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By: AYESHA SANA SAAD AHMED SHABBIR

HISTORY & BACKGROUND: Developed in 1905 by Claude A. Hatcher, a pharmacist in Columbus, Georgia, United States. The first product in the Royal Crown line was Chero-Cola in 1904, followed by Royal Crown Ginger Ale, Royal Crown Strawberry and Royal Crown Root Beer.

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 70s having the same popularity like Coca Cola and Pepsi today. RC Cola was being sued by different organizations internationally so it lowered its investment in the subcontinent and in 90s; 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 re launch in Pakistan, it may face strong competitors like Coca Cola and Pepsi is ruling the cola market here 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 Cola failed in Pakistan because of its poor attention given towards the ad campaign. It is also about how you present it, the looks of the product. RC Cola's bottle was not appealing and the regular one specially looked so thin, it seems as if it has less drink inside that is why the drink has reached its decline and rejection in Pakistan.

Launch and market a completely unseenbefore beverage product, in order to achieve the following:

Create strong consumer awareness for RC Cola through the Product, Pricing, Promotion and Placement strategies. Become the market leader in the functional drinks segment through sizeable market shares.

The soft drinks market in Pakistan enjoyed dynamic growth with the passage of time.

Carbonates. Vegetable & fruit juices. Bottled water. Functional drinks. Concentrates. tea. Coffee.

Strengths:

RC Cola already existed in the Pakistani market and is already available in International markets hence the brand recognition already exists. Carbonates have become part of the culture in Pakistan and thus the market can be penetrated if the taste is acceptable to consumers. A good marketing strategy would help revive the brand.

Weaknesses:

Low advertising budget may not allow extensive advertising. Distribution issues may affect the distribution of product throughout Pakistan.

Opportunities:

To build brand equity.

We can increase our market share due to Re-launching a product.


Come up with new line of product , perhaps catering to the needs of energy drink users.

Threats:

Very strong established competitors i.e. Pepsi Co & Coca Cola. Shift in preference from carbonates to energy drinks and among carbonates, low calorie beverages are preferred. The fact that RC cola faded away in the early 90s. People may already perceive it as a failed product.

The major competitors in the market are:

Pepsi. Coca Cola. Pakola. Apple Sidra. Mountain Dew. Mirinda/Fanta. Sprite/Teem.

Demographics :

Age : 12 and above Gender : Both genders Social Class : Upper , Upper Middle , Middle Education : Undefined, but the segment we are targeting is educated. Location : Living in Urban areas Household Income: 20,000+

Geographic factor : Country: Pakistan Province: Sindh City: Karachi Population: About 20 million

Psychographics:

The customers that we are targeting are youth and families. Of course, the drink is for both genders.

Our consumers are also status conscious, and they want to associate themselves with high quality products.

The current economic factors indicate low buying power and high inflation which would have a serious effect on demand and supply. Currently youth is 60% of the market population, which suggests a huge target market in the country. Also with the increase in buying of carbonated drinks there is an opportunity to make profits.

MARKET & PRODUCT OBJECTIVES: The objective is to re-launch RC Cola and with a big bang.

Coca cola has not been able to grab the market share in Pakistan due to distribution issues. We need to capture the market that needs the cola drink with the crisp taste and not the sweet taste.

The market to begin with is youngsters and then family oriented individuals.
In the prelaunch phase Billboards will be placed at strategic points such as universities, colleges and malls.

Also, stalls will utilize along with visual marketing by sponsoring bus stands and vehicles. Online marketing will be a strong factor in promoting RC Cola. Retailers will also be asked to provide eye shelf view to our product and we will also provide them with fridges. We would also target university cafeterias in the initial phase and provide them stock at a lower price than the market. The boom however will be created through TV and radio commercials.

The target market of RC cola is firstly the youth because they are the major consumers of carbonated beverages.

Secondly, people who prefer the crisp taste of cola rather than a sweet taste. Thirdly , the people who are family oriented .regardless of gender.who like to have a good time with family and enjoy having soft drinks with the meals.

There are two major competitors in the market , Pepsi and Coca Cola. RC Cola is a cola with a crisp taste and differs from Pepsi completely in the taste. Coca Cola is not available everywhere whereas we intend to make sure RC Cola is available in all areas of Sindh.

RC Cola will be positioned in a manner that is in reach of everyone. The taste will be of real cola and not a sweet taste. It will cater to the needs of youngsters by giving them a strong taste and also be promoted as a family drink which can be used in festivities and on occasions along with the daily life. We intend to associate fun and flavor. The initial aim of course is to penetrate into the carbonated drinks market.

PRODUCT STRATEGY: The company will strive for excellence specifically for the products or brands as well as packaging, distribution, marketing and pricing.

By celebrity endorsements such as with pop stars and cricketers, it helps the brand to be able to keep up with its competition.

We will get into deals to use RC Cola logos in all advertising, packaging, merchandising, and promotions. We will build a reputation as appealing to the teenage audience; the reason behind this is to attract the younger audience.

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 in regular bottle and in a can to make the product more focused.

RC Cola has a unique crisp and clean taste and its consistent with its flavor no matter where you buy it.

It has a refreshingly great taste even if it is not cold.


We will maintain the same taste however bring a new look to the bottle so that the product can be perceived as new.

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 their product.

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 4 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.

RC Cola initially will be available at all general stores, super stores, convenience stores, supermarkets, hotels and restaurants. We have divided the Karachi areas into two markets, Primary and Secondary to target the market geographically.

4) Promotion: Frequency of the RC Cola ads will vary from time to time. When the summer season comes RC Cola will do heavy advertisement especially in Ramadan days or Eid occasions etc. Incentive to Retailers will be given in the shape of: Deep Freezers, Return Tickets, Free Transportation Services. Online Ads and Radio Ads will alsoe be focused on to grab maximum attention.

RC Cola will give special offers to consumers on special occasions like Ramadan and Eid days like decreasing the price of the products, some special packs like Pakora Mix, Chat Masala, or Free Glass with Liter Bottles can be offered.

Other promotional activities may include:

Getting shelves. Eye Catching Position. Sale Promotion. UTC Scheme.

JO DIKHTA HAI WHO BIKTA HAI

BTL: BTL activities can be done in different shopping malls and crowded places. ATL: Newspaper. TV. Radio. Billboards. Online.

Pre-Launch Activities: The use of teasers on billboard and through radio will be used to create a hype about the product, tag lines such as The real Cola is back in town will attract consumers.

Launching of Product: The launch of the product will be on 14th Feb 2012 at Expo in a concert.

The day of launch will be full of fun filled activities sponsored by the company along with the official launch where families would be allowed to come in. The evening would turn more festive with the concert.

The purpose of launching the product on Valentines Day also has significance. This would help attract youth and at the same time give us a chance to introduce the pack to masses.

Post Launch activities: As part of the post launch activities , we would concentrate on improving the distribution channel.

The teasers on the bill boards would be replaced with Be Yourself and the image of the drink , that would help boost the consumer awareness. We will continue using the electronic and technological media for promoting the product, and try to get sports and other celebrities to endorse the product.

RC Cola Cricket. RC Cola Food Mela. RC Cola Concerts. RC Cola Basant Festival. RC Cola Shopping Festival. RC Cola Ramadan Campaign.

Start-up Cost Startup Cost Plant and Machinery Labor Delivery Vehicles Advertising Cost Rent R&D ( Innovative Ideas) Consultants (Marketing , Financials) Requirements

Rs Rs Rs Rs Rs Rs Rs

15,000,000 440,000 3,000,000 22,000,000 600,000 15,000 500,000

Generator Test Marketing Teasers Concert - Product Launch Raw Material

Rs Rs Rs Rs Rs

250,000 200,000 900,000 3,000,000 2,000,000

Total Start-up Expenses

Rs

47,905,000

Projected Income Statement


Net Sales Cost of goods sold Selling, general & administration expenses Other expense Depreciation Earning before interests and income tax Net interest expense Taxable income Taxes Net income

(00) 26935 10754 10526 392 1082 4181 152 4029 1367 2662

Quality Control: In compliance with the PSQCA (Pakistan Standards and Quality Control Authority). Evaluation Analysis: We assess feedback from sales revenue, and customers, and will adapt the product accordingly by maintaining positive dynamic, training managers & staff, and by upgrading the web site.

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