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DETERMINATION OF SUITABLE DISTRIBUTION AND

MARKETING STRATEGY FOR RC UPPER 10

1.0 INTRODUCTION

1.1 Origin of the Report

This is the internship report of Bhuia Mohammad Rashedul Hassan on Partex


Beverage Ltd. Mr. Aktaruzzaman, Marketing Manager of host organization assigned
the researcher this project Determination of Suitable Distribution and Marketing
Strategy for RC Upper 10 on November 4, 2004 since he was the organizational
supervisor. Captain AMM Khairul Kabir, faculty advisor on November 6, 2004, orally
approved proposal for this report. The report is submitted on January 13, 2005.

1.2 Background of the Report

People of Bangladesh are continuously becoming health conscious. Because of their


health concerns and awareness, they are placing lot of emphasis on one of the most
important aspects of maintaining good health i.e. taking beverage drinks. Therefore
the demand of beverage drinks is rapidly increasing in the country. Presently there are
many carbonated beverage drink brands are available in our market.

Partex Beverage Ltd. has a positive image in the beverage market of Bangladesh. In
January 2004, Partex has added a new brand to its product line i.e. RC Upper 10.
Though, this brand has got 22% of market share in the lemon lime drinks category.
Recently the market is very competitive due to new entrants in the beverage market.
Therefore management of RC is very much concern about their brands. So that, they
gave an opportunity to the researcher to find out the market position of RC Upper 10.
Besides they wanted to know the competitors position in the market and their current

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practice in the beverage market. Finally they require a suitable marketing and
distribution strategy for RC upper 10, to make it a success in the market.

1.3 Problem Statement

Determining a suitable distribution and marketing strategy for RC Upper 10, a lemon
limes soft drinks.

1.4 Scope

The field of study was limited within Dhaka city only. The area covered within Dhaka
City ware Dhanmondi, Mirpur-10, Mohakhali, Gabtali Bus Tertminal, Bangabandhu
National Stadium and Lalbagh.

1.5 Limitation

To determine the actual market scenario the research requires a large sample. But as
the research team is consisted of only one member it was not possible for the
researcher to conduct a research taking large sample.

1.6 Report Preview

This report has two major parts. In the first part, termed here as Organization Part,
constitutes the description of history of Partex Beverage Ltd. with its operations
review as well as other business concerns of Partex Group. Second part, termed in the
report as project part, has some sections. It starts with an introductory section, which
includes problem statement, brief history of beverage market in Bangladesh,
definitions (both constructive and operational) and acronyms used in the report and
methodology used for the research project. The following section includes statistical
analysis and interpretations of the various findings from different sources. Next
section summarizes all the findings. In the end, a suitable distribution and marketing
strategy is recommended for RC Upper 10.

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2.0 ORGANIZATION PART

2.1 Brief Introduction of the Company

2.1.1 Company Overview

The Royal Crown Cola International was formed in 1905; it was then called
Chero Cola Co. In 1920 it came to be known as Nehi Corporation. In 1955 the
company experienced a huge growth and changed its corporate name to Royal
Crown Cola International. It is a US based company having over 175
franchises and bottling plants in the US. It is sold in over 60 countries.

In 1994 Mr. M. A. Hashem, Chairman of the Partex Group went to an


International Trade Exhibition held in the USA. There he did a meeting with
the executives of Royal Crown Cola International. From then he had started
conceptualizing the idea of marketing RC beverage brand in Bangladesh.
Finally his dream came true in October 1997; the unique taste of Royal Crown
Cola offers the Bangladeshi consumer a soft drink choice that is globally
appreciated. Partex Beverage Ltd. is proud of introducing this new range of
carbonated soft drinks in the country.

They offer a variety in consumer choice; Cola with RC Cola Orange with
Royal Lemon Lime with RC Upper 10 and Sweet Sour Lemonade with
RC Lemon All beverages are giving more refreshment than other brands.
Its distinctive taste is highly appreciated by discerning customers all over the
world. The products launched in October 1997 have already been popular
among Bangladeshi consumers for its unique taste and flavor. Total quality
management in manufacturing assures the quality of the products. The rigorous
quality test from raw materials to final product ensures highest standards of
hygiene and purity. It also reflects the dedication of the work force.

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2.2 Group at a Glance

The history of Partex Group is no different. It had its modest beginnings in the tobacco
trade in 1959. Under the prudent stewardship of its founder Chairman Mr. M.A.
Hashem, it has grown steadily over the years to become one of the leading industrial
conglomerate in Bangladesh.

In the early seventies, M/S Hashem Corporation Ltd was established with
headquarters in the port-city of Chittagong. The missionary zeal and unflinching
commitment to quality and services took the Group to higher elevations. At a time
when the newly independent country needed almost everything, the company involved
itself in the import of essential items like iron, steel, cement, sugar, rice, spices, wheat,
salt, milk and other commodities. It did not stop there but to make the country self-
reliant, went on to substitute imported products by an inexhaustible repository of
effort; the Group emerged as one of the largest corporate body of the country.

Partex Group owns and successfully operates more than 17 manufacturing, service and
trading concerns offering best value for money to customers. The Groups venture in
the global market started, rather, non-traditionally, with the export of condensed milk.
The Group is confident that its export thrust will expand where its information
technology venture is expected to play a major role.

2.3 Business and Functional Areas of Partex Group

At present Partex Group is one of the leading business conglomerates in Bangladesh.


The followings are the business concerns of the group:

2.3.1 Star Particle Board Mills Ltd.

Long before environment came to dominate the development agenda. Star


Particle Board Mills in the sixties pioneered an eco-friendly industry to reduce
pressure on our scarce forest resources. It is a unique combination of
environmental protection and commerce; belaying most doomsdayers who
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claim the two to be at odds. The one score and ten-year successful perpetuation
of our timber substitute products not only speak volumes of the foresight of
Partexs founders but also their vision of the future.

They make particleboard from agro-waste, mostly jute stalks, and ensure
greater value to the jute growers of Bangladesh. Their products are processed
using modern technology to produce homogenous and strong particleboard that
can withstand seasonal change and are free from termite and fungal attack.

These particleboards go on to produce veneered boards of various design and


texture. Also door panels both plains and decorative in various finishes and
sizes. In addition they produce special furniture boards, stylish furniture and
even various plywood in the range of products.

2.3.2 Danish Condensed Milk Bangladesh Ltd.

In Bangladesh, they are the market leader in condensed milk and have
pioneered its export. They assure export quality product to all the customers.
Quality, a vital issue for this nutritious product is maintained stringently at all
levels, with available technical support of the Australian Dairy Corporation.

Sweetened condensed milk is made by partially removing the water and adding
sugar. The final product contains about 8.5% milk fat and at least 28% total
milk solids. Sugar is added in sufficient amount to prevent bacterial action and
subsequent spoilage. The product Danish sweetened condensed milk is made
from high quality radiation free milk powder added fats and vitamins,
stabilized with sugar, pasteurized homogenized and vacuum concentrated
under strict hygienic and bacteria free environment. Their product is available
in tin cans if 397 grams packed in convenient handy cartons of 48 cans.

A nation wide network of distributors ensures availability of products to the


consumers. Besides strategically located company sales representative assist
and monitor the market place providing quick response to changes in demand.

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2.3.3 Danish Food Products

In a short span of time Danish fruit drinks has made its impact in the market. It
is available in 250 ml aseptic packs. They offer three flavors: Orange, Mango
and Fruit Cocktail with natural taste and exquisite aroma. It caters to all age
groups. It has replaced a large volume of fruit drinks that used to be imported.
The product has also given Bangladesh customers a selection of soft drinks
that was restricted by the few imported items available in the market. They
believe a test of its taste will ensure the product preference and loyalty.

2.3.4 Danish Milk Bangladesh Ltd.

This unit of the Group was launched with the aim of marketing high quality
full cream milk powder throughout the nation. The factory of Danish Milk
Bangladesh Ltd. is located at Kanchpur, Narayanganj.

They market Danish brand spray dried super instant full cream milk powder
in 500 grams and 1000 grams sachet packs; also in 400 grams air tight bag in
box, enriched with vitamin A and D. Export quality ADPI extra grade Danish is
hygienically guaranteed. It is packed in sachets by sophisticated automatic FFS
(From, Fill and Seal) machine.

The products are marketed through their own vast nationwide distribution
network by the companys distributors covering the whole of Bangladesh. At a
later stage, the company has a plan to market powder milk in tins of different
sizes.

2.3.5 Amber Cotton Mills Ltd.

Amber Cotton Mills is a leading name in the textile sector of Bangladesh. They
produce high quality knit yarn using the latest machinery. Given the growing
demand for quality yarn in the countrys largest export sector they are
committed to meet the challenge of the times.

Amber yarn is carded, combed, spliced, usterized and electronically cleaned.


The excellence of the choice of technology and the innovative hard work of the

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personnel has made this factory one of the most dependable sources for its
buyers.

Their yarn is very much in demand for the export oriented garment and
knitwear sector who depend on them.

2.3.6 Amber Pulp and Paper Mills Ltd.

Consumption of quality paper reflects the countries level of development. They


believe it will significantly increase in Bangladesh. Based on this significance
Partex Group has set up a modern pulp and paper mill, which will be
operational soon.

The unit has equipment to produce different types of high-grade paper. These
include: Cigarette paper, light tissue, typing tissue, bible paper and high quality
writing and printing paper, both in sheets and rolls. Not only they will cut
down the import dependence on quality paper, they anticipate exploring the
export market too. All products of the enterprise will maintain optimum
specification, in its range. They are sure Amber Pulp and Paper Mills will
make a difference in the paper industry.

2.3.7 Danish Distribution Network

They have a strong distribution base with 350 distributions and dealers
nationwide. Hundreds of eager, energetic, and effective sales representatives
are working, supported by their dedicated sales and marketing division. They
are marketing many products, namely Ovaltine, RC Cola (Three flavors: Royal
lemon, upper 10,RC cola), RC PET bottles, Danish fruit drinks (three flavors:
mango, orange, cocktail), Danish Condensed Milk etc. through this distribution
network.

In addition to their vast sales and distribution network of dealers, they have 6
sales depots (warehouses) located at strategic points. There are 64 districts in
Bangladesh and to maintain smooth and efficient distribution, they have
mobilized adequate distributors and dealers to serve these regions. Their own
transport fleet supplemented by dealers transport also carries out distribution.
We cover approximately 33,000 wholesale and retail outlets through this

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network, covered by 180 vehicles of various sizes backed by 540 sales
personnel.

They are one of the largest distribution organizations in Bangladesh. This


network makes possible the flow of goods from the producer, through
intermediaries to the buyer. The success of any new product in the market
place greatly depends on an effective and responsive distribution network,
which they ensure.

2.3.8 Rubel Steel Mills Ltd.

To meet the metal container (Drum) requirements of the country we are geared
towards national selfreliance. Rubel Steel Mills is equipped with
sophisticated and modern automatic container making machines which assures
qualify of the products.

This modern set-up enables the company to manufacture different types of


drums to accepted international standards. The drums are leak proof; the inside
is epoxy painted and the outside spray painted; baked in automatic temperature
controlled on line ovens.

Food grade drums are designed ad bulk containers suitable fir packing refined
edible oils like soybean, palm, mustard and coconut. The company delivers top
quality drums directly to consumers and end users like refineries, oil
marketing companies and traders in Bangladesh. Options of various
combination of sheet thickness for bodies and ends are available to cater for
customers particular demand options.

2.3.9 Partex Real Estate Ltd.

Aesthetics and modern architectural values have changed not only lifestyles
but also the economy of land use. Density of population and the paucity of land
has created a crisis in urban housing in our country. To meet the challenge
Partex Real Estate has stepped forward with a vision to make living easier,
comfortable and affordable.

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Partex Real Estate is a venture to accelerate the nations needs to meet its ever
increasing demand for housing. To keep pace with demand, it is necessary to
be in touch with the latest innovations and ideas in this highly specialized and
vital arena of the nations economy. The upward demand in this sector and the
need for further investments has led the Partex Group to participate in this
venture.

Partex is stepping into this sector with a group of talented and creative
personnel with vision and imagination. To meet the requirements of various
income groups we are committed to building estates having different facility
parameters, providing value for money.

Partex Real Estate Ltd. ensures the nation quality housing if not for all at least
for many.

2.3.10 Partex Furniture

A combination of special particle board, timber and decorative plywood offers


the best quality and cost effective substitute for natural timber for custom-
made innovative and stylish furniture. Partex Furniture produces a diversity of
products maximizing the use of timber-substitutes. Within a short span of time
the company has been able to claim a sizable portion of the market. This is a
commitment of the Partex Group to use eco-friendly materials, as much as
possible. In future, we hope to increase the range of our products to meet the
ever-growing demand of furniture for the house, office and school.

2.3.11 Dhakacom

Partex Group is proud to announce its entry into the world of information
technology with launching of dhakacom using the latest know how in internet
Service Providing. With technical assistance from Singapore and the United
States it hopes to provide its customers with the latest array of services.
Dhakacom is also a voting member of APNIC (Asia Pacific Network
Information Center: www.apnic.com ) an indicator to international acceptance.

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We hope to expand in cyberspace to satisfy the increasing demand of Internet
users. We plan to travel sown the information super high way to integrate
Bangladesh with the global village. Information technology is bringing down
national boundaries and making the vision of global economy a reality. It
heralds the beginning of the paperless business world where we have a role to
play.

2.3.12 Fotoroma

Partex Group is not only engaged in trade and manufacturing but it has its
presence also in the service sector. Fotoroma is a trusted name in the
photographic lab business in Dhaka. This well-equipped photography service
center has earned a reputation in the field of photography.

For colour photography, process and print, Fotoroma is synonymous with


quality, supported by high quality automatic processing machines. Apart from
developing, printing and enlarging we also provide lamination, framing,
outdoor social and industrial photography, photo accessories and specialized
help to fulfill the full range of customer demand.

2.3.13 Hashem Corporation (Pvt.) Ltd.

Hashem Corporation is a Chittagong based trading house. It imports iron, steel,


cement, sugar, wheat, lintel, spices, oil, paper and other commodities that are
essential for the nation.

Hashem Corporation is the fountain head of the Partex Group. It is also the
trading window of the Group with long experience in international trade. The
company is well nurtured by the sagacious and pragmatic expertise and
dynamism of its Chairman, for whom it was a springboard for many new
ventures that created the Group.

It also has good experience of shipping both in the import and export trade.
With the self-confidence attained and the upbeat mood of the company, the
corporation is all set to further extend its international trading activities.

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2.3.14 Corvee Maritime Company Ltd.

Ocean trade is the key to a national prosperity. Partex Group is naturally there
too. Corvee Maritime Co. Ltd offers its best service to respond to the ever
expanding needs of its in-house companies, as well as extending it to others.

With expansion plans in the future the company is now equipped with a sea
going oil tanker of 1000 MT capacity. The vessel primarily carries CDSO, fat
and other oil products. The concern is managed and operated by a powerful
team of young mariners with devotion to service, par excellence.

In the future, we plan to over scope by procuring new vessels and maritime
technology. The demand for investment in this sector is so high and the
technology so fast-changing that there is room for more capacity and diversity.

2.4 Corporate Vision


Partex vision is to play a leading role in improving the quality of life and well being of
the people of Bangladesh through responsible application of knowledge and expertise.

2.5 Corporate Mission


The aim
The sky is not the limit for us but our expectations are within limits. Our imagination
soars beyond conventional barriers. We share our destiny with our beloved
motherland. We want to serve her better in the greater quest for national economic
emancipation.
The way
To a seasoned trekker, the path is never too arduous. We believe in progress, in
diversity and service through entrepreneurship. We are both merchants and
missionaries, doers and dreamers, entrepreneurs and experts. We are futuristic with
emphasis on creative thinking and dynamic activity.
The spirit
Enterprise is our life. We manufacture quality import substitute consumer and
industrial products. We offer customer satisfaction keeping environmental and human
factors in mind. It is this thrust that gives our organization integrity. We treasure our
reputation and protect it zealously.
Many minds in the Group contribute their accumulated knowledge to keep the wheels
rolling that leads us to our goal. The cumulative strength of
knowledge is required today, to find new solutions for the manifold problems of a fast-
changing economic, cultural and ecological milieu of tomorrow.

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2.6 Corporate Management of Partex Group

Table -1 shows the present corporate management of Partex Group

Table 1 Corporate Management

Board of Directors
Sultana Hashem
Aziz Al Mahamud
Aziz Al Masud
Showkat Aziz Russell
Ashafaq Aziz Rubel
Executive Management
M. A. Hashem
Chairman Partex Group

Aziz Al Kaiser
Vice Chairman Partex Group
Managing Director Star ParticleBoard Mills Ltd.
Complex I Star Vegetable Oils Ltd.
Corvee Maritime Co. Ltd.
Partex Real Estate Ltd.
Partex Furniture
Ferrotechnique Ltd.
Star Coconut Oils Ltd .
Aziz Al Mahmood
Managing Director Danish Condensed Milk Ltd.
Complex II Danish Food Products
Danish Milk (BD) Ltd.
Rubel Steel Mills Ltd.
Danish Distribution Network
Aziz Al Masud
Managing Director Amber Pulp & Paper Mills Ltd
Complex III
Showkat Aziz Russell
Managing Director Amber Cotton Mills Ltd.
Complex IV Dhakacom Ltd. (ISP)
Ashfaq Aziz Rubel
Managing Director Partex Beverage Ltd.
Complex V Fotoroma Ltd.
Source: Secondary Data.

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2.7 Operation Review

2.7.1 Partex Beverage Ltd.

Partex Beverage is a private Limited company franchised from Royal Crown


Cola International in 1997. It has a well-established manufacturing plant at
Rajendrapur, Gazipur. Partex beverage has introduced PET bottles. PET stands
for Polyethylene terepthalate, a plastic resin and a form of polyester. It is
commonly used to package soft drinks, water, juice etc. PET is a popular
package for food and non-food products because it is inexpensive, lightweight,
reseal able shatter resistant and recyclable.

Partex has added a new item to its beverage products, MUM; crystal clear
natural drinking water. Totally pure and hygienic quality drinking water is a
basic need for the people, particularly the urban and sub-urban sector in
Bangladesh. To provide people with safe and pure drinking water, Partex
started producing MUM in 500 & 1500 ml bottle. Partex Beverage as well as
their own Danish Distribution Network are distributing it nationwide. The
same network which is also distributing a few other products namely renowned
Ovaltine, RC PET bottles of different flavors, etc.

2.7.1.1 The Aim


Provide quality goods and services to our customers.
Ensure customer attention and customer satisfaction.
Continuously improve our process to increase customer satisfaction.
Ensure that resources and training are always updated.
Empower employees to achieve company objectives.
Comply with international quality benchmarks.

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2.7.1.2 Organizational Chart of Partex Beverage Ltd.
Figure 1 shows the organizational chart of marketing department of
Partex Beverage Ltd.

Figure 1 Organizational Chart of Partex Beverage Ltd.

MD
MD

GM (Marketing) GM (Sales)
GM (Marketing) GM (Sales)

DGM
DGM Distribution Manager Sales Manager
Distribution Manager Sales Manager

Marketing Manager
Marketing Manager ADM RSM
ADM RSM

Brand Manager Stat. Officer ASM


Brand Manager Stat. Officer ASM

DO SO
Asst. Brand Manager DO SO
Asst. Brand Manager

ASO
ASO
Brand Officer
Brand Officer

SR
SR

Source: Secondary Data.

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2.7.1.3 Lemon Lime drinks of Partex beverage Ltd.

Table -2 shows the current market price of RC Upper 10 with its

different sizes.

Table 2 Price list of RC Upper 10.


Distributor Price
Size Retailer Price (Taka) MRP (Taka)
(Taka)
2 Liter Pet 38.50 40.50 45
1 Liter Pet 25.00 26.50 30
500 ml Pet 12.37 13.00 15
250 ml Can 11.87 12.50 15
Source : Primary Data.

2.7.1.4 Present Market Standing of Partex Beverage Ltd.

RC has highly motivated, productivity conscious, devoted and


innovative work forces. Most of its products are doing well. Figure 2
shows the present market share of carbonated beverage products of
different manufacturers.

Figure 2 Market share of different beverage company.


RC
28%

Coca Cola
30%

Pepsi
22%
Sun Crest Virgin Euro
4% 6% 10%

Source : Secondary Data.

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2.7.1.5 Business Contribution by Divisions (2004)
Figure- 3 shows the sales contribution of different brands of RC in the
overall company business.
Figure 3 Contribution by different brands of RC

50%
50%

40%

30% 24% 22%

20%

10% 2% 2%

0%
RC Cola RC Lemon RC Upper 10 RC Diet Cola RC Orange

Source: Secondary Data.


2.7.1.6 Distribution Channel
Partex Beverage Ltd. has a strong distribution network with
supplemented by Danish Distribution network. It has more than 350
distributors allover the country. It has 6 depots in different strategic
point to serve the products to the distributors. The depots are located at
Dhaka, Chittagong, Sylhet, Bogra, Khulna and Barishal.

Figure 4 The Distribution Channel


Central Warehouse (Factory)

Depots

Wholesalers

Retailers

Consumers

Source : Secondary Data.

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2.7.1.7 Positional responsibilities and Functions
Different functional responsibilities and duties of the key personnel of
RC cola are given below:

Marketing Manager
Marketing Manager is directly responsible to the Deputy General
Manager (Marketing) for his positional functions and responsibilities.
The major functions of marketing manager are as follows:
Monitoring sales, production and commercial division.
All sorts of direct promotional activities i.e. Advertisement and
Sales promotion.
Public Relation activities like Event Management and
Sponsorship.
Keeping relationship with the media.
New product design and strategy development.
Administrative functions of marketing department.

Brand Manager
Brand Manager is directly responsible to the Marketing Manager. The
main functions of brand manager are as follows:
To prepare and implement appropriate marketing plan and
strategy for responsible products.
To prepare the monthly promotional plan as per the promotional
budget.
To monitor the national sales achievement against the budget as
well as target.
To visit the market for monitoring the performance of RC and
the competitors activities.
To prepare detail COGS calculation sheets of all products and
keep them updated with every change in price or other pricing
related parameters.
To work in compliance with ISO procedures and instructions.

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Sales Manager
The main goal of the sales manager is to deliver the products to the
doorstep of the distributors and retailers. This person is directly
responsible to the General Manager (Sales). His functions are as
follows:
Total distribution management of the products.
Coordinate sales all over the country.
Monitor and directly coordinate the activities of area sales
manager.
Target setting for area sales manager.

Area Sales Manager


Area Sales Manager is directly responsible to the Sales Manager. The
main functions are as follows:
To assist the sales manager to achieve the target sales.
Evaluate sales performance, sales growth and sales potentiality
of the depots.
Find out what are the RCs product moves slowly.
What are the reasons behind slow movement of the products.
Monitor competitors sales activities.

Sales Representatives
Sales representatives are directly responsible to the Area sales Manager.
The main functions of sales representatives are as follows:
Regularly visiting the market and do the market audit.
Ensure product visibility in the retail stores.
Maintaining good relation with the distributors and the retailers.

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2.8 Quality Assurance

Partex Beverage Limited is an ISO- 9001 -2002 certified company. The chain of
quality assurance activity stretches from the product design and product development
stage up to the end users. It embraces all functions concerned with the attainment of
quality during manufacturing and also other factors that influence quality of products.
The objectives of this department are:

To achieve and maintain trust and loyalty of the consumers.


To discourage responsibilities upon it by the company.

The routine activities of the quality assurance department in connection with the
manufacturing may be divided into two functional ranges, namely quality control
activity and assurance activity.

2.8.1 Quality Control Activity

Having equipped with trained analytical staff the QC Laboratory has to


perform the following major responsibilities:

Sampling adequately for testing purpose.


Issuing, release, rejects or quarantine advice for each batch of raw and
packaging materials.
Assessment of the intermediate products for further processing.
Assessment of the bulk products for their release, reprocess and reject.
Assessment of the finished goods products for their release, reject etc.
Storing samples from each batch produced.
Maintaining batch wise full quality control test records with signature
of the persons who perform the test.
Batch documentation and batch sentencing.

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Ensuring precision and accuracy of all testing methods.
Performing environmental monitoring checks.
Calibration and standardization of laboratory equipment.
Control of laboratory reagents.
Testing of any return goods.
Analysis of complaint samples.

2.8.2 Assurance Activity

In order to achieve the quality objectives wide ranges of activities are involved.
Major responsibilities are:
Ensuring fulfillment of regulatory requirements.
Establishing specifications and control procedures for all starting
materials, intermediate and finished products.
Arranging quality audit visits to ensure implementation of GMP.
Communication of every aspects relating to quality to all relevant
persons for early positive actions.
Identification of high-risk areas of contamination for action towards it.
Establishing proper batch documentation system.
Review of market complaints for action.

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3.0 INTRODUCTION TO PROJECT PART

3.1 Statement of the Project


Determining a suitable distribution and marketing strategy for RC Upper 10.
3.2 Background of the project

The competition in the beverage market is very intense. Recently Fizz Up a new
brand in the lemon lime drinks category has launched by Globe Soft Drinks ltd. Due to
the aggressive promotional strategy Fizz Up has got a good market share in the
lemon lime drinks market within a year of launching. Thus the management of RC is
very concern about their brand RC Upper 10. So that, they wanted to know the
current market scenario of lemon lime drinks. Besides, they also wanted to know the
market position of RC Upper 10. Therefore the management of RC assigned the
researcher to carry out a market research on lemon lime soft drinks.

3.3 History of Beverage Market in Bangladesh

Since last two decades until 1997, the beverage market in Bangladesh was dominated
by two of the largest and most aggressive companies in the world. These two
companies spend millions each year for advertisement to promote their brand names.
This is why when people think beverage, the two most common names comes in their
mind that is Coca Cola and Pepsi Cola may it be anywhere in the world. Considering
all these, the decision to introduce RC Cola into this Bangladesh was a very risky one.

The day RC Cola was launched in Dhaka, the distributors found it almost impossible
to get the soft drinks into the shop. This was because retailers had already invested in
Pepsi and Coke, and was not willing to take risk investing in a product they have never
heard of. The same evening, the marketing people of RC called for an emergency
brain storming session. Amazingly in a few hours they came up with a penetration
strategy that nobody in Bangladesh had ever dared to try before.

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The idea was to give an advertisement in the leading newspapers in the
country. In the advertisement it is well written for the consumer that Go to
your nearest retail store and exchange this paper cutting for a free bottle of any
RC flavor. On the other hand, the retailers will get two bottles of RC for every
free RC given to the consumer. Consumers ran with the paper cutting to the
retailers even though they had never heard of this product, retailers were busy
for calling RC distributors to get delivery. In three days RC managed to
penetrate 40% of the total target market, which was considered to be a miracle
in the beverage market.

This penetration strategy cost the company approximately Tk. 30,00,000. Even
though it was an expensive strategy, the return was much higher and positive.
After RC successfully managed to penetrate the market they still had to
continue their different promotions because in this aggressive beverage market
there is no rest.

3.4 Definitions and Acronyms

3.4.1 Constructive Definitions


Some constitutive definitions are used in this report. Those are:

Constitutive Definition: Defines a concept with other concepts and


constructs, establishing boundaries for the construct under study and stating the
central idea or concept under study. ( Carl McDaniel Jr. and Roger Gates,1996)
Data: Data are the collections of any number of related observations on one or
more variables. ( Levin and Rubin , 1999)
Experience Study: A study that enables experiencing and listing to focus
groups to know how customers think and feel about products and services.
( Carl McDaniel Jr. and Roger Gates, 1996)
Mall Interception: Shoppers are intercepted in public areas of malls and
interviewed face-to-face. ( Carl McDaniel Jr. and Roger Gates, 1996)

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Depth Interview: One-on-one interviews that probe and elicit detailed
answers to questions. Often using nondirective techniques to uncover hidden
motivations ( Carl McDaniel Jr. and Roger Gates, 1996)
Non Probability Sampling: Personal judgment and opinions are used to
identify the items from the populations that are to be included in the sample.
( Levin and Rubin, 1999)
Population: A collection of all the elements we are studying and about which
we are trying to draw conclusions. ( Levin and Rubin , 1999)
Probability Sampling: All the items in the population have an equal chance
being chosen in the sample. ( Levin and Rubin, 1999)
Reliability: It measures that are consistent from one administration to the next.
( Carl McDaniel Jr. and Roger Gates, 1996)
Sampling: Sampling is the method of selecting samples from populations.
There are two methods of sampling, e.g. non probability sampling and
probability sampling. ( Levin and Rubin, 1999)
Secondary Data: Data that have been collected from previously worked
source. (Carl McDaniel Jr. and Roger Gates, 1996)
Validity: It addresses the issue of whether what we tried to measure, was
actually measured. ( Carl McDaniel Jr. and Roger Gates, 1996)
Normative Marketing: Adopts the perspective to prescribe what marketing
organizations and individuals ought to do or what kinds of marketing systems a
society ought to have. That is this perspective examines what ought to be and
what organizations and individuals ought to do. ( Shelby D Hunt, 1997)
Profit Sector Marketing: Including the study of organizations or other entities
whose stated objective include the realization of profit. ( Shelby D Hunt, 1997)
Consumer Behavior: Is the study of individuals, groups, or organizations and
the process they use to select, secure, use and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that these processes have
on the consumer and the society. ( Del I. Hawkins and others, 2001)
Pull Strategy: A pull strategy involves the manufacturers using advertising
and consumer promotion to induce consumers to ask intermediaries or the
product, thus inducing the intermediaries to order it. ( Phillp Kotler, 2000)

23
Push Strategy: A push strategy involves the manufacturers using sales force
and trade promotion to induce intermediaries to carry, promote and sell the
product to the end users.( Philip Kotler, 2000)

3.4.2 Operational Definitions


Some operational definitions are used this report. Those are:

Library Research: Study carried out at home or in a library to enrich


knowledge on a particular topic / concept.
Soft Drinks: In the study soft drinks refers to carbonated beverage products in
the lemon lime drinks category.
Media Habit: The media habit in this study means the habit of reading
newspapers by the consumers of soft drinks according to their preferences and
their preferences of watching different TV channels and programs in those
channels.
Print Media: Print media for this research refers only to the newspapers and
weekly magazines.
Electronic Media: Electronic media for this research refers to only four
Bengali TV channels of our country.

3.5 Acronyms
Acronyms used throughout the report are as follows:

RC Int. Royal Crown Cola International


MD Managing Director
GM General Manager
DGM- Deputy General Manager
RSM- Regional Sales Manager
ADM Assistant Distribution Manager
ASM Area Sales Manager
DO- Distribution Officer
SO- Statistical Officer

24
SO- Sales Officer
SR Sales Representative
NA Not Applicable
WOM - Word of Mouth

3.6 Research Methodology

3.6.1 Type of Research

The purpose of this report is to determine a suitable marketing and distribution


strategy for RC Upper 10 with ultimate profit concern. The recommendation part of
the report will highlight what Partex Beverage Limited ought to do to make its RC
Upper 10 a success. As such the type of this study can be termed as micro, normative
and profit seeking study.

3.6.2 Research Purpose

To help in formulating suitable marketing strategy for the RC Upper 10, a lemon lime
soft drinks of Partex Beverage Ltd.

3.6.3 Objectives

3.6.3.1 Broad Objective


To determine a suitable distribution and marketing strategy for RC
Upper 10.

3.6.3.2 Specific Objectives


Followings are the specific objectives of this study:

To determine who all are the major competitors in the lemon lime soft
drinks category.

25
To identify the retailers level of satisfaction regarding the trade oriented
sales promotional activities of RC Upper 10.
To determine the retailers level of satisfaction with the present
distribution system of RC Upper 10.
To identify the market leader in the lemon lime soft drinks category.
To determine the reasons behind brand preference of consumer.
To determine the buying behavior of the individual consumers of lemon
lime soft drinks.
To determine the reasons to buy lemon lime soft drinks by the
consumer.
To determine the consumers satisfaction regarding taste of RC Upper
10.
To determine the media habit (both electronic and print media) of
customers of lemon lime soft drinks.
To identify the consumers perception regarding advertisement
communication and public relation activities of RC Upper 10.

3.6.4 Research Questions

Specific objective # 1: To determine who all are the major competitors in the
lemon lime soft drinks category.
Research Question # 1: What all are the lemon lime drinks brands available in
the market?
Justification: Competitive environment is one of the important things to know.
Answer to this question help the researcher to identify the competition and
develop marketing strategies for RC Upper 10.

Specific objective # 2: To identify the retailers level of satisfaction regarding


the trade oriented sales promotional activities of RC Upper 10.
Research Question # 2: How do you rate different trade oriented sales
promotion of lemon lime soft drinks manufacturers?

26
Justification: Answer to this question provided a comprehensive picture of all
the trade oriented sales promotional activities of different competitors. This
helped in developing suitable trade marketing strategy for RC upper 10 basing
on the marketing activities of the major competitors and the market response to
different activities.

Specific objective # 3: To determine the retailers level of satisfaction with the


present distribution system of RC Upper 10.
Research Question # 3: How do you rate different brands regarding the
present distribution system?
Justification: Answer to this question provided information that helped to
understand the level of satisfaction of retailers with the present distribution
system of RC Upper 10.This helped in determining whether any of their needs
is not served.

Specific objective # 4: To identify the market leader in the lemon lime soft
drinks category.
Research Question # 4: What are the customers preferred brands in the
lemon lime drinks category?
Justification: Answer to this question provided a useful list of customers
preferred brands in ascending order, which help the researcher to find out the
market leader.

Specific objective # 5: To determine the reasons behind brand preference of


consumer.
Research Question # 5: Why does the customers prefer so and so brands?
Justification: Answering this question will give some ranked data, which will
help the researcher to formulate a suitable marketing strategy for RC Upper 10
with keeping in mind the factors customer prefer.

27
Specific objective # 6: To determine the buying behavior of the individual
consumers of lemon lime soft drinks.
Research Question # 6: What are the occasions when the individual
consumers purchase lemon lime soft drinks?
Justification: This will help the researcher to develop an effective marketing
strategy considering the situational influences.

Specific objective # 7: To determine the reasons to buy lemon lime soft drinks
by the consumer.
Research Question # 7: Why people buy lemon lime soft drinks?
Justification: Answer to this scaled response question enabled to determine
the reasons to buy lemon lime soft drinks by the consumer. These findings
helped in formulating effective marketing and distribution strategies for the
consumers.

Specific objective # 8: To determine the consumers satisfaction regarding taste


of RC Upper 10.
Research Question # 8: How do the consumer perceive about the taste of RC
Upper 10?
Justification: Answer to this question will help the researcher to know about
the consumers level of satisfaction of the taste of RC Upper 10. This will help
to formulate a suitable product strategy.

Specific objective # 9: To determine the media habit (both electronic and print
media) of customers of lemon lime soft drinks.
Research Question # 9: What are the Newspapers and Bangla TV channels
customer watch regularly?
Justification: Answer to this question helped in suggesting an effective
marketing communication strategy for RC Upper 10.

28
Specific objective # 10: To identify the consumers perception regarding the
advertisement communication and public relation activities of RC Upper 10.
Research Question # 10: How does the consumer perceive about RCs
advertisement and sponsorship?
Justification: Some interval data will get from this question, which will help
to identify the company image to the target group. Obviously, integrated
marketing communication will help to create better company image to the
society.

3.6.5 Related Hypotheses

From the specific objectives, some hypotheses were drawn for statistical test.
Those are furnished below:

Hypotheses-1
Null Hypotheses: H0: At 80% confidence level it can be said that occasions of
buying lemon lime soft drinks and times are independent.
Alternative Hypotheses: H1: Something else.

Hypotheses-2
Null Hypotheses: Ho: At 80% confidence level it can be said that the
consumers perception regarding the taste of RC Upper 10 is good i.e. ( = 3)
Alternative Hypotheses: H1: At 80% confidence level it can be said that the
consumers perception regarding the taste of RC Upper 10 is less than good i.e.
( 3)

Hypotheses-3
Null Hypotheses: Ho: At 80% confidence level it can be said that the
consumers perception about the advertisement communication and PR of RC
Upper 10 is good i.e. ( = 3)

29
Alternative Hypotheses: H1: At 80% confidence level it can be said that the
consumers perception about the advertisement communication and PR of RC
Upper 10 is less than good i.e. ( 3)

Hypotheses-4
Null Hypotheses: Ho: At 80% confidence level it can be said that the retailers
perception regarding the trade oriented sales promotion (Margin) of RC Upper
10 is good i.e. ( = 3)
Alternative Hypotheses: H1: At 80% confidence level it can be said that the
retailers perception regarding the trade oriented sales promotion (Margin) of
RC Upper 10 is more than good i.e. ( 3)
Hypotheses-5
Null Hypotheses: H0: At 80% confidence level it can be said that distribution
system of different brands and level of excellence are independent.
Alternative Hypotheses: H1: Something else

3.6.6 Types and Sources of Information

A good research work demands that information which is likely to have influence of
the research objectives from all valid sources and is duly considered. This ensures that
the outcome of the research is not biased, all the possible limitations are catered for
and findings truly represent the practical market scenario. The following paragraphs
show the different types and sources of information, which were used in the process of
carrying out the research.

Present Market Scenario


Sources: Traders, Soft drink consumers and different research reports.

Marketing Activities of the Competitors


Sources: Different manufacturers, distributors, and retailers of the existing
brands of the lemon lime soft drinks.

30
Distribution Strategy of the Competitors
Sources: Different manufacturers, distributors and retailers of the lemon lime
soft drinks.

Consumer Behavior
Sources: Individual consumers and retailers of lemon lime soft drinks.

3.6.7 Research Design

3.6.7.1 Target Population


Population of interest of my research includes the manufacturers and
retailers of lemon lime soft drinks as well as individual consumers of
lemon lime soft drinks of Dhaka city.

3.6.7.2 Sampling Frame


The researcher has divided the population of interest mainly in three
strata:

Manufacturers Strata
Consumers Strata
Retailers Strata

But to determine the sampling frame of consumers and retailers, the


researcher divided the whole Dhaka city in 10 geographic segments
namely Azimpur, Dhanmondi, Uttara, Gabtoli, Sadarghat, Mirpur,
Gulshan, Lalbagh, Mohakhali, Bangabandhu National Stadium area.
Then the researcher went for a lottery to determine 6 clusters from the
above geographic segments to conduct final survey.

31
Manufacturers Strata: The manufacturers strata included the
marketing / sales managers of the exiting manufacturers of lemon lime
soft drinks. The researcher interviewed the marketing / sales executives
of the following competitors of lemon lime soft drinks.

Transcom Beverage Limited ( 7up )


Tabani Beverage Limited ( Sprite)
Globe Soft Drinks Limited ( Fizz up)
Global Beverage Co. Ltd. ( Virgin Blue )

Consumers Strata: The researcher interviewed a total of 41


respondents from the following clusters within Dhaka city. The areas
include Gabtali Bus Terminal, Bangabandhu National Stadium, Mirpur
Section-10, Mohakhali , Dhanmondi and Lalbagh. The researcher has
determined the samples to be surveyed in each cluster by dividing the
total number of samples with the number of cluster. In each cluster the
researcher surveyed 7 respondents except one, where the respondents
number is 6.

Retailers Strata: The researcher interviewed a total of 41 retailers


of soft drinks from Mirpur, Mohakhali , Dhanmondi, Lal Bagh,
National Stadium and Gabtali Bus Terminal area in Dhaka city. Here
also the researcher used the same procedure like the consumers strata
to determine the samples to be surveyed.

3.6.7.3 Sampling Method


The research was based on probability sampling method. Within that
broad category, the researcher used Cluster Sampling for the study.

32
3.6.7.4 Sample Size Determination

Here for this research, the population that is the total number of
consumers and retail stores is infinite. We know that the formula for
determining the sample size of infinite population is as following:

n = ( z2C.I *p*q ) / E2

Here, n = number of samples.


2
Z C.I = square of the confidence in standard error units. Here the
researcher taken 80% is the confidence level of confidence of the
calculation through discussing with the supervisor.
P = estimated proportion of success. Here, since I do not know the
proportion of success, it is reasonable to take 50% that is 0.5 as the
proportion of success.

q= estimated proportion of failures. Here, since I do not know the


proportion of failures, it is reasonable to take 50% that is 0.5 as the
proportion of failures.

E2 = square of the maximum allowance for error. Here, I have taken


10% is the maximum allowance of error.

Now putting this value is the above formula for determining the size of
samples to be surveyed, it was found that at 80% level of confidence
with 10% error the number of samples to be surveyed is 40.96. That is
the survey will be carried out on 41 consumers and 41 retailers in
Dhaka city to do the research within that confidence and error level.
The sampling area and the sample size were selected on the basis of the
best judgment of researcher in consultation with the supervisor at MIST
and at the host organization.

33
3.6.7.5 Sample Size Limitation.

The sample size was not large enough to generalize the data in terms of
the population. If sample size was larger, it could increase my
confidence level and generalize the findings in terms of the population.
Of the many causes of restraining the sample size time and size of
research team were more pervasive.

3.6.8 Data Collection

3.6.8.1 Data Collection Method


For data collection I used both library research and field survey
technique.

3.6.8.2 Data Collection Instruments


As data collection instrument, the researcher used structured
questionnaires and interview checklist. The researcher used two sets of
questionnaires. One set for the individual consumers and the other set
for the retailers. These are included respectively as Annex A and Annex
B to this paper. For interviewing the competitors of soft drinks the
researcher used interview checklist, which are given as Annex C to this
paper.

3.6.8.3 Data Collection Techniques


The researcher used Depth Interview technique for collection of data
from the competitors. In the research Systematic sampling procedure
was used for Mall Intercept survey to collect data from the individual
consumers and retailers. When the researcher conducts a field survey in
a specific cluster, initially he chooses a retail outlet in that area to
complete the mall intercept survey for consumer and retailer. Thereafter
the researcher used a skip interval of 5 retail outlet i.e. the 6th retail
store was chosen for the next survey.

34
3.6.9 Test of Reliability and Validity

3.6.9.1 Reliability Test


Data were tested for reliability by equivalent form reliability test. To do
that, two alternative sets of questions were formed in the measuring
instrument to find out any particular objective. For example, Do you
have any preferred brand in soft drinks category? Do you purchase soft
drinks by name? These two questions will give the answer of brand
preference of the consumers.

3.6.9.2 Validity Test


Face validity, Content validity had been tested to confirm the validity
of the data obtained. The following validity test were carry out:
Face Validity: The instrument i.e. the questionnaire was scrutinized
carefully to check the questionnaires apparently measure the concepts. The
experts in the related field also saw the questionnaires.

Content Validity: The questionnaires were revised and again to see


that all the aspects of the topic were covered adequately. The same thing was
also reveal through the pretest.

3.6.10 Data Analysis Technique

3.6.10.1 Subjective Analysis


Qualitative data was analyzed critically using rating scale technique
which was used to measure the judgment of the respondents on
subjective issues.

35
3.6.10.2 Statistical Analysis
Quantified data was analyzed by using appropriate statistical tools.

Frequency Distribution On obtaining primary data from the


questionnaire, frequency distribution and arithmetic mean of the
respondents was used to analyze data.
Z- Test was used to judge the confidence level regarding some
research findings.
Chi- Square Test Test of independence was done for the research.

36
4.0 ANALYSIS AND INTERPRETATIONS

This section of the report contains the presentations of the date collected from different
sources using separate techniques. Date are then analyzed and interpreted to derive the
message for the marketers communicated by those date. This sub-section of the report has
four sub-sub-sections. Date gathered from the individual consumers, retailers, institutional
consumers and the competitors are analyzed in those sub-sub-sections respectively.

4.1 Consumers Perspective


4.1.1 Preference of Lemon Lime Soft Drinks

4.1.1.1 Related Questions: Question 2 and Question 3. Question 2 is meant to


separate the consumers who have brand preference of lemon lime soft drinks
and who dont. Question 3 is designed to get the preferences of the group
who have brand preference.

4.1.1.2 Objective of the Question. To determine the state of brand preference of the
individual consumers of the lemon lime soft drinks.

4.1.1.3 Derived Data. Table 3 shows data collected through these questions.

Table 3 Preferences Ranking of Lemon Lime Soft Drinks.

No
Name of Brands 1st 2nd 3rd
Preference
Sprite 19 7 4
RC Upper 10 3 11 12
7 Up 13 16 7
Fizz Up 4 6 11 0
Virgin Blue 2 1 7
Source: Primary Data.

4.1.1.4 Analysis Technique. Frequency analysis technique has been used in the
analysis of these questions.
37
4.1.1.5 Findings. As shown in Table 3, 100% of the individual consumers i.e. 41
respondents have brand preference in purchasing soft drinks.

Figure 5 shows the percentage of first preference of different brands by the


consumers who have brand preference in purchasing lemon lime soft drinks.
As shown in the figure, Sprite is the most preferred brand with 46%. Then
subsequently 7 Up with 32%, Fizz Up with 10%, RC Upper 10 with 7% and
Virgin Blue with 5%.

Figure 5 Percentages of Preferences of Lemon Lime Soft Drinks.

Fizz UpVirgin Blue


10% 5%
Sprite
46%

7 Up
32%
RC Upper 10
7%

Sprite RC Upper 10 7 Up Fizz Up Virgin Blue

Source : Primary Data.

4.1.2 Reasons of Preferring Any Specific Brand

4.1.2.1 Related Question : Question No. 4 . This question is designed to determine


the attributes for what consumers prefer any specific brand.

4.1.2.2 Objective of the Question


-To determine attributes of the offerings for what any of the lemon lime soft
drink brands became preferable to the consumers.

38
-To design the level of own offering for any soft drinks manufacturer.

4.1.2.3 Data Collected . Table 4 shows data collected through Questions 4

Table 4 Preference Ranking of Different Attributes

Preference Ranking
Attributes
1st 2nd 3rd 4th
Good Brand Image 12 11 11 7
Most Widely Available 1 8 18 14
Significantly Better Taste Than Others 24 17 0 0
Good Looking Bottles or Cans 4 5 12 20
Other (Pls. Specify)
Source : Primary Data.

4.1.2.4 Analysis Technique Used. Arithmetic mean is used to analyze this set of data.

4.1.2.5 Findings of the Question. As shown in Figure 6, Taste of lemon lime soft
drinks is the most important attribute for the brand preference. If only the case
of 1st preference is considered, 59% cases of the first preference are attributed
to the taste of soft drinks. Good brand image is second important reason of
developing brand preference by the individual consumers. Good-looking
bottles and availability are also important attributes in developing brand
preference.

39
Figure 6 Contributions of Different Attributes in Developing Brand Preference

59%
10%

2% 29%

Good Brand Image


Most Widely Available
Significantly Better Taste Than Others
Good Looking Bottles or Cans
Source: Primary Data

4.1.2.6 Interpretation of the Findings.


A brand with better taste has a better prospect in the beverage market.
Good- looking bottles and brand image will help in developing brand
preference.

4.1.3 Creation of Consumer Awareness

4.1.3.1 Related Question : Question 5. How have you become aware about these
preferred brands? Please tick the reasons, which are applicable for you.

4.1.3.2 Objective of the Question. To determine the promotional media and vehicles
that help in developing brand preference.

4.1.3.3 Collected Data . Table 5 shows the causes that are responsible for creating
brand preference.

40
Table 5 Creation of Brand Awareness
Advertisement Any Other

Newspaper or

Publicity (WOM)
Event sponsorship
Poster/Leaflet
Billboard

Others
TV

Magazine

25 8 12 1 7 16
Source : Primary Data

4.1.3.4 Findings of the Question.


TV advertisements play a vital role in developing brand familiarity and brand
preference. Word of Mouth is the second strongest influence in developing a
brand preference. Print media also plays an important role in creating brand
preference for any soft drinks. Event sponsorship and billboards are also
helpful to create brand preference.

4.1.3.5 Interpretation of the Findings


For developing brand familiarity and therefore the brand preference a
manufacturers should give advertisements in popular TV channels.
Manufacturers should target to reach their brands in such places, which
generate positive Word of Mouth. Especially they should be very careful about
the negative word of mouth, which may generate from even a silly problem of
quality of soft drinks.

4.1.4 Occasions of Buying Lemon lime Soft Drinks.

4.1.4.1 Related Question: Question No 9. Question 9 is designed to determine the


occasions of buying lemon lime soft drinks. Respondents are require to answer

41
the question using a 5 point rating sale where 5= Always, 4=Frequently,
3=Sometimes, 2= Seldom and 1= Never.

4.1.4.2. Objective of the Question.


-To determine whether the occasions of buying lemon lime soft drinks and
times are independent or not.
-To determine when the individual consumers purchase lemon lime soft drinks.
-To help in crafting a suitable placement strategy basing on the findings.

4.1.4.3 Data Collected. Table 6 shows the consumers preference of buying lemon
lime soft drinks at different occasions.

Table 6 Occasions of buying lemon lime soft drinks Preferences.


Occasions of buying Always Frequently Sometimes Seldom Never Total
For drinking at
10 14 13 4 0 41
home
Once dining outside 5 10 19 7 0 41
During journey 12 14 13 2 0 41
Enjoying sports in
5 11 11 11 3 41
stadium
Total 32 49 56 24 3 164
Source: Primary Data

4.1.4.4 Analysis Technique Used. The researcher has used Chi-square test of
independence to determine whether the occasions of buying lemon lime soft
drinks and times are independent or not. Arithmetic Mean also used to
determine the relative importance of the occasions of purchasing lemon lime
soft drinks.
4.1.4.5 Related Hypotheses. The related hypotheses are as following:

Null Hypotheses: H0: Occasions of buying lemon lime soft drinks and times
are independent

Alternative Hypotheses: H1: Something else

42
: Level of significance = .20
4.1.4.6 Analysis & Findings of the Question. Calculation for the Chi-square test of
independence is shown in table 7.
Table 7 Calculation (Chi Square statistics) For Test of Data Independence
f0 fe 2
Row Column f0 fe f0 - fe
fe
1 1 10 8 2
1 2 14 12.25 1.75
1 3 13 14 -1
1 4 4 6 -2
1 5
5 -3.75
2 1 8.75
2 2 10 12.25 -2.25
2 3 19 14 5
2 4
7 6.75 .25
2 5 2 = 20.6494
3 1 12 8 4
3 2 14 12.25 1.75
3 3 13 14 -1
3 4
2 6.75 -4.75
3 5
4 1 5 8 -3
4 2 11 12.25 -1.25
4 3 11 14 -3
4 4
14 6.75 7.25
4 5
Source: Primary Data.
Degrees of freedom () =(r-1) (c-1)
= (4-1) (5-1)
= 12
2 critical value = 7.807

Figure 7 Test of Independence

Accepted Region

43
7.81 20.65
Source: Primary Data

4.1.4.7 Interpretation of the Findings


At 80% confidence level the critical value of 2 is 7.807. From the calculation
the researcher found that the observed value of 2 is 20.6494, which is beyond
the range of critical value of 2.Thus the Null Hypothesis is rejected. It implies
that, At 80% confidence level it may be said that the occasions of buying
lemon lime soft drinks and times of taking lemon lime drinks are not
independent.

Figure 8 shows the arithmetic mean of buying lemon lime soft drinks at different occasions.
Figure 8 Mean value of Purchase According to Occasions
3.73 3.87 For Drinking at Home
3.31 3.09
4
Once Dining Outside
3
2 During Journey
1
0 Enjoying sports in
1 stadium

Source : Primary Data

The above figure shows, Journey is the most frequent occasion when
individual consumers purchase lemon lime soft drinks. The analysis of the
question shows the most effective way to reach he soft drinks to the consumers
is to place it in railway station, bus station, airports and ferry ghats. Other
places should include stadiums and adjacent areas, especially during any
important tournament, different package tour program organizing agencies,

44
Bangladesh Parjatan Corporation, different hotels, Chinese restaurants and
residential areas etc.

4.1.5 Taste of RC Upper 10


4.1.5.1 Related Question Number 10. Regarding the taste of lemon lime soft drinks
how do you rate different brands? Please answer this question using a 5 point
rating scale where 5= excellent, 4= very good, 3= good, 2= fair, 1= poor.

4.1.5.2 Objective of the Question. To determine the consumers perception regarding


the taste of RC Upper 10.

4.1.5.3 Data Collected. Table 8 shows the consumers perception regarding the taste
of RC Upper 10.

Table 8 Consumers perception regarding the taste of RC Upper 10


Statement Value of the cell Sample Mean
Excellent 10
Very Good 28
Good 63
Fair 20 2.9756
Poor 1
Total point 122
Resp. no. 41
Source: primary Data.

4.1.5.4 Analysis Technique Used. The researcher has used Z test to determine
whether the taste of RC Upper 10 is good or not.

4.1.5.6 Related Hypotheses. The related hypotheses are as following

Null Hypotheses: Ho : At 80% confidence level it can be said that the


consumers perception regarding the taste of RC Upper 10 is good i.e. ( = 3)

45
Alternative Hypotheses: H1 : At 80% confidence level it can be said that the
consumers perception regarding the taste of RC Upper 10 is less than good i.e.
( 3)

4.1.5.7 Analysis & Findings of the Question. Calculation for the Z test is shown
below:
Population = 3.0
Sample X = 2.9756

2.9756-3.0
Z observed = 0.10

= -0.24
Z critical = -0.84

Figure 9 Normal distribution of taste of RC Upper 10

Accepted Region

-0.84 -0.24
Source: Primary Data

4.1.5.8 Interpretation of the Findings


80% confidence level considering the population to be normally distributed the
critical value of Z is 0.84. From the calculation the researcher found that the
observed value of Z is 0.24, which is within the range of critical value of Z.
Thus the Null Hypothesis is accepted. It implies that, At 80% confidence level
it may be said that the consumers perception about the taste of RC Upper 10 is
good.
46
4.1.6 Advertisement Communication & PR of RC Upper 10.
4.1.6.1 Related Question Number 11. Regarding the advertisement communication
and PR, how do you rate different brands? Please answer this question using a
5 point rating scale where 5= excellent, 4= very good, 3= good, 2= fair, 1=
poor.
4.1.6.2 Objective if the Question. To determine the consumers perception regarding
the advertisement communication and PR of RC Upper 10.
4.1.6.3 Data Collected. Table 9 shows the consumers perception regarding the
advertisement communication and PR of RC Upper 10.
Table 9 Consumers perception regarding the advertisement communication and PR of
RC Upper 10.
Statement Value of the cell Sample Mean
Excellent 30 2.9268
Very Good 16
Good 39
Fair 34
Poor 1
Total point 120
Responds. no. 41
Source: primary Data.

4.1.6.4 Analysis Technique Used. The researcher has used Z test to determine
whether the advertisement communication and PR of RC Upper 10 is good or
not.
4.1.6.5 Related Hypotheses. The related hypotheses are as following
Null Hypotheses: Ho : At 80% confidence level it can be said that the
consumers perception about the advertisement communication and PR of RC
Upper 10 is good i.e. ( = 3)
Alternative Hypotheses: H1 : At 80% confidence level it can be said that the
consumers perception about the advertisement communication and PR of RC
Upper 10 is less than good i.e. ( 3)

4.1.6.6 Analysis & Findings of the Question. Calculation for the Z test is shown
below where sample mean was calculated from the table above.
47
Population = 3.0
Sample X = 2.9268

2.9268-3.0
Z observed = 0.10

= -0.73
Z critical = -0.84
Figure 10 Normal distribution of ad communication of RC Upper 10
Accepted Region

-0.84 -0.73
Source: Primary Data

48
4.1.6.7 Interpretation of the Findings

At 80% confidence level considering the population to be normally distributed


the critical value of Z is 0.84. From the calculation the researcher found that
the observed value of Z is 0.73, which is within the range of critical value of
Z. Thus the Null Hypothesis is accepted. It implies that, At 80% confidence
level it may be said that the consumers perception about the advertisement
communication and PR of RC Upper 10 is good.

4.1.7 Reasons to Buy Lemon Lime Soft Drinks

4.1.7.1 Related Question Number 12. People may buy lemon lime soft drinks for
variety of reasons. Please show the level of your agreement with the following
statements using a 7 point rating scale where 7= strongly agree, 6= agree, 5=
weakly agree, 4= indifferent, 3= weakly disagree 2= disagree and 1= strongly
disagree.
4.1.7.2 Objective if the Question. To determine the reasons to buy lemon lime soft
drinks by the consumers.
4.1.7.3 Data Collected. Table 10 shows different reasons to buy lemon lime soft
drinks by the consumers.

Table 10 Reasons to Buy Lemon Lime Soft Drinks


Points
Statement
7 6 5 4 3 2 1
For quenching thirst 7 13 9 7 2 3
To avoid cola drinks 9 4 5 13 4 5 1
For refreshment 16 17 6 2
Others (Pls. Specify)
Source: Primary Data

49
4.1.7.4 Conversion of Frequencies into Points. To determine the reasons to buy
lemon lime soft drinks, the researcher have converted these frequencies into
points by multiplying them with the respective points of the cell. The formula
used is:

Number of frequency in the cell x Value of that cell

Table 11 shows this conversion:


Table 11 Conversion Table of the Frequency of Question 12
Statement Value of the Cells Total Resp
Point No
For quenching thirst 49 78 45 28 6 6 0 212 41
To avoid cola drinks 63 24 25 52 12 10 1 187 41
For refreshment 112 102 30 8 0 0 0 252 41
Source : Primary Data

4.1.7.5 Analysis Technique Used. The researcher has used Arithmetic Mean to
determine the reasons to buy lemon lime soft drinks by the consumer. The
formula used for the determination of the mean is:

Mean Value = Total Point / Respondents Number

4.1.7.6 Findings of the Question. From the table above and using the formula shown
above the relative frequency of the reasons to buy lemon lime soft drinks by
the consumer is shown in Figure 11.

7 6.14
5.17
4.56
6
5 For quenching thirst
4 To avoid cola drinks
Figure
3
11 Reasons to Buy Lemon Lime Soft Drinks
For refreshment
2
1
50
0
1
Source : Primary Data

4.1.7.7 Interpretation of the Findings


As the figure shows, refreshment and quenching thirst are the two most
important reasons to buy the lemon lime soft drinks. Then people consider
avoiding cola drinks as their third reason.

4.1.8 Print Media: Preference of the Newspaper Read


4.1.8.1 Related Question: Question 13. What is your favorite first three daily
newspaper (1= most favorite and subsequently 2 and 3 for lesser favorites)
considering both Bengali and English newspapers?

4.1.8.2 Objective of the Question. To determine the suitable newspaper for giving
advertisement of the RC Upper 10.

4.1.8.3 Data Collected. Table 12 shows the preference of the newspaper of the
consumers.

51
Table 12 Preference of the newspaper of the consumers
Preference
Name of the Newspapers
1st 2nd 3rd
Daily Star 14 7 2
Prothom Alo 17 15 6
Jugantor 4 8 9
Ittefaq 3 6 12
Janakantho 1 2 5
Vorer Kagoj 0 1 2
Observer 1 1 0
Sangbad 0 0 1
Amar Desh 1 1 2
Noya Diganto 0 0 1
Dinkal 0 0 1
Source : Primary Data

4.1.8.4 Findings of the Question. The Prothom Alo is the most preferred newspaper
of the consumers of the lemon lime soft drinks. The Daily Star is the second
read newspaper by the consumers. Jugantor and ittefaq are jointly third
preferred newspaper. Figure 12 shows details of the consumers preference of
different newspaper.

52
Figure 12 Preference of Newspaper

Daily Star
Prothom Alo

30% Jugantor
17% Ittefaq
Janakantho
Vorer Kagoj
Observer
Sangbad
19% 17%
Amar Desh
1%
1%3% 1%2% 2% 7%
Noya Diganto
Dinkal

Source : Primary Data

4.1.8.5 Interpretation of the Findings


Advertisements given in Prothom Alo will reach highest numbers of the
consumers. If a second newspaper is to be chosen, it can be either The Daily
Star or Jugantor or Ittefaq. However The Daily Star should be chosen as it
reaches to the consumers who cannot read Bengali.

4.1.9 Print Media : Preference in Reading the Specific Page of the Newspaper.

4.1.9.1 Related Question: Question 14. Please mark the following topics according
to your preference while reading newspaper. Mark your preferences by
assigning numbers on the right column beside the pages where 1= first read, 2=
next read and so on.

4.1.9.2 Objective of the Question. To determine the specific page, giving


advertisement in which will be exposed maximum number of consumers.

53
4.1.9.3 Data Collected. Table 13 shows the data collected through Question 14

Table 13 Preference in Reading the Specific Page of the Newspaper


Preference in Reading
Page of Newspaper
1st 2nd 3rd 4th 5th 6th 7th
Front Page 39 1 1 0 0 0 0
Last Page 0 29 7 1 3 0 1
Sports news page 2 6 19 3 4 6 1
International news page 0 5 9 17 8 2 0
National news page 0 0 4 11 9 13 4
Business news page 0 0 1 5 3 8 24
Culture/Literature page 0 0 0 4 14 12 11
Source : Primary Data

4.1.9.4 Analysis of the Data. As the Table 13 shows, Sports news page of the
newspaper is the first to read as third preference i.e. 47% of the cases. It is
followed by the preference for the international news page.
Figure 13 Third Preference of Consumers to read Newspaper Pages

Font
10% 2% 0%2%
17% Last
Sports New s
22% International
National
Business
Cultural & Literature

47%

Source: Primary Data


4.1.9.5 Interpretation of the Findings. Advertisement for the RC Upper 10 should be
given in the front page or last page of the newspaper. If that does not become
possible, the next choice is the sports news page.

4.1.10 Electronic Media : Preference of the Bengali TV Channels

54
4.1.10.1 Related Question : Question 15. Please prioritize your favorite (from
1 to 4, 1= highest favored and 4= least favored) Bengali TV channels.

4.1.10.2 Data Collected. Table 14 shows the data collected on the preference of
the TV channels of the consumers of lemon lime soft drinks.

Table 14 Preference Ranking of the TV Channels

Preference Ranking
TV Channel
1st 2nd 3rd 4th
ATN Bangla 8 13 19 1
Channel I 17 15 5 4
ntv 13 12 15 1
BTV 3 1 2 35
Source : Primary Data

4.1.10.3 Findings and the Interpretations. As Figure 14 shows, Channel I

is the most viewed channel. ntv is in the second position. ATN Bangla
is in the third place whereas BTV is last in the preference list.

55
Figure 14 First Preference of TV Channel of the Consumers

Channel I
41%

ntv
32%

ATN BTV
20% 7%

Source : Primary Data

For reaching the maximum number of the prospective consumers

advertisement should be preferably given in Channel I. Advertisements in ntv


and ATN Bangla can also be effective. Giving advertisements in BTV only
may fail to reach maximum number of target consumers within Dhaka City.

4.1.11 Electronic Media : Time of Watching TV

4.1.11.1 Related Question : Question 16. Please mention the time slot
when you watch TV. It may even be multiple slots with break in
between. (MENTION IT AS BLOCK TIME LIKE 6 PM TO 8 PM
OR 8 PM AND 10 PM TO 12 PM ETC)

4.1.11.2 Objective of the Question. To determine the suitable time for giving
the advertisement in the TV channels reach maximum of the target
customers.

56
4.1.11.3 Data collected. Table 15 shows the TV watching time of the
consumers.

Table 15 TV watching time


Time 6 pm 8 pm 8 pm 10 pm 10 pm 12 pm
Respondent 5 34 25
Source: Primary data.

4.1.11.4 Findings and Interpretation. Most of the people watch TV in three


overlapped time slots. Those are 6 pm to 8 pm, 8 pm to 10 pm and 10
pm to 12 pm. The percentage of viewers according to such slots is
shown in Figure 15.

Figure 15 Time Slots of Watching TV

6 pm - 8 pm
8%
10 pm -12 pm
39%

8 pm - 10 pm
53%

Source : Primary Data

57
4.2 Retailers Perspective

4.2.1 Most sold brand of lemon lime soft drinks

4.2.1.1 Related Question: Question 2 Question 2 is designed to get the perception of


the retailers about the most sold brand of lemon lime soft drinks.

4.2.1.2 Objective of the Question. To identify the state of most sold brand
perceived by the retailers of lemon lime soft drinks.

4.2.1.3 Derived Data. Table 16 shows data collected through question 2.

Table 16 Perception Ranking of most sold brand of lemon lime soft drinks.

Name of Brands 1st 2nd 3rd 4th


Sprite 13 7 6 9
RC Upper 10 7 12 14 6
7 Up 17 11 5 7
Fizz Up 4 7 11 10
Virgin Blue 0 4 5 9
Source: Primary Data.

4.2.1.4 Analysis Technique. Frequency analysis technique has been used in the
analysis of the questions.

4.2.1.5 Findings . Figure 16 shows the percentage of retailers perception as first most
sold brand of different lemon lime soft drinks. As shown in the figure, 7 Up is
the first most sold brand with 41%. Then subsequently Sprite with 32%, RC
Upper 10 with 17%, Fizz Up with 10%, and Virgin Blue has got 0%.

58
Figure 16 Percentages of Perception of retailers about most sold brand of lemon lime soft
drinks.

Fizz Up Virgin Blue


10% 0% Sprite
32% Sprite
RC Upper 10
7 Up
7 Up Fizz Up
41% Virgin Blue
RC Upper 10
17%

Source : Primary Data.

4.2.2 Trade oriented sales promotion (Margin) of RC Upper 10.

4.2.2.1 Related Question Number 4. Regarding the trade oriented sales promotion
(margin) of different soft drink brands, how do you rate different brands?
Please answer this question using a 5 point rating scale where 5= excellent, 4=
very good, 3= good, 2= fair, 1= poor.

4.2.2.2 Objective if the Question. To determine the retailers perception regarding the
trade oriented sales promotion (Margin) of RC Upper 10.

4.2.2.3 Data Collected. Table 17 shows the retailers perception regarding the trade
oriented sales promotion (Margin) of RC Upper 10.

59
Table 17 Retailers perception regarding the trade oriented sales promotion (Margin) of RC
Upper 10.
Statement Value of the Cell Sample Mean
Excellent 10
Very Good 76
Good 60
Fair 0 3.5609
Poor 0
Total Point 146
Resp. no. 41
Source: primary Data.

4.2.2.4 Analysis Technique Used. The researcher has used Z test to determine
whether the retailers perception regarding the trade oriented sales promotion
(Margin) of RC Upper 10 is good or not.

4.2.2.5 Related Hypotheses. The related hypotheses are as following

Null Hypotheses: Ho : At 80% confidence level it can be said that the retailers
perception regarding the trade oriented sales promotion (Margin) of RC Upper
10 is good i.e. ( = 3)
Alternative Hypotheses: H1 : At 80% confidence level it can be said that the
retailers perception regarding the trade oriented sales promotion (Margin) of
RC Upper 10 is more than good i.e. ( 3)

60
4.2.2.6 Analysis & Findings of the Question. Calculation for the Z test is shown
below:

Population = 3.0
Sample X = 3.5609

3.5609 - 3.0
Z observed = 0.10

= 5.61
Z critical = 0.84

Figure 17 Normal distribution of sales promotion of RC Upper 10

Accepted Region

0.84 5.61
Source: Primary Data
4.2.2.7 Interpretation of the Findings
At 80% confidence level considering the population to be normally distributed
the critical value of Z is 0.84. From the calculation the researcher found that
the observed value of Z is 5.61, which is beyond the range of critical value of
Z.

61
Thus the Null Hypothesis is rejected. It implies that, At 80% confidence level
it may be said that the retailers perception regarding the trade oriented sales
promotion (Margin) of RC Upper 10 is more than good.

4.2.3 Retailers considerations to keep different brands in store

4.2.3.1 Related Question: Question No. 7. This question is designed to identify the
retailers considerations to keep different brands in store.

4.2.3.2 Objective of the Question


-To determine the attributes that influence the retailer to keep different brands
of lemon lime soft drink.

4.2.3.3 Data Collected. Table 18 shows data collected through Questions 7

Table 18 Preference Ranking of Different Attributes


Preference Ranking
Attributes
1st 2nd 3rd 4th
Lowest price 0 1 2 38
Brands demanded by the consumer 21 17 3 0
Availability of brands 16 13 11 1
Good reputation of the company 4 10 25 2
Other (Pls. Specify)
Source: Primary Data.

4.2.3.4 Analysis Technique Used. Arithmetic mean is used to analyze this set of data.

4.2.3.5 Findings and Interpretations of the Question. As shown in Figure 18,


Brands demanded by the consumer is the most important attribute for the
retailers to keep different brands. If only the case of 1st preference is
considered, 51% cases of the first preference are attributed to the brands
demanded by the consumer. Availability of brand is the second important
attribute to the retailer, and then comes good reputation of the company.

62
Figure 18 Retailers first preference on the attributes to keep different brands.

Good reputation of
the company Lowest price
10% 0%

Brands demanded by
Availability of brands consumer's
39% 51%

Source: Primary Data

4.2.4 Distribution system of different lemon lime soft drinks brands.

4.2.4.1 Related Question: Question No 9. Question 9 is designed to determine the


level of excellence of different brands distribution system. Respondents are
require to answer the question using a 5 point rating sale where 5= Excellent,
4= Very Good, 3= Good, 2= Fair and 1= poor.

4.2.4.2 Objective of the Question.


-To determine whether the distribution system of different brands and level of
excellence are independent or not.

4.2.4.3 Data Collected. Table 19 shows the retailers perception on the distribution
system of different brands.

63
Table 19 Retailers perception on the level of excellence of different brands
distribution system.
Brands Excellent Very Good Good Fair Poor Total
Fizz Up 3 20 18 0 0 41
RC Upper 10 2 19 20 0 0 41
Sprite 4 13 19 5 0 41
7 Up 10 19 12 0 0 41
Virgin Blue 0 6 27 7 1 41
Total 19 77 96 12 1 205
Source: Primary Data

4.2.4.4 Analysis Technique Used. The researcher has used Chi-square test of
independence to determine whether the distribution system of different brands
and level of excellence are independent or not.

4.2.4.5 Related Hypotheses. The related hypotheses are as following:

Null Hypotheses: H0: Distribution system of different brands and level of


excellence are independent.
Alternative Hypotheses: H1: Something else
: Level of significance = .20

4.2.4.6 Analysis & Findings of the Question. Calculation for the Chi-square test of
independence is shown in table 20.

64
Table 20 Calculation (Chi Square statistics) For Test of Data Independence
f0 fe 2
Row Column f0 fe f0 - fe
fe
1 1
23 7.2 15.8
1 2
1 3 18 19.2 -1.2
1 4
1 5 2 6.4 -4.4
2 1
2 2
39 22.6 16.4
2 3
2 4
2 5 4 6.4 -2.4
3 1
3 2
32 22.6 9.4
3 3 2 = 85.4673
3 4
3 5 15 6.4 8.6
4 1
4 2
31 22.6 8.4
4 3
4 4
4 5 0 6.4 -6.4
5 1
5 2
5 3
41 25.2 15.8
5 4
5 5
Source: Primary Data.

65
Degrees of freedom () =(r-1) (c-1)
= (5-1)(5-1)}
= 16
2 critical value = 11.152

Figure 19 Test of Independence

Accepted Region

11.152 85.47

Source: Primary Data

4.2.4.7 Interpretation of the Findings


At 80% confidence level the critical value of 2 is 11.152. From the calculation
the researcher found that the observed value of 2 is 85.4673, which is beyond
the range of critical value of 2.
Thus the Null Hypothesis is rejected. It implies that, At 80% confidence level
it may be said that the distribution system of different brands and level of
excellence are not independent.

66
4.3 Manufacturers Considerations

This part of the report contains the consolidated form of the depth interviews of the executives
of the lemon lime soft drinks manufacturers.

4.3.1 Transcom Beverage Limited

4.3.1.1 Name of Brand : 7 Up


4.3.1.2 Product Size :
2 Liter Pet
1 Liter Pet
1000 ml Glass bottle
250 ml Glass bottle
4.3.1.3 Pricing Strategy :
Table 21 Pricing of 7 Up
Size Distributor Price (Taka) Retailer Price (Taka)
2 Liter pet 43.83 45.50
1 Liter Pet 27.00 28.25
1000 ml Glass 20.16 21.66
250 ml Glass 7.70 7.91
Source : Transcom Beverage Ltd.

4.3.1.4 Trade offers:


- 5% commission for the distributors on both sizes.
- 2 bottle free for each carton for the retailers.

4.3.1.5 Placement :

4.3.1.5.1 Distribution Strategy : Figure 20 shows the distribution


channel of 7 Up.

Figure 20 Distribution Network of 7 Up

67
Factory
Factory

Depots
Depots

Distributors
Distributors

Wholesalers
Wholesalers

Retailers
Retailers

Source : Transcom Beverage Ltd.

4.3.1.6 Promotion Activities :

4.3.1.6.1 Advertisements :

Electronic Media :
Infrequent Tv advertisement on the following channels:

- ntv
- BTV
- Channel I
- ATN Bangla

Print Media :

Advertisements in The Daily Prothom Alo, Daily Star, Ittefeq,


Observer and Jonokantha.

Billboards : In selected places of Dhaka and other metropolitan


city.

68
In Store Display : Display rack is given to the retailers and
exclusive super stores of the Dhaka city like Meena Bazar, PQS,
Agora, etc.

Other Advertisements : Building painting, signboards of the


retail outlets.

Sales Promotions : Danglers, Stickers, Posters, T-shirts, Sun


caps etc.

Public Relations : 7 Up sponsored different sports and musical


events etc.

4.3.2 Tabani Beverage Limited

4.3.2.1 Name of Brand : Sprite

4.3.2.2 Product Size :


1.5 Liter Pet
1 Liter Pet
250 ml an
250 ml glass bottle

69
4.3.2.3 Pricing Strategy :

Table 22 Pricing of Sprite


Size Distributor Price (Taka) Retailer Price ( Taka)
1.5 Liter Pet 38.25
1 Liter pet 28.25 28.50
250 ml Can 13.00 13.50
250 ml Glass 7.50 7.91
Source : Tabani Beverage Ltd.

4.3.2.4 Trade offers :

- The distributors only get the incentive for the soft drinks.
- 2 bottle free for each carton for the retailers.

4.3.2.5 Placement :

4.3.2.5.1 Distribution Strategy : Figure 21 shows the distribution


network of the Sprite
Figure 21 Distribution Network of Sprite

Factory
Factory

Depots
Depots

Distributors
Distributors

Wholesalers
Wholesalers

Retailers
Retailers

Source : Tabani Beverage Ltd.

4.3.2.6 Promotion Activities :

70
4.3.2.6.1 Advertisements :

Electronic Media :

Infrequent Tv advertisement on the following channels:

- ntv
- BTV
- Channel I
- ATN Bangla

Print Media :

Advertisements in The Daily Prothom Alo, Daily Star, Ittefeq,


Observer and Jonokantha.

Billboards : In selected places of Dhaka and other metropolitan


city.

In Store Display : Display rack is given to the retailers and


exclusive super stores of the Dhaka city like Meena Bazar,
PQS, Agora, etc.

Other Advertisements : Building painting, signboards of the


retail outlets.

Sales Promotions : Danglers, Stickers, Posters, T-shirts, Sun


caps etc.

4.3.3 Globe Soft Drinks Limited

71
4.3.3.1 Name of Brand : Fizz Up
4.3.3.2 Product Size :

2 Liter Pet
1 Liter Pet
500 ml Pet
330 ml Pet
250 ml Can

4.3.3.3 Pricing Strategy :


Table 23 Pricing of Fizz Up
Size Distributor Price (Taka) Retailer Price ( Taka)
2 Liter Pet 40.00 45.00
1 Liter Pet 24.00 26.00
500 ml Pet 13.00 14.00
330 ml Pet 9.25 10.00
250 ml Can 12.50 13.00
Source : Globe Soft Drinks Ltd.

4.3.3.4 Trade offers :


- 10% commission for the distributors in all size
- 3 bottle free for each carton for the retailers.

4.3.3.5 Placement :

4.3.3.5.1 Distribution Strategy : Figure 22 shows the distribution


network of Fizz Up.

Figure 22 Distribution Network of Fizz Up

72
Factory
Factory

Depots
Depots

Distributors
Distributors

Wholesalers
Wholesalers

Retailers
Retailers

Source : Globe Soft Drinks Ltd.

4.3.3.6 Promotion Activities :

Electronic Media :

Aggressive Tv advertisement before news and during other programs


like drama, music, sports etc.on the following channels:

- ntv
- BTV
- Channel I
- ATN Bangla

Print Media :

Advertisements in The Daily Prothom Alo, Daily Star, Ittefeq, Jugantor, Observer and
Jonokantha.

Billboards : In selected places of Dhaka and other metropolitan city.

73
In Store Display : Display rack is given to the retailers and
exclusive super stores of the Dhaka city like Meena Bazar, PQS, Agora,
etc.

Other Advertisements : Transit Ad, Building painting, signboards of


the retail outlets.

Sales Promotions : Danglers, Stickers, Posters, T-shirts, Sun caps etc.

Public Relations : Fizz Up sponsored different musical events etc.

4.3.4 Global Beverage Co. Ltd.

4.3.4.1 Name of Brand : Virgin Blue

4.3.4.2 Product Size :


1.5 Liter Pet
1 liter Pet
500 ml Pet
250 ml Pet
250 ml Can

4.3.4.3 Pricing Strategy :


Table 24 Pricing of Virgin Blue
Size Distributor Price (Taka) Retailer Price ( Taka)
1.5 Liter pet 34.00 35.50
1 liter pet 25.50 26.50
500 ml Pet 12.50 13.00
250 ml Pet 8.00 8.50
250 ml Can 12.50 13.00
Source : Global Beverage Co. Ltd.
4.3.4.4 Trade offers :
- 10% commission for the distributors in all size.

74
- 2 bottle free for each carton for the retailers.

4.3.4.5 Placement:

4.3.4.5.1 Distribution Strategy : Figure 23 shows the distribution


network of Fizz Up.
Figure 23 Distribution Network of Virgin Blue.

Factory
Factory

Depots
Depots

Distributors
Distributors

Wholesalers
Wholesalers

Retailers
Retailers

Source : Global Beverage Co. Ltd.

4.3.4.6 Promotion Activities :

Electronic Media :

Infrequent Tv advertisement on the following channels:

- ntv
- BTV
- Channel I
- ATN Bangla

Print Media :

75
Infrequent advertisements in The Daily Prothom Alo, Daily Star, Ittefeq,
Jugantor and Jonokantha.

Billboards : In selected places of Dhaka and other metropolitan


city.

In Store Display : Display rack is given to the retailers of


Dhaka city.

Other Advertisements : Building painting, signboards of the


retail stores.

Sales Promotions : Sweepstakes Danglers, Stickers, Posters, T-


shirts, Sun caps etc.

Public Relations : Virgin Blue sponsored different musical


events etc.

5.0 Ending Summary

76
Partex Beverage Ltd. a franchising concern of Royal Crown Cola International, which is a US
based soft drinks company. Partex Beverage Limited was established as a subsidiary of Partex
Group in 1997. Presently Partex Group is a leading business conglomerates in Bangladesh. It
is a Private Limited Company.

Partex Group has more than 17 business concerns in Bangladesh. Partex Beverage Ltd. offers
RC as a family brand name with four flavors to the banladeshi consumers. RC has cola,
lemon lime soda, orange and lemon flavors to its carbonated drinks category. Besides they
have MUM as a mineral water brand.

Partex Beverage Ltd. wants to know the market scenario of their RC Upper 10 brand. This
study had the objective of determining a suitable distribution and marketing strategy for RC
Upper 10.

Population of interest of the research included the manufacturers, retailers, as well as


individual consumers of lemon lime soft drinks. The researcher divided the population of
interest mainly in three strata:

Manufacturers Strata
Consumers Strata
Retailers Strata

Manufacturers strata included the marketing / sales executives of the manufacturers of lemon
lime soft drinks. Consumers strata included 41 individual consumers. Retailers strata
included 41 retailers of soft drinks in Dhaka city.

The researcher has used probability sampling; within that broad category cluster sampling
was done. For data collection the researcher used both library research and field survey

77
technique. The researcher used both qualitative and quantitative data analysis technique for
the study.

Study finds that 100% of the individual consumers have brand preference in purchasing
lemon lime soft drinks. The most effective way to reach the soft drinks to the consumers is to
place it in railway station, bus station, and ferry ghats etc. Other places should include the
retail outlets in the residential areas, stadiums, different fast- food shops, hotels, Chinese
restaurants etc.

Study reveals that, consumers who have brand preference in purchasing lemon lime soft
drinks they prefer as their first preference like - Sprite is the most preferred brand with 46%.
Then subsequently 7 Up with 32%, Fizz Up with 10%, RC Upper 10 with 7% and Virgin Blue
with 5%.

Study revealed that, taste of lemon lime soft drinks is the most important attribute for the
brand preference. If only the case of 1st preference is considered, 59% cases of the first
preference are attributed to the taste of soft drinks. Good brand image is second important
reason of developing brand preference by the individual consumers. Good-looking bottles and
availability are also important attributes in developing brand preference.

TV advertisements can play a vital role in developing brand familiarity and brand preference.
Word of Mouth too plays a vital role to develop a brand preference. Print media has also got
an important role in creating brand preference. Event sponsorship also can emerge better
perception about the company image to the prospects.

The Prothom Alo is the most preferred newspaper of consumers of the lemon lime soft drinks.
The Daily Star is the second preferred newspaper by the consumers. Jugantor and ittefaq are
jointly third preferred newspaper.

n
Advertisement should be preferably given in Channel I . Advertisements in tv can also be
effective. Giving advertisements in ATN Bangla and BTV only may fail to reach maximum
number of target consumers.
78
According to the retailers perception about the first most sold brand among different lemon
lime soft drinks category, 7 Up is the first most sold brand with 41%. Then subsequently
Sprite with 32%, RC Upper 10 with 17%, Fizz Up with 10%, and Virgin Blue has got 0%
market share.

Sales promotion like providing gift and incentives are influential to the retailers. Though
presently margin is considered as the only trade oriented sales promotion. RC should maintain
their present standing to have a good market share. From the study it was found that retailers
perception regarding the trade oriented sales promotion of RC is more than good.

6.0 RECOMMENDED STRATEGY FOR RC UPPER 10

79
Marketing strategy involves the Four P of marketing i.e. product, price, promotion and
place. As RC Upper 10 is an existing brand in the lemon lime drinks category and its
product and pricing strategy are market competitive. Therefore, basing on the analysis and
findings of the study the researcher recommend following Promotion and placing strategy for
RC Upper 10 to make it a success in the carbonated beverage market.

6.1 Promotion Strategy

6.1.1 Advertisements

6.1.1.1 Electronic Media Considering the electronic media vehicle,


the following recommendations are suggested:

Give advertisements firstly in Channel I. As the second

channel ntv should be selected. Advertisements given in 8pm-


10pm time slot are likely to be exposed to maximum number of
consumers.

Take all out efforts for product placement in movie or drama


serials in the electronic media so that consumers will perceive
the brand as high quality.

Advertisements given during the News of Channel I will be


viewed by maximum number of consumers.

Drama and Drama serials are the next suitable programs to give
advertisements.

6.1.1.2 Print Media Considering the print media vehicle, the


following recommendations are suggested:

80
Give advertisements firstly in the daily Prothom Alo. As a
second choice select The Daily Star so that they are
exposed to foreigners also.

Give advertisement in the sports news page if it is not possible


to give advertisement in the front page or last page.

6.1.2 Message of Advertisement

Advertisements should highlight the quality image of RC. They must


communicate that RC Upper 10 is a quality product.

Use humor appeal or emotional appeal in the electronic media category


advertisements.

6.1.3 Sales Promotion

Arrange sales promotion for the retailers, like giving incentives and gifts item
to the retailer as they have a role to play in buyers decision-making process.

6.1.4 Personal Selling

Go for aggressive personal selling for the institutional consumers like Chinese
restaurants, hotels etc.

6.2 Placing Strategy

6.2.1 Distribution Channel

81
The present distribution channel of Partex Beverage Limited is good enough
for the sales of RC Upper 10. However the following things should be taken
special care of:

SRs must cover all the retail outlets of the area especially the small outlets at
backward places.

Always try to avoid stock outs of soft drinks at the consumers end.

Convince the retailers, even with additional incentives, to place the RC


Upper 10 in such place of the shelf, which is at the eye level and most
exposed to the customers.

Capture shelf spaces in exclusive super stores of Dhaka city.

BIBLIOGRAPHY

82
Books

William G. Zikmund, Business Research Methods, 6th Edition, Harcourt College Publishers,
2000.

C R Kothari, Research Methodology, 2nd Edition, Wishwa Prakashan, 2003.

Cooper, Donald R & Pamela s. Schindler, Business Research Methods, 7th Edition, McGraw-
Hill Irwin, 2001.

Carl McDaniel, Jr, Contemporary Marketing Research, 3rd Edition, New York, USA West
Publishing Company, 1996.

Del I. Hawkins, Consumer Behavior Building Marketing Strategy, International Edition,


Boston, USA, Von Hoffman Press, Inc, 2001.

Philip Kotler, Marketing Management, Millennium Edition, New Delhi, India, Prentice-Hall
of India Private Limited, 2000

ANNEX A
Questionnaire for the Consumers of Lemon Lime Soft Drinks
Assalamo Alaikum/Hello

83
I am Bhuia Mohammad Rashedul Hassan. I have done MBA from Military Institute of Science and Technology
(MIST), University of Dhaka. Presently I am undergoing through internship program in Partex Beverage Ltd. As a
part of my internship program I am conducting a market research on the lemon lime soft drinks of Bangladesh. I
would like to ask you a few questions about lemon lime soft drink brands of Bangladesh. I assure you that
information provided will only be used for academic purpose and you will not be contacted again.

1. Have you ever taken lemon lime Soft drinks?

* Yes * No (PLEASE SKIP TO THE QUESTION # 12)

2. Do you have any preferred brand in the lemon lime drinks category?

* Yes * No (PLEASE SKIP TO THE QUESTION # 8)

3. Please rank your preferred first three brands?


____ Sprite
____ RC Upper 10
____ 7 Up
____ Fizz Up
____ Virgin Blue
____ Others (Please Specify)

4. Why do you prefer these brands? Please rank the following criteria according to your
preference.
____ Good brand image
____ Most widely available
____ Significantly better taste than others
____ Good looking bottles or cans
____ Others (Please Specify)

5. How have you become aware about these preferred brands? Please tick the reasons which
are applicable for you.

* Advertisement (TICK ALL WHICH ARE APPLICABLE)

TV
Billboard
Newspaper/Magazine
Poster/Leaflet
Event sponsorship
Others (Please Specify)
* Word of mouth (Publicity)
* Others (Please Specify)

6. If you do not get your preferred brand in the shop will you search for it in another shop?

* Yes * No (PLEASE SKIP TO THE QUESTION # 8)

84
7. Please specify how strongly you will search for your preferred brand by ticking
the statement appropriate for you. (AFTER ANSWERING THIS QUESTION,
PLEASE SKIP THE NEXT QUESTION)

* Will check in the next outlet only


* Will check in the whole market
* Will go to another market
* Others (Please specify)

8. Please tick the appropriate statement while you go for buying lemon lime soft
drinks?

* Brand which offers the least price


* Any brand offered by the retailer
* Brand with good looking package
* Others (Please specify)

9. When do you usually buy lemon lime soft drinks? Please answer this question
using a 5 point rating scale. Note that the gap between each point is equal.

Occasions of use Always Frequently Sometimes Seldom Never


5 4 3 2 1
For drinking at home
Once dining outside
During journey
Enjoying sports in
stadium
Others (Please specify)

10. Regarding the taste of lemon lime soft drinks how do you rate different brands? Please answer
this question using a 5 point rating scale. Remember that the gap between each point is equal.

Brands Excellent Very Good Good Fair Poor NA


5 4 3 2 1
Fizz Up
RC Upper 10
Sprite
7 Up
Virgin Blue
Others (Please
specify)

85
11. Regarding the advertisement promotion & public relation activities how do you rate different
brands? Please answer this question using a 5 point rating scale. Remember that the gap between
each point is equal.

Brands Excellent Very Good Good Fair Poor NA


5 4 3 2 1
Fizz Up
RC Upper 10
Sprite
7 Up
Virgin Blue
Others (Please
specify)

12. People may buy lemon lime soft drinks for variety of reasons. Please show the
level of your agreement with the following statements using a 7 point rating scale.
Where 7= strongly agree, 6= agree, 5= weakly agree, 4= indifferent, 3= weakly
disagree, 2= disagree and 1= strongly disagree. Note that the gap between each point
is equal.

Statements Points
For quenching thirst
To avoid cola drinks
For refreshment
Others (Please specify)

13. What is your favorite first three daily newspaper (1= most favorite and
subsequently 2,3 for favorites) considering both Bengali and English newspaper?
Ans : 1.

2.

3.

14. Please mark the following topics according to your preference while reading
newspaper. Mark your preferences by assigning numbers of the right column beside
the pages where 1= first read, 2= next read and so on.

Page of Newspaper Preference in reading


Front Page
Last Page
Sports news page
International news page
National news page
Business news page
Culture / Literature page
Others ( Please specify)

86
15. Please prioritize your favorite (from 1 to 4, 1 = highest favored and 4 = least
favored) Bengali TV channel from the followings:

Ans : * BTV * ntv * Channel I


* ATN Bangla * Others (Please Specify) .......
16. Please mention the time slot when you watch TV. It may even be multiple slots
with break in between. (MENTION IT AS BLOCK TIME LIKE 4 PM TO 10
PM OR 6 PM AND 8 PM TO 11 PM ETC)

Ans :

WE ARE ALMOST AT THE END OF OUR SURVEY, FEW MORE QUESTIONS


JUST TO CLASSIFY YOUR RESPONSE

17. Gender of the respondent


a. Male
b. Female

18. Which of the following age categories include your age?

a. Below 18
b. 18-25
c. Above 25-35
d. Above 35-50
e. Above 50

Your Name : ....................................................

Brief Address ..................................................

...........................................................

That concludes my survey. Thanks for taking the time to assist me.

87
ANNEX B
Questionnaire for the Retailers
Name of Retail Store : ......................................................................................
Market Area ......................................................................................

1. What are the brands of lemon lime soft drinks you keep in your store?
* Sprite
* RC Upper 10
* 7 Up
* Fizz Up
*Virgin Blue
* Others (please specify).

2. Most sold brand


1st ----
2nd ---
3rd ---
4th ---

3. Trade offer (margins/gift/product free/incentives) for different brands


Name of the Brand Offerings
* 7up ..............................................
* Fizz up ..............................................
* RC upper 10 ..............................................
* Sprite ..............................................
* Virgin blue ..............................................
* Others (please specify) ..............................................

4. Regarding the trade oriented sales promotion how do you rate different brands? Please
answer this question using a 5 point rating scale where 5 = Excellent, 4 = Very Good, 3 =
Good, 2 = Fair and 1 = Poor. Note that the gap between each point is equal.

Issues Brand Name


7 Up RC Upper Fizz Up Sprite Virgin Others(Specify)
10 Blue
Margin
Gift
Incentive
Product free
Others (specify)

5. What are the brands which customers want by name?


1st ----
2nd ---
3rd ---
88
6. Do the customers go away if they do not get their desired brand?

*Yes
*No

7. What are the things you consider to keep different brands of soft drinks in your
store? Please rank the following criteria according to your preference.

---- Lowest price


---- Brands demanded by the consumers
---- Availability of brands
---- Good reputation of the company
---- Any other (Please Specify)

8. How do you get soft drinks in your store?

Through company vehicle (please specify the type) .

* Through distributor vehicle (please specify the type).

* Collect it personally

* Any other (please specify)

9. Regarding the distribution system of soft drinks how do you rate different brands?
Please answer this question using a 5 point rating scale. Note that the gap between each point is
equal.

Brands Excellent Very Good Good Fair Poor


5 4 3 2 1
Fizz Up
RC Upper 10
Sprite
7 Up
Virgin Blue
Others (Please
specify)

10. Do you face any stock out situation?

* Yes (Please specify the occasion) .

* No

THANK YOU

89
ANNEX C
Interview Checklist for the Executives of Competitors
Name of the Organization :
Person Interviewed :
Date & Time of Interview :

1. What are the types of packages of lemon lime soft drinks does your company
have ?

a. PET Bottles :
..................................
.................................
.................................
.................................

b. Cans :
..................................
..................................

2. What is your distribution system ?

Distributors :
Dhaka :

Outside Dhaka :

Wholesalers :
Dhaka :

Outside Dhaka :

Retailers :
Dhaka :

Outside Dhaka :

90
3. How do you reach soft drinks to your :

Distributors :
Company Vehicle ( Specify Type) :

Others ( Please Specify) :

Wholesalers :
Company Vehicle ( Specify Type) :

Others ( Please Specify) :

Retailers :
Company Vehicle ( Specify Type) :

Others ( Please Specify) :

4. What is your pricing strategy ?

Bottle/Can size Distributor Price Wholesalers Retailers Price Remarks


Price

5. What are the incentives / sales promotions for :

Bottle/Can size Distributors Wholesalers Retailers Remarks

6. What was your sales in last :

One Year :

91
7. What are your promotional efforts for consumers:

Advertisement: (Please Specify)

TV:
Newspaper:
Billboard:
Road sign:
In store display:
Others (Please Specify):

Sales Promotion :

Price Off :

Gifts :

Others :

THANK YOU

92

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