Introduction

The beverage industry of Bangladesh is an old, steady yet neglected industry. For many
years, the only product of the industry was Carbonated Beverage or Carbonated Soft
Drink CSD! and the number of players was limited to only a handful. Today, the industry
has flourished considerably with a bunch of new enterprises and through the introduction
of newer and more diverse products.
1.2 Objective
The ma"or purpose of this report is to focus light on one of the oldest and key player of
the beverage industry of Bangladesh, #bdul $onem %td. abbreviated as #$%!. The
underlying ob"ectives of the report are &
' To know about the inception of the enterprise, as a whole and of its beverage unit as
well.
' To know the operations and the management structure of #$%.
' (ut light on the production, distribution and promotion of the beverage products of
#$%.
' To review the strategic moves and plans of #$% as a Strategic Business )nit to gain
market share, make good profit and achieve sustainable growth.
' *ecommend relevant strategic moves to achieve even better result.
' Conduct a sample survey and interpret the results to visuali+e whether the strategies of
#$% are working well for the enterprise.
1.3 Methodology
The mode of methodology selected for this research is known as $ulti,methodology.
#lso known as $i-ed $ethods *esearch, $ulti,methodology is an approach to
professional research that combines the collection and analysis of both .uantitative and
.ualitative data.
/ualitative #nalysis
The sample data gathered in .ualitative research are analy+ed and categori+ed into
patterns as the primary basis for organi+ing and drawing results for the report. /ualitative
research for this report involved three methods for gathering information&
' Direct observation
' in depth interviews and
' analysis of documents and materials.
The key methods to be used for data collection are the 0ey 1nformant 1nterview 011! and
Depth 1nterview.
Quantitative Analysis
The ob"ective of .uantitative research is to develop and employ mathematical models,
theories and2or hypotheses pertaining to natural phenomena. The /uantitative *esearch
techni.ues applied for this report are &
' Collection of sample data
' $odeling and analysis of data
' 3valuation of results
1.4 Conceptual ra!e"or#
1.$ %cope
Due to several unavoidable situation and reality, the e-tent of this report has been
compromised up to certain limit. The boundaries of this report are thus &
' This report focuses only on the beverage production units and facilities of #$%, the
other business fronts of #$% are not covered in this report.
' This report will focus on the value chain activity of the beverage production unit of
#$%, from production to promotion, and the key strategic factors affecting those
activities.
' The report will also focus on the ethical and CS* activities of #$% as a whole, i.e. for
every business unit of the enterprise.
1.& 'i!itations
The e-tent and limit of the report were constricted due to some of the following
considerations&
' The time allocated for the report was limited which constricted the e-tent of this report.
' The beverage industry of Bangladesh is not well documented, so no strict facts and
figures were found from the enterprise respondants or any other secondary sources.
Chapter 2
An Overvie" o( Abdul Mone! 'td.
2.1 Introduction
#bdul $onem %td. #$%! is the only official bottler of Coca Cola, Sprite, Fanta 4range
and Fanta %emon in Bangladesh authori+ed by the Coca Cola 1nternational head.uarter
located in #tlanta, )S#. Through three bottling plants located in Dhaka, Comilla and
Chittagong and with a devoted distribution channel spread all around the country, #$%
has well established its strong and dominant presence in beverage industry of
Bangladesh.
5.5 1nception and 3-pansion
#$% started its operation back in 6789 as a construction firm and was engaged in ma"or
government construction work. :ithin a few decades, the organi+ation diversified its
operation in other industries, especially in food and beverage industry. #$% started its
1ce Cream (lant in Chittagong in 679; with a brand name 1<%44 followed by the
bottling license and distributorship of Coca Cola in 67=5. Today, #$% has eight different
business lines running with a yearly turnover of over )S> =8.? million dollar or BDT 9
billion. The group of business of #$% are consist of &
' Construction Contractors for the road @ highways, bridges, buildings @ flood
embankment
' Bottler and Distributor of Coca Cola, Fanta @ Sprite
' $anufacturer of 1<%44 1ce Cream
' #bdul $onem Sugar *efinery %td.
' #$ (harma %td.
' $anufacturer of #mo$ilk %i.uid (asteuri+ed $ilk
' $anufacture of 1<%44 <hee
' $anufacture of 1<%44 Sugar
' Trading @ Distributing product of Danone Brands
' #$% 1nfoTech %td.
2.3 'O)I%*IC% support (or the +everage ,nit
The Company has strong logistic fleet and manpower to ensure the distribution of its
beverage product to each corner of the market place. 3ven the unit has its own Cargo
Aessels to service the Southern part of the country where waterways is holding a ma"or
part of the land. The satellite warehouses established at different logistic locations help to
facilitate keeping the sufficient stocks in the remote areas.
The bottling plants of #$% for bottling Coca Cola are located in Dhaka, Comilla and
Chittagong. Bowever, at present, the operation of Dhaka plant is suspended and the total
bottling operation is constricted to the other two plants. The details of the Chittagong and
Comilla plant are given below &
Chittagong Comilla
Site #rea 6C #cres 9 #cres
Dear of operation 677? 67=?
%ine 0BS E <ermany
(%C Controlled,Fully #utomated! B@0 2 0BS E <ermany
Capacity 9CC B($ ;8C B($
9.8 $ill. cases2Dr ;.8 $ill. cases2Dr
(ackages 58C ml, 6CCC ml 6?8 ml, 58C ml, 6CCC ml
Capability (lastic cases
Fill height detector
5.; $ission Statement
The mission of #bdul $onem %td is to build business ventures committed to achieving
the highest .uality product and serve the betterment of society.
:hile the mission statement of #$% is desirable and focused, it lacks clarity, is too
generic and swarming with superlatives like best and highest. The mission statement
lacks motivation and is so broad that it really doesnFt rule out any opportunity that the
management may opt to pursue.
5.8 Aision Statement
#bdul $onem %td aims at providing the society with significant assistance in achieving
the ma-imum potentiality.
The vision statement of #$% is focused and obtainable. The vision guides its personnel
to a definite direction and provides an idea about its utili+ation of its potentials.
5.9 4b"ectives & The Balanced Scorecard #pproach
#$% strives to set up well defined and obtainable strategic and financial ob"ectives while
keeping in mind the long range and short range goals. To maintain an organi+ational
profile that is trustworthy to all its stakeholders, #$% gives more priority to provide a
uniform balance on all ob"ective fronts.
Financial 4b"ective
#bdul $onem %imited aims at generating appropriate financial results through
sustainable growth and constant renewal of balanced business structure.
Strategic 4b"ective
#bdul $onem %imited is open and trustworthy to all its business partners and consumers.
Through devoted business activities, it wish to make worthwhile contribution to the
progress of the country.
Short Term <oals
#$% aims to be one of the top market leaders, if not the supreme, while maintaining its
profit and goodwill assuring ma-imum benefit to its clients and employees. To achieve
the companyFs short term goals, the senior e-ecutives e-hibit behavior based on the
principles of leadership and teamwork in general and situational leadership model in
particular. They are result oriented, accountable, open and humane.
%ong Term <oals
<uided by the vision, #$% believes in ensuring long term e-istence by being profitable,
successful and sustainable. This is achieved by the companyFs commitments in providing
value,adding products and services demonstrate the companyFs commitment to use
resources optimally.
5.? Strategy $aking Bierarchy
The beverage unit of #bdul $onem %imited works under two different managements.
The production and .uality control of the beverage is maintained and strictly monitored
by the international Coca Cola authority head.uartered at #tlanta, )S#, whereas the
local operations are maintained under the supervision of #bdul $onem %imited Beverage
)nit $anagement Board.
1nternational $anagement of Coca Cola
#t the lowest level of the 1nternational Coca Cola management team is the local
authori+ed bottler, #bdul $onem %imited. #$% is accountable to the Country $anager
of Coca Cola Far 3ast %imited office located in Bangladesh. The hierarchy then goes up
to the Aice (resident of South :est #sia *egional 4ffice to the (resident of Coca Cola
1ndia to (resident of Coca Cola 3)*3S1# <roup which is directly responsible to the
highest authority for the operation of Coca Cola all over the work, the (resident of Board
of Director of Coca Cola at #tlanta, )S#.
%ocal $anagement for Beverage 4peration
The strategies and operations of the beverage unit of #$% are maintained under the
control of the <eneral $anagers of corresponding divisions. The <eneral $anagers are
supervised by the Chief 4perating 4fficer of the Coca Cola 4perations, who is
accountable to the Board of Directors composed of The $anaging Director and Deputy
$anaging Directors. The operation and performance of the Coca Cola operations of #$%
are closely monitored by the 1nternational Coca Cola #uthority through its regional
stations.
# conceptual flow diagram of the strategy making hierarchy of #bdul $onem %imited is
given below&
5.? S:4T #nalysis
The Strengths and :eakness of an enterprise represents its internal health and
vulnerability whereas the 4pportunity and Threats represents its degree of e-ternal
e-posure and interactivity. S:4T analysis provides a good overview of whether its
overall situation is fundamentally healthy or unhealthy and provides the basis for crafting
strategy on every front.
S:4T $atri-
Strengths
6. 1nternational brand image of Coca Cola
5. Technical e-pertise and *@D provided by international authority of Coca Cola
G. Hationwide distributorship driven by highly motivated workforce
;. Aalue chain integration through the efficient use of the other business entities of the
group, such as the products of 1<%44 Sugar is used as a base ingredient in Coca Cola.
:eakness
6. 4ver dependency on the international Coca Cola authority.
5. Ho room for crafting brand level strategies concerning the beverage Coca Cola
4pportunities
6. #t present, #$% only bottles and distributes only three brands of beverages E Coca
Cola, Sprite and Fanta. 1t is always possible to introduce other world famous Coca Cola
brands like Bislery Drinking :ater!, $aa+a $ango Drink! and others.
5. #$% currently can distribute its beverages only in Chittagong, 0hulna, Sylhet and
Barishal Division. The ac.uisition of the distributorship of the whole Bangladesh will be
a great opportunity for #$%.
Threats
6. The ever rising number of new entrants in the business.
5. Harrow band of beverage product line compared to the competitors.
G. Dominance of substitute beverage products like fruit "uice.
5.= $a"or *ivals
The rivals for the beverage unit of #$% range from the rivals producing other carbonated
beverages as well as from the producers of other beverages such as Fruit Iuices, Flavored
$ilk, Synthetic Drinks and (ure Drinking :ater. Hotably, the ma"or rivals of #$% are&
*ival Carbonated Beverage (roducers
' Transcom Beverage (epsi Cola, ?up, $irinda!
' (erte- <roup *C Cola, *C %emon!
' #$C% E (*#H (ran Cola, (ran )p!
' <lobe Beverage )ro Cola, )ro %emon!
' #ki" Food and Beverage %imited, #FB% %emu, $o"o, Spa!
*ival Fruit Iuice (roducers
' #$C% E (ran (ran Fruit Iuice!
' #cme (harmaceuticals #cme Iuice!
*ival 4ther Beverage (roducers
' #$C% E (ran Synthetic %ychi Drink!
' $ilk Aita Flavored $ilk!
' #rong Flavored $ilk!
5.7 *ecognition
1n 6776 the Company was awarded with the (residentFs Turtle #ward by the (resident of
The Coca,Cola Company for recognition of its contribution for positioning the brand.
This is the most prestigious reward to the Bottlers from The Coca,Cola Company
TCCC!.
Chapter G
#bdul $onem %imited & Strategical #nalysis
G.6 Competitive Strategy
#$% and its beverage products, i.e. Coca Cola, Sprite, Fanta 4range and Fanta %emon
are well known for providing best value to its clients for the cost they pay for it. #$%
only have four products in its beverage line, so clearly they are not going for Broad
Differentiation. Though the competition in the industry is tense than ever, still the price
set by #$% is in the top region, so they are not eyeing to be the %ow Cost (rovider
either. They produce no products for any niche group or for any special price facilitated
groups. Thus, strategically #$% can be classified as he Best Cost (rovider.
G.5 Complementary Strategy
G.5.6 Strategic #lliances or Collaborative (artnership
From the very beginning of its beverage operation, #$% has been the market leader by a
great distance. They never felt any necessity to make collaboration with any rivals.
Bowever, since #$% is authori+ed for distributing its products only in half of the regions
of the country, they made a strategic alliance with the enterprise, Tabani Beverage, that
distributes on the other half of the country. #ccording to this alliance, #$% will provide
and supply Tabani Beverage with all the products they need and Tabani Beverage is only
authori+ed to distribute those to its own territory. Due to this alliance, though #$% lost
the authority for the distributorship all over the country, they made sure to utili+e their
total capacity of production by producing beverage products for the whole nation.
G.5.5 $erger and #c.uisition
Though no record for merger was found in the history of #$%, the entrance of #$% in
beverage industry was the result of a huge ac.uisition of cotemporary scenario. Till 67=5,
the authori+ed bottler of Coca Cola for Bangladesh was entitled to 0. *ahman @
Company. #$% took over its bottling operation by ac.uiring the plant of the 0. *ahman
@ Company in Chittagong in 67=5. 1t has set up two more bottling plants, one in Dhaka
and other in Comilla, till then.
G.5.G Aalue Chain and Aertical 1ntegration
#s a group of company, #$% en"oys the privilege of vertical integration through both
forward and backward linkage operations. 1t has its own plants for producing raw
materials and own diverse and well e.uipped distribution channel for distributing the
finished product.
The Aalue Chain starts from ac.uiring the main ingredient of the beverage, called the
F4*$)%#. The F4*$)%# is a chemical compound that works as the heart of the
beverage and due to business secret, no one e-cept for the original Coca Cola Company
can produce it. #fter receiving the concentrated F4*$)%#, it is diluted and processed
by adding other components like drinking water, sugar, Carbon Dio-ide and so on. The
sugar used in this process demand high .uality, so #$% established its own sugar plant,
1<%44 Sugar to get a regular supply of high .uality sugar.
The finished beverage is then bottled and sent to the ma"or regional distributors who
make it available in the shops for the customers through local dealers.
# flow chart for the complete Aalue Chain process is given below &
G.5.; 4utsourcing
The only outsourced item in the total value chain process of #$% in producing, bottling
and distributing Coca Cola is the making of the bottle itself. For the case of glass bottles,
the regional head.uarter of Coca Cola, Coca Cola 1ndia CC1! supplies #$% the bottle
they re.uire to ensure the .uality of the bottle regarding shape, strength and safety. For
the (3T bottles, #$% has outsourced them through making special orders to the outside
producers of (3T bottles.
G.5.8 Strategic $oves
For decades, the beverage industry of Bangladesh has been a monopolistic market with
Coca Cola the only market leader. Thus, undertaking any strategic moves, offensive or
defensive, was unnecessary. Bowever, as the competition grew, being offensive or
defensive through adopting new strategic moves became more and more crucial.
1n 67=? the Company made an aggressive move to e-pand the market by installing a new
B@0 bottling line with an installed capacity of ;8C Bottles (er $inute B($! bottling
capacity at Comilla. :ith this move, the Company immediately gained the market
leadership position from the (epsi which was the leader for more than 5? years. %ong
term planning and aggressive marketing approach rewarded the Company with the
market leadership position for the brands that remains till date.
#$% also takes defensive moves time to time by sending messages of retaliation to its
rivals by occasional price cut and offering frills. Such moves have become more and
more common especially during the festive seasons like 3id.
G.G Functional #rea Strategy
Functional #rea Strategies are mostly monitored and supervised by the Board of
Directors. This is due to the necessity to keep balance between different lines of business
that the enterprise pursues. :hile the Technological support and *esearch and
Development activities are mostly provided by Coca Cola 1nternational, #$% is
responsible for the production, bottling, marketing and sales and distribution of Coca
Cola in Bangladesh. :hile the accounts and finance division is separate for the beverage
unit of #$%, the Buman *esource Department works for the whole enterprise as a
whole.
G.; Timing of Strategy
#s a player of a monopolistic market, the timing of strategy was never been a problem
for #$% as a bottler and distributor of Coca Cola in Bangladesh. #lmost all the
technology and approaches in the beverage industry of Bangladesh are one way or
another introduced by Coca Cola and #$%. 1n this regard, #$% and Coca Cola has
always been the First $over in the beverage industry of Bangladesh.
G.8 Business 3thics and Social *esponsibility
Business 3thics for the beverage industry mainly comes from the health perspective. #ll
the ingredients used in the production of Coca Cola under #$% are strictly monitored by
the Coca Cola Company, )S#. #ny violation from the re.uired standard would result in
a cancellation of the license.
#s for the social responsibility, #$% runs one madrasa, one college and one 3timkhana
for the poor people of the village Bri"esswar in Brahmanbaria under the financing of
#$% Foundation. #$% Foundation is also engaged in providing micro finance to the
poor of the village. 4ther than that, #$% runs relief works and provides pure drinking
water in any case of natural disaster.
Chapter ;
Findings @ *ecommendations
;.6 Findings
' The carbonated beverage industry of Bangladesh is visibly a matured and declining
industry.
' The e-isting market of carbonated beverage is seriously threatened by the emergence of
other substitute beverage products.
' Due to the narrow product line, #$% and its beverage unit is having a hard time to
maintain its share in the market.
' 4ver the last decade, numerous number of new enterprises has entered the industry and
eventually have swamped the industry for its volume.
' The policy and technology determined by the Coca Cola Company, )S# are not always
suitable for the case of Bangladesh.
;.5 *ecommendations
' To introduce other well anticipated products of Coca Cola Company in local market.
' <oing for some alliance with some of the ma"or rivals or if possible ac.uiring some of
them.
' #s the oldest enterprise in the beverage industry of the country, the only cost #$% can
consider is the variable cost of the product and can forget about the establishment cost as
it should have been recovered after all these days. Thus, #$% can consider a serious
price cut to rule out the smaller player from the market and gain more share.
Strengths of #$%
' 1nternational brand image of Coca Cola
' Technical e-pertise and *@D provided by international authority of Coca Cola
' Hationwide distributorship driven by highly motivated workforce
' Aalue chain integration through the efficient use of the other business entities of the
group, such as the products of 1<%44 Sugar is used as a base ingredient in Coca Cola.
:eakness of #$%
' 4ver dependency on the international Coca Cola authority.
' Ho room for crafting brand level strategies concerning the beverage Coca Cola
4pportunities for #$%
' #t present, #$% only bottles and distributes only three brands of beverages E Coca
Cola, Sprite and Fanta. 1t is always possible to introduce other world famous Coca Cola
brands like Bislery Drinking :ater!, $aa+a $ango Drink! and others.
' #$% currently can distribute its beverages only in Chittagong, 0hulna, Sylhet and
Barishal Division. The distributor for the rest of the country is Tabani Beverage, who gets
the supply of beverages from #$%. The ac.uisition of the distributorship of the whole
Bangladesh will be a great opportunity for #$%.
Threats for #$%
' The ever rising number of new entrants in the business.
' Harrow band of beverage product line compared to the competitors.
' Dominance of substitute beverage products like fruit "uice.
Chapter G
#bdul $onem %imited & Strategic #nalysis
G.6 Competitive Strategy
#$% and its beverage products, i.e. Coca Cola, Sprite, Fanta 4range and Fanta %emon
are well known for providing best value to its clients for the cost they pay for it. #$%
only have four products in its beverage line, so clearly they are not going for Broad
Differentiation. Though the competition in the industry is tense than ever, still the price
set by #$% is in the top region, so they are not eyeing to be the %ow Cost (rovider
either. They produce no products for any niche group or for any special price facilitated
groups. Thus, strategically #$% can be classified as he Best Cost (rovider.
G.5 Complementary Strategy
G.5.6 Strategic #lliances or Collaborative (artnership
From the very beginning of its beverage operation, #$% has been the market leader by a
great distance. They never felt any necessity to make collaboration with any rivals.
Bowever, since #$% is authori+ed for distributing its products only in half of the regions
of the country, they made a strategic alliance with the enterprise, Tabani Beverage, that
distributes on the other half of the country. #ccording to this alliance, #$% will provide
and supply Tabani Beverage with all the products they need and Tabani Beverage is only
authori+ed to distribute those to its own territory. Due to this alliance, though #$% lost
the authority for the distributorship all over the country, they made sure to utili+e their
total capacity of production by producing beverage products for the whole nation.
G.5.5 $erger and #c.uisition
Though no record for merger was found in the history of #$%, the entrance of #$% in
beverage industry was the result of a huge ac.uisition of cotemporary scenario. Till 67=5,
the authori+ed bottler of Coca Cola for Bangladesh was entitled to 0. *ahman @
Company. #$% took over its bottling operation by ac.uiring the plant of the 0. *ahman
@ Company in Chittagong in 67=5. 1t has set up two more bottling plants, one in Dhaka
and other in Comilla, till then.
G.5.G Aalue Chain and Aertical 1ntegration
#s a group of company, #$% en"oys the privilege of vertical integration through both
forward and backward linkage operations. 1t has its own plants for producing raw
materials and own diverse and well e.uipped distribution channel for distributing the
finished product.
The Aalue Chain starts from ac.uiring the main ingredient of the beverage, called the
F4*$)%#. The F4*$)%# is a chemical compound that works as the heart of the
beverage and due to business secret, no one e-cept for the original Coca Cola Company
can produce it. #fter receiving the concentrated F4*$)%#, it is diluted and processed
by adding other components like drinking water, sugar, Carbon Dio-ide and so on. The
sugar used in this process demand high .uality, so #$% established its own sugar plant,
1<%44 Sugar to get a regular supply of high .uality sugar.
The finished beverage is then bottled and sent to the ma"or regional distributors who
make it available in the shops for the customers through local dealers.
# flow chart for the complete Aalue Chain process is given in the following page.
G.5.; 4utsourcing
The only outsourced item in the total value chain process of #$% in producing, bottling
and distributing Coca Cola is the making of the bottle itself. For the case of glass bottles,
the regional head.uarter of Coca Cola, Coca Cola 1ndia CC1! supplies #$% the bottle
they re.uire to ensure the .uality of the bottle regarding shape, strength and safety. For
the (3T bottles, #$% has outsourced them through making special orders to the outside
producers of (3T bottles.
G.5.8 Strategic $oves
For decades, the beverage industry of Bangladesh has been a monopolistic market with
Coca Cola the only market leader. Thus, undertaking any strategic moves, offensive or
defensive, was unnecessary. Bowever, as the competition grew, being offensive or
defensive through adopting new strategic moves became more and more crucial.
1n 67=? the Company made an aggressive move to e-pand the market by installing a new
B@0 bottling line with an installed capacity of ;8C Bottles (er $inute B($! bottling
capacity at Comilla. :ith this move, the Company immediately gained the market
leadership position from the (epsi which was the leader for more than 5? years. %ong
term planning and aggressive marketing approach rewarded the Company with the
market leadership position for the brands that remains till date.
#$% also takes defensive moves time to time by sending messages of retaliation to its
rivals by occasional price cut and offering frills. Such moves have become more and
more common especially during the festive seasons like 3id.
Aalue Chain #ctivities of the Beverage )nit of #bdul $onem %imited
G.G Functional #rea Strategy
Functional #rea Strategies are mostly monitored and supervised by the Board of
Directors. This is due to the necessity to keep balance between different lines of business
that the enterprise pursues. :hile the Technological support and *esearch and
Development activities are mostly provided by Coca Cola 1nternational, #$% is
responsible for the production, bottling, marketing and sales and distribution of Coca
Cola in Bangladesh. :hile the accounts and finance division is separate for the beverage
unit of #$%, the Buman *esource Department works for the whole enterprise as a
whole.
G.; Timing of Strategy
#s a player of a monopolistic market, the timing of strategy was never been a problem
for #$% as a bottler and distributor of Coca Cola in Bangladesh. #lmost all the
technology and approaches in the beverage industry of Bangladesh are one way or
another introduced by Coca Cola and #$%. 1n this regard, #$% and Coca Cola has
always been the First $over in the beverage industry of Bangladesh.
G.8 Business 3thics and Social *esponsibility
Business 3thics for the beverage industry mainly comes from the health perspective. #ll
the ingredients used in the production of Coca Cola under #$% are strictly monitored by
the Coca Cola Company, )S#. #ny violation from the re.uired standard would result in
a cancellation of the license.
#s for the social responsibility, #$% runs one madrasa, one college and one 3timkhana
for the poor people of the village Bri"esswar in Brahmanbaria under the financing of
#$% Foundation. #$% Foundation is also engaged in providing micro finance to the
poor of the village. 4ther than that, #$% runs relief works and provides pure drinking
water in any case of natural disaster.
Chapter 4
indings - .eco!!endations
4.1 /valuating the %trategies o( Abdul Mone! 'td.
The last and the most important of all phases of Strategy $aking (rocess or Strategy
3-ecuting (rocess is the 3valuation. #n evaluation of the effectiveness of e-isting
strategies enables the management to review, correct and ad"usts any flaw in the system.
3valuation also dictates the effectiveness of the employees who employ the strategies as
well as the effectiveness of the management itself.
For the beverage industry of Bangladesh, at the present scenario, the ma"or ob"ective of
all the players are to grab the ma-imum of the potential market share. This is due to the
following reasons&
' The market si+e is limited and the possibility of e-pansion of new market is very low.
' The industry is overcrowded with huge number of players that the market can
withstand.
' Hew players are emerging all the time.
' The products are seriously competed against the rival substitute products.
' The industry, as a matured or even declining industry, is loosing its consumer base day
by day.
' 1ntroduction of new product or new technology is apparently absent.
;.6.6 $ethod of the Survey
To identify the market share of the beverage products of #bdul $onem %td. in the
beverage product market in Bangladesh, a .uestionnaire survey was conducted. Due to
the time constraints, the survey was conducted in only three retail stores located in three
ma"or locations of Dhaka city. 1t is to be noted that as the number of sample is less than
thirty in this case, the results of this survey cannot be considered for any statistical
analysis. Bowever, the result should give a .ualitative view of the relative position of
#bdul $onem %td. among the other competitors in the beverage market of Bangladesh.
;.6.5 Detail of the Survey
The survey was conducted in three prominent retail stores located in three prime
locations of Dhaka cityJ Bikrampur <eneral Store at 0alabagan, Tasmia Departmental
Store at (alashi and Big Ba+ar at $irpur. # formatted .uestionnaire was supplied to each
of the store keepers to fill out. The .uestionnaire contained both open ended and close
ended .uestions regarding the products of #bdul $onem %td, as the focus of the survey
was to distinguish the difference between the market share of #bdul $onem %td. and its
rivals, not any other single enterprise.
;.6.G *esults from the survey
The results of the survey show that all the stores under consideration sell the beverage
products of #bdul $onem %td. for a long period of time, though over the last few years,
demand for other brands and vendors are on an increasing trend.
#bdul $onem %td. markets its beverages in three different packaging systemsJ glass
bottles, (3T bottles and Cans, whereas, most of the other beverage manufacturers
packages their product in only (3T and Can form. Thus, the market share of #bdul
$onem %td. in glass bottle beverages is e-pectedly high compared to its rivals. Survey
show that #bdul $onem %td. holds more than ?C percent of the total market share of
glass bottled beverage industry.
For the (3T bottled beverage industry, #bdul $onem %td. is facing a serious challenge
from its rival. #lmost all of the rivals have diversified their (3T bottled line of beverage
to suit the volume difference of the clients, whereas #bdul $onem %td. has a very limited
number of diversified (3T bottle series. This narrow band of diversification has cost
them to lose valuable market share in the industry.
#lso in the canned beverage market, #bdul $omen %td. lost its ma"or market share to the
new comers for the lack of its marketing priorities. #bdul $omen %td. considers
marketing its glass bottled and (3T bottled products as top priority and provides less than
ade.uate attention to its Canned beverage item. The rivals took the advantage of this
opportunity and gained ma"or market share over #bdul $onem %td. at this segment of
the market.
Bowever, the distribution network, availability and consumer response seems to have
always been in favor for #bdul $onem %td. and Coca Cola. The retailers are more than
happy with the efficient distribution channel run by #bdul $onem %td. compared to that
of other vendors. The availability of the product is also very good throughout the year
and the consumers also value the beverage products of #bdul $onem %td. as best value,
mainly due to the brand image of Coca Cola and shear .uality control.
;.6.; Findings from the survey
' #bdul $onem %td. is still the market leader for the glass bottled beverage market in
Bangladesh, mainly due to the fact that most of the rivals do not produce glass bottled
beverages.
' 1ts market share in (3T bottled and Canned beverage market has seriously declined and
on a serious threat under the aggression of the rivals in this segment.
' Bowever, the establishment and infrastructure of #bdul $onem %td. to distribute the
product to the footstep of the consumer remained best of all
;.5 0ey Findings
' The carbonated beverage industry of Bangladesh is visibly a matured and declining
industry.
' The e-isting market of carbonated beverage is seriously threatened by the emergence of
other substitute beverage products.
' Due to the narrow product line, #$% and its beverage unit is having a hard time to
maintain its share in the market.
' 4ver the last decade, numerous number of new enterprises has entered the industry and
eventually have swamped the industry for its volume.
' The policy and technology determined by the Coca Cola Company, )S# are not always
suitable for the case of Bangladesh.
;.G *ecommendations
' To introduce other well anticipated products of Coca Cola Company in local market.
' <oing for some alliance with some of the ma"or rivals or if possible ac.uiring some of
them.
' #s the oldest enterprise in the beverage industry of the country, the only cost #$% can
consider is the variable cost of the product and can forget about the establishment cost as
it should have been recovered after all these days. Thus, #$% can consider a serious
price cut to rule out the smaller player from the market and gain more share.