ReBranding Mecca Cola.pdf
Short Description
Rebranding Mecca Cola as Mac Cola...
Description
2013
MAC COLA-Re Branding Mecca Cola Brand Management
MUHAMMAD AHMAD IFTIKHAR LAHORE BUSINESS SCHOOL 2013
Table of Contents Page No. 1.) Executive Summary --------------------------------------------------------------------------------------3 2.) Introduction of the Company --------------------------------------------------------------------------4
A brief Introduction to the Beverage Industry --------------------------------------------------------4 Major Competitor in the context of Pakistan-------------------------------------------------------4-5 Mecca Cola ------------------------------------------------------------------------------------------------5 Products by the Company----------------------------------------------------------------------------5-6 3.) Re-Branding Of Mecca Cola-----------------------------------------------------------------------------6
Name of the Product-------------------------------------------------------------------------------------6 Brand Philosophy-----------------------------------------------------------------------------------------6 Target Market---------------------------------------------------------------------------------------------7 Competitors-----------------------------------------------------------------------------------------------7 Price------------------------------------------------------------------------------------------------------7-8 Packaging---------------------------------------------------------------------------------------------------8 Television Commercials----------------------------------------------------------------------------------8 Market Penetration------------------------------------------------------------------------------------8-9 Push Strategy---------------------------------------------------------------------------------------------9 Ambush Marketing---------------------------------------------------------------------------------------9 SWOT Analysis--------------------------------------------------------------------------------------------10 4.) Advertisement Campaigns------------------------------------------------------------------------------10 Teaser Advertisement------------------------------------------------------------------------------------------10 Pamphlets----------------------------------------------------------------------------------------------------10-11
Teaser Billboard-----------------------------------------------------------------------------------------11 Print Advertisement--------------------------------------------------------------------------------11-12 Car Rally---------------------------------------------------------------------------------------------------12 Television Commercial-------------------------------------------------------------------------------12-13
Billboard------------------------------------------------------------------------------------------------13 Social Media Advertisement------------------------------------------------------------------------14 5.) Future Strategies of Mac Cola------------------------------------------------------------------------14
Market Development-------------------------------------------------------------------------------------14 Diversification-------------------------------------------------------------------------------------------14-15 Referral Marketing----------------------------------------------------------------------------------------15 6.) Story Board-----------------------------------------------------------------------------------------------16
New Year-------------------------------------------------------------------------------------------------16 University Events----------------------------------------------------------------------------------------16 Moving Advertisement---------------------------------------------------------------------------------16 Welcoming Ramadan-----------------------------------------------------------------------------------16 7.) Conclusion-------------------------------------------------------------------------------------------------17
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Executive Summary Every element of the brand has its own importance and it reflects the philosophy of the brand. These elements of a brand are used by the companies in order create a specific position in the mind of the consumers. In the past, Mecca Cola has created an association with the Pro-Muslim consumer of the world by using Mecca; a holy name which reflects their brand philosophy. However, they are successful to some extent, but when they entered Pakistan back in 2003; these strategies were proved to be a disaster for them. We have tried to highlight their shortcomings and recommend to form different strategies according to need of the time to be successful in Pakistan.
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Introduction to the Company: A brief Introduction to the Beverage Industry:
In 1767, Englishman Joseph first discovered a method of infusing water with carbon dioxide to make carbonated water. That day was a breakthrough in the beverage industry and since that day this whole new market came into existence. To think to it as a business Joseph never intended that, it was just a lab experiment that went good and a new kind of water was made, even at that time Joseph had no idea that in the coming years this product ill play a ajo ole i this old’s eooy. No eey oe of t his world has some kind
of carbonated water present in its shop. The beverage industry refers to the industry that produces drinks. A soft drink is a beverage that normally contains water usually a sweetener and usually a flavoring agent. This Industry has played a major role in shaping the drinks in world. Soft drinks are now mandatory products in every households and every formal occasion. In the early 18th century the first official beverage industry came into existence, using the formula created by the Englishman the industry started making carbonated drinks and selling it into the market. The recipe was new to the people and so was the taste so it gripped the market rapidly, and as with any new product soon everyone was thinking of investing into this new industry. With each investment came new flavors and innovative ideas. Soft drink is the means of eradicating thirst and feeling refresh. Major Competitor in the context of Pakistan:
With all the gold rush in the beverage industry, it had to come to Pakistan because of the high population rates. It was Pepsi who first entered the Pakistani market. Soon the industry boomed in Pakistan as this was a new thing, then Coca-Cola also made its industry in Pakistan. For quite number of years these two giants battled each other for the Pakistani market. The market for the soft drinks was huge in Pakistan as this is a developing country and its needs grow day by day. But other theses companies had very limited product range at the start because they did not have any local competitors. Soon the local people started understanding the huge scope of this industry and thus the local companies came into existence. In late 1950 the first Local product came to the market by the name of Pakola by Pakistan beverages. Then many small companies started their startups like Shandy Cola RC Cola etc. They targeted the people with the rural areas with low price and low quality. They had no specific brand image. They just wanted to make sure that something was being done in order to gain profit. Their aim was not to compete with Pepsi or coca-cola. But then Gourmet cola make into market. With the aim to break Pepsi and coca-cola market. They did large amount of investments and had a proper game plan. With the brand Gourmet 4
already established in the market I would be easy for them to sell. They did break some market. Then Mecca cola aArab based company also entered the market, but due to and promotion and advertisement strategy it could not fit into the current market arrangement and soon the product failed in Pakistan. The major competitors still are Pepsi, coca cola and gourmet. Mecca Cola:
Mecca-Cola also referred as the Muslim drink is a cola-flavored carbonated beverage. The flagship product of the Mecca Cola World Company, it is marketed as an alternative to U.S. brands such as Coca-Cola and Pepsi-Cola to "Pro-Muslim" consumers. The Philosophy behind this brand was that the other major giants i.e. Pepsi and coca-cola are funded by the United States and as to their hatred for the Muslim countries TawfikMathlouthi launched a company called Mecca cola to support Muslims. Its name came from the Holy city Mecca and the company decided to fund Palestine for their development. The inspiration behind the launch of Mecca cola was an Iranian Cola brand alled Za Za Cola. Ia did ot allo ay othe ola opay to sell i thei outy
expect their own brand. Part of its corporate philosophy is, according to the Muslim charity precept, to support charities, and in particular to help the Palestinian people. Products by the Company: •
Mecca Apple.
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Mecca Cola Regular.
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Mecca Cola diet
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Mecca Orange.
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Mecca Lemon
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Mecca aqua
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Mecca Milk
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Mecca Energy
Mecca-Cola was launched in France, November 2002. It is now sold in some parts of the Arab World as well as in certain regions of Europe. It has also been bought and disbursed in certain parts of the United States, Britain, India and Canada. While the product was created in France, the company is currently based in Dubai in United Arab Emirates.
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This cola promises to help the people of Palestine on every sale they make. This is a way to unite the Muslims says the CEO of the company. Now the Cola has entered the European market and many Muslims are inclined towards buying this, it will be a major setback to the other companies. The company wants to go global in the coming years. In addition to several different presentations of its cola, the company also sells arrange of fruit-flavored soft drinks under the Mecca-Cola name. The company won the sponsor of — and Mecca-Cola the official drink of the Islamic Conference (OIC), held in Malaysia. Carbonated drinks 2003Summit of the inks have become part of the culture in Pakistan and the multinational companies have maintained standards over the years to provide the nation with high-quality drinks. Rural areas of Pakistan have driven sales of carbonated drinks to new heights as more than 60 percent of the population resides in rural areas and young consumers are more attracted to advertising. Pepsi is the most popular and leader brand in the Pakistani market and is consumed by children and adults alike. Coca-Cola is the second. The target markets of Mecca cola was the same of Pepsi i.e. every person who can drink carbonated drinks. But obviously the youth is the deciding factor among any brand. In Abu Dhabi Mecca Cola arranged some car rallies. In Pakistan no promotional campaign was lauhed poaly eause fe NGO’s started protesting against its name. When it was
introduced in the market the price of 1 liter bottle was PKR 50.
Re-Branding Of Mecca Cola Name of the Product
The most crucial element for a brand is the name of their product. As it is the heart of the brand the emphasis should be on it. Mecca Cola the name of their product reflects their brand philosophy and their targeted market to some extent. Mecca is a Holy name and Muslims have a strong belonging with it. No one will tolerate such a Holy name to be publicized on a soft and at the end thrown in dust bins or on roadsides. The basic purpose to re-launch the brand is to overcome the shortcomings to get better outcomes. We have renamed the product as Mac Cola to eradicate that factor which is offensive and hurts the feelings of Muslims community and it also indicate their target market. Brand Philosophy
Mecca Cola was first launched in France in 2002 as a replacement of Coca Cola and Pepsi targeting the Pro- Muslim consumers. Their philosophy is to support charities specially the people of Palestine. Their strategy is to attract the customer by making them realize that by having a Mecca Cola product instead of those U.S brands they are doing a noble cause by 6
disagreeing with discriminating behavior for the innocent people. The company claims that they donate 10% of their total profit for their rehabilitation. At this moment in time, we have altered the brand philosophy to an extent. We are now focusing on the quality of the product. Our focus is to provide best quality product at a reasonable price. Which enable the company to cater a large segment of the market, those who are price conscious but on the same time demands for a good quality product. Target Market No More Drinking Stupid, Drink with Commitment . It is uite lea fo the sloga
of the Mecca Cola Company that which target market they are catering. When the product was first launched in Pakistan, the target market of the Mecca Cola Company was the proMuslim consumers. We believe that the selection of target market is a very important element in the success of the brand. If your target market is not healthy enough, you cannot survive in the market. What we have done it that he have totally change the target market of the Mecca Cola from Pro-Muslims to the consumers who prefer a good lifestyle and enjoy their lives. The populatio of Pakista if e talk i tes of youth is oe tha 50% ad that’s the aea
or the population segment that Mac Cola will be targeting. It quite a huge target market and effective TVCs can attract a large number of people from it along with the associations created in the advertisements. Competitors
Globally, they are many competitors of the Mecca Cola company and if we talk in the perspective of Pakistan, when it was first launched 10 years back, the major competitors were Pepsi & Coca Cola. The economic conditions of the Pakistan have actually created a gap in the market that needed to be filled by someone. These conditions have squeezed the purchasing power of the majority of people. Now with the totally new brand philosophy and marketing campaigns, the immediate competitors of Mac Cola are Gourmet Cola, RC Cola and in the future we will targeting the consumers of Pepsi and Coca Cola. We believe our marketing campaigns will be a tough ask for our immediate competitors. Price
As far as the price of Mecca cola is concerned, at the time when it was introduced in Pakistan back in 2003, the introductory price was Rs. 35 for the 1.5 liter bottle and at that time the nearest competitors of Mecca cola were Pepsi and Coca Cola and the price of Pepsi & Coca Cola at that time was Rs. 45 for the same size.
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Price is a very important element and it should be kept in mind that your product has the worth that the customer is ready to pay for it. The price of the Mecca Cola which has now been renamed as Mac Cola, the first thing that is to be made clear that we have totally changed our target market, now we are targeting the consumers who are a bit price conscious and quality conscious as well as they also want to consume such products. Our immediate competitors are Gourmet Cola, RC Cola, Amrat Cola & etc. These brands are also making their position strong in the market with the passage of time. Our introductory price will be Rs. 65 for the 1.5 liter bottles all over the area were our product has been placed. We are also introducing the half liter and 250 ml regular bottle and the prices will be Rs. 30 and Rs. 12 respectively. Packaging
Packaging plays a vital role as a medium in the marketing mix, promotions campaigns, in defining the characters of the product and as an instrument to create brand impact identity. Previously Mecca Cola was packaging its product in pet bottle with red wrapper Mecca Cola written on it. Keeping in view the changing trends of consumer buying behavior we have come up with an entirely different color in order to differentiate from the competitors. The shape of Pet bottle is slightly changed to give the customer a sense of improvement with a purple background label. A bottle is added in the logo with Mac Cola written on it. It defines the characteristics of product as well the energy among the youngster and it also attract the attention by having such a unique color on a beverage product. Television Commercials
It is one of the best ways to interact with the customer, or to inform them about your brand. A television commercial helps the brand to create a relation with the targeted segment of market. Customer feels themselves related with the characters which drag them towards the product. As Mecca Cola was previously targeting the Pro- Muslim community their Commercials were based on a typical Muslims who are more concerned with their brand philosophy than with the taste. Now, as Mecca Cola is re-launching their brand in Pakistan, the focus is to capture market by providing them with better quality rather than emotions. Their strategy is to target the largest segment of the local market, the young generation who are always ready to accept the change. For that purpose television commercials have been designed to create a sense of connectivity between youth and Mac Cola. The commercials are based on how the youth of Pakistan spent their lives. Market Penetration
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Market penetration is the activity which primarily focuses on promoting a product through low prices, advertising or by bundling. This market strategy is suitable for an industry which has entered the maturity stage like the beverage industry in Pakistan. The new entrants apply this strategy in order to make their mark in the market. Due to the poor economic condition and day to day increasing inflammation rate consumers are becoming more and more price sensitive, they want to have a product which is of good quality and according to their pocket size. We are going to penetrate the market by targeting the youth and price conscious people. Analyzing the beverage industry very minutely we have priced our 1.5 liter bottle PKR 65, 500 ml PKR 30, 250 ml PKR 12. A large amount of money spent of various advertisement campaigns to communicate with customers and make them aware about the improved product by Mecca Cola Company. We have decided to enter the market during the summer season when the demand of beverage product increase to greater extent. As the target market of Mac Cola is the youth of Pakistan the Company has decided to launch their product in the month of March, 2014 the time when the T20 World cup is scheduled, to make this event more memorable for the cricket loving nation. Push Strategy
Push strategy is all about placing your products in the whole market which can be more specifically called as purchasing point of the consumers. This should be kept in mind that when one is using this promotional strategy, a huge amount of investment is also necessary to be done on the advertisement campaigns. For the very first time when Mecca Cola was launched in Pakistan, they use the push strategy and they distributed the products ey effetiely i the aket ut the easo they ould’t aptue the aket sha re was that they did’t sped eough o the adetiseet apaigs ad eetually thee ee
unable to meet the sales target. To be successful with the push strategy, a good advertisement campaign plays a very vital role. In order to capture the position and create awareness among the people about the brand, teasers, billboards, and TVCs have been used to create hype in the market and let the target market know about our product. Moreover, the CAN shaped freezers will also be placed in the convenience stores so that the product is visible for the customers. With the use of the latest technologies, the distribution channels will be made more strong and responsive. We will be going with the same strategy but with slight changes as already mentioned above. These entire things can prove very fruitful in the end. Ambush Marketing
Marketers use this marketing technique to associate themselves with specific events so it became easy for the consumer to relate the product whenever these events took place. 9
Mac Cola has decided to enter the market at the time when T20 world cup is scheduled to create an association with the event. Our focus is to cover each and every event related with youth of Pakistan. In the very next month of August the company plans to hold an event to highlight the element of patriotism, different advertisement are planned out to cover each and every event like Eid, New year Eve and other festivals except that we going to organize a car rally which is unique in its nature to highlight the element of speed for the first time is Pakistan a beverage company is holding an event for the locals. Free samples of Mac Cola will also be distributed among the audience to create an impact.
SWOT Analysis Strengths
Low price. Have enough resources to attract the consumer through promotional campaigns. Edge over the local manufacturer, quality and taste vise.
Opportunities
Having larger target markets. Evergreen product life cycle. Attract price conscious people. Increasing Demand
Weakness
Compete with multinational giants in the future. Emotional blackmailing by the brand. Loyalty of customers with their favorite drinks.
Threat
Price war created by the competitors. Survival of the fittest. Economies of scale achieved by the competitors.
Advertisement Campaigns Teaser Advertisement We all see enormous of ads regularly. Now days, companies are working a lot in this section because advertising no doubt plays a very important role in success of a brand. For this, brand managers are struggling a lot to conquest their competitors through their sole irreplaceable and creative advertisements. Immense researches have been carried out that how a single ad can pursue your customer to consume your product. An average person can see more than 50 ads per day. The thing is how to highlight specifically your product within those 50 ads, so that your product/brand can grab your target customer s attention. Moreover, that ad should be much compatible that it leaves some footprints in viewer mind, something that can make your customer think about your brand. For this we have come up with a very attractive teaser commercial that will tend to create a hype of revival of something real big. Ad start with the demolition of a building, then new constructing building shown with greater hard work and perfection between 10
these two scene a very prickly and inspiring quote has been placed that actually creates a sese eial i iee’s id.
Pamphlets Mac-Cola’s paphlet has a lage uestio ak o its uppe side ith a lie eeath it Guess Who’s Bak I To that ould ga the attetio of the oe ho holds that
pamphlet. Thee is oe disadatage due to hih ostly people do’t like paphlets and that
is pamphlet can pollute environment. We can overcome it by using eco-friendly material (recycled paper). Well is has a number of benefits as a pamphlet can be mailed, delivered or handed out to a target customer more over it saves time for both advertiser and customer, rather to give a thorough catalog to read out, customer prefer to read a pamphlet instead of it.
Teaser Billboards Generally we passed by hundreds of billboards every day but what attracts us the most? That is definitely something different or not common. So the purpose of teaser billboard is to grab attention of the customer. Well what we need is, we want to create a oo ad a kid of hype like ho’s is oig ak. That e olo, logo eig plaed i
customer subconscious mind, so that when we reveal our self all those who watched our teaser billboard can associate and remind themselves that; ok that billboard was for this particular brand.
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Print Advertisement Many people think that print media is no more effective as it was before internet but researchers have said that it is one of major channel of advertisements. There are many benefits of print media like a print piece is a physical thing. Magazines and newspapers can stay in houses or offices for months or years. Moreover, print ad can help to reach the target market as well. By keeping all these facts in mind we have decided to go for print media as well. Same strategy will be applied as first we came up with teaser then with the half page fully descriptive ad of our product.
Car Rally Mac Cola will arrange a Car Rally competition to create some awareness and some positive word of mouth. This is a part of our advertisement campaign; the billboard for this event will be placed to aware the people about it. Basically this sport is not mature in Pakistan but people want such an event to be organized. Our strategy is to differentiate by holding such event from our competitors existing in the market. Through this strategy we can attract a large number of youth which is a major p art of our target market.
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Television Commercial (TVC) According to a recent study, the average person spends more than four and a half hous a day i fot of the teleisio. To aptue osue’s suosious id TV is the
perfect option because when a viewer see same ad again and again during his/her favorite poga it defiitely take plae i osues osious ad suosious id ad that’s ey ipotat i a akete’s pespetie. Oe of the eefits of TV adetisig is its aility
to communicate with a very large audience. Mac Cola first TVC has three segments which highlights the everyday routine of the youth. It gives a feeling of excitement, thirst, sportsmanship, refreshment and enjoyment, moreover some cheering students shown in this ad who are making Mac Cola a part of their enjoyment. Other scene shows that how two drivers refresh themselves in the traffic by drinking Mac Cola.
Billboard It is one of the best medium to make the audience aware with your brand. People need something to perceive that can be visualized. Strategically, billboards are one of the best media for promoting your business. Location matters a lot in billboards like we have to capture most strategic places in Lahore as well as other big cities of Pakistan. Those areas are quite effective from where a huge number of people pass everyday such places are like Kalma Chowk, Liberty Roundabout, F7 Islamabad, Blue Area, Ghanta Ghar, Platinum Mall, and defense (Karachi). These are some preliminary target places for billboard advertisements of Mac Cola. 13
Social Media Advertisement Social Media is one of the most reliable ways to connect and stay informed about the most recent developments in the market. Study tells us that this channel of advertisements can boost up your sales up to 20%. These factors was neglected before but o y keepig all those fatos i id e ade ou Page’s o Faeook, titte, Blogge
and Google Plus.
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Future Strategies of Mac Cola Market Development
Market development is all about discovery new areas where you can introduce your product or service. Initially the Mac Cola has been re-launched in the urban areas more specifically big cities of Pakistan were the larger part of our target market exist. With the passage of time Mac Cola will also be re-launched in the suburban and rural areas which are quite a larger part of the whole population. In this way an increased market share can also be observed and it will be also a tough ask for the multinational competitors who have also positioned themselves quite effectively in these areas. Diversification
Majorly, there are 2 types of diversification strategies; related and unrelated diversification. These strategies are used for business expansion and when the similar products as offered previously are introduce in the product line, then it is called related diversification. On the other hand, when the product line is increased by introducing different products which have no relation with each other, then this strategy is called unrelated diversification. Most of the companies go for the related diversification strategy as they find there rhythm in the market and it has been more successful. Mac Cola will also go for related diversification in the future as it has done globally. After a certain period of time, energy drinks, mineral water, fresh juices and other flavors of beverages will also be introduced to enhance the product portfolio and to meet the demand of the customers. This will also help in revenue generation along with the increase market share of the company. Referral Marketing:
Referral marketing means to maximize the word of mouth with the passage of time. It is done by encouraging, informing and promoting the product among the consumers. The market is changing by every passing day; we have formed a number of strategies to face the upcoming challenges in the best manner. We truly understand that how important is it to satisfy the consumer needs by delivering them what we have promised. Our prime focus is to maintain the quality of our product because it is the only element which drives the customer to repurchase it. We believe that a satisfied customer is a nonpaid sale person who endorse or refer other to purchase it.
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Story board: New Year
We have planned that to do a oet o the Ne Yea’s Ee. We ill e allig 2 Pakistani bands and there will be food stalls by other brands. The event will be fully sponsored by Mac cola. Different brands can put their food courts there. We will give free drinks to the people. All the advertisement will be done all over Lahore that Mac cola is organizing an event. The Target market will be youth and the families. They can hang out on New Year, eat good food and enjoy the drinks. This will target the sensory brain of the people. They will have a positive image of our brand that we support entertainment. University Event
Every year LUMS host number of events. Our brand will be the major sponsor of the events. We want to target the major universities of Pakistan and sell our product. This will be a way to advertise our brand and get the sales high. Moving Advertisement:
Like other brands we will also paint the cars with MAC cola colors and then they will be on the roads. We will advertise our brand in this way so that we can make a positive iage o people’s peeptio aout ou ad.
Welcoming Ramadan:
To advertise our brand in Ramadan we will lower the price and also be a sponsor of a Ramadan shows on the television because in Ramadan most people watch those shows. The more people see it the more we will be popular.
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Conclusion To be successful in the market it is important to form and execute strategies in an effective manner. A number of companies have failed because of the poor execution methods, same is the case with Mecca Cola although they are functioning globally with a unique brand philosophy and their mission is to support the Muslim community. Unfortunately, the company was not able to make its m ark in Pakistan because they have an offensive approach towards the U.S based Companies. They were exploiting the emotion of consumer to sell their product in the past. The market of Pakistan has importance in its own nature. A country with the population of more than 18 million is a big opportunity for any Company to start it operations. Mecca Cola has successfully identified the loop holes and formulate their strategies accordingly. In the past, people have issues with the name of the brand as it named on the Holy City Mecca, we have renamed the brand as Mac Cola. At the same time we are now targeting the youth of Pakistan which almost the 50% of the whole population. Mac Cola has invested heavily on various promotional campaigns to make the nationals aware about its improved product. The main objective is to provide a quality product at reasonable rates. Different strategy are formulated to get the desired re sults and now the Company is about to launch its product once again.
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