Impact of Covid-19 pandemic on FB beverage company

FB Company’s situation analysis:

The present situation of the beverage company is really bad.

This company’s main profit comes from the local stores. Its weakness is now sales decreasing.
We need to figure it out how this problem’s solution with proper feasibility plan.

On the other hand, the company is planning to set two new machines which are completely
wrong. Because during this COVID-19 crisis already the company has received less profit. To
continue higher profit of the company like before we have to do a risk analysis. That's how we
will get to know that if this plan would work in the future or not.

Main problems:
 The company has storage capacity limitation which pause the production.
 Company faces breakdown of maintenance of machine which cause production timeline.
 Due to Covid-19 company is getting hard time to get raw material, packaging material
and consumer’s purchasing power is decreasing which are the root cause of sale
decreasing.
 They have channel distribution problem, and air transport courier facility is not smooth
which is huge hindrance for exporting the business.
 Due to price competitiveness issue and self-life issue many soft drinks and drinking water
are facing less potential to export in outer country.
 Strength
 The company has good
market mix and monitoring
system.
 It is engaged in different
distribution system like
DEPO, institutional direct
sale, contract manufacture
(CM), and export sale.
 They use advance
technology to produce
product more efficiently.
Opportunity
 The company has a huge
opportunity to explore its
business in different
countries.
 They have a huge opportunity
to enter in international
market with their soft drinks
and energy drinks.
 Good relation between the
local distributer and DPO
dealers.
Weakness
 Due to storage limitation
they often face production
stoppage.
 Their machinery is often
export from other country
Internal which cause malfunction and
time lag in production.
 Communication gap between
producer and the distributer.
 Delivery service are not
satisfying.
SWOT
Threat
 Due to Covid-19 consumer
purchase price are decreasing
thus it cause a huge sales
decrease.
External  Political bad influence in the
market.
 Due to lockdown many
restaurants, school-college are
close and because of that the
institutional direct sale are not
applicable.
Covid-19 effect in the FB beverage company:
1. Due to lockdown people are losing their jobs thus consumer purchasing power are
decreasing thus sales are decreasing.

2. Covid-19 main symptoms are fever, coughing, and difficult breathing thus consumers are
avoiding soft drinks and cold drinks which is also affecting the business.

3. Dealers are having hard time to get raw material & packaging material which are causing
production time lagging.

4. Breakdown and maintenance of machine requires to bring the parts from oversees which
is also not possible in this pandemic situation.

5. Most of the countries border are closed and flights are off so exporting the are also not
possible.

6. Bad market review is spreading faster which is also affecting the company’s sales.
 FB beverage company market competitors

Company Target Profitability Market Consumer Distribution

name Strategy Process Channel
Pran Young & High chain e-commerce Foreign
adult management site, TVC, marketing,
billboard, free institutional
supply, local marketing
shop

Square Young & Very high Export based TVC, local Direct and foreign
LTD adult with good shop, free marketing
manufacturin supply
g quality

ACI LTD Young & good Direct e-commerce, Foreign marketing

adult marketing promotional
program, free
supply
 FB beverage company 2019 & 2020 sales difference and reason

Year January February March April May June

2019 100,000 200,000 275,000 300,000 450,000 275,000
unit unit unit unit unit unit

2020 175,000 225,000 250,000 150,000 225,000 215,000

unit unit unit unit unit unit

Difference 75,000 25,000 25,000 150,000 225,000 60,000

(2020) (2020) (2020) (2020) (2020) (2020)
High sale High sale Low sale Low sale Low sale Low sale

Reason In 2020 They change First Covid-19 Due to lock- The lockdown Covid-19
behind the company their promotion case were down many continued and cases keep
2020 sale Organize channel and detected thus small general people rising and
fall Dealer and enter in online customer businesses, started losing people
sales team e-commerce site started shops, their jobs, thus stopped
for better and upgrade doubting the institution consumer’s buying soft
sales growth. their social soft drinks and were closed buying power drinks and
media. energy drinks. thus it cause a decreased. cold drinks.
great sales
fall.
 expected sales forecast of 2020(june-dec)

65%

50% 55%
45%
30% 35%
20%

june july aug sep oct nov dec

So, the company is expecting least 55% of sales raise within December. Through current data we
get to know that in Jun, July, Aug company sale raised to 20%, 30%, 35%, respectively. So, we
are expecting in coming months we can raise our sale to 55%. Due to Covid-19 effect first half
month of the sales decrease to 20%. Now the company is working on sale growth and promotion
to rise its sale in a minimum growth rate.
 Marketing strategy
 Positioning:
 Brand equity.
 Ensure enough resource to promote.
 We are targeting a few market places not the whole market.

 Revamping brand Image:

 Making regular changes in advertisement, promotion
and campaign.
 Utilizing innovative idea.

 Email Marketing:
 Based on E-commerce site we will get in touch with
target audience

 Blogging:
 Different types of soft drinks

 Online Show Host:

 To engage the audience on social media

 Seasonal Offers:
 After the pandemic on during the pandemic situation
we will offer 20%-25% discount of buying any two soft
drinks. (Discount price included with the profit)

 Social Media Marketing:

 YouTube
 Facebook
 Instagram

 Unique Selling Point:

 Introducing new soft drink.
 Covid-19 suspect persons can also drink new launch
soft drink.
 Will give discount offer on buying any two-soft drink.
  Law chemical element.
 No side effect on health.

Supply chain

Import in
Raw Mongla and
material Chittagong port Warehouse
port

Manufacture Distributer Retailer

Consumer
Innovative Idea:
 New soft drink launch
 The new soft drink is “Herbal Tea Drink”
 Effective for health

Risk Analysis:
 Huge Competition
 To cope up with fast industrial revolution is quite challenging
 To adapt new normal
 Investment resource scarcity
 Risk to public health

Conclusion:
We all know that beverage companies are the hit market place of our country. Because every
summer it earns a lot of profit. The present condition of the beverage company is going low. To
increase the sales like before we can follow the above instructions and strategies. After applying
all these we do hope that output will come good.