This presentation analyzes RC Cola in Bangladesh using Michael Porter's five forces model. RC Cola was introduced in Bangladesh in 1997 by Partex Beverage Ltd. Market research found that Coca Cola is preferred to RC Cola and Pepsi. Customers reported RC Cola has a bitter sweet taste. The analysis found threats from competition, potential new entrants, substitute products, and supplier/buyer bargaining power. Recommendations include improving features to meet market demands, adjusting pricing, enhancing quality and taste, and using different media for communication.

1. Presentation on Michael Porter’s
model on Beverage Industries of
Bangladesh: RC Cola

2. Group Members Name
Riasat (01743070849)
Ismail (01813027658)
Joti (01981997268)
Arif (01722512732)
Imrul (01672362296)

3. Company Brief
• RC Cola was first established
in 1905 by Claud A. Hatcher in
USA
• He started developing
products in the basement of
the store with a recipe for
ginger ale
• The first product in the Royal
Crown line was Royal Crown
Ginger Ale in 1905
• In 1934, RC Ginger Ale was
reformulated by Rufus Kamm,
a chemist, and re-released as
Royal Crown Cola

4. Company Brief (Bangladesh)
• In Bangladesh the chairman
of Partex Industry officially
introduced the franchise in
1997
• After Bangladesh was
established the Chairman of
Partex Industry Mr M. A.
Hashem founded Partex
Industries
• Today the industry has 20
family owned private limited
companies and Partex
Beverage is one of them

5. Literature Review
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. 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 Partex
Beverage Ltd. Therefore Partex Beverage became the
sole distributor of RC Cola in Bangladesh.
Here in this presentation Michael Porter’s 5 model has
been integrated with RC Cola.

6. Application of Michael Porter’s
Model
Rivalry
among
existing
competitors
Threat of
New
entrants
Bargaining
Power of
buyers
Threats of
substitute
product or
services
Bargaining
power of
supplier

7. Application of Michael Porter’s
Model
• Threat of intense segment rivalry: For RC Cola this is the
most threatening to cope up and survive. This condition is
leading 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 Bangladesh CSD market
• Threat of substitute products: When there are actual
substitutes of products, it is very natural to face threats
• Threat of buyers growing bargaining power: The beverage
market has full of different choices for the buyers in the
modern age. So buyers bargaining power is increasing
frequently
• Threat of suppliers growing bargaining power: Retailers and
dealers are facing problems due to the threat of suppliers’
growing bargaining power

8. Findings
• Majority of the respondents prefer Coca cola then Pepsi is
second position. RC is in the poor position by the
respondents’ brand preferences.
• Things those are influenced the respondents to choose a
beverage that is the taste
• There is a 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
• Maximum respondents customer drinking soft drink for Thirst
• TV advertisement influences mostly to purchase a beverage
product
• “Partex Beverage” is not the market leader of the beverage
market in Bangladesh

9. Recommendation
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 the 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 package etc.
• Use different media for communication

10. Reference
• https://en.wikipedia.org/wiki/RC_Cola (RC Cola
Wikipedia)
• https://www.rccolainternational.com/ (RC Cola website)
• http://www.partexbeverage.com/ (Partex Beverage
website)
• https://onlinelibrary.wiley.com/doi/abs/10.1002/jsc.764
• https://hbr.org/1979/03/how-competitive-forces-shape-
strategy
• https://www.businessnewsdaily.com/5446-porters-five-
forces.html