SAMARA UNIVRSITY

College Of Business and Economics

Department Of Management
Program: - Post Graduate
Course: -Marketing
MOHA Soft drinks Industry S.C

““Ask or Dare for more.”

By: -

Ethnan lulseged SU1300136

Section: - B

Submitted to: - Demssie Amsalu

Assistant Professor, Department of Management

Submitted Date: -26/12/2021

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Table of Contents
Executive Summary..........................................................................................................................1

1. Company overview...................................................................................................................2

1.1 Company History...................................................................................................................2

1.2 Company’s Objectives...........................................................................................................3
1.3 company’s product mixes......................................................................................................3
2. Competition Overview..............................................................................................................4

3. Target Market............................................................................................................................7

4. Segmentation.............................................................................................................................7

4.1. Geographic segmentation......................................................................................................7

4.2. Demographic segmentation...................................................................................................7
4.2.1. Age and Life-Cycle Stage...............................................................................................8
4.2.2. Gender.............................................................................................................................8
4.2.3. Psychographic segmentation...........................................................................................8
4.2.3. Lifestyle...........................................................................................................................8
4.2.4. Personality.......................................................................................................................8
4.3 Behavioral segmentation.........................................................................................................9
4.3.1 Occasions.........................................................................................................................9
4.3.2. Benefit sought.................................................................................................................9
5. SWOT.......................................................................................................................................9

6. Marketing Research..................................................................................................................9

6.1 Marketing environment.........................................................................................................9

6.2 Marketing mix.....................................................................................................................10
6.2.1 product......................................................................................................................11
6.2.2 Place.........................................................................................................................12
6.2.3 Price..........................................................................................................................12
6.2.4 Promotion.................................................................................................................12
7 Conclusion...........................................................................................................................13
8 Recommendation.................................................................................................................14
9 Reference.............................................................................................................................15

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Executive Summary
Mohammed Hussein Ali Alamoudi (MOHA) Soft drinks Industry Share Company is one of the
two soft drinks producers in Ethiopia. It is a sole producer of Pepsi cola products in the country
under the franchise agreement with Pepsi-Co. International. The soft drink products which the
company currently produces are Pepsi cola, Mirinda orange, Mirinda apple, Mirinda tonic, and
7up. It also produces Kool mineral and Tossa Carbonated waters. The soft drinks are available in
300ml returnable bottles. Some of these products are also available in polyethylene (PET) bottles
package, the content of which are ranging from 0.5llitre- 1.5litre.

An evaluation of the company’s internal strengths and weaknesses and external opportunities and
threats served as the foundation for this strategic analysis and marketing plan. The plan focuses
on the company’s growth strategy, suggesting ways in which it can build on existing customer
relationships, and on the development of new products and/or services targeted to specific
customer niches. Since Star Software markets a product used primarily as a promotional tool by
its clients, it currently is considered a business-to-business marketer.

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 1. Company overview

1.1 Company History

Nefas Silk Pepsi cola, plant in Ethiopia, is the first Pepsi cola plant in Ethiopia and was
established in 1966 as Share Company with an initial capital of 1 million birr. The capacity of the
bottling line at that time was 20000 per hour (bph). 1986, the plant was renovated and expanded
to a capacity of 50000 bph with twin fillers. Total renovation and expansion investment cost was
birr 6647944.00.

T/Haimanot Pepsi cola plant was established in 1961 as „Saba tej‟ share company but
nationalized in 1975 replacing the old line a stated predicating Pepsi cola, Miranda and team
brands in January 1978.Gondar Pepsi cola plant, before nationalization was owned by private
individual produced wilkfite water. The Ethiopian beverage corporation made a new feasibility
study on Pepsi cola product which got the blessing of the government to erect the currently
operating plant in 1986. Dessie plant, Dessie soda industry was established in 1952 by and
individual owner 1979. The plant discontinued other soda products and start producing Pepsi
cola, Miranda brands and carbonated Tossa water. Hawassa Pepsi cola plant is a new Pepsi cola
plant with capacity of 36,000 bph of 300 ml .it was established in August 2007 which can cover
the demand of the southern region.

MOHA (Mohamed Hussein Ali_Amoudin) soft drinks industry s.c. was formed and registered
under the commercial code of Ethiopia on the 15th of May 1996. this company was formed after
the acquisition of four Pepsi cola plants located at Addis Ababa Nefas silk & T/Haimanot Gonder
and Dessie which were purchased by sheik Mohamed Hussien Ali Almoudin on the 18th of
January 1996, through BID which was tendered by Ethiopian privatization agency. The handover
of the factories was finalized on the 4th of April 1996. Since it dates of establishment it is
producing and distributing five types of soft drinks namely: Pepsi, Miranda orange, 7up, Mirinda
Apple, Mirinda tonic

According to MOHA Soft Drinks Industry S.C working document (2017:7) the company is one
of the biggest manufacturing industries in Ethiopia. It was established on May 15, 1996,

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acquiring Nifas Silk Plant, Tekle Haimanot Plant, Gondar Plant, and Dessie Plant from the
Ethiopian Privatization Agency with paid capital of Birr 108,654,000. The Company currently
has eight operating units including Summit Plant, Bure Plant, Mekele Plant and Hawassa Plant in
the Southern Nations & Nationalities People's Region.

1.2 Company’s Objectives

The business purposes of MOHA soft drinks Industry S.C. as stipulated in the Memorandum of
Association are: -

 To manufacture, buy, sell, bottle, distribute and deal in non-alcoholic beverages, mineral
and aerated waters by ingredients thereof in Ethiopian and elsewhere.
 To manufacture, sell and distribute bottles, corks, corkscrews all type of crates.
 To manufacture, sell and distribute carbon dioxide.

1.3 company’s product mixes

The Product Mixes of the Company

 Pepsi cola (Cola flavor)

 Merinda (Orange flavor)
 7 up (Lemmon flavor)
 Merinda Tonic
 Tossa Carbonated water (not mineral water)
 Merinda Apple
 Bure Kool Water
 PET Bottles Soft Drinks and Kool water
 Keg Soft drinks and Kool Water

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 2. Competition Overview

Mineral Water and Soft Drinks

Overview: Thanks to its rich hydrological resources, Ethiopia has a long tradition in mineral
waters, the first bottling plant having been established back in the 1930s. Soft drinks are a more
recent phenomenon, with the first operations dating from the 1950s. Since the fall of the previous
regime, the demand for both mineral water and soft drinks has been on the rise, with a
particularly marked increase during the last few years. At present, the Ethiopian market for
mineral water can be estimated at some 45-50 million liters, while sales of soft drinks are in the
order of 40 million crates of 24 bottles each. The combined value of mineral water and soft
drinks sales appears to be in the order of USD 70-80 million per year. Both mineral waters and
soft drinks are mostly produced locally for the domestic market, and both imports and exports are
negligible.

Main Operators: At present, there are 10-15 firms active in mineral water and/ or soft drinks, of
which four play a major role. All enterprises are fully, or majority controlled by private operators
and there is a significant presence of foreign investors. The salient features of the leading
operators are summarized below.

Table 7 Basic Features of Leading Mineral Water/Soft Drinks Companies

Companies Establish Ownershi Products/Brands Comments

ment p

Ambo Mineral 1938 Private Mineral water (Ambo) Nationalized in the 1970s and
Water (privatized modernized in the early 1990s
in 2007)

Babile Mineral 1953 Private Mineral water (Babile) Nationalized in the 1970s and
Water (privatized modernized in the early 1990s
in 2007)

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East African 1995 Private Soft drinks (Coca Cola, Two plants, in Addis Ababa
Bottling (EAB) Sprite, Fanta) and (privatized in 1998) and Dire
mineral water (Crystal) Dawa (greenfield operation).

Moha Soft 1997 Private Soft drinks (Pepsi Cola, Part of the MIDROC Group.
Drinks 7Up, Mirinda Orange & Three plants, in Addis Ababa,
Tonic) and mineral & Bure (privatized in 2004) and
purified water (Kool) Hawassa

Source: Company websites and press reports.

Market Definition

From the viewpoint of consumers, mineral water and soft drinks are different products,
displaying a limited degree of substitutability. However, on the supply side, the two lines of
business share several features (same distribution channels, same or similar equipment, etc.).
Therefore, for the purpose of this study, they can be treated as a single market. In geographical
terms, the big brands are evenly distributed across the country, whereas small and medium sized
operators tend to have local or regional markets (e.g., Babile Mineral Water, based near Harar, is
selling primarily in eastern regions).

Competition-related Aspects

Presence of state-owned enterprises: The state has almost completely withdrawn from the mineral
water and soft drinks business. After several unsuccessful attempts, the last two companies in
state hands, Ambo and Babile, were eventually privatized in 2007. At present, the state, through
PPESA, only retains a minority shareholding (32 percent) in Ambo Mineral Water.

Concentration and asymmetry among operators: The soft drinks business is largely dominated by
two heavyweights, namely East Africa Bottling, the Coca Cola franchiser and subsidiary of the
homonymous group operating across the whole of East Africa, and Moha Soft Drinks, the Pepsi
franchiser, part of the MIDROC Group. While precise data are not available, Moha is generally
accredited with the leading position, accounting perhaps for 60 percent of the market4. However,
EAB recently completed an expansion program that raised production capacity from 14 to 18-19

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million crates, and this may alter the situation. Likewise, the arrival in the Ethiopian market of
the beer and soft drinks giant SABMiller (now a shareholder in Ambo along with Southwest
Development) may also lead to changes in the market. In the mineral water market, Ambo is by
far the leader, usually accredited with a market share of 85 percent, with the rest subdivided
among the two soft drinks producers and other, smaller, players. But also, in this sector the
leading company’s position might be threatened by new entrants. Moha is currently building a
new mineral water plant in Hawassa, which is expected to produce an average of 18 million liters
per year.

Vertical integration and entry barriers: A direct access to water sources is a must for mineral
water producers and highly recommended for soft drink producers. However, there is no scarcity
of natural springs in Ethiopia and access to water resources is not a significant constraint. As a
matter of fact, the government appears to have issued several permits that exceeds the number of
enterprises in operations, indicating a liberal attitude on the matter. In the soft drinks business,
the main barrier is obviously represented by the possibility of becoming a franchisee of one of the
leading brands. Therefore, in most countries the industry tends to become a duopoly, centered on
the Coke and Pepsi franchisees, with producers of local brands operating at the fringes. The
amounts required for initial investments vary, depending upon the nature of operations. A small-
scale water bottling plant aimed at serving the local/regional market can be set up with modest
investments, even less than USD 1 million if reliance is made on second-hand equipment (these
According to press sources, there could be an indirect linkage between EAB and Moha. In 2008,
an associate of Sheik Mohammed Al-Amoudi (owner of MIDROC and, hence, of Moha)
reportedly bought a minority shareholding in one of the companies who control EAB (see “Coca
Cola hits the brake afflicted by foreign currency shortage”, Me Reporter, 14 March 2009).
However, the traditional rivalry between the two world brands does not seem to allow for any
type of concerted action.

days, second-hand bottling lines and filtering equipment can be bought at rock- bottom prices
from many EU suppliers). Instead, the establishments of large-scale operations, including the
logistics to distribute products nationwide, are much more expensive. For instance, the
modernization plan recently implemented by EAB involved an investment of some USD 12
million.

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Alleged Anticompetitive Practices

Soft drinks companies tend to impose exclusivity agreements upon resellers of their products,
thereby limiting opportunities for new entrants. The issue of exclusivity has been debated in a
few antitrust cases (including the famous settlement agreement between the European
Commission and Coca Cola) and, in general, a tendency towards the prohibition of exclusivity
agreements has emerged. In Ethiopia, the enforcement of such a prohibition is made more
difficult by the very nature of some players, namely the fact of Moha being part of a
conglomerate with interests also in some distribution trades (and, in fact, Coca Cola is not
available at Sheraton Hotel). In late February to early March 2009, signs of a severe shortage in
the soft drinks market started to emerge, and press reports indicated that in some cases this had
led to a considerable increase in prices at the retail level. The fact that the shortage Reacted both
Moha and EAB at the same time inevitably raised the suspicion of an agreement among the two
competitors to be able to increase prices. However, as it became abundantly clear in the
subsequent weeks, the shortage was largely due to technical reasons (shortage of corks),
combined with difficulties in importing raw materials because of the unavailability of foreign
exchange, with the exclusion of any type of anticompetitive behavior5.

3. Target Market
4. Segmentation

The major segmentation variables are geographic, demographic, psychographic, and behavioral
segmentation (Scribd Inc., 2018).

4.1. Geographic segmentation

Geographic segmentation calls for dividing the market into different geographical units such as
regions, cities, or neighborhood. Moha has a countrywide network of product distribution but the
company segments more in urban and suburban areas as compared to rural areas.

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4.2. Demographic segmentation
In demographic segmentation, the market is divided into groups on the basis of variables such as
age, family life cycle, occupation, education, religion, race, generation, nationality, and social
class. Demographic

variables are the most popular base of Moha Company for distinguishing their customer groups.
The reason is that consumer wants, preferences, and usage rates are often associated with
demographic variables. Another is that demographic variables are easier for Moha to measure
because they can evaluate or conduct surveys for the demographic segmentation.

4.2.1. Age and Life-Cycle Stage

Moha product Consumer wants, and abilities change with age. Age and life cycle can be tricky
variables because there are different needs and wants as to accord to the age of a person. The
main sector in which Moha Company targets is the youth because there is a much need of
refreshment and energizers to cope up with their daily activities.

4.2.2. Gender

Gender is also an issue needed to be given prior by Moha. Men and women tend to have different
attitudinal and behavioral orientations, based partly on genetic makeup and partly on socialization
practices. Moha targets both genders with its wide variety of drinks. This market is relatively
large and is open to both genders, thereby allowing greater product diversification.

4.2.3. Psychographic segmentation

In psychographic segmentation, Moha buyers are divided into different groups on the basis of
lifestyle or personality or values. People within the same demographic group can exhibit very
different psychographic profiles, for that reason Moha Company designed and made product
which are suitable for their personality.

4.2.3. Lifestyle

People exhibit many more lifestyles than are suggested. People differ in attitudes, interest,
activities, and these affect the goods and services they consume. Moha Company presented
products which are suitable for modern, busy life style (shortage of time) and mobile generation.
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4.2.4. Personality

MOHA products with a brand personality that corresponds to a target consumer personality.

4.3 Behavioral segmentation

In behavioral segmentation, Moha Product buyers are divided into groups on the basis of their
knowledge of, attitude toward, use of, or response to a product. Many marketers believe that
behavioral variables-occasions, benefits, user status, usage rate, loyalty status, buyer-readiness
stage, and attitude are the best starting points for the construction of market segments.

4.3.1 Occasions

Moha product consumers can be distinguished according to the occasions when they develop a
need, purchase a product, or use a product. Occasion‟s segmentation can help firms expand
product usage.

4.3.2. Benefit sought.

Sometimes, for the promotion strategy of Moha Company introduces prizes in the top cover.

5. SWOT
6. Marketing Research
6.1Marketing environment

1. Competitive forces. The competition in this industry is very strong on a local and regional
basis but somewhat weak nationally. Sales figures for the industry are difficult to obtain
since the EAB and Moha concurred the business on a national scale. All rights reserved.
As franchised based is growing rapidly.
2. Economic forces. Nationwide, many companies have reduced their overall promotion
budgets as they face the need to cut expenses. However, most of these reductions have
occurred in the budgets for mass media advertising (television, magazines, newspapers).
While overall promotion budgets are shrinking, many companies are diverting a larger
percentage of their budgets to sales promotion and specialty advertising.

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 3. Political forces. There are no expected political influences or events that could affect the
operations of the industry .
4. . Legal and regulatory forces. In recent years, more attention has been paid to “junk mail.”
A large percentage of specialty advertising products are distributed by mail, and some of
these products are considered “junk.” Although this label is attached to the type of
products Star Software makes, the problem of junk mail falls on the clients of Star
Software and not on the company itself. While legislation may be introduced to curb the
tide of advertising delivered through the mail, the fact that more companies are diverting
their promotion dollars to specialty advertising indicates that most companies do not fear
the potential for increased legislation.
5. Technological forces. A major emerging technological trend involves personal
information managers (PIMs), or personal digital assistants (PDAs). A PDA is a handheld
device, similar in size to a large calculator, that can store a wide variety of information,
including personal notes, addresses, and a calendar. Some PDAs even could fax letters via
microwave communication. As this trend continues, current software-based calendar
products may have to be adapted to match the new technology.
6. Sociocultural forces. Today, consumers have less time for work or leisure. The hallmarks
of today’s successful products are convenience and ease of use. In short, if the product
does not save time and is not easy to use, consumers will simply ignore it. Software-based
calendars fit this consumer need quite well. A software-based calendar also fits in with
other societal trends: a move to a paperless society, the need to automate repetitive tasks,
and the growing dependence on computers, for example.

6.2 Marketing mix

The marketing mix strategy is a complex practice that involves the quality and standard products,
the establishment of various and efficient distribution networks, popularizing the product with
fair prices and delivering continuous services after distribution. In this connection, the company
has done a lot regarding marketing mix strategies of its products. The marketing mix strategy of
the company is effectively practiced, and it is customer oriented. This indicates the MOHA’s
marketing mix strategy is effectively implemented by its employees to achieve its objectives

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because the workers showed great commitment and dedication to keep the plant and its product
popular. These strategies will effectively be accomplished by improving the type, quality, and
quantity of the products, by discarding all outdated machines and substituted them with modern
and state of the art technologies, and by using the same bottles used by all products and these do
not get broke, bored, or eroded easily: the bottles are also distributing in strong and handy
creates.

The company also implementing the marketing mix strategies effectively by advertising the
product by erecting artistic notice board in towns, at main public squares, sight-catching places,
major outlets and inlets, public service stations and on vehicles, by using modern distribution
networks to sufficiently supply and distribute to all parts of the country at an affordable prices, by
contributing to popular events by means of sponsoring various exhibitions, music festivals, public
gatherings, research forums, mass media programs etc. and by providing training in the country
and abroad to marketing personnel’s /staffs and thus improving their capability and capacity.

The company also use a marketing mix strategy that will check a list in which facilitate the
marketing mix strategies to be implemented in effectively. These are: by define what the
company is, identify the products that the company provides, identifies the target buyers/end
users, and describes the unique characteristics of the products that distinguish them from the
competition, define whether the pricing will be above, below, or at parity with the competitors
and establish whether the company will lead, follow, or ignore changes in competitors' pricing,
identify the distribution channels through which the products will be made available to the target
market/end users, describe how advertising and promotions will convey the unique characteristics
of the products, describe any research and development activities or market research plans that
are unique to the business, describe the image or personality of the company and its products.
These shows the employees can accomplish their duties easily by referring the marketing mix
strategy check lists as a result the marketing mix strategy of the company will be implemented
successfully.

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 6.2.1 product

Company should be eager enough to keep their customers satisfied through their product strategy
because the most important asset for the organization is the buyers themselves. Good product
strategy can build good brand image which keeps loyal customers happy.

in addition to those products currently offered by the company, it has been found that detailed
marketing research has been conducted to expand the size of the product lines by adding some
additional products.

6.2.2 Place

regarding to place or Location perspective which include on time delivery, accessible to different
place, good store capacity and others attributes the customers comprehended as follows
considering those survey.

 The products are not delivered on time and with specified requested quantity.
 The products are not available in the stock or delivered with short period of time.
 There are no fair distributions of the products.
 Retail Customers indicated that the product distribution of the location not convenient to
customers.
 The product distribution strategies of the company through channel of a wholesaler that
employs to make its goods available to retail customers. Thus through middlemen the
company’s products cannot be easily reached to retail customers.

6.2.3 Price 

The basic principle in pricing is that the relationship between the price of a product and the value
it gives to customers has to be fair and proper. Also, the pricing decision of a factory must be
coordinated with product design, distribution, and promotion decisions to form a consistent and
effective marketing program.

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the objective of the pricing strategy of the company is to sale the products with a price that could
be affordable to the customers and to keep a healthily profit margin (after setting affordable price
to the customers the factory achieves a profit in the long run).

6.2.4 Promotion

Regarding to promotion which includes applicability of major promotion mix connection with the
customers and Medias and other promotional features the customers comprehended as follows
considering those survey.

 Majority of the retail Customer’s responses shows that the promotion used by the
company does not motivate or persuade to buy.
 Promotion strategies used by the company are less popular the major promotion
strategies used by the company were newspapers and radio sometimes. However,
in personal selling, public relation, publicity, direct marketing and event and
experience the practice is moderate.
 The company does not use social Medias to promote products.

7 Conclusion
Marketing mix plays a significant role in marketing of the product and management of marketing
mix is a key marketing activity and proper choice of marketing mix is a significant to provide
higher customer satisfaction at a reasonable price (Jobber and Fahy, 2009). Consequently, the
following conclusions have been reached from the analysis made in the previous chapters.
 The study indicated that product shortages were appeared during the peak seasons.
Therefore, retail customers were dissatisfied during the peak seasons of products
unavailability in the markets. Therefore, appropriate corrective measures must take to
enhance product availability during peak seasons of company’s products.
 The study indicated that price charged by the company is not fair and not reasonable. The
price charged by the company is about the same as competitors, but retail customers
indicated that the price of the products not fair and reasonable. The study also shows that
the pricing policy adopted by the company is both costs based, and competition based. So

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 that it can be concluded as the price of MOHA Soft drinks S.C not fair and not
reasonable.
 The Company Location perspective (Place) that does not meet the needs of the customer’s
majority of the retail customers stated that the company is less popular destinations to
serve customers. So that it can be conclude as the place (distribution) used by the
company less popular destination and does not satisfied customers.
 The company is promoting its products using television, newspapers broachers and fliers.
The study showed that television and broachers are found to be the most widely used
promotion tools. The billboards used by the company are not effective in promoting
customers as they are not located on visible sites. Internet, website, and social medias are
not mostly used it promoting the company. So that it can be conclude as promotion made
by the company found less attractive and it is also less attractive compared to competitors,
consequently its roll in attracting customer is not satisfactory.

8 Recommendation
The following recommendations and suggestions are brought forwards based on the conclusions.
made earlier to allow the managements of the company to take appropriate actions to resolve the
problems identified in the study.
 Although the application of four “P” s of Marketing Mix practices to manage the
marketing of the company. As the study shows that the researcher also tries to investigate
about product shortage in the peak seasons the result shows that product shortage was
appeared therefore as the researcher recommend that product shortage during peak
seasons may create unsatisfied customers. Those unsatisfied customers were a chance to
shift to other substitute products. So that company should be avoiding such types of
product shortage from the market.
 As confirmed in the study price is an important variable in making decision to buy. The
company should seriously consider this situation in order that it could gain the advantage
of setting fair and affordable market price. Because doing so would enable the company
to boost the market share.
 As the study shows place or Location perspective are the main and critical in company
distribution. The researcher recommended that the company location perspective system

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 problems lead to unsatisfied on retail customers. This means that company should
implement a unique and appropriate distribution channels to serve customers.
 From the results of study promotional mixes, the company mostly used TV
advertisement, radio, and newspapers. Therefore, the company should create awareness
to customers using different promotional mix elements such as social Medias, billboards,
print ads, and exhibitions to increase product awareness, increase sales, and retain
customers and overall company value.

9 Reference
Assessment of Marketing Mix Strategies of the Hawassa Millennium Pepsi-Cola Plant. Journal of
Marketing and Consumer Research www.iiste.org ISSN 2422-8451 An International Peer-
reviewed Journal DOI: 10.7176/JMCR Vol.52, 2019

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