RE-LAUNCHING OF ROYAL CROWN

COLA IN

BANGLADESH

NiPu

A SSIGNMENT ON : µ RE - LAUNCHING OG ROYAL CROWN COLA IN BANGLADESH µ

Prepared by:
Name Md. Mohsin Ahamed Md. Zahid Hasan Md. Anamul Haque Md. Atiqur Rahaman Sk. Nazmul Haque Md. Redoanul Islam Id 2010-2-10-247 2010-2-10-130 2010-2-10-396 2010-2-10-296 2010-2-10-248 2010-2-10-064

Prepared for:
Instructor: Afreen Choudhury (Lecturer) Department of Business Administration East West University

Section# 7

D ATE OF S UBMISSION : 13 TH APRIL 2011
DEPARTMENT OF BUSINESS ADMINISTRATION
East West University

NiPu

LETTER OF TRANSMITTAL
Dated: 13th April, 2011. To, Afreen Choudhury Lecturer Department of Business Administration East West University Subject: Submission of report for completion of course. Dear Madam, This is to inform you that we have completed the report on our current Royal Crown Cola Ltd. The report focuses on "Re-launching of RC cola." This report has been prepared for the completion of the course Marketing Management. Within the time limit and our knowledge & capability, we paid sincere efforts to study related materials, documents, observed operations performed in Royal Crown Cola Ltd and examine relevant records for preparation of the report. But there may exist some mistakes and errors due to various limitations. Therefore, we beg your kindness in advance. In writing this case, we have followed your instructions for report writing so as to present our views and understanding in the easiest way. However, we will be glad to clarify any discrepancy that may arise. You are requested to accept this report and oblige me thereby. Thank you. Sincerely yours Md. Mohsin Ahamed MD. Zahid Hasan Md. Anamul Hoque Md. Atiqur Rahaman Sk. Nazmul Haque Md. Redoanul Islam 2010-2-10-247 2010-2-10-130 2010-2-10-396 2010-2-10-296 2010-2-10-248 2010-2-10-064

TABLE OF CONTENTS
NiPu

No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Content Title Title With Submission Date Letter of Transmital Table of Content Executive Summery Introduction Mission & Vission Concerns of Partex Group Curent Market Position Of Partex Group History of launshing RC Cola in Bangladesh Brand portfolio Competition Comparision of Cola Reasons for Lossing Market Product & Customer Solution Offered Product Depth Price & Customer Cost Distribution Channel Promotion & Communication Strategies Seals & Supply Conclusion Bibliography

Page No I ii iii iv V 1 1 2 2 3 3 4 5 6 9 9 10 10 11 12 12 13 14 15

EXECUTIVE SUMMERY

NiPu

Royal Crown (RC) Cola made by the Royal Crown Cola Company is the third most popular Cola in America. It is a tasty, refreshing soft drink. In 1905, it was first designed merely to meet the needs of grocery customers in a limited graphical territory. A young man named Claude Hatcher who was a good chemist, developed Royal Crown Ginger Ale in 1906. In 1923, the firm came up with a fruit flavored drink name Melo. A year later, the Brand name was changed to Neli. In 1932, Neli Chemist Rufus Kamm concentrated with a new Cola drink and his concentration resulted in Royal Crown Cola. It was introduced in 1934. In 1969, the company name was changed to Royal Crown Cola. In early 70¶s, RC Company decided to enter into the global market and at that time, a number of experienced soft drink people assembled to manage and direct the company¶s international efforts. At first, in 1995 RC cola introduced a premium draft Cola. It introduced RC products in Bangladesh in 1997 adding Royal Crown Lemon (first of its kind) with three other refreshing flavors of sweet & seriated RC Cola, the fresh orange flavor of Royal Orange, the tangy lime taste of Upper 10. As RC Cola is a newly franchise company it¶s officials want to know what is the current market scenario of other soft drinks in Dhaka City as it is the Capital of the country. If they can hold a large market share here, they will be able to make a huge amount of profit. As Coke and Pepsi has a very strong market share in Beverage business, RC¶s officials must know what is their present market situation or how they can increase their sales and make more profit. Therefore, in preparing this report all the attention has been given to the competitive situation of the Beverage Products. RC¶s lemon is in first position in the lemon flavor. Their success in this flavor is very high. 250 ml can and 300 ml glass bottle is very popular in the market. Food graded PET is very muchexcepted package for the consumers, because it gives more and no hazard of deposit. Retailers like to sell those companies product who gives them more advantage and profit. They do not like 1000ml-glass bottle for the deposit system and some times, it could be a reason to break the relationship between retailer and consumer. According to the information of beverage companies, this business becomes very competitive. New companies are trying too hard to gain the market share. Few years¶ back Sun-Crest was a very small company, but now they become one of the vital competitors in the industry. PRAN emphasized mainly on the mango, their quality and bottle size were not so good and attractive but they offer four bottle free with every crates of 250 ml glass bottle and gained a good market share. RC is trying too hard to cover as much as possible to consumers and territory. They have almost all pack size in the market. They are pioneer in 1.5-liter pet bottle, which started giving more. R C¶s main strength is cloudy lemon and 250 ml can is very popular pack size. They can combine these two issues. They wrought to produce more Cloudy can and make it popular by huge advertisement. INTRODUCTION:

NiPu

Partex Group is among the large Bangladesh private sector manufacturing and service based enterprises, owning and operating over tweenty units giving value for money to all customers.The group started modestly in 1959 in tobacco trading and with prudent entrepreneurship of Founder Chairman Mr. M.A. Hashem today Partex company has a stake in tobacco, food, water, soft drinks, steel container, edible oil, wooden board, furniture, cotton yarn and the IT sector. From importing to import substitution was the next logical step and the stepping stone into the manufacturing sector, which has matured to the multi million dollar diverse investment of the Partex Group today.A dedicated work force and committed board members led by the Chairman and backed by a market oriented corporate strategy has been the cornerstone of its success. Today the group has over tweenty family owned private limited companies with a sizable turnover.Partex company is a dynamic organization always exploring new ideas and avenues to expand and grow further GROUP MANAGEMENT Mr. M. A. Hashem Chairman Vice Mr. Aziz Al-Kaiser Chairman Mrs. Sultana Hashem Director Mr. Aziz Al-Mahmood Director Mr. Aziz Al-Masud Director Mr. Showkat Aziz Russell Director Mr. Rubel Aziz Director MISSION & VISION

[

The Aim The sky is not the limit for us but our expectations are within limits. Our imagination soars beyond conventional barriers. We share our destiny with our beloved motherland. We want to serve her better in the greater quest for national economic emancipation. The Way To a seasoned trekker, the path is never too arduous. We believe in progress, in diversity and service through entrepreneurship. We are both merchants and missionaries, doers and dreamers,

NiPu

entrepreneurs and experts. We are futuristic with emphasis on creative thinking and dynamic activity. The Spirit Enterprise is our life. We manufacture quality import substitute consumer and industrial product. We offer customer satisfaction keeping environmental and human factors in mind. It is this thrust that gives our organization integrity. We treasure our reputation and protect it zealously. Many minds in the Group contribute their accumulated knowledge to keep the wheels rolling that leads us to our goal. The cumulative strength of knowledge is required today, to find new solutions for the manifold problems of a fast changing economic, cultural and ecological milieu of tomorrow. Concerns of Partex Group AMBER COTTON MILLS LTD. AMBER PULP AND PAPER MILLS LTD. DHAKACOM LTD. (ISP) RADIO DHAKA LTD. PARTEX BEVERAGE LTD. PARTEX DENIM LTD. PARTEX FOUNDRY LTD. PARTEX PAPER MILLS LTD. PARTEX PLASTICS LTD. PARTEX ROTOR MILLS LTD. PARTEX ROTOR SPINNING MILLS LTD. PARTEX REAL ESTATE LIMITED PARTEX SUGAR MILLS LTD. PLASTIC ACCESSORIES LTD. PARTEX ENERGY LTD. Curent Market Position Of Partex Group: Established in 1959, Partex Group is one of the leading industrial and trading groups in Bangladesh. It consists of 17 concerns. Over 7,000 employees are working in this commercial group. In 2000-2001 it's targeting turnover is US$ 160 million and estimated growth rate 15% per year. Net worth at current market price is Tk. 7,500 Million. Over 350 distributors around the nation are engaged in distributing the products and services. There are over 45,000 outlets where products are marketed. Partex's movement is many-fold. It extends it's network in various sectors extended from milk to steel products. Let's be familiar with some of the concerns of Partex Group. NiPu

Partex Group At A Glance Established in 1962 17 industries and trade concerns today 2000.2001 targeted turnover US$ 160 million Estimated growth rate around 15% per annum Net worth at current market price nearly US$ 150 million Over 350 distributor around the nation Over 45,000 outlets where products are available Over 7,000 employees History of launshing RC Cola in Bangladesh: As we all know that Coca-Cola, Sprite, Pepsi are very famous drinks all over the world as well as Bangladesh. We can¶t find single person who doesn¶t like soft drinks. Mainly our young generation preferred to drinks. Now a days there are so many soft drinks company are coming continuously like Euro-Cola, RC Cola etc. Most of them are tastes are quite similar. Popularity of RC Cola is rapidly increasing day by day. In a small town, city even in villages RC Cola is available. RC Cola has taken a very strong place in people¶s heart within very short time. One of the reasons is its price and another reason is its taste. The first line of beverages was named µRoyal Crown¶ and the first Cola was called Chero-Cola. The commenced commercial production on 6th October, 1997, and RC was launched in Dhaka on 20th October 1997. For this report we have selected RC cola as our product. We have got reasons for what is going to be downsized. First of all we are describing the history of RC cola. Here is market and current market situstion of it.

Brand portfolio RC Cola Diet RC Diet Rite Royal Crown Draft Cola - Limited U.S. availability Cherry R.C. - Available in Limited Markets RC Edge - Available in Limited Markets RC 100 ± Discontinued Caffeine Free RC - Available in Limited Markets RC Free - Available in Israel "RC Vince Villio"- Available in Akron,Ohio RCQ - Royal Crown Queen's NiPu

Major Milestones:
st

1933: Mr. Claud Hatcher died on December 31 . 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 ³Best 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.

Competition RC Cola,Vergin cola, Pepsi and Coca-Cola had/have different brands of soda and other drinks competing with each other's company:

Most Preferred Brand Consumed by the Consumer Out of the total sample size, 62.13% consumers like Coke, 17.26% Pepsi, 9.11% RC, 6.75% Virgin and others 4.75%. According to the result of the survey, we find that most of the consumer in the Dhaka city liked Coke and the ratio is 62.13%.

Most Prefer Type of Flavor The consumers informed the following above the most prefer type of soft drinks: 51% consumer indicated that they liked the Cola flavor most. 18% of them like the Orange flavor, 20% liked Lemon, 4% liked Diet, 4% Mango and others 3% liked Lime. Actually, children and women liked Orange and Mango flavor most. Diet liked by health conscious people.

NiPu

Influential Factors The influential factors are taste, brand, advertisement, friend¶s influence and one of the vital factor availability. The result had shown that 67% taste, 13% brand, 10% advertisement, 7% friend¶s influence and 3% availability influence the consumers to buy or have the beverage product. Pack Preference The consumer indicated the following things about there pack preference of soft drinks:.23% of the consumer liked the fountain drinks, 27% liked 300ml bottle, 23% liked 250ml can, 19% liked 1000 and 1500ml PET bottle and only 8% liked 1000ml glass bottle. Consumers do not like the 1000ml glass bottle because of hazard of deposit system of bottle from the consumer. Segmentation of the Consumer We have divided the consumers according to the age. The segments are children, teen age, youth, people over 35 years. The aim was to find out which segment like most the beverage product. The result indicate that 12% children, teen agers 49%, youth25%, people over 35 years 14% consumed or have beverage product. Therefore, the result indicates that teen agers are the main segment of the beverage product. Sources of Information The consumers reported the following about the sources of information 36% of them got the information about soft drinks from TV, 32% got the information from the print media, 18% from the Radio, 12% from the out door (billboard) and only 2% from the word of mouth communication.

Comparison of Cola
Taste Preference The varieties of Cola in beverage products are: Coca cola Pepsi RC Virgin

NiPu

Suncrest The consumers indicate that they like Coke¶s cola most. The result I got they liked 46% cola of Coke, 24% cola of Pepsi, 12% of RC, 15% of Virgin and 3% of Sun-crest¶s cola.

Reasons for loosing marke in Bangladesh: Pepsi Cola and Coca Cola stormed into the market. Advertising was minimal in Bangladesh as compared to its competition. RC Cola was being sued by different organizations internationally so it lowered its investment in the sub-continent.

There were also some categories for not liking reasons. They were as follows: No punch Not strong Too strong Not sweet Too sweet Bitter taste Tasteless Taste The consumers informed their reasons for not liking only for RC and Virgin. They did not like RC and Virgin for the following reasons: 38% of the consumer indicated that RC had no punch, while the rest of 62% indicated that Virgin had no punch. In the ³not strong´ category, 40% consumers did not like RC Cola because it was not strong and 60% disliked Virgin for the same reasons. NiPu

In the ³too strong´ category, 100% consumers disliked RC Cola because it was too much strong. In the ³not sweet´ category, 50% disliked RC Cola because it was not sweet and the rest did not like Virgin for the same reason. In the ³too sweet´ category, 75% of consumer indicated that RC Cola was sweeter than Virgin. In the ³bitter taste´ category, 50% consumers disliked both RC Cola and Virgin because they were of bitter taste. In the ³taste less´ category, 37% consumer did not like RC Cola because it was taste less and 63% consumers disliked Virgin for the same reason. In the ³taste´ category, 50% consumers reported each for RC Cola and Virgin that they did not have the taste.

There were also some categories for not liking reasons. They were as follows: Horrible Sour No punch Too strong Not sweet Too sweet Bitter taste Tasteless Taste

NiPu

The consumers informed the following reasons about their reasons for not liking, only for Mirinda, RC orange and Virgin orange: 100% of the consumers disliked RC orange because it was horrible. 67% disliked RC orange because it was sour and 33% did not like Virgin orange for the same reasons.

100% of the consumers indicated that RC orange had no punch. In the ³not strong´ category, 83% consumers did not like RC orange because it was not strong and 17% disliked Mirinda for the same reason. In the ³too strong´ category, 70% consumer disliked Virgin orange because it was too much strong. In the ³not sweet´ category, 75% disliked RC orange because it was not sweet and the rest 25% did not like Mirinda for the same reason. In the ³too sweet´ category, 14% of consumer disliked Mirinda because it was too sweet, 57% disliked RC orange as it was also too sweet and 29% did not like Virgin orange for the same reason. In the ³bitter taste´ category, 64% consumers disliked RC orange and 36% consumers did not like Virgin orange because both of them were of bitter taste. In the ³taste less´ category, 50% consumer disliked RC orange because it was taste less and 33% consumer disliked Virgin orange because it was also taste less and the rest 17% consumer did not like Mirinda for the same reason. In the ³taste´ category, 6% consumers disliked Mirinda because it had no taste, 81% disliked RC orange and 13% disliked Virgin orange for the same reason. NiPu

As our products need to re-launch,we will give it a ne design and new shapes. Here we will change our marketing mix tools.Our marketing mix tools will be re-shaped by the followingProduct & Customer Solution: RC cola is a soft drink. We will get it as a bottled drink. We will get it in different size, quantity and taste. It contains calories, carbohydrate and sugar. There is no fat, protein and sodium. But diet cola has no sugar. We will get it in different colors and flavors. It has no harmful element. It will be a refreshing drink for all classes of people. RC is a product that consists of the basic physical offering and an accompanying set of images and services features that seek to satisfy needs. RC Cola is also that type produc Hopefully RC Cola will be the most popular brand in our domestic market and it will be consumed by children and adults alike.

Consumers will enjoy RC in every corner of our countries. Royal Crown Cola and RC Diet Cola will be sold through a domestic network of ten(10) franchised bottling plants and more than fifty(50) distributors. Products that will be offered: RC Cola Diet RC Cola RC Energy Drink RC s Ingredients Carbonated Water High Fructose Corn Syrup Sugar Caramel Color Citric Acid Natural Flavor Caffeine. NiPu

Quality RC Cola has a unique crisp and clean taste and it is consistent with its flavor no matter where you buy it. It has a refreshingly great taste even if it is not 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 2500 ml Jumbo Bottle Price and Customer cost: Price depends on its quantity. It is expected to all because the price will be reasonable and affordable. We will get it within 10-50 taka. Though the cost to market the product in the rural area is bit high, the price is same both to the urban and rural area. Pricing decisions are influenced by now responsive a target market is high or low price, the physiological created by prices and the actions of competitors.

Following factors we will consider while determining the pricing strategy of RC Cola: Price will be set according to the product demand of public. Price will be that which gives the company maximum revenue or as much as possible. Price will not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy our product. Price will be set by the view of our target market.

NiPu

Special Offers RC Cola will give special offers to consumers on special occasions like Ramadan and Eid days,Puja and also in Christmas instead of decreasing the price of the products, some special packs like Pakkora Mix, Chat Massala, or Free Drinks with Liter Bottles will be offered. Prices of Different Bottles: 175 ml Mini Bottle = 10 BDT 250 ml Regular Bottle = 15 BDT 500 ml Bottle = 20 BDT 1000 ml Regular Liter Bottle = 30 BDT 1500 ml Disposable Bottle = 40 BDT 2500 ml Jumbo Bottle = 50 BDT

Place & Convenience: We will get RC Cola in all over the country. We will get it from general stores to departmental stores. So, it will be very easy to get RC. Even it will not be very hard for the rural area people to get this soft drink.

Figure: Product supply process.

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 7 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. NiPu

Placement of Our Product at major super stores in Dhaka City: MARKET LOCATION 80, Riles Square, Road-2,Dhanmondi Road # 5, Dhanmondi, Mirpur Road

Agora Almas General Stores

Mina Bazar Pick& Pay Supermarket

719/A, Satmasjid Road, Dhanmondi A.R. Tower, 24, Kemal Ataturk Avenue Banani

Promotion & Communication: Advertising is the main way of promoting new flavor and new design product. Before launching our product,our company will give pre-announcenent and ads to the electronic media and print media and tv-commercials to create concentration of the people. When the new product will be launched,the company will give discount in product. We will offer several types of free gift with the newly launched product. Promotional strategy is the second element of the marketing mix. It involves the correct blending of advertising, publicity to create the promotional mix.

Following are the strategies: Comparative Parity Method: RC Cola ads will be telecasted with the competition in Coca Cola and Pepsi which are its direct competitors. Seasonal advertisement: Frequency of the RC Cola ads will vary from time to time. When the season will be on,we will do heavy advertisement especially in Ramdan days or Eid occasions but this frequent advertisement will not remain consist.After that we will use low frequent ad to the tv-commercial and our promotional strategy will not be stopped until we get huge response from our target market . NiPu

Sampling Program: A successful sampling program can be our most effective means of increasing consumer awareness, trial, and actual product purchases in Bangladesh.Here we will choose a sample target market and then provide our product with huge discount,that will be our minimal profit.Doing this we will justify that how much they appreciate us and like our product.

Merchandising: Royal Crown Cola will train its bottlers in merchandising functions that will ensure visually appealing beverage shelves, coolers, and vending machines. They will 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 brands in Bangladesh. Sales Support: Royal Crown Cola 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,we 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 brand identity. Through their Fleet Graphics program, Royal Crown Cola will help them develop proper fleet identification logos which will enhance the brand value in our marketplace.

NiPu

ADVERTISING STRATEGY: Newspaper Radio T.V. Commercials Bill Boards .

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. Conclusion: The management approach differs from organization to organization. But all types of organization apply mare or less some common functions such as planning, marketing, HRM, coordinating and production. RC Company Ltd. successfully applies management functions in its operations. As a result, today RC Company deserves top position in the market of soft drinks.

NiPu

BIBLIOGRAPHY www.google.com Wikipedia Encyclopedia www.partexgroup.com Marketing management 13th edition www.ehow.com www.partex.net www.rccola.net www.rccolainternational.com www.energyfiend.com www.rcbeverage.com

NiPu

Our Re-Design Can

We Cool Off Hot Towns

NiPu

Sign up to vote on this title
UsefulNot useful