Beverage Market in Bangladesh
Beverage Market in Bangladesh
Beverage Market in Bangladesh
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
1.1.b To see the consumer patterns, occupation, their taste and criteria of
buying beverage.
1
1.2 Methodology
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.
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.
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.
2
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.
3
3. Beverage: Its Conceptual Analysis
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
4
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
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.
5
Non-alcoholic Variants:
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.
A cup of coffee
Coffee-based Beverages
o Cappuccino
o Coffee
6
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
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
7
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.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
8
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.
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.
9
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.
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.
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.
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).
1810 First U.S. patent issued for the manufacture of imitation mineral waters.
1850 a manual hand & foot operated filling & corking device, first used for bottling
soda water.
11
1876 Root beer mass produced for public sale.
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.
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.
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.
12
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.
1966 The American Bottlers of Carbonated Beverages renamed The National Soft
Drink Association.
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.
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4. Overview of the Beverage Market in Bangladesh
Total 6 product(s) found in category of Beverage for all age groups in Bangladesh.
14
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.
15
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.
16
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)
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.
17
2. Sun Crest Beverage Industries Ltd
18
(Bangladesh Beverage: 2008)
5. Profile of Different Beverage Company in Bangladesh
19
Started in 1885
with Tea
Plantation
Contribute
Fastest Growing Heavily on
Employing over
Business in Economic
5000 People in
Bangladesh Efficiency in
Bangladesh
Today Bangladesh
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.
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
20
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.
21
Franchise
for
Bangladesh
from
Pepsico USA
Produce Transcom
Acquired Contribute Give support
Pepsi, group also
three highly to the to social
7up, followed
modern quality of agencies,
Mirinda, corporate
bottling life in our projects and
Slice and ideology.
plants communities programs
Soda
22
8.b Location of Transcom Beverage Ltd.
8.c
8.d
23
8.e Organogram of Transcom Beverage Ltd.
24
Transcom Group Chairman - Latifur Rahman
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).
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.
25
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.
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
26
"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.
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.
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.
27
Unit-1 Processing of agro products
Unit -2 Farming
Unit- 3 Bottling, tetra packaging of juice and mineral water.
Unit- 4 Trading
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.
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
28
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.
29
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.
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”.
30
Total Respondents
Female
38%
Male
Female
Male
62%
From the above illustration we can clearly see that 62% of total respondents were male
and the rest 38% respondents were female.
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:
31
R esp o n d en t's Ag e Gro u p
50 50
40
Percentage 30
20 23.33
11.67
10 15
0
B elow 15
15-25
y ears 26-35
y ears A bove 35
y ears
years
Age G roup
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
6.a.3 Occupation
In our questionnaire we have divide the occupation in five categories namely student,
service, housewife, business and others.
Respondent's Occupaion
1.67
Others
13.33
Business
8.33
Housewife
16.67
Service
Student
60
0 10 20 30 40 50 60 70
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
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.
80 75
70
60
Percentage
50
40
30
20 11.67
3.33 5 5
10
0
Below 5000- 10000- 15000- Above
5000 10000 15000 20000 20000
Family Income (TK)
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
Frequency Number of consumers Percentage
Weekly 35 58.33
Fortnightly 4 6.67
Monthly 0 0
Everyday 21 35
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:
35
Time of Taking Beverage
56.67
60
50
Percentage
40 30
30
20 10
3.33
10
0
Lunch Evening Dinner Breakfast
Time
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.
36
Quantity of Purchasing Beverage
0-.5 liters
13%
1-2 liters
37%
.5-1 liters
23%
2-4 liters
27%
37
Beverage Preferred by Most Consumers
46.67
50
31.67
40
Percentage
30
10 8.33
20 3.33
10
0
7up Coca-Cola RC Mojo Virgin
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.
38
6.67%
1.67%
Company Reputation 3.33%
30%
58.33%
10%
15%
Advertisement 21.67%
25%
28.33%
8.33%
16.67% Not at All Important (1)
Attractive Packaging 23.33%
23.33% 2
28.33%
3
0%
0% 4
Flavor 18.33% Very Important (5)
31.67%
50%
13.33%
10%
Color 18.33%
31.67%
26.67%
0%
0%
Taste 0%
21.67%
78.33%
39
Among the 3 forms of beverage packaging our respondents like the plastic packaging
form, paper and glass packaging also preferred by some consumers.
Form of Packaging
55
60
50
40
Percentage
25
20
30
20
10
0
Plastic Glass Paper
Packaging Form
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
Consumers Answer Number of Consumers Percentage
Yes 58 96.67
No 2 3.33
No, 3.33
Yes, 96.67
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.
41
Pricing of Beverage
55
60 36.67
Percentage
40
8.33
20 0
0
High Low Not Sure Reasonable
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.
Yes
75%
42
43 of our respondents feel that their preferred beverage should be more available in
the rural areas.
AvailabilityintheRural Areas
No
28%
Yes
72%
43
Advertisement Seen byConsumers
No
48% Yes
52%
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.
Uncertain
35% Yes
45%
No
20%
44
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:
7-Up
46.67 7-Up
Others Others
53.33
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.
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
Table 19: Number of Consumers of “Transcom Beverage Limited” According to
Gender
Consumers' Gender
Female
35.71
Male
Female
Male
64.29
From our survey we have divided the category of monthly family income of the
consumers of the “Transcom Beverage Limited” which is given below:
46
F a m ily In c o m e A c c o rd in g to G e n d e r
90
90
80
70
61.11
60
50
Percentage
40 M a le
30
22.22
F e m a le
10
5.56
20
0 0 11.11 0 0
10
0
B e lo w 5 0 0 50 0 0 0 -1 0 0 0100 0 0 0 -1 5 0 10 50 0 0 0 -2 0 0 A0 0b o ve 2 0 0 0 0
In c o m e R a n g e (T K )
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.
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Table 21: Number of Consumers of “Transcom Beverage Limited” According to the
Frequency
70 Male
80 72.22
Female
Percentage
70
60
27.78
50
20
40
30 10
0
20
0 0 Female
10
Male
0
Weekly Fortnightly Monthly Everyday
Frequency
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.
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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
50%
40%
10%
0% Female
Male
50% Female
27.78%
0% 22.22% Male
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.
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Purchasing Quantity
Male
50% Female
30%
10% 10%
38.89% Female
33%
22.22%
6%
Male
50
Packaging Female
30% Male
Paper
38.89%
10%
Glass
6%
50%
Plastic
33%
Table 25: Consumers Opinion about Price of the Products of “Transcom Beverage
Limited”
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Pricing of Transcom Products
Reasonable 46.43%
High 46.43%
Low 0%
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.
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Leaving Transcom Products for Competitors Low
Price
No
Yes 79%
21%
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.
Yes
79%
No
21%
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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.
Competitors Position
60 53.57
50
35.71
Percentage
40
30
20 10.71
0 0
10
S1
0
Coca-Cola RC Mojo Pran Virgin
Competitors Name
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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Answer Number of Consumers Percentage
Yes 10 35.71
No 6 21.43
Uncertain 12 42.86
42.86
35.71
50
40
Percentage
21.43
30
20
10
0
Yes No Uncertain
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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:
Consumer's Occupation
Others 3.57
Business 10.71
10.71
Housewife
Service 17.86
57.14
Student
0 10 20 30 40 50 60
Percentage
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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:
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3.57%
Reputation
Company 7.14%
0%
35.71%
53.57%
14.29%
Advertisement
17.86%
25%
25%
17.86%
17.86%
7.14%
Packaging
Attractive
17.86%
28.57% Not at A ll Im portant (1)
28.57% 2
3
0% 4
0%
V ery Important (5)
Flavor
21.43%
25%
53.57%
25%
14.29%
Color
21.43%
21.43%
17.86%
0%
0%
Taste
0%
32.14%
67.86%
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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.
8. References
59
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
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)
60
8.f Beverage Manufacture and Bottling, (2008), “Beverage Manufacture and
8.g Bangladesh Beverage, (1999), “Bangladesh Beverage”, March 20, 2009, Source
8.h Bangladeshi Online Bazar, (2007), “Product View”, March 25, 2009, Source
(http://www.mohajon.com,55.1 kb)
8.j New Pepsi drink, (2003), “Star Business Report”, March 25, 2009, Source
(http://www.thedailystar.net,42 kb)
61
]
9. Appendices
9.a Questionnaire
Southeast
University
School of business studies
Questionnaire to Customer
Dear sir / madam,
62
a. Coke b. Pepsi c. RC d. Virgin e. Others
e. Bubble UP f. Upper 10
63
11. As a customer, which point(s) you like most to purchase a
product?
13. Do you prefer to buy product when it offers some other things
for free?
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19. Quality of Soft Drinks is good
23. Promotional tools of the Company would inspired you to buy Soft
Drinks
Cell Number:
Signature:
65
10. b Research Proposal
Prepared For
Ishtiaque Arif,
Lecturer,
School of business studies
Southeast University.
Prepared BY
66
Batch-14th, Section- C)
Southeast University
Bangladesh
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.
67
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.
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.
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.
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---
68
o Are the Transcom products available in the rural market?
o Does the taste, color and flavor of Transcom products is good enough?
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
beverages. Most of the data required for the study will be collected from primary
source through a structured questionnaire.
Now a day’s competition increased significantly in the business area. Beverage sector
is not separate from it.
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.
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 The person has family income of more than 20000 taka would take beverage
daily.
69
o 7up would be the leading beverage brand in Bangladesh.
o Most of the consumer would select beverage on the basis of its taste, flavor a
company reputation.
o Some of the consumer would feel 250ml bottle of 7up should be introduces.
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.
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.
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.
70
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.
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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