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New Product Development Assignment #01 The Failed Product Amrat Cola

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Usman Saleem

Amrat cola was introduced in Pakistan in 2003 as a locally produced cola to compete with Pepsi and Coca-Cola. However, Amrat cola struggled to gain market share due to lower advertising spending compared to its competitors, issues with product availability and taste that was not as good as Pepsi and Coke, and the larger companies reducing their prices to compete with Amrat cola. For Amrat cola to survive in the competitive Pakistani beverage market, it needs to improve product availability, work on improving the taste of its drinks to match its competitors, and significantly increase advertising to gain consumer awareness.

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New Product Development Assignment #01 The Failed Product Amrat Cola

Uploaded by

Usman Saleem
253 views2 pages
Amrat cola was introduced in Pakistan in 2003 as a locally produced cola to compete with Pepsi and Coca-Cola. However, Amrat cola struggled to gain market share due to lower advertising spending compared to its competitors, issues with product availability and taste that was not as good as Pepsi and Coke, and the larger companies reducing their prices to compete with Amrat cola. For Amrat cola to survive in the competitive Pakistani beverage market, it needs to improve product availability, work on improving the taste of its drinks to match its competitors, and significantly increase advertising to gain consumer awareness.

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Amrat cola was introduced in Pakistan in 2003 as a locally produced cola to compete with Pepsi and Coca-Cola. However, Amrat cola struggled to gain market share due to lower advertising spending compared to its competitors, issues with product availability and taste that was not as good as Pepsi and Coke, and the larger companies reducing their prices to compete with Amrat cola. For Amrat cola to survive in the competitive Pakistani beverage market, it needs to improve product availability, work on improving the taste of its drinks to match its competitors, and significantly increase advertising to gain consumer awareness.

Copyright:

© All Rights Reserved
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
253 views2 pages

New Product Development Assignment #01 The Failed Product Amrat Cola

Uploaded by

Usman Saleem
Amrat cola was introduced in Pakistan in 2003 as a locally produced cola to compete with Pepsi and Coca-Cola. However, Amrat cola struggled to gain market share due to lower advertising spending compared to its competitors, issues with product availability and taste that was not as good as Pepsi and Coke, and the larger companies reducing their prices to compete with Amrat cola. For Amrat cola to survive in the competitive Pakistani beverage market, it needs to improve product availability, work on improving the taste of its drinks to match its competitors, and significantly increase advertising to gain consumer awareness.

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New Product Development

Assignment #01
The failed product
Amrat cola

Introduction

Amrat cola was the beverage brand. It was manufactured by the Pakistan Mineral Water Bottling plant.
Established in 1985, Pakistan Mineral Water Bottling Plant (Pvt.) Ltd initially established with the
initiative of introducing Mineral Water drink to the Pakistani consumer. In 1989 the company for
franchisee for Coke International, until April 1994 when the company entered into a joint venture in
PepsiCo International, which they discontinued in 2003. ABI is a part of the Pakistan Mineral Water
Bottling Plant facility, where Amrat Cola is also produced. in Karachi, Lahore, Multan and
Peshawar. Besides cola, Amrat also produces orange and 7Up-like soda. Amrat Cola cans and is available
in many different sizes. The company introduced 'Amrat' products into the market in 2003, in 2005 they
established franchises in the cities of Lahore, and Multan, and were producing 30,000 cases/day. The
company is currently looking to introduce franchises outside the province of Punjab and venture into
cities such as Hyderabad, Karachi, and Sukkur.

Pakistan has a huge market of soft drinks. The major competitive and ruling brands of the country are
Pepsi and Coca-Cola. Amrat cola launched into market as a Pakistani cola. There slogan was that it’s not
just a drink, it’s a Pakistani drink. De to this they grab a big market share in Pakistan. They came with a
strategy of selling their products on low prices as compared to other beverages. Price were almost
fifteen to twenty rupees less on one-and-a-half-liter bottle.

Reasons to failure

There are many reasons to failure of Amrat cola

 Pepsi and coca cola were market leaders and they put lot of investment on their advertisement.
Amrat cola didn’t spend as much on their advertisement.
 Pepsi and coca cola reduced their prices to Amrat cola to gain its market shares.
 Product availability of Amrat cola is not good as compared to Pepsi and coca cola.
 Taste of Amrat cola and lime water was not that good as compared to Pepsi and Coca cola.

steps to remain in market

Amrat cola can survive into the beverage industry if company make sure availability of product in every
corner of country. Company can work on its drink taste so that it can compete with market leaders. Also,
company can do lot of advertisement to gain people attention about their product to capture market
share.

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