term paper on partex beverage ltd
TRANSCRIPT
Partex Beverage Ltd
INTRODUCTION TO THE REPORT
Businesses that succeed do so by creating and keeping customers. They do this by providing
better value for the customer than the competition. Marketing constantly have to assess which
customers they are trying to reach and how they can design products and services that provide
better value. Today’s competitive and free business world Marketing is the essence for any
organization. In these days successful companies all levels have one thing in common that is they
are strongly customer focused and heavily committed to marketing. For many business firms, a
common important goal is the long-term increase in the value of their common stock. Every
manager must have an effective marketing strategy. Marketing is more than any other business
function that deals with customers. Understanding, creating, communicating, and delivering
customer value and satisfaction are the very heart of modern marketing thinking and practice. In
this term paper we have tried to understand marketing in practice by studying the marketing
process and strategies followed by marketing department of Partex Beverage Ltd.
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Partex Beverage Ltd
Profile of Partex Beverage Ltd:
Partex Group is among the large Bangladesh private sector manufacturing and service-based
enterprises, owning and operating over twenty units giving value for money to all customers. The
group started modestly in 1959 in tobacco trading and with prudent entrepreneurship of our
Founder Chairman Mr. M.A. Hashem today we have a stake in tobacco, food, water, soft drinks,
steel container, edible oil, wooden board, furniture, cotton yarn and the IT sector. After
Bangladesh was established our Chairman set up M/S Hashem Corporation (Pvt) Ltd. in
Chittagong city meeting the large demand of food and materials needed for sustaining the needs
of a new nation through imports.
From importing to import substitution was the next
logical step and the stepping-stone into the
manufacturing sector, which has matured to the
multimillion dollar diverse investment of the Partex
Group today.
In 1994, Mr. M. A. Hashem, Chairman of Partex Group visited an International Trade Exhibition
in the US, where he happened to meet the executives of Royal Crown Cola Co. International.
From then on he started conceptualizing the idea of “RC” beverage brand in Bangladesh. With
international brand name recognition and quality he expected that it would gain acceptability in
the Bangladesh market. When he returned, Partex as well as RC International carried out a wide
range of marketing research. After positive results, in 1996, the Corporate Head and the
Directors formed Partex Beverage Ltd. Funds worth Tk. 10 Core were raised as part of Equity
from the Group. Although registered as a Public Limited Company, no public offerings have
been made as yet. The factory was setup in Rajendrapur, 40km away from Dhaka city. The
company commenced commercial production on 6th October 1997, and RC was launched in
Dhaka on 20th October 1997.
Mission Of The Partex Beverage Ltd:
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Partex Beverage Ltd
A mission is that which a company wants to accomplish in large environment on it produces for
its customer. Partex beverage mission have each of the following points:
With international brand name recognition and quality Partex beverage expected that it
would gain acceptability in the Bangladesh market.
Partex beverage want to provide Bangladesh people different types beverage
The value of a business is basic, often in-stated, beliefs of the people who work in the
business. The management Partex Beverage Company believes that they can provide
value at an economic cost, progress in diversity, and continue to contribute to the growth
of industrialization in Bangladesh by being the market challenger”.
Vision of Partex Beverage Ltd:
The Sky is not the limit for us, but the expectation of the company is within limits. Therefore,
their imagination soars beyond conventional barriers. We want to share or destiny with our
beloved motherland. They want to serve her in the greater quest for national uplift.
To sincere travelers, the way is never too long. The
company believes in "progress in diversity and service
through entrepreneur". They are merchants and
missionaries, doers and dreamers, entrepreneurs and
professionals and are futuristic with emphasis on
creating thinking and dynamic action.
Objective of The Partex Beverage Ltd:
Objective set out what the business is trying to achieve. Objectives of this company are:-
To Provide value at an economic cost.
To become the market challenger of
beverage industry of Bangladesh
Aim to return on investment of at
Least 20%.
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Partex Beverage Ltd
To achieve at least 75% customer
awareness of our brand in our target
markets.
To make their product highly
Available.
The entire objective that is set by partex beverage ltd. is combined of specific, measurable,
achievable, relevant, time bound.
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Partex Beverage Ltd
Partex Beverage SWOT analysis:
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Partex Beverage Ltd’s SWOT Analysis:
StrengthsOpportunitiesWeaknessesThreats
Concentration In this
segment
Partex Beverage Ltd
SWOT analysis means an overall evaluation of the Company’s strength,
weakness, opportunities and threats. We analysis the SWOT of Partex
Beverage Ltd which is given below with matrix:
Figure 1.1: SWOT analysis matrix
Strength:
Partex Beverage is among the large Bangladesh private sector manufacturing and service
based enterprise Today they have stake in tobacco, food, water, soft drinks etc. with
international brand name recognition and quality partex beverage expected that it would gain
acceptability in the Bangladesh market their product soft drinks, like RC, mineral water like,
MUM are creates a strong place in the market RC has its own factory in savar At the very
beginning they used latest technology, international quality controlled , of course our cheap
labor to produce complete product at lowest price in drinking water mum creates a
unbelievable position they hold 60% of the market share while fresh and other companies
hold rest of the share major strength of the Partex beverage is fund they can easily collect
money as they are large company they get easily loan from the bank
Some major strength of the partex Beverage is
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Partex Beverage Ltd
Large company
Enough fund
Cheap labor
Different types of product
Domestic product
Generally available to the nearest retailer
Opportunity:
Bangladesh is a country where young people are very fond of soft drink besides, this as a Muslim
country most of the people do not like hard drinks so the people likes to serve soft drinks in any
party on the other hand, as the people of Bangladesh are not loyal so most of the go for cheaper
one In this way RC has a great opportunities to sell their product among people Bangladesh is a
tropical country so in summer season it becomes very hot people go for soft drink during
summer people buy soft drink frequently during this time if Partex beverage supply their drinks
at economic cost then they can achieve their target share People are more concern about their
health while they go outside they like to use mineral water to achieve a market share of 30% of
beverage industry within next two year to make their product highly available
The concern authority collect information from the market through survey or advertising
agency but still some opportunities are exit for partex beverage such as
Changing customer taste
Adding new flavor
Targeting new geographic area
Weakness:
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Partex Beverage Ltd
The development of the product mainly depends on the decision from USA as they are
franchisee if they do not give the permission for changing they cannot do it Partex
Beverage can not gain the advantages to global advertising as like as Pepsi is doing.
One of the major weakness of partex beverage is geographical area is limited only
Nepal ,Bangladesh is the main market of the partex beverage in contrast , coca-cola and
Pepsi have international wide market Coca-cola and Pepsi has the high brand equity but
partex beverage cannot achieve this brand equity but they are trying
Threat:
Threat-Pepsi has covered worldwide international event like World cup foot ball, Cricket
world cup during this time It’s demand rising internationally it also affect the customer of
Bangladesh.
On the other hand Partex beverage has not sponsored any huge international event now a
day’s price of raw materials is increasing it affect the price of the product
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Partex Beverage Ltd
Competitor Analysis:
The core product of Partex Beverage is soft drinks and mineral water. Partex Beverage has many
competitors. Some of them are foreign and some are domestic. Though it has a good position in
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Comparative analysis among other beverage company specially Coca-cola and Pepsi and other mineral water company.
Concentration In this segment
Partex Beverage Ltd
market it has many competitors for some specific products. The major competitors of Partex
beverage are:
Competitors of Partex Beverage Products:
Product list Product name Name of the competitors
1. RC Cola Pepsi, Coca Cola, Mojo, Uro Cola, Virgin Cola.
2. RC Lemon Clemon, Lemu, Lemon 7up.
3. RC Orange Fanta, Merinda.
4. Big Boss Speed, Tiger, Black horse, Black Panther.
5. Mum (Drinking mineral water)
Fresh, Pran, Acme, Jibon, Spa.
Figure 1.2: Competitors of Beverage Products
Competitors of mum mineral water
Partex beverage has only one mineral water. This name is Mum mineral water. It achieves the
leading position in mineral water market. The competitor’s of mum mineral water is given
below:
1. Fresh mineral water :
Fresh mineral water is the major competitor of mum. It’s marketed by Meghna group. Fresh
achieved the second position. Its market share is lower then mum. Though the price of mum
is higher then fresh, people like mum best.
2. Pran mineral water :
It is a good competitor of mum mineral water. It placed the third position on market. It is a
well known product. It is marketed by Pran food products ltd.
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Partex Beverage Ltd
3. Acme mineral water :
It is a weak competitor of mum mineral water. It is a product of Acme group. It placed the
fourth position in market.
4. Jibon mineral water :
The market share of Jibon mineral water is lower then mum. The price of jibon mineral water
is lower then mum. But people buy mum more.
Competitors of RC cola and Upper 10
RC cola is a renowned soft drinks company in Bangladesh. After the success of RC cola
Partex Beverage introduce a new product named Upper 10. But can not get a good position
in market because of strong competitor. The names of those competitors are given below.
1. Coca Cola and Sprite :
These are the product of Tabany beverage. Coca Cola get the number one position in market.
It is famous soft drinks on all over the world.
2. Pepsi and 7Up:
Pepsi and 7up is marketed by Transcom beverage. It achieved the second position. Its also
famous foreign drinks in the world.
2. Mojo and Uro cola:
These products are the domestic competitor of RC Cola. Mojo is marketed by Akij
group. Now they are trying to get a good position in the market.
.
Competitors of Big Boss:
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Partex Beverage Ltd
Recently partex beverage launched a new product called big boss. It tastes is different then
other. It also can not get a good position in market. It has some strong competitor. Those are
given below.
1. Speed:
Speed has the more market share among in such of products. It is a product of akij group.
2. Tiger:
Tiger placed the second position. Its markets share is more then big boss. Previous tiger was
in first position.
3. Black horse:
Its market share is similar to big boss. Big boss and black horse have the lowest market share
of these types of products.
Competitors of RC lemon
RC lemon is lemonade drinks. It has a good market share. It has also some competitors those
are given below.
1. Clemon:
It is the major competitor of Rc lemon. Its market share is lower then Rc lemon. It is
marketed by akij group.
2. Lemu:
It is also a competitor of Rc lemon. Is market share is very low. It is a weak competitor.
3. Lemon 7Up:
It’s a new product. Its market share is increasing rapidly.
Graphical Analysis of market share according to
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Partex Beverage Ltd
competitors::
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%43%
30%
21%
6%
Tabani Beverage
Partex Beverage
Transcom
Globe Drinks Ltd.
Virgin Drinks
Market Share
Figure 1.2: Graph of Market Share
In this graph we can see that Partex Beverage is the second position with 30% market share this
share mostly cover drinking water MUM. This is leading products in the beverage market. The
main competitors of Partex Beverage is Tabani Beverage which contains 43% market share.
Second competitors of this company is Transcom which cover 21% market share. And the other
weak competitors like Globe Drinks and Vergin Drinks with 6% market share.
Overall the position of partex beverage is not so good, but not bad than it’s strong
Competitor.
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Partex Beverage Ltd
Marketing Mix Analysis:
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Concentration In this segment
Marketing Mix Analysis:ProductPricePlace &Promotion
Partex Beverage Ltd
Product: The core product of Partex beverage is “soft drink” & water.
While the core products do not constitute the complete product.
There are other factors such as attractiveness, flavors, packaging,
labeling, cost effectiveness, quality makes the total product.
Types of Products:
ProductName
Flavors offered Pet bottle & Can
MissionStatement
RC: 1. RC Cola, 2. RC Lemon,3. RC Orange4. Upper 105. RC Diet6. Big Boss
Liter (1000ml),250mlMobile (.5 L)Mini (200ml)
Freedom of life
Mum: 1. Drinking Water .5L, 1L, 1.5L, 2L, 5L .
Crystal Clear Natural Drinking Water
Figure 1.3: Product List
Product Features:
The Partex beverage uses 5 flavors in for RC soft drinks and soft drink are provide in quantity of
250ml, 500ml, 1000ml, and 2000ml. Among those quantities, which are, provided by partex
customer preferred mainly 250 ml can & pet 500 ml bottle. Pet 200 ml are successfully known as
RC mini
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Partex Beverage Ltd
Quality:
To ensure the quality international quality controller and as well as international quality standard
can be followed by partex. Since, as the customers are not brand loyal they frequently change the
brand as it necessary in situation. So partex can use quality as a competitive strength for its
beverage
Labeling or Packaging:
Labeling in case of refreshment drink is essential. The labeling can impulse some of the
customer to change the brand as in Bangladesh the customers are not loyal in respect of this type
of product. The label also requests the consumer to crash the bottle in the trashcan. It also
contains the company logo and the manufacturing date and expiry date of the product to inform
the consumer about the product. In addition they can give some social massage in labeling. For
mineral water they can use little quantity mini pack. Full grade bottle can create further utility to
consumers. The pet bottle can create further utility to the consumers. Most of the consumers do
not crash the bottle rather using to carry water or similar consuming things into the bottle. The
marketing strategy is emphasizing this behavior of the consumer and also designed the bottle
convenient for the consumer.
New or existing product Development:
Partex Beverage (RC Cola) is a franchisee of the “Royal Crown Cola” of USA. All the flavors
offered by the Partex Beverage are as same as the “Royal Crown Cola ” of USA. In case of
product development they mainly mean the change of flavor and change of packaging &
labeling. Till now there is no change in the flavor and the labeling of the product. But they have
an idea to launch new Beverage product like juice item, tea etc.
Pricing:
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Partex Beverage Ltd
All the beverage products in Bangladesh are delivered to the general consumer on an average.
Demand of this type of product is very price sensitive, as there are some other competitors such
as Coca-Cola, Pepsi, Virgin, Uro Cola, Mojo, Lemu etc. Hence Partex Beverage should very
careful about their pricing policies, strategies, approaches, influencing factors etc. Pricing
decision is very versatile as well as intellectual act for the company. Partex beverage has already
reached to the door of maximum consumers more or less with a flexible price with positive
response. They need to continue that strategies.
Setting the final price by Partex Beverage:
Most of our country people earn very limited income. But the culture, the custom has been so
like that a cold drink in a party or in meeting or picnic is prestigious looking. Again if they are in
an easily available price, there will be no question. People will rush to it. But they also are
sensible about the quality level too. So, Partex Beverage emphasizes quality and standard level.
Considering these, Partex Beverage follows psychological pricing along with reference price.
For example, Virgin had a wide market for their can, which costs Tk 15 per cane, but whenever
Partex Beverage introduced can with Tk 12 (3 Tk less then virgin), demand of virgin can have
gone down. Those who purchased virgin can whenever they are in journey picnic have mostly
prefer RC mobile, RC plastic bottle they set prices less then competition price.
Promotional
Price:
Partex Beverage has not, so far, made any discount offer to
its wholesaler as Coca-Cola, Pepsi offer. It just provides
commission. They can also use product line pricing.
Responding To Competitors, Price Change:
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Partex Beverage Ltd
Partex Beverage always emphasizes at setting price in compliance with competitor’s price. They
believe in more drinks at less price will bring more sale. So, they try never to exceed their
competitors in pricing. In case of price changes they always pay keen attention to the
competitors’ situation specially Coca-Cola, Pepsi (as they are the pioneer of drinks market in
Bangladesh).
Distribution Channel:
As per objective of the company they need to use very sound distribution channel to increase
their sale. In distribution their products Partex Beverage is very conscious about their distribution
channel. They do not sell their product directly to the ultimate customers. They use middlemen
in distributing their Beverage products. Dealer, wholesalers and retailers mainly perform
middleman’s task. Here they also perform many other functions like information gathering,
promotion and contract with the customers, financing and also risk taking. Company can
introduce new products sharing ideas with middleman. So they use indirect marketing channel.
Their marketing channel is like this-
Figure 1.4: Marketing Channel
Their main depot is sited at Rajendrapur. Dealers purchase from factory depot with high margin.
Wholesalers purchase from those dealers in some small lots, they sell it to the retailers and
finally retailers sell to the ultimate customers.
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Factory Depot
Dealers Retailers
Customers
Wholesalers
Partex Beverage Ltd
About Distributors and Zones:
Partex Beverage’s distribution is spread over greater six divisions called Dhaka, Chittagong,
Khulna, Rajshahshi, Shylet and Barisal. Different districts are also included in those greater
zones. Day by day they are trying to increase their distribution area all over Bangladesh.
Export Partex Beverage products:
Partex Beverage initially starts export their beverage products in abroad especially in India,
Nepal, Indonesia, UAE and the country of SAARC. We know Pepsi and Coke mostly cover the
cold drinks market in our South Asia. So it is very difficult for Partex Beverage to create a
position of their beverage product in abroad. But they try in little scale.
Transportation Modes:
We know that Partex Beverage try to charge blanket price to the customer. In this case is
Transportation mode is one of the factors that have an effect on their pricing decision. There are
ranges of Transportation modes but Partex Beverage mainly uses their own van just to transport
their products from factory to depot, or depot to warehouse.
Warehousi
ng:
Generally beverage products are not in nature of perishing.
From the warehouse they supply to the dealers and also
wholesalers. At Rajendrapur, there is a larger system of
warehousing of their products.
Inventory:
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Partex Beverage Ltd
Partex Beverage follows the following principle that carrying too much inventory results in
higher- than- necessary inventory-carrying costs and stock obsolescence and carrying too little
may result in stock outs cost, costly emergency shipments or production and customer
dissatisfaction. So, they mainly follow just-in-time logistics system. That is they provide the
products basically according to customer needs.
Promotion:
Promotion is like a wing for a product to fly high. It is the sum total of activities of advertising,
sales promotion and public promotion. A true fact of the Bangladeshi soft drink consumers is,
approximately 8o% of them is not brand loyal. So they get attracted easily toward the brand,
which comes with big offers, and comparatively low price. Partex Beverage has realized the fact
and designed its promotional functions to influence the whole consumer wing, most importantly
that 80% brand UN loyal portion.
Advertising: The advertising objective of Partex Beverage should be like:
Informing market about price change.
Encouraging customers to switching to their brand.
Keeping the product in consumers mind during off-
seasons.
Describing different ways to use its product.
Building brand preference.
Advertising
message:
`Freedom of choice’ – is the advertising message of all RC
products. In their bottle label RC conveys a massage to its
customers.
‘Crystal Clear Natural Drinking Water’- is the advertising
message of drinking water MUM.
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Partex Beverage Ltd
Different
Advertising
Media:
60% of its total advertising activity is covered by
Television.
There are Bill Boards in the significant places in all
big cities of the country.
The national daily News Papers are useful for the
publicity of promotional competition offered by the
company.
Sponsoring sports like cricket, football etc.
Advertises for RC cola and MUM in the Website from
different country also attracts consumers.
Government and different private radio stations also
telecast the advertisement of beverage products.
Sales
Promotion:
For sale promotion partex beverage is doing following things
that help to increase their sale.
Sample: While started at 1997, the company offered
free samples among the customers for a few days to
draw their attention.
Price pack: Last two years they are offering this
promotional tool, in some intervals. A scratch card
available with its 1,1.5 and 2 liter bottle containing the
offer of reducing Taka 2-5 per bottle.
Premium: The scratch card mentioned above also
carries the offer of some items as gift on buying RC
beverage items. Such as walk man, mobile phone,
wristwatch, cap, T- shirts etc.
Discount: This offer is offered to the retailers.
Purchasing a big lot gives them a straight reduction in
price.
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Partex Beverage Ltd
Trade show: Partex beverage has participated
regularly in trade shows, including DITF, CITF and
many other trade shows and fairs. There they
demonstrate their products, communicate directly with
the target consumers and sell there beverages to them.
Public Relation:
Some of the frequently used public relation tools of the company
are-
They have a web site, addressed www. PartexBeverage.com .It is their old web site. With
more information and more consumer participating option, they are developing another
web site.
By using the marketing agencies, they run market and consumer survey program, which
provide them huge information about the demand and trend of the consumers.
In addition the bottle labels contain the list of nutrition facts and ingredients of the drink, which
promote its purity and reliability to the consumers. So, these are the promotional activities that
can be undertaken by Partex Beverage.
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Concentration in this segment
Partex Beverage Ltd
Success Factors:
Success of a company means how much a company and its product or service is acceptable to the
target consumers and how much benefits they earn according to market share. Partex Beverage
Ltd is now a successful brand in market. Specially its drinking water Mum, soft drinks item RC
cola, RC lemon, Upper ten etc.
Success factors of Partex Beverage Ltd. is given bellow:
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Success Factors Conclusion
Partex Beverage Ltd
Firstly, the main success factor of Partex Beverage Ltd. is to targeting market. They actually
target from the lower middle level consumers to upper level.
Secondly, they actually know the consumers taste and flavor. They provide different flavor
according to consumer demand.
Thirdly, they follow the international quality and formula of Royal Crown Cola of USA which is
very popular in America.
Fourthly, their advertising process of product is very unique and attractive which can easily
attract to the consumers mind.
Fifthly, their channel of distributions of the product is very flexible and strong. Consumers found
Beverage product to small, medium, large all kinds of retailer shop. Their whole selling market is
all over in Bangladesh.
Sixthly, their pricing method is physiological pricing. It’s also very cheaper than the competitors.
Seventhly, their drinking water Mum is the most leading brand in all over Bangladesh. Now-a-
days it’s a leading drinking water because of its high quality, unique packaging, advertising and
leading sponsor brand and it’s a Partex product.
Eighthly, Partex Beverage Ltd. products are related to Partex group. Which is most popular and
well known company leading company in Bangladesh and abroad.
Ninthly, in case of internal factors Partex Beverage have highly productive equipments. They
have also qualified, hardworking, creative and experienced manpower
Conclusion:
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Partex Beverage Ltd
With the help this marketing mix analysis we can say that, the company may a achieved a strong
level of customer preference. Although there is a tough fight with its major competitors.
Company’s promotional activities played a vital role to create this position in such situation. By
preparing this term paper we learn about how companies can analysis marketing mix and we
think this work will help us in our future when we are in professional life. Thanks to our course
instructor of MKT 101 for helping us a lot to preparer this term paper. We believed that this
analysis helps us to know about the Partex Beverage Company and how they achieve their
objective.
Appendix
1. What is the strength side of Partex beverage?
2. What is the market opportunity for Partex beverage?
3. What is amount of market share of Partex beverage according to its competitor?
4. What is the position of Partex beverage in the market?
5. What type of customer that’s targeted by Partex beverage?
6. Partex beverage has any future plan for launching any new product? If yes, what?
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Partex Beverage Ltd
7. This company has any foreign owner or sponsor?
8. Which company is the main competitor of partex beverage?
9. Does partex beverage export any product? If yes where?
10. What is the advertising process of partex beverage?
11. What is the product distribution process?
12. Which places are the markets of partex beverage?
13. How many distribution zones in your company?
14. What types of strategy your company follows to pricing your product?
15. Do you give any facilities to the middlemen?
16. In case of advertising which information your company has to provide mainly
the consumers?
Reference PageReference Page
Principles of Marketing (Thirteen Edition)
By Philip Kotlor & Gary Armstrong.
Md. Nahid Yousuf(Brand manager)
Partex Beverage Ltd.
Partex Beverage Ltd Publication Department.
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Partex Beverage Ltd
Partex Beverage Ltd Annual Report.
On-Line Resources:
www.google.com
www.yahoo.com\search
www.partexbd.com
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