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REPORT ON:
SUBITTED TO:
COURSE:
CONSUMER BEHAVIOR
GROUP MEMBERS:
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.
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”.
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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.
1) RC Cola (Regular)
2) Diet RC Cola
3) Cherry RC Cola
4) RC Edge Cola
5) Rite Cola
6) RCQ
8) Kick
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.
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
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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 sub- continent which was the 70’s having the same popularity like
CocaCola and Pepsi today. RC Cola was being sued by different organizations internationally so
it lowered its investment in the sub-continent and in 90’s, RC cola started to fade away due to
some issues and stopped its production in Pakistan. RC Cola is currently not operating in
Pakistan and if RC Cola wants to relaunch in Pakistan, it may face strong competitors like
CocaCola and Pepsi are ruling the cola market here in Pakistan.
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 and it just want a good marketing strategy to recall the
brand.
Weaknesses:
Opportunities:
Threats:
TARGET MARKET:
The target market for RC Cola will be the youth of Pakistan as 80% of the consumers of cola
products in Pakistan is youth of the age 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.
MARKETING:
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, which will be RC Cola and Diet RC Cola to make the produced
more focused. 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.
2) Price:
Following factors RC Cola should keep in mind while determining the pricing strategy.
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Deep Freezers
Return Tickets
Free Transportation Services.
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, some special packs like Pakkora Mix, Chat
Massala, or Free Drinks with Liter Bottles are offered.
3) Place:
We will 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.
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.
4) Promotion:
Comparitive parity method will be used in which RC Cola will be telecasted with the
competition in Coca Cola and Pepsi which are its direct competitors.
Frequency of the RC Cola ads will vary from time to time. When the season comes RC Cola will
do heavy advertisement especially in Ramdan days or Eid occasions etc.
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(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 Activites can be done
in different shopping malls and crowded places.
(ii) ATL:
Newspaper: Top newspapers of the country like Dawn and Jung will be used to advertise the
print ads as well as youth magazines will also be used to capture the interests of the target
market. Different youth related competitions can be organized in BTL activities in which winners
can be rewarded with RC Cola merchandizes.
TVC: TV commercials will be used to advertiser the brand and 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
in black and white and then show youth related scenes and especially adventurous scenes as
whole advertising campaign will be done on the theme of adventure.
Radio: Surveys will be conducted in which young individuals will be asked which are those radio
channels which they like to listen more. Radio spots will be used to advertise on those selected
radio channels.
Billboards: Billboards will be used to advertise on roads and buildings of highly dense areas and
gorilla marketing will be used to directly strike the emotions of the target audience.
Online advertisement will also be used, ads will be published through all the famous social
networking websites like Facebook, Orkut, Twitter, etc.
ENDING WORDS:
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Well, according to our knowledge about marketing, we conclude that 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 it’s 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, that’s why the drink has reached its decline and
rejection now in Pakistan. It is possible for them to rise again through the proper attention
towards the advertising and the outlook of the product. It should be appealing and beautiful, it
should be trendy. That’s what it needs and right advertising at the right time can do a lot, It
needs to know the important about how can we market a product in a way that it can give a
fashionable and trendy impact on the people.