Cover Letter

TO
The Chief executive
X Company
XX, Chittagong.
Sub: prayer for investing cash in our company

Sir,
With due respect and humble submission, we, “The Coca-Cola Company” states that,
your company is one of the leading companies in Bangladesh. Your well-established
company has a glorious image in home and abroad. In addition, you are the leading icon
in donating and investing money in various upcoming businesses to enrich our nation’s
economy. You’re splendid and beneficial image help us to approach our request toward
you.

Our “Coca-Cola Company” has existed for so many years. In this meantime, we have
reached to the peak of the business. Our products “soft drinks of various flavors” are a
demanding for all kind of people. We are now planning to introduce a new soft drink that
is Thums Up recently; we have made a consumer survey and have received a huge
positive response. We also have received Government appreciation.

Therefore, we state that your valuable investment in our company would bring a
significant dimension to our image. We, also hope that our existing position and future
project will enchant you and make you interested to invest in our company. Furthermore,
we assure you that your investment would proof fruitful and beneficial.

The representer
Of
“Coca-Cola Company Ltd”

Dated, Chittagong
The 7th May 2006.

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 Application

To
Abdullah Mohammad Ibrahim,
School of Business,
INDEPENDENT UNIVERSITY, BANGLADESH,
Chittagong Campus.

Dear Sir,

Here is our report on Marketing plan (Thums Up) based On real fieldwork, what you
assign us to do. It is a matter of great pleasure to inform you that we have completed our
assignment based on a soft drink that is Thums Up. We have tried to give the best
possible effort in presenting maximum real aspects of that business. And now we would
like to submit this report under your kind proposed on 7th May 2006.

We therefore expect your kind volition to let our report for your prudent consideration.
With best regards and thanks
Yours truly,

2 Taste The Thunder!!!!

 ; Executive Summery ;

Business is something that is also related with our whole life. In human
life, there are many kinds of organizations. Each of these organizations
is a business. An organization is that which provides goods and services
in order to earn profits. Indeed, the prospect of earning profits is what
encourages people to open and to expand business. After all, profits
reward owners for taking the risks involved in investing their money
and time.

We, the 1oca-1ola 1ompany are launching a new product named

Thums up in Chittagong Market. Thums Up is a carbonated soft drink
that is very popular in India, where it’s bold “Thums up" logo is
common. Introduced in 1977 to offset the expulsion of the 1oca-1ola
1ompany and other foreign companies from India, Thums Up gained
nationwide acceptance. As, we are in the highest position in the
Bangladesh market through other 1oca-1ola’s products, so now our
goal is to introduce the Bangladeshi people with this new taste. Initially
we have targeted to serve the people of CTG, as our main production
plant is there.

Vision:
1oca-1ola 1ompany is a franchise company that provides the
best quality drinks all over the world as well as in our country.
We always try to give some thing new to our consumers. That’s
why we like to introduce a new refreshing drink named Thums
up. Our target consumers are mainly the youngsters. As it is
available at a reasonable price, a family having an income of
more than 5000 Tk. Per month can easily purchase it.

In marketing mix strategy:

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As 1oca-1ola 1ompany always provides a good quality
product; we will try to maintain this level of quality so that the
consumers get great refreshment by drinking Thums Up. It has
the same cola flavor but the mixing of Betel Nut makes it
different from other colas. We provide our product in different
quantity such as 250 ml, 500 ml, 1 liter & 2 liter. It also available
in some shapes such bottles, pets, cans.

As we have a great financial back up we spent a huge amount in

promotional activities. We will gives our products advertise in
TV, newspaper, billboard, and digital screen as well as in the
Internet. We have already developed a web side so that Thums
Up will become famous in the era of soft drink within a short day.
We will also arrange live concert for the acid victims &
handicapped. We will give scholarship to the poor but meritorious
students.

We will follow the indirect channel of distribution through which

it will available in anywhere. We will charge less from our
competitors such as competitors charges 12 Tk. where we charge
11 Tk. for a 250 ml of drink.

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 ; Situation Analysis;

In order to satisfy customer needs in a profitable way, the firm first

must understand its external and internal situation, including the
customer, the market environment, and the firm’s own capabilities.
Furthermore, it needs to forecast trends in the dynamic environment in
which it operates.

A useful framework for performing a situation analysis is the 5C

Analysis. The 5C analysis is an environment scan on five key areas
especially applicable for marketing decisions. It covers the internal, the
micro environmental, and the macro environmental situation. The 5C
analysis is an extension of the 3C analysis (company, customer,
competitors), to which some marketers added the 4 th C of collaborators.
The further addition of a macro environmental analysis (climate) results
in a 5C analysis, some aspects of which are outlined below.

Company.
Collaborators.
Customers.
Competitors.
Climate.

1. ; 1ompany ;
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The company analysis is given below:

Product line:
Product line of Coca-Cola Company includes---
Coca-Cola.
Fanta.
Sprite.
Sunfill- Mango Juice.
But here we are launching only the Thums up in Chittagong City.

Image in the Market:

Coca-Cola Company has a enlighten image in the Bangladesh
market as well as it has in abroad. From 1986, we are able to rule
in the era of soft drinks. As, new competitors are emerging in the
soft drinks market; the range of competition is expanding. But as
we have the fame of being dominator in abroad, our goal is also
to be the dominator in the Bangladesh. We have already started
our journey in Bangladesh, now we are trying to make a strong
position and in order to do this we are expanding our product line
by introducing “THUMS UP” in Chittagong city, which is a port
city and also the second capital. As our brand image is high, we
are hoping that we can do well in our next chosen drinks.

Culture:
A culture of a company refers the internal condition of the
company. The culture of our company described in below:

Human resource management:

Our human resource management’s work is to look after in the
following point:

Change agent
Choose a Strategic partner
Administrative should be expert
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 Recruit Employee.

Financial Capacity:
Coca-Cola Company is an international company. So, it is
obvious that it has a very good financial capacity, because
our income level is so economic. So, we can easily
introduce a product line of Coca-Cola Company. We are
conducting our business all over the world so smoothly as
well as in Bangladesh. So, to launch Thums up in
Chittagong we hope that we will face no problem.

Management Level:
As per other companies our company has also the three-
management level---

Strategic Level:
In our company GM is the only man who takes all
the strategic decision like Production, procedure,
HRM, Store, Finance, Quality Control.
Technical Level:
In the technical level of our company we have DGM
of administration, production, sales & distribution.
Operational Level:
Operational level’s duty is to implement the
decision, taken by GM & DGM. Area manager has
the responsibility to look after the operational level.

In the Chittagong branch we will assign an Area

manager, who will look after the operation level’s
worker & send report to the specific DGM.

Marketing Department:
All our distribution & sales promotion falls into the
marketing dept. We have marketing intelligence that will
survey in overall market situation & will help to decide
what to do. In the off-season we will take some promotional
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 strategy to maintain our economic growth rate such as gifts,
coupons, scratch cards etc.

2. C1ollaborators
It has two parts:
Distributors.
Retailers.
Our distribution process----

Thums up
productio
n in CTG

Distributo Distributors Distributo

rs Chittagon rs
Dhaka g Khulna

Target Target Target

outlet / outlet / outlet /
Retailer Retailer Retailer
Own Vehicle
Final Consumers

Fig: Distribution Process

From our production strategy, the production of Thums up will

take place in Chittagong plant. After being totally bottled and
sealed Thums up will be sent to its distributors, who will be
chosen by the management of the company. The product will be
sent to the particular distributors through the company’s own
vehicles, which will only use for the transportation of bottled
NCSDs (Non Carbonated Soft Drinks). Once these products will
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 reach to the distributors, they will shift it to the retailers, from
whom the final consumers will be able to get the products.
3. . Customers .
It can be divided into several parts, which are described below:

Market Segmentation

Consumer markets can be segmented on the following customer’s

characteristics---

Geographic Segmentation:
The following are some examples of geographic variables
often used in segmentation---

Region: By continent, country, state or even

neighborhood.
Size of the metropolitan area: segmented according
to size of the population.
Population density: often classified as urban,
suburban or rural.
Climate: according to weather patterns common to
certain geographic regions.

Our Segmentation:
We, the Coca-Cola Company have segmented our market on
the basis of region, which is a sector of geographical
segment.

We have divided Chittagong city in several sections such as

hillside, rural area, city area etc, which contains a total
population of approximately 2,00,00,000.

As, there are a lot of opportunities for us such as, it has a

huge potential buyers & the growth of the market is also
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good so that we are hoping to stay in the market for a long
time & our intention is to make profit by satisfying the
potential consumers.

Based on these sections our segmentation has been done in

following way---

District’s name Percentage Market size (consumer)

City area 50% 1,00,00,000
Rural area 30% 60,00,000
Hillside 20% 40,00,000
Total 100% 20000000

Market size (consumer)

Hillside
20%

City area
50%
Rural area
30%
City area
Rural area
Hillside

Graph: Region Segmentation.

Demographic Segmentation:
Some demographic segmentation variables include:

Age.
Gender.
Family size / Life cycle.
Family life cycle.
Generation.
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 Market size (consumer) Below 13 & 13
13 – 25
25-45
45 and above
45 and Below 13 &
above 13
25-45

13 – 25

Income.
Occupation.
Religion.
Social Class.

Our Segmentation:
These sectors are all under demographic segmentation, but
due to the nature of our product we are choosing age &
income as our topic of segmentation.

Age: On the basis, of age the segmentation, which

we have done, is below:

Age Limit Percentage of Market size

consumption (%) (consumer)
Below 15 25% 5000000
15 – 30 45% 9000000
30-45 25% 5000000
45 and above 5% 1000000
Total 100% 20000000

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 Income: Here, we have illustrated the market of the
earning people.
Income Frequency Market size (consumer)
Range
Below 5000 4% 800000
5000-15000 47% 9400000
15000-30000 33% 6600000
45000 and 16% 3200000
above
Total 100% 20000000

Below 5000
Market size (consumer)
5000-15000
15000-30000
45000 and 45000 and above
above Below 5000
16% 4%

15000-30000 5000-15000
33% 47%

Market Target

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 According to our Region segmentation, we have focused
on city area & rural Area, which consists 80% of whole
population. As, There is less population in hillside area & our
transportation will cost high to cover the hillside area, that’s why
we are not entering the hillside area now. So, our main target is to
cover the main Chittagong city & rural area as the population &
consumer is relatively highest there.

According to our segmentation based on Age, our product

offerings will be mainly focused on the teenager, young’s & on
middle-aged people. As, all of them aged between 15 to 30 &30
to 45 years, who are the 70% (45%+25%) of whole population, so
we are targeting them. As, our product is strong and energetic,
that’s why it is our expectation that, it will be highly appreciated
by them.

According to our segmentation Family Income based

segmentation; we have targeted 3 main income level criteria. As,
our product is provided in reasonable price and everyone can
afford it so we are hoping that 5000 and above income level
people can afford it.

By combining all these we can get:

Target Market
Base Market Percentage Size Calculation
City & Rural (50+30)=80% of whole Ctg
Region Area city. 16000000 20000000*80%
From 15-30 (45+25)=70% of City &
Age & 30-45 Rural Area 11200000 16000000*70%
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 Famly
Income (47+33+16)=96% of City &
Level Above 5000 Rural Area 15040000 16000000*94%

4. . Competitors .

Internal Competitors:
Coca-Cola Company’s other products are coca-cola, sprite & fanta.
As, these products are well established in the market so; they already
got a market of consumer. And this is there plus point. But, as Thums
up is completely new in Bangladesh. So, it will be hard to compete
with these deep-rooted products.

External Competitors:
Besides, the internal competitors, Thums up has to compete with other
competitors also, like Pepsi-cola, 7 up, mirinda. Our main competitor
Pepsi has recently introduced mountain dew, which is also targeted the
youngsters as like as Thums up. Recently R.C. cola occupied a good
market so they are also considered as our competitors.

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Main External competitor:

Other Competitors:

Market Share:
After surveying the market we get the market share of our
competitors which is given below:

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 Brand percentage Market size
Coca- Cola 17% 3400000
Fanta 10% 2000000
Sprite 14% 2800000
Pepsi 15% 3000000
7 Up 11% 2200000
Mirinda 9% 1800000
RC Cola 7% 1400000
Double Cola 4% 800000
frezee Up 4% 800000
others 9% 1800000
Total 100% 20000000

Market size C o c a - C o la
F a nta
S prite
P e ps i
7 Up
M irinda
Double Cola frezee Up R C C o la
Coca- Cola
RC Cola 4% 4% Do uble C o la
20% fre ze e Up
8%
Mirinda
10% Fanta
11%

7 Up
12% Sprite
Pepsi 15%
16%

Graph: Market Share

Positioning:
It is obvious that, Coca-Cola Company is a no 1 soft drinks
manufacturer in Bangladesh as well as in abroad. And now it is
the market leader and Thums up is a new brand of Coca-Cola
Company. We will enter as a form of follower in the soft drinks
company because it will take time to establish our brand as well
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 as Coca-Cola. So, initially we are going to enter as a follower of
Coca-Cola but in next future, we will promote Thums up to the
market leader level. According to our marketing strategy we will
implement our market actions in a unique way. That will lead the
Thums up as a new soft drinks leader in market along with Coca-
Cola.

5. . Climate .
The Climate or macro environment factors are:

Social Factors:
Social change is perhaps is the most difficult external variable for
marketing managers to forecast, influence or integrate into
marketing plans. It includes our attitude, values and lifestyles.
According to company’s statement it is confirmed that we don’t
use any kind of ingredients (alcohol) that contradict our
perception, values of Islamic religion.

Political Influence:
It is sure that every country has some political influence. In our
country Hartal has become the part of our life. In Dhaka, we are
able to sell 20000 case (1 case = 24 bottle) per day but in hartal
we bear a great loss, so that we are loosing our sales because of
transportation problem.

Government:

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 Still today, after a long period of business we don’t have any
contradiction with government in any country. Coca-Cola has
always followed the government rules and regulations in the
traded countries. We never bring our raw materials from Parent
company without tax and tariffs.

SWOT Analysis

SWOT analysis is a simple framework for generating strategic

alternatives from a situation analysis. The following diagram
shows how a SWOT analysis fits into a strategic situation
analysis:

Situation
Analysis

Internal External
Analysis Analysis

Strengt Weakne Opportu Threats

hs ss nity

SWOT
PROFILE

18 Taste The Thunder!!!!

 Fig : SWOT Analysis.

Strength Weakness
Patent
High R&D Dept Food Value
Quality Less Credit Period
Exclusive contracts Environmental Pollution
Market Share Poor Advertisement
Brand Awareness
Financial Resources
Company Image

Opportunities
Reasonable Price.
Low Profile Competitors.
Economic growth.
Different attitude.
Initiating new design.
Environmental Effect
Threats
Raising competitors
Indiscriminate taste
Political Environment
Environnemental Affect
Effect on Reputation.

Our Company’s SWOT analysis for Thums up is given below:

19 Taste The Thunder!!!!

 Internal Analysis

The internal analysis is a comprehensive evaluation of the internal

environment’s potential strengths and threats. The internal analysis that
is Strength & Weakness of our company is given below:

Strength

Patent:
Patent is the most powerful strength of our Company. As we are
introducing our new product under the name Coca-Cola, that’s
why we are getting the name. And it will act as a great weapon
for us.

High R&D Dept:

We have a strong research & development dept. They research
over our existing products concentration & try how to develop
it. And with the help of there we are going to launch our
product.

Market Share:
As we are the most prominent manufacturer among all the
beverage company in the world, so there is no doubt that we
have high market share in the international market. We are
20 Taste The Thunder!!!!
hoping that we will be able to capture a high share in the
Chittagong market.

Brand Awareness:
We have the most dominant brand name all over the world.
When people think that they need drinks, they think about Coca-
Cola Company’s product. It comes first in their mind. So, as a
product of them Thums up will be able to capture the
customer’s mind.

Financial Resources:
As our company is an international company, we have enough
financial resources for conducting the business.

Company Image:
As our company is internationally recognized, so it is obvious
that we have a very strong and popular image throughout the
world including Bangladesh.

Exclusive Contracts:
Our Company has a very good relationship with the dealer,
retailers and with the wholesalers. We always try to supply our
product according to their wants and needs. We never delay to
transport our products until or unless if there is no hartals or any
law broke down. So, this quality of ours will attract new
distributors in an enormous scale.

Quality:
It is similar in flavor to other colas but has a unique taste
reminiscent of betel nut. So, it can be said that we are bringing a
new quality in our product, which is proof to be our strength.

Weakness

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 Food Value:
Though strong and rich ingredients are used to manufacture
our product, it may not be suitable for diabetic patient and
health conscious consumers as our drink contains high calorie,
sugar, carbohydrate.

Less Credit Period:

Some times distributors want longer credit period. But we
allow only 60 days for payment. It decreases our sales volume,
which some times leads our profits to go down.

Environmental Pollution:
Now our product is available in glass bottle & pet bottle. Pet
bottle is not disposable, which is harmful for the environment
and now people became more conscious about the
environment. So, in this sense it is also our weak point.

External Analysis

Opportunities & Threats are its parts.

Opportunities

Reasonable Price:
Our drinks will be provided in reasonable price such as our drink
will be available only in Tk. 10 where other companies offer their
drinks in Tk 12.

Economic Growth:
As the economic growth rate of Bangladesh is increasing, we are
hoping that in near future almost every consumer will be able to
22 Taste The Thunder!!!!
afford our product. For instance, the lower class people and the
villagers are not used to buy drinks. But regarding the increasing
economic growth rate of Bangladesh, in the next future they will
also be the consumer of soft drinks.

New Attitude:
Every cola that is now available in market like Pepsi cola, virgin
cola, RC cola- are almost same in flavor and taste. But thums up is
different in taste. It is strong and highly energetic. If we consider
India, there is already a new attitude grow up towards thumps up.
The youngsters are really fond of it. So we are hoping that, in
Bangladesh there will be also a new strong attitude will develop for
thumps up.

New Design:
The outer look of thumps up is different from coca cola and from
other drinks. So consumers will be attracted by this new design of
our product. It is definitely an opportunity for us.

Population Growth:
As the population of Bangladesh is increasing, consequently the
population of our target consumers is also increasing. This large
portion of our target consumers will be our strong opportunity in
market.

Threats

Raising competitors:
The other rising company becoming a threat for our company. If one
company opens in every year it may able to decrease 1% market
share of our Company every year.

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 Political Environment:
Politics in our country is a very trashy threat for any manufacturer
company for their working process to go on. Sometimes, political
workers affect their transportation, their vehicles and products.

Environmental Effect:
Our product has little environmental effect. As we are serving
thumps up in pet bottle, which are made of plastic- is proved to be
harmful for environment. As plastic takes time to decompose and
there is no effective system of recycling the plastic products in
Bangladesh, so there will be some sort of environmental
disadvantage regarding our products.

Reputation Fall:
As coca cola in an international brand, any sort of defaming of this
brand will be threatful for us. Because thumps up is a part of coca
cola company, so it is obvious that any kind of defamation regarding
coca cola can ruin our image and decline our reputation in home and
abroad.

; Marketing Objectives;
Increase the market share by 10% within 2009.
Broaden the market by introducing a new product in the
existing product line.
Enhance the Brand loyalty.

24 Taste The Thunder!!!!

; Marketing mix

Products

Quality:
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It is similar in flavor to other colas but has a unique taste reminiscent of
betel nut. So, it can be said that we are bringing a new quality in our
product.

Design:
The design of Coca-Cola’s bottle is unique. Its outer view is different
from other Cola-Cola’s Product.

Brand name:
This logo will work as our brand name as it worked in other countries.

Product Size:
We have various quantities of Thums Up in different size.

Glass Pet Can

250 mL, 1 liter 500 mL, 1 liter, 1.5 liter & 2 liter 330mL
Packaging:
Thums Up packed and promoted in an attractive way, so that one can
easily identify it.

Feature:
It is a strong & energetic drink.

26 Taste The Thunder!!!!

 Price

Credit term:
Our credit term is 2/20 net 90 days. It means that our allocated time for
the distributors is 90 days. But if any can pay within 20 days, he will
get 2% discount.

Payment Period:
We took 1 month as our payment period.

List price:
As we are planning to launch different sizes of Coca-Cola drinks, so the
prices determined for this size are also different. Our maximum
determined rate for 2.25 liter is Tk. 60. And our lowest price for 250 ml
is Tk. 10 All the prices that are allocated for different sizes are given
follow: Type Quatity Price
Glass 250 mL 11
1 liter 28
Pet 500 mL 20
Promotion
1 liter 32
1.5 liter 45
2 liter 60
Can 330m 20
Advertising: Media:
TV:
With channel-i, Rtv, channel-1, Ntv we will have some contracts.
They will telecast our ads 50 times a day.

Newspaper:
As it is a new product, so in every month we will give 3-4
advertisements. In the 1st two week of launching our product an
offer will be given in the newspaper. Anyone can get 50%

27 Taste The Thunder!!!!

 discount in purchasing 1L Thums up, if he will take that paper
cutting of our given ad to the shop.

Bill Board:
In the main point of the city area we will have our big posters.
We will give our ads in the 15 Billboards. But the number will
increase with the time.

Digital screen:
We will also give ads for 60 times daily in the only digital screen
of Chittagong.

Internet:
We also give our product’s advertisement in Internet.

Strengthen the Brand Image:

Our intention will be to differentiate our image through distinguish
symbols and branding. As our company is one of the highly branded
drink companies, it has already developed a successful international
image. So, our main target is to create high-perceived value through our
brand image as we are entering in a new market.

Bonus:
This will be given for customer to attract them in an excessive scale. It
is an extra addition, which will very from time to time with the seasonal
situation. Like 20% extra coke/ glass/ bowl etc will be given with 1 liter
or with 2 liter Coca- Cola.

Event Sponsorship:
We will sponsor cultural shows, sports, and concerts for our publicity
such as concerts for acid victims, handicapped & drug addicts. It will
enhance our brand image in the local market as well as it will draw
attention of the target consumers. Also, we will arrange cricket match
and football match in the city.

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Allowances:
In order to please our distributor, yearly reward will be given to the
highest sales distributor. Also, 1-liter coke will be offered to the every
distributor with a case.

Emphasis on Societal Marketing Concept:

We will give scholarship to some talent but poor students. It will create
an appeal for our company that; it is a socially responsible corporate
citizen.
Place

Channel of Distribution:
Our Company will follow an indirect line, a channel of distribution for
the product. We will market our products through a member of dealers.
We will provide our drinks to consumer through retailers-, which is a
channel 3-distribution policy.

Manufacturer Distributors Retailer Consumer

Fig: Channel of Distribution

Coverage:
As, we have focused on city area & Rural Area, which consists 80% of
whole population; we will cover only these areas.

Location:
Coca-Cola will sell its product throughout the Chittagong district.
Distributors are the main media for distributing our products. Our
distributors will be from following location.

29 Taste The Thunder!!!!

 Fig: Location & Coverage in CTG city.
Inventory:
We’ll follow the FIFO method to control our raw materials. According
to this method we’ll turn our inventory into sales to generate profit.

Transportation:
We will use “pick up vans” to distribute our products throughout
Chittagong.

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 Thums Up

Budget
Unit Price forecast:

We have determined our product’s price, which are as below:

Our forecasted unit sales are given below:

Unit sales year

( Coca Cola ) 2006( unit ) 2007( unit ) 2008 ( unit )
250 ml 4500000 4657500 4773937.5
1 liter 2200000 2277000 2333925
2 liter 900000 931500 954787.5
Pet 500 ml 500000 517500 530437.5
Can 1500000 1552500 1591312.5
Total Unit sales 9600000 9936000 10184400

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 Unit prices Year ( Tk per unit )
Thums Up 2006 2007 2008
250 ml 11 12 13
1 liter 32 35 38
2 liter 60 63 65
Pet 500 ml 18 20 22
Can 18 20 22
Total sales forecast:

sales year
( Coca Cola ) 2006( sales ) 2007( sales ) 2008 ( sales )
250 ml 45,000,000 53,216,000 60,610,000
1 liter 70,400,000 78,616,000 86,010,400
2 liter 54,000,000 62,216,000 69,610,400
Pet 500 ml 9,000,000 17,216,000 24,610,400
Can 27,000,000 35,216,000 42,610,400
Total sales 20,5400,000 246,480,000 283,452,000
Our Budget for next 3 years is given below:

Budget
Item \ Year 2006 2007 2008
($9,600,000) $29,880,000

Loan Proceeds 0 0 0
Sales & Receipts 205,400,000 246,480,000 283,452,000
Other: 0 0 0
Total Cash Inflows $205,400,000 $246,480,000 $283,452,000
Available Cash Balance $205,400,000 $236,880,000 $313,332,000
Cash Outflows (Expenses):
Advertising
TV 15,000,000 18,000,000 18,000,000
News Paper 10,000,000 11,000,000 11,000,000
Bill Board 6,000,000 8,000,000 8,000,000
Internet 8,000,000 8,000,000 8,000,000

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 Other: 12,000,000 12,000,000 12,000,000
Delivery 8,000,000 10,000,000 10,000,000
Insurance 7,000,000 8,000,000 8,000,000
Interest 0 0 0
Inventory Purchases 20,000,000 23,000,000 25,000,000
Office 10,000,000 12,000,000 12,000,000
Professional Fees 6,000,000 8,000,000 8,000,000
Rent or Lease 15,000,000 16,000,000 16,000,000
Subscriptions & Dues 3,000,000 4,000,000 4,000,000
Supplies 15,000,000 18,000,000 22,000,000
Taxes & Licenses 13,000,000 13,000,000 14,000,000
Utilities & Telephone 5,000,000 6,000,000 7,000,000
Other: 12,000,000 12,000,000 10,000,000

Subtotal $165,000,000 $187,000,000 $193,000,000

Other Cash Out Flows:
Capital Purchases 50,000,000 0 50,000,000
Loan Principal 0 0 0
Owner's Draw 0 20,000,000 50,000,000
Other: 0 0 0

Subtotal $50,000,000 $20,000,000 $100,000,000

Total Cash Outflows $215,000,000 $207,000,000 $293,000,000
Ending Cash Balance ($9,600,000) $29,880,000 $20,332,000

Action program
We have divided our action program into consequent three parts in a
year. We set our action program for each 4 months which is described
in below:

1st Quarter

Our product has similar flavor that other colas have, but we have
a unique taste reminiscent of betel nut, which we will always use
to maintain our quality. Our quality manager will ensure us in the
33 Taste The Thunder!!!!
era of quality, by checking the quality in every 4 months that
means in every quarter our process of ensurance the quality will
be done. We have a plan to serve our customer by introducing the
glass bottles of 250ml, 1L& 1L, 2L in pet bottles & also can of
300 mL. But in the 1st quarter only the liter of 1 in both the glass
& pet bottles will be launched. Cans also will be available in the
market.

As we are introducing a new product in an existing market, that’s

why we have to do something extra to make position in the
market. In the market, the rate of 250mL, 1L & 2L of soft drinks
are respectively Tk. 12, Tk.32 & Tk. 60. As, we are entering in
this competitive market with a new product, that’s why we are
reducing our rate in a small amount to attract the customer. Our
determined price for 250mL, 1L & 2L is Tk. 11, Tk. 30 & Tk. 58,
though we are maintaining the same quality. Hence, we are
launching a new product in the market however as we have
distributed many products before, that’s why our allocated time
for giving credit for the distributors is 3 weeks. Our inventory is
supplied for 4 months that means for 1 quarter. As, we have an
enormous financial backup so; we will pay our suppliers within 2
months. In every quarter payment will be given for 1 time.

We have a jingle “TASTE THE THUNDER” which is a rational

appeal will attract our target consumers a lot. Two weeks before
from which we will start to distribute our product we will give
ads in the newspapers that will make appealness in the
consumers. Within 4 months, we will make a contract with the
T.V. channels (BTV, Channel- i, Channel-1, NTV, RTV) to give
ads 50 times a day. Ads will be given in the 15 billboards in the
main main area of the city. We will give ads for 60 times daily in
the only digital screen of Chittagong. In the 1st two week of
launching our product an offer will be given in the newspaper.
Anyone can get 50% discount in purchasing 1L Thums up, if he
will take that paper cutting of our given ad to the shop. A concert
will be arranged in the month of March for the acid victims. An
intercity cricket match may also be arranged in the month of
April.
34 Taste The Thunder!!!!
In our first month of distribution we will not be able to cover all
the areas to serve our product. First, we will cover only the main
areas of cities & some rural areas. Our 1st targeted 4 areas in the
city are G.E.C more, Reazzudin bazaar, Muradpur, Agrabad. In
the rural our distribution areas are Rangunia, Sithakundo,
Mirasharai, Satkania, Chandanaish. Our products lead us to
follow the channel-3, which is an indirect distribution. We will
first hand over our product to the distributors and through the
distributors; retailers will get the product. And, finally from the
retailers customers will be able to get our product. We will use
the method of “FIFO” to collect the inventory from the suppliers.
With the first supplied raw materials we will straight away
manufacture our products. Then this manufactured product will
be handover to the distributors immediately. We will use to
“PICK UP VANS” to distribute our products. For the first time
20 vans will be used for distribution.

2nd Quarter

In all the quarters our quality measurement process will be same.

But to expand our product line in the 2nd quarter we will bring
the sizes of 1L in the glass & 500 mL, 2.25L in the pet bottle. Our
determined price for the new sizes will be Tk. 28, Tk. 20& Tk. 60
respectively.

We will maintain the previous inventory method, credit period &

payment period.

For the first time, Internet will act as our promoting media. Some
serials of T.V. may get sponsorship of us. We will also sponsor
one renowned singer’s music album.

As, it will be the world cup season, in that time a ball will be
offered with every 2L Thums up. Also, we will sponsor both a

35 Taste The Thunder!!!!

 football match and a cricket match. We will arrange some cultural
shows for handicapped & for the drug addicts.

As, in the 1st quarter we have covered almost all of the areas of
the city & some rural areas, now we will have our footstep in the
rest noninsured areas. This time 35 vans will be used for our
distribution.

3rd Quarter

Our quality measurement process will be same in the 3 rd quarter.

But our promotion will very from quarter to quarter. During
pahela baisakh, we will offer 10% extra with every 1L thumps up.
This offer will be continued for one week. We will sponsor a
movie, which will be 1st telecast in the TV, and then it will be
released in the whole country.
. Control .

. 1ol .
The organogram of our company are given below:

36 Taste The Thunder!!!!

 Marketing
Manager

Field Brand
Marking Marketing

Area
Manager
Brand Brand Brand
Executive Extension Manager
Officer

Territory Territory
Manager Manager
(City Area) Rural Area

Supervisor Supervisor
Agrabad

Supervisor Supervisor
G.E.C

Supervisor Supervisor
Reazuddin
Bazar

Supervisor
Muradpur

4 Field Workers

37 Taste The Thunder!!!!

 Diagram: Marketing Dept’s Function

Area Manager:
As we are launching our product in Chittagong city, so the area
manager will be in charge of whole Chittagong city. Under his
control, there will be territory manager. His duty is to monitor
the territory manager.

Territory Manager:
Under the control of area manager, there will be a territory
manager for our main four areas GEC, Agrabad, Chandgaon and
reazuddin bazaar. The responsibility of territory manager is to
monitor the distribution process of our products.

Supervisor:
Under the territory manager we will assign four supervisors.
Each supervisor will be in charge of each four areas. Their duty
is to control the fieldworker and report to the territory manager.

Fieldworker:
The fieldworkers will be under supervisor’s control. Their main
duty is to supply our product to distributors. We will have eight
fieldworkers assigned for Chittagong city, and eight
fieldworkers assigned for the rural areas to distribute our
product to the final consumers.

38 Taste The Thunder!!!!

39 Taste The Thunder!!!!