Marketing Assignment

On

Acknowledgement

We first express our deep gratitude to the almighty Allah who gave us the

opportunity to finish this task. Then we would like to express thanks to our course

instructor Md. Anamul Hoque Rubai, Lecturer, Department of Business

Administration, East West University Dhaka. His candid suggestion, patient,

enthusiastic encouragement thought out the have made this attempt successful. His

insight and invaluable remarks left distinct of the work. To his generosity our

gratitude is unbounded. We express our deep gratitude and heart full thanks to all of

our friends. Finally we must remember our parents and all members of our family

with deep gratitude for the mental and financial support and finally to our teaching

assistant for the contribution in all the work we have done in this assignment.

Table of content

1. Abstract

2. Objective of the study

2. Methodology

3 Introduction

#Coca-Cola in Bangladesh

4. Analysis

Situational analysis

4.1 S.O.W.T analysis

Industrial analysis

4.2 BCG analysis

5Marketing Strategies

5.1 Market Segmentation

5.2 Target Market

5.3 Positioning

6. Marketing mix

6.1. Product

6.2 Price

6.3 Place

6.4 Promotion

6.5 Packaging

6.6 Public Relation

6.7 Publicity

6.8 Politics

7. Conclusion

8. Recommendations

9. Survey

10. Bibliography

Abst rac t p resen t s a c lea r v i s ion o f the repor t wi th d i f fe ren t

t i t l e s . We have chosen Coca Cola Company for our repor t . In

our repor t we main ly dea l wi th marke t ing s t ra teg ies o f “Coca

co la” & “Fanta” , the p roduc t ca tegory and produc t mix o f the

o rgan iza t ion . Th i s repor t wi l l he lp us to de te rmine the in -dep th

in format ion and s tand ou t pos i t ion in the marke t . So this paper will

give you a complete preview of this World Giant in the Beverage business.

There are two types of objectives in our reports -

a) Primary objective :

Our main objective is to gather information about the world’s leading Soft Drink Company; Coca Cola and the study has given us realistic view point and information that are needed to complete the report of our course.

b) Secondary objective:

For the purpose of this report we have placed the main focus on the beverage industry.

To find out the reasons why Coca Cola Company are facing problem in global market.

Identify the market segment and selecting target market to analyze the export activities of Coca Cola Company.

To determine the market position of the coca cola and Fanta through their product life cycle.

Research Method:

Primary Sources:

To collects our primary data. We have prepared 6

questionnaires and total number of samples was 50. We have also conducted

in-depth interview with resells & consumers.

Secondary sources:

For secondary data we have collected most of the data from

internet, textbooks, and various journals.

Limitation of Study:

(a) Time limitation is one of the problems to make a long time

survey

(b) We surveyed just over 50 people.

(c) . Data collection process was irregular.

On May 8, 1886, Atlanta druggist Dr. John Styth Pemberton (former Confederate officer) invented "Coca-Cola" syrup using melted sugar, water and other ingredients. It was mixed in a 30-gal. Brass kettle hung over a backyard fire. It was marketed as a "brain and nerve tonic" in drugstores. Sales averaged nine drinks per day.

 

Coca-cola is the most popular and biggest selling soft drinks in history, founded in 1886, & it created in Atlanta, Georgia by Dr. John S. Pemberton. Coca-cola was first offered as a fountain beverage by mixing coca-cola syrup with carbonated water. In 1899, the company began franchised bottling operations in the United States. Today they produce nearly 300 brands in 200 countries.

Fanta has its origins in Nazi Germany, when a trading ban was placed on that nation by the Allies during World War ||. The Coca-Cola Company therefore was not able to import the syrup needed to produce Coca-Cola in Germany. As a result, their chief chemist, Dr. Schetelig, decided to create a new product for the German market created using only

ingredients available in Germany. The Coca-Cola Company called the new product Fanta. Primary competitors to Fanta have included Tango, Mirinda, Slice, Orange Crush,

and Tropicana Twister. Fanta was the second drink to be produced by Coca cola apart from the original Coca-Cola.

Coca-cola Company in Bangladesh

The Coca-Cola Company was first started their business by their bottling agent “Tabani Beverage” in the year back in 1963.Two independent Bangladeshi bottlers of Coca-Cola employing over 1500 Bangladeshis and providing a source of income fro over 35000 retailers have dedicated their men materials and machines for a refreshing, delicious drink that is made in Bangladesh. One of these is Tabani Beverage Co. Ltd and another one is Abdul Monem Limited. Tabani Beverage covered the area of Dhaka and Rajhshahi division whereas Abdul Monem Limited covered rest of the part of Bangladesh. In terms of percentage (%) Tabani Beverage covered 60 % and Abdul Monem Company covered 40% of their market. They bring raw materials for their products from The Coca-Cola Fareast Company, which is situated, in Egypt. They bring their raw material, which is concentrated syrup from The Coca-Cola Fareast Company. Tabani Beverage Co. Limited pays all the freight charges.

But recently Coca-Cola & Tabani Beverage is going through some tough problems. A legal battle appears to intensify between Coca-Cola Company and Tabani Beverage as the High Court has issued an interim injunction in favor of Coca-Cola, barring the use of its trademark by Tabani. The row began after the bottling agreement expired in July, and Coca-Cola informed Tabani that it would not renew the bottling agreement.

So now Abdul Monem Limited is the sole producer & marketer of Coca-Cola Products in Bangladesh.

Situational analysis:

S.W.O.T analysis:

Every company must have some strengths, weakness, opportunities, & threats. The best portfolio is the one that best fits a company’s strength, weakness to the opportunities in the environment. Coca-cola Company always tries to put strong resources in to its more profitable business & drop its weaker ones. It also hunts for its opportunities & try to overcome its threats.

Strength: Quality and Taste is good.

Brand name has a good impact on consumers.

Attractive packaging

Different sizes (Small, fountain, cane & pet bottles)

Easily Accessible

Reasonable price.

High quality of advertisement influence consumers.

Effective distribution system.

Market size is huge.

Management policy is good.

Market share is high.

Weakness:Small bottles (glass) of coke are not easy to carry.

Number of advertisement & sales promotion is low.

Opportunity: To introduce coke of different flavors.

Increase advertisement & other sales promotion

As it is a popular product so it has captured a significant portion of market share.

Threat: Colorful flavors of other beverage company.

Competitor can take over coca-cola by providing any unique feature.

Pepsi sponsored most of the fast food joints.

Tabani Beverage think as if they are the best one and this thought can be a threat for them.

They are not really concern about huge advertising and sales promotion. Very few consumers could remember that when they last

Industrial Analysis:

The best-known portfolio-planning method was developed by the Boston Consulting Group, a leading management consulting firm. Here the company classifies all its SBUs according to growth share matrix.

Coca Cola Fanta Sprite Sunfill

The BCG (Boston Consuling Approach) growth-share matrix.

High

Low

S T A R Q U E S T I O NM A R K

D O GC A S H C O W

High Low

Market segment:

A group of buyers who respond in a similar way. A group of customers (people & firm) at whom the seller especially aims its marketing efforts. The careful selection & accurate definition of target markets are essential for the development of an effective marketing mix. But Fanta will play a critical part in this effort due to its strong connection with moms and teens." For finding out the target market, we have segment the market in following ages:

Segmentation Small bottle Cane Fountain Family size

School going 30% 25% 20%

Teenagers 26% 30% 32% 2%

Youth 25% 28% 24% 3%

Couples 25% 30% 40%

Family 25% 15% 60%

Old people 10% 20%(diet)

Relative Market Share

Segmentation Bases for Consumer Market

For each market segment Coke and Fanta designs different marketing, mix. Sometimes market segmentation can also be accomplished with no change in the product but rather marketing program.

Segmentation Basis Typical market segmentsGeographicRegion Comilla, Chittagong & Khulna

City size 15 sq.km , 11 sq.km, 17 sq.kmUrban-rural Urban, rural

Climate Hot, hot, sunnyDemographic

Age 6-12, 13-19, 20-34, 35-49 & over.Sex Male, female

Family life cycleYoung married no children, married with children

EducationGrade school only, high school graduate, college graduate only, graduates.

OccupationStudent, housewife, professional, manager, clerical

Religion Muslim, Hindu, Christian, Buddhist.

Psychographics

Social classUpper class, upper middle, lower middle, upper lower

PersonalityAmbitious, self-confident, aggressive, introverted, extroverted, sociable, etc.

Life-style Conservative, liberal, adventuresome.

Behavior toward productBenefit desired Good taste, low price, different flavors.

Usage rateHeavy user, light user.

Target Market:

A sound marketing program starts with the identification & analysis of target markets for what ever it is that an organization is selling. A market consists of people & organizations with needs or wants money to spend & the willingness to spend it.

Today the coca cola company products are sold in nearly 200 countries around the world. In 2002, US gallon sales represented approximately 30% of the company’s worldwide sales. The Principle markets outside the US are Mexico, Brazil, Japan and Germany, which together accounted for approximately 26% of the worldwide gallon sales. Coca cola Company’s worldwide operations are shown in the following.

Market Types

Coke & Fanta

Consumer Market

Business Market

Reseller market

Consumer Market: Individuals & households.

Business Market: Hotels, restaurants & cafeterias.

Reseller Market: Departmental stores, groceries shop.

Positioning: Soft drink gives people refreshment and coke and Fanta gives the pure refreshment with an exclusive taste Abdul Monem Limited always put their importance on quality. They always try to offer the best to their consumers.

So the competitive advantage of Abdul Monem Limited is that they provide the superior quality by not using any artificial color. They offer consumers greater value, at a same price. Another advantage of their product is that, coke has much more caffeine than any other brand. Consumer can differentiate coke and from other competitive product in terms of brand, quality, price, and market position. And Fanta has more orange formulation than other brand.

Once they have chosen a desired position to their consumers mind, it takes strong steps to deliver and communicate that position to target consumers. And the company’s entire marketing program supports the chosen positioning strategy.

Consumers prefer these because of the brilliant taste they get in the first sip. Everybody recognizes coca cola and Fanta and this is all because of the success of their brand.

Abdul Monem Limited (Product Mix/width)

3 oz. citric acid

Product mix:

1. Coke: -Can, pet bottle (1 liter, 1.5 liter, 2 liter), glass bottle (250ml, 1 liter)

2. Fanta:-Can, pet bottle (1 liter, 1.5 liter, 2 liter), glass bottle (250ml,1 litre)

liter) 3. Sprite:- Can, pet bottle (1 liter,1.5 liter,2 liter), glass bottle (250ml, 1 liter)

4. Sunfill:- Glass bottle (250ml)

Product levels:

There are three levels of product level. Core product, Actual product,& augmented product. Each level adds more customer value.

Actual product

Core benifi

t

Augmented Product

Coca Cola:

The first product level is core benefit. When designing the product Coca-Cola, the marketing department of Abdul Monem Limited first defined the core benefit which is “What the buyer is really buying”. Coke is like refreshment to the people. Coke is the soft drink that gives everybody more energy because it has the highest level of caffeine. Here, Abdul Monem Limited is manufacturing beverage but they are selling quality refreshment with satisfaction and lifestyle.

The product planer turned the core benefit into an actual product. Here, Abdul Monem Limited developed Coca-Cola’s features & design and made it an exclusive beverage with the brand name “Coca-Cola”. “Coca-Cola means quality, quality is our motto” this mission statement proved as Coca-Cola turned into no. 1 position.

Finally, product planner builds an augmented product around the core benefit and actual product. By offering sales promotion to the consumers, they also built an augmented product by giving them a completely unique taste of soft drink to the consumers.

Fanta :Fanta has a nice tangy, fizzy and refreshing orange taste to it. It is a drink produced by the Coca Cola Company and drinks are bottled by Coca Cola Enterprise Ltd. Fanta will be the first flavor in the Fanta family to have 100 percent natural flavors, while offering the great taste.

Abdul Monem Limited also developed fanta’s features & design. Fanta’s formulation is carbonated water, high fructose corn syrup, citric acid, sodium benzoate, modified food starch, natural and artificial flavors, sucrose acetate isobutyrate, sodium polyphosphates, coconut oil, yellow 6, brominated vegetable oil, red 40, dioctyl sodium sulfosuccinate. Fanta has changed over the years, now it has added Sugar and sweeteners.

Augmented product is by giving people 100 percent pure fizzy fruit taste. Fanta is best served ice cold which is true it has a fresh taste when it's cold, when left in the room its flavour isn’t great compared to the chill taste of Fanta.

Price Abdul Monem Co. Limited is the bottling agent of the Coca-Cola Company in Bangladesh.. The Coca-Cola Company (USA) fixed the price of coke for their companies. And the prices of all the flavored drink of different pack size are the same. And if they Abdul Monem Limited launch a new product their pricing strategy is going to

be the same. Abdul Monem cannot increase their product’s price. If The Coca-Cola Company gives permission to Abdul Monem Limited to increase their product’s price then only they can increase it. Previously there was an association of competitors but now there is no association.

From the survey the researchers found that most of the consumer said that the price of Coke and fanta are reasonable.

Place: Place includes the company activities that make the product available to the target consumers. Coca-Cola and fanta are distributed over 200 countries of the world. In Bangladesh, there are two distributors of Coca-Cola, one is Abdul Monem Company and and another one is Tabani Beverage Company. They have divided the total distribution area among themselves. Abdul Monem Company distributes Coca-Cola in Chittagong, Sylhet and Khulna. They cover the 40% of the total distribution. Tabani beverage distributes these in Dhaka and Rajshahi. They cover 60% of the total distribution. In Dhaka city now they have 40 distributors. The total distribution area of Dhaka is also distributed in some sub-segments and each segment has one or more distributors to supply Coca-cola fluently. As example- in Mirpur they have five distributors, in Dhanmondi two distributors and in new market 1 distributor. Tabani beverage has its own transportation to supply Coca-Cola. From the survey of the retailers, it has found that Coca-Cola is available in almost every shop, departmental stores or in grocery shops. But in maximum fast food joints.Especially fountain fanta and coke are not available.

But recently after the row against Coca-Cola & Tabani beverage, Abdul Monem Limited is the sole provider of Coke products in Bangladesh

Products of Tabani Beverage

Price (250ml) Consumer

Price (250ml) Retailer

Price(1liter)

Consumer

Price (1 liter)

RetailerCoke 12Tk 10 Tk 40 Tk 37 Tk

Fanta (orange, lemon)

12Tk 10 Tk 40 Tk 37 Tk

Promotion

Coca cola Company does their promotion in the following ways

Advertising is a paid-for type communication in which the sponsor is clearly identified. The most common media of coke is T.V & the channels are (Ten sports,AXN,Star Plus, BTV, ESPN )which comes frequently before, after and also in between the programmes and it is also a very popular media and others are newspapers(Prothom alo, Daily star ,Ittefaq ect )mainly gives when sales promotions are given by the co. & magazines ie (Anondolok, Play boy).

Sales promotion is designed to supplement advertising & coordinate personal selling. Fanta and Coke always offer attractive sales promotion to attract it consumers to its product. It also displays Billboards in different places (mainly in mirpur where the factory is located.)

Packaging: Packaging involves designing and producing the containers and wrapping the product. Packaging can be divided in two ways.

Primary packaging includes these crate size in which 24 of 250ml or 12 of 1000ml is loaded and secondary packaging by itself.

There is also a matter of product safety, which has become a major packaging concern.

Abdul Monem Limited is highly concerned about their products that are it should be

hygienic. Abdul Monem Limited washes the bottles with fully automated machines,

Which washes the bottles with hot water and other soap type materials? All the washing

and bottling procedures wind up without any touch of hands that is the process is fully

automated. And their bottling procedure is also very hygienic.

Publicity Publicity is similar to advertising. For publicity coca cola company sponsor charity events games. Coca cola released many cassettes of Band music.

Sales promotion encourages to purchase or sale of a product or service. Actually sales promotion offers the reason to buy now. Tabani beverage spends more than 5% sales revenue in advertising. They give some important sales promotions to the retailers. From the survey of both Tabani beverage and the retailers, the researchers has found that Tabani beverage gives two bottles free with 250ml and 175ml crate (containing 24 bottles). Again, one bottle is free with 1 litter crate (containing 12 bottles). However, this promotion is not given with every trip in everyday. It is given once a month to hold and reward the loyal retailers. Tabani beverage usually does not provide much fountain machines or signboards to the fast food joints or the departmental stores.

Tabani beverage does not advertise more in television or newspapers. Because according to Tabani beverage, as coke and fanta is already a very popular beverage, they do not need to advertise more. But they give consumers sales promotion to increase their business. Tabani Beverage gives consumers discounts, premium, scratch card etc. They called this type of sales promotion as liner sales promotion.

Public Relation:This is the overall relationship of Coca cola Company with the consumer. This is how they serve the consumer by understanding the underlying need of the consumer. This is includes serving from highest to lowest level. The company also handles any rumor or any negative situation here.

Politics:

This problem is the main problem in Bangladesh. If the government changes the business strategy of the countries is also changed. It is very harmful for any company. Though Coca-cola is a renowned company, they also face this problem. In other countries, the Govt. doesn’t change in foreign affairs and business strategy. For that reason, those countries are developed quickly. But in Bangladesh, Govt. changes the strategy of previous Govt. This company handles this problem tactfully.

Conclusion:

Coke is one of the prominent companies in Bangladesh. The present condition of Coke is good, it has already captured 43% share. Its good quality of taste & packaging attracts people. Fanta has also a strong brand positioning in the consumers mind. However, this two beverage product has many strengths but fewer weak points & threats. Therefore, management should try their level best to overcome its weakness (increase advertisement & sales promotion) & its threats to prove its strengths with other competitors. If they do so, it can be able to capture more market share & compete with its competitors. They now produce more than 10 million cases in every year and pay taxes like value added tax, supplementary tax regularly to the government. They pay taxes more than 50core taka in every year.

Problems facing the Coca-Cola Company

Problems that the coca-cola company is facing while doing business are the following. Advance Technology:

In the recent world technology changes every moment, so it is very difficult for the companies to cope up with the changes technology every time. Because when

advance technology innovates they are more costly comparable to other technologies those are exists. So it is not possible for the company to bear these expenses every year to match with the changes technology.

Regulations and duty : Every country has the rules and regulation for business. In developed country if the

Govt. changes they don’t change the business policy. But in our country if the Govt. change, they change the rules and regulation. For that reason, many organizations don’t want to do business in Bangladesh. The process of bureaucracy is continuing for a long time in our country. This is the disadvantage of Govt. regulations. The coca-cola company also faces this problem in Bangladesh. The rate of change of duty is also a problem for doing business. Though this company does not give any tax to the Govt. but they give the duty of product. If the duty increases, the price of product should increase. In recent budget the Govt. decrease 5% custom duty but increase regulation duty 20%. For this reason, they increase their product price. Strike:

Strike is one of the major problems in Bangladesh. Maximum time the political situation is unstable. The political leaders of Bangladesh do not think about the harm ness of unstable political situation. Foreign companies always fear about the political situation. Many times political groups call hartal, strike etc. In that time the business could not run in own way. The office is closed in hartal day. In that day, they cannot work. For closing the work they face heavily loss. They could not deal delegates or business partners. All the foreign company faces this problem varies much in our country. This company also faces this problem in our country. In hartal day, they keep close all of their official work. For avoiding loss, they do their officials work in holiday.

Export – Import : For doing business in any country, the export – import policy of host country

plays a vital role. Every country has the export – import policy for business enterprise. They make the policy according to their benefits. Some times it becomes beneficial for exporter and importer. Custom duty also include in export – import policy. Comparatively custom duty is relatively high in Bangladesh and company bear extra expenses than other country.

Coca-Cola co. in Bangladesh faces problems and their solutions:

There are a huge percentage of sales that decreases in the last few years. To cover this percentage up they must increase their sales with the help of sales promotion, liner promotion etc.Lack of advertising is another main problem of Abdul Monem Limited. Now they are in a good position, but to hold this position constantly they have to advertise more. Because their target is should to capture the position not only for now but also for future. Abdul Monem Limited has no web site as other competitors have their own personal web sites. So they have to launch their own web sites. To create professionalism in the organization the management of the company has to trainings to their employees. They have to put attention more in sponsorship.

Survey Questions & findings:

The survey was done on around 50 consumers. Their opinion, overall view point, judgments are given below in terms of pie charts for better understanding and it is also figured out what they actually want:

1. People prefer soft drinks in terms of brand 12%,color 0%,test 52%,quality 26% &price 10%.

2. Who do you think is the first competitor of coca cola? Pepsi 62% ,RC 20%,URO 6%, Pran 4%, Virgin 8%.

3. If the people were given a free soft drink, which one would they choose? Pepsi 3%,RC 14%, URO4%Pran 8%Virgin 4%Coca cola 65%,Others 2%

4.”Dil thanda to dunya thanda”which companies slogan is this?PEPSI 4% , RC 2% , URO 6%,PRAN 0%,VIRGIN O%,COCA COLA 88%.

5.Do you think the people get to drink Coca cola wherever they want it? YES 72%,NO 20%,NO COMMENTS 8%.

6.Which drink is mostly preferred by the people under Coca cola brand? COKE 42%,SPRITE 42%,FANTA 12%,SUNFILL 4%.

Principles of Marketing by Philip Kotlar Analysis from customer survey.

Web sites:

1. www.coca-cola.com2. www.adbrands.net3. www.coca-cola features.com4. www.coca-cola history.com5. www.subliminalworld.com6. www.pepsi Vs coca-cola .com7. www.populist.com8. http://en.wikipedia.org/wiki/Coca-Cola9. http://en.wikipedia.org/wiki/Fanta

http://images.google.com.bd/images?hl=en&q=coke+cola&gbv=2&aq=3&oq=COKE

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