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School of Business Prepared For Syed Kamrul Islam Lecturer, Mkt#337 Prepared by Group # 07
Dilruba Khan #031305030 Samsul Hasan Khan 062500030 Tonmoy Ahmed 071057030 M. Shahriar Bappi 071152030 Yaseer Arafat 072097030 ID ID # ID # ID # ID #
Table of Content
Company Overview 1 2 Historical Background EXISTING PRODUCT INFORMATION Product Characteristics 3 4 5 6 7 COMPETITIVE ANALYSIS 07 07 08 08 09 13 14 14 18 18 18 23 23 25 31 31 32 33 34
SWOT Analysis
PLC CURRENT PROMOTIONAL ACTIVITIES Survey Analysis Demographic information Media Information Advertising Plan Advertising Objective Budget Story Broad Sample Logo Sample Advertisement Media Plan Media Selection
9 10 11
36 37 37
Letter of Transmittal
02 December 2008 To Mr. Syed Kamrul Islam Faculty, North South University 13, Kamal Ataturk Avenue Banani, Dhaka Dear Sir, Subject: Submission of project paper Here is the project paper titled: LAUNCHING PEPSI TWIST in BANGLADESH as a part of our course MKT 337. We like to thank you to assign us this project paper through which we got an opportunity to get idea hoe to launch a product in a country & how to advertise it. We hereby like to request you to accept our paper.
Sincerely, Dilruba Khan Samsul Hasan Khan Tonmoy Ahmed M. Shahriar Bappi Yasser Arafat ID #031305030 ID # 062500030 ID # 071057030 ID # 071152030 ID # 072097030
Acknowledgement
First of all, we reward to almighty Allah, who has provided us the brilliant opportunity to build and complete this term paper successfully.
We would like to express our feelings and great affection with our heartiest appreciation to the most respectable and honorable course instructor Mr. Syed Kamrul Islam for her kind co-operation.
We would like to thank our senior brothers and friends who have helped us by giving valuable advices and experience.
We would also like to thank to lab administrator for providing guideline and information.
Last of all, we would like to thank the honorable authors of the book Advertising, Principal and Practice William Wells, Sandra Moriarty, and John Burnett because we have taken a lot of information from their book and also thank to Pepsi Co. Bangladesh to provide us important information.
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EXECUTIVE SUMMARY
Pepsi Cola is one of the best beverage companies in operating domestically and internationally. Pepsi Twist is one of the successful brands of Pepsi Co. In this project we want to find out the scope of launching an international soft drink brand in Bangladesh by providing details of launching & promotion system of soft drinks in the forms of Licensing. In this project we found out the exiting product information of our brand Pepsi Twist, its target market, competitive advantage, media plan, opportunity and the budgeting of this company and the other factor. Besides we want to find out the customers choice, preference and demand by conducting a survey on the target audience. In Bangladesh there are many beverage companies, which are owned by domestic companies such as AFBL, Partex Beverage Ltd. etc. also, there were other international companies, such as Coca-Cola Bd. Ltd. which is doing its business within Bangladesh. After all of that we try to introduce a plan for the Pepsi Twist to launch in the market and compete with the competitors. For this reason we evaluate TARGET audience, PROMOTIONAL activities, BUDGET analysis, ADVERTISING method etc . Then we provide some recommendation for Pepsi Twist on the basis of our survey and applying new promotional techniques to communicate more successfully with the target audience. First we conducted survey which revealed some key information about our target audience like their consumption level of soft drink, average expenditure on food per day, which newspaper they read or which channel they see more often than the other. Then we developed some advertisements and made a budget of allocating the expenditure on which channel or newspaper we will show our advertisement so that we can do an effective communication with the target audience. From our perspective Pepsi Twist will launch very
successfully in our country very soon as well as get customers good attention.
Pepsi Twist Lemon. It was sold under the name of Pepsi Twist until recently, and its diet counterpart, Pepsi Twist Light Lemon. It was also introduced in Poland in the summer of 2002 and is sold thereafter. In the United Kingdom Pepsi twist is still sold to date. Theres also a "lemon and lime" version Pepsi Twist somewhat made a return in the summer of 2008 with the NFL Kickoff Limited Edition Flavor which boasts that its Pepsi "with a kick of Lemon".
Products can be consumer or business products depending on their final use. Since the products of Transcom Beverages are not intended for further use in the production of other products, they are seen as consumer goods. Consumer goods can once again be sub-divided into convenience, shopping or specialty goods depending on their Characteristics. This report Identifies the Transcom beverage products as convenience goods based on its characteristics highlighted below:
Product Characteristics
Consumer Involvement (time and Quite low effort) Need for satisfaction Price and quality comparison Usually immediately (sometimes perplan purchased) Absent, since all Transcom products are uniformly priced and quality is centrally Price Frequency Length of Channel controlled. Moderate (compared to other drinks like fruit juices) Normally frequent (consumers buy it according to their desire) Quite long (products are not directly supplied to consumers any more, rather they are supplied through middlemen)
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In order to develop farms marketing strategy and plan marketing manager need to understand the completion that is present in the market place. The competition can be direct brand completion and indirect brand completion. So in order to analysis whether the Pepsi Twist has competitive advantage in terms of having quality products, effective and dominating distribution network, superior quality service, reasonable price.
market of Bangladesh. These are- Coca-Cola, Pepsi, Mojo, Rc-Cola, Pran-Cola, Uro-Cola. However Pepsi Twist has to compete with all these other brands.
product according to consumer preferences. They have different bottle size available for different group of consumers. Currently they are offering 4 types pack size to meet the customers demand. 5
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However, this industry requires a huge sum of investment which can be a barrier for a firm to cope up the exit cost and shrink the brand image associating with the product.
comparatively high in this industry as this is a Fast Moving Consumer Goods (FMCG) which has a wide range of switching option. So, massive advertising is required to shape the consumers attitude toward the product. However, level of advertising expenses varies from firm to firm according to their marketing strategy.
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Supplier concentration 5
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WEAKNESSES
Current shortage in production No direct marketing Limited Export Limited budget for advertisements No regular training program
OPPORTUNITIES
Develop market with existing products Current Market leader Higher Profit Margin Greater Consumer Response Extended export opportunity New product development
THREATS
Currently no threats Invention of Disease causing bacteria
Strikes and political crimes
5. PLC:
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Now for our own convenience, we have divided our market in different segments. It is done because the attitudes, psychographics, and income range is different for different segments. Here we have developed a unique message, which will fit in different segment and different advertisement media and advertisement for reaching different segments. In this project we have developed three segments. They are Demographic, Psychographic, and Geographic. 1. Demographic: under this segmentation come social and economic factors that influence the buying behavior of the customers. It is the statistical representation of the social and economic characteristics of people like age, sex, income, occupation etc. now if we look at the factors that included in the demography we will find our target customers in those sub segmentations. Like Age: here from age 12 to 50 is our main target audience. The Sex: Our target customers include both male and female. Occupation: Mainly the students and fresh employees just Income: Minimum monthly income range is Tk 5,000.
2. Geographic segmentation: Under this geographic segmentation, we have target customers residing in different areas of this country. Mainly we have targeted the whole country and our target is mass. Wherever our target customers match the characteristics of the Demographic and Psychographic segmentation becomes our target customer. It means that our distribution
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should be so well and so geographically standard that it does not create any geographic differentiation. 3. Psychographic Segmentation: Under this Psychographic segmentation deferent factors actually will be affecting our advertisement and advertising message. Those factors are: Life style: Actually people with funky lifestyle are our target
customer. Here especially the college going students who drinks the Pepsi twist regularly, and drink it with a different style is our customer. Followers of the western culture and life style are our main target customers. Brand Loyalty: One of the main objectives of our
advertisement is to keep our existing customers loyal. On the other way those who are loyal to the other brands, take them to our product. Desired Benefits: for the health customers coke has designed
the Diet coke. So our message will also bear messages for those customers who look for any extra benefits from
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Here one thing is to be noted here that, under the Pepsi Twist Company we have another two different kinds of beverages and they are Sprite and Fanta. So our main advertising for Pepsi Twist will be in a way that it should also simultaneously bear the messages for those two beverages. One thing cannot also be ignored. That is we need to consider the retailers perspective for planning our advertisement. Because if they dont put the product Pepsi Twist in their shelves, it is obvious that our target customer will not find it when they required and they will be dissatisfied towards this brand. So our advertisement will also convey the messages to the retailers.
7. SURVEY ANALYSIS
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In our project, we did a survey on the buying behavior of the soft drink consumers. In this survey we peaked the over all soft drinks customers randomly. Here, for about 100 persons participated in this survey and they expressed their thoughts regarding taste, brand, price, packaging and so on about soft drinks. The overall findings of the survey has described below with statistical data analysis.
Demographic Information
From our survey, it is found that most of our target audiences are between 12 to 50 years old. At the same time it includes both male and female. And they are mainly students and fresh employees just entered into jobs and minimum monthly income is not less then 5000 taka. An estimation on expenditure of soft drinks show that over 80 % of target audience spend 400-600 taka per month. 12% people lies between 601- 900 taka. And only 8% of our target audience spend 900 taka and above.
12%
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According to the survey report, 70% of target audience feels that because of weather conditions they are intend to have soft drinks rather than any other foods or drinks. 15% like to have it after heavy diet. Another 8% state that they simply like soft drinks. 2% have soft drinks because of hygiene factors
Price Sensitivity:
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Among our target audience, only 7% are heavy price sensitive while the majority of the target audience which is 82% are moderate amount of price sensitive. In contrast, 5% of target audiences are low price sensitive while the rest 5% simply dont care about price.
12%
5%
Media information
Factors in soft drinks advertisement: 77% of target audiences are concern about the theme song of a soft drink ad, while the other 12% cares about the story board. The rest 5% and 6% think the message and model respectively as the main things which motivate them towards the product. Type of promotional sponsoring soft drinks should go for:
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Soft drink should sponsor entertainment program, the majority of people which is 86% believe this. Another, 11% thinks that Soft Drink Company should go for sponsoring sport events. 2% people posses the thought that they should for educational program while only 1% think that they should sponsor charitable events.
Favorite TV Channel: In overall data analyses, NTV secured the first position. From the survey report it is found that the majority which is 40% ranked NTV as number 1, in second position is BTV backed by second majority of people which is 25%, number 3 is ATN backed by 15%, channel I is in 4th position backed by 12%, RTV is in 5th position backed by 5% of people while other TV channels like Channel 1, Baishakhi etc. are backed by only 3% among TV channels. 23 5
Favorite newspaper:
To choice the favorite news paper, 66% people ranked Prothom Alo first. In case of popularity, second position is secured by Daily Star, which is 17%. To 7% target audience, Jonokontho is their favorite. 4% of people like Ittefaq most. Observer and New Age secured the fifth position which is liked by 2% people. In sixth position are Independent and Manobjomin together which is backed up by 1% target audience.
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Before doing any type of advertising plan for Pepsi it's important for us to know what our true objective is. Surely our objective is to make money. Marketing, however, is more than that. It's creating a desire for what you have to sell. A good marketing campaign has people humming a tune or hearing the words to a company's jingle long after they have seen a product's commercial. We may not have the advertising budget to hire a large agency so; we need to decide which method of advertising we will use. Before using the method, we need to set the aims and goals of the campaign. In advertising, the welldeveloped campaign has aims and goals. Advertising objectives are generally placed in two categories: Twist. And in the indirection action objective our main objective is to communicate our messages to our customers about the product Pepsi Twist. Beyond those primary and secondary objectives, we also have different objectives. They are: INDUCE TRIAL: Those who are not the brand loyal customers of Pepsi, here our objective of the advertising campaign is to pursue them to have a trial of our product Pepsi Twist. INTENSIFY USAGE: As one of the leading brand in our beverage industry, we have so many brand loyal customers. But it is to consider here that most of them may be infrequent in purchasing Direct-action objective: Sales Indirect-action objective: Communication.
Here for the direct action objective our main objective is to sales of the Pepsi
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the product. So here our advertising campaign will be to intensify usage among the existing customers. SUSTAIN PREFERENCE: Pepsi Twist has to advertise heavily in good times and bad times in order to maintain product awareness as well as preference. CONFIRMS IMAGERY: The illustration, the copy, and where the ad is placed all serve to confirm what the customer already thinks about the product. If an ad for Pepsi Twist were run in unpopular media, the ad would serve to confuse the image of the product and should be avoided. GENERATE SALES LEADS: Here in many countries, the market of the Pepsi Twist may not in the leading position. So to be the leader in the market it is obvious that we should design our promotional ad in such a way that it generates a sales lead in the current market. INCREASE SALES: For any organization the ultimate objective of the advertising campaign is to introduce brand image to increase sales. Here our advertising should contain such messages so that we actually motivate to buy and thus increase the sales of Pepsi Twist.
Budget
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For launching Pepsi Twist in Bangladesh in markets while budgeting we have to consider some specific things. The things are promotional cost, salary cost, rent cost, ingredients cost, package cost, transport cost & other costs. Fixed cost: Promotion cost - TK 2, 37, 65,700 Salary cost 39, 00,000 Rent 24, 00,000 Variable cost: Ingredient cost 5tk per 250 ml Package cost 2tk per 250 ml Transport cost 1tk per 250 ml Cost per 250ml bottle = fixed cost p + variable cost = 6+5+2+1 = 14tk Total cost = 2,37,65,700 + 39,00,000 + 24,00,000 + 3,00,00,000 = 6, 00, 65,700tk Price charged for 250 ml = 15tk Break even = 15*40, 04,380 = 6, 00, 65,700tk
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So if the company can reach to sale 40, 04,380 bottles it could reach its break
even.
Before going to budgeting and timing for the advertisement, we should take into consideration, in which media we are placing our ads and what media cost how much. We divide our advertising program into two stages, one is prelaunch of the Ad campaign and the other is Actual Launch of the Ad Campaign. Before dividing our advertising budget, we need to look on which are we are going to emphasize. We will place our ads on: Print Media: Prothom Alo, the Daily Star, Ittefaq, Jonokontho. Electronic Media: NTV, ATN, Channel I, Channel 1, RTV, etc Out of home Advertisement: Billboards, Transit Advertising, Public Relations: Press Release, Newsletters. Push Strategy: Promotional Incentives to Retailers.
Concerts, etc
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Advertising Budget
Print Media
Electronic Media
Budgeting for the Print Media: Newspaper Prothom Alo Position 1st page, 10 inch 10 column The daily Star 3 page, 6 inch 6 column
rd
No of Days Rate 3 days a week Tk 6500 per (12 days a month) inch per column/day
Cost Tk 78000
(approximate) 3 days a week Tk 4000 per (12 days a month) inch per column/day
Tk 48000.
Jonokontho
rd
(approximate) 3 days a week Tk 4300 per (12 days a month) inch per column/day (approximate)
Tk 51600
Total Print media cost per month: TK 177600 Advertising Budget for the Electronic Media: Channel NTV Time Slot 7 pm to 10 pm Duration 30 sec each ad X 60 ads per Rate Tk 118 per second(approximately ) 5 Cost Tk 212400
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BTV
7.30 pm to 10pm.
month 30 sec each ad X 40 ads per month 30 sec each ad X 50 ads per
Tk 900000
ATN Bangla
6.00 pm to 10 pm.
Tk 300000
month Total Electronic media cost per month: tk 1412400 Advertising Budget for the Out of Home Advertising: Number of Billboards 25 Number of Buses 24 Size 30/20 feet Rate/month 10,000/= Rate/month 22500 Cost for Ten month Tk 562500 Cost for Ten months 2400000/=
Budget for Public Relations: Number of Press Meetings for three months 3 Concerts: Name of the Band LRB Rate per Concert per month TK 40,000/= Fantasy Kingdom 30 5 TK 1,00000/= Venue Venue Rate Total Cost for three months TK 420000/= 12,000/= 2 hrs 72000/= Hall Cost/Hour Duration/month Cost
Promotional Incentives to Retailers: Number of Distributors Outlets Free Bottle offered per Case Cost Per Bottle Cases of Bottles(250 ml) Sold per month (average) in all Distributors (approximately 110 Approximately
Note: All these print and electronic rate figures are based on estimation.
TK 12/=
) 25000
TK 225000 5400000/=
Media
Print Media Electronic Media Out of Home Advertisement Others (Sales promotion, PR, Personal selling etc.) Total cost for one year
Total Cost
TK 10,21,200 TK 88,27,500 TK 80,25,000 TK 58,92,000 TK 2,37,65,700
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Tk 5892000, 25%
Electronic Media
Tk 8025000, 34%
Out of Home Advertisement Others (Sales promotion, PR, Personal selling etc.)
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Story Board
Two friends were walking through the desert and they were very thirsty. In that desert, it was very tough to find any drinks and they were actually dying for thrust. Suddenly in that desert, they saw the mirage and mistook that as a lake of water. They jumped on that and stubbed against on a Cherag or popularly known as Aladdins Cherag. They polished it thinking that the ghost of Aladdins Doitto will come out. But the weather was so hot that the Aladdins Doitto even refused to come out of the Cherag. The Aladdins Doitto asked for the two friends wish. The two friends said, We are very thirsty. Do something for us. After sometime smoke came out and they found themselves in a tropical place where the weather are very refreshing and they were actually drinking Pepsi Twist with style.
Sample Logo
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Sample Advertisement
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Here before going to the actual media plan, we need to see the psychographics of our target customers and who likes which media for their entertainment:
Attitudes
Knowledge
Preference
Conviction
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Young Generation Those who are interested in the latest music and films, and must be the first on the block to own this entertainment and embrace it. Media Usage: Print: Quality Daily Newspapers (The Daily Prothom Alo, the Daily TV: NTV, Channel I, BTV, RTV, Bangla vision, Channel one, ATN Other: intensive use of the internet, possibly WAP (internet over the Star, Jonokontho, The daily Ittefaq, New Age etc.) Bangla, Ekushey etc. mobile), heavy cinema goers, little radio (has mp3 CD-player in car, or listens to internet radio) Adults Here includes those people who actually falls under 25 to 45 age group Media Usage: Print: Quality Daily Newspapers, magazines etc TV: Knowledge based programs and News Others: Internet, Seminars, Educational programs, etc.
Now we know which target group prefers which media and the time of acceptability of the advertisement. So based on that our media strategy will be:
Media Selection
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TV is a favorite medium because of its wide reach and its high impact that is useful for showcasing a high impact product such as Pepsi Twist. The volume of TV ads however is limited by its costs but popular target group programs (consult research) and times should be used as extensively as possible. Print adverts will be placed in quality and Daily newspapers. The favorite weeklies and Dailies are The Daily Prothom Alo, The Daily Star, Jonokontho, New Age etc, and Weeklies are Annona, Saptahik 2000, Robbar, Chitro Bangla etc.
2% 2% 1% 17% 1% 0% 4% 7%
Favourite Newspaper
Prothom Alo Jono Kontho Ittefaq Jugantor Monbjomin The daily star Observer New Age Independent
66%
From this pie chart we can see that The Daily Prothom Alo got the highest preferences from the survey and we are going to place most of our ads in that daily newspaper.
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PR activities will concentrate on target audience print publications but also involve TV programs that deal with music and movie such as Closeup-1, Music Express, Movie World, and Sinemar Gan etc.
Promotional Sponsorship By Soft Drinks
1 11 2
Educational Programme Entertainm ent Sports Charity
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From the pie chart shown above, we can see that our target audiences like entertainment sponsorship by any kind of soft drinks. Though most of our Public Relation expenditure will be spending for the Entertainment sponsorship, but partly we will spend for the sports event sponsorship. Outdoor billboards should be placed in urban areas to reach the broad audience of car drivers at a low cost. Placing these at busy junctions will complement TV and print advertising and be visible where public movement is comparatively high. We will use cinema because a high portion of our target audience is a cinema or movie lover. They would like to have some soft drinks with the popcorns to see the movie. If we can place ads in every cinema or movie theater properly, surely we can say that our target audience will reach properly. Radio advertising might be useful but we feel that radio will be able to exert the necessary impact to convince.
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9. CONCLUSION
Finally we can say that, for efficiency of any promotional campaign it is very important to determine the budget of the camping. Otherwise we will not be able to determine the programs that will be executed during the campaign. Here in our advertising and promotional campaign the budgeting and programs has been properly determined so that it can reach to the target audience with proper message.
10. BIBILIOGRAGHY
Stoddard, Bob. Pepsi-Cola - 100 Years (1997), General Publishing Group, Los Angeles, CA, USA Pepsi Can Gallery PepsiCo India The Encyclopedia of Pepsi-Cola Collectibles Beverage Digest, March 4, 2005 (PDF) Pepsi World - FAQs - ADS & HISTORY
11. Reference
www.pepsico.com 39 5
www.pepsitwist.com www.transcombeverage.com Beverage World Magazine, January 1998, "Celebrating a Century of Refreshment: Pepsi The First 100 Years" Mary Bellis, about.com
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