Sakol Beverage eyes top-three market spot for RC Cola brand

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Sakol Beverage eyes top-three market spot for RC Cola brand
SUCHEERA PINIJPARAKARN
THE NATION



BANGKOK: -- SAKOL BEVERAGE CO, the RC Cola bottler in Thailand, has rejuvenated the RC Cola brand through a first-time above-the-line advertising campaign with the ambitious goal of top-three market status.

As one of the American cola-fla-voured soft drink brands, RC believes the heritage brand needed to be rejuvenated to grab a greater slice of the cola soft-drink market in Thailand, said Chakrit Assawawasin, senior marketing consultant of Sakol Beverage.

Despite the economic uncertainty, the cola-flavoured soft-drink market grows between 7-9 per cent per year and RC Cola International is happy with its sales revenue in Thailand.

He said Sakol Beverage had also grown 7-9 per cent per annum, even though it may not have been as aggressive in marketing as other brands.

He said RC was a middle-of-the-pack player in the market, with the brands above and below it very active with their marketing for several years.

"The brand of RC is too flat, and it should be made more lively to communicate with consumers," he said.

"RC Cola International agreed with us because Thailand is one of the strategic countries of RC Cola International, apart from the Philippines, which is the No 1 market in this region for RC."

The company introduced its first TV advertisement on August 25 after conducting consumer research.

It found that many consumers became aware of the brand when they were students and the brand now resonates less with new-generation consumers, unlike people aged 25 to 35.

Chakrit said leading brands were popular among consumers aged 18 to 25 years, meaning there was an opportunity for RC to further penetrate the 25-35 age group.

New-generation consumers will also get to know the RC brand through advertisements, he added.

He said the company had to morph from a heritage brand into a value brand based on three factors.

First, RC is an American brand. Second, RC is a heritage brand like Pepsi and Coke and finally RC is one of three brands that originally contained caffeine from the kola nut and cocaine from coca leaves.

As a middle-row player, Chakrit said RC would use the original cola tactic to defeat follower brands, and would use the value for money tactic to compete with top brands.

RC might not have much of a chance beating the two market leaders but with this brand rejuvenation the company believes RC could be top four this year or next summer.

"The top three is not a difficult job if we can be top 4. But importantly, we have to know what we are and why we have to rejuvenate the brand and who our consumers are," Chakrit said.

"This rejuvenation is the biggest investment for this company. There-fore, the growth of sales revenue should not be less than 20 per cent per year."

Terdchay Kajornaroonkij, senior sales manager of the company, said a strong sales channel for RC Cola was mom-and-pop shops in Bangkok and nearby provinces, with Sakol Beverage covering over 50,000 merchants.

He said the company was expanding its merchant network to provinces in the North, the Northeast and the South.

It was increasing the number of its mobile units from 66 to 100 this year to supply products at new distribution channels such as modern trade venue, 7-Eleven convenience stores, convenience stores at gas stations and cash and carry Makro.

Yet, traditional trade remained the key channel for RC Cola, he said.

Terdchay said RC contributed more than 80 per cent to Sakol's total sales revenue.

Chakrit added that RC Cola International had several brands that might be introduced in Thailand if RC Cola becomes a top-three brand.

Source: http://www.nationmultimedia.com/business/Sakol-Beverage-eyes-top-three-market-spot-for-RC-C-30268710.html


-- The Nation 2015-09-14

[jaywalker]

Moon pies.

[ZuluSixNine]

Some interesting facts about cola.

http://www.medicaldaily.com/pulse/soft-drink-dangers-8-ways-soda-negatively-affects-your-health-319054

As soon as soda's swallowed, the pancreas is notified and rapidly begins to create insulin in response to the sugar. Insulin is a hormone the body uses to move sugar from food or drink into the bloodstream, where cells are then able to use sugar for energy. Within just 20 minutes, blood sugar levels spike and the liver responds to the insulin by turning sugar into fat for storage.

Within 45 minutes of gulping down a single 20-ounce glass of soda, caffeine from the drink is fully absorbed, and as a result your pupils dilate and blood pressure rises. The body produces more dopamine, which stimulates the pleasure centers of the brain — just like a low-grade line of cocaine.

When the hour chimes, the body begins to experience a blood sugar crash, which is around the same time a person reaches for their second soda, or for another sweet and sugar snack to suffice. Soda’s connection to the obesity epidemic is so intertwined, Harvard researchers have calculated each additional soda consumed increases the risk of obesity 1.6 times.

In addition to the threat of reaching obese levels, researchers also found after following 40,000 men for two decades, those who drank a sugary beverage each day had a 20 percent increased risk of having a heart attack. The high fructose corn syrup — a cheap replacement for cane sugar — has been associated with increased risk of metabolic syndrome, which leads to diabetes and heart disease.

Beverage companies know the haphazard sugar cycle all too well. In the United States, they spend approximately $3.2 billion in marketing each year in an effort to tempt consumers to pick up a liter of brown bubbly sugar with their pizza, or a case of cans for their child’s next birthday party. Those little children have an 80 percent increased risk of developing type 2 diabetes if they become regular soda drinkers. Their future will be one full of kidney problems, reproductive issues, osteoporosis, asthma, and bad teeth with dissolved tooth enamel.

Drink up!

Edited September 14, 2015 by ZuluSixNine

[Orac]

I take it that "above-the-line advertising" means paying The Nation to write this sort of puff piece.

[GiantFan]

Supplying a cases to so many mom and pops ain't gonna cut it. Distribution costs too high. Need to break into the larger distribution companies. One problem is that most are linked to the top 3 - 4 and won't take RC. Good luck with that.

Also, couldn't find a website. Advertising 101.

[DLock]

Coke, Pepsi, EST....what is currently number 4 in Cola market?

Going to difficult and expensive to establish RC Cola in the Top 3. EST has done a good job...

I did like this line...

"First, RC is an American brand. Second, RC is a heritage brand like Pepsi and Coke and finally RC is one of three brands that originally contained caffeine from the kola nut and cocaine from coca leaves."

The first 2 points I buy...the 3rd is an interesting point that has little relevance today...but interesting.

[Prbkk]

Poison, no matter which brand.

[DLock]

Poison, no matter which brand.

...and on that, I agree 100%.

[fred Kubasa]

I believe that Royal Crown cola, a solid third in US sales for some 40 years,can be number 3 here as well. Some creative advertising coupled with

promotions could knock Thai BEV for a loop and get 10 to 15 % of the

existing market. Get a New York advertising firm, expensive but well worth

it !

[deckape]

Royal Crown and Hitler Chicken-- Have Some Tonight!

[Emster23]

RC was third in US when I was growing up, but a distant third. Not really a good taste. I get a laugh from all those talking about soda being poison.... how about rattling on for a bit about downside of alcohol for a bit? Seems much much bigger hazard here than pop.

[maidee]

aspartaam is one of the causes of more violence as it literally kills brain cells

short temper linked to this ?

naaaaaaaaaaaaaaah, impossible, right ?

[Bluespunk]

"The brand of RC is too flat"

Never a good thing in a carbonated beverage.

Edited September 14, 2015 by Bluespunk