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Submitted ASSIGNMENT RC d To: | Mr. Arslan Sarw C-COLA FAILURE & RE-LUNCH MBA “G” Section 6/13/2012 war HING
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Rc Cola failure in Pakistan and relaunching

Oct 26, 2014

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Page 1: Rc Cola failure in Pakistan and relaunching

Submitted To:

ASSIGNMENT RC

Submitted To: | Mr. Arslan Sarwar

RC-COLA FAILURE & RE-LUNCHING

MBA “G” Section

6/13/2012

Mr. Arslan Sarwar

LUNCHING

Page 2: Rc Cola failure in Pakistan and relaunching

2

Dedicate

To

Our

Parents

Page 3: Rc Cola failure in Pakistan and relaunching

GROUP MEMBERS

M Waqas Afzal

Gohar Ejaz

Usman Nadeem

Bilal Ahmed

Shoaib Arshad Butt

GROUP MEMBERS

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11014220-0

11014220-0

11014220-0

Shoaib Arshad Butt 11014220-126

3

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027

018

033

126

Page 4: Rc Cola failure in Pakistan and relaunching

Details

RC-Cola failure in Pakistan …

Product ………………

Product ………………

Price ………………

Place ………………

Promotion ………………

Promotion ………………

SWOT analysis ……………

Current market situation

Threats and opportunities

Objective and issue …

Action program …

Budgeting ………………

Controlling ………………

Conclusion ………………

Table of Contents

Cola failure in Pakistan ……………………………

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Current market situation ………………………..…………

Threats and opportunities ………….…………………

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Page 5: Rc Cola failure in Pakistan and relaunching

RC-

RC-Cola was very famous drink in Pakistan.

today. RC-Cola was being sued by different organization internationally so it’s lowered

investment and stopped its production in Pakistan RC

they want back in production in Pakistan they must face strong competitors like Pepsi and Coke

because all the market targeted by these in Pakistan.

Reasons for failure of RC-Cola:

• Internationally Sued

• Competitors

• Minimal advertisement

• Low investment

-Cola failure in Pakistan

Cola was very famous drink in Pakistan. They have same popularity like Pepsi and Coke

Cola was being sued by different organization internationally so it’s lowered

investment and stopped its production in Pakistan RC-Cola in not currently open

they want back in production in Pakistan they must face strong competitors like Pepsi and Coke

because all the market targeted by these in Pakistan. (See images below)

Cola:

5

They have same popularity like Pepsi and Coke

Cola was being sued by different organization internationally so it’s lowered

Cola in not currently open in Pakistan if

they want back in production in Pakistan they must face strong competitors like Pepsi and Coke

Page 6: Rc Cola failure in Pakistan and relaunching

A marketing mix will be applied on RC

Product:

RC-Cola has launched 8 flavors till date which are.

1. RC Cola (Regular)

2. RC Cola Diet

3. RC Cola cherry

4. RC Edge Cola

5. Rite Cola

6. RCQ

7. Royal crown draft Cola

8. Kick

RC-COLA has a unique crisp and taste and it consist it flavor it’s no matter where you buy it.

Some modification will be done with the shape of the bottle like

their bottle shape; RC-COLA must

change the shape of the regular size bottle because more customers want it.

“NOT TOO NAROW, NOR TOO BORED”, they will launch just two to three like RC

RC-DIET, and RC-SUNDROP.

Logo:

When we revive RC-Cola into the market we must change logo. We will create attractive

logo instead of bold and old logo.

Marketing Mix

will be applied on RC-COLA.

Cola has launched 8 flavors till date which are.

COLA has a unique crisp and taste and it consist it flavor it’s no matter where you buy it.

Some modification will be done with the shape of the bottle like Pepsi they recently changed

COLA must do this thing and changed their logo as well.

change the shape of the regular size bottle because more customers want it. The product line

“NOT TOO NAROW, NOR TOO BORED”, they will launch just two to three like RC

Cola into the market we must change logo. We will create attractive

logo instead of bold and old logo.

6

COLA has a unique crisp and taste and it consist it flavor it’s no matter where you buy it.

they recently changed

changed their logo as well. They will

The product line

“NOT TOO NAROW, NOR TOO BORED”, they will launch just two to three like RC-COLA,

Cola into the market we must change logo. We will create attractive

Page 7: Rc Cola failure in Pakistan and relaunching

Packaging:

RC-Cola packaging is slim and simple, not too much curves. When we revive, we will

change the shape of the bottle like Pepsi

Labeling:

The caps are simply printed and so on with the bottle. There are no plastic label and

boxed label, they are just put simple.

Cola cap trendy design with logo on it.

Cola packaging is slim and simple, not too much curves. When we revive, we will

change the shape of the bottle like Pepsi and Coke recently did.

The caps are simply printed and so on with the bottle. There are no plastic label and

boxed label, they are just put simple. The ingredients are printed on the cap. We will make RC

Cola cap trendy design with logo on it.

7

Cola packaging is slim and simple, not too much curves. When we revive, we will

The caps are simply printed and so on with the bottle. There are no plastic label and

The ingredients are printed on the cap. We will make RC-

Page 8: Rc Cola failure in Pakistan and relaunching

Price:

RC-Cola should keep in mind while launching products its pricing strategy.

• Price should not too low nor to high.

• Price should be according to

• Price should be according to the demand of the product.

• Price should be that which gives company in profit.

Incentive to retailer in shape of;

• Freezers

• Fridges

• Hotel launch

• Return tickets

Place:

RC-Cola will use push strategy for their product by using different promotional tools. They

should provide allowances to their retailer and try to minimize the channel like manufacturer to

direct retailer and then to the shopkeepers

zone basis, and easily supply to that areas.

customer easily see it or easily pick it up.

Manufacturer wholsalers

Cola should keep in mind while launching products its pricing strategy.

Price should not too low nor to high.

Price should be according to the target market.

Price should be according to the demand of the product.

Price should be that which gives company in profit.

Cola will use push strategy for their product by using different promotional tools. They

should provide allowances to their retailer and try to minimize the channel like manufacturer to

direct retailer and then to the shopkeepers and finally to the customers. They will

zone basis, and easily supply to that areas. We will place our products on those places where’s

customer easily see it or easily pick it up.

wholsalers Retailers shopkeepers

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Cola will use push strategy for their product by using different promotional tools. They

should provide allowances to their retailer and try to minimize the channel like manufacturer to

They will divide area on

We will place our products on those places where’s

Customer

Page 9: Rc Cola failure in Pakistan and relaunching

Promotion:

RC-Cola will use some promotional mix tactics to advertise their

• Advertisement ü Outdoor

• Sales promotion ü Discount ü Allowance

• Direct marketing ü Mails ü Online

• Sponsorship

Advertisement:

• Bill boards

• Transport

Cola will use some promotional mix tactics to advertise their product.

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Page 10: Rc Cola failure in Pakistan and relaunching

• Electronic advertisement

ü TV

ü Radio

And must use “PEAK-HOURS”

• Online

ü Face book

ü Yahoo

ü Other sites which are mostly used by peoples.

Sponsorship:

RC-Cola will sponsor Cricket, Football, and on other extracurricular activities.

Electronic advertisement

HOURS” for ads on electronic media.

Other sites which are mostly used by peoples.

Cola will sponsor Cricket, Football, and on other extracurricular activities.

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Page 11: Rc Cola failure in Pakistan and relaunching

SWOT Analysis in Pakistan

Strength:

• Brand image

• Unique taste

Weakness:

• Less budget for advertisement

• Less capital

• International Law suits

• Market share

Opportunity:

• Expansion in new market

• More festivals

• Build a brand equity

Threat:

• Tax rate increase rapidly

• Competitors like Pepsi and Coke

• Economy not stabiles

• New technology

• People changing trends

SWOT Analysis in Pakistan

dvertisement

Expansion in new market

Tax rate increase rapidly

like Pepsi and Coke

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Page 12: Rc Cola failure in Pakistan and relaunching

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Marketing plan

Current market situation:

In current market situation we now about the changes that market adopted. And also eye on our

competitor, what they did or do. We know about the market through different changes that we

implement on our product.

Product changes:

We adopt new trend into the market and change the shape of the bottle. We also change our logo

that was too old; we make it trendy and bold. We lunch different packaging and change their

label as well.

Customer changes:

Peoples now these days are being status conscious. They prefer Colas instead of traditional Colas

like Rohafza and Jam-e-sheren. They celebrate their happiness at hotel or at café and use Colas.

Environment changes:

We will adopt fair trade and pay a fair wage to those workers who make it. From the beginning

to the lunching every person should be pay for their work.

Distribution changes:

We minimize the wholesaler effect and directly distribute to retailer. This effect minimizes the

cost in shape of commission. We directly approach the retailer and on weekly basis we check the

demand and supply of the Cola.

Threats & opportunities:

We analyze threats and opportunities through five forces.

Page 13: Rc Cola failure in Pakistan and relaunching

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Economic forces:

Economy is threat for us because Pakistan’s GDP rate is low. And here the inflation rate is high.

Economy is not suitable because currency value day by day decreasing. Instead of all we have a

little bit opportunity because peoples spend their money for buying Cola.

Political forces:

We have opportunity because the infrastructure of Pakistan now days are better than pervious.

And government completes their tenure.

Social forces:

People use Cold drinks in functions and parties instead of traditional drinks. It’s because of

peoples now days are status conscious. And also on summer people use cold drinks. So we have

opportunity in shape of social forces.

Technological forces:

Technology is changing day by day due to the competition and globalization. It’s threats for us

because two big competitors Pepsi and coke used high technology for their production. So we

import high technological machinery from abroad.

Competitive forces:

We have eye on competitors and target those areas where peoples use Cold drinks more than

other like shopping center, café, bus stop etc. we have eye on competitors both, Direct and

indirect e.g. Pepsi, coke, Gorment, Big apple etc.

Objective & issue:

Our object is re lunch RC-Cola in Pakistan and issue is that, either government grant licenses to

revive or not. Because RC-Cola is closed in Pakistan and one reason is that internationally suit

against RC-Cola.

Page 14: Rc Cola failure in Pakistan and relaunching

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Action program:

After all now we lunch RC-Cola into the market. We implement all strategy that we have make

for lunching. We make our product trendy, we advertise well, we distribute it to the retailer and

after two to three days we check the demand and the supply of our product. And implement all

those strategies that have made.

Budgeting:

• Percentage to sales

10% of the sales ____________ sales promotion.

• On the basis of competitors

Budgeting plan for 3 months for Lahore, Gujranwala, and Gujrat. As the competitors have a

strongly penetrated into the market and less familiar with the promotion techniques. So

company has to fix the certain amount for that purpose from our capital.

Particulars Cost

Television Rs. 9,00,000

Newspaper Rs. 3,05,000

Magazines Rs.1,00,000

Outdoor Rs.17,00,000

Total 30,05,000

Page 15: Rc Cola failure in Pakistan and relaunching

Controlling:

At the end we collect questioners from people that how they must satisfy about RC

will see that how much effectively we will

different zones and point head at each zone. At weekly basis we will check the demand and the

supply of RC-Cola into the market. We collect data from market on daily basis that what changes

market adopted or will be adopt in future.

different packages at different festivals like EID, RAMADAN.

retailers who make more sale than other or more than our target.

machinery for production, labeling, packaging.

They increase their prices or decrease. We provide freezers to shopkeeper and place our product

very well manners where’s customer easily see or approach to the pro

At the end we collect questioners from people that how they must satisfy about RC

will see that how much effectively we will do and controlling RC-Cola. We divide area at

different zones and point head at each zone. At weekly basis we will check the demand and the

Cola into the market. We collect data from market on daily basis that what changes

be adopt in future. We use celebrities for advertisement purpose. We give

different packages at different festivals like EID, RAMADAN. We give incentives to

who make more sale than other or more than our target. We use high technological

achinery for production, labeling, packaging. We have eye on our competitors what they did.

They increase their prices or decrease. We provide freezers to shopkeeper and place our product

very well manners where’s customer easily see or approach to the product.

15

At the end we collect questioners from people that how they must satisfy about RC-Cola. We

Cola. We divide area at

different zones and point head at each zone. At weekly basis we will check the demand and the

Cola into the market. We collect data from market on daily basis that what changes

We use celebrities for advertisement purpose. We give

We give incentives to those

We use high technological

We have eye on our competitors what they did.

They increase their prices or decrease. We provide freezers to shopkeeper and place our product

Page 16: Rc Cola failure in Pakistan and relaunching

According to us, we conclude that RC

and internationally sued against him. In Pakistan peoples really liked RC

ago. It may be because that time no other cola in Pakistan like Pepsi, coke, and others.

other Colas came they advertised well and captured the awareness of the peoples.

rise back in action, so it is possible for them through proper advert

product. It will happen when they use trendy style logo, bottle, caps, and other thing

the product. And advertise at right time at right place where they really need it.

Conclusion

According to us, we conclude that RC-Cola failed in Pakistan because of its poor advertisement

gainst him. In Pakistan peoples really liked RC-Cola, but

It may be because that time no other cola in Pakistan like Pepsi, coke, and others.

other Colas came they advertised well and captured the awareness of the peoples.

rise back in action, so it is possible for them through proper advertisement and the outlook of the

It will happen when they use trendy style logo, bottle, caps, and other thing

And advertise at right time at right place where they really need it.

16

Cola failed in Pakistan because of its poor advertisement

, but a lot of time

It may be because that time no other cola in Pakistan like Pepsi, coke, and others. When

other Colas came they advertised well and captured the awareness of the peoples. If they want to

isement and the outlook of the

It will happen when they use trendy style logo, bottle, caps, and other things relating to