Beverage Market in Bangladesh

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

1.1 Objectives The study undertaken with the following objectives: 1.1.a To know about the beverage market in Bangladesh 1.1.b To see the consumer patterns, occupation, their taste and criteria of buying beverage. 1.1.c To know the satisfaction level of consumers toward the beverage products. 1

1.2 Methodology 1.2.a Data Collection This work is based on both secondary and primary sources. The secondary sources of data include internet articles, some foreign and local websites on beverages. Most of the data required for the study were collected from primary source through structured questionnaire. 1.2.b Area Surveyed The study was confined to Dhaka. This area has been selected because those areas are close to Dhaka city and main center of beverage companies. Time and cost were other important considerations for such decision. 1.2.c Selection of Sample Because of the lack of sampling frame convenient method of sample were used. Because our group members were only six and all of them are from different location. So random sampling was not possible for us to use. We collect our data initially from 60 respondents. After that we find out the consumers of beverage product and continue our research by focusing on their opinion. 1.2.d Analyze of Data All the data were edited, coded and classified by our group members before making the final analysis. Average, percentage and ranking were used for analyzing the data. Different graphs, charts and table were used for presenting the data.

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2. Review of Literature Most of the studies conducted on the customer satisfaction of beverage have been reviewed in the subsequent section.

2.a Taylor Ellis & Abraham Pizam (1999) in “Customer measurement in hospitality enterprises” stated global differences in customer satisfaction, overall satisfaction individual attributes, dimensions of satisfaction & satisfaction.

satisfaction and its issues and cultural vs. satisfaction with the components of

2.b John S.A. Edwards & Hadyn Ingram (1995), volume 7; Issue 5; Page 25 – 28 in “Food, beverage and accommodation: an integrated operations approach” mentioned that accommodation has a close relation with food & beverage.

2.c Mary Bellis (2005) in “Food History - Beverages and Drinks” explained the history of Beer, Wine, Alcoholic & Non-Alcoholic beverages and Drinks.

2.d Mohajon Bangladeshi Online Bazar (2006) in “Beverage product view” identified different beverages & their quality with prices. 2.e Transcom Beverage Limited official website (2003) in “Introduction” explained that TBL manufactures the famous Pepsi range of beverages-Pepsi, 7up, Mirinda Orange, Mirinda Lemon, Slice and Soda. As a corporate citizen Pepsico believes it has a responsibility to contribute to the quality of life in our communities.

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3. Beverage: Its Conceptual Analysis 3.a Definition of Beverage A drink, or beverage, is a liquid specifically prepared for human consumption. In addition to basic needs, beverages form part of the culture of human society. 3.b Types of Beverage 3.b.1 Water Despite the fact that most beverages, including juice, soft drinks, and carbonated drinks, have some form of water in them; water itself is often not classified as a beverage, and the word beverage has been recurrently defined as not referring to water. Essential to the survival of all organisms, water has historically been an important and life-sustaining drink to humans. Excluding fat, water composes approximately 70% of the human body by mass. It is a crucial component of metabolic processes and serves as a solvent for many bodily solutes. Health authorities have historically suggested at least eight glasses, eight fluid ounces each, of water per day (64 fluid ounces, or 1.89 liters), and the British Dietetic Association recommends 1.8 litters. The United States Environmental Protection Agency has determined that the average adult actually ingests 2.0 liters per day.

Orange Juice

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Distilled (pure) water is rarely found in nature. Spring water, a natural resource from which much bottled water comes, is generally imbued with minerals. Tap water, delivered by domestic water systems in developed nations, refers to water piped to homes through a tap. All of these forms of water are commonly drunk, often purified through filtration.

A Carbonated Beverage

3.b.2 Alcoholic Beverages An alcoholic beverage is a drink containing ethanol, commonly known as alcohol, although in chemistry the definition of an alcohol includes many other compounds. Alcoholic beverages, such as wine, beer, and liquor have been part of human culture and development for 8,000 years. 3.b.3 Non-alcohol Beverages Non-alcoholic beverages are drinks that would normally contain alcohol, such as beer and wine but are made with less than .5 percent alcohol by volume. The category includes drinks that have undergone an alcohol removal process such as non-alcoholic beers and de-alcoholized wines.

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Non-alcoholic Variants: a. Low alcohol beer b. Non-alcoholic wine c. Sparkling cider 3.b.4 Soft Drinks The name "soft drink" specifies a lack of alcohol by way of contrast to the term "hard drink" and the term "drink", the latter of which is nominally neutral but often carries connotations of alcoholic content. Beverages like colas, sparkling water, iced tea, lemonade, squash, and fruit punch are among the most common types of soft drinks, while hot chocolate, hot tea, coffee, milk, tap water, alcohol, and milkshakes do not fall into this classification. Many carbonated soft drinks are optionally available in versions sweetened with sugars or with non-caloric sweeteners. 3.b.5 Hot Beverages

A cup of coffee Hot beverages, including infusions. Sometimes drunk chilled.  Coffee-based Beverages o Cappuccino o Coffee

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o Espresso o Café au lait o Frappé o Flavored coffees (mocha etc.) o Latte  Hot Chocolate  Hot Cider o Mulled cider  Glühwein  Tea-based Beverages o Flavored teas (chai etc.) o Green tea o Pearl milk tea o Tea  Herbal Teas  Roasted Grain Beverages

3.b.6 Other Some substances may either be called food or drink, or accordingly be eaten with a spoon or drunk, depending on solid ingredients in it and on how thick it is, and on preference: o Soup o Yogurt (Greenhalgh, Alison: March 2001)

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3.c Industry Overview The soda drink and bottled water industry in the US includes about 3,000 companies that manufacture and distribute beverages, with combined annual US revenue of $70 billion. Coca-Cola and PepsiCo hold more than 50 percent of the market, following strong consolidation in the past decade. Only a few other companies have annual revenue above $500 million. Most are local or regional manufacturing and bottling operations with annual revenue under $100 million. 3.d Competitive Landscape Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large manufacturers have economies of scale in production and distribution, with average annual revenue per production worker close to $1 million. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices. 3.e Products, Operations & Technology Nonalcoholic beverages include sodas (carbonated soft drinks, or CSD), bottled waters, juices, and a large variety of mixtures. Sodas account for about 60 percent of the market. The manufacture and distribution of most national soda brands, including Coke and Pepsi, is a two-tiered process. The primary manufacturer produces flavored syrup called concentrate that is sold to local bottlers who manufacture and distribute the finished product. In a typical bottling operation, the flavored syrup, corn syrup (sugar), and filtered water are mixed in appropriate proportions, carbon dioxide gas is injected, and the finished soda product is poured into bottles or cans, which are capped, labeled, and packaged.(Beverage Manufacture and Bottling:2008). 3.f History Soft drinks can trace their history back to the mineral water found in natural springs. Bathing in natural springs has long been considered a healthy thing to do; and mineral

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water was said to have curative powers. Scientists soon discovered that gas carbonium or carbon dioxide was behind the bubbles in natural mineral water. The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were made from water and lemon juice sweetened with honey. In 1676, the Companied Lemonades of Paris were granted a monopoly for the sale of lemonade soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians.

Soda Fountain Bar LOC 3.g Joseph Priestley In 1767, the first drinkable man-made glass of carbonated water was created by Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be produced in large amounts. 3.h John Mathews

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In 1810, the first United States patent was issued for the "means of mass manufacture of imitation mineral waters" to Simons and Rundell of Charleston, South Carolina. However, carbonated beverages did not achieve great popularity in America until 1832, when John Mathews invented his apparatus for the making carbonated water. John Mathews then mass-manufactured his apparatus for sale to soda fountain owners.

3.i Health Properties of Mineral Water The drinking of either natural or artificial mineral water was considered a healthy practice. The American pharmacists selling mineral waters began to add medicinal and flavorful herbs to unflavored mineral water. They used birch bark, dandelion, sarsaparilla, and fruit extracts. Some historians consider that the first flavored carbonated soft drink was that made in 1807 by Doctor Philip Syng Physick of Philadelphia. Early American pharmacies with soda fountains became a popular part of culture. The customers soon wanted to take their "health" drinks home with them and a soft drink bottling industry grew from consumer demand. 3.j The Soft Drink Bottling Industry Over 1,500 U.S. patents were filed for a cork, cap, or lid for the carbonated drink bottle tops during the early days of the bottling industry. Carbonated drink bottles are under a lot of pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by William Painter, a Baltimore machine shop operator. It was the first very successful method of keeping the bubbles in the bottle. 3.k Automatic Production of Glass Bottles In 1899, the first patent was issued for a glass-blowing machine for the automatic production of glass bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottle-blowing machine was in operation. It was first operated by the inventor, Michael Owens, an employee of Libby Glass Company. Within a few years, glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.

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3.l Hom-Paks and Vending Machines During the 1920s, the first "Hom-Paks" were invented. "Hom-Paks" are the familiar six-pack beverage carrying cartons made from cardboard. Automatic vending machines also began to appear in the 1920s. The soft drink had become an American mainstay. (Inventors: 2003). A Timeline of soft drink invention

First Beverage Shop in World 1798 The term "soda water" first coined. 1810 First U.S. patent issued for the manufacture of imitation mineral waters. 1819 The "soda fountain" patented by Samuel Fahnestock. 1835 The first bottled soda water in the U.S. 1850 a manual hand & foot operated filling & corking device, first used for bottling soda water. 1851 Ginger ale created in Ireland. 1861 The term "pop" first coined. 1874 The first ice-cream soda sold.

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1876 Root beer mass produced for public sale. 1881 The first cola-flavored beverage introduced. 1885 Charles Aderton invented "Dr Pepper" in Waco, Texas. 1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia. 1892 William Painter invented the crown bottle cap. 1898 "Pepsi-Cola" is invented by Caleb Bradham. 1899 The first patent issued for a glass blowing machine, used to produce glass bottles. 1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles. 1919 The American Bottlers of Carbonated Beverages formed. 1920 The U.S. Census reported that more than 5,000 bottlers now exist. Early 1920's The first automatic vending machines dispensed sodas into cups. 1923 Six-pack soft drink cartons called "Hom-Paks" created. 1929 The Howdy Company debuted its new drink "Bib-Label Lithiated Lemon-Lime Sodas" later called "7 up". Invented by Charles Leiper Grigg. 1934 Applied color labels first used on soft drink bottles, the coloring was baked on the face of the bottle. 1952 The first diet soft drink sold called the "No-Cal Beverage" a gingerale sold by Kirsch. 1957 The first aluminum cans used.

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1959 The first diet cola sold. 1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA. The pull-ring tab was invented by Alcoa. 1963 The Schlitz Brewing company introduced the "Pop Top" beer can to the nation in March, invented by Ermal Fraze of Kettering, Ohio. 1965 Soft drinks in cans dispensed from vending machines. 1965 The resealable top invented. 1966 The American Bottlers of Carbonated Beverages renamed The National Soft Drink Association. 1970 Plastic bottles are used for soft drinks. 1973 The PET (Polyethylene Terephthalate) bottle created. 1974 The stay-on tab invented. Introduced by the Falls City Brewing Company of Louisville, KY. 1979 Mello Yello soft drink is introduced by the Coca Cola Company as competition against Mountain Dew. 1981 The "talking" vending machine invented. (Mary Bellis: 2005)

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4. Overview of the Beverage Market in Bangladesh At present Bangladesh has a very competitive market of beverage. Bangladesh has a relatively hot weather and people tend to be thirstier. So they prefer to take soft drinks most of the time. Beverage took the market of Bangladesh in the first half of 1980. In that time two or three soft drinks were available in the market. But now lots of beverage found in the market. Some of them are popular and some are not so popular. 4.a Beverage List: All Age Groups Total 6 product(s) found in category of Beverage for all age groups in Bangladesh. Vita Fresh (Orange) [2008-04-26]

Kohinoor Chemical Company (BD) Ltd. [City: Dhaka] Vita Fresh (Orange) is a delicious drink of orange prepared from natural orange juice crystals. No artificial sweetener is added to preserve the natural taste and flavor of orange. Each sachet pack contains 25ge of dried Orange powder enough to prepare a glass of rejuvenating drink. [Net Weight]: 25ge. Premium Classic Mango/Orange Juices [2008-04-26]

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The ACME Agro vet & Beverages Ltd. [City: Dhaka] ACME Premium and Classic mango and orange juices are unique because of their taste and flavor. [Pack Size]: Available in 250ml hygienic UHT packs. Vita Fresh (Mango) [2008-04-26]

Kohinoor Chemical Company (BD) Ltd. [City: Dhaka] Delicious drink in powder form extracted from rich and fabulous garden fresh mango crystals. No artificial sweetener is added to preserve the natural taste of mango. Each sachet pack contains 25ge dried MANGO juice enough to prepare a glass of rejuvenating drink. [Net Weight]: 25ge. ACME Juices [2008-04-23]

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The ACME Agro vet & Beverages Ltd. [City: Dhaka] ACME Premium and Classic mango, orange and Mango range juices are unique because of their taste and flavor. [Pack Size]: Available in 1000ml hygienic UHT packs. ACME Premium Drinking Water [2008-04-23]

The ACME Agro vet & Beverages Ltd. [City: Dhaka] ACME premium drinking water is synonymous to purity. Arsenic Free Mineral water contains proper mineral balance, is suitable for all age groups and bottled in Environment friendly PET bottle as per guide line of BSTI. [Pack Size]: Available in 500ml, 1000ml, and 1500ml bottles.

Danish Mango Juice [2008-03-17]

PARTEX Group [City: Dhaka]

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Danish Food Products, a Partex Group concern produces highest quality fruit drinks under the brand name Danish Fruit Juices. Bangladeshi customers have welcomed the mango fruit and orange flavored drink hygienically packed in 250ml aseptic packs. Every age group can enjoy this drink, especially when served chilled in our hot summers. [Packing]: Pack/ quantity 250 ml, Quantity /Carton 36pcs, Carton 3 ply corrugated. Pack/ quantity 200 ml, Quantity /Carton 48pcs, Carton 3 ply corrugated. (BangladeshiProducts: 2008) 4.b Beverage list: Young Consumers In Bangladesh the choice of young people are always different from other age groups. They prefer to take the following 15 categories of soft drinks.

At present there are 19 beverage companies operating business in Bangladesh. They are: 1. Transcom Beverage Ltd. 17

2. Sun Crest Beverage Industries Ltd 3. Abdul Monem Limited 4. K.Rahman and Company 5. Eastern Beverage Industries Ltd. 6. Sanowara Drinks and Bev. md. Ltd. 7. Asia Business Ltd. 8. Desh Beverage Co. Ltd. 9. Northern Beverage Ltd. 10. National Beverage Industries Ltd. 11. Bridge Corporation Limited 12. Tezarat Enterprise 13. Southern Beverage Ltd. 14. K.Rahman and Company 15. Bangladesh Beverage Ind. Ltd. 16. Dhaka Beverage Industries Ltd 17. Sunny Foods and Beverage Ltd. 18. Tabani Beverage Co. Ltd. 19. K.Rahman and Company

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(Bangladesh Beverage: 2008)

5. Profile of Different Beverage Company in Bangladesh 5.a A Brief look at history Originated with tea plantation in 1885, today one of the leading and fastest growing diversified business houses in Bangladesh employing over 5000 people. Not many industrial groups in Bangladesh can claim a history of continuous business pursuits stretching back over 100 years. Initially tea and jute formed the backbone of the family business. Although these are still part of the activities, they contribute marginally to the overall group turnover.

The Journey of Transcom Beverage Ltd

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Started in 1885 with Tea Plantation

Fastest Growing Business in Bangladesh Today

Employing over 5000 People in Bangladesh

Contribute Heavily on Economic Efficiency in Bangladesh

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

5.c History of Transcom Beverage Limited On the basis of an exclusive Franchise for Bangladesh from Pepsico USA, TBL acquired three modern bottling plants at Dhaka, Chittagong and Bogra from BBIL, Dhaka; EBIL, Chittagong and NBIL, Bogra; in March 2000. TBL manufactures the famous Pepsi range of beverages-Pepsi, 7up, Mirinda Orange, Mirinda Lemon, Slice 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.

8.a Details of Transcom Beverage Bangladesh

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Franchise for Bangladesh from Pepsico USA

Acquired three modern bottling plants

Produce Pepsi, 7up, Mirinda, Slice and Soda

Contribute highly to the quality of life in our communities

Give support to social agencies, projects and programs

Transcom group also followed corporate ideology.

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8.b Location of Transcom Beverage Ltd.

Transcom Beverage Ltd. Bangladesh

Main factory located in Telirchara,Mouchak. Kaliakair,Gazipur

Also have 2 regional factories in Chittagong and Bogra

8.c 8.d 23

8.e Organogram of Transcom Beverage Ltd.

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

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Transcom Group Chairman - Latifur Rahman Director - Saifur Rahman Country Manager of Pepsi Bangladesh - Anish Roy Executive director of Transcom Beverages Limited - Gulam Quddus Chowdhury National sales manager of Transcom Beverages Limited - Khurshid Irfan

5.d Products of Transcom Beverage Limited

But the main two products of Transcom Beverage Limited are 7 up and Pepsi. Though there are three other supporting products (Mirinda, Slice and Soda) added later. (History of Transcom: 2008). 5.e The History of Pepsi Cola Caleb Bradham of New Bern, North Carolina was a pharmacist. Like many pharmacists at the turn of the century he had a soda fountain in his drugstore, where he served his customers refreshing drinks, that he created himself. His most popular beverage was something he called "Brad's drink" made of carbonated water, sugar, vanilla, rare oils, pepsin and cola nuts. "Brad's drink", created in the summer of 1893, was later renamed Pepsi Cola in 1898 after the pepsin and cola nuts used in the recipe. In 1898, Caleb Bradham wisely bought the trade name "Pep Cola" for $100 from a competitor from Newark, New Jersey that had gone broke. The new name was trademarked on June 16th, 1903.

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Bradham's neighbor, an artist designed the first Pepsi logo and ninety-seven shares of stock for Bradham's new company were issued. After seventeen years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the fluctuations of sugar prices during W.W.I, believing that sugar prices would continue to rise but they fell instead leaving Caleb Bradham with an overpriced sugar inventory. Pepsi Cola went bankrupt in 1923. In 1931, Pepsi Cola was bought by the Loft Candy Company Loft president, Charles G. Guth who reformulated the popular soft drink. Guth struggled to make a success of Pepsi and even offered to sell Pepsi to the Coca-Cola company, who refused to offer a bid? In 1940, history was made when the first advertising jingle was broadcast nationally. The jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of Pepsi and the quantity for that price. "Nickel Nickel" became a hit record and was recorded into fifty-five languages. In 1964, Diet Pepsi was introduced. (Mary Bellis: 2005)

5.f The History of 7up Charles Leiper Grigg was born in 1868 in Price's Branch, Missouri. As an adult, Grigg moved to St. Louis and started working in advertising and sales, where he was introduced to the carbonated beverage business. By 1919, Charles Leiper Grigg was working for a manufacturing company owned by Vess Jones. It was there that Grigg invented and marketed his first soft drink called "Whistle". After a dispute with management, Charles Leiper Grigg quit his job (giving away "Whistle") and started working for the Warner Jenkinson Company, developing flavoring agents for soft drinks. Grigg invented then his second soft drink called called

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"Howdy". When he eventually moved on from Warner Jenkinson Co., he took his soft drink "Howdy" with him. Together with financier Edmund G. Ridgway, Grigg went on to form the Howdy Company. So far, Grigg had invented two orange-flavored soft drinks. But his soft drinks struggled against the king of all orange pop drinks, "Orange Crush". "Orange Crush" grew to dominate the market for orange sodas. Charles Leiper Grigg decided to focus on lemon-lime flavors and and by in October of 1929 he had invented a new drink called, "Bib-Label Lithiated Lemon-Lime Sodas". The name was quickly changed to “7 Up Lithiated Lemon-Lime" and then again quickly changed to just plain 7up. 7up merged with "Dr Pepper" in 1986. (Mary Bellis: 2005)

5.g The company profile of Pran AMCL market its product under the brand name PRAN that stands for Program for Rural Advancement Nationally. The Agriculture Marketing Co. Ltd. (AMCL) was incorporated in Bangladesh on 15th May 1985 as private limited company under the companies Act 1913 and subsequently on 2nd June 1993 the co. was converted into public limited co. the shares of the co. were listed in Dhaka and Chittagong stock exchanges. The company is financed by industrial Promotion and Development Co. of Bangladesh Ltd., ANZ Grindlays Bank, Dutch Bangla Bank and by its stakeholders. Initially PRAN had jam, Jelly and Pickle in its product line. In January, 1995 production of orange juice and in June production of PRAN mango bottled juice started. PRAN now operates by having eight zones throughout the country. The zones are Dhaka Metro, Adjacent Dhaka, Comilla, Chittagong, Sylhet, Khulna, Barisal and Rajshahi. The company also has three more sub zones. The company’s business activities are farming, trading, processing of fruits, vegetables and other agro products. Unit wise activities of the company are shown below. 27

Unit-1 Processing of agro products Unit -2 Farming Unit- 3 Bottling, tetra packaging of juice and mineral water. Unit- 4 Trading

5.h The company profile of Virgin Virgin-the third most recognized brand in Britain is involved in planes, trains, finance, soft drinks, music, mobile phones, cars, wines, publishing, bridal, wear, etc. they crated over 200 companies world wide, employing over 25,000 people. Their total revenues around the world in 19999 exceeded U S $5 billion. They claim that their brand Virgin is now becoming the first global brand name of the 21st century. They said their companies are part of a family rather than a hierarchy. They are empowered to run their own affairs, yet other companies help one another, and solutions to problems come from all kinds of sources. In a sense they are community, with shared ideas, values, interests and goals. And Virgin cola is just a member of that family.

5.i The company profile of Suncrest National Beverage Industry Ltd., a unit of Sunman Group, first bought Bangladesh Suncrest. The head office of the company is in Chittagong and in 1997, a branch office in Dhaka was started. The company has its factory located at Hemayatpur, Savar. Initially the company used to produce eight flavors, but it is now continuing with five flavors. Suncrest was the company to introduce a 1.5 litter plastic bottle, which turned out to be a profitable step for them. It is called the Suncrest Mega. Its varieties are: ü Suncrest Cola ü Suncrest Orange ü Kickapoo Joy Juice

5.j The story of RC (Royal Crown)

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Royal Crown (RC) Cola made by the Royal Crown Cola Company is the third most popular Cola in America. It is tasty, refreshing soft drink. In 1905, it was at first designed merely to meet the needs of grocery customers in a limited graphical territory. A young man named Claude Hatcher who was a good chemist, developed Royal Crown Ginger Ale in 1906. Royal Crown Ginger Ale was a product of Hatcher Grocery Company of Columbus. Later around 1910, it was renamed and was called Chero-Cola rich in cherry flavor. In 1923, the firm came up with a fruit flavored drink name Melo. A year later the brand name was changed to Neli. Neli was a quick seller and by 1928 a new company was formed called Neli Inc. and Chero-Cola was then became a product of Neli Inc. in 1932 Neli Chemist Rufus Kamm concentrated with a new cola drink and his concentration result was royal crown cola. It was introduced in 1934. In 1959, the company name changed to Royal Crown Cola. Royal Crown Cola company’s technicians made what industry leaders term “ The most amazing break through soft drink technological history.” Royal Crown Cola Company was the first soft drink company to introduce a sugar free product in 1962 and it was the first company to introduce a salt/sodium free cola in 1980. The Royal Crown Cola Company made a late start on the international scene and the reason for this was simple. Its management wanted to marshal its resources and concentrate its efforts on the biggest growth market in the world at the time in United States. In early 70’s, RC Co. decided to go for global reach and at that time, a number of experienced soft drink people assembled to manage and direct the company’s international efforts. Since then, RC Cola has been able to establish a viable base in the world market and it is currently sold in 63 countries through a network of 78 franchise bottling plants.

6. Findings of the Study 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. 6.a Overall Consumer Reaction In this part of our findings we will focus on the reactions of the consumers of beverages. Having the knowledge of overall reactions of beverage consumers, we can get the actual position of our selected company’s beverage. It will help us to find out the satisfaction level of “Transcom Beverage Limited”. 6.a.1 The Number of Respondents We went to 60 respondents of beverage consumers where 37 of them are male and 23 of them are female. Table1: Number of Respondents According to Gender Gender Male female

Total respondents 37 23

Percentage 61.67 38.33

Source: Field Survey, 2009

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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.

6.a.2 Respondent’s Age Group We divide the age group in four categories that are: below 15 years, 15-25 years, 2635 years, above 35 years. Number of respondents in each age group is illustrated as follows:

Table 2: Number of Respondents According to the Age Group Age Groups Below 15 years 15-25 years 26-35 years Above 35 years

Number of Respondent’s 7 30 14 9

Percentage 11.67 50 23.33 15

Source: Field Survey, 2009

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R esp o n d en t's Ag e Gro u p 50

50

Percentage

40 30 23.33

20 10

11.67

15

0 B elow 15 15-25 y ears y ears

26-35 y ears

A bove 35 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.

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6.a.3 Occupation In our questionnaire we have divide the occupation in five categories namely student, service, housewife, business and others. Table 3: Number of Respondents According to Occupation Occupation Student Service Housewife Business Others

Number of respondent’s 36 10 5 8 1

Percentage 60 16.67 8.33 13.33 1.67

Source: Field Survey, 2009

Respondent's Occupaion 1.67

Others

13.33

Business 8.33

Housewife

16.67

Service

60

Student 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.

6.a.4 Family income

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From our research we found that only upper class people and middle class people are the main consumers of beverage. Only a small percentage of lower middle class people take beverage. Table 4: Number of Respondents According to Family Income Range of Income Below TK 5000 TK 5000-10000 TK 10000-15000 TK 15000-20000 Above 20000

Number of Respondents 2 3 3 7 45

Percentage 3.33 5 5 11.67 75

Source: Field Survey, 2009

Percentage

Respondents Family Income 80 70 60 50 40 30 20 10 0

75

3.33 Below 5000

5

5

500010000

1000015000

11.67

1500020000

Above 20000

Family Income (TK)

6.a.5 Frequency of Taking Beverage According to our survey beverage is consumed weekly by most of the consumers. But a rich number of consumers prefer to take it daily. Following table and graph will give you a clear idea about frequency of taking beverage. Table 5: Number of Consumers According to Frequency

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Frequency Weekly Fortnightly Monthly Everyday

Number of consumers 35 4 0 21

Percentage 58.33 6.67 0 35

Source: Field Survey, 2009

Frequency of Taking Beverage 35%

58.33%

Weekly

6.67%

0%

Fortnightly

Monthly

S1

Everyday

6.a.6 Time of Taking Beverage Most of our respondents take beverage in lunch time. Few of them prefer to take beverage in the evening. The overall timing of taking beverage according to our survey can be stated as follows: Table 6: Time of Taking Beverage Time Lunch Time Evening Time Dinner Time Breakfast Time

Number of Consumers 34 18 6 2

Percentage 56.67 30 10 3.33

Ranking 1 2 3 4

Source: Field Survey, 2009

35

Time of Taking Beverage 56.67

60 Percentage

50 40

30

30 10

20

3.33

10 0

Lunch

Evening

Dinner

Breakfast

Time

6.a.7 Quantity of Purchasing Beverage In our survey we found that consumers prefer to buy 1-2 liters bottle at a time. About 27% of them prefer to buy ½ -1 liter bottles at a time. Overall consumer’s priorities are presented below. Table 7: Quantity of Purchasing Beverage Quantity(liters) 1-2 ½-1 0-½ 2-4

Number of Consumers 22 16 14 8

Percentage 36.67 26.67 23.33 13.33

Ranking 1 2 3 4

Source: Field Survey, 2009

36

Quantity of Purchasing Beverage 0-.5 liters 13% 1-2 liters 37%

.5-1 liters 23%

2-4 liters 27%

6.a.8 Beverage Liked by Most Respondents As we surveyed on the 60 consumers of beverages, 28 of them like 7up, 20 of them like Coca-Cola and 13 of them like other beverage products. Consumer’s choice of beverage will be clearer by our following illustration.

Table 8: Beverage Preferred by Most Consumers Beverage Name 7up Coca-Cola RC Mojo Virgin

Number Consumers 28 19 6 5 2

of Percentage 46.67 31.67 10 8.33 3.33

Ranking 1 2 3 4 5

Source: Field Survey, 2009

37

Beverage Preferred by Most Consumers 46.67 50

31.67

Percentage

40 30 10

20

8.33

3.33

10 0 7up

Coca-Cola

RC

Mojo

Virgin

6.a.9 Criteria Affecting Buying Beverage Human mind is significantly different from each others. Reasons of buying beverage are not same for all. Someone think flavor is most important features of beverage while someone feels taste and company reputation are the main features of any beverage. We will show our findings regarding how different criteria affecting consumers to buy beverage by following table and graph. Table 9: Criteria Affecting Buying Beverage

Criteria Taste Color Flavor Attractive Packaging Advertisement Company Reputation

Very important 5 4 78.33% 21.67% 26.67% 31.67% 50% 31.67% 28.33% 23.33% 28.33% 25% 58.33% 30%

3 0% 18.33% 18.33% 23.33% 21.67% 3.33%

Not at all important 2 1 0% 0% 10% 13.33% 0% 0% 16.67% 8.33% 15% 10% 1.67% 6.67%

Source: Field Survey, 2009

38

Company Reputation

6.67% 1.67% 3.33% 10% 15%

Advertisement

8.33% Attractive Packaging

Flavor

58.33%

21.67% 25% 28.33%

16.67% 23.33% 23.33% 28.33%

0% 0%

18.33%

31.67%

Not at All Important (1) 2 3 4 Very Important (5) 50%

13.33% 10% 18.33%

Color

Taste

30%

31.67% 26.67%

0% 0% 0%

21.67%

78.33%

Table 10: Criteria Affecting Buying Beverage (Average) Criteria Taste Flavor Company Reputation Color Advertisement Attractive Packaging

Average 4.78 4.37 4.32 3.52 3.52 3.50

Ranking 1 2 3 4 4 5

Source: Field Survey, 2009

6.a.10 Form of Packaging

39

Among the 3 forms of beverage packaging our respondents like the plastic packaging form, paper and glass packaging also preferred by some consumers. Table 11: Form of Packaging Packaging Plastic Glass Paper

Number of Consumers 33 15 12

Percentage 55 25 20

Ranking 1 2 3

Source: Field Survey, 2009

Form of Packaging 55 60

Percentage

50 40

25

20

30 20 10 0

Plastic

Glass

Paper

Packaging Form

6.a.11 Satisfaction regarding Different Sizes of Bottles Among our 60 respondents only 2 of them are not satisfied with their selected company’s bottle size. One of them says 250 ml bottle should introduce and other says bigger than 2 liters bottle should be introduced. Table 12: Satisfaction regarding Different Sizes of Bottles

40

Consumers Answer Yes No

Number of Consumers 58 2

Percentage 96.67 3.33

Source: Field Survey, 2009

Satisfaction Level About Various Bottle Sizes

No, 3.33

Yes, 96.67

6.a.12 Pricing of Preferred Beverage 33 of our respondents said that their preferred beverage price is reasonable, 22 said high and 5 of them are not sure about their preferred beverage price.

Table 13: Pricing of Preferred Beverage Price Reasonable High Not Sure Low

Number of Consumers 33 22 5 0

Percentage

Ranking

55 36.67 8.33 0

1 2 3 4

Source: Field Survey, 2009

41

Pricing of Beverage 55

Percentage

60

36.67

40

0

8.33

0

20

High

Low

Not Sure

Reasonable

Price

6.a.13 Switching Brand Because of Competitors Low Price Well most of our respondents were very loyal to their preferred beverage.45 of them will not switch to other brand even if they reduce their prices. Table 14: Switching Brand Because of Competitors Low Price Consumer Answer Yes No

Number of Consumers 45 15

Percentage 75 25

Source: Field Survey, 2009

Switching Brand Because of Competitors Low Price No 25%

Yes 75%

6.a.14 Availability in the Rural Areas

42

43 of our respondents feel that their preferred beverage should be more available in the rural areas. Table 15: Availability in the Rural Areas Answer Yes No

Number of Consumers 43 17

Percentage 71.67 28.33

Source: Field Survey, 2009

AvailabilityintheRural Areas No 28%

Yes 72%

6.a.15 Advertisement Seen by Consumers 31 of our 60 respondents have seen beverage advertisement on different media. They watched advertisement on Coca-Cola, Fizz up, Uro Lemon, Mojo and 7up in TV media and newspaper.

Table 16: Advertisement Seen by Consumers Answer Yes No

Number of Consumers 31 29

Percentage 51.67 48.33

Source: Field Survey, 2009

43

Advertisement Seen byConsumers

No 48%

Yes 52%

6.a.16 Consumers Attitude towards New Beverage 27 of our 60 respondents will try if any new beverage enters into market, 12 of them will not try it while 21 of them are uncertain regarding new arrival of beverages. Table 17: Consumers Attitude towards New Beverage Answer Yes No Uncertain

Number of Consumers 27 12 21

Percentage 45 20 35

Source: Field Survey, 2009

Attitudes towards New Beverage 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:

Table 18: Number of 7up Consumer Number o 7up Consumer Number of Other products Consumer

28 32

Source: Field Survey, 2009 Consumer of "TranscomBeverage Limited"

7-Up 46.67 Others 53.33

7-Up Others

From the above table we can clearly see that 28 of our 60 respondents like 7up and 32 like other products. You can see the percentage of 7up and other products consumer from the above graph. Here our focus point is on those 28 7up consumers. 7up is the main product of Transcom Beverage. So we are focusing on the consumer satisfaction on 7up. 6.b.1 Consumers of “Transcom Beverage Limited” Gender wise Out of 28 consumers 18 and 10 people were male and female respectively. We went to 23 female consumers 10 of them chose 7-Up which is a product of “Transcom Beverage Limited” and from 37 male consumers 18 of them chose 7-Up.

45

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

Number of Consumers 18 10

Percentage 64.29 35.71

Source: Field Survey, 2009 Consumers' Gender

Female 35.71

Male Female Male 64.29

6.b.2

Consumer’s Monthly Family Income From our survey we have divided the category of monthly family income of the consumers of the “Transcom Beverage Limited” which is given below: Table 20: Number of Consumers of “Transcom Beverage Limited” According to Family Income Range of Income Below TK 5000 TK 5000-10000 TK 10000-15000 TK 15000-20000 Above 20000

Number of Respondents Male Female 0 0 2 0 1 0 4 1 11 9

Tota l 0 2 1 5 20

Percentage Male Female 0 0 11.11 0 5.56 0 22.22 10 61.11 90

Source: Field Survey, 2009

46

F a m ily In c o m e A c c o rd in g to G e n d e r

61.11 0 0

0

22.22

M a le 5.56

90 80 70 60 50 40 30 20 10 0

11.11

Percentage

90

10

F e m a le

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.

47

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

Frequency

Number of consumers Male Female 13 7 0 1 0 0 5 2

Weekly Fortnightly Monthly Everyday

Total 20 1 0 7

Percentage Male Female 72.22 70 0 10 0 0 27.78 20

Source: Field Survey, 2009

Frequency of Taking 7up According to Gender

Male

72.22

Female 27.78

Percentage

70 80 70 60 50 40 30 20 10 0

10

0

0 Weekly

Fortnightly

20

Female

0 Monthly

Male Everyday

Frequency

6.b.4 Time of Taking Beverage Well lunch and evening is the most preferred time of taking our beverage. Not a single customer takes our beverage in breakfast time. We classified our findings gender wise. So that it will be clearer to you. Table 22: Number of Consumers of “Transcom Beverage Limited” According to the Time

48

Time of Taking Beverage Breakfast Time Lunch Time Evening Time Dinner Time

Number of consumers Male Female 0 0 9 4 5 5 4 1

Total 0 14 10 5

Percentage Male Female 0 0 50 40 27.78 50 22.22 10

Source: Field Survey, 2009 Time of Taking Beverage 40%

50% 10%

0%

Female Male

50% 0% Breakfast

Lunch

27.78%

22.22%

Evening

Dinner

Male

Female

Time

6.b.5 Quantity of Taking Beverage Quantity of buying our product is always an important issue for the company. So we have tried hard to get the actual information from our consumers on that point. Here we find that female consumers prefer to buy 1-2 liters bottle and male consumers prefer to buy 1-2 and ½-1 liter bottle. Table 23: Number of Consumers of “Transcom Beverage Limited” According to the Quantity Liters 1-2 liters 2-4 liters ½ -1 liter 0- ½ liter

Number of consumers Male Female 6 5 1 1 7 3 4 1

Total 11 2 10 5

Percentage Male Female 33.33 50 5.56 10 38.89 30 22.22 10

Source: Field Survey, 2009

49

Purchasing Quantity Male Female

50% 30% 10%

10%

22.22%

6% 1-2 liters

Female

38.89%

33%

2-4 liters

Male 1/2-1 liter

0-1/2

Liters

6.b.6 Packaging of “Transcom Beverage Limited” When it comes to packaging of Transcom products our consumer gives us a mixed opinion. Male consumers are interested in plastic and glass packaging. Female consumers are interested in paper and plastic packaging. One thing for sure is that plastic packaging of Transcom products is appreciated by all of our consumers. Table 24: Number of Consumers of “Transcom Beverage Limited” According to the popular packaging Packaging Plastic Packaging Glass Packaging Paper Packaging

Number of consumers Male Female 12 6 5 1 1 3

Total 18 6 4

Percentage Male Female 67.67 60 27.78 10 5.56 30

Source: Field Survey, 2009

50

Packaging

Female Male

30% Paper

38.89%

10% Glass

6%

50% Plastic

33%

0%

10%

20%

30%

40%

50%

6.b.7 Pricing of the Products of “Transcom Beverage Limited” Among 28 of our consumers 13 says price is reasonable of Transcom products. But equal numbers of consumers feel that the price is a bit on the higher side. Table 25: Consumers Opinion about Price of the Products of “Transcom Beverage Limited”

Price Low High Reasonable Not sure

Number 0 13 13 2

Percentage 0 46.43 46.43 7.14

Source: Field Survey, 2009

51

Pricing of Transcom Products

Not sure

7.14%

Reasonable

46.43%

High

46.43%

Low

0%

6.b.8 Switching Brand Because of Competitors Low Price Does our consumer switch into other company’s product because of their lower price? While answering this question most of our consumer was loyal to us. But 21.43% of our consumer informs us that they will shift into other products if they find them more reasonable.

Table 26: Switching Brand Because of Competitors Low Price Consumer Answer Yes No

Number of Consumers 6 22

Percentage 21.43 78.57

52

Leaving Transcom Products for Competitors Low Price

No 79%

Yes 21%

6.b.9 Availability of Transcom Beverage Products in the Rural Areas Most of our consumer is satisfied with the availability of our product in the rural areas. Few of them complained to us that they don’t find our product whenever they go for vacation in the rural side. Table 27: Availability of Transcom Beverage Products in the Rural Areas Answer Yes No

Number of Consumers 22 6

Percentage 78.57 21.43

Source: Field Survey, 2009

Availability in the Rural Areas

Yes 79%

No 21%

53

6.b.10 Biggest Competitors of Transcom Beverage Products This is another important topic that we need to find out with great interest. According to our 28 respondents Coca-Cola is the biggest competitor of 7up and Pepsi. 10 of them said RC also is a great competitor of Transcom products. Table 28: Ranking of Transcom Beverage Competitors Brand Name Coca-Cola RC Mojo Pran Virgin

Number 15 10 3 0 0

Percentage 53.57 35.71 10.71 0 0

Ranking 1 2 3 4 5

Source: Field Survey, 2009

Competitors Position 60

53.57

Percentage

50

35.71

40 30

10.71

20 10 0

0

0 S1

Coca-Cola

RC

Mojo

Pran

Virgin

Competitors Name

6.b.11 Attitude of Transcom Beverage Consumers towards New Beverage 10 of our consumer says that we are innovative enough to try new things.12 of them were uncertain on that point. 6 of our consumer say that we are loyal to Transcom products and will not try any new product. . Table 29: Attitude of Transcom Beverage Consumers towards New Beverage

54

Answer Yes No Uncertain

Number of Consumers 10 6 12

Percentage 35.71 21.43 42.86

Source: Field Survey, 2009

Attitude of Consumers towards New Beverage

42.86

Percentage

50

35.71

40

21.43

30 20 10 0

Yes

No

Uncertain

55

6.b.12 Consumers of “Transcom Beverage Limited” According to the Occupation We all know beverage is a product for young generation. So not surprisingly Students are the main consumer of Transcom products. Though we went to only 60 respondents but most of them were selected randomly. The following table will clarify our findings: Table 30: Ranking of Consumers Occupation Occupation Student Service Housewife Business Others

Number 16 5 3 3 1

Percentage 57.14 17.86 10.71 10.71 3.57

Ranking 1 2 3 4 5

Source: Field Survey, 2009

Consumer's Occupation 3.57

Others

10.71

Business

10.71

Housewife

17.86

Service

57.14

Student 0

10

20

30

40

50

60

Percentage

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

56

Human mind is significantly different from each others. Reasons of buying our companies beverage are not same for all. Someone think flavor is most important features of our beverages while someone feels taste and company reputation are the main features of Transcoms beverage. We will show our findings regarding how different criteria affecting consumers to buy our companies beverage by following table and graph: Table 31: Criteria Affecting Buying Transcom Beverage

Criteria Taste Color Flavor Attractive Packaging Advertisement Company Reputation

Very important 5 4 67.86% 32.14% 17.86% 21.43% 53.57% 25% 28.57% 28.57% 17.86% 25% 53.57% 35.71%

3 0% 21.43% 21.43% 17.86% 25% 0%

Not at all important 2 1 0% 0% 14.29% 25% 0% 0% 7.14% 17.86% 17.86% 14.29% 7.14% 3.57%

Source: Field Survey, 2009

57

0% 35.71% 53.57% 14.29% 17.86%

Advertisement

Company Reputation

3.57% 7.14%

25% 25% 17.86% 17.86%

Flavor

Attractive Packaging

7.14% 17.86%

Not at A ll Im portant (1)

28.57% 28.57%

2 3 4 V ery Important (5)

0% 0% 21.43% 25% 53.57% 25%

Taste

Color

14.29% 21.43% 21.43% 17.86% 0% 0% 0% 32.14% 67.86%

Table 31: Criteria Affecting Buying Beverage (Average) Criteria Taste Flavor Company Reputation Attractive Packaging Advertisement Color

Average 4.68 4.32 4.29 3.43 3.14 2.93

Ranking 1 2 3 4 5 6

Source: Field Survey, 2009

7. Conclusion and Recommendation 58

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

Drinks, March 15, 2009, Source (http://www.ad.doubleclick.net/adi/abt.money/money_inventors,113kb)

8.d Charles

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

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

8.e Caleb

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

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

60

8.f

Beverage Manufacture and Bottling, (2008), “Beverage Manufacture and Bottling”, March 20, 2009, Source (http://www.hooverstm.com, 36.6 kb)

8.g Bangladesh

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

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

8.h Bangladeshi

Online Bazar, (2007), “Product View”, March 25, 2009, Source

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

8.i

Food and Drinks in Bangladesh, (2005), “Bangladesh Cultural Information”, March 25, 2009, Source (http://www.pigeontravels.com,14.9 kb)

8.j New Pepsi drink, (2003), “Star Business Report”, March 25, 2009, Source (http://www.thedailystar.net,42 kb)

61

]

9. Appendices 9.a Questionnaire

Southeast University School of business studies

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

Occupation: Area of residence:

1.

Age:

Below 18

18-29

30.40

41-50

Above 50 Gender: Male Female Income level: Tk 1000- 5000 Tk 5000-10000 Tk 10000-30000 Tk 30000-50000

Which brand do you prefer most?

62

a. Coke 2.

b. Pepsi

b. Orange

b.

e. Glass bottle

10.

e. Mango

d. Friend’s influence

c.

1500ml pet

d. 1000ml

f. 250 ml can

b. teen age c. youth

d. elderly people

e. over 35

b. Availability

c. Taste

Which medium of advertisement influences you most? b. TV

c. Radio

d. out door e. point of

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

9.

Diet

What your desires while you want to have cold drinks?

a. Press parches 8.

c. Advertisement

1000ml

a. Chilled 7.

d.

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

6.

c. Lemon

Which package do you like most? a. 300ml

5.

e. Others

Which thing influence you most to choose a soft drinks? a. Taste b Brand e. Availability

4.

d. Virgin

Which flavor do you like most? a. Cola

3.

c. RC

b. Channel I

c. E TV

d. A T N Bangla

e. Others

If you like to have Lemon, which one is best by taste? a. Cloudy lemon

b.

Miranda Lemon

e. Bubble UP

f. Upper 10

c. Sprite

d. 7UP

For Diet which brand you like most? a. Coke

b.

Pepsi

c.

RC

d. Virgin

e. Others.

63

11.

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

b) Selection

f) Customer

c) Quality

g) Friendliness

d) Reliability

e)

h) Cost

12. As a customer, what is your promotion behind buying a product? a) Company slogan d) Brand name 13.

b)

Advertisement

c) Package outlook

e) Others

Do you prefer to buy product when it offers some other things for free? a) Always

b) Sometimes

c) Never unless my specific brand offers

14.

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

15.

What is the color of your favorite drinks?

a) Red b) Blue c) Green h) Magentas i) Violate

16.

17.

18.

d) Pink j) Light

e) White k) others

f) Off white

g) Cyan

Soft Drinks are good for health? a)

Strongly Agree

b)

Agree

c)

Neutral

d)

Dissatisfied

e)

Strongly Dissatisfied

Can Soft Drinks refresh your mind? a)

Strongly Agree

b)

Agree

c)

Neutral

d)

Dissatisfied

e)

Strongly Dissatisfied

Soft Drinks are available in the Retail shop? a)

Strongly Agree

b)

Agree

c)

Neutral

d)

Dissatisfied

e)

Strongly Dissatisfied

64

19.

20.

21.

22.

Quality of Soft Drinks is good a)

Strongly Agree

b)

Agree

c)

Neutral

d)

Dissatisfied

e)

Strongly Dissatisfied

Every Soft Drink is Alcohol free a)

Strongly Agree

b)

Agree

c)

Neutral

d)

Dissatisfied

e)

Strongly Dissatisfied

Usually younger more like Soft Drinks a)

Strongly Agree

b)

Agree

c)

Neutral

d)

Dissatisfied

e)

Strongly Dissatisfied

Every Soft Drinks has different taste a)

Strongly Agree

b)

Agree

c)

Neutral

d)

Dissatisfied

e)

Strongly Dissatisfied

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

a) d)

Strongly Agree

b)

Agree

c)

Neutral

Dissatisfied

e)

Strongly Dissatisfied

Cell Number: Signature:

65

10. b Research Proposal

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

Prepared For Ishtiaque Arif,

Lecturer, School of business studies Southeast University.

Prepared BY • MD. RASHEL BHUYAN

ID

2006210000094

• MAHMUDA AKHTER

ID

2006110000038

(On behalf of all the students of 66

Batch-14th, Section- C)

SUBMISSION DATE: APRIL 13, 09

Southeast University Bangladesh 1. Define the Research Topic: Beverage can be of many types. But our research is on carbonated and non carbonated beverages. In our research we will find out the consumer satisfaction of Transcom Beverage products. Consumers satisfaction means to which extend consumers are satisfied on our products. By knowing this information we can set policy for our company in a more specific way. We can also produce products according to consumer’s choice. The objectives of this research are: o To know about the beverage market in Bangladesh o To see the consumer patterns, occupation, their taste and criteria of buying beverage. o To know the satisfaction level of consumers toward the products of Transcom beverage.

2. Find Out What is Known About the Topic:

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. At present Bangladesh has a very competitive market of beverage. Bangladesh has a relatively hot weather and people tend to be thirstier. So they prefer to take soft drinks most of the time. Beverage took the market of Bangladesh in the first half of 1980. In that time two or three soft drinks were available in the market. But now lots of beverage found in the market. Some of them are popular and some are not so popular. These early industrial ventures have moved over to businesses involved in high-tech manufacturing, international trading and distribution, forming strong ties with a host of blue chip multinational companies. In recent years Transcom has emerged as an increasingly significant media house in Bangladesh. Beverage has been very popular in Bangladesh since 1985. Our research is oriented with consumer satisfaction regarding different Beverages of Bangladesh. As the researcher we followed personal inspection system with the consumers and try to get their point of view by developing a questionnaire. Despite a lot of barriers we tried our level best to find out the actual reaction of consumers towards the products of “Transcom Beverage Limited” such as: 7-Up, Pepsi, Mirinda and Slice. Besides this, we hope that you will get a good preview of consumer’s reaction towards other Beverage products also. The central meaning of that topic is to improve customer satisfaction and company’s product quality through a research program where consumers express their thoughts toward our products. 3. Clarify Concepts and their Measurements: “Consumer Satisfaction of Transcom Products” has both validity and reliability. Validity is here because consumer satisfaction produces a great deal of improvement in the organization performance. After finishing our survey on that topic a clear result of improving organizational performance will take place. On the other hand reliability is here, as because the measurement leads to a consistent outcome. For clarifying concepts and their measurement following questions can be answered--o Is there any problem in Transcom products? o Does the price of Transcom products are high?

68

o Are the Transcom products available in the rural market? o Does the taste, color and flavor of Transcom products is good enough? o What packaging will be the best for Transcom products? o How Transcom products can be improved?

4. Establish as Appropriate Data Collection Method: This work will be based on both secondary and primary sources. The secondary sources of data will include internet articles, some foreign and local websites on beverages. Most of the data required for the study will be collected from primary source through a structured questionnaire.

5. Consider the Purpose, Value and Ethics of the Study: Now a day’s competition increased significantly in the business area. Beverage sector is not separate from it. The purpose of this research is to know consumers attitude towards Transcom products. The value of this research is to develop company’s product quality according to the consumers demand. By developing this research program Transcom Beverage Ltd. can know the customer feedback and opinion towards their product. By knowing this we hope they can improve product quality as well as their market share.

6. Operationalize Concepts and Design the Research Instrument: We will operate our survey by developing a questionnaire and take opinion from our respondents. The overall concepts that we are expecting to find from our survey can be stated as follows: o Students would be the main consumers of carbonate beverage. o The person has family income of more than 20000 taka would take beverage daily.

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o 7up would be the leading beverage brand in Bangladesh. o Coca-Cola would be the biggest competitor of 7up. o Most of the consumer would select beverage on the basis of its taste, flavor a company reputation. o TV media would be the most used media for beverage advertisements. o Plastic packaging would be the most convenient for the consumers. o Most of the consumer would feel that price of 7up is reasonable. o Some of the consumer would feel 250ml bottle of 7up should be introduces.

7. Select a Sample of Subjects to Study: Our target organization for this research is Transcom Beverage Ltd. We will use nonprobability sample and will go to 60 respondents. We will finish our research on the basis of those 60 respondent opinions.

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

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

10. Analyze the Data: 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.

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

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