Zamzam and nostalgia: the secret of reviving the 70-year-old emperor of Iranian Carbonated Soft Drinks

Zamzam, this 70-year-old nostalgic, pleasant and hearty Iranian drink, which for many years, by the fate of the times, with the hype and cheeky Zamzam, by foreign Carbonated Soft Drinks and emerging domestic brands, had an unwanted farewell to its golden age, now after a difficult ups and downs. And a lot, it goes back to the glory days. A 17% share in Iran's beverage market, 116 times profitability compared to 2018, and the development of exports from 3.5 to 10 million dollars in the near future, are indicative of Zamzam's recent and impressive achievements; A blessed event that means strengthening Iran's brand in the region and global markets.

Iran's largest carbonated soft drink company, this delicious and well-known brand, since the establishment of the first carbonated soft drink company in 1334, has shined on the roof of the beverage industry for years, and despite global giants such as Coca-Cola and Pepsi in Iran, before and after the revolution, has been a serious competitor for these famous brands. However, it seems that the international economy and the national economy had a different destiny for this nostalgic brand.

A period of decline and stagnation
In the years after the revolution, Zamzam faced many challenges. Among these challenges, we can mention the increase in competition from foreign brands, economic and management problems, as well as restrictions on the import of raw materials. In particular, during the last 20 years, with the spread of carbonated foreign carbonated soft drinks in Iran, the change in consumer taste, the variety of Iranian brands with extensive advertising and various essential oils with the support of the world's famous companies, Zamzam, from the period of rise to recession and from peak to decline. arrived and the market share of this brand was reduced; Difficult years that lasted until the end of 2018. Of course, in these years, Zamzam was the favorite of the people; In a way that in 2015, at the Popular Brand Festival, in a public poll, Goy stole the lead from Pepsi, its foreign competitor.

Experts in the field of business and branding believe that it is very difficult to rise again after several years of decline, especially for famous brands in today's competitive world, but it is not impossible to return to it, and the art of business greats is to get up after sitting down. From this point of view, taking Zamzam again as a bird that has flown for a long time in the sky of carbonated drinks and after decades, inevitably landed on the ground with wounded wings, should be taken as a good omen; Especially in Iran, where the story of the "death of brands" in the last half century is itself a sad nostalgia.

The era of revival and ascension
However, the page has turned and Zamzam is now slowly and steadily returning to its good days after a period of marginalization. By adopting new strategies, focusing on innovation, reforming the structure and changing the management team, since 2019, Zamzam's transformation period has gradually started. The result of this strategy is the 116 times profitability (11,527 percent) of Zamzam company in the fiscal year 1402 compared to 1398, as well as an increase of about 100 percent in the market share in the Carbonated Soft Drink industry during this period; In such a way that it has reached 17% from a 9% share in four years. This figure means getting close to one-fifth of the country's market share. In addition, the 145% growth in the sale of products per liter and the 166% increase in the sales of products based on number compared to 2018 are other indicators of Zamzam's progress in the era of reviving prosperity.

Currently, Zamzam has the most modern distillation unit in the Middle East and produces a variety of drinks with different flavors. After exporting to Bahrain, Kuwait, Qatar and UAE, this company has set a new record by exporting 40 containers of Carbonated Soft Drink Cola, Orange and Lemonade to Oman. The strong return of Zamzam to the market of Persian Gulf countries, after a gap of several years, has increased the export of an Iranian product to these countries, especially Oman, and has actually strengthened the Iranian brand.

The CEO of Zamzam's statements about increasing the export of products from 1.5 to 3.5 million dollars and achieving the export record of 10 million dollars to global markets in the near future are promising signs of the rapid upward trend of this popular brand during the return to its past glory.

The Secret of Zamzam: The Reasons for the Rise After the Recession
Considering the difficulty of climbing again after several years of stagnation, the Zamzam experience is a shining and instructive example for companies and brands that are dealing with great challenges in Iran's economic crisis due to management reasons, currency fluctuations, sanctions, etc. They are trying to get out of the crisis. Therefore, finding the root of the factors that led Zamzam out of the era of stagnation and into the period of prosperity is very instructive and instructive.

Focus on Innovation: One of Zamzam's most important measures to revive the brand has been the focus on innovation. By investing in research and development, this company has introduced new products to the market that are in line with the needs and tastes of consumers. New flavored drinks, carbonated flavored waters, diet and low-calorie products are among these products.

Variety and quality: Zamzam is not just limited to carbonated soft drinks in the age of comeback. Adding more than 10 types of products in different categories to the product portfolio, with high quality and the production of sports drinks, energy and without gas, is indicative of diversity and quality, as a distinctive feature of this old brand.

Zamzam Formulated Carbonated Soft Drinks are available in Cola, Orange, Lemon and Lemonade flavors, in various sizes and packs. Zamzam Abali buttermilk exclusive flavored dairy drinks containing high quality yogurt and natural mint flavoring is a special product for white Carbonated Soft Drink enthusiasts. The mineral water produced by Zamzam from the source of Sahand mountains is also without chemical process and with direct packaging, it welcomes the thirsty customers of Zamzam. Zamzam energy-generating carbonated soft drinks, prepared from European brands with quality evaluation, Zamzam lemonade with a special lemon flavor and colored carbonated soft drinks with Shatoot, cactus, pomegranate, mojito and orange flavors are other products of this brand to meet the variety of Iranian tastes. ; The variety and quality of which the increase in market share is the result.

Back to Traditional Branding: Consumers, especially old customers, love nostalgia: Glass bottles of Zamzam Carbonated Soft Drink in boxes of 24! Is it possible to return to this era, in the age of carbonated soft drinks for one person or a plastic family?! Do we have?! The marketing response to this nostalgic miracle is positive! In addition to innovation in products, Zamzam has also taken measures in the field of branding. By returning to its roots and using traditional elements in the design of bottles and advertisements, this company has tried to evoke a sense of nostalgia in consumers.

Management changes and youthfulness: one of the reasons for Zamzam's success in recent years and the return to the era of product boom is the benefit of young and up-to-date management capacities alongside experienced and committed managers; In such a way that the average age of managers at different levels of this company has decreased in the last four to five years. This matter, both in terms of modern management insight and in terms of identifying the taste of today's customers in the beverage industry and their connection with this nostalgic brand, is very important and effective on the company's sales and profitability.

Development of equipment and fleet: during Zamzam transformation, equipping production lines with new machines with the capacity to produce 30 million perfumes and 500 million doors on the one hand, and upgrading the sales fleet, including tractors, Nissan and trucks, on the other hand, is one of the most influential indicators for Zamzam's success has been over the past few years.

The sum of these reasons and factors, along with the support of domestic production, the development of export of products and the growth of job creation, have helped to improve the economic ranking of the country.

Zamzam and the upcoming challenges
Despite Zamzam's positive actions in recent years, there are challenges such as intense competition from old foreign brands and emerging domestic brands, economic problems, exchange rate fluctuations, etc. These challenges can affect the profitability and reputation of this memorable brand. However, Zamzam's exemplary success in recent years for revival is a clear sign of the company's ability to return to its golden age, proud history and increase its market share with high-quality products.

The continued success of Zamzam in its rebirth and the realization of the slogan "Zamzam, pleasure and happiness together", depends on continuing to focus on innovation, maintaining the quality and variety of products, developing product exports, purposeful use of the competitive advantage that is oldness and nostalgia, strong branding, support From domestic production, awareness and application of the latest technologies and achievements in the beverage industry, stability of management and continuous attention to the taste of Iranian customers, especially the Z and Alpha generations: unconventional, diversity-seeking, futuristic and maybe even anti-nostalgic generations!

News source: Titr20 website

Link: http://titre20.ir/fa/news/69412