Overview of Virgin Trading Company Limited (Virgin Drinks)

5.1.3
Packaging:

Packaging involves designing and producing the
container or wrapper for a product.

We can classify packaging in to two stages as follows-

Primary packaging: Plastic container, aluminum
container for can.

Secondary packaging: We package certain product through
out the 1 (one) dozen any quantity of product with a case.

5.2
Pricing

Pricing is one of the marketing mix tools that a
company uses to achieve it marketing objectives. Global Beverage Company
Limited (GBCL) decides its product pricing on the basis of Cost based pricing.
Naturally they follow cot based pricing. This type of pricing added a standard
mark-up to cost of certain product of virgin soft drinks.

In Cost plus pricing we consider two formulated steps:

Unit cost

Mark-up price

Formula:

Unit cost: Variable cost + (Fixed cost/Unit sales)

Mark-up: Unit cost / (1-Desired return on sales)

Can (250 ml):

Unit
cost = Tk.10

Mark-up
price = 10 / (1-0.187) = Tk. 12.3

Small pet bottle (500 ml):

Unit
cost = Tk. 14

Mark-up
price = 14 / (1-0.2) = Tk. 17.5

Medium pet bottle (1 liter):

Unit
cost = Tk. 17

Mark-up
= 17 / (1-0.2) = Tk. 21.25

Large pet bottle (1.5 liter):

Unit
cost = Tk. 25

Mark-up
price = 25 / (1-0.2) = Tk. 31.3

Diet can (250 ml):

Unit
cost = 12

Mark-up
price = 12 / (1-0.187) = Tk. 14.76

Pricing of
producer to customer:

For ‘Can’:

GBCL took steps to increase their sales promotion by
providing discount facility on pet bottle (1 l. & 1.5 l.) only for previous
Eid festival. In that time they earn much popularity and improved a lot of
market share. So, GBCL management has decided they will continue their previous
program. As a result, the price of pet bottle fixed at Tk. 25 for 1 liter and
Tk. 35 for 1.5 liter.

5.3
Promotion

Promotion is one of the marketing
tools that a company uses to achieve its marketing objectives. Each promotion
tools has unique characteristics to improve their total sales.

Marketing
promotion can be classified several steps-

5.3.1 Advertising:

Advertising
is the way where massage could be delivered to the consumers mind. Massage can
be delivered to the consumer by the sound,
music, choreography, lighting, and performer
appearance. Advertisement massage must be believable, meaningful and
distinctive. Advertising can be used to buildup a long-term image for a product
and also can trigger quick sales.

Advertising
media:

TV channel

News paper

Magazine and Journal

Web site

Radio

Bill board

Neon board

Light box

 
Printed poster

Advertising
time & located areas:

Virgin
advertising is shown in TV channel from evening to midnight. The customers
usually watch advertise in the evening. Almost every popular newspaper,
magazine and journal is use for advertising. Advertising presented in the noon
and afternoon session in Radio. Virgin Website shows attractive advertising in
all time. Printed poster is naturally using all over the Bangladesh. Light box
advertising usually found in retailer shops, super markets, and general stores
spread all over the Bangladesh. Bill boards are shown in crowded areas such as
at Mirpur, Farmgate, Jatrabari, Moghbazar, Gulshan-1, Tangi etc. Neon board is
seen at Malibagh, Karwanbazar, Banani. Some retailers, customers, and dealers
widely focus on the quality of advertisement. If GBCL served modernized
advertising they have a better chance to improve their sales.

5.3.2 Personal selling:

Personal
presentation by the firm sales force for the purpose of making sales and
building customer relationship.

Virgin
uses personal selling in different stages of marketing and distribution.
Company distributes their product among the dealers, resellers, retailers by
maintaining excellent relationship.

5.3.3 Sales Promotion:

Sales
promotion includes a wide way of tools that can attract consumer’s attraction,
strong incentive of purchase, free gift, discount and several types of
occasional program.

Consumer
Promotion Tools: In consumer promotion tools GBCL provided some short- term
attractive sales promotional tools. In Premium tools it followed – Eid dhamaka
Tk. 5 discount for previous Eid festival and continuing still on. In
Advertising Specialty they provided scratch card for various gift items such
as- caps, T-shirts, bags, mugs and nice looking glasses conducted with Virgin
brand name. In Contest & Sweepstakes they arranged exclusive travel ticket
Dhaka to Singapore, and Dhaka to Cox’s Bazar.

Trade
Promotion Tools: Here GBCL took steps to give special discounts, allowances,
specialty advertising items, free goods, push money  to the retailers and  dealers. GBCL arranged conference every year
among the dealers and also rewarded the first three dealers in terms of greater
sales volume. GBCL can get such benefits by implementing trade promotional
tools are given below-

º  To carry the brand name.

º  Give a brand shelf space.

º  Promote brands in advertising.

º  Push to the consumers.

Business
Promotion Tools: GBCL rewarded its business market like as supermarket,
departmental store, general store in terms of sales unit. They make advertising
nameplate for business market by their own cost.

In survey we have seen
that virgin needs to improve their sales promotion for raising their sales.
Many consumers sited that if virgin provides more gift items they will
encourage for buying it. So GBCL need to improve their selling by implementing
some attractive sales promotion programs.

5.3.5 Promotion Mix
Strategies: Marketers
can choose basic two promotional marketing mix strategies these are given
below:

Global
Beverage Company Ltd. follows these two promotional mix strategies at a time.
In pull strategy they influence consumers by advertising sales promotional
programs. Then consumers make demand to retailers, about their choice. Again
retailers make demand to Producer.

In
push strategy producer wants to influence retailers and wholesalers by personal
selling, trade promotional programs. Retailers are willing to motivate
consumers by implementing personal selling advertising and sales promotional
programs.

5.4
Place

Virgin is provided in the local area. Fast food shop,
general store, departmental store, super market there is a place where virgin
is available. Their manufacturing unit stands on Gazipur. Virgin’s head office
is at Mirpur, Dhaka. Now they are exporting in Bhutan and trying to export
their product in India.

6.0 Findings

Consumer (General)

Brand awareness

The
brand on the top of the mind (TOM) of all irrespective of socio-economic class,
age, and region was the same with the regared to total spontaneous awareness.
However, considering total awareness (spontaneous plus prompted) RC was number
one, closely followed by Coca-Cola.

Virgin was the fifth TOM brand among the SEC A and B, but sixth amongst all
SEC. It was sixth and eighth in term of total spontaneous and total awareness
respectively.

Consumption
habits

Reasons
for drinking CSD

·
As a whole people
drink CSD more to help with digestion of food than for any other reason,
irrespective of age, SEC, sex, etc.

·
Beats the heat
(quenches thirst), removes fatigue, tastes good were the other major reasons
cited for drinking CSD as can be seen from the following graph.

Brand preferences

§ The two most preferred brands were Coca-Cola and RC.

§ Coca-Cola was the men’s first choice while RC the
wome’s.

§ 7Up Was the third choice by both sexes.

§ Coca-Cola was the first preference of SEC A and B
consumers, while RC was SEC C’s

§
Coca-Cola was the
most preferred brand in the age group 20-39.

§
RC was the young
ones’ first choice being preferred most in the age group 12-19

§
Virgin Cola was
the fifth choice among CSDs, being more popular with SEC A and B  and female consumers. There was some
preference for only this variant of Virgin while there seemed to be little
interest in the others. The age group 35-39 did not seem to care much about any
variant of Virgin.

Brand purchase

• The most purchased
  brands were RC and Coca-Cola followed far behind by 7-Up and Virgin.

Substituted brands

§   In the absence of the preferred brand at the outlet,
Coca-Cola came out to be the number one substitute brand followed by RC,
Sprite, Pepsi, up and Virgin in that order.

Place of consumption and Pack preference

• Place of consumption	Response frequency	At home	92%	1 lit,1.5 lit, pet and 1 glass (Figure??)
  At work	26%	1 lit, pet, 250 ml glass and pet, 500 ml pet Can
  While traveling	22%	Can
  At school /college	33%	Can, 250 ml glass, 1 lit pet and glass
  At play	12%	Can , 1 lit pet, 250 glass and pet

  Time of
  consumption

  • CSD consumption seemed
    to be the most during mid afternoon (after lunch and before evening),
    irrespective, of SEC, age sex and area. They only peculiarity seemed to be
    in Khulna and Rajshahi where more than 50% of consumers seemed to drink
    CSds at night w  ith approximately a
    third of the total having a drink late at night before retiring.
  • Women appeared to
    drink CSDs at lunch more than men while larger number of men seemed  drink 
    CSDs during mid morning than women (in between breakfast and lunch)
    
  • Almost 50% of the
    consumers appeared  to drink CSDs
    during  lunch
  • Overall the tendency to
    drink CSDs at night ( at dinner or after seemed to be relatively low

  

  CSD
  purchase habits

  Brand switching and the reasons for
  the same

  Brand
  switch between brands purchased most in the last one month to brands purchased
  last was not noticed much. However, whatever switch took place was mainly due
  to the non-availability of the most purchased brand. Some switching took place
  also to try out new brands.

  • The tendency to switch
    for trying out a new brand seemed to be more among the SECA A and B
    consumers.
  • It second that more
    men would switch to try out a new brand than women would.
  • Among the different
    age groups only those between 16 and 19 had switched more to try out a new
    brand than for any others reason.

  Purchase frequency

  • It seemed by and large
    that most consumers of soft drinks would buy the drinks about 2-3 times a
    week.
  • The only exception was
    among the SEC C consumers. Most in this class would buy the drinks once in
    every fifteen days.
  • Men appeared to buy
    soft drinks more frequently that women.
  • As perhaps expected
    urban consumers would buy soft drinks more frequency than semi urban/semi
    rural consumers.
  • More people in Dhaka
    seemed to buy soft drinks about 2-3 times a week than anywhere class in
    the country.
  • Most consumers of
    Chittagong and Rajshahi seemed to buy soft drinks once in a week.

  Purchase frequency	Total	By SEC
  Base	1000	SEC A	SEC B	SEC C
  2/3 times per week	28.9	136	136	402
  Once per week	23.0	32.2	34.7	23.5
  Once per 15 days	18.7	23.8	22.0	22.5
  4/5 times per week	15.4	14.9	16.3	23.6
  Once a month	8.7	17.0	12.5	14.9
  Everday	4.2	6.7	9.4	10.4
  Less than one month	1.0	4.9	5.2	3.2
  Total	100.00	0.5	–	1.9
  Mean score	3.67	100.0	100.00	100.0

  Place of purchase

  § Overwhelmingly the usual place of purchase of CSDS was
  a small localized retail shop more commonly known as a general store. This was
  the  was the case in both urban and semi
  urban/semi rural areas of the country, among all SECs and age groups.

  § A lot of purchase of CSDs took place in confectionerise
  (It is possible that some respondents termed the general stores as “
  confectioneries” since in most general stores one would get confectionery items
  like bread, biscuits, cakes and savories.

  § Quite a bit of CSD purchase to0ok place at fast
  food/coffee shops. 

  
  

  Consumer
  perception and attitudes

  Brand perception

  As
  a whole,  Coca-Cola and RC received
  higher association with majority of the attributes, indicating better overall
  perception, as can be seen from the graph overleaf. However, brand wise
  specific perceptions are as follows:

  • Coca-Cola and Pepsi
    were perceived to be brands which were available everywhere. Coca-Cola was
    also perceived by many as a drink for “outgoing people” and a good quality
    drink.
  • RC was also considered
    as being available everywhere and being a drink for outgoing people.
  • Virgin also was named
    as a brand available everywhere and was recognized as being a new drink.
  • Regarding quality
    consumers perceived a strong relationship with Coca-Cola and RC. The
    perception was rather low with Virgin.
  • A large number of
    respondents found Coca-Cola and RC to be “refreshing” drinks along with
    Pepsi, Sprite and 7 up.
  • Uro, Virgin, Mirinda,
    Fanta and RC were thought be drinks for children by about a quarter of the
    consumers.
  • Approximately half of
    the respondents thought Coca-Cola and RC were drinks for people like them
  • Nearly a third of the
    people thought Coca-Cola and RC were drinks with a difference only 20% felt
    that way about virgin and Uro

  Perception	Brand	Perceived by
  Available everywhere	Coca-Cola, Pepsi, RC, Virgin, Fanta, Mirinda.	All age groups, both sexes
  For outgoing people	Coca-Cola, RC	All age groups, both sexes
  Refreshing drink	Sprite 7 up, Coca-Cola, Pepsi, RC	All age groups, More men than women
  Good quality drink	Coca-Cola, RC	All age groups, both sexes
  Good quality drink	RC, Virgin, Uro	All age groups, both sexes
  Has an entertaining ad

  However,
  brand wise specific  perceptions are as
  follows:

  Image	Brands	Perceived by
  Fun	Coca-Cola, Pepsi, 7 Up, RC Virgin (low)	All age groups, both sexes
  Trendy	RC, Coca-Cola Virgin Uro, Pepsi, 7 up (all low)	All age groups, both sexes
  Modern	Virgin, Uro, RC	All age groups, both sexes
  Cool	Virgin	16-24 and 30-34 (more from these age groups than women)
  American	Coca-Cola	All age groups, both sexes
  Boring	Fanta, Mirinda	All age groups, both sexes
  Chidish	Fanta, Mirinda Virgin, Uro, RC Virgin, Uro, RC	12-15,20-39 age groups Men Women

  § Most people associated almost all the good images to
  Coca-Cola and RC

  § Though by significantly lesser number of people almost
  all the good images were also associated to virgin and Uro.

  Consumer (Virgin specific)

  Past and present consumers

  Top of mind awareness of variant

  The
  variant on the top of the mind of all Virgin consumers (past and present) was
  Virgin Cola, followed by Virgin lemon and Virgin orange. The picture was the
  same with the regard to total  awareness
  (total spontaneous plus prompted). The only exception with regard to top of the
  mind variant was in the age group 30-34 where Cola was followed by orange and
  then lemon.

   

   

   

   

   

   

   

   

   

  
  

  Prompted awareness of variant and
  Total Awarness

  • When prompted the
    highest was with the orange variant followed by lemon and diet cola.
  • However, total
    awareness of Virgin cola was the highest closely followed by Lemon and
    orange. Virgin Diet Diet Cola total awareness much lower than the other
    variants.

   

   

   

   

   

   

  
  

  Present consumers

  Variant preference

  By
  and large the most preferred various were similar in the following order:

  1. Cola
  2. Lemon
  3. Orange
  4. Diet

  
  

  § Coca-Cola was the first choice for both sexes.

  § Orange was the second and lemon the third choice in
  the age group 30-34.

  § Orange was the second and lemon the third choice in
  Rajshahi. There was no other regional peculiarity/ bias.

  Substitued variants

  Lemon
  came out to be the number one substitute variant followed by Orange, Cola, and
  Diet in that order.

  

   

   

  Purchase frequency

  • It seemed by and large
    that most consumers of Virgin would buy the drink less than once a month.
  • The exceptions were
    among the SEC and female consumers, and in the age groups
    12,15,20-24,30-39. Most in these groups would buy the drinks once month.
  • Wome appeared to buy
    Virgin drinks more frequently than men.
  • While urban consumers
    would buy Virgin drinks more frequently than semi urban/semi rural
    consumers, it appeared that those in Dhaka and Rajshahi Division purchased
    more frequently than those in the other areas.

  Pack preference

  § 
  It appeared that
  overall the 1.5 lit pet bottle was the most popular Virgin pack followed by
  Can, 2 lit pet, 250 ml pet and 500 ml pet in that order.

  § 
  The can was more
  preferred by women and the consumers in SEC B, as well as among the age groups
  12-24

  Attributes (ranked)

  § 
  There was
  reasonably strong agreement with all the following statements with regard to
  Virgin drinks. The statements were ranked on 5 point scale and are listed here
  in descending order:

  a) “Available in Various flavours”

  b) A well known brand

  c) A brand for young people

  d) An international brand

  e) An innovative brand

  
  
  New
  Variants sought

  § 
  Various unusal
  suggestions for new variants, such as “hot/spicy”, “chocolate flavour”, “coffee
  flavour” have been put forward, By far the maximum recommendations have come
  for various fruit flavorus. The drinks/flavorus which the Virgin consumers
  would like to see most in future:

  1. Mango flavour

  2. More fizzay variant

  3. Lichy flavoru

  4. Chocolate flavour

  5. Pineapple flavour

  6. Grape flavour

  Past consumers

  Reasons for
  discontinuing Virgin

  § 
  Overwhelming by
  the main reason cited for discontinuing Virgin brands was “DID NOT TASTE GOOD”.

  This was the reasponse across all
  SECs, age groups, sexes and areas. No other response in the whole study has
  been so unanimous.

  § 
  The next important
  reason was “high price” which seemed to matter more to the consumers belonging
  to SEC B and semi urban/semi rural areas, age groups 12-24 and 30-34 and to the
  women.

  § 
  “Non availability”
  of the product was another important reason cited for not continuing with the
  brand

  Reasons	Total	By SEC
  		SEC-A	SEC-B		SEC-C
  Base	64.8	323		93	232
  Doesn’t taste good	40.9	43.2		43.0	37.3
  High price	12.8	8.8		19.2	15.1
  Not available in every shop	10.1	13.7		8.7	6.4
  Others don’t like it	9.8	6.2		4.2	16.2
  Quality has deteriorated	8.0	8.6		4.4	8.7
  Doesn’t satisfy	7.5	8.7		8.8	5.5
  Less pungent	7.0	5.2		10.3	7.7

  Aware but never tried

   

  Reasons for not ever trying Virgin

  Table: Reasons for not ever trying
  Virgin

  Reasons	Total	By SEC
  		SEC-A	SEC-B		SEC-C
  Base	648	323		93		232
  It doesn’t taste good	25.2	21.7		36.2		25.2
  Don’t want to shift brand	23.2	30.2		15.5		19.5
  Not available everywhere	15.3	20.6		6.9		13.1
  Nobody brings it home	12.8	11.3		13.7		13.7
  High price	12.7	8.2		13.1		16.3

  About
  18% of those who were aware of the Virgin brand appear not ever having tried
  the drinks. The reasons cited for this were:

  1.
  “Heard that it did not taste good”   :   Seemed important to

  SEC “B” and “C” age groups 16-24 and 30-39, and to
  women relatively more than men

  2.
  Did not wish to switch brands :   Was the views of SEC

  “A” consumers and those in age group 16-19, and 25-29

  3.
  Was not available everywhere :   Seemed to be of

  concern more to age groups 16-24 and 35-39 and to SEC
  “A” consumers

  4.
  Nobody brought it home :   to those in age group 12-15 this was
  the most important reason for not ever getting to try the brand.

  5.
  High price :
  “C” consumers and the age groups 16-19 and 25-29, and those in the semi
  urban/semi rural areas. Interestingly, this also seemed to be a problem with
  men.

  Bangla Virgin logo

  Majority
  reacted positively to the suggested Bangla logo. However, a large number of
  respondents did not like it much.

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

  
  

  CSD ads seen

  
  
  • Advertisements of RC
    was recalled by almost all (96%) respondents belonging to all age groups,
    sexes, socio-economic classes, and areas. Ads of Coke, Uro, Pepsi and
    Viging were also highly recalled.
  • Most had reported
    seeing advertisements of all CSds on television followed by signage’s,
    print media, posters and billboards. There was hardly any difference in
    this pattern with regard to sex, SEC, age, and are.

  Media
  habit

  Incidence of watching TV

  
  

  § As is clear from the above pie chart more than 90% of
  the respondents watch television.

  § Viewer ship of TV is relatively more in SEC “A” and
  “B”, in the age groups 12-15 and 35-39, and among the women.

  § As is expected more people in the urban areas watch TV
  than in the semi-urban/rural areas.

  § Going by region TV viewership was greater in Dhaka and
  Khulan regions compared to the other parts of the country

  § As can be seen in the graph below 100% of the
  consumers of Virgin watch TV. As RC, Coke and Pepsi are more widely available,
  including in semi-urban and rural areas, there is a section of its consumers
  who do not watch TV.

  
  

  TV viewing time

  
  

  § By and large bulk of the viewing takes place between 7
  pm and 10 pm

  § A significant number of the CSD consumers seemto watch
  TV even after 10 pm

  § Interestingly about a quarter of the women respondents
  reported watching TV beyond 1 am

  § Looking at the TV viewing habit of the CSD consumers
  by brand there is hardly any difference in the picture

  TV channels watched

  
  

  § Despite the influx of satellite channels BTV (terrestrial
  and non-satellite) remains the most watched channel among the CSD consumers.
  This has more to do with the reach of the satellite channels than with
  programme preferences. For the same reason perhaps BTV is watched more in the
  semi-urban/rural areas (81%) than in the urban areas (69%).

  § Channel is the next most watched channel followed by
  ATN and Star Plus

  § More men than women seem to watch Channel I, and more
  women than men watch ATN.

  § There is hardly and difference in the picture looking
  at it by CSD brands

  Programmers watched regularly

  
  

  § 
  Drama appeared to
  be the most popular TV programmer followed Bengali Cinema. News and Magazine programmer.
  Strangely even children as young as 12- 15 years old watched TV drama more any
  other programmer

  § 
  News is watched
  more by the older segment of the population – approximately 50% of the

  § 
  30- 39 years age
  group.

  § 
  While
  significantly lager number of women (39%) the men (25%)watch Bengali cinema,
  significantly lager number on men (37%) than women (26%)watch the news
  programmes.

  § 
  § 
  The percentage of
  Begali cinema viewers is significantly larger in Chittagong, Khulna, Rajshahi
  areas (over 35%) than in Dhaka (28%).

  § 
  Similarly
  significantly larger numbers of people in Dhaka (37%) watch the News than in
  the other parts of the country (between 23% 27%).

  § 
  Relatively a
  larger number or pepole in Chittagong and Khulan (over 35%) watch the magazine
  programmes (app. Such programmes do not appear to have much appeal in the
  Rajshahi area)

  § 
  Going by CSD
  brands whiled the greater segment of all consumers of all brands watch TV drams
  more than any other programmed, it seems that larger number of the Coke,
  Sprite, Uro and virgin consumers watch News more than Bengali cinema.

  § 
  The extent of
  magazine programmes viewing is more or less the same by all consumers.

  Incidence of radio listening

  • Only 14% of the
    respondents reported listening to the radio with the incidence being
    higher in the semi-urban/rural areas (20%) than in the urban (10%)
  • Relatively more people
    in Dhaka and Rajshahi (16%-17%) listen to the radio than in the other
    parts of the country (approximately 8%)
  • The highest radio
    listening is among the 7 Up, RC, and Coke consumers (15%-17%) Radio
    listening is rather low by the Virgin consumers (10%).
  • Which most of the
    listening is done between 12 pm, men listen to the radio more in the
    morning (6am-9am).
  • Dhaka-Kha is the more
    preferred radio station.

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

  
  

  Newspapers read

  
  
  • Out of the 21 Daily
    news pares mentioned as being more or less regularly read only one The
    Dialy Star is in English. All others are Bengali. Only 0.2% of the total
    respondents reported reading The Daily Star regularly.
  • Virtually across all
    levels and in all areas Protho Alo followed by Jugantor, Ittefaq,
    Jonokontho and Inqilab are the most regularly read newspapers. For some
    reason the difference is in the age group 25-29 where Prothome alo is
    followed by Ittefaq, Jugantor, Inqilab and Jonokontho.
  • Newspapers are read
    more by men than women and more in the urban than semi-urban/rural areas.
  • While Prothom Alo is
    the most regularly read Daily by consumers of all brands it seems that
    Virgin consumers read the Ittefaq more regularly than Jugantor.

   

  Periodicals and magazine read

  • The study has revealed
    that the readership of periodicals and magazines (weeklies/fortnightlies’/monthlies)
    are rather low.
  • The most regularly
    read periodicals/magazines are:

  Alpin, Bicchu, Jai Jai Din, Sanonda, Anondo Lok,
  Purnima

  Outdoor ads/shop facials noticed

   

  
  
  

  
  
  • The above graph
    represents the overall picture across almost all levels, and sexes,
    However, it seems that the outdoor ads and shop facias are noticed by a
    relatively lesser number of people (approximately 55%) in Chittagong and
    Rajshahi.
  • The consumers of RC
    also seem to have noticed such material less than the consumers of other
    brands (65% vs over 70%)

  Incidence of watching movies at
  cinema halls

   

  

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

  • More 90% of the people
    across levels, categories and areas do not go to cinema halls to watch
    movies
  • Relatively more men
    (11%) go to cinema halls if at all than women (01%)
  • Cinema hall goers are
    relatively more in urban than in semi-urban/rural areas
  • Almost 100% of those in
    Chittagong do not seem to go to cinema halls
  • Cinema hall going
    seems to be relatively more among the Mirinda and Virgin consumers
  • Among those who do go
    to cinema hall most (about 63%) do so on an average once in a month
  • About 26% of those who
    go to cinema halls do so more than once in a month
  • Looking at the picture
    by CSD brand consumers among the virgin consumer 78% of the cinema goers
    go once a month a month to the cinema halls. This is higher than the
    frequencies observed in all other brand consumers.

  Trade (General)

  Brands (usually) available at shop

   

  • Coca-Cola and RC at
    more than 90% of the shops
  • Sprite and 7Up at more
    than 80% to 90% shops
  • Pepsi, Uro Cola and
    Virgincola at less than 80% of the shops
  • More than 95% of the
    shops would have the I lit pet bottle of the CSDs
  • The 1 lit pet bottels
    of Coca-Cola, Pepsi, RC Cola, RC Lime, virgin cola would (usually) be
    available at more than 90% of the shops

  Brands stocked/available at shop

  • At time of the survey
    more than 50% of the shops had Coca-Cola in their stock most of it being
    in Dhaka
  • RC Cola was available
    at 24% of the shops most of which were in Dhaka Rc Cola was available in
    more semi urbas semi rural shops than in urban RC and Coca-Cola seemed to
    be available in the same number of shops in Chittagong
  • 7 Up and Pepsi were
    available at less than 10% of the shops
  • Only 2% of the shops
    had Virgin Cola most of which were in the urban areas. It appeared that
    relatively more shops in Chittgong Stocked the brand than in Dhaka

  Reasons for stocking

  • The single most
    important reason for stocking a brand would be its demand in the market.
    Clearly quick turnover was more important than anything else.
  • Among the other far
    less important reasons for stocking a brand the following were of some
    significance:
  1. Refrigerators provided
     for showeasing/keeping the brand
  2. Good quality
  3. Alwasy available
  4. Sales incentive (two
     bottles free with each case)

  Seasonality of Stocking

  Mostly
  between April and September.

   

  Brands sold most

  The
  picture was almost similar to that of “brands stocked”.

  • Coca-Cola was the
    highest selling brand followed by RC Cola, 7 Up, and Pepsi.
  • Sales of Virgin Cola,
    Uro Cola, was reported to be very low.

   

  Reasons for selling most

  3.
  Good quality :   RC Cola, Pepsi Coca, 7 UP

  Most profitable brand

  
  Coca-Cola

  
  RC Cola

  
  7 Up

  
  Pepsi

  
  Uro Cola

  
  Virgin Cola

  Reasons for being profitable

  
  Fast moving
  (quick turnover)

  
  More
  cornmission/bonuse

  
  Price to trade is
  low

  Tendency to promote septic brands

  • More than 60% reported
    that would not promote a specific brand on their own
  • Approximately 36%
    suggested they would promote a spefic brand under the following
    circumstances:
  1. If the brand asked for
     by the customer was not available
  2. If a brand was more
     profitable
  3. Availability for
     sample stocking

   

  Are sales promotion programmers by
  companies effective and how?

  • Nearly 90% felt that
    salse promotion schemes by companies were effectives as those resulted in:
  1. Increased sales
  2. Attacted consumers to
     the brand

  Most effective sales
  schemes/suggestions for new schemes

  (Table 30)

  1. Search cards for
     consumers
  2. Prizes for volume
     purchases by consumers
  3. More free bottles/per
     case for traders
  4. Free gifts/bottle

  7.1
  conclusions

  Global Beverage Company limited introduced VIRGIN
  drinks in 1999. Now Virgin takes step in 6th year. When Virgin came advertising
  was the strong path to influence people about the new product. In that time
  GBCL followed a smooth marketing strategy. Virgin formed can at a cheap rate
  for the first time in Bangladesh. Someone has sited their opinion that Virgin’s
  advertising, quality, distribution, packaging was better than the others.

  Now Virgin overall takes the position in 4^th
  place. But in terms of cola flavor it takes 3^rd place. At a time it
  takes also better position in consumer mind by its quality, attractive flavor,
  nice looking packaging.

  GBCL newly introduces 6 flavors with 500 ml. its main
  buyers are children. Those products introduce for improving their current
  market share. GBCL has a future plan to introduce 250 ml with plastic bottle
  and fountain pack.

  We gather some essential information from our survey.
  At first they need to maintain their standard quality level, advertising should
  be more attractive, need to upgrade known famous character for advertising that
  influence people very quickly. Some one has said packaging need no change. But
  new form could be better way to influence people. GBCL must create better
  relationship among the dealers, resellers, retailers. Need to take steps for
  various programs of sales promotion.

  Report on marketing analysis is the part of our credit
  course of BBA program. We learn so many things from this report about Virgin
  Company, its product nature, its distributors, retailers, consumers, and its
  overall marketing condition in beverage industry. Though BBA is a job related
  programs, in future we will face so many problems from making any sort of
  report in the organization. This report will assist us to build up a better
  career in the job section.

  7.2 Recommendations

  Specific Recommendations

  ü  Virgin has no fountain pack.

  ü  Virgin is recently introduced in Bangladesh in 1999
  that’s why they didn’t  captured big market.

  ü  GBCL doesn’t follow societal marketing concept.

  ü  There is a better chance to create market demand in
  Bangladesh.

  ü  Virgin can focus customers mind by implementing more
  modernized advertising.

  ü  Fountain pack and 250 ml with plastic container can
  increase more customers.

  ü  Virgin can taken short-term program for pet bottle.

  ü  Virgin needed to reduce its price for improving its
  sales without changing quality   level.

  ü  Has a big chance to entrance into international market
  by exporting neighborhood countries.

  ü  GBCL follows Government regulation but some
  competitors do not.

  ü  Other competitors reduce their price that can hamper
  the sale of Virgin.

  Bibliography

  
  Book:

  Principles of Marketing

  – Kotler Philip

  -Armstrong Gary

  2) Newspaper:

  – The Daily Prothom Alo

  – The Daily Star

  3)   Website:

  – www.virgin.com

  – www.virgindrinks.com

  4)   Others:

  – Meena Bazar

  – Shuvolong

  (Departmental Store, Shahjahanpur)

  – Wimpy

  (Fast-food Shop, Science Lab)

  – Comilla Store

  (Retailer shop, Mohammedpur)