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Submitted To:Mr. Aftab Ahmad (HOD)
Submitted By:Tarique Jamal MBA 3rd sem. 0907270164
IIMT Management College, Meerut (U.P.) India
I Tarique Jamal hereby declare that this project report entitled Marketing Strategies Analysis has been completed based on actual study carried out by me during my internship program at Hindustan Coca-Cola Beveragws Private Limited, Patna.
I am presenting an authentic report of my work to IIMT Management college,Meerut carried out at Hindustan Coca-Cola Beveragws Private Limited, Patna for the partial fulfilment of the requirement of the Master Of Business Administraion degree programme of Uttar Pradesh Technical University, Lucknow.
This research report is original and information, data and fact furnished their in are actual based on study carried out by me.
CERTIFICATE OF ORIGINALITY
This is certify that the Vocational Training Report entitled “Marketing Strategies Analysis”submitted to Hindustan Coca-Cola Beveragws Private Limited,Patna in partial fulfillment of requirement for the award of the degree of Master of Business Administration (MBA), original work carried out by Mr. Tarique Jamaland UPTU Roll No.0907270164 Under my guidance. This vocational report done on (training period June 14, 2010 to Aug 12, 2010) the topic hasn’t been submitted for any other examination & doesn’t form part of any other course undergone by the candidate. ……………………. Signature of Guide Date - / / Name & Designation of Guide .................................................. .................................................. ……………………….. Signature of Std. Date - / / Name & Roll no of Std. ............................................. ..............................................
…………………………….. Signature of Training Incharge V.K.Srivastav
Patna for their kind permission to undertaken its study I am grateful to respected Mr.After completing my IInd semester curriculum. For there moral support and encouragement throughout my project work. I have achieve this training in one of the most esteemed organisation of the country Hindustan Coca-Cola Beveragws Private Limited. Vijay Kumar Singh (HR Executive. 4 . I would like to thanks Mr.Meerut). My gratitude will not be completed without thanking my beloved parents who have been a constant source of aspiration & blessing in my pursuit for studies. which truly reflect their deep insight into the project and the professional touch which is their benchmark. who helped me a lot during this project.in Coca-Cola Beveragws Private Limited). Aftab Ahmad(IIMT Management college. I went for summer training for 8 weeks duration and it bears inspirit of several person. This list will go incomplete without the special reference of the contribution and whole hearted support of manager’s and all other staff and department.
So I am thankful to all the managers of Hindustan Coca-Cola Beverages Private Limited. Hence I am presenting the training report Marketing Strategies Analysis. I got training in the study of Marketing Strategies Analysis. Financial department is also being considered. Patna. Patna. I completed my summer training for 8 weeks. All the mistakes and problems had been carefully removed with the help of all the managers. Tarique Jamal MBA (IIIrd Semester) TABLE OF CONTENTS CONTENTS 5 .PREFACE I did my summer training in Hindustan Coca-Cola Beveragws Private Limited.
Major segments: c. History. Marketing strategy: l. Expanding target market i. Strategies of getting goals i. 3. 7. Expectations for the coming year: m. Threats from competitors: g. Pepsi b. Some basic information regarding marketing of coke a. Coca Cola. Market mix of Coca-Cola 11. b. c. The Mission Statement of the Coca Cola Company 6 . • Market share. Major competitors: e. Mission statement 2. Threats and opportunities for price: j.e. Factors effecting sales: d. Bottlers owned by Coca cola 13. 12. Financial assets. Coca Cola Pakistan. Products. Marketing strategies 17. EXTERNAL MARKETING ENVIRONMENT 6. Management. • Methodology 15. Financial report.1. Strategies of quality: f. Market share. 9. Introduction. “high profits”: k. • Financial report. Targets that would like to attain: h. 4. 5. Pest analysis . • Products. Target market: b. 10. 8. Dividends and Cash Plan. History. a. 14. Major Competitors a. How coke determine the yearly budget: 16. Strategic planning. Coca Cola International.
We will think and act locally. whether that customer is a 7 . maximize our long-term cash flows.Our mission statement is to maximize shareowner value over time. our bottlers. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. expand our share of worldwide nonalcoholic ready to drink beverages sales. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. In order to achieve this mission. The ultimate objectives of our business strategy are to increase volume. 2. We will be the best marketers in the world. and create economic value added by improving economic profit. 6. and our communities. Consumer demand drives everything we do. 5. including our consumers. We will lead as a model corporate citizen. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day. we must create value for all the constraints we serve. We strive to understand each customer’s business and needs. Brand Coca Cola is the core of our business 3. our customers. 4. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses.
8 . 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. We achieve this when we place the right products in the right markets at the right time. There are nearly 6 million people in the world who are potential consumers of our company’s product.sophisticated retailer in a developed market a kiosk owner in an emerging market.
John Pemberton . However the bottling business began in 1899 when two Chattanooga businessmen.COCA COLA INTERNATIONAL HISTORY: Coca-Cola Enterprises. is a young company by the standards of the Coca-Cola system. The Coca-Cola bottling system continued to operate as independent. established in 1886. Benjamin F. began to produce Coca-Cola syrup for sale in fountain drinks. The Coca-Cola Company merged some of its companyowned operations with two large ownership groups that 9 . The Coca-Cola Company traces it’s beginning to 1886. secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. local businesses until the early 1980s when bottling franchises began to consolidate. Whitehead . Dr. Thomas and Joseph B. when an Atlanta pharmacist. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. In 1986.
4 billion.000 in 1986. the senior management team of Johnston assumed responsibility for managing the Company. On an annual basis. Inc.Unit case sales had climbed to 1. Lupton franchises and BCI Holding Corporation's bottling holdings. (Johnston) created a larger. stronger again consolidation. The Company offered its stock to the public on November 21. In December 1991. the John T.50 a share. 1986. As part of the merger. successful restructuring in 1992. They operate in more than 200 countries & markets more than 2800 beverage products. they employ approximately 90500 10 . and total revenues were $5 billion The Coca-Cola Company is the world’s largest beverage company. at a split-adjusted price of $5. to form CocaCola Enterprises Inc.were for sale. and began a dramatic. total unit case sales were 880. Headquartered at Atlanta. Georgia. a merger between Coca-Cola Enterprises Company. and the Johnston helping Coca-Cola accelerate Bottling bottler Group.
11 .employees all over the world. It is often referred to simply as Coke or (in European and American countries) as Cola or Pop.
Chairman Board of governors Vice Chairman and chief operating officer Executive Vice Presidents Senior Vice Presidents Vice Presidents 12 .MANAGEMENT: The hierarchy of Coca Cola Company is as follows.
Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume. Coca Cola enjoys the largest market share. Thus they are increasing their market 13 . (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 This shows that the market of the company is geographically vast and it is controlling it with great success. In 2002.MARKET SHARE: Being the biggest company in the soft drink industry. 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. This company controls about 59% of the world market. the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. GLOBAL MARKET SHARE: The following table can show the worldwide operating segments.
This is only due to the innovative marketing programmers. There is a worldwide volume increase by 4% with strong international growth of 5%. The operation income earned by Coca Cola Company can be illustrated by the following pie chart.day by day. The data of the global unit sale of the Coca Cola Company can be represented by following chart. (Figure) This strategy has worked a lot and it has helped them to become the World’s leading Soft Drink Company. which has deepened the 14 . (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 global unit sale of the Coca Cola Company is increasing from the last ten years.
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. 15 .relationship of the customers and Coca Cola.
with closer coordination of operations including customer relationships. the company had worked with their bottlers to turn good intentions into reality by improving the system economics. logistics and production.In 2002. The main reason behind this relationship is to continue realizing shared opportunities for growth. 16 . The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners.
government changes and 17 . competitive product and pricing pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors. taxation requirements. without limitation. The government plays a role within the operation of manufacturing these products in terms of regulations.EXTERNAL MARKETING ENVIRONMENT (PEST ANALYSIS) Political Analysis for Coca-Cola Non-alcoholic beverages fall within the food category under the FDA. (including tax rate changes. The following are some of the factors that could cause CocaCola company's actual results to differ materially from the expected results described in their underlying company's forward statement:• Changes in laws and regulations. including civil unrest. • Political conditions. There are potential fines set by the government on companies if they do not meet a standard of laws. especially in international markets. These include. • Changes in the non-alcoholic business environment. including changes in accounting standards. new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions.
Economical Analysis Being flexible and willing to change to satisfy consumers’ needs.restrictions on the ability to transfer capital across borders. As Coca-Cola has expanded over the decades or even nearly a century. No doubt of the remarkable experience it has. 18 . it is still very committed to local markets. Governments of some Arab nations boycotted Coca-Cola’s products due to a political dispute and discontented with the company for maintaining distributors in Israel. has enabled Coca-Cola to exploit the economies of scale that was gained by its global marketing and at the same time making its products appeal to local taste. Political structure and legal considerations also have impinged on Coco-Cola Company’s strategies. the company has benefited from the various cultural insights and perspectives of the societies in which business is done. which these have earned the company an enormous profits quarterly.
consumers will recover their confidence over the next year. Now.S. Consumers are now resuming their normal habits. market share of more than 50 percent in beverage industry globally and about 70 percent of its income comes from countries outside United States. the estimated brand equity of Coca-Cola is $84billion. 2001. They believe that with lower inflation still to come. going to the malls. 126. Before the attacks on September 11. As researching for new products would cost less the CocaCola Company will sell its products for less and the people will spend as they would get cheap products from Coca-cola. car shopping. things changed. 19 . and where and how they like to drink it. Every 10 seconds. and eating out at restaurants. However. choose to reach out for one of The Coca-Cola Company brands. Previously the U. economy was strong and nearly every part of it was growing and doing well. many are still handling their money cautiously. the United States was starting to see the economy recover slightly and it is only just recently that they achieved the economic levels.to paying attention to what people from different cultures and backgrounds like to drink. to remain competitive and to develop more new drinks to satisfy its markets. every single time.000 people in the whole world. However. and it is the company’s mission to make that choice exciting and satisfying.
English tea. Coca-Cola developed over 30 new drinks for the Japanese market. In China.Social Analysis for Coca-Cola Foreign environment factors have influenced the CocaCola’s strategies in international marketing. Language is one of the aspects of culture that marketers must take care of. in term of translating product name. slogans and promotional messages so as not to convey the wrong meaning. preferences and fulfill one’s needs. which inclusive of Asian tea. “bite the wax tadpole”. It launched a fruit juice drink called Tian Yu Di (Heaven and Earth) specifically for the Chinese market with planning of introducing the market with a Chinese iced tea and soy milk drink. Changes are necessary in international marketing for consumer’s products. Culture has a tremendous effect on people’s preferences and perception. After discovering that Coke did not appeal as much to Japanese consumers. Coca-Cola has continued changing. Coca-Cola has also begun the similar strategy of introducing beverages developed for the taste buds of local market. as it is important that the products suit one’s taste. coffee and fermented-milk drink. 20 . Coca-Cola did not look much into this aspect when entering into the markets of countries like China and Taiwan as the literal translation of Coca-Cola in Chinese characters mean. improving and developing new drinks to appeal to local tastes.
There is a large population of the age range known as the baby boomers. Also. Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition.S. This has affected the non-alcoholic beverage industry in that many are switching to bottled water and diet colas instead of beer and other alcoholic beverages. 21 . The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life.Many U. time management has increased and is at approximately 43% of all households. citizens are practicing healthier lifestyles. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages. Since many are reaching an older age in life they are becoming more concerned with increasing their longevity.
Yorkshire in 1990. marketing and promotional programs. The Wakefield factory has the technology to produce cans of Coca-Cola faster than bullets from a machine gun 22 . Europe's largest soft drinks factory was opened by CCE in Wakefield. They make some products look attractive. This helps in selling of the products. This advertising makes the product attractive. • Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier to carry and you can bin them once they are used. • As the technology is getting advanced there has been introduction of new machineries all the time.Technological Analysis for Coca-Cola Some factors that cause company's actual results to differ materially from the expected results are as follows: • The effectiveness of company's advertising. Due to introduction of this machineries the production of the Coca-Cola company has increased tremendously then it was few years ago • Coca-Cola has six factories in Britain which use the most state-of the-art drinks technology to ensure top product quality and speedy delivery. This technology is being used in media to sell their products. The new technology of internet and television which use special effects for advertising through media.
MARKET SHARE BY AREA: Coca Cola is the world-renowned soft drink and the company is currently operating through out the world. The operation review according to the segments is as follows. Operation Review (2002 worldwide unit case volume by operating segment) NORTH LATIN AMERICA AMERICA 30% 25% EUROPE & MIDDLE EAST 22% ASIA AFRICA 17% 6% 23 .8 billion. The world wide total is about 17.
we can find out that the customers of Coca Cola are increasing which is shown by the company’s per capita income. sold beverages.NORTH AMERICA LATIN AMERICA EUROPE & MIDDLE EAST ASIA AFRICA So the volume is least in the Africa and most in the North America. Unit case equals 24 eightounce servings. as estimated by the Company based on available industry sources. which shows the non-alcoholic beverages consist of commercially. (Table) 24 . The country column is derived from The Company's unit case volume while the industry column includes nonalcoholic ready-to-drink beverages only. The data about the market share of this company area wise is given in the following table. The above table shows the geographical earning of the Coca Cola Company and from this data. as estimated by the Company based on available industry sources. The column.
Through an intense focus on Coca-Cola.Country Unit case growth 10 year 5-year compound compound annual annual growth growth Compan y Industry Compan y Industry 2002 annual growth Compan y Industry Nonalcoholi c Drinks 2002 Compan y share All commercial Beverages 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 In Asian population. is approximately 3.2 billion and the average consumer enjoys close to two servings of our products each month. the company has achieved volume growth of 10 percent in 2002. innovation and new beverages. which is the satisfied customer of Coca Cola. With developing economies and 25 .
populations. Japan has the highest percentage. sales of Coca-Cola increased 6 percent. India and Bangladesh are those countries where the average consumption is increasing day by day. which is about 29%. Among others. Pakistan. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart. Among the countries of Asia. this region has strong long-term potential. 26 . In China. led by Coca-Cola. which can increase the growth of the consumption of Coca Cola by the people of Asia. (Figure) So the company is emphasizing more in this area and is trying to develop a strategy. and the company is building an exciting family of beverage brands in addition to expanding the popularity of our core brands. for example.
5% 12.889 3.806 16.2 1% 45% 82% 82% 82% 15% 24% 6% 108% 12% 5% 2% . (Table) Year Ended December 31.FINANCIAL REPORT: This company is financially very strong.691 2. the company is still surviving the ups and down of the business world. It is due to the strong finances. (In millions except per share data.147 26.585 (779) (1.177 0.6% 38.9 5. The financial report of Coca Cola Company of the year 2001 and 2000 along with the percentage change is as follows.882 0. ratios and growth rates) 2002 2001 Percentage change 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 27 20.352 3.092 5.601 1.685) (133) 2.601 4.791) (277) 3.3 19.5 5.1% 11.110 (963) (1.2% 23.882 3.969 1.
manufacturing and intangible assets. These charges are partially offset by a gain of $.A. • $. 28 . • $.01 per share after income taxes related to incremental marketing expenses in Central Europe. and $.02 per share after taxes.8 17. • $.24 per share after income taxes related to an organizational Realignment.04 per share after income taxes related to benefits from a tax rate reduction in Germany and from favorable tax planning strategies.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. which was recognized on the issuance of stock by Coca-Cola Enterprises Inc. • $.Worldwide 17. one of the equity investors of this company. 2002 basic and diluted net income per share includes the following charges: • $.05 per share after income taxes related to the settlement terms of a discrimination lawsuit.1 4% 2002 basic and diluted net income per share includes a noncash gain of $.05 per share after income taxes related to the merger of Coca-Cola Beverages plc and Hellenic Bottling Company S.
economical and systematic method of acquiring additional shares of our common stock. 76 percent of the Company's shareowners of record were participants in the Plan. In 2002.000 per year. The Plan provides a convenient.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. At year-end. shareowners invested $36 million in dividends and $31 million in cash in the Plan. 29 . All shareowners of record are eligible to participate. Shareowners also may purchase Company stock through voluntary cash investments of up to $125.
The statistics is as follows. There is a constant increase in every aspect when we compare the statistics of 2001 and the statistics of 2002. 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.2 billion 87% 13% 72. (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 4.000 2.000 54.COMPANY STATISTICS: The statistics of this company is impressive. which shows the success of Coca Cola brands.3% 3% Flat 1 $1.4 million 25 385 53 463 80% 46 44% 52% 4% 63% 3 6.95 (18)% $0.000 52.8 billion 87% 13% 67.3 million 25 361 50 436 72% 46 45% 51% 4% 59% 3 6.97 6% 2001 3.18 8% 30 . Coca Cola Company is increasing its volume day by day. This is because.000 2.39 9% $1. The expansion of this company.8% ½% 2% ½% $2. results in the percentage change in the statistics of the two years.
• • Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable securities. depreciation. and amortization. 31 .Coverage of North American Can/bottle volume 83% 74% 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. taxes. and other non-operating items.
Major brands of coca cola • Coke • Sprite • Fanta • Diet coke • Coke classic 32 . which are currently in use through out the world. the marketing team considers the culture of the country.PRODUCTS: There are different brands of the Coca Cola Company. This company not only deals in the carbonated drinks but also other drinks. While launching its product.
making it the second biggest contributor to the growth of the company after carbonated soft drinks. Backed by a strong network of bottling partners through out the United States. By the end of 2001. 33 . The company has successfully applied it’s approach to brands in several key markets. Dasani.The over all volume of this company is as follows. Mori No Mizudayori in Japan. including Ciel in Mexico. Dasani became the nation's fastest-growing water brand. This strategy has paid dividends. it’s bottled water volume exceeded 570 million unit cases. Ciel and Bonaqua each achieved sales of over 100 million unit cases for the year. In Eurasia. Coca-Cola Company also successfully energized a major piece of its beverage strategy—water. (Figure) The commitment of the company is to devote resources to water only in markets where it expects profitable growth. the entire Turkuaz brand team worked together to launch Turkey's first purified water brand. Three of the water brands. Bonaqua in Russia and Kinley in India. This year.
A. Also in Japan—where The Coca-Cola Company is the leader in the total tea category. With sales of 46 million unit cases for the year. the renewed and strengthened marketing partnership with Nestlé S. Beverage Partners Worldwide. 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. This partnership combines Nestlé's knowledge in life science.. the second-largest category in the non-alcoholic ready-to-drink segment—it launched Marocha Green Tea. Marocha Green Tea is the fastest-growing product in the fastestgrowing category: green tea.In 2001and 2002. research and development with the expertise of Coca Cola Company in brand building and distribution. 34 . At the same time. the company grew Georgia coffee in Japan by 3 percent through award-winning marketing in a category that was flat for the year. began operations in 2001. the company has also made good progress in coffees and teas.
In key markets. Mexican families have lunch together at home. The average Mexican household drinks two-and-a-half liters or more of soft drinks during that break.Know the most recognized word on the planet after “OK”! Among the soft drinks Fanta and Sprite become successful along with the major brand Coca Cola and Diet Coke. while a two-liter bottle was the largest available package. the company has created new packaging sizes to satisfy consumer demands. So the company 35 . Increasingly.
This year. The result—diet Coke with lemon—contributed to volume growth of 4 percent for the number-one diet. contributing to the sale of nearly 1. With brands such as Minute Maid. the company re-launched its global sports-drink business. In the United States. the company "bottled" the concept. positioning and marketing. Simply Orange and Disney juices and juice drinks in the United States. This larger bottle will complete its nationwide rollout in 2002. innovation and new beverages. Hi-C. and festival packaging helped drive a 6 percent volume increase for Coca-Cola. it has achieved volume growth of 10 percent in 2001. Kapo in Latin America and Bibo in Africa.5 billion unit cases of Coca-Cola in Mexico this year. The company increased its two largest bottle sizes during the 2001 holidays. sales of Coca-Cola increased by 6 percent. packaging. The packaging innovations do not just involve resizing. Qoo in Asia. Soft drink in North America: diet Coke. Revitalized in the United 36 . Coca-Cola is an integral part of holiday celebrations and the family gettogethers that accompany such events. The results speak for themselves: it’s global sports drinks. In China. In China. The company has also responded to consumers' changing fashion styles with new bottles.introduced a convenient 2-½ liter bottle to select regions. nearly double the growth rate of the worldwide sports-drink category. led by Powerade and Aquarius. Through an intense focus on Coca-Cola. grew by 13 percent in 2002. investing in new products. recognizing that consumers often enjoy their diet Coke with a slice of lemon.
the company developed Fountain. a total beverage dispensing system that is more flexible and more reliable. brand and graphic customization and improved reliability. The commitment of the company to packaging innovation also resulted in new initiatives for our fountain business.States. including Great Britain. In the United States. 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. Germany and Spain. easy to upgrade technology. a channel through which many consumers enjoy Coca-Cola. 37 . The company launched 27 products in 2001. as well as in Mexico and Latin America.
and with a minimum of comparison and buying effort. The marketing mix is divided up into 4 parts. although thirst is what is needed to be satisfied and that is the core benefit. we will look at how Coca-Cola has used their marketing mix. On the productservice continuum we see that a soft drink provides little service. However. It has a uniquely 38 1. The product is convenient. Lift. thus making full use of the market to maximize sales. some want more and others want less. price. Soft drinks satisfy the need of thirst. that is . people are always different. promotions and place. Therefore Coca-Cola has made allowances for that by providing many sizes. We also have particular tastes.MARKETING MIX OF COCA-COLA Firstly. apart from the convenience. immediately.The appearance of the product is eye catching with the bright red colour. and again they have provided several options. So. Coca-Cola has developed several different flavours and sizes as mentioned above. .bought frequently. we are receiving other benefits in the taste and size. but also several brands such as Sprite. Fanta and Diet Coke which increase the product line length. Product: The product (Coca-Cola soft drink) includes not just the liquid inside but also the packaging. product.
The cans are also light and safe. and creates a nicer & more futuristic look. diet Coke caffeine free diet Coke. diet Cherry Coke. and are not too heavy to casually walk around with. The bottles are light. Sprite. Cherry Coke. Sealed caps ensure that none of the "fizz" is lost. caffeine free Coca-Cola. so they won't crack or leak. The quality of the soft drink is needed to be regularly high. Coca-Cola classic. diet Vanilla Coke. Fanta brand soft drinks. diet Sprite Sprite Remix 39 . diet Coke with lemon Vanilla Coke.designed bottle shape that fits in your hand better. with flexible packaging. The product range of Coca-Cola includes: • • • • • • • • • • • • • • Coca-Cola.
During the maturity stage.S. Growth 3. Maturity 4. The markets where Coke is a dominant player are United States of America. Europe and Asia. all helping increase consumption. Also Coca-Cola went from 6-oz. glass bottles to 8-oz. Vanilla Coke and Diet Coke. cans to plastic liter bottles. sales have increased by 1. in U. According to Coca-Cola's 2001 annual report. To add a little variation Coca-Cola took the Coca-Cola Classic and added variations to it. This percentage has no comparison to the high level of growth Coca-Cola enjoyed during its growth stage. This maturity stage lasts longer than all other stages. Coca-Cola is currently going through the maturity stage in Western countires.02% compared to last year. it is still in the growth phase. Africa. Management has to pay special attention to products during this stage of the product life-cycle. products usually go through a slowdown in sales growth. including Cherry Coke.A & Europe it has reached maturity stage where it can’t expand its market more but if we consider Asia. Decline. Introduction 2. There is a vast difference in terms of above given phases for example. COCA-COLA 41 .Product Lifecycle of Coke: Product life cycle has four phases 1.
Cola has had to remain tremendously fluent with their pricing strategy. The relationship between Coca-Cola & Pepsi is a healthy one that each corporation has learned to appreciate. They have had the privilege of a worthy competitor constantly driving them to be smarter. faster. the sharper we have to be. If the Coca-Cola Company didn't exist. A quote from Pepsi Co's CEO "The more successful they are." states it simply. Coca. Throughout the years Coca-Cola has made many 42 . we'd pray for someone to invent them. and better. Price: Like any company who has successfully endured a century of existence.2.
As cola consumption has decreased in the US colas have come to realize the untapped international market. After annihilating the low price store brands. It creates consumer perceptions and values. Coca-Cola products would appear. which was contrary to policy in America). This low price strategy was not unfamiliar to Coca-Cola. to have the most expensive range of soft drinks common to supermarkets. When people buy Coca-Cola they are not just buying the beverage but also the image that goes with it. Coca-Cola decided to drop their prices slightly. This can be for several reasons apart from just to cover the extra costs of promotions.Cola planned to use the lower price point to penetrate new cities that were especially price sensitive. Both Coke & Pepsi utilized a low price strategy in the early 1990s. Shortly thereafter. on the shelf. In 2003 both Coke and Pepsi had a solid presence in India and had each introduced a 300mL bottle.pricing decisions but one might say that their ultimate goal has always been to maximize shareholder value. at almost double the cost of no name brands. therefore to have the price higher reiterates the fact that the product is of a better quality 43 . The carbonated soft drink market in India is nearly 37% of the total beverage market there. Coke chose to reposition itself as a "Premium" brand and then raise prices. but focused on the reduced price point of their 200mL container. Coca. In order to grab market share Pepsi began to drop prices (even with summer approaching. for which no name brands do without.
The type that is used by Coca-Cola Company is manufacturersponsored wholesaler franchise system. Place: Coca-Cola entered foreign markets in various ways. licensing and franchising. Coca-Cola also directly exports its merchandise to overseas distributors and companies.than the rest and that the consumer is not cheap. Besides beverages and their special syrups.5. Other than exporting. This is known as value-based pricing and is used by many other industries in attracting consumers. an affordable amount on the pockets of the rural audience. the average income of a rural worker is Rs. the company markets internationally by licensing bottlers around the world and supplying them with the syrup needed to produce the product. The most common modes of entry are direct exporting. There are different types of franchising. 3. In India.500 a month. It is very 44 . Coca Cola launched a 200 ml bottle for just Rs.
Coca Cola has managed their company’s marketing and sales strategy within channels. small supermarkets and on-premise fountain accounts. Mass Merchandisers and Club stores.comparable to licensing but the only difference is that the finished products are sold to the retailers in local market. drug stores. The Coke Company operates three primary delivery systems for its business channels: • Bulk delivery for the channels of large Supermarkets. Have you ever considered the significance of the Coke vending machine to the success and profitability of the Coca Cola company? This channel is direct to consumer and vending machines often have little to no competition and no trade or price promotions. • Full service delivery for its full service vending customers. Key Channel Listing • • • • • Supermarkets Convenience Stores Fast Food Petroleum Retailers Chain Drug Stores 45 . • For smaller channels Coke does advanced sale delivery for convenience stores.
Historically. The delivery employee was responsible for pulling the required products off a side load truck at each customer location to fill the customer's order. NAVRESSO and DECA • Vending In 2006. This is a huge investment for Coke. The company works through independent bottlers of Coke. Coke began using a new CooLift® delivery system in 2006 in a portion of the Company's territory which involves pre-building orders in the warehouse on a small pallet the delivery employee can roll off a truck directly into the customer's location.S. the Company loaded its trucks at a warehouse with products the route delivery employee would deliver. The CooLift® delivery system involves the use of a rear loading truck rather than a conventional side loading truck. DOD Military Resale retail commands: AAFES. 46 . Coke will continue to rollout this program over the next several years since they expect such significant savings and more efficient deliverys. They work in coordination with the Coke company which produces the 'secret formula concentrate' and ships to the distributors and bottlers for final processing and packaging prior to shipment to the stores.• Hotels/Motels/Resorts • Mass Merchandisers • U. the Company began changing its delivery method for its route delivery system.
you don't even need to go to a store to buy a drink. The company produces concentrate. and usually make up the greater proportion of options to buy. produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. which is then sold to various licensed Coca-Cola bottlers throughout the world. distribute and merchandise Coca-Cola in cans and bottles to retail stores and vending machines. For a FMCG it is important that they can be found and purchased easily. With many automatic Can machines located in many sports stadiums and shopping malls. In supermarkets and convenient stores. which is the largest single Coca-Cola bottler in North America and Western Europe and food service distributors. This increases their market exposure through effective use of the retailers. Coca-Cola products are always easy to identify. The bottlers.Coca-Cola floods all possible retailing stores in satisfying the third part. Such bottlers include Coca-Cola Enterprises. 47 . who hold territorially exclusive contracts with the company. The bottlers then sell. This greatly enhances the speed of purchase. place.
like Coca-Cola Enterprises. The Coca-Cola Company owns minority shares in some of its largest franchises. Since independent bottlers add sugar and sweeteners. which it sells to various bottlers throughout the world who hold Coca-Cola franchises for one or more geographical areas. which the bottlers then sell and distribute to retail stores. 48 . Coca-Cola Amatil. vending machines. Coca-Cola Hellenic Bottling Company (CCHBC) and Coca-Cola FEMSA.The Coca-Cola Company only produces a syrup concentrate. The bottlers produce the final drink by mixing the syrup with filtered water and sugar (or artificial sweeteners) and then carbonate it before filling it into cans and bottles. to cater for local tastes. restaurants and food service distributors. but fully independent bottlers produce almost half of the volume sold in the world. the sweetness of the drink differs in various parts of the world.
49 . • Earnings per share grew by 82 percent. 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. • The company has generated free cash flow of $3. as the strategy worked which resulted in making Coca Cola Company the world’s leading company. In 2001.1 billion.STRATEGIC PLANNING In the year 2002. up from $2. a clear indication of its underlying financial strength. the company had a great success.8 billion in 2000. 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. • Return on capital increased from 16 percent in 2000 to 27 percent in 2001. The marketing strategy for the year 2002 is as follows. The strategy for the future of the company is very straightforward.
• Grow system profitability and capability together with our bottling partners. • Direct investments to highest potential areas across markets. led by CocaCola. • Drive efficiency and cost-effectiveness everywhere. • Serve customers with creativity and consistency to generate growth across all channels. 50 . • Selectively broaden the family of beverage brands to drive profitable growth.• Accelerate carbonated soft-drink growth.
1990-2002 51 . aids digestion”. in 2001. is derived from the two of the principle ingredients.would entertain the listener with the latest musical selections rendered by violin or piano or both.MAJOR COMPETITOR PEPSI INTERNATIONAL HISTORY PepsiCo is a world leader in convenient foods and beverages. Pepsin and Kola Nuts. including Gatorade. The new name. “Pepsi Cola”. invigorating. At that time. Gatorade/Tropicana North America and PepsiCo Beverages International. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company. manufacturer and marketer of ready-to-eat cereals and other food products. It was first used on the August 28.000 employees. Bradham’s advertising praises his drink as “Exhilarating. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. and Quaker Foods North America. the beverage businesses of Pepsi-Cola North America. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International. but the corporation is relatively young. with revenues of about $27 billion and over 143.
The plant operating here is Riaz Bottlers (Pvt) LTD. They have four filling lines in the plant operating on the three shift bases. This plant was established at Lahore in 1974. Uh-Huh!”. The total capacity of the plant is 30. Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. Outside the United States. This regional office is monitoring all the operations carried out in South West Asia. the popularity of Pepsi increase.000 cases per day. they only entered beverage industry. As in Pakistan. In Asia.With the extensive usage of the stars in the adds. Lipton Co. Pepsi-Cola beverages are available in more than 190 countries and territories. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. 52 . This was done in 1970. “You got the right one baby. They have permanent work force of 750 people and they employee approximately 1000 people more on temporary basis during summer season. They have eleven bottlers covering whole Pakistan. they selected Lahore to make their regional office.The advertisement of the Pepsi changes to. In 1992 Pepsi-Cola formed a partnership with Thomas J. Each shift is of eight hours.
Pepsi’s Products • Pepsi • Teem • Mirinda • Pepsi Max • Pepsi Lemon • Pepsi Blue • Mountain Dew • 7up 53 .
During the last two years.800 people. The CocaCola System in Pakistan employs 1.S.COCA COLA PAKISTAN The Coca-Cola Company began operating in Pakistan in 1953. The remaining two plants. Gujranwala. four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). Fanta and Sprite are the brands in Pakistan. The CCBPL plants are in Karachi. Sialkot.000 customers/retail outlets.) 54 . The Coca-Cola System in Pakistan operates through eight bottlers. independently owned. Hyderabad. The Coca-Cola System in Pakistan has invested over $130 million (U. Rahimyar Khan. Faisalabad. are in Rawalpindi and Peshawar. The Coca-Cola System in Pakistan serves 70. Coca-Cola. Multan and Lahore.
then we successfully nurture and protect our brands. their basic segments are those people who take this drink regularly. 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. 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. 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. When we bring refreshment. 55 . TARGET MARKET Coke’s commercials basically based on young generations. particularly Coca-Cola. So. So. solid and timeless. joy and fun to our stakeholders.PROMISE OF COKE The basic proposition of our business is simple. value. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business.
So the decreasing per capita income effects badly in selling and production of this soft drink. This is major factor that affects the sale of this soft drink. • Per capita income • Competitors • Weather Per Capita Income First we will discuss about “ Per capita income”. So the disposable incomes of the people are coming down. 56 . and education and basic necessities and after that when they get extra money they think about this soft drink . Here we are discussing three major factors which effects coke. Because which every passing year budgets are becoming very strict and tight in order to purchase things. utilities.FACTORS EFFECTING SALES There are so many factors. which affects the sale of coke. They spend heavily on rents.
they don’t care before drinking that whether it is “Pepsi” or “coke”. Weather Weather is the third major factor in effecting the Coke’s selling. They don’t actually differentiate between these two brands in order to their tastes. coffee. Consumers basically drink what they get. This is underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%. They believe on “WHAT COLD THEY SOLD” Consumer’s availability in brands is basically works like: Push availability 57 .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. tea are the competitors. In other words. 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. MAJOR CUSTOMERS NEED First of all the majority don’t care that what they are going to have.
They have maximum number of coolers and freezers in the market.Pull consumer’s demand. 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. They provide this infrastructure free of cost just to provide child coke to their customer. 58 . For this reason Coca-Cola have provided their coolers and freezers in the market. if not then they immediately change or repair it. which they want to be purchase.
Fun time Though these strategies there could be better understanding and better connection with the public. new coming AMRAT Cola. When people watch cricket 3. Price is the major threat. they believe that RC Cola. But Coca Cola thinks in a different way. These are the “key consumption”.MAJOR COMPETITORS Consumers firstly decide that they are going to have a soft drink. Like they compete Coke with Pepsi and Sprite with 7up and team . and all juices.So the major competitor of Coke is Pepsi. Because when the price go higher people go for the substitute of “coke” i. STRATEGIES OF QUALITY After Micro and macro analysis Brand “coke” is primarily role 1. Pepsi. THREATS FROM COMPETITORS Threats are well planned. even they take water and tea as their competitors. When they motivate to any other brand or on Coke it’s in instinct basically that based on messages derive certain feelings. Through commercialization 4. Then they compete brands with each other. Enhance competition moments 2. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink. 59 .e.
In short it all depends on customer’s perception. There are three major ways of making money • Over night profit • Windfall profit • Ethical and un-ethical ways 60 . 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.And when price goes down they think that there is must be some thing wrong in it.
So. there is different kind of profits. They believe on this quote “ Every thing is fare in love and war”. They are the extras profit. When the consumption the consumption is on boom. Ethical And Unethical Ways Profit can also get through ethical and unethical ways. EXPANDING TARGET MARKET In last 2 years Coke has come back in aggressive manner. • Consumer has choice • Attractive brand name • Brand differentiating 61 .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. Some profits stays for some time like “over night profits” and some just come and go like “wind fall profits”. This could be got my increasing sales volume Windfall Profit Can be windfall profit.
62 . So. Coca Cola’s Brand Coca cola is “US” brand. In contrast to Coke they believe on individual struggle.Consumer Has Got Choice Now the consumer has got choice. They use the temperament of “ME”. because Coke is the name. Brand Differentiation Now different companies have got different brand names. being people together and friends are being together. Because they believe in the togetherness. 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. Coca Cola strongly believes that Pakistani temperament is “US” not “ME” Pepsi’s Brand Pepsi’s brand is basically is basically “ME” branded. people can distinguish between brands. So people can better differentiate brands with each other. Because now they know the name of another big brand. which is the most popular after the word “ok”. Two major brands “coke” and “Pepsi” also have brand names.
These are the opportunities through which we can increase the price and can get profits. Then people definitely won’t go for coke. Coke will lose the margin of its profit and can face loss. 63 . Because same problem of substitute. Then there is the tax rate system 15% .In making Budget After paying all these taxes coke has to pay electricity charges. We have to spend on distributions.sales tax 20% . After paying all these expenses Coke’s margin squeezed and consumers have to pay for increasing tariffs. They have the best substitute of Coke that is Pepsi.THREATS AND OPPORTUNITIES FOR PRICE Opportunities If Coke is considered a luxury product.excise duty 27% . Threats There are much more threats in increasing prices. If Coke increase the price lets say 1 rupee.goes to government 03% . So these are the threats in increasing prices.
Some major ways are as follows. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained. How to take part in energetic festivals? Coke is already taking part in the festival like “Basant” since last 3 years.E. • 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. There are so many ways through which Coke can increase the profits. offering different interesting things to attract people towards this product.STRATEGIES OF GETTING GOALS I. this is one of the product of coke. Coke offers different attractive things in their 64 . For example Coke is increasing the number of flavors in “Fanta”. Through advertisements. “HIGH PROFITS” To increase the price is the least thing. How to increase the interest level of consumers? Coke is increasing the interest level of consumers by offering different flavors. which Coke can adopt.
What people want in a beverage is a reflection of who they are. and we never forget it. how they work and play. we're there for you. and diversity. Whether you're a student in the United States enjoying a refreshing Coca-Cola. Coke strives to be a good neighbor. where they live. We are determined not only to make great drinks. or a couple in Korea buying bottled water after a run together. And this year in this year 2002 people were anxiously waiting that what interesting thing coke is going to offer. a child in Peru asking for a juice drink. wellness. 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.festival and through this Coke gained high profit and consumption of coke increased on these occasions. health. consistently shaping our business decisions to improve the quality of life in the communities in which we do business. a woman in Italy taking a tea break. and how they relax and recharge. It's a special thing to have billions of friends around the world. but also to contribute to communities around the world through our commitments to education. 65 .
• Fanta.5 • CANS (standers size returnable bottle) (litter returnable bottle) (no return bottle) or disposable bottle (1. • Diet Coke. And company offers their products in different bottle sizes these includes: • SSRB • LRB • NRB • PET 1. • Sprite.5 pets • 12 bottles in a pack for disposable bottle 66 .MARKET POSITIONING Product Range The total range of Coca Cola company in Pakistan includes: • 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.
And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives. Different Price In Different Seasons Some times Coca Cola Company change their product prices according to the season. 67 . But normally they reduce the prices of their pet bottles or 1 litter glass bottle. So in winter they reduce their prices to maintain their sales and profit. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. And that’s why coca cola seen more in the market. “Seen as sold” They do agreements with a shop keepers and stores to exclusive sale in that stores. by this these retailers and middle man push their product in the market. These stores are called as KEY accounts in their local language.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. Summer is supposed to be a good season for beverage industry in Pakistan.
Sale Promotion Company also do sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share. UTC Scheme UTC mean under the crown scheme. Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eye-catching positions. tv sets. Like once they offer bicycles.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. coca cola often do this type of scheme and they offer very handy prizes in it. This scheme is very much popular among children. cash prizes etc. DISTRIBUTION CHANNELS Coca Cola Company makes two types of selling Direct selling Indirect selling 68 . caps. Normally they keep their freezers near the entrance of the stores.
In this type of selling company have more profit margin. They have almost 450 vehicles to supply their bottles.Direct Selling In direct selling they supply their products in shops by using their own transports. 69 .
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 70 .Indirect Selling They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.
POS Material Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas. 71 .Print Media They often use print media for advertisement. They have a separate department for print media.
And the basic key to attract the consumers is to throw the “money away”. 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.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. And when we take it as a global level it is $ I billion. Coming year is the challenging year for the industry of Coke. EXPECTATIONS FOR THE COMING YEAR Every thing starts from the attitude of consumer’s behavior. For gaining success in coming year they have to have some important things like: 1. 72 . And it will take the 10% of their profits. They have to take lots of decisions that how to increase the production and where they have to spend money. Billboards And Holdings Coca cola is very much conscious about their billboards and holdings. So Coca Cola Company does regular TV commercials on different channels. And positive feeling felling with the brand. Loyal consumers are important for company’s success.
HOW COKE DETERMINE THE YEARLY BUDGET Coke determines its yearly budget by the • Sales volume • Profitability • Target volume 73 . They should also know that how much to do with the promotion activities for brand.2. 3. 4. They should know how much to for the brand activities. Workers should be the brand centric not the promotion centric.
which they want to achieve in a specific time period. 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.if they r getting profits with the high margin. No organization wants to face Loss in their business. So Coke Follow the same thing it has also some goals and targets to achieve in the given time period. To get profit is the first priority of the Coke.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. If industry achieves those goals in that period then for the coming year it increases the volume of the target. Profitability: The second thing through which they determines budget is the “profit” . Otherwise they concentrate on their old strategies. Target Volume: To run the business every industry has some targets. then they definitely want to increase their profits in the next coming year. 74 . Every organization runs on the basis of getting high profits.
His enormous popularity in the country & abroad is supported by CocaCola’s commitment towards providing healthy & fun-filled 75 . It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the beverage industry. This campaign helped Coca-Cola to establish its association with the game & the player. 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. These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board. watched & played game in Pakistan .SALES PROMOTION ACTIVITIES Coca-Cola Cricket Cricket the most sought after. Coca-Cola Concerts Abrar-ul-haq’s distinct style. 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 Coca-Cola brand.the game of cricket has been owned by various brands in the industry for the promotion of their products over a period of time. lyrics & songs have made him an instant hit among the masses in Pakistan. The competition has become tougher & tougher as the time has progressed. Coca-Cola signed a sponsorship agreement with eight of Pakistan’s National cricket players.
76 . 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.entertainment for the youth of Pakistan. the Coca-Cola food mela treated the people of Karachi. The promotion saw the avid families & friends enjoying the delicacies at the restaurants. fun & prizes to be won. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured throughout the country. spread out all over the bustling city’s map. soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar. all resiliently upholding the Coca-Cola identity. to a festive food festival comprising of 50 restaurants. CocaCola’s brand positioning of providing deep down refreshment for the body. Coca-Cola Food Mela With a splash of food.
Coca-Cola’s “GORED” 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. 77 . where Junoon performed. it has been impossible to envisage basant without Coca-Cola. giving the consumer a unique experience which they had never tasted before. Coca-Cola created an experiential musical evening in Lahore. Coca-Cola GO-RED Quenching the thirst of motorist.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 .Coca-Cola added to the carnival atmosphere by making the festival free to enter & decorating all main roads in Lahore with illuminated kites. This program was recorded and one-hour program shown in the national TV for free. served well to promote the Coca-Cola industry. Now “where there is basant there is Coca-Cola”. Coca-Cola Party in a Park In June 2000. 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.10 million households saw Coca-Cola ‘Party in a Park’ while 10 thousand people attended the event. pedestrians & passerby’s during Lahore’s hottest summer season. had children’s parade & held the Coca-Cola kite flying championship during the basant festival.
A treat for the family. Coca-Cola’s 1. a resounding success with tempting discounts. took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits . Coca-Cola Pet Promotion In 1996. Targeting house wives & family home.5 liter Pet bottle.Go out & get some 78 . Coca-Cola launched 1.5 liter Pet contour bottle for the first time in Pakistan.Coca-Cola Shopping Festival Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping festival. The in augural event proved so popular that it is now set to become an annual fixture. great prizes & fire works. Coca-Cola’s PET was offered through a “priceoff” promotion that said………. Liberty marketing Gulberg was a hive of activity during the weeklong shopping extravaganza. live music.
the new under-the-crown promotion “Nikla Kiya?”(What have u won) was launched in collaboration with Chimera Nokia. magical “dream vacation” to numerous “wonder destination” throughout the world on every purchase of a 250 ml RGB bottle of CocaCola. Coca-Cola set the stage of the grand UTC promotion.Coca-Cola Ramzan Campaign A very special occasion for the people of Pakistan Ramzan saw another very special Coca-Cola’s promotion. Coca-Cola & Nokia In August 2001. HOLLYWOOD. The promotion saw avid consumer collecting Coca-Cola ‘Crown caps’ & sparked a keen response from the public . SINGAPORE & CAIRO along with airfare & four nights free stay in these dream lands. highlighting the winners over whelmed in the magical delight of their favorite beverage Coca-Cola. a trip to PARIS. Coca-Cola Wonder of the World Promotion In July 2000.5 liter PET bottle & the 1 liter bottle with a super price-off promotion. Coca-Cola went ahead with the idea of giving consumer chances to win fabulous. NEWYORK. & Fanta. rendering an outstanding testimonial campaign in the second phase. The emphasis on enjoying CocaCola at “Iftar” with friends & family. marketing the popular 1. Sprite.The promotion gave consumer a chance to win thousand’s of Coca-Cola branded Nokia 3310 cellular phones on every 79 .The promotion gave consumers a chance to win free drink.
Bunting etc) displayed at all MC Donald’s restaurants along with a special offer for coke & fries. These days this scheme is very popular among the people. it is a utc scheme in which people are getting television sets of different sizes. both shares globally. 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. Caught red handed become a huge success among the masses as it was one to one interaction between the Coca-Cola brand & the consumers. & Fanta. Coca Cola TV Mazza The coca cola new campaign is coca cola tv mazza.Sprite. the consumers in Pakistan witnessed a soft launch in 80 . Fanta & Sprite Launched In November 2000moving on to the Sprite & Fanta brands. Branded CocaCola with ‘caught red handed’ team in them went to Lahore & Karachi for three days. The promotion kicked off with pos material (Danglers.purchase of 750ml RGB bottle of Coca-Cola . This activity helped billed confidence and brand loyalty among core consumers.The other highlight of promotion was the “Caught Red Handed” campaign. 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.
the company has successfully launched its first new product. for the first time in almost 3 years. The Coca-Cola Company declared the new “NonReturnable” bottles of Sprite & Fanta as the “New. The was linked with three fashion shows as Diet Coke is related to fashion & fitness. 81 . On the Go Packs” flaunting the innovative packaging convenience. Diet Coke After the acquisition of the individual local franchise bottling facilities in 1996. diet coke. Fanta & Sprite are sure to enjoy considerable success in Pakistan.essence. but the major hit was thematic fashion shows in restaurants. which are the key accounts of the company as this has been never done before in Pakistan.
They own 36% of 82 . Not only are they a $23 billion company. This extremely recognizable branding is one of CocaCola's greatest strengths. Coca-Cola itself is a strong company to say the least. Coca-Cola's bottling system is one of their greatest strengths. including four of the top five sellers right now. and collectible memorabilia. Coke sells about 400 drink brands. but in 200 nations. Additionally. A company like Coca-Cola has much internal and external strength. The product's image is loaded with over-romanticizing. hats.SWOT ANALYSIS Strengths: Coca-Cola has been a complex part of American culture for over a century. Because Coke does not have outright ownership of its bottling network. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. It allows them to conduct business on a global scale while at the same time maintain a local approach. and this is an image many people have taken deeply to heart. they begin to run into many internal and external weaknesses as well. but when launching a product of this sort. The Coca-Cola image is displayed on T-shirts. As far as internal strengths go. its main source of revenue is the sale of concentrate to its bottlers.
Organic products are on the rise. Perhaps one of their biggest strengths is the brand loyalty their customers have. there still are not many well-known organic companies. Coca-Cola Enterprises. they do own Odwalla. but Odwalla's knowledge of natural juice making will be a great strength for Coca-Cola. with 70% of Americans having purchased something organic at least once. While organics are becoming more and more popular. therefore. which staffs facilities all over the world. Although Coke has never produced an organic product. 83 . This product would not be marketed as an Odwalla brand. Coca-Cola will not have much competition. When this product is launched. avid Coke drinkers will choose this organic fruit juice or soda over any other competitor simply because it's a Coca-Cola product and they trust it.the largest Coke bottler in the world. which is a natural juice company.
and Japan account for about 35% of Coke's volume and none of these markets are performing to expectation. Coca-Cola on the other side has effects on the teeth's which is an issue for health care. Being addicted to Coca-Cola also is a health problem. the public has tended not to be affected by new products. Packaging changes have also affected sales and industry positioning. Coca-Cola's brand name is known well throughout 94% of the world today." According to an article in Fortune magazine. because drinking of Coca-Cola daily has an effect on your body after few years. It also has got sugar by which continuous drinking of Coca-Cola may cause health problems. "In Japan. Coca-Cola has recently reported some "declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power. unit case sales fell 3% in the second quarter because while Japan generates around 5% of worldwide volume. it contributes three times as much to profits. Southeast Asia.Weaknesses: Although domestic businesses as well as many international markets are thriving. Coca-Cola's bottling system also allows the company to take advantage of infinite growth opportunities around the 84 . Opportunities: Brand recognition is the significant factor affecting Coke's competitive position. Latin America. but in general.
The rivalry between Pepsi and Coke has produced 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. The soft drink industry is very strong. however. Furthermore. milk. diverse. both Coke and Pepsi have already diversified into these markets. Consumer buying power also represents a key threat in the industry. area. The threat of substitutes. the threat of new viable competitors in the carbonated soft drink industry is not very substantial. the changing healthconsciousness of the market could have a serious affect. This strategy gives Coke the opportunity to service a large geographic. but consumers are not necessarily married to it.world. and hot chocolate. allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the market. Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market. Of course. juices. Threats: Currently. consumers can easily switch to other beverages with little cost or consequence 85 . Possible substitutes that continuously put pressure on both Pepsi and Coke include tea. coffee. is a very real threat.
86 . 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.CONCLUSION After thorough research.
So for this coca cola company should produce their product according to the local demand. • Marketing team should try to increase the availability of Coke in rural areas. conducted by the international firm Pakistani people like little bit sweeter cola drink. • According to the survey.RECOMMENDATIONS After completing our project we have concluded some recommendation for the coca cola company. so providing more 87 . • Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. • They should also focus the old people. which are following. • Now young generation has a trend to drink a coke 2 regular bottles at same time.
satisfaction to them company should introduce ½ liter disposable bottle.
PEST ANALYSIS OF COCA-COLA
There are four variables, which we will discuss in our report, they are:
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, military take over, 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. In the “political variables” most of the things are related to Governmental activities. So, they don’t leave any good or bad impact in the Industry of coke.
And there are some exceptional things like: “environmental protection laws” they some what effect the industry of Coke. From last two years Government is going to be really very much conscious about the environment. But after making the adjustments in plants and applying the proper way of wastage the chances of being affected by the “protection laws” are going to be diminished. So it impact good for the Coke’s reputation. And the second thing in political variables which effects Coke is “elections & military take over” Because in the days of elections and marshal law’s condition the countries production in any field is declined. So it affects slightly the revolution of Coke. So “political conditions” are over all leave neutral effects on coke’s industry.
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, 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. Economic factors are those actors who effect the production of any industry. So, Coke is not the out of question. If the economic conditions of the country is not that strong and Coke increases its Price in this situation. Then it would impact highly negative. And inflation is also not a good position for any country’s production point of view. It also impacts highly negative in the Coke’s production.
And as a country concerned like “Pakistan” where the unemployment rate is very much high. The Coca-Cola system in Pakistan employs 1,800 people. During the last 2 years, the CocaCola system in Pakistan has involved over $130 million (U.S). When we draw the conclusion of “economic variables”. 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.
Social variables Effects of advertisement of Coke on Public popularity Strongly Effected ++ YES Some what Effected + No Effect + − Some what Effected − Strongly Effected −−
Knowledge-hungry students books. While we have always sought to be sensitive to the environment. From youth in Brazil to first generation scholars. educational programs in local communities are our priority.How will do Coke’s contribution affect charity organizations of Pakistan Has rising consciousness of natural resources in people effected your “save environment activities. we must use our significant resources and capabilities to provide active leadership on environmental issues. supplies. ENVIRONMENT A large part or our relationship with the world around us is our relationship with the physical world. This same spirit of innovation comes alive in our environment programs. places to study and scholarships. we are involved in innovative programs that give hard-working. particularly those relevant to our business. YES YES 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. We want the world we share to be clean and beautiful. The Coca-Cola Company is committed to helping people make their dreams come true. All over the world. We’re committed 91 . We are always innovating to bring you different delicious beverages.
Here’s a sample of what we’re doing in different communities around the world regarding the conservation of water and natural resources. COMMUNITY INVOLVEMENT: In 2000. to be sent on the Holy Pilgrimage to Mecca at the Company’s expense.to preserving our environment. selected through a draw. climate changes. waste environment education. down to very local neighborhood collection and beautification efforts. and environment Management initiatives. 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 Strongly Effected ++ YES Some what Effected + No Effect + − Some what Effected − Strongly Effected −− YES YES 92 . The Coca-Cola system initiated a famine-relief program to help victims and was the first private-sector company to assist. The Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one employee from each plant. from use of more than $ 2 billion (U. Four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The Coca-Cola system in Pakistan operates through eight bottlers.S) a year in recycling content and suppliers. 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. Coca-Cola is no doubt one of the most popular beverage company and its product 93 . And though it’s a big industry so it is promoting the trend of paperless environment. As far as the “governmental hindrances” are concerned the impacts highly bad on coke’s production. As coke use more advance technology in its production process. As the coke helping in promoting “paperless environment” . It will resulted in increment of their production through out the country.it impacts good. Ever year when budget in announced government taxes rates always shoot up. This approach of government decreases the profit margin of Coke.promoting paperless environment Conclusion Of Technological Analysis Of course business innovation leaves highly good impacts in the business of Coke. we came up with the very interesting report of facts and figures. because computers are the basic need of any person now a days. OVER ALL RESULTS OF PEST ANANYSIS After our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited). Through computers coke can increase the efficiency of its business and can have up –to-date data about their productions.
Lahore plant of Coca-Cola is one of the beautiful plant in Asia. Coca-Cola 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.COKE is one of most consumed cola drink. They spend billion of dollars on their advertisement. 94 . Its entertaining and colorful advertisements have always and will always rock the media. Coca-Cola has always had a close consumer and supplier relationship with its customers. Situated on Raiwand Road. promotions and recreational campaign. sportmen and actors have played a very vital role in making Coca-Cola such a popular beverage. Coca-Cola has about 2000 employees at Pakistani plants. Pakistani rock stars. Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough time.
DATA ANALYSIS 1. all of them said they had tried Coca-Cola atleast once. Have you ever tried the product (Coca-Cola)? 35 30 25 20 15 10 5 0 yes no Out of the 30 people we surveyed. Gender 95 . 2. This explains the brand awareness of Coca-Cola.
of people 96 . 3. Age groups Age Groups 51 & above 36-50 yrs 20-35 yrs 10-19 yrs below 10 yrs 0 5 10 15 no.20 18 16 14 12 10 8 6 4 2 0 male female Out of the 30 respondents. there were 18 men & 12 women.
it was found that majority of 77% (23 people) respondents said they enjoyed drinking CocaCola as against 23% (7 people) who said they preferred other drinks. 4. the least of the lot being 2 kids who were also asked to participate in the survey. What brand would you say is more popular among the public? a) Coca-Cola b) Pepsi c) Other 97 .As represented in the chart. majority of the respondents were in the age group of 20-35 years. Do you enjoy the product (Coca-Cola)? no 23% yes 77% From the analysis. 5.
out of 30 people.Others 7% Pepsi 37% Coca-Cola 56% As seen in the chart. in their opinion. 17 respondents said. 6. Do you enjoy Coca-Cola’s advertisements on TV? I don’t like them not bad they are good but nothing special I really like them 0 2 4 6 8 10 12 14 98 . Coca-Cola was more popular while 11 respondents said they preferred Pepsi as a popular brand.
Do you think the price for a can of Coca Cola is cheap or expensive? expensive slightly overpriced cheap 0 5 10 15 20 25 As seen in the above figure. a majority of 23 people out of the 30 respondents thought that the Coca-Cola Cans are slightly overpriced with a few people also rating it as expensive. If you were to see the Coca-Cola logo somewhere would you recognize it? 99 .The chart represents that a majority of people thought the Advertisements were good enough & they like what they see. 8. 7.
How often do you buy the product? everyday few times in a week few times in a month once/few times in a year never 0 5 10 15 As it can be seen in the figure. 9.no 0% yes 100% It is understood from the fact that the Logo of the Company still has its image in the minds of the people with all the respondents saying they would recognize the “Coca-Cola” Logo. it was concluded that majority of the respondents bought the product quite 100 .
frequently. 10. 101 . Sub-Way etc. Where do you buy Coca-Cola products the most? Restaurants general stores super markets 0 5 10 15 20 As seen in the above chart. The second largest option was General stores stocking Coca-Cola. customers usually preferred to buy Coca-cola in restaurants like KFC. Mc Donalds. This shows the brand loyalty of the customers towards Coca-Cola.
• Coca-Cola products would appear. When people buy Coca-Cola they are not just buying the beverage but also the image that goes with it.CONCLUSION • It was observed that Coca-Cola has been perceived quite positively as it has been projected. therefore to have the price higher reiterates the fact that the product is of a better quality than the rest and that the consumer is not cheap. to have the most expensive range of soft drinks common to supermarkets. This can be for several reasons apart from just to cover the extra costs of promotions. • In supermarkets and convenience stores Coca-Cola has their own fridge which contains only their products. People are aware of the Brand & Awareness of Coca-Cola is quite high in the market. at almost double the cost of no name brands. people still prefer to stay loyal to the Brand with Coca-Cola being termed as a more popular brand than Pepsi. 102 . for which no name brands do without. on the shelf. When a product is launched. • Although Coke has been into controversies. avid Coke drinkers choose this soda over any other competitor simply because it's a Coca-Cola product and they trust it.
So… “ Jo chaho ho jaye cocacola enjoy ” 103 . Coca-Cola sponsors a lot of events including sports and recreational activities.There is little personal selling. but that is made up for in public relations and corporate image.
• Position and Authentication Constraints: With no authority or position it was sometimes difficult to convince the customer in front as summer trainee holds no responsibilities in the eyes of corporate. 104 . there is no interection with customers of Hindustan Coca-Cola Beveragws Private Limited.LIMITATIONS • Time Constraints: A two months time limits us to understand completely the market requirements and all round working perspective of the company. So . • No Customer Interection:ection It is because the customers of Hindustan CocaCola Beveragws Private Limited are big organisations. these organisations are situated outside Varanashi.
We have efficiency of the organisation. It means that with the increase of order to target.SUGGESTIONS In the report we have seen the graph of order booking targets and sales turnover. these can be turnkey for 105 . • Profit generation: In the SWOT analysis we have seen there is a great opportunity products. In the graph of order booking we have seen that the order for our product is increasing year. work distribution. inventory management. we have to improve on certain points: • Cost efficiency: To get the achievement of cost efficiency we have to keep certain points in our mind they are resale of scraps.
But from time to time the regular improvement of the technology. After those dealings the company should try to get a good name in India as well as in international market. It improves the quality of the product as well as save the time. 106 . The company should try to work on export. • Improving technology: There is no doubt that the product of company is not good.the company. They should lay more emphasis on export. • Becoming a global player: With the last dealings we can conclude that the company had satisfy there maximum customers.
What brand would you say is more popular among the public? d) Coca-Cola e) Pepsi f) Other 6.Name: __________________________ 1. How old are you? a) Below 10 b) 10-19 c) 20-35 d) 36-50 e) 51 & Above 4. Gender a) Male b) Female 3. Do you enjoy Coca Colas advertisements on TV? 107 . Do you enjoy the product? a) Yes b) No c) It's not bad 5. Have you ever tried the product (Coca-Cola)? a) Yes b) No 2.
Where do you buy Coca-Cola products the most? a) Super Markets b) General stores c) Restaurants (McDonald's. KFC etc) 108 . If you were to see the Coca Cola logo somewhere would you recognize it? a) Yes b) No 9. How often do you buy the product? a) b) c) d) e) Never Once/few times a year Few times a month Few times a week Everyday 10. Do you think the price for a can of Coca Cola is cheap or expensive? a) Cheap b) Slightly over priced c) Expensive 8.a) b) c) d) I really like them They good but nothing special Not bad I don't enjoy them 7. Subway.
It may be a site related to general references. You must be on the guard as every site listed on the search engines under the title ‘Marketing Strategies Analysis’ may not be related to my project over my study undergone in BPC Hindustan Coca-Cola Beveragws Private Limited. This compilation is meant to be illustrative rather than comprehensive and there might be many other sources. This annexure has been compiled for the net-savvy reader who would like to surf the net for information on an aspect that is.ANNEXURE The internet is a powerful source of information related to management theories and practices. related to matter covered in this project work. in some way. articles and slides over management theories on Marketing! 109 .
coca-colaindia.BIBLIOGRAPHY Bibliography refers to the sources through which information has been retrieved in my project development: Books & Magzines: • • • Websites: • • • www.com Marketing Management Economic Times Annual Report of coca-cola company.google. By ( Philip Kotler ) 110 .altavista.com www.com www.
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