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Transcript of RC
If they want to maintain their image in consumer’s mind they should have good promotion campaigns as the competitors are always coming with their new ideas. Due to this strategy, the distributors and retailers will be attracted to buy stocks of RC cola.
It will help the company to have their products on the first shelves of the stores as they are making distributors and retailers happy by giving them discounts.
Ultimately it will position the brand well. The profit on Coke and Pepsi are also less than that provided by RC cola. In case of RC Cola:
Distributor’s profit= Rs. 30
Retailer’s profit= Rs.60
In case of Coke and Pepsi
Distributor’s profit= Rs. 23
Retailer’s profit=Rs. 40 Price of 250 ml crate: (24 X 15)= Rs. 360
Price of 500 ml crate: (12 X 35) = Rs. 420
Price of 1.5 lit. crate: (6 X 85)= Rs. 510
Incentives to Distributors and Retailers:
6 bottles of 250ml free and 1.5lit pet bottle at a cost of Rs.75 instead of Rs.85.
Distributor gives 4 bottles free of 250ml to the retailer on each crate.
Means retailer gets a discount of 60 on each crate (15 X 4) The design of the 250ml-glass bottle has been altered and made a bit trendy to match the current requirements.
The design of the 1.5lit pet bottles is almost similar as the 1.5lit pet bottles of Pepsi.
They will introduce new design 250 or 330ml pet bottles for RC Cola and for their other brands in future.
A new 500 ml bottle will also be launched which was not present when RC was in production. By Age
RC cola will aim to target the age group bracket 10-50 as nowadays every individual consume colas regardless of their age.
Although we are catering to a wide age bracket but our ads will mainly focus on the youth. RC cola is the oldest cola and has the original cola formula. It was the first cola ever which can serve as its unique selling point.
We will take advantage of our unique selling point in our promotional campaigns by informing and reviving this thing in consumers.
Our “RC-Your first love” campaign is also inspired by our USP. Although lack of advertising was the main reason for the failure, we can’t ignore other factors covering the 4 P’s.
We have decided to change the traditional packaging of RC, its retailing strategies Pakistan is a developing and emerging market in terms of brand awareness and brand consciousness.
As gradually it continues emerging more factors will evolve to describe brand loyalty.
Pepsi's share of the market for carbonated soft drinks is currently 65% to Coke's 30%.
It may become difficult for marketers to make consumers switch to a new entrant in such a competitive environment RC cola however failed to penetrate in the Pakistan market where heavy weights such as Pepsi and Coke had already attained their bragging rights and had fully captured the market. In 1985, RC Cola was introduced in Karachi. At that time it was a very famous drink and held a good share in cola market.
But after 1986, the company faced some financial problems and unable to promote RC Cola.
Royal Crown Cola Company has five franchises in Pakistan. They are in working under the working of Continental Beverages Limited.
They have franchises in the leading cities which include Karachi, Lahore, Islamabad, Multan and Hyderabad. RC originated in Columbus, Ga., when a young pharmacist named Claud A. Hatcher.
Since its launch in 1905, RC Cola has been a soft drink that embodies individuality and entrepreneurial spirit.
RC's crisp, clean taste distinguishes it from other colas, and has become a favorite of cola drinkers throughout America
That's all Folks Therefore RC Cola needs a heavy promotional campaign to be relaunched.
Consumers are already able to recall the brand and there is only need to create awareness, through the promotional campaigns mentioned above as RC cola can surely enter the beverage market.
RC cola has suffered a lot in the past only due to its lack of advertising. Conclusion As mentioned before in the report that Pepsi unethically started to pick RC’s bottles and start dumping them in their warehouses.
we have made a print advertisement to inform people about this unethical practice done by Pepsi, which became one of the reasons why RC had financial problems “You take our glass, We come in plastic” There will be cycles which will supply RC cola small pet bottles to households (Like walls ice cream).
No other cola brand has started this type of campaign so this may help to promote our product well. It will also lead to brand awareness.
RC door to door cycles To help our network of bottlers fully maximize the earning power of our brands.
RC takes the creation and communication of our unique visual brand identity very seriously.
As such, we aim to work closely with local advertising agencies throughout Pakistan to develop ad campaigns and media strategies (television, radio, P.O.S. materials, billboards, etc.) appropriate to our bottler's locations and budgets. Promotion RC will use 25 direct routes and 35 indirect routes.
We aim to expand our distribution channel by hiring leading distributors all over Pakistan.
An advertisement will also be circulated in leading newspapers in which we will express our need to hire leading distributors of colas in leading cities. Place In a highly competitive marketplace filled with "cola wars," strong brand identification is critical to building bigger brand share.
Making sure consumers quickly and clearly recognize a brand product ultimately comes down to one thing – packaging.
RC Cola will be available in 250 ml glass bottles, 500ml PET bottles, Cans and also in economy size pet bottles (1.5lit). Design and Packaging Quality
Each RC Cola contains all the flavoring ingredients necessary to produce our delicious, flavorful beverages.
To deliver the premium product our customers expect, we choose only the highest quality raw ingredients from around the globe.
Inspection Team Product Marketing mix consist of everything that the firm can do to influence the demand for its products.
The 4 P’s Include:
Promotion Marketing Mix Our cola formula is the first ever cola formula which also makes it the original cola.
This serves as our USP and thus also differentiates it with our competitors, Coke and Pepsi.
Our First love campaign is also inspired by RC being the first cola. Differentiating the brand so customers will remember it Our advertising will be deeply involved in reviving brand awareness; we aim to start “your first love campaign” and also some campaigns that show this brand to be environmental friendly. Brand awareness (or increasing brand awareness) By Income and Location
RC will segment in a way that it focuses on the income groups.
RC cola will cater to each and every income group of the respective location.
The glass bottles are cheaper than the plastic ones, the plastic ones (500 ml and 1.5 liters) are relatively higher in price. So each type of bottle will cater to the category of their respective income group.
The glass bottles will cater to the lower income group and vice versa.
We have also decided to launch RC door to door cycles which will distribute pet bottles Market Segmentation Pepsi cola is the market leader of carbonated drinks in Pakistan with 60 percent of market share whereas Coke has 30 percent of market share.
A number of domestic players tried to get them into the industry but they relied totally on emotional selling of their products.
As a result very quickly they were thrown out of the business.
One of the main reasons for this heavy competition is presence to two tiger competitor Competitors’ Analysis SWOT ANALYSIS Lack of Advertising compared to its competitors.
Financial Problems and sale of assets
SSRB (Single Served Returnable Bottles) Problem Reasons for Failure Right from the very start of its formation, RC cola as a company has been quite successful in gathering customers in large numbers both in US and abroad.
RC Cola provides a varied portfolio to its customers which comprises of the traditional RC cola and the Diet RC.
RC Cola were in fact the first beverage company to introduce a sugar free diet drink. The RC Cola brand is one with a truly unique heritage.
RC Cola is a soft drink that embodies individuality and entrepreneurial spirit.
RC's crisp and clean taste distinguishes it from other colas. Such a failure was unusual for RC Cola which had been a success in every other market.
We thus plan to hit the markets with a rejuvenated RC cola.
With a unique taste of cola and its exquisite packaging at minimum rates RC Cola will answer to everything you require in a refreshing drink. Introduction Jahanzeb Aamir
Ali Ijlal The Re-launch Of RC Cola Today in a world of globalization, every product and every consumer mind is changing every minute.
There will always be a need to adopt a policy or a strategy that can help this organization in the long run.
The tough competitors like coke and Pepsi are always trying to penetrate further in the market.
RC cola should design strategies that maintain the brand image, loyalty against its competitors. Recommendations for Future Facebook
YouTube Online Media Cleanliness and greener earth will be another goal of RC cola. Small trash cans will be available outside the stores where RC cola will be available. Responsible Citizen Movement By this campaign we aim to inform consumers that RC cola was the first cola ever introduced in Pakistan.
RC cola was quite successful in capturing consumers’ hearts and it was on boom until Coke and Pepsi penetrated into the market with their high budgeted promotions.
By this campaign we will tell the consumers that RC cola was their first love, and Coke and Pepsi are the ones who came later, so it’s time to go back to their first love. “Your First Love” Campaign Same as competitors
Don’t want it to be perceived of low quality by charging low prices.
The prices of our products will be; 250 ml: Rs.15, 500 ml: Rs 35, Can: Rs.35, 1.5 lit.: 85. Price We aim to have a position driven advertising strategy. Two keys to brand positioning are:
Brand awareness (or increasing brand awareness)
Differentiating the brand so customers will remember it Marketing and Positioning strategies 48% of the sample also said that advertising plays a role in their buying habits concerning soft drinks.
Thus we will heavily rely on advertising, as the other factors such as taste and quality have completely been able to satisfy the consumers.
Once our promotion campaign, “RC- your first love is launched”, we will be able to inform consumers about RC being the first cola and hopefully people may turn back to its consumption. Regardless of the failure of RC cola in the past, the consumers are still willing to consume RC which can be beneficial for the relauch.
The results showed that 78% of the consumers think that it was due to lack of advertising.
This also makes sure that there is no problem with RC’s taste or price. Lack of advertising became the main reason for its failure.
As mentioned above, the parent company- Royal Crown Cola was not providing sufficient funds for advertising Consumer perception about RC’s Failure 78% of the targeted sample said that they will be happy to consume RC cola if it is relaunched again What if its re-launched? Still the consumer response seems favorable as according to the questionnaire circulated, 80% of the consumers are able to recall RC as a cola brand
It means that if a well coordinated promotion and advertising campaign is initiated, people can be directed towards consuming RC cola Can You Recall RC? Consumers in Pakistan have able to have associations with the leading cola brands I.e.: Coke and Pepsi.
Research has explored that there are multiple determinants and factors affecting brand loyalty of Pepsi and Coke in Pakistani market.
There is no doubt in it that Pakistani market behaves very differently from other parts of the world mainly due to culture and level of education Consumer Behavior Analysis The New Packaging Launch in Pakistan Like other countries, soft drink industry in Pakistan is also facing very tough competition.
The soft drink market has recently witnessed expansion with the entry of several new players but they were unable to survive in this heavy competitive environment.