Principles of Marketing

Instructor: Zakia Binte Jamal

Course : MKT 401 ; Section : 1

TOPIC: Inport latin American Product In Bangladesh

Submitted by:
1 Ashik Hossain 1420900
2 MD. Kamrul Hasan 1420943
3 Tahmid Bin Shahriar 1210138
4 MD.Imran Hossain 1421019
5 Nafisa Ibrahim 1421421
6 Md Faysal Bhuiyan 1330259

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LETTER OF TRANSMITTAL

21st nov 2016

Miss Zakia Binte Jamal

Lecturer

School of Business

Independent University, Bangladesh

Subject: Submission of the marketing report on a soft drink beverage product

Dear Miss,

It is an enormous pleasure to submit the marketing report on a soft drink

beverage product in Bangladesh. It was a great opportunity to work on such a
project which helped us to to make different marketing plans and evaluating
consumers recognition.

We tried our level best to arrange this marketing report to the requisite standard
even facing few obstacles while collecting data information. We all thoroughly
enjoyed and efficiently put all efforts to successfully complete the strategy.
Throughout the whole planning we gained immense knowledge and experience
which would enhance our career development.

Therefore, we request fervently to accept our marketing report and enlighten us

with your valuable suggestions. We sincerely thank you for giving us the
opportunity and support. We would be glad to answer any queries that you may
have in this regard.

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Acknowledgement
We, the group members of group Incredible in MKT 401 course sincerely
thankful to all those people who have been giving us any kind of assistance to
work on this report.

We express our gratitude to our honorable faculty Zakia Binte Jamal miss, who
has through her vast experience and knowledge has been able to guide us to
accomplish this report. She gave us the golden opportunity to do this wonderful
report on the topic which also helped us in doing a lot of analysis and we came to
know about so many new things.

We are making this report not only for marks but to also increase our knowledge.

Thanks again to all who helped us.

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Table of contents:

NO CONTENTS PAGE NO
1 Agreement 05
2 Environmental factors, Company character, and 06
screening criteria
2.1 Company character 06
2.2 Home-country constraints 10
2.3 Host country constraints 12
3 SWOT Analysis 13
4 Matching mix requirements defining and selecting 14
marking segments
4.1 Marketing mix- 14
4.2 Marketing segmentation 14
5 Marketing plan development 15
6 Implementation, evaluation and control 17

7 Reference: 18

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Agreement:
We both the parties are agreed to the terms and conditions of marketing policy.
By taking all logical legal steps we are in a way to collaborate the business.

Terms and Conditions:

Pricing of the product should be determine according to the company

Guiarana Antarctica.
At the time of product marketing all plans regarding marketing works will
be in a valid form.
No third party can commence with the new marketing ideas
All activities from both the parties will be done legally.
All provisional works should be in a year based form.
All works will be done by informing both the parties.
Biased recognition should be keep apart.
we can make change according to their wish in plan if needed.
By the consent of Bangladesh rules of constitution system we both the parties
have agreed to continue this business for 8 years.

Incredible Guiarana Antarctica

Marketing agency Business company

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 Environmental factors, Company character, and
screening criteria
Company character
Philosophy- The discovery of this product started in 1669. The Jesuit priest Joo
Felipe Bettenford "discovers" the fruit of guaran when observing the Maus
Indians, during an expedition by the Upper Amazon. The priest reports that the
fruit called guarana is kneaded in water and brings so much strength, when drunk,
that the Indians are left without hunger for a whole day of hunting. The fruit was
also used to cure fevers, cramps and headaches.

Objectives- Its objective is to cover a large area for campaign, to launch a new
product, to maintain the taste and demand of consumers, making attractive
campaigns, different outlets etc. These objectives mainly termed as the primary
fond of work and for regular basis.

Resources- The Companhia Artarctica Paulista started its operations in 1885, by

selling beer and sodas. Today, its top sellers are the Antarctica beer and the
Guaran Artarctica (a type of soda made with a fruit from the Amazon, very
popular in Brazil). Today, Antarctica is the third most consumed beer in Brazil, and
it is popularly known by the consumers as A Boa (The Good one) or Original.

As many other beer brands, Antarctica has its image associated with beautiful
women. Its current spokesperson is the Brazilian actress and model Juliana Paes.

In 1961, Antarctica acquired the Bohemia brewery and in 1979 merged with the
Brahma Company. All those brands are now part of the beverage giant AmBev,
that was merged with the Belgian company Interbrew.

Brand owner: AB InBev S/A

Brands value: USD 851 mi

Slogan: Boa Antarctica (The Good is Antarctica)

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Management style-

Directive "Do it the way i tell you"manager

Closely controls employees

Authoritative The firm but fair manager

Gives clear direction

Participative Encourages employee Input dicision making

Motivates by reward

Organization- Guaran is a guarana-flavoured soft drink, originating in Brazil and

manufactured and distributed by Anheuser-Busch InBev. It was created in 1921 by
Pedro Baptista de Andrade for Companhia Antarctica Paulista, now part of
Anheuser-Busch InBev. The drink is produced in four countries, Portugal, Brazil,
Argentina, and Japananization.

Management and Marketing- A high brand personality and a community

management that truly has something to teach. In particular because theyre
standing at the top level in a market that will probably give the rules to the whole
world in the next decades: the Brazilian one.

As everybody knows, Red Bull has changed the rules: they created from scratch
an entire dietary industry (the energy drink) and it didnt make a single wrong
move regarding the communication strategy, dictating a new packaging standard,
getting hold of the sports world, from the extreme sports to the Formula 1.
Moreover, it has some extraordinary figures: from the 3 billion of cans sold every
year to the 26 million fans on Facebook (also due to one of the best landing tabs
ever.

All marketing strategy such as- Which they did not hesitate to attack in the past,
straight and directly I would say! The TV commercial, a bit outworn, shows a
journalist who visits a Guaran plantation. Another commercial, made in 2006,
was playing hard by mentioning the link between the beverage and the Brazilian
country, dragging into the enemy of the all-times (at least regarding the football
fields): Diego Armando Maradona, living a nightmare because of an abuse of
consumption of the product. But, they did the best (specially for an international
target) by starting making stuffs on the internet. Recently they have made a
brilliant YouTube video: a well-made burlesque of the well known Parkour

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practice. The right tone, a balanced presence of the product and about 1 million
of (well-earned) views.

Products

GUARANA ANTARCTICA CAN 350 ML

Ingredients: Carbonated water, sugar, guarana
extract, citric acid, conservatives: sodium benzoate
and potassium sorbate, flavoring and coloring caramel
IV.

GUARAN ANTARCTICA ZERO LATA 350 ML

Ingredients: Carbonated water, guarana extract, citric
acid, sweeteners, aspartame (34,8mg / 100ml) and
acesulfame potassium (9,0mg / 100ml), Conservative
sodium benzoate, flavor , and color caramel IV -
GLUTEN-FREE - CONTAINS phenylalanine.

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They are of different size. We are
portraying some of them:

GUARANA ANTARCTICA 290ml returnable

GUARANA ANTARCTICA ZERO 290ml returnable

GUARANA ANTARCTICA 1L Returnable

GUARANA ANTARCTICA 237 ML

GUARANA ANTARCTICA 600ML

GUARANA ANTARCTICA ZERO 600ML

GUARANA ANTARCTICA ZERO 1.5L

GUARANA ANTARCTICA 1.5L

GUARANA ANTARCTICA 2L

The above mentioned products are good in their Quality

and taste. But the most unique one is given below-

GUARANA ANTARCTICA B.BLEND CAPSULE 41.7 ml

Ingredients: Sugar, guarana extract, citric acid,

conservatives: sodium benzoate and potassium sorbate,
flavoring, caramel color IV and dimethylpolysiloxane
defoamer.GLUTEN-FREE. (Guaran Antarctica, 2015)

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]Home-country constraints

Political- The politics of Brazil take place in a framework of a federal presidential

representative democratic republic, whereby the President is both head of state
and head of government, and of a multi-party system. The political and
administrative organization of Brazil comprises the federal government, the
states, the federal district and the municipalities.

The federal government exercises control over the central government and is
divided into three independent branches: executive, legislative and judicial.
Executive power is exercised by the President, advised by a cabinet. Legislative
power is vested upon the National Congress, a two-chamber legislature
comprising the Federal Senate and the Chamber of Deputies. Judicial power is
exercised by the judiciary, consisting of the Supreme Federal Court, the Superior
Court of Justice and other Superior Courts, the National Justice Council and the
Regional Federal Courts.

Due to a mix of proportional voting (the only first-past-the-post elections are for
the 1/3 of senate seats every 8 years and for mayors in small and medium-sized
cities every 4 years), the lack of election threshold and the cultural aspects of
Latin American caudillismo- coronelismo, party politics in Brazil tends to be highly
fragmented.

Legal- Contact information for legal professionals are available from UKTI Brazil.

Intellectual property

Brazil is a member of the World intellectual property (WPO). Its legal provisions
are generally consistent with international standards. A new trademark and
patent agreement law was enacted in Brazil in 1996. It follows international
standards established by the Trade related aspects of intellectual property
(TRIPS).

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Legal processes in Brazil can be time consuming and costly. The Brazilian tax year
starts in January and ends in December. There are a number of taxes in Brazil,
these include:

COF, a Social Security tax

STT, a state tax of 17 or 18%
PIS, income tax
ICMS, value added tax
IPI, excise tax. (GOV.UK, 2014)

Economic- Brazil has the world's ninth largest economy by nominal GDP, and the
fifth largest by purchasing power parity. The Brazilian economy is characterized by
moderately free markets and an inward-oriented economy.

Brazil's economy is the largest of Latin America and the second largest in the
Americas. From 2000 to 2012, Brazil was one of the fastest-growing major
economies in the world, with an average annual GDP growth rate of over 5%, with
its economy in 2012 surpassing that of the United Kingdom, temporarily making
Brazil the world's sixth largest economy. However, Brazil's economy growth
decelerated in 2013 and the country entered an ongoing recession in 2014.

According to the World Economic Forum, Brazil was the top country in upward
evolution of competitiveness in 2009, gaining eight positions among other
countries, overcoming Russia for the first time, and partially closing the
competitiveness gap with India and China among the BRIC economies. Important
steps taken since the 1990s toward fiscal sustainability, as well as measures taken
to liberalize and open the economy, have significantly boosted the country's
competitiveness fundamentals, providing a better environment for private-sector
development.

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Host country constraints-
Economic- Bangladesh has shown remarkable macroeconomic resilience, and its
economy has grown steadily over the past five years. Nonetheless, overall
entrepreneurial activity is disadvantaged by an uncertain regulatory environment,
poor infrastructure, and the absence of effective long-term institutional support
for private-sector development.

Economic Freedom Snapshot

2016 Economic Freedom Score: 53.3 (down 0.6 point)

Economic Freedom Status: Mostly Unfree
Global Ranking: 137th
Regional Ranking: 29th in the AsiaPacific Region
Notable Successes: Management of Public Finance
Concerns: Rule of Law and Open Markets
Overall Score Change Since 2012: +0.1

Economic development remains hampered by the fragile rule of law. Corruption

and marginal enforcement of property rights have driven people and enterprises
out of the formal sector. The governments inability to provide basic public goods
further limits opportunities for business development and job growth.

Politic: Sheikh Hasina was reelected prime minister in January 2014 in an election
marred by an opposition boycott. A year later, when anti-government
demonstrations and a transport blockade fueled violence that killed over 120, the
government jailed over 7,000 opposition members. In 2014, the tribunal set up to
investigate human rights violations committed during the 1971 war for
independence carried out death sentences against Islamist leaders.

Competitive: This product is highly competitive comparing to other products.

Other energy drinks will be its compititors. It has high profile to maintaing
consumers value. Black horse, Speed these are the compititors of this product.

Culture: It is really a better product due to the mixed culture of Bangladesh. The
ethnic people have more to choose. It goes with the new society where people
can have leisure time with it. It will add up a new taste to the convention of
friends groping.

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Compitition- There are many established soda companies in Bangladesh. These
can be its compititors,. Some of the compititors brand name are Speed, Tiger,
Power energy drink.

SWOT ANALYSIS
Strengths:

2nd biggest selling soft drink in Brazil 15th in the world.

Take advantage of AMBEV distribution network.
Unique, natural energy& taste.
Official sponsor of the Brazilian soccer team World Cup.

Weaknesses:

No brand awareness in Bangladesh.

Has introduced lot's of variations of the product how much longer left on
the PLO?

Opportunities:

Soft drinks market growing at a rate of 20%.

Demand for soft drinks is increasing.
Improve high customer satisfaction.

Threats:

Strong competitors.
Large number of local and international competitor increase.

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 Matching mix requirements defining and selecting
marking segments

Marketing mix-
Product- In these all products mentioned above we will launch only one product
that is energy drink in can. Brand name will be Guiana antactica. It will be
available in a can with required amount of energy drink. We are planning to serve
our products for adults. Its warranty will be for 6 to 9 month.

Price- Its price will be confirmed as 117tk including tax. Final price will be 150 tk
with profit

Promotion- Advertising policy will be in newspaper, tv add, online media such as

facebook page. We will use different Brazilian celebs such as Neymar and Ronald
as the main sponsor is brazil and football team. Football Neymar is their brand
ambassador so we can campaign through them. We can highly use the translated
version of Brazilian add in tv media.

Sales promotional-If someone buy one cage of energy drink of 16 cane then we
will give 400tk discount.

Distribution-This product will be distributed in urban cities where people can

have it more. All super shops like agora mina bazaar, shwopno will be our direct
channel.

Marketing segmentation-
Main consumers of soft drinks are 16-35.Target this market segment in terms of
satisfying the need of innovation, which characterizes generation Y. Aim to
interest those who are willing to try new products. Have an active interest in
sports (marketing campaigns).

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 Marketing plan development

Marketing plan development- Market has reached maturity. Industry leaders

have heavily invested in capacity. Growth rate went from 15% in 2011 to 10% in
2012

Market trends- Healthier beverages. Companies must differentiate themselves on

2 points-Quality and taste, marketing and branding.

Marketing field will expand. People will get to know more about this product and
will buy more.

Marketing strategy-Traditional advertising methods.Higher trends in sponsorship.

TV shows, football and product placement.

New marketing campaigns-

Social media- important method.

New interactive ways of connecting with consumers.
Facebook competition

Budgets-
This marketing business is a partnership based business. Here two partners as per
rules are Kamrul hasan shithil and Nafisa Ibrahim. It is an intimate marketing
corporation with legal approval.

We have a financial expecting budget which will be approved for our product
marketing. This are-

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DETAILS Amount
Initial investment = 40,00,000 TK
Fixed expense =30,00,000TK
Variable cost =20/unit
Purchase price =90 TK (1.15$ per can)
Selling price (90tk + 25%tax) =135 TK
+21%profit

Breakeven point = Fixed cost /(sealing price - variable cost)

=30,00,000 / (135-20)
=26,087units
Profit 26,087units
Price
INCOME STATEMENT: (First purchase amount)
Loss

DETAILS INCOME Quantity

Revenue 4,050,000 TK
(30000*135)
(-) Cost of goods 3,360,000 TK
sold(30000*112)
EBIT 690,000 TK

(-) TAX 25% 172,500 TK

Net income 517,500 TK

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 Implementation, evaluation and control

Objective- Our objective is to fulfill all the requirements related to consumer

need. We are launching this energy drink because we think it will improve its
stability. The outcomes will be expected as per our analysis. High profiling outlets
will be given because of definite people in their different position. Profitability will
be high or average in range as per their demand.

Standards- A published standard that establishes dimensional requirements for

standard sizes and types of various product is known as product standards. By this
sense it can be said our product standard is quite satisfactory. We have all the
technical requirements as per product basis. We have already gone through the
testing, grading and marking the product. Testing and grading was 8 in
countdown out of 10.The standard of product can define its requirements in
accordance with the principal demands of trade. Its standard has been published
by their manufacturers.

Assign responsibility- we are assigned here in order to marketing this product. It

is going through a partnership platform so duties will be assigned fitfully. We have
a group of some people with a motive of having a successful campaign.

Measure performance- The valid performance will measure according to

performances. Works will be divided accordingly and thus performances. It will be
a monthly activity which will show the reflective workout of individuals. They will
be paid according to their own performances.

Correct for error- After having all the maintenance if any faults come out that
should be corrected in a more positive way. But our attempt will be to have this
campaign without any errors.

The main policy to launch this product is to refrain from all availability. It has
something new to come out. We have full conventional license and permissions
to legalize our product marketing. All the agreements were made under full
legalized restrictions. We believe in natural products and make them to work the
best.

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References:

1. https://www.gov.uk/government/publications/exporting-to-
brazil/exporting-to-brazil (GOV.UK, 2014)
2. http://www.guaranaantarctica.com.br/blog/site/produtos(Guaran
Antarctica, 2015)

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