Specify the market entry mode that Mecca Cola used to enter the global market? Mecca Cola: Marketing of a 'Muslim' cola to the European marketUntil now the cola war has mainly been going on in North America and Europe. But a French Tunisian, inJanuary 2003, opened up a second front by producing a carbonated drink named Mecca Cola, a new softdrink designed to cash in on anti-US sentiment, mainly in European markets. The new drink will bemarketed in bottles of 1.5 litres and 330 ml cans.Zam Zam ColaIt is not the first time Coca-Cola has been the target of a 'buy Muslim' challenge. Zam Zam Cola, an Iraniandrink named after a holy spring in Mecca, has won an enthusiastic reception in Saudi Arabia and Bahrain.US companies such as McDonald's, Starbucks, Nike and the two cola giants admit the campaign iswounding them. Sales of Coca-Cola have dropped between 20 and 40 per cent in some countries. InMorocco, a government official estimates sales of Pepsi and Coca-Cola could fall by half in the north, whichis a stronghold of Islamic groups. In the United Arab Emirates, sales of the local Star Cola are up by 40 percent over the past three months. Zam Zam, which also produces non-alcoholic 'Islamic beer', has a longpedigree in Iran, where it was founded in 1954 and today has 47 per cent of the domestic market. For manyyears it was the Iranian partner of Pepsi Cola until their contract was ended after the 1979 revolution. ASaudi firm owned by one of the kingdom's princes, Turki Abdallah al-Faisal, in January 2003 signed anagreement with the Zam Zam Group, giving the Saudi company exclusive distribution rights in SaudiArabia, Egypt and a number of other Arab countries. Zam Zam was taken over by the Foundation of theDispossessed, a powerful state charity run by clerics, and today it employs more than 7,000 people in its 17factories in Iran. It is now planning to build factories in the Persian Gulf. Its cola is already exported toSaudi Arabia, Bahrain, Qatar, the United Arab Emirates, Oman, Kuwait, Afghanistan and Iraq, and thecompany says it will soon ship its drinks to Lebanon, Syria and Denmark - its first European client.The marketing and internationalization of Mecca ColaOther firms in the Middle East have tried creating different cola drinks, but none has turned its drink into apolitical weapon. The first businesses to sell Mecca Cola were what Mr Mathlouthi described as 'smallethnic shops in Muslim areas'. Now the drink can be found on the shelves of large cash and carrysupermarkets in France, Belgium and Germany. The company behind Mecca Cola says the United Kingdomis also a huge market and already has orders to send about 2 million bottles a month to Britain. Mecca Colawas originally targeted at France's Muslim community but now several major hypermarket chains in Franceare stocking the soft drink. While Coca-Cola's revenues in the Middle East represent less than 2 per cent ofits global business, it is galling for Coke to lag behind Pepsi in the region. Britain's 1.8 million Muslims have only recently begun to discover a collective voice and it remains unclear whether a boycott or a 'buyMuslim' campaign will occur. In Muslim areas of Paris the soft drink is sold for £1.20 per 1.5 litre bottle,approximately the same as its US rival Coke.Latest developmentsRiding on anti-western anger over issues like Palestine, Iraq, Iran and Afghanistan, and also the DanishMuhammed cartoons (January-February 2006), Mecca Cola has achieved impressive sales in severalMuslim countries. Pakistan, Algeria, Yemen, Malaysia and France are Mecca Cola's top markets. In 2006the demand for Mecca Cola is estimated to be 1.5 million cans per month in the Gulf region alone. MeccaCola (with its HQ in the United Arab Emirates) says it will now launch coffee shops under the brand nameMecca Café to provide an alternative to established western outlets in Muslim countries. The first coffeeshop is ready to be opened at Dubai Healthcare City. The Dubai opening will be followed by coffee shops inKuala Lumpur in Malaysia and Pakistan's Islamabad. Mecca Cola plans to have at least one coffee shop inevery Muslim capital. After that it will discuss franchising arrangements with partners for expanding thechain. The company has also launched a new energy drink called 'Mecca Power'. This drink is based purelyon halal ingredients (Husain, 2006).

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Specify the market entry mode that Mecca Cola used to enter the global market?

Mecca Cola: Marketing of a 'Muslim' cola to the European market
Until now the cola war has mainly been going on in North America and Europe. But a French Tunisian, in
January 2003, opened up a second front by producing a carbonated drink named Mecca Cola, a new soft
drink designed to cash in on anti-US sentiment, mainly in European markets. The new drink will be
marketed in bottles of 1.5 litres and 330 ml cans.
Zam Zam Cola
It is not the first time Coca-Cola has been the target of a 'buy Muslim' challenge. Zam Zam Cola, an Iranian
drink named after a holy spring in Mecca, has won an enthusiastic reception in Saudi Arabia and Bahrain.
US companies such as McDonald's, Starbucks, Nike and the two cola giants admit the campaign is
wounding them. Sales of Coca-Cola have dropped between 20 and 40 per cent in some countries. In
Morocco, a government official estimates sales of Pepsi and Coca-Cola could fall by half in the north, which
is a stronghold of Islamic groups. In the United Arab Emirates, sales of the local Star Cola are up by 40 per
cent over the past three months. Zam Zam, which also produces non-alcoholic 'Islamic beer', has a long
pedigree in Iran, where it was founded in 1954 and today has 47 per cent of the domestic market. For many
years it was the Iranian partner of Pepsi Cola until their contract was ended after the 1979 revolution. A
Saudi firm owned by one of the kingdom's princes, Turki Abdallah al-Faisal, in January 2003 signed an
agreement with the Zam Zam Group, giving the Saudi company exclusive distribution rights in Saudi
Arabia, Egypt and a number of other Arab countries. Zam Zam was taken over by the Foundation of the
Dispossessed, a powerful state charity run by clerics, and today it employs more than 7,000 people in its 17
factories in Iran. It is now planning to build factories in the Persian Gulf. Its cola is already exported to
Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Oman, Kuwait, Afghanistan and Iraq, and the
company says it will soon ship its drinks to Lebanon, Syria and Denmark - its first European client.
The marketing and internationalization of Mecca Cola
Other firms in the Middle East have tried creating different cola drinks, but none has turned its drink into a
political weapon. The first businesses to sell Mecca Cola were what Mr Mathlouthi described as 'small
ethnic shops in Muslim areas'. Now the drink can be found on the shelves of large cash and carry
supermarkets in France, Belgium and Germany. The company behind Mecca Cola says the United Kingdom
is also a huge market and already has orders to send about 2 million bottles a month to Britain. Mecca Cola
was originally targeted at France's Muslim community but now several major hypermarket chains in France
are stocking the soft drink. While Coca-Cola's revenues in the Middle East represent less than 2 per cent of
its global business, it is galling for Coke to lag behind Pepsi in the region. Britain's 1.8 million Muslims

Transcribed Image Text:have only recently begun to discover a collective voice and it remains unclear whether a boycott or a 'buy Muslim' campaign will occur. In Muslim areas of Paris the soft drink is sold for £1.20 per 1.5 litre bottle, approximately the same as its US rival Coke. Latest developments Riding on anti-western anger over issues like Palestine, Iraq, Iran and Afghanistan, and also the Danish Muhammed cartoons (January-February 2006), Mecca Cola has achieved impressive sales in several Muslim countries. Pakistan, Algeria, Yemen, Malaysia and France are Mecca Cola's top markets. In 2006 the demand for Mecca Cola is estimated to be 1.5 million cans per month in the Gulf region alone. Mecca Cola (with its HQ in the United Arab Emirates) says it will now launch coffee shops under the brand name Mecca Café to provide an alternative to established western outlets in Muslim countries. The first coffee shop is ready to be opened at Dubai Healthcare City. The Dubai opening will be followed by coffee shops in Kuala Lumpur in Malaysia and Pakistan's Islamabad. Mecca Cola plans to have at least one coffee shop in every Muslim capital. After that it will discuss franchising arrangements with partners for expanding the chain. The company has also launched a new energy drink called 'Mecca Power'. This drink is based purely on halal ingredients (Husain, 2006).

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