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Submitted on:
December 21, 2019
Promotional Strategy of RC Cola
MKT337.6
Prepared and Submitted by
Sl. Name Id
1. Barirah Alam Samira 1330076630
2. Abu Horaira Kamal 1330504630
3. Tarana Eva 1421605030
4. Nurun Nessa Nuri 1512968030
5. Samiha Anwar 1711003030
6. Sheikh Shadab Ahmed 1711366030
North South University
Submitted to:
Dr. Farzana Nahid,
Assistant Professor,
Department of Marketing &
International Business,
School of Business & Economics
December 21, 2019
Dr. Farzana Nahid
Assistant Professor
Department of Marketing & International Business
School of Business & Economics
North South University
Subject: Submission of MKT337 Project Report
Dear Ma‟am,
We state that we would like to submit our report on new promotional strategy of RC Cola as
per your instruction. In this report, we have put effort to meet all of your requirements. We
would be glad to revise any of the section if necessary in future.
We therefore hope that you would be kind enough to accept this report.
Sincerely yours
Barirah Alam Samira Nurun Nessa Nuri
Abu Horaira Kamal Samiha Anwar
Tarana Eva Sheikh Shadab Ahmed
Acknowledgement
We would like to demonstrate our humble gratefulness to Dr. Farzana Nahid, our course
instructor since she has instructed us to be a part of this project of making a new promotional
strategy. We have found this project truly educative. We hope that the lessons we have
received from this will be helpful for our future professions. Moreover, she has observed us
closely throughout the period while we were working on this. She was always there for our
any necessary help.
We wish to express our gratitude the sources of the information, especially the official
websites of RC Cola. Also, YouTube has been another source to us to watch the previous
promotional campaigns of RC Cola. Besides, we have collected our necessary information
from various sources. All of them have seemed useful. Without these sources, this would not
be easy to conduct such a project.
Finally, would be thankful to all of the members of our group. They have been significantly
industrious. All of them have sufficient willing contribution in this project. We are fortunate
to work with a group like this.
Executive Summary
This project is prepared on a new promotional plan for RC Cola. RC Cola was one of the
leading beverage brands in Bangladeshi market. However, in spite of being a global brand,
this could not preserve the large market share. Therefore, it requires a new promotional
strategy to overcome the situation. Firstly, this report includes the theme of the proposed
campaign. Secondly, the challenges exposed during the period of time are discussed in detail.
Several topics are covered in this section, such as, Identify the following though primary and
secondary research, and SWOT analysis. Thirdly, the discussion about the target audience is
also elaborated in the report. Similarly, the purpose of the project is incorporated in this
project report. This can be found as campaign objectives. Likewise, the creative brief is
elaborated in detail in the report. Multiple topics fall under this section that are brand
personality and client-agency communication model. Next, this is described that how the
campaign would be executed. Finally, the selection of the media and the promotional budget
of RC Cola are explained in the last section of this project report. This is expected that this
plan would help RC Cola to recover its market share as well as the business.
Table of Content
Sl. Name Page no.
1. Brand Overview 1
2. Introduction 2
3. Campaign Theme 3
4. Identifying Challenges Through Research
 Why RC Cola needs Promotional makeover
 Identify the following though primary and
secondary research:
 SWOT Analysis
4-7
4-5
5-6
6-7
5. Identifying Target Audience 7-8
6. Campaign Objectives 8-12
7. Creative Brief
 Brand Personality
 Client-agency Communication Model
 Appeal
12-14
12
12-14
14
8. Execution 14
9. Media and Budget 15-18
10. Conclusion 18
1 | P a g e
Brand Overview
RC Cola is a global brand originated in the USA. This is one of the leading carbonated
beverage brands in that country for long period of time. So, in 1994, Partex Group, a large
group of company of Bangladesh decided to bring RC Cola in Bangladesh. Thus, Partex
Group opened a company called „Partex Beverage Ltd.‟ in 1996. At that time, Partex
Beverage began to manufacture and sell RC Cola with their other products. Since then, RC
Cola is conducting business in Bangladeshi market. (Partexbeverage, 2019)
In the first decade of the twenty first century, RC Cola used to promote the products
properly. At that time, the business was satisfactory. Though there were stronger competitors,
RC Cola could successfully survive in the market and the customers could easily recognize
this brand. However, gradually, the sales of the products of this brand started declining.
Likewise, the promotional activities also have started decreasing as sales falls. Currently,
there is no campaign of RC Cola in the market.
2 | P a g e
Introduction
This report is based on a new promotional strategy for RC Cola. As mentioned in the Brand
Overview section, RC Cola‟s sales is not as good as before, still it is declining. This indicates
that the promotional strategy requires a revision. This is the purpose of this project.
To create a new promotional strategy, this project has gone through some specific steps.
Firstly, the campaign theme is selected. Secondly, the challenges are identified. Thirdly, the
target audience of the campaign is also identified like the challenges. Then, the campaign
objectives are determined. Next, the creative brief is elaborated along with the execution.
Finally, a discussion about the media and budget is also included in this project. In this
project, the new uses of the IMC tools are explained. Likewise, the appropriate media
vehicles of these IMC tools are proposed here.
3 | P a g e
Campaign Theme
An advertising campaign is a set of interconnected and harmonized marketing
communications activities that focus on a single theme or idea that shows up in different
media across a specified time period. The campaign theme is the main message that will be
apprehended in the promotional activities and is the key focus of advertising campaign, as it
sets the motif for the sequence of individual advertisements and other marketing
communications that will be used. A campaign theme must be a strong idea, as it is the prime
message that will be conveyed in all the advertising and other promotional activities. The
theme for the advertising campaign is usually expressed through a slogan (tagline) that
reduces the key idea into a few words or a brief statement.
The brand we have selected for our research is RC Cola Bangladesh which is a beverage
brand.
Its previous advertising campaign has not been effective enough to create a more favorable
image among the consumers than the two most dominant competitors in the industry- Coca
Cola and Pepsi, resulting in failure to capture desired market share due to low level of sales.
Quite evidently, Coca Cola and Pepsi are the two biggest fishes in the cola industry of
Bangladesh. These two brands have been leading the industry and competing each other for a
significant number of years now. It wouldn‟t be wrong to say about most of the consumers
that whenever they feel the urge of drinking a cold beverage, the first product they consider
for purchasing is either Coke or Pepsi. In this circumstance prevailing in the market, the
prime challenge for any other brand is to impel the consumers to try a different drink instead
of sticking to the common brands.
Considering both its own and competitors‟ position in the market, the campaign theme of the
new advertising campaign of RC Cola will focus on inspiring consumers to choose RC Cola
over its competitors in order to taste something different and more likely, better!
Keeping the campaign theme in mind, the new slogan (tagline) of the will be “Break the
flow!”, which indicates to the appeal of the brand to get out of the flow instead going with
the flow by choosing RC Cola over the same old and common beverages.
4 | P a g e
Identifying the Challenge through
Research
Why RC Cola needs Promotional makeover:
RC Cola wants to target bigger market share through the new promotional strategy.
Therefore, the promotional activities would be revised. Due to acquiring a bigger market
percentage, RC COLA deliberate to go for aggressive marketing. This phase of the file
explains the promotional activities of RC COLA. The specification of five factors creates a
promotional blend or promotional plan. These elements are private promoting, marketing,
sales merchandising, direct advertising, and exposure. Promotion is a totally essential
difficulty for any production business enterprise. Every corporation secures or sets a separate
unique budget for promotional sports. RC COLA is not any exception. It has a separate
finances allotted for promotional sports. As it is a tremendously new corporation it places its
utmost emphasis on the product first-rate. It is striving to get to the near function inside the
market with proper first-rate product. The fundamental part of the total budget is directed on
the manufacturing. Promotion covers a noticeably a medium element. RC COLA directs its
budget correctly and implements effectively to have a right promotional pastime. It is one of
the powers of RC COLA that it may utilize its small resources in a proper manner to compete
within the huge market of advertising and media technology.
1. Advertising: RC Cola is deliberate to use advertisement to attain the mass market. Among
the channels of advertising, television advertisements, and print advertisement are selected.
Apart from them, this corporation chooses a few uncommon advertising and marketing
channel, inclusive of, bus painting, Tv commercials like “bhai shob khobor ekkhan” and
“amra Rc valobashi ” which spreads everywhere in in our country which humans overlook
already.
2. Direct Marketing: To capture the B2B marketplace, direct advertising by no means can
be avoided. So, this company can plan to send newsletters, emails to the company customers.
3. Digital Marketing: In the age of contemporary information technology, digital
advertising and marketing is absolutely critical. Again, a portion of the target marketplace of
RC COLA consists of the adolescents, who are regularly exposed to the digital campaigns.
So, this company can plan to behavior digital advertising.
5 | P a g e
4. Sales Promotion: sales promotion may be very effective and useful if given within the
proper time. To enhance the sales RC COLA would pay incentives to the shops. Also, that is
proposed in order that the individuals of the sales branch get the inducement as well.
5. Personal Selling: To boost the brand consciousness, this employer might set stalls inside
the crowded locations, especially in numerous festivals. In those stalls, RC COLA might
provide diverse offers to the clients. Additionally, there might be a few additional functions
with the customers would like to experience.
6. Public Relations: The whole Partex group has strong reputation as it is doing business in
the country for so long. Partex Beverage is one many of the sister concern of Partex
Beverage. For that reason, no matter being relatively new, Partex Beverage is already widely
known too. So, the activities of the company require large coverage through public media.
As a result, the public relation of this organization is important. On the other hand, there may
be a plan to give sponsorships to various events.
Identify the following though primary and secondary research:
Current target market: RC Cola has focused every section of society from the all-age group including
adults, teenagers and children as its target customer. It has projected its brand as a beverage for
common hundreds. RC Cola has been interested by growing its marketplace share by penetrating in
similarly markets.
Types of current advertising practices:
Print Media:
1. Newspaper: Newspaper is the oldest and a famous media for advertisement of a
product. RC can start advertises their products in newspapers once more.
2. Magazines: RC cola can uses magazines also to place their advertisements.
3. Billboards:
4. Electronic – RC can use digital billboards within the massive cities.
Vehicle Advertisement:
In cities we will see maximum buses are getting used to place advertisement of various
products via extraordinary businesses. RC can place a few commercial at the buses which are
huge.
6 | P a g e
Use of media:
Electronic Media:
TV Commercials:
 Local Channel: Nearly 70% of people having a tv set watches the nearby government
channel in Bangladesh. it is wise to place an advertisement on government television
channel.
 Satellite Channel: More than 30% people having television set watches different Bangla
television channels. RC Partex beverages has been advertising their products on satellite
channels from the beginning in their journey.
Internet Advertisement:
Now-a-days, a lot of educated people have an access to the internet. So, RC can conduct
locations advertisements on different net web sites.
SWOT Analysis:
SWOT analysis requires a variety of brain storming. As a result, this challenge changed into
challenging. I got the possibility to assist the company in the same regard. Whilst running at
the SWOT analysis of RC COLA, we found some particular strengths, weaknesses,
possibilities, and threats. They all are mentioned inside the matrix below.
7 | P a g e
Strengths:
 Strong Brand recognition
 Effective distribution Channel
 Skilled and experienced
Weaknesses:
 Insufficient budget for promotional
 activities No insurance coverage
 Controversial image
 Lack of employee development
Opportunities:
 Increasing demand for soft drinks
 Demand for similar new products
 Change in customers‟ taste
 Increasing skilled job candidates
Threats:
 Stronger competitors
 Existing and potential competitors
 Increase in production cost
 Legal and political factors
 Declining market share
Identifying the Target Audience of RC
Cola
Here we have described in which way RC Cola has segmented their total market and targeted
which group of peoples as their target consumers or audience.
1. Geographic segmentation: RC Cola has segmented their market in one category which is
the domestic market.
Domestic market: They have divided their domestic market on the basis of urban and rural
areas. The company selected both urban and rural people as their target consumers.
2. Demographic segmentation: RC Cola has different demographic areas to segment their
market, such as, age and income.
3. Behavioral segmentation: RC Cola segments the buyers into groups on the basis of their
knowledge, attitude, usage pattern, or response to a product. Occasions, user status, and
usage rate are the behavioral market segments of RC.
RC Cola has targeted every section of society from the all-age group including adults,
teenagers and children as it is target customers. It has projected its brand as a beverage for
common masses. RC Cola has been trying to make its own target market. Therefore it has
adopted a penetration policy that will help it to reach both common customers of market in
8 | P a g e
urban areas and unchartered areas in the rural sectors. It faces competition from two rival
brands in the consumer market. The company has implemented competitive pricing and kept
its product prices at same levels with product prices set up by competitive brands so that its
prices seem affordable and cheap to consumers. The specification of five elements creates a
promotional plan. These elements are personal selling, advertising, sales promotion, direct
marketing .Promotion is a very important issue for any manufacturing company. Every
company secures or sets a separate specific budget for promotional activities. PARTEX
Beverage is no exceptional. It has a separate budget allotted for promotional activities. As it
is a relatively new company it puts its utmost emphasis on the product quality. It is striving to
get to the close position in the market with good quality product. The main portion of the
total budget is directed at the production. Promotion covers a relatively a medium portion.
PARTEX Beverage (RC Cola) directs its budget effectively and implements efficiently to
have a proper promotional activities. It is one of the strength of (PARTEX Beverage) that it
can utilize its small resources in a proper manner to compete in the huge market of promotion
and media technology. PARTEX Beverage‟s promotional activities are directed in different
categories. RC (PARTEX Beverage) is one of the promising companies in Bangladesh. This
company is now becoming one of the leading companies of beverage products in
Bangladesh. They are always trying to add new products, maintain the quality, introduce
modern machineries, and improve worker‟s skill in the whole country. People are also being
satisfied by consuming various products of RC such as RC Cola, RC Lemon, RC Orange, RC
Diet etc. than the others. RC is trying to keep their quality standard and attract the customers
through various promotional efforts throughout the country. RC is also trying hard to achieve
or reach the first position among the competitors by their effective marketing strategy. There
are some recommendations from the study that may influence customer preference towards
RC (PARTEX Beverage) in Bangladesh and also enhance the reasons behind the selection of
RC (PARTEX Beverage) in Bangladesh. These are: RC (Partex Beverage) should maintain
its product quality. RC (Partex Beverage) should introduce new variety to its product line.
Campaign Objectives
There are many objectives RC Cola can have, but the major considerations could be their
stage & position in the market. For a long time, this drink is no longer available in Dhaka
market. However, at times we can rarely find them in local stores outside Dhaka where the
clutter is less.
9 | P a g e
Hence, the campaign objective is to win the market share all over Bangladesh and beat
Pepsi and coke which are the two big competitors in the market. This objective is set because
in past RC Cola has been popular in the market which is no longer the scenario. This
objective might be difficult to achieve but is not impossible as RC cola has a positive brand
name which is a strong edge. Only thing needed is to formulate a right strategy and to make
adjustment to the product according to the strategy.
In addition, RC Cola should adopt a combination of Sales & Communication objectives to
make their presence dominant in the market. Their primary goal should be increasing sales
volume. Side by side, they should also focus on increasing their Brand image through
favorable attitudes to sustain in the long run from the fierce competition in the cola market.
Keeping the campaign theme & the new slogan “Break the flow!” in mind, we will be
promoting the product through AIDA Model.
Figure: AIDA Model RC Cola
Firstly, we will be creating awareness by differentiating RC cola from the clutter. We will be
creating awareness through Articles, Advertisements, Paid search or landing pages.
10 | P a g e
Furthermore, we will be promoting the drink through famous celebrities & influencers to
gain market attraction. They have many active followers who could be our potential target
customers in the beginning.
Figure: Examples of Print Ad & TV commercials
However, step by step we will move to expand our target market. Our campaign objectives
are SMART, which are Specific, Measurable, Achievable, Realistic, and Time-bound. It is
essential to identify our results of the objectives. Hence, SMART objectives will help us to
determine that our goals are reached, and target is maximized or not.
11 | P a g e
In the second step, we will be creating interest about RC Cola or anything that will create a
favorable attitute towards the drink. We will be doing this through Web content, Social
Media Blogs & Email-canpaigns.
Figure: Examples of Social Media contents
Finally, when awareness and interest is created about RC Cola - Break the Flow, we will be
promoting our product in such a manner that consumers desire to have it. We could be
distributing brochures as there will be creative flexibility & high receptivity or
involvemnet.
Furthermore, we will be going to different Universities like North South University,
Independent University, Bangladesh, Brac University, Dhaka University and engage students
to taste our product for free. Therefore, customers will tend to lead towards an action in the
fourth stage.
Hence, the campaign objective is to gain as much market share as they could to become a
market leader. For this massive marketing & rebranding we will be using Print media,
Digital media and television advertisements more as these three are the mostly used modes
of media in Bangladesh.
In addition, through our campaign objective we will be Repositioning our product RC Cola
in the minds of our target customers. The notion “Break the flow!” implies going against the
flow. We will be promoting through our campaign to choose our cola and not Coke, Pepsi or
any other brand. Changing people‟s taste rapidly is going to be very difficult but over some
time we can expect positive results. So, going against the flow would be choosing a
12 | P a g e
different brand cola for a change. Through a combination of heavy sales promotion &
positive brand image, in the beginning we will be triggering consumer‟s cola taste.
Creative Brief
In this section of the report, RC Cola‟s brand personality, process modeling of client-agency
communication, and usage of appeal is elaborated. Here, the appropriate personality RC Cola
should carry would be recommended. Likewise, a discussion on the relevant appeal for
establishing this personality of this brand is incorporated in this section of the report.
Brand Personality
The competitors of RC Cola have made the customers too loyal. So, to free up the captured
customers, RC is recommended to have a dynamic personality.
Analyzing the history, this can be undoubtedly stated that RC Cola used to possess a big
share of the Bangladeshi market once upon a time. At that time, this was one of the leading
brands in the beverage industry. However, this brand now needs to regain that possession. In
the earlier sections of this report, this is mentioned that the market of carbonated beverage in
Bangladesh is mostly captured by Coke and PEPSI. By observing the situation, this is found
that the customers are fond of those two brands. In fact, the customers have become such
loyal to Coke and PEPSI that they are reluctant to even try any other brand of carbonated
drink. In this situation, the market requires a break through to free the captured customers.
That is why; RC Cola has to have such a personality that can bring necessary change.
Therefore, the appropriate personality should be „dynamic‟.
Client-agency Communication Model
As previously mentioned, RC Cola is a brand under Partex Beverage Ltd. which is a sister
concern of Partex Group. The list of the companies under Partex Group, there is no
marketing agency. In spite of having no in-house agency, RC Cola has to deal with the out-
house agencies.
Currently, RC Cola works with multiple marketing agencies, such as, Swarup Agency,
Ogilvy Bangladesh, Expression Ltd, Top Mind, Ferial Communication etc. All of these are
13 | P a g e
out-house agencies. The way RC Cola communicates with the agencies is demonstrated in
this section of the report.
The communication between the agency and RC Cola is recommended to be through a
vendor. After the vendor come up with this client, the assignment would go through several
departments.
1. Account Department: The assignment would get into the agency through the Account
Department. This is the department responsible to maintain liaison RC Cola.
2. Strategic Planner: Then, this department would send it to the Strategic Planner. In this
department, the entire marketing plan would be prepared.
3. Creative Department: Creative department would be responsible for the preparing the
plan that in which forms the campaigns should reach the audience.
Account
Department
Strategic
Planner
Creative
Department
Media
Department
14 | P a g e
4. Media Department: Through the Media Department, the agency would deal with the
media. Moreover, this department would be also responsible for setting the campaign
budget.
After passing through all these departments, the entire promotional plan would be delivered
to RC Cola.
Appeal
RC Cola is recommended to use the emotional appeal. This brand belongs to the category of
cola drinks. Cola drinks are homogeneous by type. By using logic, the customers are not
expected to differentiate RC Cola among all the cola drinks. Moreover, the proposed tagline
is “break the flow!” which is not affiliated to the rational appeal. As a result, RC Cola is
recommended to use emotional appeal rather than rational. Among all of the emotional
appeals, humor and patriotism is selected.
Execution
A print ad has been created and planned to be published in the print media. Among the all the
print media, only the top selling newspapers are selected. This is an event-specific campaign.
So, this is planned to publish it only on the Victory Day, 2019. The print ad is given in the
following-
15 | P a g e
In this campaign, the message is not to support the flow. The opposite position to the flow
reflects RC Cola‟s new tagline “Break the flow!” Likewise, this is also strongly related to the
event Victory Day. Since this campaign synchronizes with the tagline, this can be an
appropriate one as an event-specific campaign.
Media & Budget Plan
The first step in developing a campaign budget plan is to start with the total budget available
to spend on a campaign. This budget figure works as a guardrail or constraint to keep our
plans in line with the available resources. Next, we have to think about the promotion mix we
have in mind. Will there be advertising? Digital or direct marketing? Any public relations
activities? And so forth. Then we will list the different methods and key tools you plan to
use, and then we will determine how much of our budget we plan to spend on each. The
promotional mix and budget allocation for media might be as follows:
Promotional Mix Elements Budget Allocated
28%: Radio $4200
13%: Guerilla footprint Marketing $2000
11%: Print $1600
11%: PR Materials (Yeti, Stickers, etc.) $1600
2%: Social Media $260
3%: Website $500
25%: Intern $3840
7%: Event $1000
100%: Total $15000
16 | P a g e
Once we have outlined the promotional mix and how we plan to allocate our budget across
different marketing communication methods, it‟s a good idea to put together a detailed
budget listing the specific elements that require out-of-pocket spending and how much they
cost. In preparing the detailed budget, marketers should conduct research by contacting
consumers to confirm that they are accurately affecting or not.
In the detailed budget, it is also useful to list everything and the time needed to execute the
plan. This gives the managers of the organization better visibility into the total cost of
executing the campaign. The following is a useful framework for developing a detailed
budget. The detailed budget in million for the same campaign might be as follows:
Media Mix
/Month
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TV 20 20 35 36 35 28 24 25 20 20 20 30
Radio - - 14 14 14 - - - - - - -
Guerilla
footprint
Marketing
- - 25 25 25 25 25 2 25 25 - -
Print 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4
PR
Materials
(Yeti,
Stickers,
etc.)
.14 .14 .14 .14 .14 .14 .14 .14 .14 .14 .14 .14
Social
Media
.02 .02 .02 .02 .02 .02 .02 .02 .02 .02 .02 .02
Event - - - 500 - - - - - 500 - -
17 | P a g e
Total 13.56 13.56 87.56 588.56 87.56 38.56 38.56 15.56 38.56 538.56 13.56 13.56
As you go through this detailed budgeting process, you may find you need to scale certain
elements of the budget up or down in order to fit within the total project budget. This
exercise helps marketer‟s think realistically about the trade-offs and how to ensure the
project makes the greatest impact possible with the available resources.
Media Budget from January to December
4%
4%
16%
19%
16%
6%
6%
6%
6%
9%
4%
4%
Media Budget from January to December
January February March April May June
July August September October November December
18 | P a g e
Conclusion
This can be stated that with the help of this promotional strategy, RC Cola may achieve a
strong level of customer preference. Moreover, this is a very challenging to deal with its
major competitors, yet company‟s promotional activities have played an important role to
create this position in such a situation. By preparing this term paper we learn about how an
organization or companies can analysis marketing mix and we think this report will help us
in our future when we will be in corporate life. We think that this analysis will help us to
know about the RC Cola and how they achieve their objective & how to recover their
promotional strategies.
Radio
28%
Guerilla
footprint
Marketing
13%
Print
11%
PR Materials
(Yeti, Stickers,
etc.)
11%
Social Media
2%
Website
3%
Intern
25%
Event
7%
Total Media Budget
Reference
Company Interview
Hr.wayne.edu. (2019). S.M.A.R.T. Objectives - Wayne LEADS - Wayne State University. [online]
Available at: https://hr.wayne.edu/leads/phase1/smart-objectives [Accessed 20 Dec. 2019].
Mentalfloss.com. (2019). The Tragic History of RC Cola. [online] Available at:
https://www.mentalfloss.com/article/76881/tragic-history-rc-cola [Accessed 20 Dec. 2019].
New Georgia Encyclopedia. (2019). Royal Crown Cola Company. [online] Available at:
https://www.georgiaencyclopedia.org/articles/business-economy/royal-crown-cola-company
[Accessed 20 Dec. 2019].
Partexbeverage, Y. (2019). ::Partex Beverage::. [online] Partexbeverage.com. Available at:
http://www.partexbeverage.com/ [Accessed 13 Dec. 2019].
RC Cola International. (2019). Home Page - RC Cola International. [online] Available at:
https://www.rccolainternational.com/ [Accessed 20 Dec. 2019].
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Promotional strategy of rc cola

  • 1. Submitted on: December 21, 2019 Promotional Strategy of RC Cola MKT337.6 Prepared and Submitted by Sl. Name Id 1. Barirah Alam Samira 1330076630 2. Abu Horaira Kamal 1330504630 3. Tarana Eva 1421605030 4. Nurun Nessa Nuri 1512968030 5. Samiha Anwar 1711003030 6. Sheikh Shadab Ahmed 1711366030 North South University Submitted to: Dr. Farzana Nahid, Assistant Professor, Department of Marketing & International Business, School of Business & Economics
  • 2. December 21, 2019 Dr. Farzana Nahid Assistant Professor Department of Marketing & International Business School of Business & Economics North South University Subject: Submission of MKT337 Project Report Dear Ma‟am, We state that we would like to submit our report on new promotional strategy of RC Cola as per your instruction. In this report, we have put effort to meet all of your requirements. We would be glad to revise any of the section if necessary in future. We therefore hope that you would be kind enough to accept this report. Sincerely yours Barirah Alam Samira Nurun Nessa Nuri Abu Horaira Kamal Samiha Anwar Tarana Eva Sheikh Shadab Ahmed
  • 3. Acknowledgement We would like to demonstrate our humble gratefulness to Dr. Farzana Nahid, our course instructor since she has instructed us to be a part of this project of making a new promotional strategy. We have found this project truly educative. We hope that the lessons we have received from this will be helpful for our future professions. Moreover, she has observed us closely throughout the period while we were working on this. She was always there for our any necessary help. We wish to express our gratitude the sources of the information, especially the official websites of RC Cola. Also, YouTube has been another source to us to watch the previous promotional campaigns of RC Cola. Besides, we have collected our necessary information from various sources. All of them have seemed useful. Without these sources, this would not be easy to conduct such a project. Finally, would be thankful to all of the members of our group. They have been significantly industrious. All of them have sufficient willing contribution in this project. We are fortunate to work with a group like this.
  • 4. Executive Summary This project is prepared on a new promotional plan for RC Cola. RC Cola was one of the leading beverage brands in Bangladeshi market. However, in spite of being a global brand, this could not preserve the large market share. Therefore, it requires a new promotional strategy to overcome the situation. Firstly, this report includes the theme of the proposed campaign. Secondly, the challenges exposed during the period of time are discussed in detail. Several topics are covered in this section, such as, Identify the following though primary and secondary research, and SWOT analysis. Thirdly, the discussion about the target audience is also elaborated in the report. Similarly, the purpose of the project is incorporated in this project report. This can be found as campaign objectives. Likewise, the creative brief is elaborated in detail in the report. Multiple topics fall under this section that are brand personality and client-agency communication model. Next, this is described that how the campaign would be executed. Finally, the selection of the media and the promotional budget of RC Cola are explained in the last section of this project report. This is expected that this plan would help RC Cola to recover its market share as well as the business.
  • 5. Table of Content Sl. Name Page no. 1. Brand Overview 1 2. Introduction 2 3. Campaign Theme 3 4. Identifying Challenges Through Research  Why RC Cola needs Promotional makeover  Identify the following though primary and secondary research:  SWOT Analysis 4-7 4-5 5-6 6-7 5. Identifying Target Audience 7-8 6. Campaign Objectives 8-12 7. Creative Brief  Brand Personality  Client-agency Communication Model  Appeal 12-14 12 12-14 14 8. Execution 14 9. Media and Budget 15-18 10. Conclusion 18
  • 6. 1 | P a g e Brand Overview RC Cola is a global brand originated in the USA. This is one of the leading carbonated beverage brands in that country for long period of time. So, in 1994, Partex Group, a large group of company of Bangladesh decided to bring RC Cola in Bangladesh. Thus, Partex Group opened a company called „Partex Beverage Ltd.‟ in 1996. At that time, Partex Beverage began to manufacture and sell RC Cola with their other products. Since then, RC Cola is conducting business in Bangladeshi market. (Partexbeverage, 2019) In the first decade of the twenty first century, RC Cola used to promote the products properly. At that time, the business was satisfactory. Though there were stronger competitors, RC Cola could successfully survive in the market and the customers could easily recognize this brand. However, gradually, the sales of the products of this brand started declining. Likewise, the promotional activities also have started decreasing as sales falls. Currently, there is no campaign of RC Cola in the market.
  • 7. 2 | P a g e Introduction This report is based on a new promotional strategy for RC Cola. As mentioned in the Brand Overview section, RC Cola‟s sales is not as good as before, still it is declining. This indicates that the promotional strategy requires a revision. This is the purpose of this project. To create a new promotional strategy, this project has gone through some specific steps. Firstly, the campaign theme is selected. Secondly, the challenges are identified. Thirdly, the target audience of the campaign is also identified like the challenges. Then, the campaign objectives are determined. Next, the creative brief is elaborated along with the execution. Finally, a discussion about the media and budget is also included in this project. In this project, the new uses of the IMC tools are explained. Likewise, the appropriate media vehicles of these IMC tools are proposed here.
  • 8. 3 | P a g e Campaign Theme An advertising campaign is a set of interconnected and harmonized marketing communications activities that focus on a single theme or idea that shows up in different media across a specified time period. The campaign theme is the main message that will be apprehended in the promotional activities and is the key focus of advertising campaign, as it sets the motif for the sequence of individual advertisements and other marketing communications that will be used. A campaign theme must be a strong idea, as it is the prime message that will be conveyed in all the advertising and other promotional activities. The theme for the advertising campaign is usually expressed through a slogan (tagline) that reduces the key idea into a few words or a brief statement. The brand we have selected for our research is RC Cola Bangladesh which is a beverage brand. Its previous advertising campaign has not been effective enough to create a more favorable image among the consumers than the two most dominant competitors in the industry- Coca Cola and Pepsi, resulting in failure to capture desired market share due to low level of sales. Quite evidently, Coca Cola and Pepsi are the two biggest fishes in the cola industry of Bangladesh. These two brands have been leading the industry and competing each other for a significant number of years now. It wouldn‟t be wrong to say about most of the consumers that whenever they feel the urge of drinking a cold beverage, the first product they consider for purchasing is either Coke or Pepsi. In this circumstance prevailing in the market, the prime challenge for any other brand is to impel the consumers to try a different drink instead of sticking to the common brands. Considering both its own and competitors‟ position in the market, the campaign theme of the new advertising campaign of RC Cola will focus on inspiring consumers to choose RC Cola over its competitors in order to taste something different and more likely, better! Keeping the campaign theme in mind, the new slogan (tagline) of the will be “Break the flow!”, which indicates to the appeal of the brand to get out of the flow instead going with the flow by choosing RC Cola over the same old and common beverages.
  • 9. 4 | P a g e Identifying the Challenge through Research Why RC Cola needs Promotional makeover: RC Cola wants to target bigger market share through the new promotional strategy. Therefore, the promotional activities would be revised. Due to acquiring a bigger market percentage, RC COLA deliberate to go for aggressive marketing. This phase of the file explains the promotional activities of RC COLA. The specification of five factors creates a promotional blend or promotional plan. These elements are private promoting, marketing, sales merchandising, direct advertising, and exposure. Promotion is a totally essential difficulty for any production business enterprise. Every corporation secures or sets a separate unique budget for promotional sports. RC COLA is not any exception. It has a separate finances allotted for promotional sports. As it is a tremendously new corporation it places its utmost emphasis on the product first-rate. It is striving to get to the near function inside the market with proper first-rate product. The fundamental part of the total budget is directed on the manufacturing. Promotion covers a noticeably a medium element. RC COLA directs its budget correctly and implements effectively to have a right promotional pastime. It is one of the powers of RC COLA that it may utilize its small resources in a proper manner to compete within the huge market of advertising and media technology. 1. Advertising: RC Cola is deliberate to use advertisement to attain the mass market. Among the channels of advertising, television advertisements, and print advertisement are selected. Apart from them, this corporation chooses a few uncommon advertising and marketing channel, inclusive of, bus painting, Tv commercials like “bhai shob khobor ekkhan” and “amra Rc valobashi ” which spreads everywhere in in our country which humans overlook already. 2. Direct Marketing: To capture the B2B marketplace, direct advertising by no means can be avoided. So, this company can plan to send newsletters, emails to the company customers. 3. Digital Marketing: In the age of contemporary information technology, digital advertising and marketing is absolutely critical. Again, a portion of the target marketplace of RC COLA consists of the adolescents, who are regularly exposed to the digital campaigns. So, this company can plan to behavior digital advertising.
  • 10. 5 | P a g e 4. Sales Promotion: sales promotion may be very effective and useful if given within the proper time. To enhance the sales RC COLA would pay incentives to the shops. Also, that is proposed in order that the individuals of the sales branch get the inducement as well. 5. Personal Selling: To boost the brand consciousness, this employer might set stalls inside the crowded locations, especially in numerous festivals. In those stalls, RC COLA might provide diverse offers to the clients. Additionally, there might be a few additional functions with the customers would like to experience. 6. Public Relations: The whole Partex group has strong reputation as it is doing business in the country for so long. Partex Beverage is one many of the sister concern of Partex Beverage. For that reason, no matter being relatively new, Partex Beverage is already widely known too. So, the activities of the company require large coverage through public media. As a result, the public relation of this organization is important. On the other hand, there may be a plan to give sponsorships to various events. Identify the following though primary and secondary research: Current target market: RC Cola has focused every section of society from the all-age group including adults, teenagers and children as its target customer. It has projected its brand as a beverage for common hundreds. RC Cola has been interested by growing its marketplace share by penetrating in similarly markets. Types of current advertising practices: Print Media: 1. Newspaper: Newspaper is the oldest and a famous media for advertisement of a product. RC can start advertises their products in newspapers once more. 2. Magazines: RC cola can uses magazines also to place their advertisements. 3. Billboards: 4. Electronic – RC can use digital billboards within the massive cities. Vehicle Advertisement: In cities we will see maximum buses are getting used to place advertisement of various products via extraordinary businesses. RC can place a few commercial at the buses which are huge.
  • 11. 6 | P a g e Use of media: Electronic Media: TV Commercials:  Local Channel: Nearly 70% of people having a tv set watches the nearby government channel in Bangladesh. it is wise to place an advertisement on government television channel.  Satellite Channel: More than 30% people having television set watches different Bangla television channels. RC Partex beverages has been advertising their products on satellite channels from the beginning in their journey. Internet Advertisement: Now-a-days, a lot of educated people have an access to the internet. So, RC can conduct locations advertisements on different net web sites. SWOT Analysis: SWOT analysis requires a variety of brain storming. As a result, this challenge changed into challenging. I got the possibility to assist the company in the same regard. Whilst running at the SWOT analysis of RC COLA, we found some particular strengths, weaknesses, possibilities, and threats. They all are mentioned inside the matrix below.
  • 12. 7 | P a g e Strengths:  Strong Brand recognition  Effective distribution Channel  Skilled and experienced Weaknesses:  Insufficient budget for promotional  activities No insurance coverage  Controversial image  Lack of employee development Opportunities:  Increasing demand for soft drinks  Demand for similar new products  Change in customers‟ taste  Increasing skilled job candidates Threats:  Stronger competitors  Existing and potential competitors  Increase in production cost  Legal and political factors  Declining market share Identifying the Target Audience of RC Cola Here we have described in which way RC Cola has segmented their total market and targeted which group of peoples as their target consumers or audience. 1. Geographic segmentation: RC Cola has segmented their market in one category which is the domestic market. Domestic market: They have divided their domestic market on the basis of urban and rural areas. The company selected both urban and rural people as their target consumers. 2. Demographic segmentation: RC Cola has different demographic areas to segment their market, such as, age and income. 3. Behavioral segmentation: RC Cola segments the buyers into groups on the basis of their knowledge, attitude, usage pattern, or response to a product. Occasions, user status, and usage rate are the behavioral market segments of RC. RC Cola has targeted every section of society from the all-age group including adults, teenagers and children as it is target customers. It has projected its brand as a beverage for common masses. RC Cola has been trying to make its own target market. Therefore it has adopted a penetration policy that will help it to reach both common customers of market in
  • 13. 8 | P a g e urban areas and unchartered areas in the rural sectors. It faces competition from two rival brands in the consumer market. The company has implemented competitive pricing and kept its product prices at same levels with product prices set up by competitive brands so that its prices seem affordable and cheap to consumers. The specification of five elements creates a promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing .Promotion is a very important issue for any manufacturing company. Every company secures or sets a separate specific budget for promotional activities. PARTEX Beverage is no exceptional. It has a separate budget allotted for promotional activities. As it is a relatively new company it puts its utmost emphasis on the product quality. It is striving to get to the close position in the market with good quality product. The main portion of the total budget is directed at the production. Promotion covers a relatively a medium portion. PARTEX Beverage (RC Cola) directs its budget effectively and implements efficiently to have a proper promotional activities. It is one of the strength of (PARTEX Beverage) that it can utilize its small resources in a proper manner to compete in the huge market of promotion and media technology. PARTEX Beverage‟s promotional activities are directed in different categories. RC (PARTEX Beverage) is one of the promising companies in Bangladesh. This company is now becoming one of the leading companies of beverage products in Bangladesh. They are always trying to add new products, maintain the quality, introduce modern machineries, and improve worker‟s skill in the whole country. People are also being satisfied by consuming various products of RC such as RC Cola, RC Lemon, RC Orange, RC Diet etc. than the others. RC is trying to keep their quality standard and attract the customers through various promotional efforts throughout the country. RC is also trying hard to achieve or reach the first position among the competitors by their effective marketing strategy. There are some recommendations from the study that may influence customer preference towards RC (PARTEX Beverage) in Bangladesh and also enhance the reasons behind the selection of RC (PARTEX Beverage) in Bangladesh. These are: RC (Partex Beverage) should maintain its product quality. RC (Partex Beverage) should introduce new variety to its product line. Campaign Objectives There are many objectives RC Cola can have, but the major considerations could be their stage & position in the market. For a long time, this drink is no longer available in Dhaka market. However, at times we can rarely find them in local stores outside Dhaka where the clutter is less.
  • 14. 9 | P a g e Hence, the campaign objective is to win the market share all over Bangladesh and beat Pepsi and coke which are the two big competitors in the market. This objective is set because in past RC Cola has been popular in the market which is no longer the scenario. This objective might be difficult to achieve but is not impossible as RC cola has a positive brand name which is a strong edge. Only thing needed is to formulate a right strategy and to make adjustment to the product according to the strategy. In addition, RC Cola should adopt a combination of Sales & Communication objectives to make their presence dominant in the market. Their primary goal should be increasing sales volume. Side by side, they should also focus on increasing their Brand image through favorable attitudes to sustain in the long run from the fierce competition in the cola market. Keeping the campaign theme & the new slogan “Break the flow!” in mind, we will be promoting the product through AIDA Model. Figure: AIDA Model RC Cola Firstly, we will be creating awareness by differentiating RC cola from the clutter. We will be creating awareness through Articles, Advertisements, Paid search or landing pages.
  • 15. 10 | P a g e Furthermore, we will be promoting the drink through famous celebrities & influencers to gain market attraction. They have many active followers who could be our potential target customers in the beginning. Figure: Examples of Print Ad & TV commercials However, step by step we will move to expand our target market. Our campaign objectives are SMART, which are Specific, Measurable, Achievable, Realistic, and Time-bound. It is essential to identify our results of the objectives. Hence, SMART objectives will help us to determine that our goals are reached, and target is maximized or not.
  • 16. 11 | P a g e In the second step, we will be creating interest about RC Cola or anything that will create a favorable attitute towards the drink. We will be doing this through Web content, Social Media Blogs & Email-canpaigns. Figure: Examples of Social Media contents Finally, when awareness and interest is created about RC Cola - Break the Flow, we will be promoting our product in such a manner that consumers desire to have it. We could be distributing brochures as there will be creative flexibility & high receptivity or involvemnet. Furthermore, we will be going to different Universities like North South University, Independent University, Bangladesh, Brac University, Dhaka University and engage students to taste our product for free. Therefore, customers will tend to lead towards an action in the fourth stage. Hence, the campaign objective is to gain as much market share as they could to become a market leader. For this massive marketing & rebranding we will be using Print media, Digital media and television advertisements more as these three are the mostly used modes of media in Bangladesh. In addition, through our campaign objective we will be Repositioning our product RC Cola in the minds of our target customers. The notion “Break the flow!” implies going against the flow. We will be promoting through our campaign to choose our cola and not Coke, Pepsi or any other brand. Changing people‟s taste rapidly is going to be very difficult but over some time we can expect positive results. So, going against the flow would be choosing a
  • 17. 12 | P a g e different brand cola for a change. Through a combination of heavy sales promotion & positive brand image, in the beginning we will be triggering consumer‟s cola taste. Creative Brief In this section of the report, RC Cola‟s brand personality, process modeling of client-agency communication, and usage of appeal is elaborated. Here, the appropriate personality RC Cola should carry would be recommended. Likewise, a discussion on the relevant appeal for establishing this personality of this brand is incorporated in this section of the report. Brand Personality The competitors of RC Cola have made the customers too loyal. So, to free up the captured customers, RC is recommended to have a dynamic personality. Analyzing the history, this can be undoubtedly stated that RC Cola used to possess a big share of the Bangladeshi market once upon a time. At that time, this was one of the leading brands in the beverage industry. However, this brand now needs to regain that possession. In the earlier sections of this report, this is mentioned that the market of carbonated beverage in Bangladesh is mostly captured by Coke and PEPSI. By observing the situation, this is found that the customers are fond of those two brands. In fact, the customers have become such loyal to Coke and PEPSI that they are reluctant to even try any other brand of carbonated drink. In this situation, the market requires a break through to free the captured customers. That is why; RC Cola has to have such a personality that can bring necessary change. Therefore, the appropriate personality should be „dynamic‟. Client-agency Communication Model As previously mentioned, RC Cola is a brand under Partex Beverage Ltd. which is a sister concern of Partex Group. The list of the companies under Partex Group, there is no marketing agency. In spite of having no in-house agency, RC Cola has to deal with the out- house agencies. Currently, RC Cola works with multiple marketing agencies, such as, Swarup Agency, Ogilvy Bangladesh, Expression Ltd, Top Mind, Ferial Communication etc. All of these are
  • 18. 13 | P a g e out-house agencies. The way RC Cola communicates with the agencies is demonstrated in this section of the report. The communication between the agency and RC Cola is recommended to be through a vendor. After the vendor come up with this client, the assignment would go through several departments. 1. Account Department: The assignment would get into the agency through the Account Department. This is the department responsible to maintain liaison RC Cola. 2. Strategic Planner: Then, this department would send it to the Strategic Planner. In this department, the entire marketing plan would be prepared. 3. Creative Department: Creative department would be responsible for the preparing the plan that in which forms the campaigns should reach the audience. Account Department Strategic Planner Creative Department Media Department
  • 19. 14 | P a g e 4. Media Department: Through the Media Department, the agency would deal with the media. Moreover, this department would be also responsible for setting the campaign budget. After passing through all these departments, the entire promotional plan would be delivered to RC Cola. Appeal RC Cola is recommended to use the emotional appeal. This brand belongs to the category of cola drinks. Cola drinks are homogeneous by type. By using logic, the customers are not expected to differentiate RC Cola among all the cola drinks. Moreover, the proposed tagline is “break the flow!” which is not affiliated to the rational appeal. As a result, RC Cola is recommended to use emotional appeal rather than rational. Among all of the emotional appeals, humor and patriotism is selected. Execution A print ad has been created and planned to be published in the print media. Among the all the print media, only the top selling newspapers are selected. This is an event-specific campaign. So, this is planned to publish it only on the Victory Day, 2019. The print ad is given in the following-
  • 20. 15 | P a g e In this campaign, the message is not to support the flow. The opposite position to the flow reflects RC Cola‟s new tagline “Break the flow!” Likewise, this is also strongly related to the event Victory Day. Since this campaign synchronizes with the tagline, this can be an appropriate one as an event-specific campaign. Media & Budget Plan The first step in developing a campaign budget plan is to start with the total budget available to spend on a campaign. This budget figure works as a guardrail or constraint to keep our plans in line with the available resources. Next, we have to think about the promotion mix we have in mind. Will there be advertising? Digital or direct marketing? Any public relations activities? And so forth. Then we will list the different methods and key tools you plan to use, and then we will determine how much of our budget we plan to spend on each. The promotional mix and budget allocation for media might be as follows: Promotional Mix Elements Budget Allocated 28%: Radio $4200 13%: Guerilla footprint Marketing $2000 11%: Print $1600 11%: PR Materials (Yeti, Stickers, etc.) $1600 2%: Social Media $260 3%: Website $500 25%: Intern $3840 7%: Event $1000 100%: Total $15000
  • 21. 16 | P a g e Once we have outlined the promotional mix and how we plan to allocate our budget across different marketing communication methods, it‟s a good idea to put together a detailed budget listing the specific elements that require out-of-pocket spending and how much they cost. In preparing the detailed budget, marketers should conduct research by contacting consumers to confirm that they are accurately affecting or not. In the detailed budget, it is also useful to list everything and the time needed to execute the plan. This gives the managers of the organization better visibility into the total cost of executing the campaign. The following is a useful framework for developing a detailed budget. The detailed budget in million for the same campaign might be as follows: Media Mix /Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TV 20 20 35 36 35 28 24 25 20 20 20 30 Radio - - 14 14 14 - - - - - - - Guerilla footprint Marketing - - 25 25 25 25 25 2 25 25 - - Print 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4 PR Materials (Yeti, Stickers, etc.) .14 .14 .14 .14 .14 .14 .14 .14 .14 .14 .14 .14 Social Media .02 .02 .02 .02 .02 .02 .02 .02 .02 .02 .02 .02 Event - - - 500 - - - - - 500 - -
  • 22. 17 | P a g e Total 13.56 13.56 87.56 588.56 87.56 38.56 38.56 15.56 38.56 538.56 13.56 13.56 As you go through this detailed budgeting process, you may find you need to scale certain elements of the budget up or down in order to fit within the total project budget. This exercise helps marketer‟s think realistically about the trade-offs and how to ensure the project makes the greatest impact possible with the available resources. Media Budget from January to December 4% 4% 16% 19% 16% 6% 6% 6% 6% 9% 4% 4% Media Budget from January to December January February March April May June July August September October November December
  • 23. 18 | P a g e Conclusion This can be stated that with the help of this promotional strategy, RC Cola may achieve a strong level of customer preference. Moreover, this is a very challenging to deal with its major competitors, yet company‟s promotional activities have played an important role to create this position in such a situation. By preparing this term paper we learn about how an organization or companies can analysis marketing mix and we think this report will help us in our future when we will be in corporate life. We think that this analysis will help us to know about the RC Cola and how they achieve their objective & how to recover their promotional strategies. Radio 28% Guerilla footprint Marketing 13% Print 11% PR Materials (Yeti, Stickers, etc.) 11% Social Media 2% Website 3% Intern 25% Event 7% Total Media Budget
  • 24. Reference Company Interview Hr.wayne.edu. (2019). S.M.A.R.T. Objectives - Wayne LEADS - Wayne State University. [online] Available at: https://hr.wayne.edu/leads/phase1/smart-objectives [Accessed 20 Dec. 2019]. Mentalfloss.com. (2019). The Tragic History of RC Cola. [online] Available at: https://www.mentalfloss.com/article/76881/tragic-history-rc-cola [Accessed 20 Dec. 2019]. New Georgia Encyclopedia. (2019). Royal Crown Cola Company. [online] Available at: https://www.georgiaencyclopedia.org/articles/business-economy/royal-crown-cola-company [Accessed 20 Dec. 2019]. Partexbeverage, Y. (2019). ::Partex Beverage::. [online] Partexbeverage.com. Available at: http://www.partexbeverage.com/ [Accessed 13 Dec. 2019]. RC Cola International. (2019). Home Page - RC Cola International. [online] Available at: https://www.rccolainternational.com/ [Accessed 20 Dec. 2019].