Marketing Strategies Of

Coca Cola



TABLE OF CONTENTS CONTENTS 1. 2. 3. 4. Acknowledgement. Mission statement Introduction. Coca Cola. a. Coca Cola International. b. History. 5. Management. 6. Market share. 7. Financial report. 8. Dividends and Cash Plan. 9. Products. 10. Strategic planning. 11. Bottlers owned by Coca cola 12. Coca Cola Pakistan. 13. Major Competitors a. Pepsi b. History. c. Financial assets. • Market share. • Financial report. • Products. • Methodology 14. Some basic information regarding marketing of coke a. Target market: b. Major segments: c. Factors effecting sales: d. Major competitors: e. Strategies of quality: f. Threats from competitors: g. Targets that would like to attain: h. Expanding target market i. Threats and opportunities for price: j. Strategies of getting goals i.e. “high profits”: k. Marketing strategy: l. Expectations for the coming year: m. How coke determine the yearly budget: 15. Marketing strategies 16. Pest analysis

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This report is dedicated to my beloved parents, Who educated me and enabled me to reach at this level.


The work of some unknown person makes our lives easier everyday. Then we would like to thank our friend and brother Mr. we discover a debt to others that spans written history. First of all we would like to thank our teacher Mr. but it is also necessary to acknowledge those people we know have directly shaped our lives and our work.ACKNOWLEDGEMENT We think if any of us honestly reflects on who we are. Zeeshan Anjum for providing us the information that was required for completion of this project. what we think we might do well. how we got here. Muhammad Shafique for their guidance through out the semester. 5 . We believe it's appropriate to acknowledge all of these unknown persons. and so forth.

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The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We will be the best marketers in the world. We will think and act locally. whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. and create economic value added by improving economic profit. We strive to understand each customer’s business and needs. our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. Ultimately.The Mission Statement of the Coca Cola Company Our mission statement is to maximize shareowner value over time. 7 . We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. 2. 6. In order to achieve this mission. We achieve this when we place the right products in the right markets at the right time. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day. and our communities. 4. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. We will lead as a model corporate citizen. 5. our bottlers. The ultimate objectives of our business strategy are to increase volume. we must create value for all the constraints we serve. maximize our longterm cash flows. There are nearly 6 million people in the world who are potential consumers of our company’s product. our customers. Consumer demand drives everything we do. expand our share of worldwide nonalcoholic ready to drink beverages sales. including our consumers. Brand Coca Cola is the core of our business 3.

1986. the senior management team of Johnston assumed responsibility for managing the Company. In December 1991. Thomas and Joseph B. Benjamin F. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. John Pemberton . The Company offered its stock to the public on November 21. and began a dramatic. local businesses until the early 1980s when bottling franchises began to consolidate. again helping accelerate bottler consolidation. and total revenues were $5 billion 8 . On an annual basis. Whitehead . successful restructuring in 1992.4 billion. began to produce Coca-Cola syrup for sale in fountain drinks. Lupton franchises and BCI Holding Corporation's bottling holdings. In 1986. to form Coca-Cola Enterprises Inc.Unit case sales had climbed to 1.50 a share. when an Atlanta pharmacist. The Coca-Cola bottling system continued to operate as independent. (Johnston) created a larger. stronger Company. Inc. secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. Dr. the John T. a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group.COCA COLA INTERNATIONAL HISTORY: Coca-Cola Enterprises. is a young company by the standards of the Coca-Cola system.000 in 1986. As part of the merger. established in 1986. However the bottling business began in 1899 when two Chattanooga businessmen. at a split-adjusted price of $5. The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale. The Coca-Cola Company traces it’s beginning to 1886. total unit case sales were 880.

Coca Cola enjoys the largest market share.MANAGEMENT: The hierarchy of Coca Cola Company is as follows. This company controls about 59% of the world market. (Table) Unit case growth 10 year compound annual growth Compan y Industry 5-year compound annual growth Compan y Industry 2001 annual growth Compan y Industry Nonalcoholic drink 2002 Company share All commercial Beverages 2002 Compan y share Compan y per capita Income 6% 5% 5% 5% 4% 4% 18% 9% 70 9 . GLOBAL MARKET SHARE: The following table can show the worldwide operating segments. Chairman Board of governors Vice Chairman and chief operating officer Executive Vice Presidents Senior Vice Presidents Vice Presidents MARKET SHARE: SHARE Being the biggest company in the soft drink industry.

The global unit sale of the Coca Cola Company is increasing from the last ten years. (Figure) This strategy has worked a lot and it has helped them to become the World’s leading Soft Drink Company. Thus they are increasing their market day by day. that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume. The operation income earned by Coca Cola Company can be illustrated by the following pie chart.This shows that the market of the company is geographically vast and it is controlling it with great success. The financial health and success of their bottling partners is a critical component of The Coca-Cola Company's ability to build and deliver leading brands. 10 . which has deepened the relationship of the customers and Coca Cola. In 2002. the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. There is a worldwide volume increase by 4% with strong international growth of 5%. This is only due to the innovative marketing programmers. (Figure) 12 10 8 6 4 2 0 1971 1981 1991 2002 unit sale in billions So there is positive growth in the market of the Coca Cola Company. The data of the global unit sale of the Coca Cola Company can be represented by following chart.

The world wide total is about 17. The column. The main reason behind this relationship is to continue realizing shared opportunities for growth. The country column is derived from 11 . with closer coordination of operations including customer relationships.In 2002. which shows the non-alcoholic beverages consist of commercially.8 billion. MARKET SHARE BY AREA: Coca Cola is the world-renowned soft drink and the company is currently operating through out the world. The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. The data about the market share of this company area wise is given in the following table. as estimated by the Company based on available industry sources. The above table shows the geographical earning of the Coca Cola Company and from this data. the company had worked with their bottlers to turn good intentions into reality by improving the system economics. logistics and production. Operation Review (2002 worldwide unit case volume by operating segment) NORTH AMERICA 30% LATIN AMERICA 25% EUROPE & MIDDLE EAST 22% ASIA 17% AFRICA 6% NORTH AMERICA LATIN AMERICA EUROPE & MIDDLE EAST ASIA AFRICA So the volume is least in the Africa and most in the North America. sold beverages. Unit case equals 24 eight-ounce servings. we can find out that the customers of Coca Cola are increasing which is shown by the company’s per capita income. The operation review according to the segments is as follows.

as estimated by the Company based on available industry sources. (Table) Country Unit case growth Nonalcoholi c Drinks 2002 Compan y share All commercial Beverages 10 year 5-year compound compound annual annual growth growth Compan y Industry Compan y Industry 2002 annual growth Compan y Industry 2002 Compan y share Company per capita Income North America United States Latin America Argentin a Brazil Chile Mexico Europe & Middle East Eurasia France German y Great Britain Italy Middle East Spain Asia Africa 4 4 6 7 5 9 7 6 5 5 7 4 5 6 10 3 3 3 6 6 3 5 8 5 3 3 6 2 6 3 9 3 2 2 3 7 3 (2) 2 2 2 2 4 2 5 3 5 4 22 23 24 20 23 56 22 12 15 16 15 10 13 23 18 6 398 419 205 236 144 336 462 72 17 8 1 8 1 12 6 7 7 8 3 2 2 3 12 4 6 6 6 9 (1) 11 4 7 8 6 8 5 3 1 2 3 5 5 7 3 (14) 7 (6) 8 2 4 4 10 10 1 3 1 3 2 8 4 7 6 14 9 14 17 9 8 17 14 34 5 5 7 6 6 3 12 5 11 39 110 193 193 104 17 264 23 34 12 .The Company's unit case volume while the industry column includes nonalcoholic ready-todrink beverages only.

for example. led by Coca-Cola. In China.In Asian population. (Figure) So the company is emphasizing more in this area and is trying to develop a strategy. Among others. Through an intense focus on Coca-Cola. sales of Coca-Cola increased 6 percent. India and Bangladesh are those countries where the average consumption is increasing day by day. 13 . this region has strong long-term potential. is approximately 3. With developing economies and populations. the company has achieved volume growth of 10 percent in 2002. which is the satisfied customer of Coca Cola. and the company is building an exciting family of beverage brands in addition to expanding the popularity of our core brands. which can increase the growth of the consumption of Coca Cola by the people of Asia. Among the countries of Asia. Japan has the highest percentage. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart. Pakistan.2 billion and the average consumer enjoys close to two servings of our products each month. which is about 29%. innovation and new beverages.

5 5.6% 38.05 per share after income taxes related to the settlement terms of a discrimination lawsuit.1 Percentage change 1% 45% 82% 82% 82% 15% 24% 6% 108% 12% 5% 2% 4% 2002 basic and diluted net income per share includes a non-cash gain of $.889 3..16 per share after income taxes related to the impairment of certain bottling.19 per share after income taxes related to the Company's portion of charges recorded by the investors of the company.691 2. manufacturing and intangible assets. The financial report of Coca Cola Company of the year 2001 and 2000 along with the percentage change is as follows.601 4. which was recognized on the issuance of stock by Coca-Cola Enterprises Inc.3 17.01 per share after income taxes related to incremental marketing expenses in Central Europe. (In millions except per share data.969 1.601 1.02 per share after taxes.177 0.882 0.5% 12.806 16.110 (963) (1. • $.791) (277) 3.9 5. the company is still surviving the ups and down of the business world.1% 11. ratios and growth rates) 2002 Net operating revenues Operating income Net income Net income per share (basic) Net income per share (diluted) Net cash provided by operating activities Business reinvestment Dividends paid Share repurchase activity Free cash flow Return on capital Return on common equity Unit case sales (in billions) International operations North America operations Worldwide 20.2% 23. (Table) Year Ended December 31.147 26. 2002 basic and diluted net income per share includes the following charges: • $. 14 . • $.24 per share after income taxes related to an organizational Realignment.352 3.685) (133) 2.FINANCIAL REPORT: This company is financially very strong.092 5. one of the equity investors of this company. • $.8 2001 19. It is due to the strong finances.882 3.585 (779) (1. • $.2 17.

A.04 per share after income taxes related to benefits from a tax rate reduction in Germany and from favorable tax planning strategies. 15 .These charges are partially offset by a gain of $.000 per year. All shareowners of record are eligible to participate. At year-end.05 per share after income taxes related to the merger of Coca-Cola Beverages plc and Hellenic Bottling Company S. In 2002. DIVIDEND AND CASH INVESTMENT PLAN: The Dividend and Cash Investment Plan permits shareowners of record to reinvest dividends from Company stock in shares of The Coca-Cola Company. economical and systematic method of acquiring additional shares of our common stock. The Plan provides a convenient. shareowners invested $36 million in dividends and $31 million in cash in the Plan. 76 percent of the Company's shareowners of record were participants in the Plan. Shareowners also may purchase Company stock through voluntary cash investments of up to $125. and $.

The statistics is as follows. (Table) 2002ª Equivalent cases Bottle and cans Fountain Employees Vehicles Cold drink equipments Facilities Production only Distribution Combination Total Percent of North America population coverage Number of States of Operation Bottle and can equivalent case package distribution Cans Non-refillable bottles Refillable bottles Capital structure Net debt to total capital ratio EBITDA interest coverage Weighted average cost of debt Key Statistics Constant territory bottle and can volume growth Bottle and can net revenues per case change Bottle and can cost of sales per physical case change Reported EBITDA (in billions) Reported EBITDA change Capital expenditures( in billions) %-age of net operating revenues Coverage of North American Can/bottle volume 4. This is because.4 million 25 385 53 463 80% 46 44% 52% 4% 63% 3 6. results in the percentage change in the statistics of the two years. Coca Cola Company is increasing its volume day by day.95 (18)% $0. Since it is operating through out the world that is why the number of employees and the bottling equipments is highest among the other bottling companies.97 6% 83% 2001 3.8% ½% 2% ½% $2.2 billion 87% 13% 72.COMPANY STATISTICS: The statistics of this company is impressive. There is a constant increase in every aspect when we compare the statistics of 2001 and the statistics of 2002. The expansion of this company.000 2.000 2.8 billion 87% 13% 67.3 million 25 361 50 436 72% 46 45% 51% 4% 59% 3 6.39 9% $1. which shows the success of Coca Cola brands.18 8% 74% 16 .000 52.3% 3% Flat 1 $1.000 54.

Major brands of coca cola • • • • • Coke Sprite Fanta Diet coke Coke classic 17 . PRODUCTS: There are different brands of the Coca Cola Company. taxes. • • Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable securities. which are currently in use through out the world. This company not only deals in the carbonated drinks but also other drinks. While launching its product. and other non-operating items. and amortization. the marketing team considers the culture of the country.EBITDA is the Earnings before interest. Equivalent Case or Unit Case is the physical case and fountain gallons converted to a standard unit of measure defined as 24 eight-ounce servings or 192 ounces per equivalent case sold by Coca-Cola Enterprises. depreciation.

research and development with the expertise of Coca Cola Company in brand building and distribution. This strategy has paid dividends. the second-largest category in the non-alcoholic ready-to-drink segment—it launched Marocha Green Tea.A. Ciel and Bonaqua each achieved sales of over 100 million unit cases for the year. The company has successfully applied it’s approach to brands in several key markets. it’s bottled water volume exceeded 570 million unit cases. With sales of 46 million unit cases for the year. Coca-Cola Company also successfully energized a major piece of its beverage strategy—water. Backed by a strong network of bottling partners through out the United States. the entire Turkuaz brand team worked together to launch Turkey's first purified water brand. 18 . the company grew Georgia coffee in Japan by 3 percent through awardwinning marketing in a category that was flat for the year. began operations in 2001. Mori No Mizudayori in Japan. (Figure) The commitment of the company is to devote resources to water only in markets where it expects profitable growth. At the same time. including Ciel in Mexico. This partnership combines Nestlé's knowledge in life science. Three of the water brands. By the end of 2001. Dasani became the nation's fastest-growing water brand. In 2001and 2002. the renewed and strengthened marketing partnership with Nestlé S. Bonaqua in Russia and Kinley in India. In Eurasia. This year.The over all volume of this company is as follows. The popularity of Marocha is also recognized by the industry with a leading trade journal naming Marocha the most popular new food and beverage product of the year. making it the second biggest contributor to the growth of the company after carbonated soft drinks. Marocha Green Tea is the fastest-growing product in the fastest-growing category: green tea. Also in Japan—where The CocaCola Company is the leader in the total tea category. the company has also made good progress in coffees and teas. Beverage Partners Worldwide.. Dasani.

Know the most recognized word on the planet after “OK”! 19 .

In the United States. So the company introduced a convenient 2-½ liter bottle to select regions. the company has created new packaging sizes to satisfy consumer demands. packaging. Simply Orange and Disney juices and juice drinks in the United States. Germany and Spain. while a twoliter bottle was the largest available package. Mexican families have lunch together at home. Increasingly. The commitment of the company to packaging innovation also resulted in new initiatives for our fountain business. sales of CocaCola increased by 6 percent. Through an intense focus on Coca-Cola. and festival packaging helped drive a 6 percent volume increase for Coca-Cola. Revitalized in the United States. This year. brand and graphic customization and improved reliability. investing in new products. nearly double the growth rate of the worldwide sports-drink category. The company increased its two largest bottle sizes during the 2001 holidays. led by Powerade and Aquarius. including Great Britain. as well as in Mexico and Latin America. the company re-launched its global sports-drink business. grew by 13 percent in 2002. Soft drink in North America: diet Coke. the company introduced Powerade in nearly every major Western European market. Two years of research resulted in a dispensing system that provides exceptional beverage quality. a total beverage dispensing system that is more flexible and more reliable.5 billion unit cases of CocaCola in Mexico this year. contributing to the sale of nearly 1. This larger bottle will complete its nationwide rollout in 2002. the company "bottled" the concept. With brands such as Minute Maid. Qoo in Asia. The company has also responded to consumers' changing fashion styles with new bottles. Kapo in Latin America and Bibo in Africa. Hi-C. In China. In the United States. The average Mexican household drinks two-and-a-half liters or more of soft drinks during that break. easy to upgrade technology. a channel through which many consumers enjoy Coca-Cola. the company developed Fountain. positioning and marketing. The result—diet Coke with lemon—contributed to volume growth of 4 percent for the number-one diet. In key markets. In China.Among the soft drinks Fanta and Sprite become successful along with the major brand Coca Cola and Diet Coke. innovation and new beverages. The company launched 27 products in 2001. Coca-Cola is an integral part of holiday celebrations and the family get-togethers that accompany such events. it has achieved volume growth of 10 percent in 2001. recognizing that consumers often enjoy their diet Coke with a slice of lemon. 20 . The packaging innovations do not just involve resizing. The results speak for themselves: it’s global sports drinks.

• • • • Earnings per share grew by 82 percent. up from $2.STRATEGIC PLANNING In the year 2002. company accomplished the crust of it’s strategy as • Worldwide volume increased by 4 percent with strong international growth of 5 percent and clear signs that our North American business is growing solidly and predictable. the company had a great success. Grow system profitability and capability together with our bottling partners. • • • • • • Accelerate carbonated soft-drink growth. The company has generated free cash flow of $3. Selectively broaden the family of beverage brands to drive profitable growth. MAJOR COMPETITOR 21 . Serve customers with creativity and consistency to generate growth across all channels. The strategy for the future of the company is very straightforward. In 2001. The marketing strategy for the year 2002 is as follows. a clear indication of its underlying financial strength. as the strategy worked which resulted in making Coca Cola Company the world’s leading company. Return on capital increased from 16 percent in 2000 to 27 percent in 2001. led by Coca-Cola. as we delivered on our commitment to create volume growth while aggressively Return on common equity grew from 23 percent in 2000 to 38 percent this year.1 billion. Drive efficiency and cost-effectiveness everywhere. Direct investments to highest potential areas across markets.8 billion in 2000.

PEPSI INTERNATIONAL HISTORY PepsiCo is a world leader in convenient foods and beverages.000 employees. with revenues of about $27 billion and over 143. Gatorade/Tropicana North America and PepsiCo Beverages International. The new name. In Asia. Bradham’s advertising praises his drink as “Exhilarating. Pepsin and Kola Nuts. invigorating. They have four filling lines in the plant operating on the three shift bases. manufacturer and marketer of ready-to-eat cereals and other food products. is derived from the two of the principle ingredients. they only entered beverage industry. in 2001. They have eleven bottlers covering whole Pakistan. they selected Lahore to make their regional office. and Quaker Foods North America. This regional office is monitoring all the operations carried out in South West Asia. PepsiCo brands are available in nearly 200 countries and territories. aids digestion”. Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. This plant was established at Lahore in 1974. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. The total capacity of the plant is 30.000 cases per day. the beverage businesses of PepsiCola North America. In 1992 PepsiCola formed a partnership with Thomas J. Each shift is of eight hours. Lipton Co. Many of PepsiCo's brand names are over 100-years-old. It was first used on the August 28. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company. Outside the United States. the popularity of Pepsi increase. 1990-2002 The advertisement of the Pepsi changes to. but the corporation is relatively young. “Pepsi Cola”. PepsiCola beverages are available in more than 190 countries and territories. This was done in 1970. As in Pakistan. including Gatorade. “You got the right one baby.With the extensive usage of the stars in the adds. The plant operating here is Riaz Bottlers (Pvt) LTD.would entertain the listener with the latest musical selections rendered by violin or piano or both. At that time. They have permanent work force of 750 people and they employee approximately 1000 people more on temporary basis during summer season. Uh-Huh!”. 22 .

Pepsi’s Products • • • • • • • • Pepsi Teem Mirinda Pepsi Max Pepsi Lemon Pepsi Blue Mountain Dew 7up 23 .

independently owned. Coca-Cola. Hyderabad.COCA COLA PAKISTAN The Coca-Cola Company began operating in Pakistan in 1953.000 customers/retail outlets. Sialkot. The CCBPL plants are in Karachi.) 49 years of refreshment in Pakistan Coca-Cola introduced in Pakistan 1953 Fanta introduced in Pakistan Sprite was introduced Diet Coke & Fanta Lemon 1965 1972 2001 24 . are in Rawalpindi and Peshawar. The Coca-Cola System in Pakistan has invested over $130 million (U. four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The Coca-Cola System in Pakistan serves 70.800 people. Rahimyar Khan. Fanta and Sprite are the brands in Pakistan. Multan and Lahore.S. The Coca-Cola System in Pakistan employs 1. The Coca-Cola System in Pakistan operates through eight bottlers. Gujranwala. Faisalabad. The remaining two plants. During the last two years.

TARGET MARKET Coke’s commercials basically based on young generations. So the disposable incomes of the people are coming down. Because which every passing year budgets are becoming very strict and tight in order to purchase things. joy and fun to our stakeholders. FACTORS EFFECTING SALES There are so many factors. MAJOR SEGMENTS Major segments are basically those people who take this drink daily and those areas where the demands is higher then the other areas. value. and education and basic necessities and after that when they get extra money they think about this soft drink . 25 . When we bring refreshment.PROMISE OF COKE The basic proposition of our business is simple. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business. • • • Per capita income Competitors Weather Per Capita Income First we will discuss about “ Per capita income”.So the decreasing per capita income effects badly in selling and production of this soft drink. So. So. They spend heavily on rents. which affects the sale of coke. the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market. solid and timeless. then we successfully nurture and protect our brands. This is major factor that affects the sale of this soft drink. their basic segments are those people who take this drink regularly. utilities. particularly Coca-Cola. Here we are discussing three major factors which effects coke. There are so many people who take this drink daily and those people who take weekly and those who take less often are always there as well.

They provide this infrastructure free of cost just to provide child coke to their customer. Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not. which they want to be purchase. This is underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%. Weather Weather is the third major factor in effecting the Coke’s selling. Consumers basically drink what they get. coffee. They believe on “WHAT COLD THEY SOLD” Consumer’s availability in brands is basically works like: Push availability Pull consumer’s demand. if not then they immediately change or repair it. they don’t care before drinking that whether it is “Pepsi” or “coke”. For this reason Coca-Cola have provided their coolers and freezers in the market. 26 . They don’t actually differentiate between these two brands in order to their tastes. Competitors Coke’s major competitor is “PEPSI” and there is no hesitation to say this because every one knows that and all the other cold drinks and water.And to get through with this difficulty there is need to increase the level of per capita income of Pakistan because it is much lesser than the rest of the countries. They have maximum number of coolers and freezers in the market. tea are the competitors. MAJOR CUSTOMERS NEED First of all the majority don’t care that what they are going to have. In other words.

Enhance competition moments 2. But Coca Cola thinks in a different way.So the major competitor of Coke is Pepsi. These are the “key consumption”. Then they compete brands with each other. Pepsi. STRATEGIES OF QUALITY After Micro and macro analysis Brand “coke” is primarily role 1. they believe that RC Cola. Fun time Though these strategies there could be better understanding and better connection with the public. new coming AMRAT Cola. There are three major ways of making money • • • Over night profit Windfall profit Ethical and un-ethical ways 27 . Price is the major threat.e. Because when the price go higher people go for the substitute of “coke” i.MAJOR COMPETITORS Consumers firstly decide that they are going to have a soft drink. When people watch cricket 3. THREATS FROM COMPETITORS Threats are well planned. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink. TARGETS THAT WOULD LIKE TO ATTAIN Every organization runs on the bases of profit maximization so Coke is also looking for a high profit margin. Like they compete Coke with Pepsi and Sprite with 7up and team . Through commercialization 4. even they take water and tea as their competitors. and all juices. In short it all depends on customer’s perception. When they motivate to any other brand or on Coke it’s in instinct basically that based on messages derive certain feelings. And when price goes down they think that there is must be some thing wrong in it.

because Coke is the name. though coke is the 2nd best name but it can get a better position after some time Attractive Brand Name Now the consumers know the Name of Coke. Because now they know the name of another big brand. They believe on this quote “ Every thing is fare in love and war”. EXPANDING TARGET MARKET In last 2 years Coke has come back in aggressive manner.Over Night Profits They could be over night profit that is for the number 1 brand for the year. And they can also get profit through different approaches. They are the extras profit. there is different kind of profits. This could be got my increasing sales volume Windfall Profit Can be windfall profit. So. Two major brands “coke” and “Pepsi” also have brand names. • • • Consumer has choice Attractive brand name Brand differentiating Consumer Has Got Choice Now the consumer has got choice. 28 . Brand Differentiation Now different companies have got different brand names. which is the most popular after the word “ok”. So. When the consumption the consumption is on boom. So people can better differentiate brands with each other. Ethical And Unethical Ways Profit can also get through ethical and unethical ways. people can distinguish between brands. Some profits stays for some time like “over night profits” and some just come and go like “wind fall profits”.

After paying all these expenses Coke’s margin squeezed and consumers have to pay for increasing tariffs. Threats There are much more threats in increasing prices. Because they believe in the togetherness.excise duty 27% .goes to government 03% . Then there is the tax rate system 15% . Coke will lose the margin of its profit and can face loss. being people together and friends are being together. Then people definitely won’t go for coke. They have the best substitute of Coke that is Pepsi. In contrast to Coke they believe on individual struggle. They use the temperament of “ME”.sales tax 20% . THREATS AND OPPORTUNITIES FOR PRICE Opportunities If Coke is considered a luxury product. These are the opportunities through which we can increase the price and can get profits. We have to spend on distributions. So these are the threats in increasing prices. Coca Cola strongly believes that Pakistani temperament is “US” not “ME” Pepsi’s Brand Pepsi’s brand is basically is basically “ME” branded. Because same problem of substitute.In making Budget After paying all these taxes coke has to pay electricity charges. If Coke increase the price lets say 1 rupee. 29 .Coca Cola’s Brand Coca cola is “US” brand.

For example Coke is increasing the number of flavors in “Fanta”. How to take part in energetic festivals? Coke is already taking part in the festival like “Basant” since last 3 years. and how they relax and recharge. What people want in a beverage is a reflection of who they are. We are determined not only to make great drinks. Coke offers different attractive things in their festival and through this Coke gained high profit and consumption of coke increased on these occasions. which Coke can adopt. or a couple in Korea buying bottled water after a run together. health. this is one of the product of coke. Some major ways are as follows. wellness. Whether you're a student in the United States enjoying a refreshing Coca-Cola. 30 . we're there for you. Through advertisements. but also to contribute to communities around the world through our commitments to education. a child in Peru asking for a juice drink. MARKETING STRATEGY Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. a woman in Italy taking a tea break. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained. How to increase the interest level of consumers? Coke is increasing the interest level of consumers by offering different flavors. how they work and play.E. offering different interesting things to attract people towards this product. And this year in this year 2002 people were anxiously waiting that what interesting thing coke is going to offer. There are so many ways through which Coke can increase the profits. and diversity.STRATEGIES OF GETTING GOALS I. where they live. • • • Volume can be increased Interest level of consumers To take part in energetic festivals How to increase the volume of consumers? Coke can increase the volume by expanding the industry of coke. “HIGH PROFITS” To increase the price is the least thing.

consistently shaping our business decisions to improve the quality of life in the communities in which we do business.Coke strives to be a good neighbor. It's a special thing to have billions of friends around the world. 31 . and we never forget it.

Fanta.5 CANS (standers size returnable bottle) (litter returnable bottle) (no return bottle) or disposable bottle (1. And company offers their products in different bottle sizes these includes: • • • • • SSRB LRB NRB PET 1.MARKET POSITIONING Product Range The total range of Coca Cola company in Pakistan includes: • • • • Coke. 32 . Diet Coke.5 litter plastic bottle) (tin pack 330 ml) Packing Coca cola products are available in different packing • • • • 24 regular bottle shell 6 bottle pack for 1.5 pets 12 bottles in a pack for disposable bottle 24 cans in one pack. Sprite.

And they have a good sale in the market because according to the expert which product seen more in the market that sells more. But normally they reduce the prices of their pet bottles or 1 litter glass bottle. And that’s why coca cola seen more in the market. Summer is supposed to be a good season for beverage industry in Pakistan. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives. by this these retailers and middle man push their product in the market.PRICE STRATEGY Trade Promotion Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles. 33 . “Seen as sold” They do agreements with a shop keepers and stores to exclusive sale in that stores. These stores are called as KEY accounts in their local language. So in winter they reduce their prices to maintain their sales and profit. Different Price In Different Seasons Some times Coca Cola Company change their product prices according to the season.

34 . UTC Scheme UTC mean under the crown scheme. They have almost 450 vehicles to supply their bottles. tv sets. Like once they offer bicycles. This scheme is very much popular among children. cash prizes etc.PROMOTION STRATEGIES Getting shelves They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers. Sale Promotion Company also do sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share. caps. Normally they keep their freezers near the entrance of the stores. Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eyecatching positions. In this type of selling company have more profit margin. coca cola often do this type of scheme and they offer very handy prizes in it. 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.

35 . Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products. FACILITATING THE PRODUCT BY INFRASTRUCTURE For providing their product in good manner company has provided infrastructure these includes: • • • • Vizi cooler Freezers Display racks Free empty bottles and shells for bottles ADVERTISEMENT Coca cola company use different mediums • • • • Print media Pos material Tv commercial Billboards and holdings Print Media They often use print media for advertisement.Indirect Selling They have their whole sellers and agencies to cover all area. POS Material Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas. They have a separate department for print media.

Workers should be the brand centric not the promotion centric. They have to take lots of decisions that how to increase the production and where they have to spend money.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. 2. Coming year is the challenging year for the industry of Coke. They have so many sites in different locations for their billboards. which they used to have Coke wants to advertise their products heavily in the coming year. And the basic key to attract the consumers is to throw the “money away”. They should also know that how much to do with the promotion activities for brand. Billboards And Holdings Coca cola is very much conscious about their billboards and holdings. 4. And positive feeling felling with the brand. 3. And when we take it as a global level it is $ I billion. They should know how much to for the brand activities. EXPECTATIONS FOR THE COMING YEAR Every thing starts from the attitude of consumer’s behavior. And it will take the 10% of their profits. HOW COKE DETERMINE THE YEARLY BUDGET Coke determines its yearly budget by the • • • Sales volume Profitability Target volume 36 . For gaining success in coming year they have to have some important things like: 1. So Coca Cola Company does regular TV commercials on different channels. Loyal consumers are important for company’s success.

To get profit is the first priority of the Coke. Every organization runs on the basis of getting high profits. then they definitely want to increase their profits in the next coming year. So Coke Follow the same thing it has also some goals and targets to achieve in the given time period. which they want to achieve in a specific time period.Sales Volume Coke determines its yearly budget through the sales volume. When they succeed to achieve that target then they increase their target volume in the next year. Profitability: The second thing through which they determines budget is the “profit” . If industry achieves those goals in that period then for the coming year it increases the volume of the target. 37 .if they r getting profits with the high margin. They first concentrate on the thing is “what is the condition of their sales?” if the condition is good of their sales then they definitely increase their production and sales volume. Target Volume: To run the business every industry has some targets. No organization wants to face Loss in their business. Otherwise they concentrate on their old strategies.

fun & prizes to be won. watched & played game in Pakistan . Coca-Cola Food Mela With a splash of food. 38 . lyrics & songs have made him an instant hit among the masses in Pakistan.SALES PROMOTION ACTIVITIES Coca-Cola Cricket Cricket the most sought after. It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the beverage industry. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured throughout the country. Coca-Cola Concerts Abrar-ul-haq’s distinct style. Coca-Cola signed a sponsorship agreement with eight of Pakistan’s National cricket players. Coca-Cola’s brand positioning of providing deep down refreshment for the body. The TVC campaign focused on the hectic lifestyle of a pop star who found respite & relief through Coca-Cola in short moments that he had to himself during a concert. The promotion saw the avid families & friends enjoying the delicacies at the restaurants. The competition has become tougher & tougher as the time has progressed. spread out all over the bustling city’s map. to a festive food festival comprising of 50 restaurants. all resiliently upholding the Coca-Cola identity. His enormous popularity in the country & abroad is supported by Coca-Cola’s commitment towards providing healthy & fun-filled entertainment for the youth of Pakistan. soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar. This campaign helped Coca-Cola to establish its association with the game & the player.the game of cricket has been owned by various brands in the industry for the promotion of their products over a period of time. These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board. The Coca-Cola Company developed three TV commercials & four testimonial ads with the player & ran them on the national net work during various cricket matches. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it consumers & masses invested in the opportunity and launched a massive campaign on mass media showing all these cricket stars endorsing & complimenting CocaCola brand. the Coca-Cola food mela treated the people of Karachi.

had children’s parade & held the Coca-Cola kite flying championship during the basant festival.Coca-Cola Basant Festival In February the month of basant the parks & horticulture authority in Lahore nominated Coca-Cola the official sponsor of the basant festival . took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits .Coca-Cola added to the carnival atmosphere by making the festival free to enter & decorating all main roads in Lahore with illuminated kites. The in augural event proved so popular that it is now set to become an annual fixture. pedestrians & passerby’s during Lahore’s hottest summer season. Coca-Cola Shopping Festival Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping festival. Now “where there is basant there is Coca-Cola”.5 liter Pet bottle. great prizes & fire works. Coca-Cola Pet Promotion In 1996. Targeting house wives & family home. Coca-Cola’s PET was offered through a “price-off” promotion that said………. Coca-Cola also hosted a concert of pop idol Abrar-ul-haq. Coca-Cola give the more refreshing flavor to the colors of basant by adding more life to the festival. live music. a resounding success with tempting discounts. where Junoon performed. Coca-Cola launched 1. This program was recorded and one-hour program shown in the national TV for free. Coca-Cola’s “GO-RED” teams went out into the cities main quadrants to “serve & refresh” on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement campaign the “GO-RED” stall. Coca-Cola’s 1.Go out & get some 39 . served well to promote the Coca-Cola industry.5 liter Pet contour bottle for the first time in Pakistan. Coca-Cola created an experiential musical evening in Lahore. Coca-Cola GO-RED Quenching the thirst of motorist. it has been impossible to envisage basant without Coca-Cola.10 million households saw Coca-Cola ‘Party in a Park’ while 10 thousand people attended the event. giving the consumer a unique experience which they had never tasted before. Coca-Cola Party in a Park In June 2000. Liberty marketing Gulberg was a hive of activity during the weeklong shopping extravaganza.A treat for the family.

Coca-Cola set the stage of the grand UTC promotion. The promotion kicked off with pos material (Danglers. 40 . NEWYORK. a trip to PARIS. Bunting etc) displayed at all MC Donald’s restaurants along with a special offer for coke & fries.The other highlight of promotion was the “Caught Red Handed” campaign. The promotion saw avid consumer collecting Coca-Cola ‘Crown caps’ & sparked a keen response from the public . The emphasis on enjoying Coca-Cola at “Iftar” with friends & family. Coca-Cola & Mc Donald’s Coca-Cola & key account of MC Donald’s launched the “we go together” joint promotion to reinstate amongst consumers a real sense of the affinity that. Sprite. the new under-the-crown promotion “Nikla Kiya?”(What have u won) was launched in collaboration with Chimera Nokia. marketing the popular 1. both shares globally. magical “dream vacation” to numerous “wonder destination” throughout the world on every purchase of a 250 ml RGB bottle of Coca-Cola. SINGAPORE & CAIRO along with airfare & four nights free stay in these dream lands. & Fanta. Coca-Cola & Nokia In August 2001. rendering an outstanding testimonial campaign in the second phase. HOLLYWOOD.The promotion gave consumer a chance to win thousand’s of Coca-Cola branded Nokia 3310 cellular phones on every purchase of 750ml RGB bottle of Coca-Cola . These days this scheme is very popular among the people. Caught red handed become a huge success among the masses as it was one to one interaction between the Coca-Cola brand & the consumers. Branded Coca-Cola with ‘caught red handed’ team in them went to Lahore & Karachi for three days.5 liter PET bottle & the 1 liter bottle with a super price-off promotion. Coca Cola TV Mazza The coca cola new campaign is coca cola tv mazza.Sprite. Coca-Cola went ahead with the idea of giving consumer chances to win fabulous. & Fanta. with target that anyone being caught drinking Coca-Cola will be awarded a nokia 3310 mobile phone & if someone is caught talking on a nokia mobile will win free supply of Coca-Cola. it is a utc scheme in which people are getting television sets of different sizes.Coca-Cola Ramzan Campaign A very special occasion for the people of Pakistan Ramzan saw another very special CocaCola’s promotion. Coca-Cola Wonder of the World Promotion In July 2000. highlighting the winners over whelmed in the magical delight of their favorite beverage Coca-Cola. This activity helped billed confidence and brand loyalty among core consumers.The promotion gave consumers a chance to win free drink.

diet coke.Fanta & Sprite Launched In November 2000moving on to the Sprite & Fanta brands. On the Go Packs” flaunting the innovative packaging convenience. the consumers in Pakistan witnessed a soft launch in essence. the company has successfully launched its first new product. which are the key accounts of the company as this has been never done before in Pakistan. 41 . Diet Coke After the acquisition of the individual local franchise bottling facilities in 1996. The was linked with three fashion shows as Diet Coke is related to fashion & fitness. The Coca-Cola Company declared the new “NonReturnable” bottles of Sprite & Fanta as the “New. Fanta & Sprite are sure to enjoy considerable success in Pakistan. for the first time in almost 3 years. but the major hit was thematic fashion shows in restaurants.

• Now young generation has a trend to drink a coke 2 regular bottles at same time. • According to the survey. conducted by the international firm Pakistani people like little bit sweeter cola drink. we come to the conclusion that the marketing strategy of Coca Cola is working for them and the product is gaining popularity among youth day by day. So for this coca cola company should produce their product according to the local demand. 42 .CONCLUSION After thorough research. which are following. • Marketing team should try to increase the availability of Coke in rural areas. RECOMMENDATIONS After completing our project we have concluded some recommendation for the coca cola company. • They should also focus the old people. • Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. so providing more satisfaction to them company should introduce ½ liter disposable bottle.

In the “political variables” most of the things are related to Governmental activities. Revolution at Coke Strongly Effected ++ Some what Effected + No Effect +− NE Some what Effected − Strongly Effected −− YES NE NE YES Conclusion Of Political Analysis: As far as the above table is concerned it could be seen that there are very little chances of “political variables” to effect the coke’s production and selling behavior. they don’t leave any good or bad impact in the Industry of coke. which we will discuss in our report.PEST ANALYSIS OF COCA-COLA There are four variables. So it affects slightly the revolution of Coke. they are: POLITICAL VARIABLES Political variables Effects of government regulations & deregulations Effect of environmental protection laws if any Import and export regulations Effect of political conditions in certain countries of Coke Any effect of election. 43 . And the second thing in political variables which effects Coke is “elections & military take over” Because in the days of elections and marshal law’s condition the countries production in any field is declined. And there are some exceptional things like: “environmental protection laws” they some what effect the industry of Coke. So “political conditions” are over all leave neutral effects on coke’s industry. military take over. So it impact good for the Coke’s reputation. So. From last two years Government is going to be really very much conscious about the environment. But after making the adjustments in plants and applying the proper way of wastage the chances of being affected by the “protection laws” are going to be diminished.

44 . Then it would impact highly negative. The Coca-Cola system in Pakistan employs 1. When we draw the conclusion of “economic variables”. Coke is not the out of question. It also impacts highly negative in the Coke’s production.S). Economic factors are those actors who effect the production of any industry. the Coca-Cola system in Pakistan has involved over $130 million (U. And inflation is also not a good position for any country’s production point of view. During the last 2 years. incident at Coke in Pakistan Strongly Effected ++ Some what Effected + No Effect + − Some what Effected − Strongly Effected −− YES YES YES NE Conclusion Of Economical Analysis It could be seen that “economical variables” highly affects the Coke’s resolution. And as a country concerned like “Pakistan” where the unemployment rate is very much high.ECONOMICAL VARIABLES Economical Variables Do soaring interest rates make business task any harder Any effect due to inflation Anything done to reduce unemployment Any effect of 11th September 2001.800 people. Then we come to know that if economic variables are in the favorable position of country then they impact good other wise the impact highly bad. So. If the economic conditions of the country is not that strong and Coke increases its Price in this situation.

particularly those relevant to our business. climate changes. from use of more than $ 2 billion (U. we must use our significant resources and capabilities to provide active leadership on environmental issues. All over the world. educational programs in local communities are our priority. supplies. 45 .SOCIAL VARIABLES Social variables Effects of advertisement of Coke on Public popularity How will do Coke’s contribution affect charity organizations of Pakistan Has rising consciousness of natural resources in people effected your “save environment activities. Here’s a sample of what we’re doing in different communities around the world regarding the conservation of water and natural resources. down to very local neighborhood collection and beautification efforts. we are involved in innovative programs that give hard-working. The Coca-Cola Company is committed to helping people make their dreams come true. ENVIRONMENT A large part or our relationship with the world around us is our relationship with the physical world. We are always innovating to bring you different delicious beverages. Knowledgehungry students books. We’re committed to preserving our environment. While we have always sought to be sensitive to the environment. waste environment education.S) a year in recycling content and suppliers. We want the world we share to be clean and beautiful. places to study and scholarships. Strongly Effected ++ YES YES YES Some what Effected + No Effect + − Some what Effected − Strongly Effected −− CONCLUSION OF SOCIAL ANALYSIS EDUCATION The Coca-Cola Company has always believed that education is a powerful force in improving the quality of life and creating opportunity for people and their families around the world. This same spirit of innovation comes alive in our environment programs. From youth in Brazil to first generation scholars. and environment Management initiatives.

Four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL).it impacts good. As the coke helping in promoting “paperless environment” . The Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one employee from each plant. The Coca-Cola system initiated a famine-relief program to help victims and was the first private-sector company to assist. COMMUNITY INVOLVEMENT: In 2000.The Coca-Cola system in Pakistan operates through eight bottlers. It will resulted in increment of their production through out the country. And though it’s a big industry so it is promoting the trend of paperless environment. because computers are the basic need of any person now a days. Ever year when budget in announced government taxes rates always shoot up. TECHNOLOGICAL VARIABLES Technological variables Have business innovations effectively promoted your business Has the government’s regulations ever hindered in importing technical equipment Does Coke help in promoting paperless environment Strongly Effected ++ YES Some what Effected + No Effect + − Some what Effected − Strongly Effected −− YES YES Conclusion Of Technological Analysis Of course business innovation leaves highly good impacts in the business of Coke. Through computers coke can increase the efficiency of its business and can have up –to-date data about their productions. 46 . As coke use more advance technology in its production process. to be sent on the Holy Pilgrimage to Mecca at the Company’s expense. when eastern Pakistan suffered its worst droughts. And it is giving the way of other industries to come to new technologies and into a new world of business. selected through a draw. This approach of government decreases the profit margin of Coke. As far as the “governmental hindrances” are concerned the impacts highly bad on coke’s production.

They spend billion of dollars on their advertisement. Coca-Cola has always had a close consumer and supplier relationship with its customers. promotions and recreational campaign. we came up with the very interesting report of facts and figures. sportmen and actors have played a very vital role in making CocaCola such a popular beverage. Situated on Raiwand Road. Coca-Cola is no doubt one of the most popular beverage company and its product COKE is one of most consumed cola drink. Lahore plant of Coca-Cola is one of the beautiful plant in Asia. Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough time. Pakistani rock stars. Its entertaining and colorful advertisements have always and will always rock the media.OVER ALL RESULTS OF PEST ANANYSIS After our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited). Coca-Cola has about 2000 employees at Pakistani plants. 47 . CocaCola is a 27% shareholder in the Pakistan market and they don’t want to stop here!! Its target market is to achieve a much higher %age.

concerts and many other social occasions. Coca-Cola is one of the leaders in sponsoring the most important.g. So… “ Jo chaho ho jaye cocacola enjoy ” 48 .CONCLUSION: Coca-Cola no doubt come the heart beat of Pakistanis. Cricket matches. E. Event at the present they are organizing a Basant festival for which they busily organizing stuff. thrilling events.

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