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Report on Market Potential of Energy
Drinks in Bangladesh
1.1 Origin of the Report:
The internship is an integral part of the BBA program. As a student
of BBA program in International Islamic University Chittagong
everyone has to submit a report after completion of internship
program.
As a student of BBA, major in Marketing, internship is an
academic requirement. For my internship under the supervision of
Md. Abdullah Raihan, Assistant Professor, Department of Business
Administration, International Islamic University Chittagong. My
supervisor asked me to prepare a report. That’s why I have chosen
the topic “Market Potentials of New Energy Drinks In Bangladesh”.
1.2 Objective of the Study:
The main objectives of this report are to identify and familiarize
with the organizational objectives, functions and analyzed
performance of Market potential of new energy drinks in
Bangladesh. Other objectives of this report are as follows:
a. To check the market share of different companies of energy
drink.
b. To analyze the performance of energy drink and its role in the
capital market of Bangladesh.
c. To know the consumer perception about energy drink.
d. To understand the future of energy drink in Bangladesh.
e. To review the over all performance of market potentiality of
energy drinks.
f. To focus on the overall view about energy drink.
g. To know the energy drink of Bangladesh.
h.. To understand the target consumer of energy drink in
Bangladesh.
1.4 Interested areas of the Study:
In this report at first I would like to analyze the existing energy
drink market. That is –
a) Existing producers & their brands
b) Market share
c) Major competitors
d) Market Growth
e) Consumer response
f) Target market etc.
Based on this analysis I will evaluate the potentiality of developing
a new brand in the energy drink market.
1.3. Methodology of the Study:
Methodology can be termed as underlying principles and rules of
organization that work at the background of the study. It clarifies
the problem involving the research in an ordered and systematic
way. For this study data and other information can be collected by
the following ways:
1.3.1 Sources and Methods of Collecting Primary data:
By Observation: This process is very useful for gathering primary
data. This
process is very costly, time consuming.
Through this process limited but accurate data can be collected.
Using the following primary sources I had to gain the primary data
from-
Consumers – residing in the Azimpur, Lalbag, Rayer Bazar &
Sukrabad.
Retailers- found in Nilkhet, Azimpur, Sukrabad,& Lalbag area.
1.3.2 Sources and Methods of Collecting Secondary data:
To collect relevant Secondary data I had to use the following
secondary sources:
Akij Food & Beverage Ltd. (Website)
Globe Soft Drinks Ltd. (Website)
PRAN foods Ltd (Website)
Eurydice & Eleftheria Ltd. (Website)
Newspaper
Others Sources.
2.1) Comparative analysis:
In our country the energy drink market is a promising sector and
it’s expanding day by day. That’s why a few companies working
here to gain the market. They are analyzed as follows –
2.1.1) Globe soft drinks Ltd: The market leader:
This is the pioneer company is producing energy drinks in our
country. They have captured a huge market share around 70% &
obtain handsome profit. The sale of Tiger is also increasing.
Energy drinks brand from Globe soft drinks Ltd. is “Royal Tiger”.
2.1.2) Akij Food and Beverage Ltd. (AFBL) : The market challenger
The second largest market owner of energy drink is AFBL. They
have captured almost 25% market & their sales volume is also
increasing. Brand from AFBL is “Speed”.
2.1.3) PRAN Foods Ltd. :
The market follower PRAN came in the energy drink market as the
follower. PRAN commercially launched its product in 2008. It’s
market share is approximately 1%. Brand from PRAN Foods Ltd is
“Pran Power”.
2.1.4) Osotspa Co. Ltd. :This company is working in Thailand & it’s
product is imported here by Eurydice & Eleftheria Ltd. It’s brand
name is “Shark”. It performs niche marketing & gained 4%
market share.
2.2) Brand names & their meanings: In a brief
Brand name Meanings
Royal Tiger The brand name is synonymous to Royal Bengal
Tiger, which is the symbol of power and strength.
Speed Speed means motion/force. It brings motion in
our life. Makes our life dynamic.
Shark Shark is a fast moving & energetic animals in the
sea. This drink enables us move fast & be stronger
like shark.
PRAN Power This drink generates power for us to work more
powerfully & smartly.
2.3) Market Share of each producer’s brand:
Producer & Brand Name Market Share (%)
Globe Soft Drinks Ltd. 70
Royal Tiger
Akij Food & Beverage Ltd. 25
Speed
PRAN Foods Ltd. 01
Pran Power
Osotspa Co. Ltd. 04
Shark
Figure: Market share of existing brands
2.4) Sizes, Prices & Profit Contribution:
Brand Name Size (ml) Retail Price (Tk.) Profit/Pcs.
Royal Tiger 270 20 2.17
Speed 250 20 2.23
Shark 150 40 5.32
Pran Power 250 20 2.12
2.5) Promotional activities of each brand:
Brand Name Quantity purchasedBonus (Pcs)
(Pcs)
Royal Tiger 24 2
Speed 24 2
Shark 24 2
Pran Power 24 2
2.6) Advertising activities of each producer:
Brand Name Advertising Medium Brand Ambassador
Royal Tiger TV Ayub Bacchu
(most popular rock star)
Speed TV —
Shark TV —
Pran Power — —
2.7) EXPORT BUSINESS OF ENERGY DRINKS:
“Local Energy Drinks Launch Export Push”– Our domestic
producers not only serves the local market but also expand their
business in the overseas market. Now the amount of export
business of energy drinks is small but it is increasing day by day.
The Globe Soft Drinks’ Royal Tiger, the leading brand as well as
Akij Food & Beverage’s Speed are exporting to the different
countries especially to Middle East.
Brand Name Export To
Royal Tiger Qatar, Dubai
Speed UAE, Malaysia, Bahrain.
Mentioned that export earnings from the Royal Tiger brand so far
stood at $18,500 out of total earnings of about $1 lakh. Now the
export order worth of $70,000 from Dubai and $25,000 from
Qatar are in their pocket. In the overseas market our brands are
competing with the international brand Red bull.
3.1: INTRODUCTION
Market Survey is conduced in some areas of DhakaCity – Lalbag,
Azimpur, Nilkhet, Shukrabad. It is conduced on 40 consumers &
retailers residing in the mentioned area. Survey finding are as
follows:
Retailer’s responses
No. of Respondents: 40
Area: Lalbag, Azimpur, Nilkhet, Sukrabad
3.1.1) Brands availability, sales volume & profit contribution:
i. What are the available brands of energy drink in your store?
Brand name Size Price (Tk) Brand presence/
store (%)
Tiger 270ml 20.00 100
Speed 250ml 20.00 75
Shark 150ml 40.00 25
Power 250ml 20.00 10
ii. How much sales occur of each brand in a week?
Brand name Sales/
week (pcs.)
Tiger 50
Speed 30
Shark 05
Power 03
iii. Which brand offers you the maximum profit?
Brand name Profit/Pcs. (Tk) %
Tiger 2 10
Speed 2 10
Shark 5.20 13
Power 2 10
3.1.2) Ultimate consumers, consumptions reasons and pattern
iv. Who are the ultimate consumers of these drinks?
Age Limit No. of respondents %
Young 25 60
Teens 10 25
Adults (30+) 05 15
v. Why do they consume those energy drinks?
Reasons No. of respondents %
Refreshment 28 70
Recharged 08 20
Don’t know 04 10
vi. How frequently they consume these energy drinks?
Frequency/ No. of Respondents %
week
7 pcs 08 20
4 pcs 12 30
1 pcs 20 50
3.1.3) Brands demand and acceptance of price:
vii. Which brand is more demandable to consumers?
Brand Name No. of Respondents %
Tiger 28 70
Speed 08 20
Shark 0 7.5
Power 0 2.5
viii. Is this price affordable to consumers (Tk. 20 =
250ml/270ml)?
Response No. of respondent %
Affordable 26 65
Unaffordable 12 30
No Comment 02 05
3.1.4) Retailers Suggestions :
ix. Is there any seasonal/occasional affect of consuming energy
drink?
Responses No. of respondent %
Yes 36 90
No 3 7.5
Don’t know 1 2.5
x. Do you have any suggestions to improve drink market?
Suggestions No. of respondent %
Advertising 24 60
Free Sampling 10 20
Price reduction 4 10
Bonus offer 2 5
3.2. Consumer Responses:
Participants: 40 consumers
(Age limit: 15-40 years)
3.2.1) First Consumption experience & brand preference:
i. Which brands of energy drink you have taken at first?
Brand Name No. of respondents %
Tiger 28 70
Shark 4 10
Speed 7 17.5
Power 1 0.25
ii. Which brand you like most?
Brand Name No. of respondents %
Tiger 26 65
Speed 10 25
Shark 3 7.5
Power 1 0.25
3.2.2: Consumer responses regarding product, price & promotion
iii. Which one you prefer for choosing the brand?
Characteristics No. of respondents %
Product Quality 34 85
Price 4 10
Packaging 2 5
iv. Do you think the price is reasonable charged against your
favourite brand?
Comments No. of respondents %
Reasonable 26 65
Unreasonable 12 30
No Comments 2 5
v. Are you satisfied with promotional activities of your favourite
brand?
Comments No. of respondents %
Satisfied 8 20
Dissatisfied 26 65
No Comment 6 1
vi. What types of flavor you like best?
Flavour No. of respondents %
Lemonade 22 55
Orange 12 30
Chemical 4 10
Don’t know 2 05
3.2.3: Media Preference for Advertisement
vii. In which TV channel you see the Advertising of energy drink?
TV Channel No. of respondents %
Channel i 16 40
NTV 10 25
ATN 08 20
BTV 02 05
Bangla vision 04 10
viii. Which media you prefer for the first time advertisement of
energy drink?
Media No. of respondents %
TV 16 40
Radio 08 20
Newspaper 12 30
Magazine 02 05
Others 02 05
3.2.4: Consumers Suggestions:
x. Do you have any suggestion to improve your favoutite brand?
Suggestion No. of respondents %
Increase product quality 20 50
Advertisement 10 25
Price reduction 06 15
Attractive Packaging 04 10
4.1 : Findings :
I worked hard for analyzing the current scenario of energy drinks
market. From my careful analysis I got some key points. These are
–
Major Findings:
In our country energy drinks market is very potential. This
market is expanding day by day.
Now this market is worth of Tk. 100 crore (approx) and it is
increasing continuously.
Target consumers of energy drinks are young, Teenagers and
Middle aged adult.
Products taste, flavor & packaging play a vital role. All these
attract the consumers greatly & motivate them to consume the
brand.
Energy drinks brand positioning isn’t decent in the minds of the
consumers. They think it’s not a normal soft drinks, it’s something
like drug.
The price of the existing brands – Royal Tiger, PRAN Power &
Speed (Plastic Bottle) is Tk. 20 except shark (Tk. 40). More than
Tk. 20 is not acceptable.
The existing energy drinks brands – Royal Tiger, Pran Power,
Speed contain the same quantity- 250ml. And the imported brand
Shark contains 150ml. The quantity – 250ml is mostly acceptable.
Distribution activities of each company are – at least once in a
week per market.
Promotional activities are not so aggressive and attractive of any
brand. Only TV advertisement is available, Brand attachment with
media super start causes great impact on sales. e.g. Ayub Bacchu
+ Royal Tiger, makes the brand more desirable & prestigious.
Mentioned that, in the energy drinks market Globe Soft Drinks
Ltd. (Royal Tiger) is the market leader, Akij Food & Beverage Ltd.
(Speed) is the challenger, Ostospa Co. Ltd., Thailand (Shark) is the
niche marketer & PRAN Foods Ltd (Pran Power) is the follower.
Their market share is respectively – 70%, 25%, 4% & 01%.
So, the overall scenario of the present energy market indicates
that there is a unquenchable thirst of the consumer which is not
met by the current producers
4.2 Recommendations:
By conducting the research carefully the following
recommendations are provided to the producer –
New brand’s positioning should be unique in the minds of the
consumers.
Brand name, brand elements should be selected carefully to
touch the consumer’s minds.
Product quality, taste, flavor, color should be different from the
existing brands.
Packaging can be done in two ways:
1. Plastic bottle – 250ml (Normal Packaging)
2. Steel Cane – 300ml (Prestigious Packaging)
The existing price (Tk. 20 = 250ml/270ml) provided the
producers is satisfactory but we have to add more values with the
new brand for Tk. 20.
The price for the plastic bottle (250ml) can be Tk. 20 and for
steel cane (300ml) Tk. 30.
Product distribution can be conducted through existing dealers
all over the country.
Every market should be touched once in a week and the market
where demand is high should be touched frequently.
Attractive advertising campaign should be conducted especially
through TV, Newspaper, FM radio & billboards.
Another promotional activities like free sampling in university,
campus or on Pahela Baishak in DhkaCity including others big
cities.
Brand attachment with superstars like James, The Rock Stars or
Bangladesh cricket team will bear unique brand positioning.
4.3: Conclusion:
To conclude in this report, I want to say that it’s a great
experience to work here for three months and I have learned lot
from here. Through out this experience I want to add some thing it
has a great opportunity to gain market leadership. It is important
to remember that though RC is enjoying monopoly in the middle
and lower income group segment, it will face difficulty as people
are gradually becoming health conscious. They have all kind of
work force but they just need to implement those workforces in
proper way.
My main focus on this report is evaluate the potentiality of
developing a new brand in the energy drink market. From the
analysis it found that the position of RC is good. There is low risk
involvement. The study is the second time for me to get the
opportunity for conducting such and elaborate study in a different
field. Hence I do not know how far I am successful in writing this
report.
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