Marketing Plan

RC COLA is a franchise of Alfredo M. Yao (owner of Zest-O/Asian Spirit) from Royal

Crown Cola International.

Asiawide Refreshments Corporation (ARC) is the country’s licensed bottler

manufacturer and distributor of U.S. Best Tasting Softdrink, known as RC Cola.

Company Profile

Company Profile

In the 1970s, R.C. cola was popular in the Philippines with its franchisee Asiawide

Beverages, after the brand disappeared for 3 decades, R.C. Cola was relaunched and now became the third largest-selling cola brand,

toppling Coca-Cola's Pop Cola, and now behind Pepsi-Cola and Coca-Cola. It also

started advertising with a "smooth, laid back" image that it portrayed since the 60s

Company VMOs

Vision

To be the leading food and beverage Filipino company competing with the multinational

companies.

Mission

Our mission is to be the leading manufacturer and distributor of juices, dairy and related food products that best satisfy the growing needs of

the customers.

Market Share

Market ShareThe leading company in the market in 2005 was San Miguel

Corporation/CCBI. The second-largest player was PepsiCo, Inc. with Nestle S.A. in third place.

Coca Cola shares 80% market share from its acquisition of Cosmos Bottling Corp. Top Sellers: Coke Sakto, Sparkle, Coke Zero, Pop

Pepsi Cola shares a market share of 15%.Top Sellers: Pepsi, Mountain Dew

RC Cola shares a market share of 4%

Others share 1%

SWOT Analysis

Strengths

Concentrated Brand Identity. Focused on mass market only & most advertising are placed in areas

where common people can see it.

It’s affordable for a product that tastes great.

With Increasing number of plants RC Cola is catering every wholesaler to provide retailers a fruitful

business

SWOT Analysis

Strengths

To draw more attention to the product RC Cola creates contests for people to purchase more.

RC Cola sponsors organizations with their social events and gigs.

P.O.P.s are placed in the right market to achieve proper brand identification.

SWOT Analysis

Weaknesses

RC Cola is limited only to lower class markets. It cannot cater to high-end customers.

As a franchise and owned by the no.1 juicer in the country, marketing may not be pushed very well.

Only selected advertisements and exposure.

Poor bottling design and less volume of bottles available.

SWOT Analysis

Weaknesses

Not available on Fast-food chains where large crowd eat.

It doesn’t follow much with the global marketing strategies of RC Cola International.

SWOT Analysis

Opportunities

Foreign market and Plant ExpansionChina has a large population and is now a target

for RC Cola’s new plant. Asian market as penetrated by its mother company has been a

success. Zest-O’s aim for global competitiveness also covers its franchise – RC Cola.

SWOT Analysis

Threats

Effect of Economic CrisisAny sector can feel the brunt of the economic crisis. And with this, beverage consumption

takes a significant step down on a consumer’s expenditure. Buying the product would likely be

on occasions or some social events, but on regular days it will depend.

SWOT Analysis

As a growing company adding more bottling plants in the southern part of the country (Bicol and Visayas Islands) can boost sales up to 100%.

The product is affordable and has a feel of what the common people are.

Promoting the product has been easy for the mother company, so penetration of the lower

class public isn’t a big deal.

Market Study

Market size

The Philippine population according to the National Statistics Office (NSO), Philippine

population is projected at 88.7 million for 2008 with an average growth rate of 2.32%. Over 90% of the population is below 60 years old, which

means that the Philippine beverage market is at mass. And 13% of the consuming population of

beverages is in Metro Manila.

Market Study

Beverage Market

Total family expenditure on for the entire country amounted to P2,038 billion 2000 (NSCB), comprising 43.1% of the total family expenditure

for food & beverage (includes consumed at home at outside).

Market Study

Market Trend

The market for Soft Drinks in the Philippines increased between 2000-2005, growing at an

average annual rate of 5.7%. Beverage Production gained, from 8.7% percent in 2007 to

a 26.7% production in August 2008. The Beverage Industry also gained an increasing net

sales from 2.3% in 2007 to 20.6% in 2008.

Market Study

Our Target Market

Anyone who can drink carbonated softdrinks

1st – Teens / Barkada2nd – Families

3rd – Community4th – Working People

USP: RC Cola – “Ang No. 1 Cola ng Bayan”. We aim to be the no. 1 selling great tasting cola that’s affordable and available everywhere.

Product

RC’s Taste. RC’s crisp, clean taste distinguishes it from other colas, and has become a favorite of cola drinkers.

Why RC? 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.”

Product

RC’s Ingredients - RC Cola contains Carbonated Water, High Fructose Corn Syrup and/or Sugar, Caramel Color, Phosphoric and Citric Acid, Natural Flavor, and Caffeine.

Caffeine Content - RC Cola contains 3.77 mgs of caffeine per fluid ounce (12.74mg/100mls).

Product Analysis

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.

Product Analysis

Style & Design

RC makes sure consumers quickly and clearly recognize a product brand comes down to one thing – packaging

RC is a leader in packaging innovation and a first to introduce softdrinks in cans and 2L Pet Bottles.

Product Analysis

Brand Name

The first line of fruit flavored beverages was named Royal

Crown and the first cola drink was called Chero-Cola in 1910.

By 1934, Chero-Cola is reformulated and the new

product is named Royal Crown Cola

Product Analysis

Brand Image

RC Cola was famous with MoonPies

Product Proposals

LOGO

RC Cola Original Logo Proposed New Logo

Product Proposals

PACKAGING

330 mL500 mL

1.5 L

Product Proposals

CAPS

Tanzans for Glass Bottles Plastic Caps for PET Bottles

Price

RC’s Price. Our price is based on what the people can afford. Low-priced but quality wise.

This was successful by just changing the contents volume from 357mL to 240mL and 1 Liter to 800mL.

With such economic crisis going on, everything is increasing in price. RC Cola answers refreshment that’s on a considerable budget.

Servings (mL/ Liters)

BOTTLED DRINK SRP

200 mL N/A Php 5.50 N/A

240 mL Php 5.00 Php 7.00 Php 6.00

500 mL N/A Obsolete N/A

800 mL Php 12.00 N/A N/A

1 Liter N/A Php 24.00 Php20.00

CANNED DRINK SRP

330 mL Php14.00 Php18.00 Php17.00

PET BOTTLED DRINK SRP

500 mL N/A Php20.00 Php19.00

1.5 Liters Php25.00 Php34.00 Php33.00

2 Liters N/A Php45.00 Php36.00

Price

Competitors Price Comparison (SRP)

Pricing Strategies

Our pricing will be based on cost of production which is fairly reasonable for a penetrating brand in the market

Increase Dilemmas: Price increase would depend on the materials being used. If sugar goes up, some adjustments would have to incur.

Price Adjustment: Volume discounts are given to our distributors as incentives. P.O.Ps and some other materials are given to them as product support.

Pricing Strategies

We target a market that’s realistic enough to buy out our product. RC Cola is affordable and a wise decision for people who’s on the tight budget

Promotional Pricing is a must for new markets to penetrate and a way to spice up demands from regular customers. But these are temporary only and limited to some territories. Product bundling and discounts will mostly be used.

Place

From 5 ARC plants to distributors over the country, then sold onto wholesalers and to small groups of retailers and shopping places.

RC’s Placement

Placement Strategies

Our NEXT TARGET. More Space and P.O.Ps on supermarkets and groceries.

Placement Strategies

Our NEW MARKETS. Bicol & Visayas Market Penetration

Placement Strategies

On Going Distribution. One of RC Cola’s distributors here in Quezon City. Deliveries of RC Products are done on a daily basis.

Some wholesalers and retailers even visit the place for fast orders

Promo Strategies

RC Cola on MRT & LRTWith the Fare price going up - people now prefer MRT & LRT as their main transportation. RC Cola is there for the Filipino people with the new RC Cola “Ride Card 4u”.

It’s a stored value limited edition card which comes with a free 500mL RC Cola softdrink. These freebies can be claimed at Ride Card 4u booths.

Promo Strategies

RC Cola on MRT & LRTThis will be press released on Inquirer Libre and Philippine Daily Inquirer. Radio ads inside the trains will also be aired. Digital TVC’s announcing the promo will be done thru OMNI Prime Advertising (in LCD Screens). Promo runs for 2 months only.

The Refreshment Center Booth (RC Booth) The RC Booth will be situated at major MRT & LRT stations in the metro. Free Product Sampling and discounted selling of RC Products.

Promo Strategies

RC Cola BillboardsBillboards will be placed where there are a lot people that can see it always. We will distribute this is most areas of Metro Manila especially where our target is.

Promo Strategies

RC & The PUVsRC Cola Ads will be placed on Buses,Tricycles and Jeepneys throughout the metro, especially in Quezon City & Manila. Small stickers with “Barya Lang Po Sa Umaga” & Small Trash cans with the RC logo and slogan “Responsible Citizen”

Promo Strategies

RC & The Publishing MediaFull Page Ads on major newspapers and tabloids for the first month then continuous ads for the consecutive months. A Press release of the Ride Card 4u and Barkada and RC Cola on selected magazines & newspapers.

Promo Strategies

RC & The Environment

Cleanliness and Greener Earth is another goal of RC Cola. Small Trash Can will be placed on areas where there are RC Products or Advertisements.

Promo Strategies

RC & The SocietyRC Cola will sponsor community and academic events whether it’s Alumni Homecoming, Intramurals, Job Fairs and others. Also would help some charities especially for uneducated kids and malnourished ones.

Promo Strategies

RC & The Television MediaBarkada is the theme of our TVC. RC is one of the barkada also. It is there as the refreshment partner for common people especially teens. Bored, Thirsty or even just being laid back – RC makes the barkada more closely.

Promo Strategies

RC & The Television MediaFuture TVCs would feature Marian Rivera drinking the product and saying it is the great tasting cola and will be aired at primetime. Joey and Vic will be saying “its incomparable coz it tastes great” and will be aired lunch time onwards.

Promo Strategies

Survivor Philippines – RC Survivor of the Week.RC will choose who’s the best for the week’s episodes and will give a prize and also to the home viewer. Texting Contest will be thru GMA New Media and RC Cola. Sole Survivor gets 1 Million Cash from ARC.

Promo Strategies

RC & The Online MediaFriendster, Yahoo Messenger, Youtube and Google Ads are the major targets for Banners and Promo Ads. These websites feature regional distribution of ads which means all viewers from the Philippines gets the ads directly.

Thank YOU Po!