Executive summary

Akij Food and Beverage Limited (AFBL) is the sister concern of Akij

Group, one of the prominent and leading business houses in Bangladesh. The

official inauguration of that concern started in the beginning of 2007. From the

beginning AFBL launched two new carbonated soft drinks clemon and farm fresh

UHT pure milk products in the market. AFBL has successfully come up with a

variety of its products like carbonated soft drinks mojo, lemu speed energy drink,

cheeky monkey snakes and spa drinking water. The main marketing policy of the

company is they use to undertake huge advertisement and promotional activities

to create brand awareness and product positioning among the mindset of the

target customers. Not only that AFBL started to change the concept of

advertisement of soft drinks too by using new creative and concepts. And they

were successful in terms of market share and positioning in the competitive soft

drinks market of Bangladesh.

By using the reputation and market demand, Akij Food and Beverage Limited

lunched a new category of soft drinks that is natural pure fruit juice under the

Brand name of “Frutika” in August 2008. They targeted the holy month of

Ramadan to launch the new product into the market. In that time they also

undertake a huge advertisement and promotional campaign following their

previous concept Mojo and Lemo. The used different Medias to draw the

attention of the consumers like:

Press Advertisement (News paper & Magazines).

Television Commercial (National & Cable TVs). Radio Advertisement

(BD Radio & Private radio stations).

Outdoor Advertisement (Billboards, Pestering, Neon sign etc).

Mobile Campaign (Road shows).

Moving Advertisements (Advertisements on vehicles).

Public Relations (Sponsoring & arranging Spot game shows).

Sales Promotion (Sampling, Gift and scratch card offer) etc.

Basically they used all the elements of marketing communication tools to

create awareness and position their Brand. And they were successful enough to

draw the positive attention of the customers. At present they are offering three

flavor of Frutika like Mango, Orange and Grapes. In all of the cases they offer in

two sizes of pack that are 250ml (at taka 25) and 1000ml (at taka 70) plastic

bottle.

In our report we worked to identify the “Impact of promotional activities to

create product appeal among the target customers”. So to accomplish our

objectives we have undertaken a field survey on the customers and as well as

the retailer of Frutika to know the impact of Advertisement and promotional

activities to create fascination towards the product stimulates the secondary

sales. That is why we made two different questionnaires for the Customers and

the Retailers to collect information from the respondents. At the same time we

also undertaken as exploratory research on the other existing juice brands

available in the country to make a comparison and contrast between Frutika and

them.

After collecting all the related information and data analysis, we found that

the advertisement and promotional activities were very much successful to create

brand awareness and product appeal among the target customers. But it is found

that comparing with the other existing brand, price of Frutika is premium about

25-30% more. So the customers are not satisfied about this issue. More over

there is another vital point to be noted that Frutika if offering only three flavor

(mango, orange and grape) and providing only in two pack sizes (250ml and

1000ml plastic bottle rater any other sizes and foil pack). That is why customers

are not feeling convenient while purchasing Frutika fruit juices.

Situation Analysis

Market Analysis:

The market analysis investigates both the internal and external business

environment. It is vital that Akij Beverage Limited carefully monitor both the

internal and external aspects regarding it’s business as both the internal and

external environment and their respective influences will be decisive traits in

relation to Coke’s success and survival in the soft drink industry.

Internal Business Environment

The internal business environment and its influence is that which is to

some extent within the business’s control. The main attributes in the internal

environment include efficiency in the production process, through management

skills and effective communication channels. To effectively control and monitor

the internal business environment, Akij Beverage Limited must conduct continual

appraisals of the business’s operations and readily act upon any factors, which

cause inefficiencies in any phase of the production and consumer process.

External Business Environment

The External business environment and its influences are usually powerful

forces that can affect a whole industry and, in fact, a whole economy. Changes in

the external environment will create opportunities or threats in the market place

Akij Beverage Limited must be aware off. Fluctuations in the economy, changing

customer attitudes and values, and demographic patterns heavily influence the

success of Akij Beverage Limited products on the market and the reception they

receive from the consumers.

SWOT Analysis:

SWOT stands for Strengths Weakness Opportunities Threats. SWOT

analysis is a technique much used in much general management as well as

marketing scenarios. SWOT consists of examining the current activities of the

organization- its Strengths and Weakness- and then using this and external

research data to set out the Opportunities and Threats that exist.

Strengths:

Akij Beverage Limited has been a complex part of world culture for a very long

time. The product's image is loaded with over-romanticizing, and this is an image

many people have taken deeply to heart. The Akij Beverage Limited image is

displayed on T-shirts, hats, and collectible memorabilia. This extremely

recognizable branding is one of Akij Beverage Limited greatest strengths.

"Enjoyed more than 685 thousand times a day around Bangladesh Akij Beverage

Limited stands as a simple, yet powerful symbol of quality and enjoyment".

Additionally, Akij Beverage Limited bottling system is one of their greatest

strengths. It allows them to conduct business on a global scale while at the same

time maintain a local approach. The bottling companies are locally owned and

operated by independent business people who are authorized to sell products of

the Akij Beverage Limited Company. Because Coke does not have outright

ownership of its bottling network, its main source of revenue is the sale of

concentrate to its bottlers.

Weaknesses:

Weaknesses for any business need to be both minimized and monitored in order

to effectively achieve productivity and efficiency in their business’s activities, Akij

Beverage Limited is no exception. Although domestic business as well as many

international markets are thriving, Akij Beverage Limited has recently reported

some "declines in unit case volumes in Indonesia and Thailand due to reduced

consumer purchasing power." According to an article in Fortune magazine, "In

Japan, unit case sales fell 3% in the second quarter [of 2010]...scary because

while Japan generates around 5% of worldwide volume, it contributes three times

as much to profits. Latin America, Southeast Asia, and Japan account for about

35% of Coke's volume and none of these markets are performing to expectation.

Coca-Cola on the other side has effects on the teeth which is an issue for health

care. It also has got sugar by which continuous drinking of Coca-Cola may cause

health problems. Being addicted to Coca-Cola also is a health problem, because

drinking of Coca-Cola daily has an effect on your body after few years.

Opportunities:

Brand recognition is the significant factor affecting Coke's competitive position.

Coca-Cola's brand name is known well throughout 94% of the world today. The

primary concern over the past few years has been to get this name brand to be

even better known. Packaging changes have also affected sales and industry

positioning, but in general, the public has tended not to be affected by new

products. Coca-Cola's bottling system also allows the company to take

advantage of infinite growth opportunities around the world. This strategy gives

Coke the opportunity to service a large geographic, diverse area.

Threats:

Currently, the threat of new viable competitors in the carbonated soft drink

industry is not very substantial. The threat of substitutes, however, is a very real

threat. The soft drink industry is very strong, but consumers are not necessarily

married to it. Possible substitutes that continuously put pressure on both Pepsi

and Coke include tea, coffee, juices, milk, and hot chocolate. Even though Coca-

Cola and Pepsi control nearly 40% of the entire beverage market, the changing

health-consciousness of the market could have a serious affect. Of course, both

Coke and Pepsi have already diversified into these markets, allowing them to

have further significant market shares and offset any losses incurred due to

fluctuations in the market. Consumer buying power also represents a key threat

in the industry. The rivalry between Pepsi and Coke has produce a very slow

moving industry in which management must continuously respond to the

changing attitudes and demands of their consumers or face losing market share

to the competition. Furthermore, consumers can easily switch to other beverages

with little cost or consequence.

Product Life cycle:

When referring to each and every product or service ever placed before the

consumer i.e. in the long term all the existing products and services are dead. For

e.g.:- Replacement of Ford Cortina ( a highly successful car) by Ford Sierra, the

replacement of sierra by the Ford Mondeo and the replacement of the old

Mondeo by the new Mondeo in 2001. So every product is born, grows, matures

and dies. So in the commercial market place products and services are created,

launched and withdrawn in a process known as Product Life Cycle.

To be able to market its product properly, a business must be aware of the

product life cycle of its product. The standard product life cycle tends to have five

phases: Development, Introduction, Growth, Maturity and Decline. Coca-Cola is

currently in the maturity stage, which is evidenced primarily by the fact that they

have a large, loyal group of stable customers.

Furthermore, cost management, product differentiation and marketing have

become more important as growth slows and market share becomes the key

determinant of profitability. In foreign markets the product life cycle is in more of a

growth trend Coke's advantage in this area is mainly due to its establishment

strong branding and it is now able to use this area of stable profitability to

subsidize the domestic Cola Wars.

Marketing Objectives

The objective is the starting point of the marketing plan. Objectives should seek

to answer the question 'where do we want to go?’ The purposes of objectives

include:

-> To enable a company to control its marketing plan.

-> To help to motivate individuals and teams to reach a common goal.

-> To provide an agreed, consistent focus for all functions of an organization.

All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic,

and Timed.

Specific - Be precise about what you are going to achieve

Measurable - Quantify you objectives

Achievable - Are you attempting too much?

Realistic - Do you have the resource to make the objective happen (men,

money, machines, materials, and minutes)?

Timed - State when you will achieve the objective (within a month? By February

2012)

1. Market Share Objectives:

To gain 60% of the market for soft drinks industry by September 2012.

2. Profitability Objectives:

To achieve a 20% return on capital employed by August 2012

3. Promotional Objectives

To increase awareness of the product on the market.

4. Objectives for Survival

To survive the current market war between competitors.

5. Objectives for Growth

To increase the size of the worldwide Coca Cola enterprise by 10%.

Selecting Target Market

Once the situation analysis is complete, and the marketing objectives

determined, attention turns to the target market. The soft drink market is very

large, and the business cannot be “all things to all people”, so it must choose

which market segments have the greatest potential. The target market is the

group of customers on whom the business focuses attention. The target market

is where Coca Cola focuses its marketing efforts as it feels this is where it will be

most productive and successful. The target market for Coca cola is very wide as

it satisfy’s the needs for many different consumers, ranging from the healthy diet

consciousness through Diet Coke to the average human through its best selling

drink regular Coke. Most Coke products satisfy all age groups as it is proven that

most people of different age groups consume the Coca Cola product. This market

is relatively large and is open to both genders, thereby allowing greater product

diversification.

There are four broad ways which Coca Cola can segment its market:

-> Mass marketing

-> Concentrated marketing

-> Differentiated marketing

-> Niche marketing

The most apparent method used by Coca Cola is with no doubt the differentiated

marketing method as Coke satisfies’s a range of different markets. Diet coke

satisfy’s the weight consciousness, regular coke, sprite, fanta the average

human, coffee, iced tea etc. Each group of beverages satisfies a particular group

of people but majority the average human.

Developing the Marketing Mix

The marketing mix is probably the most crucial stage of the marketing planning

process. This is where the marketing tactics for each product are determined.

The marketing mix refers to the combination of the four factors (price, promotion,

product, and place) that make up the core of a business’s marketing strategy. In

this step of the marketing planning process, marketing mix must be designed to

satisfy the wants of target markets and achieve the marketing objectives. The

most successful businesses have continually monitored and changed their

marketing mix due to respective internal and external factors and have monitored

the external business environment in order to maximize their marketing mix

components.

Product:

Many Products are physical objects that you can own and take home. But

the word product means much more than just physical goods. In marketing,

product also refers to services, such as holidays or a movie, where you enjoy the

benefits without owning the result of the service.

Businesses must think about products on three different levels, which are

the core product, the actual product and the augmented product. The core

product is what the consumer is actually buying and the benefits it gives. Coca

Cola customers are buying a wide range of soft drinks. The actual product is the

parts and features, which deliver the core product. Consumers will buy the coke

product because of the high standards and high quality of the Coca Cola

products. The augmented product is the extra consumer benefits and services

provided to customers. Since soft drinks are a consumable good, the augmented

level is very limited. But Coca Cola do offer a help line and complaint phone

service for customers who are not satisfied with the product or wish to give

feedback on the products.

Positioning

Once a business has decided which segments of the market it will

compete in, developed a clear picture of its target market and defined its product,

the positioning strategy can be developed. Positioning is the process of creating,

the image the product holds in the mind of consumers, relative to competing

products. Coca Cola and Franklins both make soft drinks, although Franklins may

try to compete they will still be seen as down market from Coca Cola. Positioning

helps customers understand what is unique about the products when compared

with the competition. Coca Cola plan to further create positions that will give their

products the greatest advantage in their target markets. Coca Cola has been

positioned based on the process of positioning by direct comparison and have

positioned their products to benefit their target market. Most people create an

image of a product by comparing it to another product, thus evident through the

famous battles between Coca-Cola and Pepsi products.

Branding

It is often hard to say exactly why we buy one company’s product over

another. Companies such as Nike and Adidas spend large amounts of money

trying to win consumers away from their competitors who make products that are

very similar. The popularity of the brand is often the deciding factor. Over the time

Coca Cola has spent millions of dollars developing and promoting their brand

name, resulting in world wide recognition. 'Coca-Cola' is the most recognized

trademark, recognized by 94% of the world's population and is the most widely

recognized word after "OK". Coca Cola’s red and white colours and special

writing are all examples of world-wide trademarks.

There are a number of branding strategies: Generic brand strategy,

Individual brand strategy, Family brand strategy, Manufacturer’s brand strategy,

Private brand strategy and Hybrid brand strategy. Coca Cola utilizes the

Individual brand strategy as Coca Cola’s major products are given their own

brand names e.g Fanta, Sprite, Coca Cola etc although they maybe presented as

different lines they operate under the name of Coca Cola.

Packaging

Packaging, which is not as highly perceived by businesses, is still an

important factor to examine in the marketing mix. Packaging protects the product

during transportation, while it sits in the shelf and during use by consumers; it

promotes the product and distinguishes it from the competition. Packaging can

allow the business to design promotional schemes, which can generate extra

revenue and advertisements. Coca-Cola has benefited from packaging the

product with incentives and endorsements on the labeling as a promotional

strategy to increase its volume of sales and revenue.

Price:

Price is a very important part of the marketing mix as it can effect both the

supply and demand for Coca Cola. The price of Coca Cola’s products is one of

the most important factors in a customer’s decision to buy. Price will often be the

difference that will push a customer to buy our product over another, as long as

most things are fairly similar. For this reason pricing policies need to be designed

with consumers and external influences in mind, in order to effectively achieve a

stable balance between sales and covering the production costs.

Price strategies are important to Coca Cola because the price determines

the amount of sales and profit per unit sold. Businesses have to set a price that is

attractive to their customers and provides the business with a good level of profit.

Long before a sale was ever made Coca Cola had developed a forecast of

consumer demand at different prices which inevitably determined whether or not

the product came on the market, as well as the allocation of adequate money and

resources to produce promote and distribute he product.

Pricing Strategies and Tactics

The pricing Strategy a business will use will have to focus on achieving the

marketing plan’s objectives and support the positioning of the product, and take

external factors such as economic conditions and competitors in to account.

There are 5 strategies available to business: Market skimming pricing,

Penetration pricing, Loss leaders, Price Points and Discounts. Over the years

Coca Cola has used Penetration Pricing as a way of grabbing a foothold in the

market and won a market share. It’s product penetrated the marketplace. Once

customer loyalty is established as seen with Coca Cola it is then able to slowly

raise the price of its product. There has been a fierce pricing rivalry between

Coca Cola and Pepsi products as each company competes for customer

recognition and satisfaction. Till now it appears as if Coke has come up on top,

although in order to gain long term profits Coke had to sacrifice short term profits

where in some cases it either went under of just broke even, but as seen it has

been all for the best.

Pricing Methods

Good pricing decisions are based on an analysis of what target customers

expect to pay, and what they perceive as good quality. If the price is too high,

consumers will spend their money on other goods and services. If the price is too

low, the firm can lose money and go out of business.

Pricing methods include: Cost based Pricing, Market based pricing and

Competition based Pricing. Over the years Coca has lost ground here in it’s

pricing but has regained its strength as it employed the Competition-based

pricing method which allowed it to compete more effectively in the soft drink

market. Leader follower pricing occurs when there is one quite powerful business

in the market which is thought to be the market leader. The business will tend to

have a larger market share, loyal customers and some technological edge, thus

the case currently with Coke; it was first the follower but through effective

management has now become the leader of the market and is working towards

achieving the marketing objectives of the Coca Cola. Survival in the market

place, own 60 % of market share by 2012, increase further awareness of product

and a return on 20% on capital employed for August 2012.

Promotion:

In today’s competitive environment, having the right product at the right

place in the right place at the right time may still not be enough to be successful.

Effective communication with the target market is essential for the success of the

product and business. Promotion is the p of the marketing mix designed to inform

the marketplace about who you are, how good your product is and where they

can buy it. Promotion is also used to persuade the customers to try a new

product, or buy more of an old product.

The promotional mix is the combination of personal selling, advertising,

sales promotion and public relations that it uses in its marketing plan. Above the

line promotions refers to mainstream media: Advertising through common media

such as television, radio, transport, and billboards and in newspapers and

magazines. Because most of the target is most likely to be exposed to media

such as television, radio and magazines, Coca Cola has used this as the main

form of promotion for extensive range of products. Although advertising is usually

very expensive, it is the most effective way of reminding and exposing potential

customers to Coca Cola Products. Coca Cola also utilizes below the line

promotions such as contests, coupons, and free samples. These activities are an

effective way of getting people to give your product a go.

Place and Distribution:

The place P of the marketing mix refers to distribution of the product- the

ways of getting the product to the market. The distribution of products starts with

the producer and ends with the consumer.

One key element of the “Place/Distribution” aspect is the respective distribution

channels that Coca Cola has elected to transport and sells its product.

Selecting the most appropriate distribution channel is important, as the choice will

determine sales levels and costs. The choice for a distribution channel for any

business depends on numerous factors, these include:

• How far away the customers are;

• The type of product being transported;

• The lead times required; and;

• The costs associated with transport;

There are four types of distribution strategies that Coca Cola could have chosen

from, these are: intensive, selective, exclusive and direct distribution. It is

apparent from the popularity of the Coca Cola’s product on the market that the

business in the past used the method of intensive distribution as the product is

available at every possible outlet. From supermarkets to service stations to your

local corner shop, anywhere you go you will find the Coca Cola products.

Physical Distribution Issues

Coca Cola needs to consider a number of issues relating to the physical

distribution of its soft drink products. The five components of physical distribution

are, order processing, warehousing, materials handling, inventory control,

transportation. Coca Cola must further try to balance their operations with more

efficient distribution channels.

Order Processing

Coca Cola cannot delay their processes for consumer deliveries (i.e.

delivery to selling centers), as this is inefficient business functioning and is

portrays a flawed image of the product and overall business.

Warehousing and inventory control- warehousing of Coca Cola products is

necessary. Inventory control is another important aspect of distribution as

inventory makes up a large percentage of businesses assets. Choosing the

correct and desired inventory measure that Jackson’s sees as most effective is

vital. Jackson’s must remember though that there are factors involved with

inventory control that can hinder the products sales and customer perceptions

(hazards, distribution from storage facilities, etc…).

Materials handling

This deals with physically handling the product and using machinery such

as forklifts and conveyor belts. When holding products, then Coca Cola has

benefited from purchasing or renting respective machinery.

Transportation

Transporting Coca Cola products is the one most important components of

physical distribution. Electing either to transport the sports drink by air, rail, road

or water depends on the market (i.e. global, or domestic?) and depends on the

associated costs. The most beneficial transportation method for Coca Cola would

be ROAD if the product were moved around from storage to the cost centers.

Implementing, Monitoring and Controlling

Financial Forecasts

Financial forecasts are predictions of future events relating strictly to expected

costs and revenue costs for future years. There are five major marketing

expenditures, which include research costs, product development costs, product

costs, promotion costs and distribution costs.

Sales force composite is the most logical method in forecasting revenue. This

involves estimates from individual salespeople to sell to work out a total for the

whole business. Once these costs and revenues are forecasted, management

can then decide which combination of marketing mix strategies will deliver the

most sales revenue at the lowest cost.

Implementing

Implementation is the process of turning plans into actions, and involves all the

activities that put the marketing plan to work. Successful implementation depends

on how well the business blends its people, organizational structure and

company culture into a cohesive program that supports the marketing plan.

For its further success, Coca Cola must impose several key changes. Production

needs to be on time and meet the quota demanded from wholesalers. It must

also be efficient so as not to build inventory stocks and inventory prices. The

marketing needs to be motivated and knowledgeable about the product. The

forms of promotion such as advertising must be attracting and enticing to the

target market to get the greatest amount of exposure possible for the product.

This will ensure the success of the product in the stores. Distribution of the

product must be efficient. This problem has already been taken care of with

convenient transport routes to commercial areas and transport already being

arranged.

Monitoring and Controlling

Monitoring and controlling allows the business to check for variance in the budget

and actual. This is important because it allows Coca Cola to take the necessary

actions to meet the marketing objectives. There are three tools Coca Cola should

use to monitor the marketing plan. They are the following:

i. Sales Analysis

The sales analysis breaks down total business sales by market segments

to identify strengths and weaknesses in the different areas of sales. Sellers of

Coca Cola products vary from major retail supermarkets to small corner stores.

This gives the products maximum exposure to customers at their convenience.

ii. Market Share Analysis

Market share analysis compares Coca Cola’s business sales performance

with that of its competitors. Coca Cola looks to increase its market share by over

60%. With the changes Coca Cola is currently undergoing, they aim to regain an

iron fist control of the market. Target market various age groups and lifestyles

from high school students too universities, and male or female.

iii. Marketing Profitability Analysis

This analysis looks at the cost side of marketing and the profitability of

products, sales territories, market segments and sales people. There are three

ratios to monitor marketing profitability; they are market research to sales,

advertising to sales and sales representatives to sales. The results of these three

tools can help Coca Cola determine any emerging trends, such as the need for a

different product. Comparing these results with actual results gives the business

an idea on when to change.

iv. Market Research

When attempting to implement a new Marketing plan a business must

address its target market and conduct the relevant information to insure the new

marketing plan both differs from the old and is better for the business. When

conducting market research a business must first define the problem and then

gather the appropriate information to solve the problem. There are 3 types of

information a business can gather to solve its problems.

->Exploratory Research which clarifies the problem and searches for ways to

address it.

->Descriptive Research is used to measure and describe things like the market

potential for a product and characteristics of the target market.

->Casual Research is used to test a hypothesis about a cause and effect

relationship.

Coca Cola through its market research has addressed all three types of research

to define the problem raised by shareholders and gathered information to serve

their needs.

Factors Influencing Consumer Choice

When making decisions on products a business must look at factors that

influence consumer choice such as psychological factors, Socio-culture factors

Economic factors and Government Factors.

Psychological Factors:

Such as motivation, perception, lifestyle, personality and self concept,

learning, and attitudes influence the consumer’s behavior towards a product and

Coca Cola has addressed this issue by introducing Diet Coke to satisfy different

lifestyles.

Socio-cultural factors:

Such as culture, subculture, socio-economic status, family and reference

groups influence the consumer’s behavior towards a product.

Economic factors:

Such as Disposable income and discretionary income. Coca Cola has

addressed this side of the influence by maintaining a low price on the price of its

products.

Government Factors:

Such as new regulations, inflation, interest rates all influence consumer

spending and choice.

Conclusion

Akij Group is one of the fastest business conglomerates in Bangladesh. Akij

Group growth is day by day increase and it Coverage: Around 90% of

Bangladesh based on the Annual Report-2008.The company of Akij Food and

Beverage has a product line of almost all the types of drink and snacks. We

made an inquiry regarding customers find solution for meeting the need of lemon

flavored clear carbonated beverage within Clemon’s target range the percentage

is very good. It has not been long since Akij group brought out Mojo and Lemu.

They have already gained huge popularity. The recent success of Akij group is

Frutika, which delivers the promise of no preservatives.The Group has plans for

setting up more projects. The projects are already in pipeline. Foreign investors

have shown keen interest in joining with us for joint ventures. The matter is under

our active consideration and will hopefully soon mature. This will also help the

nation's economy growth and will create job opportunities to various

professionals.

Akij Group is also involved in socio-cultural activities. The Group has been

operating a sizeable orphanage free of charge in district town. The Group has

also acquired a modern mother & children hospital previously owned by Save the

Children (UK). The hospital is being operated as a non-profitable concern. But

the company needs to be more concerned about society and environment.

Because Industries are most responsible for pollution that could occur harm for

environment. And AFBL also need to be involved with more social event.

Because have the resources necessary to solve the social problems as many

business organizations often have surplus revenues.