As Hari Raya is just one day away (17 July 2015), here is a recap of the festive marketing by the leading beverage companies in Malaysia – Coca-Cola, F&N and PepsiCo.

Coca-Cola – Share a coke and limited-edition bicycle

Coca-Cola is giving away limited-edition Coca-Cola bicycle, a continuation of the focus on limited-edition collectibles.

Like the Chinese New Year campaign where auspicious words are printed on the packaging, the Raya “Share a Coke” campaign features Raya greetings and names of friends or family members whom one would share a Coke with.

The other marketing campaign is personalisingthe Coca-Cola can with the chosen names. This campaign was held at selected venues in the country.

F&N – RM 1 million house

F&N is giving away lucrative prizes. The main prize is a new house worth RM 1 million. Other prizes include Toyota Innova, Nissan Almera, home theatre system and prize money. Property and car are the two things Malaysians are working hard, day and night, to accumulate. However, only a lucky few will win.Apart from prizes, Revive has introduced the limited-edition berry flavour to capitalise on Malay consumer preference for Fanta as well as syrups with vibrant colours.

PepsiCo – Donation

PepsiCo festive marketing is all about donating to the needy. During Chinese New Year, proceeds from the donation was channeled to Chinese schools. For Hari Raya, with the purchase of either a 1.5L bottle of Revive or a Pepsi, RM 0.10 will be donated to those in need.

The verdict

F&N contest is very attractive but not all consumers can win the prizes due to the limited number of prizes available. Coca-Cola’s festive campaign is more participatory eg share a coke and personalised can and therefore more interactive. PepsiCo’s charity drive is noble but the benefits to consumers are limited.

Coca-Cola Malaysia is going after volume in what is apparently a push towards smaller bottle packaging – 390ml and 1,250ml. The standard sizes are 500ml and 1,500ml. The company first launched the RM 1.00 PET bottle 390ml Coke in the sundry shop channel at the end of 2014. Now, the value RM 1.00 PET bottle and the RM 2.69 1,250ml PET bottle have become the mainstream variants for Coca-Cola at 99 Speedmart and in smaller store format such as sundry shops. 99 Speedmart opened its 600th outlet in November 2014.

These single-serve value variants are not available in the big-box retailers such as Giant, Tesco and Aeon Big and 7-Eleven convenience stores. Pepsi is selling the usual 500ml and 1,500ml variants at 99 Speedmart at a higher price points.

Coca-Cola is using the 390ml, single-serve pack to drive volume sales. The carbonated soft drink market is all about volume. In Indonesia, AJE Big Cola has not adjusted its price for 5 years maintaining it at IDR 3,000. The 390ml pack is cheaper on a per litre basis compared with the usual 500ml variant. The affordable price, RM 1.00, encourages impulse purchase thus higher purchase frequency. 99 Speedmart’s Near ‘n Save strategy means it is the ideal channel to promote the smaller volume single-serve bottle. The neighborhood grocer is popular with migrant workers and nearby residents for top-up shopping.

Returnable glass bottle gradually being displaced in the Philippines. Photo taken in 2012

Mismo Coke and Sprite (1st and 2nd from the right) in a sari-sari store. Photo taken in early 2015

Smaller size bottle or single-serve pack is a continuation of a trend seen in other regional markets. In the Philippines, the 300ml Mismo has replaced the affordable glass bottle as the preferred choice by street vendors and sari-sari stores.

Coca-Cola Malaysia’s volume strategy will likely pay off in the competition for volume market share, thanks to the highly appealing prices. The dual channel strategy also works targeting consumers with different purchasing power. The more expensive products are sold trough convenience stores and large retailers, while the affordable, smaller variants are available through sundry stores and minimarts.

Not much difference in volume as seen from a naked eye but the price difference is apparent –  Pepsi 500ml RM 1.90 vs Coke 390ml RM 1.00.

Est coming is coming to Malaysia. Back in 2013, news surfaced hinting of a possible introducing of Est as part of the synergy between F&N and Thai Beverage, both are owned by Thailand’s TCC Assets, a vehicle controlled by billionaire Charoen Sirivadhanabhakdi and his wife.

Now Est posters have appeared in Malaysia. Calls to F&N Beverages Marketing did not give us a clue on the actual launching date. The only answer given was “soon.” Est will join the existing myCola, which made its debut in East Malaysia in 2013 before being introduced in Peninsular Malaysia few months later.

 

Based on my personal view, myCola, targeting the lower-end market, does not seem to be delivering strong results due to the lack of marketing and poor packaging design. Some even reckoned myCola is a private label product from Mydin, one of the leading grocers in Malaysia. Mydin rhymes with myCola. However, we do know that myCola captured 6% of market share in 2013 within months after it was launched, according to F&N annual report. But there was no mentioning of myCola’s performance in the 2014 annual report.

There is speculation that Est will be replacing myCola. As early a November 2014, a report by TA Securities said Est will replace myCola. In fact, it has become quite difficult to get hold of myCola these days.

Est selling for RM 1.80 in an Indian sundry shop

RM 1.50 for an Est Cola in a Chinese food court

In the past few days, the 325ml Est has been spotted in Chinese food courts and Indian-run sundry shops but not yet in the leading grocers. Est is priced between RM 1.50 and RM 1.80. Noticed the Est in the Indian sundry shop, it is competing with RM 1.00 Sprite, Cola and Root Beer in 390ml PET. It is in this low-price, volume-driven environment where Est will be competing.