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Submitted under the partial fulfilment of the requirement for MASTER OF BUSINESS
ADMINISTRATION of Uttar Pradesh Technical University, Lucknow
Submitted To:- Submitted By:-
Mr. Aftab Ahmad Tarique Jamal
(HOD) MBA 3rd sem.
0907270164
IIMT Management College, Meerut (U.P.) India
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DECLERATION
I Tarique Jamal hereby declare that this project report entitled Marketing Strategies
Analysis has been completed based on actual study carried out by me during my internship program
at Hindustan Coca-Cola Beveragws Private Limited, Patna.
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I am presenting an authentic report of my work to IIMT Management college,Meerut
carried out at Hindustan Coca-Cola Beveragws Private Limited, Patna for the partial fulfilment
of the requirement of the Master Of Business Administraion degree programme of Uttar Pradesh
Technical University, Lucknow.
This research report is original and information, data and fact furnished their in are actual
based on study carried out by me.
(Tarique Jamal)
CERTIFICATE OF ORIGINALITY
This is certify that the Vocational Training Report entitled “Marketing Strategies
Analysis”submitted to Hindustan Coca-Cola Beveragws Private Limited,Patna in partial
fulfillment of requirement for the award of the degree of Master of Business Administration (MBA),
original work carried out by Mr. Tarique Jamaland UPTU Roll No.0907270164 Under my
guidance.
This vocational report done on (training period June 14, 2010 to Aug 12, 2010) the topic hasn’t been
submitted for any other examination & doesn’t form part of any other course undergone by the
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candidate.
……………………. ………………………..
Signature of Guide Signature of Std.
Date - / / Date - / /
Name & Designation of Guide Name & Roll no of Std.
.................................................. .............................................
.................................................. ..............................................
……………………………..
Signature of Training Incharge
V.K.Srivastav
ACKNOWLEDGEMENT
After completing my IInd semester curriculum. I went for summer training for 8 weeks
duration and it bears inspirit of several person.
I have achieve this training in one of the most esteemed organisation of the country
Hindustan Coca-Cola Beveragws Private Limited, Patna for their kind permission to undertaken
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its study I am grateful to respected Mr. Vijay Kumar Singh (HR Executive,in Coca-Cola Beveragws
Private Limited). For there moral support and encouragement throughout my project work.
This list will go incomplete without the special reference of the contribution and whole
hearted support of manager’s and all other staff and department, which truly reflect their deep insight
into the project and the professional touch which is their benchmark.
I would like to thanks Mr. Aftab Ahmad(IIMT Management college,Meerut), who helped
me a lot during this project.
My gratitude will not be completed without thanking my beloved parents who have been a
constant source of aspiration & blessing in my pursuit for studies.
PREFACE
I did my summer training in Hindustan Coca-Cola Beveragws Private Limited, Patna. I
completed my summer training for 8 weeks. I got training in the study of Marketing Strategies
Analysis, Financial department is also being considered.
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Hence I am presenting the training report Marketing Strategies Analysis. All the mistakes and
problems had been carefully removed with the help of all the managers.
So I am thankful to all the managers of Hindustan Coca-Cola Beverages Private Limited, Patna.
Tarique Jamal
MBA (IIIrd Semester)
TABLE OF CONTENTS
CONTENTS
1. Mission statement
2. Introduction.
3. Coca Cola.
a. Coca Cola International.
b. History.
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4. Management.
5. EXTERNAL MARKETING ENVIRONMENT
6. Market share.
7. Financial report.
8. Dividends and Cash Plan.
9. Products.
10. Market mix of Coca-Cola
11. Strategic planning.
12. Bottlers owned by Coca cola
13. Coca Cola Pakistan.
14. Major Competitors
a. Pepsi
b. History.
c. Financial assets.
• Market share.
• Financial report.
• Products.
• Methodology
15. Some basic information regarding marketing of coke
a. Target market:
b. Major segments:
c. Factors effecting sales:
d. Major competitors:
e. Strategies of quality:
f. Threats from competitors:
g. Targets that would like to attain:
h. Expanding target market
i. Threats and opportunities for price:
j. Strategies of getting goals i.e. “high profits”:
k. Marketing strategy:
l. Expectations for the coming year:
m. How coke determine the yearly budget:
16. Marketing strategies
17. Pest analysis
.
The Mission Statement of the Coca Cola Company
Our mission statement is to maximize shareowner value
over time.
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In order to achieve this mission, we must create value for all
the constraints we serve, including our consumers, our
customers, our bottlers, and our communities. The Coca
Cola Company creates value by executing comprehensive
business strategy guided by six key beliefs:
1. Consumer demand drives everything we do.
2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the
nonalcoholic ready-to–drink beverages they want to
drink through out the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We will lead as a model corporate citizen.
The ultimate objectives of our business strategy are to
increase volume, expand our share of worldwide
nonalcoholic ready to drink beverages sales, maximize
our long-term cash flows, and create economic value
added by improving economic profit.
The Coca Cola system has more than 16 million customers
around the world that sells or serves our products directly to
consumers. We keenly focus on enhancing value for these
customers and helping them grow their beverage
businesses. We strive to understand each customer’s
business and needs, whether that customer is a
sophisticated retailer in a developed market a kiosk owner in
an emerging market.
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There are nearly 6 million people in the world who are
potential consumers of our company’s product. Ultimately,
our success in achieving our mission depends on our ability
to satisfy more of their beverage consumption demands and
our ability to add value for customers. We achieve this when
we place the right products in the right markets at the right
time.
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COCA COLA INTERNATIONAL
HISTORY:
Coca-Cola Enterprises, established in 1886, is a young
company by the standards of the Coca-Cola system.
Yet each of its franchises has a strong heritage in the
traditions of Coca-Cola that is the foundation for this
Company.
The Coca-Cola Company traces it’s beginning to 1886,
when an Atlanta pharmacist, Dr. John Pemberton ,
began to produce Coca-Cola syrup for sale in fountain
drinks. However the bottling business began in 1899
when two Chattanooga businessmen, Benjamin F.
Thomas and Joseph B. Whitehead , secured the
exclusive rights to bottle and sell Coca-Cola for most of
the United States from The Coca-Cola Company.
The Coca-Cola bottling system continued to operate as
independent, local businesses until the early 1980s
when bottling franchises began to consolidate. In 1986,
The Coca-Cola Company merged some of its company-
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owned operations with two large ownership groups that
were for sale, the John T. Lupton franchises and BCI
Holding Corporation's bottling holdings, to form Coca-
Cola Enterprises Inc. The Company offered its stock to
the public on November 21, 1986, at a split-adjusted
price of $5.50 a share. On an annual basis, total unit
case sales were 880,000 in 1986.
In December 1991, a merger between Coca-Cola
Enterprises and the Johnston Coca-Cola Bottling
Group, Inc. (Johnston) created a larger, stronger
Company, again helping accelerate bottler
consolidation. As part of the merger, the senior
management team of Johnston assumed responsibility
for managing the Company, and began a dramatic,
successful restructuring in 1992.Unit case sales had
climbed to 1.4 billion, and total revenues were $5 billion
The Coca-Cola Company is the world’s largest beverage
company. They operate in more than 200 countries &
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markets more than 2800 beverage products. Headquartered
at Atlanta, Georgia, they employ approximately 90500
employees all over the world. It is often referred to simply as
Coke or (in European and American countries) as Cola or
Pop.
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MANAGEMENT:
The hierarchy of Coca Cola Company is as follows.
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Chairman
Board of governors
Vice Chairman and chief operating officer
Executive Vice Presidents
Senior Vice Presidents
Vice Presidents
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MARKET SHARE:
SHARE
Being the biggest company in the soft drink industry, Coca
Cola enjoys the largest market share. This company
controls about 59% of the world market.
GLOBAL MARKET SHARE:
The following table can show the worldwide operating
segments.
(Table)
Unit case growth Non- All commercial
alcoholic Beverages
drink
10 year 5-year compound 2001 annual 2002 2002
compound annual annual growth growth
growth
Compan Industry Compan Industry Compan Industry Company Compan Compan
y y y share y share y per
capita
Income
6% 5% 5% 5% 4% 4% 18% 9% 70
This shows that the market of the company is geographically
vast and it is controlling it with great success. In 2002, the
company grew their carbonated soft-drink business by nearly
250 million unit cases and generated record volumes.
Because carbonated soft drinks are the largest growth
segment within the nonalcoholic ready-to-drink beverage
category measured by volume, that is why they are focusing
more on this and they are continually increasing the pace
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because they know that accelerating this pace is crucial to
their future success. Thus they are increasing their market
day by day. The operation income earned by Coca Cola
Company can be illustrated by the following pie chart.
(Figure)
This strategy has worked a lot and it has helped them to
become the World’s leading Soft Drink Company. The global
unit sale of the Coca Cola Company is increasing from the
last ten years. The data of the global unit sale of the Coca
Cola Company can be represented by following chart.
(Figure)
12
10
8
6
unit sale in billions
4
2
0
1971 1981 1991 2002
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So there is positive growth in the market of the Coca Cola
Company. There is a worldwide volume increase by 4% with
strong international growth of 5%. This is only due to the
innovative marketing programmers, which has deepened the
relationship of the customers and Coca Cola. The financial
health and success of their bottling partners is a critical
component of The Coca-Cola Company's ability to build and
deliver leading brands.
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In 2002, the company had worked with their bottlers to turn
good intentions into reality by improving the system
economics. The results in 2002 reflect this steadily improving
and mutually constructive relationship between the Company
and their bottling partners. The main reason behind this
relationship is to continue realizing shared opportunities for
growth, with closer coordination of operations including
customer relationships, logistics and production.
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EXTERNAL MARKETING ENVIRONMENT (PEST
ANALYSIS)
Political Analysis for Coca-Cola
Non-alcoholic beverages fall within the food category under
the FDA. The government plays a role within the operation of
manufacturing these products in terms of regulations. There
are potential fines set by the government on companies if
they do not meet a standard of laws.
The following are some of the factors that could cause Coca-
Cola company's actual results to differ materially from the
expected results described in their underlying company's
forward statement:-
• Changes in laws and regulations, including changes in
accounting standards, taxation requirements, (including
tax rate changes, new tax laws and revised tax law
interpretations) and environmental laws in domestic or
foreign jurisdictions.
• Changes in the non-alcoholic business environment.
These include, without limitation, competitive product
and pricing pressures and their ability to gain or
maintain share of sales in the global market as a result
of action by competitors.
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• Political conditions, especially in international markets,
including civil unrest, government changes and
restrictions on the ability to transfer capital across
borders.
Political structure and legal considerations also have
impinged on Coco-Cola Company’s strategies. Governments
of some Arab nations boycotted Coca-Cola’s products due to
a political dispute and discontented with the company for
maintaining distributors in Israel.
Economical Analysis
Being flexible and willing to change to satisfy consumers’
needs, has enabled Coca-Cola to exploit the economies of
scale that was gained by its global marketing and at the
same time making its products appeal to local taste, which
these have earned the company an enormous profits
quarterly.
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As Coca-Cola has expanded over the decades or even
nearly a century, the company has benefited from the
various cultural insights and perspectives of the societies in
which business is done. No doubt of the remarkable
experience it has, it is still very committed to local markets,
to paying attention to what people from different cultures and
backgrounds like to drink, and where and how they like to
drink it, to remain competitive and to develop more new
drinks to satisfy its markets.
Now, the estimated brand equity of Coca-Cola is $84billion,
market share of more than 50 percent in beverage industry
globally and about 70 percent of its income comes from
countries outside United States. Every 10 seconds, 126,000
people in the whole world, choose to reach out for one of
The Coca-Cola Company brands, and it is the company’s
mission to make that choice exciting and satisfying, every
single time.
Previously the U.S. economy was strong and nearly every
part of it was growing and doing well. However, things
changed. Before the attacks on September 11, 2001, the
United States was starting to see the economy recover
slightly and it is only just recently that they achieved the
economic levels. Consumers are now resuming their normal
habits, going to the malls, car shopping, and eating out at
restaurants. However, many are still handling their money
cautiously. They believe that with lower inflation still to come,
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consumers will recover their confidence over the next year.
As researching for new products would cost less the Coca-
Cola Company will sell its products for less and the people
will spend as they would get cheap products from Coca-cola.
Social Analysis for Coca-Cola
Foreign environment factors have influenced the Coca-
Cola’s strategies in international marketing. Culture has a
tremendous effect on people’s preferences and perception.
Language is one of the aspects of culture that marketers
must take care of, in term of translating product name,
slogans and promotional messages so as not to convey the
wrong meaning. Coca-Cola did not look much into this
aspect when entering into the markets of countries like
China and Taiwan as the literal translation of Coca-Cola in
Chinese characters mean, “bite the wax tadpole”.
Changes are necessary in international marketing for
consumer’s products, as it is important that the products suit
one’s taste, preferences and fulfill one’s needs. Coca-Cola
has continued changing, improving and developing new
drinks to appeal to local tastes.
After discovering that Coke did not appeal as much to
Japanese consumers, Coca-Cola developed over 30 new
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drinks for the Japanese market, which inclusive of Asian tea,
English tea, coffee and fermented-milk drink.
In China, Coca-Cola has also begun the similar strategy of
introducing beverages developed for the taste buds of local
market. It launched a fruit juice drink called Tian Yu Di
(Heaven and Earth) specifically for the Chinese market with
planning of introducing the market with a Chinese iced tea
and soy milk drink.
Many U.S. citizens are practicing healthier lifestyles. This
has affected the non-alcoholic beverage industry in that
many are switching to bottled water and diet colas instead of
beer and other alcoholic beverages. Also, time management
has increased and is at approximately 43% of all
households. The need for bottled water and other more
convenient and healthy products are in important in the
average day-to-day life.
Consumers from the ages of 37 to 55 are also increasingly
concerned with nutrition. There is a large population of the
age range known as the baby boomers. Since many are
reaching an older age in life they are becoming more
concerned with increasing their longevity. This will continue
to affect the non-alcoholic beverage industry by increasing
the demand overall and in the healthier beverages.
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Technological Analysis for Coca-Cola
Some factors that cause company's actual results to differ
materially from the expected results are as follows:
• The effectiveness of company's advertising, marketing
and promotional programs. The new technology of
internet and television which use special effects for
advertising through media. They make some products
look attractive. This helps in selling of the products. This
advertising makes the product attractive. This
technology is being used in media to sell their products.
• Introduction of cans and plastic bottles have increased
sales for Coca-Cola as these are easier to carry and
you can bin them once they are used.
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• As the technology is getting advanced there has been
introduction of new machineries all the time. Due to
introduction of this machineries the production of the
Coca-Cola company has increased tremendously then it
was few years ago
• Coca-Cola has six factories in Britain which use the
most state-of the-art drinks technology to ensure top
product quality and speedy delivery. Europe's largest
soft drinks factory was opened by CCE in Wakefield,
Yorkshire in 1990. The Wakefield factory has the
technology to produce cans of Coca-Cola faster than
bullets from a machine gun
MARKET SHARE BY AREA:
Coca Cola is the world-renowned soft drink and the
company is currently operating through out the world. The
world wide total is about 17.8 billion.
The operation review according to the segments is as
follows.
Operation Review
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(2002 worldwide unit case volume by operating segment)
NORTH LATIN EUROPE & ASIA AFRICA
AMERICA AMERICA MIDDLE
EAST
30% 25% 22% 17% 6%
NORTH AMERICA
LATIN AMERICA
EUROPE & MIDDLE
EAST
ASIA
AFRICA
So the volume is least in the Africa and most in the North
America. The data about the market share of this company
area wise is given in the following table.
The above table shows the geographical earning of the Coca
Cola Company and from this data; we can find out that the
customers of Coca Cola are increasing which is shown by
the company’s per capita income. Unit case equals 24 eight-
ounce servings. The column, which shows the non-alcoholic
beverages consist of commercially, sold beverages, as
estimated by the Company based on available industry
sources. The country column is derived from
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The Company's unit case volume while the industry column
includes nonalcoholic ready-to-drink beverages only, as
estimated by the Company based on available industry
sources.
(Table)
Country Unit case growth Non- All commercial
alcoholi Beverages
c
Drinks
10 year 5-year compound 2002 annual 2002 2002
compound annual annual growth growth
growth
Compan Industry Compan Industry Compan Industry Compan Compan Company
y y y y share y share per capita
Income
North 4 5 3 3 2 2 22 15 398
America
United 4 5 3 3 2 2 23 16 419
States
Latin 6 7 6 6 3 4 24 15 205
America
Argentin 7 4 6 2 7 2 20 10 236
a
Brazil 5 5 3 6 3 5 23 13 144
Chile 9 6 5 3 (2) 3 56 23 336
Mexico 7 10 8 9 2 5 22 18 462
Europe 6 3 5 3 2 4 12 6 72
& Middle
East
Eurasia 17 8 6 5 (14) 1 14 5 39
France 8 3 9 3 7 3 9 5 110
German 1 2 (1) 1 (6) 1 14 7 193
y
Great 8 2 11 2 8 3 17 6 193
Britain
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Italy 1 3 4 3 2 2 9 6 104
Middle 12 12 7 5 4 8 8 3 17
East
Spain 6 4 8 5 4 4 17 12 264
Asia 7 6 6 7 10 7 14 5 23
Africa 7 6 8 3 10 6 34 11 34
In Asian population, which is the satisfied customer of Coca
Cola, is approximately 3.2 billion and the average consumer
enjoys close to two servings of our products each month.
Through an intense focus on Coca-Cola, innovation and new
beverages, the company has achieved volume growth of 10
percent in 2002. With developing economies and
populations, this region has strong long-term potential, and
the company is building an exciting family of beverage
brands in addition to expanding the popularity of our core
brands, led by Coca-Cola. In China, for example, sales of Coca-Cola
increased 6 percent. The total unit case sale of Coca Cola in Asia
can be shown by the following pie chart.
(Figure)
So the company is emphasizing more in this area and is
trying to develop a strategy, which can increase the growth
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of the consumption of Coca Cola by the people of Asia.
Among the countries of Asia, Japan has the highest
percentage, which is about 29%. Among others, Pakistan,
India and Bangladesh are those countries where the
average consumption is increasing day by day.
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FINANCIAL REPORT:
This company is financially very strong. It is due to the
strong finances, the company is still surviving the ups and
down of the business world. The financial report of Coca
Cola Company of the year 2001 and 2000 along with the
percentage change is as follows.
(Table)
Year Ended December 31,
(In millions except per share data, ratios and growth rates)
2002 2001 Percentage
change
Net operating revenues 20,092 19,889 1%
Operating income 5,352 3,691 45%
Net income 3,969 2,177 82%
Net income per share (basic) 1.601 0.882 82%
Net income per share
(diluted) 1.601 0.882 82%
Net cash provided by
operating activities 4,110 3,585 15%
Business reinvestment (963) (779) 24%
Dividends paid (1,791) (1,685) 6%
Share repurchase activity (277) (133) 108%
Free cash flow 3,147 2,806 12%
Return on capital 26.6% 16.2% -
Return on common equity 38.5% 23.1% -
Unit case sales (in billions)
International
operations 12.5 11.9 5%
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North America
operations 5.3 5.2 2%
Worldwide 17.8 17.1 4%
2002 basic and diluted net income per share includes a non-
cash gain of $.02 per share after taxes, which was
recognized on the issuance of stock by Coca-Cola
Enterprises Inc., one of the equity investors of this company.
2002 basic and diluted net income per share includes the
following charges:
• $.24 per share after income taxes related to an
organizational Realignment.
• $.19 per share after income taxes related to the
Company's portion of charges recorded by the investors
of the company.
• $.16 per share after income taxes related to the
impairment of certain bottling, manufacturing and
intangible assets.
• $.05 per share after income taxes related to the
settlement terms of a discrimination lawsuit.
• $.01 per share after income taxes related to incremental
marketing expenses in Central Europe.
These charges are partially offset by a gain of $.05 per share
after income taxes related to the merger of Coca-Cola
Beverages plc and Hellenic Bottling Company S.A. and $.04
per share after income taxes related to benefits from a tax
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rate reduction in Germany and from favorable tax planning
strategies.
DIVIDEND AND CASH INVESTMENT PLAN:
The Dividend and Cash Investment Plan permits
shareowners of record to reinvest dividends from Company
stock in shares of The Coca-Cola Company. The Plan
provides a convenient, economical and systematic method
of acquiring additional shares of our common stock. All
shareowners of record are eligible to participate.
Shareowners also may purchase Company stock through
voluntary cash investments of up to $125,000 per year.
At year-end, 76 percent of the Company's shareowners of
record were participants in the Plan. In 2002, shareowners
invested $36 million in dividends and $31 million in cash in
the Plan.
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COMPANY STATISTICS:
The statistics of this company is impressive. Since it is
operating through out the world that is why the number of
employees and the bottling equipments is highest among the
other bottling companies. There is a constant increase in
every aspect when we compare the statistics of 2001 and
the statistics of 2002. This is because; Coca Cola Company
is increasing its volume day by day. The expansion of this
company, which shows the success of Coca Cola brands,
results in the percentage change in the statistics of the two
years. The statistics is as follows.
(Table)
2002ª 2001
Equivalent cases 4.2 billion 3.8 billion
Bottle and cans 87% 87%
Fountain 13% 13%
Employees 72,000 67,000
Vehicles 54,000 52,000
Cold drink equipments 2.4 million 2.3 million
Facilities
Production only 25 25
Distribution 385 361
Combination 53 50
Total 463 436
Percent of North America population coverage 80% 72%
Number of States of Operation 46 46
Bottle and can equivalent case package distribution
Cans 44% 45%
Non-refillable bottles 52% 51%
Refillable bottles 4% 4%
Capital structure
Net debt to total capital ratio 63% 59%
EBITDA interest coverage 3 3
Weighted average cost of debt 6.3% 6.8%
Key Statistics
Constant territory bottle and can volume growth 3% ½%
Bottle and can net revenues per case change Flat 2%
Bottle and can cost of sales per physical case change 1 ½%
Reported EBITDA (in billions) $1.95 $2.39
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Reported EBITDA change (18)% 9%
Capital expenditures( in billions) $0.97 $1.18
%-age of net operating revenues 6% 8%
Coverage of North American Can/bottle volume 83% 74%
EBITDA is the Earnings before interest, taxes,
depreciation, and amortization, and other non-operating
items.
• Net Debt is the Long-term debt plus current portion
of long-term debt less cash and marketable
securities.
• Equivalent Case or Unit Case is the physical case
and fountain gallons converted to a standard unit of
measure defined as 24 eight-ounce servings or 192
ounces per equivalent case sold by Coca-Cola
Enterprises.
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PRODUCTS:
There are different brands of the Coca Cola Company, which
are currently in use through out the world. This company not
only deals in the carbonated drinks but also other drinks.
While launching its product, the marketing team considers
the culture of the country.
Major brands of coca cola
• Coke
• Sprite
• Fanta
• Diet coke
• Coke classic
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The over all volume of this company is as follows.
(Figure)
The commitment of the company is to devote resources to
water only in markets where it expects profitable growth.
This strategy has paid dividends. The company has
successfully applied it’s approach to brands in several key
markets, including Ciel in Mexico, Mori No Mizudayori in
Japan, Bonaqua in Russia and Kinley in India. Backed by a
strong network of bottling partners through out the United
States, Dasani became the nation's fastest-growing water
brand. In Eurasia, the entire Turkuaz brand team worked
together to launch Turkey's first purified water brand. This
year, Coca-Cola Company also successfully energized a
major piece of its beverage strategy—water. By the end of
2001, it’s bottled water volume exceeded 570 million unit
cases, making it the second biggest contributor to the growth
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of the company after carbonated soft drinks. Three of the
water brands, Dasani, Ciel and Bonaqua each achieved
sales of over 100 million unit cases for the year.
In 2001and 2002, the company has also made good
progress in coffees and teas. Beverage Partners Worldwide,
the renewed and strengthened marketing partnership with
Nestlé S.A., began operations in 2001. This partnership
combines Nestlé's knowledge in life science, research and
development with the expertise of Coca Cola Company in
brand building and distribution.
At the same time, the company grew Georgia coffee in
Japan by 3 percent through award-winning marketing in a
category that was flat for the year. Also in Japan—where
The Coca-Cola Company is the leader in the total tea
category, the second-largest category in the non-alcoholic
ready-to-drink segment—it launched Marocha Green Tea.
With sales of 46 million unit cases for the year, Marocha
Green Tea is the fastest-growing product in the fastest-
growing category: green tea. The popularity of Marocha is
also recognized by the industry with a leading trade journal
naming Marocha the most popular new food and beverage
product of the year.
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Know the most recognized word on
the planet after “OK”!
Among the soft drinks Fanta and Sprite become successful
along with the major brand Coca Cola and Diet Coke. In
key markets, the company has created new packaging sizes
to satisfy consumer demands.
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Increasingly, Mexican families have lunch together at home.
The average Mexican household drinks two-and-a-half liters
or more of soft drinks during that break, while a two-liter
bottle was the largest available package. So the company
introduced a convenient 2-½ liter bottle to select regions,
contributing to the sale of nearly 1.5 billion unit cases of
Coca-Cola in Mexico this year. This larger bottle will
complete its nationwide rollout in 2002. In China, Coca-Cola
is an integral part of holiday celebrations and the family get-
togethers that accompany such events. Through an intense
focus on Coca-Cola, innovation and new beverages, it has
achieved volume growth of 10 percent in 2001. In China,
sales of Coca-Cola increased by 6 percent. In the United
States, recognizing that consumers often enjoy their diet
Coke with a slice of lemon, the company "bottled" the
concept. The result—diet Coke with lemon—contributed to
volume growth of 4 percent for the number-one diet.
Soft drink in North America: diet Coke. The company
increased its two largest bottle sizes during the 2001
holidays, and festival packaging helped drive a 6 percent
volume increase for Coca-Cola. The packaging innovations
do not just involve resizing. The company has also
responded to consumers' changing fashion styles with new
bottles.
With brands such as Minute Maid, Hi-C, Simply Orange and
Disney juices and juice drinks in the United States, Qoo in
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Asia, Kapo in Latin America and Bibo in Africa.
This year, the company re-launched its global sports-drink
business, investing in new products, packaging, positioning
and marketing. The results speak for themselves: it’s global
sports drinks, led by Powerade and Aquarius, grew by 13
percent in 2002, nearly double the growth rate of the
worldwide sports-drink category. Revitalized in the United
States, the company introduced Powerade in nearly every
major Western European market, including Great Britain,
Germany and Spain, as well as in Mexico and Latin America.
The company launched 27 products in 2001.
The commitment of the company to packaging innovation
also resulted in new initiatives for our fountain business, a
channel through which many consumers enjoy Coca-Cola. In
the United States, the company developed Fountain, a total
beverage dispensing system that is more flexible and more
reliable. Two years of research resulted in a dispensing
system that provides exceptional beverage quality, easy to
upgrade technology, brand and graphic customization and
improved reliability.
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MARKETING MIX OF COCA-COLA
Firstly, we will look at how Coca-Cola has used their
marketing mix. The marketing mix is divided up into 4 parts;
product, price, promotions and place.
1. Product:
The product (Coca-Cola soft drink) includes not just the
liquid inside but also the packaging. On the product-
service continuum we see that a soft drink provides little
service, apart from the convenience. Soft drinks satisfy
the need of thirst. However, people are always
different, some want more and others want less.
Therefore Coca-Cola has made allowances for that by
providing many sizes. We also have particular tastes,
and again they have provided several options. So,
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although thirst is what is needed to be satisfied and that
is the core benefit, we are receiving other benefits in the
taste and size. Coca-Cola has developed several
different flavours and sizes as mentioned above, but
also several brands such as Sprite, Lift, Fanta and Diet
Coke which increase the product line length, thus
making full use of the market to maximize sales.
The product is convenient, that is - bought frequently,
immediately, and with a minimum of comparison and
buying effort.The appearance of the product is eye
catching with the bright red colour. It has a uniquely
designed bottle shape that fits in your hand better, and
creates a nicer & more futuristic look.
The quality of the soft drink is needed to be regularly
high. Sealed caps ensure that none of the "fizz" is lost.
The bottles are light, with flexible packaging, so they
won't crack or leak, and are not too heavy to casually
walk around with. The cans are also light and safe.
The product range of Coca-Cola includes:
• Coca-Cola,
• Coca-Cola classic,
• caffeine free Coca-Cola,
• diet Coke
• caffeine free diet Coke,
• diet Coke with lemon
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• Vanilla Coke,
• diet Vanilla Coke,
• Cherry Coke,
• diet Cherry Coke,
• Fanta brand soft drinks,
• Sprite,
• diet Sprite
• Sprite Remix
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Product Lifecycle of Coke:
Product life cycle has four phases
1. Introduction
2. Growth
3. Maturity
4. Decline.
The markets where Coke is a dominant player are United
States of America, Europe and Asia, Africa. There is a vast
difference in terms of above given phases for example, in
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U.S.A & Europe it has reached maturity stage where it can’t
expand its market more but if we consider Asia, it is still in
the growth phase.
Coca-Cola is currently going through the maturity stage in
Western countires. This maturity stage lasts longer than all
other stages. Management has to pay special attention to
products during this stage of the product life-cycle. During
the maturity stage, products usually go through a slowdown
in sales growth. According to Coca-Cola's 2001 annual
report, sales have increased by 1.02% compared to last
year. This percentage has no comparison to the high level of
growth Coca-Cola enjoyed during its growth stage. To add a
little variation Coca-Cola took the Coca-Cola Classic and
added variations to it, including Cherry Coke, Vanilla Coke
and Diet Coke. Also Coca-Cola went from 6-oz. glass bottles
to 8-oz. cans to plastic liter bottles, all helping increase
consumption.
COCA-COLA
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2. Price:
Like any company who has successfully endured a
century of existence, Coca- Cola has had to remain
tremendously fluent with their pricing strategy. They
have had the privilege of a worthy competitor constantly
driving them to be smarter, faster, and better. A quote
from Pepsi Co's CEO "The more successful they are,
the sharper we have to be. If the Coca-Cola Company
didn't exist, we'd pray for someone to invent them."
states it simply. The relationship between Coca-Cola &
Pepsi is a healthy one that each corporation has learned
to appreciate.
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Throughout the years Coca-Cola has made many
pricing decisions but one might say that their ultimate
goal has always been to maximize shareholder value.
As cola consumption has decreased in the US colas
have come to realize the untapped international market.
In 2003 both Coke and Pepsi had a solid presence in
India and had each introduced a 300mL bottle. In order
to grab market share Pepsi began to drop prices (even
with summer approaching, which was contrary to policy
in America). Shortly thereafter, Coca-Cola decided to
drop their prices slightly, but focused on the reduced
price point of their 200mL container. Coca- Cola
planned to use the lower price point to penetrate new
cities that were especially price sensitive. The
carbonated soft drink market in India is nearly 37% of
the total beverage market there.
This low price strategy was not unfamiliar to Coca-Cola.
Both Coke & Pepsi utilized a low price strategy in the
early 1990s. After annihilating the low price store
brands, Coke chose to reposition itself as a "Premium"
brand and then raise prices.
Coca-Cola products would appear, on the shelf, to have
the most expensive range of soft drinks common to
supermarkets, at almost double the cost of no name
brands. This can be for several reasons apart from just
to cover the extra costs of promotions, for which no
name brands do without. It creates consumer
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perceptions and values. When people buy Coca-Cola
they are not just buying the beverage but also the image
that goes with it, therefore to have the price higher
reiterates the fact that the product is of a better quality
than the rest and that the consumer is not cheap. This
is known as value-based pricing and is used by many
other industries in attracting consumers.
In India, the average income of a rural worker is Rs.500
a month. Coca Cola launched a 200 ml bottle for just
Rs.5, an affordable amount on the pockets of the rural
audience.
3. Place:
Coca-Cola entered foreign markets in various ways. The
most common modes of entry are direct exporting,
licensing and franchising.
Besides beverages and their special syrups, Coca-Cola
also directly exports its merchandise to overseas
distributors and companies. Other than exporting, the
company markets internationally by licensing bottlers
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around the world and supplying them with the syrup
needed to produce the product.
There are different types of franchising. The type that is
used by Coca-Cola Company is manufacturer-
sponsored wholesaler franchise system. It is very
comparable to licensing but the only difference is that
the finished products are sold to the retailers in local
market.
Coca Cola has managed their company’s marketing and
sales strategy within channels. Have you ever
considered the significance of the Coke vending
machine to the success and profitability of the Coca
Cola company? This channel is direct to consumer and
vending machines often have little to no competition and
no trade or price promotions.
The Coke Company operates three primary delivery
systems for its business channels:
• Bulk delivery for the channels of large
Supermarkets, Mass Merchandisers and Club
stores;
• For smaller channels Coke does advanced sale
delivery for convenience stores, drug stores, small
supermarkets and on-premise fountain accounts.
• Full service delivery for its full service vending
customers.
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Key Channel Listing
• Supermarkets
• Convenience Stores
• Fast Food
• Petroleum Retailers
• Chain Drug Stores
• Hotels/Motels/Resorts
• Mass Merchandisers
• U.S. DOD Military Resale retail commands:
AAFES, NAVRESSO and DECA
• Vending
In 2006, the Company began changing its delivery
method for its route delivery system. Historically, the
Company loaded its trucks at a warehouse with
products the route delivery employee would deliver. The
delivery employee was responsible for pulling the
required products off a side load truck at each customer
location to fill the customer's order. Coke began using a
new CooLift® delivery system in 2006 in a portion of the
Company's territory which involves pre-building orders
in the warehouse on a small pallet the delivery
employee can roll off a truck directly into the customer's
location. The CooLift® delivery system involves the use
of a rear loading truck rather than a conventional side
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loading truck. Coke will continue to rollout this program
over the next several years since they expect such
significant savings and more efficient deliverys. This is a
huge investment for Coke.
The company works through independent bottlers of
Coke. They work in coordination with the Coke company
which produces the 'secret formula concentrate' and
ships to the distributors and bottlers for final processing
and packaging prior to shipment to the stores.
Coca-Cola floods all possible retailing stores in
satisfying the third part, place. In supermarkets and
convenient stores, Coca-Cola products are always easy
to identify, and usually make up the greater proportion
of options to buy. This increases their market exposure
through effective use of the retailers. For a FMCG it is
important that they can be found and purchased easily.
With many automatic Can machines located in many
sports stadiums and shopping malls, you don't even
need to go to a store to buy a drink. This greatly
enhances the speed of purchase.
The company produces concentrate, which is then sold
to various licensed Coca-Cola bottlers throughout the
world. The bottlers, who hold territorially exclusive
contracts with the company, produce finished product in
cans and bottles from the concentrate in combination
with filtered water and sweeteners. The bottlers then
sell, distribute and merchandise Coca-Cola in cans and
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bottles to retail stores and vending machines. Such
bottlers include Coca-Cola Enterprises, which is the
largest single Coca-Cola bottler in North America and
Western Europe and food service distributors.
The Coca-Cola Company only produces a syrup
concentrate, which it sells to various bottlers throughout
the world who hold Coca-Cola franchises for one or
more geographical areas. The bottlers produce the final
drink by mixing the syrup with filtered water and sugar
(or artificial sweeteners) and then carbonate it before
filling it into cans and bottles, which the bottlers then sell
and distribute to retail stores, vending machines,
restaurants and food service distributors.
The Coca-Cola Company owns minority shares in some
of its largest franchises, like Coca-Cola Enterprises,
Coca-Cola Amatil, Coca-Cola Hellenic Bottling
Company (CCHBC) and Coca-Cola FEMSA, but fully
independent bottlers produce almost half of the volume
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sold in the world. Since independent bottlers add sugar
and sweeteners, the sweetness of the drink differs in
various parts of the world, to cater for local tastes.
STRATEGIC PLANNING
In the year 2002, the company had a great success, as the
strategy worked which resulted in making Coca Cola
Company the world’s leading company. In 2001, company
accomplished the crust of it’s strategy as
• Worldwide volume increased by 4 percent with strong
international growth of 5 percent and clear signs that our
North American business is growing solidly and
predictable.
• Earnings per share grew by 82 percent, as we delivered
on our commitment to create volume growth while
aggressively
• Return on common equity grew from 23 percent in 2000
to 38 percent this year.
• Return on capital increased from 16 percent in 2000 to
27 percent in 2001.
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• The company has generated free cash flow of $3.1
billion, up from $2.8 billion in 2000, a clear indication of
its underlying financial strength.
The strategy for the future of the company is very
straightforward. The marketing strategy for the year 2002
is as follows,
• Accelerate carbonated soft-drink growth, led by Coca-
Cola.
• Selectively broaden the family of beverage brands to
drive profitable growth.
• Grow system profitability and capability together with
our bottling partners.
• Serve customers with creativity and consistency to
generate growth across all channels.
• Direct investments to highest potential areas across
markets.
• Drive efficiency and cost-effectiveness everywhere.
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MAJOR COMPETITOR
PEPSI INTERNATIONAL
HISTORY
PepsiCo is a world leader in convenient foods and
beverages, with revenues of about $27 billion and over
143,000 employees. The company consists of the snack
businesses of Frito-Lay North America and Frito-Lay
International; the beverage businesses of Pepsi-Cola North
America, Gatorade/Tropicana North America and PepsiCo
Beverages International; and Quaker Foods North America,
manufacturer and marketer of ready-to-eat cereals and other
food products. PepsiCo brands are available in nearly 200
countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but
the corporation is relatively young. PepsiCo was founded in
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1965 through the merger of Pepsi-Cola and Frito-Lay.
Tropicana was acquired in 1998 and PepsiCo merged with
The Quaker Oats Company, including Gatorade, in
2001.would entertain the listener with the latest musical
selections rendered by violin or piano or both. The new
name, “Pepsi Cola”, is derived from the two of the principle
ingredients, Pepsin and Kola Nuts. It was first used on the
August 28. At that time, Bradham’s advertising praises his
drink as “Exhilarating, invigorating, aids digestion”.
1990-2002
The advertisement of the Pepsi changes to, “You got the
right one baby, Uh-Huh!”.With the extensive usage of the
stars in the adds, the popularity of Pepsi increase. In 1992
Pepsi-Cola formed a partnership with Thomas J. Lipton Co.
Today Lipton is the biggest selling ready-to-drink tea brand
in the United States. Outside the United States, Pepsi-Cola
Company's soft drink operations include the business of
Seven-Up International. Pepsi-Cola beverages are available
in more than 190 countries and territories.
In Asia, they selected Lahore to make their regional office.
This was done in 1970. This regional office is monitoring all
the operations carried out in South West Asia. As in
Pakistan, they only entered beverage industry. They have
eleven bottlers covering whole Pakistan. The plant operating
here is Riaz Bottlers (Pvt) LTD. This plant was established at
Lahore in 1974. The total capacity of the plant is 30,000
cases per day. They have four filling lines in the plant
operating on the three shift bases. Each shift is of eight
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hours. They have permanent work force of 750 people and
they employee approximately 1000 people more on
temporary basis during summer season.
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Pepsi’s Products
• Pepsi
• Teem
• Mirinda
• Pepsi Max
• Pepsi Lemon
• Pepsi Blue
• Mountain Dew
• 7up
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COCA COLA PAKISTAN
The Coca-Cola Company began operating in Pakistan in
1953. Coca-Cola, Fanta and Sprite are the brands in
Pakistan. The Coca-Cola System in Pakistan operates
through eight bottlers, four of which are majority-owned by
Coca-Cola Beverages Pakistan Limited (CCBPL). The
CCBPL plants are in Karachi, Hyderabad, Sialkot,
Gujranwala, Faisalabad, Rahimyar Khan, Multan and
Lahore. The remaining two plants, independently owned, are
in Rawalpindi and Peshawar. The Coca-Cola System in
Pakistan serves 70,000 customers/retail outlets. The Coca-
Cola System in Pakistan employs 1,800 people. During the
last two years, The Coca-Cola System in Pakistan has
invested over $130 million (U.S.)
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PROMISE OF COKE
The basic proposition of our business is simple, solid and
timeless. When we bring refreshment, value, joy and fun to
our stakeholders, then we successfully nurture and protect
our brands, particularly Coca-Cola. That is the key to fulfilling
our ultimate obligation to provide consistently attractive
returns to the owners of our business.
TARGET MARKET
Coke’s commercials basically based on young generations,
So, the young generation is the target market of Coke
because they want to represent Coke with the youth and
energy but they also consider about the old people they take
then as a co-target market.
MAJOR SEGMENTS
Major segments are basically those people who take this
drink daily and those areas where the demands is higher
then the other areas. There are so many people who take
this drink daily and those people who take weekly and those
who take less often are always there as well. So, their basic
segments are those people who take this drink regularly.
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FACTORS EFFECTING SALES
There are so many factors, which affects the sale of coke.
Here we are discussing three major factors which effects
coke.
• Per capita income
• Competitors
• Weather
Per Capita Income
First we will discuss about “ Per capita income”. This is
major factor that affects the sale of this soft drink. Because
which every passing year budgets are becoming very strict
and tight in order to purchase things. So the disposable
incomes of the people are coming down. They spend heavily
on rents, utilities, and education and basic necessities and
after that when they get extra money they think about this
soft drink .So the decreasing per capita income effects badly
in selling and production of this soft drink.
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And to get through with this difficulty there is need to
increase the level of per capita income of Pakistan because
it is much lesser than the rest of the countries.
Competitors
Coke’s major competitor is “PEPSI” and there is no
hesitation to say this because every one knows that and all
the other cold drinks and water, coffee, tea are the
competitors.
Weather
Weather is the third major factor in effecting the Coke’s
selling. This is underdeveloped market so the coke’s
consumption in summers is 60% and in winters is 40%.
MAJOR CUSTOMERS NEED
First of all the majority don’t care that what they are going to
have. In other words, they don’t care before drinking that
whether it is “Pepsi” or “coke”. They don’t actually
differentiate between these two brands in order to their
tastes.
Consumers basically drink what they get.
They believe on “WHAT COLD THEY SOLD”
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Consumer’s availability in brands is basically works like:
Push availability
Pull consumer’s demand.
For this reason Coca-Cola have provided their coolers and
freezers in the market. They have maximum number of
coolers and freezers in the market. They provide this
infrastructure free of cost just to provide child coke to their
customer, which they want to be purchase.
Their salesman and mechanics regularly visit all the shops
where coke has its infrastructure to check that either it is in
proper condition or not, if not then they immediately change
or repair it.
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MAJOR COMPETITORS
Consumers firstly decide that they are going to have a soft
drink. Then they compete brands with each other. Like they
compete Coke with Pepsi and Sprite with 7up and team .So
the major competitor of Coke is Pepsi.
When they motivate to any other brand or on Coke it’s in
instinct basically that based on messages derive certain
feelings.
But Coca Cola thinks in a different way, they believe that RC
Cola, new coming AMRAT Cola, and all juices, even they
take water and tea as their competitors.
STRATEGIES OF QUALITY
After Micro and macro analysis Brand “coke” is primarily role
1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
Though these strategies there could be better understanding
and better connection with the public. These are the “key
consumption”.
THREATS FROM COMPETITORS
Threats are well planned. Price is the major threat. When
price goes certain beyond the exact price whether come
down or go higher its effects the consumption of soft drink.
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Because when the price go higher people go for the
substitute of “coke” i.e. Pepsi.
And when price goes down they think that there is must be
some thing wrong in it.
In short it all depends on customer’s perception.
TARGETS THAT WOULD LIKE TO ATTAIN
Every organization runs on the bases of profit maximization
so Coke is also looking for a high profit margin.
There are three major ways of making money
• Over night profit
• Windfall profit
• Ethical and un-ethical ways
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Over Night Profits
They could be over night profit that is for the number 1 brand
for the year. This could be got my increasing sales volume
Windfall Profit
Can be windfall profit. They are the extras profit. When the
consumption the consumption is on boom. So, there is
different kind of profits.
Ethical And Unethical Ways
Profit can also get through ethical and unethical ways. They
believe on this quote
“ Every thing is fare in love and war”.
Some profits stays for some time like “over night profits” and
some just come and go like “wind fall profits”. And they can
also get profit through different approaches.
EXPANDING TARGET MARKET
In last 2 years Coke has come back in aggressive manner.
• Consumer has choice
• Attractive brand name
• Brand differentiating
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Consumer Has Got Choice
Now the consumer has got choice. Because now they know
the name of another big brand, though coke is the 2nd best
name but it can get a better position after some time
Attractive Brand Name
Now the consumers know the Name of Coke, because Coke
is the name, which is the most popular after the word “ok”.
So people can better differentiate brands with each other.
Brand Differentiation
Now different companies have got different brand
names. So, people can distinguish between brands.
Two major brands “coke” and “Pepsi” also have brand
names.
Coca Cola’s Brand
Coca cola is “US” brand. Because they believe in the
togetherness, being people together and friends are being
together. Coca Cola strongly believes that Pakistani
temperament is “US” not “ME”
Pepsi’s Brand
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Pepsi’s brand is basically is basically “ME” branded. They
use the temperament of “ME”. In contrast to Coke they
believe on individual struggle.
THREATS AND OPPORTUNITIES FOR PRICE
Opportunities
If Coke is considered a luxury product. Then there is the tax
rate system
15% - sales tax
20% - excise duty
27% - goes to government
03% - In making Budget
After paying all these taxes coke has to pay electricity
charges. We have to spend on distributions. After paying all
these expenses Coke’s margin squeezed and consumers
have to pay for increasing tariffs.
These are the opportunities through which we can increase
the price and can get profits.
Threats
There are much more threats in increasing prices.
Because same problem of substitute. If Coke increase
the price lets say 1 rupee. Then people definitely won’t
go for coke. They have the best substitute of Coke that
is Pepsi. So these are the threats in increasing prices.
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Coke will lose the margin of its profit and can face
loss.
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STRATEGIES OF GETTING GOALS I.E. “HIGH
PROFITS”
To increase the price is the least thing, which Coke can
adopt. There are so many ways through which Coke can
increase the profits. Some major ways are as follows.
• Volume can be increased
• Interest level of consumers
• To take part in energetic festivals
How to increase the volume of consumers?
Coke can increase the volume by expanding the industry of
coke. Through advertisements, offering different interesting
things to attract people towards this product.
How to increase the interest level of consumers?
Coke is increasing the interest level of consumers by offering
different flavors.
For example Coke is increasing the number of flavors in
“Fanta”, this is one of the product of coke. Through offering
different flavors Coke can increase the Level of consumers
and through this profits can be gained.
How to take part in energetic festivals?
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Coke is already taking part in the festival like “Basant” since
last 3 years. Coke offers different attractive things in their
festival and through this Coke gained high profit and
consumption of coke increased on these occasions.
And this year in this year 2002 people were anxiously
waiting that what interesting thing coke is going to offer.
MARKETING STRATEGY
Our local marketing strategy enables Coke to listen to all the
voices around the world asking for beverages that span the
entire spectrum of tastes and occasions. What people want
in a beverage is a reflection of who they are, where they live,
how they work and play, and how they relax and recharge.
Whether you're a student in the United States enjoying a
refreshing Coca-Cola, a woman in Italy taking a tea break, a
child in Peru asking for a juice drink, or a couple in Korea
buying bottled water after a run together, we're there for you.
We are determined not only to make great drinks, but also to
contribute to communities around the world through our
commitments to education, health, wellness, and diversity.
Coke strives to be a good neighbor, consistently shaping our
business decisions to improve the quality of life in the
communities in which we do business. It's a special thing to
have billions of friends around the world, and we never
forget it.
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MARKET POSITIONING
Product Range
The total range of Coca Cola company in Pakistan includes:
• Coke.
• Sprite.
• Fanta.
• Diet Coke.
And company offers their products in different bottle sizes
these includes:
• SSRB (standers size returnable bottle)
• LRB (litter returnable bottle)
• NRB (no return bottle) or disposable bottle
• PET 1.5 (1.5 litter plastic bottle)
• CANS (tin pack 330 ml)
Packing
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Coca cola products are available in different packing
• 24 regular bottle shell
• 6 bottle pack for 1.5 pets
• 12 bottles in a pack for disposable bottle
PRICE STRATEGY
Trade Promotion
Coca cola company gives incentives to middle men or
retailers in way a that they offer them free samples and free
empty bottles, by this these retailers and middle man push
their product in the market. And that’s why coca cola seen
more in the market. And they have a good sale in the market
because according to the expert which product seen more in
the market that sells more.
“Seen as sold”
They do agreements with a shop keepers and stores to
exclusive sale in that stores. These stores are called as KEY
accounts in their local language.
And coke also invest heavy budget on these stores and
offers them free samples and free bottles and some time
cash incentives.
Different Price In Different Seasons
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Some times Coca Cola Company change their product
prices according to the season. Summer is supposed to be a
good season for beverage industry in Pakistan.
So in winter they reduce their prices to maintain their sales
and profit. But normally they reduce the prices of their pet
bottles or 1 litter glass bottle.
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PROMOTION STRATEGIES
Getting shelves
They gets or purchase shelves in big departmental stores
and display their products in that shelves in that style which
show their product more clear and more attractive for the
consumers.
Eye Catching Position
Salesman of the coca cola company positions their freezers
and their products in eye-catching positions. Normally they
keep their freezers near the entrance of the stores.
Sale Promotion
Company also do sponsorships with different college and
school’s cafes and sponsors their sports events and other
extra curriculum activities for getting market share.
UTC Scheme
UTC mean under the crown scheme, coca cola often do this
type of scheme and they offer very handy prizes in it. Like
once they offer bicycles, caps, tv sets, cash prizes etc. This
scheme is very much popular among children.
DISTRIBUTION CHANNELS
Coca Cola Company makes two types of selling
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Direct selling
Indirect selling
Direct Selling
In direct selling they supply their products in shops by using
their own transports. They have almost 450 vehicles to
supply their bottles. In this type of selling company have
more profit margin.
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Indirect Selling
They have their whole sellers and agencies to cover all area.
Because it is very difficult for them to cover all area of
Pakistan by their own so they have so many whole sellers
and agencies to assure their customers for availability of
coca cola products.
FACILITATING THE PRODUCT BY
INFRASTRUCTURE
For providing their product in good manner company has
provided infrastructure these includes:
• Vizi cooler
• Freezers
• Display racks
• Free empty bottles and shells for bottles
ADVERTISEMENT
Coca cola company use different mediums
• Print media
• Pos material
• Tv commercial
• Billboards and holdings
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Print Media
They often use print media for advertisement. They have a
separate department for print media.
POS Material
Pos material mean point of sale material this includes:
posters and stickers display in the stores and in different
areas.
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TV Commercials
As everybody know that TV is a most common entertaining
medium so TV commercials is one of the most attractive way
of doing advertisement. So Coca Cola Company does
regular TV commercials on different channels.
Billboards And Holdings
Coca cola is very much conscious about their billboards and
holdings. They have so many sites in different locations for
their billboards.
EXPECTATIONS FOR THE COMING YEAR
Every thing starts from the attitude of consumer’s behavior.
And the basic key to attract the consumers is to throw the
“money away”.
And positive feeling felling with the brand, which they used to
have Coke wants to advertise their products heavily in the
coming year. And it will take the 10% of their profits. And
when we take it as a global level it is $ I billion.
Coming year is the challenging year for the industry of Coke.
They have to take lots of decisions that how to increase the
production and where they have to spend money.
For gaining success in coming year they have to have some
important things like:
1. Loyal consumers are important for company’s success.
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2. Workers should be the brand centric not the promotion
centric.
3. They should know how much to for the brand activities.
4. They should also know that how much to do with the
promotion activities for brand.
HOW COKE DETERMINE THE YEARLY BUDGET
Coke determines its yearly budget by the
• Sales volume
• Profitability
• Target volume
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Sales Volume
Coke determines its yearly budget through the sales volume.
They first concentrate on the thing is “what is the condition of
their sales?” if the condition is good of their sales then they
definitely increase their production and sales volume.
Otherwise they concentrate on their old strategies.
Profitability:
The second thing through which they determines budget is
the “profit” .if they r getting profits with the high margin, then
they definitely want to increase their profits in the next
coming year. Every organization runs on the basis of getting
high profits. No organization wants to face Loss in their
business. To get profit is the first priority of the Coke.
Target Volume:
To run the business every industry has some targets, which
they want to achieve in a specific time period. If industry
achieves those goals in that period then for the coming year
it increases the volume of the target.
So Coke Follow the same thing it has also some goals and
targets to achieve in the given time period. When they
succeed to achieve that target then they increase their target
volume in the next year.
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SALES PROMOTION ACTIVITIES
Coca-Cola Cricket
Cricket the most sought after; watched & played game in
Pakistan .the game of cricket has been owned by various
brands in the industry for the promotion of their products
over a period of time. It has ranged from tobacco to
lubricants to communication companies to banks to airlines
& lately to the beverage industry. The competition has
become tougher & tougher as the time has progressed.
Coca-Cola signed a sponsorship agreement with eight of
Pakistan’s National cricket players. Coca-Cola realizing the
fact that cricket is a very strong element by which it can
reach it consumers & masses invested in the opportunity
and launched a massive campaign on mass media showing
all these cricket stars endorsing & complimenting Coca-Cola
brand. The Coca-Cola Company developed three TV
commercials & four testimonial ads with the player & ran
them on the national net work during various cricket
matches. These bold steps taken by the Coca-Cola
marketing unit acclaimed them many acknowledgements
across the board. This campaign helped Coca-Cola to
establish its association with the game & the player.
Coca-Cola Concerts
Abrar-ul-haq’s distinct style, lyrics & songs have made him
an instant hit among the masses in Pakistan. His enormous
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popularity in the country & abroad is supported by Coca-
Cola’s commitment towards providing healthy & fun-filled
entertainment for the youth of Pakistan. Coca-Cola brought
Abrar to his fans through holding concerts & featuring Abrar
in a much-appreciated TVC & MMT featured throughout the
country.
The TVC campaign focused on the hectic lifestyle of a pop
star who found respite & relief through Coca-Cola in short
moments that he had to himself during a concert. Coca-
Cola’s brand positioning of providing deep down refreshment
for the body, soul & mind were captured accurately in the
TVC & depicted aptly how the drink completes the moment
for Abrar.
Coca-Cola Food Mela
With a splash of food, fun & prizes to be won, the Coca-Cola
food mela treated the people of Karachi, to a festive food
festival comprising of 50 restaurants, spread out all over the
bustling city’s map. The promotion saw the avid families &
friends enjoying the delicacies at the restaurants; all
resiliently upholding the Coca-Cola identity.
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Coca-Cola Basant Festival
In February the month of basant the parks & horticulture
authority in Lahore nominated Coca-Cola the official sponsor
of the basant festival .Coca-Cola added to the carnival
atmosphere by making the festival free to enter & decorating
all main roads in Lahore with illuminated kites. Coca-Cola
also hosted a concert of pop idol Abrar-ul-haq, had children’s
parade & held the Coca-Cola kite flying championship during
the basant festival. Now “where there is basant there is
Coca-Cola”, it has been impossible to envisage basant
without Coca-Cola. Coca-Cola give the more refreshing
flavor to the colors of basant by adding more life to the
festival, giving the consumer a unique experience which they
had never tasted before.
Coca-Cola GO-RED
Quenching the thirst of motorist, pedestrians & passerby’s
during Lahore’s hottest summer season, Coca-Cola’s “GO-
RED” teams went out into the cities main quadrants to “serve
& refresh” on the spot with ice-cold Coca-Colas at
discounted prices backed by a heavy FM announcement
campaign the “GO-RED” stall, served well to promote the
Coca-Cola industry.
Coca-Cola Party in a Park
In June 2000, Coca-Cola created an experiential musical
evening in Lahore, where Junoon performed. This program
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was recorded and one-hour program shown in the national
TV for free.10 million households saw Coca-Cola ‘Party in a
Park’ while 10 thousand people attended the event.
Coca-Cola Shopping Festival
Coca-Cola hosted “The Coca-Cola Shopping Festival”
Lahore’s first shopping festival, a resounding success with
tempting discounts, live music, great prizes & fire works.
Liberty marketing Gulberg was a hive of activity during the
weeklong shopping extravaganza. The in augural event
proved so popular that it is now set to become an annual
fixture.
Coca-Cola Pet Promotion
In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for
the first time in Pakistan. Targeting house wives & family
home, Coca-Cola’s 1.5 liter Pet bottle, took the limelight &
gained momentum with a campaign promoting the unique
packaging and its numerous consumer benefits .A treat for
the family, Coca-Cola’s PET was offered through a “price-
off” promotion that said……….Go out & get some
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Coca-Cola Ramzan Campaign
A very special occasion for the people of Pakistan Ramzan
saw another very special Coca-Cola’s promotion, marketing
the popular 1.5 liter PET bottle & the 1 liter bottle with a
super price-off promotion. The emphasis on enjoying Coca-
Cola at “Iftar” with friends & family.
Coca-Cola Wonder of the World Promotion
In July 2000, Coca-Cola set the stage of the grand UTC
promotion. Coca-Cola went ahead with the idea of giving
consumer chances to win fabulous, magical “dream
vacation” to numerous “wonder destination” throughout the
world on every purchase of a 250 ml RGB bottle of Coca-
Cola, Sprite, & Fanta.The promotion gave consumers a
chance to win free drink, a trip to PARIS, HOLLYWOOD,
NEWYORK, SINGAPORE & CAIRO along with airfare & four
nights free stay in these dream lands. The promotion saw
avid consumer collecting Coca-Cola ‘Crown caps’ & sparked
a keen response from the public , rendering an outstanding
testimonial campaign in the second phase, highlighting the
winners over whelmed in the magical delight of their favorite
beverage Coca-Cola.
Coca-Cola & Nokia
In August 2001, the new under-the-crown promotion
“Nikla Kiya?”(What have u won) was launched in
collaboration with Chimera Nokia.The promotion gave
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consumer a chance to win thousand’s of Coca-Cola
branded Nokia 3310 cellular phones on every
purchase of 750ml RGB bottle of Coca-Cola ,Sprite, &
Fanta.The other highlight of promotion was the
“Caught Red Handed” campaign. Branded Coca-
Cola with ‘caught red handed’ team in them went to
Lahore & Karachi for three days, with target that
anyone being caught drinking Coca-Cola will be
awarded a nokia 3310 mobile phone & if someone is
caught talking on a nokia mobile will win free supply of
Coca-Cola. Caught red handed become a huge success
among the masses as it was one to one interaction between
the Coca-Cola brand & the consumers. This activity helped
billed confidence and brand loyalty among core consumers.
Coca Cola TV Mazza
The coca cola new campaign is coca cola tv mazza, it is a
utc scheme in which people are getting television sets of
different sizes. These days this scheme is very popular
among the people.
Coca-Cola & Mc Donald’s
Coca-Cola & key account of MC Donald’s launched the “we
go together” joint promotion to reinstate amongst
consumers a real sense of the affinity that, both shares
globally. The promotion kicked off with pos material
(Danglers, Bunting etc) displayed at all MC Donald’s
restaurants along with a special offer for coke & fries.
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Fanta & Sprite Launched
In November 2000moving on to the Sprite & Fanta brands,
the consumers in Pakistan witnessed a soft launch in
essence. The Coca-Cola Company declared the new “Non-
Returnable” bottles of Sprite & Fanta as the “New, On the
Go Packs” flaunting the innovative packaging convenience.
Fanta & Sprite are sure to enjoy considerable success in
Pakistan.
Diet Coke
After the acquisition of the individual local franchise bottling
facilities in 1996, the company has successfully launched its
first new product, diet coke, for the first time in almost 3
years. The was linked with three fashion shows as Diet Coke
is related to fashion & fitness, but the major hit was thematic
fashion shows in restaurants, which are the key accounts of
the company as this has been never done before in
Pakistan.
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SWOT ANALYSIS
Strengths:
Coca-Cola has been a complex part of American culture
for over a century. The product's image is loaded with
over-romanticizing, and this is an image many people
have taken deeply to heart. The Coca-Cola image is
displayed on T-shirts, hats, and collectible memorabilia.
This extremely recognizable branding is one of Coca-
Cola's greatest strengths.
Additionally, Coca-Cola's bottling system is one of their
greatest strengths. It allows them to conduct business
on a global scale while at the same time maintain a local
approach. The bottling companies are locally owned
and operated by independent business people who are
authorized to sell products of the Coca-Cola Company.
Because Coke does not have outright ownership of its
bottling network, its main source of revenue is the sale
of concentrate to its bottlers.
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A company like Coca-Cola has much internal and
external strength, but when launching a product of this
sort, they begin to run into many internal and external
weaknesses as well. As far as internal strengths go,
Coca-Cola itself is a strong company to say the least.
Not only are they a $23 billion company, but in 200
nations, Coke sells about 400 drink brands, including
four of the top five sellers right now. They own 36% of
the largest Coke bottler in the world, Coca-Cola
Enterprises, which staffs facilities all over the world.
Although Coke has never produced an organic product,
they do own Odwalla, which is a natural juice company.
This product would not be marketed as an Odwalla
brand, but Odwalla's knowledge of natural juice making
will be a great strength for Coca-Cola.
Organic products are on the rise, with 70% of
Americans having purchased something organic at least
once. While organics are becoming more and more
popular, there still are not many well-known organic
companies; therefore, Coca-Cola will not have much
competition.
Perhaps one of their biggest strengths is the brand
loyalty their customers have. When this product is
launched, avid Coke drinkers will choose this organic
fruit juice or soda over any other competitor simply
because it's a Coca-Cola product and they trust it.
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Weaknesses:
Although domestic businesses as well as many
international markets are thriving, Coca-Cola has
recently reported some "declines in unit case volumes in
Indonesia and Thailand due to reduced consumer
purchasing power." According to an article in Fortune
magazine, "In Japan, unit case sales fell 3% in the
second quarter because while Japan generates around
5% of worldwide volume, it contributes three times as
much to profits. Latin America, Southeast Asia, and
Japan account for about 35% of Coke's volume and
none of these markets are performing to expectation.
Coca-Cola on the other side has effects on the teeth's
which is an issue for health care. It also has got sugar
by which continuous drinking of Coca-Cola may cause
health problems. Being addicted to Coca-Cola also is a
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health problem, because drinking of Coca-Cola daily
has an effect on your body after few years.
Opportunities:
Brand recognition is the significant factor affecting
Coke's competitive position. Coca-Cola's brand name is
known well throughout 94% of the world today.
Packaging changes have also affected sales and
industry positioning, but in general, the public has
tended not to be affected by new products. Coca-Cola's
bottling system also allows the company to take
advantage of infinite growth opportunities around the
world. This strategy gives Coke the opportunity to
service a large geographic, diverse, area.
Threats:
Currently, the threat of new viable competitors in the
carbonated soft drink industry is not very substantial.
The threat of substitutes, however, is a very real threat.
The soft drink industry is very strong, but consumers are
not necessarily married to it. Possible substitutes that
continuously put pressure on both Pepsi and Coke
include tea, coffee, juices, milk, and hot chocolate.
Even though Coca-Cola and Pepsi control nearly 40%
of the entire beverage market, the changing health-
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consciousness of the market could have a serious
affect. Of course, both Coke and Pepsi have already
diversified into these markets, allowing them to have
further significant market shares and offset any losses
incurred due to fluctuations in the market.
Consumer buying power also represents a key threat in the
industry. The rivalry between Pepsi and Coke has produced
a very slow moving industry in which management must
continuously respond to the changing attitudes and demands
of their consumers or face losing market share to the
competition. Furthermore, consumers can easily switch to
other beverages with little cost or consequence
CONCLUSION
After thorough research, we come to the conclusion that the
marketing strategy of Coca Cola is working for them and the
product is gaining popularity among youth day by day.
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RECOMMENDATIONS
After completing our project we have concluded some
recommendation for the coca cola company, which are
following.
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• Coca Cola Company should try to emphasis more on
providing their infrastructure in the market to facilitate
their customers.
• According to the survey, conducted by the international
firm Pakistani people like little bit sweeter cola drink. So
for this coca cola company should produce their product
according to the local demand.
• Marketing team should try to increase the availability of
Coke in rural areas.
• They should also focus the old people.
• Now young generation has a trend to drink a coke 2
regular bottles at same time, so providing more
satisfaction to them company should introduce ½ liter
disposable bottle.
PEST ANALYSIS OF COCA-COLA
There are four variables, which we will discuss in our report, they are:
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POLITICAL VARIABLES
Political variables Strongly Some what No Some what Strongly
Effected Effected Effect Effected Effected
++ + +− − −−
Effects of government NE
regulations &
deregulations
Effect of environmental YES
protection laws if any
Import and export NE
regulations
Effect of political NE
conditions in certain
countries of Coke
Any effect of election, YES
military take over,
Revolution at Coke
Conclusion Of Political Analysis:
As far as the above table is concerned it could be seen that
there are very little chances of “political variables” to effect
the coke’s production and selling behavior.
In the “political variables” most of the things are related to
Governmental activities. So, they don’t leave any good or
bad impact in the Industry of coke.
And there are some exceptional things like: “environmental
protection laws” they some what effect the industry of
Coke. From last two years Government is going to be really
very much conscious about the environment. But after
making the adjustments in plants and applying the proper
way of wastage the chances of being affected by the
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“protection laws” are going to be diminished. So it impact
good for the Coke’s reputation. And the second thing in
political variables which effects Coke is “elections &
military take over” Because in the days of elections and
marshal law’s condition the countries production in any field
is declined. So it affects slightly the revolution of Coke.
So “political conditions” are over all leave neutral effects
on coke’s industry.
ECONOMICAL VARIABLES
Economical Variables Strongly Some what No Some what Strongly
Effected Effected Effect Effected Effected
++ + +− − −−
Do soaring interest rates YES
make business task any
harder
Any effect due to YES
inflation
Anything done to reduce YES
unemployment
Any effect of 11th NE
September 2001,
incident at Coke in
Pakistan
Conclusion Of Economical Analysis
It could be seen that “economical variables” highly affects
the Coke’s resolution. Economic factors are those actors
who effect the production of any industry. So, Coke is not the
out of question. If the economic conditions of the country is
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