RE-LAUNCHING OF ROYAL CROWN IN BANGLADESH

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ASSIGNMENT ON: µRE-LAUNCHING OG ROYAL CROWN COLA IN BANGLADESHµ

Prepared by: Prepared for:

Name Id Instructor: Afreen Choudhury

Md. Mohsin Ahamed 2010-2-10-247 (Lecturer)

Md. Zahid Hasan 2010-2-10-130 Department of Business Administration Md. Anamul Haque 2010-2-10-396 East West University Md. Atiqur Rahaman 2010-2-10-296

Sk. Nazmul Haque 2010-2-10-248

Md. Redoanul Islam 2010-2-10-064

Section# 7

TH DATE OF SUBMISSION: 13 APRIL 2011

DEPARTMENT OF BUSINESS ADMINISTRATION

East West University

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LETTER OF TRANSMITTAL

Dated: 13th April, 2011.

To, Afreen Choudhury Lecturer Department of Business Administration East West University

Subject: Submission of report for completion of course.

Dear Madam,

This is to inform you that we have completed the report on our current Royal Crown Cola Ltd. The report focuses on "Re-launching of RC cola." This report has been prepared for the completion of the course Marketing Management.

Within the time limit and our knowledge & capability, we paid sincere efforts to study related materials, documents, observed operations performed in Royal Crown Cola Ltd and examine relevant records for preparation of the report. But there may exist some mistakes and errors due to various limitations. Therefore, we beg your kindness in advance.

In writing this case, we have followed your instructions for report writing so as to present our views and understanding in the easiest way. However, we will be glad to clarify any discrepancy that may arise.

You are requested to accept this report and oblige me thereby.

Thank you.

Sincerely yours

Md. Mohsin Ahamed 2010-2-10-247

MD. Zahid Hasan 2010-2-10-130

Md. Anamul Hoque 2010-2-10-396

Md. Atiqur Rahaman 2010-2-10-296

Sk. Nazmul Haque 2010-2-10-248

Md. Redoanul Islam 2010-2-10-064

TABLE OF CONTENTS

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No Content Page No 1 Title I 2 Title With Submission Date ii 3 Letter of Transmital iii 4 Table of Content iv 5 Executive Summery V 6 Introduction 1 7 Mission & Vission 1 8 Concerns of Partex Group 2 9 Curent Market Position Of Partex Group 2 10 History of launshing RC Cola in Bangladesh 3 11 Brand portfolio 3 12 Competition 4 13 Comparision of Cola 5 14 Reasons for Lossing Market 6 15 Product & Customer Solution 9 16 Offered Product 9 17 Depth 10 18 Price & Customer Cost 10 19 Distribution Channel 11 20 Promotion & Communication 12 21 Strategies 12 22 Seals & Supply 13 23 Conclusion 14 24 Bibliography 15

EXECUTIVE SUMMERY

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Royal Crown (RC) Cola made by the Royal Crown Cola Company is the third most popular Cola in America. It is a tasty, refreshing . In 1905, it was 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. In 1923, the firm came up with a fruit flavored drink name Melo. A year later, the Brand name was changed to Neli. In 1932, Neli Chemist Rufus Kamm concentrated with a new Cola drink and his concentration resulted in Royal Crown Cola. It was introduced in 1934. In 1969, the company name was changed to Royal Crown Cola. In early 70¶s, RC Company decided to enter into the global market and at that time, a number of experienced soft drink people assembled to manage and direct the company¶s international efforts. At first, in 1995 RC cola introduced a premium draft Cola. It introduced RC products in Bangladesh 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 . As RC Cola is a newly franchise company it¶s officials want to know what is the current market scenario of other soft drinks in Dhaka City as it is the Capital of the country. If they can hold a large market share here, they will be able to make a huge amount of profit. As Coke and has a very strong market share in Beverage business, RC¶s officials must know what is their present market situation or how they can increase their sales and make more profit. Therefore, in preparing this report all the attention has been given to the competitive situation of the Beverage Products. RC¶s lemon is in first position in the lemon flavor. Their success in this flavor is very high. 250 ml can and 300 ml glass bottle is very popular in the market. Food graded PET is very much- excepted package for the consumers, because it gives more and no hazard of deposit.

Retailers like to sell those companies product who gives them more advantage and profit. They do not like 1000ml-glass bottle for the deposit system and some times, it could be a reason to break the relationship between retailer and consumer. According to the information of beverage companies, this business becomes very competitive. New companies are trying too hard to gain the market share. Few years¶ back Sun-Crest was a very small company, but now they become one of the vital competitors in the industry. PRAN emphasized mainly on the mango, their quality and bottle size were not so good and attractive but they offer four bottle free with every crates of 250 ml glass bottle and gained a good market share. RC is trying too hard to cover as much as possible to consumers and territory. They have almost all pack size in the market. They are pioneer in 1.5-liter pet bottle, which started giving more. R C¶s main strength is cloudy lemon and 250 ml can is very popular pack size. They can combine these two issues. They wrought to produce more Cloudy can and make it popular by huge advertisement.

INTRODUCTION:

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Partex Group is among the large Bangladesh private sector manufacturing and service based enterprises, owning and operating over tweenty units giving value for money to all customers.The group started modestly in 1959 in tobacco trading and with prudent entrepreneurship of Founder Chairman Mr. M.A. Hashem today Partex company has a stake in tobacco, food, water, soft drinks, steel container, edible oil, wooden board, furniture, cotton yarn and the IT sector. 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 the Chairman and backed by a market oriented corporate strategy has been the cornerstone of its success. Today the group has over tweenty family owned private limited companies with a sizable turnover.Partex company is a dynamic organization always exploring new ideas and avenues to expand and grow further

GROUP MANAGEMENT Mr. M. A. Hashem Chairman Vice Mr. Aziz Al-Kaiser Chairman Mrs. Sultana Hashem Director Mr. Aziz Al-Mahmood Director Mr. Aziz Al-Masud Director Mr. Showkat Aziz Russell Director Mr. Rubel Aziz Director

ISSION & VISION [M

The Aim The sky is not the limit for us but our expectations are within limits. Our imagination soars beyond conventional barriers. We share our destiny with our beloved motherland. We want to serve her better in the greater quest for national economic emancipation.

The Way

To a seasoned trekker, the path is never too arduous. We believe in progress, in diversity and service through entrepreneurship. We are both merchants and missionaries, doers and dreamers,

NiPu entrepreneurs and experts. We are futuristic with emphasis on creative thinking and dynamic activity.

The Spirit Enterprise is our life. We manufacture quality import substitute consumer and industrial product. We offer customer satisfaction keeping environmental and human factors in mind. It is this thrust that gives our organization integrity. We treasure our reputation and protect it zealously. Many minds in the Group contribute their accumulated knowledge to keep the wheels rolling that leads us to our goal. The cumulative strength of knowledge is required today, to find new solutions for the manifold problems of a fast changing economic, cultural and ecological milieu of tomorrow.

Concerns of Partex Group

AMBER COTTON MILLS LTD. AMBER PULP AND PAPER MILLS LTD. DHAKACOM LTD. (ISP) RADIO DHAKA LTD. PARTEX BEVERAGE LTD. PARTEX DENIM LTD. PARTEX FOUNDRY LTD. PARTEX PAPER MILLS LTD. PARTEX PLASTICS LTD. PARTEX ROTOR MILLS LTD. PARTEX ROTOR SPINNING MILLS LTD. PARTEX REAL ESTATE LIMITED PARTEX SUGAR MILLS LTD. PLASTIC ACCESSORIES LTD. PARTEX ENERGY LTD.

Curent Market Position Of Partex Group:

Established in 1959, Partex Group is one of the leading industrial and trading groups in Bangladesh. It consists of 17 concerns. Over 7,000 employees are working in this commercial group. In 2000-2001 it's targeting turnover is US$ 160 million and estimated growth rate 15% per year. Net worth at current market price is Tk. 7,500 Million. Over 350 distributors around the nation are engaged in distributing the products and services. There are over 45,000 outlets where products are marketed. Partex's movement is many-fold. It extends it's network in various sectors extended from milk to steel products. Let's be familiar with some of the concerns of Partex Group.

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Partex Group At A Glance

Established in 1962 17 industries and trade concerns today 2000.2001 targeted turnover US$ 160 million Estimated growth rate around 15% per annum Net worth at current market price nearly US$ 150 million Over 350 distributor around the nation Over 45,000 outlets where products are available Over 7,000 employees

History of launshing RC Cola in Bangladesh:

As we all know that Coca-Cola, , Pepsi are very famous drinks all over the world as well as Bangladesh. We can¶t find single person who doesn¶t like soft drinks. Mainly our young generation preferred to drinks. Now a days there are so many soft drinks company are coming continuously like Euro-Cola, RC Cola etc. Most of them are tastes are quite similar. Popularity of RC Cola is rapidly increasing day by day. In a small town, city even in villages RC Cola is available. RC Cola has taken a very strong place in people¶s heart within very short time. One of the reasons is its price and another reason is its taste. The first line of beverages was named µRoyal Crown¶ and the first Cola was called Chero-Cola. The commenced commercial production on 6th October, 1997, and RC was launched in Dhaka on 20th October 1997. For this report we have selected RC cola as our product. We have got reasons for what is going to be downsized. First of all we are describing the history of RC cola. Here is market and current market situstion of it.

Brand portfolio

RC Cola Diet RC Royal Crown Draft Cola - Limited U.S. availability Cherry R.C. - Available in Limited Markets RC Edge - Available in Limited Markets RC 100 ± Discontinued Caffeine Free RC - Available in Limited Markets RC Free - Available in Israel "RC Vince Villio"- Available in Akron,Ohio RCQ - Royal Crown Queen's

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Major Milestones:

st 1933: Mr. Claud Hatcher died on December 31 . 1934: Chero-Cola is reformulated and the new product is named Royal Crown Cola. 1940: The Corporation is listed on the New York Stock Exchange. 1940: The Company first uses results of blind taste tests in the advertising campaign ³Best by Taste Test´. 1946:The Company began to enhance its advertising by using entertainment celebrities like Bing Crosby, Joan Crawford, and Hedy Lamarr. 1958: Company changes name for the third time to Royal Crown Cola Company. 2000: Royal Crown Cola Co. is acquired by . 2001: Royal Crown Cola International is acquired by Cott Corporation. 2005:Royal Crown Cola Co. commemorated its 100th Anniversary.

Competition

RC Cola,Vergin cola, Pepsi and Coca-Cola had/have different brands of soda and other drinks competing with each other's company:

Most Preferred Brand Consumed by the Consumer

Out of the total sample size, 62.13% consumers like Coke, 17.26% Pepsi, 9.11% RC, 6.75% Virgin and others 4.75%. According to the result of the survey, we find that most of the consumer in the Dhaka city liked Coke and the ratio is 62.13%.

Most Prefer Type of Flavor

The consumers informed the following above the most prefer type of soft drinks: 51% consumer indicated that they liked the Cola flavor most. 18% of them like the Orange flavor, 20% liked Lemon, 4% liked Diet, 4% Mango and others 3% liked Lime. Actually, children and women liked Orange and Mango flavor most. Diet liked by health conscious people.

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Influential Factors The influential factors are taste, brand, advertisement, friend¶s influence and one of the vital factor availability. The result had shown that 67% taste, 13% brand, 10% advertisement, 7% friend¶s influence and 3% availability influence the consumers to buy or have the beverage product.

Pack Preference The consumer indicated the following things about there pack preference of soft drinks:.23% of the consumer liked the fountain drinks, 27% liked 300ml bottle, 23% liked 250ml can, 19% liked 1000 and 1500ml PET bottle and only 8% liked 1000ml glass bottle. Consumers do not like the 1000ml glass bottle because of hazard of deposit system of bottle from the consumer.

Segmentation of the Consumer We have divided the consumers according to the age. The segments are children, teen age, youth, people over 35 years. The aim was to find out which segment like most the beverage product. The result indicate that 12% children, teen agers 49%, youth25%, people over 35 years 14% consumed or have beverage product. Therefore, the result indicates that teen agers are the main segment of the beverage product.

Sources of Information The consumers reported the following about the sources of information 36% of them got the information about soft drinks from TV, 32% got the information from the print media, 18% from the Radio, 12% from the out door (billboard) and only 2% from the word of mouth communication.

Comparison of Cola

Taste Preference The varieties of Cola in beverage products are: Coca cola Pepsi RC Virgin

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