Republic of the Philippines EULOGIO AMANG RODRIGUEZ INSTITUTE OF SCIENCE AND TECHNOLOGY Nagtahan, Sampaloc, Manila

RC Cola: Its edge among its multi-international competitors in the Philippines A Research Study Presented to The Faculty of the College of Professional Studies In Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in Business Administration

By Lee Harvy A. De Guzman Jessie L. Dela Cruz Jorena Mae N. Giducos Julius R. Idio

CHAPTER 1
Introduction: Well bring 14 plants of RC Colas manufacturing footprints in the Philippines, Alfredo Yao said. Owner and founder of the Zest-O Corporation. As he explains how RC Cola is expanding and gaining its popularity here in the Philippines. RC Cola is also a legend with a history spanning more than 100 years. Originally, Royal Crown Cola was born from the efforts of a young pharmacist in Columbus, Georgia. After a disagreement with a local soda bottler Claud A. Hatcher. He began creating his own soft drinks. Never in his wildest dreams could he have imagined that his experiments would become successful and affectionately nicknamed RC Cola. Early 2002, a sparkling group of marketing and manufacturing experts pooled their strengths to establish a new soft drink company. An RC Cola was born and first introduced in the Philippines. As they sharing the same passion and ideals as a royal crown international. Today, RC Cola is developing to fit the Filipinos taste buds. As they envisions to offer a truly satisfying Cola drink with an affordable price.

Statement of the Problem: 1. How does RC Cola differs from its bigger competitors

such as Coca- Cola Company and Pepsi from: 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2. Products Price Place Promotion Personnel Procedure Management Physical Assets What are the factors considered by the RC Cola Company

to having the most numbers of potential consumers? 3. Why masses or most numbers of Filipino consumers who

lives in a small community patronizes RC Cola?

Significance of the Study The result of the study will provide useful data and information for the following: Royal Crown RC COLA Company. It gives them data and inputs to improve and sustain their marketing strategy to be locally competitive in the market. Students. It provides additional information to enhance their level of knowledge regarding the effectiveness of marketing strategies.

Scope and Limitations The study was focused on determining the common aspect why does the people patronize the RC Cola. The scope of the study is beyond the reach of the products of the Royal Crown RC Cola Company but in a specific number of people which has similarity in the study of the given problems that needs a corresponding answers. It involves the society where in we selected a small number of people that has the same interest and although this research was carefully prepared, we are still aware of its limitations and shortcomings. In addition, since the assessment of the pretest and post test was conducted by the pantrus, it is unavoidable that in this study, certain degree of subjectivity can be found. In fact, it would have been sort of objective if it had been decided. Background of the study RC Cola was name Royal Crown and the first cola was called Chero-Cola. Royal crown international (RCCI), the global beverage company of all independent bottlers of American soft drinks brand RC Cola worldwide, has revealed that the Philippines is the most successful overseas market to date. Asian wide refreshment Corporation (ARC) is the licensed bottler of RC Cola in the Philippines and it is the most successful market. Royal Crown Cola Company (RC), although never as renowned

as its rival Coca-cola, used the soft0drinks industrys first taste tests to prove that it was a superior soda. Forever linked to a popular marshmallow-filled snack treat through the country song RC Cola and Moon Pie, the company never schools its strictly southern, small-town image, even though it unveiled a series of industry firsts, including the first aluminum cans, the first diet cola, and the first ceffeine0free diet cola. A young pharmacist named Claud Hatcher developed RC as a bottled drink in 1905 to sell in his familys grocery store. After customers clamored for the drink, the family expanded into soft drinks business starting Union Bottling Works. Its best-selling product Chero-Cola, helped the company grow is rapidly that by 1920 it had 7franchise bottling plants. Known as the Chero-cola company, it faced a lawsuit from Coca-Cola, which insisted on exclusive rights to the word cola. High legal bills and rising sugar prices forced the company to drop cola from its name in 1923. When the market for chero dropped off, the company discontinued the beverage, pushing forward with a fruity soft drink called Nehi instead. Chero became Nehi Corporation in 1928. In the midst of the Great Depression of the 1930s, Nehi began to struggle; competition and lackluster sales made it hard for the company to pay its bills. Hatcher died in 1933, and H. R. Mott took control of Nehi, dropping poor-performing drinks and streamlining operations to make the company debt free in a year. Mott's plan included taking the original Chero-Cola and reintroducing it. The new Chero-Cola, released in 1934 and named Royal Crown after Hatcher's first drink, was a big hit, and in the late 1950s the company changed its name to

Royal Crown Cola Company. (Courts ruled in 1944 that the company could once again use "cola" in its name.) Mott was replaced by C. C. Colbert as president and chief executive officer in 1940. In that year, Nehi sales were ten times what they had been less than a decade before, RC products were available in nearly every state in the nation, and its advertisements appeared in such publications as the Saturday Evening Post and Good Housekeeping. Actors Lucille Ball, Claudette Colbert, Joan Crawford, Ronald Reagan, Shirley Temple, and Loretta Young were among those endorsing RC as "Best by Taste Test." The company continued to grow, and in 1954 it became the first beverage company to nationally distribute soft drinks in cans. Shortly thereafter, in 1959, RC became one of the first to introduce the sixteen-ounce bottle. The company produced the first low-calorie diet cola (Diet Rite), the first caffeine-free diet cola (RC 100), and the first diet cherry cola (Diet Cherry RC). Yet despite such innovations, Royal Crown products reportedly reached only 2.5 percent of the soft-drink market in the mid-1990s; Coke was the leader with about 43 percent, just ahead of Pepsi, which had about 31 percent of the market share. Today, none of the top-tenselling soft drinks are Royal Crown products. RC Cola was bought in October 2000 by the British company Cadbury Schweppes. Its U.S. operations continue under Cadbury Schweppes's largest beverage subsidiary, while its international operations are handled by Canada's Cott Corporation.

CHAPTER 2
MARKETING RESEARCH

Review of Related Literature and Studies Related Literature

Local Sources

1.

According to Mr. Doris C. Dumlao of Philippine daily

Inquirer (2013) the Philippine maker of American soft drink RC Cola is making plans to debut on the local exchange of stocks to fund a regional expansion program.

Asia wide Refreshments Corp. (ACR), which holds an exclusive license from RC Cola USA to manufacture and distribute RC Cola in the Philippines, may soon sell a mix of primary and secondary shares equivalent to at least 30 percent of post-initial public offering (IPO) stocks hopefully within this year, according to businessman Alfredo Yao. Yao, owner and founder of the Zest-O group, controls 80 percent of ACR. Based on the companys website, other business partners are entrepreneurs Tony Panajon, Gerry Garcia, Butch Aves and Ricky Sandoval. The businessman said the IPO size would be definitely bigger than that of Philippine Business Bank, which raised P3.2 billion from a primary share sale and listed outstanding stocks on the Philippine Stock Exchange Tuesday. ACR likewise held the license to manufacture and distribute

RC Cola across Southeast Asia, Yao said. New RC Cola plants might be put up in Myanmar, Thailand and Vietnam, Yao said at the sidelines of the listing of Philippine Business Bank. Even here (in the Philippines) were expanding. We have just opened our Cagayan de Oro plant. Well be opening next week our Pangasinan plant and construction (of a new plant) is ongoing on Panay Island, Yao said. This will bring to 14 plants RC Colas manufacturing footprint in the Philippines. Asked why the RC Cola unit would go public ahead of flagship Zest-O, Yao said it was easier to convince business partners than family members to bring a privately held company public. In the case of Zest-O, it might take awhile because there was sentimental value involved, he said. Having said that, the group has yet to mandate an investment the bank to arrange the prospective offering. Investment banker Jojo Dispo, president of First Metro Investment Corp., said the Zest-O group might be saving the best for last in pursuing RC Colas stock listing ahead of Zest-Os. He also noted that RC Colas expansion in the region was all in sync with the Asean trade integration, referring to the planned creation of a unified Southeast Asian market by 2015.

2.

According to Mr. Topaz in the past December 09, 2010

First, some history behind RC Cola. Chero-Cola started production in 1905, and produced a number of beverages with the prefix "Royal Crown." They manufactured such drinkables as Royal Crown Ginger Ale, and Royal Crown Root-Beer. Finally, they decided to start making sense and changed the

name of Chero-Cola to Royal Crown Cola, to go along with everything else they sold. That's quite funny in my opinion; I don't know why they didn't go with Royal Crown in the first place. But I digress. There's a certain magic to be had when drinking a bottle of this delicious cola. You have a certain freedom, which can't be destroyed by the two beverage giants, Coke and Pepsi. RC is its own thing, and although it may be less popular, I believe that it is the best out of the three. You just can't get this sort of experience anywhere else. Taste RC has a very distinct flavor, and it leaves you craving just one more sip every time. Many people always ask, "Do you like Coke or Pepsi better?" My answer is always "Royal Crown all the way!" It has a real strong cola flavor that starts a bit bitter, but ends in a delicious sweetness that sends a wave of pure awesome through the mouth and down the esophagus. RC has somewhat of an earthy flavor to it, which makes it seems more authentic in my eyes. Don't worry though, it's nothing major. In fact, it really complements the beverage, creating an interesting diversion from the normal cola taste, which in turn makes it taste even better.

Texture Of course, being a cola, RC has a bubbly carbonation going on. Even better though, it has a sort of frothiness that makes it seem light. RC does go flat fairly though, which is something of a disappointment. RC does make up for this however with its lack of high-fructose corn syrup overload,

which makes for a much smoother stream of liquid going down your throat. (Unlike Big Blue, this sports the exact opposite.) But another thing... It contains high-fructose corn syrup! I would have expected the glass bottle to use sugar, as it is with Coke and Pepsi, but I was wrong. RC isn't either of them, after all. Design I bought the bottle pictured at the top of the post, which is glass. This I like, however I could have bought the plastic variant for much cheaper. As always, quality comes at a price. I like the way the bottle is designed, meaning the way the way the neck of it melds with the body. It's very streamlined and unique. As for the logo, it's unexciting, but classic. RC Cola rarely changes their logo, and if they do it's always a minor change. Thumbs up to them for "Keeping it real," so to speak. But you don't buy RC Cola to look at the bottle, do you? (Well I do.) The twist-off metal bottle cap is definitely a nice touch. Overall Thoughts and Feelings RC Cola is more scarce than other brands, but if you can find it (Which I'm sure you can) it's definitely worth a go. RC Cola has much more to offer in terms of flavor, which is the key. It doesn't matter much that the bottle is boring, really. Buy it for the taste, you wont regret it.

3.

Philippines most successful RC Cola market outside U.S.

According to RCCI President Edmund O. April 8, 2013 Manila,

Philippines (DMA) Royal Crown Cola International (RCCI), which handles the marketing of the American soft drink RC Cola outside the U.S., has cited the Philippines as its most successful international market. RCCI President Edmund OKeefe said Friday that local partner Asia wide Refreshments Corp. (ARC) sell the soft drink very well in the country. ARC has 10 bottling and distribution plants in the Philippines. OKeefe and RCCI Managing Director Francis Lamprea were in Manila last week to take part in the celebration of the RCCI and ARCs 10th year of partnership. They visited a community for the homeless in the province of Pampanga to donate $60,500 to the Living for Christ Foundation, which is building and running the 700-home subdivision. ARC people led by its executive vice president and chief operating officer, Gerardo Garcia, accompanied OKeefe and Lamprea to the site to also donate the same amount at the foundation will use to construct a wet and dry market. ARC Chairman Alfredo Yao and Garcia also accompanied OKeefe and Lamprea to a courtesy call with Trade and Industry Secretary Gregory Domingo at the countrys financial district in Makati City Friday afternoon. In the meeting, OKeefe told Domingo that RCCI is also proud of ARC for turning many Filipinos into entrepreneurs as dealers of RC Cola.

The RCCI boss told Domingo he looks forward to ARC marketing RC Cola to neighboring countries in Southeast

Asia such as Myanmar, Thailand and Vietnam. ARCs bottling and distribution system were studied by RC Cola bottlers and distributors in Tajikistan and India for adoption in the said countries, added Lamprea. RC Cola was developed by Columbus, Georgia pharmacist Claude A. Hatcher in 1905 and reformulated by Rufus Kamm in 1935. The Dr. Pepper Snapple Group distributes the soft drink in the U.S. while the RCCI, a subsidiary of Cott Beverages of Canada, markets the product in other countries.

4.

According to O'Keeffe(2013), a key success strategy of

ARC in the Philippines is adopting a business model that values close partnership with dealers and encourages sustainable livelihood. "Yesterday, we visited a lady who started as a dealer six years ago in Antipolo. Today, she employs around 15 people," noted O'Keefe.Royal Crown Cola International (RCCI), the global beverage company of all independent bottlers of American soft drink brand RC Cola worldwide, has revealed that the Philippines is its most successful overseas market to date. Asia wide Refreshments Corporation (ARC) is the licensed bottler of RC Cola in the Philippines. "This [Philippines] is the most successful market of RC Cola. We make a good product that these gentlemen from ARC sell very well," remarked RCCI president Edmund O'Keeffe during a courtesy call at the Department of Trade and Industry (DTI) offices in Makati City on April 5. O'Keeffe was referring to ARC Chairman Alfredo M. Yao and Executive Vice President and Chief Operating Officer Gerry

T. Garcia, who both accompanied him and RCCI managing director Francis Lamprea in meeting DTI Secretary Gregory Domingo. RCCI executives were recently in the Manila to participate in the dinner gala that commemorated ARC's 10 years of valuing partnerships in the country. Lamprea added that ARC's unique distribution system leverages on the innate entrepreneurial spirit of Filipinos. Many communities thrive centered around the trade and commerce that RC Cola distributorships provide, especially in provincial and rural areas.

Commitment to delivering quality and a steady supply of products is also vital behind ARC's success in catapulting RC Cola to cult status in the Philippine market. Now, the Philippine RC Cola business is serving as a model for bottlers in other RC Cola markets such as Tajikistan and India. Representatives from the RC Cola distributorship in these two countries recently visited the ARC plants to study its operation for adoption of best practices in their respective businesses "We're hoping that Mr. Yao and Mr. Garcia will take the brand to other developing countries," said O'Keeffe on expansion plans. From one plant in Antipolo when ARC reintroduced RC Cola to the Philippine market a decade ago, the company now has 9 plants, including one in Cagayan de Oro that started operation in February and a partner bottler in Cebu.

5.

According to Nelson C. Bagaforo of Sun Star Davao

(2011) as part of their continuing expansion program, Asia wide Refreshments Corp. (ARC), maker of RC Cola soft drink brand, is reportedly setting up a bottling plant in Cagayan de Oro City to serve Northern Mindanao. This CdeO plant will be the second in Mindanao after the Binugao plant in Davao which opened just last year. ARC has five other bottling plants situated in Metro Manila, Southern Luzon and Central Luzon. As a history, Gerry Garcia, current ARC executive vice president and chief operating officer, along with Tony Panajon and Butch Aves, decided to set up their own soft drink company in 2002 and later teamed up with successful entrepreneurs Alfredo Yao and Ricky Sandoval to establish ARC. Empowered with an exclusive license awarded by Royal Crown Cola International, USA to manufacture and distribute RC Cola in the Philippines, ARC steadily gained recognition. Under the guiding hand of its founders, ARC, a 100 percent Filipino owned, continues to flourish and is now a major player in the beverage industry. It has at least realized its vision to be the lowest cost producer of ready-todrink, non-alcoholic beverages and to be able to market products with the best quality and value. The all-time favorite cola in America since 1905 is now one of the preferred cola in Metro Manila. RC Cola is now available in 240 ml, 800 ml returnable bottles, 1.5 liter PET bottles and 330ml cans. Will RC Cola click in CdeO? Just some additional info,

Alfredo Yao owns Zest-O Corp. which has a plant in El Salvador so most probably; the bottling plant will be set up there.

Foreign Sources

1.

Crazy for RC in Chile

August 18, 2010 by RC Cola International According to the Canadian 2009 Carbonates Report, Chile consumed roughly 2.09 billion liters of carbonates in 2008 and is projected to consume just over 2.19 billion liters of carbonates in 2010. This equated to 124.4 liters per capita, second in South America only to Argentina. And now, even more Chileans can enjoy the many flavors of RC, including RC Cola, RC Light, and RC Q Tropical, Lemon-Lime, Lemon, Fantasy, Sun and Ginger Ale. Royal Crown Cola International has teamed up with Embotelladora Latin-American S.A. (ELSA) to launch RC Cola throughout the country of Chile. ELSAs team is thrilled about working with a globally recognized brand, such as RC Cola. Their fervor for the brand will only add to the excitement created by the Crazy for RC marketing campaign rolling out in September. Combined with daily print advertisements, the Chilean campaign will be supported by television spots and viral presence. Referring to the impending partnership, Edmund OKeeffe,

President of Royal Crown Cola International, said, RC Cola International is proud to be teamed up with such a distinguished organization. We welcome Embotelladora LatinAmerican S.A. to the Royal Crown family of bottlers and look forward to a long, profitable relationship.

1. RCCI Technical Services International Seminar Posted on August 18, 2010 by RC Cola International RCCI Technical Services conducted an international seminar in Manila Philippines on March 4th and 5th for the Far East & South Asia bottlers. There were 28 participants attending the seminar from India, Thailand and Philippines. External & RCCI teams presented an update on the latest technologies, productivity improvement tools, and conducted an interactive training exercise. The guest speakers included specialists from Ecolab, Sidel and Anton Paar. Topics Covered:
1.

Food Safety, Cleaning and Sanitation in Beverage

Plants (by Mr. Albert Lee from Ekolab)

2.

CO2 & Brix Measurement, in Plant and in Line (by Mr.

Alfred Baumegger from Anton Paar)

3.

Bottle Blowing: Basics of Bottle Design, Preform

Selection, Trouble Shooting (by Mr. Patrice Lesage from Sidel)

4. 5.

RCCI Technical Services (by Toby Polhamus from RCCI) Six Sigma Tools Affinity Diagrams, Root Cause

Analysis, Process Mapping & Control Charting, Lean

Manufacturing Tools 5S, Kaizen Events, Changeovers

6.

and Rapid

(by Tim Adams from RCCI)

The Importance and Application of Sensory in the Plant

(training by Toby Polhamus and Krishna Mohan from RCCI) Participants were challenged and rewarded for participation and input in the interactive exercises. The seminar closed with survey completion and presentation of certificates to participants. The seminar was received very well. The participants have given an overall rating of 4.48 out of 5.0 in their feedback survey for the overall value of the seminar.

2. First moment of truth, when a consumer becomes a shopper Posted on May 15, 2012 by RC Cola International A high priority for bottlers and distributors, and ultimately retailers, is to drive consumers from the street into the store. An enticing store exterior, especially in high traffic areas, can be a huge factor in how many consumers actually step inside and make a purchase. Understanding this importance, Iceberg Foods Limited, RC Cola bottler and distributor in India, launched a pilot program aimed to increase RCs market presence and to satisfy existing and underserved market needs. Marketing tools, such as billboards, counter wraps, and exterior paintings, were used to execute the branding activity. In the 50 outlets chosen, the results were overwhelming as sales increased 200%!

This entry was posted in India, News from Around the World.

3. RC Cola continues to shake up the UKs cola market Posted on May 15, 2012 by RC Cola International Following the successful launch of RC Cola regular and diet in March 2011, Asda stores across the United Kingdom have announced the addition of two new flavors, RC Cherry and RC with zero calories. With almost half a million households having already tried the brand, the new product offerings will expand the brands in-store presence, help attract new consumers, and offer existing customers more ways to enjoy one of Americas original colas. Launch activities include special trial prices, on-pack promotions, in-store sampling, consumer giveaways, social media, and traditional public relations. This entry was posted in News from Around the World, United Kingdom.

4. RC Cola debuts new, exotic flavors for RCCI global bottler network. According to Shiela Wan (2012), Royal Crown Cola International (RCCI) announces the availability of an array of new flavors in its beverage portfolio for its global bottler network. RCCIs expanding bottler network in emerging markets such as Africa, Southeast Asia and Latin America now has access to RC Kick cola and the RCQ Special Edition Flavors line.

These new options give bottlers an edge in markets where consumer demand for greater flavor variety is growing, broadening their sales potential. The new flavors are additions to RCCIs existing portfolio of beverage products, which include RC Cola, RCQ, Upper 10, Cott Rain Energy Drink, Chadwick Bay and Ben Shaws. RC Kick Cola combines RC Cola with the added punch of guarana, an exotic fruit that gives a natural energy boost. Along with guarana, RC Kick Cola features an advanced blend of sugar and sweeteners to deliver a taste that stays true to the RC Cola flavor consumers know and love, but with fewer calories. Its preformatted packaging designs can be tailored for any market and are available for 2L and 0.5L bottles, as well as 16 ounce cans. The packaging graphics deliver shelf impact that grabs consumer attention, while the coloring and brand messaging clearly communicate the benefit of guarana and reassure shoppers that they are getting the delicious taste for which RC Cola is known. Formulated with exotic refreshment in mind, the RCQ Special Edition Flavors line offers a mouth-watering assortment of flavors including Guava Melon, Cranberry Acai, Sicilian Lemonade and Guarana. Each flavors packaging incorporates a unique creature character that identifies the specific variant to generate attention in stores and forge recognition.

Related Studies

Local Sources

1. Base on the studies of Rizza Alfonso (2011), MANILA, Philippines - Waves of refreshing golden amber cola sweep across the screen in rhythm with a rock song, carrying viewers through an adventure into the RC Cola world. The 2011 local television commercial of RC Cola can be considered the first-of-its-kind, using world-class special effects in computer graphics imagery. The TV advertisement was directed by Canadian-Filipino director Marc Andre Debruyne, who regards the project as a real challenge because, he says, animation of cola has never been done this way before. Some sequences were shot live, requiring large vessels of cola to create and capture those special splashes and vortex, while the rest are 3D computer simulation done by a leading visual and animation house in Kuala Lumpur, Malaysia. In the past, celebrity endorsers helped gain mileage for the RC Cola brand in the minds of consumers. This year, however, as the product celebrates its eighth anniversary in the Philippines, executives of local licensee Asia wide Refreshments Corporation (ARC) felt that the company was ready to put the product front and center of the advertising campaign. Having already established solid brand equity through the years, Rizza Alfonso, ARC senior manager for marketing, says, ARC wanted to showcase the

brand itself this time. Our advertisement focuses more on the brands unique attributes. Visuals of carbonated fizz forming into enduring national symbols that represent the countrys major regions show how much the product has become a part of the Filipino lifestyle. RC Cola was unheard of by an entire generation of Filipinos since the 1970s when RC Cola was first introduced in the country and then pulled out of the market that same decade. In 2003 when it was reintroduced here, from a virtual unknown in an arena dominated by giant soft drink brands, ARC slowly but surely built up a steady network of distribution and consumption that has made it the most preferred cola brand in Metro Manila today, catering to a national market that yearns for value. The fact that Filipinos have embraced an international brand like RC Cola and made it their own was captured in the rock-anthem style of Kamikazees Tamis ng Unang Tikim. The catchy, high-energy song full of attitude and heart talks about that sweet, unforgettable first sip. Most people thought that the song was created specifically for the commercial, but, in fact, it was an already recorded hit song of the popular Pinoy band from its Long Time Noisy album. Company executives and ARCs in-house advertising team decided it was the perfect audio background to the new generation TV ad that proudly proclaims RC as Cola ng Bayan. 2. Base on the study of Efren Peaflorida Jr. (2012) - An extraordinary thing happened one ordinary afternoon in

March 2012. The place was Cavite City, and the humble but purposeful kariton became king of the road. Pushcart after pushcart assembled on the pavement, not in a parade but in a peaceful revolution on the streets, representing stubborn hope that plods on through the grittiest of circumstances. The Kariton Revolution was spearheaded by the Dynamic Teen Company of Efren Peaflorida Jr. and Cavite Citys SK Federation, in cooperation with the Tourism Council, the city government, and the local Department of Education. Various pushcarts were decked out to represent the following causes: kalikasan, kabuhayan, kalinangan, kapayapaan, kabataan, karunungan, kalusugan (nature, livelihood, culture, peace, the youth, knowledge, health) aiming to ignite a spirit of community volunteerism. The caravan commenced at the Ladislao Diwa Elementary School, where townsfolk, local officials, and celebrities recommitted to the task of nation building. One of the companies that participated in the advocacy campaign was Asia wide Refreshments Corporation (ARC), Philippine bottler of RC Cola. Championing the Kabuhayan crusade, ARC donated an RC Cola food kiosk fitted with a set of wheels so it could roll down Cavites thoroughfares during the caravan, and to serve as a mobile sari-sari store afterwards. The ARC management believes in the advocacies of DTC; thus, the kiosk will go a long way as a revenue-generating resource to further enable DTC to enable others. Kariton Revolutions advocacy is multi-pronged, precisely because real lifes like that: literacy and livelihood have

health implications, which in turn affect the peace and order situation, and so on. This network of shared needs and values is something that ARC can understand because as a retail company with global ties, its stakeholders include customers, employees and their families, investors, distributors, and host communities, among others. By supporting the Kariton Revolution, ARC reiterates its pledge to be a good neighbor. Positive transformation is a beautiful, inspiring thing, but the process is not easy. Volunteers of DTC started out by lugging backpacks that contained study materials, and as the number of their street pupils grew, the backpacks they carried grew heavier as well, pushing them to restrategize. Bonn Manalaysay, mentor to Peaflorida and other emerging street heroes, recounted how a youth volunteer who was a former mais vendor suggested that the kariton could be maneuvered even through a narrow eskinita. The humble vehicle proved to be an excellent metaphor for pushing on despite the odds, and provided an opposite, hopeful image to crab mentality, that attitude of pushing and pulling, stepping on and grabbing, so desperate and negative that it ensures virtually no freedom from the dire situation. Kariton Klasrum eventually won for Peaflorida the CNN Hero of the Year award in 2009. Today, the alternative learning program is being adopted by the Department of Education, and is being replicated in different parts of the country and soon, also in Indonesia. It was important for the Kariton Klasrum to first grow roots in Cavite, where, like in many barangays in the country, children as young as seven years old are already

being recruited as gang members, said Manalaysay. In Cavite, we have the Samahan ng mga Mangingisda, the TODA but people are not aware that they should also mobilize for the sake of peace and order, the environment, and other causes. Its about time, and Cavite is a good place to start given that it is the countrys seat of independence.

3. Base on the study of Gerry Garcia (2009), ARC executive vice president and chief operating officer, said its market share has been achieved based on an attainment of only 65 percent distribution capacity of the plant.The Asiawide Refreshments Corp. (ARC), maker of RC Cola soft drink brand, has already captured 30 percent of the cola market in Davao City, barely five months since the company opened its P500-million plant in Binugao, Toril district here. "This proves that Davaoenos like our product," he said. Garcia said at present, RC Cola brand is being distributed by at least 300 business partner dealers and distributors in Davao City and neighboring areas. "The plant is not yet fully operational, but we are already giving the market an option at the same time empowering our dealers and distributors to boost their income," he said. Garcia said the Binugao plant is the company's sixth and the first to be established outside of Luzon. Five other bottling plants are situated in Metro Manila, Southern Luzon and Central Luzon. He said capturing almost one-third of the market in Davao City is not an easy feat for this new player in the beverage industry, as its executives believe the five-month period was so short a time for their cola products to make a niche in the market.

At the moment, Garcia said the company is not looking into dominating the market, but would rather focus on areas that have remained untapped. "We are not here to kill our competitors. We are here to provide the market and the dealers with an option and we are on the right track," Garcia said. He attributed RC Cola's fast growth in this part of country to the novelty of tasting a new product and brand recall. Garcia also pointed out that its "revolutionized" business model that focuses on building business partnership with dealers and distributors also worked for the company. "We don't offer exclusivity. We are the only company that is open to competition," he said. "In a monopolized market, the dealers feel they are controlled. They feel they have no leverage to negotiate for a better deal. We come in and they have an option," he added. Garcia said the company also provides its retailers and distributors incentives and an implement measures how it can improve their business.

4. Base on Krista Angela M. Montealegre, InterAksyon.com (June 25, 2012) MANILA Former ambassador Alfredo M. Yao will wait for the financial market turbulence to pass before pursuing a plan to list his beverage businesses.

"[The] plan [is] still on but we will wait for [the] right timing. We think it [market] will stabilize soon," Yao told InterAksyon.com in a text message.

Yao chairs Zest-O Corp as well as Asia wide Refreshments Corp (ARC), which holds the license to manufacture and distribute RC Cola in the Philippines. Last February, Yao said ARC's maiden share sale will happen ahead of Zest-O and will be bigger than the P3.19 billion that thrift lender Philippine Business Bank raised from an initial public offering (IPO) early this year. Proceeds of the possible IPO will bankroll RC Cola's domestic and overseas expansion. The group of Yao, Antonio Panajon, Gerry Garcia, Butch Aves and Ricky Sandoval formed ARC in 2002 and secured the exclusive RC Cola license from Royal Crown Cola International. Aside from flagship RC Cola, ARC markets Zesto Fruit Soda and Arcy's Rootbeer.Zest-O was established in 1981 as Semexco Marketing Corp, pioneering the first-ready-to-drink juice drink in flexible foil pouch. The company operates five manufacturing plants around the country and employs approximately 100 personnel for each facility.Zest-O markets the flagship Zest-O, Sunglo and Big 250 juice drinks as well as health drinks under the one brand.

5. Base on the study of Christian Bautista (2013) - The group of former Ambassador Alfredo Yao plans to list its soft drink company RC Cola following the success of its initial public offering (IPO) for Philippine Business Bank (PBB). The move is expected come ahead of the group's planned IPO for juice drink unit Zest-O Corp. and airline Zest Air.

Yao said that he plans to list RC Cola within the year and expect proceeds to be "definitely be bigger than PBB." The PBB stock listing, which took place on Tuesday, February 19, generated P3.2 billion. The PBB stock opened at P34.75, higher than the IPO price of P31.50 per share. The stock contributed to another record day at the Philippine index, which breached the 6,600 mark for the first time ever. Yao owns a majority stake in Asia wide Refreshments Corp. (ARC), which has the exclusive rights to manufacture and distribute RC Cola in Southeast Asia. He said that the company is considering opening manufacturing plants in Thailand, Myanmar and Vietnam. ARC has 14 plants in the Philippines and is looking toward expansion. It recently opened a plant in Cagayan de Oro and is set to open another facility in Pangasinan within February. Yao, who said that he is eyeing a public float of 30% to 35% for ARC, attributed RC Cola's competitiveness to its use of returnable bottles, which makes the beverage cheaper. ARC, the exclusive distributor of American brand RC Cola, began its operations in 2002.Among the company's soft drink brands are RC Cola, Zest-O and RC Root beer.

Foreign Sources

1.

RC Cola is Better than Pepsi or Coke, base on the study of

Q. Reyes Apr.18, 2010 in Artistic Warfare Theres no denying that RC Cola tastes better than Pepsi or Coke. This is a fact that discerning soda drinkers Whats the throughout the world have known for many years.

problem? Marketing. RC Cola doesnt have the money to hire the Michael Jacksons, or Britneys, or Shakers or animate cute polar bears and run propaganda campaigns on television. They dont have the connections to partner up with the McDonalds or KFCs of the world in order to sell their beverage. RC Cola is for real people. why? better. well. Real poor people. You know Because their price is right, but their quality is Im not saying Pepsi or Coke doesnt have their Im speaking of people buying into marketing rather

valid merits theyre beverages that get the job done, as than true taste. For example, Shasta is a no-no even for poor people. Even though their price is right too, theres something extremely suspicious about .99 cents for 8 gallons of soda. The math just doesnt add up. On top of the price being Not just suspiciously low, if you dont drink your Shasta 4-liter within 2.2 seconds of opening it, it goes flat. flat but disgustingly flat. Im hoping not to offend anyone with my observation today, and I hope my Shasta comments werent too harsh or politically incorrect. I could dig in deeper and start calling out other sodas, such as Wal-Marts American Fare

or Big K soda (from the east coast), but I think Ive ruffled enough feathers with crowning ROYAL CROWN as the ultimate soda for the working class. Royal Crown Soda the official blue collar drink!

2.

Base on Olly Wehring, (2012) Cott Beverages' RC Kick

cola, RCQ Special Edition Flavors. Category - Soft drinks, CSD Available - From this month Location - Global, including Africa, South-East Asia and Latin America Price - Not specified Distribution - Royal Crown Cola International Cott Beverages has launched two CSD flavor lines through its Royal Crown Cola International (RCCI) unit. RC Kick Cola is a blend of RC Cola and guarana. The RCQ Special Edition Flavors range comprises Guava Melon, Cranberry Acai, Sicilian Lemonade and Guarana.

3.

Royal Crown Cola International salutes growing African

cola thirst

Base on Ben Bouckley, (Aug-2012) RC Cola International (RCCI) says that per capita cola

consumption is low in Africa and that it plans to exploit growth opportunities across the continent by growing its bottling network there. The company recently attended the SAITEX and Africas Big Seven 2012 show in Johannesburg, South Africa, where it discussed its bottling network expansion in emerging markets such as Southeast Asia, Latin America and Africa. Moshy Cohen, vice president of marketing for RCCI (a subsidiary of Cott Beverages since 2001) told BeverageDaily.com that the firm didnt see Africa as a single country with a single opportunity. The cola market in Africa has been developing over the years. At the same time, the per capita figures are still very low and there is room for a great deal more growth, he added. Market share could vary he was responding to a question regarding the extent of the market opportunity for RCCI in Africa as it expanded its bottling network. There are more than 40 countries that make up Africa, each with its own market opportunities, and RCCI considers each one on an individual basis, he told BeverageDaily.com. We analyze what each markets requirements would be, review the product portfolio and identify the different potential bottling operations.As a result, Cohen said, the potential market share for RCCI could vary considerably in Africa; based on the firms global experience, it varied from 5% to 30%.Cohen refused to be drawn on whether RCCI faced a fight in Africa against established local brands and obvious bigger multinational rivals, i.e. Pepsi and Coke.

4.

RC Cola comes to India

Base on Ratna Bhushan,New Delhi , Oct. 6,2003 EVEN as the controversy over high traces of pesticide in soft drinks is yet to be sorted out, the world's third largest cola brand, Royal Crown Cola (or RC cola), has now come to India. While RC Cola was introduced in Delhi, and parts of Punjab and Haryana on Sunday, the brand was soft-launched in pockets of Andhra Pradesh and Madhya Pradesh almost a month back. The RC Cola brand was acquired by the London-based Cadbury Schweppes Plc in October 2000. However, subsequently, the Canada-based Cott Cola acquired the rights for the RC Cola brand for all world markets other than the US. In the US, RC Cola claims an approximate two per cent share of the total cola market, while 12 per cent of the brand's sales are outside the US and Canada. RC also supplies concentrate to some other soft drink brands. For its Indian operations, the company has appointed three licensing, franchising bottlers. While the Delhi-based Shivam Cool Drinks has been appointed as RC Cola's bottler for the Delhi, Western Uttar Pradesh, Haryana, Uttaranchal and Chandigarh markets, Asian Lak Health Foods Ltd has been appointed as RC Cola's bottler for Punjab, Haryana and Chandigarh. For the Andhra Pradesh and Madhya Pradesh markets it is Trinity Beverages. RC Cola has been introduced in PET bottles of 600 ml and 2-

litre, priced at Rs 15 and Rs 40, respectively. There are no immediate plans to foray into glass bottles, Mr. Rehan Khan, Head, Operations, Shivam Cool Drinks, told Business Line. However, in acknowledgement of the fact that small sizes would be required to drive volumes, options of introducing RC Cola in smaller PET bottles are currently being explored. "The smaller bottles, at lower prices, could be introduced a couple of months later. However, the plans have not yet been finalized, Mr. Khan said. While RC Cola is being introduced in `cola nut' (a tropical cola nut) flavor for the time being, the brand will be introduced in lemon and orange flavors the following month. Meanwhile, the company claims it has made all efforts to ensure safety of the ground water for bottling the beverage. According to Mr. Khan, the groundwater being used by Shivam Cool Drinks for RC Cola, for example, has been cleared by the verification and testing institute, SGS India Pvt Ltd. Unlike Coca-Cola and Pepsi, RC Cola will not splurge big budgets on marketing and celebrity advertising. "We are not competing with Coke and Pepsi head-on. Currently, the brand is in test-marketing stage, and we have to gauge consumer response to RC Cola before finalizing specific marketing strategies," Mr. Khan said.

5.

RC Takes Fight on Coke, Pepsi Deals to Public : Ads

Object to Dr Pepper, Seven-Up Acquisitions.

Base on the study of Jube Shiver Jr., June 12, 2000 Times

Staff Writer Royal Crown Cola Co., seeking to boost its bid to block separate corporate mergers proposed by soft-drink giants Coca-Cola Co. and Pepsico, is launching a nationwide advertising campaign today encouraging consumers to oppose the mergers. At issue are two merger plans that would concentrate 80% of the U.S. soft-drink industry in the hands of the two beverage giants. Coca-Cola has proposed a $470-million buyout of Dr Pepper, and Pepsico has announced plans to purchase Seven-Up Co. for $380 million. Both mergers are under review by the Federal Trade Commission in Washington. Many analysts say the deals pose a key test of how far the Reagan Administration will go in allowing companies to combine as they wish. Royal Crown argues that the mergers would reduce competition, drive independent bottlers out of business, increase prices for consumers and "and threaten the jobs of thousands of workers." Ad Campaign The company has purchased full-page advertisements headlined "The Cola Wars and You," scheduled to appear in seven major daily newspapers, including the Los Angeles Times, at a total cost of $200,000. The ads, signed by James W. Harralson, executive vice president and chief operating officer of Royal Crown, explain the company's position and ask consumers to let him know how they "feel about this issue."

"Soft-drink consumers would be better off if RC's marketing programs were as aggressive and well-funded as its lobbying efforts," countered Pepsi spokesman Jim Griffith. "The consumers' interest is best served by a variety of topquality products that are aggressively marketed. . . . That's exactly what our purchase of Seven-Up is designed to produce." In Atlanta, a Coca-Cola spokesman said: "Our proposed acquisition of Dr Pepper does not violate antitrust law and is pro-consumer." Royal Crown, the sixth-largest beverage company in the United States, has been a vocal opponent of the separate mergers planned by Coke and Pepsi since the deals were announced about 4 1/2 months ago. A spokeswoman for the FTC declined to comment on the proposed mergers, saying that it's the agency's policy not to discuss whether it is investigating any mergers. But spokesmen for Coke and Pepsi confirmed that the FTC, which did not seek court injunctions against any proposed corporate mergers last year, is continuing its review.

References:
1.

http://business.inquirer.net/108483/local-rc-cola-

firm-eyes-ipo
2.

http://topazreviews.blogspot.com/2010/12/topaz-review-

of-rc-cola.html
3.

http://dmanews.com/philippines-most-successful-rc-

cola-market-outside-u-s-8448.html.
4. 5.

http://www.rcciinsight.com/index.php/2010/08/chile/ http://www.rcciinsight.com/index.php/2012/05/first-

moment-of-truth-when-a-consumer-becomes-a-shopper/
6.

http://www.rcciinsight.com/index.php/2012/05/rc-cola-

continues-to-shake-up-the-uks-cola-market/
7.

http://wwa.interaksyon.com/business/64894/as-stock-

market-tanks-zest-os-alfredo-yao-puts-ipo-plan-on-hold
8.

http://balita.ph/2009/11/08/rc-cola-captures-one-

third-of-cola-market-in-davao-city/

RESEARCH PARADIGM

HYPOTHESIS Research Hypothesis: It is hypothesized that, If that the Rc cola content would be safe for those consumer, if theres negative side such as acid, fats and etc. What would be the efficient ways does the Rc cola company will be used to keep their consumer still patronized it. If their market strategies will be the top reasons why does they become the top manufacturing company in local beyond of those multicompany competitors.

OPERATIONAL DEFINITION OF TERMS The following terms are defined operationally and lexically to provide a common frame reference:

1.Acquisition. The act of acquiring or gaining possession: the acquisition of real-estate. 2. Advertise. Describe or draw attention to public medium to order to promote sales or attendance. 3.Advertisement. A public notice; means to inform and give knowledge about a particular product.
4.Affinity Diagram. Is a business tool used to organize

ideas and data. 5.Affordable. Inexpensive; reasonably priced. 6.Aspect. A particular part or feature of something. 7.Beverage. A drink; esp. One other than water.

8. Blue Collar. Designating manual industrial work or workers. 9.Brand. A type nof product manufactured by a comapany under a particular name. 10.Boost. A source of help or encouragement leading to increase or improvement. 11.Business. A person, partnership, or corporation engaged in commerce, manufacturing, or a service; profit-seeking enterprise conc ern. 12.Business Model. Design of the operations of a business which focuses on how revenue will be generated. 13.Capacity. The maximum amount of something that contain. 14.Cola. This refers to a carbonated soft drink colored usually with caramel and flavored usually with extracts from kola nuts. 15.Company. A commercial business. 16.Consumer.A design of the operations of a business whichf ocuses on how revenue will be generated. 17.Consumption. The using of a resource. 18.Corporation. A company or group of people authorized to act as a single entity and recognized such as in law. 19.Control. The power to influence or direct people's behaviour or the course of events. 20.Data. Facts and statistics collected together for reference or analysis.

21.Deliver. Bring a hand over (a letter; a parcel; or ordered goods) to the proper recipient or address.
22.Diet Rite.

Is a brand of no-calorie soft

drinks originally distributed by the RC Cola company. It was introduced in 1958 and initially released as a dietetic product, but was introduced nationwide and marketed to the general public as a healthful beverage in 1962. 23. Distributor. An agent or who supplies goods to stores and other businesses that sells to the consumers
24.Entrepreneur.A person who organizes and manages any enter

prise, especiallya business, usually with considerable init iative and risk. 25. Enterprise. A project undertaken or to be undertaken, especially one that is important or difficult or that requires boldness or energy: To keep the peace is a difficult enterprise. 26. Experiment. A scientific procedure undertaken to make a discovery; test a hypothesis ; or demonstrate a known fact. 27. Experts. A person who has a comprehensive and authoritative knowledge of or skill in a particular area. 28.Financial. Relating to finance. 29. Fizz. Soda water or other effervescent water. 30. Flagship. The best or most important one of a group or system: This store is the flagship of our retail chain. 31. Flavour. The distinctive quality of a particular food or drink as perceived by the taste buds and the sense of smells.

32. Flourish. A bold; extravagant gesture or action; made esp.; to attract the attention of others. 33. Footprint. The area covered by something; in particular. 34.Franchise. An authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities. 35.Ginger Ale. A sweetened effervescent nonalcoholic drink flavored with ginger extract. 36. Industry. Economic activity concerned with the processing of raw materials and manufacture of goods in factories. 37. International. Existing; Occurring; or carried on between two or more nation. 38. Investment. The action or process of investing for profit or material result. 39.Legend. A traditional story of popularly regarded as historical but unauthenticated. 40.Litter. A metric unit of capacity; formerly defined as a volume of 1 kilogram of water under standard condition. 41.Network. Connect as operate with a network. " the stock exchanges are resourceful in networking these deals. 42.Manufacture. The making of articles on a large scale using machinery. 43. Market. A regular gathering of people for the purchase and sale of provisions; livestock; and other commodities. 44.Meeting. An assembly of people for discussion or

entertainment. 45.Partner. A person who takes part undertaking with another or others; esp.; in a business or company with shared risks and profits. 46.Partnership. The state or condition of being a partner; participation; association; joint interest. 47.Patronize. Treat with an apparent kindness that betrays a feelings or superiority. 48. Pharmacist. A person who is professionally qualified to prepare and dispense medicinal drugs. 49.Physical assets. Actual property such as precious metal or real states. Also called real or tangible assets. 50. Place. A particular position or point in space. 51.Popularity. The state or condition being liked; admired; or supported by many people. 52. Plan. A detailed proposal of doing or achieving something. 53. Price. The amount of money expected; required or given in payment of something. 54.Private. Belonging to or for the use of one particular person or group of people only. 55. Produce. Make or manufacture from components or raw materials. 56. Process Management. Is the ensemble of activities and planning and monitoring the performance of the process.

57. Products. A particle or substance that is manufactured or refined for sale. 58.Production. The action of making manufacturing from components of raw materials; or the process of being so manufactured. 59. Promotion. The publicization of a product; organization; or venture to increase sales or public awareness. 60.Refreshment. A giving of fresh metal or physical strength or energy. 61. Refreshment. A giving of refresh metal or physical strength or energy. 62. Strategies. A plan of action or policy designed to achieve a major or overall aim. 63. Sell. Give or hand over (something) in exchange for money. 64. Society. The aggregate of people living together with in a more or less ordered community. 65.Soda. Carbonated soft drinks. 66. Soft drinks. A Non-Alcohol beverage typically contains water. Usually a sweetener and usually a flavouring agent. 67.Spanning. To extend or Reach over or across (space or time) 68. Taste. The sensation of flavour perceived in the mouth and throat on contact with a substance. 69.Thirst.A sensation of dryness in the mouth and throat ca

used by need of liquid. 70.Website. A computer connected to the internet that maintains a series of web pages on the World Wide Web. 71.Customer experience Quality Satisfaction with a firm, its refers to "the or of number of

customers, or percentage of total customers, whose reported products, to act its services all (ratings) exceeds specified satisfaction goals."(3) management
(4)

refers

overseeing

activities and tasks needed to maintain the desire level to of excellence.

72.Service quality - refers to customer service need and expectation. 73.External customer service - refers to "the ability of an organization to constantly and consistently
(5)

give

the

customers what they want and need," 74.Internal customer customer is refers to to

the those

service whom
(6)

is

when

service

provided

business

depends on for its day-to-day operations. 75.Variables refers to

characteristics,

number,

or quantity that can be measured or counted.

SYNTHESIS OF REALTED LITERATURE AND STUDIES

The above literature and studies were virtually helpful to comprehend and be aware of the issues and problems as well as the status of RC Cola Company in the

industry on beverages in the Philippines. Most customers are aware to meet their satisfaction or fulfill their wants and needs, to maintain the desire level of their beverage. The relevance of this study is to have more idea about how you treat and respect the customer. Because were the lifeblood of any beverages are not given proper attention and meaning to the taste that suite to their target market. Loyalties of customer for the RC Cola Company and customer satisfaction were really hardest part of Quality Management. Along in the line of relevance, the study of Q. Reyes was makes the researcher aware on the marketing strategies of RC Cola Company applied to the beverages business. In the review of O'Keeffe (2013), a key success strategy of ARC in the Philippines is adopting a business model that values close partnership with dealers and encourages sustainable livelihood.

The reviewed literature and studies give the researcher valuable insights, ideas, pointers in the design and development of the study which an edge of RC Cola Company to the Multi- Company of beverages.