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.