Report on Scenario Analysis of Energy Drinks

Executive Summary

 Now these days Energy drinks are the major part of a beverage company. Every company is producing the soft drinks they also produce the energy drinks. In our beverage market there are many companies run their operation in beverage market? There is huge competition existing among the Beverage companies as well companies also focus on individual customer rather industrial or big customers. The first position holds by the tiger energy drinks produce by of AST beverage LTD. Second position hold by the Speed energy drinks holds this drinks produce by Akij Food & beverage Ltd. In the third position the Shark Energy drinks are formed their position it is imported by Globe Bangladesh Ltd and in the final position the Big boss are formed. Every company now these want to grave the market share that’s why they want do more marketing activities. I have seen that the energy drinks companies are not much different from each other in Bangladesh. They follow the same practice and procedures which are followed by their competitors. They should be more innovative in their approaches.

 For the completion of my BBA degree I have got an opportunity to do my internship in Partex Beverage ltd. For this reason I can closely see the retail operation of in Partex Beverage with different group like customer service, teller and customer relationship group. From the short term of duration I have learned a lot about marketing operation like distribution, maintenance and promotion and I also see the incentives also given to the retailer to promoting the Big boss energy drinks. I have also learned a lot from retailer group. I have learned some sales incentives is given by the company it self to the sales people of the Partex Beverage. In this report I also showed how a company can’t maintain their consistency when they run their operation in the beverage market and how Partex are not gain their proper market share. Partex are the one of the most popular Beverage Company in our country.                                              Customer elation from RM group.

1. Origin of the Report:

This report has been prepared as a requirement of the internship program. The report was based upon the Energy drinks of Bangladesh, the energy drinks are Tiger, Big Boss, Shark and Speed. My Organization supervisor was Mr. Aktaruzzaman, Marketing Manager of Partex Beverage Ltd, and my institution supervisor is Tanvir Ahmed Minar, Asst. Professor of Bachelor of Business Administration, Stamford UniversityBangladesh. My institute supervisor duly approved the topic, which was decided for doing the report. The report will definitely increase the knowledge of other students to know the Scenario of energy drinks of Bangladesh.

2. Background of the Report

Last year Partex Beverage undertook a project to review the global best practices in the beverage sector and examines in the possibility of introducing these energy drink named Big Boss in the beverage market of Bangladesh. Four ‘Focus Groups’ were formed with participation representatives from the Partex Beverage as team coordinators to look into the practices of the best performing beverage company both at home and abroad. These focus groups identified the needs and wants of the consumer and produce a document that would be very helpful for the consumer model for identified the actual demand of the consumer from the Big Boss energy drinks from Paretx of Beverage Company

3. Objective of the Report:

This literature is written on the energy drinks in Bangladesh and how the role of energy drinks growth related beverage in Bangladesh. The report is divided into four parts. In the first phase, it was all about organization part in that part I am mention that my organizations energy drinks and than I am present all other part of their business activities which they have run their operation successfully. On the project part, it focused on the “Operational Process and Products of beverage company that assists the company in international trade business.” together with the study on the “Opportunities of the energy drinks which are get by the consumer after they drink energy drinks.  , in my report, I tried to show the role of energy drinks how the energy drinks can meet the thirstiness of the consumer and it can be useful for taking as a soft drinks. On the organization part, the objective was to find by analyzing when we saw the advertisements of the energy drinks, the basic thinks is that the each and every energy drinks focus on how the energy drinks remove the weakness of people and how the energy drinks give the refreshments to the people when they take the energy drinks. The effectiveness of energy drinks are also shown in the company introductory parts of all the energy drinks those are mention in my research, actually my four energy drinks are Tiger, Big Boss, Shark and Speed.  And, lastly I discussed the feasibility and practical market issues about the energy drinks at the end of each company objective. As policies and strategy formulated at the core level will dictate and guide the activities of the acceptability of the new

Product, so critical analysis in determining the success or failure of the product is very significant. So in that reason each energy drinks Company has to take the decision very carefully when they want to developed their own product

4. Scope of the Report:

The scope of the report was to find the market scenario of the energy drinks those are run their operation in the energy drinks market. In addition, the report was done to find the effectiveness of the energy drinks and how the energy fill up the thirstiness of the consumer, the report also focused on the feasibility study and practical market issues about new ventures and operational procedures of the energy drinks. The scope of this report is limited to the overall descriptions of the energy drinks company, its services, and its position in the industry, and its competitive advantage. The scope of the study is limited to organizational setup, functions, and performances of the energy drinks company.

 This study focuses on the following issues:

•        Current market scenario of Beverage Products in DhakaCity.
• Competitive situations of beverage products covering promotional activities, brand preference of soft drinks.
•    Consumer choice about taste and their liking, disliking about soft drinks.
•      Media wise advertisement ratio analysis covering TV and Newspaper.
•     Some proposals and recommendations for the brand improvement of Big boss.

5. Methodology of the Report:

Sample Information

Samples are collected from the institutional clients of the company and other information collected from the different location of the Dhaka city, most of the sample size age between 16 to 35. Here, the samples had been picked up on a judgmental basis. For the organization part, much information had been collected from different published articles, journals, brochures and web sites. All the information incorporated in this report has been collected both from the primary sources and as well as from the secondary sources. The basic information is collected from the consumer of the energy drinks by this the information are get very strong because the data is raw and it will be collected from those people those are continuously taking the energy drinks on the regular basis.

Sources of Data

Primary Source of Data

Collecting data directly from the practical field is called primary source of data. The method that was used to collect the primary data is as follows:

Observation Method:

Observation method may be defined as systematic viewing according to concise Oxford Dictionary “accurate watching, nothing of phenomena as they occur in nature with regard to cause and effect and mutual relationship”. I have observed many of the activities of the energy drinks company.

• Discussion with officials of the company.
• Face to face conversation with the consumer
• Discussions with customers over the telephone & responding to their query.
• Ask the question on the basis of their likings of the energy drinks.
• Asking the customer about the purchase behavior of the consumer.

The secondary data has been collected from the MIS of each companies those are run their operation in the energy drinks sector in Bangladesh. To clarify different conceptual matters, internet and different articles published in the journals & magazines have been used.

Secondary Sources are:

• Annual Publication of each Beverage companies.
• Annual Reports of each Beverage companies.
• Other published documents of energy drinks.

Data Collection:

Both secondary and primary data are used for preparing this report. But the research was mainly based on the clients’ survey. Information was collected directly from the consumer who is taking the energy drinks quite regular basis, and the research also done by this people.

6. Limitations:

Limitation, which I have faced while doing my internship report are discussed below:

* As, I had more dependence on the primary sources, so there might be some level of inaccuracy with those collected information’s. Though, adequate verification and cross- checking was used, to minimize the error level.

* Confidential information regarding past profit or product cost, marketing policy was not accurately obtained. Alike all other energy drinks company, Partex beverage is also very conservative and strict in providing those information. In those cases, I have relied upon some assumptions, which in result have created certain level of inaccuracy. Still, I had tried my best in obtaining those sensitive information’s, as much as possible.

* Next, many of the analysis on the obtained data are based upon my sole interpretation. This in result might bring some biases, as lack of knowledge and depth of understanding might hinder me to produce an absolute authentic and meaningful report.

*   Time constraint was another limitation restricting this report from being more detailed or analytical. The Relationship Mangers at the operation or strategic level of the concerned department are awfully busy with meeting their targets. So, it was very difficult for me to get them free and obtain some practical ideas regarding their expectation and opportunities regarding my topic.

Above all, this internship report was prepared just at the closing month of May. So, it was very hard for me to accommodate time for preparing this report. Mostly, our office timings at Partex beverage are from early morning till 8 p.m. During office hours it’s simply hard to manage time for working with the report. And, working with the report after regular office hours is quite hectic

Report Organization

This report is divided in four sections. The following section is the organization part i.e. this section will give an overview of energy drinks. In section one Company Overview part, Section Two   Marketing objective of Big Boss, in section Three, Competitive analysis of the energy drinks and in section Four Suggestions and recommendation are covered.

7. Benefit of the Study

By this primary research normally we can identify the likeliness of the energy drinks among the four selected energy drinks in Bangladesh  The main tasks facing  ingredient manufacturers are to establish scientific credibility and effectively communicate the product’s benefits to consumers of a energy drink. By doing so, manufacturers will help drive the market in currently dominant applications such as supplements and help generate demand in the functional food and beverage category.

Manufacturers must continue research to reveal new benefits of the energy drinks product if they are to maintain or grow market share, as scientific corroboration of the benefits of the energy drinks is essential to convince consumers for this product.

Other ingredient market of Energy drinks has seen leading manufacturers successfully leverage scientific credibility to develop a strong brand in a beverage market New entrants must be prepared to invest substantially in scientific trials and clinical research to establish credibility, which will play an invaluable role in developing a distinct brand identity.

Meanwhile, as the population of the Bangladesh. Ages, consumer concern about mobility and quality of life will increase, they will very conscious about the what the ingredients of the energy drinks provided by the beverage company of Bangladesh.. The body’s ability to synthesize in human tissues decreases with age, and this could have serious consequences. Sup\plements, therefore, will find greater uptake among the elderly.

Burgeoning product development in the market also opens up newer venues of growth for manufacturers. For example, new product development activities reveal new application areas for, which is likely to drive market growth. Potential application areas include the food and beverages market.

Since manufacturers of functional foods and beverages choose from a wide range of nutrients when deciding to add to their products, the taste and sensory acceptability of products is very important.

Research has shown that consumers are unwilling to compromise on taste, texture, and other properties when it comes to functional food. Technical service and formulation assistance are increasingly necessary tools in developing markets.

Bangladesh Markets is part of the Food & Beverage Ingredients Growth Partnership Service program, which also includes research in the following markets: Asian market, U.S. markets, global market, and U.S. essential oils and oleoresins market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.

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Broad Objective of the Study

•       The “Broad Objective” is to know the Beverage Products Current market situation in DhakaCity.
•       The “Specific Objective” is to –

    Obtain the general information like selling system, price margin, credit facilities, and cooler position system of beverage companies.

   Analyze the competitive situation of beverage products in the areas of promotional activities, brand preference etc.

    Identify and analyze the taste preference of consumers and their liking and disliking towards the soft drinks and energy drinks.

    Analyze the media wise advertisement ratio of beverage industries.

    Identify out the weaknesses of energy drinks, make recommendations on how they can improve their sales, and make more profit.

Chairman message:

Partex Group is committed to the prosperity of Bangladesh. Our enterprises play a positive role in alleviating poverty and generating employment an important objective of our country. Revenue growth over the years is reflected by twenty companies today that make up the group.

This has been possibly through continuous customer support and loyalty which we are proud. We endeavor to reach our products and services at the client’s doorstep through a network of sales and distribution outlets. Human resources is our key asset, who translate the group’s objectives into realistic performance. We are committed to have the best people and train them to get the best from them.

Ours is a free market economy, where private sector plays a key role in establishing an industrial base. We are striving to expand our industrial portfolio to meet the needs of a growing population. Starting from a stake in an agro based waste product unit making particle board, the group’s industry now cover food, soft drinks, steel container, wood panel, furniture’s, paper and cotton yarn. It has also stepped into the IT sector and eagerly anticipates further expansion of its product and service portfolio to make a sizable contribution to the national economy.

We believe in new ideas and technology which the road to the future. We shall travel this road hand in hand with our customers and our employees to seek and find prosperity for the Group and the country.

1.2 Mission of Partex:

THE AIM

The Sky is not the limit for us, but our expectation is within limits. Therefore, our imagination soars beyond conventional barriers. We share or destiny with our beloved motherland. We want to serve her in the greater quest for national uplift.

THE WAY

To sincere traveler, the way is never too long. We believe in “progress in diversity and service through entrepreneur”. We are, merchants and missionaries, doers and dreamers, entrepreneurs and professionals. We are futuristic with emphasis on creating thinking and dynamic action.

…and THE SPIRIT

Enterprise is our spirit. We manufacture superior import-substitute consumer and industrial products. Our cutting edge precision leads to greater public utility and hygiene, with a great care for the environment and human inhabitation. It is the very ingredient that gives our organization the integrity upon which our reputation is built and we zealously guard it everyday.

Many a thousand minds of our group contributed their gathered knowledge to keep the the wheels rolling that in turn leads us to our goal. This cumulative strength of knowledge is required, today , to find new solutions for the manifold problems of fast- changing economic cultural and ecological milieu.

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 multi million dollar diverse investment of the Partex Group today. A dedicated work force and committed board members led by our Chairman and backed by a market oriented corporate strategy has been the cornerstone of our success. Today the group has over twenty family owned private limited companies with a sizable turnover. Ours is a dynamic organization always exploring new ideas and avenues to expand and grow further.

1.3 Objective of Partex

Partex beverage industry is technically well equipped and quality control, at all stage, is of highest order. The commitment of each department has ensured a management system of the highest standards. From the initial rigorous quality taste of raw material to final inspection, the beverages are assured of the highest quality. The product is an enduring testimony to the unique excellence of the workforce.

RC’s strength lies in the fact that it is the best in taste test against the order two colas. RC takes an aggressive approach when planning its marketing strategy. Traditional marketing packages, prices, promotion and distribution systems do not bind it, and by the same token, it does not discard traditional marketing patterns if they present the means or opportunity of expressing a positive point of different.

RC management approaches each situation with an open mind instead of imposing marketing plans and programs on its franchisees. They recognize the differences as well as similarities in each market and try to do be understanding and responsive to each bottle’s needs.

Royal Crown Cola Company is proud of its products and of the bother’s that distribute them. Together they maintain the high standards that were established by the company’s pioneers. Their goal is always to provide the best possible products at the reasonable prices, promptly and courteously to customers everywhere.

1.4 The story of Partex Beverage

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.

At first, in 1995 RC Cola introduced a premium draft cola. It introduced RC Products in Bangladesh market in 1997 adding Royal Crown Lemon (first of its kind) with three other refreshing flavors of sweet & seriated RC Cola, the fresh orange flavor of Royal Orange, the tangy lime taste of Upper 10.

Partex Beverage Ltd. was incorporated in Bangladesh in 1997 as private limited company under the companies Act, 1913. It is a member of Partex Group of Industries.

Lined up on shelves at many groceries can be seen cans of energy drinks claimed to provide extra energy kick to the drinker. Major brands are popular all over the world across all age groups, especially with young people – students, researchers, athletes, executives and those others who need a boost to their performance. Sugar, caffeine, ephedrine, taurine, creatine, B-vitamins, guarana, ginseng and carnitine are some of the ingredients commonly found in many brands of energy drinks.

Although the concept of energized drink dates back to the early 1900s, it gained currency worldwide when an Austria-based company introduced an energy drink brand called Red Bull in the US in 1997. Earlier on Jolt Cola, an invigorating soft drink brand, had appeared as a precursor. Soon gigantic US beverage companies such as PepsiCo started to penetrate the market. Sports and energized drinks market grew phenomenally in 2005 and 2006 – 24% and 27% respectively – and although growth was lower, about 13%, in 2007, the world market was nearly $10 billion in sales, according to Nutrition Business Journal (NBJ), Boulder, CO. Some researchers say the growth rate of the energy drink sector has almost doubled since the late 90s and by 2010 the US domestic market is expected to grow from $4 billion to $10 billion. Sweet or savory, not all types of energy drinks however ensure quality and some even have been accused of doing damage to health mainly on account of excess of caffeine, ephedrine or ginseng in them. Moreover caution is urged against consuming too much of an energy drink or consuming it while exercising and also against mixing it with alcohol since such intakes may result in severe dehydration. Good quality energy drinks contain vitamin, mineral supplements and guarana, among others. Consumed in moderate amounts, they are claimed to have some health benefits, in addition to a temporary energy boost. According to some companies, they can even improve immunity in the human body.

1.5 Advertising appeal use by the Partex beverage

Through advertisement obviously the business wants to communicate something to the target audience, this is basically the message the company wants to send out. The message usually consists of elements that would benefit the audience, to get enough attention. The messages are formed in such a way that it is meaningful to the customers, they are believable or else it would be regarded as sham. The main decision that has to be taken here is that, how these messages will be executed.

Messages can be executed in the following ways:

1. Slice of life – This shows the use of a particular product in a regular part of life. It shows normal people in the usual setting of life. RC has not really used this way of execution, because the soft drinks are not basic necessities of life, and not always consumed in the regular course of life. This idea wouldn’t really fit the product being advertised

2. Lifestyle – This basically shows how a product fits into the lives of people who have a particular lifestyle, and how people who lead such lifestyles need the product. RC to some extent has kept this style of execution in mind while designing its advertisements, because it associated its products with fun and fun loving people. Majority of the consumers of soft drinks are the younger generation people who have or would like to have a fun filled life.

3. Fantasy – This style relates the products to some fantasy of the potential customers. This would be a very desirable scenario where the product has some part to play to make the situation so. RC has used this style in one of its TV advertisements, when the parents of a girl consents to her marriage because the man she wants to marry drinks RC, this whole scenario was being fantasized by the person who the girl wants to get married to.

4. Mood or image – This style tries to fit the product in a certain moods of people or build a certain image around the product such as beauty, love, serenity etc. In the latest RC TV advertisement this style has been very effectively used, where it shows that a girl is upset with her boyfriend, and he gets her RC drinks, and the girl forgets everything and becomes friendly with him again. This concept has been very catchy and well talked off among people.

5. Musical – People shown in the advertisements are singing about the particular product. The RC advertisement mentioned above is a good example of this style of message execution. In it, the boy and the girl are singing about RC, and the word “RC” is constantly being repeated in the song. Automatically the people remember the song, and word “RC” along with it.

6. Personality symbol – message execution of this style creates a personality that represents the product. This is the case when Fido Dido was created to represent 7up. Rc however didn’t go into this sort of thing.

7. Technical expertise – This tries to show the expertise in making the product, which would assure the customers that they are buying quality products, which is a result of this expertise.
8. Scientific evidence – To assure the potential customer for quality, the business tries to present different scientific evidences to prove that the superiority of their products

1.6 Beverage Organ gram (Management Structure) Followed by Partex

 Management Structure Analysis

The Number 1 person of Partex Beverage Is the Managing Director. After him the post of Director Marketing does come. He has two supporting executives to help him in works. One of them is Marketing Manager and another one is Controller, sales. Marketing Manager has an executive officer named Brand Officer. Controller, Sales Manager has also two executive officer to help him. They are Bottle Manager and Sales Manager. Sales Manager has his Deputy, Asst. Sales Manager. Asst. Sales Manager has a subordinate, Sales Officer and Sales Officer has a Deputy, Asst. Sales Officer. Another two people work under him. They are Sales Representative and merchandiser.

 Management Function of Partex

Partex Beverage Management System Functions in four ways. They are as follows-

Planning:

Partex Beverage has top down planning approach. The top-level Management like Managing Director and Director Marketing has authority to decide how they will go through and achieve their goal. If the Brand Officer or Sales Manager gives some idea or plan to marketing Manager or Controller Sales Manager the top level Management always encourages their ideas and gives them the opportunity to carry with their plans and ideas if the Management thinks that the idea will turn into profit. The top-level management sometimes asked the Marketing Manager or Brand Officer to make some innovative plan for the company. If they become successful to innovative something new the top level Management have a look on it and then they decide whether to go through it or not.

Organizing

Partex Beverage is a concern of Partex Group of Industries. It is franchised from American Royal Crown Company. RC’s industry is in Rajendropur, Gazipur. It has sales and corporate officer in Motijheel C/A in IspahaniBuilding. RC’s head and only office is situated in Sena Kalyan Bhaban (16^th floor).

Staffing

RC recruits staffs according to their qualifications and the nature of their job. For recruitment, the top-level Management always gives more priority on oral tests (viva-voice).

Directing & Controlling

Partex beverage all employees have to maintain the office time of Partex Group as it is a concern of Partex Beverage and the office time is from morning 9 a.m. to evening 5 p.m. Asst. Sales Officer and Sales Representative has to stay outside of the office for their working purpose. In office, the sitting arrangements are created in such ways that if the subordinates face any problem they can easily ask their superiors. Although RC has a particular office time, all the employees have so much responsibility that if they have any major work in their hand they leave the office completing the work.

1.7 How the 4Ps are worked on the Partex energy drinks Big Boss

In my project part I can analyze my problem by using marketing channel. We know there are four channels in marketing. Theses are as follows:

•        Distribution channel
•        Price channel
•        Product channel
•        Promotion channel

The retailers informed that every company follows the same distribution channel process for Big Boss distribution. The distribution channel followed by the beverage companies

1.8 Distribution System of Big boss

Selling System of Beverage Products

The total sample size of retailers informed that they received the soft drinks bottle from the Partex beverage company van. Partex Company serves Big Boss, but most of the retailers could not inform whether they received the drinks bottle from the distributors or directly through from the company people, because they were not interested about the matter.

Price Channel

Price Margin

For Big Boss energy drink, the distributors make profit of 14 TK crate and 0.58 TK bottle. The retailers make profit of 50 TK crate and 2.08TK bottle.

The distributors make profit of 15 TK crate and 0.63 TK. bottles. The retailers make the same profit like Big Boss of 50 TK crate and 2.08 TK bottle. Here Speed distributors gain 0.05 TK bottle and 1.2 TK crate more then the distributors of Big Boss.

 Shark and Tiger offer more profit advantage to distributors and retailers. The distributors make profit of 16 TK crate and 0.67 TK bottle, which is more than Big Boss by 0.04 TK bottle (0.96) and more then 0.08 TK bottle (1.92 TK crate). The retailers make profit of 54 TK crate and 2.25 TK bottle, which is bigger than Big Boss and Shark (4 TK bottle and 0.17 TK crate). The Big Boss retailers gain here the highest. For Tiger, the distributors make the highest profit of 17 TK crate. The retailers make profit of 52 TK crate and 2.16 TK bottle which is lower that the retailers of Big Boss and Tiger gain. Therefore, all the price margin of Shark is same as Tiger.

Deposit against Crates & Bottle 

For Big Boss, the retailers pay 30 TK crate (250ml) and 150 TK crate (1000ml). The deposit against bottles is 120 TK.crate. It means each bottle deposit is 5 TK. (5*24=120). The retailers have to pay 240 TK. deposit money for 250ml crate. Each crate contains 12 bottles and the calculation stands like this for per crate-12*20=240 TK. bottle for 250ml drinks of Shark. For Speed, the deposit of 250 ml and 300 ml can bottle remain the same like Shark? As the Tiger and Speed has only 250 ml bottles, their deposit also remain the same like Shark. On the other hand, big boss has no 250 ml bottles; they do produce any kind of bottle beverage. So their deposit system for 250ml is like R C cola.

Partex  beverage offers incentive for the retailers. Partex offers 250 ml bottle in 120 TK bottle and Tiger and Shark charges the same amount but they give the retailers 250 ml bottle.

Promotion Channel

Display of Crates and Bottles

The retailers informed that arranged the display of the bottles and crates themselves, according to the size of their shop. Company people never forced them to adopt any particular style of display unless the retailers were said to do so.

Signboards

36 % of the retailers informed that they had paid for the signboards themselves. Among the rest 64% signboards, 28% signboards were found of Speed, 16% Shark, 9% Tiger, 7% Big Boss and 4% of each for Speed and Tiger signboards were found. The retailers informed that the beverage companies paid for the cost of their signboards in the particular shop or confectionery. The retailers gave the signboards measurement to the beverage producers and they had then made for the retailers, as signboards is a very useful media of advertisement for the beverage companies.

Company Wise Cooler Position & Deposit System

The retailers informed that 45% of them had their own refrigerator. 22% Speed cooler was found and Tiger Pepsi, Shark R C, and Big Boss 5% cooler in retailers market.

The retailers informed the following things about the payment system of beverage cooler- Retailers had to deposit TK. 5000 for the refrigerator of Speed. They paid 2000-6000 TK. for Tiger cooler. Big Boss keeps 2000tk for the cooler. The retailers deposited TK 6000 for the refrigerator of R C. However, in some special cases R C did not take the deposit amount from the retailers, as company cooler was an important and useful advertisement for R C beverage. The retailers also informed that no company was interested to keep other companies energy drinks in their brand refrigerator. It was observed that the retailers kept all companies soft drinks together in a brand refrigerator.

Competitive Situation of Energy drinks Products

In the beverage industries, every company for trading emphasized on the retailers. Companies think retailers are key factor for moving or reaching their product to the ultimate consumers.

1.9 Reasons for Giving Priority of Retailers 

Retailers give priority to brand companies based on some factors. The factors are describe as follow-

Public Demand: The retailers give preference to public demand, because their profit mainly depends on consumer choice. Retailers sell that brand is soft drinks more, which the consumers like most. Based on public demand they keep more bottles of Speed and Tiger. The retailers keep Shark more than other product of Partex Big boss.

      Discount:

    In this case, the retailers consider all the beverage companies in the same way, as no company offers the retailers any kind of discount. All the companies take the particular amount of bottle and crate deposit money in time.

      Free Bottles:

    The retailers always give priority to free bottles that they receive from the company. When the retailers manage to sell a particular number of bottles, every company gives them some free bottles for their encouragement, so that they give more preference in selling the products of the specific brand.

      Gift Items:

    The retailers always give priority to those brands who give them gift items like opener, T-shirts, glass, wall clock etc. the company, which gives the retailers gift items were more preferred by them, and they like to keep more bottles of that brand.

Promotional Activities

It has two parts. Both parts are described bellow:

Promotional Activities for Traders

The beverage companies are offering several promotional activities. They are described as follows:

      Opener:

     Speed, Tiger Shark and Big Boss energy drinks companies offer this promotional activity to the traders for the goodwill of their company. Actually they keep this offer all year long.

      T-shirt:

      All the beverage companies offer this promotional activity to the traders. T-shirt is also a good advertising media.

      Free Bottles/ Discount of money:

    These two promotional activities have very close relationship with each other. The beverage companies always give free bottles in lieu of discount of money. Speed, Tiger Shark and Big Boss energy drinks all beverage companies maintain this promotional activities.

1.10    Promotional Activities for Consumer

The Energy drinks companies offer several types of program for the promotional activities of consumers.

      Linear Program: Speed  and Big boss offered this program long ago. It got huge public popularity. The linear program was like this-after buying a bottle of Speed and Big boss the consumer had to collect the linear and open it. There were something printed inside of the linear. There could be some figure of money, some gift item like opener, glass etc. Only the lucky person got that linear. They give the linear to the nearest retailer shop. Speed and Big boss in that linear based program. Now a day, there is no practice of this kind of program by the beverage companies.

      Glass Program: Tiger energy drinks Company introduced this program. The rule of this program was –if a consumer drink 5/6 bottles of he or she would receive a glass from Tiger energy drinks Company through the retailer. This program is frequently use for both consumers and retailers.

      Other Program: There are some other types of incentives given by different beverage companies. They are given as bellow:

•     Buy one Speed energy drinks and get a Frisbee.
•     Tiger energy drinks gives different food item with their liter bottle. They also give T shirt and pad for some times to the retailers etc.
•     Bib boss energy drinks company a five-taka discount with every one case 250 ml bottle.

Big boss energy drinks company crate deposit remains same like Speed and Shark 250 ml crate has two varieties. One of them contains 6 bottles of 300 ml and another one contains 12 bottle of 050 ml. the retailers pay deposit of only 50 tk. for the 6 bottles container and 100 TK for the 12 bottle container. For Big boss, retailers have to deposit 140 TK. less/ crate.

Credit Facilities

The retailers informed that none of the energy drinks producers offer them any credit facility. It means the energy drinks beverage companies never proposed credit facilities to them.

Cost of Damaged Bottles

65 % of the retailers informed that they did not have to pay money for the broken or damaged bottle as they had already bought the bottles from the companies. 35% of them informed they paid five TK. For each broken or burst bottles. The consumers have to pay the same amount of money for each broken or damaged bottle, when they cause the damage.

Product Channel

Sales Profile & Some Important Information about Partex Beverage Companies

Big boss:

The yearly sale of Big boss is 3.5 corer  crates as a ratio. Their most popular flavor among the energy drinks and pack size. They have 60 distributors and 55 sales people.

RC cola:

RC cola has two different operations in Bangladesh. One part controlled by Muktijuddah Kollan Trust, and another one is controlling by Tabani beverage. Government owns Muktijuddah Kollan trust and Tabani beverage is private. Muktijuddah Kollan Trust covers the Dhaka and Rajshahi region. On the other hand, Tabani covers other part of Bangladesh.

The yearly sale of Rc cola in Bangladesh is 98, 00,000 crates. They have Cola, Orange, Lemon, and Diet flavors in the beverage market. Coke has 250ml glass bottle, can and fountain glass. In family size packing, they have one liter. 1.5-liter glass bottle. They do not have two-liter bottle. They also have not P E T bottle production in Bangladesh. Coke has 90 distributors in Dhaka and Rajshahi district. Their sales force is consist of 80 peoples.

Rc lemon:

The yearly sale of the Rc lemon is 60, 00, 000 crates. As like Coke, they have Cola, Orange, Lemon, Lime, Mango, and Diet and very recently, they introduced Apple flavor in Bangladeshi beverage market. They are enriched in different pack size too. They 250ml glass, can and fountain glass. In the family size, they have 1, 1.5 and 2-liter glass and PET bottle they have also 500ml pet bottle. To cover the whole country they have more then 400 distributors. Their sales force contains 100 people.

Upper 10:

The yearly sales of Upper 102 million crates. Last year they sold 84% Cola, 7%Orange, 5%Lemon and 4%Diet. Upper 10 first come up with the can system within a reasonable price. They do not have any kind of glass bottle. They have 250ml can and 500ml pet bottle. They also have 1.5 liter and 2-liter PET bottle. Virgin has 100 distributors and number of sales force is 40.

1.11 Brand Preference     

The consumers informed the following things about the brand preference of the beverage products-

Consumers like Big boss 250 ml bottles. The same result goes in favor of other energy drinks Consumers also like the and the new can system of Virgin, which had launched by global beverage. Consumers like R C’s 300ml bottle more than their 1000ml bottle and Sun-crest’s mega bottle more than 250 ml bottle. As PRAN has no brand variety, so consumer has no choice their in case of PRAN.

 1.12 Media Wise Advertisement Ratio of Beverage Products in Dhaka City

This was the most vital part of my intern-ship work to gather the information about the advertisement budget and its ratio. However, it very sensitive information for all beverage companies, so they gave me the approximate data about the advertisement and its ratio. There are different media is used for the advertisement. Those are press, out door, T V and different events.

Some companies emphasize on TV media and some focused on the sports events. The companies most frequently use this two medium. As my topic is to study the recent market scenario of the beverage industries of the Dhaka city. Therefore, I have collected the information of the companies, which is actually Dhaka reason based.

Only the T V and newspaper advertisement ratio of Speed, Tiger Shark and Big Boss energy drinks companies had possible to gather. The T V advertisement ratio of Speed, Tiger Shark and Big Boss energy drinks companies was available for month of February and March. In the above three months Tiger spent 47, 88,50 TK, Speed spent 5, 00,0000 TK, Shark spent 18, 58,000 TK, Big boss spent near about 23, 00,000 TK for this two month. This is the highest budget of the history of Sun crest for the T V advertisement. The reason behind this was recently they had launched a new pack size in the market. This is totally a concept for the Bangladesh beverage market. The newspaper advertisement ratio of Tiger Shark and Big boss was available for the month of January to March. As I mentioned earlier that Speed energy drink Company is divided in to two-production operation in Bangladesh. The government owned part had not spent a lot for the advertisement in the recent year 2002.

On the other hand Pepsi as usually spends more than 2, 00,000 TK per month for the newspaper advertisement. Pepsi gives 19 ads in different newspaper and spent 19, 00, 00 TK. in the month of February they spent most because of Eid-ul-Azah.

Big boss spent 05, 55, 0000 TK for the month of March and February. In these two months, they spent a lot for the business promotion. In the month of February, it was winter, when beverage product becomes a bit slow. In the month of March, they tried to promote, the Cheers, which are Mango flavored. They offered one glass with every three cans of the Cheers.

Recently Big boss spent more then 15, 00,00 TK in different newspapers. In the month of March, they had launched 250 ml PET bottle. For introduction of the new product, they spent the special amount of money.

Big boss spent only 75,600 TK, their amount is very low compare to others. They spent more on T V adds. Although they spent less for the newspaper but their advertisement is not few in this media. They gave the sponsorship for the laser –light show, which was first time in Bangladesh. So Bog boss get the advertisement advantage from this laser show ads.

2.1 Marketing strategy of Big Boss

A Market analysis is a documented investigation of a Market that is used to inform a firm’s planning activities particularly around decision of: inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital equipment, promotional activities, and many other…

Mission statement of Big boss

 “To provide the best quality product to the potential customers comparatively at low price and high quality among the energy drinks run their operation in Bangladesh by using effective distribution channels “

 1. Purpose of big Boss 

As energy drinks continues with system development efforts, it is critical to establish and nurture strategic relation in the beverage market to effectively communicate with numerous existing and potential customer, as for example they are satisfied with the Big Boss.   This marketing and communications plan will serve as guidance for those efforts, providing goals and recommended actions for targeting market sector partnerships and establishing a strategic framework for Big boss external and internal consumer communications. The purpose of this plan is to set out marketing and communications objectives, define key themes and messages, and establish marketing performance requirements that can be aligned with the Partex business plan and Big boss development plan.

As a market observer they have to implements their policy of marketing policy and their current policy have been change totally for their long sustainability in the market.

The vision of Partex energy drinks Big boss is to establish and maintain a sustainable, user-driven regional relationship with the customer as they can always try to satisfy the consumer of the Big boss now they are trying to focus how they can marketed their products as they previously do.  Given that the potential consumers of the Big boss are not enough a, it is critical for this plan to define a functional marketing approach that recognizes a full range of potential consumer while identifying benefit-driven priorities for implementation.

 2.2 Research Design

In order to conduct this study two kinds of questionnaire were designed. They were-

•           Questionnaires for Customer.
•           Questionnaires for Consumers.

In this report, for gathering information, secondary sources such as the catalogues of the beverage companies have been used and primary data were collected by interviewing retailers, distributors, and consumers and by interviewing some officials of beverage companies.

Consumer Survey

The consumer group was divided into four categories. They were

•       Children
•       Teenagers
•       Youth
•       People over 35 years

All the above four categories were the consumer of coke and Pepsi simultaneously. Partex beverage was like by the three categories of consumers except children. On the other hand the first three groups of consumers except people over 35 years liked sun crest.

Objectives of consumer survey

The objectives of the consumer survey were to know the following things.

•       Most preferred brand consumed by the consumer
•       Most preferred type of flavor
•       Influential factors
•       Package size
•       Segmentation of the consumer
•       Consumer liking and Consumer disliking

2.3 Segmentation of Big Boss

Geographic

World regionAsia

CountryBangladeshClimatemodarate

Demographic

Age14-30GenderMale, FemaleFamily size1-2, 3-4, 5+Family life cycleMarried, UnmarriedIncomeTK.10,000+OccupationFrom middle class to upper classEducationSchools, Colleges, UniversitiesReligion

Major religion of Islam, Christianity and Hinduism and small percentage of othersRaceAsian

NationalityBangladeshi

Psychographic

Social classMiddle class, Upper classLifestyle

Actualizes, Fulfilled, Believers, Achievers, Strivers, Experience’s makers and Strugglers

Behavioral

OccasionsParties, , Sports and Regular OccasionsBenefitsQuality, TasteUser statusFirst time userLoyalty StatusweakReadiness StageAware, Interested

 First energy drinks in Bangladesh

The first energy drink in Bangladesh, Royal Tiger, was introduced in 2003 by Globe Soft Drinks Limited, a renowned beverage company in the country. The drink, according to the company, is being exported to different countries in the Middle East and South East Asia. However Globe did not stop there; it researched on the kind of taste consumers like most and to cater for that taste of an energy drink and at the same time to expand its export market, recently it launched a new energy drink called ‘Black Horse Energy Plus’ at a 5 star hotel in the city.

Black Horse has a completely different taste and color; the company claims this time it has used a combination of different kinds of vitamins, essential nutritional elements, blended flavors and guar Ana. Such combination not only enriches the taste of the drink but also becomes very effective in improving the stimulating effect on the body and mind, adds Globe.

In the launching ceremony, the look of the Black Horse Energy Plus was unveiled jointly by Harunur Rashid, chairman of the Globe Pharmaceutical Group of Companies, and the brand ambassador of the drink, music icon of Bangladesh, James. Endorsing the product, James, who is immensely popular in Bangladesh as well as in India, said the drink will go a long way towards fulfilling consumers. According to the Globe chairman, Black Horse will be successful in capturing a large share of both the domestic and overseas soft drink market.

On the occasion, Khairul Anam, Director Sales & Marketing, presented the company’s overall activities and its role in the beverage market, as well as introducing the second beverage plant of Globe, AST Beverage Ltd. Located in Narayanganj, the plant uses latest equipment and its method of production is such that while being processed the products receive no human touch. Thus the company ensures the genuine taste and the high quality of the drink, says the chairman.

Although there are different brands of energy drinks in Bangladesh, their market share is hardly healthy, somewhere between 10 and 20 per cent. Generally the young generation aged between 15 and 30 constitutes the main consumer market segment of energy drinks, as is the case in US. With James in the saddle, it will be interesting to see whether Globe is going to hit the Bull’s eye perfectly.

2.4 POSITIONING

Once a business has decided which segments of the market it will compete in, developed a clear picture of its target market and defined its product, the positioning strategy can be developed. Positioning is the process of creating, the image the product holds in the mind of consumers, relative to competing products. Akij and Partex both make energy drinks; although Big boss may try to compete they will still be seen as down market from Tiger and Speed energy drinks. Positioning helps customers understand what is unique about the products when compared with the competition. Tiger Co plan to further create positions that will give their products the greatest advantage in their target markets. Big boss has been positioned based on the process of positioning by direct comparison and have positioned their products

2.5 CURRENT MARKET SITUATION

Big boss promotes itself as the choice of the “teenagers”. Big boss gets this advantage by implementing such large marketing projects like “Project Globe”. This marketing plan, which Pepsi spent 2 corer taka over next five years, is to introduce the new rich deep blue coloring of its packaging. The rich deep blue coloring represents eternal youthfulness and openness. Marketing plans like this made Big boss one of the coolest brands recognized among teens in the top five and the only beverage product in this category. Another competitive advantage that Big boss has is in their product Rc cola Rc lemon, Upper 10 Rc orange. Rc cola has grown a staggering 44.1% over the last five years. Rc cola has a 6.3% market share and has recently become the #4 soft drink in Bangladesh. At this current pace Rc cola will be come the first non-cola to reach the 1billion gallon mark in one year. Big boss also has an advantage as an innovator in their field. They will be the first soft drink makers to introduce a new one-calorie soda called rc diet -One with, just approved by the FDA, Ace-K. This new sweetener is slated to be a break through for diet soda in which it limits the after taste associated with diet soda and brings a more cola taste to the product. Big boss has always been a strong # 2 against Speed and tiger and have become one of the largest energy drinks beverage companies. As far as market share Big boss stands strong. Here are just a few vitals of the market.

2.6 Target market of Big Boss

When thinking about the energy drink target market of big boss it is important to consider who is most receptive to the purported effects of the beverages. Although everyone is susceptible to the fatigue of the super-charged, over-worked lifestyle, Big boss targeted young people are especially vulnerable to persistent exhaustion and insufficient energy. This group of people, more specifically male teenagers and people in their 20s, are also most likely to believe in the veracity of the energy drinks’ claims. As a result, the majority of energy drinks are developed for and advertised to this younger generation.

Identification:

1. Demographic characteristics: Sex: male & female, Trend toward playing game is increasing as the awareness is increasing.

Age: 15-22 years, Physical active males and females

Occupation: Occupation, Vary form person to person. Most of them are students Ethnic Background: in Pakistan people are from different ethnical backgrounds but there is no discrimination of races in playing sports. People of different races play sports Family Life Cycle:

Here big boss target the young people those are always take soft drinks they also shown some unique feature of the Big boss energy drinks. Because the energy drink is still part of a new and developing industry, the energy drink target market is different than in some of the other beverage industries. Energy drinks have become a very popular, “hip” part of society, but the market at which they are aimed is not as wide and expansive, or diverse, as some might think. Early in energy drink history, when they were first being sold in the United States, athletes were the primary consumers. This shows that even initially energy drinks were directed at a select crowd, a group of people with specific interests. Although the consumer base for energy drinks has now expanded beyond that of simply athletes, the target market is still more particular than in other industries.

In addition Big boss to focusing on a specific age group, many energy drink companies are even more exclusive in their marketing efforts, gearing their products and advertising to appeal to very specialized groups, such as gamers, extreme sports enthusiasts, and the hip-hop crowd. The effects of this emphasis on such a target market can be seen in the advertising campaigns of the energy drinks. Many of the names of the beverages, such as Speed tiger and Shark appeal to these specific consumers and the marketing strategies that revolve around sponsoring public events or celebrity endorsements reflect this focus.

The design and packaging of many energy drinks also relates to the target market. For example, Energy Fizz, which is sold as a powder that is mixed with water to create the drink, is easy to store and carry, so it is convenient for people continually on the go. Although the energy drink industry currently caters to a very specific target market, as it continues to grow and develop, it is likely that marketing efforts and the focus consumer base will be more diverse and expansive.

2.7 Environmental Analysis of energy drinks market

ENVIRONMENTAL ANALYSIS:

Competitive Forces:

POLITICAL

The political stability of Bangladesh is certain therefore every investor has no tension intensively before investing his capital. But from last few years, Bangladesh industry is showing considerable growth and opportunities for new investments, due to consistent policies of the Last government. The energy drinks company shows their stability in the beverage market in Bangladesh.

The governments of Bangladesh are set some form of favorable rule for the beverage companies that are the reason why they can run their successful operation. In this industry there is not proper Trade association based on which are platform regulatory requirements could be set.

Challenge faced in this sector lie in the face of smuggled goods that penetrate into the market and present branded products with stiff competition and the price conscious consumer in Pakistan on average ends up buying the foreign smuggled product, which is cheaper and more affordable only realizing through experience if the product used is suitable.

Government taxes formulate at least 50%of the product price other than the cost of production.

Generally 40% taxes are applicable on FMCG.

Import duty of 15% is charged on importing shampoo’s raw material and it adds the 25% value to custom duty. Besides this there is not check and balance on import that means an ordinary person/company can also import on same rate of duty on which a giant company is importing.

 Manufacturers in Bangladesh are offered with so called incentives to compete with other imported goods in terms of their quality and value to customers.

Govt. of Bangladesh doesn’t offer subsidies to its industry like in China; electricity is subsidized for its industrial units.

ECONOMIC ENVIRONMENT:

GDP is targeted to grow by 8% in 2005-06, with a growth in manufacturing (10.2%) and continuing robust performance in services (15%) and agriculture (5%-6%).

Exit from the IMF Program marks an important milestone.

The overall fiscal deficit that averaged has declined to 3.2% in 2005-06.

The per capita income of Bangladesh has reached up to $847; Bangladesh market is quite unsaturated for introduction of new drinks products regarding sports drinks. With rise in per capita income and standards of living, consumption of per capita income is expected to increase.

Targeted trade deficit for the year 2006-07 is $ 9.4 bn while it had been crossed $ 2.3bn in just two months after budget speech.

Rate of inflation is increasing on fast pace, which directly affects new investments, because inflation is directly proportional to interest rates.

The literacy rate of Bangladesh is estimated at 54% which is good for us to launch a sports drink because with the increase of knowledge sports person are more conscious about their health.

Cost of production and imported raw material are very high but in the case of drink manufacturing most ingredients are less costly and locally available.

Expo canters are being introduced in some major cities to robust Bangladesh export revenue so we can also export sports drink in future and the Expo centers display will help us a lot.

In 2006-07 trade policy, Freight subsidy scheme has been modified for diversification of markets/products, which will reduce the further manufacturing (plant) cost because we are to import one part of our

SOCIAL ENVIRONMENT:

As the standard of education is rising and the awareness is increasing regarding the health.

Now a day’s people are becoming more health conscious so they prefer and demand for products which fulfill their body needs.

As the people are becoming more health conscious and like indulging their-selves in sports activities, they want to have products which maintain their body requirements like sports drink, energy drinks and food supplements.

As imported and internationally renowned brands are assumed to be prestige to use, but they are expensive product, which are not under the reach of average people so people want the same quality product at some low price.

 People like to socialize and as the activities have increased where different sports games are enjoyed this new trend is boosting the overall drink industry in Bangladesh.

TECHNOLOGICAL ENVIRONEMENT:

Technological environment in Bangladesh taking its robust because of new investments in country.

Comparing with Multinationals industry in Bangladesh, local industries are trying to use advanced technology in its operations.

Spirit sports drink is manufactured using latest technology through which we are cutting our manufacturing cost and making our products environment friendly that is allowing us to act as green marketer.

IT trend is allowing us to do our operations effectively and efficiently.

3.1 Market position        

Competition in the local energy drink market will intensify in the coming months with another two conglomerates, Pran-RFL Group and Al-Amin Group, launching energy brands.

Pran-RFL Group has already started distributing its energy drink under the brand ‘Power’ while Al amin Group is still to reveal the name of its offering that will come onto the market later this year.

These companies will compete with imported and local leading brands such as Red Bull, Big boss, Shark Royal Tiger and Speed.

“It’s a growing market that’s why we are here,” said Kamruzzaman Kamal, executive director for Marketing of Pran-RFL Group that plans to start a promotional campaign next month.

Pran and Al-amin will be the second and third entrants in a year after Partex Beverage that hit the market with its Big Boss brand early this year in an attempt to acquire a stake in the Tk 100 corer markets.

A change in consumer tastes and choices is attributed to the rise in demand for energy drinks, which are taking 10-20 percent of the overall soft drinks market of about Tk 650 crore.

“People are showing more interests in local brands now. Increased consumption is now encouraging others to come with their products,” said Md Khairul Anam, sales & marketing director of Globe Soft Drinks, the producer of leading brand Royal Tiger that has been witnessing an average 20 percent growth in sales since 2005.

“It’s good to face competition because it will encourage us to improve the quality of our products to win consumers,” said Aktartuzzaman, marketing manager of Partex Beverage Ltd.

Zahir Uddin Mahmud Khan, general manager for marketing of food processing business conglomerate Al-Amin Group, said the rapid increase in demand had prompted it to launch its new drink.
“We are hopeful to come with our energy drink within this year. But we have yet to select the name of our brand,” said the official of Al Amin Group which manufacturers soft drinks though its subsidiary Al-Amin Beverage Industries Ltd. partex also said that they will do much promotional campaign for Big boss.

3.2 Price of the energy drinks of Bangladesh

Price list of energy drinks

Tiger energy drinks

1. Can 250 ml 35 taka
2. Bottle 270 ml 20 taka

Speed energy drinks

1. Can 250 ml 25 taka

2. Bottle 250 ml 25 taka

Shark energy drinks

  1. Can 2550 ml 65 taka

  2. Bottle 250 ml 20 taka

Big Boss energy drinks

1. Bottle 250 ml 20 taka

Drink Ingredients: Beverages for Energy

Energy drink ingredients are the element primarily responsible for the current energy drink craze and growing popularity. Because there is a quite a variety of energy drinks available, the list of ingredients in these new beverages is widely variable. The ingredients in each drink have a big effect on many aspects of the beverage. The chemicals, compounds, herbs, and vitamins in each drink affect the taste, the type of energy produced, its duration, its health-related properties, etc. Some of the ingredients in energy drinks are more noticeable than others, such as the ones responsible for taste or the amount of sugar. Others are important for the health qualities they are purported to have, such as B vitamins or ginseng.

3.3 Consumption Pattern:

Among these four energy drinks I find which one is done the effective business after a long discussion with the retailers from different location of the Dhaka city I find that among these four energy drinks Brands such as Tiger, speed, Shark and Big boss

Tiger energy drinks is a products of AST beverage LTD. Shimrail, Narayangonj, Bangladesh. Tiger energy drinks is the best run energy drinks drinks in the energy drinks market in Bangladesh. Tiger energy drinks is the best selling energy drinks in the Bangladeshi energy drinks market, there sales position is very much high than others.

3.4 Ingredients of Tiger energy drinks:

Taurine, Glukono delta Lactone, Inositol (Vitamin Supp), Vitamin B3, Suger, Caffeine, Citric Acid, Sodium Citrate, Sodium Benzoate, Carbonated water, mixed fruit flabor, Tartazine yellow, DI Alpha Tocopherol.

In the second position Speed energy drinks hold this position this energy drinks produce by Akij Food & beverage Ltd. Speed is also a well run energy drinks in the energy drinks market the market have also captured by this energy drinks

Ingredients of Speed energy drinks

Carbonated water, Refined Sugar, Citric Acid, Sodium Citrate, Sodium Benzoate, Food grade color and flavor, Vitamin E and catteine.

In the third position the Shark Energy drinks are formed their position it is imported Global Beverage Company Limited, announced that Shark Energy Drink – a brand of Osotspa Co. Ltd, Thailand. It is not a well run energy drinks in our country and the market of this energy drinks are not a good.

 Ingredients of Shark energy drinks

Calories, Fat cal, Saturated fat, Cholesterol, Sodium, Sugar, Protein

 In the final position the Big boss are formed because they are not initially take marketing activities as ea new beverage when enter in the market , their marketing policy are not good when they introduce in the beverage market that’s why their position is not good in the energy drinks market in the  Bangladesh.

Ingredients of Big boss energy drinks

Sucrose, Carbonated water, Caffeine, Citric Acid, Inositol, Calcium, d-panthotenate, Pyridoxine Hydrochloride, Glucoronolactone, Benzoate, Flavouring essence & colour.

 3.5 Target Customer of energy drinks in Bangladesh

Because the energy drink is still part of a new and developing industry, the energy drink target market is different than in some of the other beverage industries. Energy drinks have become a very popular, “hip” part of society, but the market at which they are aimed is not as wide and expansive, or diverse, as some might think. Early in energy drink history, when they were first being sold in the United States, athletes were the primary consumers. This shows that even initially energy drinks were directed at a select crowd, a group of people with specific interests. Although the consumer base for energy drinks has now expanded beyond that of simply athletes, the target market is still more particular than in other industries.

 Energy Drink Target Market: Who Is Buying

When thinking about the energy drink target market, it is important to consider who is most receptive to the purported effects of the beverages. Although everyone is susceptible to the fatigue of the super-charged, over-worked lifestyle, young people are especially vulnerable to persistent exhaustion and insufficient energy. This group of people, more specifically male teenagers and people in their 20s, are also most likely to believe in the veracity of the energy drinks’ claims. As a result, the majority of energy drinks are developed for and advertised to this younger generation.

In addition to focusing on a specific age group, many energy drink companies are even more exclusive in their marketing efforts, gearing their products and advertising to appeal to very specialized groups, such as gamers, extreme sports enthusiasts, and the hip-hop crowd. The effects of this emphasis on such a target market can be seen in the advertising campaigns of the energy drinks. Many of the names of the beverages, such as Tiger or Shark appeal to these specific consumers and the marketing strategies that revolve around sponsoring public events or celebrity endorsements reflect this focus.

The design and packaging of many energy drinks also relates to the target market. For example, Energy Fizz, which is sold as a powder that is mixed with water to create the drink, is easy to store and carry, so it is convenient for people continually on the go. Although the energy drink industry currently caters to a very specific target market,

as it continues to grow and develop, it is likely that marketing efforts and the focus consumer base will be more diverse and expansive.

Recommendation & Suggestions:

Beverage sectors no more depends on only on a traditional method of Marketing.  In this competitive Beverage sector has stretched its wings wide enough to cover any kind of soft drinks by satisfying their customer. They produce not the soft drinks but also energy drinks. However, from the foreign brands, the energy drinks of today face a tough competition. The major tasks of beverage companies are to survive in this competitive environment by managing its assets and liabilities in an efficient way. To utilize the assets, the beverage companies must be more cautious; otherwise this asset will become a burden for them. To have fruitful investment of time, effort and money – these companies must do the planning and implementation perfectly. Otherwise they can never go beyond a certain limit when it comes to profitability.

I have seen that the energy drinks companies are not much different from each other in Bangladesh. They follow the same practice and procedures which are followed by their competitors. They should be more innovative in their approaches.

As far as the energy drinks are concerned, Bigboss’s marketing policy is not strategically sound. Because, unlike other competitors, they don’t give special promotional offers to retailers. They don’t give free cans to the sellers, which does not create much enthusiasm for the retailers. They should definitely look into ways whereby they can keep the retailers satisfied. Moreover, they initiate massive marketing Packaging and pricing-wise, they are sound.

On the other hand, Tiger appears to be the market leader with their aggressive marketing approach, packaging and promotional offer. Speed comes next, but they have a major drawback. The costly canning procedure they adopt actually prevents them from being competitive price-wise, in the market. Shark is also thriving, with their strategies. However, their marketing and packaging needs some more polishing.

The Energy Drinks companies should really explore the new niches and strategies that are emerging in energy drink markets. Innovations in benefit, packaging, marketing and distribution have to be adopted rapidly and flexibly. All these companies need to pick up the pace. They ought to get the facts and find out what’s next for this dynamic marketplace where a plethora of new players strive to grow and hope to make in roads against the industry leader.

Further, each and every company should for its own sake compete for maximum share of the shelf. They should carefully look into perspective on the array of beverages that compete for shelf space and consumer loyalty. In addition, Analysis must be carried out on some of the primary single-serve, non-alcoholic beverage categories in the major U.S. and European markets, to understand their strategies for success.

The energy drinks distributors in Bangladesh should follow the leaders. They ought to explore growth and market trends, plus innovations, tactics of the leaders and the efforts of smaller players to break into this arena. Enhanced with knowledge & experience from exploring marketing activities, trends and issues in this multi-faceted market made up of traditional and newly engineered products, their ride will be smoother. They should try for ENERGETIC EXPANSION. Get the Facts and find out what’s next for this dynamic marketplace where a plethora of new players strive to grow and hope to make inroads against the industry leader.

They can further try adding flavor options and expanding packaging choices that affect this beverage staple. There are also options of soy- and rice-based beverages as well as dairy-based shelf-stable. In other words, they should seek for whatever works well.

Putting the national market in perspective, they should gather comprehensive report covering the entire commercial beverage industry and including data on wholesale and retail sales as well as volume, offering key trends and statistics across the country.

Products that are “as natural as possible” have the biggest consumer appeal – in every category and in every country. Nowhere is the opportunity for an “all natural” product bigger than in the market energy drinks.

Consumers’ busy lifestyles and the plethora of demands on their time, both at work and play, are proving draining to energy levels and a source of stress. With growing numbers of consumers reporting fatigue in their activities, which should be focused and capitalized on.

The above recommendations for courses of action can benefit stakeholders-manufacturers, retailers, and distributors alike, as well as being helping the consumer by offering them the best of choices they can avail.

The marketing plan

The companies should focus on:

1. the product itself, including special features
2. Marketing budget, including the advertising and promotional plan
3. Description of the business location, including advantages and disadvantages for marketing
4. Pricing strategy
5. Market Segmentation

They should analyze the following:

1. Current Situation – Macro-environment
   • economy
   • legal
   • government
   • technology
   • ecological
   • socio-cultural
   • supply chain

2. Current Situation – Market Analysis
   • market definition
   • market size
   • market segmentation
   • industry structure and strategic groupings
   • Porter 5 forces analysis
   • competition and market share
   • competitors’ strengths and weaknesses
   • market trends

3. Current Situation – Consumer Analysis
   • nature of the buying decision
   • participants
   • demographics
   • psychographics
   • buyer motivation and expectations
   • loyalty segments

4. Current Situation – Internal
   • company resources
     • financial
     • people
     • time
     • skills

 objectives

• • mission statement and vision statement
  • corporate objectives
  • financial objective
  • marketing objectives
  • long term objectives
  • description of the basic business philosophy

5. Summary of Situation Analysis
   • external threats
   • external opportunities
   • internal strengths
   • internal weaknesses
   • Critical success factors in the industry
   • our sustainable competitive advantage

6. Marketing research
   • information requirements
   • research methodology
   • research results

7. Marketing Strategy – segmented marketing actions and market share objectives
   • by product,
   • by customer segment,
   • by geographical market,
   • by distribution channel.
8. Marketing Strategy – Price
   • pricing objectives
   • pricing method
   • discounts and allowances
   • price elasticity and customer sensitivity
   • price zoning
   • break even analysis at various prices

 9. Implementation

• personnel requirements
  • assign responsibilities
  • give incentives
  • training on selling methods
• financial requirements
• management information systems requirements
• month-by-month agenda
  • PERT or critical path analysis
• monitoring results and benchmarks
• adjustment mechanism
• contingencies

10. Financial Summary

• assumptions
• pro-forma monthly income statement
• contribution margin analysis
• breakeven analysis
• Monte Carlo method
• ISI: Internet Strategic Intelligence

11. Scenarios

• Prediction of Future Scenarios
• Plan of Action for each Scenario

Measurement of progress

The final stage of the marketing planning process is to establish targets (or standards) so that progress can be monitored. Accordingly, it is important to put both quantities and timescales into the marketing objectives (for example, to capture 20 percent by value of the market within two years) and into the corresponding strategies.

Changes in the environment mean that the forecasts often have to be changed. Along with these, the related plans may well also need to be changed. Continuous monitoring of performance, against predetermined targets, represents a most important aspect of this. However, perhaps even more important is the enforced discipline of a regular formal review. Again, as with forecasts, in many cases the best (most realistic) planning cycle will revolve around a quarterly review. Best of all, at least in terms of the quantifiable aspects of the plans, if not the wealth of backing detail, is probably a quarterly rolling review – planning one full year ahead each new quarter. Of course, this does absorb more planning resource; but it also ensures that the plans embody the latest information, and – with attention focused on them so regularly – forces both the plans and their implementation to be realistic.

Plans only have validity if they are actually used to control the progress of a company: their success lies in their implementation, not in the writing’.

Performance analysis

The most important elements of marketing performance, which are

Sales analysis

Most organizations track their sales results; or, in non-profit organizations for example, the number of clients. The more sophisticated track them in terms of ‘sales variance’ – the deviation from the target figures – which allows a more immediate picture of deviations to become evident.

`Micro-analysis’, which is a nicely pseudo-scientific term for the normal management process of investigating detailed problems, then investigates the individual elements (individual products, sales territories, customers and so on) which are failing to meet targets.

Market share analysis

Few organizations track market share though it is often an important metric. Though absolute sales might grow in an expanding market, a firm’s share of the market can decrease which bodes ill for future sales when the market starts to drop. Where such market share is tracked, there may be a number of aspects which will be followed

• overall market share
• segment share – that in the specific, targeted segment
• relative share -in relation to the market leaders
• annual fluctuation rate of market share

Expense analysis

The key ratio to watch in this area is usually the `marketing expense to sales ratio’; although this may be broken down into other elements

Financial analysis

The “bottom line” of marketing activities should at least in theory, be the net profit there are a number of separate performance figures and key ratios which need to be tracked:

• gross contribution<>net profit
• gross profit<>return on investment
• net contribution<>profit on sales

There can be considerable benefit in comparing these figures with those achieved by other organizations (especially those in the same industry); using, for instance, the figures which can be obtained (in the UK) from `The Centre for Interfere Comparison’. The most sophisticated use of this approach, however, is typically by those making use of PIMS (Profit Impact of Management Strategies), initiated by the General Electric Company and then developed by HarvardBusinessSchool, but now run by the Strategic Planning Institute.

The above performance analyses concentrate on the quantitative measures which are directly related to short-term performance. But there are a number of indirect measures, essentially tracking customer attitudes, which can also indicate the organization’s performance in terms of its longer-term marketing strengths and may accordingly be even more important indicators. Some useful measures are:

• market research – including customer panels (which are used to track changes over time)
• lost business – the orders which were lost because, for example, the stock was not available or the product did not meet the customer’s exact requirements
• Customer complaints – how many customers complain about the products or services, or the organization itself?

Use of marketing plans

A formal, written marketing plan is essential; in that it provides an unambiguous reference point for activities throughout the planning period. However, perhaps the most important benefit of these plans is the planning process itself. This typically offers a unique opportunity, a forum, for information-rich and productively focused discussions between the various managers involved. The plan, together with the associated discussions, then provides an agreed context for their subsequent management activities, even for those not described in the plan itself.

Budgets as managerial tools

The classic quantification of a marketing plan appears in the form of budgets. Because these are so rigorously quantified, they are particularly important. They should, thus, represent an unequivocal projection of actions and expected results. What is more, they should be capable of being monitored accurately; and, indeed, performance against budget is the main (regular) management review process.

The purpose of a marketing budget is, thus, to pull together all the revenues and costs involved in marketing into one comprehensive document. It is a managerial tool that balances what is needed to be spent against what can be afforded, and helps make choices about priorities. It is then used in monitoring performance in practice.

The marketing budget is usually the most powerful tool by which you think through the relationship between desired results and available means. Its starting point should be the marketing strategies and plans, which have already been formulated in the marketing plan itself; although, in practice, the two will run in parallel and will interact. At the very least, the rigorous, highly quantified, budgets may cause a rethink of some of the more optimistic elements of the plans.