PROJECT

RE-LAUNCHING OF RC COLA
(A Cool.. Pakistani Taste)
STRATEGIC MARKETING MANAGEMENT
MUHAMMAD NOMAN-2524
MBA- MARKETING
SPRING 2010
INTRODUCTION
 MAJOR MILESTONES
1905: Mr. Claud Hatcher, Founder, Established the “Union Bottling Works” in
Columbus, Georgia in the basement of the wholesale grocery business of his family.
1910: The first line of fruit flavored beverages was named Royal Crown and the first
cola drink was called Chero-Cola.
1912: Started to manufacture a line of syrups and flavor concentrates and
established a franchised system by licensing sales territories to its bottlers under
trademarks of the now Chero-Cola Co.
1925: Over 300 bottlers were part of the bottling network producing Chero-Cola.
263 of these bottlers also produced the fruit flavored products under the new brand
Nehi.
1928: The Company changes its name to The Nehi Corporation.
 MAJOR MILESTONES
1933: Mr. Claud Hatcher died on December 31st.
1934: Chero-Cola is reformulated and the new product is named Royal Crown Cola.
1940: The Nehi Corporation is listed on the New York Stock Exchange.
1940: The Company first uses results of blind taste tests in the advertising campaign “Best
by Taste Test”.
1946:The Company began to enhance its advertising by using entertainment celebrities
like Bing Crosby, Joan Crawford, and Hedy Lamarr.
1958: Company changes name for the third time to Royal Crown Cola Company.
2000: Royal Crown Cola Co. is acquired by Cadbury Schweppes.
2001: Royal Crown Cola International is acquired by Cott Corporation.
2005:Royal Crown Cola Co. commemorated its 100th Anniversary.
 RCCI BRANDS PORTFOLIO
RC Cola

Diet RC Cola

Cherry RC Cola

RC Edge Cola

Diet Rite Cola

RCQ

Royal Crown Draft Cola

Kick
 RC COLA IN PAKISTAN
RC cola was a very famous drink in Pakistan.

It was well known since the time of its arrival in the sub-
continent which was the 70’s.

Internationally RC cola faded away by the early 90’s.

Reasons for RC Cola Loosing Market in Pakistan
Pepsi Cola and Coca Cola stormed into the market.

Advertising was minimal in Pakistan as compared to its

competition.

RC Cola was being sued by different organizations internationally

so it lowered its investment in the sub-continent.

RC finally stopped production somewhere in the early 90’s.

 NEED TO RELAUNCH
The initiative to re-launch RC cola seems to be a great idea,
as it is a cash crop for Royal Crown all over the world.

Before going to re-launch RC Cola in Pakistani market,

several things should be analyzed.
 Market Analysis of Soft drinks
Market share of soft drinks in beverage industry

Age factor affecting the sales

 Pakistani Soft Drink Industry
75 million cases a year for Pepsi alone.

The total beverage market is about 120 million cases of

which 65% per cent are Pepsi products.

20 to 22 %are Coca-Cola products and there are so many

colas. 　
 Industrial SWOT Analysis
Strengths:

The soft drinks market in Pakistan enjoyed dynamic growth over the review
period in both volume and current value terms.
Carbonates dominate the market in both the on-trade and off-trade with the
lion's share of sales.
Carbonates have become part of the culture in Pakistan and multinational
companies have maintained their standards over the years to provide
consumers with high-quality carbonated drinks.
Off-trade sales of carbonates are higher than those of the on-trade but both
achieved strong growth over the review period.
 Industrial SWOT Analysis
Weaknesses:
Liquid concentrates and powder concentrates are both
seasonal categories in the market and their sales peak in the
summer in Pakistan.
Both Rooh Afza and Jam-e-Shirin are traditional sandalwood
drinks in Pakistan which are highly regarded by consumers.
These drinks can be found in every home in Pakistan, especially
in rural areas, throughout the summer and are the mainstay of
liquid concentrates.
 Industrial SWOT Analysis
Opportunities:
The government of Pakistan has reduced excise taxes to encourage soft
drinks manufacturers and importers.
The government also reduced other applicable taxes to promise more
profits not only for soft drinks manufacturers already in the market but
also to attract potential soft drinks manufacturers to invest in Pakistan.
The government also decided to tax the beverage industry on capacity
of production rather than on actual production and those brave move
encouraged soft drinks manufacturers to maximize production and
reduce prices.
 Industrial SWOT Analysis
Threats:
Increasing health and hygiene awareness among Pakistanis has greatly increased
sales of fruit juice products.
Both the government and the media have started health awareness campaigns to
make Pakistanis realize that consumption of fruit juice is as essential as eating food.
Fruit juices are doing very well in both urban and rural areas. On the other hand,
health and hygiene awareness has also led to increased sales of bottled water in
Pakistan.
Previously bottled water was targeted only at major cities where consumers are
more health-conscious and aware of the difference between bottled water and tap
water. Nowadays, health-conscious rural inhabitants also drink bottled water due to
health concerns.
 RC Cola SWOT Analysis
Strength:
 
RC Cola is the cola which is more than a 100 years old.

Weaknesses:
 
Low advertising budget.

 International Law suits.

 
 RC Cola SWOT Analysis
Opportunities:
 
To produce more concentrative and conglomerate products drinks.

The heat factor in the sub- continent.

To build a brand equity.

Threats:
 
Very strong established competitors.

This very fact that Royal Crown cola was faded away in the early 90’s.
 HOW Internal and External Factors Affecting the Strategies

EXTERNAL ENVIRONMENT
DEMOGRAPHIC FACTORS:
Age
Education
Population Distribution
Population Density
 HOW Internal and External Factors Affecting the Strategies

EXTERNAL ENVIRONMENT
ECONOMIC FACTORS:
Income and Income per Capita
Inflation
Consumer Behavior
Income Distribution
Payment Mode
Employment Opportunities
 HOW Internal and External Factors Affecting the Strategies

EXTERNAL ENVIRONMENT
ECONOMIC FACTORS:
Aggregate Demand
Aggregate Supply
Economic Policies:
Fiscal Policy
Monitory Policy
Price Policy
Income Policy
 HOW Internal and External Factors Affecting the Strategies

EXTERNAL ENVIRONMENT
PHYSICAL FACTOR:

Region
City Size
Climate
Infrastructure
 HOW Internal and External Factors Affecting the Strategies

EXTERNAL ENVIRONMENT
TECHNOLOGICAL FACTORS:
Research and Development

POLITICAL AND LEGAL FACTORS:

Political Stability
Mixed Economy
Laws Formulation
Social Responsibility
 HOW Internal and External Factors Affecting the Strategies

EXTERNAL ENVIRONMENT
SOCIAL AND CULTURAL FACTORS:
Psychographic
Religious
Social Status
Media
 HOW Internal and External Factors Affecting the Strategies

INTERNAL ENVIRONMENT
CUSTOMERS
SUPPLIER:
COMPETITOR:
DISTRIBUTOR:
 PRE-MARKETING MIX
TARGET MARKET
Demographic Factor:
Age – from 12-50 Years
Social Class – Upper, Upper Middle., Middle
Gender – Male and Female
 
 
Geographic factor:
Country – Pakistan
Province—Sindh
City – Karachi
Population – about 20 million
 
 MARKETING STRATEGIES
Mass Marketing
Positioning Strategy
Differentiation Strategy
• Basis of Differentiation
• Product Differentiation
• Image Differentiation
 PLANT LOCATION
RC has a factory at SITE industrial Area near Sher Shah Market which
covers an area of 5000 Yards.
The Project is located at D-210, Estate Avenue, S. I. T. E Industrial
Area, Karachi.
Land - One Acre Land.
On Prime Location of S.I.T.E on main Estate Avenue.
Front Main Road 176 feet wide Double Roads (Both Ways).
80 feet wide Road, along with entire Boundary wall of 500 feet CBL
Building.
 PLANT LOCATION
Status of Property: Freehold-Self Occupied (CBL)

Property is an Industrial Unit at S.I.T.E Ltd.,

Approved Plan by S.I.T.E Ltd.,
SITE Plan Approved.
Electricity - 168 KW Approved & Installed.
Sui Gas - Industrial Connection Approved & Installed.
Water Line (Two) 2" & 1" Industrial Connection Installed.
8 Telephone Lines.
Huge Sewerage system arranged.
Under Ground Water Tank Capacity 75000 Gallons.
Overhead Water Tank 5000 Gallons (continuous flow from underground tank).
PRODUCTION CAPACITY
DAILY PRODUCTION:-
500,000 LITRES A DAY
 
DENONMINATIONS OF BOTTLES
250 ML 500 ML
COST PER MANUFACTURE INCLUDING OVERHEADS

COST RS.7.75/=
SALE TO RETAILERS (250ML) RS.12.50/=
COST RS.20.5/=
SALE TO RETAILERS (500ML) RS.27.0/=
 WAREHOUSES
S.I.T.E. (WITHIN FACTORY)
NORTH KARACHI.
NAZIMABAD
MALIR
P.E.C.H.S.
 MARKETING MIX STRATEGIES
PRODUCT

RC Cola is the most popular brand in the international

market and is consumed by children and adults alike.
Consumers enjoy RC in more than 60 countries worldwide.
Royal Crown Cola International products are sold through a
global network of more than 100 franchised bottling plants
and distributors.
 MARKETING MIX STRATEGIES
PRODUCT
Offered Products:
RC Cola

Diet RC Cola

New Product Development

 MARKETING MIX STRATEGIES
PRODUCT
Offered Products:
RC Cola

Diet RC Cola
 MARKETING MIX STRATEGIES
PRODUCT
RC’s Ingredients
Carbonated Water
High Fructose Corn Syrup
Sugar
Caramel Color
Citric Acid
Natural Flavor
Caffeine.
 MARKETING MIX STRATEGIES
PRODUCT
Quality
RC Cola has a unique crisp and clean taste and it’s consistent
with its flavor no matter where you buy it. It has a refreshingly
great taste even if it isn’t cold.
Everything is tested from water samples to ingredients in order
to achieve the Quality of our Product.
 MARKETING MIX STRATEGIES
PRODUCT
DEPTH
The variants that will be offered by RC Cola in terms of size and quantity:
175 ml Mini Bottle
250 ml Regular Bottle
500 ml Bottle
1000 ml Regular Liter Bottle
1500 ml Disposable Bottle
3000 ml Jumbo Bottle
 MARKETING MIX STRATEGIES
PRODUCT
LOGO:
 MARKETING MIX STRATEGIES
PRICE
Following factors RC Cola should keep in mind while determining the
pricing strategy.
Price should be set according to the product demand of public.
Price should be that which gives the company maximum revenue.
Price should not be too low or too high than the price competitor is
charging from their customers otherwise nobody will buy their product.
Price must be keeping the view of their target market.
 MARKETING MIX STRATEGIES
Prices of different bottles PRICE
Quantity Price in Rupees
 
Jumbo 80
1.5 Liters 65
1 Liter 37
500ml 30
250ml 16
Tin 25
 MARKETING MIX STRATEGIES
PRICE
PRICING STRATEGIES:
Competition based pricing approach
Promotional Pricing Policy
Market Penetration Pricing Policy
Discounts
Quality Discount:
o 1/10 Discount
o 2/20 Discount
o 3 B – F Discount
 MARKETING MIX STRATEGIES
PRICE
PRICING STRATEGIES:
Incentives:
Incentive to Retailers
These incentives are in the shape of:
• Deep Freezers
• Return Tickets
• Free Transportation Services.
Incentive to Dealers
The best dealer of the year is awarded with a brand new Suzuki Pickup. The second best is
awarded with Motor Cycle. The third best is awarded with Return Ticket to Middle East.
 MARKETING MIX STRATEGIES
PRICE
Special Offers

RC Cola will give special offers to consumers on special occasions like

Ramadan and Eid days instead of decreasing the price of the products,
some special packs like Pakkora Mix, Chat Massala, or Free Drinks with Liter
Bottles are offered
 MARKETING MIX STRATEGIES
PLACEMENT
There are various channels through which RC Cola distributes its output.

DISTRIBUTION CHANNELS:
.
. Manufacturer ----- Distributor ------- Retailer------ Consumer.
We will also use push strategy for our product by using various promotional tactics and through media.
Distribution will be divided in zonal basis, which will be 5 in number.

We will directly approach retailer by providing credit facility and bonus in form of incentives.

We will also provide trade allowances to our distributors and retailer to further intensify usage of push
strategy.
 MARKETING MIX STRATEGIES
PLACEMENT
PRODUCT OUTFLOW
RC Cola International has given franchise in Karachi. Continental
Beverages is the franchised bottler for RC Cola in Karachi Sindh. They
have fully automatic German plants for both glass and P.E.T. lines.
MARKETING MIX STRATEGIES
PLACEMENT
LIST OF RETAILERS AND THEIR LOCATIONS
MARKET LOCATION MARKET LOCATION
BLESSINGS SUPER STORE LALKOTI QT DEFENCE DEFENCE

BADSHAH NURSERY SUNNY DEFENCE DEFENCE

COLLECT NURSERY JABBAR DEFENCE DEFENCE

SCHON CIRCLE
PARADISE FAMOUS DEFENCE DEFENCE

AGHA’S CLIFTON SOHAILA DEFENCE

NOVELTY CLIFTON AL-GHANI STORE BLOCK A.

YOUSAF BAHADURABAD QUALITY STORE P.E.C.H.S.

 MARKETING MIX STRATEGIES
PLACEMENT

SPECIAL POINTS
Other than these some special points are also being looked after by
direct sales vehicles such hotels restaurants, public parks, big and
reputed super stores etc. At Avari, Pearl continental, village, Seas
magnificence etc. RC Cola directly distributes the products.
 MARKETING PROGRAMS
PROMOTIONAL STRATEGIES
Following are the strategies:
Comparative Parity Method: RC Cola ads are telecasted with
the competition in Coca Cola and Pepsi which is its direct
competitor.
 MARKETING PROGRAMS
PROMOTIONAL STRATEGIES
Seasonal advertisement: Frequency of the RC Cola ads will
vary from time to time. When the season is on RC Cola will do
heavy advertisement especially in Ramdan days or Eid
occasions but this advertisement not remain consist.
BTL
ATL
 MARKETING PROGRAMS
PROMOTIONAL STRATEGIES
SAMPLING PROGRAM
A successful sampling program can be their most effective means of
increasing consumer awareness, trial, and actual product purchases in
Pakistan.
 MARKETING PROGRAMS
PROMOTIONAL STRATEGIES
Merchandising
Royal Crown Cola International trains its bottlers in merchandising functions that
will ensure visually appealing beverage shelves, coolers, and vending machines.
They work in assisting hand in hand to develop pricing, product rotation, back
stock control, display building, and proper P.O.S. procedures.
With proper shelf management, the customer will soon recognize the quality and
value inherent in the Royal Crown Cola International brands in Pakistan.
 MARKETING PROGRAMS
PROMOTIONAL STRATEGIES
Sales Support
Royal Crown Cola International has developed intensive sales training programs. They
provide complete, in-depth training materials for both beginner and experienced sales people.
To ensure their staff conveys the image of marketing a global brand, Royal Crown Cola
International will also provide assistance in developing a dress code and uniforms for their staff
members.
They’ll help them to extend that image to the trucks, vans, and automobiles they drive.
These "rolling billboards" are a roving reminder to the consumer of the Royal Crown Cola
International brand identity.
Through their Fleet Graphics program, Royal Crown Cola International will help them
develop proper fleet identification logos which enhance the brand value in their marketplace.
 MARKETING PROGRAMS
PROMOTIONAL STRATEGIES
Media
They will do this by working with local advertising agencies in Pakistan to develop
ad campaigns and media strategies (television, radio, print publications, billboards,
etc.) appropriate to their bottler's locations and budgets.
 MARKETING PROGRAMS
MARKETING PROGRAMS

RC cola will do a joint venture with all the cinema’s in Karachi, that only
RC Cola will be the soft drink which will be available.

RC Cola will do a contract with Telenor that free airtime will be offered
to the customer after typing a code which will be on the back of RC cola’s
cap.

They will conduct BTL (below the line activities)

 MARKETING PROGRAMS
MARKETING PROGRAMS
ADVERTISING STRATEGY
 
Newspaper (DAWN, JANG)

Radio FM 96, FM 98, FM 107

T.V. Commercials (ARY digital, MTV, PLAY, WIKKID, CABLE CHANNELS)

Bill Boards
 
 MARKETING PROGRAMS
ACTION PROGRAMS
 
On June 2nd the Product RC Cola will be launched at the venue Regent
Plaza.
On June 6th, 13th, 20th, July 4th, 11th, 18th advertisements will be
published in leading newspapers.
After six months of Launch, the company will commence a downward
stretch, and will launch a RC Diet Cola which will be targeted to diabetes
people.
On alternate days advertisements will be launched in three different
channels ( Geo, Ary One World and PTV) on the basis of two fixed spots,
i.e 07:30pm and 09:30.
 MARKETING PROGRAMS
ACTION PROGRAMS
Advertisements will placed on Magazines like Herald, Mag,
Jung once every month.
One month end Distributor will visit each retailer and give
the compensation on sales promotion schemes, company has
chosen.
The company will participate in melas, trade shows, and
exhibitions of all kind to increase the awareness of the new
launch.
 MARKETING PROGRAMS
BUDGETED COMBINED EXPENSES INCURRED DURING FIRST THREE MONTHS
Particulars Cost

Television Cost Rs. 8,000,000

Newspaper Rs. 3,050,000

Magazines Rs.2,000,000

Outdoor Rs.5,700,000

Contingency Rs.1,000,000

Total Rs.19,750,000
 CONTACT
D-210, Estate Avenue, SITE, Karachi
Phone   (9221) 2577000 , 2577001 , 2564380
Fax  (9221) 2577002
Emails  (General enquiry) info@rccola.com.pk
 rccolakarachi@yahoo.com
 rccolapakistan@yahoo.com