PART 1

INTRODUCTION

1. Introduction
1.1 Background: Our world is now in modern globalized era. At this 21 st century our world has become speedy based on the developed technology. So the people living standard is being changed tremendously and for this many things are used for people to make their life comfort. Softdrinks are the products to make people refreshing. his report has been prepared on this product on the topic !Competitive Force o !o t Drink Indu"tr# in Bang$ade"%." his is a great opportunity to know about this industry through our report. his market is a competitive market by nature as several soft drinks companies is working in the market. heir different competitive tactics make us to learn how to survive in the competitive business market. As a student of ##A under school of business this type of knowledge is very much beneficial for us. his gives us practical knowledge about the commercial world. And therefore$ it is mandatory for ##A students to prepare reports under ##A as a partial re%uirement. &or this reason we have to prepare this report about competitive factors of #angladesh soft drink industry. Our faculty 'r. 'oniruzzaman$ (ecturer$ School of #usiness$ #angladesh )niversity of #usiness * echnology$ has assigned to us this report writing as a part of our course study. +e are sincerely thankful to him for assigning such type of a pro,ect work in a group of five members. +e hope our work will meet his e-pectation. 1.& !igni icance: Soft drink industry is very profitable and thus in our country different soft companies has emerged. he competition level among these companies is very high. hey always try to give their customers best product so that can earn loyalty. he output of this report may help to understand the situation of the current soft drink market and position of different brand of this industry. 1.'. !cope o t%e Report: his report has been asked to prepare for analyzing competitive force of .oca cola based on the customer opinion and observation the market through visiting the market closely. his report is covered by the soft drink market positioning of Coca Cola Company * the level of

its competition. /opefully this report can cover the competitive market situation of .oca .ola and how they can maintain their position in the soft drink industries. 1.(. O)*ective": 1.(.1. +enera$ o)*ective: he 0eneral ob,ective of this report is to identify * analyses the competitive force of coca cola and find out the opportunity for this product. 1.(.&. !peci ic o)*ective: o analyze the soft drink market of #angladesh o find out the local competitors of Coca Cola. o analyze the customers perception about the products and these provided services. o discuss the S+O Analysis of .oca .ola. o identify the marketing mi- of Coca Cola.

1.,. -et%odo$og#: 1.,.1. T#pe o re"earc% de"ign: 1t is a descriptive research by nature. 1.,.&. !ource" o Data: 1.,.&.1. Primar# "ource": 2ata organized by the researcher for the specific purpose of addressing the research problem. 1.,.&.&. !econdar# "ource": 2ata collected for some purpose other then the problem at hand. 1.,.'. Data co$$ection procedure: 1.,.'.1. !econdar# data: .ompany profile$ 'agazine$ 3ews paper add$ Annual reports were used as secondary. 1.,.'.&. Primar# data: .ustomer survey$ observation$ in-depth interview were conducted to collect primary data. 1.,.(. Re"earc% In"trument": 1.,.(.1. .ue"tionnaire he set of all those %uestions is our %uestionnaire of this report. Our %uestionnaire includes %uestions about the product like this43

1. 'ain competitor 2. 5roduct %uality 6. #rand convenience 7. Any steps to develop product 8. 9eason for developing product :. 5rice of the product ;. Any possibility to reduce price <. hreats of new any entry T#pe o /ue"tion": #oth close ended and open ended %uestions are used in the %uestionnaire. !i0e: 2 page an a7 size paper. Admini"ter time4 Average 1= minutes per %uestionnaire. 1.,.,. !amp$ing p$an: 1.,.,.1. Popu$ation: All the consumer of 2haka$ who drink soft drinks. 1.,.,.&. !amp$e e$ement: 1ndividual customer. 1.,.,.'. !amp$e Frame: here was no sample frame found. 1.,.,.(. !amp$ing procedure: 3on- probability convenience sampling. 1.,.1. !amp$e "i0e: Area -irpur D%anmondi +u$"an Bonani -oti*%ee$ Uttara Farmgate Tota$ Num)er Re"pondent". ',2 1,2 1,2 132 112 342 3,2 133 o

1.1 5imitation: 1. (ack of time for conducting a large scale survey. 2. (ack of customer co-operation. 6. (ack of 9ecords4 Sufficient books$ publications$ facts and figures are not available. hese constraints narrowed the scope of accurate analysis. 7. he research only covers the customers of .oca .ola in 'irpur$2haka. 8. +e have faced difficulties on getting enough information about the company. :. 2o not have enough information in their web page and annual report.

PART6&

.O'5A3> 59O&1(?

&.1. Background o Coca Co$a Compan#: he .oca-.ola .ompany is the world@s leading manufacturer$ marketer$ and distributor of nonalcoholic beverage concentrates and syrups$ with world head%uarters in Atlanta$ 0eorgia. he .ompany and its subsidiaries employ nearly 61$=== people around the world. Syrups$ concentrates and beverage bases for .oca-.ola$ the .ompany@s flagship brand$ and over 26= other .ompany soft-drink brands are manufactured and sold by he .oca-.ola .ompany and its subsidiaries in nearly 2== countries around the world. #y contract with he .oca-.ola .ompany or its local subsidiaries$ local businesses are

authorized to bottle and sell .ompany soft drinks within certain territorial boundaries and under conditions that ensure the highest standards of %uality and uniformity. he .oca-.ola .ompany has a commitment$ more than a century old$ to social responsibility through philanthropy and good citizenship. he .ompany@s reputation for good corporate citizenship results from charitable donations$ employee volunteerism$ technical assistance and other demonstrations of support in thousands of communities worldwide. &.&. 7i"ion: .oca .ola .ompany has to focus on customerAs satisfaction and value and ensures %uality of product. 1t also 0row share of customer. &ulfill customer needs and wants and 2evelop customer relationship. -i""ion: +oa$: he ultimate ob,ectives of the business strategy are to increase volume$ e-pand companyAs share of worldwide nonalcoholic ready-to-drink beverage sales$ ma-imize companyAs longterm cash flows and create economic-value-added by improving economic profit. o refresh the worldB o inspire moments of optimismB o create value * make a difference.

&.'. OR+ANO+RA- o t%e Coca Co$a Compan#.

C%airman

89ecutive Director

Financia$ : ;R Director

+enera$ -anager

Unit "a$e" manager

-arket Deve$opment -anager

-arket Deve$opment 89ecutive

Cu"tomer 89ecutive

-erc%andi"er"

&.( !<OT ANA5=!I! OF Coca Co$a: !trengt%: .oca .ola .ompany is the growing up Soft 2rinks #everage .ompany. .oca .ola .ompany is using %uality drinks to produce .ola. 1t has skill * efficient employee. <eakne"": 2haka is its main target market. here is no any branches in #angladesh to deliver the product.

(ack of promotional program for 2haka market and other market Opportunit#: he attraction of the people towards coca cola is increasing day by day.

(ack of government facility to address soft drinks. T%reat: 'any of its competitorsA prices are lower than its rate. 1ncreasing new soft drinks company in 2haka city. &., -AR>8TIN+ -I? ANA5=!I! OF COCA CO5A CO-PAN=: Product Product variet#6 .oca .ola .ompany has many types of products. Such as .ola$ .ola 0reen ea$ .ola (emon$ .ola (emon (ime$ .ola (ime$ .ola Orange and .ola 9aspberry. .ua$it#6 Several brands belong to the several %ualities on the basis of the product variety. .oca .ola has a policy to provide the best %uality products to its customers. De"ign6 .oca .ola .ompany has designed its products in well manner$ which attract the consumers positively.
9

 Feature6 .oca .ola .ompany has added various types of features into its products. (ike- (ogo of the .ompany$ 3et +eight of coca cola$ name of the flavor of coca cola$ >ear of establishment. Brand name6 1t has only one brand name that is .oca .ola$ remembered for the customers. Packaging6 .oca .ola .ompany has packaged its all brands in such way$ which protects the cola pack from sun heat$ rainfall and natural damages. 1t also attracts the customers buying perceptions. Return6 1f there is problem with the productC the company takes back those defective products without any condition. Price 5i"t Price6 .oca .ola .ompany has mentioned the price of the product into the size of bottle$ which helps the customer to know the accurate price of the product. Di"count6 .oca .ola .ompany provides discount only towards its loyal 2istributor. Credit term"6 .oca .ola .ompany provides many credit terms towards its dealers or retailers. -arket Price !ituation Coca Co$a Brand": he following list is the price of various brands of cement as on @t% Fe)ruar# &3. Per !$. No. =1. =2. =6. =7. Name o t%e Brand and "i0e .oca .ola D28=ml E .oca .ola D8==ml E .oca .ola D1===ml E .oca .ola D2===ml E Bott$e Rate ATk.B 12.== 6=.== 8=.== <=.== Commi""ion Per Bott$e 3il 3il 3il 3il

10

Promotion !a$e" promotion6 .oca .ola .ompany provides short-term incentives towards its customers. Adverti"ing6 here has so many advertising for the customer. Pu)$ic re$ation6 .oca .ola .ompany offers different types of gifts to its 2istributor and wholesaler. (ike- &ridge$ 'icro +ave$ 1ron$ #o- &an and many other attractive products to the 2istributor and wholesaler. .oca .ola .ompany offers these gifts to whole #angladesh. .oca .ola .ompany has budgeted a big amount in this segment to increase a friendly relationship with its customers$ dealers and retailers. Direct marketing- .oca .ola .ompany has maintained direct marketing by the distributor and whole seller. P$ace C%anne$6 .oca .ola .ompany distributes its products by shop. 2ealerAs use several types of cargo by which they bring the product to their selling area. Coverage6 1n +hole +orld .oca .ola .ompany is highly demanded and the company is successfully filling up the demand of target customers. A""ortment6 .oca .ola .ompany has different category of product but it is easy to carry in all over the world and %uite comfortable also. Tran"portation6 .oca .ola .ompany has its own transportation.
8nd U"er

Factor#

!a$e" Departmen t

Dea$er

Retai$er

11

he process starts from the sales department and the demand of the customers

After producing the coil from the factory distributor purchases the product from the company

hen distributors sale the products to the retailers and customers.

(astly end usersF consumers buy products from retailers

12

PART '

/?O9? 1.A( AS5?. S

13

'.1. Bu"ine"" 8nvironment: he word GenvironmentA does not merely refer to the natural or ecological environment. 1t is a generic concept which embraces the totality of environment forces which may influence any aspect of organizational activity. <i$"on has suggested three broad conceptions of the business environment. According to him the business environment may be viewed as4 An o)*ective actC a clear$ measurable and definable reality. A "u)*ective actC its particular characteristics being dependent on each individualAs interpretation and perception. 8nactedC where the division between organization and environment is not clear and where the environment is created and defined by individuals. '.&. C$a""i ication o environment orce":6 LE PEST C Analysis-

5ega$

8co$ogica$

Competitive echnological

Organizati on
!ocia$

Po$itica$ 8conomic

his analysis enables managers to assemble a logical and comprehensive picture of the environment.

14

DARTBOARD 'odel-

International Context ?conomy echnology Sector

International

0ovt.

/uman 9esource Sector

Socio .ultural Sector

Organization

&inance Sector

1nternational Sector

1ndustry 9aw 'aterials 'arket Sector

he 2artboard configuration gives the organization pride of place in the center while radiating from it are eight categories of environmental concerns. According to Peace and Robinsonhey separate a firmAs e-ternal environment into three categories4 he Gremote environmentA$ such as global and domestic$ political$ social and technological concerns this is akin to the conte-tual environment outlined above. he Gindu"tr# environmentD or its competitive forces$ threats of intense segment rivalry$ new entrance$ substitute products$ buyers growing bargaining power$ suppliers growing bargaining power. he Goperating environmentA which comprises a rather mi-ed group of actors including suppliers and customers.
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'.'.

Competitive Force":6

'ichael 5orter has identified five forces that determine the intrinsic long-run attractiveness of a market or market segment4 industry competitors$ potential entrants$ substitutes$ buyers$ and suppliers. /is model is shown below. poses are as follows45otential entrants DThreat of mobilityE he threats these forces

1ndustry competitors Suppliers DSupplier PowerE DSegment rivalryE #uyers DBuyer PowerE

Substitutes DThreat of substitutionE

1. Threats of intense segment rivalry: 6 A segment is unattractive if it already contains numerous$ strong or aggressive competitors. 1tAs even more unattractive if itAs stable or declining. 2. Threat of ne entrants: 6 he most attractive segment is one in which entry

barriers are high and e-it barriers are low. &ew new firms can enter the industry$ and poorly performing firms can easily e-it. 3ew entrants bring new capacity$ new resource and desire for market share. 6. Threat of s!bstit!te "rod!cts: 6 A segment is unattractive when there are actual or potential substitutes for the product. Substitutes place a limit on price and on

16

profits. 1f technology advances or competition increases in these substitute industries$ prices and profits are likely to fall. 7. Threat of b!yers# gro ing bargaining "o er: 6 A segment is unattractive if buyers posses strong or growing bargaining power. #uyersA bargaining power grows when they become more concentrated or organized$ when the product is undifferentiated$ buyersA switching costs are low$ etc. 8. Threat of s!""liers# gro ing bargaining "o er: 6 A segment is unattractive if the companyAs suppliers are able to raise prices or reduce %uantity supplied. Suppliers tend to be powerful when they are concentrated or organized$ when there are few substitutes$ supplied product is an important input$ costs of switching suppliers are high$ etc.

17

PART (

A3A(>S1S A32 &132130S

18

1. -arket "%are o ma*or )everage compan#: Po"ition Beverage Compan# 1st 2nd 6rd 7th abani #everage (imited -arket !%are 68H

#angladesh #everage 6=H (imited 5arte- #everage (imited 27H 0lobe Soft 2rinks (imited 11H

B everag eC om pan y
Beverage&!m'an( 40% 30% 20% 10% 0% Tabani Beverage Limited Bangladesh Beverage Limited PartexBeverage Limited l!be "!#t $rin%s Limited

&rom our analysis$ 1t is found that abani beverage company have 68H share$ #angladesh #everage company have6=H share$ parte- beverage ltd have 27H$0lobe Soft drink have 11H. &.!trateg# to attract con"umer Approac% Adverti"ement +ood /ua$it# Price Free O er Ot%er Percentage &32 (32 &,2 132 ,2

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&rom above figure$ these strategy to attract consumer on the advertisement 2=H$ good %uality 7=H$ price 28H$ free offer 1=H and other 8H.

'.T%e eature t%at cu"tomer prioriti0e E%en purc%a"e a "o t drink : Feature Ta"te Price ;ea$t% con"ciou"ne"" Ot%er Percentage (32 '32 &32 132

&rom above figure$ customer purchases soft drinks on the basis of itAs features. Such as taste 7=H$ price 6=H$ health consciousness 2=H and other 1=H. (.Con"umption rate:

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Brand Coca6co$a Pep"i -o*o

Rc6Co$a Ot%er

Con"umption rate (32 ',2 ,2

132 132

C ons um ption rate

&!ns/m'ti!n rate 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% 35%

10% 5%

10%

&!)a*)!la

Pe'si

+!,!

-) &!la

.ther

&rom above figure we see that$ consumption rate in the market .oca cola 7=H$ 5epsi 68H$ 'o,o 8H$ 9.- cola 1=H$ and other 1=H. ,.Factor t%at po""e" %ig% )arrier to enter in t%e indu"tr#: 8ntr# Barrier Co"t o e"ta)$i"%ment 89i"ting )rand popu$arit# 5ack o product innovativene"" Ot%er percentage ',2 (32 &32 ,2

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EntryBarriers
50% 40% 30% 20% 10% 0% &!st !# 0stablishment 35% 0xistingBrands1 P!'/larit( 40% La)% !# 2nn!vative 'r!d/)t 20% .ther 5%

0ntr( Barriers

&rom above figure we can understand that$ factors that posses high barriers to enter this industry. &actors are affected on cost of establishment 68H$ e-isting brands popularity 7=H$ lack of innovative product 2=H and other 8H. 1.Bu#er" )argaining PoEer in t%e indu"tr#: Bu#er" )argaining PoEer ;ig% 5oE -oderate Percentage 132 1,2 &,2

Buyer Barg ainingPower

3igh +!derate L!4

23% 54% 23%

&rom above figure refers buyers bargaining power in this industry$ high bargaining power :=H$ low 18H and moderate 28H.
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F. !upp$ier )argaining poEer in t%e indu"tr#: !upp$ier )argaining PoEer ;ig% 5oE -oderate Percentage '32 (,2 &,2

S upplier Barg ainingPower

3igh +!derate L!4

45%

30% 25%

&rom above figure we see that$ Supplier bargaining power in this industry is high 6=H$ low 78H and moderate 28H.

@.!tronge"t "u)"titute or "o t drink": "u)"titute TeaG Co ee Huice -inera$ <ater A$co%o$ic Drink" percentage &,2 (32 &32 1,2

S ubstitute
Tea5&!##ee 6/i)e +ineral 7ater 8l)!h!li) $rin%s 15% 25% 20% 40%

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&rom above figure we see that$ strongest substitute for soft drinks industry such as tea or coffee coverage 28H$ ,uice 7=H$ mineral water 2=H and alcoholic drinks 18H. 4.Pre era)$e !trateg# to "urvive in t%e market: !trateg# 5oE co"t Be"t .ua$it# -arketing !egmentation Percentage ',2 (32 &32 ,2

Above figure we see that$ companyAs preferable strategy to survive in the market these strategies are low cost strategy 68H$ best %uality 7=H$ marketing 2=H and segmentation 8H.

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PART ,

'a,or &indings

25

 'ost of the customer drinks cola flavors. hey feel prestigious as well as mobility while they drink cola. abani #everage (imited is first position in the market because they cover 68H share of total market share in this industry. 0ood %uality is important because it attracts to 7=H consumer. 'ost of consumer when purchases the soft drinks then they consider tastes of soft drinks. #ecause 7=H consumer considers about taste. 'a,ority consumer consume .oca .ola and say that .oca .ola keeps refreshing capacity * they also know the other brands of cola flavor. #ecause 7=H consumer consume .oca .ola drinks. 1n soft drinks industry entry barriers are high. Specially e-isting brand popularity is very high. 1n this industry$ buyer bargaining is also high. 1n this industry$ Supplier bargaining is low. 1n this industry have many substitute products like as teaFcoffee$ ,uice$ mineral water$ alcohol drinks etc. #ut ,uice is strongest substitutes for soft drinks. o survive in this industry then the company must have maintain various strategy. /ere best %uality strategy is important for soft drinks industry. .onsumers take other flavors occasionally when cola flavor is not available in that place. 'ost of the consumer influences by the I commercial * their most preferable I advertisement. 5rice and %uality both are important for any product. 'a-imum number of customer does use it for its reasonable price. (arge portion of customer who are using .oca .ola$ cause of its %uality and price. 'ost of the consumer e-pects free item or discount from the .oca .ola. 1f the company offers any free item or discount with their preferable cola product$ then$ they will take it more. .onsumer considers various matters when they take .oca .ola. Such as color$ taste$ brand image * price. #ut they prefer more !#rand image as well as taste" regarding cola product. Somebody consider color * price also.

26

PART 1

.O3.()S1O3

27

he demand of soft drinks is increasing day by day in developing countries like #angladesh. 1t removes our thirstiness * makes us fresh * comfort. +ith this soft drink .oca .ola is working to provide the best %uality product with a reasonable price. 1t is very much important for .oca .ola to ensure the customer satisfaction in surviving in this market as this is very competitive market and customers are both %uality * price sensitive.

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PART F

9ecommendation

29

3ow we are able to give proposal or a fair advice to .oca .ola according to our comparison between theory and what is going on currently in .oca .ola. 1n this step$ we have to shed a light over those areas which are valuable$ creative and useful for .oca .ola but they are not considering to them. 1n start of our recommendation$ we would like to add that nomination of ?OJ criteria more benefits to sales employees$ so it should be highly recommended to have it for all so as to make system fair. 9eward system is an effective techni%ue to support and change culture of the organization optimisticallyC it would only be possible if the system is e%ual for all employees of organization. +e recommended to .oca .ola management to utilize this system to all employees so as to increase effectiveness and productivity. On more important recommendation should be to design both financial and non financial rewards in a way to give a fair importance of both for top and lower levels. 9eward management of .oca .ola should be highly functional to make employees committed to organizational goals$ vales and standards$ also it should push employees in a way to boost their competencies and work understanding. 9eward management of .oca .ola should be addressed to group tasks$ as all rewards are mostly designed for individual levels like ?OJ$ make the move and sales dangle$ definitely it reduces productivity. #ecause now a days$ organizations have more curiosity towards group tasks which needs great interaction and communication between departments and it only work if all department employees rewarded e%ually. &or us$ it should manageable in a way to remove ambiguity at all levels$ so as to increase organizational efficiency. here should be criteria for employee to consider their opinions at management level respectfully. 1t should need to reduce gap between management and employees so as to increase overall results. &or us goals should be specific$ measurable$ achievable$ and realistic and time bound DS'A9 E$ it would definitely increase overall effectiveness.

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+e have to recommend .oke to design their system in specific way to define employeesA career path$ recognition and future goalsC it would definitely positively boost organizationAs performance. raining and development should be more used to .oke to groom career of their employees at all level$ they are doing on the ,ob but we recommended that a fair amount of budget should be declared for this purpose$ then off the ,ob training sessions of fifteen days or a monthly package may use to boost performance. According to our research$ they have declared 6H for rewards with respect to whole revenue$ but it is less because system is not working for all departments e%ually. +e are on the view to increase this budget to minimum 8H so as to treat all employees e%ually. ?mployees should be involved in decision making to increase %uality and productivity. +e are keen to make system significant for the sake to reduce the dissatisfaction of the employees on promotion criterion$ reduce the dissatisfaction of the employees on appraisal system$ reduce the dissatisfaction of the employees on salary$ bonus and other fringe benefits$ and improve the work performance$ improve the productivity$ reduce the level of occupational stress that arises from feeling of ine%uality on reward$ and reduce the perceptional gap on reward management system and develop a culture of high performance. hese all points beautifully e-plain the reward management system conse%uences and its more value. here should be proper check and balance system between goals and performance have to be introduced$ currently yearly bases performance evaluation has been going on$ for high motivational level$ high %uality it demands %uarterly bases. here should be a system of consultation between employees and management about employeesA career path$ it is easier for management to understand and analyze what employees actually want and allocate them reward properly. +e would like to recommend .oke to introduce alternative of reward management like wise profit sharing$ pay for knowledge program and goal sharing so as to increase their productivity.

31

PART @

#ibliography

32

Te9t Book: 5hilip Kotler * 0ary Armstrong- !5rinciples of 'arketing" 11 th ?d. )pper Saddle 9iver$ 3ew Lersey$ ).S.AB5rentice- /all. Ot%er Pu)$ication: 9eport on abani #everage (imited. <e)"ite" AUR5!B: www.tabanibeverageltd.com www.worldofcoca-cola.com

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PART @

Anne-ure

34

.ue"tionnaire: +elcome on this survey which is an e-ercise 1 have to do in ?nglish. >ou ,ust have to follow the %uestions and it will be easy to do. 1t@s very fast to answerM 1. 2o you like soft drinks A. >es #. 3o

&. ;oE o ten do #ou drink "o t drink"I A. 3ever #. 9arely .. Often 2. Always

'. <%ere are #ou u"ed to drink "o t drinkI A. At home #. At work .. 1n 5arty 2. Other

(. <%at "ort o drink do #ou pre er Ac$a"" #our an"EerBI A. .oca .ola #. 9. .ola .. 5epsi 2. 'o,o

,. ;ave #ou a$read# ta"te di erent )rand o CokeC ot%er t%an Coca6Co$aI A. >es #. 3o

1. Do #ou drink "ometime" Coke Eit% ot%er" product"I A. >es #. 3o

F. Are #ou "en"itive to price E%en #ou )u# a drinkI A. >es @. !e9I A. 'ale #. &emale #. 3o

4. ;oE o$d are #ouI A. 5e"" t%an &3 B. BetEeen &3 to '3 C. BetEeen '3 to ,3 D. -ore t%an ,3

35

hank you for having answered this surveyM

36