Challenge For Mecca Cola And Mathlouthi example essay topic

MECCA-COLA: A MESSAGE IN A BOTTLE There is no denying that Mecca-Cola is a political product. Commercially, it's capitalizing on the growing anti-American sentiment. The interesting part, which probably no one has ever done before, is the fact that the founder is making a political statement as well as embracing others with the same attitude through a consumer product. At some level it looks ironic that an anti-American movement takes form in the very byproduct of American culture; however, this is also saying that not all about America is bad. It's not the culture that is being fought, but rather the politics. And Mecca-Cola fights by trying to provide conscience to its consumers, to provide meaning in consumerism (" engage'e").

Mecca-Cola was born as a reaction to the anti-American sentiments, and it primarily appeals to consumers who support American brands boycott campaign. Entry consumers are primarily Muslims, with the product first being distributed in "small ethnic shops in Muslim areas". While Mecca-Cola may continue to appeal to Muslim consumers, its policy to give profits for charity may appeal to other "engaged consumers". By positioning itself as the non-American alternative of a cola, Mecca-Cola directly challenged Coca-Cola and Pepsi as the "American products".

However, as in Mathlouthi idealism, Mecca-Cola will keep the focus on providing an alternative cola drinks, not directly challenge those big players as competitors. Now that Mecca-Cola has successfully initiated a new segment of "alternative cola", its real competitors are the other alternative cola that position themselves as a product for Muslims while also offering corporate social responsibility like Mecca Cola. Among the major competitors are ZamZam Cola, Qibla-Cola, Muslim Up and Arab Cola. The launch of Mecca-Cola was a success, perhaps because it is providing a fresh alternative to common consumerism, while using political and social charity leveraging advantages.

Nevertheless, Mecca-Cola is vulnerable to competition (specific target base, low entry barrier for me-too products), and its positioning appeal may wear out if world politics change. Mecca-Cola could be a sustainable business if it emphasizes on universal values that appeal to a broader, sustainable consumer base, rather than just another Anti-America alternative product. Mathlouthi and Mecca ColaTaufik Mathlouthi is a Muslim, Tunisian-born French entrepreneur. His exceptional entrepreneurship mindset, along with his involvement in social issues and a sense of pride for his origins, forms the right chemistry that led to the birth of Mecca Cola. Mathlouthi is by nature an involved and exploring individual. Emigrated to French as a young man, he was keen to explore new horizons and adopt a new culture while staying true to his origins.

Instead of letting his cultural background become a barrier, he turns it into an advantage. His first enterprise was a consultancy firm (SOCOFRAR) that specializes in helping French entrepreneurs invest in Arab countries. Outside his entrepreneurial ventures, Mathlouthi's commitment to the Arabic-speaking communities gets him involved in several social and political initiatives. He has a strong vision on how his people should advance themselves through entrepreneurship, rather than being violent in their efforts. He understands well to embrace the best of both worlds, East and West, and Mathlouthi himself is a great admirer of the American culture of doing business.

This open-minded attitude has shaped him into being an entrepreneur with broader vision. Still, Mathlouthi is deeply unsatisfied with the United States' foreign policy especially in the Middle East. When the anti-American boycott intensified with the possibility of war in Iraq, his entrepreneurial mind searched for ways to provide substitutes for American products, specifically Coca-Cola - an American icon. His mindset towards entrepreneurial also became the driver of finding alternative way when he failed to import ZamZam Cola to France due to a lack of interest in ZamZam Cola's part to go abroad.

Mathlouthi went on to create his own product with the help of the other entrepreneur, Haroun Che tibi, whom Mathlouthi believed has the capability to help him because of the experience in venture creation. True to whom he is, Mathlouthi instills a new identity to the American beverage, and Mecca Cola was born. Part of the new identity is that Mathlouthi dedicates 20% of Mecca Cola's net profits to charities to Palestinian people and in the form of humanitarian relief aid and educational infrastructures. Since then, Mecca Cola has been gaining support from an increasingly broader public. Mathlouthi and Mecca Cola's Challenges As the business grows and world politics evolve, the Mecca-Cola company is facing challenges to maintain their business model while still making a profitable business. The key issues to deal with are marketing operations and brand equity issues.

Currently Mecca-Cola is distributed in 54 countries and is manufactured in 17 plants. They are building the marketing and distribution mostly by franchising the brand. Their immediate challenge is to consolidate their market niche and expand distribution while preserving the initial message of this product. This would create quite a task since wide franchise coverage would need intensive control from the company in order to ensure that the product ideology is not dispersed. To do this, Mecca-Cola should partner with distributors who are able to meet their needs for expansion. Support and commitment to the product from major distributors is perhaps relatively easy to gain in Arabic and Muslim countries since they will share same perspective of Mecca-Cola with Mathlouthi.

Pursuing growth in non-Arab or non-muslim areas (such as current plan in Brasil, Dominica and Chile) would provide potential pitfall to the growth in the future since it will make the product's original idea become divergent. However, the major potential risk is that the original customer will perceive the product as another commercial product, just like Coca Cola or Pepsi. Mecca-Cola should not only think about growth, but the most important question is: how do they grow? In the long run, Mecca-Cola should attempt to build long-lasting brand equity. Mecca-Cola's positioning as a symbol of anti-American imperialism may or may not be sustainable, simply because it was born out of a reaction to current events and also because it is drawn largely around the founder's personality. The growing anti American product sentiment has been proven to be the competitive advantage for Mecca-Cola.

However, to gain long-term success, Mecca-Cola should focus on universal ideas that appeal to a broader, more sustainable consumer base. Perhaps one of the highly compelling values of Mecca-Cola is that it strives to "make money while serving social causes". While these social causes may be issues that are close to heart among the Arabic / Muslim communities, Mecca-Cola doesn't have to be anti-America. This way, Mecca-Cola may appeal to consumers outside their core target market. Who knows it may even appeal to an average American; after all, Mecca-Cola has part of its roots in the great American culture. Also, there may be consumers who like the idea of Mecca-Cola but still hang on the Coca-Cola or Pepsi image and taste ("it's not Coca-Cola").

The other challenge for Mecca-Cola and Mathlouthi is how to expand not only the product but also the company organization. Mathlouthi needs to delegate the business negotiation or deal to his subordinate. Mecca-Cola organization is still centralized and drawn largely around Mathlouthi's personality. In other word, Mecca-Cola is Taufik Mathlouthi. This will create problem for the slowing down future growth since any business process will have to go through Mathlouthi.

Delegating the business would be a difficult task since he needs to transfer his idea to the responsible person in order to ensure that "Mecca-Cola ideology" will be carried out throughout any business transactions.