1.0 SYNOPSIS 1.1 Background of Partex Group Ltd.

:
1.1.1 History: Partex Group is among the large Bangladesh private sector manufacturing and service-based enterprises, owning and operating over twenty units giving value for money to all customers. The group started modestly in 1959 in tobacco trading and with prudent entrepreneurship of the Founder Chairman Mr. M.A. Hashem. Today they have a stake in tobacco, food, water, soft drinks, steel container, edible oil, wooden board, furniture, cotton yarn and the IT sector. After Bangladesh was established their Chairman set up M/S Hashem Corporation (Pvt.) Ltd. in Chittagong city meeting the large demand of food and materials needed for sustaining the needs of a new nation through imports. From importing to import substitution was the next logical step and the stepping-stone into the manufacturing sector, which has matured to the multi-million dollar diverse investment of the Partex Group today. A dedicated work force and committed board members led by the Chairman and backed by a market oriented corporate strategy has been the cornerstone of their success. Today the group has over twenty family-owned private limited companies with a sizable turnover. Partex is a dynamic organization always exploring new ideas and avenues to expand and grow further. (Official website of Partex Group) 1.1.2 Mission Statement “Our mission 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” (Official website of Partex Group) 1.1.3 Financial summary According to the firm, RC cola is a profitable brand. Its growth is also satisfactory. The sales of RC Cola in 2005 was about 240 crore, in 2006 it reduced to 150 crore and again increased to 180 crore in 2007. After that, last year’s RC cola sales increased rapidly to 230 crores. From the sales

data it can be said that RC cola has become a huge source of revenue generation for Partex Beverage, which it can use to support other marginally profitable or unprofitable products like MUM drinking water. In 2000-2001 its targeting turnover was Tk. 8,000 million and estimated 1

growth rate 15% per annum. Net worth at current market price is Tk. 7,500 Million. The interviewee claims that the main reason behind their huge profit is their strong distribution. Other than that, low marketing expenditures are also a key to their success. They mainly focus on creating catchy advertisements at lower costs. This strategy helps them to save a significant portion of their revenue. (Interviewee, Md. Nahid Yousuf)

1.2 Background of RC Cola:
1.2.1 Introduction of the product 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. 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, Partex as well as RC International carried out a wide range of marketing research. After positive results, in 1996, the Corporate Head and the Directors formed Partex Beverage Ltd. Mr. Rubel Aziz, 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. (Official website of Partex Group)

1.2.2 Its Purpose RC cola was launched in the market for financial profit, but the main reason for Partex to launch RC cola was to use its unused beverage capacity. (Interviewee, Md. Nahid Yousuf) 1.2.3 Other items in the product line 2

which is a drinking water. RC is the most profitable product brand in the product line. George & Michael) 2. RC lemon. the organization of the promotional department. Upper 10 and the best pure drinking water. The analysis should study the relative advantage 3 . RC and other drinks in the product line are carbonated drinks except Mum. (Official website of Partex Group) 1. and the ótccesses and failures of past programs should be reviewed. (Advertising and promotion. RC orange.0 SITUATION ANALYSIS Situation analysis is the diagnostic activity of intercepting environmental conditions and changes in light of the organization’s ability to capitalize potential opportunities and problems. The capabilities of the firm and its ability to develop and implement a successful promotional program.The project we are doing is for RC cola and it has many products in its product line.1 Internal Situation: The internal analysis assesses relevant areas involving the product/service offering and the firm itself.Mum.2.4 Substitutes of the product The substitutes of soft drinks can be: Water Fruit Juices Coffee Tea Energy Drinks 2.

Firm’s product and services are given below: Danish condensed milk Partex real estate Danish fruit juice Amber cotton yarn Partex furniture Dhaka. (Advertising and promotion.com (ISP) Fotoroma (Official website of Partex Group) Rubel steel drum Danish milk powder Partex beverage & MUM Star particles board Corvee maritime Web paramedics Partex Plastic 4 .1. drinks. Today they have a stake in tobacco. soft. food. edible oil.and disadvantage of performing the promotional functions in-house as opposed to hiring an external agency.1 Firm’s product Partex group has different and diversified business in the country. Partex is a dynamic organization always exploring new ideas and avenues to expand and grow further. cotton yarn and IT sector. water. furniture. George & Michael) 2. steel container. wooden board.

Marketing: Partex has a very strong distribution system. Barishal. Sylhet. Noakhali. 7.500 Million. keeping concern on the health side they were able to convince customer that their plastic bottle materials is made up with food grade plastic and approved by the FDA.000 million and estimated growth rate 15% per annum.) From these dipos RC Cola and other beverages are supplied within the desired time. Nahid Yousuf) 5 . anywhere in Bangladesh.2. For this research development of taste they started to compete with Coca cola with their unique brand. office furniture design and so on. It also has a one stop manufacturing technology. Their R&D department best work was to introduce the plastic bottle for the first time in Bangladesh.2 Capabilities of the firm Financial: Partex group finance is the nerve system centre of the corporation. Partex group has spent lots of money in their R&D not only for beverage but also for Partex Plastic. Md. This is a competitive edge that Partex has because other competitors don’t have this facility. The process used to manufacture this product is called Injection Molding. It uses the same purification process for the water used in both MUM mineral water and other beverages. RC Cola is ahead in quality in this perspective than other competitors. There are over 45. It is a single stage transformation process.1. It handles all kinds of financial and accounting services. 8. Machines and Technology: Partex Beverage has its own CO2 plant for producing all its beverages unlike other competitors. The manufacturing process is simple yet needs the highest precision. Research and development: Partex group has a well-organized R&D department where they are continuously trying to develop their product as per customer preference. It has 9 depots including its main factory in Dhaka in various regions of Bangladesh (Bogura. Khulna. Over 350 distributors around the nation are engaged in distributing the products and services. Chittagong and 2 depots in Dhaka District. As we all know that their innovation of RC cola taste was a proven test for all of us.000 outlets where products are marketed. Partex furniture design. So. Net worth at current market price is Tk. It has a strong financial position in the country with different kinds of businesses. (Interviewee. In 2000-2001 its targeting turnover is Tk.

It happened because of weak ad theme. They have convinced the consumer that their plastic bottles where made of food grade plastic and by that time all other beverages has started to produce their cola in plastic bottles. For that. it is still in production and when winter comes then it is distributed in the market but that time the demand is low. And it creates interdisciplinary capabilities that can speed up work. It is strongly supported by motivating and managing men and women so that they can readily involve into complex work situations as needed.1. what happens is that. (Interviewee. Over 7. (New Age. This matrix of people having different knowledge and skills provides optimal solutions to work situations by having multifunctional skilled people in the organization. which was a big success for partex group. shortcircuiting the usual red tape. Nahid Yousuf) 2. M A Monsoor) 2.000 employees are working in this commercial group. Failure: Partex Beverage’s failure is that they were not able to promote MANGOLA juice and RC ORANGE because of their marketing failure. It is an extension of the staff type management model where multiple specialties are synthesized to achieve a simple efficient and functional capability. Again in case of RC ORANGE they had some coordination problem with the distribution process and climate change. Needless to say it saves time and cost.2 External Situation: 6 .Human resource: Partex group consists of 17 concerns. which didn’t attract the consumers that much as like RC Cola. In 2002 they introduce the new PET pack size called RC mobile with a very organized marketing campaign. at summer when customers look out for RC ORANGE. That’s type of capabilities has been created by human resource department of partex group. trouble shooting and improve management quality is desired. Md. As partex group have 17 different businesses and human interaction between different sectors that will increase their efficiency as well as coordination among themselves. Their group work is the desired because new organizational trend are implemented with the change of time.3 Study of the firm’s past success and failure Success: In 2002 Partex beverage introduced plastic bottles cola and mum water for the first time in Bangladesh.

Youngsters at this age are in midway between seriousness and vacillating decision making process or in other words a bit confused. Nahid Yousuf) 2. These people are windowshoppers. George & Michael) 2. They pass a very significant part of their daily life by hanging around here and there with friends and group influence is very high at this age. preferences and opinions. Md. 2. (Advertising and promotion. The important needs are love. RC Cola also gives them the freedom to choose one of the best tasting cola at reasonable prices.1 Customers 2. The purchase of RC cola is situational.2 Buying Pattern Since RC cola is a beverage it is not a necessity and is not purchased by the buyers on a daily basis. and competitors.3 Factors influencing purchase decision The major factors that provoke buyers to purchase RC cola are as follows: 7 . Though it is considered that people buy RC lemon after lunch and RC cola after dinner. Partex intends to dominate the evoke set of this group through its promotional activities.1Characteristics As the Cola flavor is usually liked by youngsters.2. positioning strategies. etc. Its customers are University going students at their initial stage of entering the “Youth” tagged life. They fall in the age range of 19-22. which they used to aspire in their previous ages. market segments.2.2. tagline. It might also be purchased on different occasions like parties. So taking these facts into account it can be concluded that there is no fixed buying pattern of RC cola. Their tagline (Freedom of Choice) is also catchy to this group.1.2. board meetings etc. fun and to get importance from the opposite gender.External situation focuses on factors such as characteristics of the firm’s customers.1. (Interviewee. so RC Cola has been able to differentiate its potential customers quite successfully. At this age they get the taste of freedom and intend to come out from their traditional boundaries of home and known surroundings. media events etc or for formal occasions like press conference. fashion conscious and are attracted by product packages. Sense of freedom grows inside them and that leads to building individual choice patterns.1.

interests. Marketers segment their markets in an attempt to better satisfy customers’ needs and adapt their marketing activities to meet the needs of the specific segment. George & Michael) 8 . Upper Middle class. And on the basis of Income class they have segmented the market as Upper class. Psychographics segmentation: It has divided the market on the basis of personality or lifestyles. RC Cola offers their consumers the best tasting cola at a reasonable price that influences a lot of people towards the product. Lower class. Lower middle class. Matured (23-30) and Adults (30-50). and customers are always inclined towards buying a brand.RC Cola has established itself well as a brand. Teenagers (1618). As RC cola is a product of impulse purchase. geographic location or perceived product benefits.2 Market Segmentation Process of dividing the total market into several relatively homogenous groups with similar product or service interest based on factors as demographic. its extensive marketing activities at various Medias always keeps the consumers aware of the product that eventually enhances the purchase intention. Middle class. 2. Nahid Yousuf. Youth (19-22). Sub-Urban group and rural group. (Contemporary marketing. psychographic characteristic. Md. and opinions of the segments mentioned above and then they have correlated the lifestyles with the consumer’s product.2. brand and media usage. Geographic segmentation: It has segmented the market on the basis of geographic region of customers. They have segmented the market as urban group. (Interviewee. They have segmented the market on the basis of age as Child (5-15). They have carefully determined the lifestyles and analyzed the activities. Advertising and promotion. Louis and David) Partex has segmented RC Cola’s market in the following ways: Demographic segmentation: It has segmented the market based on age and income range of customers.

fun loving. smart. Geographic region: People who live in urban areas.2. so they have chosen tagline like “Freedom of choice” to attract this group. Since the main target market of RC Cola is youth. The advertisements were prepared considering the smart. fashion conscious. The marketers identified the students’ dream and desire for fun and freedom and implemented their marketing communication accordingly. Nahid Yousuf) 2.4 Positioning strategies Developing a marketing strategy aimed at a particular market segment and designed to achieve a desire position in the prospective buyers mind. high interest in opposite sex and high involvement in extracurricular activities. Louis and David) Age: They are considering people from age 10 to 50 years as their potential customers because RC is a not a much differentiated product for any specific customer group. carefree. Income class: Those who belong to upper class or upper middle class or middle class families. Partex tries to position RC Cola in consumers mind in such a way that they can associate RC Cola with their own characteristics and image. RC Cola is mainly positioned in two ways. The position indicates the brand or product image relative to the competing brands in the marketplace. But among all the groups they are mainly targeting people of Youth (19-22) age group. services or ideas with a strategy designed to satisfy their specific needs and preference. Psychographics characteristic: They are targeting people who are freedom and fun loving.3 Target Market Group of people towards whom a firm markets its goods. (Interviewee. (Contemporary marketing. 9 . Louis and David) Positioning is the most important factor in establishing a brand in the marketplace.2. (Contemporary marketing. not so confident rather a bit confused about life. Md.2. fashion conscious students. windowshoppers. They are: Positioning by product user: This means positioning a product by associating it with a particular user or group of users. The marketers focused on relating the marketing messages with the lifestyle and emotions of the target market. care-free.

Uro Cola. Partex thinks that Mojo is growing very quickly and is a profitable product too. Md.2. and Threats involved in a project or in a business venture. (Interviewee. Md.5 Competitors Information RC Cola has many competitors in the market. Nahid Yousuf) 2. Opportunities. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. etc. The SWOT Analysis of RC cola is described here below: 10 . Mondal and Ahmad) Mojo (Akij Beverage): Akij beverage is a local company and Mojo is the cola flavor soft drink that they offer.0 SWOT ANALYSIS SWOT Analysis is a strategic planning method used to evaluate the Strengths.Positioning by price or quality: In their campaigns they claim that RC cola offers the customers ‘value for money’. They consider two companies as their main competitors. (Advertising and promotion. The company has focused on the quality or value offered at a very competitive price. Weaknesses. Nahid Yousuf) Other competitors of RC Cola are: Coca-cola. This suggests that RC cola has used price/quality characteristics to position the brand. The market share of Mojo is still under 5%. 3. They are: Pepsi (Transcom Beverage): Pepsi is a franchisee company like RC Cola that entered the local markets much before RC Cola. Interviewee. The total market share of Pepsi in Bangladesh beverage market is 20%. (Government Policy and Competitive Business Environment in Bangladesh. Pran Cola. but it is increasing fast. George & Michael. Virgin Cola. which means customers can get one of the best tasting cola in the world at a reasonable price.

5L etc. RC Cola’s major strengths are the followings: Strong financial support: Partex is the franchisor of RC cola. the brand image is one of its strength. It’s like a one stop service. Upper10. Package design: It's a competitive marketplace out there. and when it comes to the "cola wars. Strong distribution system: Another important strength that RC Cola has is its strong distribution system. It was the pioneer to introduce plastic bottles as the container of soft drinks in the market. Brand image: RC Cola is a well-reputed brand. The RC Cola logo is one of the most distinctive in the industry. Partex furniture. they are not dependent on outside suppliers in this case. For example.2 Weakness 11 . Convenient package size: RC Cola has different types of package size like 250ml." strong brand identification is critical in building brand share. As a result. These have an impact in consumers mind. RC lemon etc. they have full control over their whole manufacturing process. motivated sales personnel make the distribution strong.3. So. 3. These entities have funded RC Cola at initial stage and can also provide financial support at present. supply doesn’t fall down compared to demand. Personal technical support: RC Cola has its own technical support in every step of the production process. it has its own Carbon-di-oxide (CO2) plant. Other than RC Cola Partex has many other beverage brands like MUM mineral water. 1. It also introduced cloudy lemon type soft drinks in the market. allowing for a contemporary package design. Skilled. So. It also has some big profitable units like Partex board. bottling plant etc. Making sure consumers quickly and clearly recognize a product brand comes down to one thing – packaging. welltrained. This variation of package size eases consumers to make purchase decision. RC Cola has its distribution channel all over Bangladesh. 500ml.1 Strengths Strengths are attributes of the organization that are helpful to achieving the objective. 1L. etc.

As a result. Weaknesses that RC Cola has are: Lack of strong Marketing support: The marketing department of RC cola wants the promotion to be image based. Consumers are served drinks in glasses in the restaurants. the marketing team doesn’t get strong marketing support from the management. RC cola lack in this sector as it doesn’t have GRB now. the quantity of CO2 in RC cola is less compared to other soft drinks. Consumers might not find the essence of soft drinks if it lacks CO2 in it. They also can’t bring back the GRB because they have damaged all bottles they had and changed the machines too. It just uses the name and logo of International RC Cola. which has a demand in the restaurants. So. Less consumer promotion and public awareness activities: 12 . Sprite. 7up etc have Glass Returnable Bottle (GRB). RC Cola also doesn’t get any support from the international franchiser.Weaknesses are attributes of the organization that are harmful to achieving the objective. Pepsi. Gas machines: Most of the machines used for the production of RC cola are run by natural gas. restaurant owners prefer to buy and serve the customers soft drinks contained in GRB. So. Problem arises when the pressure or supply of gas is less. So. Starting it newly will be much costly. They want to attract consumer attention by making ads using the Emotional approach. RC has less marketing activity and low brand value than its competitors. Absence of GRB (Glass Returnable Bottle): Other soft drinks like Coke. which is also cost saving for them. Product quality: RC cola loses CO2 quickly after opening the bottle. Production as well as supply of RC cola might get hampered because of less pressure of gas. Whereas the management wants the ads to be more product based using the Rational approach.

Pepsi. they have few new markets to explore and thus have less chance of growing further. RC is planning to relounge the 330 ml package size. Threats that RC Cola faces are: 13 . For example. This introduction of Fountain machine will help RC in its promotion. Zahedul Islam) So. RC is also planning to introduce its Fountain machine.4 Threat Threats are external conditions which could do damage to the business's performance. Fountain machine: Like Coke. it works very little in various public awareness issues. Competitors life cycle in decline stage: The life cycle of the main competitors of RC Cola like Pepsi and Coke are in decline stage. Also. This hampers the brand image of RC. Shezan juice etc. They are in the beverage market for a long period of time and their market is almost saturated. which was promoted as ‘pocket’ RC. New product line: RC has opportunity to introduce new product line like RC juice. This can help RC to have a better brand image. 3. Following are the opportunities that RC Cola has. Pepsi do it heavily and frequently. 3. Pepsi is sponsoring the IPL. Sprite etc. university canteens and also in vans in the roads. Package size: RC cola has the opportunity to introduce new package size. (New Age.3 Opportunity Opportunities are external conditions that are helpful to achieving the objective. For example. Coke has seen its market share eroded by nearly 25 per cent between 2000 and 2005. Whereas competitors like Coke. This can be an opportunity for RC Cola. This variation of product line will help RC to compete not only in the cola market but also in the juice market with Pran juice.RC cola sponsors very few consumer events. These fountain machines can be seen in fast food restaurants.

So. Whereas other public owned companies receives government subsidies. this is the threat that RC is facing from its competitors. Sprite etc are the pioneers of the soft drinks industry. fuel to run machineries etc are rising. which is a beverage of Partex. Pepsi. (Interviewee. consumers might not find RC cola a better option. So. Md. the marketing activity and brand value of competitors are more than RC cola. Uneven trade offers by competitors: Sometimes competitors provide uneven trade offers to consumers. As it is not possible for RC cola to provide this type of trade offers. as a result. Pepsi etc are more than that of RC. as a result of these unstable political situation and terror attacks in Bangladesh sales of RC cola can decrease. So. many consumers have soft corner to those brands. artificial flavor. No subsidies from government: Partex is a private. those companies have an advantage over RC cola. Virgin offers a 1L bottle free with a 1L bottle buy. RC cola joined the industry a bit later. This increases the production cost and RC can encounter budget deficit. Compared to those. the prices of raw materials (such as pharmaceuticals) used for the production of RC cola like sugar. That’s why. As a result. this is another threat that RC faces from its competitors. This can decrease its sales. Recent world economic recession: Because of the recent world economic recession. It doesn’t get any subsidies from the government. Wikipedia) 14 . Brand image of competitors: Coca Cola. Nahid Yousuf.Marketing budget of competitors: Marketing budget of other cola brands like Coke. For example. family owned company. So. Unstable political situation and terror attacks in Bangladesh: The unstable political situation in Bangladesh can increase the price of raw materials used by RC cola. Terror attacks can hamper the marketing activity.

And outside ad agency is a firm that is specialized in planning and executing the ad campaign for its clients. Better knowledge about market: . media researchers. etc) and R&D department which helps the company to be more precise with their marketing strategy.This makes the client dissatisfied with the quality of the advertising provide by the agency and may affect the firm’s image and reputation for a long run.The ad agencies have better man power and they provide the client with services from highly skilled expertise in their chosen field. Again the outside agencies sometimes have extraordinary expertise and experience in some specific product or service. 15 .4. They can also offer customized services to their clients.Outside agencies have more flexibility in terms of any change and time. 4. 4.1 The advantages of using outside agency are: Availability of highly skilled expertise and creativity: . owned and operated by the firm. Along with the total bill they pay Expression ltd 5% of the total bill as service charge. which is unknown to the firm. Flexibility and customized service: . That’s why it becomes sometimes easy for firms to identify the correct segment of the market.2 Some disadvantages of the outside ad agency are: Poor performance or services from ad agency: . writers. For these reason sometimes firms change their ad agencies frequently to change the view of the customer. These agencies have already well-organized HR department (includes portfolio of artists.0 ANALYSIS OF THE ADVANTAGES AND DISADVANTAGES OF MAINTAINING THE PROGRAM IN HOUSE OR USING AGENCY: In house ad agency is an agency that is set up.They can educate the clients about the viewpoint of the market. The Partex group uses an outside ad agency named EXPRESSION LTD for their advertising and campaign.

Strategy to accomplish the objective: At the initial stage RC Cola used GRB (Glass Returnable Bottles) but GRB used to break easily and was not cost effective. (Advertising and promotion. They were the first to name the 500ml bottle “Mobile” pack and that was a huge hit. They also had bottles of 1 liter. The client may outgrow the agency or decide it needs a larger agency to handle its business. But they found out that in market there is demand for different sizes of packages. IMC OBJECTIVES 5. 1. The firm also has less control over all the activities if it hires an outside agency because it is required to give the agency much freedom to exhibit highest performance and creativity. but changed to “Pocket RC” in 2009.Working with an outside ad agency is very costly in terms of bills paid to the agency and other related costs.Problem regarding poor communication: . But in 2001 they introduced the plastic bottles. 16 . it can be said that choosing an outside agency is a good decision for Partex. So. So.1 Objective 1: Aware consumers about various newly introduced package size of RC cola in 2009.5 liter and 2 liter.Conflict of interest may develop when an agency merges with another agency or when a client is part of an acquisition or merger. High cost and low control: . And it shows in their work that how well the ad agencies have work for their ads. If the agency gets too larger the client may represent too small percentage of its business to command attention. Conflict of interest: .If there is poor communication between agency and firm then that makes the client and agency personnel fail to sustain a favorable working relation. 5. Virgin was the first in Bangladesh market to introduce plastic PET bottles for soft drinks. Partex stopped producing RC Cola in GRB in 2001 and in 2002 they introduced RC Cola in plastic bottles. RC cola is the first profitable beverage company in Bangladesh that introduced and maintained successfully the plastic bottle package (PET Bottle). George & Michael) Considering all these related factors Partex group has chosen outside agency for their ads and campaign. in 2008 they introduced mini RC of 330 ml. At the last of 2008 they introduced another pack of 250 ml named “Tuny” first. So. But Virgin was not making profits because of its distribution problem.

They are taking these campaigns very seriously because they believe that these will significantly add dimensions to their positioning strategies and image development. they have some communication plans. So. Strategy to accomplish the objective: RC cola truly believes in cultural bonding.2 Objective 2: Redesign the Bangla Label in the RC cola bottles inside the country and Arabic Labels for export purpose to middle-east countries by 2009. Nahid Yousuf) 5. (Interviewee. And to do that they are going to introduce Arabic labels in the RC bottles exported outside. which is going to comprise the main theme of International Mother Language Day and Independence Day together to showcase the language diversification in RC cola labels.To create awareness about the newly introduced pack sizes they will: Continue broadcasting the new “Pocket RC” ad in Television and radio. Md. Continue the ad campaigns at regular basis to always recall the consumers about the products because they believe that due to lack of continuous recalls an initially profitable product can lose its appeal and can become unprofitable. Such asWithin two months they are going to start an advertising campaign. Nahid Yousuf) 5. which is going to bring long-term benefit. They have a plan to be a sponsor of the ‘Bhasha Protijogita’. Md. they are planning to redesign their Bangla label in RC cola bottles.3 Objective 3: Increase visibility of RC cola in retail outlets within 2009. By doing this they believe that they can create an emotional bond with the consumers. They believe in blending business with local cultures to get emotionally attached with the local consumers and customers. which is mainly arranged by Prothom Alo. Will also start advertising the pocket RC in newspaper very soon. To support these activities. (Interviewee. They are planning to focus more on the use of Bangla and highlighting it more on the labels. They are also planning to expand their business to Middle East countries like Saudi Arabia and especially cities like Dubai. 17 . which they have introduced few months ago.

The marketing manager (Md. cloudy lemon and orange. Make some sort of easy condition deal with the retailers to keep their products in a suitable and visible place in the shop. brand 18 . clear. Strategy to accomplish the objective: A few large firms dominate the market for soft drinks. Use of PET bottles instead of glass-made ones. However. which is the second largest local soft drink company. Mojo are the major producers of soft drinks in Bangladesh. The market. To increase their visibility they are planning to do the following thingsProvide RC cola racks to the retailers which will be designed in flashy colors. Virgin. the company is claiming that at present RC has 50% of the Cola market share.Strategy to accomplish the objective: RC Cola is a regular product and we know that most of the times people make decisions about buying these products inside the store. They believe this will attract the attention of window-shoppers. though RC is a well-known brand. wider distribution network and competitive pricing strategy have boosted the market share of RC Cola of Partex Beverage. it hasn’t focused on these types of advertising or promotional actions. 25%. (Interviewee. Nahid Yousuf) 5. So they are focusing very seriously in this matter. Uro Cola and Pran Cola. RC Cola. Coca-cola. 20% and 10% respectively. Md. RC Cola logo and slogans. The country's soft drinks market started to pick up since 2003 and hit a record high of over Tk 1000 crore in 2005-06 fiscal year. comprising categories such as cola. Akhtaruzzaman) of RC. RC is also the market leader in rural areas commanding around 45 per cent share. Pepsi. Virgin. For this reason it is very important for a regular product brand like RC to plan some in-store advertising to attract the consumers and make them buy the product.4 Objective 4: Increase 30% growth of RC Cola by 2009. reached about Tk 900 crore in the fiscal year 200708 from Tk 800 crore a year ago. They have also found from research that their competitor like Pepsi has these kinds of strategies and their visibility in various retail outlets is much more than RC cola. Up till now. The market shares of Coca Cola. They will also provide RC cola stickers and posters to display in the outlets. not before coming to the store. Pepsi and RC Cola are 40%.

Nahid Yousuf. The Daily star. claimed that his company secured about 15 % growth in sales in January-June period of 2008. Mondal and Ahmad. Government Policy and Competitive Business Environment in Bangladesh. (New Age. Md. They believe that they can achieve this objective by implementing the following plansIncreasing support from management in terms of advertising budget and other technical supports. Introducing new pack sizes. RC 19 . Sohel Parvez) 5. They believe that no matter how big a firm is and how popular a brand is. to continuously attract and retain customers. Zahedul Islam. RC believes that it still has tremendous potential in terms of growth and opportunity to increase the market share and wants to increase the growth by 30% within this year.5 Objective 5: Continuously reinforce the brand image in consumers mind and increase it more within 2009. coupons and premiums to their consumers through the retailers. They believe package is gradually becoming a very important part of communication tool. Introducing new products in the market such as fruit juices.marketer Partex Beverage. So. They are going to offer sales discount. Interviewee. RC Cola does continuous promotions in regular basis. whose RC lemon leads the market in cloudy lemon segment. Strategy to accomplish the objective: RC Cola believes in continuous focus and actions. So. the popularity and attractiveness may fade out with time. A major reason behind this is their management’s reluctance in doing “Image based” advertising. They also accept that they are lacking behind than other big competitors like Pepsi (Transcom Beverage) and Mojo (Akij Beverage) in creating a brand image in customers mind.

The medias they use are. RC cola’s marketing department takes this as a major drawback of their company. In the changing world environment. They almost use 10 crore Tk yearly on TV advertising.1 Advantages of Television: 20 . They have a large number of TV ads among which some are huge hits. NTV. etc. Newspaper. At the initial stage the promotional campaigns of RC cola were very successful in attracting new customers.0 Media Mix: Media mix is the combination of all the medias used by a firm to promote a product or service. the characteristics of the product or service. (Interviewee. A media portfolio and advantages and disadvantages of the medias they use are given below: 6. Nahid Yousuf) 6. They broadcast their ads mainly in private channels such as Channel I.1. However TV does have certain limitations. So in 2009.Television. Radio. And with the help of strategic marketing efforts it succeeded in acquiring significant share of Beverage market in Bangladesh. ATN etc. The objectives sought. motion and color presents the advertiser with the opportunity to develop the most creative and imaginative appeals of any medium. they are planning to make some actions in changing this traditional approach and switch to “Image Based” advertising to increase their brand image in the local market. the size of the budget. In the course of action they are planning to do the following thingsIncrease management support Sponsor and take part in various social and public service activities Sponsor and organize various youth based concerts and various cultural activities more than before. Its ability to combine visual images. Md.1 Television Television is the ideal advertising medium. Partex promotes RC cola heavily. an individual preferences are some factors that determine what combination of media will be used. Most of its promotional campaigns are based on TV ads. Billboard. Partex mainly uses TV as the primary media. 6.cola’s management mainly relies on traditional “Product based” advertising. sound. Partex uses variety of media and media vehicles to promote RC Cola.

geographic area or time and cable TV. reducing its cost effectiveness.Television advertising makes it possible to reach large audiences nearly everyone. It includes newspapers and magazines. Partex generally don’t uses magazine to advertise RC Cola. it is an expensive medium in which to advertise.1 Advantages of Print Media 21 . The high cost of TV stems not only from the expense of buying airtime but also from the costs of producing a quality commercial. The interaction of sight and sound offers tremendous creative flexibility and makes possible lively and attractive representation of products and services. selectivity and flexibility. but in case of campaigns they sometimes use it. The traditional role of newspapers has been to deliver prompt.2. income. Most people do so one a regular basis. But advertisers who are seeking a very specific. 6. often small. TV also has other advantages like creativity and attention. detailed coverage of news as well as to supply other information and features that appeal to readers. But most newspapers rely heavily on earnings from advertising to run smoothly. 6. etc. etc. clutter.Creativity and Impact: . 6. or educational level. sex.2 Disadvantages of Television: High cost association: . Marketers rely on TV advertising a lot because most of them believe that TV advertising has the best coverage at a reasonable cost. Other disadvantages of TV include fleeting message. Newspaper generally includes the daily publications.Perhaps the greatest advantage of TV is the opportunity it provides for presenting the advertising message. Partex spends a lot on Print Media advertising.1. target audience find the coverage of TV often extends beyond their market or in a word wastage occurs. regardless of age.Some selectivity is available in the television through variations in program content. problems. Lack of selectivity: . Coverage and cost effectiveness: .Despite the efficiency of TV in reaching large audiences. watches at least some TV.2 Print Media Print Media is also a very useful media to use in promotional purpose. It mainly uses Prothom Alo and Jugantor to promote RC Cola.

the cost that is incurred to advertise one product in a reputed print media is much high. 6.One of the main strengths of radio as an advertising medium is its low cost. It makes them a truly mass medium and provides advertisers with an excellent opportunity for reaching all segments of the populations with their message. etc. 22 . 6. placement of ads. While the creative options are limited. Dominated by other mediums.The daily newspapers offer the flexibility of changing the ad contents. The same ads also don’t repeat frequently. decisions on daily basis.2.A potential advantage of radio that is often overlooked is that it encourages listeners to use their imagination when processing a commercial message. many advertisers take advantage of the absence of a visual element to let consumers create their own picture of what is happening in a radio message.3. radio is used by Partex exclusively at the time of introducing a campaign. Like magazines. Partex uses private radio stations such as Radio Today and Radio Foorti to broadcast its ads.One of the primary advantages of print media is the high degree of market coverage or penetration that they offer an advertiser. radio has evolved into a primary local advertising medium.In comparison with the reach and frequency measure.High coverage: .Daily newspapers and magazines have limited reach and frequency because people generally keep a copy of these with them for short period.1 Advantages of Radio Cost and Efficiency: . Cost: . They require only a script of the commercial to be read by the radio announcer or a copy of a pre-recorded message that can be broadcasted by the station. Time flexibility: . And very few people focus on the advertisements in a publication rather than the main items. Radio has also become a medium characterized by highly specialized programming appeal to very narrow segments of population. Mental Imagery: . 6. Radio commercials are very inexpensive to produce.2 Disadvantages of Print Media Limited reach and frequency: .3 Radio Radio has been called the Rodney Dangerfield of media because it gets no respect from many advertisers.

almost anywhere that laws permit. Limited message capabilities: . or on mobile billboards. Among these 18 billboards. so messages are limited to a few words and/ or an illustration. 6. near stores. The percentage of the market turned to any particular station is usually very small.A major drawback of radio is the absence of a visual image. The radio advertisers cannot show the product.6. 6.4.1 Advantages of Billboard Wide Coverage of local markets: .4 Billboard Billboards are types of outdoor advertising. a broad base of exposure is possible in local markets. 6.4. exposure time is short.5 Others 23 . 6. or even national markets may be covered.With proper placement.Another problem with radio is the high level of audience fragmentation due to the large number of stations. Fragmentation: .While it is possible to reach very specific audience.2 Disadvantages of radio Creative limitations: .2 Disadvantages of Billboards Waste Coverage: . Geographic flexibility: . Partex has in total 18 billboards in the country. demonstrate it or use any type of visual appeal or information. 3 are in Chittagong and rests are placed in various strategic points of Dhaka City like beside Mohakhali Flyover. Local.Because of the speed with which most people pass the billboard ads.3. regional. Lengthy appeals are not likely to be effective. in many cases the purchase of outdoor results in a high degree of waste coverage. with both day and night presence. It is not likely that everyone driving past a billboard is part of the target market.Billboards can be placed along highways.

RAMADAN. Transit ads: . Interviwee.RC Cola sponsors many sport events especially cricket matches to increase its brand image and promote RC cola through the process. Percentage of sales approach and Arbitrary allocation approach.Other than these major medias. Sponsoring TV Show: RC Cola also sponsors various TV shows like RC Travel On. (Advertising and promotion. They areSponsorship of sport events: . PAHELA BAISHAKH. NEW YEAR. They broadcast these ads in TV. Under the top-down approach they are again following two processes. Nahid Yousuf) 7.At the time of Ramadan. 24 .Sometimes Partex uses transit ads like ads on the outside walls of vehicles to promote RC Cola. From this 10% total budget. RC cola distributes Iftar schedule to its consumers in collaboration with print media partners. George & Michael. The total amount of money to be spent on promotional campaigns of RC cola depends on the previous year’s annual sales. 6% is spent on consumers (general people). Md. PUJA. 6.6 Special promotional campaigns: At the time of various occasions like EID.down approach in determining the annual budget of RC Cola. newspapers and radio.0 BUDGET DETERMINATION Partex is mainly following Top. Again whether this allocated budget will be spent or not depends on the feeling of top management. Iftar schedule: . etc. Partex makes special ads to attract consumers. Partex allocates 10% of previous year’s sales on all kinds of marketing activities. partex uses some other medias too to promote RC Cola. and 4% is allocated for customers (business customers such as retailers).

about Tk 18 crore was budgeted for all marketing activities and of that Tk 12 crore was spent on advertising purpose. The allocation of the total amount spent on advertising in various medias is shown below: Medias Television Print Media Radio Billboard Others Total Budget (2008) 10 crore 70 lacs 20 lacs 30 lacs 80 lacs 12 crore Percentage (approximate) 82% 6% 2% 3% 7% 100% (Advertising and promotion.Last year. George & Michael. Nahid Yousuf) 25 . Interviwee. Md.

RC cola now stands as a symbol of freedom of choice. Such acceptance has made the brand a market leader within a very short time. so they should come up with more new ways to keep the sufficient CO2 inside the bottles.1 Recommendation The Partex group management uses the rational approach for their product’s promotion. So. 26 . To the target customers. As RC cola losses CO2 after opening the bottles and losses the essence of cola taste. Subsequently it has been highly accepted and appreciated by the consumers of the country.8. which is basically emphasizing the product attributes in the ads rather than emotional approach. to be more effective in the ad campaign they should use emotional approach in their ads to attract more customers. 8.0 EVALUATING AND CONTROLLING RC cola was launched with a vision to deliver the consumers the finest quality of product. Ultimately it will give the customer more taste to have a RC cola.

RC can also include some more beverages in their product line such as RC juice items. We all know that Coca cola and Pepsi has engaged themselves in some controversial issues in recent years like. RC as a local product can create new market by taking the advantage of this kind of issues.RC should make modifications in its budget determination process because a top down approach is a weak form of determining budget. As a leading company it should adopt strong and acceptable forms of budget determination. these companies are financing to Israel soldiers with their profit earns. This will attract the children and health conscious people much more and create a new market for their new product with special items like juice. 27 .

Sign up to vote on this title
UsefulNot useful