Failed Products In Pakistan (Why Rc Cola Failed In Pakistan)

1905: Mr. Claude Hatcher, Founder, Established the “Union Bottling Works” in Columbus, Georgia in the basement of the wholesale grocery business of his family.
  1910: The first line of fruit flavored beverages was named Royal Crown and the first cola drink was called Chero-Cola.
  1912: Started to manufacture a line of syrups and flavor concentrates and established a franchised system by licensing sales territories to its bottlers under trademarks of the now Chero-Cola Co.
  1925: Over 300 bottlers were part of the bottling network producing Chero-Cola. 263 of these bottlers also produced the fruit flavored products under the new brand Nehi.
  1928: The Company changes its name to The Nehi Corporation.
  1933: Mr. Claud Hatcher died on December 31^st.
  1934: Chero-Cola is reformulated and the new product is named Royal Crown Cola.
  1940: The Nehi Corporation is listed on the New York Stock Exchange.
  1940: The Company first uses results of blind taste tests in the advertising campaign “Best by Taste Test”.
  1946: The Company began to enhance its advertising by using entertainment celebrities like Bing Crosby, Joan Crawford, and Hedy Lamar.
  1958: Company changes name for the third time to Royal Crown Cola Company.
  2000: Royal Crown Cola Co. is acquired by Cadbury Schweppes.
  2001: Royal Crown Cola International is acquired by Cott Corporation.
  2005: Royal Crown Cola Co. commemorated its 100th Anniversary. 

Pakistan Softdrink Industry

Pakistan has a huge market of soft drinks. The major competitive and ruling brands of the country are Pepsi and Coca-Cola. 75 million cases a year for Pepsi alone. The total beverage market is about 120 million cases of which 65% per cent are Pepsi products. 20 to 22 %are Coca-Cola products and there are so many colas.


SOWT ANALYSIS IN PAKISTAN


Strengths:

 The soft drinks market in Pakistan enjoyed dynamic growth over the review period in both volume and current value terms. Carbonates dominate the market in both the on-trade and off-trade with the lion's share of sales. Carbonates have become part of the culture in Pakistan and multinational companies have maintained their standards over the years to provide consumers with high-quality carbonated drinks. Off-trade sales of carbonates are higher than those of the on-trade but both achieved strong growth over the review period.
Weaknesses:
Liquid concentrates and powder concentrates are both seasonal categories in the market and their sales peak in the summer in Pakistan. Both Rooh Afza and Jam-e-Shirin are traditional sandalwood drinks in Pakistan which are highly regarded by consumers. These drinks can be found in every home in Pakistan, especially in rural areas, throughout the summer and are the mainstay of liquid concentrates.
Opportunities:
The government of Pakistan has reduced excise taxes to encourage soft drinks manufacturers and importers. The government also reduced other applicable taxes to promise more profits not only for soft drinks manufacturers already in the market but also to attract potential soft drinks manufacturers to invest in Pakistan. The government also decided to tax the beverage industry on capacity of production rather than on actual production and those brave move encouraged soft drinks manufacturers to maximize production and reduce prices.
Threats:
 Increasing health and hygiene awareness among Pakistanis has greatly increased sales of fruit juice products. Both the government and the media have started health awareness campaigns to make Pakistanis realize that consumption of fruit juice is as essential as eating food. Fruit juices are doing very well in both urban and rural areas. On the other hand, health and hygiene awareness has also led to increased sales of bottled water in Pakistan. Previously bottled water was targeted only at major cities where consumers are more health-conscious and aware of the difference between bottled water and tap water. Nowadays, health-conscious rural inhabitants also drink bottled water due to health concerns.

Rc Cola In Pakistan

RC cola was a very famous drink in Pakistan. It was widely known all over the Pakistan since the time of its arrival in the sub- continent which was the 70’s having the same popularity like Coca-Cola and Pepsi today. RC Cola was being sued by different organizations internationally so it lowered its investment in the sub-continent and in 90’s, RC cola started to fade away due to some issues and stopped its production in Pakistan. RC Cola is currently not operating in Pakistan and if RC Cola wants to prelaunch in Pakistan, it may face strong competitors like Coca-Cola and Pepsi are ruling the cola market here in Pakistan.

Why Rc Cola Failed In Pakistan

Pepsi Cola and Coca Cola stormed into the market. Advertising was minimal in Pakistan as compared to its competition. RC Cola was being sued by different organizations internationally so it lowered its investment in the sub-continent. RC finally stopped production somewhere in the early 90s. RC Cola failed in Pakistan because of its poor attention given towards the ad campaign. Even in Pakistan people used to drink RC Cola and they really liked it, but it’s all about many years ago in 1970's n 80'smay be because there was no other cola at that time. When other colas came they advertised and they did it so well that people were attracted towards them.

 Reason Why Rc Cola Failed in Pak

Factors influencing consumer’s buying pattern:
Cultural Factor:
The city celebrates a variety of cultural programs and festivals which give RC cola the opportunity to use their promotional activities during those festivals. For example, during the time of summer season the weather is so hot that people get so thirsty and try to have some lemon flavored drink which is then influence people to have RC Lemon and at a cheaper price they purchase RC Cola rather Coca-Cola or Pepsi.
Social Factor:
Sometimes it happens that a group of friends goes for shopping and after a while everyone gets thirsty then they decided to have a drink. Then anyone of the friends can influence his or her choice to other friends. Then the others can be influenced by that person and when they taste it they may become a regular consumer of RC Cola. Because it tastes different to people who has always drink Coca-Cola or Pepsi. Sometimes a family member can influence to have RC Cola. The person who has less income can be biased by the RC Cola.
Personal Factor:
People change their goods and services over their lifetime. Because sometimes people get monotonous to have the same kind of feelings. So, the person who drinks Coca-cola every time may taste RC Cola to change his or her taste. A person’s occupation may affect his or her buying behavior. Lifestyle can affect buying behavior like; a person who is more likely to be different from others may consume RC Cola rather than others.
Psychological Factor: 
Hearing from the others that RC Cola tastes better than any other drink may drive a person to the RC Cola. The advertisement saying that it refresh people and has a freedom of choice can work as stimuli for a person to consume RC Cola and its other flavors.

Buying Decision Process:

Problem Recognition:
Our research shows that a person’s internal stimuli like, thirst pushes him or her to consume RC Cola for cultural factors depending on different festivals. Externally a person can be influenced by the other consumption and TV advertisement.
Information Search:
Most of the time friends and family members become major information sources. Obviously TV advertisement, packaging and past experience helps people to purchase RC Cola.
Evaluation of Alternatives:
As urban areas are located very tactfully by RC Cola then it’s easier to target the general people through hat-bazaar, tea stalls with little grocery. In this way Parted beverage Ltd. are being able to grab the availability. Through the Slogan of the advertisement called “freedom of choice” people understand the taste and flavor.  

Purchase Decision:
Unanticipated situational factor sometimes happens that a buyer of Coca-Cola may consume RC Cola for different reasons like; a salesperson may turn him or her off and drive his or her choice or decision. In other way, attributes of others like evaluation of the product may publish on the newspaper or magazines and can change a consumers mind.

Post purchase Behavior:
After consuming the product RC Cola the customer may become disappoint to purchase it further or may not be. They start following information on those kinds of products to find out the best for him or her.

Rc Cola Plant Location

RC has a factory at SITE industrial Area near Sher Shah Market which covers an area of 5000 Yards.
The Project is located at D-210, Estate Avenue, S. I. T. E Industrial Area, and Karachi.
Land - One Acre Land.
On Prime Location of S.I.T.E on main Estate Avenue.
Front Main Road 176 feet wide Double Roads (Both Ways).
80 feet wide Road, along with entire Boundary wall of 500 feet CBL Building.

Status of Property: Freehold-Self Occupied (CBL)
Property is an Industrial Unit at S.I.T.E Ltd.,
Approved Plan by S.I.T.E Ltd.,
SITE Plan Approved.
Electricity - 168 KW Approved & Installed.
Sui Gas - Industrial Connection Approved & Installed.
Water Line (Two) 2" & 1" Industrial Connection Installed.
8 Telephone Lines.
Huge Sewerage system arranged.
Under Ground Water Tank Capacity 75000 Gallons.
Overhead Water Tank 5000 Gallons (continuous flow from underground tank).

Marketing Mix Strategies

Product
RC Cola is the most popular brand in the international market and is consumed by children and adults alike.
 Consumers enjoy RC in more than 60 countries worldwide.

 Royal Crown Cola International products are sold through a global network of more than 100 franchised bottling plants and distributors.
Offered Products:
RC Cola
 Diet RC Cola
 Cherry RC Cola
 RC Edge Cola
 Diet Rite Cola
 RCQ
 Royal Crown Draft Cola
 Kick
RC’s Cola Ingredients:
 Carbonated Water
 High Fructose Corn Syrup
 Sugar
 Caramel Color
 Citric Acid
 Natural Flavor
 Caffeine.
Quality:
RC Cola has a unique crisp and clean taste and it’s consistent with its flavor no matter where you buy it. It has a refreshingly great taste even if it isn’t cold.
Everything is tested from water samples to ingredients in order to achieve the Quality of our Product.
DEPTH:
The variants that will be offered by RC Cola in terms of size and quantity:
  175 ml Mini Bottle
 250 ml Regular Bottle
 500 ml Bottle
1000 ml Regular Liter Bottle
1500 ml Disposable Bottle
 3000 ml Jumbo Bottle

Price

Following factors RC Cola should keep in mind while determining the pricing strategy.
 Price should be set according to the product demand of public.
 Price should be that which gives the company maximum revenue.
 Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy their product.
 Price must be keeping the view of their target market.
Prices of different bottles:

Quantity	Price in Rupees
Jumbo	80
1.5 Liters	65
1 Liter	37
500ml	30
250ml	16
Tin	25

1.  

PRICING STRATEGIES:
Competition based pricing approach
Promotional Pricing Policy
Market Penetration Pricing Policy
Discounts

Quality Discount:
 1/10 Discount
 2/20 Discount
 3 B – F Discount
PRICING STRATEGIES:
Incentives:
Incentive to Retailers
These incentives are in the shape of:
 Deep Freezers
 Return Tickets
 Free Transportation Services.
Incentive to Dealers
The best dealer of the year is awarded with a brand new Suzuki Pickup. The second best is awarded with Motor Cycle. The third best is awarded with Return Ticket to Middle East.
Special Offers
RC Cola will give special offers to consumers on special occasions like Ramadan and Eid days instead of decreasing the price of the products, some special packs like Pakkora Mix, Chat Massala, or Free Drinks with Liter Bottles are offered

Placement

There are various channels through which RC Cola distributes its output.

DISTRIBUTION CHANNELS:

     We will also use push strategy for our product by using various promotional tactics and through media. Distribution will be divided in zonal basis, which will be 5 in number.

     We will directly approach retailer by providing credit facility and bonus in form of incentives.

     We will also provide trade allowances to our distributors and retailer to further intensify usage of push strategy.

     PRODUCT OUTFLOW:

RC Cola International has given franchise in Karachi. Continental Beverages is the franchised bottler for RC Cola in Karachi Sindh. They have fully automatic German plants for both glass and P.E.T. lines.

MARKET	LOCATION	MARKET	LOCATION
BLESSINGS SUPER STORE	LALKOTI	QT DEFENCE	DEFENCE
BADSHAH	NURSERY	SUNNY DEFENCE	DEFENCE
COLLECT	NURSERY	JABBAR DEFENCE	DEFENCE
PARADISE	SCHON CIRCLE	FAMOUS DEFENCE	DEFENCE
AGHA’S	CLIFTON	SOHAILA	DEFENCE
NOVELTY	CLIFTON	AL-GHANI STORE	BLOCK A.
YOUSAF	BAHADURABAD	QUALITY STORE	P.E.C.H.S.

SPECIAL POINTS:

Other than these some special points are also being looked after by direct sales vehicles such hotels restaurants, public parks, big and reputed super stores etc. At Avari, Pearl continental, village, Seas magnificence etc. RC Cola directly distributes the products. 

Promotional Strategies

Following are the strategies:

Comparative Parity Method: RC Cola ads are telecasted with the competition in Coca Cola and Pepsi which is its direct competitor.

Seasonal advertisement: Frequency of the RC Cola ads will vary from time to time. When the season is on RC Cola will do heavy advertisement especially in Ramadan days or Eid occasions but this advertisement not remain consist.

BTL

ATL

SAMPLING PROGRAM: A successful sampling program can be their most effective means of increasing consumer awareness, trial, and actual product purchases in Pakistan.

             

Merchandising:

    Royal Crown Cola International trains its bottlers in merchandising functions that will ensure visually appealing beverage shelves, coolers, and vending machines.

    They work in assisting hand in hand to develop pricing, product rotation, back stock control, display building, and proper P.O.S. procedures.

    With proper shelf management, the customer will soon recognize the quality and value inherent in the Royal Crown Cola International brands in Pakistan.

              Sales Support:

     Royal Crown Cola International has developed intensive sales training programs. They provide complete, in-depth training materials for both beginner and experienced sales people.

     To ensure their staff conveys the image of marketing a global brand, Royal Crown Cola International will also provide assistance in developing a dress code and uniforms for their staff members.

     They’ll help them to extend that image to the trucks, vans, and automobiles they drive. These "rolling billboards" are a roving reminder to the consumer of the Royal Crown Cola International brand identity.

     Through their Fleet Graphics program, Royal Crown Cola International will help them develop proper fleet identification logos which enhance the brand value in their marketplace.

Media:

They will do this by working with local advertising agencies in Pakistan to develop ad campaigns and media strategies (television, radio, print publications, billboards, etc.) appropriate to their bottler's locations and budgets.

Marketing programs

    RC cola will do a joint venture with all the cinemas in Karachi, that only RC Cola will be the soft drink which will be available.

    RC Cola will do a contract with Telenor that free airtime will be offered to the customer after typing a code which will be on the back of RC cola’s cap.

    They will conduct BTL (below the line activities)

ADVERTISING STRATEGY:

    Newspaper (DAWN, JANG)

    Radio FM 96, FM 98, FM 107

    T.V. Commercials (ARY digital, MTV, PLAY, WIKKID, CABLE  CHANNELS)

    Bill Boards

ACTION programs:

     On June 2^nd the Product RC Cola will be launched at the venue Regent Plaza.

     On June 6^th, 13^th, 20^th, July 4^th, 11^th, 18th advertisements will be published in leading newspapers.

     After six months of Launch, the company will commence a downward stretch, and will launch a RC Diet Cola which will be targeted to diabetes people.

     On alternate days advertisements will be launched in three different channels (Geo, ARY One World and PTV) on the basis of two fixed spots, i.e. 07:30pm and 09:30.

ACTION programs

     Advertisements will place on Magazines like Herald, Mag, and Jung once every month.

     One month end Distributor will visit each retailer and give the compensation on sales promotion schemes, company has chosen.

     The company will participate in meals, trade shows, and exhibitions of all kind to increase the awareness of the new launch.

Particulars	Cost
Television Cost	Rs. 8,000,000
Newspaper	Rs. 3,050,000
Magazines	Rs.2,000,000
Outdoor	Rs.5,700,000
Contingency	Rs.1,000,000
Total	Rs.19,750,000

Contact :

D-210, Estate Avenue, SITE, Karachi

Phone   (9221) 2577000, 2577001, 2564380

Fax (9221) 2577002

Emails (General enquiry) info@rccola.com.pk

 rccolakarachi@yahoo.com
 rccolapakistan@yahoo.com 

Conclusion :

Well, according to our knowledge about marketing, we conclude that RC Cola failed in Pakistan because of its poor attention given towards the ad campaign. Even in Pakistan people used to drink RC Cola and they really liked it, but it’s all about many years ago in 1970's n 80's may be because there was no other cola at that time. When other colas came they advertised and they did it so well that people were attracted towards them. It’s also about how u presents it, the looks of the product. 

RC Cola's bottle is not appealing and the regular one specially looks so thin, it seems as if it has less drink inside, that’s why the drink has reached its decline and rejection now in Pakistan. It is possible for them to rise again through the proper attention towards the advertising and the outlook of the product. It should be appealing and beautiful, it should be trendy. That’s what it needs and right advertising at the right time can do a lot, It needs to know the important about how can we market a product in a way that it can give a fashionable and trendy impact on the people.