Launch of Pakola in Saudi

Arabia

Global Market

Mentor:
Sir Muhammad Yousuf
Group Members:
Annam Rani
Faizmeen Shehzad
Shahmir Khan Jadoon
Salman Shahid Chishti
Zeeshan

Table of Contents
Executive Summary.................................................................................................... 3
About the Host Country.............................................................................................. 4
Why Saudi Arabia?.................................................................................................. 5
PHENOMENAL GROWTH....................................................................................... 5
HIGH VOLUME OF IMPORTS.................................................................................. 5
FAST EXPANDING, YOUNG AND INCREASINGLY WEALTHY POPULATION................5
RANKED 6TH IN THE WORLD FOR MACROECONOMIC STABILITY..........................5
DIVERSIFYING INDUSTRY, DIVERSIFYING TASTES.................................................5
FISCAL FREEDOM................................................................................................. 5
Marketing Environment of Saudi Arabia.....................................................................6
Distribution Channels.............................................................................................. 6
Marketing and Advertising....................................................................................... 6
Core Views............................................................................................................... 6
Customer Support/Service....................................................................................... 7
SWOT Analysis............................................................................................................ 8
Strengths................................................................................................................. 8
Weakness................................................................................................................ 8
Opportunity............................................................................................................. 8
Threats.................................................................................................................... 8
Porters Five forces Model........................................................................................... 9
Threat of New Entrant............................................................................................. 9
Rivalry Among Existing Competitors.......................................................................9
Bargaining Power of Buyers..................................................................................... 9
Threat of Substitute................................................................................................. 9
Threat of Suppliers.................................................................................................. 9
Environmental Sensitivity......................................................................................... 10
Political.................................................................................................................. 10
Economical............................................................................................................ 10
Social..................................................................................................................... 10

Technological......................................................................................................... 10
Segmentation........................................................................................................... 11
Targeting.................................................................................................................. 11
Positioning................................................................................................................ 11
Product and Brand Strategy..................................................................................... 11
Price Strategy........................................................................................................... 12
Place Decision.......................................................................................................... 12
Promotion................................................................................................................. 12
Digital Marketing................................................................................................... 12
Social Media....................................................................................................... 12
Television............................................................................................................ 12
Internet Marketing.............................................................................................. 12
Outdoor Marketing................................................................................................ 12
In-store Marketing................................................................................................. 13
Print Marketing...................................................................................................... 13

Executive Summary

This study was done to research on domestic business making an entry into
a foreign market. We are thinking to launch Pakola in Saudi Arabia as there is
a good demand of carbonated drinks. According to a report, soft drinks are
in growth from 2015 and people prefer to drink soft drinks rather than tea
and other juices. Players are launching new promotions in Saudi Arabia which
are targeting youth and they prefer to drink soft drinks.
We have formed the report after conducting secondary research. We
conducted a competitive research as well as to the marketing efforts of Coca
Cola and Pepsi etc. Through our research we were able to formulate the
launch of Pakola in Saudi Arabia and what techniques would be used to make
this product a success in Saudi Arabia.
We have successfully covered all the marketing aspects in our data. We have
explained the various steps we will be taking to launch Pakola and whom we
will be targeting. It was also necessary for us to evaluate the Industry
favorability of us launching the drink in Saudi Arabia. We went through a
rigorous industrial and environmental analysis after which we devised our
marketing efforts.

Pakola The Brand

Pakola is one of the most popular brands in Pakistan. The brand was created on 14th
August, 1950. As per our slogan, DIL BOLA . Pakola, we believe that Pakola is the
heart beat of the nation and with its amazing taste holds the potential to ride the
taste buds of the consumers at home and abroad. Although the green drink Pakola
Ice Cream Soda is anonyms with the name Pakola, but thats not all, Pakola gives
sensation by bottling other fruity flavors namely Pakola Orange, Pakola Lychee,
Pakola Raspberry, Pakola Fresh Lime and Pakola Vino.
Our Quality Food Safety and Environment Standards
Mehran bottlers is the 1st bottling plant is South Asia. Which has been certified to
integrated management system based on (ISO 9001: 2000), (ISO 14001: 1996) and
(RVA HACCP) standard. Our quality and food safety system follows the FDA GMP
requirements and codex. Our products are manufactured under strict CGMP and
Hygiene controls.
Our Technical Team
Mehran bottlers has well experienced people in technical side. Their experiences
and ongoing trainings make them more confident and prepare to face all
challenges.
Painting the Globe Green
Pakola is Pakistan's national drink but its might is spread all over globe. Its the only
Pakistani soft drink which is available in America, Africa, Australia, Afghanistan,
Canada, Middle East, New Zealand and The United Kingdom.
Production
Mehran bottlers operate one of the most modern can filling plant in Pakistan with a
filling capacity of 200 cans per minute. The plant is fully computerized and conforms
to the highest international quality standards. Apart from the above, Mehran
Bottlers also operate a bottle filling plant with a capacity of 240 bottles per minute.
The plant can fill both glass and pet bottles of various sizes.

Distribution
Pakola is distributed nation wide through our network of vehicles and distributors.
The company maintains a fleet of trucks for operations in the Karachi base market.
Human Resource
The company employees 150 personnel at its Karachi plant. Constant efforts are
initiated by the management to train and upgrade the employees and to provide
better training and working environment.

Mission
The company mission is to provide its consumer all over the globe with
premium quality beverages with a vast variety that guarantees consumer
satisfaction an also provide opportunities for growth to its employees and
the communities in which they operate.
Vision
Pakola has and will fulfill its promise to provide international quality
beverages made with the finest ingredients to its consumers and come up to
their expectations at all costs.

Brands

Pakola
Bubble Up
Lime Fresh
Double Cola
Vimto
Apple Sidra
Viital Water

About the Host Country

Saudi Arabia is one of the largest soft drinks consumers in the Middle East.
Saudi Arabias soft drink industry is the largest by volume and value than
any country in the Middle East. According to industry estimates, sales of soft
drinks are expected to continue to experience strong growth, increasing
gradually by 52.6 percent in local currency-value terms up to 2016.
Saudi consumers are brand-loyal and increasingly interested in new and
innovative products.
Soft drinks witnessed continued growth in 2015 in both volume and current
value terms due to the continued efforts of domestic and international
operators to launch more advertising campaigns for their brands in juice, soft
drinks, energy drinks and bottled water. This is because consumption of soft
drinks and other sub-sets (bottled water, juices, among others) is much
higher in GCC states than other neighboring countries. Therefore, with the
large demand for bottled soft drinks, there is a need for large scale
production of beverages into PET (polyethylene terephthalate) bottles.
The soft drinks market in the Middle East is proving increasingly dynamic
with a great potential for growth, underpinned by the young population and
increasing consumer demand for a wide variety of non-alcoholic drinks while
carbonates are the most popular soft drinks in many countries.

Why Saudi Arabia?

PHENOMENAL GROWTH
o 47% of the Gulfs GDP, growth 5.5% - 6.8% last 2 years.
o Worlds 8th fastest growing economy (IMF)
o Non-oil growth 7.2%

HIGH VOLUME OF IMPORTS

o $120 billion in 2012
o High volume sectors include construction, fit-out, interior products
and textiles
o Growth in import partners year-on-year

FAST EXPANDING, YOUNG AND INCREASINGLY WEALTHY

POPULATION
o 30 million by 2016, of which 66% is under 29.

RANKED

6TH

IN

THE

WORLD

FOR

MACROECONOMIC

STABILITY
o $102.9 billion budget surplus
o Heavy investment in non oil industries

DIVERSIFYING INDUSTRY, DIVERSIFYING TASTES

o Europeanisation of peoples tastes
o Entrepreneurial spirit, energetic private sector
o

Availability of capital, stability in exchange & protection of trade

marks

 FISCAL FREEDOM
o 4th globally for 'fiscal freedom
o 7th most rewarding tax system (World Economic Forum)
o Easy capital movement and repatriation of profits

Marketing Environment of Saudi Arabia

The Saudi market represents both a challenge and opportunity for foreign
businesses. By itself, the Kingdom is not an overly large market, with a
population of more than 20 million. It does, however, lie at the heart of a far
larger regional market that includes the GCC, the wider Arab world, and the
Indian subcontinent, totaling some 1.6 billion people. The Saudi market is
also characterized by consumers with high disposable income. The large
percentage of the population aged under 20 will likely substantially increase
the demand for a wide range of consumer goods and products in the coming
years.

Distribution Channels
There are three primary marketing regions in the Kingdom: the Western Region,
with the city of Jeddah as the main commercial center; the Central Region with the
capital, Riyadh; and the Eastern Province, where the oil and gas industry is
concentrated.

Marketing and Advertising

Direct marketing is not a widely used technique in Saudi Arabia. Personal relations
between vendors and customers are extremely important in the Kingdom. Many
types of direct marketing practiced in other countries are not practiced in Saudi
Arabia due to Islamic precepts concerning gender segregation and privacy in the
home. Limited direct marketing is being conducted through commercials on satellite
television providing consumers with a local telephone number to arrange purchase
and delivery.

Advertising is a rapidly expanding business in the Kingdom, and is crucial in gaining

retail sales and market share.

Core Views
The replacement of Saudi Arabia's heir in April 2015, along with other major
changes in the country's leadership, represent consolidation. The growth being seen
in the young population of Saudi Arabia is expected to continue rising at a rapid
pace. The strong growth being seen in internet penetration in the Kingdom also
means that the new generation of Saudi consumers is very much in synch with the
latest global trends and they are likely to attempt to incorporate these trends into
their own lifestyles. Whereas growth in health awareness may have a negative
effect on the carbonates consumption of a small proportion of the Saudi population,
the almost addictive attitude towards carbonates among most Saudi youngsters
means that most can be expected to stick to their usual regular carbonates, with
only a few health-conscious consumers, mainly women, shifting towards low calorie
carbonates. These factors are set to continue positively influencing growth in
carbonates over the forecast period.

Customer Support/Service
Saudi Arabia has an open and competitive market. As a result, above average sales
service and customer support are important factors in winning and maintaining new
clients.

SWOT Analysis
Strengths
1.
2.
3.
4.
5.
6.

Well-known brand all over the world started from 1950

Online order can be placed
Vast variety of drinks
Good reputation in Pakistan market
Mostly demand of Green drink
Saudi Arabiarsquo;s soft drink industry is the largest by volume and value than any
country in the Middle East
(http://english.alarabiya.net/en/business/economy/2014/12/28/Saudi-Arabia-islargest-soft-drinks-consumer-in-the-Middle-East.html)

Weakness
1.
2.
3.
4.
5.
6.

Big brands already exist in the market

Competition is high
Aggressive marketing required
No formal organizational procedures
Weak financial position
Less Distribution

Opportunity
1.
2.
3.
4.

Youth demand is high of soft drinks

Soft drinks growth is increasing
Taxes are low
Saudi Economy is stable

Threats
1. Suppliers may not be easy to approach
2. Health issue by soft drinks

Porters Five forces Model

Threat of New Entrant
Industry cost is high as there is cost of production then packaging then marketing
which require a huge budget. Machinery which fills bottles, make soft carbonated
drinks and plant cost also requires heavy investment.
Market is on maturity phase because brands like Pepsi and Coke have a large
market share that new entrant will not survive easily and for survival aggressive
marketing will be required.

Rivalry Among Existing Competitors

Industry is almost on maturity and top brands Coke and Pepsi fight with each other
for the increase in market share thus Pakola needs strategic marketing to make a
better place in the market.
Strong advertisement, TV Ads, out-door campaigns are required for its awareness
and growth in the market.

Bargaining Power of Buyers

Brand loyalty is high so you need to convenience the buyer to buy your brand.
This industry is on its maturity so people prefer to buy old brands.
Customers have many options in the market as their own brand Mecca Cola exist in
market which satisfy them so we need to provide customer satisfaction as well.

Threat of Substitute
There is an indirect competition of RTD Coffee with soft drinks but people prefer to
buy soft drinks most rather than coffee or tea in Saudi Arabia.
Other substitutes like Nestle juices, Red Bull energy drinks and Lipton tea etc. have
indirect competition with us.

Threat of Suppliers
If we export Pakola from Pakistan then we dont need any raw material supplier from
Saudi Arabia
If we set our own plant in Saudi Arabia then:

Electricity is not an issue in Saudi Arabia

Too many water suppliers like kindasa, Sawaco, Nalco in Saudi Arabia
Sugar can be imported from Pakistan

Environmental Sensitivity
Political

Changes in laws and regulations, including changes in accounting standards

and taxation requirements

Stable political conditions

Economical

Market will continue to play a major role in the success and stable growth for
a majority of the beverage industry.

Social

Citizens are practicing healthier lifestyles.

The need for bottled water and other more convenient and healthy products

are in important in the average day-to-day life.

Consumers from the ages of 37 to 55 are also increasingly concerned with
nutrition. There is a large population of the age range known as the baby
boomers. Since many are reaching an older age in life they are becoming
more concerned with increasing their longevity.

Technological

The new technology of internet and television which use special effects for
advertising through media. They make some products look attractive. This

helps in selling of the products. This advertising makes the product attractive.
Introduction of cans and plastic bottles have increased sales
As the technology is getting advanced there has been introduction of new
machineries all the time.

Segmentation

Areas

Age Group
Gender
Occupation
Socio-Economic Class
Lifestyle
Education
Occasions

Geographic
Urban areas like in Riyyadh, Jeddah,
Mecca and Madina.
Demographic
16 to 30
Male and Female
Students and Professionals
SEC B & C
Psychographic
Outgoing and active
Basic level of education
Behavioral
All national occasions

Targeting
Our main target market is the youth residing in Saudi Arabia who enjoy carbonated
drinks. Whereas the major objective of our drink is to counter the use of water with
Pakola so our target market includes everyone.

Positioning
We are going for a nationalistic positioning approach. In Pakistan, the green color of
Pakola is affiliated with our Flag. We are going to take the same approach and
position Pakola as a Patriotic Drink. A drink which is refreshing and light. As Saudia
Arabia is a hot weathered country and consumption of cold drinks is very high; this
would help us gain a competitive advantage by show casting a patriotic drink that
helps to counter the weather effect. We would position it as a drink that is
refreshing and cools your body down. It would be positioned to counter the hot
weather and our goal is to beat the water consumption outside the home.
This positioning will help us affiliate with our target market as well as the youth like
to show their Nationalism. Saudis being very patriotic would help us capture the
market.

Product and Brand Strategy

Pakola is representing Pakistan with its logo and drink color so we market
accordingly as the Pakistani most favorite drink is in Saudi Arabia now and this
brand will refresh your mind. There is a wide range of drinks available in Pakola
which help us out in market its variants as well. We start pairing the green color
with Saudi Arabia. A patriotic drink for patriotic citizens to counter the Non-patriotic
weather. Our product needs to trigger the emotional aspect of our consumers to
gain an advantage in the market.
We will create a very strong brand identity in the minds of the consumer.

Price Strategy
Following Porters Generic Model, we will be following the best cost strategy. This
means we will provide them Pakola at a low cost with good quality. This would help
us stand right beside our competitors while having an edge of color and trigger
effect.

Place Decision
Pakola is going to be distributed in all the major Superstores and small retail outlets
within the specified Saudi Arabian cities. We will make sure that the drink is
available at every possible store, supermarkets, universities etc. We will also be
putting up Pakola vending machines at different malls and locations where there is
huge youth traffic. These vending machines will have all the different Pakola
variants. Placing to be started from the big cities that include Riyyadh, Jeddah,
Makkah and Medina.

Promotion
Digital Marketing

Social Media
o Create a huge hype on Facebook & Twitter
o Most preferable medium as our target audience is found here all
the time

o Make it the new big thing Pakola & Saudi Arabia

o Create an interactive forum with our target audience
o Ignite the patriotism of our youth

Television
o Most widely used platform

Internet Marketing
o All advertisements will be live on YouTube
o We will invite the youth to post up their videos with Pakola

Outdoor Marketing

Billboards on the major roads

BTL activities in different shopping malls
Free sampling in school, colleges, universities and in stores

In-store Marketing

Shelf space
In-store launches of the drink
Ceiling hangings
Kiosks
Sampling

Print Marketing

Magazines
Newspapers