Bangladesh is a country with a total population of 166,581,684. The youth of Bangladesh takes about majority of this population. We are aiming to bring Gatorade sports drink in Bangladesh because its main target customers are the youth, who are increasingly involved in fitness and sports nowadays. Gatorade drinks help people refuel and rehydrate. This is what makes sports drinks popular in foreign countries. Electrolytes help regulate the body’s fluid balance while the carbs provide energy. Gatorade claims their product hydrates better than water because of these additional ingredients. And people of Bangladesh need this type of energy drink to keep themselves hydrated and energized whole day. Since the energy drinks in Bangladesh are not considered healthy, Gatorade can be a possible choice for customers who are involved in daily physical activities like sports, gym and day to day activities. Gatorade is a sub brand of PepsiCo, an American food and beverage brand. Transcom Beverage Ltd. already produces and distributes PepsiCo products in Bangladesh as they are the official licensing franchise of PepsiCo in Bangladesh. So, if PepsiCo thinks of bringing one more brand to Bangladesh, then they will have to come with the help of Transcom Beverage. PepsiCo’s world-leading sports drink brand, Gatorade is not officially available in Bangladesh. So, PepsiCo can bring Gatorade in Bangladesh through Transcom. They will produce it in here, keeping the cost low. So, the price will also be affordable. If PepsiCo provides the formulas for making these Gatorade products to Transcom Beverage, then they will be able to produce it and sell it in Bangladesh.

1. TEAM PENTATONIC
1. Adibuzaman Chowdhury
1611088030
2. Nadia Afrin Prionty
1511560030
3. Md. Tanzirul Amin
1611676030
4. Saifur Rahman
1421148030
5. Naznin Akter
1430789030
Report On “Gatorade Starting Its Operation in Bangladesh”
Instructor: Looksina Khan
Lecturer, Department of Management
North South University.
Date of Submission: August 30, 2018

2. 30 August, 2018
Looksina Khan
Department of Management
School of Business and Economics
North South University
Dear Madam,
In response to the project we were given as a part of our Business Communications course, we
have prepared this report. Here we have analyzed the country where we have decided to expand
and offered the detailed overview of business, culture, and people.
We have prepared this report under your guidance. Without your approval, no part of this report
can or will be revealed. This report has never been repeated for any other course.
We sincerely believe that we have accomplished our task by maintaining all the rules that you
provided. We apologize to you for any mistake that we have made, and we hope that you will
consider any discrepancies henceforth and guide us accordingly. We fervently appeal that you will
find our paper satisfactory.
Regards,
Adibuzaman Chowdhury ID: 1611088030
Nadia Afrin Prionty ID: 1511560030
Md. Tanzirul Amin ID: 1611676030
Saifur Rahman ID: 1421148030
Naznin Akter ID: 1430789030

3. Acknowledgement
We feel great pleasure and honor to express our heartiest gratitude and deep sense of obligation to
our respected faculty member, Ms. Looksina Khan, whose valuable guidance and advices
motivated us greatly to carry out this project with efficiency. We would like to thank the
Department of Management of School of Business and Economics - North South University, for
providing us with such a well-designed course and facilities which immensely helped us to
smoothly execute this project. Finally, we would like to thank all those who helped us directly or
indirectly for the proper execution of this project.

4. Table of Contents
Executive Summary......................................................................................................................................1
Introduction..................................................................................................................................................2
Literature Review.........................................................................................................................................3
Hypothesis....................................................................................................................................................4
Company Background ..................................................................................................................................5
PepsiCo......................................................................................................................................................5
Gatorade ...................................................................................................................................................5
Transcom Beverage Limited......................................................................................................................5
Products........................................................................................................................................................6
Overview of Bangladesh ..............................................................................................................................6
Geography.................................................................................................................................................6
Population.................................................................................................................................................7
Currency....................................................................................................................................................8
People and Religion ..................................................................................................................................8
Climate......................................................................................................................................................8
Natural Resources.....................................................................................................................................9
External Environment Analysis of Bangladesh..........................................................................................10
Political and economic Environment of Bangladesh ..............................................................................10
Economy and GDP...................................................................................................................................11
Bangladesh – USA Trade Relation...........................................................................................................13
Legal Environment of Bangladesh...........................................................................................................14
Culture of Bangladesh.............................................................................................................................15
Verbal and Non-Verbal Communication in Bangladesh .........................................................................16
Hofstede’s Cultural Dimension in Bangladesh Context ..........................................................................17
Why Have We Chosen Bangladesh? ..........................................................................................................19
Potential Target Customers .......................................................................................................................20
Competition................................................................................................................................................20
Advertising..................................................................................................................................................21
Advantages & Disadvantages of PepsiCo Bringing Gatorade in Bangladesh ...........................................22
Advantages .............................................................................................................................................22
Disadvantages.........................................................................................................................................23

5. Research .....................................................................................................................................................23
Primary Research ....................................................................................................................................23
Secondary Research................................................................................................................................24
Limitations of The Research....................................................................................................................24
Conclusion ..................................................................................................................................................24

6. Page | 1
Executive Summary
Bangladesh is a country with a total population of 166,581,684. The youth of Bangladesh takes
about majority of this population. We are aiming to bring Gatorade sports drink in Bangladesh
because its main target customers are the youth, who are increasingly involved in fitness and sports
nowadays. Gatorade drinks help people refuel and rehydrate. This is what makes sports drinks
popular in foreign countries. Electrolytes help regulate the body’s fluid balance while the carbs
provide energy. Gatorade claims their product hydrates better than water because of these
additional ingredients. And people of Bangladesh need this type of energy drink to keep
themselves hydrated and energized whole day. Since the energy drinks in Bangladesh are not
considered healthy, Gatorade can be a possible choice for customers who are involved in daily
physical activities like sports, gym and day to day activities. Gatorade is a sub brand of PepsiCo,
an American food and beverage brand. Transcom Beverage Ltd. already produces and distributes
PepsiCo products in Bangladesh as they are the official licensing franchise of PepsiCo in
Bangladesh. So, if PepsiCo thinks of bringing one more brand to Bangladesh, then they will have
to come with the help of Transcom Beverage. PepsiCo’s world-leading sports drink brand,
Gatorade is not officially available in Bangladesh. So, PepsiCo can bring Gatorade in Bangladesh
through Transcom. They will produce it in here, keeping the cost low. So, the price will also be
affordable. If PepsiCo provides the formulas for making these Gatorade products to Transcom
Beverage, then they will be able to produce it and sell it in Bangladesh.

7. Page | 2
Introduction
The Gatorade Company, Inc. is an American producer of sports themed refreshment and
nourishment items, worked around its mark line of sports drinks. Gatorade is right now made by
PepsiCo and is appropriated in more than 80 countries. PepsiCo has 22 brands and among them,
only 7 of them are available in Bangladesh. These brands are Pepsi, 7up, Mirinda, Slice, Mountain
Dew, Diet Pepsi and Aquafina. These brands’ products are soft carbonated drinks or drinking
water. PepsiCo conducts business in Bangladesh with the help of Transcom Beverage Ltd. They
are the local company who produces PepsiCo’s products in Bangladesh as they are the official
franchise of PepsiCo. PepsiCo can bring Gatorade in Bangladesh through Transcom Beverages by
providing them the formula of making Gatorade.
Gatorade is an energy drink but they have positioned themselves as a Sports Drink. It is their
unique selling proposition (USP). Gatorade can call themselves sports drink because of the
elements it has. It has all the elements to make a dehydrated person hydrated within a very short
time. On the other hand, Gatorade is also health concerned, not like the other brands who mix
harmful things in the energy drink to make it tastier and more last long. That’s why Gatorade is so
popular around the world and it is the time to introduce Gatorade in the Bangladesh market as we
can see a market demand.

8. Page | 3
Literature Review
The current population of Bangladesh is 165,864,130 as of Friday, March 16, 2018, based on the
latest United Nations estimates. Bangladesh’s population is equivalent to 2.18% of the total world
population. The median age in Bangladesh is 26.0 years (Worldometers.info, 2018).
The drink business comprises of two noteworthy classes and eight sub-gatherings. The
nonalcoholic classification is contained soda pop syrup fabricate; soda pop and water packaging
and canning; organic product juices packaging, canning and boxing; the espresso business and the
tea business. Mixed drink classifications incorporate refined spirits, wine and blending. Euro
screen Worldwide distinguishes Bangladesh as one of the 20 Markets without bounds that will
offer the most open doors for shopper merchandise organizations all inclusive. Open segment's
commitment in drink industry is 38 percent. Quantum File of Medium and Extensive Scale
Assembling Industry by Significant Industry Gathering demonstrate a rising pattern till FY 2013-
14 and after that it demonstrates a descending pattern. In assembling industry, offer of drink
industry is 0.3 percent. Development rate of drink industry in FY 14-15 was 28.1 percent and it is
anticipated at 8.2 percent in FY 15-16. The market structure of the beverage industry in Bangladesh
is oligopolistic with few firms dominating the market. They are Transcom Beverage Limited,
Partex Beverage Ltd, Akij Food & Beverage Ltd, Agricultural Marketing Company Ltd (AMCL),
and Globe Soft Drinks Ltd. The beverage market is dominated by Transcom Beverage Limited
with the 41.10% market share. Coca Cola is holding 28.40% and 11.50% market share is being
held by Akij Food & Beverage Ltd as per data obtained from Nielsen Report dated February 2015.
Pepsi, 7UP, Mirinda, Slice, Mountain dew, RC Cola, Virgin, Uro Cola, Coca Cola, Sprite, and
Pran Cola are the major producers of soft drinks in Bangladesh. The other beverage producers are
Akij Group (Speed, Wild Brew, Firm Fresh, SPA, Mojo, Clemon, Lemu, Fruitika), Agriculture
Marketing Company Limited (Pran), Partex Beverage Limited (RC Cola, RC Lemon and Lychena)
and Globe Soft Drinks Limited (Uro Cola, Uro Lemon). (“Report on Market Potential of Energy
Drinks in Bangladesh”, n.d)
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-

9. Page | 4
Akij Food and Beverage Ltd. (AFBL): Brand from AFBL is “Speed”. The largest market owner
of energy drink is AFBL.
Globe soft drinks Ltd: Energy drinks brand from Globe soft drinks Ltd. is “Royal Tiger”.
PRAN Foods Ltd: The market follower PRAN came in the energy drink market as the follower.
PRAN commercially launched its product in 2008. Its market share is approximately 1%. Brand
from PRAN Foods Ltd is “Power”.
(“Report on Bangladesh Energy Drink Market”, 2018)
They will be our competitors in the market as the energy drink market is growing day by day. As
the natural state of our nation is extremely good for drinks industry it is a standout amongst the
most unmistakable ventures in Bangladesh. Soft drinks have much interest among the youthful
age. So the advancements of this industry is going on quickly. It progresses toward becoming for
new fare items which is as of now demonstrated outside the nation. The economy and the political
market of Bangladesh are favorable which gives Gatorade an ideal opportunity to explore the
Bangladeshi market.
Hypothesis
The hypothesis of our research is “Bangladesh is an ideal country for Gatorade to expand its
operations because more and more people are into exercise and physical fitness‟. Throughout our
entire research, we have tried to come up with crucial points and benefits which will back our
hypothesis statement.

10. Page | 5
Company Background
PepsiCo
PepsiCo is an American food and beverage brand which is one of the largest brands in the world.
PepsiCo got its name in 1965 when Pepsi-Cola company merged with Frito Lay. Pepsi-Cola was
founded in the late 1890s and Frito Lay was founded in 1932. Now they have total 22 sub-brands
like Pepsi, Lays, Tropicana, Gatorade, Cheetos, Mountain Dew, Quaker, Aquafina, Doritos,
Mirinda, 7up and so on and these brands are available in more than 200 countries around the world.
(Our History, 2018) PepsiCo’s every brand generates more than $1 billion in a year. Over the last
12 months, PepsiCo has generated $66 billion in sales. (PepsiCo’s 22 Billion Dollar Brands &
Future Growth, 2018)
Gatorade
Gatorade was first made in 1965 for the player of Gator Football Team to save them from
dehydration and illness caused by the lacking of electrolytes in the body. It was created by the
researchers of the University of Florida. Then it became a brand in 1985 and now they have the
80% share of the U.S. sports drink market. In Fact, they are the world’s largest sports drink brand
now. (Gatorade Company, 2018).
Transcom Beverage Limited
Transcom Beverages Ltd. is a brand of Transcom Group Limited. It is a Bangladeshi company
which was founded in 1985. It is the local agent or comprador of international brands in
Bangladesh. (Group of Company, n.d). Transcom Beverage Limited is the licensing franchise of
Pizza Hut, PepsiCo, KFC, Phillips, Samsung and so on. They manufacture products like Pepsi,
Diet Pepsi, 7up, Aquafina, Mountain Dew, Mirinda and Slice of PepsiCo brand in Bangladesh.
The company is emerging with the motto to deliver sustained growth in Bangladesh. They have
won several awards as PepsiCo’s exclusive bottling partner in Bangladesh. (Transcom Beverages,
2018)

11. Page | 6
Products
The products of Gatorade are Liquid drinks and Powder. Both the liquid drink and powder, taste
same. Flavors that are available- Fierce Green Apple, Orange Ice, Blue Bolt and Fierce Berry.
(Products, 2018) As conveyance of Gatorade extended outside of the U.S., limited flavors were
acquainted with fit in with local tastes and social inclinations, among different elements. For
instance, Blueberry is accessible in Colombia, and in Brazil, a Pineapple kind of Gatorade is sold.
In Australia, flavors incorporate Antarctic Freeze and Wild Water Rush. A few flavors that have
been ceased in the U.S, for example, Alpine Snow and Starfruit, have since been made accessible
in different nations. (Gatorade Company, 2018) If PepsiCo provides the formulas for making these
Gatorade products to Transcom Beverage, then they will be able to produce it and sell it in
Bangladesh. Besides, based on the taste and preference of Bangladeshi people, Gatorade may
introduce new flavors in the upcoming years.
Overview of Bangladesh
Geography
Bangladesh is officially known as ‘The People's Republic of Bangladesh’ which is a country
located in South Asia. Bangladesh is a riverine country located in South Asia with a coastline of
580 km on the northern maritime of Bay of Bengal. Bangladesh is surrounded by India from three
sides. The Indian States of West Bengal is in the west, Assam is in the north and Meghalaya and
Tripura are in the east border of Bangladesh respectively. The country is bounded in the south by
the Bay of Bengal. Bangladesh is divided into eight administrative divisions. Each named after
their respective divisional headquarters - Dhaka, Barisal, Chittagong, Khulna, Mymensingh,
Rajshahi, Rangpur and Sylhet.
(“Geography-Diverse Landscape and Natural Beauty”, 2018)

12. Page | 7
Population
Bangladesh is the world's eighth most populous country. Bangladesh covers an area of roughly
144,000 square kilometers. The current population of Bangladesh is 166,581,684 as of Saturday,
August 18, 2018, based on the latest United Nations estimates. (Bangladesh Population, 2018).
Bangladesh’s population is equivalent to 2.18% of the total world population. Bangladesh ranks
number 8 in the list of countries by population. The population density in Bangladesh is 1278 per
Km. The median age in Bangladesh is 26.0 years. The gender ratio of the population is about 104
males per 100 females in 2017 and the literacy rate is 72.76% of the population (“UNESCO
Bangladesh Literacy Rate Reaches Time High”, 2018). There are four ethnic groups in
Bangladesh: Dravidian, proto-Australian, Mongolian and Bengali.
The population of Bangladesh is growing at an alarming rate. The total population in Bangladesh
was estimated at 161.8 million people in 2017, according to the latest census figures. Looking
back, in the year of 1960, Bangladesh had a population of 50.1 million people. (Bangladesh
Population, 2018)
Fig.-1: Graph showing the population growth of Bangladesh from 2008-2017.

13. Page | 8
Currency
The currency of Bangladesh is the Bangladeshi Taka (BDT). The Central Bank of Bangladesh
controls the right to issue the currency. Bangladesh Bank has the sole authority to issue banknotes
in Bangladesh. Bangladesh Bank, like other central banks the world over, changes the design of
banknotes from time to time. The Bangladesh Bank has so far issued notes in the denominations
of Tk.1, TK.2, TK.5, Tk.10, Tk.20, Tk.50, Tk.100, Tk.500 and Tk.1000 in this series. The most
commonly used symbol for the taka is "৳" and "Tk", used on receipts while purchasing goods and
services. When Bangladesh bank issuing Banknotes denominated in 2, 5, 100, 500, and 1000
feature a portrait and watermark of the Father of the Nation, Bangabandhu Sheikh Mujibur
Rahman along with the National Martyr's Monument in Savar at canter front
People and Religion
A vast majority or 98 percent of the people of Bangladesh are Bengalis and they speak
the Bangla language. Rest minorities are Bihari’s and other ethnic language groups. Bangla is the
first and official language of Bangladesh and English is the second one. Bangladesh is a Muslim
country. 83% people follow Islam and 26% are Hindu and 1% is others. Largest number of
Muslims is making Bangladesh as one of the largest Muslim countries in the world. The Muslim
community in Bangladesh tends to be accommodating to other faiths and beliefs and Bangladesh
is known for its lack of communal strife. While the Constitution of Bangladesh establishes Islam
as the state religion, it provides for the right to practice subject to law, public order, and morality
of the religion of one’s choice. The Government generally respects this provision in practice.
(“The People of Bangladesh”, 2015).
Climate
The climate of Bangladesh is tropical, with a pleasantly warm and sunny winter from November
to February, a short hot spring between March and May, and a long rainy season from June to
October, due to the summer monsoon. The pre-monsoon hot season is characterized by high
temperatures and the occurrence of thunderstorms. In general, maximum summer temperatures
range between 30°C and 40°C. Hot season is characterized by high temperature. April is the
warmest month in most parts of the country. March and April are the least humid months over

14. Page | 9
most of the western part of the country. The lowest average relative humidity 57% has been
recorded in Dinajpur in the month of March. The least humid months in the eastern areas are
January to March. Here the lowest monthly average of 58.5% has been recorded at Brahmanbaria
in March. The relative humidity is everywhere over 80% during June through September. January
is the coldest month, when the average temperature for most of the country is about 10°C.
(“Climate”, 2018)
Natural Resources
• Arable land: 58.96%
• Irrigated land: 50,000 km2 (2008)
• Total renewable water resources: 1,227 km3 (2011)
• Tertiary folded sedimentary rocks (12%) in the north, north eastern and eastern parts; uplifted
Pleistocene residuum (8%) in the north western, mid northern and eastern parts; and Holocene
deposits (80%) consisting of unconsolidated sand, silt and clay.
• Non-renewable fossil fuels: Natural gas (the major source of electricity production, household
cooking, powering industries) and Coal (usually used in the brick-kilns, rails, and in some
industries to produce power)
• Other renewable sources: there is growing use of solar, wind, and biomass energy sources
across households and industries.
(Bangladesh Natural Resources, 2018)

15. Page | 10
External Environment Analysis of Bangladesh
For this research, the political, economic, legal and cultural environments of Bangladesh are
analyzed to extract the knowledge about this country and its people, and to give insights to The
Gatorade Company about the pros and cons of starting their business in this country.
Political and economic Environment of Bangladesh
• Political environment and instability: As Bangladesh is a democratic country, the democratic
government has to go through an elections every five years. The new government gets
influenced by the pressure groups and tends to change their policies regarding trades. These
changes of decisions and political instabilities greatly effects big firms and foreign
companies.
• Economic Setting: The unstable political situation of Bangladesh affects the economy greatly
as tax revenue, government spending and foreign trade/investment policies changes
randomly. As a result, these impact the operations and business performance of the
companies.
• New legislations and change in interest rates: The government might increase tax for some
companies and provide incentives to others, causing industry wide effects. Existing and new
business processes may be hampered due to changes in national minimum wages, tax rates,
such as: VAT or Corporation Tax. Being the least predictable component of the economy
shift in interest rates can affect the demand pattern, thus the prediction of the performance of
the company remains not precise enough.
• Bureaucracy: Like most Asian countries, Bangladesh is not free from the bureaucratic
practices these result in high possibilities of corruption due to bribing, lobbying and other
unethical misconducts.

16. Page | 11
Fig-2.: This shows the economic and political factors that Gatorade needs to consider.
Economy and GDP
Bangladesh’s economy is market-based economy and it is 43rd
largest economy in the world. The
current GDP per capita of Bangladesh is 8% of the world’s average and over the last ten years
Bangladesh has shown exceptional performance in key human development indicators and
recently became a Least Developed Country (LDC). According to the 2008, UNDP Human
Development Index Statistical Update, Bangladesh ranks 147th among 179 countries with an HDI
score of 0.524, placing it among countries considered to have achieved medium human
development (UNDP in Bangladesh, 2018). Over the past two decades, there was an annual
average growth rate of 6% of GDP and has reduced the poverty rate by half: 24.8% of the
population was considered under the poverty line in 2016, compared to 48.1% in 2000. Growth
amounted to 7% in 2017 supported by remittances from nearly 7.5 million Bangladeshi living
abroad (USD 12.85 billion in 2017), garment exports, increased wages and low inflation.
(Bangladesh Overview, 2016) According to the Bangladesh Bureau of Statistics, per capita
income grew from USD 1,532 to USD 1,660 from fiscal year 2017 to 2018 (a 8% growth). The
inflation rate is estimated to reach 5.8% in 2018 while the interest rate sits at 6.75%. If the
macroeconomic stability continues then credit growth and increased private investments are
expected. Bangladesh aims to achieve the upper-middle-income country status by 2021(the 50th
anniversary of the nation’s independence). (Bangladesh: Economic and Political Overview, 2018)
Political and
Economical
Environment
Tax and
Economic
policies
Political
instability
Employm
ent Laws
Foreign
Trade
Regulatio
ns

17. Page | 12
Fig-3: Chart showing the GDP growth rate of Bangladesh from 2008-2017.
Fig-4: Table shows the micro-economic conditions at Bangladesh. Source: IMF – World Economic Outlook Database.

18. Page | 13
Bangladesh – USA Trade Relation
The USA is Bangladesh’s one of the largest trade partners. Our countries have signed a bilateral
investment treaty, as well as a bilateral treaty for the avoidance of double taxation. Bangladesh has
been successfully exporting 18% of their products to the USA. Bangladesh exported around $5.27
billion in 2014. The apparel-based products were worthy of $2.37 billion in 2005, $4.29 billion in
2010 and it reached $4.70 billion in 2014. However, if we consider this from US perspective, then
Bangladesh is their 58th
largest trading partner. Bangladesh was the United States' 41st
largest
supplier of goods imports and 79th
largest goods export market in 2016. Though the import tariff
rate is high in the USA, we have successfully held a position in their market. Because the increase
in wage in China, a lot of buyers from the US moved to Bangladesh to avail the opportunity of low
cost and high-quality products.
(“US-Bangladesh Trade Facts”, 2017)
Value in Million Taka
With respect to Bangladesh (Value in Million US $) =
Year Export Import Trade Ratio
2005-06 204303.02
(3039.77)
23162.9
(345.30)
1:0.11
2006-07 238500.2
(3453.52)
26304
(381.05)
1:0.11
2007-08 246312.48
(3590.56)
33627.7
(490.19)
1:0.14
2008-09 278777.81
(4052.00)
31723.1
(461.09)
1:0.11
2009-10 273293.37
(3950.47)
32479
(469.48)
1:0.12
2010-11 363502.48
(5107.52)
48403.5
(680.11)
1:0.13
2011-12 403482
(5100.91)
55770.1
(705.06)
1: 0.14
2012-13 433134.59
(5419.60)
42948.5
(537.39)
1:0.099
2013-14 433959.02
(5583.62)
64990.6
(837.18)
1:0.15
Table-1: Bangladesh-USA trade records
(“Bangladesh – U.S.A Bilateral Trade Statistics”, 2015)

19. Page | 14
Major Export Items in 2013-14 (In million US $):
Woven Garments (3943.522), Knitwear (1197.853), Home Textile (137.135), Agri Products
(24.002), Frozen Food (55.063), Leather & Leather Products (13.151), Footwear (44.87), Raw Jute
(2.419), Jute Goods (15.929), Bicycle (0.123), Others (149.554). (“Bangladesh – U.S.A Bilateral
Trade Statistics”, 2015)
Major Import Item in 2013-14 (In million US $):
Nuclear reactor, boilers, machinery and mechanical appliances, parts thereof (136.0), Cotton (all
types), cotton yarn / thread and cotton fabrics (121.0), Electrical machinery and equipment and
parts thereof, sound recorders and reproducers, television image and sound recorders and
reproducers and parts and accessories of such articles (67.0), Residues and waste from the food
industries; prepared animal fodder (43.0), Iron and steel (41.0), Optical, photographic,
cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus,
parts and accessories thereof (32.0), Plastics and articles thereof (22.0), Man-made staple fibres
(21.0), Organic chemicals (12.0), Pulp of wood or of other fibrous cellulosic material, waste and
scrap of paper or paperboard (7.0), Miscellaneous chemical products (7.5), Dairy produce, birds'
eggs natural honey, edible products of animal origin, not elsewhere specified or included (1.0),
Others (326.0) . (“Bangladesh – U.S.A Bilateral Trade Statistics”, 2015)
So, the trade relation of the USA and Bangladesh is positive and this positive relationship will help
American company PepsiCo to introduce Gatorade in the market of Bangladesh.
Legal Environment of Bangladesh
• Intellectual Property laws: Foreign nationals and/or companies can protect their trade marks
in Bangladesh under the Trademark Act, 2009 by registering them under the prescribed class.
• Competition laws: Every franchise agreement incorporates highly restrictive terms which
would bring it within the purview of the Monopolies and Restrictive Trade Practices ordinance,
1970 and lay it open to scrutiny by the Director General of Investigation & Registration or the
MRTP Commission.

20. Page | 15
• Consumer Protection laws: The Consumer Protection Act 2009 substantially impacts the
development of franchising in Bangladesh. It comes into play with regard to civil wrong and
other actions arising from sale of defective goods. The issue is if a defective product sold by a
franchisee causes injury to a consumer or causes damage to the consumers’ property, then does
the consumer have recourse to the franchisor and the franchisee or both
• Labor laws: Bangladesh has a certain labor law applicable to both local and foreign companies.
Although the law enforcement bodies are not strict in maintaining these laws, there are certain
regulations which give provision to exemplary punishment for violation of labor law.
(“Consumer Rights”, 2018)
Culture of Bangladesh
Bangladesh is known to have a diversified culture and is also recognized as a country of colors.
Bangladesh has a long heritage of multifaceted folk, sculpture, weaving, pottery and terracotta, art
and craft, festivals and celebrations, philosophy and religion, and also in a distinction of cuisine
and culinary tradition. Various festivals play important roles in people’s lives. Among all the
festivals celebrated by the people of Bangladesh, the most well-known ones are Pohela Boishakh
(which is the first day of Bengali New Year), Eid-ul-Fitr and Eid-ul-Azha (Holy festivals
celebrated by the Muslims of the country), Durga Puja (largest celebration of the Hindu
community of Bangladesh), Pahela Falgun/Bashanta Utshob (a celebration to welcome Spring
season) , Shakrail/ Ghuri Festival (a famous festival celebrated in old dhaka where kites are flown),
Nobanno (a festival for the farmers where they commence harvesting) and Poush Parbon
(Celebrated during winter). Gatorade needs to have a thorough overview of the Bangladeshi
culture so that it can successfully channel its strategies according to the Bangladeshi cultural
context.
(“Culture and Customs of Bangladesh”, 2018)

21. Page | 16
Verbal and Non-Verbal Communication in Bangladesh
Bangladesh has its own verbal and non-verbal techniques of communication with each other, like
every other country. The way people address each other highly depends on each other’s age and
relationship. Gatorade needs to consider these verbal and non-verbal cues if it wants to adopt a
“glocal” approach here in Bangladesh. In Bangladesh. It is usually considered impolite to address
someone older by his/her name. Usually, people address relatives and family members as ‘brother’,
‘sister’, ‘uncle’, ‘aunt’, etc. Men with equal status shake hands gently to express gratitude and
respect is expressed after a handshake by placing one’s right hand over one’s heart. Opposite
genders do not shake hands with each other because this is considered inappropriate as it is a
Muslim country. People often greet each other by saying ‘Assalam Waleykum’ (‘peace be with
you’), to which the expected response is, ‘Waleykum Assalam’ (‘and with you’).
(“Communication”, 2018)
Verbal Communication
• Language style: Bangladeshi people usually communicate with each other using lengthy
sentences and they are perceived to be courteous while communicating. People of this country
also welcome flattery and boasting to some extent.
• Indirect communication: Even though the style of communication differs from the type of
person one is speaking or interacting with, it is usually said that Bangladeshi people are
commonly considered as indirect communicators. Opinions are expressed softly and people
usually avoid strong worded assertions
• Refusals: Bangladeshi people are not very well at taking ‘no’ for an answer. Hence, the people
of this country are very careful when they tend to answer in yes or no to a particular question.
‘That may be difficult’, ‘I can try’ or ‘I have to give it some thought’ are often used to subtly
indicate a refusal. In some situations, silence is also used as a communication tool to express
refusal.
• Humor: In Bangladesh, humor is considered the victory of the underdog over the urbanite.
Satire or sarcasm is seldom used.
• Soft voices: Bangladeshi people usually prefer using a soft voice while speaking and do not
like expressing themselves loudly. Speaking loudly is often considered to be offensive.

22. Page | 17
Non-Verbal Communication
• Personal space: People of opposite gender usually do not stand or sit close during a
conversation.
• Physical contact: Holding each other’s hands or putting hands around shoulder are some of
the common behavioral traits found in Bangladeshi people belonging to the same gender.
Physical contact during conversation is directly proportional to familiarity between each other.
However, displaying affection or signs of love between people belonging to opposite sex are
considered socially inappropriate and taboo.
• Eye contact: Staring at someone blatantly is considered impolite and men staring at women
are considered offensive.
• Facial expression: Bangladeshi people usually do not display much facial expression while
they communicate with each other. People usually do not smile while they talk to each other
and this is considered as showing maturity or seriousness.
• Listening: Bangladeshi people are considered as great listeners via their courteous
communication style and their attempt of not interrupting their partner during his/her
conversation.
• Gestures: Pointing finger and talking is generally considered rude in Bangladeshi cultural
context.
Hofstede’s Cultural Dimension in Bangladesh Context
If we analyze Bangladeshi culture using Hofstede’s cultural dimension, we see that Bangladesh
scores high in terms of power distance, masculinity, uncertainty avoidance, and low on indulgence,
individualism and moderate on long term orientation. The figure given in the next page
summarizes Hofstede’s cultural dimension of Bangladesh in the form of a bar chart.

23. Page | 18
Fig-4: The graph showing Hofstede’s cultural dimension of Bangladesh
• Power distance: Power Distance is defined as the extent to which the less powerful members
of institutions and organizations within a country expect and accept that power is distributed
unequally. Bangladesh scores high on this dimension (score of 80) which means that people
accept a hierarchical order in which everybody has a place and which needs no further
justification.
• Individualism vs. Collectivism: It shows the degree of interdependence a society maintains
among its members. Bangladesh, with a score of 20 is considered a collectivistic society where
people value long term relationships and commitment and think for the interest of the society.
This is manifest in a close long-term commitment to the member ‘group’, be that a family,
extended family, or extended relationships.
• Masculinity vs. Femininity: Bangladesh scores 55 on this dimension and can be considered a
Masculine society. The society is driven by competition, achievement and success, with
success being defined by the winner / best in field.
• Uncertainty avoidance: The extent to which the members of a culture feel threatened by
ambiguous or unknown situations and have created beliefs and institutions that try to avoid
these. Bangladesh scores 60 on this dimension and thus has a high score. Countries exhibiting
high Uncertainty Avoidance maintain rigid codes of belief and behavior and are intolerant of
unorthodox behavior and ideas.

24. Page | 19
• Long term orientation: This dimension talks about how every society has to maintain some
links with its own past while dealing with the challenges of the present and future. Bangladesh
scores 47, which means it is moderately long term oriented.
• Indulgence: This dimension is defined as the extent to which people try to control their desires
and impulses, based on the way people were raised. Relatively weak control is called
“Indulgence” and relatively strong control is called “Restraint”. Bangladesh has a very low
Indulgence score of 20. This makes it a restrained country. Societies with a low score in this
dimension have a tendency to cynicism and pessimism.
(“Hofstede’s Cultural Dimension of Bangladesh”, n.d.)
Why Have We Chosen Bangladesh?
Bangladeshi energy drinks are some types of beverage containing stimulant drugs, caffeine, which
is marketed as providing mental and physical stimulation. Energy drinks have become a modern-
day phenomenon. There are few Bangladeshi beverage companies which manufacture energy
drinks at affordable prices. It may or may not be carbonated. Many of them contain sugar or other
sweeteners, herbal extracts and amino acid. (S. Ahmed, 2017) These can cause major health issues.
There are many brands such as Royal Tiger, Speed, Dark Horse, Wild Brew, Power, Red
Bull which are quite popular in our country. Though in the advertisements, they show that these
drinks can increase muscle strength and leniency, but scientifically it’s not proven. Now people
are more concerned about their health. They try to eat healthy food and try to do exercises. So,
when people exercise they become dehydrated and they need to be hydrated again. We think that
only water is sufficient enough to hydrate us. But we also need other elements like electrolytes,
sugar, sodium, and potassium. Sports drinks like Gatorade contain sugar, electrolytes, sodium, and
potassium (A. Schaefer, 2018). Gatorade can energize us and help replace what people lose due to
longer duration of exercises, and also due to sweating in the heat. These ingredients help people
refuel and rehydrate. This is what makes sports drinks popular in foreign countries. Electrolytes
help regulate the body’s fluid balance while the carbs provide energy. Gatorade claims their
product hydrates better than water because of these additional ingredients. And people of
Bangladesh need this type of energy drink to keep themselves hydrated and energized whole day.
On the other hand, there are no renowned energy drink brands in Bangladesh that positions itself

25. Page | 20
as a fitness drink. As a result, many potential buyers don’t purchase as they think that the brands
which are available are not trustworthy and may inject harmful chemicals in their energy drinks.
As a brand of PepsiCo, Gatorade can gain a very good market in Bangladesh as the people of
Bangladesh treat PepsiCo as a trusted brand.
Potential Target Customers
Gatorade is an energy drink but they have positioned themselves as a sports drink brand. For over
50 years, it is keeping athletes hydrated and helping them to perform at their best. Gatorade’s main
target people will be the people of 15-40 ages. Because at this age, people are more involved in
sports, and daily basis hard work. Besides, people who are involved in gymnastics can also be their
target customers as they sweat a lot while working out, as a result, they must take liquids to hydrate
themselves again. Gatorade can work as a solution to any type of dehydration in our day to day
life activities. Besides, sportsmen of Bangladesh also need this type of sports drink to make
themselves hydrated all the time to perform their level best. People can take Gatorade before an
activity, after an activity or even while doing an activity.
Competition
There are only 4 companies that produce energy drinks in Bangladesh. So, there is not much of
competition in the energy drink market of Bangladesh. 3 of the companies are Bangladeshi local
companies and they are Globe, Akij, and Pran. Osotspa is a Thai company. The market leader is
Globe’s Royal Tiger energy drink having 70% of the total market share. Akij’s Speed is the 2nd
largest energy drink seller, having 25% of market share. Pran and Osotspa are struggling to survive
in this energy drink market with their Pran Power and Shark. (“Report on Market Potential of
Energy Drinks In Bangladesh”, n.d.)
Producer Brand Name Market 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

26. Page | 21
So, there is a huge opportunity for Gatorade to be successful in the Bangladesh market as most of
the competitors are local companies. Gatorade as a brand of PepsiCo can gain the market share
through its brand name and recognition. Besides, people of Bangladesh prefer foreign company’s
product more than local companies. Besides, according to a few articles, these local companies are
accused of producing energy drinks with harmful materials.
Advertising
Advertising is something that Transcom Beverage should consider and take care of with much
emphasis while producing and selling Gatorade in the Bangladesh market. Gatorade’s customer
awareness and trial methods are dependent on the proper utilization of their advertising activities.
• TVC: Transcom will make a TVC of Gatorade and show it in different sports channel of
Bangladesh like Gazi TV, Channel 9 etc. This will get the coverage of all the sports loving
people who are Gatorade’s potential customers.
• Online Videos: The same TVC will be posted in Facebook and YouTube to get the reach of
highest number of people as social medias are the best form of reaching potential customers.
• Geolocation: Using geolocation technology, Gatorade will target the age group of 15-40
people and locations of near gyms and fields to target the potential customers.
• Billboards: Gatorade needs to post their advertisement in billboards in crowdy and busy areas,
and also beside field or gyms.
• Nameboard sponsoring: Gatorade can sponsor and make nameboards of different gyms and
retail stores to make people aware about the brand.
• Newspaper ads: Gatorade will publish their ads on newspapers with a a good reach like
Prothom Alo, The Daily Star, Amar Desh, The New age and Kaler Kantho. Their ads will be
posted on the sports section of the newspapers.
• Magazine Ads: There are few magazines that are published based on sports and gymnastics.
Gatorade must try to put their ads on those type of magazines.

27. Page | 22
• Brand Endorsement: Taskin Ahmed is the brand ambassador of Transcom Beverage to
endorse PepsiCo brand and its products. As he is a cricketer, Gatorade can use the existing
brand endorser Taskin Ahmed to endorse Gatorade easily.
• Online Banner and interstitial ads: Gatorade will post online banner ads in different website’s
blank spaces with the help of GDN and Google AdSense. Besides, posting ads as an interstitial
ad in different social medias like Facebook, Instagram, works like a charm as it reaches a huge
number of potential customers.
Advantages & Disadvantages of PepsiCo Bringing Gatorade in
Bangladesh
Advantages
• Established Reputation and Image: The best advantage of bringing Gatorade is that the brand
belongs to PepsiCo which is already well reputed and have a strong brand image among the
people of Bangladesh. For many companies, the most fear is that if the consumer would accept
their project or not. As PepsiCo brands are already dominating in Bangladesh, they will not
have to spend millions to make their Gatorade make a mark in the market.
• Instant Brand Recognition: PepsiCo has already established themselves as one of the best
brands. For any beverage company, it takes years to create their brand name and attract their
target population, turn them into loyal customers. But as Gatorade is a brand of PepsiCo, the
brand recognition of PepsiCo will play a part in attracting customers toward Gatorade.
• Fewer Competitors: Energy drink market of Bangladesh consists of few competitors and those
brands are not world famous or don’t have that much of brand image and reputation. So,
entering into the energy drink market with a sports drink brand like Gatorade will make it
successful within a short time due to lack of renowned competitors.
• The Existence of Transcom Beverage Limited: They are the official franchise of PepsiCo in
Bangladesh. They produce and sell PepsiCo’s products in Bangladesh. So, bringing Gatorade
in Bangladesh will be easier for Bangladesh as all they have to do is to give franchise of

28. Page | 23
producing Gatorade in Bangladesh to Transcom Beverage Ltd and rest will be taken care by
themselves. Transcom Beverage has proven to be a successful franchise of PepsiCo in
Bangladesh.
• Low Producing Cost: Due to the cheaper cost of labor and raw materials, it would be cheaper
to produce Gatorade in Bangladesh compared to other countries.
Disadvantages
• Price: If we convert the price of USA’s 1 Liter Gatorade then it will be priced 80 takas+vat in
Bangladesh which is quite high. But as we are going to produce it in Bangladesh, so it will be
less cheap to produce than the USA. We are estimating a price tag of 60 takas for 1 Liter bottle
of Gatorade and 40 takas for 600 ml. We are not sure about the pricing. It can be higher than
our expectation. If that happens, then it will again become a pricey product and become less
desirable to consumers.
• Cultural Difference: In USA, Gatorade was successful, but that doesn’t mean it will also be
successful in Bangladesh. There are cultural differences between these two countries. In
Bangladesh, people prefer lemon juice, or saline, or coconut water to get themselves filled with
electrolytes and make themselves hydrated. Besides, these are cheaper.
Research
Primary Research
We took a survey via Google Form, including 9 questions and 22 respondents. The survey
questions and results are given in the appendix section. But we have come to know from survey
that, if Gatorade comes to Bangladesh and offers an affordable price, then majority of the people
will buy Gatorade. Besides, the respondents strongly suggest gymnasts, sportsmen and daily heavy
taskers to drink Gatorade to hydrate themselves.

29. Page | 24
Secondary Research
For making the report, we have gathered most of the information from various types of secondary
sources which include different websites, journals, articles, and newspapers. So, it has worked as
our main source of information. Secondary sources provided us with the information on
Bangladesh’s different aspects, cultures, legal environment, company information, trade relations,
economic conditions and so on. We have also used in-text citation whenever we took any help
from any secondary sources.
Limitations of The Research
• We have faced difficulties to prepare a questionnaire for Primary data collection and it was
comparatively time-consuming.
• Most of our responded were from North South University and they might not fully represent
our target customer group.
• It was difficult to get the answers to our questionnaire as few of the respondents didn’t want to
fill up the form or go into the link which was provided. Besides, few of them didn’t fill up it
with proper care. That may have affected the results of our research to an extent.
• Few website’s information was not updated.
Conclusion
In conclusion, it can be said that Gatorade has a potential market in Bangladesh. According to our
survey and research, it can be said that the youth of Bangladesh will highly accept this brand as
their sports or energy drink with no harmful ingredients. As for the future plan or recommendation,
Gatorade will come up with more flavors to give a good experience of energy drink to the people
of Bangladesh who actively take part in physical activities.

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33. Appendix