The New Cola Wars
Presented by:
 Atiqah Nadwa Binti Mat Shohor (2011105771)
 Azlinda Binti Harun (2011149521)
 Jimmy Sh...
Introduction Background of
Started in 1886 by John Pemberton
(creator), Asa Griggs Candler (business
founder).
Background ...
The drinks contained alcohol and later replaced
with sugar to make the taste more appealing
to drink.
The drink was rename...
SYNOPSIS OF THE CASE
• For many years, the world has seen the intense battle
between two powerful global brand, Coke and P...
Background
Launched in France in 2002 by a Tunisian-
born businessman.
Goal: To make Mecca Cola the cola of
choice for Mus...
Background
Founders of the company were cousins,
Zahida Parveen and Zafer Iqbal and launched
in late 2002.
Slogan : “Qibla...
SITUATION IN EUROPE
Mecca Cola entered the UK market with the goal of capturing
5% of the world’s 10th largest cola market...
They target students and young people and proclaimed
that people should switch to brands that were
independent of governme...
Background
Founded in 1954 as the Iranian partner of
Pepsi until their contract was terminated
after the 1979 Islamic Revo...
SITUATION IN THE MIDDLE EAST
Coca-Cola had already encountered a competitor that
positioned itself as an alternative to Co...
COMPANY BACKGROUND
Founded in 1988 by the Ananos-Jeri Family in
Ayacucho, Peru.
Rebels from the Shining Path terrorist gro...
Products: Real Kola & Big Cola
Operates in 22 countries; Brazil, Costa Rica,
Ecuador, India, Indonesia, Thailand, Venezuel...
SITUATION IN LATIN AMERICA
Ajegroup’s Kola Real captured 22% of the Peruvian market, 16%
of the Ecuador market and 17% of ...
SITUATION IN LATIN AMERICA contd
Ajegroup introduced big bottles at very low price (Big Cola).
Relied on salespeople to re...
However, Coke could buy loyalty by offering free refrigerators
and buying life-insurance policies for its small retailers....
Discussion Question
Which is you think the bigger threat to Coca Cola brands like
Qibla Cola and Mecca Cola or the Ajegrou...
Bigger threat to
Is the
Produced in Hispanic countries (Peru). Their headquarter
located in Spain.
Estimated 500 mil population of the world are f...
Discussion Question
What are the strengths and weaknesses of Qibla and Mecca Cola
compared to Coca Cola?
Strengths and Weaknesses
STRENGTHS WEAKNESSES
Strong financial backup of the UAE
based organization.
Brand name representi...
Strengths And Weaknesses
Strengths Weaknesses
Their bottle (shown in the image on the
left) markets their aim for social
r...
Strengths and Weaknesses
STRENGTHS WEAKNESSES
The best global brand in the world in
terms of value ($77,839 billion).
Sign...
Discussion Question
Why has the new cola launched by the Ajegroup been so
successful? Do you think this cola cloud success...
The first bottle of Kola Real was produce in a family
residence in a city of Ayacucho, Peru during the 1980s.
The area was...
They can tap the market outside the Latin America especially in
Muslim countries by having the Halal certificate. Because ...
Discussion Question
Evaluate Coca Cola’s response to Ajegroup. What suggestions
would you give Coca Cola?
Coke abuse the market power over distributors at
Mexico
Coke offers free refrigerators to chill cokes
Buying its small ret...
Evaluation
Coke doing the right thing in order to sustain themselves
as a global brand and a major player in the soft drin...
Suggestion
Aggressive promotion
Assign local celebrities as ambassadors (eg.
Footballers)
New slim bottle design similar t...
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The new cola wars

  1. 1. The New Cola Wars Presented by:  Atiqah Nadwa Binti Mat Shohor (2011105771)  Azlinda Binti Harun (2011149521)  Jimmy Shanley Bin Norjahan Saleh (2011155953)  Muhamad Shafiq Bin Muhamad Arif (2011972977)  Syazwani Arbaiyah Binti Mohd Shahir (2011738041)
  2. 2. Introduction Background of Started in 1886 by John Pemberton (creator), Asa Griggs Candler (business founder). Background : Pharmaceutical and sales. Initially the drink was known as Pemberton’s French Wine of Cola. The first drink sold was priced at 5 cents per glass and only 9 glasses were sold per day.
  3. 3. The drinks contained alcohol and later replaced with sugar to make the taste more appealing to drink. The drink was renamed to Coca-Cola by Pemberton’s bookkeeper. Pemberton died in 1888 and never saw his drink taken to the masses. Asa Griggs Candler bought over the rights of the drinks. In 1892, the Coca-Cola company was officially born.
  4. 4. SYNOPSIS OF THE CASE • For many years, the world has seen the intense battle between two powerful global brand, Coke and Pepsi. • Recently, many private labels newcomers with unique histories and international ambitions have emerged to challenge the status quo.
  5. 5. Background Launched in France in 2002 by a Tunisian- born businessman. Goal: To make Mecca Cola the cola of choice for Muslims worldwide and to combat America’s imperialism by providing a substitute for American products. Mecca Cola’s packaging was similar to Coke’s.
  6. 6. Background Founders of the company were cousins, Zahida Parveen and Zafer Iqbal and launched in late 2002. Slogan : “Qibla Cola, liberate your taste” (Qibla means “direction” in Arabic) The company announced that 10% of profits from every two-liter bottle sold would go to the Muslim charity Islamic Aid, which specializes in establishing humanitarian projects in some of the world's most deprived communities.
  7. 7. SITUATION IN EUROPE Mecca Cola entered the UK market with the goal of capturing 5% of the world’s 10th largest cola market. Distribution of Mecca Cola was through small shops in communities where 1.5 mil Muslim Britains were concentrated. Qibla Cola was launched in Britain in late 2002 and has plans to enter the U.S market. The Qibla Cola Company called for a boycott of all American brands to protest the US-led war in Iraq.
  8. 8. They target students and young people and proclaimed that people should switch to brands that were independent of governments and their unjust policies. Coca-Cola invested in smoothie maker, Innocent. Innocent became Britain’s top brands due to its social commitment and ethical marketing. Innocent dedicated 10% of its profit to charity and use recycled bottles.
  9. 9. Background Founded in 1954 as the Iranian partner of Pepsi until their contract was terminated after the 1979 Islamic Revolution. Muslim consumers boycotted American products to protest support of Israel in the ongoing Middle East conflict. As a result, Zam Zam Cola was bombarded with orders from neighbouring Arab countries.
  10. 10. SITUATION IN THE MIDDLE EAST Coca-Cola had already encountered a competitor that positioned itself as an alternative to Coke: Zam Zam Cola in Iran and Saudi Arabia. Coca-Cola signed a franchised with the National Beverage Company to bottle and distribute Coke throughout the West Bank and Gaza Strip.
  11. 11. COMPANY BACKGROUND Founded in 1988 by the Ananos-Jeri Family in Ayacucho, Peru. Rebels from the Shining Path terrorist group destroyed farms and routinely hijacked Coca-Cola’s trucks. The family decided to produce their own cola and sell it locally. Their cola was sold at an extremely low price compared to Coke and Pepsi because they cut costs on advertising.
  12. 12. Products: Real Kola & Big Cola Operates in 22 countries; Brazil, Costa Rica, Ecuador, India, Indonesia, Thailand, Venezuela and Vietnam.
  13. 13. SITUATION IN LATIN AMERICA Ajegroup’s Kola Real captured 22% of the Peruvian market, 16% of the Ecuador market and 17% of the Venezuelan market due to its extremely low price. This forced Coca-Cola to cut their prices as well. 11% of Coca-Cola’s global profits came from Mexico and their position was threatened when Ajegroup entered the Mexican market. Ajegroup set it prices at 20-50% below its competitors’ prices resulting a rapid drop in sales for Coca-Cola and Pepsi.
  14. 14. SITUATION IN LATIN AMERICA contd Ajegroup introduced big bottles at very low price (Big Cola). Relied on salespeople to reach the smaller stores in Mexico that accounted 75% of its sales. Some distributors declined the new cola due to Coke threatening to pull their products from the shelves. Ruling by Mexico’s antitrust board had ordered Coke to stop abusing its market power over distributors. As a result, many distributors became aware that they had a choice about what they are selling.
  15. 15. However, Coke could buy loyalty by offering free refrigerators and buying life-insurance policies for its small retailers. Coke also sends employees to visit stores to help with stocking and display. In the contrary, Ajegroup focused on cutting costs. Their distribution was outsourced to third parties who delivered in rundown trucks. 3 years after entering the Mexican market, Big Cola had grabbed 7% market share and represented 45% of the Ajegroup’s consolidated sales.
  16. 16. Discussion Question Which is you think the bigger threat to Coca Cola brands like Qibla Cola and Mecca Cola or the Ajegroup? Why?
  17. 17. Bigger threat to Is the
  18. 18. Produced in Hispanic countries (Peru). Their headquarter located in Spain. Estimated 500 mil population of the world are from Hispanic countries. Around 360 mil Hispanics live in Hispanic America and 40 mil live in Spain. Around 34 mill live in United States and the rest in Canada, Morocco, Philippines and Brazil. Sponsored 3 Barcelona football players. Indirectly the teams performed and made Real Kola much more popular in the Hispanic countries. Attractive product
  19. 19. Discussion Question What are the strengths and weaknesses of Qibla and Mecca Cola compared to Coca Cola?
  20. 20. Strengths and Weaknesses STRENGTHS WEAKNESSES Strong financial backup of the UAE based organization. Brand name representing the Islamic values only which could not be effective in attracting non-Muslims. Inspiring Brand name in the Pakistani environment. Fewer plants than competitors in the start. Product quality is competitive much better than the past. As a new comer Mecca Cola is yet to develop mutually beneficial relationships with suppliers and distributors. Low price as compared to competitors. Heavy promotional budgets on teasers, awareness and persuasion. Highly available in rural areas and urban areas. Number of variants.
  21. 21. Strengths And Weaknesses Strengths Weaknesses Their bottle (shown in the image on the left) markets their aim for social responsibility by displaying a parody of nutritional information. They’re not very transparent as to which charities they donate to. One has to go to their website to find information about the charities and projects they’ve worked with but no where does it list the criteria used to choose such initiatives. The appeal for Qibla cola is gaining global momentum. Consumers appreciate the way Qibla cola tastes and looks whilst knowing that their money will contribute to worthy causes. Collapse because of bottling and distribution problem Concentrates on Muslim market (non muslim refuse to buy) This February, Qibla announced it was expanding into Libya. But then the company's public communications department suddenly lost its confidence.
  22. 22. Strengths and Weaknesses STRENGTHS WEAKNESSES The best global brand in the world in terms of value ($77,839 billion). Significant focus on carbonated drinks. World’s largest market share in beverage. Undiversified product portfolio. Most extensive beverage distribution Channel. High debt level due to acquisitions. Customer loyalty. Negative publicity. Bargaining power over suppliers. Brand failures or many brands with insignificant amount of revenues. Corporate social responsibility.
  23. 23. Discussion Question Why has the new cola launched by the Ajegroup been so successful? Do you think this cola cloud successfully expand outside Latin America? Why or why not?
  24. 24. The first bottle of Kola Real was produce in a family residence in a city of Ayacucho, Peru during the 1980s. The area was so ravaged by terrorist conflict that coca cola and Pepsi had pulled out of doing business there. This withdrawal created a gap in the local market just begging to be filled by a home grown operation. Due to the absence of coca cola products in the market, Ajegroup was successfully tapping the gap in the market.
  25. 25. They can tap the market outside the Latin America especially in Muslim countries by having the Halal certificate. Because beside Coca Cola, their rivals are from Muslim-owned cola brand (Mecca Cola and ZamZam Cola)
  26. 26. Discussion Question Evaluate Coca Cola’s response to Ajegroup. What suggestions would you give Coca Cola?
  27. 27. Coke abuse the market power over distributors at Mexico Coke offers free refrigerators to chill cokes Buying its small retailers life-insurance policies. Coke employees were constantly visiting stores to help with stocking and display
  28. 28. Evaluation Coke doing the right thing in order to sustain themselves as a global brand and a major player in the soft drink industry.
  29. 29. Suggestion Aggressive promotion Assign local celebrities as ambassadors (eg. Footballers) New slim bottle design similar to a canned Milo Concentrates on concept store such as being done by apple (sells home appliances, clothing lines)

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