MARKETING REPORT

“RC COLA PAKISTAN”

GROUP MEMBERS registration no

S.M Saif Ali 64555
Maham Asif 13721
Ashhad Bin kalam 64723
Laiba Latif 64734
Habiba M Farooq 64551
Sheikh Muhammad Uzair 64839
 TABLE OF CONTENT

ACKNOWLEDGEMENT
COMPANY DESCRIPTION
VISION / MISSION
HISTORY
PRODUCTS DESCRIPTION
COMPETITORS ANALYSIS
SWOT ANALYSIS
SEGMENTATION AND TARGETING
REASON FOR FAILURE OF RC COLA
MARKET POSITIONING
REPOSITIONING 4P’S
PRODUCT STRATEGY
PRICE STRATEGY
PROMOTION STRATEGY
PLACE (DISTRIBUTION STRATEGY)
CONCLUSION
EXCUETIVE SUMMARY
  ACKNOWLEDGEMENT

Many thanks to Almighty Allah who helped us to achieving our goals. we would
like to express the deepest appreciation to all those who provide us possibility to
complete this report special gratitude we give to our teacher Faisal Ismail who
give us the opportunity to do this wonderful project, who’s contribution is
stimulating knowledge, suggestions and encouragement, helped us to coordinate
our project especially in writing this report.
Information used in this report has been fully acknowledged.
 INTRODUCTION

A Claude A. Hatcher, a pharmacist of the state of Georgia, invented RC Cola in

1905. RC Cola was the first soda to be sold in aluminum Can. The first diet soda
ever sold was introduced by the company in 1958 and was called Diet Rite.
RC originated in Columbus, Ga., when a young pharmacist named Cloud A.
Hatcher decided to supply his family's grocery store with drinks that he produced
and bottled,
Since it is launched in 1905 RC COLA has been a soft drink that embodies
individuality and entrepreneurial spirit, RC's crisp, clean taste.

RC originated in Columbus, Ga., when a young pharmacist named Cloud A.

Hatcher decided to supply his family’s grocery store with drinks that he produced
and bottled. Hatcher called his first line of beverages “Royal Crown,” and the first
cola product “Cero-Cola.” Other early products included Royal Crown Ginger Ale,
Royal Crown Strawberry and Royal Crown Root Beer.
Sales grew steadily and in 1912 Hatcher’s basement bottling activities grew into
the Cero-Cola Co. Sixteen years later, he renamed the company Nehi Corporation,
after the successful line of fruity beverages he had developed.
RC continued to expand throughout the following decade and began to
advertise more aggressively. Advertisements were inserted into publications such
as Saturday Evening Post and Good Housekeeping, and endorsements by
Hollywood stars such as Joan Crawford, Bob Hope and Bing Crosby were featured
on billboards throughout the nation.
As RC continued to grow, it stayed true to its independent personality by
producing innovation after innovation. In 1954, the company became the first to
nationally distributed soft drinks in cans. Four years later, the company
introduced the 16-ounce bottle.
In terms of beverages, RC produced the first low-calorie diet cola (Diet Rite), the
first caffeine-free diet cola (RC 100) and the first diet cherry cola (Diet Cherry RC).
Other RC innovations include the all-aluminum beverage can and Royal Crown
Draft cola, a premium cola made with pure sugar cane.
London-based Cadbury Schweppes plc acquired the RC Cola brand in October
2000. Today, RC Cola continues under the ownership of Plano, Texas-based
Cadbury Schweppes Americas Beverages, the largest subsidiary of Cadbury
Schweppes plc.
What is in a name? RC Cola received its name from the people who matter the
most: its consumers. When the reformulated product was released in 1934, the
manufacturer named it “Royal Crown Cola.” As the soft drink became increasingly
successful, consumers affectionately abbreviated the name to “RC.”

VISION STATEMENT

The vision of ARC Refreshments Corporation is to be the lowest cost producer of

ready-to-drink, non-alcoholic beverages and to be able to market products with
the best quality and value.
We put value first in everything we do. Proudly a Filipino company, this spirit
drives the way we do business. This is the personality and trademark we uphold.
We value relationships with our colleagues and business partners, we turn out
products of superior value, and we believe in advocating good values.
The lowest cost producer of ready to drink, nonalcoholic the lowest cost
producer of ready to drink, nonalcoholic beverages and to be able to market
products with the beverages and to be able to market products with the best
quality and value. Best quality and value.”

MISSION STATEMENT
 Our Mission is to refresh, attract and to satisfy the Our Mission is to refresh,
attract and to satisfy the customers with this we can effectively participate in the
customers with this we can effectively participate in the social and economic

HISTORY OF RC COLA
MR CLAUD HATCHER founder established the union bottling works in Columbus
Georgia in the basement of the wholesale grocery business of his family RC cola is
similar to coca cola in its color. Each can of RC cola contain 160 calories .RC cola is
manufactured by cot beverages’ and doctor pepper Snapple.
The reason for choosing this product is it was the favorite product of 90’s people
but after 2000 it loses its value in Pakistan and began to fade away after that the
authority is taken by Pepsi or coke. I have been trying to draw up a marketing
strategy for RC cola because I know there are so many people in Pakistan who
used to like RC cola in their childhood and want it to come back.
 Product that will be offered:
 RC COLA
 DIET RC COLA
 RC ENERGY DRINK
 Ingredients :
 Carbonated water
 High Fructose Corn syrup
 Sugar
 Caramel Color
 Citric acid
 Natural Flavor
 Caffeine
 Quality:
Everything should be tested from water sample to ingredients In order to
archive the best quality of our product.
 Depth:
The variant that will be offered by RC cola is about size and quality
 175ml mini bottles
 250 ml regular bottle
  500 ml bottle
 1000 ml litter bottle
 1500 ml disposable bottle
 2000 ml jumbo bottle

Competitor of RC COLA and their marketing strategy :

 Coca-cola :
Coca cola Bases its marketing strategy on well-known Marketing mix of 4P’S
PRODUCT, PRICE, PROMOTION AND PLACE.
Visual and aural media includes Television, radio; cinema and various types
of media are used to advertise the coca cola.
 Cola – next :
The mission statement is to continuous develop and produce quality
product that meets the product and market demands

SWOT ANALYSIS

The analysis of the internal and external environment is integral for determining
the company’s strategic standpoint and potential for success regarding the
Product.
STRENGTHS
RC Cola is the cola, which is more than 100 year old. In Pakistan the image of the
brand is already been made 30 years back and it just want a good marketing
strategy to recall the brand
RC Cola is an international company and it has very strong position
internationally.
RC Cola has a very vast distribution and it is easily available everywhere.

WEAKNESSES
Low advertising budget.
It does not offer any sort of incentive or discount to its retailers.
International law suits.
RC Cola only targeted lower class in their promotions before.

OPPORTUNITY
To provide more concentrative and conglomerate product drinks.
The heat factor in the sub-continent.
Company may start entering rural areas also.
To build a brand equity
The company may also its business in some other potential business.
Increase interest of people in musical groups, cultural shows and sports has
provided an opportunity for RC Cola to increase its sales through them.

THREADS
Very strong established competitors like Pepsi and Coke.
Cola drinks are not good for the health so the awareness level of the people is
increasing which is a big thread to the company.
It is a fact that RC Cola was faded away in the early 90’s.
SEGMENTATION AND TARGETING
GEOGRAPHIC SEGMENTATION

 Geographically, Continental Beverages divided Pakistan into provinces

and then into cities.
 Climate is also very important geographical factor because in summers
the sales of soft drinks are at peak than in other seasons.

Continental beverages is actually a franchise of ROYAL CROWN COLA COMPANY,

Which is the parent company and it is in USA. As you know, ROYAL CROWN COLA
COMPANY has five franchises all over the Pakistan. Two franchises are in Sindh
and three in Punjab.
Geographically, the market is divided into cities. However, currently, the
company’s franchises operate in four cities rather than in five because the koori
franchise is temporarily closed. The Karachi franchise is working by the name of
“Continental beverages”. In past it cater only the Karachi market. However,
nowhither become the authorized bottlers under franchise for province Sindh and
Baluchistan. They will start their distribution in Sukkar and Baluchistan areas in
last year.
In summer, season the sales of the soft drinks increases as compare to other
seasons. The duration of the summers in Punjab is longer than in Sindh.
Therefore, in this way the Punjab’s cities are very attractive market than the
Sindh. Because the duration of summers in Punjab is longer and hotter as
compared to Karachi and Hyderabad. That is way the three franchises are in
Punjab.
DEMOGRAPHIC

Demographically the market is segmented based on:

 Age
 Gender
 Family size
 Income

Currently, “Continental beverages” is catering the age group of 13-26 years. It is

focus on school and college going children and young adults. However, some of
the products of Continental beverages are especially for women and children like:

 Pakola Ice Cream Soda

 Pakola lemonade
 Pakola Apple Sidra

Now the Continental Beverages Ltd. introduces new 1.5lit pet bottles. These are
economy size bottles for families. In Pakistan, most of the people prefer economy
size bottles because the average family size is 5-6 people and these pet bottles are
suitable for the families. That is way they introduce 1.5-liter bottles for all of their
brands because of the customer preference.
According to them, their products are for average income people (income
between Rs.5000-8000) and they cater their products to lower income people in
the interior areas of Sindh in order to grab larger market share. Because Pepsi and
Coke are firmly establish in the urban areas and they do not cater the lower
lowers. That is why the Continental Beverages Ltd. captures low-income people in
rural areas.
After 9/11, some new soft drinks enter in the cola market like:
 Amrit cola
 Mecca cola
 Zam Zam cola
In which two are local brands and one is Iran brand. They boycott franchise soft
drinks and forces people to use Islamic and local products. After the 9/11 up until
now, they did not face any problem related to religion. However, the franchise
bottlers always give importance to the norms, beliefs, and attitudes of the target
market.
BEHAVIORAL SEGMENTATION

Considering variables:
 Occasions
 Benefits
 User status
 Attitude toward product

In behavioral segmentation, Continental Beverages grouped the people based on

their responses and usage of the product. They considered that the consumption
of soft drinks does not remain the same throughout the year. In summers (April-
July) it sales increases but in winter it sales decreases. In summers, the people
used it on almost regular basis. But in winter they use it occasionally, or use it
when they go out (on premises). In order to increase the sales in winter season
they influence people by their tagline:
Be Free, Drink RC.
By this tagline, they want to promote RC Cola as a cool and refreshing drink. That
can be used at any time. Different people want different mixes of benefits from
the products they buy. Continental beverages introduce 1.5lit pet bottle because
people want economy size bottle. In this way, they want something new in the
drink like change in flavor. That is why the company will introduce RC Cola with
Cherry flavor and Diet RC Cola in the coming year based on consumer demand.
Currently, the company tries to regain its ex-users. In past their target markets
were the middle and lower classes. They were also catering the interior areas of
Sindh. After re-launching, they have the same future strategies but they want to
increase the market share that is why they decided to cater the upper class in
order to convert the non-users into regular users. Continental Beverages tries to
gain a positive attitude toward RC Cola by giving a good quality product at a lower
price as compare to their competitors and make sure that their product in
available at almost all places in Karachi.
 REASON FOR FAILURE OF RC COLA IN PAKISTAN
Distribution Channel
Main reason for failure of RC Cola was their distribution network. Initially in 1981
company started with their own distribution network and capturing the market
very well but after 1986 company was unable to carry out its own distribution
network, as they were financially unstable so decline in the sales started which
lead to failure in unavailability of product at outlets.

Competition
As a part of publicity, other companies like those that Coke and Pepsi were giving
vesicular to the retailer for storing product, but RC Cola were reluctant to do so as
a result of which retailers were start keeping competitors product.

If we analyze all the reason for failure, we concluded that their product was not
have any problem but reason for failure was financially unstable and presence of
tiger competitors like Coke and Pepsi, as a result of which they left the market for
2 ½ years.
MARKET POSITIONING

Continental beverages Ltd. is working to occupy a very distinctive position in the

mind of customers by giving them superior quality products. They should
emphasis on the careful delivery of their products. They ensure that RC Cola
reaches to customers in the same condition in which it was made. In this way they
attract customers towards the quality maintenance of their product.
Secondly, they want to hold the position of RC Cola in the mind of the customers
as a cool and refreshing drink by using this tagline:
Be free, drink RC

Means that you can drink RC any time to refresh yourself.

ANALYSIS AND SUGGESTION

Currently, Continental Beverages want to position RC Cola as a:

 Cool and refreshing drink

 Best quality soft drinks

By using the tagline:

Be free, drink RC Cola

Their positioning strategies are good, but they are not promoting it in a good
way. They try to promote RC Cola in such a way that it occupy a very distinctive
and clear position in the mind of consumer that RC Cola is a quality drink at a
reasonable price.

REPOSITIONING W.R.T 4P’S

MARKETING MIX

Marketing mix consist of everything that the firm can do to influence the demand
for its products.
Here we will be discussing the 4Ps of RC Cola.
PRODUCT

Products are the goods of the company that they offer to their target market.
Currently, Continental Beverages have four products:

 RC Cola
 Royal Orange
 Royal Lemonade

They will recently introduce:

  Upper 10 (soft drink)
 Kenny (drinking water)
 New varieties in RC Cola
 They will also introduce one American and one British drink in future (but
they didn’t disclose the names of the drinks.)

Now we discuss the variables of product for RC Cola.

VARIETY
RC Cola was introduce in 1985, and re-launched in 2005, in this period they did
not introduce any new flavor and variety of RC Cola.
They are also working to introduce,

 RC Diet
 RC with cherry flavor in the coming year.
QUALITY

The company has the basic purpose to give quality products to the consumers.
According to Mr. Faisal Iqbal, a “Mystery Man” comes from America any time
during the whole year, collects the samples of their product from the market
places, and takes back these samples to America for testing. If there is any flaw in
the quality of product, strict action is taken against them. They also said that
some special supervisors come from the parent company that stay with them for
the whole week, monitor their production process, and take the report back to
America. According to this strategy, they ensure their customers that their quality
is always consistent. He claims that no other company in Pakistan has this
privilege.

DESIGN AND PACKAGING

RC Cola is available in glass bottles (250ml) and in economy size pet bottles
(1.5lit). The design of the 250ml-glass bottle of RC Cola is same as it was in past.
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.

PRODUCT SUGGESTION
As far as RC Cola’s bottle design is concerned, we have some suggestions.

FOR 250ML BOTTLE

If they introduce 250ml bottle of RC Cola in a new and attractive design then it
shows some difference and influences the buyer to purchase. There is a little
difference in the design of 250ml bottle of Pepsi and RC Cola, but the design of
250ml Coke is different from them. In this way, the design of the Coke shows a
difference from Pepsi and RC Cola and if there is no logo present on the bottle, a
buyer of soft drink easily recognizes Coke just because of the bottle design.

Existing Bottle of 250 ml Suggested Bottle of 250 ml

350ml Can in Pakistan
 PRICE
RC Cola is available in two packaging:

 250ml glass bottle

 1.5lit pet bottle

LIST PRICES
A crate of 250ml-bottle of RC Cola contains 2dozen (24) 250ml regular bottles; the
cost of the carat is Rs.315. It means that the cost of each 250ml bottle is Rs.15.
The crate of 1.5lit pet bottle contains six bottles. Each bottle cost Rs.65, means
that the cost of the crate is Rs.330.

DISCOUNTS TO DISTRIBUTORS AND RETAILERS

DISTRIBUTORS
The Continental Beverages gives 6 bottles of 250ml free to distributor on each
crate and gives 1.5lit pet bottle at a cost of Rs.55 instead of Rs.65

RETAILERS
The distributor gives four bottles free of 250ml to the retailer on each crate.
It means that the retailer gets a discount of Rs.60 on each crate. The
company set a price for 250ml bottle is Rs 12, but some retailers sell it on
the price of Rs.12 to Rs.15 to the final consumer. In this way, they get an
additional profit.
In the case on 1.5lit pet bottles, the discount of the retailers based on the
distributor because sometimes they give discounts to retailer or sometimes not.

IN THE CASE OF PEPSI AND COCA-COLA

 Distributor’s profit=6%
 Retailer’s profit=12.5% (Rs.1 on each bottle of 250ml (1x24=Rs.24/crate))

PLACE
Continental Beverages uses 25 direct routes (means their own vans) and 35
indirect routes (different distributors work for them) to distribute their products
in the market. This franchise has two warehouses one in the site area (behind the
manufacturing plant) and another in the Clifton area. Currently, they are working
to expand their distribution network. That is why on April 10, 2011 (Sunday), they
gave an ad in Newspaper JUNG by the heading of “Distributors Are Required”
They can take first mover advantage by introducing the automatic can machine
on different places and roads of major cities in Pakistan.

PROMOTION

PROMOTIONAL SUGGESTIONS

We have some ideas related to the advertisement and promotion.

Selection of the media vehicle will depend largely on the target market. The
company’s target market comprises of youngsters between the age group of 13-
26. Following are the media through which the company will reach the target
market.

 Television
 Cinema
 Magazine
 Newspaper
 Radio
 Outdoor advertisement
TELEVISION
Television has the consistency high viewership among the target market. It
provides maximum coverage as most of the youngsters watch television regularly.

 PTV and PTV World

 Geo
 ARY Digital
 Hum TV
 Ten sports

Among them Hum TV and ARY Digital must be selected because youngsters
mostly view these channels, because these channels provide a lot of
entertainment program for them. PTV World and PTV Network have wide
coverage and are the channels that are viewed by the masses. Geo sports have
emerged as a channel that comes cricket related events of Pakistan and thus
viewers ship mostly consistency teenagers and young adults.

CINEMA
The company should put banners in cinemas like Cine star and DHA other popular
cinemas in Lahore. This will promote RC cola among the lower and middle class.
Also, they should put large bulletin boards in the Lahore area to attract
consumers towards the drink.

MAGAZINES

 Sunday Magazine (Jung group)

 Akbar-e-Jahan
 Young World
Akbar-e-Jahan and Sunday magazine both are the most widely read magazines in
Lahore and other cities. Young World is an English magazine for kids and teens. It
will cater age 13-18.

NEWSPAPER

 Dawn
 Jung
 The News
Jung is the most widely read newspaper in Pakistan with a publication of over
750,000. Dawn and the news also cater those people prefer reading in English.

OUT DOOR ADVERTISINGS

Billboards, Musical concert, Advertisements in popular hangout and sponsor ship
of the music videos are used as outdoor advertising tools.

BILLBOARDS
Billboards are used to support above-the-line activities. Billboards will be selected
where the major portion of the target market frequency view it. As the target,
market is mainly young people and older school going kids. Following areas will be
chosen for billboard activities:

 Iqbal Town Bhekawal Mor, Lahore

 DHA Horse Roundabout
 Near Rahat Bakery
 Entrance of fortress Stadium
 Chaburgi Chock
SPONSORSHIP OF A MUSICAL VIDEO
In today’s world, music is an important part of people’s lives. In particular, the
young generation’s world revolves around music. Keeping this thing in mind RC
Cola must have an association with one of the musical band of Pakistan. In
present JAL BAND is very famous among youngsters. Other upcoming bands such
as EP, MIZRAB, AAROH etc.

MUSICAL CONCERT
Musical concerts held on and off throughout the year. Only those concerts are
arranged which will give an opportunity to have maximum coverage of target
audience.

PROMOTIONAL ACTIVITIES
Promotion will be done at outside popular grocery stores. Free samples of RC
Cola, and handbills will be given out. Promotion might be done outside:
 Metro
 Macro
 Hyper star
 Al-Fatah Super Store
 Raheem Store
 Rahat Bakery
 Green Valley (Mall Of Lahore)

In these promotional ideas, we have tried our best to suggest as many as creative
ideas. Some ideas are to attract the upper class and some ideas are only to attract
the middle and lower classes. Through these ideas, all the classes are easily
attracted toward RC Cola.
Conclusion:
RC Cola failed in Pakistan because of its poor attention given toward the ads
campaign but with the help of this marketing mix, analysis we can say that, the
company may achieved a strong level of customer preference. Although there is
tough fight with its major competitors but company promotional activities play a
vital role to create this position in such situation. By preparing this term project,
we learn about how companies can analysis-marketing mix and we believe that
these analyses will us to know about the Partex Beverages Company and how can
they achieve their objectives.
Executive summary
This report discusses the detail of marketing analysis of RC-Cola (a Partex
Beverage) which is a product of Partex group. This report contains the company
profile including SWOT analysis, Strengths and weaknesses of product and service
analysis, factors influencing consumer is buying pattern, data analysis (a
questionnaire survey with interpretation). In company SWOT analysis, we tried to
identify about strength, opportunities, weakness and threats of this company.
Then we prepared a Marketing Memo explaining the company side and customer
side with interpretation.

Factors influence a consumer buying behavior says about different types of

factors.  Marketing mix analysis is the main part of this analyzing. Because in
marketing mix part we discuss about this company’s product, which they produce,
price range, which types of consumers, can purchase its products. Therefore, this
report is the total over view of RC Cola (a Partex Beverage).  With the help of our
course instructor and the brand manager of Partex Beverage, we are successful to
finish this work.