In Partex beverage industry MUM is one of the market leading mineral water product. On the other side Partex beverage is the manufacturer of RC Cola (Royal Crown Cola) as well. RC Cola, the soft drink that used to be one of the most popular soft drinks around 2009. But the product dramatically has been demonized by the strong competitors. Now a day the organization is trying to overcome their situation by new innovative strategies through knowing their market needs and satisfactory factors. While doing Internship work I had this significant opportunity to know about this challenging situation.
To identify the factors those are responsible for brand performance of soft drink markets in Bangladesh.
To measure the brand performance of Rc Cola brand of Partex beverage.
To provide some suggestion on the basis on the research findings
3. Submitted To:
Mr. Monirul Hasan Masum
Assistant Professor
Department of Marketing
Bangladesh University of
Business and Technology (BUBT)
Submitted By:
Rizwan mahbub khan
ID: 12132101051
Intake: 30st
Program: BBA
Department of Marketing
3
5. Background of the study
As a part of BBA program, every student has to undergo an “Internship Program” after
the eleven semesters and submit an “Internship Report” to the department. I have
completed my internship successfully in the “PARTEX Beverage Limited”. I had the
opportunity to observe the overall aspects of that organization during this Internship
program.
In Partex beverage industry MUM is one of the market leading mineral water product.
On the other side Partex beverage is the manufacturer of RC Cola (Royal Crown Cola)
as well. RC Cola, the soft drink that used to be one of the most popular soft drinks
around 2009. But the product dramatically has been demonized by the strong
competitors. Now a day the organization is trying to overcome their situation by new
innovative strategies through knowing their market needs and satisfactory factors.
While doing Internship work I had this significant opportunity to know about this
challenging situation.
5
6. Objectives of the study
• To identify the factors those are responsible for brand performance
of soft drink markets in Bangladesh.
• To measure the brand performance of Rc Cola brand of Partex
beverage.
• To provide some suggestion on the basis on the research findings.
Significant of the study
I wanted to gather practical knowledge from my internship program of
BBA from Bangladesh University of Business and Technology. After
successful completion of all the requirement of BBA, students are sent to
different business organization to face real situations. So I was placed
in Partex Beverage Ltd, for applying both of my theoretical knowledge
and practical experience during the internship period.
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7. Methodology of the Study
The report is based on both primary and secondary data. But maximum data used
in this report are collected from secondary sources. Exact sources of the
secondary sources will be mentioned. Thus the report is basically qualitative in
nature. However, primary data is also used depending on the requirement.
Research design: It is a descriptive research design.
Sources of data :
Primary data
The primary data were collected on the basis of:
• Questionnaire Survey
Secondary Data
The secondary data were collected on the basis of:
• Internet
• Newspaper
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8. Sampling Plan
Population: All the customers who have consumed soft drinks.
Sample elements: Individual customers who have consumed soft drinks.
Sampling Frame: There was no sample frame found.
Sampling procedure: Non- probability convenience customers.
Sample size: Sample size in this research is 50.
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9. Limitations of the study
• The major limitation in this report was primarily the reluctance of
relevant sources to release confidential information.
•The primary data received from the respondents, they might be verified
and biased.
•Time and Budget did not allow an extensive research.
•No archives or databases in the sector.
•No organized study is available regarding turning around strategy of
beverage industry in Bangladesh
•The secondary data could not be verified.
•The analysis and future projections presented here may vary with
opinions of experts in this field of study.
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11. Bangladesh is a country with 156.6 million people (according to Bangladesh
Bureau of Educational Information and Statistics). The increasing number of
population is increasing more opportunity to business. But there are
consequences like facing strong number of competition and issues to assure
about quality product to attract the market. After the independence of the
country the food habit have changed a lot as well.
Usually beverage foods mean any drinks other than water like carbonated
drinks or lacchi. The focused report is based on RC cola, which is one of the
major beverage foods of Partex Beverage.
RC Cola (Royal Crown Cola) mainly is a U.S. company, was introduced in
1905. In Bangladesh the chairman of Partex industry officially introduced the
franchise of RC Cola in 1997.
There are several reasons for this declining market and this report has been
conducted to focus on those issues and recommend some new ideas to re-gain
the market stage of beverage industry of Bangladesh.
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12. Brief History
Origin of Partex Beverage:
Partex group started modestly in 1959 in tobacco trading and with prudent
entrepreneurship of founder Chairman Mr. M.A. Hashem. At present the
group of industry has a stake in tobacco, food, water, soft drinks, steel
container, edible oil, wooden board, furniture, cotton yarn and IT sector.
After Bangladesh was established the Chairman setup M/S Hashem
Corporation (Pvt.) Ltd. in Chittagong city meeting the large demand of food
and materials needed for sustaining the needs of a new nation through
imports. From importing to import substitution was the next logical step and
the stepping stone into the manufacturer sector, which was matured to the
multimillion dollar diverse investment of the Partex Group today. Today the
group has over twenty family owned private limited companies with a
sizable turnover. Partex Beverage Ltd. is just a part of this huge business
industry.
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13. Partex Beverage Ltd as the manufacturer of RC
Cola:
In 1994, Mr. M. A. Hashem, Chairman of Partex Group visited an
International Trade Exhibition in the USA, 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.
When he returned, a wide range of marketing research was carried out by
Partex as well as RC International. After positive results, in 1996, the
Corporate Head and the Directors formed PBL 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.
Now it has been almost 17 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
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14. 14
Partex Beverage Ltd as the manufacturer of RC
Cola:
Mission: ‘We delight our customers with superior quality product
through flexible operations.’
In order to support the mission, Production department is performing the
following activities successfully:
• Support brand portfolio / new product launch.
• Availability/product harmonization.
• Quality/ meet international standards
• Low cost producer.
Backward vertical integration:
Partex Beverage requires most of its suppliers to deliver raw materials
just in time for using on its production line. They only need CSD
chemical which they use for flavor and perform for bottling. Other than
that they produce everything here with their automated machineries. They
usually buy those raw materials from suppliers twice a year.
16. 16
Distribution Process
Regional Go-Down:
There are three regional go-downs throughout the country to fill
every regional demand just at the time of need and to overcome
various uncertainties related to physical distribution of products.
Distribution Warehouse:
All distributors have their own warehouse, where RC can be kept
safely while not degrading its product quality.
Opening Stocks at Distributers Office:
Apart from the warehouse. every distributor also maintains another
stock at their office. This stock is for maintaining any change in
market demand instantly.
Delivery Van:
All the delivery vans are owned by the dealers to assure the
supply of RC on the door of wholesalers and retailers to their
demand.
Retailers:
Retailers are at the end of the physical distribution system of
cigarette Selling products directly to the consumer.
17. 17
Impact of Competitors for RC Cola
According to Michael Porter, five forces that determine the intrinsic
long-run attractiveness of a market segment,
• Industry Competitors
• Potential Entrants
• Substitutes
• Buyers
• Suppliers
18. 18
Threat of intense segment rivalry:
For RC Cola this is the most threatening part to cope up and survive.
This condition is leading this product to expensive competing war.
Threat of new entrants:
In Bangladesh the entry barrier is low as any beverage company
won’t face too much trouble to enter in Bangladesh CSD market
Threat of substitute products:
When there are actual substitutes of products, it’s very natural to face
threats.
Threat of buyer’s growing bargaining power:
The beverage market has full of different choices for the buyers in
this modern age. So buyers bargaining power is increasing frequently
Threat of suppliers growing bargaining power:
During doing this internship report one common complain of
retailers and dealers (Sales executives).
20. Brand:
Brand is a name , sign, symbol, or design, and some combination of those
element , intended to identify the goods and services of one sellers or group
of sellers and differentiate them from those of competitors.
Elements of Brand:
• Thorough market research
• Likable brand personality
• Memorable logo
• Attractive color palette
• Professional typography
• On-brand supporting graphics
Brand Performance:
Brand performance is the result of desirability and profitability in a brand. Brand
performance delivers top-line growth while reducing costs to improve the bottom
line.
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21. Brand performance matrix:
Metrics are an integral part of the brand strategy process. They are the key
to understanding the drivers of brand strength and equity.
Why Metrics Matter:
In today’s commoditized marketplace, where it is increasingly difficult to
differentiate your own products from competitors’, brands are recognized as one
of a company’s most valuable intangible assets.
Categories of Brand Metrics
Three common categories of brand metrics are: 1) behavior metrics—what
employees inside the organization do to advance a brand, 2) perception
metrics—the way a brand is viewed by its customers and other key stakeholders,
and 3) performance metrics—the financial and other business measures that
propel a company forward. Understanding these three categories, along with the
types of metrics each encompasses, is essential to developing a brand scorecard
in conjunction with a marketing dashboard to measure their return on marketing
investments.
.
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22. 22
Behavior (What you do):
Behavior metrics incorporate both internal (management and employees)
and external (market) factors. Internal branding reinforces corporate
culture, aligning it with leadership and business strategy
Perception (How you’re viewed):
Brand Funnel. Are customers aware of your brand and is it relevant to
them? Although the traditional model of a straightforward funnel — with
well-known brands entering at the awareness and consideration stages.
Performance (What you achieve):
Brand performance is an important measure for organizations to monitor
how the brand is performing relative to overall business goals, and is
measured from both a financial and customer perspective. Performance
metrics assess how customers think and feel about the brand.
24. 24
Findings of Customer Survey:
For any kind of product the first priority goes to respondents customers. The
need of customers, the demand of respondents customers and perception of the
respondents should be always concerned in case of making any strategy.
In this report the main target is to find out strategy to improve struggling
situation of RC Cola. So at first I need to know what people think about this
product. Why people hate this product? Or why people are unwilling o buy RC
Cola? What do they want from this category of product?
To understand the customer mind a survey based on respondents has been
taken. Total 50 interviews of respondents have been taken.
25. 25
Q-1: usually purchased soft drink
From the figure it is found that out 50 Respondents, 24.55% Cococola,
7.19%pepsi, 13.77% 7up, 5.99% Sprite, 7.19%Fanta, 13.76% Mirinda,
11.38%slice , 4.19%Rccola, 1.2%clemon, 4.19%mojo. About 25% of the
respondents usually purchases Coca Cola soft drink, where only 4.19% of people
buy RC Cola. Here the rivalry between RC Cola and Mojo has become very
clear to understand.So, it can be said that majority of the respondents usually
purchased coco cola soft drinks.
0
5
10
15
20
25
30
purchased soft drinks
Sales
Figure :Purchased of Soft drinks
26. 26
Q-2: Reason of liking specific soft drink:
From the figure it is found that out 50 Respondents, 83% like soft drinks because of
Taste,12% for Availability,3% for pricing and2% for packaging. So, it can be said that
majority of the respondents like specific soft drink for it taste.
Figure: Reason of liking soft drink
83%
12%
3% 2%
Taste
Availability
Price
Packaging
27. 27
Q-3: Customer loyalty for soft drinks:
From the figure it is found that out 50 respondents Here,41%are try to find in
different store,12% do not buy any product and 47% are buy other soft drinks.
Respondents is hard to break that loyalty and concern those respondents to their
own products. In case of soft drink market this survey shows that there is
opportunity to convert target customers. So, it can be said that majority of the
respondents are buy other soft drinks.
0
10
20
30
40
50
Try to find in
different store Don’t buy any
product Buy other soft drink
41
12
47
Figure :Customer loyalty for soft drinks
28. 28
Q-4: Perception toward price:
From the figure it is found that out 50 Respondents,47% of the respondents think
RC Cola has reasonable price. 38% of them have no idea about comparative price
of RC Cola and 15% thinks that price is not reasonable. Here the people who think
that RC Cola’s price is unreasonable are mostly students. According to them some
time low price explains the low quality of product. So, it can be said that majority
of the respondents Rc cola has a reasonable price
47%
15%
38%
Reasonable Unreasonable No Idea
Figure :Perception towards price
29. 29
Q-5: Preferred flavor for soft drink:
From the figure it is found that out 50 Respondents prefer 45% cola flavor,24%
orang,12%lemon,15% clear and 3% other flavor. So, it can be said that majority of
the respondents prefer the cola flavor
0.45
0.24
0.12
0.15
0.03
Cola
Orange
Lemon
Clear
Other
Figure :Preferred flavor for soft drink
30. 30
Q-6: Reasons of consuming soft drinks
From the figure it is found that out 50 Respondents drink soft drinks for,27%
Festivals,28% Taste,10% Habit and 34 % drink for Thirst. So, it can be said that
majority of the respondents drinks soft drinks for thirst.
Thirst
Habit
Taste
Festivals
0.34
0.10
0.28
0.27
Thirst Habit Taste Festivals
Figure :Reasons of consuming soft drinks
31. 31
Q-07: Product recognition source
From the figure it is found that out 50 respondents ,53% TV ad,5%bill
board,2%radio,2% paper l2%,and 37%friends/family.In spite of all the busy time of
people of Bangladesh, they are still very fond of television.So, it can be said that
majority of the respondents recognize their favorite soft drink by TVC
………………………………………………………………………………………
53%
5%
1%
2%
2%
37%
Television advertise
Bill board advertise
Radio advertise
Paper advertise
Social websites
From friends/family
Figure :Product recognition source
32. 32
Q-08 preferable promoting media
From the figure it is found that out 50 Respondents, 79.59% prefer TV, 1.02% radio,
12.24% newspaper and 7.14% prefer others.
So, it can be said that majority of the respondents prefer Television advertisement as
promotional media.
79.59
1.02
12.24
7.14
Television
Radio
Newspaper
Other
Figure :Preferable promoting media
33. 33
Q-9: Comments by Customers:
From the figure it is found that out 50 Respondents, Here,38% no comment ,5%more
availability,13%need promotio,21%improve taste,11%mprove packaging and20%
improve quality. There is strange similarity of comments of the customers respondents
for RC Cola. 21% of them said that RC Cola has a bitter sweet taste and suggested to
improve this taste.
Improve quality
Improve packaging
Improve Taste
Need promotional activity
More availibility
No Comment
0.20
0.11
0.21
0.13
0.05
0.31
Improve quality Improve packaging
Improve Taste Need promotional activity
More availibility No Comment
Figure :Comments by customers
35. Major Findings
After analyzing the data from my research questionnaire there are some
findings which are presented below
• Majority of the respondents prefer Coca cola then Pepsi is in second
position. RC is in the poor position by the respondents’ brand preference.
• Things those are influenced the respondents to choose a beverage that is
the taste.
• Majority of the respondents buy the other soft drinks.
• Most of the respondents think RC Cola has reasonable price.
• Majority of the Respondents like to Cola flavor.
• Maximum respondents customer drinking soft drink for Thirst.
• TV advertisement influences mostly to purchase a beverage product.
• Most of the respondents prefers television advertise as promoting media
of soft drink.
• There is strange similarity of comments of the customers respondents for
RC Cola. 21% of them said that RC Cola has a bitter sweet taste and
suggested to improve this taste.
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36. .
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• For Coco cola andPepsi is the most popular brand where RC cola is the poor
popular brand in our country.
• ‘Partex Beverage’ is not the market leader of the beverage market in
Bangladesh.
When this is the situation of the beverage market in our country then Partex
beverage’s positioning in the mind of respondents customers is not at a
satisfactory level. They have less effective communication; don’t focus different
customer segments, which are effectively done by Coca cola and Pepsi.
38. Conclusion
In the extremely competitive FMCG (Fast Moving Consumer Goods) industry
the respondents contribute the major role. In marketing sector respondents are
part of industry. Researcher find out from this study that respondents
customer’s insight and the pattern pressure the reference group influence on
the respondents customers to buy a soft drinks. In carbonate beverage
industry it seems that different soft drinks companies come up with
innovation and creative strategy to cope with the dynamic customers.
Different research firms and corporate research department do the research to
gather knowledge about the customers and take steps to achieve their mission.
It is got that from this study, not all the factors studied have the same power to
influence the customers and at the same breath different customers consider
different factors in different way. So marketers prerequisite to take those
variables that influence all the respondents in different scale.
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39. Recommendations
The whole report is about brand performance to an average or good market
situation of RC Cola to the manufacture PBL. Through all the chapters
analysis the weaknesses, threats and the gaps of both the internal and external
have been find out.
So by conducting the research carefully the following recommendations are
provided to the producer –
• Improve features as per the current market demand and effectively focused,
so respondents will interested to purchase.
• They should Pricing their products such a manner that it will not too
expensive but most of the features are included.
• Quality need to be improved.
• To improve different features like taste, attractive packaging etc.
• Use different media for communication.
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