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Lovely School of
Management




Submitted To: -
Submitted By:-
Mr. Sunil Budhi Raja
Gyan Prakash

Roll. No:-B46
                                          Sec
                        tion: - S1007
                                           R
                       eg. Id:-11011236



                              1
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 organization

of the country Hindustan Coca-Cola Beverages Private Limited,

Patna for their kind permission to undertaken its study I am grateful

to   respected Mr. Vijay Kumar Singh (HR Executive, in Coca-Cola

Beverages    Private   Limited).   For   their   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. Sunil Budhi

                                   2
Raja. 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.




  TABLE OF CONTENTS



   CONTENTS

  1. Mission statement
  2. Introduction.
  3. Coca Cola.
        a. Coca Cola International.
        b. History.

  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.

                                  3
• 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.

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
throughout 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.
                                  4
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.

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.


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 ,

                                  5
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-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 & markets more than 2800
beverage products. Head quartered 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.



                                6
MANAGEMENT:

The hierarchy of Coca Cola Company is as follows.




                                 7
Chairman
                      Board of governors



                                     Vice Chairman and chief operating officer




                                            Executive Vice Presidents




                                               Senior Vice Presidents




                                                 Vice Presidents




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
                                                                        alcohol   commercial
                                                                           ic      Beverages
                                                                         drink
10 year          5-year    2001 annual                                   2002        2002
compound       compound      growth
annual           annual
growth           growth
Comp Indus    Comp Indus Comp Indus                                     Compan Comp Comp
any     try    any    try any    try                                    y share  any  any
                                                                                share per
                                           8
capita
                                                                Incom
                                                                   e
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
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.




                                  9
(Figure)
    12

    10

     8

     6
                                           unit sale in billions
     4

     2

     0
         1971   1981   1991    2002




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.
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.




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
                                      10
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.

  • 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.

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

                                 11
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,
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
                                  12
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 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.


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
                                 13
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.

  • 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 throughout the world. The world wide total is
about 17.8 billion.
The operation review according to the segments is as follows.

                        Operation Review

     (2002 worldwide unit case volume by operating segment)

  NORTH        LATIN        EUROPE &            ASIA       AFRICA
 AMERICA      AMERICA      MIDDLE EAST

   30%          25%             22%             17%          6%


                                 14
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


 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)


Countr              Unit case growth                 Non- All commercial
  y                                                  alcoh  Beverages
                                                      olic
                                                     Drink
                                                       s

                                 15
10 year        5-year   2002 annual 2002      2002
         compound    compound      growth
         annual        annual
         growth        growth
         Comp Indus Comp Indus Comp Indus Comp Comp Compa
          any    try any     try any    try   any   any    ny per
                                             share share capita
                                                          Income
North      4      5   3       3   2      2    22    15      398
Ameri
   ca
Unite     4      5     3     3         2     2   23   16    419
   d
States
 Latin    6      7     6     6         3     4   24   15    205
Ameri
   ca
Argen     7      4     6     2         7     2   20   10    236
 tina
Brazil    5      5     3     6         3     5   23   13    144
 Chile    9      6     5     3        (2)    3   56   23    336
Mexic     7     10     8     9         2     5   22   18    462
   o
Europ     6      3     5     3         2     4   12   6     72
   e
& Mid
  dle
 East
Eurasi    17     8     6     5        (14)   1   14   5     39
    a
Franc     8      3     9     3         7     3   9    5     110
   e
Germ      1      2    (1)    1        (6)    1   14   7     193
  any
Great     8      2    11     2         8     3   17   6     193
Britai
   n
 Italy    1      3     4     3         2     2   9    6     104
Middl     12    12     7     5         4     8   8    3      17
e East
                                 16
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 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.

 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
                                    17
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     Percenta
                                                                ge
                                                              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%
         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:

                                    18
• $.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 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.


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
                                 19
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          2.3
                                                million       million
Facilities
              Production only                     25             25
                Distribution                     385            361
               Combination                        53             50
Total                                            463            436
Percent of North America population              80%            72%
coverage
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           3%           ½%
                    growth
  Bottle and can net revenues per case             Flat         2%
                    change
Bottle and can cost of sales per physical           1           ½%
                case change
       Reported EBITDA (in billions)             $1.95         $2.39
          Reported EBITDA change                 (18)%          9%
                                   20
Capital expenditures( in billions)            $0.97   $1.18
      %-age of net operating revenues                 6%     8%
   Coverage of North American Can/bottle             83%     74%
                  volume



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.


PRODUCTS:

There are different brands of the Coca Cola Company, which are
currently in use throughout 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



The overall volume of this company is as follows.

                              (Figure)

                                 21
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 Ceil 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 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
                                 22
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.
                    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.

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.

                                  23
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 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.

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:



                                 24
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,
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
  •   Vanilla Coke,
  •   diet Vanilla Coke,
  •   Cherry Coke,
  •   diet Cherry Coke,
                             25
•   Fanta brand soft drinks,
•   Sprite,
•   diet Sprite
•   Sprite Remix




                           26
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 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.

                                     27
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




  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
                                 28
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.

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 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.

                             29
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 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.

  Key Channel Listing

    • Supermarkets
    • Convenience Stores
                               30
• 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 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
                             31
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 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
                            32
Amatil, Coca-Cola Hellenic Bottling Company (CCHBC) and
      Coca-Cola FEMSA, but fully independent bottlers produce
      almost half of the volume 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.
  • 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.



                                   33
• 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.




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
                                  34
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 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 hours. They
have permanent work force of 750 people and them employee
approximately 1000 people more on temporary basis during
summer season.

Pepsi’s Products


                                   35
• Pepsi

  • Teem

  • Mirinda

  • Pepsi Max

  • Pepsi Lemon

  • Pepsi Blue

  • Mountain Dew

  • 7up



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.)




                                 36
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.




FACTORS EFFECTING SALES
                                  37
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.
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 everyone knows that and all the other cold drinks and
water, coffee, tea is 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



                                  38
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”
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.

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

                                  39
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.
Because when the price goes higher people go for the substitute of
“coke” i.e. Pepsi.
And when price goes down they think that there is must be
something 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

     • Overnight profit
     • Windfall profit
     • Ethical and un-ethical ways

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


                                  40
Profit can also get through ethical and unethical ways. They believe
      on this quote
“Everything 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
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”

                                  41
Pepsi’s Brand

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 increases the price let’s 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. Coke will lose the margin of its profit and can face
loss.

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
                                  42
• 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?

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 which 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

                                  43
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.




                       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 liter plastic bottle)
  • CANS         (tin pack 330 ml)

Packing

Coca cola products are available in different packing
                                    44
• 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 those 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

Sometimes Coca Cola Company changes 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.

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
                                  45
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
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.

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



                                  46
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



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.
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

                                 47
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

 Everything 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.
  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

Sales Volume


                                 48
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.




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
                                   49
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 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.

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
                                   50
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 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
                                  51
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

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 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
                                52
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.

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.


                            SWOT ANALYSIS
Strengths:

                                  53
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.

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
                             54
other competitor simply because it's a Coca-Cola product and
    they trust it.

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 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
                                 55
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-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.




                                56
RECOMMENDATIONS


After completing our project we have concluded some
recommendation for the coca cola company, which are following.


  • 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:

                                 POLITICAL VARIABLES


                                   57
Political          Strong  Some        No     Some    Strongly
    variables            ly     what      Effe     what   Effected
                       Effect Effected     ct    Effected     −−
                         ed       +        + −       −
                         ++
     Effects of                           NE
    government
   regulations &
   deregulations
      Effect of                     YES
  environmental
 protection laws if
         any
    Import and                            NE
       export
    regulations
 Effect of political                      NE
   conditions in
 certain countries
      of Coke
   Any effect of                                   YES
 election, 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
                                     58
affected by the “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         Strong     Some       No      Some       Strongl
    Variables           ly       what      Effec     what         y
                      Effect    Effecte      t     Effected    Effecte
                        ed         d        + −        −          d
                        ++         +                              −−
     Do soaring                                                  YES
   interest rates
   make business
  task any harder
 Any effect due to                                               YES
      inflation
 Anything done to      YES
       reduce
  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 not that strong and Coke
increases its Price in this situation. Then it would impact highly
negative. And inflation is also not a good position for any country’s
                                   59
production point of view. It also impacts highly negative in the
Coke’s production.

And as a country concerned like “Pakistan” where the
unemployment rate is very much high. The Coca-Cola system in
Pakistan employs 1,800 people. During the last 2 years, the Coca-
Cola system in Pakistan has involved over $130 million (U.S).
When we draw the conclusion of “economic variables”. Then we
come to know that if economic variables are in the favorable
position of country then they impact good other wise the impact
highly bad.




SOCIAL VARIABLES

 Social variables      Strong  Some     No    Some    Strong
                          ly    what   Effec   what     ly
                       Effect Effected   t   Effected Effect
                         ed       +     + −      −      ed
                         ++                              −−
      Effects of         YES
  advertisement of
   Coke on Public
     popularity
 How will do Coke’s     YES
 contribution affect
       charity
  organizations of
      Pakistan
     Has rising                 YES
  consciousness of
natural resources in
   people effected
     your “save
    environment
      activities.

                                60
CONCLUSION OF SOCIAL ANALYSIS

EDUCATION

The Coca-Cola Company has always believed that education is a
powerful force in improving the quality of life and creating
opportunity for people and their families around the world.
The Coca-Cola Company is committed to helping people make their
dreams come true. All over the world, we are involved in innovative
programs that give hard-working, Knowledge-hungry students
books, supplies, places to study and scholarships. From youth in
Brazil to first generation scholars, educational programs in local
communities are our priority.

ENVIRONMENT

A large part or our relationship with the world around us is our
relationship with the physical world. While we have always sought to
be sensitive to the environment, we must use our significant
resources and capabilities to provide active leadership on
environmental issues, particularly those relevant to our business.
We want the world we share to be clean and beautiful. We are
always innovating to bring you different delicious beverages. This
same spirit of innovation comes alive in our environment programs.
We’re committed to preserving our environment, from use of more
than $ 2 billion (U.S) a year in recycling content and suppliers, and
environment

Management initiatives, down to very local neighborhood collection
and beautification efforts. Here’s a sample of what we’re doing in
different communities around the world regarding the conservation
of water and natural resources, climate changes, waste environment
education.
The Coca-Cola system in Pakistan operates through eight bottlers.
Four of which are majority-owned by Coca-Cola Beverages Pakistan
Limited (CCBPL).

COMMUNITY INVOLVEMENT:


                                 61
In 2000, when eastern Pakistan suffered its worst droughts, The
Coca-Cola system initiated a famine-relief program to help victims
and was the first private-sector company to assist. The Coca-Cola
system in Pakistan initiated a voluntary Hajj program that allows one
employee from each plant, selected through a draw, to be sent on
the Holy Pilgrimage to Mecca at the Company’s expense.

                  TECHNOLOGICAL VARIABLES

  Technological     Strong  Some     No    Some    Strong
    variables          ly    what   Effec   what      ly
                    Effect Effected   t   Effected Effecte
                      ed       +     + −      −       d
                      ++                              −−
  Have business       YES
    innovations
     effectively
  promoted your
      business
       Has the                                               YES
  government’s
 regulations ever
    hindered in
     importing
      technical
     equipment
 Does Coke help       YES
   in promoting
     paperless
   environment


Conclusion Of Technological Analysis

Of course business innovation leaves highly good impacts in the
business of Coke. As coke use more advance technology in its
production process. It will resulted in increment of their production
through out the country.

As far as the “governmental hindrances” are concerned the impacts
highly bad on coke’s production. Ever year when budget in
                                 62
announced government taxes rates always shoot up. This approach
of government decreases the profit margin of Coke.

As the coke helping in promoting “paperless environment” .it
impacts good, because computers are the basic need of any person
now a days. And though it’s a big industry so it is promoting the
trend of paperless environment. And it is giving the way of other
industries to come to new technologies and into a new world of
business. Through computers coke can increase the efficiency of its
business and can have up –to-date data about their productions.


OVER ALL RESULTS OF PEST ANANYSIS

After our studies and analysis of CCBPL (Coca-Cola Beverages
Private Limited), we came up with the very interesting report of
facts and figures. Coca-Cola is no doubt one of the most popular
beverage company and its product COKE is one of most consumed
cola drink. They spend billion of dollars on their advertisement,
promotions and recreational campaign.

Coca-Cola is a close competitor of Pepsi and it certainly gives its
rival a tough time. Coca-Cola is a 27% shareholder in the Pakistan
market and they don’t want to stop here!! Its target market is to
achieve a much higher %age. Coca-Cola has about 2000 employees
at Pakistani plants. Lahore plant of Coca-Cola is one of the beautiful
plant in Asia, Situated on Raiwand Road.

Coca-Cola has always had a close consumer and supplier
relationship with its customers. Its entertaining and colorful
advertisements have always and will always rock the media.
Pakistani rock stars, sportmen and actors have played a very vital
role in making Coca-Cola such a popular beverage.

DATA ANALYSIS

     1. Have you ever tried the product (Coca-Cola)?




                                  63
35

 30

 25

 20

 15

 10

  5

  0
          yes            no




Out of the 30 people we surveyed, all of them said they had
tried Coca-Cola atleast once. This explains the brand
awareness of Coca-Cola.


2. Gender

 20
 18
 16
 14
 12
 10
  8
  6
  4
  2
  0
          male          female




Out of the 30 respondents, there were 18 men & 12 women.



3. Age groups

                              64
Age Groups


  51 & above

    36-50 yrs

    20-35 yrs

    10-19 yrs

 below 10 yrs

                0            5           10        15

                             no. of people




As represented in the chart, majority of the respondents were
in the age group of 20-35 years, the least of the lot being 2 kids
who were also asked to participate in the survey.



4. Do you enjoy the product (Coca-Cola)?




                     no
                    23%




                                     yes
                                     77%




From the analysis, it was found that majority of 77% (23
people) respondents said they enjoyed drinking Coca-Cola as
against 23% (7 people) who said they preferred other drinks.
                                              65
5. What brand would you say is more popular among the
public?

a) Coca-Cola
b) Pepsi
c) Other


                          Others
                           7%




              Pepsi
              37%                              Coca-Cola
                                                 56%




As seen in the chart, out of 30 people, 17 respondents said, in
their opinion, Coca-Cola was more popular while 11
respondents said they preferred Pepsi as a popular brand.


6. Do you enjoy Coca-Cola’s advertisements on TV?




                      I don’t like them

                                 not bad

 they are good but nothing special

                      I really like them

                                           0   2   4        6   8   10   12   14




                                                       66
The chart represents that a majority of people thought the
Advertisements were good enough & they like what they see.

7. Do you think the price for a can of Coca Cola is cheap
or expensive?




    expensive


     slightly
   overpriced


       cheap

                0   5   10        15   20   25




  As seen in the above figure, a majority of 23 people out of
  the 30 respondents thought that the Coca-Cola Cans are
  slightly overpriced with a few people also rating it as
  expensive.


8. If you were to see the Coca-Cola logo somewhere
would you recognize it?




                             67
no
                                    0%




                                     yes
                                    100%




   It is understood from the fact that the Logo of the Company
   still has its image in the minds of the people with all the
   respondents saying they would recognize the “Coca-Cola”
   Logo.
9. How often do you buy the product?




                everyday

     few times in a week

    few times in a month

 once/few times in a year

                   never

                            0   5          10        15




As it can be seen in the figure, it was concluded that majority
of the respondents bought the product quite frequently. This
shows the brand loyalty of the customers towards Coca-Cola.




                                                68
10. Where do you buy Coca-Cola products the most?




   Restaurants



 general stores



 super markets


                  0   5   10   15        20




As seen in the above chart, customers usually preferred to buy
Coca-cola in restaurants like KFC, Mc Donalds, Sub-Way etc.
The second largest option was General stores stocking Coca-
Cola.




                                    69
CONCLUSION


 • It was observed that Coca-Cola has been perceived quite
   positively as it has been projected. People are aware of the
   Brand & Awareness of Coca-Cola is quite high in the market.
   When a product is launched, avid Coke drinkers choose this
   soda over any other competitor simply because it's a Coca-Cola
   product and they trust it.

 • Although Coke has been into controversies, people still prefer
   to stay loyal to the Brand with Coca-Cola being termed as a
   more popular brand than Pepsi.

 • 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. 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.

 • In supermarkets and convenience stores Coca-Cola has their
   own fridge which contains only their products. There is little
   personal selling, but that is made up for in public relations and
   corporate image. Coca-Cola sponsors a lot of events including
   sports and recreational activities.




So…


                                70
“ Jo chaho ho jaye coca-cola enjoy ”




                           LIMITATIONS



• Time Constraints:

    A two months’ time limits us to understand completely the

    market requirements and all round working perspective of the

    company.

• Position and Authentication Constraints:

With no authority or position it was sometimes difficult to convince

the customer in front as summer trainee holds no responsibilities in

the eyes of corporate.

•   No Customer Interaction:

    It is because the customers of Hindustan Coca-Cola Beveragws

    Private Limited are big organizations; these organizations are

    situated outside Varanashi. So, there is no interection with

    customers of Hindustan Coca-Cola Beveragws Private Limited.


                                 71
SUGGESTIONS

In the report we have seen the graph of order booking targets and

sales turnover. In the graph of order booking we have seen that the

order for our product is increasing year. It means that with the

increase of order to target. We have efficiency of the organization;

we have to improve on certain points:

• Cost efficiency:

To get the achievement of cost efficiency we have to keep certain

points in our mind they are resale of scraps, inventory management,

work distribution.

• Profit generation:

In the SWOT analysis we have seen there is a great opportunity

products, these can be turnkey for the company. The company

should try to work on export. They should lay more emphasis on

export.


                                 72
Lovely School of Management Summer Training Report
Lovely School of Management Summer Training Report
Lovely School of Management Summer Training Report
Lovely School of Management Summer Training Report
Lovely School of Management Summer Training Report

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Lovely School of Management Summer Training Report

  • 1. Lovely School of Management Submitted To: - Submitted By:- Mr. Sunil Budhi Raja Gyan Prakash Roll. No:-B46 Sec tion: - S1007 R eg. Id:-11011236 1
  • 2. 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 organization of the country Hindustan Coca-Cola Beverages Private Limited, Patna for their kind permission to undertaken its study I am grateful to respected Mr. Vijay Kumar Singh (HR Executive, in Coca-Cola Beverages Private Limited). For their 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. Sunil Budhi 2
  • 3. Raja. 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. TABLE OF CONTENTS CONTENTS 1. Mission statement 2. Introduction. 3. Coca Cola. a. Coca Cola International. b. History. 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. 3
  • 4. • 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. 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 throughout 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. 4
  • 5. 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. 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. 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 , 5
  • 6. 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-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 & markets more than 2800 beverage products. Head quartered 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. 6
  • 7. MANAGEMENT: The hierarchy of Coca Cola Company is as follows. 7
  • 8. Chairman Board of governors Vice Chairman and chief operating officer Executive Vice Presidents Senior Vice Presidents Vice Presidents 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 alcohol commercial ic Beverages drink 10 year 5-year 2001 annual 2002 2002 compound compound growth annual annual growth growth Comp Indus Comp Indus Comp Indus Compan Comp Comp any try any try any try y share any any share per 8
  • 9. capita Incom e 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 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. 9
  • 10. (Figure) 12 10 8 6 unit sale in billions 4 2 0 1971 1981 1991 2002 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. 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. 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 10
  • 11. 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. • 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. 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 11
  • 12. 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, 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 12
  • 13. 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 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. 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 13
  • 14. 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. • 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 throughout the world. The world wide total is about 17.8 billion. The operation review according to the segments is as follows. Operation Review (2002 worldwide unit case volume by operating segment) NORTH LATIN EUROPE & ASIA AFRICA AMERICA AMERICA MIDDLE EAST 30% 25% 22% 17% 6% 14
  • 15. 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 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) Countr Unit case growth Non- All commercial y alcoh Beverages olic Drink s 15
  • 16. 10 year 5-year 2002 annual 2002 2002 compound compound growth annual annual growth growth Comp Indus Comp Indus Comp Indus Comp Comp Compa any try any try any try any any ny per share share capita Income North 4 5 3 3 2 2 22 15 398 Ameri ca Unite 4 5 3 3 2 2 23 16 419 d States Latin 6 7 6 6 3 4 24 15 205 Ameri ca Argen 7 4 6 2 7 2 20 10 236 tina Brazil 5 5 3 6 3 5 23 13 144 Chile 9 6 5 3 (2) 3 56 23 336 Mexic 7 10 8 9 2 5 22 18 462 o Europ 6 3 5 3 2 4 12 6 72 e & Mid dle East Eurasi 17 8 6 5 (14) 1 14 5 39 a Franc 8 3 9 3 7 3 9 5 110 e Germ 1 2 (1) 1 (6) 1 14 7 193 any Great 8 2 11 2 8 3 17 6 193 Britai n Italy 1 3 4 3 2 2 9 6 104 Middl 12 12 7 5 4 8 8 3 17 e East 16
  • 17. 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 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. 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 17
  • 18. 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 Percenta ge 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% 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: 18
  • 19. • $.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 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. 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 19
  • 20. 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 2.3 million million Facilities Production only 25 25 Distribution 385 361 Combination 53 50 Total 463 436 Percent of North America population 80% 72% coverage 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 3% ½% growth Bottle and can net revenues per case Flat 2% change Bottle and can cost of sales per physical 1 ½% case change Reported EBITDA (in billions) $1.95 $2.39 Reported EBITDA change (18)% 9% 20
  • 21. Capital expenditures( in billions) $0.97 $1.18 %-age of net operating revenues 6% 8% Coverage of North American Can/bottle 83% 74% volume 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. PRODUCTS: There are different brands of the Coca Cola Company, which are currently in use throughout 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 The overall volume of this company is as follows. (Figure) 21
  • 22. 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 Ceil 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 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 22
  • 23. 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. 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. 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. 23
  • 24. 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 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. 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: 24
  • 25. 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, 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 • Vanilla Coke, • diet Vanilla Coke, • Cherry Coke, • diet Cherry Coke, 25
  • 26. Fanta brand soft drinks, • Sprite, • diet Sprite • Sprite Remix 26
  • 27. 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 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. 27
  • 28. 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 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 28
  • 29. 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. 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 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. 29
  • 30. 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 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. Key Channel Listing • Supermarkets • Convenience Stores 30
  • 31. • 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 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 31
  • 32. 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 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 32
  • 33. Amatil, Coca-Cola Hellenic Bottling Company (CCHBC) and Coca-Cola FEMSA, but fully independent bottlers produce almost half of the volume 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. • 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. 33
  • 34. • 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. 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 34
  • 35. 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 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 hours. They have permanent work force of 750 people and them employee approximately 1000 people more on temporary basis during summer season. Pepsi’s Products 35
  • 36. • Pepsi • Teem • Mirinda • Pepsi Max • Pepsi Lemon • Pepsi Blue • Mountain Dew • 7up 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.) 36
  • 37. 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. FACTORS EFFECTING SALES 37
  • 38. 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. 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 everyone knows that and all the other cold drinks and water, coffee, tea is 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 38
  • 39. 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” 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. 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 39
  • 40. 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. Because when the price goes higher people go for the substitute of “coke” i.e. Pepsi. And when price goes down they think that there is must be something 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 • Overnight profit • Windfall profit • Ethical and un-ethical ways 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 40
  • 41. Profit can also get through ethical and unethical ways. They believe on this quote “Everything 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 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” 41
  • 42. Pepsi’s Brand 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 increases the price let’s 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. Coke will lose the margin of its profit and can face loss. 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 42
  • 43. • 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? 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 which 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 43
  • 44. 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. 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 liter plastic bottle) • CANS (tin pack 330 ml) Packing Coca cola products are available in different packing 44
  • 45. • 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 those 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 Sometimes Coca Cola Company changes 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. 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 45
  • 46. 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 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. 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 46
  • 47. 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 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. 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 47
  • 48. 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 Everything 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. 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 Sales Volume 48
  • 49. 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. 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 49
  • 50. 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 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. 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 50
  • 51. 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 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 51
  • 52. 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 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 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 52
  • 53. 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. 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. SWOT ANALYSIS Strengths: 53
  • 54. 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. 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 54
  • 55. other competitor simply because it's a Coca-Cola product and they trust it. 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 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 55
  • 56. 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-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. 56
  • 57. RECOMMENDATIONS After completing our project we have concluded some recommendation for the coca cola company, which are following. • 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: POLITICAL VARIABLES 57
  • 58. Political Strong Some No Some Strongly variables ly what Effe what Effected Effect Effected ct Effected −− ed + + − − ++ Effects of NE government regulations & deregulations Effect of YES environmental protection laws if any Import and NE export regulations Effect of political NE conditions in certain countries of Coke Any effect of YES election, 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 58
  • 59. affected by the “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 Strong Some No Some Strongl Variables ly what Effec what y Effect Effecte t Effected Effecte ed d + − − d ++ + −− Do soaring YES interest rates make business task any harder Any effect due to YES inflation Anything done to YES reduce 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 not that strong and Coke increases its Price in this situation. Then it would impact highly negative. And inflation is also not a good position for any country’s 59
  • 60. production point of view. It also impacts highly negative in the Coke’s production. And as a country concerned like “Pakistan” where the unemployment rate is very much high. The Coca-Cola system in Pakistan employs 1,800 people. During the last 2 years, the Coca- Cola system in Pakistan has involved over $130 million (U.S). When we draw the conclusion of “economic variables”. Then we come to know that if economic variables are in the favorable position of country then they impact good other wise the impact highly bad. SOCIAL VARIABLES Social variables Strong Some No Some Strong ly what Effec what ly Effect Effected t Effected Effect ed + + − − ed ++ −− Effects of YES advertisement of Coke on Public popularity How will do Coke’s YES contribution affect charity organizations of Pakistan Has rising YES consciousness of natural resources in people effected your “save environment activities. 60
  • 61. CONCLUSION OF SOCIAL ANALYSIS EDUCATION The Coca-Cola Company has always believed that education is a powerful force in improving the quality of life and creating opportunity for people and their families around the world. The Coca-Cola Company is committed to helping people make their dreams come true. All over the world, we are involved in innovative programs that give hard-working, Knowledge-hungry students books, supplies, places to study and scholarships. From youth in Brazil to first generation scholars, educational programs in local communities are our priority. ENVIRONMENT A large part or our relationship with the world around us is our relationship with the physical world. While we have always sought to be sensitive to the environment, we must use our significant resources and capabilities to provide active leadership on environmental issues, particularly those relevant to our business. We want the world we share to be clean and beautiful. We are always innovating to bring you different delicious beverages. This same spirit of innovation comes alive in our environment programs. We’re committed to preserving our environment, from use of more than $ 2 billion (U.S) a year in recycling content and suppliers, and environment Management initiatives, down to very local neighborhood collection and beautification efforts. Here’s a sample of what we’re doing in different communities around the world regarding the conservation of water and natural resources, climate changes, waste environment education. The Coca-Cola system in Pakistan operates through eight bottlers. Four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). COMMUNITY INVOLVEMENT: 61
  • 62. In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system initiated a famine-relief program to help victims and was the first private-sector company to assist. The Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one employee from each plant, selected through a draw, to be sent on the Holy Pilgrimage to Mecca at the Company’s expense. TECHNOLOGICAL VARIABLES Technological Strong Some No Some Strong variables ly what Effec what ly Effect Effected t Effected Effecte ed + + − − d ++ −− Have business YES innovations effectively promoted your business Has the YES government’s regulations ever hindered in importing technical equipment Does Coke help YES in promoting paperless environment Conclusion Of Technological Analysis Of course business innovation leaves highly good impacts in the business of Coke. As coke use more advance technology in its production process. It will resulted in increment of their production through out the country. As far as the “governmental hindrances” are concerned the impacts highly bad on coke’s production. Ever year when budget in 62
  • 63. announced government taxes rates always shoot up. This approach of government decreases the profit margin of Coke. As the coke helping in promoting “paperless environment” .it impacts good, because computers are the basic need of any person now a days. And though it’s a big industry so it is promoting the trend of paperless environment. And it is giving the way of other industries to come to new technologies and into a new world of business. Through computers coke can increase the efficiency of its business and can have up –to-date data about their productions. OVER ALL RESULTS OF PEST ANANYSIS After our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited), we came up with the very interesting report of facts and figures. Coca-Cola is no doubt one of the most popular beverage company and its product COKE is one of most consumed cola drink. They spend billion of dollars on their advertisement, promotions and recreational campaign. Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough time. Coca-Cola is a 27% shareholder in the Pakistan market and they don’t want to stop here!! Its target market is to achieve a much higher %age. Coca-Cola has about 2000 employees at Pakistani plants. Lahore plant of Coca-Cola is one of the beautiful plant in Asia, Situated on Raiwand Road. Coca-Cola has always had a close consumer and supplier relationship with its customers. Its entertaining and colorful advertisements have always and will always rock the media. Pakistani rock stars, sportmen and actors have played a very vital role in making Coca-Cola such a popular beverage. DATA ANALYSIS 1. Have you ever tried the product (Coca-Cola)? 63
  • 64. 35 30 25 20 15 10 5 0 yes no Out of the 30 people we surveyed, all of them said they had tried Coca-Cola atleast once. This explains the brand awareness of Coca-Cola. 2. Gender 20 18 16 14 12 10 8 6 4 2 0 male female Out of the 30 respondents, there were 18 men & 12 women. 3. Age groups 64
  • 65. Age Groups 51 & above 36-50 yrs 20-35 yrs 10-19 yrs below 10 yrs 0 5 10 15 no. of people As represented in the chart, majority of the respondents were in the age group of 20-35 years, the least of the lot being 2 kids who were also asked to participate in the survey. 4. Do you enjoy the product (Coca-Cola)? no 23% yes 77% From the analysis, it was found that majority of 77% (23 people) respondents said they enjoyed drinking Coca-Cola as against 23% (7 people) who said they preferred other drinks. 65
  • 66. 5. What brand would you say is more popular among the public? a) Coca-Cola b) Pepsi c) Other Others 7% Pepsi 37% Coca-Cola 56% As seen in the chart, out of 30 people, 17 respondents said, in their opinion, Coca-Cola was more popular while 11 respondents said they preferred Pepsi as a popular brand. 6. Do you enjoy Coca-Cola’s advertisements on TV? I don’t like them not bad they are good but nothing special I really like them 0 2 4 6 8 10 12 14 66
  • 67. The chart represents that a majority of people thought the Advertisements were good enough & they like what they see. 7. Do you think the price for a can of Coca Cola is cheap or expensive? expensive slightly overpriced cheap 0 5 10 15 20 25 As seen in the above figure, a majority of 23 people out of the 30 respondents thought that the Coca-Cola Cans are slightly overpriced with a few people also rating it as expensive. 8. If you were to see the Coca-Cola logo somewhere would you recognize it? 67
  • 68. no 0% yes 100% It is understood from the fact that the Logo of the Company still has its image in the minds of the people with all the respondents saying they would recognize the “Coca-Cola” Logo. 9. How often do you buy the product? everyday few times in a week few times in a month once/few times in a year never 0 5 10 15 As it can be seen in the figure, it was concluded that majority of the respondents bought the product quite frequently. This shows the brand loyalty of the customers towards Coca-Cola. 68
  • 69. 10. Where do you buy Coca-Cola products the most? Restaurants general stores super markets 0 5 10 15 20 As seen in the above chart, customers usually preferred to buy Coca-cola in restaurants like KFC, Mc Donalds, Sub-Way etc. The second largest option was General stores stocking Coca- Cola. 69
  • 70. CONCLUSION • It was observed that Coca-Cola has been perceived quite positively as it has been projected. People are aware of the Brand & Awareness of Coca-Cola is quite high in the market. When a product is launched, avid Coke drinkers choose this soda over any other competitor simply because it's a Coca-Cola product and they trust it. • Although Coke has been into controversies, people still prefer to stay loyal to the Brand with Coca-Cola being termed as a more popular brand than Pepsi. • 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. 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. • In supermarkets and convenience stores Coca-Cola has their own fridge which contains only their products. There is little personal selling, but that is made up for in public relations and corporate image. Coca-Cola sponsors a lot of events including sports and recreational activities. So… 70
  • 71. “ Jo chaho ho jaye coca-cola enjoy ” LIMITATIONS • Time Constraints: A two months’ time limits us to understand completely the market requirements and all round working perspective of the company. • Position and Authentication Constraints: With no authority or position it was sometimes difficult to convince the customer in front as summer trainee holds no responsibilities in the eyes of corporate. • No Customer Interaction: It is because the customers of Hindustan Coca-Cola Beveragws Private Limited are big organizations; these organizations are situated outside Varanashi. So, there is no interection with customers of Hindustan Coca-Cola Beveragws Private Limited. 71
  • 72. SUGGESTIONS In the report we have seen the graph of order booking targets and sales turnover. In the graph of order booking we have seen that the order for our product is increasing year. It means that with the increase of order to target. We have efficiency of the organization; we have to improve on certain points: • Cost efficiency: To get the achievement of cost efficiency we have to keep certain points in our mind they are resale of scraps, inventory management, work distribution. • Profit generation: In the SWOT analysis we have seen there is a great opportunity products, these can be turnkey for the company. The company should try to work on export. They should lay more emphasis on export. 72