RC Cola Company Background

As a project in Marketing, we were asked to research on Company Background & VMOs. Here s a my work on RC Cola. III. Company Background A. Company Profile RC COLA is a franchise of Alfredo M. Yao (owner of Zest-O/Asian Spirit) from Royal Crown Cola International. Asiawide Refreshments Corporation (ARC), the country s licensed bottler manufacturer and distributor of U.S. Best Tasting Softdrink, known as RC Cola, since 1905. It has bottling plants in NCR, Davao, Southern, Central and Northern Luzon to respond to the demands of an ever increasingly competitive environment in the bottling industry. 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. B. Company s Vision and Mission The company does not have a written formal vision statement. The succeeding information is based on Zest-O Corporation s Vision and Mission. 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. This, for us is the means by which we can effectively participate in the social and economic development of the communities we serve, promote professional growth and well-being of our employees, maintain mutually profitable relationship with our trade partners and achieve growth level equal to or better than the norms of the food industry.

Current position of the company in the market/industry, market share The 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% C. Company Analysis (Strengths and Weaknesses) The strengths of RC Cola are as follows: 1. Concentrated Brand Identity. Focused on mass market only & most advertising are placed in areas where common people can see it. Recto Manila has a big billboard done by MacGraphics Carranz and TV Sponsorship ads on Eat Bulaga. 2. Product Price. It s affordable for a product that tastes great. 3. Availability. With Increasing number of plants RC Cola is catering every wholesaler to provide retailers a fruitful business 4. Sales Promotions. To draw more attention to the product RC Cola creates contests for people to purchase more. 5. Social and Community Assistance. RC Cola sponsors organizations with their events and gigs. 6. Proper Placement of Materials. P.O.S. advertising is placed in the right market to achieve proper brand identification. The weaknesses of RC Cola are as follows: 1. As a competitor in the carbonated soft drinks industry, RC Cola is limited only to lower class markets. It cannot cater to high-end customers. 2. 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. 3. Poor bottling design and less volume of bottles available. 4. Not available on Fast-food chains where large crowd eat. 5. It doesn t follow much with the global marketing strategies of RC Cola International.

As a growing company and adding more bottling plants in the southern part of the country, the opportunity to boost sales is 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. Ongoing campaigns of some soft drinks that are developed and priced for the lower class market poses a threat. But in a healthy competition, RC Cola knows its targets well and caters to what they need. Coca Cola will always be on the top, so RC Cola will produce to accommodate its tied consumers and create more promos to double the purchase of their products. Sources: http://www.rccolainternational.com ; http://www.zesto.com.ph ; http://www.answer.com ; http://www.marketshareresearch.com ; http://www.cott.com ; http://www.bestjobs.com ; http://www.businessmirror.com ; http://carranzoutdoor.com.i-ph.net/
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What specific goals should be met?

The most specific goal to meet is to be number 1 again in selling of beverages in the Philippines, especially in Metro Manila and decrease the expense in manufacturing of the beverage products. And the second is to have many success promotions and advertisement for the products will became more popular.

Which of these goals are critical to the success of the decision?

The priority is to be number 1 in selling of beverages especially in Metro Manila and decrease the expense of the Company to earn more profit.

2.) Generating Alternative Solutions

1.) The competitor adjust their price, they did a rollback thats why they sold many of their products. Then, also Coca-Cola Company will rollback also some of its product. But not its entire product. Pop cola, which is one of the product owned by the Coca-Cola Company, will rollback the price to compete with the RC Cola. And also the Coca-Cola Company will recycle bottles to conserve in expenses for manufacturing.

2.) The second idea is to advertise more on the television and get a popular endorser, and promote the image of the products. And to put more billboards to popularize the product and grabbed attention from the consumers.

3.) The third is to have promo like free Coca-Cola designed Spoon and fork, Plate, Smiley glasses. This promo aims for consumers to bought Coca-Cola products. The instruction in this promo is show 6 any combination caps of 1.5 liters of Coca-Cola, Sprite and Royal to claim 1 pair of spoon and fork, 1 plate or 1glass in participated Coca-Cola retailers. This idea can helps the company to sell more products but the expenses may will be maximize, so the profit will minimize.

4.) The fourth idea is create a retailing contract in the selected stores. And the contract contains that the retailer can get a free cooler of cola in exchange that they will sell coca-cola products only within 5 years. This idea is to sell the product into the retailers and to lessen the sales of the competitors.

3.) Evaluating Alternatives

1.) The first choice is maybe effective because it can grab consumers from the competitors and it can lessen the expenses in manufacturing. The aim of this is to grab more consumers and to conserve materials for manufacturing. If this solution was success, the sales and production will increase, the expense will decrease because of conservation and it can help to the environment to reduce waste; and most of all, it can cause an increase in profit because less in manufacturing expense, more consumer and more products sold.

2.) This idea is very complicated because a popular endorser is very expensive in their talent fee. And the success is not sure because the advertisement is depends on the opinion of the public. If the advertisement did not grab the attention of the public, it was automatically a net loss. And not all improvements of sales are depends in the billboards and advertisements.

3.) This promotion can also cause a complication. Maybe the people will not like the promo or maybe the prices will be out of stock if many people will be qualified in the promo. Or either it can cause net loss if the profit in 6 cola is lesser than the price of the prizes.

4.) The fourth solution maybe fails because this contract maybe violate. And maybe the price of the cooler may not be reimbursed of the CocaCola Company in the sales within 5 years. It can cause net loss again.

4.) Making the Choice

The most right choice in the business is the first idea because it benefits a lot. First was the increase in the selling, second is the conservation and being friendly in the environment, third is decrease in manufacturing expense. This choice of decision is also acceptable because it cant cause harm to the company and it is the best choice among the 4 choices because it is very convenient and conservable choice. The third choice is good because it can increase also the sales of the company but there are some possibly problem in promotion and this is very

dependent in the situation and reaction of the consumer and this one is not conservable than the first choice.

5.) Implementing the Choice

If the choice is implemented:

What problems could this action cause? People may tend to patronize and shift their preference to Pop Cola.

What can we do to prevent this Problem? We will continue to advertise the Coca-Cola premium products and make it always and easily available to consumers.

What unintended benefits or opportunities could arise? It can eliminate competition and reinforce Coca-Colas domination in the beverage market.

How can we make sure they will happen? We can make sure that it will happen because the in terms of quality, Pop Cola is better than RC Cola. And only the price is the consumers in consideration. And in the tough times, the people is seeking the cheaper product. So if the Pop Cola is cheap, the people will patronize it.

How can we be ready to act when the opportunity come?

I will produce more products to prevent scarcity and for the continues to success.

6.) Evaluating the Decision

Since the choice was implemented starting January 2009, Here is the report until the current:

Year 2009 January February March April May

Coke Pepsi
4,134,621 3,948,924 3,156,187 3,498,944 3,597,976 3,995,742 3,128,978 3,056,622 3,295,658 3,314,723

RC
3,464,678 3,357,789 3,289,302 3,318,402 3,629,203

June July August September October November December

3,563,157 3,582,946 3,897,065 3,728,469 3,645,889 4,162,301 N/A

3,028,312 3,197,945 3,295,321 3,108,498 3,526,305 3,457,931 N/A

3,385,945 3,214,212 3,254,654 3,059,631 3,564,987 3,784,211 N/A

The decision should be continue and implemented always because the result is good. The Coca-Cola Company is the number one in selling of beverages in 11 consecutive months in this year; and we hope that the Coco-Cola Company is still number 1 in this December for unending succes