MECCA COLA:

Building a Protest Brand in an Increasingly Anti-American Environment

Tawfik Mathlouthi hopes to rid the world of American domination. He has started a company to
compete with Coca-Cola and uses proceeds from the sale of his product, Mecca Cola, to help
Palestinians. While some might concede that the product may sell well in certain Arab countries,
Mecca Cola has successfully penetrated the European soft drink market as well. This case
explores the success of this protest brand and the rising trend of anti-American marketing.
In November 2002 French political activist, TawIik Mathlouthi began selling a new brand oI cola
in France. Mathouthi called his cola Mecca, aIter the city in Saudi Arabia when Muhammad was
born. While some religious leaders question the use oI Islam`s holiest city Ior a brand name, not
many people are questioning the brand`s success. Mecca, the site oI the Great Mosque and the
yearly hajj, or pilgrimage, holds a very signiIicant meaning to Iollowers oI Islam. Mathlouthi
hopes the name can have an equally signiIicant meaning Ior consumers oI soIt drinks.
Mathlouthi is capitalizing on the rising tide oI anti-Americanism in the Arab world and
beyond. He has Iashioned his product on Zamzam Cola, an Iranian Coca-Cola substitute sold in
Iran, Saudi Arabia, and Bahrain. Mecca Cola sponsored a large peace rally in London to promote
opposition to America`s war in Iraq and the Mecca brand. The company gave out 36,000 bottles
oI Mecca Cola, and 10,000 shirts with the Mecca logo and the words 'Stop the War and 'Not in
my Name. The product uses phrases such as 'No more drinking stupid and 'Drink with
commitment to sell the brand and makes no apologies Ior its political position. Mathouthi, who
was born in Tunisia and moved to Paris in 1997 to start a radio station admits that his product is
political in nature. He states that it is an attempt to Iight 'American imperialism and Zionism by
providing a substitute Ior American goods and increasing the blockade oI countries boycotting
American goods.
A particularly strong appeal oI the product Ior some consumers appears to be the Iact that
twenty percent oI the company`s net proIit goes to charities, including ten percent to Palestinian
charities. One consumer in Paris, YousseI, age 26 states 'The product is very good too. It has a
taste somewhat between Coke`s and Pepsi`s. In certain markets it appears that Mecca Cola has
begun eating into Coca-Cola`s popularity. A storeowner in a Muslim part oI Paris states, 'Since I
started selling Mecca Cola, consumption oI Coca-Cola has Iallen 80. People are attracted to the
idea oI supporting the Palestinians. Mathlouthi deIends the charge that the company may be
Iunding terrorism by claiming that money is not given directly to the Palestinians, but rather, the
company provides the Palestinians with Iood, clothing, and the construction oI buildings. Mecca
Cola also uses proceeds Irom its sales to support some European non-government organizations
(NGOs).
Mecca Cola (the packaging which looks much like the product it is attempting to replace)
is now sold in over 28 countries, including a number oI Western European countries. At Iirst the
product was only sold in small ethnic shops in Muslim areas, however, the product can now be
Iound in large grocery stores in the Arab world and in France, Britain, Italy, Spain, Belgium, and
Germany. Mathlouthi purports to be Iilling orders Ior two million bottles a month in England
alone. Mecca Cola plans on a rapid expansion oI Europe and even into the United States market.
As the popularity oI Mecca Cola increases, Mathlouthi has set his sights on other
products. He plans on introducing Halal Fried Chicken (HFC) and Mecca CoIIee soon.



1. II you saw Mecca Cola on a store shelI would you consider purchasing it? Why or why not?

II I saw Mecca Cola being sold nearby my grocery store I would deIinitely buy it. In my
opinion Mecca Cola is a good opportunity Ior people to stop American domination. Mecca Cola
have set an example Ior other people that American can no longer globalize the market. Besides
that, 20 oI Mecca Cola proIit will be given to charities which also include 10 Palestinian
charity by providing Iood, clothing and shelter. Finally by doing so, I can help to support them
Ior Iurther expansion on other brands.

2. What should be the response oI Coca-Cola to the Mecca brand?

Mecca brand had developed a widely inIluential positive impact towards consumers in the
diIIerent level oI soIt drinks industry. Thus, as Iar as the response is concerned, Coca-Cola would
have to develop several ways in order Ior them to compete and be in healthy competition as they
were beIore the leading soIt drinks company in the world. The particular company could do is
that by achieving their sustained competitive advantage:
1. Continually adapting the changes in external trends and events and capabilities,
competencies and resources.
2. EIIectively Iormulating, implementing and revaluating strategies that capitalize on
these Iactors.










3. Will Mecca Cola and the other protest products do long-term harm to American brands?

In the long-term, it is diIIicult to predict. However, in the short-run, sales will be aIIected.
Some well-known American brands experienced declining demand during the latter part oI 2002
and into 2003, in certain parts oI the world. Some brands are which are more Iamous are more
vulnerable than others, and even some Non-American brands were aIIected like the Swiss
company Nestle which was mistaken Ior an American company.
There is a possibility there will be eIIect Ior the long-term especially Ior the pro-Muslim
consumers. Especially iI other protest products have the similar policy as mecca cola where they
pledges to donate 10 oI its proIits to Iund strictly humanitarian projects (such as schools) in the
Palestinian territories, and another 10 to charities in the countries in which the drink is sold.

4. What strategies should be adopted by Mecca-Cola iI they want to survive in this competitive
environment?
Since Mecca-Cola is a success to the pro-Muslims consumers, the only business wise
decision is to expand their market to gain a wider spread about Mecca-cola which would also
create awareness about their policy. Mecca cola already have a big impact to the market due to its
policy so by creating awareness oI their cause would deIinitely attract more customers.
Continuous improvement, savvy marketing and product innovation will deIinitely contribute
success to Mecca-cola as it would to any other companies. Mecca-cola should not bluntly rely on
its policy where they donate to charities and the anti-Americanism trend; they must always
lookout Ior competitors who would have the same concept as them.




. Do you think Mathlouthi`s plans to introduce Halal Fried Chicken (HFC) and Mecca CoIIee
will be successIul? JustiIy your answer.

We can say that the demographic and environmental competitive intelligence has been
gathered in the Iirst part oI external assessment. The social and cultural issues can be Iurther
explored, but there should not be any major diIIiculties as Mathlouthi`s plans is highly achievable
since he`s targeting the Muslims Iirst, which are accustomed to the halal products, and in Iact, are
demanding more variety Irom the market. Looking at the success oI Mecca Cola, Halal Fried
Chicken and Mecca CoIIee should receive the same reaction. However, since the case is back in
2003, there is no more anti-Americanism protest going on but there are still pro-Muslims that
would be highly interested Mathlouthi`s plan.

6. Conduct PEST/SWOT analysis.

$OT Strength, weaknesses, opportunity, Threats
$trength
Mecca cola strength comes Irom the rising number oI boycott oI American good in the world
Iollowing the Americas international policy and all oI the war that they are involved in. Mecca
Cola tries to become a substitute to the American soIt drink giant Coca-Cola and Pepsi. The taste
oI the Mecca Cola is as good as Coca-Cola and Pepsi. The some products proIits are donated to
the Palestinian charity Ioundation and people are more willing to buy a product that has some
noble cause.
eaknesses
It does not have its own original Ilavor that is unique to the brand. It gets harsh critics Irom pro
American policy that the Iund given to the Palestinian people by Mecca Cola are used by
terrorists groups.

Opportunity
There is a huge rise in number oI people that are sick oI American international policy around the
world and especially in the Arab world and people are increasingly boycotting American goods
in the market. Mecca Cola is promoting this product mostly to the Muslim community around the
world by using the name Mecca on its product and currently Islam has the highest number oI
Iollowers in the world. People Irom the west are starting to accept the brand.
Threats
Mecca cola has many and well Iinanced competition such as Coca-Cola and Pepsi. The company
also Iaces threats Irom pro American and Zionist products.

PE$T Political, Economic, Social, Technological

Political
American international policy and its active involvement in engaging in war with other peaceIul
and innocent countries will increase in the number oI people who will boycott American goods
and will turn to Mecca Cola as its substitute. The support oI Mecca Cola Ior NGO can help these
NGO to pressure the government to accept condition that can help the company to compete with
its powerIul competitor.
Economics
The company can cripple the American soIt drinks giant and the American economy. Its can
reduce the American economical dominance in the world. The company will donate 10 oI its
proIit toward Palestinian charity that will in turn help the pressure that the Palestinian Iace in
recovering its economy aIter all oI their economical and industrial inIrastructure have been
decimated by the Zionist regime who unsurprisingly a huge supporter oI the American Ioreign
policy.

$ocial
The Mecca Cola company will donate 10 oI its proIits in helping the Palestinian people and
another 10 oI its proIit to other charitable organization. Free the consumers Irom American
domination in the product goods industries.
Technological
Mecca Cola have cracked the secret ingredients oI Coca-cola and Pepsi in making a perIect coke
Ilavored soIt drink and are to produce the its brand in a huge number at a time, this shows the
technological capability oI Mecca Cola. For example they supply 2million bottle per month to
England alone and Mecca Cola is currently exporting to 28 countries around the world.