Date: To: From: Subject: We are given pleasure to transmit this report, “Strategic Analysis” under the unprejudiced conclusions of International Marketing Course, during summer semester (4th) 2004 of MBIT program, IBIT department, University of the Punjab. We have arranged our superlative efforts in originating this undertaking. We enormously enjoyed it. Working on this task was exceptionally erudite for us.

Group Members



Institute of Information & Technology, University Of The Punjab, Lahore.

We are thankful to the ALLAH ALMIGHTY, by the assistance of HIM, we have accomplished our Task. We would like to thank all of the people who directly or indirectly helped us to achieve this Target. Special Thanks to: •
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Mr. Amjad Rasool Alvi Mr. Fasial Hashmi Mr. Matloob Mr. Rana Imran Mr. Sahil This Report fabricates its foundation on numerous discussions among the panel (Group Members). Our conspirator’s encouraging ideas and strengthening of our thoughts are reflected in this comprehensive Report. All the stuff regarding this report has been explained marvelously and carefully. This write up is being demonstrated in easy mode which is understandable by the reader. It will provide the intramural and threshold aura to read and it will cover all the requisites and proviso about the topic under discussion. One of the aesthetic and charming characteristics of this speculation is this, that it is easygoing and genial.

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Institute of Information & Technology, University Of The Punjab, Lahore.

The vibrant capability of Marketing Department in Coca-Cola career planning has been highly accentuate. This department has been acknowledged as the means through which the swift industrialization and other progressing goals of the association can be conquered. This report delves into the role of International Marketing for the promotion of organization, role of other departments in this process, internal & external support of different institution department in this process. The verdict about Coca-Cola’s marketing department process may facilitate policy makers, employment agencies, organization to ascertain and over and above existing cooperation’s the genteel maneuver to improve the overall performance of the company, not only in Pakistan but also in all parts of the world.


Institute of Information & Technology, University Of The Punjab, Lahore.

Aspect about international marketing has been pile up by means of primary sources by interviewing marketing executive, in the production unit & Head Office, Visiting to office of Human Resource managers in Lahore. Human Resource administrator in Head Office was the part of that information collecting activity. Secondary information has been congregated through different marketing books, internet sites of Coca-Cola Company, articles and generals related to advertisement and promotion. Our foremost endeavor was to compile and evaluate all relevant information with reference to marketing strategies in the host country (Pakistan) and to judge against this information with standard set by international marketers.


Institute of Information & Technology, University Of The Punjab, Lahore.

Lahore. .TABLE OF CONTENTS Executive Summary Introduction Brands The Coca-Cola Story New Coke to Present Coca-Cola IN Pakistan Community Involvement Marketing Involvement Uncontrollable Elements Methods of Doing Business Customer Market SWOT Analysis Post 9/11 Effects IPR PEST Analysis BCG Matrix EPRG Model Product Life Cycle Duties & Taxes Applied Strategies to Reduce Political Vulnerability Cultural Borrowing Problems Recommendation Bibliography Appendix 06 07 08 09 10 12 14 14 15 17 18 19 22 22 24 27 28 29 30 31 32 34 36 40 41 5 Institute of Information & Technology. University Of The Punjab.

By applying international marketing concepts the company can acquire multinational status with a reputed brands and the company is globally recognized for the quality and standard. The competitive allege for marketing department are infinite. Lahore. And their aim is to serve the nation by making only non-alcoholic drinks and to give the world a cool and fresh treat. Coca-cola’s headquarter is in USA and there are more than 200 countries in which it is acting as a host company. containing promotions and strategies that make possible for them to survive in persistently varying environment (Such as technology) of world. In Pakistan there are 9 plants and over 1800 employees.EXECUTIVE SUMMARY Role of Marketing Department in the improvement process continues to be at the vanguard of strategy contest not only in this part of the world (Pakistan) but also in other countries. 8 plants are functional and three plants in Lahore. Most of the specifics about promoting brands have been renowned in the entire world. . University Of The Punjab. 6 Institute of Information & Technology. Gujranwala and Rahimyar Khan have achieved the Quality system award. Coca-cola with its 450 brands is claiming to be the world’s best nonalcoholic beverage maker and is yet proving his claim by having 63% share in the world market and they are fulfilling their promise to maintain a standard and proving to become a quality symbol.

it is widely accepted as the most dominant soft drink in the world today. Originally intended as a patent medicine when it was invented in the late 19th century. It is one of the world’s most recognizable and widely sold commercial brands. or the "life-threatening" effects of its carbonated water but still it is the most in-style soft drink. It is produced by The Coca-Cola Company. . Although Coke has been the target of urban legends decrying the drink for its supposedly copious amounts of “acid”. Coca-Cola was bought out by shrewd businessman Asa Griggs Candler. whose aggressive marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century. Coke's major rival is Pepsi. Lahore. CocaCola has remained a popular soft drink well into the first decade of the 21st century. which is also occasionally referred to as Coca-Cola or Coke. 7 Institute of Information & Technology. University Of The Punjab. restaurants and vending machines in over two hundred countries.INTRODUCTION Coca-Cola (also known as Coke) is a popular carbonated soft drink sold in stores. About its safety and the ethics of the company that produces it. Although faced with accusations of perverse side-effects on the health of consumers and monopolistic practices by its producing company.

Diet Coke. . University Of The Punjab. Qoo. Sprite and Fresca . Dasani and Bonaqua .BRANDS Globally.Water products Such as Ciel. the Coca-Cola Company owns or licenses nearly 450 brands in the nonalcoholic beverage business.Coffee Such as Georgia coffee. Some of these include: . Many of those brands are considered among the worlds most valuable. the best-selling noncarbonated beverage in Japan.Juices and juice drinks Such as Minute Maid.Teas Such as Sokenbicha and Marocha . Fruitopia. 8 Institute of Information & Technology. Fanta. Lahore.Carbonated soft drinks Such as Coca-Cola.Sports drinks Such as POWERade and Aquarius . Maaza and Bibo .

Pemberton then ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. It was re-launched as a soft drink to counter Prohibition.THE COCA-COLA STORY Coca-Cola was invented by John S. very different from the much later hobble-skirt design that is now so familiar. Coca-Cola was sold in bottles for the first time on March 12. Its proprietor was Joseph A. the loosely-termed contract proved to be problematic for the company for decades to come. originally as a coca-wine called Pemberton's French Wine Coca. However. The popularity of the drink exploded in the wake of World War II as American soldiers returned home. 1894 and cans of Coke first appeared in 1955. Legal matters were not helped by the decision of the bottlers to subcontract to other companies — in effect. 9 Institute of Information & Technology. Biedenharn. The first sales were made at Jacob's Pharmacy in Atlanta. University Of The Punjab. as a patriotic drink. It was initially sold as a patent medicine for five cents a glass at soda fountains. The original bottles were Biedenharn bottles. Mississippi at the Biedenharn Candy Company in 1891. Georgia. By the time of its 50th anniversary. Coke was provided free to American soldiers. becoming parent bottlers. 1886. Pemberton in 1886 in Columbus. The first bottling of Coca-Cola occurred in Vicksburg. and for the first eight months only thirteen drinks were sold each day. When the United States entered World War II. Lahore. more grateful than ever to partake of a beverage that had become synonymous with the American way of life. Asa Candler was tentative about bottling the drink. Asa Griggs Candler bought out Pemberton and his partners in 1887 and began aggressively marketing the product — the efficacy of this concerted advertising campaign would not be realized until much later. Georgia on May 8. . which were popular in America at the time thanks to a belief that carbonated water was good for the health. but the two entrepreneurs who proposed the idea were so persuasive that Candler signed a contract giving them control of the procedure. the drink had reached the status of a national symbol.

Lahore. 1985. University Of The Punjab. as the reformulated drink was called. Follow-up taste tests revealed that most consumers preferred the taste of New Coke to both Coke and Pepsi. from Seattle. founded the Old Coke Drinkers of America organization. Some authorities believe that New Coke. was invented specifically to respond to its commercial competitor. less orange oil. amid much publicity. Pepsi. who could speak only in monosyllables. The new Coca-Cola formula subsequently caused a public backlash. and uses vanillin rather than vanilla) to Coke. some compared changing the Coke formula to rewriting the American Constitution. Coca-Cola management was unprepared. This and other protests caused the company to return to the old formula under the name Coca-Cola Classic on July 10. for the nostalgic sentiments the drink aroused in the American public. The company president responded to the accusation by declaring: "We are not that stupid. USA.NEW COKE TO THE PRESENT In 1985. as the two men were alone when the matter was discussed. which attempted to sue the company. others have pointed out that. Double-blind taste tests indicated that most consumers preferred the taste of Pepsi (which has more lemon oil. and lobbied for the formula of Old Coke to be released into the public domain. Goizueta claims that Woodruff endorsed it a few months before his death in 1985. It has also been alleged that Woodruff might not have been able to understand what Goizueta was telling him. New Coke was reformulated in a way that emulated Pepsi. . and the President Don Keough." 10 Institute of Information & Technology. Roberto Goizueta. Coca-Cola. Woodruff played in the reformulation. Washington. or that smart. Gay Mullins. attempted to change the formula of the drink. The company was later accused of performing this volte-face as an elaborate reuse to introduce a new product while reviving interest in the original. however. Goizueta might have misinterpreted the wishes of the dying Woodruff. The commercial failure of New Coke therefore came as a grievous blow to the management of the Coca-Cola Corporation. The reformulation was led by the then-CEO of the company. It is unclear what part long-time company president Robert W.

the market share for New Coke had dwindled to only 3% by 1986. University Of The Punjab.S. When New Coke was introduced in 1985. since New Coke used vanillin. . the economy of Madagascar crashed — vanilla being a prime export — and recovered only after New Coke flopped.The Coca-Cola Company is the world's largest consumer of natural vanilla extract. Lahore. Purchases of vanilla more than halved during this period. it was sold in only a few places in the Midwestern U. However. 11 Institute of Information & Technology. a less-expensive synthetic substitute. The company renamed the product "Coke II" in 1992 (not to be confused with "Coke C2". a reduced-sugar cola launched by Coca-Cola in 2004). By 1998. Meanwhile. sales falloff caused a severe cutback in distribution.

. Lahore. University Of The Punjab.COCA-COLA IN PAKISTAN 12 Institute of Information & Technology.

The remaining two plants. Oehlert Junior. Fanta®. The CCBPL plants are in Karachi. are in Rawalpindi and Peshawar. The Coca-Cola in Pakistan serves 70. Hyderabad. independently owned. Rahimyar Khan. The beverages are produced locally. Gujrawala. Benjamin H. In Pakistan it has invested over $130 million (U. Lahore. and they are deeply involved in the life of the local communities in which they operate History The Coca-Cola Company began operating in Pakistan in 1953.800 people. . employing Pakistani citizens. Multan and Sialkot. Employment/Economic Impact In Pakistan it employs 1. 13 Institute of Information & Technology. former senior vice president of The Coca-Cola Company. University Of The Punjab. Lahore. out of these twelve plants now eight are operating.). Brands Coca-Cola®. And their product range and marketing reflects Pakistani tastes and lifestyles. the Coca-Cola business in Pakistan has completed its 50 years of operation. 10 of which are owned by Coca-Cola Beverages Pakistan Limited.S.Introduction The Coca-Cola Company is a global company with some of the world's most widely recognized brands.000 customers retail outlets. Faisalabad. served as United States Ambassador to Pakistan from 1967 to 1969. Sprite® Bottling Information The Coca-Cola System in Pakistan operates through twelve bottlers.

who will participate in concerts and charity events organized by The Coca-Cola Company in Pakistan. Also the 4P’s are made according to the demographics and taste of the people of the host country. The Company has signed a sponsorship agreement with eight of Pakistan's national cricket players for promotional and advertising use.The brands and basic strategies are made in the home country but the local strategies are defined in the host countries. Lahore. And it is indulged in the international marketing . The Coca-Cola System in Pakistan is the exclusive supplier for Pakistan Railways. It sponsors Pakistan's No. The Coca-Cola System initiated a famine-relief program to help victims and was the first private-sector company to assist. 1 solo artist. Uncontrollable Elements 14 Institute of Information & Technology. It initiated a voluntary Haj program that allows one employee from each plant. The brands are produced locally. Sponsorships The Coca-Cola Company sponsors the Basant Festival in Lahore. Part of the festival is the Coca-Cola Kite Flying Championship. In Pakistan the Coca-Cola Company maps the strategies and the brands by looking into the environment in which it is working. University Of The Punjab. serving soft drinks in stations. And the product. The Company sponsors Pakistan's leading pop group and organizes concerts throughout the country for teenagers and underprivileged children. when Eastern Pakistan suffered its worst droughts. price promotion and placement are planned with respect to the controllable variables and uncontrollable variables. platforms and on trains. Marketing Involvement Coca-Cola Corporation is a multinational organization. selected through a draw. a festival that marks the beginning of spring and attracts visitors from all over the world.Community Involvement In 2000. to be sent on the Holy Pilgrimage to Mecca at the Company's expense. . The Company will be undertaking a beautification program of stations and platforms.

government controls. They track the previous record of the ruling party and policies. Although this is the most difficult task to understand the culture of the host country but business has to do reasonable care to understand this problem. They also keep in mind the attitude of other opposition parties about foreign companies. Legal And Political Problems They perform thorough study of legal and political problems to decide to enter into any country. prices. Social And Cultural Factors Social and Cultural factors have a very vital impact on the business in the host country. As we see that coke has 400 brands allover the world but in Pakistan we have only 4 brands and in India which is a market of 1. These problems are different in all the countries in which business starts its operations. channel of distribution available. they don’t sacrifice their policies and secrecies. So business has to design a separate framework for each country to overcome these problems. it come across some of the problems which are beyond the control of business .Whenever any business start operating in two or more than two countries. economic conditions of the host country. If any problem arises regarding political or legal issues. weather. promotion and customer service according to the culture of the country. They design their products. Lahore. . geography & infrastructure.1 billion people coke has 15 15 Institute of Information & Technology. they have a vast experience of controlling these elements. like legal restraints. Coke performs research to understand these issues and design their strategies accordingly. as we have a case of COKE AND INDIAN GOVERNMENT. place. consumer behavior. Coke is one of the oldest companies which are in international business. They heavily rely on research to overcome these problems. social and cultural factors. level of technology and competitive forces. When Indian Government asked to have formula for the concentrate and they deny and left the huge Indian market. University Of The Punjab.

which is continuously improving to facilitate distribution system. it also studies the geography and infrastructure of the host country. Coke Combat this problem with their quality commitment and continuously providing its customers with quality product. services and entertainment. 16 Institute of Information & Technology. Economic factors Different counties have different economic conditions at a time so Coke designs different strategies to handle these conditions.brands. They decide the channel of distribution. Geography & Infrastructure If any business wants to start its business in any other country. University Of The Punjab. In host countries they change their prices. That is if feasible for doing business or not. investment and penetration strategies to overcome economic factors. In Pakistan Coke found a reasonable infrastructure to do business. Competitive Forces Whenever any business enters into any other country they face competition with some local and international brands. This is because of cultural differences that they cannot introduce all the brands in all the countries. As Coke is one of the largest businesses in the world. modes of transportation and there cost to make decisions regarding prices and designing strategies. Lahore. they have a strong financial background to overcome these economic problems. .

they are behaviors encountered in international business. University Of The Punjab. tempo. and there is considerable latitude in the ways business is conducted. As its business grows and professional management develops.Methods of Doing Business Diverse structure. • Target Market: Upper upper class Upper middle class Upper lower class 17 Institute of Information & Technology. but the concept of committee management implies some thing quite different from individualized functioning. which could deal with of the customer. communications emphasis. Coca-Cola Company had taken into the consideration these facts that a certain amount of cultural shock occurs when differences in contract level. Coca Cola Company is doing its business allover the world they hire locals wherever they do business and take their suggestions in designing their strategies. Coca Cola Company determines the prominence of status and position (PDI) combine to influence the authority structure of business. o o o . branding and other related features which could enhance its efficiency of sales and promotion. Committee may operate on a centralized or decentralized basis. their is shift towards decentralized management decision management. also they could take the suggestion of his customers about its taste. Lahore. and formality of foreign business are encountered. Ethical standards are likely to be different as well as negotiation emphasis. Because company is very much well aware of the fact that local know their social culture very well and help company to design effective and efficient strategies. and behavior encounter in international business. management attitude. It adopts low (PDI) value that they could take the suggestion of his employees to make a right decision at a right time. They are making their decisions either in committees or meeting.

. That is why it continues to be a familiar and trusted household name in Pakistan. Lahore. Today. Diet Coca-Cola offered by Company is Very popular among diabetic patients. Coca-Cola’s lives up to its well earned reputation as market leader by insuring that consumers get the best carbonating drink.o o o Middle upper class Middle middle class Middle lower class They mainly emphasize on students and teenagers. The best of nature. CUSTOMER MARKET Demographic Factors People of all ages and gender use Coca-Cola.a standard now recognized internationally. they gain their attraction by indulging into the activities like: Becoming a partner at the Basant Promoting new age music and hiring pop stars into their promotion Compaign. Educated people belonging to upper and middle-income groups also commonly use Coca-Cola. Life Style Pattern The Taste and quality conscious people Drink Coca-Cola brands especially Coca-Cola. University Of The Punjab. the entire process is overseen by a professional management and trained workforce. Major emphasis of Coca-Cola is to attract teenagers. technology and human resource have together contributed to Coca-Cola’s reputation for unparalleled quality. Preference for Specific Benefits For over 51 years Coca-Cola Corporation has maintained a tradition of producing only the Quality drinking beverages. Above all. 18 Institute of Information & Technology.

University Of The Punjab. Lahore. .SWOT ANALYSIS 19 Institute of Information & Technology.

hats. as it was the first to introduced soft drink. Being addicted to Coca-Cola also is a health problem. and this is an image many people have taken deeply to heart. and collectible memorabilia. WEAKNESSES Although domestic businesses as well as many international markets are thriving. There are 8 plants working in Peshawar. and Multan. University Of The Punjab. Gujrawala. These big plants have employed more than 1800 employees. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Raheem Yar khan. . Duopoly of two main beverage companies in Pakistan including Coca-Cola has been diffused into the local markets. its main source of revenue is the sale of concentrate to its bottlers. "Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple. It also has got sugar by which continuous drinking of CocaCola may cause health problems. Lahore. Because Coke does not have outright ownership of its bottling network. The Coca-Cola Company in Pakistan has the mover advantage. Coca-Cola has recently reported some "declines in unit case volumes due to reduced consumer purchasing power” Coca-Cola on the other side has effects on the teeth's which is an issue for health care. Coca-Cola's bottling system is one of their greatest strengths. Out of twelve plants. This extremely recognizable branding is one of Coca-Cola's greatest strengths. Additionally. which is a drawback for coca20 Institute of Information & Technology. Faisalabad. Lahore. Rawalpindi. It allows them to conduct business on a global scale while at the same time maintain a local approach. Being a strongly recognized brand the product's image is loaded with coolness and refreshment.STRENGTHS Coca-Cola has been a complex part of Pakistani culture for over a half century. Karachi. The Coca-Cola image is displayed on T-shirts. yet powerful symbol of quality and enjoyment". eight are the operational plants while two are franchised with other group of companies. because drinking of Coca-Cola daily has an effect on your body after few years (International report of Coca-cola).

As Coca-Cola is in business of soft drinks and has more than 450 brands allover the world. the public has tended not to be affected by new products. Lahore. THREATS Currently. but in Pakistan they have only four brands.cola in Pakistan as in these two plants the involvement of Coca-Cola International is not present which effects the overall image of these plants in the local market about the quality and international standards. . however. Coca-Cola's brand name is known well throughout 94% of the world today. but in general. milk. but consumers are not necessarily married to it. Even though Coca-Cola and Pepsi control nearly 5% of the entire beverage market.S. University Of The Punjab. is a very real threat. Of course. so there is a potential in Pakistani market for other brands too. juices. This causes a tremendous growth in the sales during the summer season. this resists the copying of formula and formation of fake formula thus keeping the taste of pure and real CocaCola revitalizing and tempting. Packaging changes have also affected sales and industry positioning. the changing health-consciousness of the market could have a serious affect. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea. OPPORTUNITIES Brand recognition is the significant factor affecting Coke's competitive position. This strategy gives Coke the opportunity to service a large geographic. In Pakistan it is the well-known brand among the people of all ages specially the children are more attracted towards the coke. The unique formula (concentrate) is being imported from U. and hot chocolate ("Cola Wars". the threat of new viable competitors in the carbonated soft drink industry is not very substantial. area. 1991). diverse. both Coke and Pepsi have already diversified into 21 Institute of Information & Technology. The soft drink industry is very strong. The threat of substitutes.A and it is then processed in the local plants. CocaCola's bottling system also allows the company to take advantage of infinite growth opportunities around the world. Pakistani weather is hot and humid. coffee.

The rivalry between Pepsi and Coke has produce a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competition. It is said that the most common word to speak in this world is “OK” and after this the second most common in this whole world is “COKE”. which in turn could help to increase its market share. allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the market ("Cola Wars". Coca Cola Company could create a check and balance to meet the need of time. The market share and market value was dropped down to several points . Due to sanctions imposed on Pakistan after May5. The main threat to the company is the production of fake bottles. Sometimes different people and organizations used their names to make money. University Of The Punjab. It 22 Institute of Information & Technology. and its brand value is approximately 4 billion $. So any of the activists behavior can cause decline in the production and sale of coke and other cold beverage company. Furthermore. In a black marketing aspect whole sellers and retailer could take the fake bottles at a low price for selling at the price of original bottles which could be harm full for the health of consumers. In Pakistan the consumption of cold beverages is 5% which have to be stabilized. Consumer buying power also represents a key threat in the industry. 1995 taxes were to be paid in high amount thus increasing the cost of production and price offered to consumers and decreasing the buying powers of customers. . Intellectual Property Rights Coke is one of the biggest brands in the world. Lahore. in the form of fake bottling. Fake bottling is growing day by day Fake bottles problem for a company comes under the “act of unfair practices”.these markets. 1991).Price competition was started after this incident. Post 9/11 Effects After 9/11 incident Coca-cola suffered a loss due to boycott of religious activists at a larger scale. consumers can easily switch to other beverages with little cost or consequence.

. Lahore.already had made several steps to prevent fake bottling and production of fake coke but due to mushrooming industry the laws and management of the corporation is failed to stop this industry from flourishing. The government is also not of great help to the company in solving this main issue. University Of The Punjab. 23 Institute of Information & Technology.

PEST ANALYSIS 24 Institute of Information & Technology. University Of The Punjab. . Lahore.

Jamiat’s strike to coke affects the sales and overall image of coke as a larger number of students from all over the 25 Institute of Information & Technology. ECONOMIC FACTORS The economic condition of Pakistan has not been stable for a long time but The recent economic indicators suggest that the economy is growing and macroeconomic issues are getting sold but at the same time there has not any marked increase in the consumer buying power (inflation). When the recession occurs the price of bottles are dropped down to increase the sales and to achieve the targets of the company. For instance. This was a wrong conception as there was no reality in it and this scandal was flopped after a short span. Trade barriers such as tariffs and duties on the import of syrup (concentrate) from USA increases the operational cost. SOCIAL FACTORS Being a foreign based company Coca-cola faces opposition by Muslim activists. The main social issues are: It faced scandal of humiliating Muslim’s religion that when the inverted image of Coca-Cola brand name is being viewed on the mirror it disgraces the name of Holy city Makkah and Hazrat Muhammad (P. So overall economy of Pakistan directly affects the cost and price of the Coca-Cola Company. .U. One of the greatest social barriers to coca-cola Lahore is the restriction of coke in the campus premises. to some extent.H).B. Also the policies have been more or less constant and also the emaciation of free trade zones by the government will help the Coca-cola to flourish more effectively in Pakistan. Lahore.POLITICAL FACTORS The political environment of Pakistan affects the coca-cola beverages and Coca-Cola Export Corporation. the political instability in Pakistan causes trade and import policies to change rapidly as the government changes which causes many problems in the import of raw materials. A relaxation has been given by the current government. So the situation for the beverage industry is getting better day by day for the last couple of years. University Of The Punjab.

For this process. In technology Coca-cola company is far ahead than the several other local beverage brands of Pakistan. It is a Highly Technical 10 Steps Process. University Of The Punjab. Which are all done in the local plants using local content law. But on the contrary in the all parts of the country coke is viewed as the partner in the major events like Basant and promoter of music thereby making a place in the hearts of young generation of the society. filling and capping ". concentrate or syrup is imported from USA and is then mixed in the local plants .Machinery for the local plants was also imported but now the coca-cola company follows Local content law as most of the spare parts are locally made.Pakistan are studying in the University of The Punjab. Fanta. TECHNOLOGICAL FACTORS The making of Coke. . Lahore. The system is automated and equipment is fully operational and up-to-dated. 26 Institute of Information & Technology. Diet coke and sprite involves "mixing and blending.

27 Institute of Information & Technology. University Of The Punjab. . Only about 5% of the cold beverages are being utilized and this number is increasing. Because overall market is growing and it has relatively less market shares then its real competitor PEPSI. Lahore. Coke is sold in the 1:2 approximately ratio with respect to Pepsi as market share or Coca-Cola Company is 27% and that of Pepsi is 68%.BCG MATRIX High ? Growth Of Market Low Cash Cow High Dog Low Relative share A Coca-cola beverage limited is now at a stage of question mark if we place it in a BCG Matrix.

As for as Pakistan is concerned here Coca –cola is being lead by a Pakistani head. which is a very important event celebrated by the main target market of the company.EPRG MODEL Coca –cola has a geocentric policy regarding their human resource and policy making for host countries. And they hire employees on merit regarding their qualifications and knowledge without any discrimination between the countries and races. Mr. . Lahore. 28 Institute of Information & Technology. Asadullah Sherazi (GM CCBPL). 4 P’s are designed by management of the host country. University Of The Punjab. as BASANT is being celebrated by Coca – cola in Pakistan. They design their 4 P’s and management policies according to the environment and atmosphere of the host country.

29 Institute of Information & Technology. Lahore.PRODUCT LIFE CYCLE LA CO CA CO INT RODU OR CT Y GROWT H MAT Y URIT DECLINE Coca-cola is in a stage of growth according to a product life cycle analysis. and many companies are entering in this industry because of healthy growth. . It is recovering its market share very quickly which it had lost in previous years although there is good competition in market but it is still recovering and enjoying healthy profits. There are no barriers for new entrants. University Of The Punjab.

.5. University Of The Punjab. 30 Institute of Information & Technology. They prefer arbitration because litigation is very expensive and lengthy process. political parties which can affect policies and policy making authorities. then price of coke’s 250ml bottle can be lessened up to Rs. They respect the laws of host country and design their framework according to the rules and regulations of the host country. fear of unfair treatment in host country and fear of loss of confidentiality. they will go for arbitration but if arbitration does not solve the problem then they refer their dispute to litigation. Methods of Conflict Resolution World wide Coca-cola tries to solve any disputes which may arise through arbitration and they mention this clause in contract that if any dispute arises. As far as Pakistan is concerned up till now no such dispute has arisen in which they need to go for arbitration.DUTIES AND TAXES APPLIED Duties and Taxes are the tariff barriers for any company to import or export something to other country. rules and regulations of doing business. they have a vast experience they made of a dealing thorough with different governments They analyze and the different political organizations allover the world. When ever they enter into some country research work. Pakistani Government treats their concentrate under the head of luxuries and applied second highest duty after tobacco. Lahore. But they go for litigation against those firms which are involved in using their brand name for fake bottling. there is fear of poor image and damaging public relations. The most important component of coke is their concentrate which is provided allover the world from USA. According to their spokesman if this duty is removed. restrictions. Laws Abided By & Methods of Conflict Resolution Coca-cola is one of the oldest multinational corporation.

Another reason was that their backup was not as strong as Pepsi. Current Strategies Regarding International Operations One of the reasons of losing their market share in Pakistan in last few years was their quality. They were not getting any kind of help regarding financial problems. as we know that time Pepsi and Coke are bitter competitors so Coke must go with guns and guns with Pepsi. .10/-they got special permission to manufacture tin cans and that was the only plant which got permission to manufacture cans. management problems from Coca Cola International. As we have a example. But sometimes a situation may arise due to some political reasons that may create some problems. but nowadays policies are standardized so it doesn’t create any problems. Hamayun Akhtar who is a Federal Trade Minister of Pakistan. there is no biasness in dealing with different competing business. so coke deals with such problems strategically. But now most of the plants are under the control of Company itself and Coke International is also very keen to raise its market share in Pakistan so they are fully 31 Institute of Information & Technology. they tried to get permission but they failed. Lahore. so they usually have standardized policies for all the competing businesses. So they imported Coke cans from Dubai at Rs.STRATEGIES TO REDUCE POLITICAL VULNERABILITY Nowadays political governments are very conscious about foreign businesses and foreign investments. So if some problem arises which can affect their image and that cannot be solved due to some political and legal problems they solve this strategically.to compete in the market.10/. As we know that nowadays Pepsi in Pakistan is under the administration and control of Mr. In Pakistan they were operating as franchisee but now Company has acquired most of the plants except from Peshawar and Rawalpindi plant now they are very much conscious about their quality standards and the quality of other two is being controlled by Coca Cola Exports Corporation. University Of The Punjab. when Pepsi launch their tin can at Rs.13/.and sell it for Rs.

Coca-Cola Company develops an understanding and willingness to accommodate the differences that exists. is required on small matters as well as large ones. that is. or accommodate. open tolerance of concept “different and equal”.it reduce the (SRC) to lower the barriers of cultural differences . Company knows the best how to do the business at their best. frustration and misunderstanding of the host intention .The self reference criterion (SRC) is specially operative in business custom but Coca-Cola company could not indulge its own (SRC) in others culture it try to adopt the strategies of the host countries where they are doing business around the world . And operating in a home country for more than 50 years it have set up its strategies to meet the needs of required customer in every way possible where it is doing business it aware of the possibility of cultural differences and the probable differences. Coca-Cola Company recognizes the need of affirmative action. Cultural imperatives are the business customs and exceptions that must be met and conformed to or avoided if relationship is to be successful. Human relation. In Pakistan there main focus is on standardized products as Coca Cola. Company is doing a successful business internationally since 1953. Fanta. Lahore. consequences of failure to adapt. They that 32 Institute of Information & Technology.supporting Coca Cola Beverages Pakistan and Coca Cola Exports Corporation Pakistan. Coca-Cola Company business customs includes imperatives and adiaphora. and willing to adapt is a crucial attitude . the seemingly and less variety of customs must be assessed. Coca-Cola company feels that essential to effective to Adaption is awareness of its own culture and recognize that differences in others can cause anxiety. Sprite.Adaptation. and they are going to launch some of new products in next 2 or 3 years. University Of The Punjab. or at least accommodation. Adaption and cultural borrowing Adaption is a key concept in international marketing. friend ships and or attaining the level of trust are right tricks to do a business in a home country as well as in a host country. .

They hire local employees and plan according to the local environment 33 Institute of Information & Technology. When an issue arises in a home country about its penny per bottle is given to the Israel to war against Muslims and mean while many brands came into existence such as Mecca Cola. . Company feels that such Culture adiaphora has a minute effect on its sale but it has no longer effects. Lahore. They have adapted their company culture according to the external environment as they are indulge in many community programs such as scholarship and school funding programs and they have borrow the culture of Pakistanis.there is no substitute for establishing friend ship in some cultures before effective business negotiation can begin. Company motivate their local agents to make more sales and the friendship helps establish the right relationship with end users that to more sales over a longer period of time. University Of The Punjab. Shandy Cola etc. Culture adiaphora relates to the area of behavior or to customs that cultural aliens may wish to conform or to participate in but that are not required.

Lahore. Distribution Coca-Cola Company is facing a problem of distribution.PROBLEMS BEING FACED BY COCA-COLA COMPANY There are some problems being faced by a company which affects its business strategies. They need investment to encourage retailers to provide space to their products. they feel that Sprit and Fanta are the brands of Pepsi but in actual these are the brands of Coca-Cola Company they are facing these problems due to having low promotional strategy so that the unaware of its brands. . 34 Institute of Information & Technology.Coca-cola products are some where not available in rural area due to inefficient distribution system. Investment Coca-Cola Company is now facing a problem regarding investment. and retailers. University Of The Punjab. It creates an attraction to its distributors to take its products more to take incentives of special discounts provided by the company to its distributors. It is difficult to know where to begin and isolate the events which shape the business environment. wholesaler. Company is not in a situation to provide it to all its retailing stores while its competitor PEPSI COLA provides it to its distributors to promote his products in the market which is their competitive edge to increase it s share in the market. in the form of providing coolers. like investment in distribution system. This is a relatively a long term process to penetrate in the market and gain market share. to make it efficient. as distributors are expecting more from coco cola to provide an extra distribution channels which could help them to spread their products at large . Brand Awareness Having low promotional strategies that most of their customers are unaware of their brands mostly they mix their brands with Pepsi.

Lahore. Most of our youngsters are attracted towards it. Pepsi having market share of 68% involve in more promotional strategies as compared to Coca-Cola.e. Low value of share Coca-Cola company having a share of about 27% which is lower than its competitors i. ultimately that part of gain goes to fake bottle producers.Single Advertising Platform They have only one Advertising platform regarding promotion which is music. on the other hand Pepsi has another very important Advertising platform which is Cricket. Fake Bottling Fake bottling in Pakistan is one of the major problems being faced by the company. This problem not only affects the sale volume and profit margins but also brand value and loyalty of the customers. University Of The Punjab. . who running their business in the name of company 35 Institute of Information & Technology. The profitability which company gain.

RECOMMENDATIONS Distribution Products of the company must be physically transported from its warehouse where the products are needed. Companies try to hire Agent middle man who works as their own to distribute its products at various locations.the most important activity in getting the coco cola company products to the target market is arranging for its sales and transfer of a product to its final customer by assuming its financial risks. buying preferences or product use behavior relatively minor and benefits sought by the customer can be satisfied with single 36 Institute of Information & Technology. Company create assortment and storing products can be shifted from one party to another in order to increase efficiency. Company try to carry out the functions in exchange for the order and payment form the customer by providing more easily available products at required places. Designing Distribution Channel • • • • Specify role of distribution. As the middle man could not be disinter mediate from the process although some of unnecessary or redundant functions which cause the lost of financial resources. Select the distribution channel Determine the intensity of distribution Choose specific channel members Market Segmentation With different wants. for ultimate selling company try to carry out the functions in exchange for the order and payment from the customer by providing more easily available products at a required place. Company must add value to its products that eventually bought by individuals in order to create a viable “value chain” model to create a relationship of distribution management and select other facilitating organizations as a member of value chain .so the distributors within a marketing mix is getting the product to its target Market . . University Of The Punjab. Lahore.

• • • • • • Gathering new product ideas Screening of ideas Business analysis Prototype development Market test. . Sale promotion. The process of market segmentation • • • Identify the current and potential wants that exist within a market Identify characteristics that distinguish among the segments Determine the size of segment and how well they are being satisfied New Product Development To achieve strong sale and healthy profits company should have an explicit strategy with respect to developing and evaluating new products. Promotional Programs Promotion. others add to solid waste in landfills. is an attempt to influence so the company could hold a defined marketing promotional mix so that the consumer could be aware of its brand at large. 37 Institute of Information & Technology. They adopt the strategy by the following methods: • • • Personal selling. So the coco cola company recycles its disposable bottles and cans to recycle so the cost of production could be minimized to deal with other financial resources. Some discard packages wind up little. This could also help it to defend its market share. Commercialization.as a result segments must be targeted individually and alternative marketing mix is required. Stages in product development which could enhance business activities. University Of The Punjab. in some where it takes. Advertising. Dispose of Used Products Consumers desire for convenience in the form of throw away containers conflict with their stated desire for clean environment.marketing mix . Lahore.

. So the company could use any of the two strategies of corporative ads i. Lahore. So the coco Cola Company must be create its website that the ultimate customer could know about the product available in the market . Coco cola Company could share the cost of ads with the retailers or by giving a special discount to the retailers in order to encourage the retailer advertise.One method that the coco cola company use to extend their budget “cooperative corporative ads which is a joint effort two or more firms intended to benefit each of the participant.• Public relations. Formation of a Pakistani Website Web ushered in another level of networking of marketers.They must create a web sit which could fall in the categories of • • • • • Background and general information Current business operations Links Attraction and entertainment features Contact point The impacts of internet marketing create an opportunity to increase its wellbeing in the market place so opportunity of dealing in a host country as well as in the international marketing could increase. 38 Institute of Information & Technology.The information ranges from product description and invitations to suppliers to submit bits on planned purchases to product operation instruction and information about contracting sale personnel. it must be allocate among the various activities comprising the overall promotional program . In vertical corporative ads.e. vertical and horizontal. E-information form of networking involves creating a corporate website and posting information on it . University Of The Punjab. Company sells its products by creating an attraction for the customers by adopting these strategies.Firms are able to make vast amount of information available on their website . Establishing the Budget Once the promotional budget has been established.

2001.co. Dillon. Selling and Sales Management. 1994. Ltd.cokebuddy.co.com www.au www. McGraw-Hill Book Company Australia Pty Limited. Madden. Consumer Behavior (Building Marketing Strategy). Coney. 3rd.uk www. Fundamental of Marketing. 9th.jp www. 2004. Hawkins. McGraw-Hill Book Company Australia Pty Limited. 3rd. Firtle. 1st. Human Resource Management (Theory & Practice). Plagrave Mecmiilan. 2001. Marketing Research in a Marketing Environment. Peter Rix. . 4th. Best.cocacola. Marketing (A Practical Approach).com www. • • • • • • Reference Sites www.com 39 Institute of Information & Technology.cokecce.co. 4th. Kogan Page Limited. McGraw-Hill Book Company Australia Pty Limited. University Of The Punjab.in www. Jeffzay Gold. Miller & Layton.woccatlanta. Digital Marketing (Using New Technologies to Get Closer to Your Customers). McGraw-Hill Book Company Australia Pty Limited.cocacola.co. 2004.coca-cola. David Jobber & Geoff Lancaster. Lahore.coca-cola. Pearson Education Singapore Pte. 2003. 2002.BIBLIOGRAPHY Reference Books • John Bratt. 6th. Will Rowan.

University Of The Punjab. Lahore. .APPENDIX 40 Institute of Information & Technology.

Culture and its impact. What are Barriers faced by the company to operate (Tariff and non Tariff)? 4. How you deal with this problem. What are Laws abided by and methods of conflict resolution? (Both internal and external) Like: • Conciliation • Arbitration • Litigation 10. . any resistance if any like boycott of foreign brands nowadays 6. What are Strategies adopted to reduce political. University Of The Punjab. Adiaphorous and Exclusives followed by the company? 8. What are the current strategies regarding International Operations in Pakistan? Like Standardization vs. Fake Coke.QUESTIONIARE 1. 11. 41 Institute of Information & Technology. Information about: • Company’s History • Line of business • Number of Employees • Information about Host Country Analysis 2. Any issues related to Intellectual propriety rights. Lahore. Adoption. What are Imperatives. How do you adjust the controllable variables with the uncontrollable variables? Like: • Economic climate • Structure of Distribution • Competitive Forces • Political and legal Forces • Cultural Forces • Geography and Infrastructure • Domestic Environment 3. Cultural borrowing. operational and administrative vulnerabilities? 9. if any like in promotion strategies? 7. What are Duties and Taxes applied? 5.

What are the current problems and opportunities in this business that you are facing? 15. extend of local vendors) • Localization of Products • Localization of Profits • Localization of Production • Localization of Management 13. and subsidiary? 16.T. Information About: • Ratio of International profits vs. joint venture. Any Future Problem: • W. How to deal with competitors strategies 14. University Of The Punjab. Lahore.12. Localization Issues: Localization of Business in Pakistan (any raw material import. tread • New Business Entrance 42 Institute of Information & Technology. . domestic profits • Sales figure • Production Cost 17.O. Describe mode of international import/export.

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