1.0 company profile (MOJO)
1.1
Vision
Any company’s vision is actually the dream to which
the company always strives to reach where it may become possible or not. Here
it is also not apart for Akij Group. Expanding the business in the abroad fully
and becoming one of the market leaders internationally- this company thinks in
this way as a part of their vision.
1.2 Mission
The mission of Akij Group is to be the market leader
by 2009 through their best effort, suitable and competitive marketing strategy
and the consumers support. Now they are in the position of challenger and their
vision focuses on those missions, goals and objectives which will make them
able to be the leader from the challenger to the leader in the market.
1.3 Goal
The company’s goal is to maximizing the market share
in their every categorized business including Akij Food & Beverage Ltd, Akij Cement Company Ltd, Dhaka Tobacco Industries, Akij Textile Mills Ltd and Akij Particle Board Mills Ltd.
1.4
Objective
The objective of Akij Group is to provide the quality
products and services in such a form that the customers demand.
1.5 Strategy
The company always believes in pull strategy rather than
push strategy. They first of all find out the customers demand about how, when,
where, and what type of product ad services they want. Then according to that
they provide their services at the right place and in the right time.
2.1 Outline of
Akij Group
History of Akij Group stretches back to later part of
the forties. In its infancy, the Group started in humble way with jute trading
which was known as the golden fiber of the country, earning highest amount of
foreign exchange. Akij Group’s ceaseless efforts with dynamic management and
support from our numerous clients have led our Group in diversifying its
business activities. In the second phase, the Group went into manufacturing
handmade cigarettes popularly known as bidis. This sector gave a real boost to
the revenue earning of the Group as well as making a substantial contribution
to government exchequer. With the passage of time, the Group undertook new
ventures and presently there are 15 units of industries under its umbrella like
cigarettes, handmade cigarettes, printing & packaging, textiles, hand
board, pharmaceutical, leather processing and real-estate business are in
operation, catering jobs for more that 32,000 people in various categories. The
Group has plans for setting up more projects. The projects are already in
pipeline. Foreign investors have shown keen interest in joining with us for
joint ventures. The matter is under our active consideration and will hopefully
soon mature. This will also help the nation’s economy growth and will create
job opportunities to various professionals.
Akij Group is also involved in socio-cultural
activities. The Group has been operating a sizeable orphanage free of charge in
district town. The Group has also acquired a modern mother & children
hospital previously owned by Save the Children (UK). The hospital is being
operated as a non-profitable concern by Ad-Din Welfare Trust.
Akij Group |
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Composition
of Akij Group of Companies Ltd.
2.2 Akij
Food & Beverage Ltd.
Cheeky Monkey is the brand name of banana chips produced
from this factory. It also is becoming popular chips in Bangladesh. Most of our
Raw materials come from various foreign countries. The quality is very strictly
controlled. At every stage, non standard products are rejected.
For outstanding performance in export, the company
achieved “The National Export
Trophy-2001 (Gold)” for Navy Special Filter Cigarette export and “The National Export Trophy (Silver)”
for hand made cigarette (popularly known as bidi) export as well as a pioneer
employment provider with employment strength of 60,000 staff and officer in
different categories.
2.4
Marketing
Government ban on tobacco and anti tobacco campaign
has induced our marketing team to become innovative in their marketing strategies.
Marketing operations at Akij Corporation Ltd. includes a range of activities
like Brand Management, Trade Marketing and Distribution and Marketing Research.
The Human Resource department is responsible for
developing and sustaining a workforce for Akij Corporation Ltd. There is
separate Human Resource department wing for Akij Corporation Ltd for running
day to day administrative work of Marketing Department.
2.6 Get in
touch with Akij Group of Companies:
Akij Chamber
73, Dilkusha
Commercial Area
Dhaka
– 1000, Bangladesh
Phone
🙁 +880-2)9563008-9, 7169017-8
Fax
🙁 +880-2)9564519
e-mail:info@akij.net
3.0 Profile of the Segmentation And TargetMarket
3.1
Segmentation:
Akij group has segmented according to the homogenous segmentation
where the consumers represent the same type of demographical, psycho graphical,
cultural and social factors. Their attitude, status and lifestyle focuses on
same perspective. According to the following factors the segmentation of MOJO
has been done-
3.1.1 Age
MOJO’s primary target was only the young generation
where the age may vary from 16-27. But it is not limited within this age. It
has also spread out among the children noticeably as well as the people above
27 years.
3.1.2 Gender
Both young boys and girls are the target market for
the MOJO. It is not specially made for any particular gender what actually
happens for any type of cola drink.
3.1.3
Occupation
Occupation is not clearly defined for the target
market of MOJO; however where the age varies within the young generation as
well as children so it can easily be understood that most of them will be
whether student or doing any job or business.
3.1.4 Income
Actually MOJO has emphasized on the lifestyle and
behavior of consumers more rather than the income. They think that it is really
affordable to buy a MOJO (especially 250 ml) for their target market where
their income is minimum 5000 and for the students it may be less than that.
3.1.5
Location
Almost all the places of urban and rural area are
under the MOJO’s distribution. Especially in each and every part of the Dhaka
and Chittagong city MOJO is available. The company has emphasized on Dhaka
where more than half of total sales (52%) comes from only Dhaka.
3.1.6 Social
Class
MOJO is targeted for the upper part of the lower
class, middle class, upper middle class, and lower part of the upper class of
the society.
3.1.7
Lifestyle
The targeted market of MOJO is basically young generation
who like gossiping, chatting, hanging with friends, making fun, watching
movies, listening music.
MOJO has also focused on their customer’s lifestyle in
product, advertising and packaging.
3.1.8
Personality
The customers of the MOJO are mostly action oriented
people which include especially the experiencers. It also focuses the
personality of the status oriented people including achievers and strivers.
3.2 Target
Market:
Cola drinks usually follow an undifferentiated
marketing strategy to target their consumer. Keeping this fact in mind, we
conducted a sample survey by selecting random sample from different places. The
following discussion will attempt to analyze the profile of the target market
based on the sample group.
3.2.1 Age
Age is the major determinants in targeting the
consumers. MOJO reflects the Bangladeshi culture and it represents youth. From
my survey, I have found that MOJO is most preferred in the age group between
20-25 years (85% of 100). Moreover, the least MOJO preference comes from two
age groups: 25-3and 35-45 years, about 1%.
Figure 2:
Age distribution of target customer
3.2.2 Sex
Beverage is used for thirst-quenching purpose and this
product is gender neutral, meaning there is no such kind of obligation to
consume the product for male or female. However, from our survey outcome, we
have found that 71% of the consumers are male and 29% are female from 100. All
the respondents are from urban location.
Figure 3: Gender distribution of target
customer
3.2.3
Occupation & Income
Consumers’ purchasing pattern, lifestyle and status
largely depend on their occupation and average monthly income of the family.
The social class of the target respondents was determined by their income or
taking from family. MOJO is a low involvement product and it is good enough to
consume by upper and middle class. From the survey respondents, students are
the most who purchase MOJO and their income level is less than 5000 taka.
Business people, private service personnel and other earning people consume less
amount of MOJO although their income is comparatively high than the
students.
Figure 4: Occupation diversity of target
custom
Figure 5: Income/taking variation of
target customer
4.0
POSOTIONING STRATEGY
The term positioning refers to placing a brand in that
part of the market where it will receive a favorable reception compared to
competing products. My report is on “MOJO” cola and we have kept this name out
of the selection criteria. The motive was to see whether people recommend MOJO
or not.
Figure 16: MOJO’s position in target customers’ mind
5.0 Product profile
5.1 Product:
MOJO Cola
It’s Inside “U”
MOJO was launched on 14th April, 2005 at Pohela Baishakh. Introduction of the
brand MOJO became very popular among its consumer because of the high quality
and intensive distribution in every nook and corner of the country.MOJO focuses
on mainly young people who like the enjoyment and fun. The word “MOJO” has come from the word “Moja” (tasty). From the very beginning
of its launching the company has provided subsequent and continuous heavy
advertisement through different mess media. It has also given free samples to
the target market. It also did an exclusive road show and their exposing to the
customers during the Trade Fair 2006 was very much gorgeous. As a part of its
success it can be mentioned here that during this recent year the company
earned 54 crore only selling the MOJO where 52% of total sale has been made in
Dhaka city. That means it has been very much popular in Dhaka city than any
other division.
The product MOJO cola has come with the following
variations in the market-
- 250
ml bottle - 500
ml bottle - 1000
ml or 1 liter bottle - 150
ml can
The MOJO Cola has been made with a proper technology.
So there is no chance to occur fluctuation in taste. The cola drinks contain a
very strong taste which can compete with the market leader Coca-Cola and RC cola.
As a member of the Akij Food & Beverage, MOJO is manufactured in the
factory which is situated in Krishnapura, Dhamrai, Dhaka, Bangladesh. The
beautiful and colorful packaging of MOJO attracts the customer. It consists of
red, white, black, blue, yellow, and green and so on. It includes some everyday
aspects of our day-to-day life such as rickshaw, truck are plying on the road,
building, football, cricket ball, cell phone, antenna, electric wear, a boy
with a guitar. The size of bottle (specially the 250 ml) and can is handy which
the customers like most. The packaging also includes the ingredients of MOJO.
The word MOJO has been written in both English and Arabic.
The pay off line for MOJO is “It’s inside u”.
The ingredients that are used to make the MOJO are-
—Refined Sugar,
—Carbon Dioxide,
—Natural Flavor,
—Caramel Color,
—Acidulate,
—Caffeine etc.
Nutrition
facts per 100 ml are –
·
Energy = 43 k cl.
·
Fat =
0.00 gm
·
Protein = 0.00 gm
·
6.0 PROMOTIONAL ACTIVITIES
To establish a product in market companies need to
promote their product in front of the target customer. Now a day advertisement
has become the war field for the marketers. MOJO cola is also trying to fight
with their competitors in the field of advertisement. Nevertheless, we all know
that good advertisement is necessary to establish a product. Catchy
advertisement can ensure the success in the battlefield. After launching MOJO
cola trying to establish itself in the market and some of the cases they
succeed. Now we try to show how MOJO concentrating on their promotional
activities.
The MOJO Cola has
been targeted for the young generation is designed for fun loving young adults.
- Television,
- Newspaper,
- Radio
Today & Radio Furti, -
-
-
-
-
- Street/road
Show & Concerts – all are used for promotion of MOJO, - Sponsorship
of different special event such as reunion, - Free
sampling of MOJO has been done
in many Universities as operant conditioning to motivate the people to
make the second purchase. - MOJO has also gone for an innovative idea during this
Cricket World Cup Cricket. They have also made the world’s largest cricket
bat (70 feet), which has created a big attraction of the target customers.
6.1 current Promotional Scenario OF MOJO
In our country, marketers do promotional activities
through billboards, TV ads, sponsorship, newspaper ads, sales promotion, point
of purchase ads and distribution. In few of the cases, MOJO cola is ahead of
the competitors and in few cases, they are not up to the mark. At first, we
will describe the cases where MOJO cola is still behind their competitors, what
they are doing, and what will change their environment.6.2 Suggestive Promotional Tools
6.2.1 Billboards
In this case, MOJO cola is still beside of their
competitors. We can find out that the percentage of MOJO cola’s billboard ads
are very little with compared to their competitors. Around the country, they
failed to bring their concentration on it for this there is little awareness
among the people.As an example in Dhaka city, MOJO cola placed their
billboards in some places where it is very tough to attention of the target
customers.6.2.2 Newspaper Ads
The number of paper ads should
have to be increased. Otherwise, they cannot make mass people aware about their
product. It should also contain high imagery, relevant with product MOJO cola.Newspaper Ad
Operant Conditioning
Encouraging
the target customer to participate and win some attractive prizes by
consuming MOJO.This partial
consumption can lead to a permanent change in behavior in future6.2.3 TVCs
The frequencies of the TV ads
have to be increased. People who watch TV regularly are seeking for innovative
things made by the marketers. They pretty much bored with the traditional ads.
So if MOJO cola bring new thing with their ads them it will be a turning point
for their sale. People will get more interest in their product and as a result,
they can be the loyal customer of this product.So TV ads should be brought
with a new format, with more new things so that it can catch the target aspect
with the new one.Example # 1
Snap Shot from MOJO’s TVC
Classical Conditioning
As cricket
generate a positive response to us, associating cricket with MOJO through TVC
can increase the chance of generating the same positive response to the brand.Example # 2
Snap Shot from MOJO’s TVC
Classical Conditioning
As Bakharkhani (traditional food of Dhaka) generate a
positive response to us, associating Bakharkhani with MOJO through TVC can
increase the chance of generating the same positive response to the brand6.2.4
SponsorshipTill now MOJO cola make sponsorship of few events like concerts,
nabanno utsav, bangla noboborsho etc. they should include cyber café, canteens
of university, fast food shop and other places where people goes frequently. By doing so they can be with the target audience and we
will find more aware people.6.2.5 Sales
PromotionThey should in for massive sales promotion to attract
people from other drinks.6.2.6
Road ShowsWhen they first came in the market, they
arranged road shows in some prestigious universities in Bangladesh. Frequent
road shows can be effective for them. During world cup football and cricket
they arranged world cup mania, and if they do so once or twice in a year that
will be more helpful for them in the future.Most of retail shops use
refrigerators supplied by Soft Drink Company. The mail condition the retailer
faces that they must keep the corresponding soft drink (which company provides
refrigerators) first then they can keep some other thing. These refrigerators
are posted in a way that the people can easily recognize their brand. However,
MOJO does not have such type of arrangement. For this sometimes, we found that
MOJO cola is out of the refrigerators to make space for other drinks.On the other hand, MOJO
sponsors very few of the shop sign of the retail stores, cafeterias,
restaurants etc like other brands named Coca-Cola, Pepsi etc.There is a point to add: there was also a
demand-supply disorder at the point of the launching. As a result, it failed to
retain the booming demand that occurred due to the successful TVC. Although the
product has a moderate demand now a days it is not supplied accordingly. As a
result, retailers do not have the product. Sometimes consumers cannot buy it
when they want to, due to shortage of supply.They should supply their own refrigerators to the
retailers, so that the drinks can always be kept cool.
The supply of drinks should meet up the demands. If they supply less then people will fail to
purchase MOJO cola whenever they intend to buy them. Therefore, in this field
they need to bring their concentration.7.0 DISTRIBUTION OF MOJO
The
distribution of MOJO is strong enough as it is quite available in every
targeted area. To distribute this product the company follows the following
distribution channel-Manufacturer Wholesaler Retailer
Consumer
For
the product availability the customers can get MOJO at any place when they need
it. It is seen that this product has been successful to occupy the
refrigerators in the outlets so that is found chilled.The Distribution Channel Looks Like
Figure:
Distribution Channel of MOJO8.0
PRICING STRATEGYThe three different sizes of MOJO cola have been
priced differently.- 250
ml bottle = 12 tk. - 500
ml bottle = 20 tk - 1
liter bottle = 35 tk. - 150
ml can = 12 tk.
Here wholesalers take 0.5
-1.5 tk and retailers take 2.00-2.5 tk as profit. Again comparing to the
competitors product, the price is low enough to encourage the target market to
shift their brands towards MOJO.9.0
FUTURE PLAN REGARDING THE STRATEGYThe immediate marketing
goals are summarized in the following key objectives:1. Have a cumulative 1000000
customers base by the end of 2010.2. Set up a strong
distribution channel by careful selection and proper execution ofCompanies strategies.
3. Provide the most
attractive and affordable products and services to the customers.4. Aggressive market
promotion and branding through effective advertisement and Promotion.10.0 company
profile (rC COLA)10.1
VisionAny company’s vision is actually the dream to which
the company always strives to reach where it may become possible or not. Here
it is also not apart for Partex Group.10.2 Mission
The mission of Partex Group is to provide value at an
economic cost, progress in diversity, and continue to contribute to the growth
of industrialization in Bangladesh by being the market challenger.10.3 Goal
The company’s goal is to maximizing the market share
in their every categorized business including Partex Boards & Doors (Star
Particle Board Mills), Partex Furniture Industries Ltd, Danish Food Products,
Partex Beverage, Partex Plastics, Dhakacom (ISP), Partex Laminates Ltd, Amber
Pulp & Paper, Amber Cotton, Trading & Shipping.10.4
ObjectiveThe objective of Partex Group is to provide the
quality products and services in such a form that the customers demand.10.5
StrategyThe company always believes in pull strategy rather
than push strategy. They first of all find out the customers demand about how,
when, where, and what type of product ad services they want. Then according to
that they provide their services at the right place and in the right time.10.6 Outline
of Partex BeverageIn 1994, Mr. M. A. Hashem, Chairman of Partex Group
visited an International Trade Exhibition in the US, where he happened to meet
the executives of Royal Crown Cola Co. International. From then on he started
conceptualizing the idea of “RC” beverage brand in Bangladesh. With
international brand name recognition and quality he expected that it would gain
acceptability in the Bangladesh market. When he returned, a wide range of
marketing research was carried out by Partex as well as RC International. After
positive results, in 1996, the Corporate Head and the Directors formed Partex
Beverage Ltd. Mr. Ashfak Aziz (Rubel), one of the pioneers of the concept of
RC, was given the position of Managing Director. Funds worth Tk. 10 Crore were
raised as part of Equity from the Group. Although registered as a Public
Limited Company, no public offerings have been made as yet. The factory was
setup in Rajendrapur, 40km away from Dhaka city. The company commenced
commercial production on 6th October 1997, and RC was launched in Dhaka on 20th
October 1997. This is the story of how Partex Beverage Limited became the sole
official bottler of Royal Crown Cola Co. International. Now it has been almost
3 years since then, and a number of new products, in new and innovative
packages have been introduced to the market. Partex Beverage has also
introduced RC outside Dhaka into unexplored markets. We are proud to say that
we have stuck to our mission and are now worth over Taka 80 crore (US$ 16
Million).Partex Group
Partex
Boards & DoorsPartex
Furniture Industries LtdDanish
Food ProductsPartex
BeveragePartex
PlasticsDhakacom
(ISP)Partex
Laminates LtdAmber
Pulp & PaperAmber
CottonTrading
& Shipping
Composition of PARTEX Group of Companies
Ltd.10.6.1
Partex BeverageRoyal Crown Company Inc., originally called the Union
Bottling Works, was born in Columbus, Ga. in 1905. A young graduate pharmacist,
Claud A. Hatcher, began creating his own soft drinks in the basement of his
family’s wholesale grocery business. From these humble beginnings, Royal Crown
Cola Co. grew to be the third largest soft drink company in America.At first, the Hatcher Grocery Co.
purchased bottled drinks from a local bottler and resold them to its grocery
customers. As this part of the business grew, Mr. Hatcher insisted that the
bottler pay the company a commission or compensate him in some way for handling
the drinks. A dispute arose and Mr. Hatcher concluded that his company had
purchased its last case of drinks from an outsider. Henceforth, it would
produce and bottle its own drinks under its own labels. The first line of
beverages was named Royal Crown, and the first cola drink that he devised was
called Chero-Cola. Subsequent generations were to apply the Royal Crown
trademark to a cola, and it was to become so important that the corporation
would be renamed “Royal Crown Cola Co.” Shortly after the Hatcher
Grocery Company decided to engage in the manufacture of soft drinks, its
officials organized the wholly owned Union Bottling Works. The manufacture and
bottling of soft drink syrups continued within the framework of the Union
Bottling Works until 1912, when the newly organized Chero-Cola Co. took over
the business and vastly expanded it.Among the early products were Royal Crown Ginger Ale,
Royal Crown Strawberry, Royal Crown Root Beer and Chero-Cola. As the sales of
carbonated beverages by the Hatcher Grocery Co. became more important, it was
decided to incorporate the Chero-Cola Co. In 1912, a charter was granted by
Judge S. Price Gilbert in Muscogee County Superior Court of Columbus. The
company was to manufacture a line of syrups and flavour concentrates to be sold
to franchised bottlers who bottle and sell these concentrates and syrups under
trademarks owned by the Chero-Cola Co.In April of 1914, Chero-Cola Co. filed application in
the United States Patent Office to register its trademark, Chero-Cola. The
Coca-Cola Company then instituted a law suit that lasted for more than nine
years.In fact, litigation concerning the
use of the company’s trademark continued in one form or another until 1944 when
the final victory was won by Royal Crown Cola Co., setting for all times its
right to use the word “cola” in the name of its beverages.The years
1914 – 1920 showed steady, but at times, rapid growth in sales. Both profits
and company assets increased steadily.10.7 Get in
touch with Partex Beverage:Corporate
OfficeSena Kalyan Bhaban (16th Floor)
195 Motijheel C/A, Dhaka 1000
Bangladesh
Phone: +880.2.955.0555
Fax: +880.2.955.6515
E-mail: mail@partexbeverage.com
Jangaliapara (Banglabazar)
Joydevpur, Gazipur
Phone: +88.0171.600.665
Fax: +88.011.88192450
11.0 Profile
of the Segmentation And TargetMarket11.1
Segmentation:Partex group has segmented according to the homogenous
segmentation where the consumers represent the same type of demographical,
psycho graphical, cultural and social factors. Their attitude, status and
lifestyle focuses on same perspective. According to the following factors the
segmentation of RC Cola has been done.11.1.1 Age
RC Cola’s primary target was only the young generation
where the age may vary from20-35. But it is not limited within this age. It has
also spread out among the children noticeably as well as the people above 35
years.11.1.2
GenderBoth young boys and girls are the target market for
the RC Cola. It is not specially made for any particular gender what actually
happens for any type of cola drink.11.1.3
OccupationOccupation is not clearly defined for the target
market of RC Cola; however where the age varies within the young generation as
well as children so it can easily be understood that most of them will be
whether student or doing any job or business.11.1.4
IncomeActually RC Cola has emphasized on the lifestyle and
behavior of consumers more rather than the income. They think that it is really
affordable to buy a RC Cola (especially 500 ml) for their target market where
their income is minimum 5000tk and for the students it may be less than that.11.1.5
LocationAlmost all the places of urban and rural area are
under the RC Cola’s distribution. Especially in each and every part of the
Dhaka and Chittagong city RC Cola is available.11.1.6
Social ClassRC Cola is targeted for the upper part of the lower
class, middle class, upper middle class, and lower part of the upper class of
the society.11.1.7
LifestyleThe targeted market of RC Cola is basically young
generation who like gossiping, chatting, hanging with friends, making fun,
watching movies, listening music. RC Cola has also focused on their customer’s
lifestyle in product, advertising and packaging.11.1.8
PersonalityThe customers of the RC Cola are mostly action
oriented people which include especially the experiencers.11.2 Target
Market:Cola drinks usually follow an undifferentiated
marketing strategy to target their consumer. Keeping this fact in mind, we
conducted a sample survey by selecting random sample from different places. The
following discussion will attempt to analyze the profile of the target market
based on the sample group.11.2.1 Age
Age is the major determinants in targeting the
consumers. RC Cola reflects the Bangladeshi culture and it represents youth.
From my survey, I have found thatAge
Demand
15-25
6%
20-25
60%
25-35
20
35-45
10
Above 45
4%
11.2.2 Sex
Beverage is used for thirst-quenching purpose and this
product is gender neutral, meaning there is no such kind of obligation to
consume the product for male or female.Sex
Demand
Male
73%
female
27%
11.2.3
Occupation & IncomeConsumers’ purchasing pattern, lifestyle and status
largely depend on their occupation and average monthly income of the family.
The social class of the target respondents was determined by their income or
taking from family. RC Cola is a low involvement product and it is good enough
to consume by upper and middle class. From respondents, students are the most
who purchase RC Cola and their income level is less than 5000 taka. Business
people, private service personnel and other earning people consume less amount
of RC Cola although their income is comparatively high than the students.Demand
Student
76%
private service
8%
Business man
10%
other
6%
12.0
POSOTIONING STRATEGYThe term positioning refers to placing a brand in that
part of the market where it will receive a favorable reception compared to
competing products. RC Cola a single brnad name gives them benefits to play a
dominate role in the core segment. This strategy gives them the flexibility to
attract customers for other segments outside its core segments.Brand
percent
RC Cola
12%
Coca cola
54%
Pepsi
28%
Others
-
13.0 Product
profile
13.1
Product: RC ColaIt has been a long time that Partex Beverage has been
established at a beautiful site of Dhaka. It has come with the quality food
& beverage in Bangladesh. Among its beverages (RC Lemon, RC Orange, RC COLA
& Upper 10); RC Cola is the most popular drink among the young people as
well as the children for its fantastic packaging, TVC and good taste.RC Cola was launched on 25th June, 1998 with RC
Flavors (RC Cola, Royal Cloudy Lemon, Royal Orange, Upper 10) in 300ml Glass
bottle in Greater Chittagong, through 10 distributors. RC Cola focuses on
mainly young people who like the enjoyment and fun. The word “RC” has come from
the word “Royal Crown Cola”. On 24th August, 1998 Introduction of RC Flavors
(RC Cola, Royal Cloudy Lemon, Royal Orange, Upper 10) in300ml Glass bottle in Greater Noakhali. Four
Distributors were mobilized. On 28th October, 1998 just before the closing
stages of 1998, after assigning of few new distributors, PartexBeverage began distributing in Comilla, which added to
its penetration in the southernregion. On 26th March, 2000 just before the Asia Cup,
which was held in Dhaka, Partex Beverage added a feather to its cup, by
launching its own mineral water brand, MUM. It was introduced in food grade PET
in two sizes- 0.5 and 1.5 Liter. On 6th April 2002 Partex Beverage launched
their products in Sylhet, one of the largest markets in Bangladesh, with the
introduction of RC Flavors and MUM in PET. This PBL did by mobilization of
distributors of Danish Distribution Network. By this pointing time, Partex
Beverage had mobilizing a total of 101 distributors.The product RC Cola has come with the following
variations in the market-- 250
ml bottle - 500
ml bottle - 1000
ml or 1 liter bottle - 150
ml can
The RC Cola has been made with the latest technology.
So there is no chance to occur changeability in taste. The cola drinks contain
a very strong taste which can compete with the market leader Coca-Cola and
MOJO. As a member of the Partex Beverage, RC Cola is manufactured in the
factory which is situated in Joydevpur, Gazipur, Bhoui Mirzapur, ,Jangaliapara
(Banglabazar), Greater Dhaka, Bangladesh. The normal packaging of RC Cola
attracts the customer.The pay off line for MOJO is “The Freedom of Choice”.
The ingredients that are used to make the RC Cola are-
—Granulated Sugar,
—Carbon Dioxide,
—High Fructose Corn Syrup,
—Citric Acid,
—Gum Acacia,
—Caffeine etc.
Nutrition
facts per 500ml are –·
Energy = 129 k cl.·
Fat =
0.00 gm·
Protein = 0.00 gm·
14.0 PROMOTIONAL ACTIVITIES
All companies need to promote their product in front
of the target customer. Now a day advertisement has become the war field for
the marketers. RC cola is also trying to fight with their competitors in the
field of advertisement. Nevertheless, we all know that good advertisement is
necessary to establish a product. Catchy advertisement can ensure the success
in the battlefield. After launching MOJO cola trying to establish itself in the
market and some of the cases they succeed. Now we try to show how MOJO
concentrating on their promotional activities.The RC Cola has
been targeted for the young generation is designed for fun loving young adults.
- Television,
- Newspaper,
- Radio
Today & Radio Foorti, - Poster,
shop signs & Billboards, - Street/road
Show & Concerts – all are used for promotion of RC, - Sponsorship
of different special event such as reunion,
14.1 current Promotional Scenario OF RC
In our country, marketers do promotional activities
through billboards, TV ads, sponsorship, newspaper ads, sales promotion, point
of purchase ads and distribution. In few of the cases, RC cola is ahead of the
competitors and in few cases, they are not up to the mark. At first, we will
describe the cases where RC cola is still behind their competitors, what they
are doing, and what will change their environment.14.2 Suggestive Promotional Tools
14.2.1 Newspaper Ads
The number of paper ads should
have to be increased. Otherwise, they cannot make mass people aware about their
product. It should also contain high imagery, relevant with product cola.Newspaper Ad
Operant Conditioning
Encouraging
the target customer to less thirst in the hot summer.This partial
consumption can lead to a permanent change in behavior in future14.2.2 TVCs
The frequencies of the TV ads
have to be increased. People who watch TV regularly are seeking for innovative
things made by the marketers. They pretty much bored with the traditional ads.
So if RC cola bring new thing with their ads them it will be a turning point
for their sale. People will get more interest in their product and as a result,
they can be the loyal customer of this product.So TV ads should be brought
with a new format, with more new things so that it can catch the target aspect
with the new one.Example # 1
Snap Shot from RC’s TVC
Classical Conditioning
A girl is
drinking RC cola and a boy is looking at her. He might feel to taste that
cola the is drinking.Example # 2
Snap Shot from RC’s TVC
Classical Conditioning
TVC can increase the chance of generating the same
positive response to the brand14.2.3
SponsorshipTill now RC cola make sponsorship of few events like
concerts, nabanno utsav, bangla noboborsho etc. they should include cyber café,
canteens of university, fast food shop and other places where people goes
frequently. By doing so they can be with the target
audience and we will find more aware people.14.2.4 Sales
PromotionThey should in for massive sales promotion to attract
people from other drinks.14.2.5
Road ShowsWhen they first came in the market, they
arranged road shows in some prestigious universities in Bangladesh. Frequent
road shows can be effective for them. During world cup football and cricket
they arranged world cup mania, and if they do so once or twice in a year that
will be more helpful for them in the future.Most of retail shops use
refrigerators supplied by Soft Drink Company. The main condition the retailer
faces that they must keep the corresponding soft drink (which company provides
refrigerators) first then they can keep some other thing. These refrigerators
are posted in a way that the people can easily recognize their brand.On the other hand, RC sponsors
very few of the shop sign of the retail stores, cafeterias, restaurants etc
like other brands named Coca-Cola, Pepsi etc. There is a point to add: there
was also a demand-supply disorder at the point of the launching. As a result,
it failed to retain the booming demand that occurred due to the successful TVC.
Although the product has a moderate demand now a days it is not supplied
accordingly. As a result, retailers do not have the product. Sometimes
consumers cannot buy it when they want to, due to shortage of supply.They should supply their own refrigerators to the
retailers, so that the drinks can always be kept cool.
The supply of drinks should meet up the demands. If they supply less than people will fail to
purchase RC cola whenever they intend to buy them. Therefore, in this field
they need to bring their concentration.15.0
DISTRIBUTION OF RC ColaThe
distribution of RC Cola is strong enough as it is quite available in every
targeted area. To distribute this product the company follows the following
distribution channel-
Manufacturer
Wholesaler Retailer
ConsumerFor
the product availability the customers can get RC at any place when they need
it. It is seen that this product has been successful to occupy the refrigerators
in the outlets so that is found chilled.The Distribution Channel Looks Like
Figure:
Distribution Channel of RC Cola16.0
PRICING STRATEGYThe three different sizes of RC Cola have been priced
differently.- 250
ml bottle = 12 tk. - 500
ml bottle = 20 tk - 1
liter bottle = 40 tk. - 150
ml can = 15 tk.
Here wholesalers take 0.5
-1.5 tk and retailers take 2.00-2.5 tk as profit. Again comparing to the
competitors product, the price is low enough to encourage the target market to
shift their brands towards RC.17.0
FUTURE PLAN REGARDING THE STRATEGYThe immediate marketing
goals are summarized in the following key objectives:1. Have a cumulative 1500000
customers base by the end of 2010.2. Set up a strong
distribution channel by careful selection and proper execution ofcompanies strategies.
3. Provide the most
attractive and affordable products and services to the customers.4. Aggressive market
promotion and branding through effective advertisement andPromotion.
18.0 company profile (virgin Cola)
18.1
Vision
Any company’s vision is actually the dream to which
the company always strives to reach where it may become possible or not. Here
it is also not apart for Virgin Drinks.18.2 Mission
The mission of Virgin Drinks is to provide value at an
economic cost, progress in diversity, and continue to contribute to the growth
of industrialization in Bangladesh by being the market challenger.18.3 Goal
The company’s goal is to maximizing the market share
in their every categorized business.18.4
ObjectiveThe objective of Virgin Drinks is to provide the
quality products and services in such a form that the customers demand.18.5
StrategyThe company always believes in pull strategy rather
than push strategy. They first of all find out the customers demand about how,
when, where, and what type of product ad services they want. Then according to
that they provide their services at the right place and in the right time.18.6 Outline
of Virgin DrinksVirgin Cola is a carbonated cola soft drink produced
by Princes limited. It was launched in 1994.Virgin Cola was set up during the
early 1990s in conjunction with Cott, a Canadian company that specializes in
bottling own-label drinks. Cott was looking for a major international brand
that could have global appeal. In typical Virgin jokey fashion, when first
launched the 500ml bottles were marketed as “The Pammy”, as their
curves were designed to resemble Pamela Anderson who was at the height of her
popularity in the UK at the time.Within a few months of its release, Virgin Cola had a
50% market share in the outlets that sold it. It went on to be launched in
France, Belgium, and South Africa. In its first year more than 500 million
units were sold worldwide.[citation needed] However, its popularity soon waned.
It is also served on Virgin Atlantic flights and sold in the on-board shops on
Virgin Trains. The Gulliver’s Kingdom chain of theme parks in the UK also sells
post mix Virgin cola.In the United States, a national roll out was planned
for 2005, six years after Virgin cola had first been launched in the UK. For
the launch, Richard Branson rode into New York’s Times Square atop a tank
wearing girlies underwear, promising a battle with Coke and Pepsi. Virgin Cola
flopped, however, and disappeared from the US market almost immediately. In the
UK, it is now bottled under Silver Spring.18.6.1
Global Beverage Co. LTD.Global Beverage Co. LTD. is the founder of Virgin
drinks in Bangladesh market. It started its journey in 2005. It’s a carbonated
cola soft drink.Richard Branson attempts to extend the Virgin
franchise into your fridge. So far it has failed to overtake Pepsi in the UK as
he claimed it would, and unlike Pepsi or Coke it’s relatively hard to find cans
of Virgin Cola on sale anywhere. Cross-promotion has been Branson’s main
weapon, serving Virgin Cola on Virgin Atlantic flights and (until they closed
down) at Virgin Cinemas. Many promos tie in with Virgin Megastores as well. For
a while the half-liter bottles were called ‘The Pammy’, an attempt to link
their curvy nature to the immense popularity of alleged actress Pamela Anderson
at the time of the small bottle’s launch. Virgin Cola has put in an occasional
appearance on popular US sitcom ‘Friends’, but then so has Virgin Atlantic and
Mr. Branson himself.18.6.2 Get
in touch with Global Beverage Co. LTD.:Bagher Bazar, Gazipur,
Bangladesh
Fax: +88.011.86662652
19.0 Profile of the
Segmentation And TargetMarket19.1
Segmentation:19.1.1 Age
Virgin drink’s primary target was only the young
generation where the age may vary from15-25. But it is not limited within this age. It has
also spread out among the children noticeably as well as the people above 45
years.Age
Demand
15-25
6%
20-25
40%
25-35
35%
35-45
15%
Above 45
4%
19.1.2
GenderBoth young boys and girls are the target market for
the Virgin drinks. It is not specially made for any particular gender what
actually happens for any type of cola drink.19.1.3
OccupationOccupation is not clearly defined for the target
market of Virgin drinks; however where the age varies within the young
generation as well as children so it can easily be understood that most of them
will be whether student or doing any job or business.19.1.4
IncomeActually Virgin drinks has emphasized on the lifestyle
and behavior of consumers more rather than the income. They think that it is
really affordable to buy a Virgin drinks (especially 200 ml) for their target
market where their income is minimum 2000tk and for the students it may be less
than that.19.1.5
LocationAlmost all the places of urban and rural area are
under the Virgin drink’s distribution. Especially in each and every part of the
Dhaka city Virgin drinks is available.19.1.6
Social ClassVirgin drinks is targeted for the upper part of the
lower class, middle class, upper middle class, and lower part of the upper
class of the society.19.1.7
LifestyleThe targeted market of Virgin drinks is basically
young generation who like gossiping, chatting, hanging with friends, making
fun, watching movies, listening music. Virgin drinks have also focused on their
customer’s lifestyle in product, advertising and packaging.19.1.8
PersonalityThe customers of the Virgin drinks are mostly action
oriented people which include especially the experiencers.19.2 Target
Market:Cola drinks usually follow an undifferentiated
marketing strategy to target their consumer. Keeping this fact in mind, we
conducted a sample survey by selecting random sample from different places. The
following discussion will attempt to analyze the profile of the target market
based on the sample group.19.2.1 Age
Age is the major determinants in targeting the
consumers. Virgin drinks reflect the Bangladeshi culture and it represents
youth. From my findings, we have found thatAge
Demand
15-25
6%
20-25
60%
25-35
20
35-45
10
Above 45
4%
19.2.2 Sex
Beverage is used for thirst-quenching purpose and this
product is gender neutral, meaning there is no such kind of obligation to
consume the product for male or female.Sex
Demand
Male
66%
female
34%
19.2.3
Occupation & IncomeConsumers’ purchasing pattern, lifestyle and status
largely depend on their occupation and average monthly income of the family.
The social class of the target respondents was determined by their income or
taking from family. Virgin drinks is a low involvement product and it is good
enough to consume by upper and middle class.Demand
Student
68%
private service
15%
Business man
12%
other
5%
20.0
POSOTIONING STRATEGYThe term positioning refers to placing a brand in that
part of the market where it will receive a favorable reception compared to
competing products. Virgin drinks a single brnad name gives them benefits to
play a dominate role in the core segment. This strategy gives them the
flexibility to attract customers for other segments outside its core segments.21.0
Company Profile (Coca Cola)The Mission Statement of the Coca Cola Company
Our
mission statement is to maximize shareowner value over time.In
order to achieve this mission, we must create value for all the constraints we
serve, including our consumers, our customers, our bottlers, and our
communities. The Coca Cola Company creates value by executing comprehensive
business strategy guided by six key beliefs:1. Consumer
demand drives everything we do.2. Brand
Coca Cola is the core of our business3. We
will serve consumers a broad selection of the nonalcoholic ready-to–drink
beverages they want to drink through out the day.4. We
will be the best marketers in the world.5. We
will think and act locally.6. We
will lead as a model corporate citizen.The ultimate
objectives of our business strategy are to increase volume, expand our share of
worldwide nonalcoholic ready to drink beverages sales, maximize our long-term
cash flows, and create economic value added by improving economic Profit.The
Coca Cola system has more than 16 million customers around the world that sells
or serves our products directly to consumers. We keenly focus on enhancing
value for these customers and helping them grow their beverage businesses. We
strive to understand each customer’s business and needs, whether that customer
is a sophisticated retailer in a developed market a kiosk owner in an emerging
market.There
are nearly 6 million people in the world who are potential consumers of our
company’s product. Ultimately, our success in achieving our mission depends on
our ability to satisfy more of their beverage consumption demands and our
ability to add value for customers. We achieve this when we place the right
products in the right markets at the right time.COCA COLA
INTERNATIONALCoca-Cola
Enterprises, established in 1986, is a young company by the standards of the
Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions
of Coca-Cola that is the foundation for this Company.The
Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist,
Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain
drinks. However the bottling business began in 1899 when two Chattanooga
businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive
rights to bottle and sell Coca-Cola for most of the United States from The
Coca-Cola Company.The
Coca-Cola bottling system continued to operate as independent, local businesses
until the early 1980s when bottling franchises began to consolidate. In 1986,
The Coca-Cola Company merged some of its company-owned operations with two
large ownership groups that were for sale, the John T. Lupton franchises and
BCI Holding Corporation’s bottling holdings, to form Coca-Cola Enterprises Inc.
The Company offered its stock to the public on November 21, 1986, at a
split-adjusted price of $5.50 a share. On an annual basis, total unit case
sales were 880,000 in 1986. In December
1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola
Bottling Group, Inc. (Johnston) created a larger, stronger Company, again
helping accelerate bottler consolidation. As part of the merger, the senior
management team of Johnston assumed responsibility for managing the Company,
and began a dramatic, successful restructuring in 1992.Unit case sales had
climbed to 1.4 billion, and total revenues were $5 billionThe
hierarchy of Coca Cola Company is as follows.:
Being
the biggest company in the soft drink industry, Coca Cola enjoys the largest
market share. This company controls about 59% of the world market.The following table can show the worldwide operating
segments. (Table)Unit case
growthNonalcoholic
drinkAll commercial
Beverages10 year
5-year
compound2001 annual
2002
2002
compound
annualannual growth
growth
growth
Compan
Industry
Compan
Industry
Compan
Industry
Company
Compan
Compan
y
y
y
share
y share
y per
capita
Income
6%
5%
5%
5%
4%
4%
18%
9%
70
This
shows that the market of the company is geographically vast and it is
controlling it with great success. In 2002, the company grew their carbonated
soft-drink business by nearly 250 million unit cases and generated record
volumes. Because carbonated soft drinks are the largest growth segment within
the nonalcoholic ready-to-drink beverage category measured by volume, that is
why they are focusing more on this and they are continually increasing the pace
because they know that accelerating this pace is crucial to their future
success. Thus they are increasing their market day by day. The operation income
earned by Coca Cola Company can be illustrated by the following pie chart.(Figure)
This
strategy has worked a lot and it has helped them to become the World’s leading
Soft Drink Company. The global unit sale of the Coca Cola Company is increasing
from the last ten years. The data of the global unit sale of the Coca Cola
Company can be represented by following chart.So
there is positive growth in the market of the Coca Cola Company. There is a
worldwide volume increase by 4% with strong international growth of 5%. This is
only due to the innovative marketing programmers, which has deepened the
relationship of the customers and Coca Cola. The financial health and success
of their bottling partners is a critical component of The Coca-Cola Company’s
ability to build and deliver leading brands.In
2002, the company had worked with their bottlers to turn good intentions into
reality by improving the system economics. The results in 2002 reflect this
steadily improving and mutually constructive relationship between the Company
and their bottling partners. The main reason behind this relationship is to
continue realizing shared opportunities for growth, with closer coordination of
operations including customer relationships, logistics and production.Coca
Cola is the world-renowned soft drink and the company is currently operating
through out the world. The world wide total is about 17.8 billion.The operation review according to the segments is as follows.
Operation Review
(2002
worldwide unit case volume by operating segment)So
the volume is least in the Africa and most in the North America. The data about
the market share of this company area wise is given in the following table.The
above table shows the geographical earning of the Coca Cola Company and from
this data; we can find out that the customers of Coca Cola are increasing which
is shown by the company’s per capita income. Unit case equals 24 eight-ounce
servings. The column, which shows the non-alcoholic beverages consist of
commercially, sold beverages, as estimated by the Company based on available
industry sources. The country column is derived from.The
Company’s unit case volume while the industry column includes nonalcoholic
ready-to-drink beverages only, as estimated by the Company based on available
industry sources.(Table)
In
Asian population, which is the satisfied customer of Coca Cola, is
approximately 3.2 billion and the average consumer enjoys close to two servings
of our products each month. Through an intense focus on Coca-Cola, innovation
and new beverages, the company has achieved volume growth of 10 percent in
2002. With developing economies and populations, this region has strong
long-term potential, and the company is building an exciting family of beverage
brands in addition to expanding the popularity of our core brands, led by
Coca-Cola. In China, for example, sales of Coca-Cola increased 6 percent. The
total unit case sale of Coca Cola in Asia can be shown by the following pie
chart.(Figure)
So
the company is emphasizing more in this area and is trying to develop a
strategy, which can increase the growth of the consumption of Coca Cola by the
people of Asia. Among the countries of Asia, Japan has the highest percentage,
which is about 29%. Among others, Pakistan, India and Bangladesh are those
countries where the average consumption is increasing day by day.This
company is financially very strong. It is due to the strong finances, the
company is still surviving the ups and down of the business world. The
financial report of Coca Cola Company of the year 2001 and 2000 along with the
percentage change is as follows.(Table)
Year Ended December 31,
(In millions except per share data, ratios and growth rates)
2002
2001
Percentage change
Net operating
revenues20,092
19,889
1%
Operating
income5,352
3,691
45%
Net income
3,969
2,177
82%
Net income per
share (basic) Net income per share (diluted)1.601 1.601
0.882 0.882
82% 82%
Net cash
provided by operating activities4,110
3,585
15%
Business
reinvestment Dividends paid Share repurchase activity Free cash flow(963)(1,791)(277)3,147
(779)(1,685)(133)2,806
24% 6% 108%
12%Return on
capital26.6%
16.2%
–
Return on
common equity38.5%
23.1%
–
Unit case
sales (in billions)International
operations12.5
11.9
5%
North America
operations5.3
5.2
2%
Worldwide
17.8
17.1
4%
2002
basic and diluted net income per share includes a non-cash gain of $.02 per
share after taxes, which was recognized on the issuance of stock by Coca-Cola
Enterprises Inc., one of the equity investors of this company.2002
basic and diluted net income per share includes the following charges:
$.24 per share after income taxes related to an
organizational Realignment.
$.19 per share after income taxes related to the Company’s
portion of charges recorded by the investors of the company.
$.16 per share after income taxes related to the impairment
of certain bottling, manufacturing and intangible assets.
$.05 per share after income taxes related to the settlement
terms of a discrimination lawsuit.
$.01 per share after income taxes related to incremental
marketing expenses in Central Europe.These
charges are partially offset by a gain of $.05 per share after income taxes
related to the merger of Coca-Cola Beverages plc and Hellenic Bottling Company
S.A. and $.04 per share after income taxes related to benefits from a tax rate
reduction in Germany and from favorable tax planning strategies.DIVIDEND AND
CASH INVESTMENT PLAN:The
Dividend and Cash Investment Plan permits shareowners of record to reinvest
dividends from Company stock in shares of The Coca-Cola Company. The Plan
provides a convenient, economical and systematic method of acquiring additional
shares of our common stock. All shareowners of record are eligible to participate.
Shareowners also may purchase Company stock through voluntary cash investments
of up to $125,000 per year. At year-end, 76 percent of the Company’s
shareowners of record were participants in the Plan. In 2002, shareowners
invested $36 million in dividends and $31 million in cash in the Plan.COMPANY
STATISTICS:The
statistics of this company is impressive. Since it is operating through out the
world that is why the number of employees and the bottling equipments is
highest among the other bottling companies. There is a constant increase in
every aspect when we compare the statistics of 2001 and the statistics of 2002.
This is because; Coca Cola Company is increasing its volume day by day. The
expansion of this company, which shows the success of Coca Cola brands, results
in the percentage change in the statistics of the two years. The statistics is
as follows.(Table)
2002ª
2001
Equivalent
cases4.2 billion
3.8 billion
Bottle and
cans87%
87%
Fountain
13%
13%
Employees
72,000
67,000
Vehicles
54,000
52,000
Cold drink
equipments2.4 million
2.3 million
Facilities
Production
only25
25
Distribution
385
361
Combination
53
50
Total
463
436
Percent of
North America population coverage80%
72%
Number of States
of Operation46
46
Bottle and can
equivalent case package distributionCans
44%
45%
Non-refillable
bottles52%
51%
Refillable
bottles4%
4%
Capital
structureNet debt to
total capital ratio63%
59%
EBITDA
interest coverage3
3
Weighted
average cost of debt6.3%
6.8%
Key Statistics
Constant
territory bottle and can volume growth3%
½%
Bottle and can
net revenues per case changeFlat
2%
Bottle and can
cost of sales per physical case1
½%
change
Reported
EBITDA (in billions)$1.95
$2.39
Reported
EBITDA change(18)%
9%
Capital
expenditures( in billions)$0.97
$1.18
%-age of net
operating revenues6%
8%
Coverage of
North American Can/bottle volume83%
74%
EBITDA is the Earnings before interest, taxes,
depreciation, and amortization, and other non-operating items.
Net Debt is
the Long-term debt plus current portion of long-term debt less cash and
marketable securities.
Equivalent Case or Unit Case is
the physical case and fountain gallons converted to a standard unit of measure
defined as 24 eight-ounce servings or 192 ounces per equivalent case sold by
Coca-Cola Enterprises.PRODUCTS:
There
are different brands of the Coca Cola Company, which are currently in use
through out the world. This company not only deals in the carbonated drinks but
also other drinks. While launching its product, the marketing team considers
the culture of the country.Major
brands of coca cola
Coke
Sprite
Fanta
Diet coke
Coke classicThe over all volume
of this company is as follows.(Figure)
The
commitment of the company is to devote resources to water only in markets where
it expects profitable growth. This strategy has paid dividends. The company has
successfully applied it’s approach to brands in several key markets, including
Ciel in Mexico, Mori No Mizudayori in Japan, Bonaqua in Russia and
Kinley in India. Backed by a strong network of bottling partners through out
the United States, Dasani became the nation’s fastest-growing water brand. In
Eurasia, the entire Turkuaz brand team worked together to launch Turkey’s first
purified water brand. This year, Coca-Cola Company also successfully energized
a major piece of its beverage strategy—water. By the end of 2001, it’s bottled
water volume exceeded 570 million unit cases, making it the second biggest
contributor to the growth of the company after carbonated soft drinks. Three of
the water brands, Dasani, Ciel and Bonaqua each achieved sales of over 100
million unit cases for the year.In
2001and 2002, the company has also made good progress in coffees and teas.
Beverage Partners Worldwide, the renewed and strengthened marketing partnership
with Nestlé S.A., began operations in 2001. This partnership combines Nestlé’s
knowledge in life science, research and development with the expertise of Coca
Cola Company in brand building and distribution.At
the same time, the company grew Georgia coffee in Japan by 3 percent through
award-winning marketing in a category that was flat for the year. Also in
Japan—where The Coca-Cola Company is the leader in the total tea category, the
second-largest category in the non-alcoholic ready-to-drink segment—it launched
Marocha Green Tea. With sales of 46 million unit cases for the year, Marocha
Green Tea is the fastest-growing product in the fastest-growing category: green
tea. The popularity of Marocha is also recognized by the industry with a
leading trade journal naming Marocha the most popular new food and beverage
product of the year.Know the most
recognized word on the planet after “OK”!Among
the soft drinks Fanta and Sprite become successful along with the
major brand Coca Cola and Diet Coke. In key markets, the company
has created new packaging sizes to satisfy consumer demands.Increasingly,
Mexican families have lunch together at home. The average Mexican household
drinks two-and-a-half liters or more of soft drinks during that break, while a
two-liter bottle was the largest available package. So the company introduced a
convenient 2-½ liter bottle to select regions, contributing to the sale of
nearly 1.5 billion unit cases of Coca-Cola in Mexico this year. This larger
bottle will complete its nationwide rollout in 2002. In China, Coca-Cola is an
integral part of holiday celebrations and the family get-togethers that
accompany such events. Through an intense focus on Coca-Cola, innovation and
new beverages, it has achieved volume growth of 10 percent in 2001. In China,
sales of Coca-Cola increased by 6 percent. In the United States, recognizing
that consumers often enjoy their diet Coke with a slice of lemon, the company
“bottled” the concept. The result—diet Coke with lemon—contributed to
volume growth of 4 percent for the number-one diet. Soft drink in North America: diet Coke. The
company increased its two largest bottle sizes during the 2001 holidays, and
festival packaging helped drive a 6 percent volume increase for Coca-Cola. The
packaging innovations do not just involve resizing. The company has also
responded to consumers’ changing fashion styles with new bottles.With
brands such as Minute Maid, Hi-C, Simply Orange and Disney juices and juice
drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo in
Africa.This
year, the company re-launched its global sports-drink business, investing in
new products, packaging, positioning and marketing. The results speak for
themselves: it’s global sports drinks, led by Powerade and Aquarius, grew by 13
percent in 2002, nearly double the growth rate of the worldwide sports-drink category.
Revitalized in the United States, the company introduced Powerade in nearly
every major Western European market, including Great Britain, Germany and
Spain, as well as in Mexico and Latin America. The company launched 27 products
in 2001.The
commitment of the company to packaging innovation also resulted in new
initiatives for our fountain business, a channel through which many consumers
enjoy Coca-Cola. In the United States, the company developed Fountain, a
total beverage dispensing system that is more flexible and more reliable. Two
years of research resulted in a dispensing system that provides exceptional
beverage quality, easy to upgrade technology, brand and graphic customization
and improved reliability.STRATEGIC
PLANNINGIn
the year 2002, the company had a great success, as the strategy worked which
resulted in making Coca Cola Company the world’s leading company. In 2001,
company accomplished the crust of it’s strategy asØ Worldwide
volume increased by 4 percent with strong international growth of 5 percent and
clear signs that our North American business is growing solidly and
predictable.Ø Earnings
per share grew by 82 percent, as we delivered on our commitment to create
volume growth while aggressivelyØ Return
on common equity grew from 23 percent in 2000 to 38 percent this year.Ø Return
on capital increased from 16 percent in 2000 to 27 percent in 2001.Ø The
company has generated free cash flow of $3.1 billion, up from $2.8 billion in
2000, a clear indication of its underlying financial strength.The
strategy for the future of the company is very straightforward. The marketing
strategy for the year 2002 is as follows,Ø Accelerate
carbonated soft-drink growth, led by Coca-Cola.Ø Selectively
broaden the family of beverage brands to drive profitable growth.Ø Grow system
profitability and capability together with our bottling partners.Ø Serve customers
with creativity and consistency to generate growth across all channels.Ø Direct
investments to highest potential areas across markets.Ø Drive efficiency
and cost-effectiveness everywhere.MAJOR COMPETITOR
PEPSI
INTERNATIONALHISTORY
PepsiCo
is a world leader in convenient foods and beverages, with revenues of about $27
billion and over 143,000 employees. The company consists of the snack
businesses of Frito-Lay North America and Frito-Lay International; the beverage
businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and
PepsiCo Beverages International; and Quaker Foods North America, manufacturer
and marketer of ready-to-eat cereals and other food products. PepsiCo brands
are available in nearly 200 countries and territories.The
advertisement of the Pepsi changes to, “You got the right one baby,
Uh-Huh!”.With the extensive usage of the stars in the adds, the popularity of
Pepsi increase. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton
Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United
States. Outside the United States, Pepsi-Cola Company’s soft drink operations
include the business of Seven-Up International. Pepsi-Cola beverages are
available in more than 190 countries and territories. In Asia, they selected
Lahore to make their regional office. This was done in 1970. This regional
office is monitoring all the operations carried out in South West Asia. As in
Pakistan, they only entered beverage industry. They have eleven bottlers
covering whole Pakistan. The plant operating here is Riaz Bottlers (Pvt) LTD.
This plant was established at Lahore in 1974. The total capacity of the plant
is 30,000 cases per day. They have four filling lines in the plant operating on
the three shift bases. Each shift is of eight hours. They have permanent work
force of 750 people and they employee approximately 1000 people more on
temporary basis during summer season.Pepsi’s Products
Ø Pepsi
Ø Teem
Ø Mirinda
Ø Pepsi
MaxØ Pepsi
LemonØ Pepsi
BlueØ Mountain
DewØ 7up
COCA COLA
PAKISTANThe
Coca-Cola Company began operating in Pakistan in 1953. Coca-Cola, Fanta and
Sprite are the brands in Pakistan. The Coca-Cola System in Pakistan operates
through eight bottlers, four of which are majority-owned by Coca-Cola Beverages
Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot,
Gujranwala, Faisalabad, Rahimyar Khan, Multan and Lahore. The remaining two
plants, independently owned, are in Rawalpindi and Peshawar. The Coca-Cola
System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System
in Pakistan employs 1,800 people. During the last two years, The Coca-Cola System
in Pakistan has invested over $130 million (U.S.)49
years of refreshment in PakistanCoca-Cola introduced in Pakistan
1953
Fanta introduced in
Pakistan1965
Sprite was
introduced1972
Diet Coke &
Fanta Lemon2001
PROMISE OF COKE
The
basic proposition of our business is simple, solid and timeless. When we bring
refreshment, value, joy and fun to our stakeholders, then we successfully
nurture and protect our brands, particularly Coca-Cola. That is the key to
fulfilling our ultimate obligation to provide consistently attractive returns
to the owners of our business.TARGET MARKET
Coke’s
commercials basically based on young generations, So, the young generation is
the target market of Coke because they want to represent Coke with the youth
and energy but they also consider about the old people they take then as a
co-target market.MAJOR SEGMENTS
Major
segments are basically those people who take this drink daily and those areas
where the demands is higher then the other areas. There are so many people who
take this drink daily and those people who take weekly and those who take less
often are always there as well. So, their basic segments are those people who
take this drink regularly.FACTORS
EFFECTING SALESThere
are so many factors, which affects the sale of coke. Here we are discussing
three major factors which effects coke.Ø Per capita
incomeØ Competitors
Ø Weather
Per Capita
IncomeFirst
we will discuss about “ Per capita income”. This is major factor that affects
the sale of this soft drink. Because which every passing year budgets are
becoming very strict and tight in order to purchase things. So the disposable
incomes of the people are coming down. They spend heavily on rents, utilities,
and education and basic necessities and after that when they get extra money
they think about this soft drink .So the decreasing per capita income effects
badly in selling and production of this soft drink. And to get through with this difficulty there
is need to increase the level of per capita income of Pakistan because it is
much lesser than the rest of the countries. Competitors Coke’s major competitor is “PEPSI”
and there is no hesitation to say this because every one knows that and all the
other cold drinks and water, coffee, tea are the competitors.Weather
Weather
is the third major factor in effecting the Coke’s selling. This is
underdeveloped market so the coke’s consumption in summers is 60% and in
winters is 40%.MAJOR CUSTOMERS NEED
First
of all the majority don’t care that what they are going to have. In other
words, they don’t care before drinking that whether it is “Pepsi” or “coke”.
They don’t actually differentiate between these two brands in order to their
tastes. Consumers basically drink what they get. They believe on “WHAT
COLD THEY SOLD” Consumer’s availability in brands is basically works
like: Push availability Pull consumer’s demand.For
this reason Coca-Cola have provided their coolers and freezers in the market.
They have maximum number of coolers and freezers in the market.They
provide this infrastructure free of cost just to provide child coke to their
customer, which they want to be purchase. Their salesman and mechanics
regularly visit all the shops where coke has its infrastructure to check that
either it is in proper condition or not, if not then they immediately change or
repair it.MAJOR
COMPETITORSConsumers
firstly decide that they are going to have a soft drink. Then they compete
brands with each other. Like they compete Coke with Pepsi and Sprite with 7up
and team .So the major competitor of Coke is Pepsi. When they motivate to any
other brand or on Coke it’s in instinct basically that based on messages derive
certain feelings. But Coca Cola thinks in a different way, they believe that RC
Cola, new coming AMRAT Cola, and all juices, even they take water and tea as
their competitors.STRATEGIES OF
QUALITYAfter
Micro and macro analysis Brand “coke” is primarily role1.
1. Enhance competition moments2.
2. When people watch cricket3.
3. Through commercialization4.
4. Fun timeThough
these strategies there could be better understanding and better connection with
the public. These are the “key consumption”.THREATS FROM
COMPETITORSThreats
are well planned. Price is the major threat. When price goes certain beyond theexact price whether come down or go higher its effects the consumption of soft
drink.Because when the price go higher people go for the substitute of “coke” i.e.
Pepsi.And when price goes down they think that there is must be some thing wrong in
it.In short it all depends on customer’s perception.
TARGETS THAT
WOULD LIKE TO ATTAINEvery
organization runs on the bases of profit maximization so Coke is also looking
for a high profit margin.There
are three major ways of making moneyØ Over
night profitØ Windfall
profitØ Ethical
and un-ethical waysOver Night
ProfitsThey
could be over night profit that is for the number 1 brand for the year. This
could be got my increasing sales volume Windfall ProfitCan
be windfall profit. They are the extras profit. When the consumption the
consumption is on boom. So, there is different kind of profits.Ethical
And Unethical WaysProfit can also
get through ethical and unethical ways. They believe on this quote “ Every
thing is fare in love and war”.Some
profits stays for some time like “over night profits” and some just come and go
like “wind fall profits”. And they can also get profit through different
approaches.EXPANDING TARGET
MARKETIn
last 2 years Coke has come back in aggressive manner.Ø Consumer
has choiceØ Attractive
brand nameØ Brand
differentiatingConsumer Has Got
ChoiceNow
the consumer has got choice. Because now they know the name of another big
brand, though coke is the 2nd best name but it can get a better position
after some time.Attractive Brand
NameNow
the consumers know the Name of Coke, because Coke is the name, which is the
most popular after the word “ok”. So people can better differentiate brands
with each other.Brand
DifferentiationNow
different companies have got different brand names. So, people can distinguish
between brands. Two major brands “coke” and “Pepsi” also have brand names.Coca Cola’s
BrandCoca
cola is “US” brand. Because they believe in the togetherness, being people
together and friends are being together. Coca Cola strongly believes that
Pakistani temperament is “US” not “ME”Pepsi’s Brand
Pepsi’s
brand is basically is basically “ME” branded. They use the temperament of “ME”.
In contrast to Coke they believe on individual struggle.THREATS
AND OPPORTUNITIES FOR PRICEOpportunities
If
Coke is considered a luxury product. Then there is the tax rate system 15% –
sales tax 20% – excise duty 27% – goes to government 03% – In making BudgetAfter
paying all these taxes coke has to pay electricity charges. We have to spend on
distributions. After paying all these expenses Coke’s margin squeezed and
consumers have to pay for increasing tariffs. These are the opportunities
through which we can increase the price and can get profits.Threats
There
are much more threats in increasing prices. Because same problem of substitute.
If Coke increase the price lets say 1 rupee. Then people definitely won’t go
for coke. They have the best substitute of Coke that is Pepsi. So these are the
threats in increasing prices. Coke will lose the margin of its profit and can
face loss.STRATEGIES OF
GETTING GOALS I.E. “HIGH PROFITS”To
increase the price is the least thing, which Coke can adopt. There are so many
ways through which Coke can increase the profits. Some major ways are as
follows.Ø Volume
can be increasedØ Interest
level of consumersØ To
take part in energetic festivalsHow to increase
the volume of consumers?Coke
can increase the volume by expanding the industry of coke. Through
advertisements, offering different interesting things to attract people towards
this product.How to increase
the interest level of consumers?Coke
is increasing the interest level of consumers by offering different flavors.
For example Coke is increasing the number of flavors in “Fanta”, this is one of
the product of coke. Through offering different flavors Coke can increase the
Level of consumers and through this profits can be gained.How to take part
in energetic festivals?Coke
is already taking part in the festival like “Basant” since last 3 years. Coke
offers different attractive things in their festival and through this Coke
gained high profit and consumption of coke increased on these occasions.And
this year in this year 2002 people were anxiously waiting that what interesting
thing coke is going to offer.MARKETING STRATEGY
Our
local marketing strategy enables Coke to listen to all the voices around the
world asking for beverages that span the entire spectrum of tastes and
occasions. What people want in a beverage is a reflection of who they are,
where they live, how they work and play, and how they relax and recharge.
Whether you’re a student in the United States enjoying a refreshing Coca-Cola,
a woman in Italy taking a tea break, a child in Peru asking for a juice drink,
or a couple in Korea buying bottled water after a run together, we’re there for
you. We are determined not only to make great drinks, but also to contribute to
communities around the world through our commitments to education, health, wellness,
and diversity. Coke strives to be a good neighbor, consistently shaping our
business decisions to improve the quality of life in the communities in which
we do business. It’s a special thing to have billions of friends around the
world, and we never forget it.MARKET POSITIONING Product Range
The
total range of Coca Cola company in Pakistan includes:Ø Coke.
Ø Sprite.
Ø Fanta.
Ø Diet
Coke.And
company offers their products in different bottle sizes these includes:Ø SSRB (standers size returnable bottle)
Ø LRB (litter returnable bottle)
Ø NRB (no return bottle) or disposable bottle
Ø PET
1.5 (1.5 litter plastic bottle)Ø CANS (tin pack 330 ml)
Packing
Coca
cola products are available in different packingØ 24
regular bottle shellØ 6
bottle pack for 1.5 petsØ 12
bottles in a pack for disposable bottleØ 24
cans in one pack.PRICE STRATEGY
Trade Promotion
Coca
cola company gives incentives to middle men or retailers in way a that they
offer them free samples and free empty bottles, by this these retailers and
middle man push their product in the market. And that’s why coca cola seen more
in the market. And they have a good sale in the market because according to the
expert which product seen more in the market that sells more. “Seen as sold”They
do agreements with a shop keepers and stores to exclusive sale in that stores.
These stores are called as KEY accounts in their local language. And coke also
invest heavy budget on these stores and offers them free samples and free
bottles and some time cash incentives.Different Price
In Different SeasonsSome
times Coca Cola Company change their product prices according to the season.Summer is supposed to be a good season for beverage industry in Pakistan.
So in winter they reduce their prices to maintain their sales and profit. But
normally theyreduce the prices of their pet bottles or 1 litter glass bottle.
PROMOTION
STRATEGIESGetting shelves
They gets or purchase shelves in big departmental stores and display their
products in that shelves in that style which show their product more clear and
more attractive for the consumers.Eye Catching
PositionSalesman
of the coca cola company positions their freezers and their products in
eye-catching positions. Normally they keep their freezers near the entrance of
the stores.Sale
PromotionCompany
also do sponsorships with different college and school’s cafes and sponsors
their sports events and other extra curriculum activities for getting market
share.UTC
SchemeUTC
mean under the crown scheme, coca cola often do this type of scheme and they
offer very handy prizes in it. Like once they offer bicycles, caps, tv sets,
cash prizes etc. This scheme is very much popular among children.DISTRIBUTION
CHANNELSCoca
Cola Company makes two types of selling Direct selling Indirect sellingDirect Selling
In
direct selling they supply their products in shops by using their own
transports. They have almost 450 vehicles to supply their bottles. In this type
of selling company have more profit margin.Indirect Selling
They
have their whole sellers and agencies to cover all area. Because it is very
difficult for them to cover all area of Pakistan by their own so they have so
many whole sellers and agencies to assure their customers for availability of
coca cola products.FACILITATING THE
PRODUCT BY INFRASTRUCTUREFor
providing their product in good manner company has provided infrastructure
these includes:Ø Vizi
coolerØ Freezers
Ø Display
racksØ Free
empty bottles and shells for bottlesADVERTISEMENT
Ø Coca cola
company use different mediumsØ Print media
Ø Pos
materialØ Tv
commercialØ Billboards
and holdingsPrint Media
They
often use print media for advertisement. They have a separate department for
print media.POS Material
Pos
material mean point of sale material this includes: posters and stickers
display in the stores and in different areas.TV Commercials
As
everybody know that TV is a most common entertaining medium so TV commercials
is one of the most attractive way of doing advertisement. So Coca Cola Company
does regular TV commercials on different channels.Billboards
and HoldingsCoca
cola is very much conscious about their billboards and holdings. They have so
many sites in different locations for their billboards.EXPECTATIONS FOR
THE COMING YEAREvery
thing starts from the attitude of consumer’s behavior. And the basic key to
attract the consumers is to throw the “money away”.And
positive feeling felling with the brand, which they used to have Coke wants to
advertise their products heavily in the coming year. And it will take the 10%
of their profits. And when we take it as a global level it is $ I billion.Coming
year is the challenging year for the industry of Coke. They have to take lots
of decisions that how to increase the production and where they have to spend
money. For gaining success in coming year they have to have some important
things like:1.
Loyal consumers are important for company’s success.2.
Workers should be the brand centric not the promotion centric.3.
They should know how much to for the brand activities.4.
They should also know that how much to do with the promotion activities for
brand.HOW COKE
DETERMINE THE YEARLY BUDGETCoke
determines its yearly budget by the•
Sales volume•
Profitability•
Target volumeSales Volume
Coke
determines its yearly budget through the sales volume. They first concentrate
on the thing is “what is the condition of their sales?” if the condition is
good of their sales then they definitely increase their production and sales
volume. Otherwise they concentrate on their old strategies.Profitability:
The second thing
through which they determines budget is the “profit” .if they r getting profits
with the high margin, then they definitely want to increase their profits in
the next coming year. Every organization runs on the basis of getting high
profits. No organization wants to face Loss in their business. To get profit is
the first priority of the Coke.Target Volume:
To
run the business every industry has some targets, which they want to achieve in
a specific time period. If industry achieves those goals in that period then
for the coming year it increases the volume of the target. So Coke Follow the
same thing it has also some goals and targets to achieve in the given time
period. When they succeed to achieve that target then they increase their
target volume in the next year.SALES PROMOTION
ACTIVITIESCoca-Cola Cricket
Cricket
the most sought after; watched & played game in Pakistan .the game of
cricket has been owned by various brands in the industry for the promotion of
their products over a period of time. It has ranged from tobacco to lubricants
to communication companies to banks to airlines & lately to the beverage
industry. The competition has become tougher & tougher as the time has
progressed.Coca-Cola
signed a sponsorship agreement with eight of Pakistan’s National cricket
players. Coca-Cola realizing the fact that cricket is a very strong element by
which it can reach it consumers & masses invested in the opportunity and
launched a massive campaign on mass media showing all these cricket stars
endorsing & complimenting Coca-Cola brand. The Coca-Cola Company developed
three TV commercials & four testimonial ads with the player & ran them
on the national net work during various cricket matches. These bold steps taken
by the Coca-Cola marketing unit acclaimed them many acknowledgements across the
board. This campaign helped Coca-Cola to establish its association with the
game & the player.Coca-Cola
ConcertsAbrar-ul-haq’s
distinct style, lyrics & songs have made him an instant hit among the
masses in Pakistan. His enormous popularity in the country & abroad is
supported by Coca-Cola’s commitment towards providing healthy & fun-filled
entertainment for the youth of Pakistan. Coca-Cola brought Abrar to his fans
through holding concerts & featuring Abrar in a much-appreciated TVC &
MMT featured throughout the country.The
TVC campaign focused on the hectic lifestyle of a pop star who found respite
& relief through Coca-Cola in short moments that he had to himself during a
concert. Coca-Cola’s brand positioning of providing deep down refreshment for
the body, soul & mind were captured accurately in the TVC & depicted
aptly how the drink completes the moment for Abrar.Coca-Cola
Food MelaWith
a splash of food, fun & prizes to be won, the Coca-Cola food mela treated
the people of Karachi, to a festive food festival comprising of 50 restaurants,
spread out all over the bustling city’s map. The promotion saw the avid
families & friends enjoying the delicacies at the restaurants; all
resiliently upholding the Coca-Cola identity.Coca-Cola Basant
FestivalIn
February the month of basant the parks & horticulture authority in Lahore
nominated Coca-Cola the official sponsor of the basant festival .Coca-Cola
added to the carnival atmosphere by making the festival free to enter &
decorating all main roads in Lahore with illuminated kites. Coca-Cola also
hosted a concert of pop idol Abrar-ul-haq, had children’s parade & held the
Coca-Cola kite flying championship during the basant festival. Now “where there
is basant there is Coca-Cola”, it has been impossible to envisage basant
without Coca-Cola. Coca-Cola give the more refreshing flavor to the colors of
basant by adding more life to the festival, giving the consumer a unique
experience which they had never tasted before.Coca-Cola GO-RED
Quenching
the thirst of motorist, pedestrians & passerby’s during Lahore’s hottest
summer season, Coca-Cola’s “GO-RED” teams went out into the cities main
quadrants to “serve & refresh” on the spot with ice-cold Coca-Colas at
discounted prices backed by a heavy FM announcement campaign the “GO-RED”
stall, served well to promote the Coca-Cola industry.Coca-Cola Party
in a ParkIn
June 2000, Coca-Cola created an experiential musical evening in Lahore, where
Junoon performed. This program was recorded and one-hour program shown in the
national TV for free.10 million households saw Coca-Cola ‘Party in a Park’
while 10 thousand people attended the event.Coca-Cola
Shopping FestivalCoca-Cola
hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping festival, a
resounding success with tempting discounts, live music, great prizes & fire
works. Liberty marketing Gulberg was a hive of activity during the weeklong
shopping extravaganza. The in augural event proved so popular that it is now
set to become an annual fixture.Coca-Cola Pet
PromotionIn
1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in
Pakistan. Targeting house wives & family home, Coca-Cola’s 1.5 liter Pet
bottle, took the limelight & gained momentum with a campaign promoting the
unique packaging and its numerous consumer benefits .A treat for the family,
Coca-Cola’s PET was offered through a “price-off” promotion that said……….Go
out & get someCoca-Cola Ramzan
CampaignA
very special occasion for the people of Pakistan Ramzan saw another very
special Coca-Cola’s promotion, marketing the popular 1.5 liter PET bottle &
the 1 liter bottle with a super price-off promotion. The emphasis on enjoying
Coca-Cola at “Iftar” with friends & family.Coca-Cola Wonder
of the World PromotionIn
July 2000, Coca-Cola set the stage of the grand UTC promotion. Coca-Cola went
ahead with the idea of giving consumer chances to win fabulous, magical “dream
vacation” to numerous “wonder destination” throughout the world on every
purchase of a 250 ml RGB bottle of Coca-Cola, Sprite, & Fanta.The promotion
gave consumers a chance to win free drink, a trip to PARIS, HOLLYWOOD, NEWYORK,
SINGAPORE & CAIRO along with airfare & four nights free stay in these
dream lands. The promotion saw avid consumer collecting Coca-Cola ‘Crown caps’
& sparked a keen response from the public , rendering an outstanding testimonial
campaign in the second phase, highlighting the winners over whelmed in the
magical delight of their favorite beverage Coca-Cola.Coca-Cola &
NokiaIn
August 2001, the new under-the-crown promotion “Nikla Kiya?”(What have u
won) was launched in collaboration with Chimera Nokia.The promotion gave
consumer a chance to win thousand’s of Coca-Cola branded Nokia 3310 cellular
phones on every purchase of 750ml RGB bottle of Coca-Cola ,Sprite, &
Fanta.The other highlight of promotion was the “Caught Red Handed” campaign.
Branded Coca-Cola with ‘caught red handed’ team in them went to Lahore &
Karachi for three days, with target that anyone being caught drinking Coca-Cola
will be awarded a nokia 3310 mobile phone & if someone is caught talking on
a nokia mobile will win free supply of Coca-Cola. Caught red handed become a
huge success among the masses as it was one to one interaction between the
Coca-Cola brand & the consumers. This activity helped billed confidence and
brand loyalty among core consumers.Coca Cola TV Mazza
The
coca cola new campaign is coca cola tv mazza, it is a utc scheme in which
people are getting television sets of different sizes. These days this scheme
is very popular among the people.Coca-Cola &
Mc Donald’sCoca-Cola
& key account of MC Donald’s launched the “we go together” joint
promotion to reinstate amongst consumers a real sense of the affinity that,
both shares globally. The promotion kicked off with pos material (Danglers,
Bunting etc) displayed at all MC Donald’s restaurants along with a special
offer for coke & fries.Fanta &
Sprite LaunchedIn
November 2000moving on to the Sprite & Fanta brands, the consumers in
Pakistan witnessed a soft launch in essence. The Coca-Cola Company declared the
new “Non-Returnable” bottles of Sprite & Fanta as the “New, On the Go
Packs” flaunting the innovative packaging convenience. Fanta & Sprite are
sure to enjoy considerable success in Pakistan.Diet Coke
After
the acquisition of the individual local franchise bottling facilities in 1996,
the company has successfully launched its first new product, diet coke, for the
first time in almost 3 years. The was linked with three fashion shows as Diet
Coke is related to fashion & fitness, but the major hit was thematic
fashion shows in restaurants, which are the key accounts of the company as this
has been never done before in Pakistan.CONCLUSION
After thorough research, we come to the conclusion that the
marketing strategy of Coca Cola is working for them and the product is gaining
popularity among youth day by day.RECOMMENDATIONS
After
completing our project we have concluded some recommendation for the coca cola
company, which are following.Ø Coca
Cola Company should try to emphasis more on providing theirinfrastructure in the market to facilitate their customers.
Ø According
to the survey, conducted by the international firm Pakistani people like little
bit sweeter cola drink. So for this coca cola company should produce their
product according to the local demand.Ø Marketing
team should try to increase the availability of Coke in rural areas.Ø They
should also focus the old people.Ø Now
young generation has a trend to drink a coke 2 regular bottles at same time, so
providing more satisfaction to them company should introduce ½ liter disposable
bottle.PEST ANALYSIS OF
COCA-COLAThere
are four variables, which we will discuss in our report, they are:Political
variablesStronglyEffected
++
Some what
Effected +
No Effect + ?
Some what
Effected ?
StronglyEffected
??
Effects of
government regulations & deregulationsNE
Effect of
environmental protection laws if anyYES
Import and
export regulationsNE
Effect of
political conditions in certain countries of CokeNE
Any effect of
election, military take over, Revolution at CokeYES
Conclusion Of
Political Analysis:As
far as the above table is concerned it could be seen that there are very little
chances of “political variables” to effect the coke’s production and selling
behavior. In the “political variables” most of the things are related to
Governmental activities. So, they don’t leave any good or bad impact in the
Industry of coke.And
there are some exceptional things like: “environmental protection laws” they
some what effect the industry of Coke. From last two years Government is going
to be really very much conscious about the environment. But after making the
adjustments in plants and applying the proper way of wastage the chances of
being affected by the “protection laws” are going to be diminished. So it
impact good for the Coke’s reputation. And the second thing in political
variables which effects Coke is “elections & military take over” Because
in the days of elections and marshal law’s condition the countries production
in any field is declined. So it affects slightly the revolution of Coke.So
“political conditions” are over all leave neutral effects on coke’s
industry.ECONOMICAL VARIABLES
Economical
VariablesStrongly
Effected ++
Some what
Effected +
No Effect + ?
Some what
Effected ?
Strongly
Effected ??
Do soaring
interest rates make business task any harderYES
Any effect due
to inflationYES
Anything done
to reduce unemploymentYES
Any effect of
11th September 2001, incident at Coke in PakistanNE
Conclusion Of
Economical AnalysisIt
could be seen that “economical variables” highly affects the Coke’s
resolution. Economic factors are those actors who effect the production of any
industry. So, Coke is not the out of question. If the economic conditions of
the country is not that strong and Coke increases its Price in this situation.
Then it would impact highly negative. And inflation is also not a good position
for any country’s production point of view. It also impacts highly negative in
the Coke’s production.And
as a country concerned like “Pakistan” where the unemployment rate is very much
high. The Coca-Cola system in Pakistan employs 1,800 people. During the last 2
years, the Coca-Cola system in Pakistan has involved over $130 million (U.S).
When we draw the conclusion of “economic variables”. Then we come to
know that if economic variables are in the favorable position of country then
they impact good other wise the impact highly bad.SOCIAL VARIABLES
Social
variablesStrongly
Effected ++
Some what
Effected +
No Effect + ?
Some what
Effected ?
StronglyEffected
??
Effects of
advertisement of Coke on Public popularityYES
How will do
Coke’s contribution affect charity organizations of PakistanYES
Has rising
consciousness of natural resources in people effected your “save environment
activities.YES
CONCLUSION OF
SOCIAL ANALYSISEDUCATION
The
Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their
families around the world. The Coca-Cola Company is committed to helping people
make their dreams come true. All over the world, we are involved in innovative
programs that give hard-working, Knowledge-hungry students books, supplies,
places to study and scholarships. From youth in Brazil to first generation
scholars, educational programs in local communities are our priority.ENVIRONMENT
A
large part or our relationship with the world around us is our relationship
with the physical world. While we have always sought to be sensitive to the
environment, we must use our significant resources and capabilities to provide
active leadership on environmental issues, particularly those relevant to our
business. We want the world we share to be clean and beautiful. We are always
innovating to bring you different delicious beverages. This same spirit of
innovation comes alive in our environment programs. We’re committed to
preserving our environment, from use of more than $ 2 billion (U.S) a year in
recycling content and suppliers, and environment Management initiatives, down
to very local neighborhood collection and beautification efforts. Here’s a
sample of what we’re doing in different communities around the world regarding
the conservation of water and natural resources, climate changes, waste
environment education.The
Coca-Cola system in Pakistan operates through eight bottlers. Four of which are
majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL).COMMUNITY
INVOLVEMENT:In
2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system
initiated a famine-relief program to help victims and was the first
private-sector company to assist. The Coca-Cola system in Pakistan initiated a
voluntary Hajj program that allows one employee from each plant, selected
through a draw, to be sent on the Holy Pilgrimage to Mecca at the Company’s
expense.TECHNOLOGICAL VARIABLES
Technological
variablesStronglyEffected
++
Some what
Effected +
No Effect + ?
Some what
Effected ?
Strongly
Effected ??
Have business
innovations effectively promoted your businessYES
Has the
government’s regulations ever hindered in importing technical equipmentYES
Does Coke help
in promoting paperless environmentYES
Conclusion of
Technological AnalysisOf
course business innovation leaves highly good impacts in the business of
Coke. As coke use more advance technology in its production process. It will
resulted in increment of their production through out the country.As
far as the “governmental hindrances” are concerned the impacts highly
bad on coke’s production. Ever year when budget in announced government taxes
rates always shoot up. This approach of government decreases the profit margin
of Coke.As
the coke helping in promoting “paperless environment” .it impacts good,
because computers are the basic need of any person now a days. And though it’s
a big industry so it is promoting the trend of paperless environment. And it is
giving the way of other industries to come to new technologies and into a new
world of business. Through computers coke can increase the efficiency of its
business and can have up –to-date data about their productions.21.0 Product
profile (Virgin Drinks)21.1
Product: Virgin drinksIt has been a long time that Global Beverage Co. has
been established at a beautiful site of Gazipur. It has come with the quality
food & beverage in Bangladesh. Among its beverages (Virgin Cola & Diet
Virgin); Virgin cola is the most popular drink among the young people as well
as the children for its fantastic packaging, TVC and good taste.Virgin drinks were launched on 16th December, 2005
with two flavors Virgin Cola and Diet Virgin. Virgin drinks focuses on mainly
young people who like the enjoyment and fun. Diet Virgin was introduced for the
people who are very conscious with their health.The product Virgin has come with the following
variations in the market-- 200
ml bottle - 500
ml bottle - 1500
ml or 1.5 liter bottle - 200
ml can
The Virgin drink has been made with the latest
technology. So there is no chance to occur changeability in taste. The cola
drinks contain a very strong taste which can compete with the market leader
Fizz up and MOJO. As a member of the Global Beverage Co. Ltd., Virgin Cola is
manufactured in the factory which is situated in Gazipur, Bangladesh. The
packaging of Virgin Cola attracts the customer.The pay off line for MOJO is “It’s your life color it”.
The ingredients that are used to make the Virgin Cola are-
Ø Granulated Sugar,
Ø Carbon Dioxide,
Ø Phosphoric Acid,
Ø Flavorings,
Ø Caffeine etc.
Nutrition
facts (Typical value per 100 ml) –·
Energy = 186 KJ/ 44 k cl.·
·
Protein = less than 0.10 gm·
22.0
PROMOTIONAL ACTIVITIESAll companies need to promote their product in front
of the target customer. Now a day advertisement has become the war field for
the marketers. Virgin Cola is also trying to fight with their competitors in
the field of advertisement. Nevertheless, we all know that good advertisement
is necessary to establish a product. Catchy advertisement can ensure the
success in the battlefield. After launching, Virgin cola trying to establish
itself in the market and some of the cases they succeed. Now we try to show how
Virgin concentrating on their promotional activities.The Virgin has
been targeted for the young generation is designed for fun loving young adults.
- Television,
- Newspaper,
- Poster,
shop signs & Billboards, - Street/
Concerts – all are used for promotion of Virgin, - Sponsorship
of different special event such as reunion,
22.1 current Promotional Scenario OF Virgin
In our country, marketers do promotional activities
through billboards, TV ads, sponsorship, newspaper ads, sales promotion, point
of purchase ads and distribution. Virgin cola is ahead of the competitors and
in few cases, they are not up to the mark. At first, we will describe the cases
where Virgin cola is still behind their competitors, what they are doing, and
what will change their environment.22.2 Suggestive Promotional Tools
22.2.1 Newspaper Ads
Newspaper
AdOperant
ConditioningEncouraging the target customer to
buy one and get one free.This partial consumption can lead to
a permanent change in behavior in future.The number of paper ads should
have to be increased. Otherwise, they cannot make mass people aware about their
product. It should also contain high imagery, relevant with product cola.22.2.2 TVCs
The frequencies of the TV ads
have to be increased. People who watch TV regularly are seeking for innovative
things made by the marketers. So TV ads should be brought with a new format,
with more new things so that it can catch the target aspect with the new one.22.2.3
SponsorshipTill now Virgin cola make sponsorship of few events
like concerts, nabanno utsav, bangla noboborsho etc. they should include cyber
café, canteens of university, fast food shop and other places where people goes
frequently. By doing so they can be with the target
audience and we will find more aware people.22.2.4 Sales
PromotionThey should in for massive sales promotion to attract
people from other drinks.Most of retail shops use
refrigerators supplied by Soft Drink Company. The main condition the retailer
faces that they must keep the corresponding soft drink (which company provides
refrigerators) first then they can keep some other thing. These refrigerators
are posted in a way that the people can easily recognize their brand.On the other hand, Virgin
sponsors very few of the shop sign of the retail stores, cafeterias,
restaurants etc like other brands named Coca-Cola, Pepsi etc. There is a point
to add: there was also a demand-supply disorder at the point of the launching.
As a result, it failed to retain the booming demand that occurred due to the
successful TVC. Although the product has a moderate demand now a days it is not
supplied accordingly. As a result, retailers do not have the product. Sometimes
consumers cannot buy it when they want to, due to shortage of supply.They should supply their own refrigerators to the
retailers, so that the drinks can always be kept cool.
The supply of drinks should meet up the demands. If they supply less than people will fail to
purchase Virgin cola whenever they intend to buy them. Therefore, in this field
they need to bring their concentration.23.0 DISTRIBUTION OF VIRGIN Cola
The
distribution of Virgin Cola is strong enough as it is quite available in every targeted
area. To distribute this product the company follows the following distribution
channel-Manufacturer Wholesaler Retailer Consumer
For the product availability the customers can get
Virgin at any place when they need it. It is seen that this product has been
successful to occupy the refrigerators in the outlets so that is found chilled.The Distribution Channel Looks Like
Figure:
Distribution Channel of Virgin Cola24.0 PRICING STRATEGY
The three different sizes of RC Cola have been priced
differently.- 250
ml bottle = 12 tk. - 500
ml bottle = 20 tk - 1
liter bottle = 40 tk. - 150
ml can = 15 tk.
Here wholesalers take 0.5
-1.5 tk and retailers take 2.00-2.5 tk as profit. Again comparing to the
competitors product, the price is low enough to encourage the target market to
shift their brands towards Virgin.25.0 FUTURE
PLAN REGARDING THE STRATEGYThe immediate marketing
goals are summarized in the following key objectives:1. Have a cumulative 1500000
customers base by the end of 2010.2. Set up a strong
distribution channel by careful selection and proper execution of companies
strategies.3. Provide the most
attractive and affordable products and services to the customers.4. Aggressive market
promotion and branding through effective advertisement and Promotion.26.0
Comparative dataIn this report I have studied three beverage company
profiles. They supply different kinds of soft drinks, different, taste, color,
flavor such as cola lemon and the like. To compare the data among these three
groups I have used here my view point, personal experience. I have collected
this data from my neighbours, my family members. I think logically I present
this comparative data. In this report three beverage companies are Akij group,
global beverage, Partex beverage. There is lot of things to compare among them
but I compare among their market segmentation such as age, occupation, gender
their current market positioning and the like.Among age segmentation 15-20 Mojo demand is 9%,rc
6%,virgin is also 6%.20-25 Mojo demand is 85%,rc 60%,virgin 40%.25-35 Mojo
4%,rc 20% virgin 35%.35-45 Mojo 1%,rc 10%,virgin 15%.above 45 Mojo only 1%.rc
4%,virjin is same as rc. So we see that Mojo is very popular drinks the age
from 20-25 teenagers like this soft drinks most. Age from 25 to 35 like virgin
most. And the age above 45 like virgin and rc equally. So it differs market
demand.Now we compare among occupation segmentation of this
three group. student prefer Mojo maximum and it is 88%,rc 76%,virgin 68%.from
private sector virgin is very popular and it is 15% where rc is 8% and Mojo is
only 6%.business person like virgin most 12%,rc 10% Mojo 3% other like rc
6%,virjin 5%,mojo 3%.In gender segmentation female like Mojo only 29% , rc
27% ,virgin 34%and male like Mojo 71% ,73% rc, virgin 66%.here we see that
female like virgin most male like rc most.In comparison among market positioning among this
three company Mojo is 9%,coca cola is 54%,pepsi is 28%,other is 9% where rc is
12% and other 6% and lastly virgin overall demand in the market is 6% and
others 12% demand for coca cola and Pepsi is same.There are various things to compare among this three
group. But it is not possible to give all the information because of
information availability, time shortage. In Bangladesh beverage market
condition is now quite better than before. Before people know only two kinds if
drinks coca cola and Pepsi. but now there are various soft drinks available in
market such as rc cola ,euro cola ,virgin, Lemu, Mojo and the like. And now
they have a strong position in the market.27.0 conclusion
People prefer beverage pricing but it has to improve
its image in status and quality issues. Unfortunately, Virgin is lagging behind
due to inadequate communication of its brand elements like slogan, name’s
meaning etc. It has also failed to communicate its own positioning to the
target consumers. However, still now it has the chance to recover its own
position because about 20% of the target customers are attached to RC Cola.
MOJO have not constructed their belief structure. They have to develop their promotional
activities. It has been only few years that Mojo has launched but in this time
they have achieved much popularity because of their colorful packaging,
developed distribution channel, TVC etc. RC cola is on the increasing rate. It
has gain much popularity than Mojo or virgin. For unique taste and product
varieties RC Cola is increasing its sales day by day. - Street/road