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Beverage Market in Bangladesh

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1. Introduction After independence the food habit of Bangladeshi people has been changed a lot. Besides our traditional food consumer of Bangladesh like to take western food also after 1980s. As a result of global marketing this was not too hard for the consumers. Different foreign food companies were established in Bangladesh. Beverage industry is one of them. But more interestingly we don’t know beverage is also our cultural food because beverage doesn’t mean only carbonated drinks. Yoghurt, soup and lacchi are also beverage of our own tradition which consumed for the last 100 years in Bangladesh. But carbonated beverage is new in Bangladesh and today our research is on carbonated beverage market in Bangladesh and consumer reaction to it. Carbonated beverage entered into our market in the later part of 1980. At that time there were only few companies in Bangladesh. But by the change of time and western culture influences it’s become very popular in Bangladesh. By year 2000 more than 12 Beverage Company operating business in Bangladesh and most of them are foreign companies. (Bangladesh Beverage: 2006) This paper is divided into six sections. The first section contains introduction, objectives and methodology. Section two is designed to focus on the literature review. The third section is dedicated to the conceptual analysis of beverage. In the fourth section, an overview of the beverage market in Bangladesh explained. Section five presents the findings of the study. Finally write-up ends with some concluding remarks. 1.1 Objectives The study undertaken with the following objectives: 1
Transcript
Page 1: Beverage Market in Bangladesh

1. Introduction

After independence the food habit of Bangladeshi people has been changed a lot.

Besides our traditional food consumer of Bangladesh like to take western food also

after 1980s. As a result of global marketing this was not too hard for the consumers.

Different foreign food companies were established in Bangladesh. Beverage industry is

one of them. But more interestingly we don’t know beverage is also our cultural food

because beverage doesn’t mean only carbonated drinks. Yoghurt, soup and lacchi are

also beverage of our own tradition which consumed for the last 100 years in

Bangladesh. But carbonated beverage is new in Bangladesh and today our research is

on carbonated beverage market in Bangladesh and consumer reaction to it.

Carbonated beverage entered into our market in the later part of 1980. At that time

there were only few companies in Bangladesh. But by the change of time and western

culture influences it’s become very popular in Bangladesh. By year 2000 more than 12

Beverage Company operating business in Bangladesh and most of them are foreign

companies. (Bangladesh Beverage: 2006)

This paper is divided into six sections. The first section contains introduction,

objectives and methodology. Section two is designed to focus on the literature review.

The third section is dedicated to the conceptual analysis of beverage. In the fourth

section, an overview of the beverage market in Bangladesh explained. Section five

presents the findings of the study. Finally write-up ends with some concluding remarks.

1.1 Objectives

The study undertaken with the following objectives:

1.1.a To know about the beverage market in Bangladesh

1.1.b To see the consumer patterns, occupation, their taste and criteria of

buying beverage.

1.1.c To know the satisfaction level of consumers toward the beverage

products.

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1.2 Methodology

1.2.a Data Collection

This work is based on both secondary and primary sources. The secondary sources of

data include internet articles, some foreign and local websites on beverages. Most of

the data required for the study were collected from primary source through structured

questionnaire.

1.2.b Area Surveyed

The study was confined to Dhaka. This area has been selected because those areas are

close to Dhaka city and main center of beverage companies. Time and cost were other

important considerations for such decision.

1.2.c Selection of Sample

Because of the lack of sampling frame convenient method of sample were used.

Because our group members were only six and all of them are from different location.

So random sampling was not possible for us to use. We collect our data initially from

60 respondents. After that we find out the consumers of beverage product and continue

our research by focusing on their opinion.

1.2.d Analyze of Data

All the data were edited, coded and classified by our group members before making the

final analysis. Average, percentage and ranking were used for analyzing the data.

Different graphs, charts and table were used for presenting the data.

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2. Review of Literature

Most of the studies conducted on the customer satisfaction of beverage have been

reviewed in the subsequent section.

2.a Taylor Ellis & Abraham Pizam (1999) in “Customer satisfaction and its

measurement in hospitality enterprises” stated global issues and cultural

differences in customer satisfaction, overall satisfaction vs. satisfaction with

individual attributes, dimensions of satisfaction & the components of

satisfaction.

2.b John S.A. Edwards & Hadyn Ingram (1995), volume 7; Issue 5; Page 25 – 28 in

“Food, beverage and accommodation: an integrated operations approach”

mentioned that accommodation has a close relation with food & beverage.

2.c Mary Bellis (2005) in “Food History - Beverages and Drinks” explained the

history of Beer, Wine, Alcoholic & Non-Alcoholic beverages and Drinks.

2.d Mohajon Bangladeshi Online Bazar (2006) in “Beverage product view”

identified different beverages & their quality with prices.

2.e Transcom Beverage Limited official website (2003) in “Introduction” explained

that TBL manufactures the famous Pepsi range of beverages-Pepsi, 7up,

Mirinda Orange, Mirinda Lemon, Slice and Soda. As a corporate citizen

Pepsico believes it has a responsibility to contribute to the quality of life in our

communities.

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3. Beverage: Its Conceptual Analysis

3.a Definition of Beverage

A drink, or beverage, is a liquid specifically prepared for human consumption. In

addition to basic needs, beverages form part of the culture of human society.

3.b Types of Beverage

3.b.1 Water

Despite the fact that most beverages, including juice, soft drinks, and carbonated

drinks, have some form of water in them; water itself is often not classified as a

beverage, and the word beverage has been recurrently defined as not referring to

water.

Essential to the survival of all organisms, water has historically been an important and

life-sustaining drink to humans. Excluding fat, water composes approximately 70% of

the human body by mass. It is a crucial component of metabolic processes and serves

as a solvent for many bodily solutes. Health authorities have historically suggested at

least eight glasses, eight fluid ounces each, of water per day (64 fluid ounces, or 1.89

liters), and the British Dietetic Association recommends 1.8 litters. The United States

Environmental Protection Agency has determined that the average adult actually

ingests 2.0 liters per day.

Orange Juice

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Distilled (pure) water is rarely found in nature. Spring water, a natural resource from

which much bottled water comes, is generally imbued with minerals. Tap water,

delivered by domestic water systems in developed nations, refers to water piped to

homes through a tap. All of these forms of water are commonly drunk, often purified

through filtration.

A Carbonated Beverage

3.b.2 Alcoholic Beverages

An alcoholic beverage is a drink containing ethanol, commonly known as alcohol,

although in chemistry the definition of an alcohol includes many other compounds.

Alcoholic beverages, such as wine, beer, and liquor have been part of human culture

and development for 8,000 years.

3.b.3 Non-alcohol Beverages

Non-alcoholic beverages are drinks that would normally contain alcohol, such as beer

and wine but are made with less than .5 percent alcohol by volume. The category

includes drinks that have undergone an alcohol removal process such as non-alcoholic

beers and de-alcoholized wines.

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Non-alcoholic Variants:

a. Low alcohol beer

b. Non-alcoholic wine

c. Sparkling cider

3.b.4 Soft Drinks

The name "soft drink" specifies a lack of alcohol by way of contrast to the term "hard

drink" and the term "drink", the latter of which is nominally neutral but often carries

connotations of alcoholic content. Beverages like colas, sparkling water, iced tea,

lemonade, squash, and fruit punch are among the most common types of soft drinks,

while hot chocolate, hot tea, coffee, milk, tap water, alcohol, and milkshakes do not fall

into this classification. Many carbonated soft drinks are optionally available in

versions sweetened with sugars or with non-caloric sweeteners.

3.b.5 Hot Beverages

A cup of coffee

Hot beverages, including infusions. Sometimes drunk chilled.

Coffee-based Beverages

o Cappuccino

o Coffee

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o Espresso

o Café au lait

o Frappé

o Flavored coffees (mocha etc.)

o Latte

Hot Chocolate

Hot Cider

o Mulled cider

Glühwein

Tea-based Beverages

o Flavored teas (chai etc.)

o Green tea

o Pearl milk tea

o Tea

Herbal Teas

Roasted Grain Beverages

3.b.6 Other

Some substances may either be called food or drink, or accordingly be eaten with a

spoon or drunk, depending on solid ingredients in it and on how thick it is, and on

preference:

o Soup

o Yogurt

(Greenhalgh, Alison: March 2001)

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3.c Industry Overview

The soda drink and bottled water industry in the US includes about 3,000 companies

that manufacture and distribute beverages, with combined annual US revenue of $70

billion. Coca-Cola and PepsiCo hold more than 50 percent of the market, following

strong consolidation in the past decade. Only a few other companies have annual

revenue above $500 million. Most are local or regional manufacturing and bottling

operations with annual revenue under $100 million.

3.d Competitive Landscape

Demand for non-alcoholic beverages is driven by consumer tastes and demographics.

The profitability of individual companies depends on effective marketing. Large

manufacturers have economies of scale in production and distribution, with average

annual revenue per production worker close to $1 million. Small companies can

compete by producing new products, catering to local tastes, or selling at lower prices.

3.e Products, Operations & Technology

Nonalcoholic beverages include sodas (carbonated soft drinks, or CSD), bottled

waters, juices, and a large variety of mixtures. Sodas account for about 60 percent of

the market. The manufacture and distribution of most national soda brands, including

Coke and Pepsi, is a two-tiered process. The primary manufacturer produces flavored

syrup called concentrate that is sold to local bottlers who manufacture and distribute

the finished product. In a typical bottling operation, the flavored syrup, corn syrup

(sugar), and filtered water are mixed in appropriate proportions, carbon dioxide gas is

injected, and the finished soda product is poured into bottles or cans, which are

capped, labeled, and packaged.(Beverage Manufacture and Bottling:2008).

3.f History

Soft drinks can trace their history back to the mineral water found in natural springs.

Bathing in natural springs has long been considered a healthy thing to do; and mineral

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water was said to have curative powers. Scientists soon discovered that gas carbonium

or carbon dioxide was behind the bubbles in natural mineral water.

The first marketed soft drinks (non-carbonated) appeared in the 17th century. They

were made from water and lemon juice sweetened with honey. In 1676, the Companied

Lemonades of Paris were granted a monopoly for the sale of lemonade soft drinks.

Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft

drink to thirsty Parisians.

Soda Fountain Bar

LOC

3.g Joseph Priestley

In 1767, the first drinkable man-made glass of carbonated water was created by

Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torbern

Bergman invented a generating apparatus that made carbonated water from chalk by

the use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be

produced in large amounts.

3.h John Mathews

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In 1810, the first United States patent was issued for the "means of mass manufacture

of imitation mineral waters" to Simons and Rundell of Charleston, South Carolina.

However, carbonated beverages did not achieve great popularity in America until

1832, when John Mathews invented his apparatus for the making carbonated water.

John Mathews then mass-manufactured his apparatus for sale to soda fountain owners.

3.i Health Properties of Mineral Water

The drinking of either natural or artificial mineral water was considered a healthy

practice. The American pharmacists selling mineral waters began to add medicinal and

flavorful herbs to unflavored mineral water. They used birch bark, dandelion,

sarsaparilla, and fruit extracts. Some historians consider that the first flavored

carbonated soft drink was that made in 1807 by Doctor Philip Syng Physick of

Philadelphia. Early American pharmacies with soda fountains became a popular part

of culture. The customers soon wanted to take their "health" drinks home with them and

a soft drink bottling industry grew from consumer demand.

3.j The Soft Drink Bottling Industry

Over 1,500 U.S. patents were filed for a cork, cap, or lid for the carbonated drink bottle

tops during the early days of the bottling industry. Carbonated drink bottles are under

a lot of pressure from the gas. Inventors were trying to find the best way to prevent the

carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was

patented by William Painter, a Baltimore machine shop operator. It was the first very

successful method of keeping the bubbles in the bottle.

3.k Automatic Production of Glass Bottles

In 1899, the first patent was issued for a glass-blowing machine for the automatic

production of glass bottles. Earlier glass bottles had all been hand-blown. Four years

later, the new bottle-blowing machine was in operation. It was first operated by the

inventor, Michael Owens, an employee of Libby Glass Company. Within a few years,

glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.

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3.l Hom-Paks and Vending Machines

During the 1920s, the first "Hom-Paks" were invented. "Hom-Paks" are the familiar

six-pack beverage carrying cartons made from cardboard. Automatic vending

machines also began to appear in the 1920s. The soft drink had become an American

mainstay. (Inventors: 2003).

A Timeline of soft drink invention

First Beverage Shop in World

1798 The term "soda water" first coined.

1810 First U.S. patent issued for the manufacture of imitation mineral waters.

1819 The "soda fountain" patented by Samuel Fahnestock.

1835 The first bottled soda water in the U.S.

1850 a manual hand & foot operated filling & corking device, first used for bottling

soda water.

1851 Ginger ale created in Ireland.

1861 The term "pop" first coined.

1874 The first ice-cream soda sold.

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1876 Root beer mass produced for public sale.

1881 The first cola-flavored beverage introduced.

1885 Charles Aderton invented "Dr Pepper" in Waco, Texas.

1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.

1892 William Painter invented the crown bottle cap.

1898 "Pepsi-Cola" is invented by Caleb Bradham.

1899 The first patent issued for a glass blowing machine, used to produce glass bottles.

1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles.

1919 The American Bottlers of Carbonated Beverages formed.

1920 The U.S. Census reported that more than 5,000 bottlers now exist.

Early 1920's The first automatic vending machines dispensed sodas into cups.

1923 Six-pack soft drink cartons called "Hom-Paks" created.

1929 The Howdy Company debuted its new drink "Bib-Label Lithiated Lemon-Lime

Sodas" later called "7 up". Invented by Charles Leiper Grigg.

1934 Applied color labels first used on soft drink bottles, the coloring was baked on the

face of the bottle.

1952 The first diet soft drink sold called the "No-Cal Beverage" a gingerale sold by

Kirsch.

1957 The first aluminum cans used.

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1959 The first diet cola sold.

1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of

Pittsburgh, PA. The pull-ring tab was invented by Alcoa.

1963 The Schlitz Brewing company introduced the "Pop Top" beer can to the nation in

March, invented by Ermal Fraze of Kettering, Ohio.

1965 Soft drinks in cans dispensed from vending machines.

1965 The resealable top invented.

1966 The American Bottlers of Carbonated Beverages renamed The National Soft

Drink Association.

1970 Plastic bottles are used for soft drinks.

1973 The PET (Polyethylene Terephthalate) bottle created.

1974 The stay-on tab invented. Introduced by the Falls City Brewing Company of

Louisville, KY.

1979 Mello Yello soft drink is introduced by the Coca Cola Company as competition

against Mountain Dew.

1981 The "talking" vending machine invented. (Mary Bellis: 2005)

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4. Overview of the Beverage Market in Bangladesh

At present Bangladesh has a very competitive market of beverage. Bangladesh has a

relatively hot weather and people tend to be thirstier. So they prefer to take soft drinks

most of the time. Beverage took the market of Bangladesh in the first half of 1980. In

that time two or three soft drinks were available in the market. But now lots of beverage

found in the market. Some of them are popular and some are not so popular.

4.a Beverage List: All Age Groups

Total 6 product(s) found in category of Beverage for all age groups in Bangladesh.

Vita Fresh (Orange) [2008-04-26]

Kohinoor Chemical Company (BD) Ltd. [City: Dhaka]

Vita Fresh (Orange) is a delicious drink of orange prepared from natural orange juice

crystals. No artificial sweetener is added to preserve the natural taste and flavor of

orange. Each sachet pack contains 25ge of dried Orange powder enough to prepare a

glass of rejuvenating drink. [Net Weight]: 25ge.

Premium Classic Mango/Orange Juices [2008-04-26]

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The ACME Agro vet & Beverages Ltd. [City: Dhaka]

ACME Premium and Classic mango and orange juices are unique because of their

taste and flavor. [Pack Size]: Available in 250ml hygienic UHT packs.

Vita Fresh (Mango) [2008-04-26]

Kohinoor Chemical Company (BD) Ltd. [City: Dhaka]

Delicious drink in powder form extracted from rich and fabulous garden fresh mango

crystals. No artificial sweetener is added to preserve the natural taste of mango. Each

sachet pack contains 25ge dried MANGO juice enough to prepare a glass of

rejuvenating drink. [Net Weight]: 25ge.

ACME Juices [2008-04-23]

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The ACME Agro vet & Beverages Ltd. [City: Dhaka]

ACME Premium and Classic mango, orange and Mango range juices are unique

because of their taste and flavor. [Pack Size]: Available in 1000ml hygienic UHT

packs.

ACME Premium Drinking Water [2008-04-23]

The ACME Agro vet & Beverages Ltd. [City: Dhaka]

ACME premium drinking water is synonymous to purity. Arsenic Free Mineral water

contains proper mineral balance, is suitable for all age groups and bottled in

Environment friendly PET bottle as per guide line of BSTI. [Pack Size]: Available in

500ml, 1000ml, and 1500ml bottles.

Danish Mango Juice [2008-03-17]

PARTEX Group [City: Dhaka]

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Danish Food Products, a Partex Group concern produces highest quality fruit drinks

under the brand name Danish Fruit Juices. Bangladeshi customers have welcomed the

mango fruit and orange flavored drink hygienically packed in 250ml aseptic packs.

Every age group can enjoy this drink, especially when served chilled in our hot

summers. [Packing]: Pack/ quantity 250 ml, Quantity /Carton 36pcs, Carton 3 ply

corrugated. Pack/ quantity 200 ml, Quantity /Carton 48pcs, Carton 3 ply corrugated.

(BangladeshiProducts: 2008)

4.b Beverage list: Young Consumers

In Bangladesh the choice of young people are always different from other age groups.

They prefer to take the following 15 categories of soft drinks.

At present there are 19 beverage companies operating business in Bangladesh. They

are:

1. Transcom Beverage Ltd.

2. Sun Crest Beverage Industries Ltd

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3. Abdul Monem Limited

4. K.Rahman and Company

5. Eastern Beverage Industries Ltd.

6. Sanowara Drinks and Bev. md. Ltd.

7. Asia Business Ltd.

8. Desh Beverage Co. Ltd.

9. Northern Beverage Ltd.

10. National Beverage Industries Ltd.

11. Bridge Corporation Limited

12. Tezarat Enterprise

13. Southern Beverage Ltd.

14. K.Rahman and Company

15. Bangladesh Beverage Ind. Ltd.

16. Dhaka Beverage Industries Ltd

17. Sunny Foods and Beverage Ltd.

18. Tabani Beverage Co. Ltd.

19. K.Rahman and Company

(Bangladesh Beverage: 2008)

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5. Profile of Different Beverage Company in Bangladesh

5.a A Brief look at history

Originated with tea plantation in 1885, today one of the leading and fastest growing

diversified business houses in Bangladesh employing over 5000 people. Not many

industrial groups in Bangladesh can claim a history of continuous business pursuits

stretching back over 100 years. Initially tea and jute formed the backbone of the family

business. Although these are still part of the activities, they contribute marginally to the

overall group turnover.

The Journey of Transcom Beverage Ltd

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5.b Transcom today

These early industrial ventures have moved over to businesses involved in high-tech

manufacturing, international trading and distribution, forming strong ties with a host of

blue chip multinational companies. In recent years Transcom has emerged as an

increasingly significant media house in Bangladesh.

5.c History of Transcom Beverage Limited

On the basis of an exclusive Franchise for Bangladesh from Pepsico USA, TBL

acquired three modern bottling plants at Dhaka, Chittagong and Bogra from BBIL,

Dhaka; EBIL, Chittagong and NBIL, Bogra; in March 2000. TBL manufactures the

famous Pepsi range of beverages-Pepsi, 7up, Mirinda Orange, Mirinda Lemon, Slice

Started in 1885 with Tea

Plantation

Fastest Growing Business in

Bangladesh Today

Employing over 5000 People in

Bangladesh

Contribute Heavily on Economic

Efficiency in Bangladesh

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and Soda. As a corporate citizen Pepsico believes it has a responsibility to contribute to

the quality of life in our communities. TBL has put into action this philosophy through

support of social agencies, projects and programs and the scope of this support is

extensive and it has not been difficult to blend with this philosophy since the

TRANSCOM group also followed such a corporate ideology.

8.a Details of Transcom Beverage Bangladesh

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Franchise for

Bangladesh from

Pepsico USA

Acquired three

modern bottling plants

Produce Pepsi,7up,

Mirinda, Slice and

Soda

Contribute highly to the

quality of life in our

communities

Give support to social agencies,

projects and programs

Transcom group also followed corporate ideology.

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8.b Location of Transcom Beverage Ltd.

8.c

8.d

Transcom Beverage Ltd. Bangladesh

Main factory located in Telirchara,Mouchak.

Kaliakair,Gazipur

Also have 2 regional factories in Chittagong and

Bogra

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8.e Organogram of Transcom Beverage Ltd.

8.f Director and Top Level Employees of Transcom Beverage Ltd.

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Transcom Group Chairman - Latifur Rahman

Director - Saifur Rahman

Country Manager of Pepsi Bangladesh - Anish Roy

Executive director of Transcom Beverages Limited - Gulam Quddus Chowdhury

National sales manager of Transcom Beverages Limited - Khurshid Irfan

5.d Products of Transcom Beverage Limited

But the main two products of Transcom Beverage Limited are 7 up and Pepsi. Though

there are three other supporting products (Mirinda, Slice and Soda) added later.

(History of Transcom: 2008).

5.e The History of Pepsi Cola

Caleb Bradham of New Bern, North Carolina was a pharmacist. Like many

pharmacists at the turn of the century he had a soda fountain in his drugstore, where he

served his customers refreshing drinks, that he created himself. His most popular

beverage was something he called "Brad's drink" made of carbonated water, sugar,

vanilla, rare oils, pepsin and cola nuts.

"Brad's drink", created in the summer of 1893, was later renamed Pepsi Cola in 1898

after the pepsin and cola nuts used in the recipe. In 1898, Caleb Bradham wisely

bought the trade name "Pep Cola" for $100 from a competitor from Newark, New

Jersey that had gone broke. The new name was trademarked on June 16th, 1903.

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Bradham's neighbor, an artist designed the first Pepsi logo and ninety-seven shares of

stock for Bradham's new company were issued.

After seventeen years of success, Caleb Bradham lost Pepsi Cola. He had gambled on

the fluctuations of sugar prices during W.W.I, believing that sugar prices would

continue to rise but they fell instead leaving Caleb Bradham with an overpriced sugar

inventory. Pepsi Cola went bankrupt in 1923.

In 1931, Pepsi Cola was bought by the Loft Candy Company Loft president, Charles G.

Guth who reformulated the popular soft drink. Guth struggled to make a success of

Pepsi and even offered to sell Pepsi to the Coca-Cola company, who refused to offer a

bid?

In 1940, history was made when the first advertising jingle was broadcast nationally.

The jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the

price of Pepsi and the quantity for that price. "Nickel Nickel" became a hit record and

was recorded into fifty-five languages.

In 1964, Diet Pepsi was introduced. (Mary Bellis: 2005)

5.f The History of 7up

Charles Leiper Grigg was born in 1868 in Price's Branch, Missouri. As an adult, Grigg

moved to St. Louis and started working in advertising and sales, where he was

introduced to the carbonated beverage business.

By 1919, Charles Leiper Grigg was working for a manufacturing company owned by

Vess Jones. It was there that Grigg invented and marketed his first soft drink called

"Whistle".

After a dispute with management, Charles Leiper Grigg quit his job (giving away

"Whistle") and started working for the Warner Jenkinson Company, developing

flavoring agents for soft drinks. Grigg invented then his second soft drink called called

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"Howdy". When he eventually moved on from Warner Jenkinson Co., he took his soft

drink "Howdy" with him.

Together with financier Edmund G. Ridgway, Grigg went on to form the Howdy

Company. So far, Grigg had invented two orange-flavored soft drinks. But his soft

drinks struggled against the king of all orange pop drinks, "Orange Crush". "Orange

Crush" grew to dominate the market for orange sodas.

Charles Leiper Grigg decided to focus on lemon-lime flavors and and by in October of

1929 he had invented a new drink called, "Bib-Label Lithiated Lemon-Lime Sodas".

The name was quickly changed to “7 Up Lithiated Lemon-Lime" and then again

quickly changed to just plain 7up.

7up merged with "Dr Pepper" in 1986. (Mary Bellis: 2005)

5.g The company profile of Pran

AMCL market its product under the brand name PRAN that stands for Program for

Rural Advancement Nationally. The Agriculture Marketing Co. Ltd. (AMCL) was

incorporated in Bangladesh on 15th May 1985 as private limited company under the

companies Act 1913 and subsequently on 2nd June 1993 the co. was converted into

public limited co. the shares of the co. were listed in Dhaka and Chittagong stock

exchanges.

The company is financed by industrial Promotion and Development Co. of Bangladesh

Ltd., ANZ Grindlays Bank, Dutch Bangla Bank and by its stakeholders.

Initially PRAN had jam, Jelly and Pickle in its product line. In January, 1995

production of orange juice and in June production of PRAN mango bottled juice

started. PRAN now operates by having eight zones throughout the country. The zones

are Dhaka Metro, Adjacent Dhaka, Comilla, Chittagong, Sylhet, Khulna, Barisal and

Rajshahi. The company also has three more sub zones.

The company’s business activities are farming, trading, processing of fruits, vegetables

and other agro products. Unit wise activities of the company are shown below.

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Unit-1 Processing of agro products

Unit -2 Farming

Unit- 3 Bottling, tetra packaging of juice and mineral water.

Unit- 4 Trading

5.h The company profile of Virgin

Virgin-the third most recognized brand in Britain is involved in planes, trains, finance,

soft drinks, music, mobile phones, cars, wines, publishing, bridal, wear, etc. they crated

over 200 companies world wide, employing over 25,000 people. Their total revenues

around the world in 19999 exceeded U S $5 billion. They claim that their brand Virgin

is now becoming the first global brand name of the 21st century.

They said their companies are part of a family rather than a hierarchy. They are

empowered to run their own affairs, yet other companies help one another, and

solutions to problems come from all kinds of sources. In a sense they are community,

with shared ideas, values, interests and goals. And Virgin cola is just a member of that

family.

5.i The company profile of Suncrest

National Beverage Industry Ltd., a unit of Sunman Group, first bought Bangladesh

Suncrest. The head office of the company is in Chittagong and in 1997, a branch office

in Dhaka was started. The company has its factory located at Hemayatpur, Savar.

Initially the company used to produce eight flavors, but it is now continuing with five

flavors. Suncrest was the company to introduce a 1.5 litter plastic bottle, which turned

out to be a profitable step for them. It is called the Suncrest Mega. Its varieties are:

ü Suncrest Cola

ü Suncrest Orange

ü Kickapoo Joy Juice

5.j The story of RC (Royal Crown)

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Royal Crown (RC) Cola made by the Royal Crown Cola Company is the third most

popular Cola in America. It is tasty, refreshing soft drink. In 1905, it was at first

designed merely to meet the needs of grocery customers in a limited graphical territory.

A young man named Claude Hatcher who was a good chemist, developed Royal Crown

Ginger Ale in 1906. Royal Crown Ginger Ale was a product of Hatcher Grocery

Company of Columbus. Later around 1910, it was renamed and was called Chero-Cola

rich in cherry flavor.

In 1923, the firm came up with a fruit flavored drink name Melo. A year later the brand

name was changed to Neli. Neli was a quick seller and by 1928 a new company was

formed called Neli Inc. and Chero-Cola was then became a product of Neli Inc. in 1932

Neli Chemist Rufus Kamm concentrated with a new cola drink and his concentration

result was royal crown cola. It was introduced in 1934. In 1959, the company name

changed to Royal Crown Cola. Royal Crown Cola company’s technicians made what

industry leaders term “ The most amazing break through soft drink technological

history.” Royal Crown Cola Company was the first soft drink company to introduce a

sugar free product in 1962 and it was the first company to introduce a salt/sodium free

cola in 1980.

The Royal Crown Cola Company made a late start on the international scene and the

reason for this was simple. Its management wanted to marshal its resources and

concentrate its efforts on the biggest growth market in the world at the time in United

States.

In early 70’s, RC Co. decided to go for global reach and at that time, a number of

experienced soft drink people assembled to manage and direct the company’s

international efforts. Since then, RC Cola has been able to establish a viable base in the

world market and it is currently sold in 63 countries through a network of 78 franchise

bottling plants.

6. Findings of the Study

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Page 30: Beverage Market in Bangladesh

Beverage has been very popular in Bangladesh since 1985. Our research is oriented

with consumer satisfaction regarding different Beverages of Bangladesh. As the

researcher we followed personal inspection system with the consumers and try to get

their point of view by developing a questionnaire. Despite a lot of barriers we tried our

level best to find out the actual reaction of consumers towards the products of

“Transcom Beverage Limited” such as: 7-Up, Pepsi, Mirinda and Slice. Besides this,

we hope that you will get a good preview of consumer’s reaction towards other

Beverage products also.

We have divided our findings in two parts where the first part will show you the overall

consumers reaction on Beverages and second part will represent the satisfaction level

of consumers towards our selected company’s (Transcom Beverage Limited) product.

6.a Overall Consumer Reaction

In this part of our findings we will focus on the reactions of the consumers of

beverages. Having the knowledge of overall reactions of beverage consumers, we can

get the actual position of our selected company’s beverage. It will help us to find out

the satisfaction level of “Transcom Beverage Limited”.

6.a.1 The Number of Respondents

We went to 60 respondents of beverage consumers where 37 of them are male and 23 of

them are female.

Table1: Number of Respondents According to Gender

Gender Total respondents Percentage

Male 37 61.67

female 23 38.33

Source: Field Survey, 2009

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Total Respondents

Male62%

Female38%

Male

Female

From the above illustration we can clearly see that 62% of total respondents were male

and the rest 38% respondents were female.

6.a.2 Respondent’s Age Group

We divide the age group in four categories that are: below 15 years, 15-25 years, 26-35

years, above 35 years. Number of respondents in each age group is illustrated as

follows:

Table 2: Number of Respondents According to the Age Group

Age Groups Number of Respondent’s Percentage

Below 15 years 7 11.67

15-25 years 30 50

26-35 years 14 23.33

Above 35 years 9 15

Source: Field Survey, 2009

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Below 15years

15-25years

26-35years

Above 35years

11.67

50

23.33

15

0

10

20

30

40

50

Per

cent

age

Age Group

Respondent's Age Group

We have tried to get the opinion of all age groups from where 11.67% respondents are

below 15 years, 50% of them are 15-25 years, 23.33% of them are 26-35 years and the

rest 15% are above 35 years.

32

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6.a.3 Occupation

In our questionnaire we have divide the occupation in five categories namely student,

service, housewife, business and others.

Table 3: Number of Respondents According to Occupation

Occupation Number of respondent’s Percentage

Student 36 60

Service 10 16.67

Housewife 5 8.33

Business 8 13.33

Others 1 1.67

Source: Field Survey, 2009

Respondent's Occupaion

60

16.6

7

8.3

3

13.3

3

1.6

7

0 10 20 30 40 50 60 70

Student

Service

Housewife

Business

Others

Percentage

In a total of 60 respondents we found that students are leading the position of beverage

consumers. Service holders and businessmen also take beverages. Small percentage of

housewives also takes beverage as we can see clearly from the chart.

33

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6.a.4 Family income

From our research we found that only upper class people and middle class people are

the main consumers of beverage. Only a small percentage of lower middle class people

take beverage.

Table 4: Number of Respondents According to Family Income

Range of Income Number of Respondents Percentage

Below TK 5000 2 3.33

TK 5000-10000 3 5

TK 10000-15000 3 5

TK 15000-20000 7 11.67

Above 20000 45 75

Source: Field Survey, 2009

3.33 5 511.67

75

01020304050607080

Perc

en

tag

e

Below5000

5000-10000

10000-15000

15000-20000

Above20000

Family Income (TK)

Respondents Family Income

6.a.5 Frequency of Taking Beverage

According to our survey beverage is consumed weekly by most of the consumers. But a

rich number of consumers prefer to take it daily. Following table and graph will give

you a clear idea about frequency of taking beverage.

34

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Table 5: Number of Consumers According to Frequency

Frequency Number of consumers Percentage

Weekly 35 58.33

Fortnightly 4 6.67

Monthly 0 0

Everyday 21 35

Source: Field Survey, 2009

Weekly Fortnightly Monthly Everyday

S158.33%

6.67% 0%

35%

Frequency of Taking Beverage

6.a.6 Time of Taking Beverage

Most of our respondents take beverage in lunch time. Few of them prefer to take

beverage in the evening. The overall timing of taking beverage according to our survey

can be stated as follows:

Table 6: Time of Taking Beverage

Time Number of Consumers Percentage Ranking

Lunch Time 34 56.67 1

Evening Time 18 30 2

Dinner Time 6 10 3

Breakfast Time 2 3.33 4

Source: Field Survey, 2009

35

Page 36: Beverage Market in Bangladesh

56.67

30

103.33

0

10

20

30

40

50

60

Perc

en

tag

e

Lunch Evening Dinner Breakfast

Time

Time of Taking Beverage

6.a.7 Quantity of Purchasing Beverage

In our survey we found that consumers prefer to buy 1-2 liters bottle at a time. About

27% of them prefer to buy ½ -1 liter bottles at a time. Overall consumer’s priorities are

presented below.

Table 7: Quantity of Purchasing Beverage

Quantity(liters) Number of Consumers Percentage Ranking

1-2 22 36.67 1

½-1 16 26.67 2

0-½ 14 23.33 3

2-4 8 13.33 4

Source: Field Survey, 2009

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Quantity of Purchasing Beverage

1-2 liters37%

2-4 liters27%

.5-1 liters23%

0-.5 liters13%

6.a.8 Beverage Liked by Most Respondents

As we surveyed on the 60 consumers of beverages, 28 of them like 7up, 20 of them like

Coca-Cola and 13 of them like other beverage products. Consumer’s choice of

beverage will be clearer by our following illustration.

Table 8: Beverage Preferred by Most Consumers

Beverage Name Number of

Consumers

Percentage Ranking

7up 28 46.67 1

Coca-Cola 19 31.67 2

RC 6 10 3

Mojo 5 8.33 4

Virgin 2 3.33 5

Source: Field Survey, 2009

37

Page 38: Beverage Market in Bangladesh

46.67

31.67

10 8.333.33

0

10

20

30

40

50

Pe

rce

nta

ge

7up Coca-Cola RC Mojo Virgin

Beverage Preferred by Most Consumers

6.a.9 Criteria Affecting Buying Beverage

Human mind is significantly different from each others. Reasons of buying beverage

are not same for all. Someone think flavor is most important features of beverage while

someone feels taste and company reputation are the main features of any beverage. We

will show our findings regarding how different criteria affecting consumers to buy

beverage by following table and graph.

Table 9: Criteria Affecting Buying Beverage

Very important Not at all important

Criteria 5 4 3 2 1

Taste 78.33% 21.67% 0% 0% 0%

Color 26.67% 31.67% 18.33% 10% 13.33%

Flavor 50% 31.67% 18.33% 0% 0%

Attractive Packaging 28.33% 23.33% 23.33% 16.67% 8.33%

Advertisement 28.33% 25% 21.67% 15% 10%

Company Reputation 58.33% 30% 3.33% 1.67% 6.67%

Source: Field Survey, 2009

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78.33%

26.67%

50%

28.33%

28.33%

58.33%

21.67%

31.67%

31.67%

23.33%

25%

30%

0%

18.33%

18.33%

23.33%

21.67%

3.33%

0%

10%

0%

16.67%

15%

1.67%

0%

13.33%

0%

8.33%

10%

6.67%

Taste

Color

Flavor

Attractive Packaging

Advertisement

Company Reputation

Not at All Important (1)

2

3

4

Very Important (5)

Table 10: Criteria Affecting Buying Beverage (Average)

Criteria Average Ranking

Taste 4.78 1

Flavor 4.37 2

Company Reputation 4.32 3

Color 3.52 4

Advertisement 3.52 4

Attractive Packaging 3.50 5

Source: Field Survey, 2009

6.a.10 Form of Packaging

39

Page 40: Beverage Market in Bangladesh

Among the 3 forms of beverage packaging our respondents like the plastic packaging

form, paper and glass packaging also preferred by some consumers.

Table 11: Form of Packaging

Packaging Number of Consumers Percentage Ranking

Plastic 33 55 1

Glass 15 25 2

Paper 12 20 3

Source: Field Survey, 2009

55

2520

0

10

20

30

40

50

60

Per

cen

tag

e

Plastic Glass Paper

Packaging Form

Form of Packaging

6.a.11 Satisfaction regarding Different Sizes of Bottles

Among our 60 respondents only 2 of them are not satisfied with their selected

company’s bottle size. One of them says 250 ml bottle should introduce and other says

bigger than 2 liters bottle should be introduced.

40

Page 41: Beverage Market in Bangladesh

Table 12: Satisfaction regarding Different Sizes of Bottles

Consumers Answer Number of Consumers Percentage

Yes 58 96.67

No 2 3.33

Source: Field Survey, 2009

Satisfaction Level About Various Bottle Sizes

Yes, 96.67

No, 3.33

6.a.12 Pricing of Preferred Beverage

33 of our respondents said that their preferred beverage price is reasonable, 22 said

high and 5 of them are not sure about their preferred beverage price.

Table 13: Pricing of Preferred Beverage

Price Number of

Consumers

Percentage Ranking

Reasonable 33 55 1

High 22 36.67 2

Not Sure 5 8.33 3

Low 0 0 4

Source: Field Survey, 2009

41

Page 42: Beverage Market in Bangladesh

36.67

08.33

55

0

20

40

60P

erce

nta

ge

High Low Not Sure Reasonable

Price

Pricing of Beverage

6.a.13 Switching Brand Because of Competitors Low Price

Well most of our respondents were very loyal to their preferred beverage.45 of them

will not switch to other brand even if they reduce their prices.

Table 14: Switching Brand Because of Competitors Low Price

Consumer Answer Number of Consumers Percentage

Yes 45 75

No 15 25

Source: Field Survey, 2009

Switching Brand Because of Competitors Low Price

Yes75%

No25%

6.a.14 Availability in the Rural Areas

42

Page 43: Beverage Market in Bangladesh

43 of our respondents feel that their preferred beverage should be more available in the

rural areas.

Table 15: Availability in the Rural Areas

Answer Number of Consumers Percentage

Yes 43 71.67

No 17 28.33

Source: Field Survey, 2009

Availability in the Rural Areas

Yes72%

No28%

6.a.15 Advertisement Seen by Consumers

31 of our 60 respondents have seen beverage advertisement on different media. They

watched advertisement on Coca-Cola, Fizz up, Uro Lemon, Mojo and 7up in TV media

and newspaper.

Table 16: Advertisement Seen by Consumers

Answer Number of Consumers Percentage

Yes 31 51.67

No 29 48.33

Source: Field Survey, 2009

43

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Advertisement Seen by Consumers

Yes52%

No48%

6.a.16 Consumers Attitude towards New Beverage

27 of our 60 respondents will try if any new beverage enters into market, 12 of them

will not try it while 21 of them are uncertain regarding new arrival of beverages.

Table 17: Consumers Attitude towards New Beverage

Answer Number of Consumers Percentage

Yes 27 45

No 12 20

Uncertain 21 35

Source: Field Survey, 2009

Attitudes towards New Beverage

Yes45%

No20%

Uncertain35%

44

Page 45: Beverage Market in Bangladesh

6.b Consumer Reaction toward “Transcom Beverage Limited”

In this part of our findings we have tried to find out the satisfaction level of the

consumers of “Transcom Beverage Limited”. From our field survey we have found that

28 respondents out of 60 respondents are the consumers of “Transcom Beverage

Limited”. So here our main focus will be on the reactions of those 28 respondents of

“Transcom Beverage Limited”. We will be analyzing the satisfaction level of the

consumers. The graphical overview of the “Transcom Beverage Limited” is given

below:

Table 18: Number of 7up Consumer

Number o 7up Consumer 28

Number of Other products Consumer 32

Source: Field Survey, 2009

Consumer of "Transcom Beverage Limited"

7-Up46.67

Others53.33

7-Up

Others

From the above table we can clearly see that 28 of our 60 respondents like 7up and 32

like other products. You can see the percentage of 7up and other products consumer

from the above graph. Here our focus point is on those 28 7up consumers. 7up is the

main product of Transcom Beverage. So we are focusing on the consumer satisfaction

on 7up.

6.b.1 Consumers of “Transcom Beverage Limited” Gender wise

Out of 28 consumers 18 and 10 people were male and female respectively. We went to

23 female consumers 10 of them chose 7-Up which is a product of “Transcom

Beverage Limited” and from 37 male consumers 18 of them chose 7-Up.

45

Page 46: Beverage Market in Bangladesh

Table 19: Number of Consumers of “Transcom Beverage Limited” According to

Gender

Gender Number of Consumers Percentage

Male 18 64.29

Female 10 35.71

Source: Field Survey, 2009

Consumers' Gender

Female35.71

Male64.29

Male

Female

6.b.2 Consumer’s Monthly Family Income

From our survey we have divided the category of monthly family income of the

consumers of the “Transcom Beverage Limited” which is given below:

Table 20: Number of Consumers of “Transcom Beverage Limited” According to

Family Income

Range of Income Number of Respondents Total Percentage

Male Female Male Female

Below TK 5000 0 0 0 0 0

TK 5000-10000 2 0 2 11.11 0

TK 10000-15000 1 0 1 5.56 0

TK 15000-20000 4 1 5 22.22 10

Above 20000 11 9 20 61.11 90

Source: Field Survey, 2009

46

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0 11.1

10

5.56

0

22.2

2

10

61.1

1

90

0102030405060708090

Perc

enta

ge

Below 5000 5000-10000 10000-15000 15000-20000 Above 20000

Income Range (TK)

Family Income According to Gender

Male

Female

From the above chart and graph we can see that about 71% of 7-Up consumers have a

family income of above TK. 20000. About 18% of 28 consumers have a family income

of TK. 15-20000.More interestingly our female consumer has a greater family income

than male consumer.

6.b.3 Frequency

In case of frequency of taking our product we found that most of the consumers prefer

to take it weekly rather than daily. Female consumers drink our product weekly more

often while a few of our male consumers drink it daily.

47

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Table 21: Number of Consumers of “Transcom Beverage Limited” According to the

Frequency

Frequency Number of consumers Total Percentage

Male Female Male Female

Weekly 13 7 20 72.22 70

Fortnightly 0 1 1 0 10

Monthly 0 0 0 0 0

Everyday 5 2 7 27.78 20

Source: Field Survey, 2009

70

100

20

72.22

0 0

27

.78

01020304050607080

Pe

rce

nta

ge

Weekly Fortnightly Monthly Everyday

Male

Female

Frequency

Frequency of Taking 7up According to Gender

Male

Female

6.b.4 Time of Taking Beverage

Well lunch and evening is the most preferred time of taking our beverage. Not a single

customer takes our beverage in breakfast time. We classified our findings gender wise.

So that it will be clearer to you.

48

Page 49: Beverage Market in Bangladesh

Table 22: Number of Consumers of “Transcom Beverage Limited” According to the

Time

Time of Taking Beverage Number of consumers Total Percentage

Male Female Male Female

Breakfast Time 0 0 0 0 0

Lunch Time 9 4 14 50 40

Evening Time 5 5 10 27.78 50

Dinner Time 4 1 5 22.22 10

Source: Field Survey, 2009

Breakfast Lunch Evening Dinner

Male

Female0%

40% 50%

10%

0%50%

27.78% 22.22%

Time

Time of Taking Beverage

Male

Female

6.b.5 Quantity of Taking Beverage

Quantity of buying our product is always an important issue for the company. So we

have tried hard to get the actual information from our consumers on that point. Here

we find that female consumers prefer to buy 1-2 liters bottle and male consumers prefer

to buy 1-2 and ½-1 liter bottle.

Table 23: Number of Consumers of “Transcom Beverage Limited” According to the

Quantity

Liters Number of consumers Total Percentage

Male Female Male Female

1-2 liters 6 5 11 33.33 50

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Page 50: Beverage Market in Bangladesh

2-4 liters 1 1 2 5.56 10

½ -1 liter 7 3 10 38.89 30

0- ½ liter 4 1 5 22.22 10

Source: Field Survey, 2009

1-2 liters 2-4 liters 1/2-1 liter 0-1/2

Male

Female

50%

10%

30%

10%

33%

6%

38.89%

22.22%

Liters

Purchasing Quantity

Male

Female

6.b.6 Packaging of “Transcom Beverage Limited”

When it comes to packaging of Transcom products our consumer gives us a mixed

opinion. Male consumers are interested in plastic and glass packaging. Female

consumers are interested in paper and plastic packaging. One thing for sure is that

plastic packaging of Transcom products is appreciated by all of our consumers.

Table 24: Number of Consumers of “Transcom Beverage Limited” According to the

popular packaging

Packaging Number of consumers Total Percentage

Male Female Male Female

Plastic Packaging 12 6 18 67.67 60

Glass Packaging 5 1 6 27.78 10

Paper Packaging 1 3 4 5.56 30

Source: Field Survey, 2009

50

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33%

50%

6%

10%

38.89%

30%

0% 10% 20% 30% 40% 50%

Plastic

Glass

Paper

Packaging Female

Male

6.b.7 Pricing of the Products of “Transcom Beverage Limited”

Among 28 of our consumers 13 says price is reasonable of Transcom products. But

equal numbers of consumers feel that the price is a bit on the higher side.

Table 25: Consumers Opinion about Price of the Products of “Transcom Beverage

Limited”

Price Number Percentage

Low 0 0

High 13 46.43

Reasonable 13 46.43

Not sure 2 7.14

Source: Field Survey, 2009

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Pricing of Transcom Products

0%

7.14%

46.43%

46.43%

Low

High

Reasonable

Not sure

6.b.8 Switching Brand Because of Competitors Low Price

Does our consumer switch into other company’s product because of their lower price?

While answering this question most of our consumer was loyal to us. But 21.43% of our

consumer informs us that they will shift into other products if they find them more

reasonable.

Table 26: Switching Brand Because of Competitors Low Price

Consumer Answer Number of Consumers Percentage

Yes 6 21.43

No 22 78.57

52

Page 53: Beverage Market in Bangladesh

Leaving Transcom Products for Competitors Low Price

No79%Yes

21%

6.b.9 Availability of Transcom Beverage Products in the Rural Areas

Most of our consumer is satisfied with the availability of our product in the rural areas.

Few of them complained to us that they don’t find our product whenever they go for

vacation in the rural side.

Table 27: Availability of Transcom Beverage Products in the Rural Areas

Answer Number of Consumers Percentage

Yes 22 78.57

No 6 21.43

Source: Field Survey, 2009

Availability in the Rural Areas

No21%

Yes79%

53

Page 54: Beverage Market in Bangladesh

6.b.10 Biggest Competitors of Transcom Beverage Products

This is another important topic that we need to find out with great interest. According

to our 28 respondents Coca-Cola is the biggest competitor of 7up and Pepsi. 10 of them

said RC also is a great competitor of Transcom products.

Table 28: Ranking of Transcom Beverage Competitors

Brand Name Number Percentage Ranking

Coca-Cola 15 53.57 1

RC 10 35.71 2

Mojo 3 10.71 3

Pran 0 0 4

Virgin 0 0 5

Source: Field Survey, 2009

53.57

35.71

10.710 0

0

10

20

30

40

50

60

Per

cen

tag

e

Coca-Cola RC Mojo Pran Virgin

S1

Competitors Name

Competitors Position

6.b.11 Attitude of Transcom Beverage Consumers towards New Beverage

10 of our consumer says that we are innovative enough to try new things.12 of them

were uncertain on that point. 6 of our consumer say that we are loyal to Transcom

products and will not try any new product.

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Page 55: Beverage Market in Bangladesh

. Table 29: Attitude of Transcom Beverage Consumers towards New Beverage

Answer Number of Consumers Percentage

Yes 10 35.71

No 6 21.43

Uncertain 12 42.86

Source: Field Survey, 2009

35.71

21.43

42.86

0

10

20

30

40

50

Perc

en

tag

e

Yes No Uncertain

Attitude of Consumers towards New Beverage

55

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6.b.12 Consumers of “Transcom Beverage Limited” According to the Occupation

We all know beverage is a product for young generation. So not surprisingly Students

are the main consumer of Transcom products. Though we went to only 60 respondents

but most of them were selected randomly. The following table will clarify our findings:

Table 30: Ranking of Consumers Occupation

Occupation Number Percentage Ranking

Student 16 57.14 1

Service 5 17.86 2

Housewife 3 10.71 3

Business 3 10.71 4

Others 1 3.57 5

Source: Field Survey, 2009

57.14

17.86

10.71

10.71

3.57

0 10 20 30 40 50 60

Percentage

Student

Service

Housewife

Business

Others

Consumer's Occupation

56

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6.b.13 Criteria Affecting Buying Products of Transcom Beverage

Human mind is significantly different from each others. Reasons of buying our

companies beverage are not same for all. Someone think flavor is most important

features of our beverages while someone feels taste and company reputation are the

main features of Transcoms beverage. We will show our findings regarding how

different criteria affecting consumers to buy our companies beverage by following table

and graph:

Table 31: Criteria Affecting Buying Transcom Beverage

Very important Not at all important

Criteria 5 4 3 2 1

Taste 67.86% 32.14% 0% 0% 0%

Color 17.86% 21.43% 21.43% 14.29% 25%

Flavor 53.57% 25% 21.43% 0% 0%

Attractive Packaging 28.57% 28.57% 17.86% 7.14% 17.86%

Advertisement 17.86% 25% 25% 17.86% 14.29%

Company Reputation 53.57% 35.71% 0% 7.14% 3.57%

Source: Field Survey, 2009

57

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67.86%

17.86%

53.57%

28.57%

17.86%

53.57%

32.14%

21.43%

25%

28.57%

25%

35.71%

0%

21.43%

21.43%

17.86%

25%

0%

0%

14.29%

0%

7.14%

17.86%

7.14%

0%

25%

0%

17.86%

3.57%

14.29%

Tast

eC

olor

Flav

orA

ttra

ctiv

eP

acka

ging

Adv

ertis

emen

tC

ompa

nyR

eput

atio

n

Not at All Important (1)

2

3

4

Very Important (5)

Table 31: Criteria Affecting Buying Beverage (Average)

Criteria Average Ranking

Taste 4.68 1

Flavor 4.32 2

Company Reputation 4.29 3

Attractive Packaging 3.43 4

Advertisement 3.14 5

Color 2.93 6

Source: Field Survey, 2009

58

Page 59: Beverage Market in Bangladesh

7. Conclusion and Recommendation

Our study states that beverage is very much popular in Bangladesh. Though we

have surveyed only in 5 areas but those are important areas of Dhaka city. Our

research will be more successful for the organization if we can survey on the

consumers of all areas. But we have some limitations and that’s why we surveyed

on 60 respondents. According to their opinion we find that our product has the

majority of consumers. 7up is the most favorite drinks among all the Transcom

products.

During our research we find that there are close relation between family income

and frequencies of taking beverage. The person has family income of at least 20000

prefer to take beverage daily. We also find that there are significant differences

between different consumers. Some of them prefer to take beverage in lunch time;

some prefer evening time and some of them like it in dinner time. Students are the

main consumer of beverage product.

After finishing our survey we found some lacking of Transcom Beverage which is

mentioned by our respondents. First of all 7up don’t have any 250 ml bottle. They

should provide mini bottle size to the consumers at a lower price. Secondly they can

reduce their price a bit to get competitive advantage because some of their

consumers are threatening to shift in other company’s product. Thirdly 7up doesn’t

have any paper packaging, so they can introduce it because some of their consumer

complains against glass and plastic packaging. Fourthly Transcom Company

should use local model in case of advertising. Advertisement of products like 7up

and Pepsi is very important from company’s point of view. Local model can

communicate more successfully with the consumers of rural areas. Finally,

availability of Trannscom product should be increased specially in the rural areas.

So at last we can say that our research report will help you to provide overall ideas

of beverage market in Bangladesh and will also established our company’s position

in Bangladesh market.

59

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8. References

8.a Beverage Products in Bangladesh, (2008), “The World of Made in Bangladesh”,

March 15, 2009, Source (http://www.pagead2.googlesyndication.com,173 kb)

8.b History of Transcom Group, (2007), “Transcom Today”, March 15, 2009, Source

(http://www.transcombd.com,33 kb)

8.c Mary Bellis, (2005), “The History of Beer, Wine, and Alcoholic Beverages and

Drinks, March 15, 2009,

Source (http://www.ad.doubleclick.net/adi/abt.money/money_inventors,113kb)

8.d Charles Leiper Grigg, (2005), “The History of 7up”, March 15, 2009, Source

(http://www.7up.com,59 kb)

8.e Caleb Bradham, (1982), “The History of Pepsi Cola”, March 15, 2009, Source

(http://www.pepsicola.com,721 kb)

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8.f Beverage Manufacture and Bottling, (2008), “Beverage Manufacture and

Bottling”, March 20, 2009, Source (http://www.hooverstm.com, 36.6 kb)

8.g Bangladesh Beverage, (1999), “Bangladesh Beverage”, March 20, 2009, Source

(http:// www.velki.com,13.2 kb)

8.h Bangladeshi Online Bazar, (2007), “Product View”, March 25, 2009, Source

(http://www.mohajon.com,55.1 kb)

8.i Food and Drinks in Bangladesh, (2005), “Bangladesh Cultural Information”,

March 25, 2009, Source (http://www.pigeontravels.com,14.9 kb)

8.j New Pepsi drink, (2003), “Star Business Report”, March 25, 2009, Source

(http://www.thedailystar.net,42 kb)

]

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9. Appendices 9.a Questionnaire

Southeast University

School of business studies

Questionnaire to CustomerDear sir / madam,This questionnaire has been designed to extract necessary facts about Beverage items in Bangladesh for conducting the academic research on “Customer Satisfaction Delighted with Profitability.” Please feel free to answer the questions & help to extract the truth. Your answers will not be published elsewhere & will be kept secret.

Name: Age: Below 18 18-29

30-40 41-50

Above 50

Occupation: Gender: Male Female

Area of residence: Income level: Tk 1000- 5000 Tk 5000-10000 Tk 10000-30000 Tk 30000-50000

1. Which brand do you prefer most?

a. Coke b. Pepsi c. RC d. Virgin e. Others

2. Which flavor do you like most?

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a. Cola b. Orange c. Lemon d. Diet e. Mango

3. Which thing influence you most to choose a soft drinks?

a. Taste b Brand c. Advertisement d. Friend’s influence e. Availability

4. Which package do you like most?

a. 300ml b. 1000ml c. 1500ml pet d. 1000ml

e. Glass bottle f. 250 ml can

5. Who is the consumer group for beverage according to you?

a. Children b. teen age c. youth d. elderly people e. over 35

6. What your desires while you want to have cold drinks?

a. Chilled b. Availability c. Taste

7. Which medium of advertisement influences you most?

a. Press b. TV c. Radio d. out door e. point of parches

8. For TV ads, which channel is most preferred by you?

a. BTV b. Channel I c. E TV d. A T N Bangla e. Others

9. If you like to have Lemon, which one is best by taste?

a. Cloudy lemon b. Miranda Lemon c. Sprite d. 7UP

e. Bubble UP f. Upper 10

10. For Diet which brand you like most?

a. Coke b. Pepsi c. R C d. Virgin e. Others.

11. As a customer, which point(s) you like most to purchase a product?

a) Availability b) Selection c) Quality d) Reliability e)

Service f) Customer g) Friendliness h) Cost

12. As a customer, what is your promotion behind buying a product?

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a) Company slogan b) Advertisement c) Package outlook

d) Brand name e) Others

13. Do you prefer to buy product when it offers some other things for free?

a) Always b) Sometimes c) Never unless my specific brand offers

14. In western countries most company offer Gift hamper of all of their products. If these sorts of packages were available for our country—products, would you prefer to buy that product?

15. What is the color of your favorite drinks?

a) Red b) Blue c) Green d) Pink e) White f) Off white g) Cyan h) Magentas i) Violate j) Light k) others

16. Soft Drinks are good for health?

a) Strongly Agree b) Agree c) Neutral

d) Dissatisfied e) Strongly Dissatisfied

17. Can Soft Drinks refresh your mind?

a) Strongly Agree b) Agree c) Neutral

d) Dissatisfied e) Strongly Dissatisfied

18. Soft Drinks are available in the Retail shop?

a) Strongly Agree b) Agree c) Neutral

d) Dissatisfied e) Strongly Dissatisfied

19. Quality of Soft Drinks is good

a) Strongly Agree b) Agree c) Neutral

d) Dissatisfied e) Strongly Dissatisfied

20. Every Soft Drink is Alcohol free

a) Strongly Agree b) Agree c) Neutral

d) Dissatisfied e) Strongly Dissatisfied

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21. Usually younger more like Soft Drinks

a) Strongly Agree b) Agree c) Neutral

d) Dissatisfied e) Strongly Dissatisfied

22. Every Soft Drinks has different taste

a) Strongly Agree b) Agree c) Neutral

d) Dissatisfied e) Strongly Dissatisfied

23. Promotional tools of the Company would inspired you to buy Soft Drinks

a) Strongly Agree b) Agree c) Neutral

d) Dissatisfied e) Strongly Dissatisfied

10. b Research Proposal

TOPIC: Research Proposal for Attitude Measurements towards Beverage Items in Bangladesh”: A case study in Dhaka City.

65

Cell Number:

Signature:

Page 66: Beverage Market in Bangladesh

Prepared For

Ishtiaque Arif,

Lecturer,School of business studies

Southeast University.

Prepared BY

MD. RASHEL BHUYAN ID

2006210000094

MAHMUDA AKHTER ID

2006110000038

(On behalf of all the students ofBatch-14th, Section- C)

SUBMISSION DATE: APRIL 13, 09

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Southeast University Bangladesh

1. Define the Research Topic:

Beverage can be of many types. But our research is on carbonated and non carbonated beverages. In our research we will find out the consumer satisfaction of Transcom Beverage products. Consumers satisfaction means to which extend consumers are satisfied on our products. By knowing this information we can set policy for our company in a more specific way. We can also produce products according to consumer’s choice.

The objectives of this research are:

o To know about the beverage market in Bangladesh

o To see the consumer patterns, occupation, their taste and criteria of buying beverage.

o To know the satisfaction level of consumers toward the products of Transcom beverage.

2. Find Out What is Known About the Topic:

A drink, or beverage, is a liquid specifically prepared for human consumption. In addition to basic needs, beverages form part of the culture of human society.

At present Bangladesh has a very competitive market of beverage. Bangladesh has a relatively hot weather and people tend to be thirstier. So they prefer to take soft drinks most of the time. Beverage took the market of Bangladesh in the first half of 1980. In that time two or three soft drinks were available in the market. But now lots of beverage found in the market. Some of them are popular and some are not so popular.

These early industrial ventures have moved over to businesses involved in high-tech manufacturing, international trading and distribution, forming strong ties with a host of blue chip multinational companies. In recent years Transcom has emerged as an increasingly significant media house in Bangladesh.

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Beverage has been very popular in Bangladesh since 1985. Our research is oriented with consumer satisfaction regarding different Beverages of Bangladesh. As the researcher we followed personal inspection system with the consumers and try to get their point of view by developing a questionnaire. Despite a lot of barriers we tried our level best to find out the actual reaction of consumers towards the products of “Transcom Beverage Limited” such as: 7-Up, Pepsi, Mirinda and Slice. Besides this, we hope that you will get a good preview of consumer’s reaction towards other Beverage products also.

The central meaning of that topic is to improve customer satisfaction and company’s product quality through a research program where consumers express their thoughts toward our products.

3. Clarify Concepts and their Measurements :

“Consumer Satisfaction of Transcom Products” has both validity and reliability. Validity is here because consumer satisfaction produces a great deal of improvement in the organization performance. After finishing our survey on that topic a clear result of improving organizational performance will take place.

On the other hand reliability is here, as because the measurement leads to a consistent outcome.

For clarifying concepts and their measurement following questions can be answered---

o Is there any problem in Transcom products?

o Does the price of Transcom products are high?

o Are the Transcom products available in the rural market?

o Does the taste, color and flavor of Transcom products is good enough?

o What packaging will be the best for Transcom products?

o How Transcom products can be improved?

4. Establish as Appropriate Data Collection Method:

This work will be based on both secondary and primary sources. The secondary sources of data will include internet articles, some foreign and local websites on

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beverages. Most of the data required for the study will be collected from primary source through a structured questionnaire.

5. Consider the Purpose, Value and Ethics of the Study:

Now a day’s competition increased significantly in the business area. Beverage sector is not separate from it.

The purpose of this research is to know consumers attitude towards Transcom products.

The value of this research is to develop company’s product quality according to the consumers demand.

By developing this research program Transcom Beverage Ltd. can know the customer feedback and opinion towards their product. By knowing this we hope they can improve product quality as well as their market share.

6. Operationalize Concepts and Design the Research Instrument:

We will operate our survey by developing a questionnaire and take opinion from our respondents. The overall concepts that we are expecting to find from our survey can be stated as follows:

o Students would be the main consumers of carbonate beverage.

o The person has family income of more than 20000 taka would take beverage daily.

o 7up would be the leading beverage brand in Bangladesh.

o Coca-Cola would be the biggest competitor of 7up.

o Most of the consumer would select beverage on the basis of its taste, flavor a company reputation.

o TV media would be the most used media for beverage advertisements.

o Plastic packaging would be the most convenient for the consumers.

o Most of the consumer would feel that price of 7up is reasonable.

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o Some of the consumer would feel 250ml bottle of 7up should be introduces.

7. Select a Sample of Subjects to Study:

Our target organization for this research is Transcom Beverage Ltd. We will use non-probability sample and will go to 60 respondents. We will finish our research on the basis of those 60 respondent opinions.

8. Collect the Data:

This work will be based on both secondary and primary sources. The secondary sources of data include internet articles, some foreign and local websites on beverages. Most of the data required for the study will be collected from primary source through structured questionnaire.Before surveying the questionnaire our teacher will test the questionnaire and help us to develop it.

9. Process the Data:

For this research both qualitative and quantitative data analysis will be required. There are also some statistical evaluation of beverage consumers and their patterns. For processing the data in computer Microsoft word and excel is required.

10. Analyze the Data:

All the data will be edited, coded and classified by our group members before making the final analysis. Average, percentage and ranking method will be used for analyzing the data. Different graphs, charts and table will also be used for presenting the data.

11. Present the Results:

We are presenting our research report both in soft and printed copy to our honorable course teacher through a CD. We will make a presentation where our entire six researchers will take part.

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