rc cola marketing report

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1905: Mr. Claud Hatcher, Founder, Established the Union Bottling Works inColumbus, 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 firstcola drink was called Chero-Cola.

1912: Started to manufacture a line of syrups and flavor concentrates andestablished 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.

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 campaignBest 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.

RC Cola Diet RC Cola Cherry RC Cola RC Edge Cola Diet Rite Cola RCQ Royal Crown Draft Cola

Kick

RC cola was a very famous drink in Pakistan.It was well known since the time of its arrival in the subcontinent which was the 70s. Internationally RC cola faded away by the early 90s.

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 90s.

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 share of soft drinks in beverage industryAge factor affecting the sales

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.

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 offtrade 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 ontrade but both achieved strong growth over the review period.

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.

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.

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.

Strength:RC Cola is the cola which is more than a 100 years old.

Weaknesses:Low advertising budget.

International Law suits.

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 90s.

TARGET MARKETDemographic Factor: Age from 12-50 Years Social Class Upper, Upper Middle., Middle Gender Male and Female

Geographic factor: Country Pakistan ProvinceSindh City Karachi Population about 20 million

Mass Marketing Positioning Strategy Differentiation Strategy Basis of Differentiation Product Differentiation Image Differentiation

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.

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).

DAILY PRODUCTION:500,000 LITRES A DAYDENONMINATIONS OF BOTTLES 250 ML 500 ML

COST SALE TO RETAILERS (250ML) COST SALE TO RETAILERS (500ML)

RS.7.75/= RS.12.50/= RS.20.5/= RS.27.0/=

S.I.T.E. (WITHIN FACTORY) NORTH KARACHI. NAZIMABAD MALIR P.E.C.H.S.

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.

Offered Products:RC Cola Diet RC Cola New Product Development

Offered Products:RC Cola Diet RC Cola

RCs Ingredients Carbonated Water High Fructose Corn Syrup Sugar Caramel Color Citric Acid Natural Flavor Caffeine.

Quality RC Cola has a unique crisp and clean taste and its consistent with its flavor no matter where you buy it. It has a refreshingly great taste even if it isnt cold. Everything is tested from water samples to ingredients in order to achieve the Quality of our Product.

DEPTHThe 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

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.

Prices of different bottles

Quantity Jumbo 1.5 Liters 1 Liter 500ml 250ml Tin

Price in Rupees 80 65 37 30 16 25

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

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.

Special OffersRC 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

There are various channels through which RC Cola distributes its output.

DISTRIBUTION CHANNELS:. .

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.

PRODUCT OUTFLOWRC 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.

MARKETBLESSINGS SUPER STORE

LOCATIONLALKOTI

MARKETQT DEFENCE

LOCATIONDEFENCE

BADSHAH

NURSERY

SUNNY DEFENCE

DEFENCE

COLLECT

NURSERY

JABBAR DEFENCE

DEFENCE

PARADISE

SCHON CIRCLE

FAMOUS DEFENCE

DEFENCE

AGHAS

CLIFTON

SOHAILA

DEFENCE

NOVELTY

CLIFTON

AL-GHANI STORE

BLOCK A.

YOUSAF

BAHADURABAD

QUALITY STORE

P.E.C.H.S.

SPECIAL POINTSOther 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.

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.

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

Sales SupportRoyal 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. Theyll 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.

Particulars Television Cost Newspaper Magazines Outdoor Contingency Total

Cost Rs. 8,000,000 Rs. 3,050,000 Rs.2,000,000 Rs.5,700,000 Rs.1,000,000 Rs.19,750,000

D-210, Estate Avenue, SITE, Karachi Phone (9221) 2577000 , 2577001 , 2564380 Fax (9221) 2577002 Emails (General enquiry) [email protected] [email protected] [email protected]