INTRODUCTION

Without creating high market demand of products organizational goal cannot be attained. An
organization without market demand of products is like to face a battle without armor. So causes
of low market demand and measures to change the situation is very important for any business
organization and studying this course is very essential for business related students. As part of
the course causes of low market demand, I have been assigned to make a report on the topic
Causes of low market demand of RC cola and measures to change this situation on
achievement status of RC cola, a unit of Partex Beverage Limited.

The objective of the study is to explore and analyze how various measures to change low market
demand has played role in achieving the organizational success in RC cola. But in preparing the
report I had to face different problems or limitations. Time was not sufficient to prepare a fruitful
report on such a topic, as the depth of the topic is so large. Moreover it was difficult to study on
the causes of low market demand of RC cola and measures to change the situation in the
organization as some required data and information were not delivered by the management.

In presence of the limitations I have left no stone unturned to make the report realistic as far as
possible. I must not leave the opportunity to acknowledge the assistance of some people who
have helped me a lot in providing necessary data and information required for the study. I would
like to express my special thanks to Mr. Md. Aktaruzzaman, DGM (Marketing) and Md. Nahid
Yousuf (Brand Manager) of, my external guide who helped me lot continuingly during my stay
time of Partex Beverage Ltd. for his cooperation in preparing the report. Thanks should also go
for the Marketing Executives and other employees of the company. But especially I like to thank
my internal guide Ms. Sreyoshi Ahmed for assigning me such an important topic through which I
have been able to gather some practical knowledge on practice of marketing policies in RC cola.

As methodology I have applied both primary and secondary sources to collect necessary data and
information. I took interview of different level of Management, Distributor, Dealers, Retailers,
and Consumers of Dhaka city. I also studied the annual report and some other manuals to serve

1
my purpose of achieving data and information. My effort would be successful if the report can
meet the expectation of my course teacher.

COMPANY PROFILE
Partex Group is among the large Bangladesh private sector manufacturing and service based
enterprises, owning and operating over twenty units giving value for money to all customers. The
group started modestly in 1959 in tobacco trading and with prudent entrepreneurship of Founder
Chairman Mr. M.A. Hashem today Partex Company has a stake in tobacco, food, water, soft
drinks, steel container, edible oil, wooden board, furniture, cotton yarn and the IT sector. From
importing to import substitution was the next logical step and the stepping stone into the
manufacturing sector, which has matured to the multimillion dollar diverse investment of the
Partex Group today. A dedicated work force and committed board members led by the Chairman
and backed by a market oriented corporate strategy has been the cornerstone of its success.
Today the group has over twenty family owned private limited companies with a sizable
turnover. Partex Company is a dynamic organization always exploring new ideas and avenues to
expand and grow further

GROUP MANAGEMENT

Mr. M. A. Hashem Chairman

Mr.Aziz Al- Kaiser Vice Chairman

Mrs. Sultana Hashem Director

Mr. Aziz Al-Mahmood Director

Mr. Aziz Al-Masud Director

Mr. Showkat Aziz Russell Director

M r.Rubel Aziz Director

2
Partex Beverage is a most popular company of Bangladesh. The Chairman of the Partex group of
company, Mr M.A. Hashem was visited an International Trade Exhibition on US in 1994.The
Royal Cola Company was attend to that exhibition and Mr. M.A. Hashem visited to that stall. He
discussed about the product of Cola to the Examiner them head and he wanted to know about
their profile of the company. From then he started conceptualizing the ideas of RC Beverage
brand in Bangladesh. He accepted International brand name and quality that gains acceptability
in the Bangladesh. Then he survey in Bangladesh about the new product of RC cola. After
positive result in 1996, the corporate head and the director formed of Partex Beverage Ltd.
Mr. Rubel Aziz takes the steps. Fund worth Tk. 10 cores were raised a part of equity from the
group although registered as a public limited in Rajenrapur. RC was launched in Dhaka on 20th
October in 1997. Since that as a new popular drinking and inventive packages has been
introduced in the market. Partex Beverage has also introduced its product Dhaka in not the
unexplored market.

MISSION

Our mission is to provide value at an economic cost, progress in diversity, and continue to
contribute to the growth of industrialization in Bangladesh by being the market challenger.

In 1994, Mr. M. A. Hashem, Chairman of Partex Group visited an International Trade Exhibition
in the US, where he happened to meet the executives of Royal Crown Cola Co. International.
From then on he started conceptualizing the idea of RC beverage brand in Bangladesh. With
international brand name recognition and quality he expected that it would gain acceptability in
the Bangladesh market.

When he returned, a wide range of marketing research was carried out by Partex as well as RC
International. After positive results, in 1996, the Corporate Head and the Directors formed Partex
Beverage Ltd. Mr. Rubel Aziz, one of the pioneers of the concept of RC, was given the position
of Managing Director. Funds worth Tk. 10 Crore were raised as part of Equity from the Group.
Although registered as a Public Limited Company, no public offerings have been made as yet.
The factory was setup in Rajendrapur, 40km away from Dhaka city. The company commenced
commercial production on 6th October 1997, and RC was launched in Dhaka on 20th October
1997. This is the story of how Partex Beverage Limited became the sole official bottler of Royal
Crown Cola Co. International.

Now it has been almost 3 years since then, and a number of new products, in new and innovative
packages have been introduced to the market. Partex Beverage has also introduced RC outside

3
Dhaka into unexplored markets. We are proud to say that we have stuck to our mission and are
now worth over Taka 80 core (US$ 16 Million).

To combine aggressive strategic marketing with quality products and services at competitive
prices in order to provide the best value for consumers. Grow profitable through superior
customer service, product innovation, quality and commitment.

VISION
To be an entrepreneurially driven enterprise - Thinking innovatively in all aspects of the
business, from technological to commercial. To be intensely competitive in whatever we do, by
constantly bettering the benchmarks set by us.

To be a globally preferred business associate - an entrepreneurial organization having responsible

concern for employees, society, the ecology, and stakeholder value. Strive to generate optimum
value for all our associates through constant innovation and adoption of universal best practices
and improving upon all those touches points that directly impact the business.

To provide a dynamic and challenging environment for our employees.

To be a responsible concern - We shall harmonize all our actions and reactions, with the global
environment and actively work to reduce our environmental load.

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:

4
Enterprise is our life. We manufacture quality import substitute consumer and industrial product.
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.

Concerns of Partex Group

AMBER COTTON MILLS LTD.

AMBER PULP AND PAPER MILLS LTD.
DHAKACOM LTD.
(ISP)RADIO DHAKA LTD.
PARTEX BEVERAGE LTD.
PARTEX DENIM LTD.
PARTEX FOUNDRY LTD.
PARTEX PAPER MILLS LTD.
PARTEX PLASTICS LTD.
PARTEX ROTOR MILLS LTD.
PARTEX ROTOR SPINNING MILLS LTD.
PARTEX REAL ESTATE LTD.
PARTEX SUGAR MILLS LTD.
PLASTIC ACCESSORIES LTD.
PARTEX ENERGY LTD.

Current Market Position of Partex Group:

Established in 1959, Partex Group is one of the leading industrial and trading groups in
Bangladesh. It consists of 17 concerns. Over 7,000 employees are working in this commercial
group. In 2000-2001 it's targeting turnover is US$ 160 million and estimated growth rate
15% per year. Net worth at current market price is Tk. 7,500 Million. Over 350 distributors
around the nation are engaged in distributing the products and services. There are over 45,000
outlets where products are marketed. Partex's movement is many-fold. It extends it's network in
various sectors extended from milk to steel products. Let's be familiar with some of the concerns
of Partex Group.

Partex Group At A Glance:

5
 Established in 1962
17 industries and trade concerns today2000
2001 targeted turnover US$ 160 million
Estimated growth rate around 15% per annum
Net worth at current market price nearly US$ 150 million
Over 350 distributor around the nation
Over 45,000 outlets where products are available
Over 7,000 employees

The story of RC (Royal Crown)

Royal Crown (RC) Cola made by the Royal Crown Cola Company is the third most popular Cola
in America. It is tasty, refreshing soft drink. In 1905, it was at first designed merely to meet the
needs of grocery customers in a limited graphical territory. A young man named Claude Hatcher
who was a good chemist, developed Royal Crown Ginger Ale in 1906. Royal Crown Ginger Ale
was a product of Hatcher Grocery Company of Columbus. Later around 1910, it was renamed
and was called Chero-Cola rich in cherry flavor. In 1923, the firm came up with a fruit flavored
drink name Melo. A year later the brand name was changed to Neli. Neli was a quick seller and
by 1928 a new company was formed called Neli Inc. and Chero-Cola was then became a product
of Neli Inc. in 1932 Neli Chemist Rufus Kamm concentrated with a new cola drink and his
concentration result was royal crown cola. It was introduced in 1934. In 1959, the company
name changed to Royal Crown Cola. Royal Crown Cola companys technicians made what
industry leaders term The most amazing break through soft drink technological
history.Royal Crown Cola Company was the first soft drink company to introduce a sugar free
product in 1962 and it was the first company to introduce a salt/sodium free cola in 1980.

The Royal Crown Cola Company made a late start on the international scene and the reason for
this was simple. Its management wanted to marshal its resources and concentrate its efforts on
the biggest growth market in the world at the time in United States.

In early 70s, RC Co. decided to go for global reach and at that time, a number of experienced
soft drink people assembled to manage and direct the companys international efforts. Since then,
RC Cola has been able to establish a viable base in the world market and it is currently sold in 63
countries through a network of 78 franchise bottling plants.

At first, in 1995 RC Cola introduced a premium draft cola. It introduced RC Products in

Bangladesh market in 1997 adding Royal Crown Lemon (first of its kind) with three other

6
refreshing flavors of sweet & seriated RC Cola, the fresh orange flavor of Royal Orange, the
tangy lime taste of Upper 10.

Partex Beverage Ltd. was incorporated in Bangladesh in 1997 as private limited company under
the companies Act, 1913. It is a member of Partex Group of Industries.

Objective of RC
Partex beverage industry is technically well equipped and quality control, at all stage, is of
highest order. The commitment of each department has ensured a management system of the
highest standards. From the initial rigorous quality taste of raw material to final inspection, the
beverages are assured of the highest quality. The product is an enduring testimony to the unique
excellence of the workforce.

RCs strength lies in the fact that it is the best in taste test against the order two colas. RC takes
an aggressive approach when planning its marketing strategy. Traditional marketing packages,
prices, promotion and distribution systems do not bind it, and by the same token, it does not
discard traditional marketing patterns if they present the means or opportunity of expressing a
positive point of different.

RC management approaches each situation with an open mind instead of imposing marketing
plans and programs on its franchisees. They recognize the differences as well as similarities in
each market and try to do be understanding and responsive to each bottles needs.

Royal Crown Cola Company is proud of its products and of the bothers that distribute them.
Together they maintain the high standards that were established by the companys pioneers.
Their goal is always to provide the best possible products at the reasonable prices, promptly and
courteously to customers everywhere.

Beverage Organogram (Management Structure)

7
 Managing
Director

Director Marketing

Asst. Sales Officer

Sales Representative/ Merchandiser

Marketing Manager

Controller, Sales

Brand Officer

Bottle Manager

Sales Manager

Asst. Sales Manager

Sales Officer

Management Structure Analysis

8
The Number 1 person of RC Cola Is Managing Director. After him the post of Director
Marketing does come. He has two supporting executives to help him in works. One of them is
Marketing Manager and another one is Controller, sales. Marketing Manager has an executive
officer named Brand Officer. Controller, Sales Manager has also two executive officer to help
him. They are Bottle Manager and Sales Manager. Sales Manager has his Deputy, Asst. Sales
Manager. Asst. Sales Manager has a subordinate, Sales Officer and Sales Officer has a Deputy,
Asst. Sales Officer. Another two people work under him. They are Sales Representative and
merchandiser.

Management Function of RC

RC Colas Management System Functions in four ways. They are as follows-

Planning:

Partex Beverage (RC) has top down planning approach. The top-level Management like
Managing Director and Director Marketing has authority to decide how they will go through and
achieve their goal. If the Brand Officer or Sales Manager gives some idea or plan to marketing
Manager or Controller Sales Manager the top level Management always encourages their ideas
and gives them the opportunity to carry with their plans and ideas if the Management thinks that
the idea will turn into profit. The top-level management sometimes asked the Marketing
Manager or Brand Officer to make some innovative plan for the company. If they become
successful to innovative something new the top level Management have a look on it and then
they decide whether to go through it or not.

Organizing:

Partex Beverage is a concern of Partex Group of Industries. It is franchised from AmericanRoyal

Crown Company. RCs industry is in Rajendropur, Gazipur. It has sales and corporate officer in
Motijheel C/A in Ispahani Building. RCs head and only office is situated in Sena Kalyan
Bhaban (16thfloor).

Staffing:

RC recruits staffs according to their qualifications and the nature of their job. For recruitment,
the top-level Management always gives more priority on oral tests (viva-voice).

Directing & Controlling:

9
RCs all employees have to maintain the office time of Partex Group as it is a concern of Partex
Beverage and the office time is from morning 9 a.m. to evening 5 p.m. Asst. Sales Officer and
Sales Representative has to stay outside of the office for their working purpose. In office, the
sitting arrangements are created in such a way that if the subordinates face any problem they can
easily asks their superiors. Although RC has a particular office time, all the employees have so
much responsibility that if they have any major work in their hand they leave the office
completing the work.

History of launching RC Cola in Bangladesh:

As we all know that Coca-Cola, Sprite, Pepsi are very famous drinks all over the world as well as
Bangladesh. We cant find single person who doesnt like soft drinks. Mainly our young
generation preferred to drinks. Now a days there are so many soft drinks company are coming
continuously like Euro-Cola, RC Cola etc. Most of them are tastes are quite similar. Popularity of
RC Cola is rapidly increasing day by day. In a small town, city even in villages RC Cola is
available. RC Cola has taken a very strong place in peoples heart within very short time. One
of the reasons is its price and another reason is its taste. The first line of beverages was
namedRoyal Crown and the first Cola was called Chero-Cola. The commenced
commercial production on 6th October, 1997, and RC was launched in Dhaka on 20th October
1997.For this report we have selected RC cola as our product. We have got reasons for what is
going to be downsized. First of all we are describing the history of RC cola. Here is market and
current market situation of it.

Brand portfolio:
RC cola
Diet RC
Diet Rite
Royal Crown Draft Cola Limited U.S. availability
Cherry R.C.- Available in Limited Markets
RC Edge - Available in Limited Markets
RC 100 Discontinued
Caffeine Free RC Available in Limited Markets
RC free- Available in Israel
RC Vince Villio Available in Akron , Ohio
RCQ - Royal Crown Queens
Name Launched Notes Picture

10
RC Cola 1905 The original RC Cola

Diet Rite 1958 The first diet cola

Cola
RC Cola 1974 The lemon RC Cola
Lemon
RC Draft 1995 A "premium" cola made with cane sugar
Cola

RC Cola 1999 A Cola with extra caffeine

Edge

RC Cola 2009 A no calorie no sugar RC Cola

Zero
RC Kick 2010 RC Cola with guarana

Cherry RC unknown The cherry RC Cola

Major Milestones:

1933:Mr. Claud Hatcher died on December 31st.

11
 1934:Chero-Cola is reformulated and the new product is named Royal Crown Cola.
1940:The Nehi Corporation is listed on the New York Stock Exchange.
1940:The Company first uses results of blind taste tests in the advertising campaign Best
by Taste Test.
1946:The Company began to enhance its advertising by using entertainment celebrities
like Bing Crosby, Joan Crawford, and Hedy Lamarr.
1958:Company changes name for the third time to Royal Crown Cola Company.
2000:Royal Crown Cola Co. is acquired by Cadbury Schweppes.
2001:Royal Crown Cola International is acquired by Cott Corporation.
2005:Royal Crown Cola Co. commemorated its 100th Anniversary.

Competition

RC Cola, Virgin cola, Pepsi and Coca-Cola had/have different brands of soda and other drinks
competing with each other's company:

Most Preferred Brand Consumed by the Consumer:

Out of the total sample size, 62.13% consumers like Coke, 17.26% Pepsi, 9.11% RC,
6.75%Virgin and others 4.75%. According to the result of the survey, we find that most of the
consumer in the Dhaka city liked Coke and the ratio is 62.13%.

Most Prefer Type of Flavor:

The consumers informed the following above the most prefer type of soft drinks: 51%
consumer indicated that they liked the Cola flavor most. 18% of them like the Orange flavor,
20% liked Lemon, 4% liked Diet, 4% Mango and others 3% liked Lime. Actually, children and
women liked Orange and Mango flavor most. Diet liked by health conscious people.

Influential Factors:

The influential factors are taste, brand, advertisement, friends influence and one of the vital
factor availability. The result had shown that 67% taste, 13% brand, 10% advertisement,
7%friends influence and 3% availability influence the consumers to buy or have the
beverage product.

Pack Preference:

12
The consumer indicated the following things about their pack preference of soft drinks,23%
of the consumer liked the fountain drinks, 27% liked 300ml bottle, 23% liked 250ml can, 19%
liked1000 and 1500ml PET bottle and only 8% liked 1000ml glass bottle. Consumers do not like
the1000ml glass bottle because of hazard of deposit system of bottle from the consumer.

Segmentation of the Consumer:

We have divided the consumers according to the age. The segments are children, teen age,
youth, people over 35 years. The aim was to find out which segment like most the beverage
product. The result indicate that 12% children, teen agers 49%, youth25%, people over 35 years
14%consumed or have beverage product. Therefore, the result indicates that teen agers are the
main segment of the beverage product.

Sources of Information:

The consumers reported the following about the sources of information 36% of them got the
Information about soft drinks from TV, 32% got the information from the print media, 18% from
the Radio, 12% from the outdoor (billboard) and only 2% from the word of mouth
communication.

Comparison of Cola

Taste Preference

The varieties of Cola in beverage products are:

Coca cola
Pepsi
RC
Virgin
Suncrest

The consumers indicate that they like Cokes cola most. The result I got they liked 46% cola
of Coke, 24% cola of Pepsi, 12% of RC, 15% of Virgin and 3% of Suncrests cola.

Reasons for loosing market in Bangladesh:

13
 Pepsi Cola and Coca Cola stormed into the market.
Advertising was minimal in Bangladesh as compared to its competition.
RC Cola was being sued by different organizations internationally. So it lowered its
investment in the sub-continent.

There were also some categories for not liking reasons. They were as follows:

No punch
Not strong
Too strong
Not sweet
Too sweet
Bitter taste
Tasteless
Taste

The consumers informed their reasons for not liking only for RC and Virgin. They did not
like RC and Virgin for the following reasons:

38% of the consumer indicated that RC had no punch, while the rest of 62% indicated
that Virgin had no punch.
In the not strong category, 40% consumers did not like RC Cola because it was not
strong and 60% disliked Virgin for the same reasons.
In the too strong category, 100% consumers disliked RC Cola because it was too much
strong.
In the not sweet category, 50% disliked RC Cola because it was not sweet and the rest
did not like Virgin for the same reason.
In the too sweet category, 75% of consumer indicated that RC Cola was sweeter than
Virgin.
In the bitter taste category, 50% consumers disliked both RC Cola and Virgin because
they were of bitter taste.
In the tasteless category, 37% consumer did not like RC Cola because it was tasteless
and63% consumers disliked Virgin for the same reason.
In the taste category, 50% consumers reported each for RC Cola and Virgin that they
did not have the taste.

There were also some categories for not liking reasons. They were as follows:
14
 Horrible Sour
No punch
Too strong
Not sweet
Too sweet
Bitter taste
Tasteless
Taste

The consumers informed the following reasons about their reasons for not liking, only
for Mirinda, RC orange and Virgin orange:

100% of the consumers disliked RC orange because it was horrible.

67% disliked RC orange because it was sour and 33% did not like Virgin orange for the
same reasons.
100% of the consumers indicated that RC orange had no punch.
In the not strong category, 83% consumers did not like RC orange because it was not
strong and 17% disliked Mirinda for the same reason.
In the too strong category, 70% consumer disliked Virgin orange because it was too
much strong.
In the not sweet category, 75% disliked RC orange because it was not sweet and the
rest 25% did not like Mirinda for the same reason.
In the too sweet category, 14% of consumer disliked Mirinda because it was too sweet,
57% disliked RC orange as it was also too sweet and 29% did not like Virgin orange
for the same reason.
In the bitter taste category, 64% consumers disliked RC orange and 36% consumers did
not like Virgin orange because both of them were of bitter taste.
In the tasteless category, 50% consumer disliked RC orange because it was tasteless
and 33% consumer disliked Virgin orange because it was also tasteless and the rest
17%consumer did not like Mirinda for the same reason.
In the taste category, 6% consumers disliked Mirinda because it had no taste,
81%disliked RC orange and 13% disliked Virgin orange for the same reason.

15
Promotion Channel

Display of Crates and Bottles: The retailers informed that arranged the display of the bottles
and crates themselves, according to the size of their shop. Company people never forced them to
adopt any particular style of display unless the retailers were said to do so.

Signboards: 36% of the retailers informed that they had paid for the signboards themselves.
Among the rest64% signboards, 28% signboards were found of Coke, 16% Pepsi, 9% R C, 7%
Virgin and 4%of each for Sun crest and PRAN signboards were found. The retailers informed
that the beverage Companies paid for the cost of their signboards in the particular shop or
confectionery. The retailers gave the signboards measurement to the beverage producers and they
had then made for the retailers, as signboards is a very useful media of advertisement for the
beverage companies.

Company Wise Cooler Position & Deposit System: The retailers informed that 45% of them
had their own refrigerator. 22% Coke cooler was found and 16% Pepsi, 9% RC, 5% virgin and
3% Sun crest cooling system were found. PRAN had no cooler in retailers market. The retailers
informed the following things about the payment system of beverage cooler-Retailers had to
deposit TK. 5000 for the refrigerator of Coke. They paid 2000-6000 TK. for Pepsi cooler. Virgin
keeps 2000tk for the cooler. The retailers deposited TK 6000 for there frigerator of RC.
However, in some special cases RC did not take the deposit amount from the retailers, as
company cooler was an important and useful advertisement for RC beverage. The retailers also
informed that no company was interested to keep other companies soft drinks in their brand
refrigerator. It was observed that the retailers kept all companies soft drinks together in a brand
refrigerator whether it was of Cokes, Pepsis or RCs.

Competitive Situation of Beverage Products: In the beverage industries, every company for
trading emphasized on the retailers. Companies think retailers are key factor for moving or
reaching their product to the ultimate consumers.

Reasons for Giving Priority of Retailers

Retailers give priority to brand companies based on some factors. The factors are describe as
follow-

Public Demand:
The retailers give preference to public demand, because their profit mainly depends on consumer
choice. Retailers sell that brand is soft drinks more, which the consumers like most. Based on
public demand they keep more bottles of Coke and Pepsi. The retailers keep Cloudy lemon more
than other product of R C cola.

16
Discount:
In this case, the retailers consider all the beverage companies in the same way, as no company
offers the retailers any kind of discount. All the companies take the particular amount of bottle
and crate deposit money in time.

Free Bottles:
The retailers always give priority to free bottles that they receive from the company. When the
retailers manage to sell a particular number of bottles, every company gives them some free
bottles for their encouragement, so that they give more preference in selling the products of the
specific brand.

Gift Items:
The retailers always give priority to those brands who give them gift items like opener, T-shirts,
glass, wall clock etc. the company, which gives the retailers gift items were more preferred by
them, and they like to keep more bottles of that brand.

Promotional Activities

It has two parts. Both parts are described below:

Promotional Activities for Traders

The beverage companies are offering several promotional activities. They are described as
follows:

Opener: Coke, Pepsi, RC, and Virgin companies offer this promotional activity to the traders for
the goodwill of their company. Actually they keep this offer all year long. T-shirt: All the
beverage companies offer this promotional activity to the traders. T-shirt is also a good
advertising media.

Free Bottles/ Discount of money: These two promotional activities have very close relationship
with each other. The beverage companies always give free bottles in lieu of discount of money.
Coke, Pepsi, RC, Virgin, and PRAN all the beverage companies maintain this promotional
activities.

Glass: Coke and Pepsi first started this promotional activity, but recently Virgin using this
technique very effectively. This is a very costly promotional activity.

17
Promotional Activities for Consumer

The beverage companies offer several types of program for the promotional activities of
consumers.

Linear Program: Coke and Pepsi companies offered this program long ago. It got huge public
popularity. The linear program was like this-after buying a bottle of Coke or Pepsi the consumer
had to collect the linear and open it. There were something printed inside of the linear. There
could be some figure of money, some gift item like opener, glass etc. Only the lucky person got
that linear. They give the linear to the nearest retailer shop. Coke offered a car and Pepsi
company gave Motorcycle in that linear based program. Now a day, there is no practice of this
kind of program by the beverage companies.

Glass Program: Coke Company introduced this program. The rule of this program was if a
consumer drink 5/6 bottles of he or she would receive a glass from Coke Company through the
retailer. This program is frequently use for both consumers and retailers.

Other Program:

There are some other types of incentives given by different beverage companies. They are given
as bellow:

Buy one liter Coke and get a Frisbee.

Pepsi gives different food item with their liter bottle. They also give Cricket bat, ball, pad
etc.

RC cola gives a five-taka discount with every one-liter bottle.

Competitive Situation

This part is the most vital part of this report. The retailers in this study sold the following
percentage of Coke, Pepsi, Virgin, R C, sun-crest and PRAN beverage product per day.

They sold 40.56%Coke (250ml), 34.26%Pepsi, 10.98%RC, 6.59%Virgin, 6%PRAN

and1.61%Sun-crest per day. The ratio shows that Coke has strong market share of 40.56% and
sun-crest has the lowest market share of 1.61%. The liter bottle crates sold per day by the
retailers were the followings- 45% Pepsi, 35% Coke, 9%RC, 9%Virgin and 2% Sun-crest. Here

18
Pepsi hold the strong market share of 45% and Sun-crest has lowest market share of 2%. PRAN
has no liter beverage item in the market so they do not have any market share.

With regard to bottle output / day, only Coke and RC companies revealed the information. The
bottle output /day of Coke was 4500 crates of 250ml bottle and 4500 crates of 1000ml bottle.
The sum of their bottle output per day was 9000 crates. On the other hand, R C outputs
6000crates per day, 3000 crates of 300 ml bottles and 3000 crates of 1000 ml bottles.

MARKET SHARE IN THE BEVERAGE MARKET

Quality Problem Encountered by Beverage Product: This is a confidential mater for Beverage
Company. Only one problem is possible to know from the beverage companies. The rotten things
of the soft drinks. Companies pollute the environment of the beverage companies. As because the
beverage companies always face the cleaning problem. The beverage companies should try their
level best to get rid of this problem. This problem affects the quality of their beverage products.

Media Wise Advertisement Ratio of Beverage Products in Dhaka City

This was the most vital part of my intern-ship work to gather the information about the
advertisement budget and its ratio. However, it very sensitive information for all beverage
companies, so they gave me the approximate data about the advertisement and its ratio. There are
different media is used for the advertisement. Those are press, outdoor, T V and different events.

Some companies emphasize on TV media and some focused on the sports events. The companies
most frequently use this two medium. As my topic is to study the Causes of low market demand
of RC cola and measures to change this situation. Therefore, I have collected the information of
the companies, which is actually Dhaka reason based.

Only the TV and newspaper advertisement ratio of Coke, Pepsi, RC, Virgin and Sun crest
companies had possible to gather. The TV advertisement ratio of Pepsi, Coke, RC, Virgin and
suncrest was available for month of February and March. In the above three months Pepsi
spent47, 88,500 TK, Coke spent 5, 00,000 TK, Virgin spent 18, 58,000 TK, RC and Sun crest
spent near about 23, 00,000 TK for this two month. This is the highest budget of the history of
Suncrest for the TV advertisement. The reason behind this was recently they had launched a new
pack size in the market. This is totally a concept for the Bangladesh beverage market. The
newspaper advertisement ratio of Pepsi, RC, Sun crest and Virgin was available for the month of
January to March. As I mentioned earlier that Coke Company is divided in to two-production
operation in Bangladesh. The government owned part had not spent a lot for the advertisement in
the recent year 2002.

On the other hand Pepsi as usually spends more than 2, 00,000 TK per month for the newspaper
advertisement. Pepsi gives 19 ads in different newspaper and spent 19, 00,000 TK. in the month
of February they spent most because of Eid-ul-Azha.

19
Virgin spent 05, 55,000 TK for the month of March and February. In these two months, they
spent a lot for the business promotion. In the month of February, it was winter, when beverage
Product becomes a bit slow. In the month of March, they tried to promote, the Cheers, which are
Mango flavored. They offered one glass with every three cans of the Cheers.

Recently Sun crest spent more than 15, 00,000 TK in different newspapers. In the month of
March, they had launched 250 ml PET bottle. For introduction of the new product, they spent the
special amount of money.

RC spent only 75,600 TK, their amount is very low compare to others. They spent more on T V
adds. Although they spent less for the newspaper but their advertisement is not few in this media.
They gave the sponsorship for the laser light show, which was first time in Bangladesh. So RC
get the advertisement advantage from this laser show adds.

Most Preferred TV Channel for the Advertisement

In Bangladesh, we have four private and national TV channels. Only one of them is government
owned. TV advertisement is a very powerful communication medium between companies and
retailers and mostly with the consumers. According to the retailers, ETV is most preferred
medium for them. 66% liked ETV, 25% BTV, 6% liked Channel I and others liked ATN Bangla.

Comparison with Fruit Drinks

There were no competitions of fruit drinks with the beverage products in last few years back.
Recently the scenario is little different, because peoples are more aware about the soft drinks,
they are aware about the health. To cope up this problem beverage companies had started to
increase the fruit flavored drinks more. Like Mango, Orange and lichi. For this reason, it could
be said that there was no competition between fruit drinks and soft drinks. The children mainly
liked fruit drinks.

Quality

RC Cola has a unique crisp and clean taste and it is consistent with its flavor no
matter where you buy it. It has a refreshingly great taste even if it is not so cold .
Everything is tested from water samples to ingredients in order to achieve the Quality
of our Product.

Depth

The variants that will be offered by RC Cola in terms of size and quantity:

20
 175 ml Mini Bottle
250 ml Regular Bottle
500 ml Bottle
1000 ml Regular Liter Bottle
1500 ml Disposable Bottle
2500 ml Jumbo Bottle

Price and Customer cost:

Price depends on its quantity. It is expected to all because the price will be reasonable and
affordable. We will get it within 10-50 taka. Though the cost to market the product in the rural
area is bit high, the price is same both to the urban and rural area. Pricing decisions are
influenced by now responsive a target market is high or low price, the physiological created
by prices and the actions of competitors.

Following factors we will consider while determining the pricing strategy of RC Cola:

Price will be set according to the product demand of public.

Price will be that which gives the company maximum revenue or as much as possible.
Price will not be too low or too high than the price competitor is charging from
their customers otherwise nobody will buy our product.
Price will be set by the view of our target market.

Special Offers

RC Cola will give special offers to consumers on special occasions like Ramadan and Eid days,
Puja and also in Christmas instead of decreasing the price of the products, some special packs
like Pakkora Mix, Chat Massala or Free Drinks with Liter Bottles will be offered.

Prices of Different Bottles:

175 ml Mini Bottle = 10 BDT

250 ml Regular Bottle = 15 BDT
500 ml Bottle = 20 BDT
1000 ml Regular Liter Bottle = 30 BDT
1500 ml Disposable Bottle = 40 BDT
2500 ml Jumbo Bottle= 50 BDT
Place & Convenience:

21
We will get RC Cola in all over the country. We will get it from general stores to departmental
stores. So, it will be very easy to get RC. Even it will not be very hard for the rural area people to
get this soft drink.

Figure: Product supply process.

There are various channels through which RC Cola distributes its output.

CURRENT MARKET SCENARIO OF BEVERAGEPRODUCTS IN DHAKA CITY

In my project I can analyze my problem by using marketing channel. We know there are four channels in marketing.
These are as follow:

Distribution channel

Price channel

Product channel

Promotion channel

Distribution channel

Distribution System: The retailers informed that every company follows the same distribution channel process for
soft drinks distribution. The distribution channel followed by the beverage companies is:

Company--------------- Distributors---------------- Retailers ---------------- Consumer

We will also use push strategy for our product by using various promotional tactics and
through media. Distribution will be divided in zonal basis, which will be 7 in number.

22
 We will directly approach retailer by providing credit facility and bonus in form
of incentives.
We will also provide trade allowances to our distributors and retailer to further intensify
Usage of push strategy.

Placement of Our Product at major super stores in Dhaka City:

Market Location

Agora 80, Rifle Square,Road-2,Dhanmondi

Almas General Stores Road # 5 Dhanmond i, Mirpur Road

Meena Bazar 719/A , Satmasjid Road , Dhanmondi

Pick & Pay Super Market A.R. Tower, 24, Kemel Ataturk Avenue Banai

Selling System of Beverage Products

The total sample size of retailers informed that they received the soft drinks bottle from the beverage companies van.
e.g. Coca-Cola company serves Coke, Fanta, Sprite and R C company serves R C lemon, R C cola etc. but most of
the retailers could not inform whether they received the drinks bottle from the distributors or directly through from
the company people, because they were not interested about the matter.

Price Channel

23
Price Margin: For Coke, the distributors make profit of 14 TK crate and 0.58 TK bottle. The retailers make profit of
50 TK crate and 2.08TK bottle. The distributors make profit of 15 TK crate and 0.63 TK. bottle. The retailers make
the same profit like Coke of 50 TK crate and 2.08TK bottle. Here Pepsi distributors gain 0.05 TK bottle and 1.2 TK
crate more than the distributors of Coke. (Table-3.1.2) R C and Virgin offer more profit advantage to distributors and
retailers. The distributors make profit of 16 TK crate and 0.67 TK bottle, which is more than Pepsi by 0.04 TK bottle
(0.96) and more than 0.08 TK bottle (1.92 TK crate). The retailers make profit of 54 TK crate and 2.25 TK .bottle,
which is bigger than Coke and Pepsi (4 TK bottle and 0.17 TK crate). The R C retailers gain here the highest. For
Suncrest, the distributors make the highest profit of 17 TK crate (.07TK bottle). The retailers make profit of 52 TK
crate and 2.16 TK bottle which is lower that the retailers of R C and Virgin gain. Therefore, all the price margin of
PRAN is same as Pepsi.

For coke, the distributors make profit of 14tk create and 0.58 TK bottle. The retailers make profit of 50TK create and
2.08TKnbottle. The distributors make profit 15TK create 0.63TK bottle. The retailers make the profit like Coke of
50TK create and 2.08 TK bottle. Here Pepsi distributors gain 0,05TK bottle and 1.2TK create more than the
distributors of coke. (Table-3.3.3) RC and virgin offer more profit advantage to distributors and retailers. The
distributors make profit of 16 TK create and 0.67TK bottle, which is more than pepsi by 0.04TK. bottle, (0.69) and
more than 0.08TK bottle (1.92TK create ), The retailers make profit of 54TK create and 2.25TK bottle, which is
bigger than coke and Pepsi(4TK bottle and 0.17TK crate). The RC retailer gain here the highest. For suncrest, the
distributors make the highest profit of 17TK crate (0.7TK bottle). The retailers make profit of 52TK create and
2.16TK bottle which is lower that the retailers of RC and virgin gain. Therefore, all the price margin of PRAN is
same as Pepsi.

Deposit against Crates & Bottle

For Coca-Cola, the retailers pay 30 TK crate (350ml) and 150 TK crate (1000ml). The deposit
against bottles is 120 TK.crate. It means each bottle deposit is 5 TK. (5*24=120). The retailer
shaves to pay 240 TK. Deposit money for 1000ml crate. Each crate contains 12 bottles and the
calculation stands like this for per crate-12*20=240 TK. bottle for 1000ml drinks of Coke. For
Pepsi, the deposit of 250 ml and 1000 ml bottle remain the same like Coke. As the Sun crest and
PRAN has only 250 ml bottles, their deposit also remain the same like Coke. On the other hand,
virgin has no 250 ml bottles; they do produce any kind of bottle beverage. So their deposit
system for 1000ml is like RC cola. RC beverage offers incentive for the retailers. R C offers 300
ml bottle in 120 TK bottle and Coke and Pepsi charges the same amount but they give the
retailers 250 ml bottle. RCs crate deposit remains same like Coke and Pepsi. RC 1000 ml crate
has two varieties. One of them contains 6 bottles of 1000ml and another one contains 12 bottle of
1000 ml. the retailers pay deposit of only 50 tk. for the 6 bottles container and 100 TK for the 12
bottle container. For RC, retailers have to deposit 140 TK. less/ crate.

Credit Facilities

24
The retailers informed that none of the beverage producers offer them any credit facility. It
means the beverage companies never proposed credit facilities to them.

Cost of Damaged Bottles

65 % of the retailers informed that they did not have to pay money for the broken or damaged
bottle as they had already bought the bottles from the companies. 35% of them informed they
paid five TK. For each broken or burst bottles. The consumers have to pay the same amount of
money for each broken or damaged bottle, when they cause the damage

Product Channel

Sales Profile & Some Important Information about Different Companies-

Coke: Coke has two different operations in Bangladesh. One part controlled by Mukti juddah
Kollan Trust, and another one is controlling by Tabani beverage. Government owns Mukti
juddah Kollan trust and Tabani beverage is private. Mukti juddah Kollan Trust covers the Dhaka
and Rajshahi region. On the other hand, Tabani covers other part of Bangladesh. The yearly sale
of Coca-Cola in Bangladesh is 98, 00,000 crates. They have Cola, Orange, Lemon, Mango and
Diet flavors in the beverage market. Coke has 250ml glass bottle, can and fountain glass. In
family size packing, they have one liter. 1.5-liter glass bottle. They do not have two-liter bottle.
They also have not P E T bottle production in Bangladesh. Coke has 90distributors in Dhaka and
Rajshahi district. Their sales force is consist of 80 peoples.

Pepsi: The yearly sale of the Pepsi Company is 60, 00, 000 crates. As like Coke, they have Cola,
Orange, Lemon, Lime, Mango, and Diet and very recently, they introduced Apple flavor in
Bangladeshi beverage market. They are enriched in different pack size too. They 250ml glass,
can and fountain glass. In the family size, they have 1, 1.5 and 2-liter glass and PET bottle they
have also 500ml pet bottle. To cover the whole country they have more than 400 distributors.
Their sales force contains 100 people.

Virgin: The yearly sales of Virgin 2 million crates. Last year they sold 84%Cola, 7%Orange, 5%
Lemon and 4%Diet. Virgin first come up with the can system within a reasonable price. They do
not have any kind of glass bottle. They have 250ml can and 500ml pet bottle. They also have 1.5
liter and 2-liter PET bottle. Virgin has 100 distributors and number of sales force is 40.

RC cola: The yearly sale of RC cola is 3.5 million crates. Their most popular flavor is Cloudy
Lemon. Like Pepsi, they have verity in flavors and pack size. They have 60 distributors and
55sales people.

Brand Preference

25
The consumers informed the following things about the brand preference of the beverage
products-

Consumers like Cokes 250 ml and 1000ml bottles both. The same result goes in favor of Pepsi.
Consumers also like the Cloudy lemon of R C cola and the new can system of Virgin, which had
launched by global beverage. Consumers like R Cs 300ml bottle more than their 1000ml bottle
and Sun-crests mega bottle more than 250 ml bottle. As PRAN has no brand variety, so
consumer has no choice there in case of PRAN.

Consumer Group Survey

The consumer group was divided into four categories. They were:

--Children

--Teenagers

--Youth

People over 35 years All the above four categories were the consumer of coke and Pepsi
simultaneously. RC and PRAN were like by the three categories of consumers except children.
On the other hand the first three groups of consumers except people over 35 years liked sun
crest.

Objectives

The objectives of the consumer survey were to know the following things.

a) Most preferred brand consumed by the consumer

b) Most preferred type of flavor

c) Influential factors

d) Package size

e) Segmentation of the consumer

f) Consumer liking

g) Consumer disliking
Most Preferred Brand Consumed by the Consumer

26
Out of the total sample size, 62.13% consumers like Coke, 17.26% Pepsi, 9.11% RC,
6.75%Virgin and others 4.75%. According to the result of the survey, we find that most of the
consumer in the Dhaka city liked Coke and the ratio is 62.13%.

Most Prefer Type of Flavor

The consumers informed the following above the most prefer type of soft drinks: 51% consumer
indicated that they liked the Cola flavor most. 18% of them like the Orange flavor, 20% liked
Lemon, 4% liked Diet, 4% Mango and others 3% liked Lime. Actually, children and women
liked Orange and Mango flavor most. Diet liked by health conscious people.

Influential Factors

The influential factors are taste, brand, advertisement, friends influence and one of the vital
factor availability. The result had shown that 67% taste, 13% brand, 10% advertisement, 7%
friends influence and 3% availability influence the consumers to buy or have the beverage
product.

Pack Preference

The consumer indicated the following things about their pack preference of soft drinks: 23% of
the consumer liked the fountain drinks, 27% liked 300ml bottle, 23% liked 250ml can, 19%
liked1000 and 1500ml PET bottle and only 8% liked 1000ml glass bottle. Consumers do not like
the1000ml glass bottle because of hazard of deposit system of bottle from the consumer.

Segmentation of the Consumer

I have divided the consumers according to the age. The segments are children, teen age, youth,
people over 35 years. The aim was to find out which segment like most the beverage product.
The result indicate that 12% children, teen agars 49%, youth25%, people over 35 years
14%consumed or have beverage product. Therefore, the result indicates that tee agars are the
main segment of the consumers.

Sources of Information

The consumers reported the following about the sources of information 36% of them got the
information about soft drinks from TV, 32% got the information from the print media, 18% from
the Radio, 12% from the outdoor (billboard) and only 2% from the word of mouth
communication.

Promotion & Communication:

27
Advertising is the main way of promoting new flavor and new design product. Before launching
our product, our company will give pre-announcement and ads to the electronic media and print
media and TV-commercials to create concentration of the people. When the new product will be
launched, the company will give discount in product. We will offer several types of free gift with
the newly launched product. Promotional strategy is the second element of the marketing mix. It
involves the correct blending of advertising, publicity to create the promotional mix.

Following are the strategies:

Comparative Parity Method: RC Cola ads will be telecasted with the competition in Coca Cola
and Pepsi which are its direct competitors.

Seasonal advertisement: Frequency of the RC Cola ads will vary from time to time. When the
season will be on, we will do heavy advertisement especially in Ramadan days or Eid
occasions but this frequent advertisement will not remain consist. After that we will use low
frequent ad to the TV-commercial and our promotional strategy will not be stopped until we get
huge response from our target market.

Sampling Program:

A successful sampling program can be our most effective means of increasing

consumer awareness, trial, and actual product purchases in Bangladesh. Here we will choose a
sample target market and then provide our product with huge discount that will be our minimal
profit. Doing this we will justify that how much they appreciate us and like our product.

Merchandising:

Royal Crown Cola will train its bottlers in merchandising functions that will ensure
visually appealing beverage shelves, coolers, and vending machines.
They will work in assisting hand in hand to develop pricing, product rotation, back
stock control, display building, and proper P.O.S. procedures.
With proper shelf management, the customer will soon recognize the quality and value
inherent in the Royal Crown Cola brands in Bangladesh.

Sales Support:

28
 Royal Crown Cola has developed intensive sales training programs. They provide
complete, in-depth training materials for both beginner and experienced sales people.
To ensure their staff conveys the image of marketing a global brand, we will also provide
assistance in developing a dress code and uniforms for their staff members.
Theyll help them to extend that image to the trucks, vans, and automobiles they drive.
These "rolling billboards" are a roving reminder to the consumer of the Royal Crown
Cola brand identity.
Through their Fleet Graphics program, Royal Crown Cola will help them develop
proper fleet identification logos which will enhance the brand value in our marketplace.

ADVERTISING STRATEGY:

Newspaper
Radio
T.V. Commercials
Bill Boards

SPECIAL POINTS:

Other than these some special points are also being looked after by direct sales vehicles such
hotels restaurants, public parks, big and reputed super stores etc.

OBJECTIVES OF THE PROJECT

29
The broad objectives of the project were:
To find out causes of low market demand of RC cola.

It also attempts to study the measures to change this situation.

Specific Objectives:

To reshuffle existing marketing policy and activities.

To modify the existing market areas and selecting new segments.
To explore new target markets and customers, market opportunities, threats and handle
them successfully to enrich market share.
To increase product awareness as well as sales by persuasive promotion based strategies.
Maintain a constant growth rate.

This project also attempts to suggest the management about the ways to increase the
customer satisfaction by improving the products quality and thereby strengthen the
companys position in the drinks market.

MARKETING MIX

30
Product and Customer solution
RC cola is a soft drink. We get it as a bottled drink. We get it in different size, quantity and taste.
It contains calories, carbohydrate and sugar. There is no fat, protein and sodium. But diet cola
has no sugar. We get it in different colors and flavors. It has no harmful element. It is a refreshing
drink for all classes of people. RC is a product that consists of the basic physical offering and an
accompanying set of images and services features that seek to satisfy needs. RC Cola is also that
type product.

Price and Customer cost

Price depends on its quantity. It is expected to all because the price is reasonable. We get it
within 15-50 taka. Though the cost to market the product in the rural area is bit high, the price is
same both to the urban and rural area. Pricing decisions are influenced by now responsive a
target market is high or low price, the physiological created by prices and the actions of
competitors.

Promotion and Communication

Advertising is the main way of promoting new flavor and new design product. When the product
is launched the company gives ads to the electronic media and paper media to create
concentration of the people. When the new product is launched the company gives discount in
product. They offer several types of free gift with the newly launched product. Promotional
strategy is the second element of the marketing mix. It involves the correct blending of
advertising, publicity to create the promotional mix.

Place and convenience

We get RC Cola in all over the country. We can get it from general stores to departmental stores.
So, it is very easy to get RC. Even it is not very hard for the rural area people to get this soft
drink.

RESEARCH METHODOLOGY

31
Marketing Research
Marketing research is the systematic design, collection, analysis and reporting of data and
findings relevant to a specific marketing situation facing the company. Market research is a
research carried out in a particular market. The study is done with a set objective may be for the
reason to analyze consumer for the introduction of new product, study of distribution channels or
for that reason, any problem in the field of marketing. The market research is complete only
when proper analysis is carried out with the help of relevant information and the solutions
fulfilling the objectives is identified.

Important steps in market research are as follows:

1. Define the problem and research objectives.

2. Developing the research plan.

a. Data source-primary and secondary data.

b. Research approach

1. Observation

2. Focus group

3. Survey

4. Experiments

c. Sampling plan

Sampling units

Sample size

Sampling procedure

d. Research Instruments

32
 *Questionnaire

* Interview

e. Contact methods

1. Telephone Interview

2. Personal Interview

f. Collect the information

g. Analyze the information

h. Present the findings

Research Approaches:
There are five ways through which primary data can be collected .They are as follows:

1. Observation Research

2. Focus Group Research

3. Survey Research

4. Behavioral Data

5. Experimental Research

Out of these five methods, the survey research is selected as our research requirement descriptive
report.

Research Instruments
33
Out of the various instruments available for research, questionnaires are most frequently used.

A questionnaire consists of set of questions presented to respondents. Because of its flexibility,

the questionnaire is by far the most common instruments used to collect primary data.
Questionnaire need to be carefully developed, tested and debugged before they are administered
on a large scale.

The questionnaires are designed by considering the conveniences of the respondents. Mostly the
objective types of question are planned.

Contact Methods
There are various ways of contacting such as Mail, Telephone, Personal or Online. Personal
contact method has been selected as it is descriptive type of research.

Sample Plan
A sample design has a definite plan for obtaining a sample from a given population. It refers to
the technique or the procedure the researcher would adopt

in selecting items for the sample.

The sample design method used in this research is Non-Probability sampling. Non-Probability
sampling is done when one does not have a list of respondents to randomly select from, as in
probability sampling.

The method of non-probability sampling used here is Convenience sampling. Convenience

sampling is generic term that covers a wide variety of ad hoc procedures for selecting
respondents. Convenience sampling means that the sampling units are accessible, convenient and
easy to measure, co-operative and articulate.

Data Collection
While deciding about the method of data collection to be used for the study researcher should
keep two things in mind viz- Primary and Secondary.

The Primary data are those which are collected afresh for the first time. It happens to be original
in character. The secondary data on the other hand, are those which have already been passed
through the statistical process.

34
In the current research work done the data collected was primary in character. As this was a
descriptive type of research, primary data was the only source of information. The data needed
too was first hand .The data was collected from various Dealer, Retailer and Consumer in
Dhaka city.

DATA ANALYSIS & FINDING

35
Market Share:

Coke Pepsi RC Others Total

46% 24% 12% 18% 100%

Fig: Graphical representation of market share

Upon meeting a total of 100 respondents, it was found that 46% prefer Coke Followed by Pepsi
with 24%, RC cola with 12% and others with18%.

Reasons for being market leader (Coke):

36
 Quality Brand Image Availability More Profit Total

48% 26% 14% 12% 100%

Fig: Graphical representation reasons for being market leader (Coke)

Upon meeting a total of 100 respondents, it was found that 48% told about Quality, followed by
Brand Image with 26%, Availability with 14% and Marketing More profit 12%.

Awareness of General Customers about RC cola:

37
 Awareness Status Number of Respondents

Yes 42%

No 58%

Total 100%

Fig: Graphical representation of awareness of general customers about RC cola

Without having enough advertisements in various Medias upon meeting a total number of 100
general customers, it was found that 58% are not aware of RC cola and remaining 42% are aware
of it.

Awareness of Retailer about RC cola:

38
 Awareness Status Number of Respondents

Yes 65%

No 35%

Total 100%

Fig: Graphical representation of awareness of retailer about RC cola

Without having enough advertisements in various Medias upon meeting a total number of
100 retailers, it was found that 65% are aware of RC cola and remaining 35% are not aware
of it.

Awareness of RC cola through different Medias:

39
Friends & Relatives TV ad. Company officials Owners of Total
outlets

44% 24% 18% 14% 100%

Fig: Graphical representation awareness of RC cola through different Medias

Respondents became aware of RC cola through various Medias.44% through Friends and
Relatives, 24% through TV advertisement, 18% through Company officials and 14% through
Owners of outlets.

Preferences on the basis of the following points for:

40
 Quality Brand Image Recommendation Low Price Others Total

35% 20% 22% 15% 8% 100%

Fig: Graphical representation of Preferences

Preferences upon meeting 100 respondents, 35% decided drinks for Quality, 22% for
Recommendation, 20% for Brand Image, 15% for Low Price and remaining 8% for other
reasons.

Factors considered before purchasing any particular brand (General

Customers):

41
 Quality Brand Image Price Preferable Others Total
Flavor

30% 20% 15% 25% 10% 100%

Fig: Graphical representation of factors considered before purchasing any particular brand
(General Customers)

Customers consider before purchasing any brand, upon meeting 100 respondents, 30% told about
Quality, 20% about Brand Image, 15% about Price, 25% about Preferable Flavor, and Remaining
10% for other reasons.

Factors considered before lifting any particular brand (Retailer):

Credit Customer Commissions Better Others Total

42
 Facility Demand Service

25% 30% 27% 15% 3% 100%

Fig: Graphical representation of Factors considered before lifting any particular brand (Retailer)

Upon meeting 100 Dealers about factors considered before3 lifting any particular brand, 30%
told about Customer Demand, 25% about Credit Facility, 27% about Commission, 15% about
Better Service and 3% about others.

Brands suggested by Customers:

Coke Pepsi RC cola Others Total

43
 42% 30% 18% 10% 100%

Fig: Graphical representation of brands suggested by Customers

Upon meeting 100 Customer about brand suggested by them, 42% told about
Coke, 30% about Pepsi, 18% about RC cola and remaining 10% about other brand.

Customer emphasizes most on attributes of drinks:

Quality Lower price Flavor Gift Others Total

39% 23% 18% 12% 8% 100%

44
 Fig: Graphical representation of customer emphasizes most on attributes of drinks

Asking 100 Customers about on which attributes of drinks emphasize most, 39% told about
Quality, 23% about Lower price, 18% about Flavor, 12% about Gift and remaining 8% about
others.

Reasons for pushing a particular brand (By Retailer):

Credit Facility More Profit Customer Better Others Total

Demand Service

45
 33% 27% 25% 10% 5% 100%

Fig: Graphical representation of Reasons for pushing a particular brand (By Retailer)

Upon meeting 100 Dealers about reasons for pushing a Brand, 33% told about Credit Facility,
27% about More Profit, 25% about Customer Demand, 10% about Better Service and remaining
5% about others.

Customers are convinced to select a brand by:

Friends & Retailer Ad. Influence Others Total

Relatives

46
 40% 28% 22% 10% 100%

Fig: Graphical representation of Customers are convinced to select a brand these source

Asking 100 respondents about selection a brand of customer, 40% about Friends and Relative,
28% told about Retailers, 22% about Advertisement Influence and remaining 10% about others.

People opinion about quality of RC cola:

Very excellent Excellent Good Moderate Bad Total

10% 16% 27% 39% 8% 100

47
 Fig: Graphical representation of people opinion about quality of RC cola

Asking 100 respondents about the quality of RC cola, 10% told about Very excellent quality, 16%
about Excellent Quality, 27% about Good Quality, 39% about Moderate Quality and remaining 8%
about Bad Quality.

Public suggestion about RC cola for increasing its market demand:

Advertisement Quality Up Decreasing Offering Packaging Dealers Total

gradation price Gifts & network
Incentives

48
 8% 48% 18% 12% 12% 2% 100
%

Fig: Graphical representation of Public suggestion about RC cola for increasing its market
demand

Upon meeting 100 respondents about the policy of increasing the market demand of RC cola, 8%
told about TV Ad., 48% about Quality Up gradation, 15% about Dealers Meet, 12% about
Offering Gifts and Incentives,12% about Packaging and remaining 2% about Dealers network.

SUGGESTIONS & RECOMMENDATION

Suggestions

49
In Dhaka and other districts of Bangladesh, there is an increase in whole selling businesses,
retailer shop, restaurant and others vast potential consumers of drinks items as well as a great
scope of export of quality drinks items in world market which creates a great market for drinks.
But the RC cola is still in its infancy stage, which gives it a great scope for expansion, if proper
advertisement, promotion and awareness are created. Here my suggestions are provided for
increasing market demand. These are given as below:

PRODUCTS QUALITY UP-GRADATION:

As we know any product is sold on its quality in this competitive market. It was found in my
survey that dealer, retailers and customers comments were about RC colas quality is moderate.
But moderate quality is not satisfactory in this competitive drinks market. So this is high time to
take proper initiative about quality up-gradation of RC cola by top management of the company.

REASONABLE PRICE:

After taking care of products up-gradation, company should take care of its price structure for
obtaining good market response. The price should be little bit low and reasonable than market
leader Coke and Pepsi which can help to attract more and more customers.

ATTRACTIVE DISCOUNT STRUCTURE:

Since Dealers play an important role in Drinks market and they are generally influenced on
attractive discount structure, so companys discount structure should be that much attractive to
Dealers. On the other hand Whole seller, Retailer and consumer naturally look for good discount
structure.

WELL STRUCTURED TRANSPORTATION FACILITIES:

Without having well structured transportation facility, no companies can provide its highest
service to dealers, retailers and customers as well as internal transportation services like raw

50
materials carrying, storing finished products, and supplying the product to marketing and sales
offices quickly and timely. So there should be various transportation facilities like roadways,
waterways, and airways whenever it is required.

SKILLED MANPOWER:

For achieving organizational goal within budgeted time, there are no alternatives but skilled
human resources. So company should be careful about it. Company should appoint qualified and
experienced manpower and they should be properly trained up.

The marketing executives should have enough knowledge about drinks and they should have that
much ability to handle different types of Customers, Dealers, and Retailers effectively with well
manner.

DEALERS NETWORK:

As there is a vast scope drinks cola all over the country as well as abroad, so company should
concentrate on increasing dealers network as much as possible in all the districts and thanes of
Bangladesh and expand its business in various countries by exporting drinks by foreign dealers
or exporters.

PROPER ADVERTISEMENTS:

Proper advertisements help any product to be created a brand. Though Partex group has a great
brand image, but RC cola has no advertisement. Thats why most of the general customers are
not aware of RC cola. Proper advertisements should be given on T.V, Newspapers, Magazines,
and Shop Signboard mentioning all the features of the products for increasing awareness of RC
cola.

REGULAR DEALERS MEET:

Companys marketing executives should be regularly sent to dealers and meet for fulfillment of
requirement of dealers timely. They should always keep in tough for timely orders and deliveries.

51
CREDIT FACILITY AT INITIAL STAGE:

As presently companys drinks market demand is low and most of the Dealers expectation from
company side is credit facility and they are attracted and influenced by it, so company should
provide more credit facility at initial stage to tie up with dealers as much as possible within short
time all over the country.

AFTER SALES SERVICES:

Todays customers are so much conscious. They demand from company after sales services
when they purchase any particular brand. So company should provide these types of services
whenever it is asked by customers.

TECHNICAL SERVICES:

Now a days customers want technical services from company. So company should have that
much skilled technician to support the customers effectively whenever it is asked by them.

LOW DISTANCE FROM FACTORY TO MARKETING OFFICE:

It was observed that there is a long distance between production factory and marketing & sales
office. Thats why marketing and sales office doesnt get the required amount of products timely.
So company can establish a new plant or factory nearby Dhaka marketing & sales office, or there
should be always sufficient stock at Dhaka office in store room and good communication
facilities with factory to reduce products receiving time from factory.

CHANNEL OF DISTRIBUTION:

Company should concentrate on its channel of distribution for supplying its product to each
corner of Bangladesh through various intermediaries like dealers, whole sellers and retailers.
Company should have proper plan for it and ensure their channel of distribution is effective to
deliver its products timely and quickly to each and every corner of Bangladesh.

52
QUICK AND TIMELY DELIVERY:

Todays world is so fast. So Company should ensure quick and timely delivery of its products to
any corner of Bangladesh whenever order is placed. It was found in my survey that presently
there are a lot of objections about late products delivery from dealers side.

MARKET SEGMENTATION:

It was observed that RC cola is running its business in small segment. So Company should
concentrate on new markets and increase its market segmentation covering all over the
Bangladesh.

MORE DISCOUNTS ON TARGET ACHIEVEMENT:

Company should tie up with big dealers all over the country and place them a target yearly or
monthly influencing by more discount or commission structure.

REWARD FOR MARKETING EXECUTIVES:

Marketing manager should fix a specific sales target to each marketing executives. For the
achievement of sales target they should be rewarded by promotion, salary increase and various
incentives and gifts.

OFFER FOR CUSTOMERS:

Company can now and then offer various gifts and scratch card against certain purchase of
customers which is so much effective in increasing the sales volume.

VARIOUS GIFTS FOR CUSTOMER:

Company should distribute various gifts like T- shirts, Watch, Cap, Umbrella, Calender, Poster or
personal contact for building a good relation with them permanently.

GIFTS AND VISIT TOURS OFFER FOR DEALERS:

53
For pushing sales and giving more concentration on our brand company should declare various
gifts and visit tour to dealers against certain sale which is so effective in increasing the total sales
volume and market share.

PRODUCT BONUS:

Company can give more products bonus on which products sale is less and less product bonus
on which sale is high depending on market situation.

ATTRACTIVE SALARY STRUCTURE AND OTHER BENEFITS FOR EMPLOYEES:

Employees job satisfaction can be obtained by attractive salary structure and other benefits
which is helpful to be devoted them into their daily works. So company should follow attractive
salary structure and other benefits to be devoted them in works according to their performance,
skill and qualification.

Recommendation

RC bottle is not attractive like Coke. This is a vital weapon to attract the mind of
consumers. Mineral water bottle of MUM could an example of this. R C should try to
change their design of bottle.

54
 RC introduce PET bottle for one and 1.5-liter bottle, this is a good sign. However,
retailers are still bothering with deposit system of glass bottle of 300ml. R C should make
plastic bottle for 300ml like Suncrest.

RCs marketing objective should be like these-

RC should be identified as a brand of quality and taste to the consumer.

Ensure wide distribution through strong aggressive sales force throughout the country.

To fight back market leaders like Coke and Pepsi and gradually acquire market share
from them.

RCs advertising objective should be like these-

To establish RC as a quality range of products with a different taste in the consumers

mind.

To make people aware of the RC brand name.

To bust up the sales.

RC should do the following things in outdoor for extensive visibility, advertisement and
reinforcement.

Billboards and hoarding

Shop planning

Plastic sign

Shop board

Light board

Van planning

Neon sign

RC should arrange-

Concerts

Fashion show

55
 Drinking competition

Sponsorship of youth/ sport related events

Discounted sales in different clubs

RC should try the fountain drinks, as fountain beverage is preferred in terms of both taste
and freshness.

In trams of media spending, Coke and Pepsi spend more than RC. RC can compete with
them by spending more money in media to strengthen the image of their brand and then
catch up with Coke and Pepsi.

For making TV ads RC can do the followings-

If budget permits, R C can go for shooting in Mumbai, where R C gets the best quality
production in this region.

If not Mumbai then Calcutta can explore for better production quality than Bangladesh.

Or else RC can shoot locally and go for postproduction in Mumbai or Calcutta, which
would bring down the cost of production.

To increase the sales of R Cs bottles they can offer the following trade promotions for
the retailers-

R C can offer one colored TV to the retailers who can sell the highest number of bottles
in a certain territory. They can announce the name of the person on a press release.

Mystery shopper: A team from RC can visit the shops and find out where the retailer
keeps more RC than others and at the same time try to push RC products. Then the team
can offer him some gifts, like T-shirts, caps, wristwatch etc.

If possible RC can offer four bottles free with one crate, which PRAN is still doing. This
secretes of PRAN although they do not offer quality product to the consumers.

RC can offer the following promotional activities to the consumers-

RC arranges different type of contest for the consumers. Some of them could be for the
short time and could be for a long while. The example of short one could be like, RC
team would visit different area and observe different shop and find out the best buyer

56
 from those area or territory. The best buyer could be recognized as a RC person. The
long-term strategy could be one type

Of U T C program, which means under the crown program? Consumers have to collect a
specific amount of unit to get a gift. Like T-shirts, travel bag, motor cycle, wrist watches
etc.

RC can offer the consumers a coupon with every 1.5-liter PET bottle. The consumers had
to fill up the coupon and submit it to the retailers. The coupon would be about the
information of RC. It would increase the brand loyalty of RC cola. To achieving that, R C
had to offer a big budget offer for the winner.

Kids are the one of the vital segment of the beverage product. R C can focus them. For
the kids RC can make small bottle of drinks. The pack size could be 2oo ml; the reason is
sometimes children cannot finish the 250 ml then their parents do not like to give then a
bottle. Most of the time the parent give them a juice pack. More over they can offer
stickers, chips, nuts etc with the small bottle.

CONCLUSION

The management approach differs from organization to organization. But all types of
organization apply mare or less some common function such as planning, marketing, HRM,

57
coordinating and production. RC Company Ltd. Successfully applies management function in its
operation. As a result, today RC company deserves top position in the market of soft drinks. Here
the study tried to find out customers satisfaction of RC cola and other beverage company. There
are some emerging beverages Company in Bangladesh which have already gained customers
loyalty in beverage products. The study compared RC cola with other emerging Cola brands such
as Coke, Pepsi and others. RC cola compared with these other cola on some factors. The finding
of the study is that RC cola has a lower marketing demand. From the research it can be definitely
surmised that the hypotheses were largely accurate. The results from the questionnaire survey
and the statistical analysis both support the theory that the consumer base of RC cola is
composed of customers who are more or less satisfied. However, RC cola does need some
modifications in its marketing tactics regarding attracting new customers and service offerings to
the older ones. RC cola should take the brand loyalty for granted and should take specific steps
to ensure that they can hold on to the lucrative customer base they have while focusing on a few
informational tactics to inform potential customers. RC cola is in insecure position right now
regarding customer satisfaction, loyalty, and the strategy they follow seems to be effective.

In conclusion, it is apparent that, in order to compete with Coke and Pepsi, survives in the
competitive market and continues to grow, RC needs to launch extensive marketing campaign.

LIMITATION OF THE STUDY

In preparing of the report the following problems has been faced by the researcher-

58
 One of the major limitations of the study was time & budget. The time allocation
financial expense for the study was inadequate. If more time were given the sample size
for the consumer and market survey could be increased some more and the report could
be made much more comprehensive.

Another major problem was the confidential matters of the beverage companies. The
researcher, while interviewing the officials of beverage companies could not collect
information considered as confidential to concerned companies.

Secondary sources of data relating to the beverage companies in Bangladesh are very
limited.

SCOPE

59
 The project study and survey limits to the Dhaka city in particular. The capital city Dhaka
of more than one core people as main commercial area of Bangladesh, a lots of worker
,executive and student to the growing number of employed people and businessmen,
which is quite a representation for the national canvas.

The project report primarily focuses on the dealer, retailer and consumer.

BIBLIOGRAPHY
Journals:
Claude A. Hatcher. (1905). ''RC cola is a soft drink''.

Anonymous. ( 2008). Current market scenario of Beverage Products in Dhaka City.

Assignment . (2011). Rc-Cola-Re-launch-In-Bangladesh''.

60
Cardozo, R.N, (1965), An experimental study of consumer effort, expectation and satisfaction,
Journal of Marketing Research, 2, 244-9.
Churchill, G.A, Surprenant, C (1982), An investigation into the determinants of customer
satisfaction, Journal of Marketing Research, XIX, 491-504.
Dabholkar, P. A., & Thorpe, D. 1. (1994), Does customer satisfaction predict shopper intentions,
Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 7(291),
Zeithaml, V.A., Berry, L.L, Parasuraman, A, (1993), The nature and determinants of customer
expectations of service, Journal of the Academy of Marketing Science, 21, 1-12.

Books:

Naresh K. Malhotra, (2011), Marketing Research , 6th Edition

Kotler. Philip, Armstrong. Gary, (2008), Principles of Marketing, 12th edition

Zikmund, William G. (2003), Business Research Methods, 7th Edition

Web Sites:

www.google.com
Wikipedia
Encyclopedia
www.partexgroup.com
www.scribd.com
www.ehow.com
www.partex.net
www.rccola.net
www.rccolainternational.com
www.energyfiend.com
www.rcbeverage.com
Questionnaires for Retailer

Name:

Occupation:...

61
Organization:..................................

1) What brand do you sell most?

a) RC cola b) Coke c) Pepsi

2) Why do you sell this brand most?

a) More Profit b) Gifts and other benefits c) Lower price

3) Who are your potential buyers?

a) Departmental store b) Restaurants c) Owners of small outlets

4) Do you pursue Customers to purchase a particular brand?

a) Always b) Occasionally c) Often d) Never

5) What brand do you push more?

a) RC cola b) Coke c) Pepsi

6) Why do you push this brand more?

a) More Profit b) Lower price c) Gifts and other benefits

7) Do you sell RC cola?

a) Yes b) No

62
8) If yes, what things pursue you more to sell RC cola?

a) Good relation with Sales officer b) More profit c) Gifts and incentives

9) If no, why?

a) Higher price b) Lower demand c) Lower profit d) Bad service

e) Lack of available place at your outlet to stock RC cola f) Late delivery

10) What is your view about quality of RC cola?

a) Very excellent b) Excellent c) Good d) Moderate e) Bad f) Very bad

11) How RC cola can increase its market demand?

a) Advertisement b) Upgrading Quality c) Decreasing price

d) Providing more gifts and incentives e) Packaging

f) Increasing Dealers network g) all of the above

12) What type of Promotional activity RC cola should take?

a) TV advertisement b) Shop sign c) Banner d) Sponsorship

e) Gifts and Incentives f) Campaign g) Product bonus h) All of the above

Questionnaires for Customer

Name:

Occupation:...

Organization:.....................................
63
1) Which brand of cola do you generally buy?

a) RC b) Coke c) Pepsi

2) Which attributes do you emphasis in choosing brand?

a) Quality b) Lower price c) Gifts

3) How do you perceive the quality of RC cola?

a) Very excellent b) Excellent c) Good d) Moderate e) Bad

f) Very bad

4) What type of promotional activity RC cola should take to increase its market
demand?

a) TV Advertisement b) Publicity c) Campaign d) Dealers meet

e) Offering gifts and incentives for customer f) All of the

5) On which attribute of drink do you emphasize most?

a) cola b) fruit flavor c) soda water

6) Who pursue you most to select a brand?

a) Owners of outlets b) Company officials c) Friends and relatives d) Media advertisement

7) Do you drink RC cola?

a) Yes b) No

64
8) If yes, why?

a) Better quality b) Gifts and other benefits c) Attractive price

9) If no, why?

a) Not satisfied with quality b) Not satisfied with service c) Unattractive price

10) Flavor of cola is one of the important factors of customer satisfaction.

a) Strongly Disagree b) Disagree c) Neutral

d) Agree e) Strongly Agree

11) What is the reason for not liking RC cola?

a) Horrible Sour b) No punch c) Too strong d) Not sweet

e) Too sweet f) Bitter taste g) Tasteless h) Taste

Our Re-Design Can

65
We Cool Off Hot Towns.

66