in Lahore with illuminated kites. Coca-Cola also hosted a concert of pop idol Abrar-ul-haq, had children’s parade & held the Coca-Cola kite flying championship during the basant festival. Now “where there is basant there is Coca-Cola”, it has been impossible to envisage basant without Coca-Cola. Coca-Cola give the more refreshing flavor to the colors of basant by adding more life to the festival, giving the consumer a unique experience which they had never tasted before. Coca-Cola GO-RED Quenching the thirst of motorist, pedestrians & passerby’s during Lahore’s hottest summer season, Coca-Cola’s “GO-RED” teams went out into the cities main quadrants to “serve & refresh” on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement campaign the “GO-RED” stall, served well to promote the Coca-Cola industry. Coca-Cola Party in a Park In June 2000, Coca-Cola created an experiential musical evening in Lahore, where Junoon performed. This program was recorded and one-hour program shown in the national TV for free.10 million households saw Coca-Cola ‘Party in a Park’ while 10 thousand people attended the event. Coca-Cola Shopping Festival Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping festival, a resounding success with tempting discounts, live music, great prizes & fire works. Liberty marketing Gulberg was a hive of activity during the weeklong shopping extravaganza. The in augural event proved so popular that it is now set to become an annual fixture. Coca-Cola Pet Promotion In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in Pakistan. Targeting house wives & family home, Coca-Cola’s 1.5 liter Pet bottle, took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits .A treat for the family, Coca-Cola’s PET was offered through a “price-off” promotion that said……….Go out & get some Coca-Cola Ramzan Campaign A very special occasion for the people of Pakistan Ramzan saw another very special CocaCola’s promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with a super price-off promotion. The emphasis on enjoying Coca-Cola at “Iftar” with friends & family. Coca-Cola Wonder of the World Promotion In July 2000, Coca-Cola set the stage of the grand UTC promotion. Coca-Cola went ahead with the idea of giving consumer chances to win fabulous, magical “dream vacation” to numerous “wonder destination” throughout the world on every purchase of a 250 ml RGB bottle of Coca-Cola, Sprite, & Fanta.The promotion gave consumers a chance to win free drink, a trip to PARIS, HOLLYWOOD, NEWYORK, SINGAPORE & CAIRO along with airfare & four nights free stay in these dream lands. The promotion saw avid consumer collecting Coca-Cola ‘Crown caps’ & sparked a keen response from the public , rendering an outstanding testimonial campaign in the second phase, highlighting the winners over whelmed in the magical delight of their favorite beverage Coca-Cola. Coca-Cola & Nokia In August 2001, the new under-the-crown promotion “Nikla Kiya?”(What have u won) was launched in collaboration with Chimera Nokia.The promotion gave consumer a chance to win thousand’s of Coca-Cola branded Nokia 3310 cellular phones on every purchase of 750ml RGB bottle of Coca-Cola ,Sprite, & Fanta.The other highlight of promotion was the “Caught


Red Handed” campaign. Branded Coca-Cola with ‘caught red handed’ team in them went to Lahore & Karachi for three days, with target that anyone being caught drinking Coca-Cola will be awarded a nokia 3310 mobile phone & if someone is caught talking on a nokia mobile will win free supply of Coca-Cola. Caught red handed become a huge success among the masses as it was one to one interaction between the Coca-Cola brand & the consumers. This activity helped billed confidence and brand loyalty among core consumers. Coca Cola TV Mazza The coca cola new campaign is coca cola tv mazza, it is a utc scheme in which people are getting television sets of different sizes. These days this scheme is very popular among the people. Coca-Cola & Mc Donald’s Coca-Cola & key account of MC Donald’s launched the “we go together” joint promotion to reinstate amongst consumers a real sense of the affinity that, both shares globally. The promotion kicked off with pos material (Danglers, Bunting etc) displayed at all MC Donald’s restaurants along with a special offer for coke & fries. Fanta & Sprite Launched In November 2000moving on to the Sprite & Fanta brands, the consumers in Pakistan witnessed a soft launch in essence. The Coca-Cola Company declared the new “NonReturnable” bottles of Sprite & Fanta as the “New, On the Go Packs” flaunting the innovative packaging convenience. Fanta & Sprite are sure to enjoy considerable success in Pakistan. Diet Coke After the acquisition of the individual local franchise bottling facilities in 1996, the company has successfully launched its first new product, diet coke, for the first time in almost 3 years. The was linked with three fashion shows as Diet Coke is related to fashion & fitness, but the major hit was thematic fashion shows in restaurants, which are the key accounts of the company as this has been never done before in Pakistan. CONCLUSION After thorough research, we come to the conclusion that the marketing strategy of Coca Cola is working for them and the product is gaining popularity among youth day by day. RECOMMENDATIONS After completing our project we have concluded some recommendation for the coca cola company, which are following. • Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. • According to the survey, conducted by the international firm Pakistani people like little bit sweeter cola drink. So for this coca cola company should produce their product according to the local demand. • Marketing team should try to increase the availability of Coke in rural areas. • They should also focus the old people. • Now young generation has a trend to drink a coke 2 regular bottles at same time, so providing more satisfaction to them company should introduce ½ liter disposable bottle. PEST ANALYSIS OF COCA-COLA There are four variables, which we will discuss in our report, they are:


Political variables

Effects government regulations deregulations

Strongly Effected ++

Some what Effected +

of

No Some Effect what +− Effected −

Strongly Effected −−

NE

&

Effect of environmental protection laws if any Import and export regulations Effect of political conditions in certain countries of Coke Any effect of election, military take over, Revolution at Coke

YES

NE

NE

YES

Conclusion Of Political Analysis: As far as the above table is concerned it could be seen that there are very little chances of “political variables” to effect the coke’s production and selling behavior. In the “political variables” most of the things are related to Governmental activities. So, they don’t leave any good or bad impact in the Industry of coke. And there are some exceptional things like: “environmental protection laws” they some what effect the industry of Coke. From last two years Government is going to be really very much conscious about the environment. But after making the adjustments in plants and applying the proper way of wastage the chances of being affected by the “protection laws” are going to be diminished. So it impact good for the Coke’s reputation. And the second thing in political variables which effects Coke is “elections & military take over” Because in the days of elections and marshal law’s condition the countries production in any field is declined. So it affects slightly the revolution of Coke. So “political conditions” are over all leave neutral effects on coke’s industry.

ECONOMICAL VARIABLES


Economical Variables

Strongly Effected ++

Do soaring interest rates make business task any harder Any effect due to inflation Anything done to reduce YES unemployment Any effect of 11th September 2001, incident at Coke in Pakistan

Some what No Some what Strongly Effected + Effect + Effected − Effected −− − YES YES

NE

Conclusion Of Economical Analysis It could be seen that “economical variables” highly affects the Coke’s resolution. Economic factors are those actors who effect the production of any industry. So, Coke is not the out of question. If the economic conditions of the country is not that strong and Coke increases its Price in this situation. Then it would impact highly negative. And inflation is also not a good position for any country’s production point of view. It also impacts highly negative in the Coke’s production. And as a country concerned like “Pakistan” where the unemployment rate is very much high. The Coca-Cola system in Pakistan employs 1,800 people. During the last 2 years, the CocaCola system in Pakistan has involved over $130 million (U.S). When we draw the conclusion of “economic variables”. Then we come to know that if economic variables are in the favorable position of country then they impact good other wise the impact highly bad. SOCIAL VARIABLES Social variables Strongly Some what No Some what Strongly Effected Effected + Effect + Effected − Effected ++ − −− Effects of advertisement of YES Coke on Public popularity How will do Coke’s YES contribution affect charity organizations of Pakistan Has rising consciousness of YES natural resources in people effected your “save environment activities. CONCLUSION OF SOCIAL ANALYSIS EDUCATION The Coca-Cola Company has always believed that education is a powerful force in improving the quality of life and creating opportunity for people and their families around the world. The Coca-Cola Company is committed to helping people make their dreams come true. All over the world, we are involved in innovative programs that give hard-working, Knowledgehungry students books, supplies, places to study and scholarships. From youth in Brazil to first generation scholars, educational programs in local communities are our priority. ENVIRONMENT A large part or our relationship with the world around us is our relationship with the physical


world. While we have always sought to be sensitive to the environment, we must use our significant resources and capabilities to provide active leadership on environmental issues, particularly those relevant to our business. We want the world we share to be clean and beautiful. We are always innovating to bring you different delicious beverages. This same spirit of innovation comes alive in our environment programs. We’re committed to preserving our environment, from use of more than $ 2 billion (U.S) a year in recycling content and suppliers, and environment Management initiatives, down to very local neighborhood collection and beautification efforts. Here’s a sample of what we’re doing in different communities around the world regarding the conservation of water and natural resources, climate changes, waste environment education. The Coca-Cola system in Pakistan operates through eight bottlers. Four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). COMMUNITY INVOLVEMENT: In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system initiated a famine-relief program to help victims and was the first private-sector company to assist. The Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one employee from each plant, selected through a draw, to be sent on the Holy Pilgrimage to Mecca at the Company’s expense. TECHNOLOGICAL VARIABLES Technological variables Strongly Some what No Some what Strongly Effected Effected + Effect + Effected − Effected − ++ − − Have business YES innovations effectively promoted your business Has the government’s YES regulations ever hindered in importing technical equipment Does Coke help in YES promoting paperless environment Conclusion of Technological Analysis Of course business innovation leaves highly good impacts in the business of Coke. As coke use more advance technology in its production process. It will resulted in increment of their production through out the country. As far as the “governmental hindrances” are concerned the impacts highly bad on coke’s production. Ever year when budget in announced government taxes rates always shoot up. This approach of government decreases the profit margin of Coke. As the coke helping in promoting “paperless environment” .it impacts good, because computers are the basic need of any person now a days. And though it’s a big industry so it is promoting the trend of paperless environment. And it is giving the way of other industries to come to new technologies and into a new world of business. Through computers coke can increase the efficiency of its business and can have up –to-date data about their production 21.0 PRODUCT PROFILE (Virgin Drinks) 21.1 Product: Virgin drinks


It has been a long time that Global Beverage Co. has been established at a beautiful site of Gazipur. It has come with the quality food & beverage in Bangladesh. Among its beverages (Virgin Cola & Diet Virgin); Virgin cola is the most popular drink among the young people as well as the children for its fantastic packaging, TVC and good taste.

“It’s your life color it” Virgin drinks was launched on 16th December, 2005 with two flavors Virgin Cola and Diet Virgin. Virgin drinks focuses on mainly young people who like the enjoyment and fun. Diet Virgin was introduced for the people who are very conscious with their health. The product Virgin has come with the following variations in the market• 200 ml bottle • 500 ml bottle • 1500 ml or 1.5 liter bottle • 200 ml can The Virgin drink has been made with the latest technology. So there is no chance to occur changeability in taste. The cola drinks contain a very strong taste which can compete with the market leader Fizz up and MOJO. As a member of the Global Beverage Co. Ltd., Virgin Cola is manufactured in the factory which is situated in Gazipur, Bangladesh. The packaging of Virgin Cola attracts the customer. The pay off line for MOJO is “It’s your life color it”. The ingredients that are used to make the Virgin Cola are• Granulated Sugar, • Carbon Dioxide, • Phosphoric Acid, • Flavorings, • Caffeine etc. Nutrition facts (Typical value per 100 ml) • Energy = 186 KJ/ 44 k cl. • Fat = less than 0.10 gm • Protein = less than 0.10 gm • Carbohydrate = 10.9 gm 22.0 PROMOTIONAL ACTIVITIES All companies need to promote their product in front of the target customer. Now a day advertisement has become the war field for the marketers. Virgin Cola is also trying to fight with their competitors in the field of advertisement. Nevertheless, we all know that good advertisement is necessary to establish a product. Catchy advertisement can ensure the success in the battlefield. After launching, Virgin cola trying to establish itself in the market and some of the cases they succeed. Now we try to show how Virgin concentrating on their promotional activities. The Virgin has been targeted for the young generation is designed for fun loving young adults.


• Television, • Newspaper, • Poster, shop signs & Billboards, • Street/ Concerts - all are used for promotion of Virgin, • Sponsorship of different special event such as reunion, 22.1 CURRENT PROMOTIONAL SCENARIO OF VIRGIN In our country, marketers do promotional activities through billboards, TV ads, sponsorship, newspaper ads, sales promotion, point of purchase ads and distribution. Virgin cola is ahead of the competitors and in few cases; they are not up to the mark. At first, we will describe the cases where Virgin cola is still behind their competitors, what they are doing, and what will change their environment. 22.2 SUGGESTIVE PROMOTIONAL TOOLS 22.2.1 Newspaper Ads The number of paper ads should have to be increased. Otherwise, they cannot make mass people aware about their product. It should also contain high imagery, relevant with product cola.

Newspaper Ad Operant Conditioning Encouraging the target customer to buy one and get one free. This partial consumption can lead to a permanent change in behavior in future. 22.2.2 TVCs The frequencies of the TV ads have to be increased. People who watch TV regularly are seeking for innovative things made by the marketers. So TV ads should be brought with a new format, with more new things so that it can catch the target aspect with the new one. 22.2.3 Sponsorship Till now Virgin cola make sponsorship of few events like concerts, nabanno utsav, bangla noboborsho etc. they should include cyber café, canteens of university, fast food shop and other places where people goes frequently. By doing so they can be with the target audience and we will find more aware people. 22.2.4 Sales Promotion They should in for massive sales promotion to attract people from other drinks. 22.2.5 Retailer Store Ads Most of retail shops use refrigerators supplied by Soft Drink Company. The main condition the retailer faces that they must keep the corresponding soft drink (which company provides refrigerators) first then they can keep some other thing. These refrigerators are posted in a way that the people can easily recognize their brand. On the other hand, Virgin sponsors very few of the shop sign of the retail stores, cafeterias, restaurants etc like other brands named Coca-Cola, Pepsi etc. There is a point to add: there was also a demand-supply disorder at the point of the launching. As a result, it failed to retain the booming demand that occurred due to the successful TVC. Although the product has a


moderate demand now a days it is not supplied accordingly. As a result, retailers do not have the product. Sometimes consumers cannot buy it when they want to, due to shortage of supply. They should supply their own refrigerators to the retailers, so that the drinks can always be kept cool. The supply of drinks should meet up the demands. If they supply less than people will fail to purchase Virgin cola whenever they intend to buy them. Therefore, in this field they need to bring their concentration 23.0 DISTRIBUTION OF VIRGIN Cola The distribution of Virgin Cola is strong enough as it is quite available in every targeted area. To distribute this product the company follows the following distribution channelManufacturer Wholesaler Retailer Consumer For the product availability the customers can get Virgin at any place when they need it. It is seen that this product has been successful to occupy the refrigerators in the outlets so that is found chilled. The Distribution Channel Looks Like Manufacturer (Partex Beverage)

Wholesaler/ Distributor

Retailers (Countrywide)

Consumers

Figure: Distribution Channel of Virgin Cola 24.0 PRICING STRATEGY The three different sizes of RC Cola have been priced differently. • 250 ml bottle = 12 tk. • 500 ml bottle = 20 tk. • 1 liter bottle = 40 tk. • 150 ml can= 15 tk. Here wholesalers take 0.5 -1.5 tk. and retailers take 2.00-2.5 tk. as profit. Again comparing to the competitors product, the price is low enough to encourage the target market to shift their brands towards Virgin. 25.0 FUTURE PLAN REGARDING THE STRATEGY


The immediate marketing goals are summarized in the following key objectives: 1. Have a cumulative 1500000 customer’s base by the end of 2010. 2. Set up a strong distribution channel by careful selection and proper execution of companies strategies. 3. Provide the most attractive and affordable products and services to the customers. 4. Aggressive market promotion and branding through effective advertisement and Promotion. 26.0 COMPARATIVE DATA In this report we have studied three beverage company profiles. They supply different kinds of soft drinks, different, taste, color, flavor such as cola lemon and the like. To compare the data among these three groups we have used here our view point, personal experience. We have collected this data from our neighbours, family members. In this report three beverage companies are Akij group, global beverage, Partex beverage. There is lot of things to compare among them but we can compare among their market segmentation such as age, occupation, gender their current market positioning and the like. Among age segmentation 15-20 Mojo demand is 9%,rc 6%,virgin is also 6%.20-25 Mojo demand is 85%,rc 60%,virgin 40%.25-35 Mojo 4%,rc 20% virgin 35%.35-45 Mojo 1%,rc 10%,virgin 15%.above 45 Mojo only 1%.rc 4%,virjin is same as rc. So we see that Mojo is very popular drinks the age from 20-25 teenagers like this soft drinks most. Age from 25 to 35 like virgin most. And the age above 45 like virgin and rc equally. So it differs market demand. Now we compare among occupation segmentation of this three group. student prefer Mojo maximum and it is 88%,rc 76%,virgin 68%.from private sector virgin is very popular and it is 15% where rc is 8% and Mojo is only 6%.business person like virgin most 12%,rc 10% Mojo 3% other like rc 6%,virjin 5%,mojo 3%. In gender segmentation female like Mojo only 29% , rc 27% ,virgin 34%and male like Mojo 71% ,73% rc, virgin 66%.here we see that female like virgin most male like rc most. In comparison among market positioning among this three company Mojo is 9%,coca cola is 54%,pepsi is 28%,other is 9% where rc is 12% and other 6% and lastly virgin overall demand in the market is 6% and others 12% demand for coca cola and Pepsi is same. There are various things to compare among this three group. But it is not possible to give all the information because of information availability, time shortage. In Bangladesh beverage market condition is now quite better than before. Before people know only two kinds if drinks coca cola and Pepsi. but now there are various soft drinks available in market such as rc cola ,euro cola ,virgin, Lemu, Mojo and the like. And now they have a strong position in the market. 27.0 CONCLUSION People prefer beverage pricing but it has to improve its image in status and quality issues. Unfortunately, Virgin is lagging behind due to inadequate communication of its brand elements like slogan, name’s meaning etc. It has also failed to communicate its own positioning to the target consumers. However, still now it has the chance to recover its own position because about 20% of the target customers are attached to RC Cola. MOJO have not constructed their belief structure. They have to develop their promotional activities. It has been only few years that Mojo has launched but in this time they have achieved much popularity because of their colorful packaging, developed distribution channel, TVC etc. RC cola is on the increasing rate. It has gain much popularity than Mojo or virgin. For unique taste and product varieties RC Cola is increasing its sales day by day.


A Report On The Comparative Study Of The Beverage Companies  

In this report we have studied five beverage company profiles. They supply different kinds of soft drinks, different, taste, color, flavor s...

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