Market Potential of New Energy Drinks in Bangladesh

The leading objectives of this report are to analysis and familiarize with the organizational objectives, functions as well as analyzed performance of Current market potential of new energy drinks in Bangladesh. Other objectives are analysis the market share of different companies of energy drink and analyze the performance of energy drink and its role in the capital market of Bangladesh. Report also focus on to know the consumer perception about energy drink and understand the target consumer of energy drink in Bangladesh.

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:­

  1. To check the market share of different companies of energy drink.
  2. To analyze the performance of energy drink and its role in the capital market of Bangladesh.
  3. To know the consumer perception about energy drink.
  4. To understand the future of energy drink in Bangladesh.
  5. To review the over all performance of market potentiality of energy drinks.
  6. To focus on the overall view about energy drink.
  7. To know the energy drink of Bangladesh.
  8. To understand the target consumer of energy drink in Bangladesh.

 

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.

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:

 

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.

 

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.

 

ANALYSIS OF EXISTING DRINKS BRAND

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 –

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”.

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”.

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”.

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.

 

Brand names & their meanings: In a brief

Brand nameMeanings
Royal TigerThe brand name is synonymous to Royal Bengal Tiger, which is the symbol of power and strength.
SpeedSpeed means motion/force. It brings motion in our life. Makes our life dynamic.
SharkShark is a fast moving & energetic animals in the sea. This drink enables us move fast & be stronger like shark.
PRAN PowerThis drink generates power for us to work more powerfully & smartly.

 

Market Share of each producer’s brand:

Producer & Brand NameMarket Share (%)
Globe Soft Drinks Ltd.

Royal Tiger

70
Akij Food & Beverage Ltd.

Speed

25
PRAN Foods Ltd.

Pran Power

01
Osotspa Co. Ltd.

Shark

04

Sizes, Prices & Profit Contribution:

Brand NameSize (ml)Retail Price (Tk.)Profit/Pcs.
Royal Tiger270202.17
Speed250202.23
Shark150405.32
Pran Power250202.12

Promotional activities of each brand:

Brand NameQuantity purchased (Pcs)Bonus (Pcs)
Royal Tiger242
Speed242
Shark242
Pran Power242

Advertising activities of each producer:

Brand NameAdvertising MediumBrand Ambassador
Royal TigerTVAyub Bacchu

(most popular rock star)

SpeedTV
SharkTV
Pran Power

 

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 NameExport To
Royal TigerQatar, Dubai
SpeedUAE, 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.

 

DISCUSSION ON SURVEY FINDINGS

INTRODUCTION

Market Survey is conduced in some areas of Dhaka City – 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

Brands availability, sales volume & profit contribution:

What are the available brands of energy drink in your store?

Brand nameSizePrice (Tk)Brand presence/ store (%)
Tiger270ml20.00100
Speed250ml20.0075
Shark150ml40.0025
Power250ml20.0010

How much sales occur of each brand in a week?

Brand nameSales/

week (pcs.)

Tiger50
Speed30
Shark05
Power03

Which brand offers you the maximum profit?

Brand nameProfit/Pcs. (Tk)%
Tiger210
Speed210
Shark5.2013
Power210

 

Ultimate consumers, consumptions reasons and pattern

Who are the ultimate consumers of these drinks?

Age LimitNo. of respondents%
Young2560
Teens1025
Adults (30+)0515

Why do they consume those energy drinks?

ReasonsNo. of respondents%
Refreshment2870
Recharged0820
Don’t know0410

How frequently they consume these energy drinks?

Frequency/

week

No. of Respondents%
7 pcs0820
4 pcs1230
1 pcs2050

 

Brands demand and acceptance of price:

Which brand is more demandable to consumers? 

Brand NameNo. of Respondents%
Tiger2870
Speed0820
Shark037.5
Power02.5

Is this price affordable to consumers (Tk. 20 = 250ml/270ml)? 

ResponseNo. of respondent%
Affordable2665
Unaffordable1230
No Comment0205

 

Retailers Suggestions :

Is there any seasonal/occasional affect of consuming energy drink?

ResponsesNo. of respondent%
Yes3690
No37.5
Don’t know12.5

Do you have any suggestions to improve drink market?

SuggestionsNo. of respondent%
Advertising2460
Free Sampling1020
Price reduction410
Bonus offer25

 

Consumer Responses:

Participants: 40 consumers

(Age limit: 15-40 years)

1) First Consumption experience & brand preference:

Which brands of energy drink you have taken at first?

Brand NameNo. of respondents%
Tiger2870
Shark410
Speed717.5
Power10.25

Which brand you like most?

Brand NameNo. of respondents%
Tiger2665
Speed1025
Shark37.5
Power10.25

Consumer responses regarding product, price & promotion

Which one you prefer for choosing the brand?

CharacteristicsNo. of respondents%
Product Quality3485
Price410
Packaging25

Do you think the price is reasonable charged against your favourite brand?

CommentsNo. of respondents%
Reasonable2665
Unreasonable1230
No Comments25

 Are you satisfied with promotional activities of your favourite brand?

 

CommentsNo. of respondents%
Satisfied820
Dissatisfied2665
No Comment615

What types of flavor you like best?

FlavourNo. of respondents%
Lemonade2255
Orange1230
Chemical410
Don’t know205

 

Media Preference for Advertisement:

In which TV channel you see the Advertising of energy drink? 

TV ChannelNo. of respondents%
Channel i1640
NTV1025
ATN0820
BTV0205
Bangla vision0410

 

Which media you prefer for the first time advertisement of energy drink? 

MediaNo. of respondents%
TV1640
Radio0820
Newspaper1230
Magazine0205
Others0205

Consumers Suggestions:

Do you have any suggestion to improve your favoutite brand?

SuggestionNo. of respondents%
Increase product quality2050
Advertisement1025
Price reduction0615
Attractive Packaging0410

 

FINDINGS, RECOMMENDATIONS, & CONCLUSION

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

 

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 Dhka City including others big cities.
  • Brand attachment with superstars like James, The Rock Stars or Bangladesh cricket team will bear unique brand positioning.

 

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.

 

Survey On

Energy Drink Market in Bangladesh.

Questionnaire for Retailers

Name—————————————————–

Address————————————————–

  1. What are the available brands of energy drink in your store?
  2. How much sales occur of each brand in a week?
  3. Which brand offers you the most profit?
  4. Who are the ultimate consumers of these energy drinks?
  5. Why do they consume these energy drinks?
  6. How frequently they consume these energy drinks?
  7. Which brand is more demandable to the consumers?
  8. Is this Price affordable to consumer?
  9. Is there any seasonal/ occasional affect of consuming energy drink?
  10. Do you have any suggestion to improve the energy drink market?

 

Survey On Energy Drink Market

Questionnaire for Consumer

Name…………………………………..                                 Age……………

Address……………………………….                                  Occupation………..

  • Which brand you have taken at first?

a) Tiger     b) Speed    c) Shark    d) Power

  • Which brand you like most?

a) Tiger     b) Speed    c) Shark    d) Power

  • Which one you prefer for choosing the brand?

a) Product quality b ) Price  c) Packing

  • Do you think the price is reasonable charged against your favorite brand?

a) Reasonable b) Unreasonable    c) No Comment

  • Are you satisfied with the promotional activities of your favorite brand?

a) Yes b) No      c) No comment

  • What types of flavor you like best?

a) Orange b). Lemonade c.) Chemical d) Can not distinguish  )   Others

  • In which TV channel you see the advertisement of energy drink?

a) BTV b) n TV c) ATN  d) CH-I  e ) Bangla Vision  f) Others……….

  • Which media you prefer for the first time advertisement of energy drink?

a) TV b) Newspaper c) Radio d) Magazine  e) Others……………….