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Welcome to the Internship Presentation Ceremony 1

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Presented By:

Raihan Chowdhury ID: 08092101119 BBA Program, 18th IntakeMajor in MarketingBangladesh University of Business & Technology

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Presentation OnMarketing Strategies of Akij Food & Beverage Ltd (AFBL) Regarding Their Beverage Products3

Executive SummaryBeverage and soft drinks sector is one of the fast growing sectors of Bangladesh. AFBL is one of the major local manufacturers of soft drinks in FMCG sector. In the age of globalization and free trade, it is very tough to compete in this soft drinks and the competition style of this sector changing very frequently. The AFBL is continuously managing itself with this changing environment of competition. My research report initially provides a nominal idea of the beverage industry in our country. Then the overview of AKIJ Group and also Akij Food & Beverage Ltd (AFBL), which is a unit of Akij group, is presented. After the company descriptive part, analysis segment is incorporated. Starting with 4ps analysis of AFBL, SWOT analysis, competitive analysis and marketing strategies. 4

CONTENTS Introduction Company Background Literature Review Survey Analysis Major Findings Recommendation Conclusion5

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PART- 1INTRODUCTION

BACKGROUND OF THE REPORT:This internship report contains all the information that I gathered in the three months internee in the Akij Food & Beverage Ltd. My report is a broad study and analysis of consumer perception to these strategies and Recommendation regarding their products brand building.SIGNIFICANCE OF THE REPORT:The fundamental significance of my research is customized towards revealing the fact of whether the huge efforts of AFBLs brand department is actually undergoing in the proper direction of the brands prospects.7

OBJECTIVES OF THE REPORT: Broad Objective:The broad objective of this report is to better understand the beverage industry and its marketing strategies. My topic is Marketing strategies of Akij Food & Beverage Ltd (AFBL)s regarding their beverage products Specific Objectives: Get idea about various consumer perception about the beverage products of AFBL. To identify the customer satisfaction related to product, price, place, promotion of beverage products. To recommended some measures for the development of beverage products and services of AFBL.

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RESEARCH METHODOLOGY:To develop a formulated research work, well structured methodology of data collection should be used to build the research. For my research report I have focus on both the Primary & Secondary data collection sources. Primary Source:This means of source was used to collected raw data and information from the respondents. Survey Questionnaire: To collect primary information and feedbacks from the consumers regarding AFBLs marketing strategies, structured questionnaire was developed and survey was conduct. 9

Secondary Source:Secondary source of data collection was used to include information regarding strategic marketing and the unique selling preposition of AFBLs brands. Moreover, second hand data of the research to gain ideas of their strategic marketing plan and the implementations.10TYPE OF RESEARCH DESIGN:I have applied Descriptive Research to conducts the report. POPULATION: All the customers of beverage product. SAMPLING ELEMENTS:Individual customers of soft drink. SAMPLING PROCEDURE: Non-probability convenience sampling procedure is used in the survey.SAMPLE SIZE: The sample size is 50 customers.

RESEARCH HYPOTHESIS:Before conducting any research, proper hypothesis are needed to be establish to check whether the assumptions made are valid or invalid.I have constructed group of hypothesis for every segments of my research and they are displayed below:Hypothesis-(Segment A) Null Hypothesis: Each and every survey respondents consumed at least one brand of AFBL. Alternative: Not all respondents consumed at least one brand of AFBL.

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Hypothesis- (Segment B)Null Hypothesis: Most of the respondents are aware of the strategic Marketing/Communicational theme of MOJO. Alternative: Most of the respondents NOT aware of the strategic Marketing/Communicational theme of MOJO.II. Null Hypothesis: Most of the respondents are NOT aware of the strategic Marketing/Communicational theme of LEMU. Alternative: Most of the respondents are aware of the strategic Marketing/Communicational theme of LEMU.III. Null Hypothesis: Most of the respondents are aware of the strategic Marketing/Communicational theme of CLEMON. Alternative: Most of the respondents are NOT aware of the strategic Marketing/Communicational theme of CLEMON.

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IV. Null Hypothesis: Most of the respondents are aware of the strategic Marketing/Communicational theme of SPEED. Alternative: Most of the respondents are NOT aware of the strategic Marketing/Communicational theme of SPEED.V. Null Hypothesis: Most of the respondents are aware of the strategic Marketing/Communicational theme of WILD BREW.Alternative: Most of the respondents are aware NOT of the strategic Marketing/Communicational theme of WILD BREW. VI. Null Hypothesis: Most of the respondents are NOT aware of the strategic Marketing/Communicational theme of SPA.Alternative: Most of the respondents are aware of the strategic Marketing/Communicational theme of SPA.

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VII. Null Hypothesis: Most of the respondents are aware of the strategic Marketing/Communicational theme of FARM FRESH. Alternative: Most of the respondents are NOT aware of the strategic Marketing/Communicational theme of FARM FRESH. Hypothesis- (Segment C) Null Hypothesis: In the ranking of the strategic Marketing/Communicational theme of AFBLs products, MOJO stands in the top followed by FRUTIKA (2nd), then SPEED or CLEMON. Alternative: In the ranking of the strategic Marketing/Communicational theme of AFBLs products, MOJO Does Not stand in the top followed by FRUTIKA (2nd), then SPEED or CLEMON.

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LIMITATIONS:I have faced few limitations during my research and project work and I have enlisted them below:The level of privacy associated with the companys information processing has been a limit for carrying out the planned activities.Much information was disclosed and its presences would have enhanced my research report contents but they were highly secret to be presented in the report. Work pressure in the office turn out to create time limitation for the work of the intern report.But along with these limitations I tried my level best to overcome them and follow my objective.15

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PART- 2COMPANY BACKGROUND

17HISTORY:Parent Company overview (AKIJ GROUP)

Reaching escalating heights in Bangladesh and beyondAKIJ GROUP is considered to be one of most profound and aged industries that is still sustaining with great success and prosperity. It was more than fifty years ago the company emerged into the market. Entrepreneur, Founder and Chairman Late Mr. Sheikh Akij Uddin initiated the business in 1950s with a single product of cigarette naming Akij Biri. This brand is one of the biggest and well known units of Akij Group.

18OVERVIEW OF AKIJ FOOD & BEVERAGE LTD (AFBL):

The company Akij Food & Beverage Ltd (AFBL), a unit of Akij group, came into business in year 2006. It has come with the best food & beverage in Bangladesh. It incorporates manufacturing of variety sort of snack and beverage products and selling them to the local market as well as some of the international market. There are various types of soft drink. Mojo is the brand name of cola, Lemu is the brand name of Lemon and Speed is the brand name of energy drink. Immediately after the introduction of the brand it became very popular among its consumer because of the high quality and serious distribution in every corner of the country.

19BUSINESS PHILOSOPHY:In soft drink industry, there are many local & foreign companies. Akij food & beverage desire to be a unique local FMCG producer with the same quality of foreign company. For this purpose AFBL produces CSD, Snacks, Milk, and Juice for young target group who love to lead stylist life. Main slogan of AFBL is:Brings Quality in Life Some important functions are performed by the department as below:Research & Product development.Raw material sourcing.Identify or create possible outlook for its product.Packaging design & development.Planning communication strategy and developing.Preparing sales forecast.Keeping sales force management strong in the field.Collecting & analyzing the competitors information.Informing the present market condition to the top management.

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PART- 3Literature Review

214Ps ANALYSIS OF AFBL:The 4ps analysis of a company involves in the companys Product, Price, Place and Promotion. Each of these segments of AFBL is given below:1. PRODUCTS:

AFBL has categorized its products in eight products line and each line incorporates various brands to captivate the market. Product Description:

MOJO:MOJO is a carbonated soft drink (CSD) in cola flavor. The packaging of the product is very attractive because of its color combination on the bottle and can.

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LEMU:LEMU is a carbonated soft drink (CSD) in cloudy lemon flavor. The packaging is full slive and very attractive. The product was launched in 14th April 2006. CLEMON:CLEMON is a carbonated soft drink (CSD) in clear lemon flavor. The packaging is full slive and very attractive. The product was launched in October 2007.

SPEED:SPEED is an energy drink that was launched in 14th April 2009 by AFBL.

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WILD BREW:Wild Brew is non-alcoholic malt beverage The product has been launched by AFBL in November 2008. The category of the product is slow in our Bangladeshi market. FRUTIKA:FRUTIKA is a brand for juice product that is available in different flavors.FRUTIKA MangoFRUTIKA GrapeFRUTIKA Red orangeFRUTIKA Mixed fruit

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SPA:SPA is a mineral water that was launched by AFBL in April 2007. The products packaging makes it very attractive. FARM FRESH:The brand FARM FRESH denotes dairy products of UHT milk and Pasteurized milk. The brand entered in the market in September 2007.

252. PRICE:Pricing is one of the critical aspects of a products future to success and failure. There are many different methods of pricing a company can employ. AFBL follows 3 types of pricing methods. Various sorts of pricing methods are given below: Competition-based pricingContribution margin-based pricingCost-plus pricingPsychological pricingCreaming or skimmingDynamic pricingLimit pricingPrice leadershipLoss leaderTarget pricingMarket-oriented pricingAbsorption pricingPenetration pricingMarginal-cost pricingPrice discriminationPremium pricingPredatory pricing

263. PLACE:Place means that outline of distribution channel a company employs to make its products available to the final consumer. AFBL inborn the advantage and was been able to use the wide network distribution channel to promote and provide its products in each and every place across the country. AFBL has segmented the entire Bangladeshi market into 25 regions for its distribution purpose:

DHAKA-1DHAKA-2DHAKA-3DHAKA-4GAZIPURNORSINDIZINZIRANARAYANGONJMYMENSINGTANGAILCTG-1CTG-2CTG-3SYLETMOULOBIVABAZARCOMILLACHOWMOHANIKHULNAKUSTIABARISALFARIDPURBOGRARAJSHAHIRANGPURZESSORE

274. PROMOTION:It is one of the most important facets of a company which it has to promote in a very proper way to achieve best possible outcome. AFBL values the importance of promotion, because it believes no matter how high-quality, good taste, attractive packaging of the product, it has to be properly communicated to the customer to pursue the final purchase. AFBL has broadly categorized its promotional activities in two types: Trade promotion (TP):Trade promotions are targeted for the retainers and the distributors. It usually involves free products, cash incentives and gifts for the retainers and distributors for high volume purchase. Consumer Promotion (CP):All the promotional activities that are targeted for the consumers are developed here. Strategy developing, implementing and monitoring of consumer promotions are being conducted by the Brand department.

28COMPETITVE ANALYSIS OF AFBL:As mentioned earlier the entire beverage industry of Bangladesh comprises of Carbonated Soft Drink (CSD), Energy Drink, Mineral water, Fruit Juice, Non-Alcoholic Malt Beverage, Flavored water and Dairy products. To perform the competitive analysis of AFBL, I have used two strategic tools:1. Porters Five-Forces Model of Competition2. BCG Growth share matrix PORTERS FIVE-FORCES MODEL OF COMPETITION:The model develops a framework that helps to analysis forces playing a vital in the market. It can be used to evaluate any product industry thus I have intended to use the model to entrance broad analysis of the beverage industry of Bangladesh.

29The model focuses on five forces that shape competition within industry: The risk of new entry by potential competitors. The degree of competition among established companies within an industry. The bargaining power of buyers. The bargaining power of suppliers. The threat of substitute products.

30BCG Growth Share MatrixThe BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and relative market share. BCG Growth share matrix helps to identify brands position in the market as per market share.

Market Growth RateHIGHSTARQUESTION MARKSLOWCASH COWDOGHIGHLOW Relative Market Share

31 Graphical presentation of AFBLs Brands as per growth share matrix:Market Growth RateHIGHMOJOSPEEDFRUTIKALEMUCLEMONFARMFRESHSPALOWCASH COWWILD BREWHIGHLOW Relative Market Share

32ANALYSIS OF THE MARKETING STRATEGIES OF AFBL:Marketing strategies of AFBLs brands are developed by the combine effort of the brand department and the advertising agencies (Adcomm & Grey). Many strategic themes are proposed by the agencies and the brand department analyzes and polishes them to make it applicable for implementation. Brand wise marketing strategies of AFBLs products are analyzed below:

MOJO:Since the establishment of the brand MOJO, it is projected to the consumer as a brand of fun and enjoyment. The strategic marketing/communicational theme of MOJO is ONTORE ONTOREIts Inside U. All the promotional activities are focused around this theme.

33This year Mojo Promotional campaign for Eid-ul-Fitr was Mojo present Eid a notun jama festival to the consumers on the basis of the number of sms sent. The brand MOJO is kept up to date with events occurring in the country through out the year.

34CLEMON:CLEMON was launched with an innovative idea. The strategic marketing/communicational theme of CLEMON is TOTAL CLEARLIVE FRESH.The Brand is associated with the sport culture in our country. The Brand plans to develop at least one player to play in our international cricket team and operate as a CLEMON brand ambassador.

35SPEED:The brand SPEED was launched in 2009, the strategic marketing/communicational theme of Heavvvy Energy-Ektu Bujhe Shune Khao-Khokon Je Ki Hoi Kisu Bola Jai Na. All the campaigns are focused on the idea of SPEED with extreme energy.

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FRUTIKA:Usually the promotional campaigns of any fruit juice products are constructed based on its purity. But strategy used for Frutika was quite different and innovative. The strategic marketing/communicational theme of FRUTIKA is Ektu Besii Pure---Drink Frutika And Speak Just The Truth.

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SPA:SPA drinking water was launched in 2007 The strategic marketing/communicational theme is The Water of Life---Shuddu Pani Shustho Ami. Free Sampling of Spa in Ramadan 2012

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PART- 5Major Findings

39In my research, most of the respondents were male in which male (68%) and female (32%).Most of the respondents (76%) were within the age group of 21-25. This denotes that the target individuals were mostly the youth whose ages are between 21-25. Most of the respondents were student (84%), jobholder (36%), Business person (1%) and (26%) of the respondents were both students as well jobholders. Among the 50 surveyed respondents, (100%) consumed MOJO, (86% ) & (78%) had consumed FRUKITA & SPEED.

40More than 50% percent of the respondents were aware of the strategic Marketing/Communicational theme of MOJO, FRUKITA, CLEMON & SPEED.More than 50% of the respondents were unaware of the strategic Marketing/Communicational theme of LEMU, SPA & WILD BREW.Among all the survey respondents, (58%) ranked MOJO to be in the 1st position and FRUTIKA in the 2nd position. And (64%) ranked SPEED in the 3rd position.

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PART- 6RECOMMENDATION

I have provided recommendation as per the brands of AFBL and they are outlined below:One of the core influencing reason of consuming AFBLs products is the packaging. AFBL should never take any plan to modify the packaging of the brands specially MOJO, LEMU, CLEMON, SPEED, FRUTIKA.AFBL should hold on to the perform greater promotional efforts to create a platform that preserves the high-level sustainable awareness.The entire Communicational theme of LEMU should be changed by AFBL as because of poor awareness level. 42

Recommendation for SPA is the same stated for LEMU but entire Communicational theme of SPA wont have to be changed. The consumers are not that much aware of the strategic Marketing of the brand FARM FRESH. The reason is poor connected activity with the brand thus AFBL should reorganize the brand building strategic of FARM FRESH. Few products of AFBL, for example SPA & FARM FRESH, are consumed by the customer because of the availability. Thus AFBL should clearly hold on to their strong distribution channel. 43

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PART- 7CONCLUSION

Throughout my internship period, I gained a lot of valuable knowledge regarding the operation of the entire beverage industry. The company AKIJ FOOD & BEVERAGE LTD (AFBL) lately came in the business, and has already achieved a successful state with some of its brands. I am highly grateful for being a part of this venture, and understanding their business policies, operational structure, strategy formulation and implementations. The comprehension gained from the marketing activities of AFBL improved my knowledge.The reflection of the efforts could be seen from the strategic marketing/communicational theme and USPs of brands like MOJO, SPEED, FRUTIKA, CLEMON etc. The pace at which AFBL is currently accelerating, will undoubtedly lead the company to the peak of success where majority of the market shares will be withhold by the brands of AFBL.45

Questioning Session

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