Andreas Brolund - Beverage Bag Dispensers

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Uglevej 7, 4.t.h København NV 2400 Denmark Niels Brock - Main Thesis – Beverage Bag Dispensers Andreas Brolund 2x4u What procedures and challenges must be overcome to successfully launch beverage bag dispensers into the Zambian market? Based on Zambian Breweries PLC internship CARLOS SALAS LIND CONFIDENTIAL Summer 16/05/2012

Transcript of Andreas Brolund - Beverage Bag Dispensers

Page 1: Andreas Brolund - Beverage Bag Dispensers

U g l e v e j 7 , 4 . t . h K ø b e n h a v n N V 2 4 0 0 D e n m a r k

Niels Brock - Main Thesis – Beverage Bag DispensersAndreasBrolund2x4uWhatproceduresandchallengesmustbeovercometosuccessfullylaunchbeveragebagdispensersintotheZambianmarket?BasedonZambianBreweriesPLCinternshipCARLOSSALASLINDCONFIDENTIAL

Summer 16/05/2012

08Fall

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ExecutiveSummary

Zambia has been growing economically at a steady rate, making it a very

attractive place for foreign investment. With an average growth rate of 5.1

percent and economic incentives created to further boost investor confidence,

Zambiaisamarketwithmanyopportunities.

Through an understanding into themarket dynamics of the beverage industry

gained during my work placement at Zambian Breweries Plc., a subsidiary of

SABMiller, Ihavegained insight intopotential targetgroupsofpeople thatare

not exploited by any businesses in Zambia. By creating the company Brolund

Solutions, I will be able provide an innovative Beverage Solution by using

beveragebagdispensers.

Beverage bag dispensers are a mobile keg that is able to keep liquid cold or

warmforupto4hoursanddispensethebeverageintoreusablecups.Theyare

alsousedforbrandingduetotheirelevatedbodyandflagforeasysighting.They

areaprovensuccessinEuropeanmarkets,mostnotablywithpublicgatherings

such as football games at a stadium.Thebag increasesprofits by sellingmore

drinkswhileimprovingcustomersatisfaction.

Duetothesupplyofbeveragesbeinglimitedtolocalproducersthatcansupply

kegs, a market analysis was done to select the best soft drinks and beers.

Zambian Breweries Plc., is themarket leader for local beer and producers for

Cola-ColainZambiamakingtheirproductstherightchoice.ThisisduetoCoca-

Cola dominating the market share for soft drinks and Mosi and Castle lager

dominatingthebeercategory.

Inordertosecuretherightstobetheofficialbeverageselleratfootballgames,

the benefits of the products must be highlited to the Ministry of Sport and

FootballassociationofZambia.Theenvironmentallyfriendlycupsandincreased

safety due to few people crowing at barswill be presented to them alongside

withtheincreasedcustomersatisfaction.

Themain regions of Zambia that ZambiaBreweries usewill be geographically

targeted.TheseareLusakaandtheCopperbeltprimarilyduetolocalproduction

ofdrinksandfootballinfrastructure.Nothern,SouthernandCentralwillalsobe

targetedduetotheirlargepopulations.

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Thetargetagegroupswillbecrossoverasbeerdrinkersalsodrinksoftdrinks.

Both targetgroups fit into thegeneral targetgroupofyoungpeople that is the

highestproportionofthepopulation,theworkingclassincluded.

Through registering the company, Brolund Solutions at PACRA for DKK 500,

investing in equipment worth DKK 14 000, and agreeing with Zambian

Breweries&theMinistryofSport,3businessmodelscanbeexploitedtoposition

BrolundSolutionsastheleaderforbeveragesolutionsthroughtheBeverageBag

Dispenser.

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TableofContentsExecutiveSummary...........................................................................................................2Problemformulation........................................................................................................5

Introduction........................................................................................................................6Methodology........................................................................................................................6

StatisticsandDataCollection........................................................................................7

FlowChart............................................................................................................................8CHAPTER1...........................................................................................................................9PESTELANALYSIS-ZAMBIA....................................................................................................9Political.........................................................................................................................................................9EconomicEnvironment.........................................................................................................................9SocialEnvironment..............................................................................................................................12TechnologicalEnvironment..............................................................................................................12Environment............................................................................................................................................13LegalEnvironment...............................................................................................................................13VendingLaws..........................................................................................................................................15

Chapter2...........................................................................................................................16BeverageBagDispensersinothermarkets....................................................................16EuropeanMarketAnalysis...................................................................................................17

Chapter3...........................................................................................................................19TheZambianBeverageMarket...........................................................................................19Softdrinks................................................................................................................................................19

MarketShareAnalysis...........................................................................................................23SoftDrinkBrandAnalysis.....................................................................................................25TheProduct...............................................................................................................................26Beer(clear)................................................................................................................................28MarketShareAnalysis...........................................................................................................28BeerBrandAnalysis...............................................................................................................29MarketSegmentation.............................................................................................................33GeographicTargetGroup......................................................................................................34TargetAgeGroup.....................................................................................................................36TargetGroup.............................................................................................................................37Strategy.......................................................................................................................................38BeverageBagsCompetitiveadvantage............................................................................39BusinessModel.........................................................................................................................41TheBudget.................................................................................................................................42Implementation........................................................................................................................44

Conclusion.........................................................................................................................46

Appendix............................................................................................................................49

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Problemformulation Whatproceduresandchallengesmustbeovercometosuccessfullylaunchbeverage

bagdispensersintotheZambianmarket?

Subquestions

• WhatchallengescouldbefacedinlaunchingtheBeverageBagdispenser

inZambia(PartA)?

• Howarebeveragebagdispenserscurrentlydoinginothermarkets?(Part

B)

• Whatisthebeveragebagdispenser’scompetitiveadvantagethatcouldbe

usedandhowcanitbepositionedintheZambianMarket(PartC)?

The context of this problem formulation is I am planning to open my first

businesssoon inZambia.Afterseeingthisproductused inGermanyatamusic

festival,IhavewantedtobringthisproducttheZambia,whereIgrewup.

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Introduction Zambiaisadevelopingcountryexperiencinghighlevelsofeconomicgrowthand

is on the path to becoming an emerging market. As the country continues to

grow,publicgatheringeventssuchasmusicfestivals,sportingeventsareonthe

rise.EspeciallynowthatZambia,arethecurrentAfricanFootballchampionsand

aresettohosttheAfricanCupofNationstournamentinthenewlydesigned,high

capacityfootballstadiums.

HappyCustomers,GrowingProfits!

With beverage bag dispensers, you now have the power to make public

gatheringsyournewstorefrontwithmobilevendingproductsfromtheBeverage

Bag Dispenser and Cup-Service. The full line of environmentally friendly Cup-

Serviceproductsletsyouandyourstaffstakehotorcoldrefreshmentsi.e.beer,

coffee, and soda directly to the customer. Mobile vending products like the

BeverageBagDispenserarethetoolsyouneedtogeneratesalesandprofitthat

youwouldotherwisemissduetocongestedlinesatbarsorvariousevents.

Methodology

Chapter 1will be investigatingpartAof theproblem formulation. Inorder to

answer what challenges launching the beverage bag dispenser could face in

Zambia,Iwillcarryoutanexternalmarketingauditthroughapestleanalysis.I

willalsouseporter’sfiveforcestoanalysetheZambianmarket,asIwillsetupa

company.IwillalsolookatthelegalaspectsofusingtheBeverageBagdispenser

inZambia.

Chapter2willinvestigatepartBoftheproblemformulation.Inordertoanswer

howtheBeveragebagdispensersaredoinginothermarkets,Iwillcarryoutan

analysisofthemarketingmixinselectedEuropean/Americanmarkets(product,

place,promotion,andprice).

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Chapter 3will focusonpartCof theproblemformulation. Inorder toanswer

whatthecompetitiveadvantageandpositioningshouldbe,Iwillinvestigatethe

strengthsandweaknesses(SWOTanalysis)oftheproduct.Thischapterwillalso

beusedtoanalysethepreviouschapters,astheywillassistmeinpositioningthe

product on the ZambianMarket and identifyingwhere on the Ansoff’s growth

matrix my company would be placed. To get a full understanding of the

positioning, I will do a product mix, product positioning and standardization

versus adaptation. Alongside with all this, I will analysis the competitive

landscape and select a target market through market segmentation. After the

targetmarketisidentified,Iwillselectanidealstrategytouse.

IwillalsomakeabudgetfortheentirelaunchinZambia.

StatisticsandDataCollection

Iwillprimarilybeusingcourse literatureusingvarioustheoriesandmodelsto

help explain our findings. We will be using the Internet as a source to find

information such as articles and annual reports on beverage vending and the

environmental impact of the re-usable cup service. ZambianBreweriesPlchas

provideddataforthebeveragemarketanalysisinZambia.ThisDataisgathered

and analysed by two external advanced marketing research companies,

Nielsons1and Frontlines2. This data is strictly confidential and is intended for

myresearchonly.Theresponsiblepartieshavebeen informedthat thisdata is

forstudentresearchonly.

1(TheNielsonsCompany,2006)2(FrontlineMarketResearch,2010)

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FlowChart

1

•  Is Zambia suitable for Beverage Bag Dispensers? •  PESTEL •  Entry Modes •  Legal Issues

2

•  How attractive are Beverage Bad Dispensers in other markets?

•  Marketing Mix Europe/America

3

•  SWOT Analysis •  Porters Five Forces •  Competitors in the Zambian market •  Market Segmentation •  Postioning & Marketing Mix

4

•  Strategy to implement •  Ansoff Matrix •  Budget

5

•  Recommendations •  Conclusion

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CHAPTER1

PESTEL ANALYSIS - ZAMBIA

Political

Zambia is a constitutional democracy with a peaceful, stable multi party

environment,which is anchored on the rule of lawwith distinct separation of

powers between the executive, legislature and judiciary3. The press and the

judiciary system are run independently alongside a strong civil society. These

political characteristics provide a stable environment for investors to conduct

businesswiththesecurityandconfidencetheyneed.AsZambiahasconsistently

continuedonapathofpoliticalfreedomandremainedpeaceful,ithasbecomea

relativelypredictableenvironmentforinvestorstodobusinessin.Thishasmade

it easy for agencies like the Zambia Development Agency to promote broad

basedinvestments,tradeandexports4.

Previousgovernmentshavebeenverysupportiveofbusinessastheyundertook

anumberofreformsthatwereaimedatimprovingtheinvestmentandbusiness

environment in Zambia. One of themost prominent of these reformswas the

Private Sector Development Programme (PSDP) and strategic Action Initiative

for Economic Development (SAIED), commonly referred to as the Triangle of

Hope (ToH). The extent of how successful this reform has been is still been

measured up to today but the progress is clear in progressive state of the

economicenvironment.

Economic Environment

The economic climate in Zambia has been improving tremendously and

continuestomoveinthisdirection.From1999to2008,Zambia’seconomyhas

3(ZambiaDevelopmentAgency,2009)4(ZambiaDevelopmentAgency,2009)

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experiencedpositivegrowthandverystablemacroeconomicsurroundings.Real

gross domestic product (GDP) has averaged 5.1% per annum between 2001-

2007. 5 Other important macroeconomic detectors such interest rates and

inflation has also gainedmuch ground in the recent years, as their downward

trendhasincreased.Forover30years,inflationlevelshaveneverbeenthislow.

Inflationdeclinedtosingledigitsfrom18.7%in2001to8.9%in20076.In2008,

inflationmovedupwards,butthiswasmostlyduetothefinancialcrisisasithas

stabilized since. The rates for borrowing more have also declined from an

averageof54.6%in2001to26.9%in2008.Exchangerateshavebeenimproving

while also been relatively stable. This stability is really good as it allows a

business to predict the future more accurately. Such stability is connected

directly linked to the implementation of various monetary policies and fiscal

measureattherightstimes,improvinginvestor’sconfidenceinZambia.

Zambiaisandcontinuestobeafreemarketeconomyandpavethewayforother

economies.FurthermoreZambiahasbecomemorerecognizedasoneofthemost

liberalized economies, not only in the sub region (SouthernAfrica) but also in

Africaasawhole. Investors inZambiaareallowed to repatriate100%of their

netprofitsduetoZambiahavingnoforeignexchangecontrolswhilealsobeing

offered fiscal incentives. This makes Zambia a very attractive investment

opportunity.

Infrastructure in Zambiawill also be crucial to Beverage bag dispensers been

successful inZambiaaspublicgatheringswillbeprime locations for launching

outproduct.Zambia’sinfrastructureisveryunderdevelopedbutismovinginthe

rightdirection.Thegovernmentiscommittedtoimprovingtheinfrastructurein

remote areas of the country in order to increase the potential investment

opportunitiesthatcanbetappedoutwithbusinesscreation.Theinfrastructure

for sport in Zambia is making great headway. Zambian culture is closely

associatedwithsport,particularlyfootball,thegovernmenthastakengreatsteps

to develop this sector. They have partnered with the Chinese government to

5(ZambiaDevelopmentAgency,2009)6(ZambiaDevelopmentAgency,2009)

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restore several current stadiumsandbuild3newhighcapacity stadiums.This

comesatatimewhenZambiahasalsojustwontheAfricaCupofNations,making

themtheAfricanChampionsofFootball.Thishascreatedagreatatmospherein

Zambia due to the fashion inwhich theywon the competitionmaking football

stadiumsaprimetargetforbeveragebagdispenserstobeusedduringfootball

games and other events held at these stadiums. From an institutional analysis

view,thisisaperfecttimetoaddmyproducttothesportingsectorasfootballis

onthehighriseinZambia.

RegionalEconomicComparison

Referring to Chart A7in the Appendix, when you compare Zambia to other

countries in the region, youget abetter imageofhowwell Zambia isdoing in

various economic indices. For example, Zambia claims to have a good GDP

growthrateof6.2%whenneighboringAngolahasarateof21.1%.Althoughthis

showsZambiatobefarlesssuperiortoAngolaandafewothercountries,Zambia

scoresrelativelywellon theeaseofdoingbusinessscale in theregion.Zambia

was ranked at 101 out of 181 countries, only to be beaten by Botswana and

Namibia.Thisisencouragingformeasaprospectiveinvestorasothercountries

withhigherGDPgrowthlikeCongoandAngolaarenoteasiertooperatemaking

ZambiaamorestableandattractivemarketwithrelativelygoodGDPgrowth.To

Backthisfactup,Zambiascores1stontheForeignDirectInvestmentinflowwith

USD984millionin2007followedbyNamibiawithUSD797millionshowingthat

investorsarepickingZambia8.

CostofdoingBusinessinZambia

Referring to Chart B9on company registration when starting a business in

Zambia,youcanseetheproceduresandfeesassociatedwiththis.Allcompanies

mustberegisteredatthePatentsandCompaniesregistrationAgency(PACRA).I

would need to register a private company with a minimum nominal capital

7WorldEconomicForum,WorldBank,IMF,UNCTAD,MinistryofFinance&NationalPlanning–WorldBankSurveyconductedin2008.8UNCTAD20089(ZambiaDevelopmentAgency,2011)

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amount of, 5 million Zambian Kwacha, which is approximately DKK 5300.

AlongsidethatamountitwillcostapproximatelyDKK300topurchaseformsand

registerthem.Acertificateofincorporationandcertificateofsharecapitalmust

beobtainedthenacompanysealwillbeissued.Theprocesstakesapproximately

28daysmakingitslightlycomplicatedbutnothingtooseriousasothercountries

like China take long periods too but still attract many investors due to the

opportunitiesthemarketoffers.

Social Environment

Zambiahasapopulationof12millionpeople.Roughly70%ofthepopulationis

fairlyeducatedasliteracylevelsareat70%.Thissuppliesalabourforcethatcan

be trained relatively easy. However, Zambians generally lack the

entrepreneurshipspiritvitalforpeopletodeveloptheirownbusinesses.Thisis

duetopreviouspoliciesthatencouragedpeopletotrainforformalemployment.

HIV/AIDS is also recognized as problem affecting development in Zambia.

Statistics show that this virusmainly affectspeople aged15 to49years. This

agedgroupisthemainworkingsegmentoftheeconomyaffectingproductivity.

This could also affect the target group for sales of our beverages at public

gatherings.Onapositivenote, the infectionratehasreduceddueto intensified

effortsfromthegovernmentandotherpartnersaddressingHIV/AIDS.

Generally,Zambiansarepopularlyknownfortheirhospitalitythatisexhibitedto

foreignerswhovisitthecountryeitherastouristsorasinvestors.

Technological Environment

Zambiaalthoughdeveloping,hasnot reacheda satisfactory technological level.

ICT technology and skills development programs are expensive, making them

inaccessibletomostZambians.Ruralareasareaffectedonahigherscaleasthey

lack ICT tools and services. Looking towards the future, Zambia has installed

opticfibernetworksacrossthecountryinanefforttodevelopaccessibilityand

the costof information through the Internet.TheZambiaDevelopmentAgency

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also strives to strenuously promote technological investments in other sectors

suchashealth,ManufacturingandAgriculture.

Environment

Any investor in Zambia must be aware of the Environment Protection and

PollutionControlAct thatprovidesguidelines that investorsmustbeawareof.

This is importantand therehavebeenagrowingnumberofprojects thathave

beenrejectedbytheEnvironmentcouncilduetotheimpacttheseprojectsposed

on the environment. This could be a huge opportunity for beverage bag

dispensers as they offer to reduce pollution through litter reduction. Our

beverageswill be served in recyclable cups rather than selling plastic bottles.

TheseisveryrelevantasIhaverecentlyhadmeetingswiththeministeroflocal

governmentandhouses,DrNkanduluo,whoadvisedZambianBreweriestowork

awayfromusingplastictopackagetherebeverages,duetoalawtobanplastics

packaging soon to take effect. Zambia Breweries has had to take this into

consideration and reflect this in their new corporate strategies. If plastic

packagesweretobebanned,alternativeformsofmoreenvironmentallyfriendly

packageswouldneedtobeused.Theperfectexampleofthiswouldbebeverage

bagdispensersasthereareenvironmentallyfriendly.MeetingswiththeMinistry

ofLocalgovernmentcouldevenprovidesupport for thesetupofmycompany

thatwould offer these solutions. Furthermore, Corporate entities like Zambian

Breweriesmaywanttoenhancetheircorporateimagebyusingorbrandingour

beveragebagsastherewillbeusedinpublicevents.

Legal Environment

InordertostartabusinessinZambia,onemustbeawareofthefollowinglaws

andacts:

• IncomeTaxAct

• VATAct

• CustomsandExerciseAct

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• ImmigrationandDeportationAct

• CitizenEconomicEmpowermentAct

• CompetitionActandotherlegislation

TheZambiaDevelopmentAgencyworkstowardstheharmonizationofallthese

lawsinordertopromoteandfacilitatetradeandinvestmentasbestaspossible

withouthindrances.

Summary–ReasonstoInvestinZambia10

• Anabundanceofnaturalresourcesandmanpower

• Politicalstabilitysinceattainingindependencein1964

• Abolitionofcontrolson:prices,interestrates,foreignexchangerates,free

repatriationofdebtrepayments

• Guarantees and security to investors with legislated rights to full and

marketvaluecompensation

• DutyFreeAccess to regional,widerAfricanand theUSAmarketsunder

SADC, COMESA/FTA and AGOA (African Growth and Opportunity Act)

respectively

• Banking,Financial,LegalandInsuranceservicesofinternationalstandard

asweekasaStockExchange

• DoubletaxationAgreementswithanumberofEuropean,NorthAmerican,

AfricanandAsiancountries

• Good place towork and live – sub-tropical climate and vegetationwith

plenty of water. Friendly people, mostly English speaking, high literacy

rateandeducational establishments toUniversity level. Strong religious

values.Open-air lifestylewithnature reserves, gameparks, rivers, lakes

andwaterfalls.

• ThrivingPrivateSector–Governmenthassuccessfullyprivatisedmostof

the previously state owned enterprises, thus encouraging an

entrepreneurialculture.

10(ZambiaDevelopmentAgency,2010)Page9

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FinancialIncentivestoSmallBusinesses(microorsmallenterprises)

• Foranenterprise inanurbanareathe incomeshallbeexempt fromtax

forthefirstthree(3)years.

• Foranenterpriseinaruralareatheincomeshallbeexemptfromtaxfor

thefirstfive(5)years.11

Vending Laws

Zambia does not have solid vending laws as a large part of the population in

urbancitiesmakealivingofsellingproductsasstreetvenders.Analcohollicense

must be obtained alongside a certificate of heath from the health and safety

board.

11(ZambiaDevelopmentAgency,2009)Page10

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Chapter2

Beverage Bag Dispensers in other markets

Referring to the testimonials of different businesses using beverage bag

dispenser on the thirsty solution website (one of the main suppliers of the

product),Iwillgiveadescriptionofthecurrentusesfortheproductinexisting

marketsaroundtheworld.

TheO2Arena,London,UK–Theyhaveworkedwiththirstysolutionstodeliver

beverages to theircustomers throughout thevenue.Having theability toserve

hot and cold beverages, at the correct temperature, right to the customers’

location, has been invaluable to their business and has increased their sales

considerably.(TomHaywood)12

TheLondonEye–TheLondonEyeattractsupto18thousandvisitorsperday

and is regularly sold out. The result of this is queues of peoplewaiting to see

London from this unique vantage point. In partnership with Coca-Cola and

thirstysolutions,theyhavebeenabletodeliverdrinkstotheircustomerswhen

theyneeditmost.Thesecustomerswhowouldotherwisenotbeabletoleavethe

queue, can now receive beverages at the correct temperature. These projects

leadtosalesrevenuesincreasingbyover800%.(HeidiHumby)13

Arsenal Football Club – Since introducing thebeveragebagdispensersat the

Emirates Stadium, their beverage sales figures have rocketed. By using this

productatmobilevendingpoints,theyhavebeenabletoreducethenumberand

length of queues for beverages. This has increased the satisfaction of paying

spectatorsastheycanenjoymorethefootballmatchwhileincreasingturnover.

Theytakesomuchpressureawayfromtraditionaloutletsatpeakperiodssuch

12(Thirsty Solutions, 2009)13(Thirsty Solutions, 2009)

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as half time. (KieranTingle)Other stadiums claiming the same experience are

thatofSheffieldUnitedF.CandGloucesterRugbyclub.14

Cardiff International Arena –Using thebeveragebagdispenser lead to their

profits rocketing. Once customers begun to recognize the backpacks and the

conceptofmobileselling,theconceptreallytookoff.Ithelpedminimizequeues

and create interest from those that don’t venture into bars, targeting other

marketsegmentsinthisway.(PaulaWalsh)15

What if Innovation & Phenomenon Promotion Agency – Both of these

companies boost a much more efficient process to how they gather market

research for new drinks. They canmove on streets inmany locations and get

peoples attention and gather feedback after people of sampled the drink. The

easytodobrandingofthebagsprovedtobeextremelyhandyatgettingpeoples

attentiononthestreet.16

European Market Analysis

Beverage bag dispensers have been proving to be a revolutionary product in

othermarketsaroundtheworld.Thestrategicadvantageofusingthesebagsis

the fact thatwith thisproduct.You take thebeverage toconsumerrather than

theconsumergoingoutoftheirwaytolocateaplacetopurchaseadrink.Whena

consumerlooksforadrinkthatistimebeingwasted.Noteveryconsumerwillgo

the complete length for a drink if it is not easy. This product also caters for

consumerwhowouldnotnormallygointobarsorothershopsfordrinksaswe

go directly to them. Users such as the Emirates stadium and the London Eye

reallyhighlighttheprogressiveeffectsoftheproduct.Ittargetsconsumerswho

are unable or would preferably not want to move to obtain a drink and by

delivering to this set of consumers, you sell product to other consumerswhile

increasingthedelivered levelofsatisfactiontoeachconsumer.At theEmirates14(Thirsty Solutions, 2009)15(Thirsty Solutions, 2009)16(Thirsty Solutions, 2009)

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Stadium,peoplegothereprimarilytowatchandsupporttheirfootballteamsor

justwatchafootballgameingeneral.Howeverthereisonly15minutesathalf

time for almost 70 thousandpeople to try andbuy food anddrinks. The lead-

time forselling foodanddrinktoeachperson is tohigh for themtobeable to

cater for everyone in15minutes.Also insteadofpeopleonlygettingdrinksat

half time, theycansimplybuyadrinkwhenever theywantwhilewatching the

gametheycametoseeinthefirstplace.Thisresultedinprofitsfrombeverages

rocketingup.Alongsidetheprimarygoalofincreasingprofits,thebeveragebag

dispenseralsohastheeffectofincreasingsafetyatthestadium,queuesandhigh

traffic congestion at stadiums is seen as a high risk for safety at such venues.

Similartotheemiratesstadium,TheLondoneyehasalsobeenabletoservethe

peoplestandinginalineforarideontheLondoneye.Thesepeoplecannotleave

thequeuessobyusingthisproduct,theyhaveessentialcreatedanewmarketfor

drinksattheLondoneye.Thesebenefitshaveleadtootherinstitutionsusingthe

beveragebagdispenserstoboostdrinkrevenuesup.

The fact that drinks can be stored, and transported to consumers at the right

temperature is also good for other uses such as sampling. People in strategic

locationsuchshoppingmallsorbusystreetscanbetargetedandsampledwith

little risk of wasting the products due to the cooling or heating insulating

propertiesofthebags.

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Chapter3

The Zambian Beverage Market

By analyzing the Zambian beverage market for soft drinks, I will be able to

determinewhatdrinksandbeveragecompanies to target invariousregionsof

Zambia.Thisisrelevantforvariousreasonssuchasbrandingonbeveragebags

anddeterminingwhatdrinkstoselltothevarioustargetgroupsintheselected

regionsofZambia.Thevariousbeveragecompaniestargetdifferentagegroups

sothiswillhelpmedeterminemytargetaudience.

Soft drinks

There are several players in the soft drinks market and more notably, Pepsi

underVarunBeveragesLTDhasrecentlyenteredtheZambiansoftdrinkmarket.

TheeffectPepsihashadonthemarketshareandthepresenceoftheminZambia

willbecrucialformystrategy,astheyareatthestartoftheproductlifecyclein

ZAMBIAsubsequentlyrequiringmuchhigher investment to launchtheproduct

andincreasetheirsalesoverCoca-Cola.

Thefollowinginformationisconfidentialandformyresearchonly.