ZamZam Refreshment is introducing its beverage products in Pakistan and has developed a marketing plan. It aims to target young people, families, and businesses by segmenting the market into urban and rural areas. ZamZam will initially focus on large cities and differentiate itself through the unique taste of its cola and high quality products. The marketing objectives are to continually increase sales, fully penetrate the market, decrease customer acquisition costs, and expand the distribution network.
ZamZam Refreshment is introducing its beverage products in Pakistan and has developed a marketing plan. It aims to target young people, families, and businesses by segmenting the market into urban and rural areas. ZamZam will initially focus on large cities and differentiate itself through the unique taste of its cola and high quality products. The marketing objectives are to continually increase sales, fully penetrate the market, decrease customer acquisition costs, and expand the distribution network.
ZamZam Refreshment is introducing its beverage products in Pakistan and has developed a marketing plan. It aims to target young people, families, and businesses by segmenting the market into urban and rural areas. ZamZam will initially focus on large cities and differentiate itself through the unique taste of its cola and high quality products. The marketing objectives are to continually increase sales, fully penetrate the market, decrease customer acquisition costs, and expand the distribution network.
ZamZam Refreshment is introducing its beverage products in Pakistan and has developed a marketing plan. It aims to target young people, families, and businesses by segmenting the market into urban and rural areas. ZamZam will initially focus on large cities and differentiate itself through the unique taste of its cola and high quality products. The marketing objectives are to continually increase sales, fully penetrate the market, decrease customer acquisition costs, and expand the distribution network.
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1. Marketing Plan To Introduce ZamZam Refreshment Beverages in Pakistan
2. Developed By Name of Student: Mohammad Asif Khan Student ID: MB-2-05-51271 Program: MBA Course Name: Marketing Management Course ID: 70394 3. Company Profile oZamZam Refreshment (Emirates), head quartered in Al- Ain United Arab Emirates (UAE) was established in 2002. oIt was founded as a specialized company in manufacturing soft drinks (cola, lemon, orange and diet cola) in cooperation with ZamZam- Jordan which worked on getting the necessary permission in 1988 to bottle and manufacture mineral waters for distribution of all of Jordan an neighboring countries. 4. Company Profile oMeanwhile, ZamZam-Jordan got is activities expanded to include other products mentioned under group 32 like, juice and other soft drinks. o The company started its products distribution of soft drinks to all of UAE and other countries starting with UAE, KSA, Iraq, Syria, Oman, India, as well as African countries like Mali, Senegal, South Africa and Zambia and many other countries. oIn addition to that, we are now in the advanced stages to manufacture our products in these countries in the near future. 5. Situational Analysis oZamZam Refreshment is struggling to enter into a market where many other strong brands are already serving to the customers in the same products category. oWe affirm that our product quality and taste is strong enough to compete the existing cola products which are globally known. 6. Target Markets Our product is equally acceptable for all the age groups but specially focuses to the young generations. We can differentiate our target markets as follows: oYoung Generations including students, sports lovers, etc. (Provide an opportunity to fulfill their hectic personal life with thrill and adventurism) oFamilies (To enrich their lives with entertainment) oBusiness Entities (Hotels, Restaurants, Clubs, Resorts, etc.) (Provide an opportunity to increase their customers’ satisfaction through an exceptional line of soft beverages.) 7. Market Demographics: The profile of the ZamZam Refreshment potential customers consist on the following basis: Geographic: ZamZam Refreshment has segregated the market geographically into two broader categories: Urban Areas: •Large urban areas with heavy density of population •Small urban areas with low population 8. Market Demographics: Rural Areas: oDeveloped rural areas (Large villages having separate living areas with different standards of living). oLess developed areas (Small villages having community base living standards. 9. Market Demographics: Demographics: There is almost an equal ratio of male and female in the country’s population. Age Clusters: oAge between 13 to 60 years oAge between 13 to 20 years (Juvenile & quite young) oAge between 21 to 34 years (Young and Mature) oAge between 35 to 50 years (Middle Aged) oAge between 51 to 60 years (Old generation) 10. Market Demographics: Behavioral Factors: oThe majority of population belongs to the same religion and having strong religious trend among the middle income and lower middle income groups. oMost population having trend on spending money on quality and tasty food and beverage products. oHectic schedule of urban area’s life compel them to look for a catalyst to boost their morals. 11. Market Needs: •ZamZam Refreshment is providing a wide range of soft drink beverages to the customers. •Market is full of opportunities and there is a strong probability that, ZamZam Refreshment will penetrate in to the market with its unique taste of cola and wide range of product line. •Market has a trend to spend on food & beverages and they continuously seek for the best quality products to satisfy their needs. •The past success of the some foreign owned restaurant chains endorsed this confidence of the ZamZam Refreshment. 12. Market Needs: ZamZam Refreshment is committed to serve the target market through proving value to the money for the customers in the shape of following: oQuality Beverages. oExtra ordinary Customer Services. oEnriching their lives with joy and happiness. 13. Market Trends: oThe economy of the target market has been recognized as one of the emerging economy. oConsumer Price Index (CPI) and inflation are not highly favorable for the new business but the growing rate of Gross Domestic Products (GDP) indicates that market has potential. oForeign Direct Investment is welcomed by the government and provides different type of incentives. 14. Market Trends: o Urban areas more civilized and developed as compare to rural areas and literacy rate is high as compare to the rural areas. oPeople of the urban areas have busiest schedule as compare to the rural areas population. They spend most of their time for the earning of livelihood for their families and for the love ones. oThey always look for the opportunities to spend their leisure time with their families to fascinate their life along with their hectic schedule. oThey spend money for that, this trend is rising day by day and some of the urban areas of the target market have been recognized as mega metropolitan cities. 15. Market Growth: oIt has been predicted that the overall industry growth will hardly be more than 4.5% at the end of the current fiscal year. oBut it has been significant that the food & beverages industry growth will achieve up to 8% growth in the current fiscal year. oThis growth trend is remarkable as compare to other large manufacturing scale industries. oIt is strongly believe that this trend will be rise in the years to come. 16. Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis: The following SWOT analysis is based on ZamZam Refreshment strengths, weaknesses in accordance with the target market and it describes the opportunities and threats existing in the same market. 17. Strengths: oSuccessfully operating in the existing markets through its unique taste of cola and exceptional customer service. oOur state of the art logistics system enables us to minimize the overall cost. oWe are financially strong enough to cope up with the market responses or we can bear the early jerks of the market. Weaknesses: oPresently we have not investing on manufacturing process. 18. Opportunities: oLarge population of the country belongs to same religion. oLong summer seasons in the urban areas. oQuality food & beverages are sought in the market. oCan expand ourselves horizontally in same market. Threats: oExpecting strong resistance from the existing cola producers in the market. oThe uneven growth of economy and shaky political situation. oGlobal political scenarios. 19. Competition ZamZam Refreshment is struggling to enter into the highly competitive food & beverages market, where there are many foreign renowned food & beverage brands are serving to the population. ZamZam Refreshment categorizes them as follows: Traditional Cola Producers: We categorize the following Cola producers in to the high competitive zone, due to their global presence and one of them has been regarded as the pioneer in cola producing: oCoca Cola oPepsi Cola 20. Competition Muslim Cola Producers: There are many other manufacturers are existing in different Muslim countries and producing soft drinks in the name of Muslim drinks or cola. These producers can be the future competitors in existing market. Presently the following local producers are manufacturing the Muslim cola in the market: oGourmet Cola oCola Next 21. o Nestle o Shezan o Frooto o Apple Sidra o Murrey Beverages o Red Bull Energy Drinks o Rooh Afza o Jam-e-Shireen o Nurus 22. Distribution Product Offering: ZamZam Refreshment is in a process to introduce limited number of products from its wide range of product line. That can be extended according to the market needs and response. The products can be categorized as under: The core Product: oZamZam Cola 23. Distribution The other products: oZamZam Orange oZamZam Lemon oZamZam Diet Cola oZamZam Water oPower Plus Energy Drinks oPower Plus Energy Drinks Sugar Free 24. MARKET STRATEGY oAs per demographics the seventy percent of the population lives in the rural areas and the remaining thirty percent belongs to the urban areas. oInitially ZamZam Refreshment has been decided to concentrate on large urban areas based on large cities with heavy population. oWith the passage of time we will enable to capture the whole market and simultaneously we will enable to increase our market share in the same product line. 25. Mission Not Available 26. Marketing Objectives oContinually maintaining upward trend of sale of the ZamZam Refreshment products. oAchieve steady growth to fully penetrate in to the market. oDecrease customer acquisition cost each quarter. oExpansion of distribution network all over the market. 27. Financial Objectives: oMaximize the ZamZam Refreshment profit margin through efficiency and achieving economies of scale. oA double to triple digit growth rate for first three years of launching. 28. Target Markets oZamZam Refreshment has segmented its target market into three broader categories, large urban areas, small urban areas and rural areas. oMarket niche has been created through segmenting market demographically. oZamZam Refreshment will target the young generation in its initial aggressive marketing campaign. Besides the aforementioned market niche we will also target the families to enrich their life with the new taste of cola products. oZamZam Refreshment will commence the lucrative promotional activities to attract the business customers. 29. Positioning oZamZam Refreshment position itself as one of the finest producer of soft beverages products. oWe differentiate our self through unique taste of our cola product and raise slogan “cola for everyone”. oWe would like to make ZamZam Cola the first choice of the customers in soft beverages and drinks. 30. Strategies oThe first and the foremost aim of ZamZam Refreshment is to create awareness of the product and the value offered by us among the customers. oOur market strategy will focus to communicate the unique taste of cola which they never taste before or they are unable to find it in any other cola product. oThis message will communicate through variety of communication media. We have decided to communicate it through: oDeveloping Website and other digital channels oSocial Media oElectronic Media oPrint Media oBill Boards / Hoardings oEvent Organizing 31. o Type: Soft Drink Carbonated beverage o Ingredients: Carbonated water, sugar,( caramel) color, Acidulant, (Phosphoric Acid) Caffeine, Emulsifier (Arabic Gum), Natural Cola Flavor . o Size: 250 ml Regular 300 ml Pet Bottle 350 ml Cane 500 ml Pet Bottle 1.5 liters Pet Bottle Marketing Mix Products: 32. Size: 250 ml Regular 300 ml Pet Bottle 350 ml Cane 500 ml Pet Bottle 1.5 liters Pet Bottle Marketing Mix Products: Ingredients: Carbonated water, sugar, Acidulant, (Citric Acid) Emulsifier (Arabic and ester Gum), Natural Orange Flavor, Preservative (Sodium Benzoate), Color (Sunset Yellow), Antioxidant (Ascorbic Acid), Vitamin (C). Type: Soft Drink Carbonated beverage, Orange 33. o Type: Soft Drink, Low Calorie Carbonated beverage, Lemon o Ingredients: Carbonated water, sugar, Natural Citrus Flavour, Acidulant (Citric Acid), (Malic Acid), Acidity Regulator (Sodium Citrate), Preservative (Sodium Benzonate), Natural Lemon-Lime Flavor. o Size: 250 ml Regular 300 ml Pet Bottle 350 ml Cane 500 ml Pet Bottle 1.5 liters Pet Bottle Marketing Mix Products: 34. o Type: Soft Drink Carbonated beverage, Diet Cola o Ingredients: Carbonated water, sugar caramel, Acidulates (Citric Acid, Phosphoric Acid), Sweetener (Aspartame 350 mg/lt.), Acidity Regulator (Sodium Citrate, Preservative (Sodium Benzonate), Caffeine, Natural Cola Flavor. o Size: 300 ml Pet Bottle 350 ml Cane 500 ml Pet Bottle Marketing Mix: Products: 35. o Type: Power Plus, Energy Drinks, Sugar Free o Ingredients: Carbonated water, Acidity Regulator, Acidity Regulator (sodium Citrate), Preservative sodium Benzonate), Citric Acid, Taurine(Max-0.4%), lucurono- lactone(0.24%), Sweetener (Aspartame, Acesulfame K), Caffeine (.03%), Inostiol, Vitamins (Niacin, Pantothenic Acid, B6, B12), Flavour, Colors(Caramel, Riboflavin). o Size: 300 ml Pet Bottle 350 ml Cane Marketing Mix Products: 36. o Type: Power Plus, Energy Drinks o Ingredients: Carbonated water, Sugar (Sucrose), Glucose, Acidity, Regulator (Sodium Citrate), Preservative (Sodium Benzonate), Citric Acid, Taurine (Max 0.4%), Glucuronolactone (0.24%), Caffeine (0.03%), Inositol, Vitamins (Niacin, Pantothenic Acid, B6, B12), Flavour, Colour (Caramel, Riboflavin). o Size: 300 ml Pet Bottle 350 ml Cane Marketing Mix Products: 37. o Type: Power Plus, Citromin C o Ingredients: Carbonated water, sugar (Sucrose),Glucose, Citric Acid, Taurine, Glucuronolactone, Caffeine, Inositol. Vitamins (Niacin, Pantothenic Acid, B6, B12), Flavour, Preservative (Sodium Benzonate), Antioxidant (Ascorbic Acid). o Size: 300 ml Pet Bottle 350 ml Cane Marketing Mix Products: 38. o Type: Power Plus, Genseng o Ingredients: o Size: 300 ml Pet Bottle 350 ml Cane Marketing Mix Products: 39. o Type: Power Plus, Vitamin C o Ingredients: o Size: 300 ml Pet Bottle 350 ml Cane Marketing Mix Products: 40. o Type: Pure Natural Mineral Water o Ingredients: Pure Natural Mineral Water From Springs LIE in the heart of the scenic Hatta Peak District Filtering Through Acnient Limestone. This Water Emerges With a Natural Balance of Minerals, Calcium, Magnesium, Creating Great Taste, that is Spring Water o Size: 300 ml Pet Bottle 1.5 liters Pet Bottle Marketing Mix Products: 41. Marketing Mix Price: oNot les then the market price level of the same drinks. Place: oLarge Urban areas oSmall Urban areas oRural Areas 42. Marketing Mix Promotion: oLucrative discounts will be offer to the distributors, wholesalers and retailers. oThis promotional activity will be accompanied with the other promotional tools like offering company owned refrigerators; wholesalers and retailers sign boards, etc. oSales promotion events organizing. oSponsoring the mega events, specifically the sports events. 43. Marketing Research: Our market research will be based on two phases: Pre Launching: At this phase we will carry out a comprehensive research to analyze the market demand and identify the reasons of the failures of the past attempt made by the other manufacturers in same products. This research will help us to clearly identify the market depth for the product and its probability of success and failure. 44. Marketing Research Post Launching: We will be continuously in a search of that, how we can improve our existing products quality that can satisfy the customer’s need and to extend our product line in accordance with the new demands of the market, this will help us to understand the market dynamics and will able us to serve the market in more effective and efficient manner. 45. FINANCIALS Marketing Budgets: Marketing budgets is divided in to two parts, the first part of the marketing budgets deals with the pre launching activities and the second part of the budget deals with the post launching activities: First Part of the Budgets: Amount in million rupees and estimated upon current market situation for the three years period: 46. First Part of the Budgets: Particulars Allocated Amount Description Marketing Research 02.0 • Marketing Consultant Fee & research cost. Adds Preparation & Bringing it on air 20.0 • Fee of Add Agency for Ad preparation. • Commercial making expenses. • Other expenses related to print & electronic Ads. Promotional Activities 10.0 • Expenses related to of event organizing. Marketing Staff Remuneration 06.0 • Marketing Staff Salaries and Wages • Allowances for extra activities • Other administrative expenses Total 36.0 47. First Part of the Budgets: Year 1 Year 2 Year 3 Particulars Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Description Marketing & Advertisemen t 10 10 5 5 5 3 3 3 5 2 2 2 Expenses related to the aggressive media campaign. Selling Expenses 2.5 1 1 1 1 1 0.5 0.5 0.5 0.5 0.5 0.5 Expenses related to materialized the sales through providing different kind of incentives and promotional stuffs like company sign boards, company owned refrigerators, etc. Promotional Activities 5 5 5 2 5 5 2 2 5 3 1 5 Expenses related to effective promotional activities and event organizing. Logistics & Distribution 10 5 5 5 10 5 3 2 10 5 3 2 To carefully coordinate with the logistics to make sure the availability of beverages on time. Total 27.5 21 16 13 21 14 8.5 7.5 20.5 10.5 6.5 9.5 Year wise Total 77.5 51.0 47.0 48. CONTROLS Implementation: The overall marketing operations & activities have been divided in to three broader phases: Phase I: oThe company will capture the fifty percent large urban areas within the six months of its formal launching of products. Phase II: oWe will achieve hundred percent penetrations in to the urban areas’ markets within the one year. Phase III: oWe will fully penetrate in to the market through covering all prominent rural and urban areas within the three years. 49. Sales Targets The sales targets will be developed according to the potential of the sub markets or the locations. To achieve this we have segmented the market on the sales potential and they will be categories on the following basis and the respective targets will be allocated to the sales team on the basis of their respective locality: oUpper Class Localities (Higher Income Groups) oUpper Middle Class Localities (Higher Middle Income Groups) oMiddle Class Localities (Higher Lower / Middle Income Groups) oUpper Lower Class Localities (Upper Lower / Lower Middle Income Groups) oLower Class Localities (Middle Lower / Lower Income Groups) 50. Marketing Organization We have been organizing our marketing activities in to three broader categories, with an aim to create distinction from our existing competitors and restrict other producers of the beverages to enter into the same market. We have divided our marketing activities in to following three broader categories. oMarketing & Advertisement oSelling Activities oLogistics & Distribution 51. Marketing & Advertisement Marketing department will be responsible to carry out all the marketing related activities of the ZamZam Refreshment beverages products. oFirst and foremost, they will be responsible to carry out a comprehensive research related to the target market, to provide the desired & required information to the board of directors to review and analyze the suitability of the investment. oThen they will be responsible to implement this marketing plan in a manner that all the predefined objectives of the plan will be achieved in an effective 52. Marketing & Advertisement oThey will be responsible to develop ads for the products and get necessary approval from the top management before brining it o the media. After necessary approval they will be responsible to communicate it through various means of communications to the target audience in order to achieve desired level of sales of beverages and to create a profitable relationship with its customer through effective customer services. oMarketing department will be responsible to create synergy among the Marketing, Sales and Logistics & Distribution departments to ensure that the uninterrupted supply of the beverages will be available to the customers. They also responsible to seek continuous feedback from the individual and as well as the business customers to gauge the potential market growth and rectify the discrepancies if any. 53. Selling Activities The sales department will be the part and partial of the Marketing department, initially they are responsible to report to the marketing head about their selling activities. oThey are responsible to ensure that the orders from the retailers and whole sellers will be received frequently and the supply of the goods will be reached to the them on time, without any hurdle or disturbance. oTo achieve this objective they have to fully coordinate with the logistics department and make sure that the desired information must reach to the logistics department on time. 54. Selling Activities oThey responsible to achieve their predefined sales targets set by the top management with the help of the marketing department, in accordance with sales opportunities lies in the respective localities of the target market. oThe marketing department is responsible to make sure that the market potential will be utilized fully and every individual of the sales team will be highly motivated to achieve their individual goals as well as the department’s goals and collectively the organizational goals. 55. Logistics & Distribution It will be the prime responsibility of logistics & distribution departments that all the sales order will be delivered on time at minimum cost. They will be continually in a quest to capture the full market share through their effective and economical fleet operations of the logistics. Initially they will be directly responsible to the marketing department regarding their operational activities and have to work closely with the sales team. It is to be ensure by the logistics & distribution department that with the passage of time the cost of delivery of the beverages should be minimized but it must be ensure that they have to maintain same level of quality of services that company has promised to it’s customers. 56. Contingency Planning Difficulties & Risks: oAs prior mentioned that the already existing manufacturer and distributors of the renowned cola brands has strong influence on market, the huge resistance is expected from them. oThe product will be unable to achieve the desired objectives in term of finance and the number of sales. oA change in political and economic condition of the country can affect the predicted sales of the products. oFinancial risk can be minimized through creating or developing a joint venture or including local investors in the project. 57. Contingency Planning Worst Case Risks Scenarios Include: oProduct will be unable to get the desired response from the market. oA negative marketing from the rivals can harm the product image. 58. Questions & Answers 59. Thank You! Why rc cola failed in pakistan 1. 1. 1905: Mr. Claud 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. 2. 2. 1933: Mr. Claud Hatcher died on December 31st. 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 Lamarr. 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. 3. 3. RC Cola Diet RC Cola Cherry RC Cola RC Edge Cola Diet Rite Cola RCQ Royal Crown Draft Cola Kick 4. 4. RC cola was a very famous drink in Pakistan. It was well known since the time of its arrival in the sub- continent which was the 70’s. Internationally RC cola faded away by the early 90’s. 5. 5. 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 90’s. 6. 6. The initiative to re-launch RC cola seems to be a great idea, as it is a cash crop for Royal Crown all over the world. Before going to re-launch RC Cola in Pakistani market, several things should be analyzed. 7. 7. Market share of soft drinks in beverage industry Age factor affecting the sales 8. 8. 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. 9. 9. 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. 10. 10. 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. 11. 11. 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. 12. 12. 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. 13. 13. Strength: RC Cola is the cola which is more than a 100 years old. Weaknesses: Low advertising budget. International Law suits. 14. 14. Opportunities: To produce more concentrative and conglomerate products drinks. The heat factor in the sub- continent. To build a brand equity. Threats: Very strong established competitors. This very fact that Royal Crown cola was faded away in the early 90’s. 15. 15. TARGET MARKET Demographic Factor: Age – from 12-50 Years Social Class – Upper, Upper Middle., Middle Gender – Male and Female Geographic factor: Country – Pakistan Province—Sindh City – Karachi Population – about 20 million 16. 16. 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, 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. 17. 17. 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). 18. 18. DAILY PRODUCTION:- 500,000 LITRES A DAY DENONMINATIONS OF BOTTLES 250 ML 500 ML 19. 19. COST RS.7.75/= SALE TO RETAILERS (250ML) RS.12.50/= COST RS.20.5/= SALE TO RETAILERS (500ML) RS.27.0/= 20. 20. S.I.T.E. (WITHIN FACTORY) NORTH KARACHI. NAZIMABAD MALIR P.E.C.H.S. 21. 21. 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. 22. 22. Offered Products: RC Cola Diet RC Cola New Product Development 23. 23. Offered Products: RC Cola Diet RC Cola 24. 24. RC’s Ingredients Carbonated Water High Fructose Corn Syrup Sugar Caramel Color Citric Acid Natural Flavor Caffeine. 25. 25. 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. 26. 26. 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 27. 27. 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. 28. 28. Prices of different bottles Quantity Price in Rupees Jumbo 80 1.5 Liters 65 1 Liter 37 500ml 30 250ml 16 Tin 25 29. 29. 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. 30. 30. 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 31. 31. 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. 32. 32. 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. 33. 33. 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 Ramdan days or Eid occasions but this advertisement not remain consist