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Current market scenario of Beverage Products in Dhaka City

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Posted by: anonymous, on 8/4/2008 , in category "Business Administration"
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Location: Dhaka, Dhaka, Bangladesh
Abstract: Royal Crown (RC) Cola made by the Royal Crown Cola Company is the third most
popular Cola in America. It is a tasty, refreshing soft drink. In 1905, it was first designed merely
to meet the needs of grocery customers in a limited graphical territory. A young man named
Claude Hatcher who was a good chemist, developed Royal Crown Ginger Ale in 1906. In 1923,
the firm came up with a fruit flavored drink name Melo. A year later, the Brand name was
changed to Neli. In 1932, Neli Chemist Rufus Kamm concentrated with a new Cola drink and his
concentration resulted in Royal Crown Cola. It was introduced in 1934. In 1969, the company
name was changed to Royal Crown Cola. In early 70’s, RC Company decided to enter into the
global market and at that time, a number of experienced soft drink people assembled to manage
and direct the company’s international efforts.

ACKNOWLEDGEMENT
I would like to take the opportunity to express my sincere thanks to Mr. Aktaruzzaman, the

Brand officer of RC, for his ever-remembering nice and friendly co-operation, which proved

helpful for me. Without his help, it would be quite impossible to complete this report.

I am grateful to Mr. Monsur Ahamed G M, marketing of Partex Group for giving me this
opportunity to conveying this report and he has also gave me a very clear concept about how to
work on this report.

I would like to thank those retailers, shopkeepers and traders who gave me their valuable time
for my questionnaire survey.

I would like to give thanks to those people who helped me by answering the consumer survey
questions. The success of this report also goes to them.

Finally, I relay my thankfulness to Dr. Habibur Rahman, my Internship Advisor at North South

University for his kind and friendly co-operation, which really helped me a lot in completing and
submitting this report. Without his support, it would not be possible for me to finish this report in

time. I will remain ever grateful to him.

EXECUTIVE SUMMERY
Royal Crown (RC) Cola made by the Royal Crown Cola Company is the third most popular Cola

in America. It is a tasty, refreshing soft drink. In 1905, it was first designed merely to meet the

needs of grocery customers in a limited graphical territory. A young man named Claude Hatcher

who was a good chemist, developed Royal Crown Ginger Ale in 1906. In 1923, the firm came up

with a fruit flavored drink name Melo. A year later, the Brand name was changed to Neli. In

1932, Neli Chemist Rufus Kamm concentrated with a new Cola drink and his concentration

resulted in Royal Crown Cola. It was introduced in 1934. In 1969, the company name was

changed to Royal Crown Cola. In early 70’s, RC Company decided to enter into the global

market and at that time, a number of experienced soft drink people assembled to manage and

direct the company’s international efforts.

At first, in 1995 RC cola introduced a premium draft Cola. It introduced RC products in

Bangladesh in 1997 adding Royal Crown Lemon (first of its kind) with three other refreshing

flavors of sweet & seriated RC Cola, the fresh orange flavor of Royal Orange, the tangy lime

taste of Upper 10.

As RC Cola is a newly franchise company it’s officials want to know what is the current market

scenario of other soft drinks in Dhaka City as it is the Capital of the country. If they can hold a

large market share here, they will be able to make a huge amount of profit. As Coke and Pepsi

has a very strong market share in Beverage business, RC’s officials must know what is their
present market situation or how they can increase their sales and make more profit. Therefore, in

preparing this report all the attention has been given to the competitive situation of the Beverage

Products.

This report also contains information of consumers, retailers, little about distribute and the vital

part is company. The report indicates that the attitudes of consumers towards soft drinks had

changed. Once up on a time the consumers think only Coke and Pepsi about the soft drinks

industry. Now a day the scenario has quite changed. In the present market condition people has

the chance to choose their soft drinks from the lot verity of company and flavors. They are

simply using the opportunity. The result has shown that majority of the consumers like Cola

flavor. Children and women liked Orange and Mango flavor. RC’s lemon is in first position in

the lemon flavor. Their success in this flavor is very high. 250 ml can and 300 ml glass bottle is

very popular in the market. Food graded PET is very much-excepted package for the consumers,

because it gives more and no hazard of deposit.

Retailers like to sell those companies product who gives them more advantage and profit. They

do not like 1000ml-glass bottle for the deposit system and some times, it could be a reason to

break the relationship between retailer and consumer.

According to the information of beverage companies, this business becomes very competitive.

New companies are trying too hard to gain the market share. Few years’ back Sun-Crest was a

very small company, but now they become one of the vital competitors in the industry. PRAN

emphasized mainly on the mango, their quality and bottle size were not so good and attractive
but they offer four bottle free with every crates of 250 ml glass bottle and gained a good market

share.

RC is trying too hard to cover as much as possible to consumers and territory. They have almost

all pack size in the market. They are pioneer in 1.5-liter pet bottle, which started giving more.

R C’s main strength is cloudy lemon and 250 ml can is very popular pack size. They can

combine these two issues. They wrought to produce more Cloudy can and make it popular by

huge advertisement.

Message
Through advertisement obviously the business wants to communicate something to the target
audience, this is basically the message the company wants to send out. The message usually
consists of elements that would benefit the audience, to get enough attention. The messages are
formed in such a way that it is meaningful to the customers, they are believable or else it would
be regarded as sham. The main decision that has to be taken here is that, how these messages will
be executed.
Messages can be executed in the following ways:
1. Slice of life – This shows the use of a particular product in a regular part of life. It shows
normal people in the usual setting of life. RC has not really used this way of execution,
because the soft drinks are not basic necessities of life, and not always consumed in the
regular course of life. This idea wouldn’t really fit the product being advertised
2. Lifestyle – This basically shows how a product fits into the lives of people who have a
particular lifestyle, and how people who lead such lifestyles need the product. RC to
some extent has kept this style of execution in mind while designing its advertisements,
because it associated its products with fun and fun loving people. Majority of the
consumers of soft drinks are the younger generation people who have or would like to
have a fun filled life.
3. Fantasy – This style relates the products to some fantasy of the potential customers. This
would be a very desirable scenario where the product has some part to play to make the
situation so. RC has used this style in one of its TV advertisements, when the parents of a
girl consents to her marriage because the man she wants to marry drinks RC, this whole
scenario was being fantasized by the person who the girl wants to get married to.
4. Mood or image – This style tries to fit the product in a certain moods of people or build
a certain image around the product such as beauty, love, serenity etc. In the latest RC TV
advertisement this style has been very effectively used, where it shows that a girl is upset
with her boyfriend, and he gets her RC drinks, and the girl forgets everything and
becomes friendly with him again. This concept has been very catchy and well talked off
among people.
5. Musical – People shown in the advertisements are singing about the particular product.
The RC advertisement mentioned above is a good example of this style of message
execution. In it, the boy and the girl are singing about RC, and the word “RC” is
constantly being repeated in the song. Automatically the people remember the song, and
word “RC” along with it.
6. Personality symbol – message execution of this style creates a personality that
represents the product. This is the case when Fido Dido was created to represent 7up. Rc
however didn’t go into this sort of thing.
7. Technical expertise – This tries to show the expertise in making the product, which
would assure the customers that they are buying quality products, which is a result of this
expertise.
8. Scientific evidence – To assure the potential customer for quality, the business tries to
present different scientific evidences to prove that the superiority of their products.

PART – 1 INTRODUCTION

1.1 Origin of the Report
This project report was assigned as the requirement of BBA Internship Program of North South

University, Bangladesh. The Partex Beverage, which is a concern of Partex Group, assigned it.

The subject of this report is “Current market scenario of Beverage Products in Dhaka City.”

1.2 Background of the Problem
RC is the third biggest soft drinks in United States. It has come to our country in 1997.

Therefore, it is a newly franchise company. Its competitive brands are mainly Coke and Pepsi,

which have large market share in beverage sector. If RC wants to compete with Coke and Pepsi,

they must have information about the two companies, distribution channel, price margin

maintains by them and the promotional activities given to traders etc. In order to know the

current market scenario of these companies they must have to do a market research. Otherwise,

they cannot compete with Coke and Pepsi. For this reason, the internship report was assigned to

analyze the current market scenario of beverage products in Dhaka City.

1.3 Objective of the Study
ü The “Broad Objective” is to know the Beverage Products Current market situation in Dhaka

City.

ü The “Specific Objective” is to –

Þ Obtain the general information like selling system, price margin, credit facilities, cooler position

system of beverage companies.

Þ Analyze the competitive situation of beverage products in the areas of promotional activities,

brand preference etc.
Þ Identify and analyze the taste preference of consumers and their liking and disliking towards the

soft drinks.

Þ Analyze the media wise advertisement ratio of beverage industries.

Þ Identify out the weaknesses of RC, make recommendations on how they can improve their sales,

and make more profit.

1.4 Scope of the Study
This study focuses on the following issues:

Þ Current market scenario of Beverage Products in Dhaka City.

Þ Competitive situations of beverage products covering promotional activities, brand preference of

soft drinks.

Þ Consumer choice about taste and their liking, disliking about soft drinks.

Þ Media wise advertisement ratio analysis covering TV and Newspaper.

Þ Some proposals and recommendations for the brand improvement of RC.

1.5 Methodology of the Study

This section of the report contains another three more topics. They are described as follows:

1.5.1 Research Design
In order to conduct this study two kinds of questionnaire were designed. They were-

ü Questionnaires for Retailers.
ü Questionnaires for Consumers.

ü Questionnaires for Company

In this report, for gathering information, secondary sources such as the catalogues of the

beverage companies have been used and primary data were collected by interviewing retailers,

distributors, and consumers and by interviewing some officials of beverage companies.

1.5.2 Sampling Techniques
Þ For market survey in Dhaka City the operation area were divided into 10 parts. These 10 parts of

the city represented 10 major sites of Dhaka City. From the 10 sites, survey was done in 100

confectioneries, including shops, restaurants, hotels and some other places where beverage

products had found. Therefore, the sample size for market share was 100 and it was chosen

randomly.

Þ For consumer survey, the sample size was 50. Every person answered the questions and filled the

questionnaire by their own.

1.5.3 Data Collection Method
Data collection method was divided into two sources:

1.5.3.1 Data Collection from Primary Sources
The primary data were collected based on the answers of the retailers, shopkeepers and

distributors in the market survey part.
The primary data were also collected based on the answers of consumers in consumer survey

part.

1.5.3.2 Data Collection from Secondary Sources
Reviewing newspapers, catalogues of beverage companies, and some other relevant publication

documents, secondary data were collected.

1.6 Limitations of the Study
In preparing of the report the following problems has been faced by the researcher-

Þ One of the major limitations of the study was time. The time allocation for the study was

inadequate. If more time were given the sample size for the consumer and market survey could

be increased some more and the report could be made much more comprehensive.

Þ Another major problem was the confidential matters of the beverage companies. The researcher,

while interviewing the officials of beverage companies could not collect information considered

as confidential to concerned companies.

Þ Secondary sources of data relating to the beverage companies in Bangladesh are very limited.
PART-2 THE HISTORICAL DEVELOPMENT OF RC

BEVERAGE

2.1 The company profile of Coca Cola
In 1893, “Coca-Cola” was registered officially in the U.S. Patent and Trademark Office. Since

people kept asking for “Coke,” the Company relented to popular demand. In 1941, the trademark

“Coke” received equal prominence in advertising with “Coca-Cola,” and in 1945, “Coke” was

registered as a trademark.

In 1955, the Coca-Cola Company marketed its first soft other than Coca-Cola: an orange-

flavored soft drink introduced in Naples, Italy. The trademark, based on the word “fantasy” was
the result of a bottling plant employee contest. Fanta is now the number - five soft drink

worldwide.

The idea for the name of the lemon-lime soft drink, sprite, came from early advertising. During

the 1940s, an elf with silver hair and a big smile (and most often wearing a bottle cap for a hat!)

was used in advertising for Coca-Cola. This character, known affectionately as the “Sprite Boy,”

urged consumers to buy more of the product.

In the late 1950s, the company developed a circus-flavored drink. The short, sharp and

memorable sound of “Sprite” made it an ideal name for the new product. Since another company

had been using the name since 1955, the company had to purchase and register “Sprite” as its

property. In 1961, Sprite made its U.S. debut. The Coca-Cola Company acquired minute Maid

another popular in 1960. In 1985, the name was extended to a new U.S. soft drink, Minute Maid

orange.

The Coca-Cola Company is named as Tabani Beverage Company Limited. It is the No. 1 soft

drinks now at in Bangladesh as well as all over the world. It is now doing almost a monopoly

business in the beverage sector.

It has three varieties. They are:

i. Coca-Cola – Cola flavor

ii. Sprite - Clear flavor

iii. Fanta – Orange flavor
2.2 The company profile of Pepsi
Pepsi is one of the oldest brands in Bangladesh. Pepsi was first arrived in Dhaka in 1976. Late

Mia Amanullah, Former Executive Director of Pepsi Cola Co. Bangladesh, introduced the brand.

At first, Pepsi and 7UP were separate companies. However, in 1989, the companies merged and

named under Pepsi Company Ltd. Bangladesh. Its varieties are-

ü Pepsi – Cola flavor

ü 7UP – Clear flavor

ü Mirinda – Orange flavor

Pepsi Cola Company Ltd. is incorporated and continuing its operation in Bangladesh as a private

company. It is named as Bangladesh Beverage Company Limited.

The company is currently operating four plants located in Dhaka, Chittagong, Bogra and Jessor.

Pepsi now has six different flavors including its new arrivals, ‘Slice’ (Mango flavor) and

‘Mirinda lime’ (Orange flavor).

The Pepsi Cola story itself begins with a drugstore in New Bern, North Carolina, and a

pharmacist named Caleb Bradham. Bradham’s aim was to create a fountain drink that was both

delicious and healthful in aiding digestion and boosting energy. It would be free of the impurities

found in many bottled health tonics, and it would contain none of the stronger narcotics often-

added to popular fountain drinks.

By 1902, he succeeded in doing so and Pepsi was invented. The demand increased so

dramatically it dawned on Bradham that Pepsi-Cola was something special. On December 24,
1902, he filed incorporation papers with the state of North Carolina; in these, he indicated his

plans for corporate branches in Virginia, Maryland, Pennsylvania and New York.

2.3 The company profile of Pran
AMCL market its product under the brand name PRAN that stands for Program for Rural

Advancement Nationally. The Agriculture Marketing Co. Ltd. (AMCL) was incorporated in

Bangladesh on 15th May 1985 as private limited company under the companies Act 1913 and

subsequently on 2nd June 1993 the co. was converted into public limited co. the shares of the co.

were listed in Dhaka and Chittagong stock exchanges.

The company is financed by industrial Promotion and Development Co. of Bangladesh Ltd.,

ANZ Grindlays Bank, Dutch Bangla Bank and by its stakeholders.

Initially PRAN had jam, Jelly and Pickle in its product line. In January, 1995 production of

orange juice and in June production of PRAN mango bottled juice started. PRAN now operates

by having eight zones throughout the country. The zones are Dhaka Metro, Adjacent Dhaka,

Comilla, Chittagong, Sylhet, Khulna, Barisal and Rajshahi. The company also has three more

sub zones.

The company’s business activities are farming, trading, processing of fruits, vegetables and other

agro products. Unit wise activities of the company are shown below.

Unit-1 Processing of agro products

Unit -2 Farming
Unit- 3 Bottling, tetra packaging of juice and mineral water.

Unit- 4 Trading

2.4 The company profile of Virgin

Virgin-the third most recognized brand in Britain is involved in planes, trains, finance, soft

drinks, music, mobile phones, cars, wines, publishing, bridal, wear, etc. they crated over 200

companies world wide, employing over 25,000 people. Their total revenues around the world in

19999 exceeded U S $5 billion. They claim that their brand Virgin is now becoming the first

global brand name of the 21st century.

They said their companies are part of a family rather than a hierarchy. They are empowered to

run their own affairs, yet other companies help one another, and solutions to problems come

from all kinds of sources. In a sense they are community, with shared ideas, values, interests and

goals. And Virgin cola is just a member of that family.

2.5 The company profile of Suncrest
National Beverage Industry Ltd., a unit of Sunman Group, first bought Bangladesh Suncrest.

The head office of the company is in Chittagong and in 1997, a branch office in Dhaka was

started. The company has its factory located at Hemayatpur, Savar. Initially the company used to

produce eight flavors, but it is now continuing with five flavors. Suncrest was the company to

introduce a 1.5 litter plastic bottle, which turned out to be a profitable step for them. It is called

the Suncrest Mega. Its varieties are:

ü Suncrest Cola
ü Suncrest Orange

ü Kickapoo Joy Juice

ü Bubble Up (Lime)

2.6 The story of RC (Royal Crown)

Royal Crown (RC) Cola made by the Royal Crown Cola Company is the third most popular Cola

in America. It is tasty, refreshing soft drink. In 1905, it was at first designed merely to meet the

needs of grocery customers in a limited graphical territory.

A young man named Claude Hatcher who was a good chemist, developed Royal Crown Ginger

Ale in 1906. Royal Crown Ginger Ale was a product of Hatcher Grocery Company of Columbus.

Later around 1910, it was renamed and was called Chero-Cola rich in cherry flavor.

In 1923, the firm came up with a fruit flavored drink name Melo. A year later the brand name

was changed to Neli. Neli was a quick seller and by 1928 a new company was formed called

Neli Inc. and Chero-Cola was then became a product of Neli Inc. in 1932 Neli Chemist Rufus

Kamm concentrated with a new cola drink and his concentration result was royal crown cola. It

was introduced in 1934. In 1959, the company name changed to Royal Crown Cola. Royal

Crown Cola company’s technicians made what industry leaders term “ The most amazing

break through soft drink technological history.” Royal Crown Cola Company was the first

soft drink company to introduce a sugar free product in 1962 and it was the first company to

introduce a salt/sodium free cola in 1980.
The Royal Crown Cola Company made a late start on the international scene and the reason for

this was simple. Its management wanted to marshal its resources and concentrate its efforts on

the biggest growth market in the world at the time in United States.

In early 70’s, RC Co. decided to go for global reach and at that time, a number of experienced

soft drink people assembled to manage and direct the company’s international efforts. Since

then, RC Cola has been able to establish a viable base in the world market and it is currently sold

in 63 countries through a network of 78 franchise bottling plants.

At first, in 1995 RC Cola introduced a premium draft cola. It introduced RC Products in

Bangladesh market in 1997 adding Royal Crown Lemon (first of its kind) with three other

refreshing flavors of sweet & seriated RC Cola, the fresh orange flavor of Royal Orange, the

tangy lime taste of Upper 10.

Partex Beverage Ltd. was incorporated in Bangladesh in 1997 as private limited company under

the companies Act, 1913. It is a member of Partex Group of Industries.

2.6.1 Mission

“To provide value at an economic cost, progress in diversity, and continue to contribute to the growth of

industrialization in Bangladesh being the market challenger”.

2.6.2Objective of RC
Partex beverage industry is technically well equipped and quality control, at all stage, is of

highest order. The commitment of each department has ensured a management system of the

highest standards. From the initial rigorous quality taste of raw material to final inspection, the

beverages are assured of the highest quality. The product is an enduring testimony to the unique

excellence of the workforce.

RC’s strength lies in the fact that it is the best in taste test against the order two colas. RC takes

an aggressive approach when planning its marketing strategy. Traditional marketing packages,

prices, promotion and distribution systems do not bind it, and by the same token, it does not

discard traditional marketing patterns if they present the means or opportunity of expressing a

positive point of different.

RC management approaches each situation with an open mind instead of imposing marketing

plans and programs on its franchisees. They recognize the differences as well as similarities in

each market and try to do be understanding and responsive to each bottle’s needs.

Royal Crown Cola Company is proud of its products and of the bother’s that distribute them.

Together they maintain the high standards that were established by the company’s pioneers.

Their goal is always to provide the best possible products at the reasonable prices, promptly and

courteously to customers everywhere.

2.6.3 Beverage Organogram (Management Structure)

Managing
Director
Director Marketing

Asst. Sales Officer
Sales Representative/ Merchandiser

Marketing Manager
Controller, Sales
Brand Officer
Bottle Manager
Sales Manager
Asst. Sales Manager
Sales Officer
2.6.4 Management Structure Analysis
The Number 1 person of RC Cola Is Managing Director. After him the post of Director

Marketing does come. He has two supporting executives to help him in works. One of them is

Marketing Manager and another one is Controller, sales. Marketing Manager has an executive

officer named Brand Officer. Controller, Sales Manager has also two executive officer to help

him. They are Bottle Manager and Sales Manager. Sales Manager has his Deputy, Asst. Sales

Manager. Asst. Sales Manager has a subordinate, Sales Officer and Sales Officer has a Deputy,

Asst. Sales Officer. Another two people work under him. They are Sales Representative and

merchandiser.

2.6.5 Management Function of RC
RC Cola’s Management System Functions in four ways. They are as follows-

2.6.5.1 Planning:
Partex Beverage (RC) has top down planning approach. The top-level Management like

Managing Director and Director Marketing has authority to decide how they will go through and

achieve their goal. If the Brand Officer or Sales Manager gives some idea or plan to marketing

Manager or Controller Sales Manager the top level Management always encourages their ideas

and gives them the opportunity to carry with their plans and ideas if the Management thinks that

the idea will turn into profit. The top-level management sometimes asked the Marketing

Manager or Brand Officer to make some innovative plan for the company. If they become

successful to innovative something new the top level Management have a look on it and then

they decide whether to go through it or not.

2.6.5.2 Organizing
Partex Beverage is a concern of Partex Group of Industries. It is franchised from American

Royal Crown Company. RC’s industry is in Rajendropur, Gazipur. It has sales and corporate

officer in Motijheel C/A in Ispahani Building. RC’s head and only office is situated in Sena

Kalyan Bhaban (16th floor).

2.6.5.3 Staffing
RC recruits staffs according to their qualifications and the nature of their job. For recruitment,

the top-level Management always gives more priority on oral tests (viva-voice).
2.6.5.4 Directing & Controlling
RC’s all employees have to maintain the office time of Partex Group as it is a concern of Partex

Beverage and the office time is from morning 9 a.m. to evening 5 p.m. Asst. Sales Officer and

Sales Representative has to stay outside of the office for their working purpose. In office, the

sitting arrangements are created in such a way that if the subordinates face any problem they can

easily ask their superiors. Although RC has a particular office time, all the employees have so

much responsibility that if they have any major work in their hand they leave the office

completing the work.

PART- 3 CURRENT MARKET SCENARIO OF BEVERAGE

PRODUCTS IN DHAKA CITY

In my project part I can analyze my problem by using marketing channel. We know there are

four channels in marketing. Theses are as follows:

q Distribution channel

q Price channel

q Product channel

q Promotion channel

3.1 Distribution channel

3.1.1 Distribution System
The retailers informed that every company follows the same distribution channel process for soft

drinks distribution. The distribution channel followed by the beverage companies is:

Company Distributors Retailers Consumers.

3.1.2 Selling System of Beverage Products

The total sample size of retailers informed that they received the soft drinks bottle from the

beverage companies van. e.g. Coca-Cola company serves Coke, Fanta, Sprite and R C company

serves R C lemon, R C cola etc. but most of the retailers could not inform whether they received

the drinks bottle from the distributors or directly through from the company people, because they

were not interested about the matter.

3.2 Price Channel

3.2.1 Price Margin

For Coke, the distributors make profit of 14 TK crate and 0.58 TK bottle. The retailers make

profit of 50 TK crate and 2.08TK bottle. (Table-3.1.2) The distributors make profit of 15 TK

crate and 0.63 TK. bottle. The retailers make the same profit like Coke of 50 TK crate and 2.08

TK bottle. Here Pepsi distributors gain 0.05 TK bottle and 1.2 TK crate more then the

distributors of Coke. (Table-3.1.2)

R C and Virgin offer more profit advantage to distributors and retailers. The distributors make

profit of 16 TK crate and 0.67 TK bottle, which is more than Pepsi by 0.04 TK bottle (0.96) and

more then 0.08 TK bottle (1.92 TK crate). The retailers make profit of 54 TK crate and 2.25 TK

bottle, which is bigger than Coke and Pepsi (4 TK bottle and 0.17 TK crate). The R C retailers
gain here the highest. For Suncrest, the distributors make the highest profit of 17 TK crate (.07

TK bottle). The retailers make profit of 52 TK crate and 2.16 TK bottle which is lower that the

retailers of R C and Virgin gain. Therefore, all the price margin of PRAN is same as Pepsi.

3.2.2 Deposit Against Crates & Bottle

For Coca-Cola, the retailers pay 30 TK crate (350ml) and 150 TK crate (1000ml). the deposit

against bottles is 120 TK.crate. It means each bottle deposit is 5 TK. (5*24=120). The retailers

have to pay 240 TK. deposit money for 1000ml crate. Each crate contains 12 bottles and the

calculation stands like this for per crate-12*20=240 TK. bottle for 1000ml drinks of Coke. For

Pepsi, the deposit of 250 ml and 1000 ml bottle remain the same like Coke. As the Sun crest and

PRAN has only 250 ml bottles, their deposit also remain the same like Coke. On the other hand,

virgin has no 250 ml bottles; they do produce any kind of bottle beverage. So their deposit

system for 1000ml is like R C cola.

R C beverage offers incentive for the retailers. R C offers 300 ml bottle in 120 TK bottle and

Coke and Pepsi charges the same amount but they give the retailers 250 ml bottle.

R C’s crate deposit remains same like Coke and Pepsi. R C 1000 ml crate has two varieties. One

of them contains 6 bottles of 1000ml and another one contains 12 bottle of 1000 ml. the retailers

pay deposit of only 50 tk. for the 6 bottles container and 100 TK for the 12 bottle container. For

R C, retailers have to deposit 140 TK. less/ crate.

3.2.3 Credit Facilities
The retailers informed that none of the beverage producers offer them any credit facility. It

means the beverage companies never proposed credit facilities to them.

3.2.4 Cost of Damaged Bottles

65 % of the retailers informed that they did not have to pay money for the broken or damaged

bottle as they had already bought the bottles from the companies. 35% of them informed they

paid five TK. For each broken or burst bottles. The consumers have to pay the same amount of

money for each broken or damaged bottle, when they cause the damage

3.3 Product Channel

3.3.1 Sales Profile & Some Important Information about Different Companies

Coke:Coke has two different operations in Bangladesh. One part controlled by Muktijuddah

Kollan Trust, and another one is controlling by Tabani beverage. Government owns Muktijuddah

Kollan trust and Tabani beverage is private. Muktijuddah Kollan Trust covers the Dhaka and

Rajshahi region. On the other hand, Tabani covers other part of Bangladesh.

The yearly sale of Coca-Cola in Bangladesh is 98, 00,000 crates. They have Cola, Orange,

Lemon, Mango and Diet flavors in the beverage market. Coke has 250ml glass bottle, can and

fountain glass. In family size packing, they have one liter. 1.5-liter glass bottle. They do not have

two-liter bottle. They also have not P E T bottle production in Bangladesh. Coke has 90

distributors in Dhaka and Rajshahi district. Their sales force is consist of 80 peoples.
Pepsi:the yearly sale of the Pepsi Company is 60, 00, 000 crates. As like Coke, they have Cola,

Orange, Lemon, Lime, Mango, and Diet and very recently, they introduced Apple flavor in

Bangladeshi beverage market. They are enriched in different pack size too. They 250ml glass,

can and fountain glass. In the family size, they have 1, 1.5 and 2-liter glass and PET bottle they

have also 500ml pet bottle. To cover the whole country they have more then 400 distributors.

Their sales force contains 100 people.

Virgin:The yearly sales of Virgin 2 million crates. Last year they sold 84% Cola, 7%Orange,

5%Lemon and 4%Diet. Virgin first come up with the can system within a reasonable price. They

do not have any kind of glass bottle. They have 250ml can and 500ml pet bottle. They also have

1.5 liter and 2-liter PET bottle. Virgin has 100 distributors and number of sales force is 40.

RC cola: The yearly sale of R C cola is 3.5 million crates. Their most popular flavor is Cloudy

Lemon. Like Pepsi, they have verity in flavors and pack size. They have 60 distributors and 55

sales people.

3.3.2 Brand Preference

The consumers informed the following things about the brand preference of the beverage

products-

Consumers like Coke’s 250 ml and 1000ml bottles both. The same result goes in favor of Pepsi.

Consumers also like the Cloudy lemon of R C cola and the new can system of Virgin, which had

launched by global beverage. Consumers like R C’s 300ml bottle more than their 1000ml bottle
and Sun-crest’s mega bottle more than 250 ml bottle. As PRAN has no brand variety, so

consumer has no choice their in case of PRAN.

3.3.3 Consumer Group Survey
The consumer group was divided into four categories. They were

ü Children

ü Teenagers

ü Youth

ü People over 35 years

All the above four categories were the consumer of coke and Pepsi simultaneously. RC and

PRAN were like by the three categories of consumers except children. On the other hand the first

three groups of consumers except people over 35 years liked sun crest.

3.3.4 Objectives
The objectives of the consumer survey were to know the following things.

ü Most preferred brand consumed by the consumer

ü Most preferred type of flavor

ü Influential factors

ü Package size

ü Segmentation of the consumer
ü Consumer liking

ü Consumer disliking

3.3.5 Most Preferred Brand Consumed by the Consumer
Out of the total sample size, 62.13% consumers like Coke, 17.26% Pepsi, 9.11% RC, 6.75%

Virgin and others 4.75%. According to the result of the survey, we find that most of the

consumer in the Dhaka city liked Coke and the ratio is 62.13%.

3.3.6 Most Prefer Type of Flavor
The consumers informed the following above the most prefer type of soft drinks: 51% consumer

indicated that they liked the Cola flavor most. 18% of them like the Orange flavor, 20% liked

Lemon, 4% liked Diet, 4% Mango and others 3% liked Lime. Actually, children and women

liked Orange and Mango flavor most. Diet liked by health conscious people.

3.3.7 Influential Factors
The influential factors are taste, brand, advertisement, friend’s influence and one of the vital

factor availability. The result had shown that 67% taste, 13% brand, 10% advertisement, 7%
friend’s influence and 3% availability influence the consumers to buy or have the beverage

product.

3.3.8 Pack Preference
The consumer indicated the following things about there pack preference of soft drinks:.23% of

the consumer liked the fountain drinks, 27% liked 300ml bottle, 23% liked 250ml can, 19% liked

1000 and 1500ml PET bottle and only 8% liked 1000ml glass bottle. Consumers do not like the

1000ml glass bottle because of hazard of deposit system of bottle from the consumer.

3.3.9 Segmentation of the Consumer
I have divided the consumers according to the age. The segments are children, teen age, youth,

people over 35 years. The aim was to find out which segment like most the beverage product.

The result indicate that 12% children, teen agars 49%, youth25%, people over 35 years 14%

consumed or have beverage product. Therefore, the result indicates that tee agars are the main

segment of the consumers.
3.3.10 Sources of Information
The consumers reported the following about the sources of information 36% of them got the

information about soft drinks from TV, 32% got the information from the print media, 18% from

the Radio, 12% from the out door (billboard) and only 2% from the word of mouth

communication.

3.3.11 Comparison of Cola

3.3.11.1 Taste Preference
The varieties of Cola in beverage products are:

ü Coca cola

ü Pepsi

ü RC

ü Virgin

ü Suncrest

The consumers indicate that they like Coke’s cola most. The result I got they liked 46% cola of

Coke, 24% cola of Pepsi, 12% of RC, 15% of Virgin and 3% of Sun-crest’s cola.

3.3.11.2 Reasons for Liking
There were some categories in reasons for liking the beverage companies soft drinks. They were

as follows:

ü Well balanced

ü Punch

ü Strong

ü Sweetness

ü Taste

The consumers informed the following things about their choices of the five categories, for

liking the Cola flavor:

Þ 100% of the consumers indicated that only Coke was well balanced. Well balance means the

balance combination of punch, strong, sweetness, and taste.

Þ 83% reported that coke had punch, 10% indicated that RC had punch and the rest of 7% informed

that Virgin had the punch.

Þ 81% consumer indicated that Coke was strong and 13% reported for Pepsi and 3% consumer

reported each for RC and Virgin.

Þ 91% consumer indicated that Coke had the sweetness, 5% indicated that Pepsi had the sweetness

and 2% indicated that RC and Virgin each had the sweetness.

Þ 85% consumer indicated that Coke had the perfect taste, 10% indicated that Pepsi had that, 3%

indicated that RC had the taste and 2% consumer indicated that Virgin had good taste.

3.3.11.3 Reasons for Not Liking
There were also some categories for not liking reasons. They were as follows:
ü No punch

ü Not strong

ü Too strong

ü Not sweet

ü Too sweet

ü Bitter taste

ü Tasteless

ü Taste

The consumers informed their reasons for not liking only for RC and Virgin. They did not like

RC and Virgin for the following reasons:

Þ 38% of the consumer indicated that RC had no punch, while the rest of 62% indicated that Virgin

had no punch.

Þ In the “not strong” category, 40% consumers did not like RC Cola because it was not strong and

60% disliked Virgin for the same reasons.

Þ In the “too strong” category, 100% consumers disliked RC Cola because it was too much strong.

Þ In the “not sweet” category, 50% disliked RC Cola because it was not sweet and the rest did not

like Virgin for the same reason.

Þ In the “too sweet” category, 75% of consumer indicated that RC Cola was sweeter than Virgin.

Þ In the “bitter taste” category, 50% consumers disliked both RC Cola and Virgin because they

were of bitter taste.
Þ In the “taste less” category, 37% consumer did not like RC Cola because it was taste less and 63%

consumers disliked Virgin for the same reason.

Þ In the “taste” category, 50% consumers reported each for RC Cola and Virgin that they did not

have the taste.

3.3.12 Comparison of Orange

3.3.12.1 Taste Preference
The varieties of orange in beverage products are:

ü Fanta

ü Mirinda

ü RC orange

ü Virgin orange

The consumers informed the following things about their taste preference in Orange flavor 80%

of the consumer liked the taste of Fanta, 10% liked Mirinda, 8% liked Virgin orange and 2%

liked the taste of RC Orange.

`

3.3.12.2 Reasons for liking
The consumers informed the following things about their choices of the five categories, for

liking the Orange flavor:

Þ 75% of the consumers indicated that Fanta was well balanced and 6% consumer indicated that

Mirinda was well balanced, 10% indicated that RC Orange was well balanced and 9% indicated

that Virgin orange was well balanced.

Þ 100% of the consumers indicated that only Mirinda had the punch.

Þ 79% consumer indicated that Fanta was strong and 11% consumer reported each for Mirinda and

Virgin orange.

Þ 80% consumer indicated that Fanta had the sweetness and 20% indicated that Mirinda had the

sweetness.

Þ 82% consumer indicated that Fanta had the perfect taste, 17% indicated that Mirinda had that and

1% consumer indicated that Virgin orange had good taste.

3.3.12.3 Reasons for Not Liking
There were also some categories for not liking reasons. They were as follows:

ü Horrible

ü Sour

ü No punch

ü Too strong

ü Not sweet
ü Too sweet

ü Bitter taste

ü Tasteless

ü Taste

The consumers informed the following reasons about their reasons for not liking, only for

Mirinda, RC orange and Virgin orange:

Þ 100% of the consumers disliked RC orange because it was horrible.

Þ 67% disliked RC orange because it was sour and 33% did not like Virgin orange for the same

reasons.

Þ 100% of the consumers indicated that RC orange had no punch.

Þ In the “not strong” category, 83% consumers did not like RC orange because it was not strong

and 17% disliked Mirinda for the same reason.

Þ In the “too strong” category, 70% consumer disliked Virgin orange because it was too much

strong.

Þ In the “not sweet” category, 75% disliked RC orange because it was not sweet and the rest 25%

did not like Mirinda for the same reason.

Þ In the “too sweet” category, 14% of consumer disliked Mirinda because it was too sweet, 57%

disliked RC orange as it was also too sweet and 29% did not like Virgin orange for the same

reason.
Þ In the “bitter taste” category, 64% consumers disliked RC orange and 36% consumers did not like

Virgin orange because both of them were of bitter taste.

Þ In the “taste less” category, 50% consumer disliked RC orange because it was taste less and 33%

consumer disliked Virgin orange because it was also taste less and the rest 17% consumer did not

like Mirinda for the same reason.

Þ In the “taste” category, 6% consumers disliked Mirinda because it had no taste, 81% disliked RC

orange and 13% disliked Virgin orange for the same reason.

3.3.13 Comparison of Clear

3.3.13.1 Taste Preference
The varieties of clear in beverage products are:

ü Sprite

ü 7UP

ü Upper 10

ü Bubble Up

The consumers informed the following things about their taste preference of Clear flavor 77% of

the consumer liked the taste of Sprite, 7% liked 7UP and 3% liked the taste of Upper 10.

3.3.13.2 Reasons for Liking
The consumers informed the following things about their choices of the five categories, for

liking the Clear flavor:
Þ 92% of the consumers indicated that Sprite was well balanced and 8% consumer indicated that

7UP was well balanced.

Þ 89% of the consumers indicated that Sprite had the punch and 11% indicated that 7UP had the

punch.

Þ 100% of the consumer indicated that Sprite was strong.

Þ 91% consumer indicated that Sprite had the sweetness and 9% indicated that 7UP had the

sweetness.

Þ 88% consumer indicated that Sprite had the perfect taste, 6% indicated that 7UP had that and 6%

consumer indicated that Upper 10 had good taste.

3.3.13.3 Reasons for Not Liking
There were some categories for not liking reasons. They were as follows:

ü Sour

ü No punch

ü Too strong

ü Not sweet

ü Too sweet

ü Bitter taste

ü Tasteless

ü Taste
The consumers informed the following things about their reasons for not liking, 7UP, Upper 10

and Bubble up. They did not like 7UP, Upper 10 and Bubble up for the following reasons:

Þ 50% disliked Upper 10 because it was sour and 50% did not like Bubble up for the same reason.

Þ 40% of the consumer did not like 7UP because it had no punch and 60% disliked Bubble up

because it had also no punch.

Þ In the “not strong” category, 80% consumers disliked 7UP and 17% disliked Bubble up because

both of them were not strong..

Þ In the “too strong” category, 13% of consumers did not like both of 7UP and Upper 10 because

they were too strong and 74% consumer dislike Bubble up because it was too much strong.

Þ In the “not sweet” category, 51% disliked 7UP and 25% consumers disliked both of Upper 10 and

Bubble up because they were not sweet.

Þ In the “too sweet” category, 14% of consumer disliked both of 7UP and Upper 10 because they

were too sweet and 72% disliked Bubble up for the same reason.

Þ In the “bitter taste” category, 17% disliked 7UP, 258% customers disliked Upper 10 and 58% did

not like Bubble up because they had the bitter taste.

Þ In the “taste less” category, 20% consumers disliked 7UP and 60% consumers did not like Bubble

up because they were taste less and the rest 20% consumers disliked Upper 10 for the same

reason.

Þ In the “taste” category, 11% consumers disliked 7UP, 26% disliked Upper 10 and 63% did not

like Bubble up because all of them had no taste.
3.3.14 Comparison of Cloudy

3.3.14.1 Taste Preference
The varieties of cloudy in beverage products are:

ü Mirinda lemon

ü RC lemon

ü Kickapoo

The consumers informed the following things about their taste preference of Cloudy flavor 72%

of the consumer liked the taste of RC Lemon, 20% liked Mirinda lemon and 8% liked the taste of

Kickapoo.

3.3.14.2 Reasons for Liking
The consumers informed the following things about their choices of the five categories, for

liking the Cloudy flavor:

Þ 81% of the consumers indicate RC lime was well balanced, 6% consumer indicate that Mirinda

lime was well balanced and 13% indicate that Kickapoo was well balanced.

Þ 100% of the consumers liked only RC lime because it had the punch.

Þ 25% of the consumer indicated that Mirinda lime was strong, 63% indicated that RC lime was

strong and 13% indicated that Kickapoo was strong.
Þ 33% consumer indicated that Mirinda lemon had the sweetness, 56% indicated that RC lime had

that and 11% indicated that Kickapoo had the sweetness.

Þ 18% consumers liked both of Mirinda lime and Kickapoo because they had taste and 64%

consumers liked RC lime for the same reason.

3.3.14.3 Reason for Not Liking
There were also some categories for not liking reasons. They were as follows:

ü Sour

ü No punch

ü Too strong

ü Not sweet

ü Too sweet

ü Tasteless

ü Taste

The consumers informed the following things about their reasons for not liking Mirinda lime and

Kickapoo:

Þ 67% disliked Mirinda lime because it was sour and 33% did not like Kickapoo up for the same

reason.

Þ 20% consumers did not like both of Mirinda lime and RC lemon because they had no punch and

60% disliked Kickapoo for the same reason.
Þ In the “not strong” category, 20% consumers disliked Mirinda lime, 30% consumers disliked RC

lime and 50% did not like Kickapoo because all of them were not strong.

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

Þ In the “not sweet” category, 100% consumers did not like RC lime because it was not sweet.

Þ In the “too sweet” category, 40% consumers disliked Mirinda lime because it was too sweet and

60% disliked Kickapoo because it was too sweet.

Þ In the “taste less” category, 50% consumers disliked Mirinda lime and 20% did not like RC lime

because both of them were taste less and the rest 30% consumers disliked Kickapoo for the same

reason.

Þ In the “taste” category, 59% consumers disliked Mirinda lime, 6% disliked RC lime and 24% did

not like Kickapoo because all of them had no taste.

3.4 Promotion Channel

3.4.1 Display of Crates and Bottles

The retailers informed that arranged the display of the bottles and crates themselves, according to

the size of their shop. Company people never forced them to adopt any particular style of display

unless the retailers were said to do so.

3.4.2 Signboards

36 % of the retailers informed that they had paid for the signboards themselves. Among the rest

64% signboards, 28% signboards were found of Coke, 16% Pepsi, 9% R C, 7% Virgin and 4%

of each for Sun crest and PRAN signboards were found. The retailers informed that the beverage
companies paid for the cost of their signboards in the particular shop or confectionery. The

retailers gave the signboards measurement to the beverage producers and they had then made for

the retailers, as signboards is a very useful media of advertisement for the beverage companies.

3.4.3 Company Wise Cooler Position & Deposit System

The retailers informed that 45% of them had their own refrigerator. 22% Coke cooler was found

and 16% Pepsi, 9% R C, 5% virgin and 3% Sun crest cooling system were found. PRAN had no

cooler in retailers market.

The retailers informed the following things about the payment system of beverage cooler-

Retailers had to deposit TK. 5000 for the refrigerator of Coke. They paid 2000-6000 TK. for

Pepsi cooler. Virgin keeps 2000tk for the cooler. The retailers deposited TK 6000 for the

refrigerator of R C. However, in some special cases R C did not take the deposit amount from the

retailers, as company cooler was an important and useful advertisement for R C beverage. The

retailers also informed that no company was interested to keep other companies soft drinks in

their brand refrigerator. It was observed that the retailers kept all companies soft drinks together

in a brand refrigerator whether it was of Coke’s, Pepsi’s or R C’s.
3.4.4 Competitive Situation of Beverage Products

In the beverage industries, every company for trading emphasized on the retailers. Companies

think retailers are key factor for moving or reaching their product to the ultimate consumers.

3.4.5 Reasons for Giving Priority of Retailers

Retailers give priority to brand companies based on some factors. The factors are describe as

follow-

ü Public Demand: The retailers give preference to public demand, because their profit mainly

depends on consumer choice. Retailers sell that brand is soft drinks more, which the consumers

like most. Based on public demand they keep more bottles of Coke and Pepsi. The retailers keep

Cloudy lemon more than other product of R C cola.
ü Discount: In this case, the retailers consider all the beverage companies in the same way, as no

company offers the retailers any kind of discount. All the companies take the particular amount

of bottle and crate deposit money in time.

ü Free Bottles:The retailers always give priority to free bottles that they receive from the

company. When the retailers manage to sell a particular number of bottles, every company gives

them some free bottles for their encouragement, so that they give more preference in selling the

products of the specific brand.

ü Gift Items: The retailers always give priority to those brands who give them gift items like

opener, T-shirts, glass, wall clock etc. the company, which gives the retailers gift items were

more preferred by them, and they like to keep more bottles of that brand.

3.4.6 Promotional Activities

It has two parts. Both parts are described bellow:

3.4.6.1 Promotional Activities for Traders

The beverage companies are offering several promotional activities. They are described as

follows:

ü Opener: Coke, Pepsi , R C, and Virgin companies offer this promotional activity to the traders

for the goodwill of their company. Actually they keep this offer all year long.
ü T-shirt: All the beverage companies offer this promotional activity to the traders. T-shirt is also

a good advertising media.

ü Free Bottles/ Discount of money: These two promotional activities have very close relationship

with each other. The beverage companies always give free bottles in lieu of discount of money.

Coke, Pepsi, R C, Virgin, and PRAN all the beverage companies maintain this promotional

activities.

ü Glass:Coke and Pepsi first started this promotional activity, but recently Virgin using this

technique very effectively. This is a very costly promotional activity.

3.4.6.2 Promotional Activities for Consumer

The beverage companies offer several types of program for the promotional activities of

consumers.

ü Linear Program: Coke and Pepsi companies offered this program long ago. It got huge public

popularity. The linear program was like this-after buying a bottle of Coke or Pepsi the consumer

had to collect the linear and open it. There were something printed inside of the linear. There

could be some figure of money, some gift item like opener, glass etc. Only the lucky person got

that linear. They give the linear to the nearest retailer shop. Coke offered a car and Pepsi

company gave Motorcycle in that linear based program. Now a day, there is no practice of this

kind of program by the beverage companies.
ü Glass Program: Coke Company introduced this program. The rule of this program was –if a

consumer drink 5/6 bottles of he or she would receive a glass from Coke Company through the

retailer. This program is frequently use for both consumers and retailers.

ü Other Program: There are some other types of incentives given by different beverage

companies. They are given as bellow:

Þ Buy one liter Coke and get a Frisbee.

Þ Pepsi gives different food item with their liter bottle. They also give Cricket bat, ball, pad etc.

Þ R C cola gives a five-taka discount with every one-liter bottle.

3.4.7 Competitive Situation

This part is the most vital part of this report. The retailers in this study sold the following

percentage of Coke, Pepsi, Virgin, R C, sun-crest and PRAN beverage product per day.

They sold 40.56%Coke (250ml), 34.26%Pepsi, 10.98%R C, 6.59%Virgin, 6%PRAN and

1.61%Sun-crest per day. The ratio shows that Coke has strong market share of 40.56% and sun-

crest has the lowest market share of 1.61%. The liter bottle crates sold per day by the retailers

were the followings-

45% Pepsi, 35% Coke, 9%R C, 9%Virgin and 2% Sun-crest. Here Pepsi hold the strong market

share of 45% and Sun-crest has lowest market share of 2%. PRAN has no liter beverage item in

the market so they do not have any market share.
With regard to bottle out put / day, only Coke and RC companies revealed the information. The

bottle output /day of Coke was 4500 crates of 250ml bottle and 4500 crates of 1000ml bottle.

The sum of their bottle output per day was 9000 crates. On the other hand, R C outputs 6000

crates per day, 3000 crates of 300 ml bottles and 3000 crates of 1000 ml bottles.

MARKET SHARE IN THE BEVERAGE MARKET

3.5 Quality Problem Encountered by Beverage Product

This is a confidential mater for Beverage Company. Only one problem is possible to know from

the beverage companies. The rotten things of the soft drinks. Companies pollute the environment

of the beverage companies. As because the beverage companies always face the cleaning

problem. The beverage companies should try their level best to get rid of this problem. This

problem affects the quality of their beverage products.

3.6 Media Wise Advertisement Ratio of Beverage Products In Dhaka City

This was the most vital part of my intern-ship work to gather the information about the

advertisement budget and its ratio. However, it very sensitive information for all beverage

companies, so they gave me the approximate data about the advertisement and its ratio. There are

different media is used for the advertisement. Those are press, out door, T V and different events.
Some companies emphasize on TV media and some focused on the sports events. The companies

most frequently use this two medium. As my topic is to study the recent market scenario of the

beverage industries of the Dhaka city. Therefore, I have collected the information of the

companies, which is actually Dhaka reason based.

Only the T V and newspaper advertisement ratio of Coke, Pepsi, R C, Virgin and Sun crest

companies had possible to gather. The T V advertisement ratio of Pepsi, Coke, R C, Virgin and

sun crest was available for month of February and March. In the above three months Pepsi spent

47, 88,500 TK, Coke spent 5, 00,000 TK, Virgin spent 18, 58,000 TK, R C and Sun crest spent

near about 23, 00,000 TK for this two month. This is the highest budget of the history of Sun

crest for the T V advertisement. The reason behind this was recently they had launched a new

pack size in the market. This is totally a concept for the Bangladesh beverage market. The

newspaper advertisement ratio of Pepsi, R C, Sun crest and Virgin was available for the month of

January to March. As I mentioned earlier that Coke Company is divided in to two-production

operation in Bangladesh. The government owned part had not spent a lot for the advertisement in

the recent year 2002.

On the other hand Pepsi as usually spends more than 2, 00,000 TK per month for the newspaper

advertisement. Pepsi gives 19 ads in different newspaper and spent 19, 00,000 TK. in the month

of February they spent most because of Eid-ul-Azah.

Virgin spent 05, 55,000 TK for the month of March and February. In these two months, they

spent a lot for the business promotion. In the month of February, it was winter, when beverage
product becomes a bit slow. In the month of March, they tried to promote, the Cheers, which are

Mango flavored. They offered one glass with every three cans of the Cheers.

Recently Sun crest spent more then 15, 00,000 TK in different newspapers. In the month of

March, they had launched 250 ml PET bottle. For introduction of the new product, they spent the

special amount of money.

R c spent only 75,600 TK, their amount is very low compare to others. They spent more on T V

adds. Although they spent less for the newspaper but their advertisement is not few in this media.

They gave the sponsorship for the laser –light show, which was first time in Bangladesh. So R C

get the advertisement advantage from this laser show adds.

3.7 Most Preferred T V Channel for the Advertisement

In Bangladesh, we have four private and national T V channels. Only one of them is government

owned. T V advertisement is a very powerful communication medium between companies and

retailers and mostly with the consumers. According to the retailers, E TV is most preferred

medium for them. 66% liked E TV, 25% B TV, 6% liked Channel I and others liked A T N

Bangla.

3.8 Comparison with Fruit Drinks

There were no competitions of fruit drinks with the beverage products in last few years back.

Recently the scenario is little different, because peoples are more aware about the soft drinks,
they are aware about the health. To cope up this problem beverage companies had started to

increase the fruit flavored drinks more. Like Mango, Orange and lichi. For this reason, it could

be said that there was no competition between fruit drinks and soft drinks. The children mainly

liked fruit drinks.

Part -4. CONCLUSION
It was mentioned earlier that R C is a newly franchise company in beverage sector of

Bangladesh. For this reason, it will take several years for the company to improve and to capture

a healthy market share. Coke and Pepsi have a strong background internationally, which R C

does not. Coke and Pepsi are the oldest beverage companies in Bangladesh. Therefore, the two

companies’ management is much more experienced than that of the R C’s management.
In the advertisement sector, Coke and Pepsi get the readymade T V ads from their neighbor

country India like “Yeh Dil Mange More”. India’s Coke and Pepsi companies give them the

add to advertise in the T V. this is an era of information technology and satellite culture. So

consumers specially who live in the city area, they can see the adds in different channels. This is

an extra advantage for these two companies. That is why Coke and Pepsi do not need to spent

extra money a lot for the commercial advertise making. They directly buy the ads from Coke and

Pepsi Company of India. On the other hand, if R C wants to advertise their product on T V, they

have to spend a big budget for making it.

Few companies like Virgin and PRAN emphasized on a specific side of the consumer segment.

Foe example virgin targeted the young generation, those who are stylish and do not like to bother

to carry the glass bottle. They offered the can system for them. Eventually they got a very good

response from every segment of the consumer. The reason is they offered a can with in a

reasonable price. PRAN emphasized on the fruit juice in 250ml glass bottle. On the other hand,

R C tried to cover every segment of the consumers by offering the as many package size as

possible.

In conclusion, it is apparent that, in order to compete with Coke and Pepsi, survive in the

competitive market and continue to grow, R C needs to launch extensive marketing campaign.
Part-5 RECOMMENDATION
ü R C bottle is not attractive like Coke. This is a vital weapon to attract the mind of consumers.

Mineral water bottle of MUM could an example of this. R C should try to change their design of

bottle.

ü R C introduce PET bottle for one and 1.5-liter bottle, this is a good sign. However, retailers are

still bothering with deposit system of glass bottle of 300ml. R C should make plastic bottle for

300ml like Sun crest.

ü R C’s marketing objective should be like these-

Þ R C should be identified as a brand of quality and taste to the consumer.

Þ Ensure wide distribution through strong aggressive sales force through out the country.
Þ To fight back market leaders like Coke and Pepsi and gradually acquire market share from them.

ü R C’s advertising objective should be like these-

Þ To establish R C as a quality range of products with a different taste in the consumers mind.

Þ To make people aware of the R C brand name.

Þ To bust up the sales.

ü R C should do the following things in outdoor for extensive visibility, advertisement and

reinforcement.

Þ Billboards and hoarding

Þ Shop planning

Þ Plastic sign

Þ Shop board

Þ Light board

Þ Van planning

Þ Neon sign

ü R C should arrange-

Þ Concerts

Þ Fashion show

Þ Drinking competition

Þ Sponsorship of youth/ sport related events

Þ Discounted sales in different clubs

ü R C should try the fountain drinks, as fountain beverage is preferred in terms of both taste and

freshness.
ü In trams of media spending, Coke and Pepsi spend more then R C. R C can compete with them

by spending more money in media to strengthen the image of their brand and then catch up with

Coke and Pepsi.

ü For making T V ads R C can do the followings-

Þ If budget permits, R C can go for shooting in Mumbai, where R C gets the best quality production

in this region.

Þ If not Mumbai then Calcutta can explore for better production quality than Bangladesh.

Þ Or else R C can shoot locally and go for postproduction in Mumbai or Calcutta, which would

bring down the cost of production.

ü To increase the sales of R C’s bottles they can offer the following trade promotions for the

retailers-

Þ R C can offer one colored T V to the retailers who can sell the highest number of bottles in a

certain territory. They can announce the name of the person on a press release.

Þ Mystery shopper: A team from R C can visit the shops and find out where the retailer keeps more

R C than others and at the same time try to push RC products. Then the team can offer him some

gifts, like T-shirts, caps, wristwatch etc.

Þ If possible R C can offer four bottles free with one crate, which PRAN is still doing. This secretes

of PRAN although they do not offer quality product to the consumers.

ü R C can offer the following promotional activities to the consumers-

Þ R C arranges different type of contest for the consumers. Some of them could be for the short

time and could be for a long while. The example of short one could be like, R C team would visit

different area and observe different shop and find out the best buyer from those area or territory.

The best buyer could be recognized as a” R C person”. The long-term strategy could be one type
of U T C program, which means under the crown program. Consumers have to collect a specific

amount of unit to get a gift. Like T-shirts, travel bag, motor cycle, wrist watches etc.

Þ R C can offer the consumers a coupon with every 1.5-liter PET bottle. The consumers had to fill

up the coupon and submit it to the retailers. The coupon would be about the information of RC. I

it would increase the brand loyalty of RC cola. To achieving that, R C had to offer a big budget

offer for the winner.

Þ Kids are the one of the vital segment of the beverage product. R C can focus them. For the kids R

C can make small bottle of drinks. The pack size could be 2oo ml; the reason is some times

children can not finish the 250 ml then their parents do not like to give then a bottle. Most of the

time the parent give them a juice pack. More over they can offer stickers , chips, nuts etc with the

small bottle.

APPENDICIES

TABLES

PRICE MARGIN

RC
PRICE MARGIN COKE PEPSI COLA VIRGIN PRAN SUNCREST
COMPANY TO
DISTRIBUTORS 176 TK 175 TK 170 TK 170 TK 175 TK 147 TK
DISTRIBUTORS TO
RETAILERS 190 TK 190 TK 156 TK 156 TK 190 TK 164 TK
RETAILERS TO
CONSUMERS 240 TK 240 TK 240 TK 240 TK 240 TK 216 TK

DEPOSIT AGAINST CRATES AND BOTTLES
Þ FOR 250/300 ML BOTTLES

RC
DEPOSIT COKE PEPSI COLA PRAN SUNCREST
DEPOSIT AGAINST
CRATES 30 TK 30 TK 30 TK 30 TK 30 TK
DEPOSIT AGAINST
BOTTLES 120 TK 120 TK 120 TK 120 TK 120 TK

Þ FOR 1000 ML BOTTLES

DEPOSIT COKE PEPSI RC COLA
DEPOSIT AGAINST
CRATES 150 TK 150 TK 100(12)/50(6) TK
DEPOSIT AGAINST
BOTTLES 240 TK 240 TK 120/240 TK

SIGNBOARDS OWNERS

Personal 36%
Coke 28%
Pepsi 16%
RC 9%
Virgin 7%
Others 4%

COMPANY WISE COOLER POSITION

PERSONAL 45%
COKE 22%
PEPSI 16%
RC 9%
VIRGIN 5%
S-CREST 3%

PRESENT BRAND CONSUMED

BRAND %
COKE 62.13%
PEPSI 17.26%
RC 9.11%
VIRGIN 6.75%
OTHERS 4.75%

MOST PREFERRED TYPE OF FLAVOR

FLAVOR %
COLA 51%
ORANGE 18%
LEMON 20%
DIET 4%
MANGO 4%
LIME 3%

PACK PREFERENCE

PACKS %
300 ML 27%
1000&1500 ML
PET 19%
1000 ML GLASS
BOTTLE 8%
250 ML CAN 23%
FOUNTAIN 23%

SOURCES OF INFORMATION

SOURCES %
TV 36%
RADIO 18%
PRINT 32%
BILLBOARD 12%
WORD OF
MOUTH 2%

TASTE PREFERENCE OF COLA FLAVOR (%)

FLAVOR %
COKE 46%
PEPSI 24%
RC 12%
VIRGIN 15%
SUN
CREST 3%

REASONS FOR LIKING COLA FLAVOR (%)

COCA
REASONS COLA PEPSI RC VIRGIN
TASTE 85 10 3 2
SWEETNESS 91 5 2 2
STRONG 81 13 3 3
PUNCH 83 10 7
WELL
BALANCED 100

REASON FOR NOT LIKING COLA FLAVOR (%)

COCA RC
REASONS COLA PEPSI COLA VIRGIN
TASTE 50 50
TASTELESS 37 63
BITTER TASTE 50 50
TOO SWEET 75 25
NOT SWEET 50 50
TOO STRONG 100
NOT STRONG 40 60
NO PUNCH 38 62

TASTE PREFERENCE OF ORANGE FLAVOR (%)

FLAVOR %
FANTA 80%
MIRINDA 10%
VIRGIN
ORANGE 8%
RC
ORANGE 2%
REASONS FOR LIKING THE ORANGE FLAVOR (%)

RC VIRGIN
REASONS FANTA MIRINDA ORANGE ORANGE
TASTE 82 17 1
SWEETNESS 80 20
STRONG 79 11 11
PUNCH 100
WELL
BALANCED 75 6 10 9

REASONS FOR NOT LIKING THE ORANGE FLAVOR (%)

RC VIRGIN
REASON FANTA MIRINDA ORANGE ORANGE
HORIBBLE 100
SOUR 67 33
TASTE 6 81 13
TASTELESS 17 50 33
BITTER TASTE 64 36
TOO SWEET 14 57 29
NOT SWEET 75 25
TOO STRONG 100
NOT STRONG 83 17
NO PUNCH 100

COMPARISON OF CLEAR

TASTE PREFERENCE OF CLEAR FLAVOR

FLAVOR %
SPRITE 77%
7UP 7%
UPPER 10 3%
BUBBLE UP 0%

REASONS FOR LIKING THE CLEAR FLAVOR (%)

REASONS SPRITE 7UP UPPER 10
TASTE 88 6 6
SWEETNESS 91 9
STRONG 100
PUNCH 89 11
WELL BALANCED 92 8

REASONS FOR NOT LIKING THE CLEAR FLAVOR (%)

REASONS SPRITE 7UP UPPER 10 BUBBLE UP
SOUR 50 50
TASTE 11 26 63
TASTELESS 20 20 60
BITTER TASTE 17 25 58
TOO SWEET 14 14 72
NOT SWEET 50 25 25
TOO STRONG 13 13 74
NOT STRONG 83 17
NO PUNCH 40 60

COMPARISON OFCLOUDY

TASTE PREFERENCE OF CLOUDY FLAVOR

FLAVOR %
MIRINDA LEMON 20%
RC LEMON 72%
KICKAPOO 8%

REASONS FOR LIKING THE CLOUDY LEMON (%)
MIRINDA RC
REASONS LEMON LEMON KICKAPOO
TASTE 18 64 18
SWEETNESS 33 56 11
STRONG 25 63 13
PUNCH 100
WELL
BALANCED 6 81 13

REASONS FOR NOT LIKING THE CLOUDY LEMON (%)

MIRINDA RC
REASONS LEMON LEMON KICKAPOO
SOUR 67 33
NO PUNCH 20 20 60
TOO STRONG 100
NOT SWEET 100
TOO SWEET 40 60
TASTELESS 40 20 30
TASTELESS 69 6 25
NOT STRONG 20 30 50

Questionnaire for Beverage Company

Company Name:
Sales profile:

ü In terms of yearly / daily / weekly sales.

ü In terms of flavors. Cola, orange, lemon, mango, diet, etc.

ü In terms of pack size. 250ml can/300glass bottle. Family packs 1, 1.5, 2 liter.

q How many distributors do you have?

q Number of the sales force.

q Number of the vehicles owned by your company.

q Figure of the cooler supplied by your company.

q What is the deposit system for the cooler?

q What is your total sale budget for advertisement?

q What is your media wise advertisement ratio?

q Which media is most useful communication channel?

q Which promotional strategy is most effective for your product?

q How do you cover the beverage market?

Nationwide/ Citywide.

q How many shop boards/ neon/halogen signs are being used for outdoor advertisement?

q Which distribution strategy do you follow?

ü Company---distributor---retailer---consumer.

ü Company---retailer---consumer.

Questionnaires For Retailers

Organization: Area:
1. What is most important thing for the beverage product?

Brand name/ Profit margin/ Availability/ Consumer demand/ efficient sales force.

2. Which brand gives you most profit margins for trading their product?

Coke/ Pepsi/ R C cola/ Virgin/ Others.

3. Which flavor does the consumer mostly like?

Cola/ Orange/ Cloudy lemon/ Mangola/ Diet

4. Which brand does the consumer mostly like?

Coke/ Pepsi/ RC/ Virgin

5. Which package is preferred for individual consumer’s need?

Bottle (500ml)/ Can/ Aseptic Pack (Coke, Pepsi, RC, Virgin)

6. Which package is mostly preferred for family need?

1literbottle/ 1.5liter bottle/ Pet2Liter/ 2Liter glass bottle (Coke, Pepsi, RC, and Virgin)

7. Which brand’s lemon is most popular?

Sprite/ 7UP/ Cloudy lemon/ Upper 10/ Mirinda lemon/ Bubble Up.

8. Which brand’s diet is most popular?

Coke/ Pepsi/ R C/ Virgin/ Others

9. Which medium’s advertisement influence you most?

Press/ Television/ Out door/ Pop/ Radio

10. Availability of beverage product is

Highly convenient (1)/ moderately convenient (2)/ Just available (3)/ Not available (4)

Coke---- Pepsi---- RC---- Virgin----

11. Performance of sales force of beverage company

Extremely well organized (1)/ Moderately organized (2)/ Good (3)/ Poor (4)
Coke---- Pepsi---- RC---- Virgin----

12. Which company takes the prompt action for any damage of the product?

Coke/ Pepsi / RC/ Virgin

13. What is the company wise cooler position system?

COOLER COKE PEPSI RC VIRGIN
PROVIDERS COLA
BY COMPANY

RETAILERS OWNED

14. Who does pay the signboards money?

MONEY COKE PEPSI RC VIRGIN
PAID BY COLA
COMPANY
DISTRIBUTORS
RETAILERS
CONFECTIONERY OWNER

15. What are the promotional activities of the beverage companies?

PROMOTIONAL COKE PEPSI RC VIRGIN
ACTIVITIES COLA
OPENER
T-SHIRT
FREE BOTTLES
DISCOUNT OF MONEY
GLASS

Questionnaire for Consumers

Age:
Profession:

Area:

1. Which brand does you preferred most?

Coke / Pepsi / RC / Virgin / Others

2. Which flavor does you like most?

Cola / Orange / Lemon / Diet / Mango / Lime

3. Which thing influence you most to choose a soft drinks?

Taste / Brand / Advertisement / Friend’s influence/Availability

4. Which package does you like most?

300ml/ 1000ml & 1500ml pet/ 1000ml glass bottle/ 250 ml can

5. Who is the consumer group for beverage?

Children / teen age / youth / elderly people over 35 years.

6. What your desires while you want to have cold drinks?

Chilled/Availability/ Taste

7. Which medium of advertisement influences you most?

Press / TV / Radio / Out door/ point of parches

8. For TV ads, which channel is most preferred by you?

BTV / Channel I / E TV / A T N Bangla / Others

9. If you like to have Lemon, which one is best by taste?

Cloudy lemon / Mirinda Lemon / Sprite / 7UP / Bubble UP / Upper 10

10. For Diet which brand you like most?

Coke / Pepsi / R C / Virgin / Others.
11 What are the reasons of your liking a particular Brand (In cola flavor)?

COCA
REASONS COLA PEPSI RC VIRGIN
TASTE
SWEETNESS
STRONG
PUNCH
WELL
BALANCED

12. What are the reasons of your not liking a particular Brand (In cola flavor)?

COCA RC
REASONS COLA PEPSI COLA VIRGIN
TASTE
TASTELESS
BITTER TASTE
TOO SWEET
NOT SWEET
TOO STRONG
NOT STRONG
NO PUNCH

1.3 What are the reasons of your liking a particular Brand (In orange flavor)?

RC
REASONS FANTA MIRINDA ORANGE VIRGIN ORANGE
TASTE
SWEETNESS
STRONG
PUNCH
WELL
BALANCED
16. What are the reasons of your not liking a particular Brand (In orange flavor)?

RC VIRGIN
REASON FANTA MIRINDA ORANGE ORANGE
HORIBBLE
SOUR
TASTE
TASTELESS
BITTER TASTE
TOO SWEET
NOT SWEET
TOO STRONG
NOT STRONG
NO PUNCH

17. What are the reasons of your liking a particular Brand (In clear flavor)?

REASONS SPRITE 7UP UPPER 10
TASTE
SWEETNESS
STRONG
PUNCH
WELL BALANCED

18. What are the reasons of your not liking a particular Brand (In clear flavor)?

REASONS SPRITE 7UP UPPER 10 BUBBLE UP
SOUR
TASTE
TASTELESS
BITTER TASTE
TOO SWEET
NOT SWEET
TOO STRONG
NOT STRONG
NO PUNCH
19. What are the reasons of your liking a particular Brand (In cloudy lemon flavor)?

MIRINDA RC
REASONS LEMON LEMON KICKAPOO
TASTE
SWEETNESS
STRONG
PUNCH
WELL
BALANCED

20. What are the reasons of your not liking a particular Brand (In cloudy lemon flavor)?

MIRINDA RC
REASONS LEMON LEMON KICKAPOO
SOUR
NO PUNCH
TOO STRONG
NOT SWEET
TOO SWEET
TASTELESS
TASTELESS
NOT STRONG

REFERENCES

q The Story of RC

Partex Beverage

q Marketing Research

Naresh K. Malhotra (3rd Edition)

q International Marketing
P.R. Cateora