REPORT ON RC COLA

IQRA UNIVERSITY
Assignment on

SUBMITTED TO

Mr. Ishaq Shaikh

(Course In charge Principal of Marketing)

Prepared by
S.MUJTABA.A.AZAM SAQIB MALIK FAIZAN SALEEM WAQAS ARSHAD HIRA ARSHAD

IQRA UNIVERSITY

REPORT ON RC COLA

ACNOWLEDGEMENTS

We would like to express our whole hearted thanks to Almighty Allah by whose grace & blessings we have the knowledge, insight and opportunity to complete this report. We are great to our teacher Mr. Ishaq Shaikh for giving us a chance to make this report. We have learned a lot through our experience of visiting Continental Beverages Ltd. and gathering information for our report. Not only this, we have become more familiar with the concepts of marketing and how these concepts, which we learned in the marketing course, are being applied in the practical world. We are also very thankful to Mr. Fasyyal Iqbal Khan (Executive Director of Continental Beverages Ltd.) for his time and guidance without which our report would not have been completed. We would also like to thank all the people who guided us in making this report. We are sure that this experience and activity will prove beneficial for us in the future.

IQRA UNIVERSITY

REPORT ON RC COLA

OBJECTIVE

We were given the task of revitalizing a product which has not been successful to occupy its desired place in the market. We selected RC Cola to revitalize. Actually, it is not a failure product. It was failed to occupy a desired place in the market just because of the companys financial problems. Our aim is to help Continental Beverages by giving our opinion about their marketing strategies. We have disused the segmentation, targeting and Marketing Mix for RC Cola and also gave suggestion along with it. We want to introduce RC Cola with a new packaging and image in the market. We try our best to give some promotional ideas and hope that prove to be beneficial for the company.

IQRA UNIVERSITY

REPORT ON RC COLA

HISTORY OF ROYA L CROWN COLA COMPANY (USA)

(Parent company of all franchises of RC Cola in Pakistan)

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. RC originated in Columbus, Ga., when a young pharmacist named Claud 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 "Chero-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 Chero-Cola Co. Sixteen years later, he renamed the company Nehi Corporation, after the successful line of fruity beverages he had developed. After Hatcher's death in 1933, Vice President H.R. Mott took control of the company and quickly streamlined operations to make the company debt-free within the year. Part of Mott's plan was the reformulation of the classic Chero-Cola into a more refreshing beverage. Chemist Rufas Kamm was given the responsibility of coming up with the new flavor, which took six months to perfect. The new cola was released to the public with the name of Hatcher's original line of beverages: Royal Crown. Royal Crown Cola was an instant sensation. RC Cola, as it is now called, was such a success that the company was eventually renamed Royal Crown Cola Co. By 1940, RC products were available in 47 of the 48 states. 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 distribute 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.

IQRA UNIVERSITY

REPORT ON RC COLA

In 1998, RC was relaunched with new packaging, a dynamic logo, and a new tagline: "Be Free, Drink RC." RC also introduced RC Edge, the first maximum-power cola containing a synergistic blend of Indian ginseng, taurine and caffeine. What's 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."

IQRA UNIVERSITY

REPORT ON RC COLA

HISTORY OF CONTINENTAL BEVERAGES LTD

Royal Crown Cola Company has five franchises in Pakistan. 1. 2. 3. 4. 5. Karachi Kotri (Hyderabad) Multan Lahore and Islamabad

(Kotri franchise is temporarily closed these days.) The Karachi franchise of RC Cola is working by the name of CONTINENTAL BEVERAGES LTD. Fayysal Iqbal Khan is the Executive Director of Karachi franchise. His family has been in this business of beverages for last 40 years. Initially Mr. Iqbals father used to do the business, but he transferred his business to his sons due to old age. One of his brothers is running two franchises of Pepsi, one in Karachi and one in Quetta. Faisal Iqbals younger brother came back after completing his studies from abroad. Now his younger brother also supported him in running Continental beverages. Continental Beverages Ltd. was formed in 1981. At that time they were producing two products: Dr. Pepper Silute Orange In 1985, they introduced RC Cola in Karachi. At that time it was a very famous drink and holds a good share in cola market. But after 1986, the company faced some financial problems and unable to promote RC Cola. The period between 1986-1996 was very difficult for the company to run the business. At that time some political parties in Karachi were very strong, and their political activities affected the business of beverage industry. The company was not financially strong enough to face these problems. They sold some of their assets in order to pay their loans to bank and run their business. They also faced the problem of SSRB (Single Served Returnable Bottles). They suffered this unethical problem just because of Pepsi. They used to supply their products to the customers in single served returnable bottles and used to collect their bottles after usage (or when they are empty). But what happened is that Pepsi unethically started collecting

IQRA UNIVERSITY

REPORT ON RC COLA

their empty bottles from the market and stocking them in their godowns or warehouses. Due to the shortage of the empty bottles, they had to buy new bottles from Baluchistan Glass Bottles manufacturers, and had to pay a large amount. They are already financially unstable and this unethical action also affected their production capacity. Continental beverages stopped their production for 2 years, between 2002-2004. In this period some people in the interior areas of Sindh started hand re-filling of RC Cola and were selling these fake bottles in the lower market, because the empty bottles were easily available. When the company stopped their production in the period between 2002-2004, it did not announce officially that they stopped their production because they want to relaunch their product. Due to this some people were misunderstanding that the drink was available in the market but cater to very lower class. Finally, they re-launched RC Cola on 15th Feb05 and also introduced some new products along with RC Cola.

IQRA UNIVERSITY

REPORT ON RC COLA

REASONS FOR FAILURE

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. As a part of publicity other companies like 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 years.

IQRA UNIVERSITY

REPORT ON RC COLA

SWOT ANALYSIS
The analysis of the internal and external environment is integral for determining the companys strategic standpoint and potential for success regarding the product.

STRENGTH
Continental beverages served the Karachi market since 1985.At that time RC Cola hold a very handsome share in the market and people used to drink it. After 1986 the company was unable to serve their customers because of the distribution network as well as they were also unable to get hold of other customers because of lack of advertisement. But still people remember and know that there existed one Cola drink by the name of RC Cola. Their prices are relatively lower than their competitors. It is strength for the company. The Karachi franchise is a small plant (area is 0.34 acres). It is very easy to over head or look after the plant. It reduces the levels of managers in the hierarchy. A single manager looks after more than one department like, production, sales etc.

WEAKNESS
Just because of the financial problems and unavailability of loans from banks, the company was unable to increase their market share and advertise or promote their products as compare to their competitors in the past. Because of these problems the Company was closed for 2 years. The current financial instability is a weakness for the company. Because of the financial problems in the past RC Cola was failed to hold a strong market share. As in the case of Pepsi, it has 14 franchises and Coca-Cola has 13 franchises all over Pakistan. If any international beverage company has more than 10 franchises in Pakistan

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REPORT ON RC COLA

than the Parent company of that franchise give funds and provide financial assistance for advertisements and promotions. That is why Pepsi and Coca-Cola are lucky because they contribute just 25% for advertisement and the remaining 75% are contributed by their parent companies. RC Cola has only 5 franchises in Pakistan. That is why their parent company (ROYAL CROWN COLA COMPANY) does not contribute in their promotional activities.

OPPORTUNITY
As you know that RC Cola re-launched on Feb 15th 05. This is the best time for any beverage company to launch a soft drink because the period between April-July is the most suitable period because the sales of soft drinks are at peek in Karachi. That is why continental beverages re-launched RC Cola in this period to attract more customers by offering their soft drinks at a lower price as compare to their competitors. The summer season is an opportunity for RC Cola to attract more customers.

THREAT
In the beverages industry, there are already very strong competitors like Pepsi and CocaCola are present. They hold a very strong market share. It is very difficult for RC Cola or any other beverage company to stand and hold a smart market share in this industry. The strong market leaders are a threat for RC Cola.

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REPORT ON RC COLA

CURRENT MARKETING SITUATION

Introduction to the Soft Drink Market
Like other countries, soft drink industry in Pakistan is also facing very tough competition, beside the fact that numbers of companies are very few but competition among them is very sturdy. 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. One of the main reasons for this heavy competition is presence to two tiger competitor i.e. Pepsi and Coca-Cola, another reason for failure of new entrants is unavailability of SSRB (Single serve returnable bottle) which is the backbone of industry. Soft drinks are divided into carbonated and non-carbonated drinks. Soft drinks are available in bottles, cans, and large Pet bottles. The Soft drink market can also be segmented in accordance with the point of purchase as: On Premise: The consumption of soft drink takes place on premise, i.e. Restaurants, Railway Stations, Airports, Cinemas, Schools, Colleges etc 75% of total industry sales is achieved from this segment. At Home: The remaining soft drink consumption is at home which include 25% of total industry sales. The Cola and non- Cola segments are as follows: Cola: This accounts for approximately 70% of the total soft drink market in Pakistan. Non- Cola: This is further divided into: Orange: This segment has an approximately a 7% market share of the total market. (Fanta, Miranda etc) Clear Lime: This comprises approximately 20% of the soft drink market. (7UP, Bubble Up, Sprite, Teem) Mango: This comprises approximately 3% of the market share. (Slice)

IQRA UNIVERSITY

REPORT ON RC COLA

BCG MATRIX

RC Cola was introduced in the market in 1985. At that time there was a very high growth in the market because two market leaders Pepsi and Coke were present. Initially RC Cola hold a small share in the market. This fact shows that it was a question mark at that time. In order to became a star and gain a good market share it required a lot of investment. But because of the financial instability and lack of investment at that stage, when there was a high growth in the market it became a dog and gone away from the market. IQRA UNIVERSITY

REPORT ON RC COLA

RC Cola re-launched on Feb'05 the situation in the market is same as in the past and again RC Coal re-introduced as a question mark.

SUGGESTIONS
In order to gain 10-15% share in the cola market in coming years, it requires a lot of cash infusion. If it would not be happen it will be very difficult for RC Cola to sustain in the market. Still it will be a very big achievement for RC Cola if it will become a star in the presence of two market leaders. Because RC has the potential to become a star if it became financially stable. It is very very difficult for any soft drink, to become a cow in this competitive environment.

CUSTOMER PREFERENCES
In customer preferences, we will analyze some of the questions of our survey research. Because this analysis will help us to understand the customer preferences. What content would you prefer in your drink?
CO NTENTS
31% 38% Fuz z in es s Conc entration Sw eetnes s 31%

According to the data collected by our survey, it was found that 38% people prefer fuzziness, 31% concentration and 31% people prefer sweetness in their drinks. The analysis shows that majority of the people prefer fuzziness in their drinks. The percent age of the sweetness and concentration is same.

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REPORT ON RC COLA

Our next question, which of the bottle do you want in 250ml? (Options are glass bottle, can, disposable bottles, and plastic bottles.)
BOT T L ES Glas s bottles Can 34% 20% Dis pos ible bottles Plas tic bottles

33%

13%

According to this graph 34% of them prefer cans, 33% of the people prefer plastic bottles, 20% of them prefer disposable bottles and 13% prefer glass bottles.

This analysis shows that either cans or plastic bottles should replace the glass bottles. Next question is what price range would you prefer? (For 250ml). And the answers we received for this question were as follow:

PRICE
7% 20% 6-- 8 8-- 10 10- -12 73%

According to this graph, 73% of the people prefer price between Rs.8-10, 20% of them prefer price between Rs.6-8, and 7% of them prefer between Rs.10-12.

IQRA UNIVERSITY

REPORT ON RC COLA

This analysis shows that approximately 73% people are satisfied with the existing price range of the 250ml cola drinks in the market.

SUGGESTIONS According to the results of customer preferences: People want fuzziness in their drinks, If Continental Beverages increase the level of fuzziness in RC Cola, the customers want to drink it. Because when we asked different people about the improvement that they want in RC Cola, most of the people give suggestion that they must increase fuzziness in RC Cola if they want to satisfy the customers. As far as the price is concerned the company gives RC Cola to the distributors and retailers at a price of Rs.8/ 250ml bottle. But some retailers sell it on the price of Rs.9 or 10 to the customers. If the company controls this change in the prices from retailer to customer, then the customer will definitely prefer a quality drink at a lower price as compare to their competitors. The company is working to introduce its products in 250ml or 330ml pet bottles in the coming years. If they introduce RC Cola in cans then it will be attractive offer for the customers.

IQRA UNIVERSITY

REPORT ON RC COLA

CUSTOMER SATISFACTION
We had a question in our questionnaire related to customer satisfaction, in order to find out their satisfaction for RC Cola before re-launch. The question was:

Tell me how much you liked the RC cola by pointing to the face that best shows how much you liked it.

*0% 0% (dissatisfied) 40% (somewhat satisfied) 80% (satisfied) 100% (fully satisfied)

*40%

*80%

*100%

IQRA UNIVERSITY

REPORT ON RC COLA

S A T IS F A C T IO N 0% (dis s atif ied)

7% 40% 40% (s omew hat s atis f ied) 80% (s atis f ied) 100% (f ully s atis f ied)

13%

40%

According to this graph, 40% of them were somewhat satisfied; 40% of them were dissatisfied, 13% of them were satisfied and 7% of them were fully satisfied. The satisfaction of the customers is based on their preferences. If the manufacturers of RC Cola provide them what they want then customers are automatically satisfied from RC Cola.

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. TARGETING 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. But currently, the companys franchises operate in four cities rather than in five because the kotri franchise is temporarily closed. The Karachi franchise is working by the name of Continental beverages. In past it cater only the Karachi market. But now it has become the authorized bottlers under franchise for province Sindh and Baluchistan. They will start their distribution in Sukkar and Baluchistan areas in between September-October this 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. So in this way the Punjabs cities are very attractive market than the Sindh. Because the duration of summers in IQRA UNIVERSITY

REPORT ON RC COLA

Punjab is longer and hotter than in Karachi and Hyderabad. Thats way the three franchises are in Punjab. ANALYSIS AND SUGGESTION As we know that the Continental Beverages has became the franchise bottlers for province of Baluchistan and will also start their distribution in Sukkur. It is a great achievement for company, because there is no franchise of RC Cola in Baluchistan. And we think that it is the only franchise of RC Cola in Pakistan that has became the franchise bottlers for two provinces. This helps them to increase the market share of RC Cola and generate cash. As they are catering the Karachi city and will also cater the Sukkar city of Sindh in the coming year, they should try their best to capture as many as cities of Sindh as possible, like: Hyderabad Nawab Shah Larkana etc. Where the people are still using unbranded soft drinks and fake soft drinks of Pepsi and Coke. This is the best market to cater and create awareness about RC Cola. The climatic conditions of these cities are also very attractive for the beverages industry.

DEMOGRAPHIC
Demographically the market is segmented on the basis of: Age Gender Family size Income

TARGET Currently, Continental beverages is catering the age group of 13-26 years. Its main focus on school and college going children and young adults. But some of the products of Continental beverages are especially for women and children like: PAKISTA (a green drink like Pakola) ROYAL LEMONADE and ROYAL ORANGE IQRA UNIVERSITY

REPORT ON RC COLA

Specially, Pakista which is very famous among women. 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. Thats way they introduce 1.5liter 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 also 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. Thats 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 Irani brand. They boycott franchise soft drinks and forces people to use Islamic and local products. After the 9/11 uptil now they did not face any problem related to religion. But the franchise bottlers always give importance to the norms, beliefs, and attitudes of the target market.

ANALYSIS AND SUGGESTION

Continental Beverages targeted the age group between 13-26. They must increase their targeted age group, because soft drinks are the products that is used by all the age groups from 6-60+ in Pakistan. Like in case of Pepsi and Coca-Cola they use mass marketing for Pepsi and Coke and cater to all age groups, while in the case of Marinda, Dew and Fanta they use segmented marketing and cater to a particular age group. Continental Beverages tries to cater RC Cola to all the age groups means to use mass marketing. (in this way they increase their market share)

PSYCHOGRAPHIC
In psychographic segmentation, Continental Beverages consider only one factor, which is social class.

TARGET

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REPORT ON RC COLA

Their target social classes are middle class and lower class. In past they were catering to these classes. But they face some problems in catering to these social classes. In the view of Executive Director of Continental beverages, In Pakistan the rich has became richer and poor has became poorer and the middle class is almost ended or converted into lower class in Pakistan. It is very difficult to stick to the same social classes and caters them. That is why they make changes in their strategies and decided that they continue to cater the middle and lower class and also try to cater the upper class. In order to attract upper class they gave free samples to people at Park towers (Clifton) on 18th, 19th and 23rd of this march. They also introduced UTC (under the crown) scheme between April till March this year, in which they gave prizes to children. The company will recently introduce DIET RC COLA in order to attract health conscious people. They will also launch pure clear drinking water by the name of KENNY. According to their view it will be a premium clear drinking water but not mineral water. Because in mineral water sodium is present in a reasonable high quantity which is dangerous for the people in Pakistan because in Pakistan the people are not facing the problem of sweating like in Saudia and Kuwait, where the sweating rate is much higher than in Pakistan. That is why their body requires minerals. But if these minerals are given to the people in Pakistan, it causes stomach problems. They decided to create awareness among people about the Drinking water and also try to grab the attention of educated people.

ANALYSIS AND SUGGESTION

It is a good step that they decided to cater the upper class also because in this why they increase the market share of RC Cola in the cola market. Continental Beverages must promote a brand personality for RC Cola because most of the soft drinks in the market have the brand personality that influences the consumer toward the drink. Like in the case of Dew, it shows an adventurous, daring and enthusiastic personality. Thats why most of the youngsters want to drink it. In the case of 7UP a cartoonic personality is associated with it. It is a stylish personality that tries to do something new and having a tag line STYLE ZARA HAT KAY. This shows that the brand personality also influence the buyer toward the drink.

BEHAVIOURAL SEGMENTATION Considering variables:

Occasions Benefits User status Attitude toward product

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REPORT ON RC COLA

TARGET
In behavioral segmentation Continental Beverages grouped the people on the basis of their responses and usage of the product. They considered that the consumption of soft drinks does not remain the same through out 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 use at anytime. 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 some thing 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 on the basis of 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 relaunching, they have the same future strategies but they want to increase the market share thats 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.

MARKET POSITIONING
Continental beverages Ltd. is working to occupy a very distinctive position in the mind of customers by giving them superior quality products. The 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.

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REPORT ON RC COLA

ANALYSIS AND SUGGESTION

Currently, Continental Beverages want to position RC Cola as a: Cool and refreshing drink and 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 why 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.

MARKETING MIX
Marketing mix consist of every thing that the firm can do to influence the demand for its products. Here we will be discussing the 4 Ps 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 Pakista

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 didnt disclose the names of the drinks.)

Now we discuss the variables of product for RC Cola.

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REPORT ON 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. Fayysal Iqbal, a mystery man comes from America any time during the whole year and 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 and 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 also 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 ANALYSIS AND SUGGESTION

As far as RC Colas 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 also 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.

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REPORT ON RC COLA

EXISTING BOTTLE DESIGN

SUGGESTED BOTTLE DESIGN

FOR 1.5LIT PET BOTTLES The existing pet bottle design is little bit same as Pepsis pet bottle. Again the design of 1.5lit pet bottle of Coke is different from Pepsi and RC Cola.

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REPORT ON RC COLA

SUGGESTED DESIGN FOR 1.5LIT PET BOTTLE FOR RC DIET AND RC CHERRY (1.5Lit)

IQRA UNIVERSITY

REPORT ON RC COLA

Introduce RC Cherry in the same design

FOR 250 ML OR 330 ML PET BOTTLES

Also introduce RC Cola in cans and disposable bottles IQRA UNIVERSITY

REPORT ON RC COLA

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.192. It means that the cost of each 250ml bottle is Rs.8. The crate of 1.5lit pet bottle contains 6 bottles. Each bottle cost Rs.40, means that the cost of the crate is Rs.240.

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.38 instead of Rs.40.

RETAILERS
The distributor gives 4 bottles free of 250ml to the retailer on each crate. It means that the retailer gets a discount of Rs.32 on each crate. The company set a price for 250ml bottle is Rs.8, but some retailers sell it on the price of Rs.8 to Rs.10 to the final consumer. In this way they get an additional profit.

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REPORT ON RC COLA

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.

ANALYSIS AND SUGGESTION

Continental Beverages gives 6 bottles free to distributor and distributors give 4 bottles free to the retailer. Ultimately, the distributor makes a profit of Rs. 16 (Rs.8x2) on each crate of 250ml and retailer makes a profit of Rs.32 (Rs.8x4) on each crate of 250ml. Distributors profit=8% Retailers profit=16% IN THE CASE OF PEPSI AND COCA-COLA Distributors profit=6% Retailers profit=12.5% (Rs.1 on each bottle of 250ml (1x24=Rs.24/crate)) In the case of 1.5Lit pet bottles the distributor makes a profit of Rs.12 (Rs.2x6) on each Crate of 1.5Lit pet bottles and the retailers discount is based on distributor. These discounts motivate the distributors and retailers to sell RC Cola. They must take serious steps to control the change in prices of 250ml bottle of RC Cola.

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. Thats why on April 10, 2005 (Sunday), they gave an ad in Newspaper JUNG by the heading of Distributors Are Required

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REPORT ON RC COLA

ANALYSIS

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REPORT ON RC COLA

They are working to improve and expand their distribution network in more than 40 areas of Karachi by hiring more distributors.

PROMOTION
Currently, Continental Beverages give more importance to the availability of the product than to advertise it. According to the view of Mr. Fayysal Iqbal: If your distribution is strong/good and your product is easily available in the market. After the availability of the product in the market then you advertise your product, in this way you satisfied your customer in a good way. But if you first advertise your product on a large scale but your distribution is not good enough, means that your product is not easily available in the nearer stores or in the market. Example if the customers go to the nearer retailers shop and asked about the product which he/she saw in the TV or hear on Radio but if his/her desired product is not available in the market then it definitely dissatisfied your customer. That is why they are currently not advertising their product. But they are doing some promotional activities like on March 18th, 19th and 23rd they gave free samples of soft drinks to people on Park Towers and distributed free gifts among children. They are working to organize a function at PAF Museum on 1st May 2005 to promote RC Cola.

ANALYSIS AND SUGGESTION

They are working to expand their distribution network after that they advertise RC cola. This is because in their view, they say that when the customer know about the product through advertising and he doesnt find it on stores, he doesnt get good impression of the company.

PROMOTIONAL SUGGESTIONS
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REPORT ON RC COLA

We have some ideas related to the advertisement and promotion. Selection of the media vehicle will depend largely on the target market. The companys 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 Promotional activities

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 Indus Ten sports

Among them Indus Music 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. Ten sports has 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 Nishat , Capri and other popular cinemas in Saddar. This will promote RC cola among the lower and middle class. Also, they should put large bulletin boards in the Saddar area to attract consumers towards the drink.

MAGAZINES

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Sunday Magazine (Jung group) Akhbar-e-Jahan Young World Akbar-e-Jahan and Sunday magazine both are the most widely read magazines in Karachi, Young World is an English magazine for kids and teens. It will cater age 13-18.

RADIO
Radio advertisement can be used to enhance the message and communication.

FM 100
(Transmission schedule) 5:00 am 7:00 am 10:00 am 12:00 pm 3:00 pm 6:00 pm 10:00 pm 12:00 am 7:00 am 10:00 am 12:00 pm 3:00 pm 6:00 pm 10:00 pm 12:00 am 5:00 am Holy Quran Wake Up show Morning drive time show Lunch time special Competition time Drive show Rock time (English music) Ghazal time

FM 100: In this they can advertise, during 10:00 pm to 11:00 pm, when English songs are on air because this is the time when their target audience especially young teenagers tune into the channel. FM 101: In this they can advertise during 11:00 pm to 12:00 am, when English programs are aired. This is also a convenient time for the target audience.

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.

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OUT DOOR ADVERTISINGS

Billboards, Musical concert, Advertisements in popular hangout and sponsor ship of the music videos are used as out door advertising tools. METRO BUS Metro bus passes by a large number of people every day. A lot of students and jobholders use the service of these buses frequently. Thus both frequency and reach is quite high. 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: Schon Circle (Clifton) Allah Walla round about (PECHS) Park Towers round about (Clifton) Hasan Square round about (Gulshan) Crecent Academy round about (Gulshan) Korangi crossing round about

Advertisement through pole sign will be done in the following areas: Sea view Delton road Zam zama road National stadium road Nipa round about Baharabad area Liquat-a-Bad BRIDGE

ADVERTISEMENT IN POPULAR HANGOUT RC Cola can also be advertising at popular hangouts of the youth of Karachi. IQRA UNIVERSITY

REPORT ON RC COLA

Area 51 3.0 Zubaida's)

(a popular bowling area situated in sea view adjecent to carlton Hotel) (a virtual reality gaming zone situated in the area of Do Talwar, above

SPONSORSHIP OF A MUSICAL VIDEO In todays world, music is an important part of peoples lives. And in particular, the young generations 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 up coming bands such as EP, MIZRAB, AAROH etc.

MUSICAL CONCERT Musical concerts held on and off through out 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: Aghas supermarket Imtiaz supermarket Naheed store Time medico Murad medico Dolman mall And other local outlets

Aghas supermarket has been selected to cater the target market of Clifton and defense area. Dolman mall, time and Murad medicos will help in reaching the target market that resides in the areas of Gulshan-e-Iqbal, PECHS, Bahadurabad etc.

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REPORT ON RC COLA

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.

RECOMMENDATION:
After completing the report, following things can be recommended: Continental Beverages should try to do mass marketing. They should try to cater all the major cities of Sindh They should try to introduce a brand personality of RC cola. They should introduce schemes on different occasion. They should try to keep a control of price when product moves from retailers to customer. They should change the packaging of RC cola.

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QUESTIONAIRE
Please mark the circles and give rates (where written) that best reflect your response to each question. 1. Which of the following soft drink have you used? o Pepsi o Coca Cola o Double Cola o Amrit Cola o Mecca Cola 2. How often do you drink a soft drink? o Once in a day o Twice a day o 3-5 times a day o more than 5 times a day 3. Overall, how satisfied are you with your soft drink? (circle the %age) 100% 90 80 70 60 50 40 30 20 10 0% COMPLETELY SATISFIED NOT AT ALL SATISFIED 4. Please describe the reason(s) for your satisfaction or dissatisfaction?

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____________________________________________________________________ ____________________________________________________________________ ___________________________. 5. Which factors influence you while buying a soft drink? (rate according to your choice)

Packaging Price Easy availability Taste Advertisement

6. Where do you drink soft drink? o At home o At office o Anywhere

b. When do you prefer to take soft drinks? o At lunch time o With dinner o Party/occasionally/ with friends o Anytime 7. Which of the bottle do you want in 250 ml? o Glass bottle o Can o Disposable bottle o Plastic bottle. 8. Does price matter in your consumption? o Very likely o Very unlikely o Somewhat likely

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o Somewhat unlikely b. What price range would your prefer? (For 250 ml.) o 6-8 o 8-10 o 10-12 9. What contents would you prefer in your soft drink? (give rates)

Fuzziness Concentration Sweetness

10. Are you familiar with RC cola? o Never heard of it o I am aware but never used it o Used it sometimes o Used it on regular basis

11. How did you first hear about RC Cola? o TV o Print media o Not sure o Never heard of it. 12. When did you use RC Cola last time? o 2 yr. back o 3 yr. back o More than 5 yr. back o Dont exactly remember 13. How often did you buy it? o Once in a day

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o Twice in a day o Once in a week o 2-5 times in a week o Once in a month o Dont exactly remember 14. Tell me how much you liked the RC cola by pointing to the face that best shows how much you liked it. 1 0% 40% 80% 100%

15. What are some aspects of RC Cola that can be improved? _________________________________________________________________ _________________________________________________________________ ___________________________. Age group: *12-16yr, *16-20yr, *20-25yr, *25-30yr, *others__________.

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IQRA UNIVERSITY

REPORT ON RC COLA

IQRA UNIVERSITY

REPORT ON RC COLA

IQRA UNIVERSITY