Brief Introduction to Royal Crown lldmflCola

7/30/2019 Brief Introduction to Royal Crown lldmflCola

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Table of Contents

1. LETTER OF TRANSMITTAL

2. INTRODUCTION

3. CELEBRITY ADVERTISMENTS

4. RC COLA INTERNATIONALLY

5. NEED TO RELAUNCH

6. RC COLA IN PAKISTAN

7. AREA OF RELAUNCHING

8. REASONS

9. TARGET MARKET

10. ADVERTISING STRATEGY

11. PROMOTIONS

12. PLANT LOCATION

13. PRODUCTION

14. COST

15. DISTRIBUTION NETWORK

16. WAREHOUSES

17. SWOT

18. RC COLA LOLLY


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19.EXECUTIVE SUMMARY

Letter Of

Transmittal


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December 07, 2007

Mr. Zeeshan Jawed

Project supervisor & Course Instructor

MBA

Iqra University

Dear Sir,

We are submitting this Final Report of Marketing Management as per course objective. It has been a great

learning experience formulating this report. It has helped us understand the process of Re-launching an

existing product. We hope the work done in this connection would improve our research skills and play a

significant role in our future ventures.

Best regards,

Mr. Khalid Yousuf 3724

Mr. Zeeshan Jawed 4741

Mr. Noman Khan

BRIEF INTRODUCTION TO ROYAL CROWN COLA:

Royal Crown Company Inc., originally called the Union Bottling Works,

was born in Columbus, Ga. in 1905. A young graduate pharmacist, Claud A.

Hatcher, began creating his own soft drinks in the basement of his family's

wholesale grocery business. From these humble beginnings, Royal Crown

Cola Co. grew to be the third largest soft drink company in America


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At first, the Hatcher Grocery Co. purchased bottled drinks from a local

bottler and resold them to its grocery customers. As this part of the business

grew, Mr. Hatcher insisted that the bottler pay the company a commission or

compensate him in some way for handling the drinks. A dispute arose and

Mr. Hatcher concluded that his company had purchased its last case of

drinks from an outsider. Henceforth, it would produce and bottle its own

drinks under its own labels.

The first line of beverages was named Royal Crown, and the first cola drink

that he devised was called Chero-Cola. Subsequent generations were to

apply the Royal Crown trademark to a cola, and it was to become so

important that the corporation would be renamed "Royal Crown Cola Co."

Shortly after the Hatcher Grocery Company decided to engage in the

manufacture of soft drinks, its officials organized the wholly owned Union

Bottling Works. The manufacture and bottling of soft drink syrups continued

within the framework of the Union Bottling Works until 1912, when the

newly organized Chero-Cola Co. took over the business and vastly expanded

it. Among the early products were Royal Crown Ginger Ale, Royal Crown

Strawberry, Royal Crown Root Beer and Chero-Cola.

As the sales of carbonated beverages by the Hatcher Grocery Co. became

more important, it was decided to incorporate the Chero-Cola Co. In 1912, a

charter was granted by Judge S. Price Gilbert in Muscogee County SuperiorCourt of Columbus. The company was to manufacture a line of syrups and

flavour concentrates to be sold to franchised bottlers who bottle and sell

these concentrates and syrups under trademarks owned by the Chero-Cola

Co.


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In April of 1914, Chero-Cola Co. filed application in the United States

Patent Office to register its trademark, Chero-Cola. The Coca-Cola

Company then instituted a law suit that lasted for more than nine years. In

fact, litigation concerning the use of the company's trademark continued in

one form or another until 1944 when the final victory was won by Royal

Crown Cola Co., setting for all times its right to use the word "cola" in the

name of its beverages

The years 1914 - 1920 showed steady, but at times, rapid growth in sales.

Both profits and company assets increased steadily

CELEBRITY ADVERTISMENTS

In 1946, the pace for Nehi Corporation accelerated tremendously. The

company began to enhance its advertising by using entertainment celebrities.

Bing Crosby, Joan Crawford (before inheriting Pepsi), Bob Hope and many

others joined in selling the products of Nehi Corporation. ? ?When World

War II was over, the company and its bottlers joined whole-heartedly in a

progressive program of expansion and improvement that made 1947 one of

the great years in the history of the enterprise. In that year, glamorous Hedy

Lamarr was pictured in point of purchase advertising signs


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AVAILABILITY OF ROYAL CROWN COLA

INTERNATIONALLY

NEED TO RELAUNCH

RC however is operational at current in Pakistan but does not have the cola

flavored drink produced, but the RC orange, RC Lime and

RC vimto carbonated drinks.

CyprusFrance

Ireland

Italy

NorwayRomania

Slovenia

Canary IslandsSpain

Sweden

SwitzerlandPortugal

Turkey

ArgentinaBolivia

Brazil

Dominican Republic

EcuadorGuatemala

Martinique

ParaguayPeru

Uruguay

PhilippinesThailand

Taiwan

EstoniaKyrcyztan

Latvia

Lithuania

RussiaTajikistan

Turkmenistan

UkraineAustralia

Cook Islands

FijiIndonesia

Japan


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The initiative to relaunch RC cola seems to be a great idea, as it is a cash

crop for Royal Crown all over the world.

RC COLA IN PAKISTAN

RC cola was a very famous drink in Pakistan and it was well known since

the time of its arrival in the sub-continent which was the 70s. But due to

many issues within the country and internationally RC cola faded away by

the early 90s

AREA OF RELAUNCHING

The RC Cola will be relaunch in sindh initially, and the major cola

competitors are mentioned below:

1. PEPSI COLA

2. COCO-COLA

REASONS FOR RC COLA LOOSING MARKET IN PAKISTAN

Pepsi Cola and Coca Cola stormed into the market.

Advertising was minimal in Pakistan as compared to tis competition.


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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.

TARGET MARKET

The target market for the Re-launch will be the Youth (teenagers) of thesub-continent reason because they are easier to convert and more likely to

get influenced.

ADVERTISING STRATEGY

Newspaper (DAWN, JANG)

Radio FM 96, FM 98, FM 107


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

CHANNELS)

Bill Boards

ADVERTISING COST

The estimated cost for advertising will be around 20 million which will

cover both electronic and print media. The channels which on which our add

will be shown are mentioned above For print media we are using magazines

and newspapers.Cost will be recovered in a two year time period .

PROMOTIONS

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 colas cap.further we will

conduct BTL(below the conter the conter activities

PLANT LOCATION


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RC has a factory at SITE industrial Area near Sher Shah Market which

covers an area of 5000 Yards.

PRODUCTION CAPACITY

DAILY PRODUCTION:-500,000 LITRES A DAY

DENONMINATIONS OF BOTTLES

250ML 500ML

COST PER MANUFACTURE INCLUDING OVERHEADS

COST RS.5.75/=

SALE TO RETAILERS (250ML) RS.8.50/=


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COST RS.11.5/=SALE TO RETAILERS (500ML) RS.17.0/=

DISTRIBUTION NETWORK

The Distribution is outsourced third party logistics vehicles used are Suzuki

trucks total of 75 trucks.

WAREHOUSES

STRENGTH

S.I.T.E. (WITHIN

FACTORY)

NORTH KARACHI.

NAZIMABAD

MALIR

P.E.C.H.S.


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RC Cola is the cola which is more than a 100 years old.

WEAKNESSES

Low advertising budget.

International Law suits.

OPPORTUNITIES

To produce more concentrative and conglomerate products drinks

The heat factor in the sub- continent.

To build a brand equity.


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Life is going fast and people preferences are changing day by day people are

becoming more health conscious. Keeping in view this changing trend

among people, RC Cola has come up with the idea of relaunching cola with

having almost the same taste as of the already existing colas in the market.

For the marketing strategy we will use target marketing as our product is for

people of all ages .We have kept our point of sales at different geographical

locations all over the sindh province to capture as much market as we can.

Our marketing objectives are to capture the market and increase our sales by

satisfying our consumers, i.e. to fulfill their needs and wants.

We have framed the price according to our competitors so that we can

achieve our desired target.

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Brief Introduction to Royal Crown lldmflCola