Coca-Cola in Bangladesh
Coca-Cola started their operation in Bangladesh for more than 100 years. Like other country’s they decentralize the authority of distributing the Coca-Cola to two franchisors- Tabani Bevebrage Ltd (TBL) and (Abdul Monem Ltd) AML. TBL is resonsible for distributing Coca-Cola in Dhaka, the capital of Bangladesh and Rajshahi Divisions. AML is responsible for distributing to the rest of the country-Chittagong, Khulna, Barishal and Syllhet. However, Coca-Cola mainly concentrate their distribution in the urban areas of Bangladesh. The main Coca-Cola Company is only responsible for ensuring the supply of the “concentration” of Coca-Cola to these 2 bottlers of Bangladesh from Egypt. And it is the responsibility of these 2 bottlers to collect the rest of the ingresdiants from Coca-Cola’s “Approved Vendor List”. Coca-Cola also provides these bottlers MMI (Master Mixing Index) to ensure that the taste of Coca-Cola remains the same all over the world. . The purpose of providing the MMI is to ensure that the taste of the Coca-Cola remains same in all of the counry, but taste of Coca-Cola differs from the original Coca-Cola’s in Bangladesh like other Muslim country due to the halal formula of Coca-Cola. In Bangladesh upto 3% alchohol is permissible, Coca-Cola strictly folllow this limit. As a brand Coca-Cola has the “top of the mind” awareness in the mind of the consumers, but it is on the way of losing it’s brand image in Bangladesh. For the last couple of years, there was not a single advertisement aired in TV or printed in media by Coca-Cola. As a result they are loosing their position and new comers are capturing the market. It is not even cola market now; it has converted to lemon drinks market. RC lemon, Lemu, Mountain Dew became very famous brands within few months of launching. Businessmen see good opportunities in soft drinks market. Even in case of distribution, Pepsi is much ahead of Coca-Cola. The “loyal” customers of Coca-Cola are becoming the “commited customers” and moving towards Pepsi because it’s not available in the capital of Dhaka due to bad distribution of the franchisers. Even if we consider the market share, now a days RC is occupying the biggest marker share. About 35% market share in the beveage indusry, whereas Coca-Cola have only 17% of the market share. Coca-Cola-PET Bottle
TBLBevearge Limited (TBL), one of the franshisors of Coca-Cola in Bangladesh, do not have the plant to produce PET botlle, it is the responsibility of AML to produce PET bottle and then transfer it to TBL. Then both TBL and AML distribute the PET bottle to their respective zone. Formerly, Coca-Cola was the market leader in the beverage industry of Bangladesh, but they became the followers in case of introducing the PET bottle in Bangladesh. In 1999, Virgin brings the slim PET bottle and first introduced the PET bottle in Bangladesh. Later on in 2000, RC brings another PET bottle as they found that there is huge demand for this. After almost 2 years Coca-Cola introduced 1 litre and 1.5 litre PET bottles in Bangladesh in order to meet the market demand. Then after more than 2 years Coca-Cola came up with 500 ml (half litre) and recently they come up with 2.25 litre. RC, Lemu and Moja are receiving huge market response due to their availability and repetitive quality adviretisement. On the other hand, Pepsi is gaining huge market share through out their distribution. All of these soft drink companies are also having competitive advantage due to product line extension. To cope up with the market, they brought 250 ml PET bottle, whereas Coca-Cola still do not have any plan to introduce 250 ml. The main problem with the operation of Coca-Cola’s PET bottle is that, as being Government organization TBL is very reluctant to increase their sale. Moreover, as they themselves are not...
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