Partex Beverage

Case Study on

The Companys Organizational Aims, Objectives & Management Roles to Achieve the Success

History of the Organization

Royal Crown Company Inc., originally called the Union Bottling Works, was born in Columbus, Ga. in 1905. A young graduate pharmacist, Claud A. Hatcher, began creating his own soft drinks in the basement of his family's wholesale grocery business. From these humble beginnings, Royal Crown Cola Co. grew to be the third largest soft drink company in America. At first, the Hatcher Grocery Co. purchased bottled drinks from a local bottler and resold them to its grocery customers. As this part of the business grew, Mr. Hatcher insisted that the bottler pay the company a commission or compensate him in some way for handling the drinks. A dispute arose and Mr. Hatcher concluded that his company had purchased its last case of drinks from an outsider. Henceforth, it would produce and bottle its own drinks under its own labels. The first line of beverages was named Royal Crown, and the first cola drink that he devised was called Chero-Cola. Subsequent generations were to apply the Royal Crown trademark to a cola, and it was to become so important that the corporation would be renamed "Royal Crown Cola Co." Shortly after the Hatcher Grocery Company decided to engage in the manufacture of soft drinks, its officials organized the wholly owned Union Bottling Works. The manufacture and bottling of soft drink syrups continued. Within the framework of the Union Bottling Works until 1912, when the newly organized Chero-Cola Co. took over the business and vastly expanded it Among the early products were Royal Crown Ginger Ale, Royal Crown Strawberry, Royal Crown Root Beer and Chero-Cola. As the sales of carbonated beverages by the Hatcher Grocery Co. became more important, it was decided to incorporate the CheroCola Co. In 1912, Judge S. Price Gilbert in Muscogee County Superior Court of Columbus granted a charter. The company was to manufacture a line of syrups and flavor concentrates to be sold to franchised bottlers who bottle and sell these concentrates and syrups under trademarks owned by the Chero-Cola Co.

In April of 1914, Chero-Cola Co. filed application in the United States Patent Office to register its trademark, Chero-Cola. The Coca-Cola Company then instituted a lawsuit that lasted for more than nine years. In fact, litigation concerning the use of the company's trademark continued in one form or another until 1944 when the final victory was won by Royal Crown Cola Co., setting for all times its right to use the word "cola" in the name of its beverages. The years 1914 1920 showed steady, but at times, rapid growth in sales. Both profits and company assets increased steadily.

Companys Profile
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, Partex as well as RC International carried out a wide range of marketing research. 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 Dhaka into unexplored markets. We are proud to say that we have stuck to our mission and are now worth over Taka 80 crore (US$ 16 Million).

Mission of the Company

The Aim
The Sky is not the limit for us, but our expectation is within limits. Therefore, our imagination soars beyond conventional barriers. We share or destiny with our beloved motherland. We want to serve her in the greater quest for national uplift.

The Way
To sincere traveler, the way is never too long. We believe in "progress in diversity and service through entrepreneur". We are, merchants and missionaries, doers and dreamers, entrepreneurs and professionals. We are futuristic with emphasis on creating thinking and dynamic action.

The Spirit
Enterprise is our spirit. We manufacture superior import-substitute consumer and industrial products. Our cutting edge precision leads to greater public utility and hygiene, with a great care for the environment and human inhabitation. It is the very ingredient that gives our organization the integrity upon which our reputation is built and we zealously guard it everyday. Many a thousand minds of our group contributed their gathered knowledge to keep the wheels rolling that in turn leads us to our goal. This cumulative strength of knowledge is required, today, to find new solutions for the manifold problems of fast- changing economic cultural and ecological milieu.

Objective
1. Analysis product line that used by Partex Beverage (PB). 2. Analysis managerial roles procedures of PB. 3. Analysis Management strategy & strategic plan of PB. 4. Analysis the problem of their decision making in regard of their product strategic plan.

Task: 1
1.1 Partex Beverage Product Line
Offering: No one knows your than you do. Thats shy at Royal Crown Cola International; we offer the freedom of choice. The freedom is to choose one of he best-testing colas in the world. You may prefer any f our popular brands such as Diet Rite, Upper 10, RC Edge, Kick or Royal Crown Flavors as well as RC Cola. Since 1905, RC Cola has been an Enduring favorite for consumers around the globe. So take a stand make a choice. Classification Product: Product
Consumer product RC cola RC Lemon MUM RC Upper ten

Partex Beverage Company has classified into five products RC COLA

RC Lemon

 RC Orange

RC Upper 10

Mum Mineral Water

1.2 Managerial Roles of Partex Beverage

Actually this company has two major part of management roles. These are 1. Strategic Planning 2. Operational Planning. Strategic Planning: Top level managers engage in strategic planning. Specific activities in this role: Developing long-range plans and priorities for a department. Continuing to long-range plans for the total organizing. Helping develop to corporate policies.

Operating planning: Basically operating plans focus more on the firm than on the external environment. To illustrate, the strategic plan of a local government might to be encourage the private sector to take over government functions. Operational plans relate to the day to day operation of a company to unit. Two such activities are: Formulating budgets. Developing work-schedules for the unit supervised. Middle-level managers are involved in operational planning.

1.3 Decision Making Plan:

In Partex Beverage Company the top-level executives are taking decision for all sides of the organization to control their management activities. Each of the functional levels of executives perform to make a plan to develop their managerial roles and also with keeping up the product promotion. Human Resource management is their key assets who translate the groups objectives into realistic perform. For developing long-range plans and giving priorities for a department then after setting their plan they art contributing long-range plans for the total organization.

1.4 To Establish Rapid Growth Strategic Plan of Board of Directors:

Actually To establish rapid growth for the company Board of Directors tells the management that it wants to see a plan and that it wants the plan to drive decision making and resource allocation at the company. The Board of Directors wants to design a strategic planning process that will have the following attributes: It will be democrat, involving as many key employees as possible in the process.

It will help build a sense of shared vision within the company about how to continue to grow rapidly. It will lead to the generation of three to five key strategic for the company It will drive the formulation of detailed action plans, and these plans will be subsequently linked to the companys annual operating budget.

Task: 2
2.1 Management Concept of Partex Beverage:
Any organization, whether new or old, whether small or big need to run smoothly and achieve the goals and objectives which it has set forth. For this they had developed and implemented their own management concepts. There are basically four management concepts that allow any organization to handle the tactical, planned and set decisions. The four basic functions of the management are just to have a controlled plan over the preventive measure. The Four Functions of Management Are: The base function is to: Plan Generally it is the foundation area of management. It is the base upon which the all the areas of management should be built. Planning requires administration to assess; where the company is presently set, and where it would be in the upcoming. From there an appropriate course of action is determined and implemented to attain the companys goals and objectives. Planning is unending course of action. There may be sudden strategies where companies have to face. Sometimes they are uncontrollable. You can say that they are external factors that constantly affect a company both optimistically and pessimistically. Depending on the conditions, a company may have to alter its course of action in accomplishing certain goals. This kind of preparation, arrangement is known as strategic planning. In strategic planning, management analyzes inside and outside factors that may affect the company and so objectives and goals. Here they should have a study of

strengths and weaknesses, opportunities and threats. For management to do this efficiently, it has to be very practical and ample. The subsequent function is to: Organize The second function of the management is getting prepared, getting organized. Management must organize all its resources well before in hand to put into practice the course of action to decide that has been planned in the base function. Through this process, management will now determine the inside directorial configuration; establish and maintain relationships, and also assign required resources. While determining the inside directorial configuration, management ought to look at the different divisions or departments. They also see to the harmonization of staff, and try to find out the best way to handle the important tasks and expenditure of information within the company. Management determines the division of work according to its need. It also has to decide for suitable departments to hand over authority and responsibilities. The third function is to: Direct Directing is the third function of the management. Working under this function helps the management to control and supervise the actions of the staff. This helps them to assist the staff in achieving the companys goals and also accomplishing their personal or career goals which can be powered by motivation, communication, department dynamics, and department leadership. Employees those which are highly provoked generally surpass in their job performance and also play important role in achieving the companys goal. And here lies the reason why managers focus on motivating their employees. They come about with prize and incentive programs based on job performance and geared in the direction of the employees requirements. It is very important to maintain a productive working environment, building positive interpersonal relationships, and problem solving. And this can be done only with Effective communication. Understanding the communication process and working on area that need improvement, help managers to become more effective communicators. The finest technique of finding the areas that requires improvement is to ask themselves and others at regular intervals, how well they are doing. This leads to better relationship and helps the managers for better directing plans.

The final function is to: Control Control, the last of four functions of management, includes establishing performance standards which are of course based on the companys objectives. It also involves evaluating and reporting of actual job performance. When these points are studied by the management then it is necessary to compare both the things. This study on comparison of both decides further corrective and preventive actions. In an effort of solving performance problems, management should higher standards. They should straightforwardly speak to the employee or department having problem. On the contrary, if there are inadequate resources or disallow other external factors standards from being attained, management had to lower their standards as per requirement. The controlling processes as in comparison with other three, is unending process or say continuous process. With this management can make out any probable problems. It helps them in taking necessary preventive measures against the consequences. Management can also recognize any further developing problems that need corrective actions. Effective and efficient management leads to success, the success where it attains the objectives and goals of the organizations. Of course for achieving the ultimate goal and aim management need to work creatively in problem solving in all the four functions. Management not only has to see the needs of accomplishing the goals but also has to look in to the process that their way is feasible for the company.

2. 2 Expectations to Meet the Product Development: Product Quality:

RC is such a quality product that gives refreshment for the thirsty world. It gives the freedom of choice that is the best testing cola in the world. RC cola has been an enduring favorite for consumers around the globe .SO take a stand make a choice. Be free, drink RC.

Packaging
RC cola is design by an attractive designing and producing container. RC use two kind of packaging One is cane and another is pad bottle.

Brand name:

We are working the Partex Beverage they have individual brand name: RC Cola RC Lemon RC Orange RC Upper 10 Mum Mineral Water.

Consumer Perception:
RC cola (mineral water) is significant graved the market by the consumer of the Bangladesh. People use RC generally occasionally, big party & celebrity party. People can find it from any place of Bangladesh.

Price:
The price of product is very reasonable for the consumer. MRP (Maximum Retail Price) RC Cola RC Lemon RC Orange Cane 250 ml tk. -15 Pad bottle 500 tk -20

Cane 250 ml tk-15 Pad bottle 500 tk -20

Cane 250 ml tk-15 Pad bottle 500 tk -20

RC Upper 10 Cane 250 ml tk-15 Pad bottle 500 tk -20 Mum Mineral Water Lowest price tk -12 Highest price tk -35

Channel

The communicator now must select channels of communication. There are two broad types of communication channels-: Personal communication channels. Non personal communication channels.

Partex Beverage follows the two types of channels. But basically they follow the non personal communication channels.

Non Personal communication channels:

Non Personal communication channels are media that carry messages without personal contact or feedback. They include major media, atmospheres, and events. Major media include print media (Newspapers, Magazine, direct E-mail), broadcast media (radio. Television), display media (billboards, sings, posters), and online media (online services, web sites).

Coverage:
It covers all over Bangladesh from urban to rural area. Most of the customers of the beverage live in city or in district level.

Location:
Partex Beverage covered most of the are of Bangladesh.

Promotion
Advertising: Any paid form of no personal presentation and promotion of ideas, goods, or services by an identified sponsor.

There are many types of advertising that follow RC Beverage Company. Some of those advertising process are given below: Media They advertise their products largely in TV and Radio. Newspapers: In print media newspaper is one of the big media. RC Beverage Company also gives their advertising in newspapers. Magazine: This Company also gives their advertising to the magazine. Sales promotion Short-term incentives to encourage the purchase or sale of a product or service. Public relations Building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Personal selling Personal presentation by the farms sales and building customer relationships.

Task: 3
3.1 Competitive position & Problems of Product Strategic Plan Main Competitors
An effective competitive marketing strategy, the company needs to find out all it can about its competitors. Fizzup, and Double Cola. In this way the company can fine area of potential competitive advantage. Like RC Cola Beverage Company constantly compare its products, prices, channels, and promotion with those of close competitors like Uro Cola,

Expanding the Total Market

The leading funds normally gain the most when the total market expands. The market leader of RC Cola is expanding the market by developing new users, new uses and more uses of its product.

Mainly RC Cola Beverage Company always fined new users. Finally marketer leader encourages more usages by convincing people to use the product or to use more per occupation.

Expanding Market Share

RC Cola Beverage Companys market leaders grow by increasing their market share further. They have a high share on the market with low profitability.

3.2 Global brands losing ground to local soft drinks

Basically Coca-Cola has lost a big chunk of its share in the Tk 700-crore market of carbonated drinks in Bangladesh, in the face of stiff competition from Pepsi, RC and Uro. The global brand has seen its market share eroded by nearly 25 per cent between 2000 and 2005 when the sector has posted a compounded annual growth rate of around 11 per cent. The top four control 88 per cent of the market and more than 10 other companies the remaining 12 per cent, said industry sources. Use of PET bottles instead of glassmade ones, wider distribution network and competitive pricing strategy have boosted the market share of RC Cola of Partex Beverage, which is the second largest local soft drink company. Coca-Colas market share slid from 54 per cent in 2000 to 30 per cent in 2005. However, five years later, the situation completely reversed, with PET bottle dominating 87 per cent and glass bottle 13.RC, which entered the cola market in 1997 with glass bottle but later switched to PET bottle, has seen its market share shooting up to around 26 per cent. Basically strong distribution networks and focus on rural consumers had also been the strength of the company.RC is the market leader in rural areas commanding around 45 per cent share. Pepsi, another global brand, controls 20 per cent of the market share with 7Up, once a popular drink, losing ground to local brands. Competitive price, changes of habit and entrants of new players in the market are the major reasons of shrinking.Uro Cola, another local brand, has around 12 per cent share of the market, showing signs of gradual expansion.

3.3 Best Policy for Making Success to Achieve the Upper-10 Cola Product

Actually for making success to achieve the Upper-10 Cola Product I will follow these decision making steps:

Generic Strategy:
A Cost Leadership Strategy This strategy is based on the concept that you can produce and market a good quality product or service at a lower cost than your competitors. These low costs should translate to profit margins that are higher than the industry average. Differentiation Strategy The emphasis can be on brand image, proprietary technology, special features, superior service, a strong distributor network or other aspects that might be specific to your industry.

Pricing
A pricing strategy is mostly influenced by your requirement for net income and your objectives for long term market control.

Promotion
To sell an offering you must effectively promote and advertise it.

Distribution
Direct Sales involves the sale of your offering using a direct, in-house sales organization that does all selling through the Internet, telephone or mail order contact. Wholesale Sales involves the sale of your offering using intermediaries or "middle-men" to distribute your product or service to the retailers.

The Competition
Actually it is essential to know who the competition is and to understand their strengths and weaknesses. Factors to consider include:

Each competitor's experience, staying power, market position, strength, predictability and freedom to abandon the market must be evaluated.

Customer Services
The strength of the customer service function has a strong influence on long term market success.

Limitation:
Basically everything has some limitation. I also faced some problems to make this assignment. It is so tuff to complete this term paper within little time. I think it was the main problem of this study. Another limitation is that I faced and it is lack of information from companys website. Actually I collect some information that is not sufficient to complete this assignment.

Conclusion:
Actually Partex Beverage is one of the most familiar beverage companies in our country. Basically all the products of this company are qualityful. Actually there main product MUM mineral water is very standard qualityful product which is most famous & has brand image in Bangladesh & internationally. But problem is that they are another main product RC was create a brand image when they first launched in our country but now a days it lost brand image by provide less qualityful product & also good advertising. So every day market is being competitive so now the time to management & board of directors of the company to take necessary steps, make effective strategic plan & decision making to the companys existing product & also create standard & qualityful new product.

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