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Mecca Cola Business Proposal

Essay by   •  February 4, 2011  •  Study Guide  •  1,218 Words (5 Pages)  •  1,286 Views

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Propsed Title: Mecca Cola

Mecca Cola needs an an advertising campaign to boost its sales and gain a larger market share in Europe and the Middle East.


1. To find out if we have the potential to grow in the European and Middle Eastren markets.

Since the market is dominated by oligopolies such as Pepsi Cola and Coca Cola which are American brands that don't get any sympathy from the Arab and Muslim world which is our target audience.

2. To find out about the impact of our advertising campaign on our sales revenues.

So we wouldn't over spend our budget and lose too much in our advertising campaign while generating small revenues.

3. To increase consumer awareness about our product.

To create more awareness of our product since all previous studies have shown that customers usually choose a product when they remember its name from an advertisment.

4. To in crease the market share of Mecca Cola in Europe and the Middle East.

Our market share is very small in the region even though it has the potential to grow into the biggest softdrink in the Middle East.

The problem statement:

Mecca Cola is a relatively new to the soft drink market and lacks the experience and economies of scale of the competition such as Coca-cola and Pepsi-Cola. Mecca Cola doesn't have an established name in the markets it is working in. Especially that it needs large amount of capital to invest in advertising in order to match that of the competition, which is already established and has one of the most expensive brand names world wide. Mecca Cola needs to evaluate how much it can take from its competition and how long it can survive if the competition becomes aggressive.

The literature Survey:

Article 1: summary of "The Suburbs were only the beginning"

The Article mentions that a survey was taken of about a 100 individuals from different parts of the world mainly Pakistan, U.A.E., France, Malaysia and Senegal all have awareness of the product of Mecca Cola.

More than half understand the message of Mecca Cola and from 5 to 7 people have tried it and out of those 5 are loyal to the brand. The article mentions also that they are gaining a market share in what used to belong to US brands, although the product started humbly it has been very successful and has been made into all languages of the world. Its also an economic challenge

to the US products for people seeking the alternative. They even forced Coca Cola to think locally instead of globally. There is also a sharp increase in Mecca Cola revenues even after the aggressive competition they faced from US products. Finally the article mentions that the product is directed as ablow against imperialism.

Article 2:summary of "Mecca-Cola, for Thirsty Parisians Of a Persuasion; New Soda Pledges to Give To Palestinian Kids' Funds"

The article mentions that ethnic shops in St.Denis in France are selling more Mecca Cola than Coca Cola and that most of the customers are Muslims. Although the drink has the same colors and taste of Coca Cola it has a different advertising method which is 10% of its profits go to Palestinian kids. The founder made the drink to oppose American imperialism and to offer charities and job oppotunities for minorities. It exports to 22 countries worldwide and not all of them of Muslim majority, there are also other competitors like Arab Cola and Muslim-up but the most significant and the largest is Mecca Cola. Even though some peopl feel that its wrong to use religious figures to sell a soft drink.


For the research methodology, after extensive studying of the markets and taking all factors we have decided it would be best if we went the following recommendations for the methodology of the research

firstly we should use survey method ask people in Dubai about their opinion and perceptions of Mecca Cola. In order to know what we should use in our advertising campaign in terms of coverage, channels and how much should be invested in the advertising campaign.

Secondly we should look at our historical data from the sales figures, past research and market trends in terms of growth and demand for our product and also to establish how much awareness is present with the consumers.this should help us get a clearer idea when forecasting the amount of sales that could be generated from our increase in advertismentor decrease in other areas, since it will measure the profitability of the



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