The Current Market Scenario of Beverage Industry in Bangladesh

view with images and charts

The Current Market Scenario of Beverage Industry in Bangladesh


In economics, a point at which the forces of supply and demand converge to establish a price for an article of trade.It may be a physical centre, usually designeted by the term “marketplace”,or it may presented simply a group of interested buers and sellers,who are seattered geographically and whose bids and offers set a price. Public markets developed from the fairs of medieval Europe, particularly those in England, France, and the low countries.In those nations, fairs served principally as a means for selling the agricultural produce of the area.This type of market has existed for years in the United States, one of the oldest being in new orleans.Since world war we, however, mass distribution and modern refrigeration and processing methods have led to a sharp decline in the economic role played by such markets.

Organized stock exchanges or securities markets, commodity markets, and the money market are also examples of public markets. A stock market enables investors to buy or sell bonds or shares of stock. Of more than a dozen securities exchanges in the United States, the largest is the New York Stock Exchange. Commodity markets deal in contracts to buy or sell foods, metals, or other gods. The Chicago Broad of trade is the largest association of commodity traders in the United States. Money or currency markets are concerned with large-scale money and credit transactions by banks, either within a single country or internationally.


Marketing-As defined by the committee on deffinations of the American Marketing Association,” marketing is the performance of businass activities directed toward, and incident to, the flow of goods and services from producer to consumer or user.”Marketing ,therefore ,is made up on the one hand of such physical activities as transporting,strong,and selling goods,and on the other hand of a reries of decisions that must be reached by any organization undertaking any part of the process of moving goods from the producer to the consumer. People often say that marketing means shopping in the supermarket.Originally, however, marketing stems from the Latin word mercari, meaning “to truck and barter.” Barter exchange of fish, game, salt, and tools first took place in prehistoric societies. Trucking and bartering became periodic at fixed places as production expanded beyond daily subsistance requirements.

The marketing concept

The marketing concept is a management philosophy stating that an organization should strive to satisfy the needs of consumers through a coordinated set of activities that also allows the organigation to achive its objectives.Thus customer satisfaction is the major force underlyning the marketing concept and driving the entire company. The marketing concept calls for all departments and all members to be committed to satisfying customers. The firm must determine consumer needs and wants,develop quality products that satisfy them,make products readily available at prices acceptable to buyers (and that will allow a profit),and provide service and after-sales support. Frirms benefit from practicing the marketing concept.They do not waste money on developments in which customers are not interested. Also, customers pay more for products they belive will provide greater value and satisfaction, they come back, and they refer business. Repeat business lowers sales costs and boosts profits; holding on to current customers is about one fifth the cost of acquring new ones.Some marketers say the marketing concept helps set up a cycle of success: Customer satisfaction leads to loyal customers, which produces higher profits that make employees want to stay with the firm, which in turn makes for better customer service and satisfaction.

Focusing on the customer sounds like an obious, commonsence way to run a successful business,but not all firmsgear their marketing activities closely to the customer. The marketing concept is not alwayes easy to put into practice. Top-level managers must be commited to it and must gain the commitment of other members of the organization. An organization may need to restrucrure departments or functions to better coordinate activities. Often a firm must be willing to forgo short-term profits for long-term customer satisfaction. And because consumer tastes and preferances constantly change, the firm must continually obtain information about customers and their needs and tailor its products to meet changing consumer preferences. The business action illustrates how several firms, large and small, practice the marketing concept.

The marketing concept has been expressed in many colorful ways:

Meeting needs profitably

Find wants and fill them.

Love the Customer, not the product

You are the boss.

Importance of marketing

Financial success often depends on marketing ability.Finance,operations,accounting,and other business functions will not really matter if there is not sufficient demand for products and services so the company can make a profit .There must be a top line for there to be a bottom line.Many companies have now created a chief marketing officer,or CMO ,position to put marketing on a more equal footing with other C-level executives such as the chief executive officer (CEO) and chief financial officer (CFO). Press realeases from organizations of all kind-from consumer goods makers to health care insurers and from non-profit organizations to industrial products manufacturers-trumpet their latest marketing achivements and can be found on their web sites. In the business press, countless articles are devoted to marketing strategies and tactics.

Marketing is tricky, however,and it has been the Achilles’heel of many formerly prosperous companies.But making the right decisions is not alwayes easy.Marketing managers must make major decisions such as what features to design into a new product,what prices to offer customers,where to sell products,and how much to spend on advertising or sales.They must also make more detailed decisions such as the exact wording or color for new packaging.The companies at greatest risk are those that fail to carefully monitor their customers and competitors and to continously improve their value offerings. They take a short-term, sales-driven view of their business and ultimately,they fail to satisfy their stockholders,their employees,their suppliers,and their channel partners.Skillful marketing is a neverending pursuit.

What do people want from marketing?

Consumer needs And Interests:

Consider the consumer interest. Consumers want to be supplied with goods and services. Households want a broad variety of goods available in quantities small enough to consume before they spoil or become outmoded. Usefulness to a household means being able to buy small quantities that can be economically supplied.Furthermore, the household wants to avoid spending a lot of time and effort searching for the many varieties of goods required for daily consumption.

Consumers demand fairly accessible location convenient shopping times, small quantities, and large varieties. These demands create a discrepancy in economics of consumption and production that trigger the marketing process. This “discrepancy” between assorments that consumers demand and assortments that are economical to produce gives raise to the marketing services needed to equalize the supplies offered by producers with the demands of consumers.

Business needs:

Business people in pursuit of profit need tools to help them identify promising market opportunities, marketing hazards, and means for managing and supplying demands. Private business wants a minimum of government interference and a stable political and economic climate. Consequently, while seeking freedom to compete with others, most business firms do not resist government efforts to protect their particular industry. In Europe the live-and-let-live attitude takes the form of market sharing known as cartelization, where rivals agree to stay out of each other’s trading areas or not to cut prices.

Social aspects:

Social scientists see marketing as an adaptive feedback mechanism for mobilizing resources for risky enterprises and allocating them according to the intensity of competing demands for their use. Marketing has proven highly efficient in redirecting the uses to which resources are put. Marketing also serves to mobilize and allocate scarce resources by means of the market supply-demand-price mechanism. People willing and able to pay for the use of a certain resource may well bid that resource away from uses that other people, less able to pay, consider just as important.This situation gives rise to the question of distributive justice.

Benefits of one group frequently yield costs for others.Therefore, farmers organize marketing cooperatives in hopes of wresting control over their economic destinies from the unpredictsble fluctuations in market price.Minorities seek government protection from unscrupulous lenders and sellers.Enviornmentalists seek legislation on returnable beverage containers and a ban on enviornmentally hazardous practices.Consumerists seek a broad range of political and legal weapons to use in their struggle with makers of hazardous or shoddy products.

How does marketing work?

The Mechanics of marketing:

Fully negotiated exchanges specify precisely the qualities, performance characteristics of the goods themselves, the time and place of delivery, the time, place, and method of payment, and the ancillary services to be provided to the buyer by the seller after the goods are in use. Even the use of money, so commonplace in modern exchange, took thousands of years to develop.Guarattees and warranties for service after sales are still evolving as goods become more complex. Furthermore, “complex exchanges” are required to tie each producer to widely dispersed consumers by means of marketing intermediaries.

Money exchange in the pursuit of self-interest guides the private sector of the economic system .Each organization in a marketing channel must coordinate its behavior and expectations with that of its trading partners. Motivated largely by the self-interest of the trading partners-or what Adam Smith called the “invisible hand”-the amazing thing is not that this system sometimes fails but that it usually works. It succeeds to the degree that it can deliver the quantities and assortments of goods that many scattered consumers demand from producers-whose only clues to what to make and distribute are provided by sales, profits, and marketing information.

Determining Consumer Demand:

Within the market-exchange sector, specialists discover and measurement wants. They manage demand, using tools ranging from product and package design to promotion and pricing instruments. They physically supply and coordinate the delivery of supplies to match the location and timing of demands. Detecting demands takes two major forms: marketing research and environmental “scanning.” Marketing research consists of reporting and forecasting sales, surveys, and experiments with all the marketing instruments that encourage people to buy. Information about product preferences, selling prices, and promotional themes is used to discover what “market niche” the product can fill most effectively.

Since not all of a marketing program lies within the power of the marketing organization to command, scanning the environment discovers markets as they develop. Watching competitors, finding new technological applications for end uses, and studding economics and social relationships and trends enable a firm to anticipate changes. Demand discovery activities can then be directed toward maintaining a portfolio of products and services reasonably matched to emerging demands despite the uncertainties of consumer fads and changing tastes.

Demand managers so often seek to expand demands that they are given the misleading job title of “sales manager”. Major marketing fields include retailing, advertising, product planning, sales management, and personal selling. These career paths lead to the top of corporate management because mastery of these activities is crucial to the income-producing side of business. People who direct and coordinate demand management programs are usually given the title of “marketing manager”. Marketing managers coordinates pricing, product design, advertising, and personal selling-along with those aspects of physical display and distribution intended to lure customers into purchasing behavior.


Physical distribution has been called the last frontier of marketing because in physical-supply activities opportunities exist for reducing costs, improving customer satisfaction, and raising marketing productivity. Physical-distribution managers match supply to demand. They concentrate supplies in quantities large enough to ship economically, build up the assortments that customers want to consume together, and route these to scattered consumption sites. The “demand-supply equalization process” requires coordination all the way from producer to consumer. Market-news reporting of supply, demand, and price reporting-particularly for farm and extractive-industry products-helps marketers know what to ship, where to ship it, and when.

Business and marketing ethics

Ethics which is a branch of philosophy deals fundamentally with the rules of human conduct from moral point of view. Business ethics is a specialized area of general ethics in which an awareness of ethical issues and a systematic approach to solving them are particularly important. Like other areas of ethics, business ethics has to do with the establishment and maintenance of vital and significant relationships among human beings – specifically, in this case, among employers, employees, competitors, consumers, suppliers, creditors, community, etc. As in other areas, ethical principles have the valuing of life, the string for goodness and avoiding of badness, the just and fair distribution of good and bad, honesty and truth telling, and individual freedom – apply to business ethics.

Social Responsibility of business

Social Responsibility of Business refers to management decisions and actions taken for reasons at least partially beyond the organization’s direct economic or technical interest. The concept of social responsibility is merely in growing stage towards social effectiveness of business. It is the philosophy which justifies business involvement in its social community. The simple fact is that business is a major social institution, and as such it is importantly involved in social values. In the operation of pluralism many groups influence business, and, in turn, business influences them. Society’s expectations of business are increasing dramatically – perhaps excessively. Society expects that business which enters a community will make it better. Business leaders, in order to perform their new role effectively need to develop value systems that recognize responsibilities to claimants other than stockholders.

Marketing Strategies for Competitive advantage:

Designing a competitive marketing strategy begins with thorough competitor analysis. The company constantly compares the value and customer satisfaction delivered by its Products, Price, Channels, and Promotion with those of its close competitors.

we will discus the companies’ controllable tactical marketing tools one after another.


Product means the goods and service combination the company offers to the target market.

The concept of product life cycle:

To say that a product has a life cycle is to assert four things:

Products have a limited life.

Product sales pass through distinct stages each posing different challenges, opportunities, and problems to the seller.

Profits rise and fall at different stages of the product life cycle.

Products require different marketing, finance, manufacturing, purchasing, and human resource strategies in each stage of their life cycle.

Most product life cycle curves are divided into four stages:

Introduction: A period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses incurred with product introduction.

In launching a new product, marketing management can set a high or low level for each marketing variable (price, promotion, distribution, product quality). Considering only price and promotion, management can pursue one of four strategies:

a) Rapid skimming: Launching the new product at a high price and a high promotion level.

b) Slow skimming: Launching the new product at a high price and low promotion.

c) Rapid Penetration: Launching the product at a low price and spending heavily on promotion.

d) Slow Penetration: Launching the new product at a low price and low level of promotion.

Growth: A period of rapid market acceptance substantial profit improvement.

During this stage, the firm uses several strategies to sustain rapid market growth as long as possible:

It improves product quality and adds new product features and improved styling.

It adds new models and flanker products.

It enters new market segments


A period of a slowdown in sales growth because the product has achieved acceptance by most potential buyers. The maturity stage divided into three phases: growth, stable, decaying maturity. In the first phase, the sales growth rate starts to decline. There are no new distribution channels to fill. In the second phase, sales flatten on a per capita basis because of market saturation. In the third phase, decaying maturity, the absolute level of sales starts to decline, and customers begin switching to other products and substitutes.

Market modification:

The company can try to expand the market for its mature brand by working with the two factors that make up sales volume.

Volume =Number of brand user * usage’s rate per user.

The company can try to expand the number of brand users in three ways:

Convert nonusers

Enter new market segments

Win competitor’s customers.

Convincing current brand users to increase their usage of the brand can also increase volume. Here are three strategies:

The company can try to get customers to use the product more frequently.

The company can try to interest users in using more of the product on each occasion.

The company can try to discover new product uses and convince people to use the product in more varied ways.

Product Modification:

Managers also try to stimulate sales by modifying the product’s characteristics through quality improvement, feature improvement, or style improvement. Quality improvement aims at increasing the product’s functional performance-its durability, reliability, speed, and test. Feature improvement aims at adding new features that expand the product’s versatility, safety, or convenience. A strategy of style improvement aims at increasing the product’s aesthetic appeals.

Marketing mix modification:

Product managers might also try to stimulate sales by modifying other marketing mix elements: prices, distribution, advertising, sales promotion, personal selling, and service.

4). Decline: The period when sales show a downward drift and profits erode. Sales decline for a number of reasons, including technological advances, shifts in consumer tastes, and increase domestic and foreign competition. All leads to over capacity, increased price-cutting, and profit erosion.

New product development process

There are eight stages for new product development and they are given bellow__

Idea generation: New product ideas can come from many sources; customers, scientists, competitors, employees, channel members, and top management.

Idea screening:

Ideas should be written down and reviewed each week by an idea committee, which sorts them into three groups: promising ideas, marginal ideas, and rejects.

Concept development and testing: Concept development is a meaningful understanding of product idea, which is developed in consumer terms.

A product idea can be turned into several concepts. The questions are who will use the product? What benefit should this product offer? When to be used?

Marketing strategy development:

The plan consists of three parts. The first part describes the target market’s size, structure, and behavior. The second part outlines the planned price, distribution strategy, and marketing budget for the first year. The third part of the marketing strategy describes the long run sales and profit goals and marketing mix strategy over time.

Business analyzing:

Management needs to prepare sales; cost and profit projections to determine whether they satisfy company objectives. If they do, the product concept can move to the product development stage.

Product development:

If the product concept passes the business tests, it moves to R&D or engineering to be developed into a physical product. Up to now it has existed only as a word description, a drawing or a prototype. This step involves a large jump in investment that dwarfs the cost incurred in the earlier stages. At this stage the company will determine whether the product idea can be translated into a technically and commercially feasible product.

Market testing: After management is satisfied with functional and psychological performance, the product is ready to be dressed up with a brand name and packaging, and put to a market test.

Commercialization: If the company goes ahead with commercialization, it will face its largest costs to date. It needs to solved four questions: when, where (place, location and distribution), to whom (target market), how (marketing strategy)

Dealing with competitors

It would seem a simple task for a company to identify its competitors. In addition to the industry approach, we can identify competitors using the marketing approach: competitors are companies that satisfy the same customer need. We can gain inside by classifying firms by the role they play in the target market: leader, challenger, follower, or nicher.

Market leader strategy:

Many industries contain one firm that is the acknowledged market leader. This firm has the largest market share in the relevant product market. It usually leads the other firms in price changes, new-product introductions, distribution coverage and promotional intensity. Market leader strategy holds

Expanding the total market

Defending market share

Expanding market share

Expanding total market:

The dominant firm normally gains the most when the total market expands. The market leader should look for new user, new uses and more usage of its product.

Defending market share:

While trying to expand total market size, the dominant firm must continuously defend its current business against rival attacks. Sometimes the competitors are domestic; sometimes it is foreign. The best defense is a good offence. A dominant firm can use the six defense strategies and they are as follows

Position defense:

The basic defense is to build an impregnable fortification around one’s territory. Although defense is important, leaders under attack would be foolish to put all their recourses into only building fortification around their current product.

Flank defense: The market leader should also erect outposts to protect a weak front or possibly serve as an invasion base for counterattack.

Preemptive defense: A more aggressive maneuver is to attack before the enemy starts its offense. A company can launch a preemptive defense in several ways. It can wage guerrilla action across the market-hitting one competitor here, another there-and keep every one off balance.

Counteroffensive defense: Most market leaders, when attack, will respond with a counter attack. The leader cannot remain passive in the face of a competitor’s price cut, promotion blitz, product improvement, or sales territory invasion. In a counteroffensive, the leader can meet the attacker frontally or hit his flank or launch a pincer movement.

Mobile defense: The leader stretches its domain over new territories that can serve future centers for defense and offense. It spreads through market broadening and market diversification.

Contraction defense: The best courses of action then appear to be planned contraction. Planned contraction means giving up weaker territories and reassigning resources to stronger territories.

Expanding market share:

Market leaders can improve their profitability by increasing their market share. A company should consider three factors before pursuing increased market share:

The possibility of provoking antitrust action.

Economic cost

The wrong marketing mix strategy.

Market challenger strategy:

Firms that occupy second, third, and lower ranks in an industry are often called runner-up, or trailing firms. The competitive attack strategies available to the market challengers.

Frontal attack

Flank attack

Encirclement attack

By pass attack

Guerrilla attack

Market follower strategy:

Many companies prefer to follow rather than challenge the market leader. A market follower must know how to hold current customers and win a fair share of new customers. Four broad strategies can be distinguished:


The counterfeiter duplicates the leader’s products and package and sales it on the black market or through disreputable dealers.


The Cloner emulates the leader’s products name and packaging, with slight variation.


The imitator copies some things from the leader but maintains differentiation in terms of packaging, advertising, pricing and so on.


The adapter takes the leader’s products and adapts or improves them.

Market- Nicher strategy:

An alternative to being a follower in a large market is to be a leader in a small market, or niche. Smaller firms normally avoid competing with larger firms by targeting small markets of little or no interest to the larger firms.

The key idea in nichemanship is specialization. The following specialist roles are open to nichers: End-user, Vertical-level, Customer-size, Geographic, Product or product-line, Product-feather, Quality-price, and Service specialist.


Price is the element in the marketing mix that produces revenue; the other elements produce costs. Companies set price in a number of ways: in small companies top management sets prices. In larger companies, top management sets the general pricing objectives and policies proposed by lower levels of management. In industries where pricing is a key factor companies establish a pricing department. This department reports either to the marketing department or top management. The firm has to consider a large number of factors in setting a price for the first time. Now we will, describe a six-step procedure for price setting:

1). Selecting the pricing objectives:

The clearer a firm is about its objectives, the easier it is to set price. Each possible price will have a different impact on various objectives such as profits, sales revenue, and market share .A Company can pursue four major objectives through its pricing.

Survival: When a company faces over capacity intense competition, or changing consumer wants, the objective is to survive .To keep the plant going and the inventories turning over, they company must cut price.

Current profit maximization: Many companies want to set prices that will maximize current profits. They estimate the demand and costs associated with alternative prices and choose the price that produces maximum current profits, cash flow or rate.

A market share leadership: Some companies believe that if they own the largest market share, they will enjoy the lowest cost and highest long run profit. They go after market share leadership by setting price as low as possible.

Product- quality leadership: A company may aim to be the product quality leader in the market. This normally calls for charging a high price to cover the high product quality and high cost of R and D.

2). Determining demand:

Each price set by the company will lead to a different level of demand and therefore have a different effect on its marketing objectives. In normal case demand and price are inversely related, that is, the higher the price, the lower the demand. But in the case of prestige goods, the demand curve is positively sloped.

Methods of estimating demand schedule:

There are two ways to estimate demand.

Competitors price remain constant regardless of the price charge by the company.

Competitors charge a different price for each price the company chooses.

Price elasticity of demand:

Marketer needs to know how demand responds to a charge in price.

Price elasticity of demand = %charge in quantity demand / % charge in price.

If demand hardly changes with a change in price, the demand is inelastic. If demand change greatly the demand is elastic.

3) Estimating costs:

Demand sets a ceiling on the price, and costs set the floor. Price can be set at any point between the two. Types of costs: Cost takes two forms, Fixed and Variable.

Fixed costs: Fixed costs are costs that do not vary with production or sales revenue, that is, rent, interest, salary and so on.

Variable costs: Variable costs vary directly with the level of production. That is, cost of raw material, packaging, etc. Variable cost per unit is fixed.

Total cost = Fixed cost + Variable cost

Average cost = Total cost / number of units produced.

Cost behavior at different levels of production per period:

In order to set price intelligently, management needs to know how its costs vary with different levels of production.

4) Analyzing competitor’s price and offers:

To set the price, company needs to learn the price and quality each competitor’s offer. This can be done in several ways.

The firm can acquire competitor’s price lists, buy competitors equipment and take apart.

The firm can ask buyers how they perceive the price and quality of each competitor offer.

If the firm’s offer is similar to a major competitor offer then the firm price should be closer to the competitor. If the firm’s offer is inferior, the firm’s price should not be more or equal to the competitors. If the firm’s offer is superior, the firm can charge more than the competitor. The firm must also be aware that competitors might charge this price in response to the firm’s price.

5) Selecting a pricing method:

Given the three Cs – the customers demand schedule, the cost function and competitor’s prices – the company is ready to select a price. The price will be somewhere between one that is too low to produce a profit and one that is too high produces enough demand.

Some price setting method:

Cost-plus pricing: cost-plus pricing is to add a standard mark up to the product cost.

Formula to calculate cost-plus pricing is –

Mark up price = unit cost/ (1- desired return on sales)

Cost pricing remains popular for a number of reasons-

Sellers can determine costs much more easily than they can estimate demand.

As all firms in the industry use this pricing method, this price tends to be similar.

Many people feel that cost-plus price is fairer to both buyer and seller.

Break even analysis and profit pricing: Here the firm determines the price that would produce its target rate of return on investment.

The target profit price is calculated by –

Target profit price = Unit cost + (desired return * invest capital)/Unit sales

Break even volume = Fixed cost / (sales price – Variable cost)

C) Perceived value pricing:

some times companies set their price basing on the products perceived value. They see the buyer’s perception of value not the sellers cost, as the key to pricing. They use the non-price variables in the marketing mix to build up perceived value in the buyer’s mind.

d) Going rate pricing:

In going rate pricing, the firm pays less attention to its own costs or demand and bases its price largely on competitors’ prices. The firm may charge it, more, or less than its major competitors.

e) Sealed bid pricing:

This pricing is common where a firm bids for jobs. The firm bases its price on competition of how competitors will price rather than on a rigid relation on the firm’s costs or demands.

6) Selecting the final price:

In selecting the final price the company must consider additional factors.

Psychological pricing:

Many consumers use price as an indicator of quality. Prestige pricing is effective with ego sensitive products. Such as perfumes and expensive cars. Many sellers believe that price should end in an odd number.

Impact of price on other parties:

Management must also consider the relations of other parties to the contemplated price. These parties are distributors, dealers, company sales force, competitor’s suppliers and government.

Company pricing policies: The contemplated price must consistent with company pricing policies. Pricing department of the company must set a price that is responsible to customers and profitable to the company.

Place /Distribution (channel)

Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

Producers do gain several advantages by using intermediaries.

Many producers lack the financial resources to carry out direct marketing.

Producers who establish their own channels can after earn a greater return by increasing their investment in their main business.

Marketing intermediaries, through their contact, experience, specialization, and scale of operation offer the firm more than it can achieve on its own.

Middlemen reduce the amount of work and provide cost savings.

Channel design for Manufacturers:

In designing marketing channels, manufacturers have to struggle between what is ideal and what is available. Designing a channel system calls for analyzing customer needs, establishing channel objectives, identifying the major channel alternatives and evaluating them.

Analyzing customer needs for service output:

Understanding what, where, when, why and how target customers by is the first step in designing the marketing channel. Channels produce five service outputs:

Lot size: The lot is the number of units that a consumer receives at any given delivery. The smaller the lot size, the greater the level of service provided by the marketing channel.

Waiting time: Waiting time is the period during which consumer must wait, after ordering, for receipt of the goods. Consumer normally prefers fast delivery channels.

Spatial convenience: Spatial convenience or market decentralization expressed the degree to which the marketing channel makes it easy for customers to purchase the products.

4. Product variety: The greater the variety of product provided by the marketing channel the higher the service output.

Establishing the channel objectives and constrains:

Effective channel planning means that the manufacturer should determine which market segments to serve and with what objectives. Each producer develops its channel objectives in the context of following constraints:

Customer characteristics

Product characteristics

Middlemen characteristics

Competitive characteristics

Company characteristics

Environmental characteristics

Identifying the major channel alternatives:

After establishing channel objectives, the firm should identify its major channel alternatives. A channel alternative is described by three elements:

Types of intermediaries: The firm should identify types of intermediaries available to carry on its channel work.

Company sales force

Manufacturers’ agency

Industrial distributor

Number of intermediaries:The companies have to decide on the number of intermediaries to use at each channel level. Three strategies are available:

Intensive distribution

Exclusive distribution

Selective distribution

Terms and responsibilities of channel members: The producer must determine the condition and responsibilities of the channel members. The main elements in the “trade-relation mix” are given below

The price policies

Conditions of sales

Territorial rights

Evaluating the major channel alternatives:

Each channel alternatives to be evaluated against the following criteria

Economic criteria

Control criteria

Adaptive criteria

Sales promotion

Sales promotion consists of a diver’s collection of incentive tools, mostly short term, and design to stimulate quicker or greater purchase of particular products or services by consumers or the trade Sales promotion includes tools for consumer promotion (samples, coupons, cash refund offers, prices off, premiums, prizes, patronage rewards, free trials, warranties, tie-in promotions, cross-promotions, point-of-purchase displays, and demonstrations); trade promotion (prices off, advertising and display allowances, and free goods); and business-and sales force promotion (trade shows and conventions, contest for sales reps, and specialty advertising)


What is beverage? :

A beverage is composed chiefly of water used as a drink for the purpose of relieving thirst and introducing fluid to the body, nourishing the body, and stimulating or soothing the individual. Beverages are consumed mainly for their thirst quenching properties or for their stimulating effects. Three groups of beverages are commonly consumed. These include:(i) carbonated non-alcoholic beverages or soft drinks,(ii) non-carbonated non-alcoholic stimulating beverages such as coffee and tea and (iii) alcoholic beverages.

History of beverage:

Carbonated nonalcoholic beverages are generally sweetened, flavored, acidified, colored, artificially carbonated, and sometimes chemically preserved. The origin goes back to Greek and roman times when naturally occurring mineral waters were prized for “medicinal” and refreshing qualities. But it was not until about 1767, when the British chemist Joseph Priestley found that he could artificially carbonate water, that the carbonated beverage industry got its start. An early method of obtaining the carbon dioxide was by acidification of sodium bicarbonate or sodium carbonate, and from the use of these sodium salts came the name “soda” which remains today, although most carbon diozide is no longer generated in this fashion. Gradually, fruit juices and extracts were added to carbonated water for improved flavor.

Each beverage must be considered foods in the broad sense, since all are made from food ingredients, all are subject to food laws and regulations, and all are consumed in large quantities. The annual per capita consumption of soft drinks in the United States in 1991 was 43 gal according to the U.S. Department of Agriculture, which was the highest of any category of beverage and well above the per capita consumption of milk. It is likely that soft drink consumption exceeds even tap water. In other countries and areas, packaged beverages may be safer to consume than the local water supply. Further, carbonated soft drinks furnish calories; coffee and tea, although no caloric, frequently are consumed with cream or suger and, thus are vehicles of caloric intake.

Classification of beverage

Beverages may be classified according to their function in the body. A particular beverage may have more than one function.

Refreshing : Water-plain, carbonated beverages not containing fruit

Juices; fruit juices; iced tea and butter milk with salt and lime juice.

Nourishing : Milk-pasteurised, skimmed, evaporated, dried, malted; butter

milk, chocolate and coco; milk shakes; eggs-egg nogs made with

whisky, rum, brandy, fruit juices, coffee and chocolate; fruit juice;

glucose, lemonade.

Stimulating : Egg nogs made with whisky, brandy, coffee; coffee or tea and cocoa

or chocolate beverage.

Soothing : Warm milk and hot tea.

Appetising : Soups, fruit juice and alcoholic drinks in limited quantity.

Carbonated non-alcoholic beverages

The most popular soft drinks include those based on cola (extract from the cola tree), orange, root beer, ginger, lemon and lime. Soft drinks may be classified into three types as carbonated, fruit favored and sparkling soda water. The carbonated beverages may contain artificial flavor or natural fruit juice.

Ingredients and Manufacture:

The major ingredients of carbonated soft drink beverages in addition to water and carbon dioxide are sugar, flavoring, colors, and acids. Typical levels of sugar, carbon dioxide, and acidity for various beverages are given in table 1, although the products of different manufacturers may very somewhat from these values.


The most common sugar used in soft drinks is high-fructose corn syrup or related corn sugars. Initially, sucrose, purchased as pure colorless syrup from the manufacturer or made into syrup at the beverage plant from high-purity crystalline sugar, was most commonly used and is still widely used. Increasingly, however, sucrose has been replaced with high-fructose corn sugars which are sweeter and thusless costly on an equal-sweetness basis. The corn sugar (or sugar syrup) is supplemented with flavoring, coloring, and acidic ingredients and may be stabilized with a preservative. Finished beverages contain about 8-14% sugar. The sugar not only contributes sweetness and calories to the drink but also adds body and mouth feel. For this reason when dietetic beverages are made with a non-nutritive or low-calorie sweetener to replace all or much of the sugar, an agent such as carboxymethyl cellulose or pectin is sometimes added to give the same mouth feel as the sugar product.

Reduced calorie and non-nutritive sweeteners:

Soft drinks which provide no calories are sweetened with non-nutritive sweeteners such as saccharin, Acesulfame K, or cyclamate, whereas reduced-calorie soft drinks

Flavor Sugar Carbonation

Gas volume

Acid % PH
Cola flavor

Root beer

Ginger ales

Cream (vanila)

Lemon and lime







































Have sweeteners that have calories but also are high-intensity sweetners. This means that considerably fewer sweeteners must be used to get the same degree of sweetness, so the drink ends up with fewer calories. For example the common artificial sweetener aspartame (trademark nutrasweet) IS a dipeptide that yields 4 kcal/ g-the same as sugar-but is about 150-200 times sweeter than sugar (sucrose) and so can sweeten in very small amounts. Thus, it is a nutritive sweetener but contributes very few calories.


Synthetic flavor compounds, natural flavor extracts, and fruit juice concentrantes are used to flavor soft drinks. These flavors must be stable under the acidic conditions of the beverage and on exposure to light for a year or more, since bottled drinks may be held this long or longer. The flavors do not have to stable to heat much over 38(DEGRE) C, since beverages are not commonly heat-sterilized or pasteurized.

An artificial fruit flavor made from synthetic flavor compounds and natural flavor extracts (table 2) may contain over two dozen components contributing several hundred distinct compounds. Cola flavors may be as or more complex, and their compositions are guarded secrets, sometimes formulated to contain ingredients that will add to the difficulty of chemical analysis and duplication by competitors. Cola flavors may contain a source of caffeine, which is a mild stimulant. There also is a growing market for caffeine-free colas. When fruit derivatives that contain flavor oils are used, it is necessary to employ an emulsifying agent to keep the oils from separating out in the beverage. Water-soluble gums at low levels are the principal emulsifiers employed for the purpose.


Some important coloring agents for soft drinks are the synthetic colors, particularly U.S. certified food colors, which have been approved by the drug administration. All certified batches of such colors must meet stringent chemical purity standards in their manufacture. Caramel from heated sugar, a no synthetic color, is also commonly used in dark beverages such as colas. These coloring materials are much preferred to the natural fruit colors because of their greater coloring power and color stability. Even when natural fruit extracts or juices are used, their colors are generally supplemented with the synthetic colors.


Carbon dioxide in solution contributes to acidity, but this is supplemented with additional acid in most carbonated drinks. The main reasons for acidification are to enhance beverage flavors and to act as preservatives against microbial growth. The principle acids used are phosphoric, citric, fumaric, tartaric, and malic acids. Citric, tartaric, and malice are important natural acids of fruit and so they are used, along with numeric acid, mainly in fruit-flavored drinks, with citric being the most widely employed. Phosphoric acid is preferred for use in colas, root beer, and other no fruit drinks.

In addition to flavor enhancement, acid acts as a preservative in non-heated-treated beverages. However, unless a very high degree of sanitation is employed in soft drink

Manufacture, the PH imparted by the acid, even in combination with acidic fruit juices, is not sufficient to ensure long-term microbial stability. For this reason,an additional preservative may be necessary; the most common is sodium benzoate at a level of about 0.03-0.05% in the final beverage. In the acid drink, sodium benzoate is converted to benzoic acid, which is more effective as a preservative.


The major ingredient in carbonated soft drinks- accounting for as 92% by volume-is water. It is essential that the water be as nearly chemically pure as is commercially feasible, since traces of impurities react with other constituents of the drink. In this respect, municipal dirking water, although satisfactory from a bacteriological standpoint, generally is not chemically is not chemically pure enough for use in soft drinks. The standards for beverage water listed in Table 3 would not be met by most municipal water supplies.

The alkalinity of beverage water must be low to prevent neutralization of the acid used in the beverage, which would alter flavor and decrease the preservative property of the beverage. Iron and manganese must be low to prevent reaction with coloring agents and flavor components and flavor components. Residual chlorine must be virtually nonexistent since it adversely affects the flavor of the drink. Turbidity and color must be low for an attractive appearance of the drink. Organic matter as well as inorganic solids must be low since colloidal practical nuclei for carbon dioxide accumulation and release from solution, which results in beverages boiling and gushing when containers are filled or opened.

To achieve these high water standards, bottling plants generally condition water with additional treatments such as chemical precipitation of minerals, deionization, and addition of activated charcoal to remove odors, flavors, and residual chlorine, final paper filtration to remove traces that may pass the carbon filter, and deaeration to remove oxygen. Although the water supply in a bottling plant can be adequately controlled by these methods, the big problem occurs when the syrups and flavor bases are shipped to various locations to be used in fast-food restaurants and vending machines. In these locations the quality of the water will very and frequently not meet the tight specifications of the bottling plant. The quality of the drink may suffer and vary from location to location even though the syrup formula is constant.

Carbon Dioxide

The sparkle and zest of carbonated beverages stems from the carbon dioxide gas. Carbon dioxide can be obtained from carbonates, limestone, the burning of organic fuels, and industrial fermentation processes. Soft drink bottlers buy carbon dioxide in high-pressure cylinders from manufacturers who produce the gas to comply with food purity regulations. In the cylinders, the gas under pressure exists as a liquid. The amount of CO2 Used in beverages depends on their particular flavor and brand.CO2 improves flavor, contributes acidic preservation action, produces tingling mouth feel, and gives the sparkling effervescent appearance to the beverage.

The amount of carbon dioxide in beverages is measured in volumes of gas per volume of liquid. A volume of gas is the volume occupied by the gas under standard temperature and pressure. Thus, a beverage containing 2 liters of CO2 (at STP) per liter beverage is carbonated at 2 volumes. Most beverages are carbonated in the range of about 1.5-4 volumes .This is done with with a carbonator, of whivh there are several designs.In all, however, carbonation is speeded by proving intimate contact between the liquid and the CO2 gas, colling the liquid since the solubility of CO2 in water in greater the lower the temperature, and applying pressure to force more CO2 into solution. In practice, the entire flavored drink may be carbonated, or only the water may be carbonated for subsequent mixture with the flavored syrup.

Plant layout

Flavored syrup containing al of the drink ingredients except the remaining water and CO2 is pumped to a metering device called a synchrometer. Treated and deaerated water also is pumped to the synchrometer. This device then meters the syrup and water in fixed proportion to the carbonator. The carbonated beverage then goes to the bottling or canning line where it is admitted to sanitize containers under a CO2 pressurized atmosphere to prevent loss of CO2 and beverage boiling. The containers are than capped; they are not subsequently heat-treated. In restaurants and similar establishments, concentrated syrups containing the sweetener and flavors is directly mixed with carbonated water as the drink is being drawn. Syrup from the beverage manufacturer is held in one tank and pressurized carbon dioxide in a second tank.

Company profile

Company profile of Abdul monem limited

Abdul monem limited focusing to this philosophy grew over the years by providing the best services and highest quality products. Actually, this key philosophy has remarked Abdul monem limited as the most trusted and one of the leading companies in Bangladesh. Started as a construction contractors in 1956 and later diversified to food sector Abdul monem limited proudly represents brands like Coca-Cola,Igloo,Amomilk and that are the milestones to our quest to provide the best and quality products to our thousands customers.

Abdul monem limited started the business line as the infrastructure development contractors. Over the decades Abdul monem limited has successfully accomplished many projects including projects aided by the World Bank and Asian Development Bank. In recognition to our commitment for work excellence we have able to initiated projects in joint ventures and receive many rewards for the achievements.

Abdul monem limited maintenance and operation work of the Bangabandhu Jamuna Multi purpose Bridge for 5 (five) years. This bridge has a great impact over the socio-economic development of the people of the North Bengal region. They made joint venture contract with the INTERTOLL of South Africa for the toll collection and Sir Owen of Williams of England for the maintenance work. Abdul monem limited aims at generating appropriate financial results through sustainable growth and constant renewal of balanced business structure. The company is open and trustworthy to all its business partners and consumers. Through our business activities, they wish to make worthwhile contribution to the progress of the country. Guided by the visional believes in ensuring long ter