Acknowledgement

My acknowledgement begins by thanking my Supervisor Mr. Mahmudul Huq, who has provided
me with suggestions for making this Final Internship Report and also provided me with the
format for preparing this report. I would like to show my warm-hearted gratitude to the Brand
Marketing department of Akij Food and Beverage Ltd.; which has provided me with great deal
of information, adequate data and cooperated me for the accomplishment of this report
successfully. Finally, last but not the least, I would like to thank each and every Staffs of the
brand marketing section of Akij Food and Beverage Ltd. specially Mr. Md. Shafiqul Islam Tushar
(DGM), Mr. Sumit Chokrabarti (Brand Officer), Mr. Alaudin (Senior Brand Officer) for their kind
assistance regarding the report without whom it would not possible for me to complete this
difficult task, I got all necessary guidelines, cooperation, advice from them to complete this
complicated task. I am very much thankful to Akij Food and Beverage Ltd. its management,
especially employees of Brand Marketing for their cordial support to prepare this difficult study
with important information and data.

Sincerely,

Date :25th November 2019

Fatema Akter

1
 Executive Summary
The beverage industry in our country compiles various sorts of marketing aspects that significantly
enhanced my interest towards doing my internships report on the topic of “Reference Group Influence
on Purchase Decision Making of Soft Drinks: A Demographic Study Based on Clemon.” The objective of
this research is to measure the reference group influence on purchase decision making of soft drinks.
This research is descriptive in nature. To conduct this study the primary and secondary are used. My
research report initially provides a nominal idea of the beverage industry in our country. Then derailed
overview of AKIJ Group and also AKIJ Food & Beverage Ltd (AFBL), which is a venture of Akij group, is
presented. After the company descriptive part, analysis segment is incorporated. Starting with 4ps
analysis of AFBL, budgeting & sales forecasting, SWOT analysis. The current competitive culture in the
soft drinks industry leads the organization to the difficult situation to survive. Therefore, this study
enables the marketers to take appropriate decision about the consumers buying behavior. The sample
of 172 is determined through non-probability convenience sampling technique. Data is collected
through structured questionnaire and in-depth interview. Internet is also used for collecting secondary
data. The data is analyzed through different mathematical tools. Microsoft excels, Statistical Package for
Social Science (SPSS16.0) are used to analyzed the data.

This research found that consumers own personality is the most influencing factor to take a purchase
decision regarding the soft drinks’. Consumers collect information from those who know more about
soft drinks on the other hand they do not collect information from those who work in soft drink
Company. This research also found that celebrity and role model have less impact on the consumers to
choose a specific brand of soft drinks

2
CONTENT
SL Content Page No.

1 About AKIJ FOOD & BEVERAGE LTD 4

2 History 5
3 COMPANY BACKGROUND: PARENT COMPANY 6,7
OVERVIEW (AKIJ GROUP)
4 Mission ( Akij Group) 8

5 Organizational Structure (Akij Group) 8-9

6 The Company Akij Food And Beverage 9

7 Total Investment 9
8 Total Number Of Employee 10

9 Revenue Growth 10

10 Mission 11

11 Vission 11
12 Moral Ethics & Value 12

13 International Situation Analysis 12

14 Capabilities of AFBL 12
15 Financial 12

16 Human Resources 13
17 The Functional Department 13
18 The Following Department 14

19 The Product Description 14-16

20 Product Development Matrix 16

21 Price 17
22 Place 18-19
23 Promotion 20

Conclusion 21
24
25 Recommendation 22

3
About AKIJ FOOD & BEVERAGE LTD
Fast moving consumer goods (FMCG) are experiencing a successive growth in our country and
goods like beverages are in a flourishing state. Everyday thousands and thousands pieces of
beverage products are being consumed. And to meet the demand and diversified taste, local as
well as foreign companies are immerging and investing in this venture. Many local companies
and foreign franchises have developed an extreme competitive environment in the beverage
market. The beverage market is basically a compilation of wide range of mineral products with
certain attributed affixed with it. The major product categories that are the core determinants
of our market are enlisted below:

1. Carbonated Soft Drink (CSD)

2. Mineral water
3. Fruit Juice
4. Energy Drink
5. Flavored water
6. Flavored water

The entire beverage market in our country experienced an annual growth of 6% in 2008 and the
projected growth this year is close to 10%.

These entire product segments mentioned before, plays a vital role in our beverage market and
the percentile breakdown of the market share of each of the product categories are graphically
shown below:

Beverage manufacturing company AKIJ FOOD & BEVERAGE LTD, and within this period I got
exposed to the entire functioning of how a beverage company operates in the market

4
History

Enlightening the past history of the business world in Bangladesh, AKIJ GROUP OF INDUSTRIES
is considered to be one of most profound and aged industries that is still sustaining with great
success and prosperity. It was more than fifty years ago the company emerged into the market,
and it was as small-time jute traders.

Entrepreneur, Founder and life time Chairman Late Mr. Sheikh AkijUddin then initiated the
business in 1950s with a single product of cigarette naming Akij Biri. This brand is one of the
biggest and well known units of Akij Group and it is considered to be one of the oldest and most
well-known products across the country and in the few international market as well. Then in
the late 70s Dhaka Tobacco Industries came to the fold of Akij Group when government
decided to disinvest and hand over the factory to the private sector from the nationalized
sector. It was the first booming stage of Akij Group and from then onwards this entity
diversified its business in various product line and engrave the peak of success.

From such small beginnings, it has expanded into one of the top corporations in Bangladesh,
and not only in size. Akij Group is proud of its infallible quality and excellent service by valuing
its consumers as unique individuals and trying best to provide merchandise to suit the needs of
each distinct consumer group. AKIJ group has never limited its aims to profit making. Besides
playing a part in developing the country commercially, it has also worked hard to preserve its
environment and culture. The company is proud to say that the word wastage means little to
them; all their factories have been constructed with recycling and the environment in mind.
The non-profit making concerns of the Group are involved directly in sustaining the progress of
Bangladesh. A large number of people are employed by them, and cared for as members of the
AKIJ family.

5
 COMPANY BACKGROUND: PARENT COMPANY OVERVIEW
(AKIJ GROUP)
Name of the Company Product Year of the Establishment

01. Akij BIDI Factory Ltd. Hand Made Cigarettes 1950

02. Akij Transport Agency Ltd. Transport 1950

03. SAF Industries Ltd. Crust & finished Leather 1960

04. Dhaka Tobacco Industries Ltd. Cigarettes 1966

05. Akij Printing & Packages Ltd. Printing & Packaging factory 1974

06. Dhaka Tobacco Industries Leaf Processing Plant. Tobacco Leaf Processing Plant 1981

07. Akij Corporation Ltd. Trading House 1983

08. Akij Housing Ltd. Housing 1987

09. Akij Match factory Ltd. Match 1992

10. Akij Jute Mills Ltd. Jute Yarn & Twine 1994

11. Akij Cement Company Ltd. Cement 1995

12. Akij Textile Mills Ltd. Cotton Yarn 1995

13. Akij Pharmaceuticals Ltd. Medicine 1996

14. Akij Particle Board Mills Ltd. Particle & Hardboard 1996

15. Akij Computer Ltd. Hardware & Software 1997

16. Sonar Bangla Cement Ltd. Cement 1998

17. Akij Online Ltd. Internet Service Provider 2000

18. Akij Food & beverage Ltd. Food & beverage 2006

19. AkijZarda Factory Ltd. Flavoured Chewing Tobacco 2000

20. Nebula Ink Ltd. Ink 2001

21. Akij Institute of Technology Ltd. IT Education & Training 2001

6
22. Savar Industries (Pvt.) Ltd. 2001

23. Afil Toiletries Ltd. Toiletries 2003

24 Akij Power Ltd. CNG 2008

25 Akij Poly Fibre Ind. Ltd. Poly Fibre 2008

26. Addin Hospital Health care

27. Akij Securities share broker house 2008

Each of the ventures of AKIJ Group is entitled to be profitable and this aspect makes them
extremely financially strong in the market. Among all the ventures or units of Akij Group, Dhaka
tobacco

7
Mission (Akij Group)
Core mission: Reaching escalating heights in Bangladesh and beyond.
AKIJ GROUP is committed to provide the best product/service quality to their targeted
consumers and this commitment enhances them to accomplish their goal. Consumer
satisfaction from their quality products is one of their major goals and thus sustainable product
quality is the key concern of this company.

The 4ps of Product, Price, Place, and Promotion are subjected to their mission and to execute
and coordinate them properly in order to sustain and enhance consumer satisfaction and also
encounter proper profitability.

Organizational Structure (Akij Group) :

Head office of Akij group is compiled in two multistoried building naming AKIJ Chamber &Mofiz
Chamber situated in 73 Dilkusha C/A & 75 Dilkusha C/A, Motijheel, Dhaka. Business operations
of all the companies are conducted in these two 12 floor and 8 floor corporate houses. Akij
Group maintains a mechanistic organizational structure where bureaucratic environment
prevails in the work place. Decision making processes are very centralized towards the directors
and top-level

Chairman

Managing Director

Director Director Director

Assistant Assistant Assistant

General General General

8
Each of the companies has its own directors who are the offspring of Late Mr. Sheikh AkijUddin.
And for each company there is assistant director and general manger accountable to the
respective directors for their operations. Are followings department..

1. Finance &Accounts Dept 2. Audit Dept 3. Administration Dept 4. Human resource (HR)
Dept 5. Purchase Dept 6.Import & Export Dept 7. Ad & Creative Dept 8. IT Dept 9.
Transport Dept

Are common for each of the enlisted twenty-seven companies and each department has
individual sub-units working separately for all the companies. With all these, Akij Group has
turn out to be a gigantic industry which compiles varies category of business and are raging
success towards every sector. Lately Akij Group has captivated a huge venture in the beverage
market of Bangladesh and has entered in the market with the name AKIJ Food and Beverage
Limited (AFBL).

The company Akij Food &Beveargae Ltd (AFBL)

a unit of Akij group, came into business in year 2006. It incorporates manufacturing of variety
sort of snack and beverage products and selling them to the local market as well as some of the
international market. AFBL was a project of TK-450 crore (appox) and the investment was being
made by the parent company Akij Group itself, no financial outsourcing was made. And any
further investment needed will be supported by the parent company as well. Since the invasion
of AFBL, the company is using its strong resources continuously to provide various ranges of
products in different product lines to its customers.

Total investment:
Tk. 4.5 billion/450 Crore (approx)

Turnover (revenue) in a year:

Tk 100 crore (approx)(heigly confidential)

9
Total number of employees: 338 approx
1. Sales & Marketing: 180 employees (approx)

2. Factory personnel: 158 employees (approx)

Employees of the Departments of Finance & Accounts, Audit, Administration, Human resource
(HR), Purchase, Import & Export, Ad & Creative, IT, Transport are NOT included in the 338 total
employee list. Employees in these departments work for AFBL but they are considered to be
the employees of AKIJ Group in their respective departments and all their salaries and benefits
are disbursed as per Akij Group’s notion not from AFBL.

Revenue growth graph:

10
 1. Sale revenue in year 2006 was Tk.481.4 million/ Tk.48.14 Crore (approx)
2. Sale revenue in year 2007 was Tk.907.6 million/ Tk.90.76 Crore (approx)
3. Sales Growth rate (2007): 88.5%
4. Sale revenue in year 2008 was Tk.1612.1 million/ Tk.161.21 Crore (approx)
5. Sales Growth rate (2008): 77.6%
6. Sales revenue from Jan2009 to June2009 is Tk.1282.6 million/ Tk.128.26 Crore (appox)
already. If forecasted sale for the other half year of 2009 is double the sale of the first
half then total revenue for 2009 stand to be Tk.2565.2 million/ Tk.256.52 Crore
(approx). Then expected Sales Growth (2009) rate would be: 60% approx.

Mission:
To be the market leader in quality food & beverage sector discovering & satisfying the desire &
need of the community working in harmony with our customers, employees and business
partners.

Vision:
To be the leading food & Beverage brands excelling in product quality, social, technical &
marketing creativity; and service to our customers through the skills and cordial commitment of
our employees.

According to Late Mr. Sheikh AkijUddin regarding AKIJ Food and Beverage Limited (AFBL), “We
will manufacture and introduce those high quality products in the market that we ourselves and
our family will always use; we will NOT just produce products for the consumers in the market
and let our family consume other foreign produc

11
Morale, Ethics & Values:
1. Believing in quality and excellence in service
2. Believing open communication, personal responsibilities, integrity, and active
participation
3. Supporting the creative diversity and share of ideas
4. Building culture of learning based on leadership, teamwork, accountability, and co-
operation.

Internal Situation Analysis

Capabilities of AFBL
Factory & Machinery: Factory of Akij Food & beverage Ltd has been established in a beautiful
site at Krishnapur, Dhamrai Dhaka. It has come with one of the best food & beverage industry
in Bangladesh. All the machineries are being imported from two international well reputed
companies in Germany naming The KronesGroup, headquartered in Neutraubling,
Germany&Ningbo Sipa Safety Equipment Co., Ltd. All the machineries are fully automatic and
digitally controlled. Such high-tech production plants that is sensible to reject products itself
that fails to meet standard level that has been set. In total there are only six companies in the
sub-continent using such sophisticated machineries to manufacture CSD products, and among
those companies AFBL is one of them. This factor reflects the quality of the factory and the
machineries which in turn reflects the quality standard of the products of AFBL. For any
technical breakdown highly experienced and trained engineers are there to serve round the
clock.

Financial:
AFBL has a strong financial background as because 100% of its financial back up is being
provided by the parent company AKIJ GROUP. All the initial investments regarding the
establishment of the company, its products and even for the marketing purpose, the parent
company provided full support. No financial out-sourcing such as debt or bank loan was being
made by AFBL. Because of such strong financial back up, huge marketing activities, promotional
campaigns were been possible for its products to strongly compete with its competitors. And
now after three years of operation the company is solvent enough to finance its promotional
activities by itself but if furthermore huge investments are required then AKIJ GROUP is always
there to provide full flagged support.

12
Human resource:
AFBL believes that their teamwork is their greatest asset. Useful contributions made by each
individual bring them much closer to their goals. AFBL made up of a group of passionate
individuals, uniquely qualified from diverse disciplines but working towards their vision. AFBL
ensures that their employees are provided with:

1. A friendly and supportive environment that encourages their people to develop their
potentials to an optimal level.
2. A true quality of professionalism that can be found in all world-class multinational
companies
3. Team oriented professionals, who contribute to the greater whole of the organization
through their participation in decision making situations.

Functional Departments
From the production till the selling of the AFBL’s products, several departments work interconnected
and they are outlined below:

1. Production dept: This department handles the entire production process of AFBL’s
products
2. Marketing Dept: This department is divided into four categories
3. Brand Dept: Develops the marketing and promotional strategies for AFBL’s products and
executes them.
4. Sales Dept: Forecast, Pursue, Co-ordinate & Monitor the entire nation wide sales of
AFBL’s products.
5. Sales-force Training Dept: Trains, pursue to work, motivates & monitors the sales force
working in the field for AFBL.
6. Distribution Dept: Distributes accordingly the final products from the factory to the
entire country’s individual distribution points from where products of AFBL are being
sold to the retail outlets.

13
The following departments:
Finance & Accounts, Audit, Administration, Human resource (HR), Purchase, Import & Export,
Ad & Creative, IT & Transport of AKIJ

GROUP conducts the department operation for AFBL to carry out and complete the
departmental portfolio of Akij Food & Beverage Ltd

Product Description:
Raw materials for the Carbonated Soft Drink (CSD), Energy drink and Malt Beverage products
are import from following Germany Companies:

1. WILD GmbH & Co. KG (Eppelheim, Germany

2. Für Manish GmbH &Co. KG Ltd 
3. IFF International Flavors & Fragrance Inc. (Hamgurg, Germany)

Raw materials for the juice (Pulp) and snack products (Potato & Masala) are imported from
Germany & India. Dairy products are completely home made using Bangladeshi raw materials.
Most of the AFBL’s product design, development format, and ingredient are being provided by
the Germany company “The KronesGroup GmbH &Co”.

Derailed description of products is provided below:

MOJO
MOJO is a carbonated soft drink (CSD) in cola flavor. The packaging of the product is very
attractive because of its color combination which is majority red and the art design printed on
the bottle and can. AFBL is the first company to introduce full slive bottle packaging and this
makes its product more attractive than other competing brands. All the bottle and can are
made of high quality plastic and steel respectively and thus they are very handy, portable and
easy to dispose. MOJO was launched in 14th April 2006 and since then the product is well
accepted by its customer and has profoundly attain a good market share. Very soon MOJO light
will be launched in the market to captivate the segment of diet cola drink.

LEMU
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LEMU is a carbonated soft drink (CSD) in cloudy lemon flavor. The packaging is full slive and
very attractive. The product was launched in 14th April 2006.

CLEMON
CLEMON is a carbonated soft drink (CSD) in clear lemon flavor. The packaging is full slive and
very attractive. The product was launched in October 2007. The ingredient of Clemon is
provided in APPENDIX-A

SPEED
SPEED is an energy drink that was launched in 14th April 2006 by AFBL and since from then, the
brand could not capture consumer attraction and could avail only a very small amount of
market share of energy drink. Then in 2009, Speed was re-launched by changing the product’s
packaging but keeping the ingredient intact. The re-launch turn out to be very successful and
now the brands withholds the second biggest market share.

WILD BREW
Wild Brew is non-alcoholic malt beverage in which the primary ingredient is barley, which has
been allowed to sprout ("malt") slightly before it is processed. The product has been launched
by AFBL in November 2008. The category of the product is slow in our Bangladeshi market and
captivates only 1% of our entire beverage industry.

FRUTIKA
FRUTIKA is a brand for juice product that is available in four different flavors.  FRUTIKA Mango
 FRUTIKA Grape  FRUTIKA Red orange  FRUTIKA Mixed fruit

The products were launched in August 2008, and since the entrance in the market Frutika
captivated a large share in the market because of its taste, packaging and unique promotional
activation. The ingredient of the all types of Frutika is provided in APPENDIX-A

SPA
SPA is a mineral water that was launched by AFBL in April 2007. The product’s full slive
packaging makes it very attractive. The unique marketing communication and the products look
assist it to make a moderate market share. The ingredient of the all types of Frutika is provided
in APPENDIX-A

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FARM FRESH
The brand FARM FRESH denotes dairy products of UHT milk and Pasteurized milk. The brand
entered in the market in September 2007. The ingredients of the products are provided in
APPENDIX-A.

Product Development Matrix

Product development matrix is a tool to analyze in which market with which category of
product, a company has penetrated

Product Development Matrix Current Product New Product

Current Market Market Penetration Company Product Development

combating with the current Introduced new product in the
product in the current market current market

New Market Market DevelopmentSlanting Diversification

the current product into a new Sense of innovation, by
arena/market developing new product for a
new market

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As per AFBL’s brand portfolio, the assortment of the brands in respect to the product
development matrix is provided below

PDM Brands

Product Development  MOJO

 LEMU
 CLEMON
 SPEED
 FRUTIKA
 SPA

Diversification Diversification  WILD BREW 

FARM FRESH (UHT Milk

Most of the AFBL’s new products have been developed and launched in the current beverage
market, with no market development made. But for the new products Wild Brew & Farm Fresh,
new market of non-alcoholic malt beverage and UHT milk was developed.

Price:
Pricing is one of the crucial aspects of a products destiny to success and failure. There are many
different methods of pricing a company can employ. But the main scrutiny is to strategically set
the pricing that facilitates the company and the product as well. Various sorts of pricing
methods are

1. Competition-based pricing

2. Cost-plus pricing

3. Creaming or skimming

4. Limit pricing

5 .Loss leader

17
 6. Market-oriented pricing

7. Penetration pricing

8. Price discrimination

9. Premium pricing

10. Predatory pricing

11. Contribution margin-based pricing

12. Psychological pricing

13. Dynamic pricing

14. Price leadership

15. Target pricing

16. Absorption pricing

17. Marginal-cost pricing

In the beverage industry of Bangladesh, people are quite pricing sensitive and thus prices of
almost all the competing products are same. AFBL does its products pricing in three steps.

Place:
Place means that pattern of distribution channel a company employs to make its products
available to the final consumer. AKIJ GROUP OF INDUSTRIES is considered to have one the best
distribution channel around the country. This profound distribution channel was specially been
made to make their cigarette products available to the consumer in each and every part
Bangladesh. AFBL inherited the advantage and was been able use the wide network distribution
channel to promote and provide its products in each and every niche across the country. The
distribution channel AFBL employs is called Dual Distribution Channel (DDC). In DDC, a company
itself distributes the products and also incorporates large number distributes, who are
individuals entities, to distributes the products to the final user. The graphical presentation of
the ABFL’s DDC is shown below:

18
Products from AFBL’s factory are stored in the ware house situated in various parts of
Bangladesh. For Dhaka, the ware house is at Tejgaon industrial area. Then the distribution dept
at AFBL allocates the products to the distributors around the country. After the products are
delivered from the ware house or factory to the distribution point, the distributing companies
accordingly distribute them among the retailers to be sold to the final consumer. The
distribution companies are individual entities who are considered to be the business partners of
AFBL. Apart from this channel, AFBL has its own distributing wing established in some part of
Bangladesh to make the products available to its customer. But where there is the
establishment of AFBL’s distributing wing, other distribution companies are NOT employed. This
is because two channel in the same distribution point will create channel conflict that will intern
effect the products selling and availability. AFBL solely do not want to depend on the
distributors thus they have established Dual distribution channel.

19
Promotion: It is one of the most important facet of a company which it has to nourish
in a very proper way to achieve optimum outcome. AFBL values the importance of promotion,
because it believes no matter how high-quality, good taste, attractive packaging the product
avails, it has to be properly communicated to the customer to pursue the final purchase. And to
properly communicate the product with the customer, AFBL has a well structured Marketing
Dept who are capable of developing projected strategic marketing plans.

Strength: Weakness
1. Quick establishment of brands 1. Less experience in the
like MOJO, SPEED,FRUTIKA. beverage market in terms
2. Quality of the products. of understanding in timely
3. Availability of products through proper customer need.
mass distribution around the 2.
country. 3.  Some improper
4 High quality machineries and promotional activities.
manufacturing system of AFBL. 4.
5 Unique promotional activities. 5.  Being new in the market
6 Full Slive-Packaging in terms of AFBL considers a weakness
color combination and design. in the entire supply-chain-
7 Potable in terms of 150ml and management.
250ml bottle and can

Opportunity Threat

1. Huge profitability scope in 1.  Unethical practice of the

beverage market of competitors, for example
Bangladesh because a tax violation, to reduce the
sustainable growth of 6% price of the product.
prevails in the market. 2. Companies like Coca-Cola
2. There is a scope for the and Pepsi to be operated
local companies to as MNCs like Unilevel
attaining maximum market rather than the licensing
share for the refreshing owned by the local
flavored CSD drink. Bangladeshi company.
3. Opportunity for AFBL 3. Any new company
products to be exported in introducing unique
the overseas Asian market flavored refreshing drinks
and having huge financial
capabilities

20
Conclusion:
In the highly competitive FMCG industry the consumers play the main role. In marketing
consumers are the kings of industry. In this study researcher find out the consumers’ insight
and the pattern pressure the reference group exert on the consumers to buy a soft drinks. In
the soft drinks industry it seems that marketers in different soft drink companies take
innovative strategy to cope with the dynamic consumers.

Different marketing researches are made by the company to gather knowledge about the
consumers. And take step(s) to achieve their mission.

This study is conducted for the purpose of generating knowledge about reference group
influence on purchase decision making of soft drinks. Different factors that play great roles on
consumers to choose a soft drink to buy are discovered in this study. Marketer can take
necessary steps that I recommended in this study.

It is found that not all the factors studied in this study have the same power to influence the
consumers. And at the same time different consumers consider different factors in different
way. So marketers need to choose those variables that influence all the consumers in different
scale.

21
Recommendations:
As it is difficult for marketers to take courses of action regarding the customers base on their
behavior, marketers need to be aware that not all the customers behave in the same way.
Different customers behave in different way even the same actions are taken.

The marketers need to take some promotional strategies such as –advertising through different
media- that inform the consumers that their personality is match with the specific brand. As if
customers consider the brand as their preferred brand.

In marketing strategy marketers need to focus on the influence of others - this study advised-
that is marketers should show the target customers that others from which they are influenced
also value specific brands. As a result the consumers may fell for the brand.

As the consumers collect different information from different groups the marketers need to
ensure that the information about product and brand is delivered rightly to those who provide
information to the consumers. This may be done through an appropriate communication
strategy which may advertise in television, radio, newspaper etc.

Marketers also need to focus on that information that the consumers collect from others those
are: taste related, brand and hygiene related information. That means in the communication
strategy these sectors should include communicating with the consumers.

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