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HISTORY: -

It's been almost 100 years since Claude Hatcher, a


young graduate pharmacist in Columbus, Georgia, began
creating soft drinks in the basement of his family's wholesale
grocery business in 1905. Little did he know at the time that
his humble experiments would grow into one of the largest
soft drink companies in America
Sales soon began to grow, and in 1912 the company
incorporated as the Chero-Cola Co., April of 1914, Chero-Cola Co.
filed application in the United States Patent Office to register its trademark,
Chero-Cola. The Coca-Cola Company then instituted a law suit that lasted for
more than nine years. In fact, litigation concerning the use of the company's
trademark continued in one form or another until 1944 when the final victory
was won by Royal Crown Cola Co., setting for all times its right to use the
word "cola" in the name of its beverages
BIG Market:-
In 1934, when the first time this cola launched in the big
market, and it became an instant triumph. People loved the
new cola taste calling it, "Pure. Delicious. Refreshing. " The
product was launched under the name of Royal Crown Cola,
Royal Crown Company Inc., originally called the Union Bottling Works,
but consumers soon began to affectionately call it by the
nickname of RC Cola, which is how it has been known ever
since. This product proved to be such an overwhelming
success that the company once again changed its name to
Royal Crown Company, Inc from these humble beginnings, Royal
Crown Cola Co. grew to be the third largest soft drink company in America
Advertisement:-
When World War II was over, the company and its bottlers joined whole-
heartedly in a progressive program of expansion and improvement that made
1947 one of the great years in the history of the enterprise. In that year,
glamorous Hedy Lamarr was pictured in point of purchase advertising signs
Internationally:-
RC cola is available internationally in these countries and is
growing very well.

Cyprus Argentina Estonia


France Bolivia Kyrcyztan
Ireland Brazil Latvia
Italy Dominican Republic Lithuania
Norway Ecuador Russia
Romania Guatemala Tajikistan
Slovenia Martinique Turkmenistan
Canary Islands Paraguay Ukraine
Spain Peru Australia
Sweden Uruguay Cook Islands
Switzerland Philippines Fiji
Portugal Thailand Indonesia
Turkey Taiwan Japan

RC cola in Pakistan:-
Current position:-
In Pakistan people used to drink RC
cola .they really liked it, but its all about many years ago in 1970's
n 80's.because there was no other cola at that time. But due to
many issues within the country and internationally RC cola faded away by
the early 90’s like .When other colas came they advertised and they
did it so well that people were attracted towards them and RC
cola gives negligible importance towards the advertisement. Then
it is also about how you present it. The looks of the product RC
cola's bottle is not appealing (Attractive) and the regular one
specially looks so thin (Small).It seems as if it has less drink
inside, in 1998 the time when pepsi stop the retailing of the Rc
cola through it’s heavy investment they cope all the bottles of the
Rc cola and this is the last time when heavily distribute it’s
product.

Major REASONS FOR RC COLA LOOSING 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 90’s.

Repositioning of Rc Cola:-
Soft drinks set to become world's leading
beverage sector Global consumption of soft drinks is rising by 5% a year the
largest overall sector, soft drinks volume is projected to reach 467 billion
liters in 2003, equivalent to 75 liters per person commented Zenith Research
Director Gary Roethenbaugh. "As a combined category, soft drinks offer a
powerful growth proposition. The unrelenting advance of bottled water and
still drinks, coupled with the scale of carbonates, help place soft drinks on
track to become the number one beverage sector in 2005.
Pakistan:-
The soft drinks market in Pakistan enjoyed dynamic growth over the review
period in both volume and current value terms. 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. The government of Pakistan has reduced excise taxes to encourage
soft drinks manufacturers and importers
RC however is operational at current in Pakistan but does not have the cola
flavored drink produced, but the RC orange, RC Lime and RC vimto
carbonated drinks. The initiative to relaunch RC cola seems to be a great
idea, as it is a cash crop for Royal Crown all over the world
,
Pakistan is the very much favorable place for the beverage market and
product there are many brands of the beverages work in Pakistan. Pakistan is
the highly populated country. And mostly people of Pakistan like to drink
cola’s according ton figures the Total annual sale of soft drink in Pakistan is
120 million cases.

PEST ANALYSIS:-

Pest analysis consist . The PEST analysis examines changes in a


marketplace caused by Political, Economical, Social and Technological
factors.

POLITICAL VARIABLES:-
In the “political variables” most of
the things are related to Governmental activities..
Ever year when budget in announced government taxes rates
always shoot up. This approach of government decreases the
profit margin of soft drinks.

And there are some exceptional things like: “environmental protection


laws” they some what effect the industry of Cola. From last two years
Government is going to be really very much conscious about the
environment. But after making the adjustments in plants and applying
the proper way of wastage the chances of being affected by the
“protection laws” are going to be diminished. So it impact good for the
cola’s industry. And the second thing in political variables which
effects Cola’s industry is “elections & military take over” Because in
the days of elections and marshal law’s condition the countries
production in any field is declined. So it affects slightly the revolution
of Cola industry.

Non-alcoholic beverages fall within the food category under the FDA. The
government plays a role within the operation of manufacturing these products
in terms of regulations. There are potential fines set by the government on
companies if they do not meet a standard of laws.

Changes in laws and regulations, including changes in accounting standards,


taxation requirements, (including tax rate changes, new tax laws and revised
tax law interpretations) and environmental laws in domestic or foreign
jurisdictions.

Economical Analysis:-
It could be seen that “economical
variables” highly affects the cola’s resolution. . Economic factors
are those factors that effect the production of any industry. So,
Rc cola is not out of question. If the economic condition of the
country is not strong and Rc cola increases its Price, then the
impact would be highly negative. Inflation is also not good for
any country’s production point of view. It also effects negatively
over the production of Rc cola.
for example a recession creating increased activity at the lower ends of
product price ranges. Rate of interest rises depressing business and causing
redundancies and lower spending levels
so we can says that if economic variables are in the favorable
position of country then they have a good impact other wise the
impact is highly bad.
It is the time when the consumer wants to resume their normal habits, going
to the malls, car shopping, and eating out at restaurants. However, many are
still handling their money cautiously.

The non-alcoholic beverage industry has high sales in countries outside the
U.S. like Pakistan Bangladesh etc
SOCIAL VARIABLES:-
The main meaning of social variables is
changing attitudes and lifestyles.
There are two elements of the social variables which influence the industry.
ENVIRONMENT
EDUCATION

COMMUNITY INVOLVEMENT
EDUCATION

education is a powerful force in improving the quality of life and


creating opportunity for people and their families around the
world.
ENVIRONMENT
environmental issues, particularly those relevant to our business
A large part or our relationship with the world around us is our
relationship with the physical world. we have always sought to be
sensitive to the environment, we must use our significant resources
and capabilities to provide active leadership on environmental issues,
particularly those relevant to our business

COMMUNITY INVOLVEMENT:
Community involment is the highly effected element of
the social variables in which the community create some revolutions in the history
In this element observes that how to react and react united community in any
condition
Like 2005 when earth quake come in the Pakistan and all the country join hand to
hand and start helping for the other citizens
TECHNOLOGICAL VARIABLES:-
Technological innovations
pay a main role in the progress of the all field of world and also in
the cola industry. In cola industry helping in promoting
“paperless environment” .it impacts good, because computers
are the basic need of any person now a days. And though it’s a
big industry so it is promoting the trend of paperless
environment. And it is giving the way of other industries to come
to new technologies and into a new world of business. Through
computers Rc cola can increase the efficiency of its business
and can have up –to-date data about their productions
The effectiveness of company's advertising, marketing and promotional
programs. The new technology of internet and television which use special
effects for advertising through media. They make some products look
attractive. This helps in selling of the products.

 SWOT ANALYSIS: -

The swot analysis consists of the four elements, which are as follows
 Strength: -
 RC Cola is the cola which is more than a 100 years old
 Resources and competencies available to the firm
 Educated Top Management
 Latest Technology
 High Productive Team
 Skillful Management.
 Strong Research and Development Department

 One of the world's most recognized brand


 The environment of factory is very good and attractive.
 very vast distribution channel and it is easily available everywhere
 Weakness: -
 Lack of awareness in the consumers
 High production cost

 Credit rating
 target only young customers in their promotions
 Demand of disposal bottle is declining
 Low advertising budget
 Opportunity:-
 We can increase our market share due to Relaunching a product
 The heat factor in the sub- continent.
 To build a brand equity.
 Increased interest of people in musical groups, cultural shows and
sports has provided an opportunity for Rc cola to increase its sales
through them
 Enhancement of the product
 Availability of raw material

 Sponsorship, global presence including building facilities in


new markets
 Availability of labor
 Low excise taxes on cola’s

 THREATS: -
 The main competitors of the company is the Coca Cola and Pepsi
 New entrance of competitors large and small beverage
companies, including bottled water firms
 Uncertain surrounded condition
 Terrorists attacks in Pakistan

 Commodity prices growth


 Fastly growing fruit juices
Financial Projection:-
Segmentation and target market analysis
The segmentation and targeting based upon the
customers so before the segmentation and
targeting we come to know that what is actually
customer want from our product
CONSUMER BUYING BEHAVIOUR PROCESS:-

Consumer buying behavior process is explained in some steps which are discussed below:

• Need Identification

The consumer is thirsty and he wants to quench his thirst.

• Information Search

He will search as to what will satisfy his thirst the most.

• Evaluation of Alternatives

He will now evaluate from the wide range of beverages available to him
that which one of them is suitable to him in terms of quality, taste and is
pocket friendly.

• Selection

After evaluating the product he will select a product.

• Purchase

The consumer will buy the selected product.

• Post-Purchase Experience:

It is the experience that the consumer gets after using the product. He will
use the product again if he feels that his satisfaction after use is more or
equal to the price of the product.

After looking at above mentioned example, we can get an understanding that a product
should be so desirable that whenever a person identifies his need, he selects our product
among various substitute products and he feel satisfies so that he retains the use of that
product.

Segmentation:-
The market consists of many types of consumers, products and
needs. The marketer has to determine that which segment offers the best opportunity for
achieving company’s objectives. Consumers can be grouped and served in various ways
based on geographic, demographic, psychographic and behavioral factors. As you know
market consists of buyers of differing in their wants, resources, location and tastes.

Demographic Segmentation: -

Age: - (5-55)

• Age

The requirements of different age groups are


different. Rc 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.

Gender, both (Male, Female)

Population Distribution(Population distribution


means how much [population lives I urban areas and rural areas. In
Pakistan 35 % population resides in urban areas and 65%
population lives in rural areas. Pepsi is 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)
Geographic Segmentation: -

We segment the whole market into the two division’s whole Punjab
providence and larger cities of Pakistan. This mentioned below
Islamabad 901,137
Punjab 81,845,433
Total population of the Lahore 10,000,000
Total Population of the Gujranwala 14, 15,711
Faisalabad 7,000,000
Multan 3,116,851
Psychographic Segmentation: -
Social Class
Basically our product mostly attract the Working Class,