Virgin Cola Term Paper
1.1 Background of the Study
Global Beverage Company Limited (GBCL) is the one of the stabilized beverage company in Bangladesh. They provide soft drinks with a brand name “Virgin” which an exclusive franchise agreement with Virgin Enterprise Limited of United Kingdom. GBCL started their business in Bangladesh December in 1999. Gazipur is our only production zone and main office at Mirpur, Dhaka. GBCL produced soft drinks with different flavors and sizes (can and bottle). Cola, Orange, Lemon-lime, Passion fruit, Grape fruit, Tutti-frutti these are all flavors of Virgin. Beside these, Diet cola is exclusive. Its competitors are Tabani Beverage, Bangladesh Beverage, National Beverage, Globe Beverage and Partex Beverage Limited. Its target market is teenager at the age of 13 to 19. It offers good taste with various products, maintaining international standard quality level. Product design and packaging is distinctive rather than the others. It takes better positioning in consumers mind from starting period flavored drinks. GBCL also introduced Mango juice flavor with brand name Cheers. In BCG matrix Virgin cola stays in Dogs but have a better chance to move from Dogs to Cash Cow. GBCL is continuing 13% of total market growth share. Its core benefit is removing the thirst of consumer. It uses aluminum container can, and plastic Container for pet bottle. Virgin drinks have proved their standard quality level by Bangladesh Standard Tasting Institute (BSTI). GBCL delivers its product through factory warehouse to distributors, distributors to retailers, retailers to consumers. They deliver product factory to distributor by their own cost. It has 102 distributors in all over the Bangladesh. It follows primary and secondary packaging. GBCL contributes good quality product with affordable price. They are following cost-plus pricing policy. Also provides quality advertisement for influencing consumer by TV, Newspaper, Magazine, Radio, and others. GBCL takes short-term sales promotional programs such as discount, coupon, special advertising items, and premium for increasing sales among the consumers, retailers, dealers and business markets. Now they are exporting Virgin product in Bhutan and trying to export their product in India. GBCL has mentioned its product oriented mission statement is, “We are providing international quality drinks with world famous brand name at an affordable price.” It follows mission dialog, “It’s Your Life, Color It.” Their strong side is quality with brand name, marketing and distribution. GBCL has a big opportunity to create market demand by introducing fountain pack and 250 ml with plastic container in future. Global Beverage Company Limited (GOBAL) is the Beverage Unit” of the YOUTH GROUP, a conglomerate of over a dozen industrial and trading unit with a total turnover of over us $ 50 million . GOBAL is the franchiscc of VIRGIN – an international brand of carbonated beverage from the UK. The drink were initially introduced in – cans only and in various flavors. Subsequently pet bottle and very and recently quite a few new variants (flavours /size) had been introduced. Virgin took off beyond GOBAL’s expectations after the launch of the brand taking almost 10% of the market in the first year. How ere, salsa began to noscdive from the second year and currently Virgin enjoys a significantly lesser market share , GOBAL was not fully surc about the cause of the initial accpants of Virgin. It apparently GOBAL’s strategy of introducing the product in the 250 ml throwaways cans and positing the brand as a youthfully drink tragfcting particularly the teenagers, resulted in dramatic take off at launch. Virgin had a fair share as well in the media in the first year and the company believe its distribution strategy also contraband to is initial success How ere, all soft drink, manufacture / bottle locally, are now available in alu cans and pet bottle. Coca Cola,...
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