Why RC Cola Failed in Pakistan

WHY RC COLA FAILED IN
PAKISTAN?
HOW TO RE-LAUNCH IT?
GROUP MEMBERS:
History of RC Cola
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.
History of RC Cola
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:
1934:
Mr. Claud Hatcher died on December 31 st.
Chero-Cola is reformulated and the new

product is named Royal Crown Cola.
History of RC 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.
History of RC Cola
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 Product Line:

RC Cola has launched eight flavors till date
which are:
1)
2)
3)
4)
5)
6)
7)
8)
RC Cola (Regular)
Diet RC Cola
Cherry RC Cola
RC Edge Cola
Rite Cola
RCQ
Royal Crown Draft Cola
Kick
Pakistans Softdrink Industry:
Pakistan
has a huge market of

softdrinks beverages.
The
major competitive and ruling

brands of the country are
PepsiCo. and CocaCola Company.
65%
per cent are Pepsi products.

20 to 22 %are Coca-Cola products
and there are so many colas.
SWOT Analysis of Pakistans Soft Drink Industry:

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.
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.
SWOT Analysis of Pakistans Soft

Drink Industry:
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.

Drink Industry:
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.

Drink Industry:
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 in Pakistan:
RC
cola was a very famous drink in Pakistan.
It was widely known all over the Pakistan

since the time of its arrival in the subcontinent which was the 70s having the
same popularity like CocaCola and Pepsi
today.
SWOT Analysis of RC Cola for

Pakistan:
Strength:
RC Cola is the cola which is more than a 100 years
old.
In Pakistan the image of the brand is already been
made 30 years back.
Just want a good marketing strategy to recall the
brand.
Weaknesses:
Low advertising budget.
International Law suits.
SWOT Analysis of RC Cola for

Pakistan:
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 like Pepsi and
Coke.
This very fact that Royal Crown cola was faded
away in the early 90s.
Reasons why RC Cola loosed its

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 90s.
How to re-launch RC Cola in

Pakistan:
RE-POSITIONING:
RC Cola has to reposition itself here in Pakistan.
RC
Cola hasnt worked well to position as a unique brand in

the minds of the customers.
RC
Cola will be using Adventure/Thrill in their positioning

statement, BTL activities and Advertisements.
The
word Adventure will be associated with this brand as

there is no cola brand in Pakistan which claim to be
adventurous.
Other
brands which shown themselves adventurous are

Mountain Dew and Sprite 3G but they are not cola drinks.
This
factor will be the point of differentiation for RC Cola.

Pakistan:
TARGET MARKET:
The
target market for RC Cola will be the youth of

Pakistan.
80%
of the consumers of cola drinks in Pakistan is

youth of the age inbetween 13 to 35.
It
is easy to influence the youth of sub-continent as

compared to western youth according to a research.
The
social class will be upper-lower to lower upper

class.

Pakistan:
MARKETING STRATEGY:
A new marketing mix will be applied on the brand:
1) Product:
Some modifications will be done
with the shape of the bottle specially
the regular bottle because it seems to
be thin and having lower volume
compared to other cola-drink bottles.
Just
two categories will be launched, RC Cola (regular)

and Diet RC Cola to make the produced more focused.

Pakistan:
2) 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 your product.
Price
must be keeping the view of their target market

Pakistan:
Incentive to Retailers will be given in the shape of:
Deep Freezers
Free Transportation Services.
Free Return Tickets etc.
Incentive
to Dealers will also be given like, 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.
RC
Cola will give special offers to consumers on special

occasions like Ramadan and Eid days instead of
decreasing the price of the products.

Pakistan:
3) Place:
Initially for first three months, the product will be available
only in the capital of each province i.e. Karachi, Lahore,
Islamabad, Peshawar and Quetta.
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.
Other
than these some special points will also be looked after

by direct sales vehicles such hotels restaurants, public parks,
big and reputed super stores etc.

Pakistan:
4) Promotion:
Integrated Marketing Campaign will be used in every kind of
promotional activity.
(i) BTL:
A successful BTL advertisement program can be their most
effective means of increasing consumer awareness, trial, and
actual product purchases in Pakistan.
BTL
Activities can be done in different shopping malls and

crowded places.
Different
youth related competitions can be organized in BTL

activities in which winners can be rewarded with RC Cola
merchandizes.

Pakistan:
(ii) ATL:
Newspaper:
Top newspapers of the country like Dawn and
Jung will be used to advertise the print ads
Youth
magazines will also be used to capture

the interests of the desired target market.

Pakistan:
TVC:
TV
commercials will be used to advertiser the brand.
The
frequency of ads will be greater specially on youth

channels like Play TV, Aag, Mtv, G kaboom, Oxygene, etc.
The
theme of the first re-launching ad will be including

like all the shots from the previous ads of the brand so
that people can recall the brand and then show
adventurous and thrilling scenes. Whole advertising
campaign will be done on the theme of adventure.
Slipstreaming
will be used in advertisements.

Pakistan:
Radio:
Surveys
will be conducted in which young

individuals will be asked questions regarding
their favorite radio channels.
Radio
spots will be used to advertise on
those selected radio channels.

Pakistan:
Billboards:
Billboards will be used to advertise on
roads and buildings nearf highly dense
areas.
Gorilla
marketing will be used to

directly strike the emotions of the
target audience.

Pakistan:
Internet Marketing:
Online advertisement will also be used, ads
will be published through all the famous
social networking websites like Facebook,
Orkut, Twitter, etc.
Official
website of RC Cola Pakistan will be

made where any kind of information
regarding the drink will be available from the
history of the drink to the ingredients used.
Conclusion:
RC
Cola failed in Pakistan because of its poor attention given

towards the ad campaign.
Even
in Pakistan people used to drink RC Cola and they really liked

it, but its all about many many years ago in 1970's n 80's may be
because there was no other cola at that time.
When
other colas came they advertised and they did it so well

that people were attracted towards them. Its also about how u
present it, the looks of the product.
RC
Cola's bottle is not appealing and the regular one specially

looks so thin, it seems as if it has less drink inside.
It
is possible for them to rise again through the proper attention

towards the advertising and targeting the potential customers.
The
outlook of the product should be appealing and beautiful, it

should be trendy.

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WHY RC COLA FAILED IN

Mr. Claud Hatcher, Founder, Established the

The first line of fruit flavored beverages was

Started to manufacture a line of syrups and

Over 300 bottlers were part of the

The Company changes its name to The

Mr. Claud Hatcher died on December 31 st.

Chero-Cola is reformulated and the new

The Nehi Corporation is listed on the

The Company first uses results of

Company began to enhance its

Company changes name for the

Crown Cola Co. is acquired by

Royal Crown Cola International is

Crown Cola Co.

RC Cola Product Line:

Pakistans Softdrink Industry:

has a huge market of

major competitive and ruling

per cent are Pepsi products.

SWOT Analysis of Pakistans Soft Drink Industry:

have become part of the culture in Pakistan.

companies have maintained their standards over

SWOT Analysis of Pakistans Soft

Rooh Afza and Jam-e-Shirin are traditional

drinks can be found in every home in

SWOT Analysis of Pakistans Soft

government of Pakistan has reduced excise taxes to

government also reduced other applicable taxes to

government also decided to tax the beverage

SWOT Analysis of Pakistans Soft

the government and the media have started health

health-conscious rural inhabitants also drink bottled

cola was a very famous drink in Pakistan.

It was widely known all over the Pakistan

SWOT Analysis of RC Cola for

SWOT Analysis of RC Cola for

Reasons why RC Cola loosed its

Cola and Coca Cola stormed into the market.

was minimal in Pakistan as compared

Cola was being sued by different organizations

finally stopped production somewhere in the

How to re-launch RC Cola in

Cola hasnt worked well to position as a unique brand in

Cola will be using Adventure/Thrill in their positioning

word Adventure will be associated with this brand as

brands which shown themselves adventurous are

factor will be the point of differentiation for RC Cola.

How to re-launch RC Cola in

target market for RC Cola will be the youth of

of the consumers of cola drinks in Pakistan is

is easy to influence the youth of sub-continent as

social class will be upper-lower to lower upper

How to re-launch RC Cola in

two categories will be launched, RC Cola (regular)

How to re-launch RC Cola in

should be set according to the product demand of

should be that which gives the company maximum