Report On Re Launching of Mecca Cola in Pakistan
Report On Re Launching of Mecca Cola in Pakistan
Report On Re Launching of Mecca Cola in Pakistan
I owe our gratitude to Allah Almighty whose shower of blessings and kindness has
been on me through out the working on these pages. It is His help that I finally
able to compile this document.
I would take this opportunity to thank Dr. MAK Chisti, our teacher for the course
of Strategic Marketing Management at the IQRA University Karachi, for his
valuable support and encouragement which he has offered. His words of wisdom
will always be remembered, and I am convinced that the knowledge of strategic
marketing management that he has imparted would go a long way in making good
marketers and helping us all through our professional career.
This report cannot be solely attributed to my effort but it is indeed the joint effort
of many friends and well-wishers. There were times in the course of preparing this
report when things were tough and the future seemed dark. It could not have been
possible to write it, without the immense help of a few individuals to whom I
would like to offer my gratitude.
So I would like to thank all my friends and those retailers and wholesalers who
provided sufficient information needed to complete this report on Re-launching
Strategies of Mecca-Cola.
RE-LAUNCHING OF MECCA-COLA
M. BILAL KHAN (2642) IUGC
Executive Summary
Purpose of this project is to develop the strategies for the re-launching of Mecca-
Cola in Pakistan. Mecca Cola when launched in Pakistan became a reputable brand
due to its Islamic association and good taste. It is a multinational company, which
operates in some parts of the world. In Pakistan It also had proved itself to be one
of the best soft drink brands.
There were certain for which Mecca-Cola proved to be a failed brand in Pakistan.
Some of these reasons include conspiracy of giant brands like Pepsi and Coca-Cola
against the new born baby i.e. Mecca-Cola, also some NGO’s were forced to start
a campaign against Islamic name of Mecca-Cola. In this report we will discuss the
strategies which can be used to re-launch Mecca-Cola in the Pakistani market and
it is hoped that after adapting these strategies Mecca-Cola can again become a
popular brand amongst the Pakistani people. If Mecca-Cola is re-launched in
Pakistan Pepsi and Coca-Cola will be its primary competitors.
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TABLE OF CONTENTS
1. COMPANY PROFILE
2. BRAND PHILOSOPHY
3. CURRENT MARKETING SITUATION
MARKET DESCRIPTION
A REVIEW OF COMPETITION
PEPSICO
INTRODUCTION
PEPSI PAKISTAN
SWOT ANALYSIS OF PEPSI
4. OBJECTIVES
5. MACRO-ENVIRONMENT
DEMOGRAPHIC FACTORS
ECONOMIC FACTORS
PHYSICAL FACTORS
POLITICAL AND LEGAL FACTORS
SOCIAL AND CULTURAL FACTORS
6. SWOT AND ISSUE ANALYSIS
7. MARKETING STRATEGIES
a. POSITIONING
b. BASIS OF DIFFERENTIATION
c. PRODUCT DIFFERENTIATION
d. IMAGE DIFFERENTIATION
8. PRODUCT
PRODUCT REVIEW
a. PRODUCT ATTRIBUTES
BRANDING
PACKAGING
LABELING
9. PRICING
PRICING OBJECTIVES
PRICE COMPARISON WITH DIFFERENT PLAYERS
10. PLACEMENT
a. PRODUCT OUTFLOW
b. CHANNELS OF DISTRIBUTION
11 PROMOTION
TVCs
a. TEASERS
b. AWARENESS
c. FULL FLEDGED PROMOTION
d. NEWSPAPERS AND MAGAZINES
e. BILLBOARDS
f. SALES PROMOTION
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COMPANY PROFILE
Mecca-Cola is now sold in some parts of the Arab World as well as in certain
regions of Europe. It has also been bought and consumed in certain parts of the
United States, Britain, India and Canada. Although the product was created in
France, the company is currently based in Dubai in the United Arab Emirates. Part
of its corporate philosophy is its pledge to donate 10% of its profits to fund
humanitarian projects (such as schools) in the Palestinian territories, and another
10% to charities in the countries in which the drink is sold — particularly (to quote
its website), "associations who work towards peace in the world and especially for
peace in the conflict between Palestinians and fascist Zionist apartheid". This
activist stance is reflected in the company slogan, which appears on all its
products: "Shake your Conscience." Every can also has the request that people
avoid mixing the drink with alcohol.
In addition to several different presentations of its cola, the company also sells a
range of fruit-flavored soft drinks under the Mecca-Cola name. The company was
the sponsor of — and Mecca-Cola the official drink of — the October 2003
Summit of the Organization of the Islamic Conference (OIC), held in Malaysia.
BRAND PHILOSOPHY
Mecca-Cola is the new hope for the Muslims all around the globe to protest against
the unjust policies of U.S.A and the practical initiative towards the prosperity of
Muslims wherever in the world they are in trouble, with special context to
Palestinians.
Soft drink is the means of eradicating thirst and feeling refreshment. Most of the
revenues generated by the U.S based beverages like Pepsi and Coca-Cola are
based on the consumption of Muslim community. The significant portions of these
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revenues are paid to U.S government in the form of taxes, which they employ on
their defense budgets which includes developing destructive weapons and other
war items. All these weapons are used mostly in Muslim areas like Iraq, Palestine,
Afghanistan etc.
What we can do in this hazardous situation! Of course the answer is that we can
boycott these beverages which are providing funds in shape of taxes which are
used for the destruction of innocent people. We recognize the needs of people and
that is why along with the boycott of U.S based beverages, we have launched the
high-quality and rich in taste “MECCA-COLA”.
Mecca-Cola is not only a beverage but it is the voice against injustice and the
means of helping deserving people in Palestine, Iraq and Afghanistan. We are
backed up by the passion of reacting not through war but through peaceful way
and we are sure that success is not so far.
MARKET DESCRIPTION
The soft drinks set to become world's leading beverage sector. Global consumption
of soft drinks is rising by 5% a year. The soft drinks market in Pakistan enjoys
dynamic growth in both volume and value terms. Carbonated drinks have become
part of the culture in Pakistan and multinational companies have maintained
standards over the years to provide the nation with high-quality drinks. Rural areas
of Pakistan have driven sales of carbonated drinks to new heights as more than 60
percent of the population resides in rural areas and young consumers are more
attracted to advertising. Pepsi is the most popular and leader brand in the Pakistani
market and is consumed by children and adults alike. Coca-Cola is the second
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favorite soft drink after Pepsi. Both these giant companies have been ruling since
long time on the soft drink marker not only in Pakistan but all around the globe.
In the current market of soft drinks there are certain players in action. Some of
them are market leaders, some are challengers and some are followers. They can
be categorized as follow:
Mountain Amrit-Cola
Dew
Pepsi Coca-Cola Etc.
7-up
Sprite
Mirinda
Bubble-up
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A REVIEW OF COMPETITION
PEPSICO
INTRODUCTION
Pepsi International is a world renowned brand. It is a very well organized
multinational company, which operates almost all over the world. They produce,
one of best carbonated drinks in the world. Pepsi is a symbol of hygiene, quality
and service, all over the world. Pepsi is producing Cola for more than 100 years
and it has dominated the world market for a long time. Its head office is in New
York.
PEPSI PAKISTAN
The market in Pakistan is surely dominated by Pepsi. It has proves itself to be the
No.1 soft drink in Pakistan. Now days Pepsi is recognized as Pakistanis National
drink. In 1971, first plant of Pepsi was constructed in Multan, and from their after
Pepsi is going higher and higher. Pepsi is the choice soft drink of every one. It is
consumed by all age groups because of its distinctive taste. Compared with other
Cola in the market, it is a bit sweeter and it contributes greatly to its liking by all.
Consumer’s survey results explain the same outcome and Pepsi has been declared
as the most wanted soft drink of Pakistan.
Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized
brand. Coke’s basic strength is its brand name. But Pepsi with its aggressive
marketing planning and quick diversification in creating and promoting new ideas
and product packaging, is successfully maintaining is No.1 position in Pakistan. In
coming future Pepsi is also planning to enter into the field of fruit drinks. For this
purpose it has test marketed its mango juice in Karachi for the first time.
When Pepsi was introduced in Pakistan, it faced fierce competition with 7up,
lemon and lime drinks, which was established during 1968, in Multan. Pepsi
introduced its lemon and lime, "Teem" to compete with 7up. It successfully, after
some years, took over 7up, and this enhanced Pepsi's profits and market share. In
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Pakistan, Pepsi with 7up enjoys 70% of the market share where as the coke just
has 20% markets share.
Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan. These
bottlers are Pepsi's strength. Pepsi has given franchise to these bottlers. Bottlers,
produce, distribute and help in promoting the brand. Pepsi also launched its fast
food chain KFC i.e. "Kentucky Fried Chicken.”
PEPSI COLA, MIRINDA, TEEM, 7UP, MOUNTAIN DEW, DIET 7UP, DIET
PEPSI, LAYS, KURKURE, AQUAFINA, PEPSI TWIST AND TROPICANA
JUICES.
Demand of Pepsi is more than its Pepsi does not offer any sort of
competitors. incentive or discount to its retailers.
Company has a very established name and Pepsi target only young customers in
a good reputation. their promotions.
Pepsi has large market share than its Crown of the disposable bottle is not
competitors. good.
As the target customers of Pepsi is young Demand of disposal bottle is declining.
generation, so Pepsi has more brand loyal Pepsi tin pack is not available in far off
customers. rural areas.
Most of the customers are satisfied with Pepsi is not considering many potential
the price of the Pepsi. outlets like hotels, college canteens
Pepsi is an international company and it etc.
has a very strong position internationally.
The environment of factory is very good
and attractive.
Pepsi spends a lot of budget on its
advertising.
Pepsi has a very vast distribution channel
and it is easily available everywhere.
Employees are also motivated.
Pepsi offers many discount schemes for
customers time to time.
Pepsi Cola is sponsoring sports, musical
concerts, walks.
Company may start entering rural areas The main competitor of the company is
also. the Coca Cola.
The company may also diversify its At the international level, Pepsi has a
business in some other potential business. very strong competition with Coke. Coke
has started its advertisements more
Increased interest of people in musical effectively to increase their demand and it
groups, cultural shows and sports has is a very strong threat for Pepsi.
provided an opportunity for Pepsi to
increase its sales through them. Cola drinks are not good for the health
so the awareness level of the people is
increasing which is big threat.
OBJECTIVES
The objectives of Mecca-Cola:
competitively.
o Sales growth
o Revenue
o Market positioning
o Enhance Market shares
o Customer satisfaction
o Goodwill & reputation
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Macro-Environment
The macro environment consists of the larger societal forces that affect the
microenvironment. The external factors are not under the control of the marketers;
they can just observe them and make strategies in light of these factors. Some of
these factors are given below:
DEMOGRAPHIC FACTORS
Age
The requirements of different age groups are different. Mecca-Cola should target
that age group that consumes it the most and make promotional strategies
according to their behavior. So their main target is the young generation.
Population
Distribution
Population distribution means how much population lives in urban areas and rural
areas. In Pakistan almost 35 % population resides in urban areas and 65%
population lives in rural areas. Mecca-Cola should focus on both rural and arban
areas. Pepsi and Coca-Cola are focusing on urban areas as people there are more
inclined towards such beverage while people in rural areas are more inclined
drinking lassi and desi drinks. So it is an opportunity for Mecca-Cola to grow its
market by targeting both the populations i.e. rural and urban.
ECONOMIC FACTORS
Income
and Income per Capita
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If the income level or per capita income of the people increases, it will have a
positive effect on the consumption of Mecca-Cola.
Inflation
If the country faces inflationary trend in the market, the price of the Mecca-Cola
will ultimately increase which will lower its demand.
Consumption
Behavior
Income
Distribution
It means how much is in the hands of rich and poor class. In Pakistan 10% rich
people posses 93% of wealth and 90% people posses 7% of wealth. If there is
balanced distribution of income in the country, the consumption of the people will
increase hence increasing the sales of beverages as well.
Aggregate
Demand
Aggregate
Supply
In summer season to cope up with the increasing demand they have to increase the
aggregate supply of their product.
Economic
Policies
Some of the economic policies which can affect the market of Pepsi are discussed
below:
Fiscal
Policy
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It is the policy of taxes. If heavy tax is levied on Mecca-Cola then its price will rise
having negative affect on its consumption.
Monetary
Policy
Monetary policy is made to restrict or increase the supply of money in the market.
If policies are made to restrict the flow of money in the market, inflation can be
controlled hence increasing the real income of the people which will ultimately
affect the consumption of Mecca-Cola.
Price
Policy
If price of Pepsi is increased its demand will decrease and vice versa.
Income
Policy
If income of the people will increase their purchasing power will increase and
hence increasing the market share of Mecca-Cola.
PHYSICAL FACTORS
Region
City
Size
The cities which are densely populated the consumption of Mecca-Cola would be
more.
Climate
Mecca-Cola is more suitable for humid or hot weathered countries like Pakistan. It
is a source of refreshment when a person is thirty due to the hot weather.
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Infrastructure
Roads would be the basic need for transportation of Mecca-Cola from one place to
another. Mecca-Cola cannot open factories in every city of Pakistan so it has to
transport it to other cities where Mecca-Cola will be demanded.
Electricity is the basic necessity for production of any product. Constant load
shedding slows down the process of production which leads to less production and
low market share.
Political
Stability
Mixed
Economy
In mixed economy government and private sector both plays their role in
developing the economy of the country. Investment by foreign companies like
down is more likely to flourish in mixed economy.
Psychographic
Religious
Religious factors can influence the market sales of Pepsi and Coke as it happened
in 2003 when the U.S-led attack on Iraq, wide sections of society in Pakistan has
banned American multinationals Coke and Pepsi.
Media
It is a very important factor for marketing. Media these days is a very effective
way of inspiring people to buy a specific product. A good promotion can boast up
sales to a great extent.
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SWOT ANALYSIS OF MECCA-COLA
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
MARKETING STRATEGIES
POSITIONING
POSTIONING STATEMENT
“A soft drink for everyone who desires refreshment. Mecca-Cola is the only
beverage that offers the paramount taste and refreshment. We are the voice
against injustice”
A soft drink for everyone who desires refreshment. Mecca-Cola is the only
beverage that offers the paramount taste and refreshment. We are the voice against
injustice
Unlike Pepsi and Coke (both of them accompanying the U.S policies against the
Muslims by providing funds in terms of heavy taxes), Mecca-Cola is not only a
beverage but is a voice against injustice which is directed towards helping the poor
victims of U.S policies which is reflected by the fact that its 10% revenues are
aided to the poor destructed Palestinians and 10% revenues given as the charity
purpose of Pakistani needed community. In addition to this Mecca-Cola is
available at lower prices than competitors.
Basis of Differentiation
There are many bases on which a product can be differentiated but Mecca-Cola
will be differentiated on the basis of following:
• Product Differentiation
Mecca-Cola should emphasize its differentiation from its competitors on the basis
of brand, quality, taste and variants. Mecca-Cola is globally available in different
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variants and it should be launched in Pakistan with all its variants to attract the
large number of buyers.
• Image Differentiation
The image of Mecca-Cola is associated with Islamic values and it will be an edge
for Mecca-Cola over its competitors in Islamic country like Pakistan because here
people prefer Islamic values and this will help a lot in differentiating Mecca-Cola.
Another plus point is that the U.S and Jewish lobbies and policies are known to
everyone, and this point could also be emphasized that boycotting the U.S based
beverages and preferring Mecca-Cola is the way to help the poor Muslims around
the globe.
PRODUCT
The first and basic P of the marketing mix is product. A review of product variants
by Mecca-Cola is as under:
PRODUCT REVIEW
Tin 25
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Product Attributes
Branding
Packaging
Labeling
Product Attributes:
The ingredients in the Mecca-Cola should contain all of the elements that are
essential for a refreshing and tasteful drink like:
Ω Energy Ω Protein
Ω Sodium Ω Caffeine
Ω Carbohydrates Ω others
Ω Sugar
All elements should be used after a careful research about the preference of the
consumers.
Branding:
The brand name Mecca-Cola will take its time to make its place in the consumers’
mind because it will come back after a long gap and consumers’ will recognize it
depending on the promotional strategies of the Mecca-Cola which are discussed
later.
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Packaging:
Mecca-Cola should come up in different packages:
Regular bottle
Labeling:
The label should contain the ingredients information and the quantity of the drink.
The label of the Mecca-Cola should be attractive having written the Mecca-Cola in
the middle of the bottle and tin, and the label should contain the slogan or basic
idea behind the product that is to help and protect the innocent Muslims.
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PRICING
One of the four major elements of the marketing mix is price. Pricing is an
important strategic issue because it is related to product positioning. Furthermore,
pricing affects other marketing mix elements such as product features, channel
decisions, and promotion.
PRICING OBJECTIVES
The firm's pricing objectives must be identified in order to determine the optimal
pricing. For Mecca-Cola the pricing objective is to maximize the market share. To
meet this objective, price penetration strategy should be employed.
Price should not be too low than the price which the competitors are charging
otherwise the brand’s image will be affected negatively and there is a threat that it
would be associated with the lower middle class only. So the prices should be a
little lower than the competitors which mean that sacrificing a little profit for the
sake of gaining the market share.
PRICE 85 70 40 30 16 29
COCA-COLA
MECCA-COLA
SIZE JUMBO 1.5 Liters 1 Liter 500 ml Regular TIN
PRICE 80 65 37 26 15 25
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PLACEMENT
PRODUCT
OUTFLOW
Mecca-Cola should give franchises all over the Pakistan to make the product
available to customer at ant time basis. This would not only cut the transportation
cost but also just in time delivery to the wholesalers and retailers. Mecca-Cola
should set its units in major areas of Pakistan like Lahore, Sukkur, Karachi,
Multan, Faisalabad, Quetta, Peshawer, Hyderabad, Sahiwal etc. Although it would
be costly to run such a large setup but keeping in mind a tough competition this is
indispensible.
CHANNELS
OF DISTRIBUTION
Mecca-Cola should use the both channels i.e. indirect and direct distribution
channels to make sure the feasible availability of the product. Management should
make sure that the relationships with bottlers are mutually beneficial and effective
strategies should be designed in order to make sure that bottlers prefer Mecca-
Cola.
1. Indirect Distribution
The company should use the indirect marketing channel or you can say
conventional marketing channel that the product is coming from the producer to
the wholesaler then to retailer and to the final or end consumer.
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PRODUCER
DISTRIBUTOR
WHOLESALER
RETAILER
CONSUMER
2. Direct Distribution
The less the channel members the less will be the cost and vice versa. To cut the
cost the management should implement direct distribution to retailers where there
is possible and feasible.
SPECIAL
POINTS
Other than these some special points should also be looked after by direct sales
vehicles such as hotels, restaurants, public parks, big and reputed super stores.
For example; Avari Plaza, Pearl continental, village, Marriot, Metro, Macro etc.
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PROMOTION
Mecca-Cola should be promoted using the ATL and BTL activities both. The
blend of these activities is important to communicate the brand and message to the
target market. The following strategies should be used for promotion purpose:
TVCs
Heavy promotional budget should be allocated on TVCs. Basically the TVCs will
be launched in 3 different phases. The most important slots of the most viewed
channels like Geo TV, ARY, Express etc should be booked and the entertainments
programs like dramas, musical shows etc should also be targeted in order to
communicate the message to the people. The details of phases are as under:
1. TEASERS:
In the first phase teaser will be launched to create curiosity among the people. The
teaser will be run for around 5 to 6 months on various channels and billboards will
also be used for this purpose.
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For example: “ARAHA HAY TAAZGI KA EHSAS PHIR AAP KAY PASS”
with the Islamic background theme music.
Although it will cost high but advertising budget can not be taken as granted if the
competition is so tough like in the case of Mecca-Cola there are giant rivals like
Pepsi and Coke.
2. Awareness:
In the second phase awareness regarding the brand and previous misconceptions
(created by rivals and other forces) will be corrected. For example a blame against
Mecca-Cola was that they are selling Islamic values or they are selling religion etc.
This was an international campaign against Mecca-Cola around the globe and the
competitors conducted these types of campaigns so successfully that Mecca-Cola
had to shut down its production from Pakistan.
So there is a need that awareness should be created through ads that there is
nothing wrong in selling the brand name Mecca-Cola and they can consult with the
Ulema and Muftiyan-e-karam to support their vision. A huge population of the
Pakistani people is likely to convince after such type of awareness creating
promotion because these people are more intended towards the approvals of Ulema
and Muftiyan-e-karam.
In addition there will be the promotional ads regarding the mission and vision of
the brand i.e. to beat the primary competitors and both of these belongs to non-
Muslim nations. The central point of this section of phase 2 will be that the 10% of
the revenues goes to Palestinian people and 10% goes to the needy people of
Pakistan.
Some ads will be designed in such a way that will appeal the entire Pakistani
nation like creating the jingle of “APNA COLA HAY MECCA-COLA” and
“TAAZGI KA EHSAAS MECCA-COLA KAY SATH” and “ZINDAGI KAY
RANG MECCA-COLA KAY SANNG”.
The association of other brands like Pepsi and Coca-Cola with war against
Muslims should be emphasized in hidden words to create a favorable environment
for the Mecca-Cola.
b) BILLBOARDS
As an effective promotional tool billboards should also be used. The main purpose
is to grasp the attention of the large population in shape of individuals and families
by familiarizing them with the brand. It will help to become on the top of minds
because when people go on the similar routes time and again they will become
familiar with the brand and the message.
c) SALES PROMOTION
A sales promotion strategy is an activity that is designed to help boost the sales of
a product or service. This can be done through an advertising campaign, public
relation activities, a free sampling campaign, a free gift campaign, a trading stamps
campaign, through demonstrations and exhibitions, through prize giving
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competitions, through temporary price cuts, and through door-to-door sales,
telemarketing, personal sales letters, and emails. The importance of a sales
promotion strategy cannot be underestimated. This is because a sales promotion
strategy is important to a business boosting its sales. In the beginning phase
Mecca-Cola should use free sampling campaign, prize competitions in schools,
colleges and universities with rewarding Mecca-Cola shirts as prize. It will act as
one of the most effective promotion tool.