Professional Documents
Culture Documents
MARKETING STRATEGY
Marketing Strategies Of
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Coca Cola
PRESENTED TO:
Sir Kamran Saeed
PRESENTED BY:
Nazish Sohail
HU Lahore
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TABLE OF CONTENTS
CONTENTS
1. Acknowledgement.
2. Mission statement
3. Introduction.
4. Coca Cola.
a. Coca Cola International.
b. History.
5. Management.
6. Market share.
7. Financial report.
8. Dividends and Cash Plan.
9. Products.
10. Strategic planning.
11. Bottlers owned by Coca cola
12. Coca Cola Pakistan.
13. Major Competitors
a. Pepsi
b. History.
c. Financial assets.
• Market share.
• Financial report.
• Products.
• Methodology
14. 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:
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m. How coke determine the yearly budget:
15. Marketing strategies
16. Pest analysis
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DEDICATION
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ACKNOWLEDGEMENTS
First of all we would like to thank our teacher SIR Kamran Saeed
for his guidance through out the semester.
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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:
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.
MANAGEMENT:
Chairman
Board of governors
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.
(Table)
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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
capita
Incom
e
6% 5% 5% 5% 4% 4% 18% 9% 70
(Figure)
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This strategy has worked a lot and it has helped them to become the
World’s leading Soft Drink Company. The global unit sale of the Coca
Cola Company is increasing from the last ten years. The data of the
global unit sale of the Coca Cola Company can be represented by
following chart.
(Figure)
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10
8
6
unit sale in billions
4
2
0
1971 1981 1991 2002
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In 2002, the company had worked with their bottlers to turn good
intentions into reality by improving the system economics. The
results in 2002 reflect this steadily improving and mutually
constructive relationship between the Company and their bottling
partners. The main reason behind this relationship is to continue
realizing shared opportunities for growth, with closer coordination of
operations including customer relationships, logistics and
production.
Operation Review
NORTH AMERICA
LATIN AMERICA
AFRICA
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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)
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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
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
(Figure)
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FINANCIAL REPORT:
(Table)
2002 basic and diluted net income per share includes a non-cash
gain of $.02 per share after taxes, which was recognized on the
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issuance of stock by Coca-Cola Enterprises Inc., one of the equity
investors of this company.
2002 basic and diluted net income per share includes the following
charges:
• $.24 per share after income taxes related to an organizational
Realignment.
• $.19 per share after income taxes related to the Company's
portion of charges recorded by the investors of the company.
• $.16 per share after income taxes related to the impairment of
certain bottling, manufacturing and intangible assets.
• $.05 per share after income taxes related to the settlement
terms of a discrimination lawsuit.
• $.01 per share after income taxes related to incremental
marketing expenses in Central Europe.
These charges are partially offset by a gain of $.05 per share after
income taxes related to the merger of Coca-Cola Beverages plc and
Hellenic Bottling Company S.A. and $.04 per share after income
taxes related to benefits from a tax rate reduction in Germany and
from favorable tax planning strategies.
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COMPANY STATISTICS:
(Table)
2002ª 2001
PRODUCTS:
There are different brands of the Coca Cola Company, which are
currently in use through out the world. This company not only deals
in the carbonated drinks but also other drinks. While launching its
product, the marketing team considers the culture of the country.
(Figure)
COKE is:
Known as 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.
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.
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exceptional beverage quality, easy to upgrade technology, brand
and graphic customization and improved reliability.
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
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• 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.
MAJOR COMPETITOR
PEPSI INTERNATIONAL
HISTORY
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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 they employee
approximately 1000 people more on temporary basis during
summer season.
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Pepsi’s Products
• Pepsi
• Teem
• Mirinda
• Pepsi Max
• Pepsi Lemon
• Pepsi Blue
• Mountain Dew
• 7up
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COCA COLA PAKISTAN
PROMISE OF COKE
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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
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.
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
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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
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%.
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.
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For this reason, Coca-Cola has provided their coolers and freezers in
the market. They have maximum number of coolers and freezers in
the market. They provide this infrastructure free of cost just to
provide child coke to their customer, which they want to be
purchase.
Their salesman and mechanics regularly visit all the shops where
coke has its infrastructure to check that either it is in proper
condition or not, if not then they immediately change or repair it.
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MAJOR COMPETITORS
Consumers firstly decide that they are going to have a soft drink.
Then they compete brands with each other. Like they compete Coke
with Pepsi and Sprite with 7up and team .So the major competitor of
Coke is Pepsi.
When they motivate to any other brand or on Coke it’s in instinct
basically that based on messages derive certain feelings.
But Coca Cola thinks in a different way, they believe that RC Cola,
new coming AMRAT Cola, and all juices, even they take water and
tea as their competitors.
STRATEGIES OF QUALITY
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 go higher people go for the substitute of
“coke” i.e. Pepsi.
And when price goes down they think that there is must be some
thing wrong in it.
In short it all depends on customer’s perception.
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There are three major ways of making money
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.
Profit can also get through ethical and unethical ways. They believe
on this quote
“ Every thing is fare in love and war”.
Some profits stays for some time like “over night profits” and some
just come and go like “wind fall profits”. And they can also get profit
through different approaches.
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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
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.
Pepsi’s Brand
Opportunities
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
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STRATEGIES FOR ACHIEVING 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.
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
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Our local marketing strategy enables Coke to listen to all the voices
around the world asking for beverages that span the entire
spectrum of tastes and occasions. What people want in a beverage
is a reflection of who they are, where they live, how they work and
play, and how they relax and recharge. Whether you're a student in
the United States enjoying a refreshing Coca-Cola, a woman in Italy
taking a tea break, a child in Peru asking for a juice drink, or a
couple in Korea buying bottled water after a run together, we're
there for you. We are determined not only to make great drinks, but
also to contribute to communities around the world through our
commitments to education, health, wellness, and diversity. Coke
strives to be a good neighbor, consistently shaping our business
decisions to improve the quality of life in the communities in which
we do business. It's a special thing to have billions of friends around
the world, and we never forget it.
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MARKET POSITIONING
Product Range
Packing
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PRICING STRATEGY
Trade Promotion
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PROMOTION STRATEGIES
Getting shelves
Sale Promotion
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
Direct Selling
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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.
ADVERTISEMENT
Print Media
They often use print media for advertisement. They have a separate
department for print media.
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POS Material
Pos material mean point of sale material this includes: posters and
stickers display in the stores and in different areas.
TV Commercials
And positive feeling felling with the brand, which they used to have
Coke wants to advertise their products heavily in the coming year.
And it will take the 10% of their profits. And when we take it as a
global level it is $ I billion.
Coming year is the challenging year for the industry of Coke. They
have to take lots of decisions that how to increase the production
and where they have to spend money.
For gaining success in coming year they have to have some
important things like:
1. Loyal consumers are important for company’s success.
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2. Workers should be the brand centric not the promotion centric.
3. They should know how much to for the brand activities.
4. They should also know that how much to do with the promotion
activities for brand.
Sales Volume
Coke determines its yearly budget through the sales volume. They
first concentrate on the thing is “what is the condition of their
sales?” if the condition is good of their sales then they definitely
increase their production and sales volume. Otherwise they
concentrate on their old strategies.
Profitability:
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.
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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.
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 Concerts
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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.
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 GO-RED
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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.
In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first
time in Pakistan. Targeting house wives & family home, Coca-Cola’s
1.5 liter Pet bottle, took the limelight & gained momentum with a
campaign promoting the unique packaging and its numerous
consumer benefits .A treat for the family, Coca-Cola’s PET was
offered through a “price-off” promotion that said……….Go out &
get some
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Coca-Cola Ramzan Campaign
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.
Diet Coke
CONCLUSION
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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.
RECOMMENDATIONS
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PEST ANALYSIS OF COCA-COLA
There are four variables, which we will discuss in our report, they
are:
POLITICAL VARIABLES
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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.
ECONOMICAL VARIABLES
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Conclusion Of Economical Analysis
SOCIAL VARIABLES
EDUCATION
ENVIRONMENT
COMMUNITY INVOLVEMENT:
TECHNOLOGICAL VARIABLES
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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.
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CONCLUSION:
So…
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