Term paper on Partex Beverage Ltd

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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