Presentation on RC Cola

Group members
Hammad bin qasim 02
[Link] 04
Kamran Tahir 12
[Link] 16
 Introduction
Rc has a factory at site industrial area near sher
shah market which cover an area of 5000 yards.
The project is located at D-210, estate avenue
S.I.T.E industrial area Karachi.
 History
• Hatcher launched the Union Bottling Works in his
family's grocery store. The first product in the Royal
Crown line was Royal Crown Ginger Ale in
1905, followed by Royal Crown Strawberry, and
Royal Crown Root Beer. The company was renamed
Chero-Cola in 1910, and in 1925 renamed Nehi
Corporation after its colored and flavored drinks. In
1934, Chero-Cola was reformulated by Rufus Kamm,
a chemist, and re-released as Royal Crown Cola.
Type Cola

Manufacturer Keurig Dr Pepper (US only)

Cott Corporation (International)

Country of origin United States

Introduced 1905; 114 years ago

Color Caramel

Flavor Cola, Cola Cherry, Cola Lemon,

Variants RC Cola
Light RC Cola
Diet Rite Cola
Cherry RC
RC Cola Lemon
RC 100
RC Draft Cola
RC Cola Edge
RC Cola Zero
Royal Crown Mixers
RC Cola Kick
RC Q
RC TEN
Roayal Crown Cola Classic (1905 edition)
 mission
Rc cola is dedicating to providing the best drinks
to people throughout their day, throught their
lives, throughout the world. Our unique
experience of anticipating customers needs and
creating solutions with the drinks of rc cola.
 Vision
The vision of our company is that in every gathering, event
or functions our brand will complete it and satisfy there
organizers.
Consumer vission:
A consumer vision is "a visual image of certain product-
related behaviors and their consequences.  It concrete and
vivid mental images that enable consumers to vicariously
experience the self-relevant consequences of product use"
These include possible selves, narrative form, visual
imagery, affective reactions, and goal representation.
 objectives
Consumers objectives
Good quality
Taste should much better than competitors
Product available in all sizes.
Low cost
Nearest outlet
Good environment
Easily available in shooping malls utility stores and
bakers
There are many reasons of failure of rc cola
some are as follows:
1. Lack of product uniqueness
2. Poor planning
3. Poor timing
4. Misguided enthusiasm
5. Product deficiencies
1. Lack of product uniqueness:
Any product that does not satisfy a unique need
of consumers, fails to dislodge more established
brands available. Customers must comprehend
the new product’s advantages.
• 2. Poor planning:
Companies must have a game-plan that carries them
through every stage and aspect of product’s life. The
plan is to care for consumers. Many forces are at work
that alter consumer’s needs and wants for products;
life- styles change populations, age and preferences
change; similarly needs of industrial buyers are
affected by changing business opportunities shortage
of energy and material, technological advance and so
on.
3. Poor timing:
The market success depends, to a large extent,
on the ability of the company to launch the
product at a time when consumer demand is at
its highest. 
4. Misguided enthusiasm:
 planners should rely on only authentic and unbiased
information for reading the future which is uncertain.
5. Product deficiencies:
Many a times, technical product deficiencies are the
common cause of new product failure. Engineers and
product technocrats are capable of giving the best
laboratory products by over- engineering. This is a good
so far as technical superiority is concerned over
competitors.
 Reasons of failure of rc cola
there was no budget for advertising to meet the
competitor.
Low quality
Few selling points
Name Muhammad Saqlain

ROLL# 04
 Marketing Mix
Product
•Decline of RC Cola shows that there was something wrong in the product or there was
something more well in the products provided by Pepsi and Coke.
•Rebranding of the product is not an option in case of RC Cola as it is an internationally
recognized brand and has a history of more than 100 years. It is consumed by children and
adults all over the world. Rebranding in case of RC Cola means that the name of Royal Crown
will be replaced by a new brand, which will not be an effective move.
•Company should try to improve the quality of the product, for example they should try not to
use Caffeine in the drinks as they used to have. As mentioned above people in Pakistan have
become more aware about the health and hygiene issues and they know that Caffeine is not
good for the health in long term.
•RC Cola should try to improve the taste of their drink, this is because it tastes a bit bitter as
compared to Pepsi and Coke.
•There is no variety in the taste and they are only offering RC Cola and RC Cola Diet. Company
should look to launch RC Cola with variety of tastes as other companies have done. Option of
developing new products such as RC Cola Cherry and RC Cola Strawberry is a good option.
•It should be made available in different sizes ranging from 250 ml to 2.5 Litter . Option of
having disposable bottles should be considered.
 Promotion
1. Company can distribute free samples of the RC Cola
to the costumers so that they are made aware about
the product with new packaging and taste.
2. Company should seek to introduce new offers such
as “Buy a 2L jumbo size bottle and get 250ml for free”.
3. Company can introduce a lucky draw in which
winner will get a car and runners up gets small prizes.
4. Company may put vending machines with their
logo in schools, colleges and universities.
 Price
• As the product has been in decline and out of market for a
while so the best option is to adopt marketing penetration
strategy and keeping the prices low. This is because our
objective is to gain the market share which cannot be
achieved if the prices are high.
• The price should not be too low otherwise it will be
perceived as a low quality drink by people.
• As government has levied the taxes for this particular
industry which has resulted in reduced cost to the
company, even if company set low prices it will not incur
any loss.
 Place
• This is related to how the product is made available to the customers.
It is all about distribution of the product in market.
• Traditionally in Pakistan the soft drinks manufacturers have links with
distributions and wholesalers. So keeping in mind how it works in
particular country it is advisable that company should develop
relationship with wholesaler and distribution holders, where they
could place their product and the product is made available to the
consumers.
• In this case company should go for the strategy of intensive
distribution that ensures that product is placed at as many outlets as
possible by the company. Because they aim to cover the large number
of customers, so it should be made sure that RC Cola is available in
each corner of the Pakistan.
• Using distributions will also save the cast that would have been
incurred if company has to store the product in their warehouse.
Distributions somehow provide storage facility as well.
 Tools of sale promotion

• Samples
• Premium(in pack)(on pack) extra product
offered
• Coupons
• Frequent programs
• Bill enclosures
• Point of purchase display
• Trade shows
Name Kamran Tahir
Roll# 12
 Analysis
• Before drafting out a marketing plan for the
chosen product it is important to analyse the
industry situation. It includes the analysis of
strengths and the weaknesses along with the
opportunities and the threat that can affect
the choice of the marketing strategy that we
will adopt. At the moment the soft drinks
industry of Pakistan is dominated by the
products of Pepsi (market leader) and coke.
 SWOT ANALYSIS
Strength

• Signature Taste: The RC Cola brand is known to have a taste that is drastically different
from that of other brands like Pepsi and Coca-Cola.
• Spirit of innovation: The vision of the company is closely related to innovation and the
company has fostered a spirit of innovation right from the very early days of its inception.
• Credible Brands: One of the company’s most popular brands Dr. Pepper scores high on
uniqueness in taste, brand relevance, equity, and strengths.
• Fast moving low-calorie drinks: The low-calorie drinks of the business have topped the
charts in the years 2013 onwards and has been successful in bringing back lost business.
• Diverse Product Portfolio: The Company has a variety of products such as colas, orange
flavored carbonated drinks, sugar-free colas, tonic water, and ginger ale with cranberry
and bitter lemon. Their brands under the umbrella RC Refresher has a varied set of tastes
to offer such as bitter lemon, cranberry, Tom Collins and ginger ale which are popular in
cocktails.
• Price
Very low price to its competitor
 Weaknesses
• Low ad spends: In comparison to big brands like Pepsi and Coca-Cola
the advertising spends of RC Cola is relatively low and this affects the
overall perception of customers about the brand.
• Legal Crises: RC Cola has been continuously under the scanner with
many legal issues like copyright and anti-trust issues. Even the
competitors try to strangle RC Cola in a number of lawsuits while trying
to maintain the lead.
• Capital Issues: The Company was unable to match its string rivals in
marketing, manufacturing, and branding for which a huge outlay of
capital was needed which the company did not have.
• Poor networks: The distribution channels of the company are not
widespread and this has prevented them from expanding their
networks into foreign countries.
 Opportunity
• Growth in per capita income: The growth in per capita income
globally has resulted in a growing need for drinks and juices.
• Increased tendency to eat out and growth in fast food culture:
Recent shifts in customer habits have created a growing
preference for fast food and eating out both of which create a
corresponding increase in sales of soft drinks and juices.
• Growing demand in emerging economies: Emerging economies
in Asia and Africa are seen as the biggest consumers of soft drinks
globally and are turning to be lucrative markets for cola drinks.
These markets are largely unexplored and offer huge prospects
for soft drinks manufacturers.
 Threats
• Strong and Established competitors: The competitors of
RC Cola are the two top brands not just in the soft drinks
segment but amongst the leading companies in the world-
Coca-Cola and Pepsi. This makes them unbeatable threats
for RC Cola.
• A negative image of aerated drinks: The media, as well as
healthcare experts, portray colas and other soft drinks as
health risks and high in calories. This forms a risk in
boosting sales.
• Healthier options: Quite unlike earlier days today many off
the shelf brands are available for fresh juices, iced teas,
and the milkshake. The presence of these brands eats into
the market shares of soft drink companies.
 PEST ANALYSIS
Political

• Changes in laws and regulations—changes in accounting standards,

taxation requirements (tax rate changes, modified tax law interpretations,
entrance of new tax laws), and environmental laws either in domestic or
foreign authorities.
• Changes in non-alcoholic business era—competitive product and pricing
policy pressures and ability to maintain or earn share of sales in worldwide
market compared to rivals.
• Political conditions, specifically in international markets—civil conflict,
governmental changes, and restrictions concerning the ability to relocate
capital across borders.
• Ability to penetrate emerging and developing markets—this also relies on
economic and political conditions, such as civil conflict and governmental
changes, as well as RC COLA ability to form effectively strategic business
alliances with local bottlers, and to enhance their production amenities,
distribution networks, sales equipment, and technology
 Economic Analysis
• It could be seen that “economical variables” highly
affects tha cola’s resolution. Economic factors are
those factor that effect the production of any
industry. So, Rc cola is not out of questions. If the
economic condition of the country is not strong and
rc cola increase 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 production of rc cola
 Sociological
• Sociological analyzes the ways in which changes in
society affect the organization such as changing life
style attitude of the market. Since many are
reaching in older age in life they are becoming more
concerns with increase their longevity . this will
continue to affect the non alcoholic beverage
industry by increasing the demand for the healthier
range of beverage as the demand of carbonated
soft drink decrease the revenue of rc cola also
decline
 Technological
• Technological Force refers to analysis where the
introduction and the emerging technological
techniques are values . this create opportunities for
new product and product improvement in term of
marketing and production. As the technology
advances new product are introduces into the
market.
Name [Link]
Roll 16
 Motivation
Hedonic Needs
Rc cola fulfill the hedonic need of its
customers
Through advertisement rc cola shows that
drink Rc cola to become successful through its
unique taste and refer royal crown drink.
The drink of social class people
 Biological need
• Rc cola also fullfill the biological need.
• RC cola do not use Caffeine in the drinks.
People in Pakistan have become more aware
about the health and hygiene issues and they
know that Caffeine is not good for the health
in long term.
 Perception
The process by which an individual selects,
organizes and interprets stimuli into a
meaningful and coherent picture of the world
Consumer make perception about Rc Cola
through their internal and external factors of
perceptions and also their sensory system
which consists of Colors, Smell, sound, taste,
touch
 Marketing implications
• Marketers make advertisement in which they
target the customers sensory system and internal
and external factors
• In internal factors Size , contrast ,intensity
,motion , repetition , novelty
• In external factors
Needs and motivation
Learning
Personality and self image
 Attitude
• Consumer attitude may be defined as a feeling
of favorableness or unfavorableness that an
individual has towards an object. As we, all
know that an individual with a positive
attitude is more likely to buy a product and
this results in the possibility of liking or
disliking a product.
• Attitude Change Strategies.  Changing attitudes is
generally very difficult, particularly when consumers
suspect that the marketer has a self-serving agenda
in bringing about this change
Change in consumers Attitude through three
components
1-) Cognition
• plays a vital role for consumers because, it can be
either positive or negative towards an object. For
example, some may say RC cola is good , others may
say too much of RC cola is not good for health.
Human beliefs are not accurate and can change
according to situations.
• 2-)Affective
Consumers have certain specific feelings
towards some products or brands. Sometimes
these feelings are based on certain beliefs and
sometimes they are not. For example, an
individual feels uneasy when he thinks about
drink, because of the tremendous amount of
caffeine or fats it has.
• 3-)Behavior
show the plans of consumers with respect to the
products. This is sometimes a logical result of
beliefs or feelings, but not always. For
example, an individual personally might not
like a RC cola, but when offer by friends
occasionally people drink it because it
provides social acceptance
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.
 Market 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
 advertising
• Informs customer
• Creates demand
• Maintains demand
• Challenges competition
• Manage and increase goodwill
• Reduce cost by increasing sales
• Saves time of customers
• Raise standard
 MEDIUMS OF ADVERTISEMENT
• Newspapers
• Magazines
• Catalogues
• Posters
• Billboards
• Electric displays
• Radio
• television
 Budget for advertisement
• Implementation of a plan needs finances, if there is no finance allocated to the
plan than plan will always remain as a piece of paper left inside the drawer of
office table.
• After looking at the Pakistan's current market rates for the advertisement,
budgeted expense has been drafted which is as follows:
• Mode of Media used budgeted expense
• Television Adverts 2,000,000
• Newspapers 100,000
• Light Boards 500,000
• Magazines 100,000
• Total Cost 2,700,000
• Once budget is allocated to the project than company should move on to start
allocating the responsibilities and tasks. The marketing plan will be of no use if
capable people of staff are not assigned duties and given the deadline for fulfilling
their tasks. Specify the date on which product will be launched into the market.
 Conclusion
• No advance mood of marketing
• new competitors
• cost on research and development
• company do not have enough finances to launch a marketing campaign in response
• external and internal elements that will have an effect on the product directly
• SWOT analysis
• objectives which the product wants to achieve.
• Marketing mix analyse
• links them with the objectives and missions of the company.
• proper budget allocation
• the world has become a global village
• birth of e-marketing the things have changed
• basic market research techniques followed now a days are Surveys, Personal Interviews, Observations and
Focused groups.
• birth of e-marketing these marketing research
• Pakistan customers are not treated as they should be, the shop keepers are rude to customers and they are not
cared. On the other hand the behaviour of the people towards their costumers is very courteous and polite
because they know the value of having these customers as they generate revenues out of these are now more
likely to be carried out via internet.
Thank you