Running head: Royal Crown Cola

Intro to Consumer Behaviour

Submitted to: Namra Nadeem

Royal Crown Cola

Submitted by:

Ahmad Hamiyal

M. Fahad

Hamza Mubeen

Danish Attique

Husnain Shafqat

Ahmad Gujjar
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Abstract
This paper talks about a business plan to relaunch a business which vanished a few years ago

in Pakistan known as Royal Crown Cola or RC Cola. The paper talks about the history of the

company, the main product of the company and why it failed, how the product is going to

repositioned, product category and market profile. The paper also gives insight into the

behaviour consumers have in the target. Finally, the marketing mix is discussed which shows

how the brand will be relaunched.

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Acknowledgement
We would like to thank the following people for giving us an in-depth analysis of our topic:

 All of the people who filled are questionnaire aiding us in our primary research.

Without them, we would not have been able to get the opinion of the general

audience.

 The author of different articles which were used as a secondary research source.

The tasks were divided as follows:

Fahad:

 Worked on marketing mix.

 Helped in forming questionnaire.

 Helped in giving final touches and organizing paper.

 Helped in making slides.

Hamiyal:

 Conducted questionnaire.

 Analysed questionnaire.

 Worked the on Behaviour of consumer in the targeted market.

 Helped in giving final touches and organizing paper.

Hasnain:

 Worked on marketing mix.

 Helped in forming questionnaire.

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 Helped in making PowerPoint slides.

Hamza :

 Worked on the product category and market profile.

 Helped in making PowerPoint slides.

Danish:

 Worked on segmentation of markets.

 Helped in making PowerPoint slides.

Ahmad Gujjar:

 Worked on the trends prevailing in the market.

 Helped in making PowerPoint slides.

Table of contents
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Table of Contents

Abstract......................................................................................................................................2

Acknowledgement.....................................................................................................................3

Table of contents.......................................................................................................................5

History.......................................................................................................................................6

Why did Did RC Cola fail in Pakistan?...................................................................................7

Product Description..................................................................................................................9

Product Repositioning Statement...........................................................................................10

Product Category Market Profile...........................................................................................10

Segments:.......................................................................................................................................12

Competition...................................................................................................................................14

Trends............................................................................................................................................17

Target Segment Consumer Behaviour...................................................................................20

Marketing mix recommendation............................................................................................24

Product...........................................................................................................................................24

Price................................................................................................................................................25

Promotion......................................................................................................................................26

Placement.......................................................................................................................................27

Conclusion..............................................................................................................................29

Appendices...............................................................................................................................29

Questionnaire................................................................................................................................29
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Graphs And Charts.......................................................................................................................33

References...............................................................................................................................34
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History
Claud A. Hatcher was the one whose efforts resulted in the establishment of an RC company.

He was the co-owner of a grocery store, along with his father and two other partners, in

Columbus, Georgia. He was a grocery wholesaler and used to buy Coca-Cola syrup from a

local company salesman but due to some kind of conflict between the two, he decided not to

buy it anymore and was determined to develop his soft drink and he vowed to sell his drinks

in his bottles. 

In the basement of his store, he started to experiment with different products and used

the recipe of Ginger ale so in 1905 Royal Crown established its first product with the name of

Royal Crown Ginger ale (RC Cola,2020). This product was a huge success which helped

Hatcher to look for other opportunities in this field. And after this product Royal Crown

Strawberry, Royal Crown root beer, and Nehi were established. Due to the huge success of

Nehi, Hatcher decided to name his company as Nehi Inc. Before his death he had instructed

the chemist to develop a cola beverage because he knew most of the money is in the cola

market. New cola product with the name of Royal Crown Cola became so famous among the

customers that the company's future was represented by it. (Royal Crown Company, Inc.

History,2018)

In 1984, after winning the case against Coca-Cola for using the word Cola in their

advertisements the Nehi Corporation changed its name to Royal Crown Cola. In 1954, Royal

Crown started to sell the soft drink in a can, and then in an aluminium can, no other company

had done it before. In 1958, the company came up with the idea of diet Cola which resulted in

the establishment of diet cola, and later on, in 1980 caffeine-free Cola and RC 100 were

established. In 1990, sugar cane was used as a sweetener in Royal Crown craft Cola (Royal

Crown Company, Inc. History,2018). As Cherry coke and Wild Cherry Pepsi were already in
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the market so to compete with the company also released Cherry RC. In 1984 RC Cola was

just behind Coke and Pepsi. 

Cadbury took control of Royal Crown in 2000 by acquiring Snapple Royal Crown and

then it was folded into Dr Pepper Snapple group which moved away from Cadbury in 2000.

Then it was merged with Keurig Green Mountain in 2018 as Keurig Dr Pepper which is the

present owner of the RC Cola brand. It has set many examples for the other brands to follow.

For example, establishing first caffeine, sugar-free soda, first Kent soda, and first diet cola.

Moreover, it was also first in the development of a taste test on a national scale and this was

their advertising strategy and they came up with the slogan “the season's best.” (RC Cola,

2020).

Why Did RC Cola Fail in Pakistan?

RC cola was used to be a very popular company in Pakistan. In most parts of Pakistan, it was

known by the time when it arrived in Pakistan. The way Pepsi and coca-cola represent its

importance today, the same way it was carried by RC Cola back around the 1970s. But

unfortunately, it was sued by several organizations in the subcontinent, so RC cola took its

much of its investment from Subcontinent. By the 90s RC cola dissolved the entire

production stream in Pakistan due to some failures (Turri, 2013).

The taste and flavour of the RC Cola were admirable by the people in Pakistan. But

they got all wrong in the way of an advertisement campaign. In the 1970s, RC cola was doing

so well and they were not damaged by the campaign of coca-cola and Pepsi because during

the 70s they were already making the progress with the advertisement.

In the 80s, Coca Cola and Pepsi started to make their brand grow in Pakistan. They

were introducing the most unique ways of advertisement that was not done by the RC cola.
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The advertisement was the first game-changer for Coca-cola and Pepsi. That proved to be a

setback for RC cola. In other words, the RC cola effort was low in the task of advertisement.

The reason was that they were already sued before so their interest in the investment in the

sub-continent was low. The people of Pakistan used to like this product but it was many years

ago. 

The main reason for their failure was the low advertisement budget. They were more

interested in keeping the cost of RC Cola low. Due to this RC cola seemed to disappear from

TV, posters, and other sites of advertisements. Whereas, every single person knew about

coca-cola and Pepsi. There were no celebrity endorsements or any kind of reward promotion.

When its competitors came into the market they did extreme advertisements. Pepsi and Coca-

Cola used cool, creative, and innovative advertisements to grasp the attention of the

consumers. The carelessness of RC Cola towards advertising their product and vigorous

advertisements by Coca Cola and Pepsi completely turned the game upside down. Pepsi and

Coca-Cola, the two cola giants, made deals with the retailers to put their products on the

shelves as a result more and more products of Coca-Cola and Pepsi were found in the shops

of retailers, wholesalers, etc. Whereas RC Cola did not show any kind of interest in it which

caused its disappearance from the shops (Turri, 2013).

The other reason for the failure of RC Cola is the outlook of the bottle. Many people

feel that it does not attract the people the way coca-cola and Pepsi does. The shape of the

product also matters a lot it's thin shape gives a perception to the consumers that it has lesser

quantity as compared to its competitors. Moreover, it was not up to date whereas the

fashionable and trendy shape of its competitors had a huge impact on the consumers If RC

cola tries to come back to Pakistan, they have to face strong competitors like Pepsi and Coca-

cola (Baloch, 2020).

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RC Cola gave no new incentives to the retailers to put their drinks in their shops. No

special offers were given to the customers on the occasion of Eid or Ramadan. RC Cola did

not use any top newspapers like Dawn or Jhung for promotion neither did they use top

channels like Geo and Express for their promotion. TV commercial ads were also not much

captivating. Billboards of Coca-Cola near defence, Fortress, and other malls in huge cities

like Lahore, Karachi, and Islamabad attracted the customers whereas RC Cola did not use

such measures.

Product Description
The product which we are going to relaunch is RC Cola also known as Royal Crown Cola. It

is an American brand of cola-flavoured soft drink found in 1905. Its colour is similar to that

of Coca-Cola. Court beverages and Dr Pepper Snapple group manufacture. RC Cola contains

almost 160 calories (RC Cola, 2020). RC Cola has launched eight flavours to date which are:

 RC Cola (Regular)

 Diet RC Cola

 Cherry RC Cola

 RC Edge Cola

 Rite Cola

 RCQ

 Royal Crown Draft Cola

 Kick. 

The leading brand of the company RC cola which was the third-largest brand after coca-

cola and Pepsi. Its main flavours are RC Cola coffee, RC Cola Vanilla, and RC Cola with
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lemon. Its bottling system has transformed over many years first it was being bottled in a

basement and now in the 21st-century bottling is being done by automatic packaging

machines. Its ingredients are Carbonated Water, High Fructose Corn Syrup, Caramel Color,

Phosphoric Acid, Caffeine, Natural Flavors, Gum Acacia, Citric Acid. RC has a factory site

industrial area near the Shershah market, Karachi which covers an area of 5000 yards. Daily

production is 500 thousand litres a day. 

Product Repositioning Statement

For the younger generation, whether you are a bachelor or still in school, Royal Crown Cola

is a carbonated soft drink company manufactured by RC Cola. RC Cola provides the best soft

drinks available in the market at the best prices while offering quality taste and healthy

benefits.

Product Category Market Profile

Our product category part of the soft drinks market. As we go into specific terms, our product

could be specified as a carbonated drink. Soft drinks industry includes carbonated drinks,

milk and juices. From the types of different soft drinks, carbonated have the highest market

shares.

The soft drinks market is seen all over the world, especially in Pakistan. In hot

weather conditions, soft drinks are consumed even more than normal. The analysis of sales

industry shows that people do consume soft drinks through a direct channel like a retail shop

or like to order in an unconventional way when they are in the restaurant. The dynamic

growth has been seen over the period in both volume and current value terms. Off-trade and
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on-trade sales are in both areas where carbonates dominate the tremendous share of sales.

The culture in Pakistan or any other country encourages carbonates. Now the need to provide

with a high-quality carbonated drink is seen everywhere. Soft drink has passed all other

drinks in the term of its usage.

The product we are offering is categorized as low involvement product. This means

that the level of interest the consumer has in this product is low that is because it doesn’t

require a lengthy thought process and the perceived risk associated with the purchase of RC

Cola is very low i.e. monetary risk and functional risk. There is some degree of physical risk

that is because of the sugar level in the carbonated soft drink.

The benefit that RC Cola provides is that it has less cost than many of its other

competitors. It does have a bittersweet taste in comparison to its competitors. There are 5

flavours of our product so it can satisfy the need of our different consumers. The packaging

part of our product is also excessive. We are available with different types of the packaging

system.

Mass marketing and the new form of retailing helped the growing awareness that

made brands to trigger consumers to go for new product varieties. The average Pakistani is

becoming more indulged with the brands. There is a change that made the introduction of the

packaged item so that has automatically created brand awareness. The fast urbanization, the

middle-income consumer group growth, accessibility of local offerings, and the development

of modern retail channels also made some impact. These are some forms of market channels

that have made an impact on our product.

Majority people think of RC cola as a poor position holder in the terms of brand

preference. But many people do think that this is the brand that holds a reasonable price.

Most of the people around really think that RC cola has a sweet-bitter taste and they don’t
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like it and they say that it needs an improvement. Our packaging is also not viewed attractive

among the people. But some people do think that when you drink our product you look cool.

Our product is been known to the people of different categories. But we have broken

down our target market to limited aspects. The market we have targeted includes the primary

market of youth and teens. Both teens and youth are fond of cold drinks. Our Secondary

market includes school, colleges, hotels and parks. The demographic variable of our brand

includes the age from 12 to 50, gender is both female and male and social class comprises of

upper, middle, lower. The occupation where the product is used more involves working

people, students and youth.

Segments:

Customer segmentation is the practice of dividing a customer base into groups of individuals

that are similar in specific ways relevant to marketing, such as age, gender, interests and

spending habits. There’s no such customer segment regarding colas, as the person of every

age and gender tend to drink carbonated drinks. However, some people can be targeted by

diet drinks as many of the people are diet conscious nowadays.

Our product is been known to the people of different categories. But we have broken

down our target market to limited aspects. The market we have targeted includes the primary

market of youth and teens. Both teens and youth are fond of cold drinks. Our Secondary

market includes school, colleges, hotels and parks. The demographic variable of our brand

includes the age from 12 to 50, gender is both female and male and social class comprises of

upper, middle, lower. The occupation where the product is used more involves working

people, students and youth.

Currently, there are no RC Cola products in the market but with the proper marketing

mix, RC Cola which is looking to relaunch in the market have decided to target the youth. It’s
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no rocket science in understanding that the right choice is to target youth since they are more

into these drinks and therefore also are easier to manipulate through various advertisements.

Although the main target is of repositioning to the youth however there are some gaps

which can be exploited. But for that RC cola have to come up with something unique to

breakthrough. They can introduce a new drink not having any artificial sugars, just like

flavoured sparkling water which is not harmful and does not contain any sugar.

The main competitors in this segment are Pepsi and Coke. Coke owns around 38.8% of

market share while Pepsi contributes to the rest. The positions of these companies in the mind

of their consumers as the only “Real one” which means that the soft drinks offered by Pepsi

and Coke are only real.

The market which RC Cola is targeting currently has the consideration of popular soft

drinks available in the market i.e., Coca Cola, Pepsi, Sprite, Fanta, etc. Strong beliefs exist

among important brands is that quality will never be compromised and the price will always

be convenient to the target market. Product attributes are additional characteristics of a

product. For example, product attributes can be size and colour. If the product attributes are

attractive to the target market then your product could be very successful.

Salient Attributes: are the attributes that consumers can perceive in a given product,

brand, company or institution, but do not determine the buying process. The silent attribute of

the popular company ‘Apple’ is that the build quality of its products is always premium. Rc

cola needs to follow the footsteps of companies like Apple.

The market where RC cola is operating includes people who are very loyal to their

taste. Such brand loyalty exists because many companies in the market are developing their

formula of a perfect beverage however people will stick to the brands they’ve been exposed

to and like said before it is going to take a lot for them to switch to a new carbonated drink.

This is because the most population of Pakistan comprises of youth and carbonated soft
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drinks are generally popular among youth. Another reason is that the main competitors,

Coca-Cola and Pepsi’s, the prime target market are a younger generation so to compete with

them it’s necessary to target young people.

Competition

In Pakistan, RC Cola had a hard time facing its competitors and its advertising was

very less. Moreover, it was being sued by different organizations therefore the

investment RC Cola used to make in subcontinent decreased and finally somewhere

in the early 90s RC Cola stopped its production.

Two considerable competitors in this market are Coca-cola and Pepsi. The

innovation and different kind of marketing programs have helped these two brands

in attracting a lot of customers. To create brand awareness Coca Cola has focused

on the emotional side of a consumer. Moreover, it has also used classical

conditioning to Grab attention and have an impact on the consumer's emotion as

their major marketing strategy is to promote the message "share your happiness".

They also used classical conditioning for example one feels happy and relaxed after

listening to music.

The Coca-Cola company has associated Coca-Cola with music in the form

of Coke studio and the after looking at coke people get the same feeling as in the

case of listening to music. Moreover, the colour scheme used by Coke is very

attractive because the red colour could grab the attention of people. The marketing

techniques used by Pepsi are very interesting. Pepsi used above the line marketing

by sponsoring the international Pakistan team thus reaching to a large amount of

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audience These two brands are almost delivered in every part of the country. These

brands use different kinds of tactics to be present in the market at all time.

Talking about soft drink market in Pakistan, Pepsi holds 51% shares and

paid 9.9 billion tax whereas Coca-Cola has 38.8% market share and paid 7.8 billion

tax.

These brands have spent millions on their logo. They have a strong brand

image by presenting themselves to be socially responsible for example Coca-Cola

started a campaign in which they gave a few amounts of their profit to the Edhi

Foundation. Moreover, some of the women entrepreneurship programs were also

established. Similarly, Pepsi partners with a local organization to install solar lights

throughout Pakistan under the project name lighting up lives. (PepsiCo

partners,2016)

Coca-Cola has no specific target market but the major target is younger

people which are 12 to 30 years old. Their energetic and entertaining advertisements

attract a younger audience. By introducing diet coke, they have also attracted older

and health-conscious consumers. No specific lifestyle is targeted but the current

mobile generation is important and main consumers of coke they may include

students and family-oriented people. People tend to use drinks while going out on

parties, restaurants etc.

They are using strategic positioning so that they may have the same image

throughout the word. and creating good brand image have helped Coke and Pepsi to

create loyalty among the customers (Coca-cola targeting and positioning,2012).

Both of these bands work very hard to provide consumer satisfaction which

helps them in creating loyal customers. Loyalty rate of both these brands about

70%.
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They receive millions of messages showing how consumers love their

product. Coca-Cola is considered a market leader in the world but Pepsi is the

market leader in Pakistan. The consideration set of customers in this market would

be coca-cola, sprite, pepsi cola etc.

Many brands use differ rent tactic to increase investment by investing a huge

amount of money so that the advertisements showed repeatedly on television. This

repetition increase brand awareness. Similarly, family branding and product line

extension is also used for example Pepsi and coke both have established different

flavours of their product i.e. zero coca-cola, coca-cola with lemon. Family branding

is also used for example Pepsi has established different products under its brand i.e.

lays, Tropicana

People have very favourable views towards the soft drink’s brands in

Pakistan. Pepsi and coke are considered to be cola giants. These drinks are almost

used in every kind of occasion i.e. weddings, functions, parties. But now people

have started to consider these drinks to be unhealthy and they consider that physical

risk is associated with soft drinks because of the huge amount of sugar used in

them. They have become more conscious of their health. But the marketers have the

solution for this too. They have introduced diet drinks to facilitate the health-

conscious consumers. The things which encourage the consumer to buy the product

are the advertisements or innovative campaigns. So that the consumer becomes

aware of the products and an urge is created among themselves to buy the product.

The drinks are so common throughout the market and there is a lot of

information available for these drinks that the companies had to break huge chunks

of information to reach the mind of consumers. Word of mouth does not play much

of role in buying of soft drinks with the advent of social media since 2011, because
Royal Crown Cola 18

the information could reach easily to the huge number of consumers in a short time

through social media, different advertising campaign on social media is also seen to

be beneficial for the companies. The advertisements used in coca-cola use

emotional appeal but showing entertainment and happiness. Moreover, energy

drinks like sting create such ads to energize you. The consumption of soft drinking

in this market increase with age and it reaches its peak at the age of 14 to 25 years.

Trends

Initially, Royal Crown (RC) Cola shifted to selling drinks in aluminum cans and later they

shifted in the diet cola section as well. This was done because of the shifts in the activities,

interests, and opinions of the consumers i.e. the psychographics. In addition to this, Royal

Crown (RC) cola started targeting customers irrespective of their gender, ethnicity, or their

income group. RC cola had numerous variations in their drinks, which could be bought by

people from any income group i.e. the demographics. However, the important thing is that

RC Cola had made sure that no age group is determined. RC Cola is not a drink that only

elders can have. It was launched with the motive to target everyone. Every consumer

irrespective of their age can use Royal Crown (RC) cola. There were several trends in the

economic conditions that created difficulties for Royal Crown (RC) cola. The change in

inflation and economic ups and downs disrupted the supply of RC cola; however, even with

the decrease in demand for RC cola, the company has managed to stay in the market.

Royal Crown (RC) cola faces major competition from Pepsi and Coca Cola. As

mentioned in the research paper, previously. Pepsi Cola had a high share of 65%; whereas,

35% of the market share was contained by Royal Crown (RC) cola. It can be taken as an

achievement for the company as Pepsi used to have a market share of 80%, previously. There

is no doubt that at the moment, Pepsi Cola is leading the market and are the leaders in the
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beverage industry, as they have capitalized on the opportunity to advertise and maintain a

good image in the eye of the consumers. Pepsi’s effective campaigns, its association with

cricket and Pakistan Cricket Board (PCB), sponsorship to various musical events, and

numerous CSR activities have to lead them to create a positive image of theirs in the mind of

the customers; hence, providing them with the opportunity to cash their image and increase

their sales. The campaigns of Pepsi are targeted towards the youth. Pepsi understands that

youth is their major consumer and they feel that they should be able to capitalize on the

opportunity.

If we look at the gaps, there are always gaps in the market that can be exploited by rival

companies. However, at the moment, there are very few gaps that can be capitalized by RC

Cola. RC cola has lesser opportunities, but if RC cola works on its marketing campaign and

makes effort to create awareness in the mind of the consumers, then they can definitely take

advantage of the gaps. Once, brand awareness is created, the company can look forward to

creating and launch better advertisement campaigns and hence, capitalize on the market

share. This will open the opportunities for RC cola and hence, the drought can be brought to

end. Moreover, RC cola must look forward to changing alongside the trends in the market.

There are shifts that occur on daily basis, RC cola should look forward to anticipating those

shifts and work accordingly to attract a larger customer base.

Currently, the market is changing at regular intervals. One day there is a certain trend

and the next day, the trend completely changes. It is important for RC cola to understand

these trends and anticipate them accordingly. Currently, all the beverage companies are

looking forward to shifting themselves towards sports and entertainment. We can see that

beverage brands are either associating themselves with music, sports, or they are looking

forward to meeting the objective that they are healthy for the consumers. It should be the

trend for the market of RC cola as well. They should look to anticipate the changing market
Royal Crown Cola 20

and should have a strong and young customer base. Youth should be targeted and their

psychographics (activities, interests, and opinions) should be understood.

There are numerous beliefs regarding a product or a brand and its attributes. For

example, consumers attribute Pepsi to cricket and battle of bands, which is a very famous

music show held in Pakistan. On the other hand, red bull is considered an energy drink, as it

has always aligned its message with its objectives. Coca Cola, on the other hand, has always

looked to promote itself as a music brand (coke studio and coke fest). These are the beliefs of

the consumers regarding some of the famous beverage brands in Pakistan. The product and

brand attributes are the characteristics that consumers can associate themselves with those of

the brand and product. Consumers like those brands and products, which they feel are

defining their personality or can help in modifying the personality, so they tend to utilize that

product and brand more and more. It is important for RC cola to create its image in such a

way that whenever a certain attribute comes into the mind of the consumer, he/she

immediately relates to RC Cola.

Consumers are highly attracted to the brands in the beverage industry. Everyone looks

to drink beverages with their food and consume it with snacks as well. Yes, there are several

subjective norms that exist with the brand. People believe that their meal would not complete

if they have not tasted the beverage. In addition to this, there is a strong brand loyalty

assigned along with RC cola. The consumers who used to drink RC cola continues to do so,

even now. They believe that it brings nostalgia and reminds them of their past. This is a very

strong stimulant, as RC cola has a faithful and loyal customer base, who would love to drink

RC cola no matter what. Such a customer base exists because people can relate it with their

personality, youth, and other activities. People feel that RC cola defines their activities and

their personalities. It should not be neglected that RC cola has a huge market share even now.

Some alterations would definitely help it develop more.

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Target Segment Consumer Behaviour

The main behaviour of the consumer in the target market was studied through primary

research by the help of the questionnaire which was distributed to 100 respondents.

The main insights we gathered concerning some questions are mentioned below

How important is packaging design in determining your purchase of soda?

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This result shows that for over half of the participants cared about the packaging of the

product which can be related to covariation which generally means that people attribute good

looking products are generally also good in quality and overall function.

This is also related to sensory receptors i.e. vision. As our product is in black with blue and

red logo. It sends a psychological message to consumers which are that black colour

represents boldness while boldness is something that everyone wants, blue colour conveys

the feeling security and safety, while red colour shows excitement.

How important is a brand name when purchasing a carbonated beverage?

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These results show that the majority of people are loyal to their brands while for one fifth it

doesn’t matter that much.

The concept of brand identification can be used here for instance the memory stored in the

mind of the consumer is fixed so they prefer their brand over other brands.

When choosing a soft drink what influences your decision?

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These results showed that most of the people prefer quality taste in soft drinks. It comes

under the taste which is one of our sensory receptors. Now, there can be many reasons for the

taste. One of the reasons is the cultural factor which is to drink sweetened water after at least

one of the meals in the day. Another factor is that hot summer weather in Pakistan influences

people to buy something refreshing i.e., soft drinks which is both refreshing and excellent in

taste.

What is your level of loyalty towards soft drinks?

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These results show that most of the youth is loyal to the brand.

Here the concept of love mark is used which is a passionate commitment of a consumer to a

brand. This shows that consumer who has set a standard brand in their mind doesn’t want to

try any other brand. They are only loyal to one brand, they only like the taste and quality of

that brand.
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Marketing mix recommendation

The objective of drafting out the marketing plan for RC Cola is to win the market share in

Pakistan and beat Pepsi and coke which are the two big competitors in that region. This

objective is set because in past RC Cola has been the market leader for more than 20 years in

Pakistan and there was no competition. This object might be difficult to achieve but is not

impossible as RC cola has a very strong brand name which is a strong edge.

Product

RC cola would be available in different sizes, quantity and taste. For health-conscious people,

we'll introduce diet cola. It has no harmful effect and will satisfy the needs and create

refreshment among all people. Special care would be taken about the quality of the product.

Everything will be tested from water samples to ingredients to achieve the the best quality.

Initially, we would be releasing three flavours i.e., RC cola, diet RC cola and RC energy

drink.

It will come in different sizes 250 ml regular bottle, 500ml bottle, 1-litre regular bottle,

1.5-litre bottle and 2.5 Litre jumbo bottle.

One of the reasons RC cola failed was due to the thin shape of its bottle and it seemed

that it had lower volume the other cola drinks in the market. Therefore, some modifications

would be done and its shape would be given more style and elegance. As people have this

heuristic in mind that stylish things are better. It used to have caffeine in it and now people

of Pakistan have become more aware of the harmful nature of caffeine. So, we'll stop using

caffeine in it.
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Price

The price will be kept not too low or too high then the price competitor is charging otherwise

our product will be ignored by the consumers. We will be using penetrating pricing

strategy. In the very beginning, we will try to keep or profit as low as possible. As the

product has been out of the market therefore to gain market share, it is necessary to keep the

prices low. Then latter it could be increased keeping in mind the demand of the public

Moreover, the government of Pakistan has reduced taxes on the soft drink industry therefore

even if we kept the prices low, we would not be suffering losses because the cost of

production will be less. (RC cola marketing plan, 2017)

We would also make use of frequency marketing by giving discounts to our loyal

customers and special awards like a free biscuit, chat masala etc. Special offers and discounts

would be given on occasions like Eid, Ramadan, Christmas. For example, on buying to 250

ml bottles discount of 15 rupees would be given and the discount will keep on increasing with

the size of the bottle the customer buys. Moreover, on the three days of Eid, we will give a

ten-rupee note along with the bottle purchased by the customer. It would help grab the

attention of customers and in return will increase its sales. These are the prices of different

sizes of bottles. They are kept lower than that of competitors. Customer has approach-

approach motivation conflict, so we will make it easier for them to choose our product by

saying we are providing better quality in lower price.

Royal Crown Cola 28

Promotion

Promotional strategy is the second element of the marketing mix and it plays a very important

role in improving the sales. Huge amount of promotion would be required to gain the market

share.

Customers are exposed to a lot of information so it should be promoted in such a way through

innovative and creative advertisements to break the cluster of information and reach the mind

of customer easily. We'll use above the line promotion by advertising our product on various

channels i.e., ARY, Dawn, Samaa, Geo, Hum tv. Separate advertisements would be made on

each of the occasions like Eid, Ramadan, Pakistan Day.

In Pakistan, still, print media is considered one of the important sources for promotion

We could also use newspapers and magazine for this purpose. Moreover, banners and big

advertisements could also be used to create brand awareness. Posters behind rickshaws and

advertisements playing through projectors on the back screen of cars could also be used to

break the huge amount of information which consumers are already exposed to.
Royal Crown Cola 29

In the very beginning, we could give samples to the customers completely free so that

they may become aware of the product and its taste. Different kinds of events could be

conducted within malls like emporium and packages mall which would involve various

games and the winner would be given various prizes with the sticker of RC cola on it.

Below the line advertising would also be used by making various deals with the

owners of the buildings or the shops to let us paint their shops with our logo on it. We would

be also involved in personal selling and our representatives will reach out to customers in

order create awareness about our product.

Another tactic would be in which the customers will scratch the bottle cap and

through lucky draw customers would win amazing prizes. Loss aversion will be used by

making customers realize that they are missing out a lot by not takin part in this contest.

We are also thinking of using classical conditioning by associating RC cola with

Independence Day, special advertisements would be made and bottles would be introduced
Royal Crown Cola 30

with a green sticker around them so that the customers would be having the same excitement

and feeling of joy as they have on the Independence Day.

We'll make use of semiotics by giving RC cola the symbol of superhero which will

present hope, power, adventure and that you have the ability to amaze. Specific banners

representing adventure would be major to attract children we would, be giving free masks to

them. We would be also involved in personal selling.

Specific banners representing adventure would be made, to gain the attention of the

youngsters.
Royal Crown Cola 31

Unique ads tend to remain in the memory for longer period of time therefore, we will also

make use of humor appeal in the advertisements as shown here.

In order to attract children, we would be giving free masks to them. This positive
reinforcement would encourage them to buy again.
Royal Crown Cola 32

Nostalgia: In order to evoke memories of the past we 'll use different characters of previous
times. As you can see in the ads given below.
Royal Crown Cola 33

Placement

We will make RC cola available throughout the country. People in rural areas will also be

able to buy it easily. We will be making use of push strategy by reaching out to the retailers

directly. We will try to establish good relationships with wholesalers and retailers by

providing them with different kinds of incentives which will involve rewards, bonuses and

most importantly credit facility. Intensive distribution would be carried out to ensure that RC

cola is available in the whole of Pakistan (RC cola marketing plan, 2018)

We'll be using fixed time interval reinforcement. Rewards could be given on a monthly and

yearly basis. The yearly basis award may include motorcycle, 3 days stay at PC Bhurban.

Monthly rewards may include a pack of bottles. The best dealer award would be provided

with the cheque of 75000 Rs. This reward system will encourage them to sell our product

with enthusiasm. We4 will make deals with the retailers to keep our product at the eye level

of the customer. We'll also make use of fixed ratio reinforcement schedule by giving them

bonuses on selling 50 bottles. This will make them work hard to reach the given target.
Royal Crown Cola 34

Conclusion
People liked RC cola in Pakistan but it was a lot of time ago. At that time there was no cola in

the market but when Pepsi and Coca-Cola came, they took most of the share in the market

and captured the awareness of people. And Rc cola was more interested in keeping its price

low and meanwhile, RC cola reduced its advertisement in Pakistan. To come back into the

market the only way is through excessive advertisement and using trendy style. Huge amount

of money needs to be invested and special care must be taken about the shape of the bottle

that it should be trendy and stylish. According to the behaviour of consumer we got to know

that they are more interested in the taste and the outlook of the products. Taste would also be

improved by making it less bitter. They need to advertise in the right place and at the right

time. We will try not to make those mistakes which were made by RC cola earlier
Royal Crown Cola 35

Appendices

Questionnaire

1. What is your gender?

 Female

 Male

 Prefer not to answer

2. What is your age?

 Under 18

 18-24

 25-34

 35-44

3. How often do you consume carbonated beverages?

 Daily

 Once a week

 Several times a week

 Every few weeks

4.  Which type of drink do you consume more often?

 Regular (not diet) Soda

Royal Crown Cola 36

 Diet Soda

 Neither

5. Where are you most likely to purchase a carbonated drink?

 Grocery Store

 Convenience Store

 Gas Station

 Vending Machine

6.  How important is packaging design in determining your purchase of soda?

 Very Important

 Important

 Somewhat Important

 Not Important

7.  How important is a brand name when purchasing a carbonated beverage?

 Very Important

 Important

 Somewhat Important

 Not Important

8.  Which carbonated beverage do you consume the most?

 Coca-Cola

 Sprite
Royal Crown Cola 37

 Fanta

 Pepsi

 Other (please specify)_______

9.  When choosing a soft drink what influences your decision?

 Calories

 Price

 Taste

 Free from artificial flavourings and colourings

 Other (please specify)

10.  Are you concerned about the levels of sugar in soft drinks?

 Yes

 No

 I'm not sure

11. If there was a "clean" soft drink on the market with healthier options and very less

sugar than other carbonated soft drinks present in the market would you consider

swapping your existing drink of choice for this?

 Yes

 No

 Maybe

 I don't drink soft drinks

Royal Crown Cola 38

12.  If you buy canned soft drinks how many do you tend to buy at a time?

 1-5

 6-12

 12-24

 24 or more

13. If a soft drink is available in the market better than the imported soft drinks would you

prefer it?

 Yes

 No

 Maybe

14. Does your lifestyle affect your purchase of soft drink? For example more outgoing to

parties or dinner.

 Yes

 No

 Maybe

15. What is your level of loyalty towards soft drinks?

 Low

 Medium

 High

16. How did you come to know about the soft drink you consume?
Royal Crown Cola 39

 Advertisement

 Word of mouth

 Others (please specify)__________

Graphs And Charts

Q1. What is your gender?

Q2. What is your age?

Royal Crown Cola 40

Q3. How often do you consume carbonated beverages?

Q4. Which type of drink do you consume more often?

Royal Crown Cola 41

Q5. Where are you most likely to purchase a carbonated drink?

Royal Crown Cola 42

Q6.  How important is packaging design in determining your purchase of soda?

Q7.  How important is a brand name when purchasing a carbonated beverage?

Royal Crown Cola 43

Q8. Which carbonated beverage do you consume the most?

Q9.  When choosing a soft drink what influences your decision?

Royal Crown Cola 44

Q10.  Are you concerned about the levels of sugar in soft drinks?

Q11. If there was a "clean" soft drink on the market with healthier options and very less

sugar than other carbonated soft drinks present in the market would you consider swapping

your existing drink of choice for this?

Royal Crown Cola 45

Q12. If you buy canned soft drinks how many do you tend to buy at a time?
Royal Crown Cola 46

Q13. If a soft drink is available in the market better than the imported soft drinks would you

prefer it?

Q14. Does your lifestyle affect your purchase of soft drink? For example more outgoing to

parties or dinner.
Royal Crown Cola 47

Q15. What is your level of loyalty towards soft drinks?

Q16. How did you come to know about the soft drink you consume
Royal Crown Cola 48

References

Wright, T. (2010, July 20). Coke Gains on Pepsi in Pakistan: 15 Bottles Per Person and

Counting. Retrieved October 08, 2020, from

https://www.wsj.com/articles/SB10001424052748704720004575377190499667312

Bukhari, M., 2018. Battle Of The Beverages: Will Coke Studio Help Coca Cola Slay The

Pepsi

Dragon?. Profit by Pakistan Today. Available at:

https://profit.pakistantoday.com.pk/2018/08/27/battle-of-the-beverages-will-coke-

studio-help-coca-cola-slay-the-pepsi-dragon

Khan, A., 2020. Production Of Soft Drinks Rises 29Pc. DAWN.COM. Retrieved

fromhttps://www.dawn.com/news/1126886

UKEssays.com. 2017. RC Cola Marketing Plan. Retrieved from:

https://www.ukessays.com/essays/marketing/marketing-plan-for-rc-cola-drink-

marketing-essay.php

Bhasin, H., 2020. Marketing Mix Of RC Cola - RC Cola Marketing Mix And 4 P Of RC

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[online] Marketing91. Retrieved from: https://www.marketing91.com/marketing-mix-

rc-cola
Royal Crown Cola 49

Turri, P. (n.d.). Failed Products In Pakistan (Why Rc Cola Failed In Pakistan). Retrieved

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Company-Histories.com. (n.d.). Retrieved October 09, 2020, from https://www.company-

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Correspondents, O. (2016, June 17). Pakistan PepsiCo partners with local

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War, C. (n.d.). Coca Cola targeting and positioning. Retrieved November 26, 2020,
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positioning.html