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 r ight 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, C ola, 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 wholeheartedly 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 France Ireland Italy Norway Romania Slovenia Canary Islands Spain Sweden Switzerland Portugal Turkey
Argentina Bolivia Brazil Dominican Republic Ecuador Guatemala Martinique Paraguay Peru Uruguay Philippines Thailand Taiwan
RC cola in Pakistan:Current position:-
Estonia Kyrcyztan Latvia Lithuania Russia Tajikistan Turkmenistan Ukraine Australia Cook Islands Fiji Indonesia Japan
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 7,000,000 Faisalabad 3,116,851 Multan Psychographic Segmentation: -
Social Class Basically our product mostly attract the Working Class,
