6/13/2012

MBA G Section
ASSIGNMENT
RC OLA FAILURE & RE-LUNCHING RC-C
Submitted To: | Mr. Arslan Sarwar
Dedicate To Our Parents
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GROUP MEMBERS
M Waqas Afzal Gohar Ejaz Usman Nadeem Bilal Ahmed Shoaib Arshad Butt
11014220-019 0 11014220-027 0 11014220-018 0 11014220-033 0 11014220-126
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Table of Contents
Details Page #
Cola RC-Cola failure in Pakistan Product Product Price Place Promotion Promotion
5 6 7 8 8 9 10 11 12 13 13 14 14 15 16
SWOT analysis Current market situation .. Threats and opport
ng Controlling Conclusion .
..

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RC-Cola failure in Pakistan
Cola RC-Cola was very famous drink in Pakistan. They have same popularity like P
epsi and Coke today. RC-Cola was being sued by different organization internatio
nally so it's lowered Cola investment and stopped its production in Pakistan RC Co
la in not currently open in Pakistan if RC-Cola they want back in production in
Pakistan they must face strong competitors like Pepsi and Coke because all the m
arket targeted by these in Pakistan. (See images below)
Reasons for failure of RC-Cola: Cola:
Internationally Sued Competitors Minimal advertisement Low investment
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Marketing Mix
RC-COLA. A marketing mix will be applied on RC
Product:
Cola 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 cro
wn draft Cola 8. Kick RC-COLA has a unique crisp and taste and it consist it fla
vor it's no matter where you buy it. COLA Some modification will be done with the
shape of the bottle like Pepsi they recently changed their bottle shape; RC-COLA
must do this thing and changed their logo as well. They will COLA change the sh
ape of the regular size bottle because more customers want it. The product line N
OT TOO NAROW, NOR TOO BORED, they will launch just two to three like RC RC-COLA,
RC-DIET, and RC-SUNDROP.
Logo:
When we revive RC-Cola into the market we must change logo. We will create attra
ctive Cola logo instead of bold and old logo.
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Packaging:
RC-Cola packaging is slim and simple, not too much curves. When we revive, we wi
ll Cola change the shape of the bottle like Pepsi and Coke recently did.
Labeling:
The caps are simply printed and so on with the bottle. There are no plastic labe
l and boxed label, they are just put simple. The ingredients are printed on the
cap. We will make RC RCCola cap trendy design with logo on it.
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Price:
Cola 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 the target ma
rket. Price should be according to the demand of the product. Price should be th
at which gives company in profit.
Incentive to retailer in shape of; Freezers Fridges Hotel launch Return tickets
Place:
Manufacturer
wholsalers
Retailers
shopkeepers
Customer
RC-Cola will use push strategy for their product by using different promotional
tools. They Cola should provide allowances to their retailer and try to minimize
the channel like manufacturer to direct retailer and then to the shopkeepers an
d finally to the customers. They will divide area on zone basis, and easily supp
ly to that areas. We will place our products on those places where's customer easi
ly see it or easily pick it up.
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Promotion:
Cola RC-Cola will use some promotional mix tactics to advertise their product. A
dvertisement Outdoor Sales promotion Discount Allowance Direct marketing Mails O
nline Sponsorship

Advertisement:
Bill boards

Transport
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Electronic advertisement TV Radio

HOURS And must use PEAK-HOURS for ads on electronic media. Online Face book Yahoo O
ther sites which are mostly used by peoples.
Sponsorship:
Cola RC-Cola will sponsor Cricket, Football, and on other extracurricular activi
ties.
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SWOT Analysis in Pakistan
Strength:
Brand image Unique taste
Weakness:
Less budget for advertisement dvertisement 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 N
ew technology People changing trends
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Marketing plan
Current market situation:
In current market situation we now about the changes that market adopted. And al
so 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 c
hange 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 caf 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 effe
ct 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.
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Economic forces:
Economy is threat for us because Pakistan's GDP rate is low. And here the inflatio
n rate is high. Economy is not suitable because currency value day by day decrea
sing. Instead of all we have a little bit opportunity because peoples spend thei
r money for buying Cola.
Political forces:
We have opportunity because the infrastructure of Pakistan now days are better t
han pervious. And government completes their tenure.
Social forces:
People use Cold drinks in functions and parties instead of traditional drinks. I
t's because of peoples now days are status conscious. And also on summer people us
e 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 t
hreats for us because two big competitors Pepsi and coke used high technology fo
r 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, caf, bus stop etc. we have eye on competito
rs 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 r
eason is that internationally suit against RC-Cola.
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Action program:
After all now we lunch RC-Cola into the market. We implement all strategy that w
e have make for lunching. We make our product trendy, we advertise well, we dist
ribute it to the retailer and after two to three days we check the demand and th
e supply of our product. And implement all those strategies that have made.
Budgeting:
Percentage to sales ____________ sales promotion.
10% of the sales
On the basis of competitors
Budgeting plan for 3 months for Lahore, Gujranwala, and Gujrat. As the competito
rs have a strongly penetrated into the market and less familiar with the promoti
on techniques. So company has to fix the certain amount for that purpose from ou
r capital.
Particulars Television Newspaper Magazines Outdoor Total
Cost Rs. 9,00,000 Rs. 3,05,000 Rs.1,00,000 Rs.17,00,000 30,05,000
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Controlling:
At the end we collect questioners from people that how they must satisfy about R
C RC-Cola. We will see that how much effectively we will do and controlling RC-C
ola. We divide area at Cola. different zones and point head at each zone. At wee
kly 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 Cola market adopted o
r will be adopt in future. We use celebrities for advertisement purpose. We give
different packages at different festivals like EID, RAMADAN. We give incentives
to those retailers who make more sale than other or more than our target. We us
e high technological machinery for production, labeling, packaging. We have eye
on our competitors what they did. achinery They increase their prices or decreas
e. We provide freezers to shopkeeper and place our product very well manners whe
re's customer easily see or approach to the pro product.
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Conclusion
According to us, we conclude that RC Cola failed in Pakistan because of its poor
advertisement RC-Cola and internationally sued against him. In Pakistan peoples
really liked RC gainst RC-Cola, but a lot of time , ago. It may be because that
time no other cola in Pakistan like Pepsi, coke, and others. When other Colas c
ame they advertised well and captured the awareness of the peoples. If they want
to rise back in action, so it is possible for them through proper advertisement
and the outlook of the advertisement product. It will happen when they use tren
dy style logo, bottle, caps, and other thing relating to things the product. And
advertise at right time at right place where they really need it.
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