Marketing Assignment On

Acknowledgement
We first express our deep gratitude to the almighty Allah who gave us the opportunity to finish this task. Then we would like to express thanks to our course instructor Md. Anamul Hoque Rubai, Lecturer, Department of Business Administration, East West University Dhaka. His candid suggestion, patient, enthusiastic encouragement thought out the have made this attempt successful. His insight and invaluable remarks left distinct of the work. To his generosity our gratitude is unbounded. We express our deep gratitude and heart full thanks to all of our friends. Finally we must remember our parents and all members of our family with deep gratitude for the mental and financial support and finally to our teaching assistant for the contribution in all the work we have done in this assignment.

Table of content 1. Abstract 2. Objective of the study 2. Methodology 3 Introduction #Coca-Cola in Bangladesh 4. Analysis Situational analysis 4.1 S.O.W.T analysis Industrial analysis 4.2 BCG analysis 5Marketing Strategies 5.1 Market Segmentation 5.2 Target Market 5.3 Positioning 6. Marketing mix 6.1. Product 6.2 Price 6.3 Place 6.4 Promotion 6.5 Packaging 6.6 Public Relation

6.7 Publicity 6.8 Politics 7. Conclusion 8. Recommendations 9. Survey 10. Bibliography

Abstract presents a clear vision of the report with different titles. We have chosen Coca Cola Company for our report. In our report we mainly deal with marketing strategies of Coca cola & Fanta, the product c a t e g o ry and product mix of the o r g a n i z a t i o n . T h i s r e p o r t w i l l h e l p u s t o d e t e rm i n e t h e i n -d e p t h i n f o r m a t i o n a n d s t a n d o u t p o s i t i o n i n t h e m a r k e t . So this paper will give you a complete preview of this World Giant in the Beverage business.

There are two types of objectives in our reports a) Primary objective: Our main objective is to gather information about the worlds leading Soft Drink Company; Coca Cola and the study has given us realistic view point and information that are needed to complete the report of our course. b) Secondary objective:

For the purpose of this report we have placed the main focus on the beverage
industry. To find out the reasons why Coca Cola Company are facing problem in global market. Identify the market segment and selecting target market to analyze the export activities of Coca Cola Company. To determine the market position of the coca cola and Fanta through their product life cycle.

Research Method: Primary Sources:

To collects our primary data. We have prepared 6 questionnaires and total number of samples was 50. We have also conducted in-depth interview with resells & consumers.

Secondary sources:

For secondary data we have collected most of the data from internet, textbooks, and various journals.

Limitation of Study:

(a) Time limitation is one of the problems to make a long time survey (b) We surveyed just over 50 people. (c) . Data collection process was irregular.

On May 8, 1886, Atlanta druggist Dr. John Styth Pemberton (former Confederate officer) invented "Coca-Cola" syrup using melted sugar, water and other ingredients. It was mixed in a 30-gal. Brass kettle hung over a backyard fire. It was marketed as a "brain and nerve tonic" in drugstores. Sales averaged nine drinks per day.

Coca-cola is the most popular and biggest selling soft drinks in history, founded in 1886, & it created in Atlanta, Georgia by Dr. John S. Pemberton. Coca-cola was first offered as a fountain beverage by mixing coca-cola syrup with carbonated water. In 1899, the company began franchised bottling operations in the United States. Today they produce nearly 300 brands in 200 countries. Fanta has its origins in Nazi Germany, when a trading ban was placed on that nation by the Allies during World War ||. The Coca-Cola Company therefore was not able to import the syrup needed to produce Coca-Cola in Germany. As a result, their chief chemist, Dr. Schetelig, decided to create a new product for the German market created using only ingredients available in Germany. The Coca-Cola Company called the new product Fanta. Primary competitors to Fanta have included Tango, Mirinda, Slice, Orange Crush,

and Tropicana Twister. Fanta was the second drink to be produced by Coca cola apart from the original Coca-Cola.

Coca-cola Company in Bangladesh

The Coca-Cola Company was first started their business by their bottling agent Tabani Beverage in the year back in 1963.Two independent Bangladeshi bottlers of Coca-Cola employing over 1500 Bangladeshis and providing a source of income fro over 35000 retailers have dedicated their men materials and machines for a refreshing, delicious drink that is made in Bangladesh. One of these is Tabani Beverage Co. Ltd and another one is Abdul Monem Limited. Tabani Beverage covered the area of Dhaka and Rajhshahi division whereas Abdul Monem Limited covered rest of the part of Bangladesh. In terms of percentage (%) Tabani Beverage covered 60 % and Abdul Monem Company covered 40% of their market. They bring raw materials for their products from The Coca-Cola Fareast Company, which is situated, in Egypt. They bring their raw material, which is concentrated syrup from The Coca-Cola Fareast Company. Tabani Beverage Co. Limited pays all the freight charges.

But recently Coca-Cola & Tabani Beverage is going through some tough problems. A legal battle appears to intensify between Coca-Cola Company and Tabani Beverage as the High Court has issued an interim injunction in favor of Coca-Cola, barring the use of its trademark by Tabani. The row began after the bottling agreement expired in July, and Coca-Cola informed Tabani that it would not renew the bottling agreement.

So now Abdul Monem Limited is the sole producer & marketer of Coca-Cola Products in Bangladesh.

Situational analysis:
S.W.O.T analysis: Every company must have some strengths, weakness, opportunities, & threats. The best portfolio is the one that best fits a companys strength, weakness to the opportunities in the environment. Coca-cola Company always tries to put strong resources in to its more profitable business & drop its weaker ones. It also hunts for its opportunities & try to overcome its threats. Strength:

Quality and Taste is good. Brand name has a good impact on consumers. Attractive packaging

 Different sizes (Small, fountain, cane & pet bottles) Easily Accessible Reasonable price. High quality of advertisement influence consumers. Effective distribution system. Market size is huge. Management policy is good. Market share is high.
Weakness:

Opportunity:

Small bottles (glass) of coke are not easy to carry. Number of advertisement & sales promotion is low.

To introduce coke of different flavors. Increase advertisement & other sales promotion As it is a popular product so it has captured a significant portion of
market share. Threat:

Colorful flavors of other beverage company. Competitor can take over coca-cola by providing any unique feature. Pepsi sponsored most of the fast food joints. Tabani Beverage think as if they are the best one and this thought can
be a threat for them.

They

are not really concern about huge advertising and sales promotion. Very few consumers could remember that when they last

Industrial Analysis:
The best-known portfolio-planning method was developed by the Boston Consulting Group, a leading management consulting firm. Here the company classifies all its SBUs according to growth share matrix.
Coca Cola Fanta Sprite Sunfill

The BCG (Boston Consuling Approach) growth-share matrix.

E M

S A

T R

I K

High

Low

High

Low

Relative Market Share

Market segment:
A group of buyers who respond in a similar way. A group of customers (people & firm) at whom the seller especially aims its marketing efforts. The careful selection & accurate definition of target markets are essential for the development of an effective marketing mix. But Fanta will play a critical part in this effort due to its strong connection with moms and teens." For finding out the target market, we have segment the market in following ages: Segmentation School going Teenagers Youth Couples Family Old people 25% 10% Small bottle 30% 26% 25% Cane 25% 30% 28% 25% 15% Fountain 20% 32% 24% 30% 2% 3% 40% 60% 20%(diet) Family size

Segmentation Bases for Consumer Market

For each market segment Coke and Fanta designs different marketing, mix. Sometimes market segmentation can also be accomplished with no change in the product but rather marketing program.

Segmentation Basis Geographic Region City size Urban-rural Climate Demographic Age Sex Family life cycle Education Occupation Religion Psychographics Social class Personality Life-style Behavior toward product Benefit desired Usage rate

Typical market segments Comilla, Chittagong & Khulna 15 sq.km , 11 sq.km, 17 sq.km Urban, rural Hot, hot, sunny 6-12, 13-19, 20-34, 35-49 & over. Male, female Young married no children, married with children Grade school only, high school graduate, college graduate only, graduates. Student, housewife, professional, manager, clerical Muslim, Hindu, Christian, Buddhist. Upper class, upper middle, lower middle, upper lower Ambitious, self-confident, aggressive, introverted, extroverted, sociable, etc. Conservative, liberal, adventuresome. Good taste, low price, different flavors. Heavy user, light user.

Target Market:
A sound marketing program starts with the identification & analysis of target markets for what ever it is that an organization is selling. A market consists of people & organizations with needs or wants money to spend & the willingness to spend it. Today the coca cola company products are sold in nearly 200 countries around the world. In 2002, US gallon sales represented approximately 30% of the companys worldwide sales. The Principle markets outside the US are Mexico, Brazil, Japan and Germany, which together accounted for approximately 26% of the worldwide gallon sales. Coca cola Companys worldwide operations are shown in the following.

Market Types
Consumer Market Business Market Reseller market

Coke & Fanta

Consumer Market: Individuals & households. Business Market: Hotels, restaurants & cafeterias. Reseller Market: Departmental stores, groceries shop.

Positioning:
Soft drink gives people refreshment and coke and Fanta gives the pure refreshment with an exclusive taste Abdul Monem Limited always put their importance on quality. They always try to offer the best to their consumers. So the competitive advantage of Abdul Monem Limited is that they provide the superior quality by not using any artificial color. They offer consumers greater value, at a same price. Another advantage of their product is that, coke has much more caffeine than any other brand. Consumer can differentiate coke and from other competitive product in terms of brand, quality, price, and market position. And Fanta has more orange formulation than other brand. Once they have chosen a desired position to their consumers mind, it takes strong steps to deliver and communicate that position to target consumers. And the companys entire marketing program supports the chosen positioning strategy. Consumers prefer these because of the brilliant taste they get in the first sip. Everybody recognizes coca cola and Fanta and this is all because of the success of their brand.

3 oz. citric acid

Product mix:
Abdul Monem Limited
(Product Mix/width)

1. Coke: -Can, pet bottle (1 liter, 1.5 liter, 2 liter), glass bottle (250ml, 1 liter) 2. Fanta:-Can, pet bottle (1 liter, 1.5 liter, 2 liter), glass bottle (250ml,1 litre) liter) 3. Sprite:- Can, pet bottle (1 liter,1.5 liter,2 liter), glass bottle (250ml, 1 liter) 4. Sunfill:- Glass bottle (250ml)

Product levels:
There are three levels of product level. Core product, Actual product,& augmented product. Each level adds more customer value.

Augmented Product

Core Actual product benifi t

Coca Cola:
The first product level is core benefit. When designing the product Coca-Cola, the marketing department of Abdul Monem Limited first defined the core benefit which is What the buyer is really buying. Coke is like refreshment to the people. Coke is the soft drink that gives everybody more energy because it has the highest level of caffeine. Here, Abdul Monem Limited is manufacturing beverage but they are selling quality refreshment with satisfaction and lifestyle. The product planer turned the core benefit into an actual product. Here, Abdul Monem Limited developed Coca-Colas features & design and made it an exclusive beverage with the brand name Coca-Cola. Coca-Cola means quality, quality is our motto this mission statement proved as Coca-Cola turned into no. 1 position. Finally, product planner builds an augmented product around the core benefit and actual product. By offering sales promotion to the consumers, they also built an augmented product by giving them a completely unique taste of soft drink to the consumers.

Fanta :
Fanta has a nice tangy, fizzy and refreshing orange taste to it. It is a drink produced by the Coca Cola Company and drinks are bottled by Coca Cola Enterprise Ltd. Fanta will be the first flavor in the Fanta family to have 100 percent natural flavors, while offering the great taste. Abdul Monem Limited also developed fantas features & design. Fantas formulation is carbonated water, high fructose corn syrup, citric acid, sodium benzoate, modified food starch, natural and artificial flavors, sucrose acetate isobutyrate, sodium polyphosphates, coconut oil, yellow 6, brominated vegetable oil, red 40, dioctyl sodium sulfosuccinate. Fanta has changed over the years, now it has added Sugar and sweeteners. Augmented product is by giving people 100 percent pure fizzy fruit taste. Fanta is best served ice cold which is true it has a fresh taste when it's cold, when left in the room its flavour isnt great compared to the chill taste of Fanta.

Price
Abdul Monem Co. Limited is the bottling agent of the Coca-Cola Company in Bangladesh.. The Coca-Cola Company (USA) fixed the price of coke for their companies. And the prices of all the flavored drink of different pack size are the same. And if they Abdul Monem Limited launch a new product their pricing strategy is going to be the same.

Abdul Monem cannot increase their products price. If The Coca-Cola Company gives permission to Abdul Monem Limited to increase their products price then only they can increase it. Previously there was an association of competitors but now there is no association. From the survey the researchers found that most of the consumer said that the price of Coke and fanta are reasonable.

Products Tabani Beverage Coke Fanta (orange, lemon)

of Price (250ml) Consumer 12Tk 12Tk

Price (250ml) Retailer 10 Tk 10 Tk

Price (1liter) Consumer 40 Tk 40 Tk

Price (1 liter) Retailer 37 Tk 37 Tk

Place:
Place includes the company activities that make the product available to the target consumers. Coca-Cola and fanta are distributed over 200 countries of the world. In Bangladesh, there are two distributors of Coca-Cola, one is Abdul Monem Company and and another one is Tabani Beverage Company. They have divided the total distribution area among themselves. Abdul Monem Company distributes Coca-Cola in Chittagong, Sylhet and Khulna. They cover the 40% of the total distribution. Tabani beverage distributes these in Dhaka and Rajshahi. They cover 60% of the total distribution. In Dhaka city now they have 40 distributors. The total distribution area of Dhaka is also distributed in some subsegments and each segment has one or more distributors to supply Coca-cola fluently. As example- in Mirpur they have five distributors, in Dhanmondi two distributors and in new market 1 distributor. Tabani beverage has its own transportation to supply Coca-Cola.

From the survey of the retailers, it has found that Coca-Cola is available in almost every shop, departmental stores or in grocery shops. But in maximum fast food joints.Especially fountain fanta and coke are not available. But recently after the row against Coca-Cola & Tabani beverage, Abdul Monem Limited is the sole provider of Coke products in Bangladesh

Promotion
Coca cola Company does their promotion in the following ways Advertising is a paid-for type communication in which the sponsor is clearly identified. The most common media of coke is T.V & the channels are (Ten sports,AXN,Star Plus, BTV, ESPN )which comes frequently before, after and also in between the programmes and it is also a very popular media and others are newspapers(Prothom alo, Daily star ,Ittefaq ect )mainly gives when sales promotions are given by the co. & magazines ie (Anondolok, Play boy). Sales promotion is designed to supplement advertising & coordinate personal selling. Fanta and Coke always offer attractive sales promotion to attract it consumers to its product. It also displays Billboards in different places (mainly in mirpur where the factory is located.)

Packaging:

Packaging involves designing and producing the containers and wrapping the product. Packaging can be divided in two ways. Primary packaging includes these crate size in which 24 of 250ml or 12 of 1000ml is loaded and secondary packaging by itself. There is also a matter of product safety, which has become a major packaging concern. Abdul Monem Limited is highly concerned about their products that are it should be hygienic. Abdul Monem Limited washes the bottles with fully automated machines,

Which washes the bottles with hot water and other soap type materials? All the washing and bottling procedures wind up without any touch of hands that is the process is fully automated. And their bottling procedure is also very hygienic.

Publicity
Publicity is similar to advertising. For publicity coca cola company sponsor charity events games. Coca cola released many cassettes of Band music. Sales promotion encourages to purchase or sale of a product or service. Actually sales promotion offers the reason to buy now. Tabani beverage spends more than 5% sales revenue in advertising. They give some important sales promotions to the retailers. From the survey of both Tabani beverage and the retailers, the researchers has found that Tabani beverage gives two bottles free with 250ml and 175ml crate (containing 24 bottles). Again, one bottle is free with 1 litter crate (containing 12 bottles). However, this promotion is not given with every trip in everyday. It is given once a month to hold and reward the loyal retailers. Tabani beverage usually does not provide much fountain machines or signboards to the fast food joints or the departmental stores. Tabani beverage does not advertise more in television or newspapers. Because according to Tabani beverage, as coke and fanta is already a very popular beverage, they do not need to advertise more. But they give consumers sales promotion to increase their business. Tabani Beverage gives consumers discounts, premium, scratch card etc. They called this type of sales promotion as liner sales promotion.

Public Relation:
This is the overall relationship of Coca cola Company with the consumer. This is how they serve the consumer by understanding the underlying need of the consumer. This is includes serving from highest to lowest level. The company also handles any rumor or any negative situation here.

Politics:
This problem is the main problem in Bangladesh. If the government changes the business strategy of the countries is also changed. It is very harmful for any company. Though Coca-cola is a renowned company, they also face this problem. In other countries, the Govt. doesnt change in foreign affairs and business strategy. For that reason, those countries are developed quickly. But in Bangladesh, Govt. changes the strategy of previous Govt. This company handles this problem tactfully.

Conclusion:
Coke is one of the prominent companies in Bangladesh. The present condition of Coke is good, it has already captured 43% share. Its good quality of taste & packaging attracts people. Fanta has also a strong brand positioning in the consumers mind. However, this two beverage product has many strengths but fewer weak points & threats. Therefore, management should try their level best to overcome its weakness (increase advertisement & sales promotion) & its threats to prove its strengths with other competitors. If they do so, it can be able to capture more market share & compete with its competitors. They now produce more than 10 million cases in every year and pay taxes like value added tax, supplementary tax regularly to the government. They pay taxes more than 50core taka in every year.

Problems facing the Coca-Cola Company Problems that the coca-cola company is facing while doing business are the following. Advance Technology: In the recent world technology changes every moment, so it is very difficult for the companies to cope up with the changes technology every time. Because when advance technology innovates they are more costly comparable to other technologies those are exists. So it is not possible for the company to bear these expenses every year to match with the changes technology.

Regulations and duty:

Every country has the rules and regulation for business. In developed country if the Govt. changes they dont change the business policy. But in our country if the Govt. change, they change the rules and regulation. For that reason, many organizations dont want to do business in Bangladesh. The process of bureaucracy is continuing for a long time in our country. This is the disadvantage of Govt. regulations. The coca-cola company also faces this problem in Bangladesh. The rate of change of duty is also a problem for doing business. Though this company does not give any tax to the Govt. but they give the duty of product. If the duty increases, the price of product should increase. In recent budget the Govt. decrease 5% custom duty but increase regulation duty 20%. For this reason, they increase their product price. Strike: Strike is one of the major problems in Bangladesh. Maximum time the political situation is unstable. The political leaders of Bangladesh do not think about the harm ness of unstable political situation. Foreign companies always fear about the political situation. Many times political groups call hartal, strike etc. In that time the business could not run in own way. The office is closed in hartal day. In that day, they cannot work. For closing the work they face heavily loss. They could not deal delegates or business partners. All the foreign company faces this problem varies much in our country. This company also faces this problem in our country. In hartal day, they keep close all of their official work. For avoiding loss, they do their officials work in holiday.

Export Import:
For doing business in any country, the export import policy of host country plays a vital role. Every country has the export import policy for business enterprise. They make the policy according to their benefits. Some times it becomes beneficial for exporter and importer. Custom duty also include in export import policy. Comparatively custom duty is relatively high in Bangladesh and company bear extra expenses than other country.

Coca-Cola co. in Bangladesh faces problems and their solutions:

There are a huge percentage of sales that decreases in the last few years. To cover this percentage up they must increase their sales with the help of sales promotion, liner promotion etc. Lack of advertising is another main problem of Abdul Monem Limited. Now they are in a good position, but to hold this position constantly they have to advertise more. Because their target is should to capture the position not only for now but also for future. Abdul Monem Limited has no web site as other competitors have their own personal web sites. So they have to launch their own web sites. To create professionalism in the organization the management of the company has to trainings to their employees. They have to put attention more in sponsorship.
Survey Questions & findings:

The survey was done on around 50 consumers. Their opinion, overall view point, judgments are given below in terms of pie charts for better understanding and it is also figured out what they actually want:

1. People prefer soft drinks in terms of brand 12%,color 0%,test 52%,quality 26% &price 10%.

Brand Color Test Quality Price

2. Who do you think is the first competitor of coca cola? Pepsi 62% ,RC 20%,URO 6%, Pran 4%, Virgin 8%.

PEPSI RC URO PRAN VIRGI N

3. If the people were given a free soft drink, which one would they choose? Pepsi 3%,RC 14%, URO4%Pran 8%Virgin 4%Coca cola 65%,Others 2%

PEPSI RC URO PRAN VIRGIN

4.Dil thanda to dunya thandawhich companies sloganCOCA is this?PEPSI 4% , COLA RC 2% , URO 6%,PRAN 0%,VIRGIN O%,COCA COLA 88%. OTHERS

PEPSI RC URO PRAN VIRGIN COCA COLA

5.Do you think the people get to drink Coca cola wherever they want it? YES 72%,NO 20%,NO COMMENTS 8%.

YES NO NO COMMENTS

6.Which drink is mostly preferred by the people under Coca cola brand? COKE 42%,SPRITE 42%,FANTA 12%,SUNFILL 4%.

COKE SP RITE FANTA SUNFILL

Books
Principles of Marketing by Philip Kotlar Analysis from customer survey.

Web sites: 1. 2. 3. 4. 5. 6. 7. 8. 9. www.coca-cola.com www.adbrands.net www.coca-cola features.com www.coca-cola history.com www.subliminalworld.com www.pepsi Vs coca-cola .com www.populist.com http://en.wikipedia.org/wiki/Coca-Cola http://en.wikipedia.org/wiki/Fanta

http://images.google.com.bd/images? hl=en&q=coke+cola&gbv=2&aq=3&oq=COKE