ACKNOWLEDGEMENT

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We owe my gratitude to Allah Almighty whose shower of blessings and kindness has been on me throughout the working on these pages. It is his hidden help that we are finally able to compile this project. I acknowledge with deep gratitude the invaluable support diehard motivation and encouragement extended to me by my respected teacher, Madam SAJIDA NISAR for her indispensable and detailed comments on various aspects coupled with encouragement, which made me come forth with these articles and for her valuable advices, assistance and other involvement throughout every phase of this Psychology project.

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SUBMITTED TO:
Mrs. SAJIDA NISAR, Associate Professor of Marketing Institute Of Business Administration (IBA)

SUBMITTED BY:
Hafiza Faryal Riaz Chatha (021) Murtaza Akmal (037) Usmani (013) Muhammad Hassan Mehmood (051) (016) Sidra Tariq (044) Jalal (047) Saman Nazir (024) Faryal Khalid (030) Sharjeel Qaiser Ayesha Hafeez

BBA (Hons) 3rd Semester

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PROJECT OBJECTIVE.......................................................................................................................................................................9 EXECUTIVE SUMMARY..................................................................................................................................................................10 INTRODUCTION............................................................................................................................................................................11 VISION STATEMENT......................................................................................................................................................................12 MISSION STATEMENT...................................................................................................................................................................13 SHARED VALUES..........................................................................................................................................................................14 OBJECTIVE OF COCA COLA............................................................................................................................................................15 GOALS OF COCA COLA..................................................................................................................................................................15 HISTORY OF COCA COLA...............................................................................................................................................................16 HISTORY OF BOTTLING.................................................................................................................................................................19 COKE HISTORY IN PAKISTAN.........................................................................................................................................................23 DEPARTMENTS OF COCA COLA......................................................................................................................................................24 MARKETING DEPARTMENT...........................................................................................................................................................................................25 PACKAGING DEPARTMENT...........................................................................................................................................................................................25 SALES DEPARTMENT....................................................................................................................................................................................................25 MARKET SHARE OF COCA COLA.....................................................................................................................................................26 MARKET POSITION OF COCA COLA IN PAKISTAN............................................................................................................................29

STRENGTHS: .................32 Single Established Company...............................................................................................................................................................................................32 Working Structure....................................................................................................................................................................................................32 Page | 4 Human Resource......................................................................................................................................................................................................32 Brand Name, Symbol, and Bottle Shape..................................................................................................................................................................33 Superior Product Quality:.........................................................................................................................................................................................33 Diet Coke:................................................................................................................................................................................................................33 Regular Supply.........................................................................................................................................................................................................34 Aggressiveness in the Market..................................................................................................................................................................................34 WEAKNESSES:..............................................................................................................................................................................................................35 Dissatisfaction among Staff.....................................................................................................................................................................................35 Motivational Factors.................................................................................................................................................................................................35 Centralized Decision Making....................................................................................................................................................................................35 Less Availability.......................................................................................................................................................................................................36 Lack of Promotion....................................................................................................................................................................................................36 Manual Paper Work..................................................................................................................................................................................................36 Lack Of Coordination................................................................................................................................................................................................36 OPPORTUNITIES:..................................................................................................................................................................................................................38 New Markets............................................................................................................................................................................................................38 THREATS:.........................................................................................................................................................................................................................39 Fake Products..........................................................................................................................................................................................................39 Competitors Schemes.............................................................................................................................................................................................39 POTENTIAL THREAT:.............................................................................................................................................................................................................40 New Entrants:..........................................................................................................................................................................................................40 Nestle Products:.......................................................................................................................................................................................................40 Taxes (Govt.Laws and Policies):...............................................................................................................................................................................40 MARKET ANALYSIS.......................................................................................................................................................................41 INTERNAL BUSINESS ENVIRONMENT:...........................................................................................................................................................................41 EXTERNAL BUSINESS ENVIRONMENT:..........................................................................................................................................................................41 COMPETITION:.............................................................................................................................................................................................................42 POLITICAL/LEGAL FACTORS:.........................................................................................................................................................................................42

SOCIAL AND CULTURAL FACTORS:. 42 PERSONAL FACTORS:...................................................................................................................................................................................................43 PSYCHOLOGICAL FACTOR S:........................................................................................................................................................................................44 Page | 5 OTHER FACTORS:.........................................................................................................................................................................................................44 INDUSTRY ANALYSIS....................................................................................................................................................................45 COMPETITOR ANALYSIS................................................................................................................................................................46 BUYERS/CUSTOMERS:..................................................................................................................................................................................................46 SUBSTITUTES:..............................................................................................................................................................................................................47 RIVALS/COMPETITORS:.................................................................................................................................................................47 DIRECT COMPETITORS:................................................................................................................................................................................................47 INDIRECT COMPETITOR S:............................................................................................................................................................................................49 SUPPLIERS:..................................................................................................................................................................................................................49 NEW ENTRANTS:..........................................................................................................................................................................................................50 COMPETITIVE ADVANTAGES..........................................................................................................................................................51 BRAND NAME, SYMBOL, BOTTLE SHAPE:.....................................................................................................................................................................51 DIET COKE:..................................................................................................................................................................................................................51 SNATCHING AWAY CUSTOMERS:..................................................................................................................................................................................51 CUSTOMER ANALYSIS...................................................................................................................................................................53 PRODUCT:...................................................................................................................................................................................54 INGREDIENTS OF COCACOLA:......................................................................................................................................................................................55 PRODUCT OBJECTIVE:..................................................................................................................................................................................................56 PRODUCT LIFE CYCLE OF COCA COLA:.........................................................................................................................................................................58 Introduction Stage Of Coca Cola:.............................................................................................................................................................................60 Growth Stage of Coca Cola......................................................................................................................................................................................60 Maturity Stage of Coca Cola.....................................................................................................................................................................................61 Decline Stage...........................................................................................................................................................................................................61 OFFERINGS:.................................................................................................................................................................................................................62

THE COCA-COLA COMPANY OFFERS NEARLY 400 BRANDS IN OVER 200 COUNTRIES..............................................................................................................................................................................................64 PACKAGING:.................................................................................................................................................................................................................66 Page | 6 LEVELS OF COKE AS A PRODUCT:................................................................................................................................................................................67 Core Product:....................................................................................................................................................................................................67 Actual Product:..................................................................................................................................................................................................67 PRODUCT CLASSIFICATION:.........................................................................................................................................................................................68 LABELING:................................................................................................................................................................................................................68 BRANDING:...............................................................................................................................................................................................................68 BRAND PORTFOLIO......................................................................................................................................................................71 PRODUCT LINE DECISIONS:..........................................................................................................................................................................................73 Product Line Length:.........................................................................................................................................................................................73 Product line filling:............................................................................................................................................................................................73 INTRODUCTION TO BCG MATRIX....................................................................................................................................................74 POSITION OF COCA-COLA............................................................................................................................................................................................77 POSITION OF SPRITE....................................................................................................................................................................................................78 POSITION OF FANTA.....................................................................................................................................................................................................79 INTRODUCTION TO PRODUCT / MARKET EXPANSION GRID:..................................................................................................................................................................80 CPRODUCT/MARKET EXPANSION GRID FOR COCA COLA:....................................................................................................................................................................82 MARKET PENETRATION................................................................................................................................................................................................83 MARKET DEVELOPMENT...............................................................................................................................................................................................83 DIVERSIFICATION STRATEGY........................................................................................................................................................................................84 PRICE..........................................................................................................................................................................................85 OBJECTIVE........................................................................................................................................................................................................................85 STRATEGY.........................................................................................................................................................................................................................85 COCA COLA PRICING STRATEGY................................................................................................................................................................................................85 PLACE.........................................................................................................................................................................................88 OBJECTIVE:.......................................................................................................................................................................................................................88 STRATEGY:........................................................................................................................................................................................................................88

AVAILABILITY:. 88 DISTRIBUTION: 89 DISTRIBUTION CHANNELS............................................................................................................................................................................................89 DIRECT SELLING.......................................................................................................................................................................................................89 Page | 7 INDIRECT SELLING....................................................................................................................................................................................................89 FACILITATING THE PRODUCT BY INFRASTRUCTURE.....................................................................................................................................................90 PROMOTION................................................................................................................................................................................92 DEFINITION:......................................................................................................................................................................................................................92 TYPES OF PROMOTION:..........................................................................................................................................................................................................92 Above the line promotion:.................................................................................................................................................................................92 Below the line promotion:.................................................................................................................................................................................92 PROMOTIONAL MIX:.............................................................................................................................................................................................................92 ADVERTISEMENT OF COCA COLA:...............................................................................................................................................................................................93 ADVERTISEMENT OBJECTIVE........................................................................................................................................................................................93 HISTORY OF ADVERTISING COCA COLA:.........................................................................................................................................................................................94 FIRST ADVERTISEMENT FOR MUSLIMS:..........................................................................................................................................................................................94 ADVERTISING IN 2000S:......................................................................................................................................................................................................95 SLOGANS:....................................................................................................................................................................................................................97 PUBLICITY....................................................................................................................................................................................................................99 Print Media...............................................................................................................................................................................................................99 Pos Material.............................................................................................................................................................................................................99 TV Commercials.......................................................................................................................................................................................................99 PROMOTION STRATEGIES...........................................................................................................................................................................................100 Getting shelves......................................................................................................................................................................................................100 Eye Catching Position.............................................................................................................................................................................................100 Sales Promotion.....................................................................................................................................................................................................100 UTC Scheme...........................................................................................................................................................................................................100 PRIZE SCHEMES:...............................................................................................................................................................................................................101 PRIZE CUTS FROM TIME TO TIME..............................................................................................................................................................................................101 ENDORSEMENT:.........................................................................................................................................................................................................102 IN PROMOTION AND OF ADVERTISING, A TESTIMONIAL OR ENDORSEMENT CONSISTS OF A WRITTEN OR SPOKEN STATEMENT, SOMETIMES FROM A PERSON FIGURE, SOMETIMES FROM A PRIVATE CITIZEN, EXTOLLING THE VIRTUE OF SOME PRODUCT...................................................................................................................................................................................102 CELEBRITY ENDORSEMENT:...................................................................................................................................................................................102

WHY COMPANIES NEED TO ENDORSE:...........................................................................................................................................................................102 CELEBRITY ENDORSERS FOR COKE:.......................................................................................................................................................................103 Page | 8 SPONSORSHIP:..................................................................................................................................................................................................................105 PROMOTIONAL CAMPAIGNS OF COKE:.......................................................................................................................................................................106 Concerts and charity programs:.............................................................................................................................................................................106 Cricket players for promotion:................................................................................................................................................................................106 Coke Cricket Junoon:..............................................................................................................................................................................................107 COKE STUDIO:............................................................................................................................................................................................................109 CONCLUSION.............................................................................................................................................................................114 RECOMMENDATIONS..................................................................................................................................................................115

RECOMMENDATIONS

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PROJECT OBJECTIVE

The objective of this project is to give an overview of Marketing Strategy of Coca Cola to provide a broad selection of the nonalcoholic ready to drink beverages to potential consumers in Pakistan. Analysis carried out on nonalcoholic ready to drink beverages market in terms of size and growth, covering different segments present in the market. It includes introduction of the company and the product, internal and external environment, market and competitor analysis, and marketing mix.

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EXECUTIVE SUMMARY
The scope of the project is to discuss the marketing strategies adopted and applied byCoca Cola, Pakistan. Coca-Cola is a type of carbonated soft drink sold in stores, restaurants and vending machines in more than 200 countries. The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite are the brands with whom Coca-Cola is operating in Pakistan. From the last month or so our group is in the process of a continuous research on marketing functions and strategies adopted by Coca Cola. These marketing functions mainly include the marketing mix i-e, Product Strategy, Pricing Strategy, Pricing Tools and Strategies and Placement and Distribution Strategies as well as other market strategies. Moreover the project also discusses the analysis of competition, market growth and trend, opportunity analysis and strategies for creating competitive advantage adopted by Coca Cola. We concluded that the marketing strategy of Coca Cola is working for them and the product is gaining popularity among youth day by day. We will like to add that the project will provide the readers very high profile information about the marketing strategies as a whole and also about the Coca Cola Company.

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INTRODUCTION
Founded in 1886, the coca-cola company is the worlds leading manufacturer, marketer, and distributor of non alcoholic beverage concentrates and syrups. The companys corporate head quarters are in Atlanta , with local operations in over 200 countries around the world. Although Coca-Cola was first created in the United States, it quickly became popular wherever it went. Our first international bottling plants opened in 1960 in Canada, Cuba and Panama, soon followed by many more. Today Coca-cola has a portfolio of more than 3,000 beverages. Coca-cola has 92,400 employees worldwide. More than 70 percentage of our income come from outside U.S., but the real reason we are truly global company is that our product meet the varied taste preferences of consumers everywhere.

VISION STATEMENT
Our vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable growth. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

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MISSION STATEMENT
Mission statement is a statement of organizations purposes that what it wants to accomplish. In order to achieve mission of increasing market share and maintaining good relations with our customers all over the world, we wish to create value for all the constraints we serve, including our consumers, our bottlers, and our communities. The Coca Cola Company creates value by executing business strategy guided by four key beliefs: Customer is king; Customer demand drives everything we do. Brand Coca Cola is the core of our business. We will serve consumers a broad selection of the nonalcoholic ready-to-drink beverages they want to drink throughout the day. We will be the best marketers in the world. Everything we do is inspired by our enduring Mission: To Refresh the World...in body, mind, and spirit. To Inspire Moments of Optimism...through our brands and our actions. To Create Value and Make a Difference...everywhere we engage.

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SHARED VALUES
Our values serve as a compass for our actions and describe how we behave in the world. Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well

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OBJECTIVE OF COCA COLA

The company has sales based objective. Everything else (marketing plan, advertising plan, production etc.) is derived from this objective. Currently the companys objective is to Increase the volume of sales up to the maximum level as much as possible during the current fiscal year. The company sets its objective keeping in view the past performance, Historical trends, current market position, economic condition, macro environment and micro environment factors, social values, market size and growth rate ,future expectations and predictions.

GOALS OF COCA COLA

All CCBPL plants setup their own goal to achieve the objective. The company goal is

CONTINUE DEVELOPING PRODUCTS FORTIFIED WITH ADDITIONAL NUTRIENTS TO MEET CONSUMER NEEDS

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HISTORY OF COCA COLA

Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever CocaCola is enjoyed. Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and penned Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested that the two Cs would look well in advertising. The first newspaper ad for Coca- Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand-painted oil cloth signs reading CocaCola appeared on store awnings, with the suggestions Drink added to inform passersby

that new

the
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beverage was for soda fountain refreshment. By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark Coca-Cola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893. The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Companys incorporation, Mr. Asa G. Candler announced in his annual report to share owners that Coca-

Cola now

is
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drunk in every state and territory in the U.S. As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.

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HISTORY OF BOTTLING
Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the worldfamous brand it is today. 1894 A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca- Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. 1899 The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle CocaCola across most of the United States (specifically excluding Vicksburg) -for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. 1900-1909 Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family owned businesses. Some were open only during hot-weather months when demand was high. 1916 Birth of the contour bottle Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark! 1920s Bottling overtakes fountain sales

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As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

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1920s and 30s International expansion Led by longtime Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. 1940s Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. 1950s Packaging innovations For the first time, consumers had choices of Coca- Cola package size and type -- the traditional 6.5- ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960.

1960s New brands introduced Following Fanta in the 1950s, Sprite, Minute Maid, Fresca and TaB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by POWERADE and DASANI in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world.
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and 80s Consolidation to serve customers As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 1990s New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century .. The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.

1970s

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COKE HISTORY IN PAKISTAN

To provide Coca-Cola at arms length The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite are the brands with whom Coca Cola is operating 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, Rahim Yar Khan, Multan and Lahore. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan has nearly 3,000 people working constantly for the company. During the last two years, The Coca-Cola Company in Pakistan has invested over $130 million (U.S) and coke has successfully provided 56 years of dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firm has been continuously changing its slogans and thats a very creative idea to get the attention of the customers.

DEPARTMENTS OF COCA COLA

Every organization is made up of different departments, each of these departments help Coca Cola achieve their objectives. As Coca Cola is a large multinational company, the amounts of departments are huge. Each country has their own Head Office and departments. Coca Cola is geographically split into five geographic operating segments, also known as strategic business units (SBU's). The six SBU's are North America, Africa, Asia, Europe, Middle East and finally Latin America. If all departments perform in the correct way then that will continue the success of Coca Cola. There are 6 functional departments within Coca Cola, but we mainly focus on: Marketing Packaging Sales

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MARKETING DEPARTMENT
The Coca Cola marketing department develops core strategies for company brands to ensure that all communication is consistent in every market. With this cohesive effort, the Coca- Cola system maximizes its resources for market leadership and profitable growth. The marketing departments are responsible for marketing the products and advertising the products and promoting the products. If all these departments perform their duty firmly then the objectives of the Coca-Cola Company will meets.

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PACKAGING DEPARTMENT
The packaging department of Coca-Cola Company is responsible for the packaging of the products. They have to make the packaging attractive so that that product meets the eyes of the consumers. Bringing new products package is their responsibility. It works with the companies bottling partners to produce an attractive combination.

SALES DEPARTMENT
The sales department of the Coca Cola Company is to coordinate the selling program. They also have to make the distribution methods, etc.

Also, decide how much to sell and how much to store in the warehouse and to choose the transporting method which is the most cost efficient and the quickest way.

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MARKET SHARE OF COCA COLA

Coca Cola is now one of the largest corporations in the world, with a global workforce of over 90,000 and revenues of $31.9 billion in revenues in 2008. Over the years, the brand equity of the Coca-Cola trademark, as well as that of other Coca Cola-produced brands, has established Coca Cola as a prominent figure in the non-alcoholic beverage industry and allowed the company to keep both revenues and profits high.

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Sales and Income Data in Millions 2005 2006 007 2 2008 2009
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Net Sales

$21,742

$23,104 4,088

$2 28,857

$31,944

Net Income (Profits)

$4,847

$4,872

$5,0 80

$5 ,981

$5,807

Units sold in Billions

19.8

20.6

21.4 7

22.

23.7

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Quarterly Earnings: 1Q2010 in the first quarter of 2009, the Coca-Cola Company posted revenues of $7.169 billion, a 3% decrease from 1Q 2009 figures; net income fell 10% to $1,348 billion. Although sales volumes actually rose 7% during the quarter, the Coca-Cola Company was negatively impacted by the dollar's strengthening against the euro, Brazilian real, Mexican peso, and South African rand. 2Q2010: In the second quarter of 2009, the Coca-Cola Company posted revenues of $8.267 billion, an 8.6% decrease from 2Q2009 figures; net income grew 43% to $2.037 billion. Although the company managed to grow worldwide case volume by 4% (with especially important increase of 33% in India and 14% in China), adverse fluctuations in the foreign exchange caused the decrease in revenue. On a currency neutral basis, revenues grew by 4% during 2Q2010, as pricing remained constant during the year. The growth in net income is deceptively large, as the 2008 figure includes an $843 million, or $0.40 per share, charge due to changes in the company's accounting policy of its equity investments in its bottlers. Ignoring this charge, net income would've fallen by 12%.

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MARKET POSITION OF COCA COLA IN PAKISTAN

On global level Coca-Cola is the most popular brand and market leader controlling 60% of market share. In Pakistan Coca Cola is the market follower but still in a very strong and stable position holding 36% of the local market with a growing and increasing market share every year.

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Strengths Internal -Single established company -Working structure -Human Resource -ProperTime Delivery -Brand name -Superior Product Quality -Diet Coke -Regular supply -Aggressiveness in the Market Threats -changing healthconsciousness -Attitude -legal issues -Health ministers -competition (Pepsi)

Weaknesses -Dissatisfaction among staff -Motivational factor -Centralized decision making -Less availability -Lack of Promotion - Manual Paper work -Lack of coordination

Opportunities -Fake products -Competitors scheme -New entrants -More Brand recognition

External

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STRENGTHS:
Single Established Company.
The biggest strength of Coca-Cola is that unlike other beverages, it has established itself as a single large company CCBPL with 10 plants in all major cities running directly under supervision of Coca-Cola international. So unlike to bottler system there is no conflict of decisions and policy. One policy adopted is for al plants throughout the country. Similarly one decision taken (e.g. price cuts+Rs.2/-) is implemented effectively and immediately in all plants all over Pakistan without argument. So you will find same prices, same quality, same schemes in all cities.

Working Structure.
CocaColas organizational structure is of International standards, hence there are clear cut and well defined policies, procedures rules and regulations that have to be followed under all circumstances, hence working style is highly professional, and discipline is maintained.

Human Resource.
The biggest strength of Coca-Cola is its Intellectual brain power of highly professional qualified and dedicated employees who put in all their efforts to satisfy their customers by providing the ultimate best of Coke.
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The fixed time of delivery of Coke to retailers, shopkeepers etc punctuality is maintained which gives Coke an edge over all its competitors

Brand Name, Symbol, and Bottle Shape.

These all are Cokes strengths which give it an edge over its competitors. Coca-Cola bottle shape is so unique and stylish than even if the name is rubbed off people will still easily identify that its Coca-Cola bottle. Same is the case with its symbol and name which cannot be imitated and are so well known. The most known and spoken word in world after OK is COKE.

Superior Product Quality:

Coca-Cola Company management never compromise on quality even if they have to spend a little extra in production. Bottle caps are one example. Examine and you will find that Coca-Cola brand caps (especially on liter bottles) and disposable bottles are superior in quality than those of others beverages). Quality in taste as well as bottle and caps and gifts

which are offered doesnt vary from city to city but is same throughout the company.

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Diet Coke:
Coca-Colas strength is that they are market leaders who successfully launched .Diet Coke to cater the needs of overweight and health conscious people and have been popular to a certain extent, their closest competitor also followed and launched their own diet beverages brand, but it never proved to be up to the mark and failed

Regular Supply
The regular supply of the products is strength of the company. The products are regularly supplied to the dealers through proficient means of delivering and distribution has given Coca-Cola Pakistan an added advantage. Coke trucks supply the products regularly and always have the desired products for the dealers.

Aggressiveness in the Market

Its marketing strategy is very aggressive which aids it in further and incessant production and distribution of its products. It gives trade offers to its dealers for storing more and more coke products and the signage strategies and agglomeration of all the marketing strategies proves that it has a very aggressive marketing strategy. This will help Coca-Cola Pakistan in strengthening its integrity in the market.

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WEAKNESSES:
Dissatisfaction among Staff
One of the major weaknesses as in majority of companies is the lack of co-ordination between the management and the worker. In short there is a weak point in their Human Resource management. Workers feel that they are being exploited and are not given the remuneration that they deserve. The management fault is that they think that the worker is indefatigable and can work tirelessly. The tough schedule results into limited rest for them and there are no holidays.

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Motivational Factors
The employees lack motivation simply because of the huge communication gap between them and the management. Thus grievances reign high for they feel that their problems and recommendations are not being aired the top management. The workers expect to be adequately satisfied in terms of their salary and compensations

Centralized Decision Making

The decision making process in the company is highly centralized and the workers feel that there exists no proper authority existing in the firm. The salesmen feel dissatisfied for they are totally powerless to make any decisions themselves. In dealing with their buyers they

have not the slightest authority to allow them any credit or discount.

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Less Availability
The product is not available to the extent that it should be. If Coca-Cola wants to make an impact in the market they will have to do more than they are doing at the present moment.

Lack of Promotion
Promotional activities have been greatly neglected in many areas. In an interview with the route officer and a few salesmen it was clear that for areas such as Nazimabad and Liaquatabad no heed has been paid both to the singe and promotional activities. This indeed results in a high degree of difficulty for coke in penetrating the market.

Manual Paper Work

The huge amount paper work takes a lot of time, which could be effectively channeled to other important activities. The salesmen have to do a lot of clerical work i.e. he has to fill a lot of forms (call slips, route riding forms, cash memos, clearing bills etc.) at the shops and also after arriving back at the factory. At the same time the management also complains that the paper work leads to a lot of pilferage by the employees. All such activities cause an overall great reduction in productivity.

Lack Of Coordination
In the factory there is a co-ordination lag between the activities of the marketing, sales and repairing departments. The sales department complains that the marketing department does not pay any heed to their problems. The sales department also complains that the repair of the visicoolers is always delayed. Until or unless Coca-Cola restructures its co-coordinating activities the availability of its product would be always delayed.
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Opportunities:
New Markets
We know that Coke came to Pakistan in 1996 and since it is working hard to develop its market. We think that Coca-Cola can secure new dealers and buyers of its product as still large part of the country is still devoid of its products. It can promote its products in the younger generation by targeting the new outlets being opened due to improved law & order situation and a growing population. Coke currently holds about 36% market share in Pakistan. Pepsi leads by holding 54% of market share 10% to other small beverages .e.g. RC- cola, Maka-Cola, Pak-Cola etc. So there is vast opportunity for Coke to capture 70% market share.i.e.54% of Pepsi 10% of others. and

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Coca-Cola with International standards can increase its market share many folds with little efforts.Increasing distributing channels and infrastructure to ensure availability in small towns and areas. Line extension like Fanta , Coke, and Sprite in different flavors. Launch a new product it can do it successfully as its is well established, Company and has already positioned itself in customers mind (as those who provide the ultimate in taste and quality)

so are bound to try their new product as well.

they
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Threats:
Fake Products
Fake beverages by the name of coke are being supplied by unknown people. Such activities really hamper the companys name and its brand originality. Above all the fake beverages supplied are almost similar to the taste of the original Coke brand and not everyone can decipher the difference between the original and the fake product. This is in fact a great threat to Coca-Cola for unworthy people is taking advantage of its brand name and spoiling its good name in the market.

Competitors Schemes
For the purpose of promoting its product, Coca-Colas competitors have been doing much more than Coke itself is doing. For example Pepsis signage operations have been very successful. In addition to this Pepsi is also giving very liberal credit policies to its dealers, which gives the dealers a greater incentive to buy Pepsi rather than Coke.

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Potential Threat:
New Entrants:
New entrants like Maka-Cola, Pak Cola that can exploit anti Jewish and anti war sentiments, provoke nationalism sell at low price and thus can be a source of threat for Coke in future once they fully launch their product in Pakistani market so Coke management has to look out for them over time.

Nestle Products:
Like juices, Milo cold coffee, drinks, etc as well as Shezan products e.g. squashes, tetra pack juices are also sort of threat but not the direct threat for Coke because they provoke health consciousness and physical fitness .Although Coke has converted their attack on health issues by offering Diet Coke yet the threat isnt over .However CocaCola can effectively counter their threat at any time by launching their own juice.

Taxes (Govt.Laws and Policies):

The Coca-Cola management is not happy with the Govt. tax laws and policies. Being a multinational with whole plants in 10 cities it is under heavy tax .Imposition so much so that on single bottle revenue. It has to pay as much as Rs2.97/- as tax to the government. With the consequent result that Coca-Cola is the first beverage and 2nd highest tax paying

company in Pakistan. It pays 33% on its total revenues.

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MARKET ANALYSIS
The market analysis investigates both the internal and external business environment. It is vital that Coca cola carefully monitor both the internal and external aspects regarding its business as both the internal and external environment and their respective influences will be decisive traits in relation to Cokes success and survival in the soft drink industry.

INTERNAL BUSINESS ENVIRONMENT:

The internal business environment and its influence is that which is to some extent within the businesss control. The main attributes in the internal environment include efficiency in the production process, through management skills and effective communication channels. To effectively control and monitor the internal business environment, Coke must conduct continual appraisals of the businesss operations and readily act upon any factors, which cause inefficiencies in any phase of the production and consumer process.

EXTERNAL BUSINESS ENVIRONMENT:

The External business environment and its influences are usually powerful forces that can affect a whole industry and, in fact, a whole economy. Changes in the external environment will create opportunities or threats in the market place Coca cola must be aware off. Fluctuations in the economy, changing customer attitudes and values, and demographic patterns heavily influence the success of Coke products on the market and the reception they receive from the consumers.

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COMPETITION:
All over world there are two soft drink giants, Coke and Pepsi. The competition between two companies has always been neck to neck. Both these companies keep on trying to take lead in terms of pricing, packaging, promoting and placing. In Pakistan recently a few other beverages are also introduced such as Mecca-Cola, Shandy Cola and Amrat -Cola but currently these soft drinks are not a threat for coke due to their very low market share and secondly due to brand loyalty of customers for coke.

POLITICAL/LEGAL FACTORS:
These are uncertainties that are extremely variable in the political conditions of Pakistan. Constant political instability does affect the company in terms of building new relations with new Governments all the time.

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SOCIAL AND CULTURAL FACTORS:

The company has to be very careful in the implementation of its promotional campaigns, since the social cultural environment of Pakistan is very conservative and any suggestive advertisements usually face a lot of negative reactions on the part of the consumer. SOCIAL FACTORS: Social factors include consumers family, small groups and status. CULTURAL FACTORS: Every group and society has its own culture. Cultural factors affect coke purchasing massively. Different communities and groups of people have reshaped Pakistans culture. In recent years the Bahar/ Basant festival in Punjab specially become important part of our culture in which sales of coke go very high. Soft drink is purchased in bulk for the parties and other occasions.

PERSONAL FACTORS:
Buyers decision is also influenced by personal characteristics such as buyers age and life cycle stage, occupation, personality and self-concept. Age and lifecycle stage means that people taste and way of living changes with passage of time. Lets say in earlier stage of life if a persons best choice for soft drink was Coke classic but as he proceeds with his life, way of thinking and style may change. He may not opt for classic coke anymore and might be more interested in diet coke. Occupation matters a lot when consumer is indulge in buying. If consumer is a student by occupation he will certainly go for returnable bottle of or may be disposable bottle of 25 RS but most probably not for the coke CAN which is high in price. Where as if the consumer is a business executive who is financially strong will prefer more the coke classic can or diet coke can. This change is mainly because of occupation.

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PSYCHOLOGICAL FACTOR S:
A persons buying behavior is further influenced by major psychological factors such as motivation, perception, learning and self benefits. If a person is highly satisfied with the taste of diet coke, he may share his experience with another person and as a result the latter person might get motivated by his opinion and end up buying diet coke

OTHER FACTORS:
Other factors like the Government rules, regulations and technological advancements have had no significant effect on the product and the company.
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INDUSTRY ANALYSIS
POPULATION: CHILDREN: ADULTS: CHILDREN EQUITY: ADULT EQUITY: TOTAL TARGET MARKET: 176,242,949 37.2% (65,607,612) 62.8% (110,680,572) 60% (14,643,619) 40% (27,802,960) 42,446,579

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COMPETITOR ANALYSIS
BUYERS/CUSTOMERS:
Coca-Cola has three major and large customers in the market, KFC 60,000cerates /year, MacDonalds 40,000 cerates/year and Pakistan Railways who buy 50,000cerates /year. However, these three customers being large and powerful are in an influential and bargaining position they can demand discount or others facilities like (boards sign/freezers/coolers etc.) and impose a threat to switch to their closest rival and competitor Pepsi.

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SUBSTITUTES:
Nestle products like juices, coffee, mineral water etc. and Shezan juices are substitutes of Coke for health conscious people and other fresh juices.

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RIVALS/COMPETITORS:
There are two types of Rivals Competitors.

DIRECT COMPETITORS:
The direct competitor of Coca-Cola is Pepsi and that of CCBPL is PCI (Pepsi cola international) there is always ongoing tuff competition between these two arch rivals with Pepsi leading with 54% market share and Coke gradually growing and catching up 36% market share in Pakistan. However on global level the situation is reverse. Both companies often engage in price cut wars, prize scheme wars and sponsorship wars to win over each other customers.

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INDIRECT COMPETITOR S:
These include Nestle and Shezan juices who do not pose a threat to Coke as yet but has the potential to do so as it is exploiting the natural aspect and health issues more and more to make people conscious about physical fitness Coke has launched Diet Coke to counter the physical fitness demands.

SUPPLIERS:
Coca-Cola has authorized suppliers and which do not pose a threat to it. Anyhow Coke does have a quality check procedures in its plants to ensure that they get the right kind of ingredients from suppliers. For example: If market has low quality carets of bottles by chance, they call their sales mangers to lift up all the stock from the market then inquired from the quality inspector. They take strict notice of that and do not take materials from that company again if that default is due to the ingredient contained by it.

NEW ENTRANTS:
Coca-Cola is not afraid of competing .It doesnt fear losing its share to Mecca-Cola or other new entrants. The company management believes that new entrants provoke healthy competition, which will provide Coke with a challenge to hold on to its loyal customers.

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Besides it will take a lot of effort on the part of new

entrants like Mecca- Cola, Pak-cola to fully launch its product in Pakistan and capture or even motivate people to switch on to their new product from Coke.

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COMPETITIVE ADVANTAGES
BRAND NAME, SYMBOL, BOTTLE SHAPE:
Brand name, symbol and bottle shape are distinctive features of CocaCola which give it an edge over its competitors. (Even without name people can easily identify Cokes, fantas, and sprites bottle from crowd.) They cannot be copied or imitated by others.

DIET COKE:
Coca-Cola has successfully addressed to the needs of its health conscious overweight customers with the launch of diet Coke. Its competitor has yet to come up with and counter diet Coke properly.

SNATCHING AWAY CUSTOMERS:

In the market Coke has been able to snatch large customers like KFC, Pakistan Railways, McDonalds, as well as Sponsorship events (Basant, Eid, concerts etc.) from Pepsi mainly due to its superiority in the following areas.

Cost: It is very economical, justifies performance Quality: No quality compromise, get the best all over Pakistan at any cost. Innovation: new ideas for billboards design, sponsorship, changing their slogans time to time, according to the needs of the market. Speed: On time delivery in all over the Pakistan.
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CUSTOMER ANALYSIS
The Coca Cola Company exists to satisfy the consumers needs. The Coca Cola Company has over 400 brands of drinks designed to satisfy a very wide range of consumers. They are able to provide drinks for many different target markets including, people of all ages, sexes, races, etc. Coca-Cola products are able to sell to a diverse worldwide population and its success is unmatched. In todays society, people are looking to lead better, healthier lives, Coca Cola seeing this trend has begun to produce, diet drinks that have the same great taste as their regular drinks while still being low fat or low calorie drinks, such as diet coke, or coke zero. Coca Cola products are purchased by all the different classes, but mainly by the middle and high-class citizens, because they have more money to spend on luxury items. Coca Cola is a very successful company; due to their success they are able to spend more money making their factories work more efficiently. They can do this by updating the equipment used to produce their drinks.

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PRODUCT:
Coca-Cola the worlds most popular beverages .The popularity of Coke is to such an extent that The most known and spoken word in world after OK is COKE Coca Cola customers are buying a wide range of soft drinks:

INGREDIENTS OF COCACOLA:
Carbonated Water. Sugar. Colour (Caramel E150d). Phosphoric Acid. Natural Flavourings (it's a coke secret). Flavouring (Caffeine) The product which is non returnable glass bottle containing the 250 mille litters of coke liquid. It is a superior quality product.

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PRODUCT OBJECTIVE:
As non returnable glass bottle is already a superior quality product so we will be trying to maintain the over all quality. Coca Colas aims and objectives are to ensure a top quality product for their consumers, and to be the best in their market. They ensure this by using high quality products.

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PRODUCT LIFE CYCLE OF COCA COLA:

Product Life Cycle (PLC) is used to map the lifespan of a product. There are generally four stages in the life of the product.

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These Four stages are: Introduction Stage Growth Stage Maturity Stage Decline Stage

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The Following Graph Illustrate the four stages of the PLC.

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Introduction Stage Of Coca Cola:

In the Introduction stage, Coca Cola was launched and initially promoted. Efforts were made for creating its awareness in the market, inducing trial of the product and securing space in the outlet shelf. When their costs were high, sales volume were low, and there was no existing demand for Coca Cola in this stage.

Growth Stage of Coca Cola

In the growth stage Coca Cola experienced rapid increase in sales volume and its Competition began to increase. People got more awareness about Coca Cola and the increase in the competition leads it to decrease prices. In this stage the marketing strategies used by Coca Cola were as follows:

Product improvement New models were developed It entered new market segments

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Maturity Stage of Coca Cola

Coca Cola is in the Maturity stage from years now. The marginal costs of Coca Cola are low in this stage, sales volume is at the peak and most of the market is covered. There is increase in competitors which are entering in the market. Coca Colas brand differentiation and features Diversification is emphasized to maintain and increase market share.

Decline Stage
This is the stage in which sales of the product begin to fall. Either everyone that wants to, has bought the product or new, more innovative products have been created that replaces that product. The only way to increase sales during this period is to cut the cost of the product.

OFFERINGS:

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The actual product is the parts and features, which deliver the core product. Consumers will buy the coke product because of the high standards and high quality of the Coca Cola products. And its marketing like piyas hai to rukna kiya

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The Coca-Cola Company offers nearly 400 brands in over 200 countries
Diet Coke (introduced in 1982), which uses aspartame, a synthetic phenylalanine-based artificial sweetener in place of sugar Diet Coke Caffeine-Free Cherry Coke (1985) Diet Cherry Coke (1986) Coke with Lemon (2001) Diet Coke with Lemon (2001) Vanilla Coke (2002) Diet Vanilla Coke (2002) Coca-Cola C2 (2004) Coke with Lime (2004) Aquarius Mineral Water (2004) Diet Coke with Lime (2004) Diet Coke Sweetened with Splenda (2005) Coca-Cola Zero (2005) Coca-Cola Black Cherry Vanilla (2006) Diet Coca-Cola Black Cherry Vanilla (2006) Coca-Cola BlK (2006)

 Diet Coke Plus (2007)

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PACKAGING:
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 24 cans in one packet. "We have made a commitment to ensure the sustainability -- and recyclability -- of our packaging," said Sandy Douglas, president, Coca-Cola North America. "We envision a world in which our packaging is no longer seen as waste, but as a valuable resource for future use." Because of its attractive packaging it is creating instant consumer recognition of company.

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LEVELS OF COKE AS A PRODUCT:

Core Product:
Core benefit is that it fulfills the thirst.
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Actual Product:
Design: Pet bottles, returnable glass bottles, economy packs. Quality: Quality differs with respect to the country e.g. Coca cola Can quality that is available in middle east is certainly different as compared to Coke Can available in Pakistan.

PRODUCT CLASSIFICATION:
Coke is categorized as a convenience product, because the purchasing rate is very high and this is the product that is bought very frequently.

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LABELING:
In 2005, Coca-Cola North America introduced labeling that provides consumers with nutrition information for a standard eight-ounce serving as well as for the total of a single-serve package," said the company in a statement.

BRANDING:
Brand Equity: As far as coke is concerned brand equity for the customers is very high. People are highly brand loyal.

 Brand Strategy: The following is the brand strategy of Coke Line Extension. Brand Extension. Multi-Branding. Diversification.

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Line Extension: Line extension occurs when a company introduces additional items in a given product category under the same brand name e.g. if Coke introduces new flavors and package size, it will be considered as line extension. Brand Extension: Brand extension means using a successful brand name lets say Coca-Cola and then launching new product e.g. Cherry Coke. This was an example of brand extension. Multi-Branding: It means introducing additional brands in same category e.g. Coca-Cola not only introduced Coke as brand but also Sprite and Fanta. Diversification: It means introducing new product with new brand name.

BRAND
Name Coca-Cola Coca-Cola Cherry Launche Discontinue Notes d d 1886

PORTFOLIO Pictur e

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1985

Still available in: Coca-Cola Vanilla 2002 2005 Austria, Australia, China, Germany, Hong Kong, South Africa, New Zealand (600ml and 350ml only) and Russia It was reintroduced in June of 2007 by popular demand

2007

Coca-Cola C2

2004

2007

Was only available in Japan, Canada, and the United States.

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Coca-Cola Raspberry

June 2005

End of 2005 Was only available in New Zealand.

Coca-Cola Black 2006 Cherry Vanilla

Middle of 2007

Was replaced by Vanilla Coke in June of 2007

Coca-Cola Citra Coca-Cola Orange

2006 2007

Only available in Federation of Bosnia and Herzegovina, New Zealand and Japan. Only available in United Kingdom

PRODUCT LINE DECISIONS:

Product Line Length:
It means number of products the company is offering e.g. COKE, DIET COKE, FANTA, SPRITE etc.

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Soft drinks Energy drinks Juice drinks: Sport drinks

6 5 5 4

Product Mix Width: 5

Product Mix Length: 24

Product line filling:

Product line filling means that earlier when Coca-Cola started it had only one flavor of Coke available and that is classic coke but with the passage of time, company filled the product line by adding DIET COKE, DIET LEMON etc.

INTRODUCTION TO BCG MATRIX

BCG Matrix i.e. Growth-Share Matrix is also known as Boston Box, Boston Matrix, Boston Consulting Group analysis. Created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis. The BCG matrix is based on the product life cycle theory that can be used to determine what priorities should be given to a business unit. This can be explaining with the help of following FOUR fictitious business symbols.

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STARS: Stars are high growth business competing in market where they are relatively strong compared with the competition. They have a high point shares and are the ideal businesses. CASH: - Cash cows are low-growth business with a relatively high point shares. These businesses were stars but now have lost their attractiveness. QUESTION MARK: - Question marks are businesses with low point share but which may have a high growth rate. This suggests that they have potential but may require huge ever, a competing force extraordinary effort in order to grow point share. DOGS: - The term dog refers to businesses that have low relative share and low expected growth rate. Dogs may generate enough points to sustain but they are rarely, if ever, a competing force.

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NOW ONE BY ONE POSITION OF EVERY PRODUCT OF COCA-COLA WILL BE KNOWN WITH THE HELP OF BCG MATRIX.

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POSITION OF COCA-COLA

POSITION OF SPRITE

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POSITION OF FANTA

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Introduction to Product / Market Expansion Grid:

Ian Ansoff has proposed a useful framework called the product/market expansion grid for detecting new intensive growth opportunities. There are four strategies, one for each of the quadrants: Market Penetration Strategy when the product is in the current market, it can still grow. There are three major approaches to increasing current product's market share: 1. Encourage current customers to buy more. 2. Attract competitor's customers. 3. Convince non-users to use the product. Market-Development Strategy when the current product is launched in a new market, there are three approaches to develop the market: 1. Expand distribution channels. 2. Sell in new locations. 3. Identify the potential users. Product-Development Strategy When a new product is launched in the current market, the intensive growth strategies could be to: 1. Develop new features. 2. Develop different quality levels.

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3. Improve the technology.

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Diversification When a new product is launched in a new market, diversification makes good sense as better opportunities are found outside the present business. The diversification strategies are of three types: 1. Concentric Diversification Strategy: Develop new products with the earlier technology for new segments 2. Conglomerate Diversification Strategy: Develop new products for new markets. 3. Horizontal Diversification Strategy: Develop new products with new technology for old customers.

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cProdu ct/Mark et

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Expansion grid For Coca Cola:

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MARKET PENETRATION
Market Penetration is the strategy, which every company has to opt when it reaches a maximum height of growth. Coca Cola in Pakistan is doing market penetration through the selling its products to the business buyer, who are huge multinational organizations like McDonalds, Subway, Dunkin Donuts and many more. They are also keeping the local market in focus. Fri Chicks, AFC, PFC are examples of the buyers in the local market. They are selling the Coca Cola as the only beverage in their restaurants.

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MARKET DEVELOPMENT
Market Development is exploring new markets for the products you are already selling. Many flavors of Coca Cola are not being sold in Pakistan. Coca Cola can develop a new market if they introduce those flavours in Pakistan. Many people in Pakistan want a change in the beverage industry, as they are having the same flavors from many years. A company takes a risk when it does Product Development, there is a chance that it loses its customers or there will be a crowd of people demanding their product. Coca Cola Company can do product development by introducing the new flavours in Pakistan which are not sold anywhere in the world by the coke company. The company has to put large effort in that, as it has to conduct all market research & feasibilities for it. But there is also an opportunity for them as they know the market of Pakistan, that what the people here can afford & what taste they want.

DIVERSIFICATION STRATEGY
Diversification strategy is one which every company really wants to practice. There are lots of chances of growth but the risk factor is also there. The company can manufacture products, which are not manufactured by it before. Coca Cola is only dealing in beverages but it can also manufacture its own snacks item as the company name is known almost all over the world. So it can cash the name by producing the items, which are eaten with the beverages.

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Price
Objective
The research we have conducted for this project reveals that the price is not an issue for our target market, so we do not go for any changes but we shall definitely try to deliver a superior customer value to our customers at the existing price.

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Strategy
We shall go for the current existing price, without increasing or decreasing it i.e. Rs.18. The product shall be designed in such an effective way that it delivers the consumers a superior value than competitors products.

Coca Cola Pricing Strategy

Like any company who has successfully endured a century of existence, Coca Cola has had to remain tremendously fluent with their pricing strategy. They have had the privilege of a worthy competitor constantly driving them to be smarter, faster, and better. A quote from Pepsi Co's CEO "The more successful they are, the sharper we have to be. If the Coca Cola company didn't exist, we'd pray for someone to invent them." taken from Roger Enrico's "The Other Guy Blinked and Other Dispatches from the Cola Wars

The Other Guy Blinked and Other Dispatches from the Cola Wars" 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.

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This low price strategy was not unfamiliar to Coca Cola. As referenced in the HBR article, Cola Wars Continue: Coke & Pepsi in the Twenty-First Century, both bottlers utilized a low price

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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.

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Place
Objective:
We want to make our product available at different key points like; Schools, universities, airports, railway stations, cinema halls, entertainment parks, high ways, small and large stores, and suburbs of the cities.

Strategy:
We will redesign the distribution network and make it more efficient so that it could reach to those areas where there is demand for this product. We will be using push strategy for this product so that it could penetrate the market and cater the potential consumers by giving more incentives and margins to retailers.

Availability:
Coke is available in all main as well as posh and backward areas in big cities and available in posh areas of small cities to some extent. It is also available in all restaurants and hotels, colleges, universities, hospitals etc.

Distribution:
The place P of the marketing mix refers to distribution of the product- the ways of getting the product to the market. The distribution of products starts with the producer and ends with the consumer. One key element of the Place/Distribution aspect is the respective distribution channels that Coca Cola has elected to transport and sells its product.

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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.

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FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure these includes: Vizi cooler Freezers Display racks Free empty bottles and shells for bottles

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Promotion

Definition:
It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision.

Types of Promotion:
The following are two types of Promotion:

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Above the line promotion: Promotion in the media (e.g. TV, radio,
newspapers, Internet, Mobile Phones, and, historically, illustrated songs) in which the advertiser pays an advertising agency to place the ad Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows

Promotional Mix:
The specification of five elements creates a promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each.

 A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.
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Advertisement of Coca cola:

The field of advertisement is one area where Coca-Cola has always emphasized. In year 2000 Coca-Cola unveiled the biggest advertising billboards in the history of Pakistan. Each unveiling was marked by entertainment and light shows watched by thousands of people. Similarly in July 2000 Coca-Cola launched its first under the crown promotion by the name of Dream Vacations in which the consumers could collect caps of promotional bottles of CocaCola like Sprite, Fanta and Coke.

ADVERTISEMENT OBJECTIVE
Type of advertising with respect to product life cycle that Coca-Cola adopts is reminder type. The reason behind this fact is that coke is such a product that is at the maturity level currently so for such a product companies mostly go for reminder type of advertisement so that they can penetrate more and more and same is the case with Coke.

History of advertising coca cola:

All of the communications of coca cola are planned and blended into carefully integrated marketing communication programs. The first television ad created for The Coca-Cola Company was produced in conjunction with a television special featuring Edgar Bergen and Charlie McCarthy on Thanksgiving Day, 1950. Throughout the 1960s, advertising for Coca-Cola on both radio and television reflected the changing forces in society. The "Things Go Better with Coke" campaign was adapted to the youth market by allowing a number of popular-music artists to modify and perform the song. Radio commercials were also recorded by the Supremes, Jay and the Americans, the Moody Blues, Jan and Dean, Roy Orbison, Petula Clark, and (on both television and radio) Ray Charles.

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First advertisement for Muslims:

On the international front, The Coca-Cola Company launched a television commercial in 1998 for the Muslim fasting month of Ramadan.

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Advertising in 2000s:
In 2000s coke has targeted youth in all their advertisements. Their ads have been youth oriented since then. Other than this the company has promoted a message of togetherness through its advertisements. The company has used the slogans like COKE SIDE OF LIFE , GIVE,LIVE,LOVE and OPEN HAPPINESS to promote a message of peace. Moreover it has used some innovative animations and ideas to promote their product. For example the series of advertisements featuring polar bears and penguins which were onaired in 2007-2008 gained immense popularity. Besides that coke advertisements featuring Santa Clause had been all time favorite of audiences when asked. Now -a-days the coke advertisement which is immensely popular shows that for coke their customers happiness and satisfaction is the most important.

Coca cola television ads primarily build and maintain coca cola brand relationship rather than informing or persuading customers to buy in short run. Coca cola has built sophisticated statistical models to determine the relationship between promotional spending and brand sales and to help determine the optimal investment across various media. To test the effects of different advertising spending levels, coca cola could vary the amount it spends on advertising in different market areas and measures the differences in the resulting sales and profit levels. More complex experiments could be designed to include other variables such as differences in ads or media used. Coca cola has a pool of different commercials that can be used in or adapted to several different international markets. Some can be used with only minor changessuch as languagein several different countries. Local and regional managers decide which commercials work best for which markets. Coca-Cola has a policy of avoiding using children younger than the age of 12 in any of its advertising. This decision was made as a result of a lawsuit from the beginning of the 20th century that alleged that Coke's caffeine content was dangerous to children. However, in recent times, this has not stopped the company from targeting young consumers.

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SLOGANS: The Coca-Cola Company has had many catchy slogans over the years that they used in their advertising campaigns. These slogans were used on signs, trays and calendars on other forms of promotion of their product I'd like to buy the world a Coke. Coke adds life. Things go better with coke Have a Coke and a smile Coke is it! Drink cocacola Be really refreshed Always Coca-Cola. Enjoy. How about a coke. Where there is coke there is hospitality. Coke ... after Coke ... after Coke

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Life tastes good. Thirst know no reason The Coke Side of Life Live on the Coke Side of Life Thanda matlab coca cola Pio sar utha kay Khaley peelay jeelay cocacola BRRRRR Twist the cap to refrehment Open Happiness COKE KHULE BAAT CHALI Jo chaho ho jaycoca cola enjoy Coke adds life Smile... coke adds life
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PUBLICITY
Coca Cola Company use different mediums Print media Pos material TV commercials 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.

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

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

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Eye Catching Position

Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores.

Sales Promotion
Company also do sponsorships with different college and schools 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.

Prize schemes:
Coca-Cola glasses. Bicycles. TV (16, 21.28)
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Prize cuts from time to time.

Ramadan offer. Eid offer. Buy one get one free. Anniversary offer. Independence Day offered.

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ENDORSEMENT:
In promotion and of advertising, a testimonial or endorsement consists of a written or spoken statement, sometimes from a person figure, sometimes from a private citizen, extolling the virtue of some product.

CELEBRITY ENDORSEMENT:
Celebrities are people who enjoy specific public recognition by large number of people. They have some characteristic attributes like attractiveness, extraordinary lifestyles or special skills not commonly observed. Companies rope in celebrities because they have a stopping power and can influence the audiences in a better way.

WHY COMPANIES NEED TO ENDORSE:

There are large numbers of brands available in market. In the world of ever-increasing advertisement bombardments everyday consumers are exposed to thousands of voices and images. Because of constant media saturation people become numb to understand marketing techniques. The challenge of marketer is to find a hook that will hold the subjects attention. And that hook is a celebrity endorser. The charisma of celebrities always entices people and their words are worshipped by people.

CELEBRITY ENDORSERS FOR COKE:

Coke has roped in the most famous celebrities like Amir Khan, Aishwariya Rai, Vivek Oberoi, Sonam Kapoor and Imran Khan and sportspersons like Sachin Tendulkar to endorse coke. Coke has roped in the celebrities who are recognized and loved worldwide. Coke has firmly established the THANDA position in minds of customers with, Amir Khan playing the perfect role. Recently coke has struck a three year deal with Sachin Tendulkar who is the very famous among cricket lovers all over the world.

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Sponsorship: Sports Cricket matches, Olympics and FIFA. Coca-Cola was the first commercial sponsor of the Olympic games, at the 1928 games in Amsterdam, and has been an Olympics sponsor ever since. The Coca-Cola Company is one of the longest-standing corporate partners of FIFA, with a formal association since 1974 and an official sponsorship of FIFA World Cup that began in 1978. Coca-Cola has had stadium advertising at every FIFA World Cup since 1950. In 2010, Coca-Cola is activating a world-wide campaign in support of its sponsorship of the 2010 FIFA World Cup. The campaign is an extension of the current Coca-Cola brand platform Open Happiness and invites fans to express their optimism and passion for football through active dance celebrations. Events Basant festivals, spring festivals

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Concerts. Coke live music festival Artists albums Abrar-ul-Haq and Junoon Coca cola made its presence felt in music industry by sponsoring albums of Abrar-ulHaq and Junoon in 1990s who were most famous singers of that decade. The goal of coke was to build brand equity through stars.

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PROMOTIONAL CAMPAIGNS OF COKE:

Concerts and charity programs:
The Coca-Cola Company sponsors Pakistani leading pop group and organizes concerts and charity shows throughout the country for teen ages and underprivileged children.

Cricket players for promotion:

The company has signed a sponsorship agreement with eight of Pakistans national cricket players for promotional and advertising use.

Coke Cricket Junoon:

Cokes latest campaign Coke Cricket Junoon is all about celebrating the passion and love that we as a nation feel for cricket. In Pakistan mostly everyone is a Cricket Junooni by birth, and this is a celebration of crazy cricket fans, without which the game is nothing! The highlight of cricket matches is not just the score board or stars, but the fans who are the real heroes of the game. Since the world cup matches will not be played in Pakistan, Coke has shown its spirited point of view in life and found a way for the whole nation to be with the team to support them. A Cricket Junoon Movement launched today at the Forman Christian University lawns, featured purpose-built booths where fans recorded brief messages and posed for pictures. The photos were printed and framed for each participant at the event. Coke Cricket Junoon booths are also going to be installed in major cities and a Junooni float lead by Mr. Abdul Jalil, fondly known by cricket fans the world over as Chacha Cricket, will travel around the country as well. Fans can go to those Junoon booths and have their pictures taken At FCU, on Friday, students flocked to the booths with great zeal. Ali Mumtaz a student commented, I think its a great initiative to provide cricket fans an outlet to express their passion for the game in such an innovative manner. I am overwhelmed by Chacha crickets patriotism and intense enthusiasm for the game. Agya bhee Agya, chacha cricket agya!! The nationwide Junoonis personalized goodwill messages, will be put together to compose a huge photo mosaic flag. A select fan army lead by Chacha Cricket will carry the flag to Sri
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Lanka to be unveiled at Pakistans first match, and will be the unprecedented representation of sport loving Pakistani fans.

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COKE STUDIO:
Coke Studio is a Pakistani television series featuring live music performances. The program focuses on a fusion of the diverse musical influences in Pakistan, including eastern classical, folk, and contemporary popular music. The show provides a platform for renowned as well as upcoming and less mainstream artists, from various genres and regions, to collaborate musically in live studio recording session Season One premiered on June 8, 2008 and included a live audience. Season Two premiered on June 14, 2009 without a live audience, eliminating the associated background noise and providing a more intimate atmosphere. Season Three premiered on June 6, 2010. Coke Studio has been popular, receiving critical acclaim and frequently being rebroadcasted on television and radio in Pakistan. The official Face book page of coke studio has more than 400,000 fans. Coke Studio is produced by Rohail Hyatt, of Vital Signs (band) fame, and his wife Umber Hyatt. Featured artists on each episode are backed by a house band and guest artists. Coke studio featured live performances of Atif aslam ,Zeb and Haniya, Amanat Ali, Arif Lohar, Misha Shafi, Rahat Fateh Ali Khan, Ali Zafar, Strings, Abida Parveen to name a few.

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CONCLUSION

We have concluded from this detailed report that despite the fact Coca Cola currently occupies the market leadership position overall but it does not guarantee that the company will sustain its position in the future as well. In Pakistan as compared to Pepsi, Coca-Cola has less number of consumers as Pepsis market share in Pakistan is approximately 54% where as Coke market share is hovering about 36%, hence the conclusion is that Coca-Cola must enhance factors such as relationship marketing, innovation and technology especially in Pakistan to attain market leader position in this region as well.

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RECOMMENDATIONS
After completing our project we have come up with following recommendations for the Coca Cola Company, which are following. Currently in Pakistan there are only two flavor of Coke available, company can extend their portfolio by introducing new flavors. According to the survey, conducted by the international firm Pakistani people like less sweet cola drink. So for this Coca-Cola Company should think about bringing a new product for example new diet flavors, in the market to fulfill the local need. Marketing team should try to increase the availability of Coke in rural areas. Coca Cola Company should think about producing Coke Can locally as well because currently coke Cans are only smuggled from abroad and sold at high price. Company can capitalize on this factor.

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