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There is a saying in marketing that all publicity is good publicity. This may not be the case for Coca-Cola’s fortune in Bangladesh, especially since their PR offensive advertisement that tried to say their factory is in Palestine, omitting the fact that it is in occupied land.
The advertisement comes on the heels of coke’s lowest sales in Bangladesh despite offering the highest sales returns for sellers. This multinational brand's sales saw another dip in the last few days, just after its new tone-def advertisement ad campaign.
A Dhaka Tribune reporter observed this decline while visiting various general and grocery shops in the Dhanmondi and Mohammadpur areas of the capital. Customers and shop owners shared their experiences over the last two days.
Nizam Uddin, 40, proprietor of Abdullah Grocery Shop on Modhubazar Main Road in Dhanmondi, told the Dhaka Tribune: “Coke sales started decreasing in January, dropping gradually by 30-75%. Recently, sales had increased due to a supply shortage from domestic beverage companies like Mojo. However, in the past two days, following the new ad, Coke sales have plummeted again. Customers are adamantly refusing to buy Coke. Compared to last year, sales in the last two days have dropped by 80-85%.”
Regarding sales returns, Nizam Uddin said: “If we sell one 250ml bottle of Mojo, our sales return is Tk2.91. But for Coke, it’s Tk4.23 or more.” However, he believes the biggest reason for the decline in Coke sales is customer mindset, as the product itself hasn't changed. Recently, customers have become more adamant about boycotting Coke.
A sales staff member at Priyangon General Stores in Mohammadpur shared a similar observation. “Since the beginning of this year, customers have preferred Mojo or other domestic brands over Coke and other international options. If we don’t have these domestic brands, they go elsewhere. So, we’re forced to stock Mojo and other local beverages,” he said.
“We’ve seen a 50%-60% drop in Coke sales. We used to get 20-25 cases of Coke delivered twice a week, but now even 10-12 cases don’t sell.”
He added that Coke sales increased a bit due to a Mojo supply shortage, but in the past few days, customers are again looking for domestic beverages only.”
Tanvir Jony, an employee at a private firm, commented on the new advertisement, saying: “This ad challenges our long-held beliefs, which I didn’t like at all. It referred to a particular religious community as 'Of that place,' and characters like Sohail, Sultan Soleimani, Bashar, and Akash, who represent that community, are depicted negatively as boycotters or rumour-mongers.”
“I’ve already reduced my beverage consumption due to last year’s price hike, but I still drink occasionally. However, I’ve given up Coke since the Israeli attack,” Tanvir added.
Regarding declining sales, a marketing development officer of Coca-Cola in Dhaka, seeking anonymity, told the media: "Coca-Cola's sales this year have decreased by 60% compared to 2023. In my area Tk2-2.5 crore worth of coke was sold last year. It may now hit between Tk1-1.5 crore.”
However, Coca-Cola İçecek, when they bought Bangladeshi bottling business Coca-Cola Bangladesh Beverages Ltd (CCBB) a few months ago highlighted Coca-Cola's success in strengthening its competitive position in Bangladesh, achieving market leadership with over 45% share of the value of all carbonated beverages sold in the country in 2023.
Market research indicates that Coca-Cola, which previously held a dominant position with a 42% share of the cola market in Bangladesh, has experienced a significant decline, losing at least 23% of its market share since the Israel-Palestine conflict began.
However, Since October 7, when Israel’s assault on the Gaza Strip began, dozens of companies, including Coca-Cola, have seen a decline in sales in Muslim-majority countries, with consumers calling for a boycott of firms believed to have links with the Israeli government and military. In Bangladesh the boycott’s effect could be seen since January.
Mojo Sales Growth
The country's soft drink market is seeing a notable shift, with more Bangladeshis favoring domestic beverage brands over international options. Since the campaign started in January, Mojo has experienced a 39% growth in sales.
Mojo, produced by Akij Food and Beverage Ltd, has become the preferred choice among Bangladeshi consumers, thanks in part to its campaign to donate directly to Palestine. This campaign, called "Mojo Support Palestine," has significantly boosted the brand's popularity.
Md Maidul Islam, CMO of Akij Food and Beverage Ltd, noted: “We have been receiving an overwhelmingly positive response from people. Mojo's sales surged by 30% in the last two months.”
He also mentioned, “Earlier, Mojo had a 29% stake in the cola market. In the first three months of this year, our market share increased by five to six percent, reaching 35%. Now, it has risen to 39%.”
https://www.dhakatribune.com/business/349345/how-bad-was-coca-cola’s-sales-that-they-had-to-go
Coca-Cola ad in Bangladesh sparks backlash for ‘denying ties with Israel’
The commercial was briefly withdrawn before US-based firm put it back up as it battles calls for boycott amid Gaza war.
