Executive summary

Kevian Kenya Limited is one of the prominent and leading beverage anufacturing

companies in Kenya. The official inauguration of the company was in the beginning of

2004. From the beginning Kevian Kenya Limited launched its major product for the

market, AFIA drink which is a leading drink in the Kenyan Urban Areas. Kevian Kenya

Limited has successfully come up with a variety of its products like carbonated fruit

drinks, bottled drinking water, a variety of fruit drinks as well as tropical mixes. The main

marketing policy of the company is they use to undertake huge advertisement and

promotional activities to create brand awareness and product positioning among the

mindset of the target customers. Not only that, Kevian Kenya Limited started to change

the concept of advertisement of fruit drinks too by using new creative and concepts. And

they were successful in terms of market share and positioning in the competitive soft

drinks market of Bangladesh.

By using the reputation and market demand, Kevian Kenya Limited lunched a new

category of fruit drinks that is natural pure fruit juice under the Brand name of “Pick ‘N

Peel” in January 2011. They targeted the hot start-of-year months to launch the new

product into the market. In that time they also undertook a huge advertisement and

promotional campaign following their previous concept Afia and Mount Kenya Drinking

Water. They used different Medias to draw the attention of the consumers like:

Press Advertisement (News paper & Magazines).

Television Commercial (National & Cable TVs). Radio Advertisement

(BD Radio & Private radio stations).

Outdoor Advertisement (Billboards, Pestering, Neon sign etc).

Mobile Campaign (Road shows).

Moving Advertisements (Advertisements on vehicles).

Public Relations (Sponsoring & arranging Spot game shows).

Sales Promotion (Sampling, Gift and scratch card offer) etc.

Basically they used all the elements of marketing communication tools to create

awareness and position their Brand. And they were successful enough to draw the

positive attention of the customers. At present they are offering three flavor of Pick ‘N

Peel like Mango, Orange and Pineapple. In all of the cases they offer in two sizes of pack

that are 250ml (at Kshs. 45) and 1000ml (at Kshs. 160) paper packages.

In our report we worked to identify the “Impact of promotional activities to create

product appeal among the target customers”. So to accomplish our objectives we have

undertaken a field survey on the customers and as well as the retailer of Frutika to know

the impact of Advertisement and promotional activities to create fascination towards the

product stimulates the secondary sales. That is why we made two different questionnaires

for the Customers and the Retailers to collect information from the respondents. At the

same time we also undertaken as exploratory research on the other existing juice brands

available in the country to make a comparison and contrast between Frutika and them.

After collecting all the related information and data analysis, we found that the

advertisement and promotional activities were very much successful to create brand

awareness and product appeal among the target customers. But it is found that comparing

with the other existing brand, price of Frutika is premium about 25-30% more. So the

customers are not satisfied about this issue. More over there is another vital point to be

noted that Frutika if offering only three flavor (mango, orange and grape) and providing

only in two pack sizes (250ml and 1000ml plastic bottle rater any other sizes and foil

pack). That is why customers are not feeling convenient while purchasing Frutika fruit

juices.

Situation Analysis

Market Analysis:

The market analysis investigates both the internal and external business

environment. It is vital that Akij Beverage Limited carefully monitor both the internal and

external aspects regarding it’s business as both the internal and external environment and

their respective influences will be decisive traits in relation to Coke’s success and

survival in the fruit drink industry.

Internal Business Environment

The internal business environment and its influence is that which is to some extent

within the business’s control. The main attributes in the internal environment include

efficiency in the production process, through management skills and effective

communication channels. To effectively control and monitor the internal business

environment, Akij Beverage Limited must conduct continual appraisals of the business’s

operations and readily act upon any factors, which cause inefficiencies in any phase of the

production and consumer process.

External Business Environment

The External business environment and its influences are usually powerful forces

that can affect a whole industry and, in fact, a whole economy. Changes in the external

environment will create opportunities or threats in the market place Akij Beverage

Limited must be aware off. Fluctuations in the economy, changing customer attitudes and

values, and demographic patterns heavily influence the success of Akij Beverage Limited

products on the market and the reception they receive from the consumers.

SWOT Analysis:

SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a

technique much used in much general management as well as marketing scenarios.

SWOT consists of examining the current activities of the organization- its Strengths and

Weakness- and then using this and external research data to set out the Opportunities and

Threats that exist.

Strengths:

Akij Beverage Limited has been a complex part of world culture for a very long time. The

product's image is loaded with over-romanticizing, and this is an image many people have

taken deeply to heart. The Akij Beverage Limited image is displayed on T-shirts, hats,

and collectible memorabilia. This extremely recognizable branding is one of Akij

Beverage Limited greatest strengths. "Enjoyed more than 685 thousand times a day

around Bangladesh Akij Beverage Limited stands as a simple, yet powerful symbol of

quality and enjoyment". Additionally, Akij Beverage Limited bottling system is one of

their greatest strengths. It allows them to conduct business on a global scale while at the

same time maintain a local approach. The bottling companies are locally owned and

operated by independent business people who are authorized to sell products of the Akij

Beverage Limited Company. Because Coke does not have outright ownership of its

bottling network, its main source of revenue is the sale of concentrate to its bottlers.

Weaknesses:

Weaknesses for any business need to be both minimized and monitored in order to

effectively achieve productivity and efficiency in their business’s activities, Akij

Beverage Limited is no exception. Although domestic business as well as many

international markets are thriving, Akij Beverage Limited has recently reported some

"declines in unit case volumes in Indonesia and Thailand due to reduced consumer

purchasing power." According to an article in Fortune magazine, "In Japan, unit case

sales fell 3% in the second quarter [of 2010]...scary because while Japan generates around

5% of worldwide volume, it contributes three times as much to profits. Latin America,

Southeast Asia, and Japan account for about 35% of Coke's volume and none of these

markets are performing to expectation.

Coca-Cola on the other side has effects on the teeth which is an issue for health care. It

also has got sugar by which continuous drinking of Coca-Cola may cause health

problems. Being addicted to Coca-Cola also is a health problem, because drinking of

Coca-Cola daily has an effect on your body after few years.

Opportunities:

Brand recognition is the significant factor affecting Coke's competitive position. Coca-

Cola's brand name is known well throughout 94% of the world today. The primary

concern over the past few years has been to get this name brand to be even better known.

Packaging changes have also affected sales and industry positioning, but in general, the

public has tended not to be affected by new products. Coca-Cola's bottling system also

allows the company to take advantage of infinite growth opportunities around the world.

This strategy gives Coke the opportunity to service a large geographic, diverse area.

Threats:

Currently, the threat of new viable competitors in the carbonated fruit drink industry is

not very substantial. The threat of substitutes, however, is a very real threat. The fruit

drink industry is very strong, but consumers are not necessarily married to it. Possible

substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee,

juices, milk, and hot chocolate. Even though Coca-Cola and Pepsi control nearly 40% of

the entire beverage market, the changing health-consciousness of the market could have a

serious affect. Of course, both Coke and Pepsi have already diversified into these

markets, allowing them to have further significant market shares and offset any losses

incurred due to fluctuations in the market. Consumer buying power also represents a key

threat in the industry. The rivalry between Pepsi and Coke has produce a very slow

moving industry in which management must continuously respond to the changing

attitudes and demands of their consumers or face losing market share to the competition.

Furthermore, consumers can easily switch to other beverages with little cost or

consequence.

Product Life cycle:

When referring to each and every product or service ever placed before the consumer i.e.

in the long term all the existing products and services are dead. For e.g.:- Replacement of

Ford Cortina ( a highly successful car) by Ford Sierra, the replacement of sierra by the

Ford Mondeo and the replacement of the old Mondeo by the new Mondeo in 2001. So

every product is born, grows, matures and dies. So in the commercial market place

products and services are created, launched and withdrawn in a process known as Product

Life Cycle.

To be able to market its product properly, a business must be aware of the product life

cycle of its product. The standard product life cycle tends to have five phases:

Development, Introduction, Growth, Maturity and Decline. Coca-Cola is currently in the

maturity stage, which is evidenced primarily by the fact that they have a large, loyal

group of stable customers.

Furthermore, cost management, product differentiation and marketing have become more

important as growth slows and market share becomes the key determinant of profitability.

In foreign markets the product life cycle is in more of a growth trend Coke's advantage in

this area is mainly due to its establishment strong branding and it is now able to use this

area of stable profitability to subsidize the domestic Cola Wars.

Marketing Objectives

The objective is the starting point of the marketing plan. Objectives should seek to answer

the question 'where do we want to go?’ The purposes of objectives include:

-> To enable a company to control its marketing plan.

-> To help to motivate individuals and teams to reach a common goal.

-> To provide an agreed, consistent focus for all functions of an organization.

All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and

Timed.

Specific - Be precise about what you are going to achieve

Measurable - Quantify you objectives

Achievable - Are you attempting too much?

Realistic - Do you have the resource to make the objective happen (men, money,

machines, materials, and minutes)?

Timed - State when you will achieve the objective (within a month? By February 2012)

1. Market Share Objectives:

To gain 60% of the market for fruit drinks industry by September 2012.

2. Profitability Objectives:

To achieve a 20% return on capital employed by August 2012

3. Promotional Objectives

To increase awareness of the product on the market.

4. Objectives for Survival

To survive the current market war between competitors.

5. Objectives for Growth

To increase the size of the worldwide Coca Cola enterprise by 10%.

Selecting Target Market

Once the situation analysis is complete, and the marketing objectives determined,

attention turns to the target market. The fruit drink market is very large, and the business

cannot be “all things to all people”, so it must choose which market segments have the

greatest potential. The target market is the group of customers on whom the business

focuses attention. The target market is where Coca Cola focuses its marketing efforts as

it feels this is where it will be most productive and successful. The target market for Coca

cola is very wide as it satisfy’s the needs for many different consumers, ranging from the

healthy diet consciousness through Diet Coke to the average human through its best

selling drink regular Coke. Most Coke products satisfy all age groups as it is proven that

most people of different age groups consume the Coca Cola product. This market is

relatively large and is open to both genders, thereby allowing greater product

diversification.

There are four broad ways which Coca Cola can segment its market:

-> Mass marketing

-> Concentrated marketing

-> Differentiated marketing

-> Niche marketing

The most apparent method used by Coca Cola is with no doubt the differentiated

marketing method as Coke satisfies’s a range of different markets. Diet coke satisfy’s the

weight consciousness, regular coke, sprite, fanta the average human, coffee, iced tea etc.

Each group of beverages satisfies a particular group of people but majority the average

human.

Developing the Marketing Mix

The marketing mix is probably the most crucial stage of the marketing planning process.

This is where the marketing tactics for each product are determined. The marketing mix

refers to the combination of the four factors (price, promotion, product, and place) that

make up the core of a business’s marketing strategy. In this step of the marketing

planning process, marketing mix must be designed to satisfy the wants of target markets

and achieve the marketing objectives. The most successful businesses have continually

monitored and changed their marketing mix due to respective internal and external factors

and have monitored the external business environment in order to maximize their

marketing mix components.

Product:

Many Products are physical objects that you can own and take home. But the

word product means much more than just physical goods. In marketing, product also

refers to services, such as holidays or a movie, where you enjoy the benefits without

owning the result of the service.

Businesses must think about products on three different levels, which are the core

product, the actual product and the augmented product. The core product is what the

consumer is actually buying and the benefits it gives. Coca Cola customers are buying a

wide range of fruit drinks. The actual product is the parts and features, which deliver the

core product. Consumers will buy the coke product because of the high standards and

high quality of the Coca Cola products. The augmented product is the extra consumer

benefits and services provided to customers. Since fruit drinks are a consumable good, the

augmented level is very limited. But Coca Cola do offer a help line and complaint phone

service for customers who are not satisfied with the product or wish to give feedback on

the products.

Positioning

Once a business has decided which segments of the market it will compete in,

developed a clear picture of its target market and defined its product, the positioning

strategy can be developed. Positioning is the process of creating, the image the product

holds in the mind of consumers, relative to competing products. Coca Cola and Franklins

both make fruit drinks, although Franklins may try to compete they will still be seen as

down market from Coca Cola. Positioning helps customers understand what is unique

about the products when compared with the competition. Coca Cola plan to further create

positions that will give their products the greatest advantage in their target markets. Coca

Cola has been positioned based on the process of positioning by direct comparison and

have positioned their products to benefit their target market. Most people create an image

of a product by comparing it to another product, thus evident through the famous battles

between Coca-Cola and Pepsi products.

Branding

It is often hard to say exactly why we buy one company’s product over another.

Companies such as Nike and Adidas spend large amounts of money trying to win

consumers away from their competitors who make products that are very similar. The

popularity of the brand is often the deciding factor. Over the time Coca Cola has spent

millions of dollars developing and promoting their brand name, resulting in world wide

recognition. 'Coca-Cola' is the most recognized trademark, recognized by 94% of the

world's population and is the most widely recognized word after "OK". Coca Cola’s red

and white colours and special writing are all examples of world-wide trademarks.

There are a number of branding strategies: Generic brand strategy, Individual

brand strategy, Family brand strategy, Manufacturer’s brand strategy, Private brand

strategy and Hybrid brand strategy. Coca Cola utilizes the Individual brand strategy as

Coca Cola’s major products are given their own brand names e.g Fanta, Sprite, Coca Cola

etc although they maybe presented as different lines they operate under the name of Coca

Cola.

Packaging

Packaging, which is not as highly perceived by businesses, is still an important

factor to examine in the marketing mix. Packaging protects the product during

transportation, while it sits in the shelf and during use by consumers; it promotes the

product and distinguishes it from the competition. Packaging can allow the business to

design promotional schemes, which can generate extra revenue and advertisements. Coca-

Cola has benefited from packaging the product with incentives and endorsements on the

labeling as a promotional strategy to increase its volume of sales and revenue.

Price:

Price is a very important part of the marketing mix as it can effect both the supply

and demand for Coca Cola. The price of Coca Cola’s products is one of the most

important factors in a customer’s decision to buy. Price will often be the difference that

will push a customer to buy our product over another, as long as most things are fairly

similar. For this reason pricing policies need to be designed with consumers and external

influences in mind, in order to effectively achieve a stable balance between sales and

covering the production costs.

Price strategies are important to Coca Cola because the price determines the

amount of sales and profit per unit sold. Businesses have to set a price that is attractive to

their customers and provides the business with a good level of profit. Long before a sale

was ever made Coca Cola had developed a forecast of consumer demand at different

prices which inevitably determined whether or not the product came on the market, as

well as the allocation of adequate money and resources to produce promote and distribute

he product.

Pricing Strategies and Tactics

The pricing Strategy a business will use will have to focus on achieving the

marketing plan’s objectives and support the positioning of the product, and take external

factors such as economic conditions and competitors in to account. There are 5 strategies

available to business: Market skimming pricing, Penetration pricing, Loss leaders, Price

Points and Discounts. Over the years Coca Cola has used Penetration Pricing as a way of

grabbing a foothold in the market and won a market share. It’s product penetrated the

marketplace. Once customer loyalty is established as seen with Coca Cola it is then able

to slowly raise the price of its product. There has been a fierce pricing rivalry between

Coca Cola and Pepsi products as each company competes for customer recognition and

satisfaction. Till now it appears as if Coke has come up on top, although in order to gain

long term profits Coke had to sacrifice short term profits where in some cases it either

went under of just broke even, but as seen it has been all for the best.

Pricing Methods

Good pricing decisions are based on an analysis of what target customers expect

to pay, and what they perceive as good quality. If the price is too high, consumers will

spend their money on other goods and services. If the price is too low, the firm can lose

money and go out of business.

Pricing methods include: Cost based Pricing, Market based pricing and

Competition based Pricing. Over the years Coca has lost ground here in it’s pricing but

has regained its strength as it employed the Competition-based pricing method which

allowed it to compete more effectively in the fruit drink market. Leader follower pricing

occurs when there is one quite powerful business in the market which is thought to be the

market leader. The business will tend to have a larger market share, loyal customers and

some technological edge, thus the case currently with Coke; it was first the follower but

through effective management has now become the leader of the market and is working

towards achieving the marketing objectives of the Coca Cola. Survival in the market

place, own 60 % of market share by 2012, increase further awareness of product and a

return on 20% on capital employed for August 2012.

Promotion:

In today’s competitive environment, having the right product at the right place in

the right place at the right time may still not be enough to be successful. Effective

communication with the target market is essential for the success of the product and

business. Promotion is the p of the marketing mix designed to inform the marketplace

about who you are, how good your product is and where they can buy it. Promotion is

also used to persuade the customers to try a new product, or buy more of an old product.

The promotional mix is the combination of personal selling, advertising, sales

promotion and public relations that it uses in its marketing plan. Above the line

promotions refers to mainstream media: Advertising through common media such as

television, radio, transport, and billboards and in newspapers and magazines. Because

most of the target is most likely to be exposed to media such as television, radio and

magazines, Coca Cola has used this as the main form of promotion for extensive range of

products. Although advertising is usually very expensive, it is the most effective way of

reminding and exposing potential customers to Coca Cola Products. Coca Cola also

utilizes below the line promotions such as contests, coupons, and free samples. These

activities are an effective way of getting people to give your product a go.

Place and Distribution:

The place P of the marketing mix refers to distribution of the product- the ways of

getting the product to the market. The distribution of products starts with the producer

and ends with the consumer.

One key element of the “Place/Distribution” aspect is the respective distribution channels

that Coca Cola has elected to transport and sells its product.

Selecting the most appropriate distribution channel is important, as the choice will

determine sales levels and costs. The choice for a distribution channel for any business

depends on numerous factors, these include:

• How far away the customers are;

• The type of product being transported;

• The lead times required; and;

• The costs associated with transport;

There are four types of distribution strategies that Coca Cola could have chosen from,

these are: intensive, selective, exclusive and direct distribution. It is apparent from the

popularity of the Coca Cola’s product on the market that the business in the past used the

method of intensive distribution as the product is available at every possible outlet. From

supermarkets to service stations to your local corner shop, anywhere you go you will find

the Coca Cola products.

Physical Distribution Issues

Coca Cola needs to consider a number of issues relating to the physical

distribution of its fruit drink products. The five components of physical distribution are,

order processing, warehousing, materials handling, inventory control, transportation.

Coca Cola must further try to balance their operations with more efficient distribution

channels.

Order Processing

Coca Cola cannot delay their processes for consumer deliveries (i.e. delivery to

selling centers), as this is inefficient business functioning and is portrays a flawed image

of the product and overall business.

Warehousing and inventory control- warehousing of Coca Cola products is necessary.

Inventory control is another important aspect of distribution as inventory makes up a

large percentage of businesses assets. Choosing the correct and desired inventory measure

that Jackson’s sees as most effective is vital. Jackson’s must remember though that there

are factors involved with inventory control that can hinder the products sales and

customer perceptions (hazards, distribution from storage facilities, etc…).

Materials handling

This deals with physically handling the product and using machinery such as

forklifts and conveyor belts. When holding products, then Coca Cola has benefited from

purchasing or renting respective machinery.

Transportation

Transporting Coca Cola products is the one most important components of

physical distribution. Electing either to transport the sports drink by air, rail, road or water

depends on the market (i.e. global, or domestic?) and depends on the associated costs.

The most beneficial transportation method for Coca Cola would be ROAD if the product

were moved around from storage to the cost centers.

Implementing, Monitoring and Controlling

Financial Forecasts

Financial forecasts are predictions of future events relating strictly to expected costs and

revenue costs for future years. There are five major marketing expenditures, which

include research costs, product development costs, product costs, promotion costs and

distribution costs.

Sales force composite is the most logical method in forecasting revenue. This involves

estimates from individual salespeople to sell to work out a total for the whole business.

Once these costs and revenues are forecasted, management can then decide which

combination of marketing mix strategies will deliver the most sales revenue at the lowest

cost.

Implementing

Implementation is the process of turning plans into actions, and involves all the activities

that put the marketing plan to work. Successful implementation depends on how well the

business blends its people, organizational structure and company culture into a cohesive

program that supports the marketing plan.

For its further success, Coca Cola must impose several key changes. Production needs to

be on time and meet the quota demanded from wholesalers. It must also be efficient so as

not to build inventory stocks and inventory prices. The marketing needs to be motivated

and knowledgeable about the product. The forms of promotion such as advertising must

be attracting and enticing to the target market to get the greatest amount of exposure

possible for the product. This will ensure the success of the product in the stores.

Distribution of the product must be efficient. This problem has already been taken care of

with convenient transport routes to commercial areas and transport already being

arranged.

Monitoring and Controlling

Monitoring and controlling allows the business to check for variance in the budget and

actual. This is important because it allows Coca Cola to take the necessary actions to meet

the marketing objectives. There are three tools Coca Cola should use to monitor the

marketing plan. They are the following:

i. Sales Analysis

The sales analysis breaks down total business sales by market segments to identify

strengths and weaknesses in the different areas of sales. Sellers of Coca Cola products

vary from major retail supermarkets to small corner stores. This gives the products

maximum exposure to customers at their convenience.

ii. Market Share Analysis

Market share analysis compares Coca Cola’s business sales performance with that

of its competitors. Coca Cola looks to increase its market share by over 60%. With the

changes Coca Cola is currently undergoing, they aim to regain an iron fist control of the

market. Target market various age groups and lifestyles from high school students too

universities, and male or female.

iii. Marketing Profitability Analysis

This analysis looks at the cost side of marketing and the profitability of products,

sales territories, market segments and sales people. There are three ratios to monitor

marketing profitability; they are market research to sales, advertising to sales and sales

representatives to sales. The results of these three tools can help Coca Cola determine any

emerging trends, such as the need for a different product. Comparing these results with

actual results gives the business an idea on when to change.

iv. Market Research

When attempting to implement a new Marketing plan a business must address its

target market and conduct the relevant information to insure the new marketing plan both

differs from the old and is better for the business. When conducting market research a

business must first define the problem and then gather the appropriate information to

solve the problem. There are 3 types of information a business can gather to solve its

problems.

->Exploratory Research which clarifies the problem and searches for ways to address it.

->Descriptive Research is used to measure and describe things like the market potential

for a product and characteristics of the target market.

->Casual Research is used to test a hypothesis about a cause and effect relationship.

Coca Cola through its market research has addressed all three types of research to define

the problem raised by shareholders and gathered information to serve their needs.

Factors Influencing Consumer Choice

When making decisions on products a business must look at factors that influence

consumer choice such as psychological factors, Socio-culture factors Economic factors

and Government Factors.

Psychological Factors:

Such as motivation, perception, lifestyle, personality and self concept, learning,

and attitudes influence the consumer’s behavior towards a product and Coca Cola has

addressed this issue by introducing Diet Coke to satisfy different lifestyles.

Socio-cultural factors:

Such as culture, subculture, socio-economic status, family and reference groups

influence the consumer’s behavior towards a product.

Economic factors:

Such as Disposable income and discretionary income. Coca Cola has addressed

this side of the influence by maintaining a low price on the price of its products.

Government Factors:

Such as new regulations, inflation, interest rates all influence consumer spending

and choice.

Conclusion

Akij Group is one of the fastest business conglomerates in Bangladesh. Akij Group

growth is day by day increase and it Coverage: Around 90% of Bangladesh based on the

Annual Report-2008.The company of Akij Food and Beverage has a product line of

almost all the types of drink and snacks. We made an inquiry regarding customers find

solution for meeting the need of lemon flavored clear carbonated beverage within

Clemon’s target range the percentage is very good. It has not been long since Akij group

brought out Mojo and Lemu. They have already gained huge popularity. The recent

success of Akij group is Frutika, which delivers the promise of no preservatives.The

Group has plans for setting up more projects. The projects are already in pipeline. Foreign

investors have shown keen interest in joining with us for joint ventures. The matter is

under our active consideration and will hopefully soon mature. This will also help the

nation's economy growth and will create job opportunities to various professionals.

Akij Group is also involved in socio-cultural activities. The Group has been operating a

sizeable orphanage free of charge in district town. The Group has also acquired a modern

mother & children hospital previously owned by Save the Children (UK). The hospital is

being operated as a non-profitable concern. But the company needs to be more concerned

about society and environment. Because Industries are most responsible for pollution that

could occur harm for environment. And KEVIAN KENYA LIMITED also need to be

involved with more social event. Because have the resources necessary to solve the social

problems as many business organizations often have surplus revenues.