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TRANSCOM GROUP

Transcom Group is

one

of the leading, diversified and fastest growing

business groups in Bangladesh with more than 8000 employees and

includes Beverage, Pharmaceuticals, Newspaper, Radio channel, Electronics, Foods etc.

A Brief Look at History:

Originated with tea plantation in 1885 is today, one of the leading and fastest growing diversified business houses in Bangladesh employing over 5000 people. Not many industrial groups in Bangladesh can claim a history of continuous business pursuits stretching back over 100 years. Initially tea and jute formed the backbone of the family business. Although these are still part of the activities, they contribute marginally to the overall group turnover.

Transcom Today:

These early industrial ventures have moved over to businesses involved in high-tech manufacturing, international trading and distribution, forming strong ties with a host of blue chip multinational companies. In recent years Transcom has emerged as an increasingly significant media house in Bangladesh.

Mission & Vision Statement:

Transcom food and beverages of Transcom Group aimed at offering high-quality, moderately priced, occasionally amazing foods using only natural ingredients. They view their-selves as partners with their customers, their employees, their community and their environment. They aim to become a regionally recognized brand name, capitalizing on the sustained interest in food and beverages. Their goal is to moderate growth, annual profitability, and maintaining their sense of humor.

PepsiCo:

In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great advantage of the campaign with television commercials reporting the results to the public. In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time, included more than thirty different backgrounds on each can, introducing a new background every three weeks. Pepsi is the main product of PepsiCo. But the other products also achieve huge amount of profit. The main products which are use in our country:

Pepsi

7up

Mirinda

Diet Pepsi

Mountain Dew

Slice

PepsiCo: In 1975, Pepsi introduced the <a href=Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great advantage of the campaign with television commercials reporting the results to the public. In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time, included more than thirty different backgrounds on each can, introducing a new background every three weeks. Pepsi is the main product of PepsiCo. But the other products also achieve huge amount of profit. The main products which are use in our country: ∑ Pepsi ∑ 7up ∑ Mirinda ∑ Diet Pepsi ∑ Mountain Dew ∑ Slice " id="pdf-obj-2-48" src="pdf-obj-2-48.jpg">
PepsiCo: In 1975, Pepsi introduced the <a href=Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great advantage of the campaign with television commercials reporting the results to the public. In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time, included more than thirty different backgrounds on each can, introducing a new background every three weeks. Pepsi is the main product of PepsiCo. But the other products also achieve huge amount of profit. The main products which are use in our country: ∑ Pepsi ∑ 7up ∑ Mirinda ∑ Diet Pepsi ∑ Mountain Dew ∑ Slice " id="pdf-obj-2-50" src="pdf-obj-2-50.jpg">

Kentucky Fried Chicken (KFC):

In 1939, Colonel Harland Sanders first gave the world a taste of his most famous creation, Original Recipe Kentucky Fried Chicken, featuring that secret blend of 11 herbs and spices. Since that time, millions of people over the world have come to love his one of a kind chicken, home-style side dishes and hot and fresh biscuits.

KFC stands for high quality fast food in a popular array of complete meals to enrich the consumer’s everyday life. KFC strives to serve great tasting, “finger lickin good” chicken meals that enable the whole family to share a fun. Uninhibited and thoroughly satisfying eating experience, with same convenience and affordability of ordinary quick service restaurants.

Transcom Foods Limited, a concern of Transcom Group is the franchisee of KFC in Bangladesh. The first ever KFC restaurant has been opened in September at Gulshan, Dhaka with a seating capacity of 178 persons. In the coming days, KFC plans roll out more restaurants in Bangladesh.

Kentucky Fried Chicken (KFC): In 1939, Colonel Harland Sanders first gave the world a taste of

Menu of KFC which are available in Bangladesh:

Tempting Meals

Combo1 Combo2 Combo3 Combo4 Combo5 Combo6 Combo7 Combo8 KFC Specials Original Recipe/Hot & Crispy Zinger Burger
Combo1
Combo2
Combo3
Combo4
Combo5
Combo6
Combo7
Combo8
KFC Specials
Original Recipe/Hot & Crispy
Zinger Burger
Tasty Fillers
Strips Chicken
Colonel Fillet Burger
Veggie Burger
Add-Ons
Beverages
Desserts
Hot Wings

Pizza Hut:

The journey began in 1958, when two college students and brothers from Wichita, USA, Frank and Dan Carney, opened the first Pizza Hut restaurant at their hometown on June 15, 1958. After borrowing $600 from their mother, they purchased some second-hand equipment and rented a small building on a busy intersection in Wichita. The result of their entrepreneurial efforts was the first Pizza Hut restaurant, and the foundation for what would become the largest and most successful pizza restaurant company in the world. Pizza Hut is not only the acknowledged leader of pizza industry worldwide, but it is also the world’s largest pizza chain with more than 6,100 restaurants in the United States and over 5,500 restaurants in 97 countries and territories around the world, employing more than 300,000 people, serving 1.7 million pizzas everyday to more than seven million customers. Transcom Foods Limited, a concern of Transcom Group is the franchisee of Pizza hut in Bangladesh. With a seating capacity of 220 persons, the first outlet of Pizza Hut opened South Avenue, Gulshan-1 at 6th December. Currently there are three outlets, three in Dhaka which are situated at Gulshan, Dhanmondi and Baily Road other at Chittagong. All foods served in the outlets in Bangladesh are 100% halal. Pizza Hut is passionate about making and serving the best pizzas. And that includes going to any length to make the customer′s experience with Pizza Hut an enjoyable one. The signature pizza crusts at Pizza Hut are Pan Pizza, Thin ‘n’ Crispy, Stuffed Crust.

Practice of Marketing Concept of Transcom Food & Beverage

The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Including Transcom food and beverages today most firms have adopted the marketing concept, but this has not always been the case.

The Production Concept:

The

concept was

firm should

those

it

could

efficiently creation of a low-cost would in and

Practice of Marketing Concept of Transcom Food & Beverage The marketing concept is the philosophy that

production

the idea that a

focus

on products that produce most and that the

supply

of

products

of

itself

creates the demand for the products. Consumer will favor products that are available or highly

affordable. The key questions that a firm would ask before producing a product were:

Can we produce the product?

Can we produce enough of it?

Transcom food and beverages has these types of product which are:

Pepsi

7up

The Product Concept:

The product concept which holds that consumers favor those products that offers the most quality, performance, or innovative features.

KFC and Pizza Hut making the most quality products with good performance and introduce the new product with good taste.

The Selling Concept:

The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s products. The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers must be attracted into buying, so the company has a set of selling and promotion tools to stimulate buying. Transcom food and beverages has these types of product, but some of the products are hardly found in BD now. The products are:

Pepsi Blue

Marina tea and

M. Rahman tea

The Marketing Concept:

The Marketing Concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do. Pizza Hut and KFC are available in these categories.

The Societal marketing concept:

The societal marketing concept holds that a company should make good marketing decisions by considering consumers’ wants the company’s requirements, consumers’ long-term interests, and society’s long-run interests. Transcom Beverages Ltd. (TBL) have received Exclusive Pouring Rights for aerated soft drinks colas, water, juices or energy drinks at all International & Domestic matches held under BCB in Bangladesh.

Structure of Supply Chain Management

Supply chain management refers to the analysis of, and effort required, improving a company's policies and procedures relating to product and service design, purchasing, invoicing, inventory management, distribution, customer satisfaction and other elements of the supply chain. The objective of every supply chain management should be to maximize the overall value generated. The value of a supply chain generates is the difference between what the final product is worth to the customer and the costs the supply chain management incurs in filling the customer’s request.

Supply Chain Management Strategy:

During this phase a company decides how to structure the supply chain over the next several years. The company makes long term decisions in regards to location and capacities of production and warehousing facilities, the products to be manufactured or stored at various locations, the modes of transportation to be made, and information systems and so on. The supply chain design is very expensive to alter on short notice and supports the company’s strategic objectives. It has several contracts with manufacturers, and receives raw material on a convenient basis. The company has to provide and manage transport for the delivery of products as well as the arrangement of third party services for the procurement of products. The shipping department handles orders and the transport department decides the vehicles for safe delivery. Sources of supply of raw material both local and foreign are identified and terms and conditions are negotiated. The supplier is audited by the most cost efficient quality control department.

Cycle View of Supply Chain:

There are five stages in a supply chain:

Supplier

Manufacturer

Distributor

Retailer

Customer

Suppliers Manufacturer Distributor Retailer Customer
Suppliers
Manufacturer
Distributor
Retailer
Customer

Fig: Links within Supply Chain

And there also have four supply chain process cycles which are:

Customer order

Replenishment

Manufacturing

Procurement cycle

In Transcom Food and Beverages (Pizza Hut, KFC, Pepsico) some of the components are being followed. The components are:

Forecasting - Their planning are undertaken to determine an organization’s customer

demand. Obtain from stakeholders - They make sure key people within the organization agree on these forecasts.

Timing – They determine when the organization quotes a product to a customer

taking into account lead times and other business constraints. Coordination – They assure production and distribution plans became co-ordinate on

a frequent basis for the whole enterprise. Daily scheduling – They ensure for a single location facility, establish a feasible

production schedule on a daily basis. Continuous Improvement – They develop and implement continuous improvement initiatives to realize cost reductions and management of performance across the whole supply chain.

Push/Pull View of Supply Chain:

With push process execution is initiated in anticipation to a customer order. Pepsi has a seasonal demand. Just in time concept is applicable in non-seasonal period and not applicable in seasonal period. All processes that are part of the procurement cycle, manufacturing cycle, replenishment cycle, and customer order cycle are push processes.

Pepsi sales order and processing: The Shipping Manager receives sales order from Sales Team, distributors through telephone, fax & email one day before dispatch. The sales are made to base distributors on advance payment against orders then shipping manager plans according to the demand of distributors on daily basis.

Supply Chain Operation:

Company makes decision regarding individual customer orders. The goal of supply chain operations is to handle incoming customer orders in the best possible manner. During this phase, firms allocate inventory or production to individual orders, set a date that an order is to be filled, generate pick lists at a warehouse, allocate to shipping, and set delivery and so on. There is less uncertainty about demand. At Pizza Hut, the production, sales and supply chain departments get together to decide the inventory usually on a weekly basis.

Fig: Pizza Hut Supply Chain

List Business Portfolio’s (SBU’s) of Transcom Group

Transcom Food and Beverages:

  • 1. KFC

  • 2. Pizza-Hut

  • 3. M. Rahman Tea

  • 4. PepsiCo.

  • 5. Marina Tea

Transcom

Fig: Pizza Hut Supply Chain List Business Portfolio’s (SBU’s) of Transcom Group ∑ Transcom Food and

Electronics Limited:

  • 1. Philips

  • 2. Whirlpool

  • 3. Changhong

  • 4. Transtec

Transcom Media and Press:

Prothom-Alo The Daily Star Shaptahik 2000 Anondodhara

Transcom Distribution Co. Ltd:

Eskayef (SK+F) Bangladesh ltd. Eskayef (SK+F) Animal health and nutrition division TDLC Diagnostics VesaTREK (USA), Asys Hi-Tech (Austria) TDLC Consumer Brands L'OREAL Paris, MAYBELINE New York and GARNIER Paris. Fritolay.

Transcom Associates:

Transfin: SANYO Japan Trinico: DAEWOO ELECTRONICS Korea

Evaluation of SBUs by BCG Matrix

Using the Boston Consulting Group approach a company classifies the entire strategic planning unit’s according to the growth-share matrix. The growth share matrix defines four types of SBU’s: Stars, Cash cows, Question marks & Dogs.

Stars: Stars are high growth high market share businesses or products. Pepsi & 7up are the stars for transcom, because transcom is investing hugely for its growth and it has a huge market share.

Cash Cows: Cash cows are low growth and high market share business or products. We

considered KFC & Pizza Hut are the

cash cows. It is the most popular product in food and

beverages category of transcom group. It has a great market share, but it needs low investment to maintain its market share.

Question marks: Question marks are low share high growth businesses or products. Slice, Mountain-dew these are considering as question marks categories. Growth level of Slice and Mountain-dew is high but their market share is comparatively low. Company must try to increase its productivity and developing it.

Dogs: Dogs are low growth and low market share business or products. We think Marina tea and M. Rahman tea are the dogs because of its low growth and low market share. Company doesn’t get any profit from these. Company has to improve in both sectors if they want to see their profits.

PRODUCT/ MARKET EXPANSION GRID

A portfolio-planning tool for identifying company growth opportunities penetration, development, development diversification product/ market grid. We
A
portfolio-planning
tool
for
identifying
company
growth
opportunities
penetration,
development,
development
diversification
product/ market
grid.
We

through

market

market

product

and

is

called

expansion

identified

Transcom Food & Beverage. In our country the portfolio planning tools through product/market expansion grid.

Market Penetration: A strategy for company growth by increasing sales of current product to current market segments without changing product. That means existing product in existing market. Pepsi, 7up, slice are following market penetration.

Market Development: A strategy for company growth by identifying and developing new market segments for current company products. That means new market for existing product. ‘Pizza hut’ & ‘KFC’ are inside of market development.

Product Development: A strategy for company growth by offering new products to current market segment. That means new product for existing market. Marina tea and M.Rahman tea are inside of product development.

Diversification: A strategy for company growth by starting up or acquiring businesses outside the company’s current products & markets. That means new market for new product. But it does not exist in Transcom Group.

Societal
Societal
Marketing Activities
Marketing
Activities

The societal marketing concept is an enlightened marketing concept that holds that a company should make good marketing decisions by considering consumers' wants, the company's requirements, and society's long-term interests. The concept has an emphasis on social responsibility and suggests. KFC and Pizza Hut have launched the World Hunger Relief Campaign in association with the World Food Program (WFP) to raise wider awareness about hunger and support the WFP to provide meals to children in schools in order to help ensure that they complete basic education.

Transcom Beverages Ltd. (TBL) have received Exclusive Pouring Rights for aerated soft

drinks colas, water, juices or energy drinks at all International & Domestic matches held under BCB in Bangladesh. Pizza Hut & KFC launches unique campaign to create awareness on global warming and

KFC and Pizza Hut making T-Shirts for the consumers.

They try to make environmentally friendly products for regular use.

They try to follow cultural aspects.

KFC, Pizza Hut also brings modern culture.

They try to fulfill customer’s satisfactions with different needs.

SWOT ANALYSIS

Strengths:

CERES guidance and co-ordination & active CSR

Weaknesses:

Strong brand, which has been tested before full implementation. Emphasis on a fund

brand culture Market conditions are favorable.

Selective supply chain strategy & Rigorous food safety standards

Low development risk as the product currently exists

Easy, low risk growth through short time to market and short time for Transcom

construction as well as low cost per unit Transferable business model as a result of similarities in trends and the Bangladeshi

culture of street style food vending. Ability to capitalize on brand and concept with expansion through franchise and other market segments Low management risk due to experienced team and the strong diversification of skills

and expertise = holistic results High gross margins on meal products, which can be maximized by negotiating bulk

purchase agreements with wholesalers.

Inflexible to changes in market trends

Product may be vulnerable to weaken over time, which can be minimized through

product innovation and diversification Drive for achieving shareholder value may counter CSR

Promote unhealthy food

In certain below quality products price is high.

Distant from the press.

Opportunities:

 

Attractive & flexible employment

Positive environmental commitments

Higher standards demanded from suppliers

Corporate Responsibility Committee

Honest & real brand image

Capitalize on diversity of venues and consumer groups to promote and market expansion

Threats:

through event catering and franchise ownership

 

Vulnerability to imitation products from competitors will be reduced through rapid

development of Transcom products and brand. Short-term site permits means the Transcom brand needs to be diversified through

catering, franchise and supermarket placement Fabricated stories about the quality of Food & Beverage

Health concerns surrounding Chicken, Beef, Poultry, fish & Beverage.

CSR at the risk of profit loss

Contributor to global warming

Local fast food restaurants & Other Beverage Company.

Suggestion and Recommendation

Transcom Food & Beverage is offering branded product in our country. They have gained a name by selling different famous products like Pepsi, 7up, Mirinda, Mountain Dew etc. Now they are offering world famous food chain like KFC, PIZZA HUT & Beverage Mountain Dew, Slice, Pepsi Diet and 7Up Light. In our recommendation we would like to tell Transcom to expand their customer services, business (Go for food chain like McDonalds, Burger king etc) and ease their information throughout the World Wide Web & to the local media. They really need to think more about their promotional activities and personnel sales services. It is really unfortunate that collecting information about their company was really tough, so they should expand their service information in there outlets and on internet they need to rebuild their website for giving better information.