Professional Documents
Culture Documents
CONTENTS
1. Mission statement
2. Introduction.
3. Coca Cola.
a. Coca Cola International.
b. History.
4. Management.
5. EXTERNAL MARKETING MIX
6. Market share.
7. Financial report.
8. Dividends and Cash Plan.
9. Products.
10. Market mix of Coca-Cola
11. Strategic planning.
12. Bottlers owned by Coca cola
13. Coca Cola Pakistan.
14. Major Competitors
a. Pepsi
b. History.
c. Financial assets.
Market share.
Financial report.
Products.
Methodology
15. Some basic information regarding marketing of coke
a. Target market:
b. Major segments:
c. Factors effecting sales:
d. Major competitors:
e. Strategies of quality:
f. Threats from competitors:
g. Targets that would like to attain:
h. Expanding target market
i. Threats and opportunities for price:
j. Strategies of getting goals i.e. “high profits”:
k. Marketing strategy:
l. Expectations for the coming year:
m. How coke determine the yearly budget:
16. Marketing strategies
17. Pest analysis
1
.
3
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.
5
employees all over the world. It is often referred to simply as
Pop.
6
MANAGEMENT:
The hierarchy of Coca Cola Company is as follows.
Chairman
Board of governors
Vice Presidents
7
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)
(Figure)
12
10
6
unit sale in billions
4
0
1971 1981 1991 2002
10
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.
11
EXTERNAL MARKETING ENVIRONMENT (PEST
ANALYSIS)
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:-
12
restrictions on the ability to transfer capital across
borders.
Economical Analysis
14
Social Analysis for Coca-Cola
16
Technological Analysis for Coca-Cola
17
MARKET SHARE BY AREA:
Coca Cola is the world-renowned soft drink and the
company is currently operating through out the world. The
world wide total is about 17.8 billion.
The operation review according to the segments is as
follows.
Operation Review
18
NORTH AMERICA
LATIN AMERICA
AFRICA
(Table)
19
Country Unit case growth Non- All commercial
alcoholi Beverages
c
Drinks
10 year 5-year compound 2002 annual 2002 2002
compound annual annual growth growth
growth
Compan Industry Compan Industry Compan Industry Compan Compan Company
y y y y share y share per capita
Income
North 4 5 3 3 2 2 22 15 398
America
United 4 5 3 3 2 2 23 16 419
States
Latin 6 7 6 6 3 4 24 15 205
America
Argentin 7 4 6 2 7 2 20 10 236
a
Brazil 5 5 3 6 3 5 23 13 144
Chile 9 6 5 3 (2) 3 56 23 336
Mexico 7 10 8 9 2 5 22 18 462
Europe 6 3 5 3 2 4 12 6 72
& Middle
East
Eurasia 17 8 6 5 (14) 1 14 5 39
France 8 3 9 3 7 3 9 5 110
German 1 2 (1) 1 (6) 1 14 7 193
y
Great 8 2 11 2 8 3 17 6 193
Britain
Italy 1 3 4 3 2 2 9 6 104
Middle 12 12 7 5 4 8 8 3 17
East
Spain 6 4 8 5 4 4 17 12 264
Asia 7 6 6 7 10 7 14 5 23
Africa 7 6 8 3 10 6 34 11 34
21
FINANCIAL REPORT:
This company is financially very strong. It is due to the
strong finances, the company is still surviving the ups and
down of the business world. The financial report of Coca
Cola Company of the year 2001 and 2000 along with the
percentage change is as follows.
(Table)
2010 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.
2010 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.
23
DIVIDEND AND CASH INVESTMENT PLAN:
24
COMPANY STATISTICS:
2010 2009
26
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.
27
The over all volume of this company is as follows.
(Figure)
29
Know the most recognized word on
the planet after “OK”!
32
MARKETING MIX OF COCA-COLA
33
MARKETING MIX OF COCA-COLA
1. Product:
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,
Fanta brand soft drinks,
Sprite,
diet Sprite
Sprite Remix
35
36
Product Lifecycle of Coke:
Product life cycle has four phases
1. Introduction
2. Growth
3. Maturity
4. Decline.
37
COCA-COLA
2. Price:
3. Place:
40
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.
Supermarkets
Convenience Stores
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Fast Food
Petroleum Retailers
Chain Drug Stores
Hotels/Motels/Resorts
Mass Merchandisers
U.S. DOD Military Resale retail commands:
AAFES, NAVRESSO and DECA
Vending
42
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.
43
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.
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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
46
MAJOR COMPETITOR
PEPSI INTERNATIONAL
HISTORY
PepsiCo is a world leader in convenient foods and
beverages, with revenues of about $27 billion and over
143,000 employees. The company consists of the snack
businesses of Frito-Lay North America and Frito-Lay
International; the beverage businesses of Pepsi-Cola North
America, Gatorade/Tropicana North America and PepsiCo
Beverages International; and Quaker Foods North America,
manufacturer and marketer of ready-to-eat cereals and other
food products. PepsiCo brands are available in nearly 200
countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but
the corporation is relatively young. PepsiCo was founded in
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
47
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.
21st century
On February 7, 2005, the Coca-Cola Company announced
that in the second quarter of 2005 they planned to launch a
Diet Coke product sweetened with the artificial sweetener
sucralose, the same sweetener currently used in Pepsi One.
[22][23] On March 21, 2005, it announced another diet
product, Coca-Cola Zero, sweetened partly with a blend of
aspartame and acesulfame potassium.[24] In 2007, Coca-
Cola began to sell a new "healthy soda": Diet Coke with
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vitamins B6, B12, magnesium, niacin, and zinc, marketed as
"Diet Coke Plus."
On July 5, 2005, it was revealed that Coca-Cola would
resume operations in Iraq for the first time since the Arab
League boycotted the company in 1968.[25]
In April 2007, in Canada, the name "Coca-Cola Classic" was
changed back to "Coca-Cola." The word "Classic" was
truncated because "New Coke" was no longer in production,
eliminating the need to differentiate between the two.[26]
The formula remained unchanged.
In January 2009, Coca-Cola stopped printing the word
"Classic" on the labels of 16-ounce bottles sold in parts of
the southeastern United States.[27] The change is part of a
larger strategy to rejuvenate the product's image.[27]
In November 2009, due to a dispute over wholesale prices of
Coca-Cola products, Costco stopped restocking its shelves
with Coke and Diet
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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
51
PROMISE OF COKE
TARGET MARKET
Coke’s commercials basically based on young generations,
So, the young generation is the target market of Coke
because they want to represent Coke with the youth and
energy but they also consider about the old people they take
then as a co-target market.
MAJOR SEGMENTS
Major segments are basically those people who take this
drink daily and those areas where the demands is higher
then the other areas. There are so many people who take
this drink daily and those people who take weekly and those
who take less often are always there as well. So, their basic
segments are those people who take this drink regularly.
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FACTORS EFFECTING SALES
53
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
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
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Pull consumer’s demand.
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MAJOR COMPETITORS
Consumers firstly decide that they are going to have a soft
drink. Then they compete brands with each other. Like they
compete Coke with Pepsi and Sprite with 7up and team .So
the major competitor of Coke is Pepsi.
When they motivate to any other brand or on Coke it’s in
instinct basically that based on messages derive certain
feelings.
But Coca Cola thinks in a different way, they believe that RC
Cola, new coming AMRAT Cola, and all juices, even they
take water and tea as their competitors.
STRATEGIES OF QUALITY
After Micro and macro analysis Brand “coke” is primarily role
1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
Though these strategies there could be better understanding
and better connection with the public. These are the “key
consumption”.
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Over Night Profits
They could be over night profit that is for the number 1 brand
for the year. This could be got my increasing sales volume
Windfall Profit
Can be windfall profit. They are the extras profit. When the
consumption the consumption is on boom. So, there is
different kind of profits.
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.
58
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
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
Pepsi’s brand is basically is basically “ME” branded. They
use the temperament of “ME”. In contrast to Coke they
believe on individual struggle.
59
THREATS AND OPPORTUNITIES FOR PRICE
Opportunities
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STRATEGIES OF GETTING GOALS I.E. “HIGH
PROFITS”
To increase the price is the least thing, which Coke can
adopt. There are so many ways through which Coke can
increase the profits. Some major ways are as follows.
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festival and through this Coke gained high profit and
consumption of coke increased on these occasions.
MARKETING STRATEGY
Our local marketing strategy enables Coke to listen to all the
voices around the world asking for beverages that span the
entire spectrum of tastes and occasions. What people want
in a beverage is a reflection of who they are, where they live,
how they work and play, and how they relax and recharge.
Whether you're a student in the United States enjoying a
refreshing Coca-Cola, a woman in Italy taking a tea break, a
child in Peru asking for a juice drink, or a couple in Korea
buying bottled water after a run together, we're there for you.
We are determined not only to make great drinks, but also to
contribute to communities around the world through our
commitments to education, health, wellness, and diversity.
Coke strives to be a good neighbor, consistently shaping our
business decisions to improve the quality of life in the
communities in which we do business. It's a special thing to
have billions of friends around the world, and we never
forget it.
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MARKET POSITIONING
Product Range
The total range of Coca Cola company in Pakistan includes:
Coke.
Sprite.
Fanta.
Diet Coke.
Packing
Coca cola products are available in different packing
24 regular bottle shell
6 bottle pack for 1.5 pets
12 bottles in a pack for disposable bottle
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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”
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PROMOTION STRATEGIES
Getting shelves
They gets or purchase shelves in big departmental stores
and display their products in that shelves in that style which
show their product more clear and more attractive for the
consumers.
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
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Direct Selling
66
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
Coca cola company use different mediums
Print media
Pos material
Tv commercial
Billboards and holdings
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Print Media
They often use print media for advertisement. They have a
separate department for print media.
POS Material
Pos material mean point of sale material this includes:
posters and stickers display in the stores and in different
areas.
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TV Commercials
As everybody know that TV is a most common entertaining
medium so TV commercials is one of the most attractive way
of doing advertisement. So Coca Cola Company does
regular TV commercials on different channels.
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.
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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.
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Sales Volume
Profitability:
The second thing through which they determines budget is
the “profit” .if they r getting profits with the high margin, then
they definitely want to increase their profits in the next
coming year. Every organization runs on the basis of getting
high profits. No organization wants to face Loss in their
business. To get profit is the first priority of the Coke.
Target Volume:
To run the business every industry has some targets, which
they want to achieve in a specific time period. If industry
achieves those goals in that period then for the coming year
it increases the volume of the target.
So Coke Follow the same thing it has also some goals and
targets to achieve in the given time period. When they
succeed to achieve that target then they increase their target
volume in the next year.
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SALES PROMOTION ACTIVITIES
Coca-Cola Cricket
Cricket the most sought after; watched & played game in
Pakistan .the game of cricket has been owned by various
brands in the industry for the promotion of their products
over a period of time. It has ranged from tobacco to
lubricants to communication companies to banks to airlines
& lately to the beverage industry. The competition has
become tougher & tougher as the time has progressed.
Coca-Cola 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
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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.
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Coca-Cola Basant Festival
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.
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Coca-Cola Ramzan Campaign
Diet Coke
After the acquisition of the individual local franchise bottling
facilities in 1996, the company has successfully launched its
first new product, diet coke, for the first time in almost 3
years. The was linked with three fashion shows as Diet Coke
is related to fashion & fitness, but the major hit was thematic
fashion shows in restaurants, which are the key accounts of
the company as this has been never done before in
Pakistan.
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SWOT ANALYSIS
Strengths:
80
Weaknesses:
Opportunities:
Threats:
82
CONCLUSION
83
RECOMMENDATIONS
POLITICAL VARIABLES
85
And there are some exceptional things like: “environmental
protection laws” they some what effect the industry of
Coke. From last two years Government is going to be really
very much conscious about the environment. But after
making the adjustments in plants and applying the proper
way of wastage the chances of being affected by the
“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.
ECONOMICAL VARIABLES
86
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 production point of view. It
also impacts highly negative in the Coke’s production.
SOCIAL VARIABLES
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of natural resources in
people effected your “save
environment activities.
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
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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:
89
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 announced government taxes rates always shoot
up. This approach of government decreases the profit
margin of Coke.
90
billion of dollars on their advertisement, promotions and
recreational campaign.
91
DATA ANALYSIS
35
30
25
20
15
10
0
yes no
2. Gender
92
20
18
16
14
12
10
8
6
4
2
0
male female
3. Age groups
Age Groups
51 & above
36-50 yrs
20-35 yrs
10-19 yrs
below 10 yrs
0 5 10 15
no. of people
93
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.
no
23%
yes
77%
94
Others
7%
Pepsi
37% Coca-Cola
56%
not bad
0 2 4 6 8 10 12 14
95
The chart represents that a majority of people thought
the Advertisements were good enough & they like what
they see.
expensive
slightly
overpriced
cheap
0 5 10 15 20 25
96
no
0%
yes
100%
everyday
never
0 5 10 15
97
frequently. This shows the brand loyalty of the
customers towards Coca-Cola.
Restaurants
general stores
super markets
0 5 10 15 20
98
CONCLUSION
So…
100
LIMITATIONS
Time Constraints:
difficult to convince the customer in front as summer trainee holds no responsibilities in the eyes
of corporate.
No Customer Interection:ection
Cola Beveragws Private Limited are big organisations, these organisations are situated
101
SUGGESTIONS
have seen that the order for our product is increasing year. It
points:
Cost efficiency:
distribution.
Profit generation:
102
the company. The company should try to work on
Improving technology:
market.
103
Name: __________________________
a) Yes
b) No
2. Gender
a) Male
b) Female
a) Yes
b) No
c) It's not bad
5. What brand would you say is more popular among the public?
d) Coca-Cola
e) Pepsi
f) Other
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a) I really like them
b) They good but nothing special
c) Not bad
d) I don't enjoy them
7. Do you think the price for a can of Coca Cola is cheap or expensive?
a) Cheap
b) Slightly over priced
c) Expensive
8. If you were to see the Coca Cola logo somewhere would you recognize it?
a) Yes
b) No
a) Never
b) Once/few times a year
c) Few times a month
d) Few times a week
e) Everyday
a) Super Markets
b) General stores
c) Restaurants (McDonald's, Subway, KFC etc)
105
ANNEXURE
practices. This annexure has been compiled for the net-savvy reader who would like to surf the net
for information on an aspect that is, in some way, related to matter covered in this project work. This
compilation is meant to be illustrative rather than comprehensive and there might be many other
sources. You must be on the guard as every site listed on the search engines under the title
‘Marketing Strategies Analysis’ may not be related to my project over my study undergone in BPC
Hindustan Coca-Cola Beveragws Private Limited. It may be a site related to general references,
106
BIBLIOGRAPHY
Bibliography refers to the sources through which information has been retrieved in my
project development:
Economic Times
Websites:
www.google.com
www.coca-colaindia.com
www.altavista.com
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