Mekelle University

College of Business and Economics

Department of Management

MBA Program (Regular)

Course title: Marketing Management

Course Code MBA621

Assignment II on: Mekelle soft drink plant (Moha soft Drink Industry S.C)

Name gender Section ID number

Tsadik Hailay M 2 cbe/mbar/0038/12

Submitted To: Teshome Desta (Ass. Prof)

June 01/2020

1. Background of the Industry

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1.1Introduction

MOHA (Mohammed Hussein Al-almudi) Soft Drinks Industry S.C was acquired from the

Ethiopian Privatization n Agency and established on May 15, 1996 with the following purposes:
To manufacture, buy, sell, bottle, distribute and otherwise deal in non-
alcoholic beverages mineral and aerated waters and the ingredients there of in Ethiopia and
elsewhere.

Mekelle Moha soft drink plant is one of the Medroc Corporation among the eight (Nifas Silk,
Teklehaimanot, Summit, Gondar, Dessie, Bure, Hawassa and Mekelle) soft drink factories that
located at Mekelle the capital city-the government of state of Tigray established in 2014 G.c
built up at 6,100m2 with 80 million Birr.

1.2 Company Overview

MOHA soft drinks Industry S.C was acquired from the

Ethiopian Privatization Agency and established on May
15, 1996 with the following vision, mission and core
values.

VISION: - MOHA’s vision is to make each of their

Pepsi products to be a drink of first choice among
consumer and obtainable throughout the Ethiopian market. They intend to create superior
value for their shareholders, customers and employees.

MISSION: - Moha’s mission is to be the best beverage industry in the country they will
continuously improve their responsiveness to the needs and concerns of their customers,
employees, partners and communities in which they serve. This will be accomplished through
the development of their employees, an emphasis on cost efficiency, market expansion and
profitability. They will expand their marketing areas to both protect and improve their positions
by placing emphasis on innovation and technological improvement to keep always ahead of
competition.

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CORE VALUES:- Customer satisfaction, enhancement of positive corporate identity and
image, ensure employees empowerment, be committed to social responsibilities, sustainability
of quality and excellence in what they do and build a winning team.

2. Definition of Terms

Market philosophy:

Marketing is “the science and art of exploring, creating, and delivering value to satisfy the
needs of a target market at a profit”. Depending on the business, Marketing concepts or
philosophies are the philosophies used by the businesses to guide their marketing efforts.
Basically, marketing concepts relate to the philosophy a business use to identify and fulfill the
needs of its customers, benefiting both the customer and the company. Same philosophy
cannot result in a gain for every business, hence different businesses use different marketing
concepts (also called marketing management philosophies).
Marketing concepts are driven by clear objectives like cost efficiency, product quality,
customer’s need fulfillment etc. There are five marketing concepts. A company should choose
the right one according to their and their customers’ needs.

1. Production Concept/philosophy
2. Product Concept/ philosophy
3. Selling Concept/ philosophy
4. Marketing Concept/ philosophy
5. Social Marketing Concept/ philosophy
Production Concept/philosophy
This concept works on an assumption that consumers prefer a product which is inexpensive
and widely available. This viewpoint was encapsulated in Says Law which states ‘Supply creates
its own demand’. Hence companies focus on producing more of the product and making sure
that it is available to the customer everywhere easily.

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Product concept/philosophy
Unlike the production marketing philosophy which is focused on mass-producing in expensive products,
this concept favors high-quality products and holds the belief that the customers will not mind the high
price because of the quality.

Selling Concept/philosophy
Production and product concept both focus on production but selling concept focuses on
making an actual sale of the product. Selling Concept focuses on making every possible sale of
the product, regardless of the quality of the product or the need of the customer. The main
focus is to make money. This philosophy doesn’t include building relations with customers.
Hence repeated sales are very less. Companies following this concept may even try to deceive
the customers to make them buy their product.

Societal Marketing Concept/philosophy

Adding to the marketing concept, this philosophy focuses on society’s well-being as well. The
business focuses on how to fulfill the needs of the customer without affecting the environment,
natural resources and focusing on society’s well-being. This philosophy believes that the
business is a part of the society and hence should take part in social services like the elimination
of poverty, illiteracy, and controlling explosive population growth etc.

Marketing Concept/philosophy
Holistic marketing is a new addition to the business marketing management philosophies which
considers business and all its parts as one single entity and gives a shared purpose to every
activity and person related to that business. A business, like a human body, has different parts,
but it’s only able to function properly when all those parts work together towards the same
objective. Holistic marketing concept enforces this interrelatedness and believes that a broad
and integrated perspective is essential to attain the best results.

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3. Questions for the plant Report

3.1Marketing Philosophy of the company

The Company’s marketing philosophy/strategy focuses on implementing an efficient distribution

network along with creative and innovative marketing. It gives special attention in training and
upgrading the skills and competence of employees and partners. As a company its philosophy tends to
production and selling concept and societal and marketing concept partly used.

3.2 Market Segmentation Base

The market segmentation of Mekelle Moha Soft Drink Company uses geographic market
segmentation base say for example the Moha’s soft drink plants are placed in eight (Nifas Silk,
Teklehaimanot, Summit, Gondar, Dessie, Bure, Hawassa and Mekelle) location of the country
Ethiopia -this is because Moha need to control all the market’s demand to get the market easily
with no competitor

3.3 Product System and Mix

3.3.1 product Items (Types)

Product items are the number of item type that produces in the company. Mekelle Moha soft
drink plant has five items/types of products list as follows:

 Pepsi Cola,

 Mirinda Orange,

 Mirinda Tonic,

 Mirinda Apple, and

 7-Up.
3.3.2 Product Lines

Product line is the number of lines in which products flow to produce in their item type and/or
volume. Mekelle Moha soft drink plant has one product line that is soft drink (one beverage line)
since it produces pepsi cola, mirinda orange, mirinda apple, mirinda tonic and 7-up) in one line.

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 3.3.3 Product line Length

Product length refers to the total number of products in a firm’s product mix. Mekelle Moha Soft Drink
plant has five product-line lengths, which are Pepsi Cola, Mirinda Orange, 7-Up, Mirinda Tonic, and
Mirinda Apple to produce and bottle these items. Mekelle Moha soft drink plant produces the same
volume that is 300ml and uses glass storage for the final products.

3.3.4 Product line depth

Product length refers to the number of variations within a product line. Mekelle Moha soft drink
plant produces like listed above that have the same volume, that is 300ml and it has five production-
line depths (Pepsi cola, Mirinda orange, Mirinda apple, Mirinda tonic and 7-up)

3.3.5 Product Mix Width

Product mix width refers to the number of product lines that is offered by the firm. As we have
seen in the above topics and sub-topics report, Mekelle Moha Soft Drink plant has one product-
line width.

3.4 Product Mix Pricing

About the market philosophy/concepts and segmentation, that we have discussed above, Mekelle
Moha soft drink plant pricing strategy of the is to sale the products with a price that could be
reasonable price to the customers and to maintain a stable profit margin. After setting affordable price
to the customers the factory achieves a profit in the extended.

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 Figurative illustration

Product width

Plant: soft drink beverage

Production line 1 Product with = 1

Pepsi cola Product length = 5

Product depth = 1
Mirinda orange
Product depth

Mirinda tonic

Mirinda apple

7-up

Product length