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INTRODUCTIONTranscom Beverages Ltd.

1.0 INTRODUCTION

Marketing is the key factor in business, whether it is a local or an international business. This report is based on the SWOT Analysis of a renowned beverage brand Transcom Beverage ltd. Under the heading of “SWOT Analysis”. As a partial requirement of Business Environment (BUS -242) and to gather real world experience, we have chosen the aforesaid topic to work on it.

1.2 OBJECTIVES

The main goal of this report is to give a summary of the SWOT analysis used by Transcom Beverage Ltd for its Drinking products. However, to be specific, the report has the following objectives:

To analyze the current soft drinks market in Bangladesh and its market segmentation.

To identify the target market of TBL To analyze the SWOT used by TBL To evaluate the success of TBL in Bangladesh.

1.3 Sources of Data

Primary data will be collected through interviewing marketing personnel of TBL and secondary data will be collected by web surfing and publishing of TBL.

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1.4 Methodology

To prepare this research paper we mainly relied on both primary and secondary sources. In case of primary sources we went through interview with an expert, an executive (mid level) and an employee. Secondary sources involve indirect way of searching. Such as-

1. Web site observation/ Internet 2. Yearly Journals 3. Published Research Paper

1.5 DATA PROCESSING AND ANALYSIS

Microsoft Word and Microsoft Excel will be used for data analysis. Final report will be submitted in MS word format and presentation will be made on MS power point format.

1.6 LIMITATION

While preparing this research paper we encountered some limitations:

Time constraints Unavailability of mobile policy framework in Bangladesh Technical constraints

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Lack of co-ordination of the sources Lack of reliable data

1.7 DISTRIBUTION OF RESULTS

The ultimate objective to prepare this report is to get to know the real world scenario, so the result will be presented to the interested students, and teachers after the completion of the report.

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2.0 BACKGROUND OF TRANSCOM BEVERAGE Ltd.

2.1 HISTORY

Transcom Group

Transcom group started its journey in 1885 through tea plantations. This diversified business house now has interests in many segments in the industrial and service sectors in Bangladesh.

Some of the brands managed by the group include: Pepsi, 7-Up, Mirinda, KFC, Pizza Hut, Phillips N.V, Whirlpool, Maybeline, Garnier, Heinz, Frito-Lay, Lindt, Servier, Novo-Nordisk.

Other aspects of the business include:

Pharmaceuticals (Eskayef Bangladesh Ltd. www.skfbd.com)Newspapers (Prothom Alo www.prothom-alo.com & The Daily Star www.thedailystar.net)Radio (ABC Radio) Distribution (Transcom Distribution Company ltd.

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7UP won the award of “No.1 Soft Drink” in Beverage Category by Bangladesh Brand Forum.

Transcom Bevareges ltd. On the basis of an exclusive Franchise for Bangladesh from Pepsico USA, TBL acquired three modern bottling plants at Dhaka, Chittagong and Bogra from BBIL, Dhaka; EBIL, Chittagong and NBIL, Bogra; in March 2000. TBL manufactures the famous Pepsi range of beverages-Pepsi, 7up, Mirinda Orange, Mirinda Lemon, Slice and Soda. As a corporate citizen Pepsico believes it has a responsibility to contribute to the quality of life in our communities. TBL has put into action this philosophy through support of social agencies, projects and programs and the scope of this support is extensive and it has not been difficult to blend with this philosophy since the TRANSCOM group also followed such a corporate ideology.

PepsicoPepsi is a carbonated soft drink produced and manufactured by PepsiCo. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1898.

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“Bottler of the Year Award” for 2009

Origins

The pharmacy of Caleb Bradham, with a Pepsi dispenser, as portrayed in a New Bern exhibition in the Historical Museum of Bern.

It was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb Bradham, who made it at his pharmacy where the drink was sold. It was later named Pepsi Cola, possibly due to the digestive enzyme pepsin and kola nuts used in the recipe.[1] Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy.

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race". The advertising theme "Delicious and Healthful"

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was then used over the next two decades. In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered bankruptcy - in large part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark. Eight years later, the company went bankrupt again. Pepsi's assets were then purchased by Charles Guth, the President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replace Coca-Cola at his stores' fountains after Coke refused to give him a discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula.

On three separate occasions between 1922 and 1933, the Coca-Cola Company was offered the opportunity to purchase the Pepsi-Cola company and it declined on each occasion.

Pepsi-Cola trademarkThe original trademark application for Pepsi-Cola was filed on September 23, 1902 with registration approved on June 16, 1903. In the application's statement, Caleb Bradham describes the trademark as an, "arbitrary hyphenated word "PEPSI-COLA," and indicated that the mark was in continuous use for his business since August 1, 1901. The Pepsi-Cola's description is a flavoring-syrup for soda water. The trademark expired on April 15, 1994

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2.2 PRODUCT AND SERVICE OF THE COMPANY

The company is the exclusive PepsiCo Franchisee for Bangladesh. TBL owns and operates modern plants in Dhaka and Chittagong for bottling the renowned soft drink brands: Pepsi, 7Up, Mirinda, Slice, Mountain Dew, Pepsi Diet and 7Up Light.

2.3 PROFIT AND LOSSES OF TB

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The market size of soft drinks in Bangladesh is around TK.950 Crore per year. Among all soft drinks company, Coca-Cola is the market leader for many years. It was popular in the past time and still it has popularity among the large population of Bangladesh. It obtains 31% market share. After Coca-Cola, Pepsi was the second one; but now Pepsi , the market share of Coca-Cola has been reduced to 22%. Pepsi has been able to move its way up and for the last two years it has been holding the 1st position with 30% of the total market. The others like 7Up, Mirinda, Slice, Mountain Dew, Pepsi Diet and 7Up Light each have market shares 32%. And other company has 16%.

30%

21%

32%

16%

Sales

PepsiCoca-cola7up & other Others

Graph 0 1 : Market Share of different brand

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2.3 OVERALL VIEW OF THE TBL

Transcom Beverages Limited On the basis of an exclusive Franchise for Bangladesh from Pepsico USA, TBL acquired three modern bottling plants at Dhaka, Chittagong and Bogra from BBIL, Dhaka; EBIL, Chittagong and NBIL, Bogra; in March 2000. TBL manufactures the famous Pepsi range of beverages-Pepsi, 7up, Mirinda Orange, Mirinda Lemon, Slice and Soda. As a corporate citizen Pepsico believes it has a responsibility to contribute to the quality of life in our communities. TBL has put into action this philosophy through support of social agencies, projects and programs and the scope of this support is extensive and it has not been difficult to blend with this philosophy since the TRANSCOM group also followed such a corporate ideology.

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Chapter 03

SWOT Analysis of Transcom Beverage.

3.1Analysis Of SWOT

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.

Strengths: attributes of the person or company that are helpful to achieving the objective(s).

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Weaknesses: attributes of the person or company that are harmful to achieving the objective(s).

Opportunities: external conditions that are helpful to achieving the objective(s).

Threats: external conditions which could do damage to the objective(s).

Identification of SWOTs are essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.

The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.

Each and every organization has many strength and weakness. As well as have some opportunity and threat. They are graphically showed below.

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StrengthGood reputation among customersValue pricing Strong financial positionHigh profit marginEfficient work forceEfficient distribution channelWide range of productsHigh quality of productHighly standardized safety programsHigh ethical value and standard business practice

WeaknessLack of brand awarenessLow promotional activitiesNo advertisingLengthy process in taking major decisionHigh price of productsHigh maintenance and production cost

Opportunity

Only MNC in Bangladesh for selling electrodesLocal competitors have poor productsMarket leader

Threat

Access pricing from customer point of viewNew competitor in marketWorld economics crisis

Figure- 9: SWOT analysis of Transcom Bevareges Limited.

The company has some strength, weakness, opportunity, and threat. And all the element of the SWOT analysis is discussed below.

3.2 Analysis of Strengthwww.AssignmentPoint.com

Pepsi has a broader product line and outstanding reputation.

Merger of Quaker Oats produced synergy across the board.

Record revenues and increasing market share. Lack of capital constraints (availability of large free

cash flow). Great brands, strong distribution, innovative

capabilities PepsiCo sells seven types of bevareges through the

same distribution channel. For example, combining the production capabilities of Pepsi, 7up and Mirinda, Slice, Mountain Dew is a big opportunity to reduce costs,

Strong Mother Company & that has many busines

3.3 Analysis of Weakness

• Pepsi hard to inspire vision and direction for large global company.• Not all PepsiCo products bear the company name• PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic.

3.4 Analysis of Opportunity

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• Food division should expand internationally• Noncarbonated drinks are the fastest-growing part of the industry• There are increasing trend toward healthy foods • Focus on most important customer trend - "Convenience".

3.5 Analysis of Threats

• F&B industry is mature• Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g in India• Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn• PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of broader product line) which are well-run and financially sound competitors. • Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains.

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Chapter 04

4.1 Findings

After SWOT analysis, we find the Beverage companies are too much high business at Bangladesh. We know that Pepsico is the renouned company in world market. On the basis of an exclusive Franchise for Bangladesh from Pepsico USA, TBL acquired three modern bottling plants at Dhaka, Chittagong and Bogra from BBIL, Dhaka; EBIL, Chittagong and NBIL, Bogra; in March 2000. TBL manufactures the famous Pepsi range of beverages-Pepsi, 7up, Mirinda Orange, Mirinda Lemon, Slice and Soda. So we say that TBL run the well business at Bangladesh.

4.2 Suggetion and Recommendation

Now Beverages company are toomuch competitive so they need to increases their product quality. They need to prvide

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their product at low price. They useses their exclusive policy at big resturent. So the teset of that product is toomuch high. They need to produceded at local people.

4.3 Conclution

Transcom Beverage Ltd. has been successfully marketing Pepsi products. It has already captured the first position in the soft drink industry. Its main competitors still remain the two giants - Coca-Cola and RC. However, Pepsi has succeeded in introducing the innovative PET bottle first and offering its products in a much lower price than its rivals. And always it gives us different flever . Thereby, the increasing popularity of the brand among the local people seems to foretell greater success for TBL and the rooting Pesi as the desired brand of beverage of the entire Bangladesh.

Transcom Beverages Limited has introduced 250ml “Go” pack PET (Plastic) bottle for Pepsi, 7up, Mountain Dew and Mirinda Orange. These are now available in outlets near you.

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1. Del I. Hawkins, Roger J. Best, Kenneth A. Coney, “Consumer Behavior: Building Marketing Strategy,” 9th ed, McGrawHill, 2004.

2.Essentials of Business Environment. By Temmothy A. Jorzh

3. http://pepsi.com/

4. www.transcombd.com

5. Pepsi

From Wikipedia, the free encyclopedia

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References

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