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thesis and background of the study about rc cola company as a top beverages in the philippines. the literatures about Rc Cola in the year 2000-2013
Citation preview
Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
Nagtahan, Sampaloc, Manila
“RC Cola: It’s edge among its multi-international
competitors in the Philippines”
A Research Study
Presented to
The Faculty of the College of Professional Studies
In Partial Fulfillment of the
Requirements for the Degree of
Bachelor of Science in Business Administration
By
Lee Harvy A. De Guzman
Jessie L. Dela Cruz
Jorena Mae N. Giducos
Julius R. Idio
CHAPTER 1
Introduction:
“We’ll bring 14 plants of RC Cola’s manufacturing footprints
in the Philippines,” Alfredo Yao said. Owner and founder of
the Zest-O Corporation. As he explains how RC Cola is
expanding and gaining its popularity here in the
Philippines.
RC Cola is also a legend with a history spanning more than
100 years. Originally, Royal Crown Cola was born from the
efforts of a young pharmacist in Columbus, Georgia. After a
disagreement with a local soda bottler Claud A. Hatcher. He
began creating his own soft drinks. Never in his wildest
dreams could he have imagined that his experiments would
become successful and affectionately nicknamed RC Cola.
Early 2002, a sparkling group of marketing and manufacturing
experts pooled their strengths to establish a new soft drink
company. An RC Cola was born and first introduced in the
Philippines. As they sharing the same passion and ideals as
a royal crown international.
Today, RC Cola is developing to fit the Filipino’s taste
buds. As they envisions to offer a truly satisfying Cola
drink with an affordable price.
Statement of the Problem:
1. How does RC Cola differs from its bigger competitors
such as Coca- Cola Company and Pepsi from:
1.1 Products
1.2 Price
1.3 Place
1.4 Promotion
1.5 Personnel
1.6 Procedure Management
1.7 Physical Assets
2. What are the factors considered by the RC Cola Company
to having the most numbers of potential consumers?
3. Why masses or most numbers of Filipino consumers who
lives in a small community patronizes RC Cola?
Significance of the Study
The result of the study will provide useful data and
information for the following:
Royal Crown “RC COLA” Company. It gives them data and inputs
to improve and sustain their marketing strategy to be
locally competitive in the market.
Students. It provides additional information to enhance
their level of knowledge regarding the effectiveness of
marketing strategies.
Scope and Limitations
The study was focused on determining the common aspect why
does the people patronize the RC Cola. The scope of the
study is beyond the reach of the products of the Royal Crown
RC Cola Company but in a specific number of people which has
similarity in the study of the given problems that needs a
corresponding answers.
It involves the society where in we selected a small number
of people that has the same interest and although this
research was carefully prepared, we are still aware of its
limitations and shortcomings.
In addition, since the assessment of the pretest and post
test was conducted by the pantrus, it is unavoidable that in
this study, certain degree of subjectivity can be found. In
fact, it would have been sort of objective if it had been
decided.
Background of the study
RC Cola was name “Royal Crown” and the first cola was called
Chero-Cola. Royal crown international (RCCI), the global
beverage company of all independent bottlers of American
soft drinks brand RC Cola worldwide, has revealed that the
Philippines is the most successful overseas market to date.
Asian wide refreshment Corporation (ARC) is the licensed
bottler of RC Cola in the Philippines and it is the most
successful market.
Royal Crown Cola Company (RC), although never as renowned as
its rival Coca-cola, used the soft0drinks industry’s first
taste tests to prove that it was a superior soda. Forever
linked to a popular marshmallow-filled snack treat through
the country song “RC Cola and Moon Pie,” the company never
schools its strictly southern, small-town image, even though
it unveiled a series of industry firsts, including the first
aluminum cans, the first diet cola, and the first
ceffeine0free diet cola.
A young pharmacist named Claud Hatcher developed RC as a
bottled drink in 1905 to sell in his family’s grocery store.
After customers clamored for the drink, the family expanded
into soft drinks business starting Union Bottling Works. Its
best-selling product Chero-Cola, helped the company grow is
rapidly that by 1920 it had 7—franchise bottling plants.
Known as the Chero-cola company, it faced a lawsuit from
Coca-Cola, which insisted on exclusive rights to the word
“cola”. High legal bills and rising sugar prices forced the
company to drop “cola” from its name in 1923. When the
market for chero dropped off, the company discontinued the
beverage, pushing forward with a fruity soft drink called
Nehi instead. Chero became Nehi Corporation in 1928. In the
midst of the Great Depression of the 1930s, Nehi began to
struggle; competition and lackluster sales made it hard for
the company to pay its bills. Hatcher died in 1933, and H.
R. Mott took control of Nehi, dropping poor-performing
drinks and streamlining operations to make the company debt
free in a year. Mott's plan included taking the original
Chero-Cola and reintroducing it. The new Chero-Cola,
released in 1934 and named Royal Crown after Hatcher's first
drink, was a big hit, and in the late 1950s the company
changed its name to Royal Crown Cola Company. (Courts ruled
in 1944 that the company could once again use "cola" in its
name.)
Mott was replaced by C. C. Colbert as president and chief
executive officer in 1940. In that year, Nehi sales were ten
times what they had been less than a decade before, RC
products were available in nearly every state in the nation,
and its advertisements appeared in such publications as the
Saturday Evening Post and Good Housekeeping. Actors Lucille
Ball, Claudette Colbert, Joan Crawford, Ronald Reagan,
Shirley Temple, and Loretta Young were among those endorsing
RC as "Best by Taste Test."
The company continued to grow, and in 1954 it became the
first beverage company to nationally distribute soft drinks
in cans. Shortly thereafter, in 1959, RC became one of the
first to introduce the sixteen-ounce bottle. The company
produced the first low-calorie diet cola (Diet Rite), the
first caffeine-free diet cola (RC 100), and the first diet
cherry cola (Diet Cherry RC). Yet despite such innovations,
Royal Crown products reportedly reached only 2.5 percent of
the soft-drink market in the mid-1990s; Coke was the leader
with about 43 percent, just ahead of Pepsi, which had about
31 percent of the market share. Today, none of the top-ten-
selling soft drinks are Royal Crown products.
RC Cola was bought in October 2000 by the British company
Cadbury Schweppes. Its U.S. operations continue under
Cadbury Schweppes's largest beverage subsidiary, while its
international operations are handled by Canada's Cott
Corporation.
CHAPTER 2
MARKETING RESEARCH
Review of Related Literature and Studies
Related Literature
Local Sources
1. According to Mr. Doris C. Dumlao of Philippine daily
Inquirer (2013) the Philippine maker of American soft drink RC
Cola is making plans to debut on the local exchange of stocks to
fund a regional expansion program.
Asia wide Refreshments Corp. (ACR), which holds an exclusive
license from RC Cola USA to manufacture and distribute RC
Cola in the Philippines, may soon sell a mix of primary and
secondary shares equivalent to at least 30 percent of post-
initial public offering (IPO) stocks “hopefully” within this
year, according to businessman Alfredo Yao.
Yao, owner and founder of the Zest-O group, controls 80
percent of ACR. Based on the company’s website, other
business partners are entrepreneurs Tony Panajon, Gerry
Garcia, Butch Aves and Ricky Sandoval.
The businessman said the IPO size would be “definitely
bigger” than that of Philippine Business Bank, which raised
P3.2 billion from a primary share sale and listed
outstanding stocks on the Philippine Stock Exchange Tuesday.
ACR likewise held the license to manufacture and distribute
RC Cola across Southeast Asia, Yao said. New RC Cola plants
might be put up in Myanmar, Thailand and Vietnam, Yao said
at the sidelines of the listing of Philippine Business Bank.
“Even here (in the Philippines) we’re expanding. We have
just opened our Cagayan de Oro plant. We’ll be opening next
week our Pangasinan plant and construction (of a new plant)
is ongoing on Panay Island,” Yao said. This will bring to 14
plants RC Cola’s manufacturing footprint in the Philippines.
Asked why the RC Cola unit would go public ahead of flagship
Zest-O, Yao said it was easier to convince business partners
than family members to bring a privately held company
public. In the case of Zest-O, it might take awhile because
there was “sentimental value” involved, he said. Having said
that, the group has yet to mandate an investment the bank to
arrange the prospective offering. Investment banker Jojo
Dispo, president of First Metro Investment Corp., said the
Zest-O group might be “saving the best for last” in pursuing
RC Cola’s stock listing ahead of Zest-O’s.
He also noted that RC Cola’s expansion in the region was all
“in sync with the Asean trade integration,” referring to the
planned creation of a unified Southeast Asian market by
2015.
2. According to Mr. Topaz in the past December 09, 2010
First, some history behind RC Cola. Chero-Cola started
production in 1905, and produced a number of beverages with
the prefix "Royal Crown." They manufactured such drinkables
as Royal Crown Ginger Ale, and Royal Crown Root-Beer.
Finally, they decided to start making sense and changed the
name of Chero-Cola to Royal Crown Cola, to go along
with everything else they sold. That's quite funny in my
opinion; I don't know why they didn't go with Royal Crown in
the first place. But I digress.
There's a certain magic to be had when drinking a bottle of
this delicious cola. You have a certain freedom, which can't
be destroyed by the two beverage giants, Coke and Pepsi. RC
is its own thing, and although it may be less popular, I
believe that it is the best out of the three. You just can't
get this sort of experience anywhere else.
Taste
RC has a very distinct flavor, and it leaves you craving
just one more sip every time. Many people always ask, "Do
you like Coke or Pepsi better?" My answer is always "Royal
Crown all the way!" It has a real strong cola flavor that
starts a bit bitter, but ends in a delicious sweetness that
sends a wave of pure awesome through the mouth and down the
esophagus.
RC has somewhat of an earthy flavor to it, which makes it
seems more authentic in my eyes. Don't worry though, it's
nothing major. In fact, it really complements the beverage,
creating an interesting diversion from the normal cola
taste, which in turn makes it taste even better.
Texture
Of course, being a cola, RC has a bubbly carbonation going
on. Even better though, it has a sort of frothiness that
makes it seem light. RC does go flat fairly though, which is
something of a disappointment. RC does make up for this
however with its lack of high-fructose corn syrup overload,
which makes for a much smoother stream of liquid going down
your throat. (Unlike Big Blue, this sports the exact
opposite.) But another thing... It contains high-fructose
corn syrup! I would have expected the glass bottle to use
sugar, as it is with Coke and Pepsi, but I was wrong. RC
isn't either of them, after all.
Design
I bought the bottle pictured at the top of the post, which
is glass. This I like, however I could have bought the
plastic variant for much cheaper. As always, quality comes
at a price. I like the way the bottle is designed, meaning
the way the way the neck of it melds with the body. It's
very streamlined and unique.
As for the logo, it's unexciting, but classic. RC Cola
rarely changes their logo, and if they do it's always a
minor change. Thumbs up to them for "Keeping it real," so to
speak. But you don't buy RC Cola to look at the bottle, do
you? (Well I do.) The twist-off metal bottle cap is
definitely a nice touch.
Overall Thoughts and Feelings
RC Cola is more scarce than other brands, but if you can
find it (Which I'm sure you can) it's definitely worth a go.
RC Cola has much more to offer in terms of flavor, which is
the key. It doesn't matter much that the bottle is boring,
really. Buy it for the taste, you won’t regret it.
3. Philippines most successful RC Cola market outside U.S.
According to RCCI President Edmund O. April 8, 2013 Manila,
Philippines (DMA) – Royal Crown Cola International (RCCI),
which handles the marketing of the American soft drink RC
Cola outside the U.S., has cited the Philippines as its most
successful international market.
RCCI President Edmund O’Keefe said Friday that local partner
Asia wide Refreshments Corp. (ARC) sell the soft drink very
well in the country. ARC has 10 bottling and distribution
plants in the Philippines.
O’Keefe and RCCI Managing Director Francis Lamprea were in
Manila last week to take part in the celebration of the RCCI
and ARC’s 10th year of partnership. They visited a community
for the homeless in the province of Pampanga to donate
$60,500 to the Living for Christ Foundation, which is
building and running the 700-home subdivision.
ARC people led by its executive vice president and chief
operating officer, Gerardo Garcia, accompanied O’Keefe and
Lamprea to the site to also donate the same amount at the
foundation will use to construct a wet and dry market.
ARC Chairman Alfredo Yao and Garcia also accompanied O’Keefe
and Lamprea to a courtesy call with Trade and Industry
Secretary Gregory Domingo at the country’s financial
district in Makati City Friday afternoon.
In the meeting, O’Keefe told Domingo that RCCI is also proud
of ARC for turning many Filipinos into entrepreneurs as
dealers of RC Cola.
The RCCI boss told Domingo he looks forward to ARC marketing
RC Cola to neighboring countries in Southeast Asia such as
Myanmar, Thailand and Vietnam.
ARC’s bottling and distribution system were studied by RC
Cola bottlers and distributors in Tajikistan and India for
adoption in the said countries, added Lamprea.
RC Cola was developed by Columbus, Georgia pharmacist Claude
A. Hatcher in 1905 and reformulated by Rufus Kamm in 1935.
The Dr. Pepper Snapple Group distributes the soft drink in
the U.S. while the RCCI, a subsidiary of Cott Beverages of
Canada, markets the product in other countries.
4. According to O'Keeffe(2013), a key success strategy of
ARC in the Philippines is adopting a business model that
values close partnership with dealers and encourages
sustainable livelihood. "Yesterday, we visited a lady who
started as a dealer six years ago in Antipolo. Today, she
employs around 15 people," noted O'Keefe.Royal Crown Cola
International (RCCI), the global beverage company of all
independent bottlers of American soft drink brand RC Cola
worldwide, has revealed that the Philippines is its most
successful overseas market to date. Asia wide Refreshments
Corporation (ARC) is the licensed bottler of RC Cola in the
Philippines.
"This [Philippines] is the most successful market of RC
Cola. We make a good product that these gentlemen from ARC
sell very well," remarked RCCI president Edmund O'Keeffe
during a courtesy call at the Department of Trade and
Industry (DTI) offices in Makati City on April 5.
O'Keeffe was referring to ARC Chairman Alfredo M. Yao and
Executive Vice President and Chief Operating Officer Gerry
T. Garcia, who both accompanied him and RCCI managing
director Francis Lamprea in meeting DTI Secretary Gregory
Domingo.
RCCI executives were recently in the Manila to participate
in the dinner gala that commemorated ARC's 10 years of
valuing partnerships in the country.
Lamprea added that ARC's unique distribution system
leverages on the innate entrepreneurial spirit of Filipinos.
Many communities thrive centered around the trade and
commerce that RC Cola distributorships provide, especially
in provincial and rural areas.
Commitment to delivering quality and a steady supply of
products is also vital behind ARC's success in catapulting
RC Cola to cult status in the Philippine market.
Now, the Philippine RC Cola business is serving as a model
for bottlers in other RC Cola markets such as Tajikistan and
India. Representatives from the RC Cola distributorship in
these two countries recently visited the ARC plants to study
its operation for adoption of best practices in their
respective businesses
"We're hoping that Mr. Yao and Mr. Garcia will take the
brand to other developing countries," said O'Keeffe on
expansion plans.
From one plant in Antipolo when ARC reintroduced RC Cola to
the Philippine market a decade ago, the company now has 9
plants, including one in Cagayan de Oro that started
operation in February and a partner bottler in Cebu.
5. According to Nelson C. Bagaforo of Sun Star Davao
(2011) as part of their continuing expansion program, Asia
wide Refreshments Corp. (ARC), maker of RC Cola soft drink
brand, is reportedly setting up a bottling plant in Cagayan
de Oro City to serve Northern Mindanao.
This CdeO plant will be the second in Mindanao after the
Binugao plant in Davao which opened just last year. ARC has
five other bottling plants situated in Metro Manila,
Southern Luzon and Central Luzon.
As a history, Gerry Garcia, current ARC executive vice
president and chief operating officer, along with Tony
Panajon and Butch Aves, decided to set up their own soft
drink company in 2002 and later teamed up with successful
entrepreneurs Alfredo Yao and Ricky Sandoval to establish
ARC.
Empowered with an exclusive license awarded by Royal
Crown Cola International, USA to manufacture and distribute
RC Cola in the Philippines, ARC steadily gained recognition.
Under the guiding hand of its founders, ARC, a 100 percent
Filipino owned, continues to flourish and is now a major
player in the beverage industry. It has at least realized
its vision to be the lowest cost producer of ready-to-drink,
non-alcoholic beverages and to be able to market products
with the best quality and value.
The all-time favorite cola in America since 1905 is now one
of the preferred cola in Metro Manila. RC Cola is now
available in 240 ml, 800 ml returnable bottles, 1.5 liter
PET bottles and 330ml cans.
Will RC Cola click in CdeO? Just some additional info,
Alfredo Yao owns Zest-O Corp. which has a plant in El
Salvador so most probably; the bottling plant will be set up
there.
Foreign Sources
1. Crazy for RC in Chile
August 18, 2010 by RC Cola International
According to the Canadian 2009 Carbonates Report, Chile
consumed roughly 2.09 billion liters of carbonates in 2008
and is projected to consume just over 2.19 billion liters of
carbonates in 2010. This equated to 124.4 liters per capita,
second in South America only to Argentina. And now, even
more Chileans can enjoy the many flavors of RC, including RC
Cola, RC Light, and RC Q Tropical, Lemon-Lime, Lemon,
Fantasy, Sun and Ginger Ale.
Royal Crown Cola International has teamed up with
Embotelladora Latin-American S.A. (ELSA) to launch RC Cola
throughout the country of Chile.
ELSA’s team is thrilled about working with a globally
recognized brand, such as RC Cola. Their fervor for the
brand will only add to the excitement created by the “Crazy
for RC” marketing campaign rolling out in September.
Combined with daily print advertisements, the Chilean
campaign will be supported by television spots and viral
presence.
Referring to the impending partnership, Edmund O’Keeffe,
President of Royal Crown Cola International, said, “RC Cola
International is proud to be teamed up with such a
distinguished organization. We welcome Embotelladora Latin-
American S.A. to the Royal Crown family of bottlers and look
forward to a long, profitable relationship.”
1. RCCI Technical Services International Seminar
Posted on August 18, 2010 by RC Cola International
RCCI Technical Services conducted an international seminar
in Manila – Philippines on March 4th and 5th for the Far East
& South Asia bottlers. There were 28 participants attending
the seminar from India, Thailand and Philippines. External &
RCCI teams presented an update on the latest technologies,
productivity improvement tools, and conducted an interactive
training exercise. The guest speakers included specialists
from Ecolab, Sidel and Anton Paar.
Topics Covered:
1. Food Safety, Cleaning and Sanitation in Beverage Plants
(by Mr. Albert Lee from Ekolab)
2. CO2 & Brix Measurement, in Plant and in Line (by Mr.
Alfred Baumegger from Anton Paar)
3. Bottle Blowing: Basics of Bottle Design, Preform
Selection, Trouble Shooting (by Mr. Patrice Lesage from
Sidel)
4. RCCI Technical Services (by Toby Polhamus from RCCI)
5. Six Sigma Tools – Affinity Diagrams, Root Cause
Analysis, Process Mapping & Control Charting, Lean
Manufacturing Tools – 5S, Kaizen Events, and Rapid
Changeovers (by Tim Adams from RCCI)
6. The Importance and Application of Sensory in the Plant
(training by Toby Polhamus and Krishna Mohan from RCCI)
Participants were challenged and rewarded for participation
and input in the interactive exercises. The seminar closed
with survey completion and presentation of certificates to
participants. The seminar was received very well. The
participants have given an overall rating of 4.48 out of 5.0
in their feedback survey for the overall value of the
seminar.
2. First moment of truth, when a consumer becomes a
shopper
Posted on May 15, 2012 by RC Cola International
A high priority for bottlers and distributors, and
ultimately retailers, is to drive consumers from the street
into the store. An enticing store exterior, especially in
high traffic areas, can be a huge factor in how many
consumers actually step inside and make a purchase.
Understanding this importance, Iceberg Foods Limited, RC
Cola bottler and distributor in India, launched a pilot
program aimed to increase RC’s market presence and to
satisfy existing and underserved market needs. Marketing
tools, such as billboards, counter wraps, and exterior
paintings, were used to execute the branding activity. In
the 50 outlets chosen, the results were overwhelming as
sales increased 200%!
This entry was posted in India, News from Around the World.
3. RC Cola continues to shake up the UK’s cola market
Posted on May 15, 2012 by RC Cola International
Following the successful launch of RC Cola regular and diet
in March 2011, Asda stores across the United Kingdom have
announced the addition of two new flavors, RC Cherry and RC
with zero calories. With almost half a million households
having already tried the brand, the new product offerings
will expand the brand’s in-store presence, help attract new
consumers, and offer existing customers more ways to enjoy
one of America’s original colas. Launch activities include
special trial prices, on-pack promotions, in-store sampling,
consumer giveaways, social media, and traditional public
relations.
This entry was posted in News from Around the World, United
Kingdom.
4. RC Cola debuts new, exotic flavors for RCCI global
bottler network.
According to Shiela Wan (2012), Royal Crown Cola
International (RCCI) announces the availability of an array
of new flavors in its beverage portfolio for its global
bottler network.
RCCI’s expanding bottler network in emerging markets such as
Africa, Southeast Asia and Latin America now has access to
RC Kick cola and the RCQ Special Edition Flavors line.
These new options give bottlers an edge in markets where
consumer demand for greater flavor variety is growing,
broadening their sales potential.
The new flavors are additions to RCCI’s existing portfolio
of beverage products, which include RC Cola, RCQ, Upper 10,
Cott Rain Energy Drink, Chadwick Bay and Ben Shaws.
RC Kick Cola combines RC Cola with the added punch of
guarana, an exotic fruit that gives a natural energy boost.
Along with guarana, RC Kick Cola features an advanced blend
of sugar and sweeteners to deliver a taste that stays true
to the RC Cola flavor consumers know and love, but with
fewer calories.
Its preformatted packaging designs can be tailored for any
market and are available for 2L and 0.5L bottles, as well as
16 ounce cans.
The packaging graphics deliver shelf impact that grabs
consumer attention, while the coloring and brand messaging
clearly communicate the benefit of guarana and reassure
shoppers that they are getting the delicious taste for which
RC Cola is known.
Formulated with exotic refreshment in mind, the RCQ Special
Edition Flavors line offers a mouth-watering assortment of
flavors including Guava Melon, Cranberry Acai, Sicilian
Lemonade and Guarana.
Each flavor’s packaging incorporates a unique creature
character that identifies the specific variant to generate
attention in stores and forge recognition.
Related Studies
Local Sources
1. Base on the studies of Rizza Alfonso (2011), MANILA,
Philippines - Waves of refreshing golden amber cola sweep
across the screen in rhythm with a rock song, carrying
viewers through an adventure into the RC Cola world. The
2011 local television commercial of RC Cola can be
considered the first-of-its-kind, using world-class special
effects in computer graphics imagery.
The TV advertisement was directed by Canadian-Filipino
director Marc Andre Debruyne, who regards the project as a
real challenge because, he says, animation of cola “has
never been done this way before.” Some sequences were shot
live, requiring large vessels of cola to create and capture
those special splashes and vortex, while the rest are 3D
computer simulation done by a leading visual and animation
house in Kuala Lumpur, Malaysia.
In the past, celebrity endorsers helped gain mileage for the
RC Cola brand in the minds of consumers. This year, however,
as the product celebrates its eighth anniversary in the
Philippines, executives of local licensee Asia wide
Refreshments Corporation (ARC) felt that the company was
ready to put the product front and center of the advertising
campaign. Having already established solid brand equity
through the years, Rizza Alfonso, ARC senior manager for
marketing, says, “ARC wanted to showcase the brand itself
this time. Our advertisement focuses more on the brand’s
unique attributes.”
Visuals of carbonated fizz forming into enduring national
symbols that represent the country’s major regions show how
much the product has become a part of the Filipino
lifestyle. RC Cola was unheard of by an entire generation of
Filipinos since the 1970s when RC Cola was first introduced
in the country and then pulled out of the market that same
decade.
In 2003 when it was reintroduced here, from a virtual
unknown in an arena dominated by giant soft drink brands,
ARC slowly but surely built up a steady network of
distribution and consumption that has made it the most
preferred cola brand in Metro Manila today, catering to a
national market that yearns for value.
The fact that Filipinos have embraced an international brand
like RC Cola and made it their own was captured in the rock-
anthem style of Kamikazee’s Tamis ng Unang Tikim. The
catchy, high-energy song — full of attitude and heart —
talks about that sweet, unforgettable first sip. Most people
thought that the song was created specifically for the
commercial, but, in fact, it was an already recorded hit
song of the popular Pinoy band from its “Long Time Noisy”
album. Company executives and ARC’s in-house advertising
team decided it was the perfect audio background to the new
generation TV ad that proudly proclaims RC as “Cola ng
Bayan.”
2. Base on the study of Efren Peñaflorida Jr. (2012) - An
extraordinary thing happened one ordinary afternoon in March
2012. The place was Cavite City, and the humble but
purposeful kariton became king of the road. Pushcart after
pushcart assembled on the pavement, not in a parade but in a
peaceful revolution on the streets, representing stubborn
hope that plods on through the grittiest of circumstances.
The Kariton Revolution was spearheaded by the Dynamic Teen
Company of Efren Peñaflorida Jr. and Cavite City’s SK
Federation, in cooperation with the Tourism Council, the
city government, and the local Department of Education.
Various pushcarts were decked out to represent the following
causes: kalikasan, kabuhayan, kalinangan, kapayapaan,
kabataan, karunungan, kalusugan (nature, livelihood,
culture, peace, the youth, knowledge, health) aiming to
ignite a spirit of community volunteerism. The caravan
commenced at the Ladislao Diwa Elementary School, where
townsfolk, local officials, and celebrities recommitted to
the task of nation building.
One of the companies that participated in the advocacy
campaign was Asia wide Refreshments Corporation (ARC),
Philippine bottler of RC Cola. Championing the Kabuhayan
crusade, ARC donated an RC Cola food kiosk fitted with a set
of wheels so it could roll down Cavite’s thoroughfares
during the caravan, and to serve as a mobile sari-sari store
afterwards. The ARC management believes in the advocacies of
DTC; thus, the kiosk will go a long way as a revenue-
generating resource to further enable DTC to enable others.
Kariton Revolution’s advocacy is multi-pronged, precisely
because real life’s like that: literacy and livelihood have
health implications, which in turn affect the peace and
order situation, and so on. This network of shared needs and
values is something that ARC can understand because as a
retail company with global ties, its stakeholders include
customers, employees and their families, investors,
distributors, and host communities, among others. By
supporting the Kariton Revolution, ARC reiterates its pledge
to be “a good neighbor.”
Positive transformation is a beautiful, inspiring thing, but
the process is not easy. Volunteers of DTC started out by
lugging backpacks that contained study materials, and as the
number of their street pupils grew, the backpacks they
carried grew heavier as well, pushing them to re-strategize.
Bonn Manalaysay, mentor to Peñaflorida and other emerging
street heroes, recounted how a youth volunteer who was a
former mais vendor suggested that the kariton could be
maneuvered even through a narrow eskinita. The humble
vehicle proved to be an excellent metaphor for pushing on
despite the odds, and provided an opposite, hopeful image to
“crab mentality,” that attitude of pushing and pulling,
stepping on and grabbing, so desperate and negative that it
ensures virtually no freedom from the dire situation.
Kariton Klasrum eventually won for Peñaflorida the CNN Hero
of the Year award in 2009. Today, the alternative learning
program is being adopted by the Department of Education, and
is being replicated in different parts of the country and
soon, also in Indonesia.
It was important for the Kariton Klasrum to first grow roots
in Cavite, where, like in many barangays in the country,
children as young as seven years old are already being
recruited as gang members, said Manalaysay. “In Cavite, we
have the Samahan ng mga Mangingisda, the TODA … but people
are not aware that they should also mobilize for the sake of
peace and order, the environment, and other causes. It’s
about time,” and Cavite is a good place to start given that
“it is the country’s seat of independence.”
3. Base on the study of Gerry Garcia (2009), ARC executive
vice president and chief operating officer, said its market
share has been achieved based on an attainment of only 65
percent distribution capacity of the plant.The Asiawide
Refreshments Corp. (ARC), maker of RC Cola soft drink brand,
has already captured 30 percent of the cola market in Davao
City, barely five months since the company opened its P500-
million plant in Binugao, Toril district here.
"This proves that Davaoenos like our product," he said.
Garcia said at present, RC Cola brand is being distributed
by at least 300 business partner dealers and distributors in
Davao City and neighboring areas.
"The plant is not yet fully operational, but we are already
giving the market an option at the same time empowering our
dealers and distributors to boost their income," he said.
Garcia said the Binugao plant is the company's sixth and the
first to be established outside of Luzon. Five other
bottling plants are situated in Metro Manila, Southern Luzon
and Central Luzon.
He said capturing almost one-third of the market in Davao
City is not an easy feat for this new player in the beverage
industry, as its executives believe the five-month period
was so short a time for their cola products to make a niche
in the market.
At the moment, Garcia said the company is not looking into
dominating the market, but would rather focus on areas that
have remained untapped.
"We are not here to kill our competitors. We are here to
provide the market and the dealers with an option… and we
are on the right track," Garcia said.
He attributed RC Cola's fast growth in this part of country
to the novelty of tasting a new product and brand recall.
Garcia also pointed out that its "revolutionized" business
model that focuses on building business partnership with
dealers and distributors also worked for the company.
"We don't offer exclusivity. We are the only company that is
open to competition," he said.
"In a monopolized market, the dealers feel they are
controlled. They feel they have no leverage to negotiate for
a better deal. We come in and they have an option," he
added.
Garcia said the company also provides its retailers and
distributors incentives and an implement measures how it can
improve their business.
4. Base on Krista Angela M. Montealegre, InterAksyon.com
(June 25, 2012) MANILA – Former ambassador Alfredo M. Yao
will wait for the financial market turbulence to pass before
pursuing a plan to list his beverage businesses.
"[The] plan [is] still on but we will wait for [the] right
timing. We think it [market] will stabilize soon," Yao told
InterAksyon.com in a text message.
Yao chairs Zest-O Corp as well as Asia wide Refreshments
Corp (ARC), which holds the license to manufacture and
distribute RC Cola in the Philippines. Last February, Yao
said ARC's maiden share sale will happen ahead of Zest-O and
will be bigger than the P3.19 billion that thrift lender
Philippine Business Bank raised from an initial public
offering (IPO) early this year.
Proceeds of the possible IPO will bankroll RC Cola's
domestic and overseas expansion.
The group of Yao, Antonio Panajon, Gerry Garcia, Butch Aves
and Ricky Sandoval formed ARC in 2002 and secured the
exclusive RC Cola license from Royal Crown Cola
International.
Aside from flagship RC Cola, ARC markets Zesto Fruit Soda
and Arcy's Rootbeer.Zest-O was established in 1981 as
Semexco Marketing Corp, pioneering the first-ready-to-drink
juice drink in flexible foil pouch. The company operates
five manufacturing plants around the country and employs
approximately 100 personnel for each facility.Zest-O markets
the flagship Zest-O, Sunglo and Big 250 juice drinks as well
as health drinks under the one brand.
5. Base on the study of Christian Bautista (2013) - The
group of former Ambassador Alfredo Yao plans to list its
soft drink company RC Cola following the success of its
initial public offering (IPO) for Philippine Business Bank
(PBB).
The move is expected come ahead of the group's planned IPO
for juice drink unit Zest-O Corp. and airline Zest Air.
Yao said that he plans to list RC Cola within the year and
expect proceeds to be "definitely be bigger than PBB."
The PBB stock listing, which took place on Tuesday, February
19, generated P3.2 billion.
The PBB stock opened at P34.75, higher than the IPO price of
P31.50 per share.
The stock contributed to another record day at the
Philippine index, which breached the 6,600 mark for the
first time ever.
Yao owns a majority stake in Asia wide Refreshments Corp.
(ARC), which has the exclusive rights to manufacture and
distribute RC Cola in Southeast Asia.
He said that the company is considering opening
manufacturing plants in Thailand, Myanmar and Vietnam.
ARC has 14 plants in the Philippines and is looking toward
expansion. It recently opened a plant in Cagayan de Oro and
is set to open another facility in Pangasinan within
February.
Yao, who said that he is eyeing a public float of 30% to 35%
for ARC, attributed RC Cola's competitiveness to its use of
returnable bottles, which makes the beverage cheaper.
ARC, the exclusive distributor of American brand RC Cola,
began its operations in 2002.Among the company's soft drink
brands are RC Cola, Zest-O and RC Root beer.
Foreign Sources
1. RC Cola is Better than Pepsi or Coke, base on the study of
Q. Reyes Apr.18, 2010 in Artistic Warfare
There’s no denying that RC Cola tastes better than Pepsi or
Coke. This is a fact that discerning soda drinkers
throughout the world have known for many years. What’s the
problem? Marketing. RC Cola doesn’t have the money to hire
the Michael Jacksons, or Britney’s, or Shakers or animate
cute polar bears and run propaganda campaigns on
television. They don’t have the connections to partner up
with the McDonald’s or KFC’s of the world in order to sell
their beverage.
RC Cola is for real people. Real poor people. You know
why? Because their price is right, but their quality is
better. I’m not saying Pepsi or Coke doesn’t have their
valid merits – they’re beverages that get the job done, as
well. I’m speaking of people buying into marketing rather
than true taste.
For example, Shasta is a “no-no” even for poor people. Even
though their price is right too, there’s something extremely
suspicious about .99 cents for 8 gallons of soda. The math
just doesn’t add up. On top of the price being suspiciously
low, if you don’t drink your Shasta 4-liter within 2.2
seconds of opening it, it goes flat. Not just flat… but
disgustingly flat.
I’m hoping not to offend anyone with my observation today,
and I hope my Shasta comments weren’t too harsh or
politically incorrect. I could dig in deeper and start
calling out other sodas, such as Wal-Mart’s American Fare or
Big K soda (from the east coast), but I think I’ve ruffled
enough feathers with crowning ROYAL CROWN as the ultimate
soda for the working class.
Royal Crown Soda– the official blue collar drink!
2. Base on Olly Wehring, (2012) Cott Beverages' RC Kick
cola, RCQ Special Edition Flavors.
Category - Soft drinks, CSD
Available - From this month
Location - Global, including Africa, South-East Asia and
Latin America
Price - Not specified
Distribution - Royal Crown Cola International
Cott Beverages has launched two CSD flavor lines through its
Royal Crown Cola International (RCCI) unit.
RC Kick Cola is a blend of RC Cola and guarana. The RCQ
Special Edition Flavors range comprises Guava Melon,
Cranberry Acai, Sicilian Lemonade and Guarana.
3. Royal Crown Cola International salutes growing African
cola thirst
Base on Ben Bouckley, (Aug-2012)
RC Cola International (RCCI) says that per capita cola
consumption is low in Africa and that it plans to exploit
growth opportunities across the continent by growing its
bottling network there.
The company recently attended the SAITEX and Africa’s Big
Seven 2012 show in Johannesburg, South Africa, where it
discussed its bottling network expansion in emerging markets
such as Southeast Asia, Latin America and Africa.
Moshy Cohen, vice president of marketing for RCCI (a
subsidiary of Cott Beverages since 2001) told
BeverageDaily.com that the firm didn’t see Africa as a
“single country with a single opportunity”.
“The cola market in Africa has been developing over the
years. At the same time, the per capita figures are still
very low and there is room for a great deal more growth,” he
added. Market share could vary he was responding to a
question regarding the extent of the market opportunity for
RCCI in Africa as it expanded its bottling network.
“There are more than 40 countries that make up Africa, each
with its own market opportunities, and RCCI considers each
one on an individual basis,” he told BeverageDaily.com.
“We analyze what each market’s requirements would be, review
the product portfolio and identify the different potential
bottling operations.”As a result, Cohen said, the potential
market share for RCCI could vary considerably in Africa;
based on the firm’s global experience, it varied from 5% to
30%.Cohen refused to be drawn on whether RCCI faced a fight
in Africa against established local brands and obvious
bigger multinational rivals, i.e. Pepsi and Coke.
4. RC Cola comes to India
Base on Ratna Bhushan,New Delhi , Oct. 6,2003
EVEN as the controversy over high traces of pesticide in
soft drinks is yet to be sorted out, the world's third
largest cola brand, Royal Crown Cola (or RC cola), has now
come to India.
While RC Cola was introduced in Delhi, and parts of Punjab
and Haryana on Sunday, the brand was soft-launched in
pockets of Andhra Pradesh and Madhya Pradesh almost a month
back.
The RC Cola brand was acquired by the London-based Cadbury
Schweppes Plc in October 2000. However, subsequently, the
Canada-based Cott Cola acquired the rights for the RC Cola
brand for all world markets other than the US. In the US, RC
Cola claims an approximate two per cent share of the total
cola market, while 12 per cent of the brand's sales are
outside the US and Canada. RC also supplies concentrate to
some other soft drink brands. For its Indian operations, the
company has appointed three licensing, franchising bottlers.
While the Delhi-based Shivam Cool Drinks has been appointed
as RC Cola's bottler for the Delhi, Western Uttar Pradesh,
Haryana, Uttaranchal and Chandigarh markets, Asian Lak
Health Foods Ltd has been appointed as RC Cola's bottler for
Punjab, Haryana and Chandigarh. For the Andhra Pradesh and
Madhya Pradesh markets it is Trinity Beverages.
RC Cola has been introduced in PET bottles of 600 ml and 2-
litre, priced at Rs 15 and Rs 40, respectively. There are no
immediate plans to foray into glass bottles, Mr. Rehan Khan,
Head, Operations, Shivam Cool Drinks, told Business Line.
However, in acknowledgement of the fact that small sizes
would be required to drive volumes, options of introducing
RC Cola in smaller PET bottles are currently being explored.
"The smaller bottles, at lower prices, could be introduced a
couple of months later. However, the plans have not yet been
finalized, Mr. Khan said.
While RC Cola is being introduced in `cola nut' (a tropical
cola nut) flavor for the time being, the brand will be
introduced in lemon and orange flavors the following month.
Meanwhile, the company claims it has made all efforts to
ensure safety of the ground water for bottling the beverage.
According to Mr. Khan, the groundwater being used by Shivam
Cool Drinks for RC Cola, for example, has been cleared by
the verification and testing institute, SGS India Pvt Ltd.
Unlike Coca-Cola and Pepsi, RC Cola will not splurge big
budgets on marketing and celebrity advertising. "We are not
competing with Coke and Pepsi head-on. Currently, the brand
is in test-marketing stage, and we have to gauge consumer
response to RC Cola before finalizing specific marketing
strategies," Mr. Khan said.
5. RC Takes Fight on Coke, Pepsi Deals to Public : Ads
Object to Dr Pepper, Seven-Up Acquisitions.
Base on the study of Jube Shiver Jr., June 12, 2000 Times
Staff Writer
Royal Crown Cola Co., seeking to boost its bid to block
separate corporate mergers proposed by soft-drink giants
Coca-Cola Co. and Pepsico, is launching a nationwide
advertising campaign today encouraging consumers to oppose
the mergers.
At issue are two merger plans that would concentrate 80% of
the U.S. soft-drink industry in the hands of the two
beverage giants. Coca-Cola has proposed a $470-million
buyout of Dr Pepper, and Pepsico has announced plans to
purchase Seven-Up Co. for $380 million. Both mergers are
under review by the Federal Trade Commission in Washington.
Many analysts say the deals pose a key test of how far the
Reagan Administration will go in allowing companies to
combine as they wish.
Royal Crown argues that the mergers would reduce
competition, drive independent bottlers out of business,
increase prices for consumers and "and threaten the jobs of
thousands of workers."
Ad Campaign
The company has purchased full-page advertisements headlined
"The Cola Wars and You," scheduled to appear in seven major
daily newspapers, including the Los Angeles Times, at a
total cost of $200,000. The ads, signed by James W.
Harralson, executive vice president and chief operating
officer of Royal Crown, explain the company's position and
ask consumers to let him know how they "feel about this
issue."
"Soft-drink consumers would be better off if RC's marketing
programs were as aggressive and well-funded as its lobbying
efforts," countered Pepsi spokesman Jim Griffith. "The
consumers' interest is best served by a variety of top-
quality products that are aggressively marketed. . . .
That's exactly what our purchase of Seven-Up is designed to
produce."
In Atlanta, a Coca-Cola spokesman said: "Our proposed
acquisition of Dr Pepper does not violate antitrust law and
is pro-consumer."
Royal Crown, the sixth-largest beverage company in the
United States, has been a vocal opponent of the separate
mergers planned by Coke and Pepsi since the deals were
announced about 4 1/2 months ago.
A spokeswoman for the FTC declined to comment on the
proposed mergers, saying that it's the agency's policy not
to discuss whether it is investigating any mergers. But
spokesmen for Coke and Pepsi confirmed that the FTC, which
did not seek court injunctions against any proposed
corporate mergers last year, is continuing its review.
References:
1. http://business.inquirer.net/108483/local-rc-cola-firm-
eyes-ipo
2. http://topazreviews.blogspot.com/2010/12/topaz-review-
of-rc-cola.html
3. http://dmanews.com/philippines-most-successful-rc-cola-
market-outside-u-s-8448.html.
4. http://www.rcciinsight.com/index.php/2010/08/chile/
5. http://www.rcciinsight.com/index.php/2012/05/first-
moment-of-truth-when-a-consumer-becomes-a-shopper/
6. http://www.rcciinsight.com/index.php/2012/05/rc-cola-
continues-to-shake-up-the-uks-cola-market/
7. http://wwa.interaksyon.com/business/64894/as-stock-
market-tanks-zest-os-alfredo-yao-puts-ipo-plan-on-hold
8. http://balita.ph/2009/11/08/rc-cola-captures-one-third-
of-cola-market-in-davao-city/
RESEARCH PARADIGM
HYPOTHESIS
Research Hypothesis: It is hypothesized that, If that the Rc
cola content would be safe for those consumer, if there’s
negative side such as acid, fats and etc. What would be the
efficient ways does the Rc cola company will be used to keep
their consumer still patronized it. If their market
strategies will be the top reasons why does they become the
top manufacturing company in local beyond of those multi-
company competitors.
OPERATIONAL DEFINITION OF TERMS
The following terms are defined operationally and
lexically to provide a common frame reference:
1.Acquisition. The act of acquiring or
gaining possession: the acquisition of real-estate.
2. Advertise. Describe or draw attention to public medium to
order to promote sales or attendance.
3.Advertisement. A public notice; means to inform and give
knowledge about a particular product.
4.Affinity Diagram. Is a business tool used to organize
ideas and data.
5.Affordable. Inexpensive; reasonably priced.
6.Aspect. A particular part or feature of something.
7.Beverage. A drink; esp. One other than water.
8. Blue Collar. Designating manual industrial work or
workers.
9.Brand. A type nof product manufactured by a comapany under
a particular name.
10.Boost. A source of help or encouragement leading to
increase or improvement.
11.Business.
A person, partnership, or corporation engaged in commerce,
manufacturing, or a service; profit-seeking enterprise conce
rn.
12.Business Model. Design of the operations of
a business which focuses on how revenue will be generated.
13.Capacity. The maximum amount of something that contain.
14.Cola. This refers to a carbonated soft drink colored
usually with caramel and flavored usually with extracts from
kola nuts.
15.Company. A commercial business.
16.Consumer.A design of the operations of a business whichfo
cuses on how revenue will be generated.
17.Consumption. The using of a resource.
18.Corporation. A company or group of people authorized to
act as a single entity and recognized such as in law.
19.Control. The power to influence or direct people's
behaviour or the course of events.
20.Data. Facts and statistics collected together for
reference or analysis.
21.Deliver. Bring a hand over (a letter; a parcel; or
ordered goods) to the proper recipient or address.
22.Diet Rite. Is a brand of no-calorie soft
drinks originally distributed by the RC Cola company. It was
introduced in 1958 and initially released as a dietetic
product, but was introduced nationwide and marketed to the
general public as a healthful beverage in 1962.
23. Distributor. An agent or who supplies goods to stores
and other businesses that sells to the consumers
24.Entrepreneur.A person who organizes and manages any enter
prise, especiallya business, usually with considerable initi
ative and risk.
25. Enterprise. A project undertaken or to be undertaken,
especially one that is important or difficult or that
requires boldness or energy: To keep the peace is a
difficult enterprise.
26. Experiment. A scientific procedure undertaken to make a
discovery; test a hypothesis ; or demonstrate a known fact.
27. Experts. A person who has a comprehensive and
authoritative knowledge of or skill in a particular area.
28.Financial. Relating to finance.
29. Fizz. Soda water or other effervescent water.
30. Flagship. The best or most important one of a group or
system: This store is the flagship of our retail chain.
31. Flavour. The distinctive quality of a particular food or
drink as perceived by the taste buds and the sense of
smells.
32. Flourish. A bold; extravagant gesture or action; made
esp.; to attract the attention of others.
33. Footprint. The area covered by something; in particular.
34.Franchise. An authorization granted by a government or
company to an individual or group enabling them to carry out
specified commercial activities.
35.Ginger Ale. A sweetened effervescent nonalcoholic drink
flavored with ginger extract.
36. Industry. Economic activity concerned with the
processing of raw materials and manufacture of goods in
factories.
37. International. Existing; Occurring; or carried on
between two or more nation.
38. Investment. The action or process of investing for
profit or material result.
39.Legend. A traditional story of popularly regarded as
historical but unauthenticated.
40.Litter. A metric unit of capacity; formerly defined as a
volume of 1 kilogram of water under standard condition.
41.Network. Connect as operate with a network. " the stock
exchanges are resourceful in networking these deals.
42.Manufacture. The making of articles on a large scale
using machinery.
43. Market. A regular gathering of people for the purchase
and sale of provisions; livestock; and other commodities.
44.Meeting. An assembly of people for discussion or
entertainment.
45.Partner. A person who takes part undertaking with another
or others; esp.; in a business or company with shared risks
and profits.
46.Partnership. The state or condition of being a partner;
participation; association; joint interest.
47.Patronize. Treat with an apparent kindness that betrays a
feelings or superiority.
48. Pharmacist. A person who is professionally qualified to
prepare and dispense medicinal drugs.
49.Physical assets. Actual property such as precious metal
or real states. Also called real or tangible assets.
50. Place. A particular position or point in space.
51.Popularity. The state or condition being liked; admired;
or supported by many people.
52. Plan. A detailed proposal of doing or achieving
something.
53. Price. The amount of money expected; required or given
in payment of something.
54.Private. Belonging to or for the use of one particular
person or group of people only.
55. Produce. Make or manufacture from components or raw
materials.
56. Process Management. Is the ensemble of activities and
planning and monitoring the performance of the process.
57. Products. A particle or substance that is manufactured
or refined for sale.
58.Production. The action of making manufacturing from
components of raw materials; or the process of being so
manufactured.
59. Promotion. The publicization of a product; organization;
or venture to increase sales or public awareness.
60.Refreshment. A giving of fresh metal or physical strength
or energy.
61. Refreshment. A giving of refresh metal or physical
strength or energy.
62. Strategies. A plan of action or policy designed to
achieve a major or overall aim.
63. Sell. Give or hand over (something) in exchange for
money.
64. Society. The aggregate of people living together with in
a more or less ordered community.
65.Soda. Carbonated soft drinks.
66. Soft drinks. A Non-Alcohol beverage typically contains
water. Usually a sweetener and usually a flavouring agent.
67.Spanning. To extend or Reach over or across (space or
time)
68. Taste. The sensation of flavour perceived in the mouth
and throat on contact with a substance.
69.Thirst.A sensation of dryness in the mouth and throat cau
sed by need of liquid.
70.Website. A computer connected to the internet that
maintains a series of web pages on the World Wide Web.
71.Customer Satisfaction – refers to "the number of
customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services
(ratings) exceeds specified satisfaction goals."(3)
Quality management - refers to act of overseeing all
activities and tasks needed to maintain the desire level to
of excellence. (4)
72.Service quality - refers to customer service need and
expectation.
73.External customer service - refers to "the ability of an
organization to constantly and consistently give the
customers what they want and need," (5)
74.Internal customer - refers to the service is when
customer service is provided to those whom a business
depends on for its day-to-day operations. (6)
75.Variables – refers to characteristics, number,
or quantity that can be measured or counted.
SYNTHESIS OF REALTED LITERATURE AND STUDIES
The above literature and studies were virtually helpful
to comprehend and be aware of the issues and problems as
well as the status of RC Cola Company in the industry on
beverages in the Philippines.
Most customers are aware to meet their satisfaction or
fulfill their wants and needs, to maintain the desire level
of their beverage. The relevance of this study is to have
more idea about how you treat and respect the customer.
Because were the lifeblood of any beverages are not given
proper attention and meaning to the taste that suite to
their target market. Loyalties of customer for the RC Cola
Company and customer satisfaction were really hardest part
of Quality Management.
Along in the line of relevance, the study of Q. Reyes
was makes the researcher aware on the marketing strategies
of RC Cola Company applied to the beverages business. In the
review of O'Keeffe (2013), a key success strategy of ARC in
the Philippines is adopting a business model that values
close partnership with dealers and encourages sustainable
livelihood.
The reviewed literature and studies give the researcher
valuable insights, ideas, pointers in the design and
development of the study which an edge of RC Cola Company to
the Multi- Company of beverages.