orginal plan

Marketing Plan on Pran Beverage LTD “Maxx Cola”

1. Executive Summary

MaxxCola is the first-ever local carbonated soft drink in Bangladesh from Pran Beverage Ltd which is available in all local stores and restaurants around the country. Pran Maxx Cola first came out in 2008. Since then it’s growing its popularity among the consumers and gradually it’s capturing a significant market share in Beverage Industry. MaxxCola guarantees a complete risk free drink and it doesn’t add any artificial colors, any sugar and MaxxCola uses natural mineral water.

MaxxCola continuously try harder to make the consumers cheerful though the products, culture and frequent communication. Pran MaxxCola have a full dedicated support family consists of Expert technical support and maintenance, 7-days a week, 364 days a year. It has round the clock service call to ensure you optimum drink quality every time.

MaxxCola is a whole new level of drink which can be afforded easily. The colors are stronger and with good reason – these products only have the finest quality, premium ingredients. When we take off the cap and we will smell the difference as the aroma of perfectly blended ingredients and flavor essences set you up for impression of an incredible cola experience. For a nontraditional cola experience MaxxCola is worth trying.


2. Introduction

Background of the study

The following assignment was assigned by the course teacher of Marketing Management,

Prof. Dr. Serajul Hoque, as an academic requirement.

Objective of the study

This assignment is about “Creating and Implementing Promotional Strategies of a Product”.

The purpose of the study is to help us to design and carry out effective promotional strategies

during launching of a product. Moreover, it will enable us how to apply different promotional

strategies in context of real market scenario.

Methodology

Sampling Method

There are two types of sampling method:

1. Non-Probability Sampling

2. Probability Sampling

Non-Probability Sampling:

Non-Probability Sampling is a non-random and subject method of sampling where the

selection of the population elements comprising the sample depends on the personal

judgment or the discretion of the sampler.

There are four primary types of non-probability sampling methods:

i. Availability Sampling

ii. Quota Sampling

iii. Purposive Sampling

iv. Snowball Sampling


Probability Sampling:

The idea behind this type is random selection. More specifically, each sample from the

population of interest has a known probability of selection under a given sampling scheme.

There are four categories of probability sampling:

i. Simple Random Sampling

ii. Systematic Sampling

iii. Stratified Random Sampling

iv. Cluster Sampling

From the above mentioned sampling method, we have used one of the non-probability

sampling methods, that is, Availability Sampling method.

Availability Sampling is a method of choosing subjects who are available or easy to find.

This method is also sometimes referred to as haphazard, accidental, or convenience sampling.

The primary advantage of the method is that it is very easy to carry out, relative to other

methods. A researcher can merely stand out on his/her favorite street corner or in his/her

favorite tavern and hand out surveys. There are some advantages to this design - it is easy to

do, particularly with a captive audience,

Area Sampling

Area sampling is a method of sampling when no complete frame of reference is available.

The total area under investigation is divided into small sub-areas which are sampled at

random or by some restricted random process. Each of the chosen sub-areas is then fully

inspected and enumerated, and may form a frame for further sampling if desired. This method

is used when a complete frame of reference is not available.


In our sampling procedure, we have chosen the students of our university from a section of

3rd batch of Faculty of Business as our area sampling.

Sampling Size

Sampling size (n) is the number of sampling units which are to be included in the sample. In

our sampling procedure, the sampling size (n) used in our survey is 30 numbers of

respondents.

Sources of Information

There are two methods of collecting data:

1) Primary data collection method.

2) Secondary data collection method.

In this assignment, we used both of the primary and secondary data sources. The collection of

data from the respondents that we have taken through survey using questionnaire is primary

data. It is because it has been collected for the first time for the purpose of this assignment.

The data that we have taken from the internet, books, and other subsidiary sources (i.e. the

data that have used for second time) is secondary data.

Limitation of the Study

It is costly to make and print advertisement.

It is difficult to prepare and design print ads due to lack of skill.

It is time-consuming and also difficult to collect the data.

The study is based on sampling, so we cannot get the exact result.

The information given by the customers may be misleading.


Literature review

Vision Any company’s vision is actually the dream to which the company always strives to reach where it may become possible or not. Here it is also not apart for Akij Group. Expanding the business in the abroad fully and becoming one of the market leaders internationally- this company thinks in this way as a part of their vision.

Mission The mission of Akij Group is to be the market leader by 2009 through their best effort, suitable and competitive marketing strategy and the consumers support. Now they are in the position of challenger and their vision focuses on those missions, goals and objectives which will make them able to be the leader from the challenger to the leader in the market.

Goal

The company’s goal is to maximizing the market share in their every categorized business including Akij Food & Baverage Ltd, Akij Cement Company Ltd, Dhaka Tobacco Industries, Akij Textile Mills Ltd and Akij Particle Board Mills Ltd.

Objective

The objective of Akij Group is to provide the quality products and services in such a form that the customers demand.

Strategy


The company always believes in pull strategy rather than push strategy. They first of all find out the customers demand about how, when, where, and what type of product ad services they want. Then according to that they provide their services at the right place and in the right time.

Akij Group

History of Akij Group stretches back to later part of the forties. In its infancy, the Group started in humble way with jute trading which was known as the golden fiber of the country, earning highest amount of foreign exchange. Akij Group’s ceaseless efforts with dynamic management and support from our numerous clients have led our Group in diversifying its businessactivities. In the second phase, the Group went into manufacturing handmade cigarettes popularly known as bidis. This sector gave a real boost to the revenue earning of the Group as well as making a substantial contribution to government exchequer. With the passage of time, the Group undertook new ventures and presently there are 15 units of industries under its umbrella like cigarettes, handmade cigarettes, printing & packaging, textiles, hand board, pharmaceutical, leather processing and real-estate business are in operation, catering jobs for more that 32,000 people in various categories. 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 by Ad-Din Welfare Trust.

Akij GroupAkij Jute Mills Ltd.

Akij Match Factory Ltd.Akij Food & Baverage Ltd.Akij Cement Company Ltd.Dhaka Tobacco Industries

Akij Textile Mills Ltd.Akij Particle Board Mills Ltd.Akij Printing & Packaging Ltd

Akij Corporation Limited.

Composition of Akij Group of Companies Ltd.

Akij Food & Baverage Ltd.


Akij Food & Beverage Ltd. has been established at a beautiful site Krishnapura, Dhamrai of Dhaka. It has come with the best food & beverage in Bangladesh. There are various types of drink. MOJO is the brand name of cola, Lemu is the brand name of Lemon and Speed is the brand name of energy drink. Immediately after the introduction of the brand it became very popular among its consumer because of the high quality and intensive distribution in every nook and corner of the country.

Product profile

Product: MOJO Cola It has been a long time that Akij Food & Beverage Ltd. has been established at a beautiful site Krishnapura, Dhamrai of Dhaka. It has come with the best food & beverage in Bangladesh. Among its beverages (Lemu, Speed & MOJO); MOJO is the most popular drink among the young people as well as the children for its fantastic packaging, TVC and good taste. MOJO was launched on 14th April, 2005 at Pohela Baishakh. Introduction of the brand MOJO it becames very popular among its consumer because of the high quality and intensive distribution in every nook and corner of the country. MOJO focuses on mainly young people who like the enjoyment and fun. The word “MOJO”has come from the word “Moja”. From the very beginning of its launching the company has provided subsequent and continuous heavy advertisement through different mess media. it has also given free samples to the target market. It also did an exclusive road show and their exposing to the customers during the Trade Fair 2006 was very much gorgeous. As a part of its success it can be mentioned here that during this recent year the company earned 54 crore only selling the MOJO where 52% of total sale has been made in Dhaka city. That meansit has been very much popular in Dhaka city than any other division. Manufacturing As a member of the Akij Food & Beverage MOJO is manufactured in the factory which is situated in Krishnapura, Dhamrai, Dhaka, Bangladesh. Packaging The beautiful and colorful packaging of MOJO attracts the customer. It consists of red, white, black, blue, yellow, and green and so on. It includes some everyday aspects of our day-to-day life such as rickshaw, truck are plying on the road, building, football, cricket ball, cell phone, antenna, electric wear, a boy with a guiter. The size of bottle (specially the 250 ml) and can is handy which the customers like most. The packaging also includes the ingredients of MOJO. The word MOJO has been written in both English and Arabic.


Pay off line The pay off line for MOJO is “It’s inside u”.

Ingredients The ingredients that are used to make the MOJO are-

1. Refined Sugar,2. Carbon Dioxide,3. Natural Flavor,4. Caramel Color,5. Acidulant,6. Caffeine etc.

Nutrition Nutrition facts per 100 ml are-

Energy = 43 kcl. Fat = 0.00 gm Protein = 0.00 gm Carbohydrate = 10.5 gm

3. Situation Analysis

In the Situation Analysis we have to understand the customer perception, who is the buyer of our product, the perceived value of our product.

Consumer’s perception

The consumer information processing is the main thing that helps consumer to gather information of specific product. MOJO cola does this by exposing them to stimuli, gaining their attention, making those stimuli easy to interpret, making them learn and finally installing the stimuli in the memory of the consumer. Perception The first three step of information processing (Exposure, attention, and interpretation) constitute perception. Exposure


MOJO is trying to expose itself to its target market through various means. They are: TVCs At the launching period, MOJO cola went for massive TV ads to expose their self to their target aspect. After that came with their new TV ads with the current event. In the time of cricket world cup, they came with their new TV ads, which told us about the largest cricket bat road show. Newspaper MOJO cola covered the main daily newspapers of the country. This helps them to survive in the market. Billboards Some (not that much) billboards have been put up. However, with the billboards, they came up with their new offerings and people became aware of it. Sponsor of the shop They became the sponsor of the by making the shop sign. They covered many shops, which helps them to expose their self. The colorful shop sign is the most important thing, which helps them to make them expose.

Attention Attention occurs when the stimulus activates one or more sensory receptor nerves and the resulting sensation go to the brain for processing. MOJO Company tries to gain attention mainly through the following ways.

Stimulus Factor the Stimulus Factor that MOJO uses are: Size Big billboards and Shop signs are the best example. This generates response among the people with the result that people test it and became a loyal customer. Color & Movement The TV ads are very colorful. The brochures are also so much colorful which helps MOJO to create response among the target aspect. Position In newspaper, they place their ads in the front or last page, which is the reason that it succeed to attract their customer. Most of the time they place their ads at the right hand corner of the page and that helps to grab the attraction. But most of the time the placement of their billboards is wrong. For this sometimes they fail to grab the attention of the people. Slogan ‘It’s inside you’, as this is a low involvement product so it is good strategy to keep the slogan short. People think a little while they are purchasing a cola so this easy slogan helps them create attention. Individual Factor When people are thirsty, which is usually short term, people tend to notice and get attracted by soft drink ads, which present their drinks in an attractive way. By TV, ads and the shop sign MOJO cola trying to grab the attraction. When people are thirsty then they do not think what I am drinking they just remember the ads and or see the ad and buy it. Example: Near the shopping mall, cruddy area such as Stadium etc.

Situational Factors Program involvement MOJO targets the young generation who are more interested music, and they are serious making these people aware. By giving sponsorship of underground concert they and other general concert they creating awareness among the people.


Non- focused attention Hemispheric Lateralization MOJO is trying to influence the right side of the brain. We know an image can tell a thousand words. Their imagery representation helps them to create more response from their target aspect.

Buyers & Target group:

Resellers group: Chain superstores, hotels and restaurants, fast food shop, university canteen, bakery & confectionary.Consumers group: All age group, especially young age group, teen age group. Old age people are also in our consumer group.

Perceived value:

SI. No. Brand Attribute

1 Mojo cola Natural flavor, very known brand, export quality, attractive package

2 RC cola Very known brand, pricing advantage, price liberal

3 7up Known brand, liberal price, good taste

4 Pran max cola Known brand, policy on credit, local brand image for class people, pricing advantage,

policy on credit

5 Virgin Pricing advantage, policy on credit, more free offer

SI No. Brand % Awareness

1 Mojo cola 60%

2 RC cola 75%

3 7up 65%

4 Pran max cola 29%

5 Virgin 45%


4. Market Opportunity and Issues

Strength:

Known brand Experienced management Fully automated machine Trained and skilled employee Good network

Weakness:

low in variety no fixed target set up yet to SR for cola lack of highlighting in general & super store ( for customer ) outcome from this product does not permits huge investment

What steps we will take to reduce the weaknesses:

we will introduce different flavor cola to increase variety we will use POS materials for super store and general stores we will promote more for more sale

5. Objectives

To developed market growth. To increase potential customer.

Consideration of Competitors:

Comp. Brand RC cola Pran cola Virgin 7up Mojo mixer cola


Brand position 1st 5th 4th 2nd 3rd

Pricing TK. 450per ctn TK. 430 per ctn TK. 470per ctn TK. 432per ctn Tk. 447 per ctn

Unit cost 18.75 17.91 19.58 18 18.62

Price position 4th 1st 5th 2nd 3rd

Packaging Master ctn =24pcs Master ctn =24pcs Master ctn =24pcs

Master ctn =24pcs Master ctn =24pcs

Distribution Distributor,

Company vehicle support

Distributor, and his vehicle Distributor, and his vehicle

Distributor,

Company vehicle support

Distributor, and his vehicle

Advertising 1. Electronic media2. Billboard3. Poster

1. Press media2. Electronic media

1. Electronic media2. Billboard

1.Electronic media

2. Billboard

3. Poster

4.Press media

Sales promotion

1ctn= 4pcs free 1ctn = 5pcs free

1ctn = 2pcs free 1ctn = 6pcs free

6. Marketing Strategy

Akij group has segmented according to the homogenous segmentation where the consumers represent the same type of demographical, psycho graphical, cultural and social factors. Their attitude, status and lifestyle focuses on same perspective. According to the following factors the segmentation of MOJO has been done-


Age MOJO’s primary target was only the young generation where the age may vary from 16-27. But it is not limited within this age. It has also spreaded out among the children noticeably as well as the people above 27 years.

Gender Both young boys and girls are the target market for the MOJO. It is not specially made for any particular gender what actually happens for any type of cola drink.

Occupation Occupation is not clearly defined for the target market of MOJO; however where the age varies within the young generation as well as children so it can easily be understood that most of them will be whether student or doing any job or business.

Income Actually MOJO has emphasized on the lifestyle and behavior of consumers more rather than the income. They think that it is really affordable to buy a MOJO (especially 250 ml) for their target market where their income is minimum 5000 and for the students it may be less than that.

Location Almost all the places of urban and rural area are under the MOJO’s distribution. Espscially in each and every part of the Dhaka and Chittagong city MOJO is available. The company has emphasized on Dhaka where more than half of total sales (52%) comes from only Dhaka.

Social Class MOJO is targeted for the upper part of the lower class, middle class, upper middle class, and lower part of the upper class of the society.

Lifestyle The targeted market of MOJO is basically young generation who like gossiping, chatting, hanging with friends, making fun, watching movies, listening music etc. MOJO has also focused on their customer’s lifestyle in product, advertising and packaging.

Personality


The customers of the MOJO are mostly action oriented people which include especially the experiencers. It also focuses the personality of the status oriented people including achievers and strivers.

7. Target Market

Cola drinks usually follow an undifferentiated marketing strategy to target their consumer. Keeping this fact in mind, we conducted a sample survey by selecting random sample from different places. The following discussion will attempt to analyze the profile of the target market based on the sample group.

Demographic Factors

Age

Age is the major determinants in targeting the consumers. MOJO reflects the Bangladeshi culture and it represents youth. From our survey, we have found that MOJO is most preferred in the age group between 20-25 years (85% of 100). Moreover, the least MOJO preference comes from two age groups: 25-35 years and 35-45 years, about 1%.

Sex

Beverage is used for thirst-quenching purpose and this product is gender neutral, meaning there is no such kind of obligation to consume the product for male or female. However, from our survey outcome, we have found that 71% of the consumers are male and 29% are female from 100. All the respondents are from urban location.

Occupation & Income

Consumers’ purchasing pattern, lifestyle and status largely depend on their occupation and average monthly income of the family. The social class of the target respondents was determined by their income or taking from family. MOJO is a low involvement product and it is good enough to consume by upper and middle class. From the survey respondents, students are the most who purchase MOJO and their income level is less than 5000 taka. Business people, private service personnel and other earning people consume less amount of MOJO although their income is comparatively high than the students.


Favorite Pastime

Our survey respondents are giving most of their time in watching TV or movie for their pastime about 42% and reading books on average about 24%, less time in traveling about 1% and others cumulate about 33% such as hanging with friends, playing outdoor games, computer game or psychological gaming etc.

Other Factors

Meaning of MOJO

Meaning of MOJO is the idea or feeling the respondent have instantly after hearing the name or analyzing it. To 60% respondents, MOJO means fun or enjoyment. To 14% it means nothing. In addition, other 26% varies within music or art, sports, thirst passion etc.

Payoff Line Completion

“MOJO, it’s inside you”. This payoff line is not well completed by the respondents. This is happened because of their brand loyalty toward other brands. From 100, 45% respondents completed the line but the major percentage (55) left the slogan uncompleted. Beverage (Soft Drinks) ranking creates the flexibility for the target customers to express their preference toward the beverage preference. From the findings, we have experienced that out of 100, 47% people ranked cola focused beverage group aligned with lemonade and fruit juice. 28% of them prefer cola and fruit juice beverage group and less preferred is lemonade based beverage group likings, only 7%.

Cola Brand’s Position

Our report is on “MOJO” cola and we have kept this name out of the selection criteria. The motive was to see whether people recommend MOJO or not. The survey questionnaire reveals that out of 100, Zam-zam cola comes instantly in the mind of 7% prospect and so for others (9%). Pepsi cola gains 28% attention and the highest response is captured by coca cola (54%).

8. Positioning

Our position is better condition, because our other brands are now available in the market. So from our product Mojo cola we want to earn 2cr taka from our sales.


9. Marketing Mix

Product The product MOJO cola has come with the following variations in the market-

250 ml bottle 500 ml bottle 1000 ml or 1 liter bottle 150 can

The MOJO Cola has been made with a proper technology. So there is no chance to occur fluctuation in taste. The cola drinks contain a very strong taste which can compete with the market leader Coca-Cola and RC cola.

Price The three different sizes of MOJO cola have been priced differently.

250 ml bottle = 12 tk. 500 ml bottle = 20 tk 1 liter bottle = 35 tk. 150 ml can = 12 tk.

Here wholesalers take 0.5 -1.5 tk and retailers take 2.00-2.5 tk as profit. Again comparing to the competitors product, the price is low enough to encourage the target market to shift their brands towards MOJO.

Promotion The MOJO Cola has been targeted for the young generation is designed for fun loving young adults.

Television, Newspaper, Radio Today & Radio Furti, poster, shop signs & Billboards, Street/road Show & Concerts – all are used for

promotion of MOJO, Sponsorship of different special event such as

reunion, Free sampling of MOJO has been done in many

Universities as operant conditioning to motivate the people to make the second purchase.

MOJO has also gone for an innovative idea during this Cricket World Cup Cricket. They have also made the world’s largest cricket bat (70 feet), which has created a big attraction of the target customers.


10. Review and Control

Akij Food & Beverage Ltd will have simple, decision friendly, weekly, monthly, quarterly, and annual reports focusing on

Revenue and unit sales Expenses Customer feedback Market log (Self and competitive major activities)

11. Contingency Plan

orginal plan

Documents