Professional Documents
Culture Documents
The history of Partex Group is no different. It had its modest beginnings in the
tobacco trade in 1959 under the prudent stewardship of its Founder. Charmin Mr. M. S.
Hashem it has grown steadily over the years to become one of the leading industrial
conglomerate in the country.
In the early seventies, M/S Hashem Corporation Ltd. was established with
headquarters in the port- city of Chittagong. The missionary zeal and unflinching
commitment to quality and services took the group to higher elevations. At a time when
the newly independent country needed almost everything, the company involved itself in
the import of essential items like iron, steel, cement, sugar, rice spices, wheat, salt, milk
and other commodities. It did not stop there but to make the country self-reliant went on
to substitute imported products by manufacturing them locally. Guided, by this visionary
dream and backed by an inexhaustible repository of effort, the group emerged as one of
the largest corporate body of the country.
The towering height reached by the group was possible due to a market friendly
strategy, evolved by its pioneers. Modern management optimized on the initiative and
imagination of the personnel was the watchword. No work was too little for them, no
service insignificant. The pace of growth was further strengthened with their dedicated
and capable board members: Mrs. Sultana Hashem, Mr. Aziz Al Kaiser, Mr. Aziz Al
Mahmood, Mr. Aziz Al Masud, Mr. Showkat Aziz Ruseell and Mr. Ashfak Aziz Rubel,
under the leadership of the company’s founder Chairman Mr. M. A. Hashem.
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Partex group owns and successfully operates more than 17 manufacturing, service
and trading concerns offering best value for money to customers. The Group’s venture in
the global market started, rather, non-traditionally, with the export of condensed milk,
they are confident that their export thrust will expand where their information technology
venture is expected to play a major role.
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Company overview
PARTEX GROUP
FOOD AND BEVERAGE HOME AND OFFICE
TEXTILES
TRADING AND SHIPPING
Amber cotton
Corvee Martime
Ferrotech
OILS AND REFINERIES
Hashem Corporation
Star Coconut and Vegetable oil
Star Chemicals
SERVICES
REAL ESTATE
Dhakacom (ISP)
Partex Real Estate
Fotoroma (QSS Color Lab)
Partex Construction
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RC COLA- “ The freedom of choice”
RC Cola, on the other hand has done excellent during the past years, Royal crown
International, a US based company, old over 70 countries; Partex has brought its drink to
Bangladesh. Cola, Orange and cloudy Lemon can be had in the 1 and 1.5 litter bottles.
They come in various packages and different sizes in PET bottles, glass bottles
and cans. The labeling and packaging of these drinks are very attractive. The pet bottles
are unique and compete with older and popular brands like Coca-Cola and Pepsi. They
come in sizes of 1.0, 1.5, 2.0 liter. The cans are attractive too. They have been launched
recently in the market and doing fairly well and standing good competition from foreign
as well as local brands. Royal Crown is committed to offer Bangladesh more choices of
soft drinks.
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A SHORT HISTORY OF ROYAL CROWN
COLA
Royal Crown Company Inc., originally called the Union Bottling Works, was born
in Columbus, Ga. in 1905. A young graduate pharmacist, Claud A. Hatcher, began
creating his own soft drinks in the basement of his family's wholesale grocery business.
From these humble beginnings, Royal Crown Cola Co. grew to be the third largest soft
drink company in America.
At first, the Hatcher Grocery Co. purchased bottled drinks from a local bottler and
resold them to its grocery customers. 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.
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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, Judge S. Price
Gilbert in Muscogee County Superior Court of Columbus granted a charter. 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
lawsuit 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.
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THE PRODUCT LINE OF RC COLA
RC COLA
RC ORANGE
RC CLOUDY LEMON
RC UPPER TEN
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THE PRODUCT LINE OF RC COLA
RC COLA CAN
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SWOT Analysis
Strengths
• Flavors: RC cola have 5 variants of flavor, which makes the product different. It
comes with different packaging like glass bottle, PET bottle, can etc. It is more
than any other soft drink company in Bangladesh. So, it will give them an
opportunity to satisfy needs of different customer.
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Weaknesses
• New company: RC COLA was established 1998. It is very new relative to its
competitor like Coca-Cola and Pepsi. That will be a big disadvantage for them in
the market. They have built their brand image first and then they will be able get
their preferred market share. So, as a new company it will be very difficult to get
the market share of Coca-Cola or Pepsi.
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Opportunity
• Big market: The Bangladeshi market is one of the biggest in the world. The
middle class consists of 200 million, which is huge. It would be a big profit for
RC COLA even if they can capture a small portion of that market. Soft drink is
something that consumed by almost all class of people. So, the market potential is
very attractive.
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Threats
• Tough Competitors: Competitors like Coca-Cola, Pepsi are already established
themselves not only in Bangladesh but also all over the world. People associated
Coca-Cola and Pepsi with soft drinks very easily, which is very important to
achieve. This association factor will give RC COLA very hard time in gaining the
market share. Coca-Cola and Pepsi could very easily drive them out of the market
if they are not careful.
• Current world situation: The war in Iraq has raised a worldwide protest form
consumers. Consumers all over the world are angry about England and America.
RC COLA is an English company so consumers might boycott it because of the
Iraq war. All the American products are facing this problem especially Coca-Cola
and Pepsi.
• Domestic Companies: Bangladeshis by nature are very patriotic. Most of them
like to use Bangladeshi products. Domestic competitors like Thumbs up and other
tonic drinks companies could pose serious problem for a new company like RC
COLA. They could also run anti-war campaign to get consumer preference, which
would be very harmful for a new product like RC COLA.
• Volatile Political Environment: Politics in the subcontinent is used very badly.
Bangladeshi political environment is also very volatile. The foreign companies
face many problems in operating their business. It is very difficult for any new
company to go there and market their products. The bureaucracy of Bangladeshi
government will make it harder. It is very difficult to get the acceptance of the
government for any new venture. So, RC COLA could face problems in its
operation because of this volatility and bureaucracy.
• Sub culture: Bangladesh is famous for its culture. It is a very big country and
there are many sub-cultures in Bangladesh. They like totally different things and
anything offensive to their culture makes them angry. So it would be a big
challenge for RC COLA to reach all of them.
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TARGET MARKET
The target market segment for RC COLA beverages in Bangladesh is as
follows:
• Age : 12 – 30 years
• Sex : Unisex; Females especially for RC Diet
• Location : Urban (primary) and semi-urban (secondary)
• Monthly Income : Tk. 5000 and above
• Occupation : Students and young professionals
• Social class : Middle, Upper middle and Upper
• Life style : Trendy, semi-traditional, sometimes antisocial
• Personality : Extrovert, fun-loving, irrelevant, open minded
PRODUCT MARKET
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MARKET RESEARCH
Market research is the systematic design, collection, analysis and reporting of data
relevant to a specific marketing situation facing an organization. Companies use
marketing research in a wide variety of situations. For example, marketing research can
help marketers assess market potential and market share, understand customer
satisfaction and purchase behavior and measure the effectiveness of pricing, product, and
place and promotion activities.
RC Cola research their market based on the primary data. They scrutinize their
information mainly by their sales person. However sometimes they gather the
information from their retailer and wholesaler. They follow the exploratory and
descriptive research, because they gather the preliminary data that will help to better
define problems and suggest hypotheses. They collect the primary information by three
stages .The steps are –
• Observation
• Survey
• Experiment
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MARKETING GOALS AND OBJECTIVES
Their objectives are to provide with better quality product in competitive price.
They mainly focus on customer benefit.
Their goal is to be the number one in the competitive market and they want to be
the market leader. They are also looking for product diversification. So to be the market
king they are going to introduce many new product lines in near future. They want that
their competitors follow them but they don’t want to follow them.
Their target sell is 2, 00,000 units per month.
Because of their limited production capacity they are unable to utilize their
competitive advantages. It also hampers their marketing goals because lack of additional
supply meets customers’ dissatisfaction & they derive themselves from making new
contracts with them.
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MISSION
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Marketing Strategy
Marketing strategy is the logic by which the business unit hopes to achieve its
marketing objectives. It consists of specific strategies for target markets, positioning, the
marketing mix and marketing expenditure levels. In this section, the planner explains
how each strategy responds to the threats, opportunities, and critical issues spelled out
earlier in the plan.
Factors to Consider
Current feasibility:
There is always the option of doing nothing and allowing competitors to take over
so valuable resources can be redeployed elsewhere.
Competitor capability:
Global markets have added considerable complexity to this dimension as rivals
can now literarily come from any direction. Can they make it good, better, etc are there
new entrants poised to come in with bigger and better ideas.
Customer wants:
Customer satisfaction is the main obsession for a beverage company. For this
reason a beverage company have to have a strong strategy to meet the customer wants.
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As Per RC Cola
On the basis of market size and current feasibility, RC Cola is developing their
market strategy in a very careful way. In Bangladesh, as they are mainly competing with
Pepsi and Coca –Cola they are marketing their product in various shapes and colors. As
their target consumers are people belonging to the age group of 12-30 they are making
can, pet bottle etc. For diet RC cola their target consumers are young ladies and health
conscious people. They are very cautious about the fact, which is “What the customer
want?”
Market segmentation
marketing mixes.
Mass Marketing:
Companies not always follow target marketing and market segmentation. They
follow mass marketing-mass producing, mass distributing and mass promoting about the
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Segment Marketing:
Isolating broad segments that make up a market and adapting the marketing to
Niche Marketing:
Focusing on sub segments or niches with distinctive traits that may seek a special
combination of benefits.
Micro marketing:
The practice of tailoring products and marketing programs to suit the tastes of
♦ Local Marketing: Tailoring brands and promotion to the needs and wants of local
customer groups.
♦ Individual Marketing: Tailoring products and marketing programs to the needs and
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Geographic segmentation:
Demographic Segmentation:
Dividing the market into group based on demographic variables such as age, sex,
family size, family life style, income, occupation, education, religion, race and
nationality.
Gender segmentation:
Income segmentation:
Dividing a market into different groups based on social class, life style, or
personality characteristics.
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Behavioral segmentation:
response to a product.
Occasion segmentation:
Dividing the market into groups according to occasions when buyers get the idea
Benefit segmentation:
Dividing the market into groups according to the different benefits that consumers
As Per RC Cola
RC Cola follows segment marketing and geographic segmentation. Their
geographic segments are greater Dhaka, greater Chittagong, greater Noakhali and
Comilla. RC Cola has own distribution network. But now RC Cola is willing to shift to
mass marketing. They intend to use the Danish distribution network for this purpose.
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Market Positioning
offering consumers greater value, either through lower prices or by providing more
that it will give consumers more value than competitor offers do. A Company or market
offer can be differentiated along the lines of product, services, people or image.
Product Differentiation:
can differentiate their products on attributes such as— consistency, durability, reliability,
Services Differentiation:
In addition to differentiating its physical products, the firm can also differentiate
the services that accompany the product. Some companies gain competitive advantage
through speedy, convenient or careful delivery. Installation and repair services can also
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People Differentiation:
Companies can gain a strong competitive advantage through hiring and training
better people than their competitors do. People differentiation requires that companies
Image Differentiation:
Even when competing offers look the same, buyers may perceive a difference
based on company or brand images. Thus, companies work to establish images that
differentiate them from competitors. A company or brand image should convey the
products distinctive benefits and position. Symbols can provide strong company or brand
recognition and image differentiation. Companies design signs and logos that provide
instant recognition.
As per RC Cola
RC products gained competitive advantage by good taste and Competitive price.
They also used all differentiation methods effectively. RC introduced PET bottle for the
first time in Bangladesh, which was a revolution in the soft drink market. They also
introduced Cloudy Lemon flavor for the first time in our country.
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Marketing Tactics
Product Price
Varity Packaging List price
Quality Service Discounts
Design Allowances
Feature Payment period
Brand name Credit items
Target
Customer
Intended
Positioning
Promotion Place
Advertising Channels
Personal selling Coverage
Sales promotion Locations
Public relations Inventory
Logistics
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Marketing mix is the set of controllable tactical marketing tools-product, price,
place, and promotion-that firm blends to produce the response it wants in the target
market. The four P’s theory is implemented as per RC Cola in below-
Product:
Product means the goods and services combination the company offers to the
target market. Thus it means that, the variety, quality, design, features, brand name,
packaging, services all matters to make the marketing mix successful. In this case RC
Cola made their drinks unique in size, quality, design- like pet bottle, packaging.
Price:
Price is the amounts of money customers have to pay to obtain the product. Price
is a very intense situation where it can either garb the main part of market share or it
cannot be successful in doing so. In this situation RC Cola is following a thoughtful
tactics. They are pricing their drinks in a competitive way. Though they are spending a
big amount of money for the packaging and features, they are setting a competitive price
to attract the market.
Place:
Place includes company activities that make the product available to target
consumer. It includes the channel, coverage, assortments, locations, inventory, and
transportation of the product. RC Cola is making their product available not only in the
big cities but also in the rural villages. RC Cola has own distribution network. But now
RC Cola is willing to shift to mass marketing. They intend to use the Danish distribution
network for this purpose. They had their own transportation facilities. They have over
200-distribution channel to make their product available in the whole country.
Promotion:
Promotion means activities that communicate the merits of the product and
persuade target consumers to buy it. To achieve promotional plan they have chosen the
following objectives:
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SALES PROMOTION
• It offers bonus to the sales person based on units sold over a period of time.
Which will stimulate sales.
• They also offer the retailers or wholesalers discounts or cash money to get their
product special displays, superior store location.
PUBLIC RELATION
• They have a plan in doing corporate advertising (no attempt to sell product).
• They can send speakers to talk with different people about their feeling about the
product.
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ADVERTISEMENT
• Newspapers
• Electronic advertisement
• Sponsoring
• Billboards
• Banners
• Organize charity programs and events.
Creative planning
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Message strategy
RC COLA is a low - involvement product. So, people give little attention and less
time for this kind of products. Moreover, as they have emphasized more on the young
generation, they are extra cautious. As we know, young people generally have less
patience; they don’t want to spend time on advertising.
That’s why; they have taken an aggressive approach with a sense of deep emotional
touch. Their message is for their wide variety of products. And their slogan is more
influencing, “THE FREEDOM OF CHOICE”. Here, we can see that, the message and
slogan not only focusing on the brand name but also taking about that emotional aspect
which has been always occurring in peoples’ minds.
Selling premises
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Market Implementation and Control
To control the market RC Cola is following some functions and these functions
are mainly prepared based on the next three years projection. The Functions are described
below-
Transportation:
Transportation is a very crucial function for a company to achieve their goals,
because without proper transportation system a company can never reach to its consumer
market. In this case RC Cola is doing extremely well and they have already prepared their
transportation channel plan for the next three years.
Financing:
To control the market a company must have the efficient finance state, which RC
Cola already have. Without the proper finance state a company can never rule the market.
Market research:
Marketing research can help marketers assess market potential and market share;
understand customer satisfaction and purchases behavior; and measure the effectiveness
of pricing, product, place and promotion activities. RC Cola does their marketing
research on the basis of primary data, which they get from various agents.
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Negotiation:
The main objective of negotiation is to negotiate with the people by determining
their need and wants and imply that to the available good in the market.
Selling:
To sell their product RC Cola is willing to take short-term risk like distributing
their drinks to the retailers on credit.
Promoting:
RC Cola is willing to promote their product in 2 types. These types are-
i. Advertising internationally
ii. Attracting people by alternative policy.
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Summary
At the end of the report it is quite evident that the market potential in Bangladesh
is very high. But, to exploit this potential RC COLA must plan its way very carefully. We
have formulated all the strategies needed to gain substantial market share in Bangladesh.
Now RC COLA must follow all those strategies. Any lack of commitment in RC COLA
part would result in a disaster. But after establishing themselves in Bangladeshi market
they must not feel like winners. Gaining market is not the end of the story -- it won’t be
living happily ever after. Because it is nothing about the fairy tales, rather the real world
that is getting more and more dynamic and uncertain and where it is to believe that
problems are there always but along with the solutions. It is just the initiative that should
be taken at that moment to find the solution.
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