Presented to: Sir. Aslam Masood
Presented by: Uzma Farrukh SanaGhayyur M-13395 M-13366
MARKETING STRATEGIES OF COCA COLA
“With the name of Allah the most beneficial and the most merciful”
First and foremost, we are grateful to ‘ALLAH ALMIGHTY’, most beneficent and the most merciful Who made us able to complete our given project successfully. We would also like to pay tribute to the benefactor of humanity ‘HOLY PROPHET’ (P.B.U.H.), Who gave us complete knowledge on every aspect and field of life. In short of words, to express our modest gratitude and recognition to cuddly and loveable ‘PARENTS’, who at each and every moment prays for our success. We are also deeply thankful to our ‘TEACHERS’ to have taught us from childhood to still especially ‘SIR. ASLAM MASOOD’, who taught us ‘Strategic Marketing’.
Thank you all, without you this would have not been possible.
We dedicate this report to our parents and friends in recognition of their worth and to our teachers who are the guiding force for us and it is their effort and hard work that showed us the path of success and prosperity which would be there for us for the rest of our life. Our thanks to all those who have generously contributed their theoretical knowledge to this report including our teachers. Without their understanding and support, completion of this work would not have been possible. We hope people find this report useful and the subject matter adds to their knowledge. “Keep your dreams alive. Understand to achieve anything requires faith and belief in yourself, vision, hard work, determination, and dedication. Remember all things are possible for those who believe.” Merlin Olsen
TABLE OF CONTENTS Page #
Project Objective Executive Summary Market Demographics Industry Analysis Situational Analysis Introduction of Coca Cola Vision Statement Mission Statement Shared Values Objectives of Coca Cola Goals of Coca Cola History of Coca Cola History of Bottling Advertising History of Coca Cola Coke History in Pakistan Organizational Hierarchy of Coca Cola Departments of Coca Cola Market Share of Coca Cola
09 10 11 11 12-14 15-16 17 18 18 19 19 20-21 22-23 24-25 26-27 28 29-31 32
Global Unit Sales of Coca Cola Region wise Consumption of Coca Cola Market Position of Coca Cola Globally Market Position of Coca Cola in Pakistan Brands of Coca Cola Portfolio Analysis (BCG Matrix) Competitors Competitors Analysis Competitive Advantages Customer Analysis SWOT Analysis Industrial SWOT Analysis SWOT Analysis of Coca Cola Product Life Cycle Growth Strategy Market Segmentation Segmentation Strategy of Coca Cola Marketing Mix Product Strategy Pricing Strategy Positioning Strategy
33 34 35 35 36-38 39-40 41-49 50-51 52 53 54 54-55 56-58 59-60 61-62 63 64-67 68 68-70 71-74 75-76
Packaging strategy Promotion Strategy Distribution Channels Advertisement of Coca Cola Advertisement Media Expectations for the Coming Year Sales Promotion Activities Conclusion Recommendations Bibliography
77-78 79 80 81 82 83 85-88 89 90 91
The objective of this project is to give overview of Marketing Strategy of ‘Coca Cola’ to provide a broad selection of the nonalcoholic ready to drink beverages to potential consumers in Pakistan. Analysis carried out on nonalcoholic ready to drink beverages market in terms of size and growth, covering different segments present in the market. It includes introduction of the company and the product, internal and external environment, market and competitor analysis, and marketing mix.
The scope of the project is to discuss the marketing strategies adopted and applied by ‘Coca Cola’, Pakistan. From the last month or so our group is in the process of a continuous research on marketing functions and strategies adopted by ‘Coca Cola’. These marketing functions mainly include the marketing mix i-e, Product Strategy, Pricing Strategy, Pricing Tools and Strategies and Placement and Distribution Strategies as well as other market strategies. Moreover the project also discusses the analysis of competition, market growth and trend, opportunity analysis and strategies for creating competitive advantage adopted by ‘Coca Cola’. We will like to add that the project will provide the readers and listeners very high profile information about the marketing strategies as a whole and also about the Coca Cola Company. In the end we hope that the project will result very profitable for the readers and Coca Cola. Your feedback in the end either critical or substantial will be very highly appreciated.
➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢
POPULATION: GROWTH RATE: BIRTH RATE: DEATH RATE: NET MIGRATION RATE: 0-14 YEARS: 15-64 YEARS: 65 YEARS AND OVER:
176,242,949 (July, 2009 est.) 1.828% 27.74 births/1,000 population 8 deaths/ 1,000 population 1.24 migrant(s) / 1,000 population 37.2% ( male: 33,739,547 / female: 31,868, 065) 58.6% (male: 52, 849, 607 / female: 50, 378, 198) 4.2% (male: 3,475,927/female: 3,931,605)
➢ ➢ ➢ ➢ ➢ ➢
POPULATION: CHILDREN: ADULTS: CHILDREN EQUITY: ADULT EQUITY: TOTAL TARGET MARKET:
176,242,949 (July, 2009 est.) 37.2% (65,607,612) 62.8% (110,680,572) 60% (14,643,619) 40% (27,802,960) 42,446,579
Beverages are a major consumer able item and there is a huge demand and potential in this market particularly the nonalcoholic ready to drink soft drink. The nonalcoholic ready to drink beverage has grown year on year and as a result, the pie is growing bigger every year.
The market analysis investigates both the internal and external business environment. It is vital that Coca Cola carefully monitor both the internal and external aspects regarding it’s business as both the internal and external environment and their respective influences will be decisive traits in relation to Coke’s success and survival in the soft drink industry.
➢ INTERNAL BUSINESS ENVIRONMENT
The internal business environment and its influence is that which is to some extent within the business’s control. The main attributes in the internal environment include efficiency in the production process, through management skills and effective communication channels. To effectively control and monitor the internal business environment, Coke must conduct continual appraisals of the business’s operations and readily act upon any factors, which cause inefficiencies in any phase of the production and consumer process.
➢ EXTERNAL BUSINESS ENVIRONMENT
The External business environment and its influences are usually powerful forces that can affect a whole industry and, in fact, a whole economy. Changes in the external environment will create opportunities or threats in the market place Coca cola must be aware off. Fluctuations in the economy, changing customer attitudes and values, and demographic patterns heavily influence the success of Coca Cola’s products on the market and the reception they receive from the consumers.
All over world there are two soft drink giants, Coke and Pepsi. The competition between two companies has always been neck to neck. Both these companies keep on try to take lead in terms of pricing, packaging, promoting and placing. In Pakistan recently a few other beverages are also introduced such as Mecca-Cola, Shandy Cola and Amrat-Cola but currently these soft drinks are not a threat for coke due to their very low market share and secondly due to brand loyalty of customers for coke.
These are uncertainties that are extremely variable in the political conditions of Pakistan. Constant political instability does affect the company in terms of building new relations with new Governments all the time.
➢ SOCIAL AND CULTURAL FACTORS
The company has to be very careful in the implementation of its promotional campaigns, since the social cultural environment of Pakistan is very conservative and any suggestive advertisements usually face a lot of negative reactions on the part of the consumer. SOCIAL FACTORS: Social factors include consumer’s family, small groups and status. Family members can affect buying behavior in such a way that if number of children is more in a family than the elders, then the children choice can matter a lot at the time of soft drink purchase. On the contrary, sometimes people go for the product that shows their status in society. CULTURAL FACTORS: Every group and society has its own culture. Cultural factors affect coke purchasing massively. Different communities and groups of people have reshaped Pakistan’s culture. In recent years the Bahar/ Basant festival in Punjab specially become important part of our culture in which sales of coke go very high. Soft drink is purchased in bulk for the parties and other occasions.
➢ PERSONAL FACTORS
Buyer’s decision is also influenced by personal characteristics such as buyer’s age and life cycle stage, occupation, personality and self-concept. Age and lifecycle stage means that people taste and way of living changes with passage of time. Lets say in earlier stage of life if a person’s best choice for soft drink was Coke classic but as he proceeds with his life, way of thinking and style may change. He may not opt for classic coke anymore and might be more interested in diet coke.
Strategic Marketing Page 13
Occupation matters a lot when consumer is indulge in buying. If consumer is a student by occupation he will certainly go for returnable bottle of or may be disposable bottle of 25 RS but most probably not for the coke CAN which is high in price. Where as if the consumer is a business executive who is financially strong will prefer more the coke classic can or diet coke can. This change is mainly because of occupation.
➢ PSYCHOLOGICAL FACTORS
A person’s buying behavior is further influenced by major psychological factors such as motivation, perception, learning and self benefits. Motivation is basically a drive that’s sufficiently pressing a person to seek satisfaction of the need. Sometimes a person has no intention to buy a particular product but what happens is that the group of people around him motivates him motivates. If a person is highly satisfied with the taste of “diet coke”, he may share his experience with another person and as a result the latter person might get motivated by his opinion and end up buying “diet coke” In some cases, consumers have descriptive thoughts and beliefs about something. It may change with the passage of time because mostly all the self beliefs are secondary and not the core ones.
➢ OTHER FACTORS
Other factors like the Government rules, regulations and technological advancements have had no significant effect on the product and the company.
Founded in 1886, the coca-cola company is the world’s leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups. The company’s corporate headquarters are in Atlanta, with local operations in over 200 countries around the world. Although Coca-Cola was first created in the United States, it quickly became popular wherever it went. Our first international bottling plants opened in 1906 in Canada, Cuba and Panama, soon followed by many more. Today, Coca-Cola has a portfolio of more than 3,000 beverages. Coca-Cola has 92,400 employees worldwide. More than 70 percent of our income comes from outside the U.S., but the real reason we are a truly global company is that our products meet the varied taste preferences of consumers everywhere.
Type Manufacturer Founder(s) Country of Origin Introduced Area served Color Flavors
Soft Drink (Cola) The Coca- Cola Company
John S. Pemberton
United States 1886 Over 200 countries Caramel E-150d Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry. Pepsi, Irn Bru, RC Cola, Cola Turka, Zam Zam Cola, Mecca Cola, Virgin Cola, Parsi Cola, Qibla Cola, Evoca Cola, Corsica Cola, Breizh Cola, Afri Cola 92,400 1.6 Billion www.coca-cola.com
Employees Servings per Day Website
Our vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable growth.
➢ People: Be a great place to work where people are inspired to be the best they can be. ➢ Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. sustainable communities.
➢ Planet: Be a responsible citizen that makes a difference by helping build and support
Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Be a lean and Productivity: highly effective, fast-moving organization.
Mission statement is a statement of organization’s purposes that what it wants to accomplish. In order to achieve mission of increasing market share and maintaining good relations with our customers all over the world, we wish to create value for all the constraints we serve, including our consumers, our bottlers, and our communities. The Coca Cola Company creates value by executing business strategy guided by four key beliefs:
➢ Customer is king; Customer demand drives everything we do.
➢ Brand Coca Cola is the core of our business. ➢ We will serve consumers a broad selection of the nonalcoholic ready-to-drink beverages they want to drink throughout the day. ➢ We will be the best marketers in the world. Everything we do is inspired by our enduring Mission:
➢ To Refresh the World...in body, mind, and spirit. ➢ To Inspire Moments of Optimism...through our brands and our actions.
➢ To Create Value and Make a Difference...everywhere we engage.
Our values serve as a compass for our actions and describe how we behave in the world.
➢ Leadership: The courage to shape a better future ➢ Collaboration: Leverage collective genius ➢ Integrity: Be real ➢ Accountability: If it is to be, it's up to me ➢ Passion: Committed in heart and mind Strategic Marketing Page 18
➢ Diversity: As inclusive as our brands ➢ Quality: What we do, we do well
OBJECTIVE OF COCA COLA
The company has sales based objective .Everything else (marketing plan, advertising plan, production etc.) is derived from this objective. Currently the company‘s objective is to “Increase the volume of sales up to the maximum level as much as possible during the current fiscal year.” The company sets its objective keeping in view the past performance, Historical trends, current market position, economic condition, macro environment and micro environment factors, social values, market size and growth rate ,future expectations and predictions
GOALS OF COCA COLA
All CCBPL plants setup their own goal to achieve the objective. The company goal is “To increase sales volume and gain market leadership in Lahore.”
HISTORY OF COCA COLA
Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed. Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and penned “Coca-Cola” in the unique flowing script that is famous worldwide even today. He suggested that “the two Cs would look well in advertising.” The first newspaper ad for CocaCola soon appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and popular soda fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings, with the suggestions “Drink” added to inform passersby that the new beverage was for soda fountain refreshment. By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete
Strategic Marketing Page 20
ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated
his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pemberton’s former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark “Coca-Cola,” used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893. The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Company’s incorporation, Mr. Asa G. Candler announced in his annual report to share owners that “Coca-Cola is now drunk in every state and territory in the United States.” As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.
HISTORY OF BOTTLING
Coca-Cola® originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. 1894 … A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called CocaCola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. 1899 … The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States (specifically excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. 1900-1909 … Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them familyowned businesses. Some were open only during hot-weather months when demand was high. 1916 … Birth of the contour bottle Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark! 1920s … Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 1920s and 30s … International expansion Led by longtime Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to
Strategic Marketing Page 22
establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. 1940s … Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. s1950s … Packaging innovations For the first time, consumers had choices of CocaCola package size and type -- the traditional 6.5ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960. 1960s … New brands introduced: Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand Coca-Cola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s brought diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world. 1970s and 80s … Consolidation to serve customers: As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 1990s … New and growing markets: Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century …: The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honour local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.
ADVERTISING HISTORY OF COCA COLA
Coca-Cola's advertising have a significant impact on American culture, and is frequently credited with the "invention" of the modern image of Santa Claus as an old man in red-and-white garments; however, while the company did in fact start promoting this image in the 1930s in its winter advertising campaigns, it was already common before that. In fact, Coca-Cola was not even the first soft drink company to utilize the modern image Santa Claus in its advertising –
White Rock Beverages used Santa in advertisements for its ginger ale in 1923 after first using him to sell mineral water in 1915.
Before Santa Claus, however, Coca-Cola relied on images of smartly dressed young women to sell its beverages. Coca-Cola's first such advertisement appeared in 1895 and featured a young Bostonian actress named Hilda Clark as its spokesperson. In the 1970s, a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing", produced by Billy Davis, became a popular hit single. Coca-Cola has a policy of avoiding using children younger than the age of 12 in any of its advertising. This decision was made as a result of a lawsuit from the beginning of the 20th century that alleged that Coke's caffeine content was dangerous to children. However, in recent times, this has not stopped the company from targeting young consumers. Coke's advertising is rather pervasive, as one of Woodruff's stated goals was to ensure that everyone on Earth drank Coca-Cola as their preferred beverage. This is especially true in southern areas of the United States, such as Atlanta, where Coke was born. Some of the memorable Coca-Cola television commercials between 1960 through 1986, were written and produced by former Atlanta radio veteran Don Naylor (WGST 1936-1950, WAGA 1951-1959) during his career as a producer for the McCann Erickson advertising agency. Many of these early television commercials for Coca-Cola featured movie stars, sports heroes, and popular singers of the day. During the 1980s, Pepsi-Cola ran a series of television advertisements showing people participating in taste tests essentially demonstrating that: "Fifty percent of the participants who said they preferred Coke actually chose the Pepsi". Statisticians were quick to point out the problematic nature of a 50/50 result; that most likely all this really showed was that in blind tests, most people simply cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsi's ads in an incident sometimes referred to as the cola wars; one of Coke's ads compared the so-called Pepsi challenge to two chimpanzees deciding which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership in the market. Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed three commercials for the company. In 1994 to commemorate her 5 years with the company, Coca-Cola issued special Selena coke bottles. In an attempt to broaden its portfolio, Coca-Cola purchased Columbia Pictures in 1982. Columbia provided subtle publicity through Coke product placements in many of its films while
Strategic Marketing Page 24
under Coke's ownership. However, after a few early successes, Columbia began to underperform, and was dropped by the company in 1989. Coca-Cola has gone through a number of different advertising slogans in its long history, including "The pause that refreshes", "I'd like to buy the world a Coke", and "Coke is it". In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where consumers earn virtual "points" by entering codes from special marked packages of Coca-Cola products into a website. These points can in turn be redeemed for various prizes or sweepstakes entries
COKE HISTORY IN PAKISTAN
“To provide Coca-Cola at arms ‘length” The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite are the brands with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in Pakistan operates through eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan and Lahore. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan has nearly 3,000 people working constantly for the company. During the last two years, The Coca-Cola Company in Pakistan has invested over $130 million (U.S) and coke has successfully provided 56 years of dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firm has been continuously changing its slogans and that’s a very creative idea to get the attention of the customers. . Here we would like to include some of the popular slogans of coke since the coke journey started. ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ 1886 Drink Coca-Cola 1908 Get the genuine 1923 Enjoy thirst 1934 When it's hard to get started, start with a Coca-Cola 1942 The only thing like Coca-Cola is Coca-Cola itself 1956 The friendliest drink on earth 1963 Things go better with Coke 1993 Always. Coca-Cola 2001 Life is Good 2003 Jo Chaho Ho Jaye Coca Cola Enjoy 2004 Flight Of Delight 2005 Galay Delicious Taste 2006 Thanda matlab coca cola 2007 khaly pily jila coca cola 2008 Aja jashan mena ly
Today CCBPL is operated directly under the supervision of the Coca-Cola International based in Atlanta Georgia State___ USA .It owns 8 plants all around in Pakistan. Coca Cola Company offers the brand range as Coca Cola, Diet Coke, Fanta, Sprite and Kinley
water in Pakistan.
➢ ➢ ➢ ➢
Coca-Cola introduced in Pakistan Fanta introduced in Pakistan Sprite was introduced Diet Coke & Fanta Lemon
1953 1965 1972 2001
ORGANIZATIONAL HIERARCHY OF COCA COLA
DEPARTMENTS OF COCA COLA
Every organization is made up of different departments, each of these departments help Coca Cola achieve their objectives. As Coca Cola is a large multinational company, the amounts of departments are huge. Each country has their own Head Office and departments. Coca Cola is geographically split into five geographic operating segments, also known as strategic business units (SBU's). The six SBU's are North America, Africa, Asia, Europe, Middle East and finally Latin America. If all departments perform in the correct way then that will continue the success of Coca Cola.
There are 6 functional departments within Coca Cola, these are:
➢ Marketing ➢ Finance ➢ Packaging ➢ Sales ➢ Research and development
The Coca Cola marketing department develops core strategies for company brands to ensure that all communication is consistent in every market. With this cohesive effort, the CocaCola system maximizes its resources for market leadership and profitable growth. The marketing departments are responsible for marketing the products and advertising the products and promoting the products. If all these departments perform their duty firmly then the objectives of The Coca-Cola Company will meets.
The finance department of the Coca Cola Company is responsible for financial record keeping. This involves keeping records of money received and paid out. The financial records will be used to produce the annual reports for the shareholders so that they can see the company performance. The Finance department is also responsible for the management accounts of the business like marketing etc. The Coca-Cola Company finance department is also responsible for making budget of the company and for each department like marketing department or research and development department. They will also be involved in the planning process like taking over or any major decision.
The packaging department of Coca-Cola Company is responsible for the packaging of the products. They have to make the packaging attractive so that that product meets the eyes of the consumers. Bringing new products package is their responsibility. It works with the companies bottling partners to produce an attractive combination.
The sales department of the Coca Cola Company is to coordinate the selling program. They also have to make the distribution methods, etc. Also, decide how much to sell and how
much to store in the warehouse and to choose the transporting method which is the most cost efficient and the quickest way.
RESEARCH AND DEVELOPMENT DEPARTMENT
This department has their budget given by the finance department and their responsibility is to investigate new products. They work closely with marketing by looking at marketing research findings. They have to bring new products in the market for the change because the consumer cannot stick with the same old products. If necessary then they also have to improve the quality of the products. The Coca-Cola Company research department has done a lot of research and recently they have launched many new products like Diet coke with lemon, Fanta Tropical, Minute maids, Fanta raspberry, Fanta blue berry etc.
This department is essential for keeping the business going. They act as a help support of the company, it is not the central purpose the business but every business organization would need this department. Most businesses rely on administration to be organized. They deal with enquiries, give messages produce documents and give information to any customer. The complaints that this department will get would be transferred to the research and development department to make the product better or fix the problem that the consumer is having. These departments are the most important department of The Coca-Cola Company because they helps the company to meets the objectives of The Coca-Cola Company i.e. surviving, customer satisfaction and make more profits. As I said that the help desk department satisfies the customer by providing the information they needs and taking the complaints and passing to the research and development departments who improves the products.
MARKET SHARE OF COCA COLA
Coca Cola is now one of the largest corporations in the world, with a global workforce of over 90,000 and revenues of $31.9 billion in revenues in 2008. Over the years, the brand equity of the Coca-Cola trademark, as well as that of other Coca Cola-produced brands, has established Coca Cola as a prominent figure in the non-alcoholic beverage industry and allowed the company to keep both revenues and profits high.
Sales and Income Data in Millions
Net Income (Profits) Units sold in Billions
Quarterly Earnings : 1Q2009 In the first quarter of 2009, the Coca-Cola Company posted revenues of $7.169 billion, a 3% decrease from 1Q 2008 figures; net income fell 10% to $1,348 billion. Although sales volumes actually rose 7% during the quarter, the Coca-Cola Company was negatively impacted by the dollar's strengthening against the euro, Brazilian real, Mexican peso, and South African rand. 2Q2009: In the second quarter of 2009, the Coca-Cola Company posted revenues of $8.267 billion, an 8.6% decrease from 2Q2008 figures; net income grew 43% to $2.037 billion. Although the company managed to grow worldwide case volume by 4% (with especially important increase of 33% in India and 14% in China), adverse fluctuations in the foreign exchange caused the decrease in revenue. On a currency neutral basis, revenues grew by 4% during 2Q2009, as pricing remained constant during the year. The growth in net income is deceptively large, as the 2008 figure includes an $843 million, or $0.40 per share, charge due to changes in the company's accounting policy of its equity investments in its bottlers. Ignoring this charge, net income would've fallen by 12%.
Strategic Marketing Page 32
GLOBAL UNIT SALES OF COCA COLA
The global unit sale of the Coca Cola Company is increasing from last years. The data of the global unit sale of the Coca Cola Company can be represented by the following chart.
So there is a positive growth in the market of Coca Cola Company. There is a worldwide volume increase with strong international growth. This is only due to the innovative marketing programmers, which has deepened the relationship of the customers and Coca Cola. 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. In 2008, the company had worked with their bottlers to turn good intentions into reality by improving the system economics. The results in 2008 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. The main reason behind this relationship is to continue realizing shared opportunities for growth, with closer coordination of operations including customer relationships, logistics and production.
REGION WISE CONSUMPTION OF COCA COLA
Coca Cola is the world renowned soft drink and the company is currently operating throughout the world. The world wide total is 23.7 Billions. Review according to the regions is as follows:
So the volume is least in Eurasia & Africa and the most in Latin America. From this data we can find out that the customers of Coca Cola are increasing which is shown the company’s per capita income.
MARKET POSITION OF COCA COLA WORLDWIDE MARKET POSITION OF COCA COLA IN PAKISTAN
On global level Coca-Cola is the most popular brand and market leader controlling 60% of market share. In Pakistan Coca Cola is the market follower but still in a very strong and stable position holding 36% of the local market with a growing and increasing market share every year.
BRANDS OF COCA COLA
Coca-Cola Zero® has been one of the most successful product launch hes in Coca Cola’s history. In 2007, Coca Cola’s sold nearly 450 million cases globally. Put into perspective, that's roughly the same size as Coca Cola’s total business in the Philippines, one of our top 15 markets. As of September 2008, Coca-Cola Zero is available in more than 100 countries.
For those with a high-intensity approach to life, Coca Cola’s brands of Energy Drinks contain ingredients such as ginseng extract, guarana extract, caffeine and B vitamins.
We bring innovation to the goodness of juice Coca Cola’s more than 20 juice and juice drink brands, offering both adults and children nutritious, refreshing and flavorful beverages. in
Coca Cola’s dozens of soft drink brands provide flavor and refreshment in a variety of choices. From the original Coca-Cola to most recent introductions, soft drinks from The Coca-Cola Company are both icons and innovators in the beverage industry.
Carbohydrates, fluids, and electrolytes team together in Coca Cola’s Sports Drinks, providing rapid hydration and terrific taste for fitnessseekers at any level
TEA AND COFFEE
Bottled and canned teas and coffees provide consumers' favorite drinks in convenient take-anywhere packaging, satisfying both traditional tea drinkers and today's growing coffee culture.
Smooth and essential, our Waters and Water Beverages offer hydration in its purest form.
So much more than soft drinks. Coca Cola’s brands also include milk products, soup, and more so you can choose a Coca Cola Company product anytime, anywhere for nutrition, refreshment or other needs.
A tool by which the management identifies and evaluates the various businesses that makes up the company. Generally there are two approaches of doing the portfolio analysis & Coca Cola’s portfolio analysis is done with both the methods & the results are as follows:
BCG (BOSTON CONSULTING GROUP) APPROACH
In the BCG approach, a company classifies all its Bus according to the growth share matrix.
Coke is one of the main product lines of the Coca Cola Company. It is the one which is giving maximum revenues to it by different products in this line. Here we have classified some of its major products in the BCG matrix on the basis of their fame and liking of the people.
Coke Classic is the basic product through which the Coca Cola Company got the fame. It is one product, which gives the maximum revenue from all over the world. It is one flavor, which has the maximum consumers all over the world. Coke has already worked a lot on it by launching new flavors in it, but still it is a product they can turn as famous as coke Classic.
Fanta and Sprite are the products, which the Coca Cola Company can never think of stop producing. It is the one which make the coke company a huge success; it was one product which gives billions of dollars as revenue from world over. Whenever the company thinks of launching its product in a country the first product they launch is coke classic as they know that if don’t work here then nothing else can.
Products that are still not a big hit as they haven’t consumed much time yet. Sprite 3G, Sprite Zero, Diet Coke and Kinley are the examples of these question marks as the question marks as they have not taken much time yet to get a hold of market & not even the large percentage of the people have tasted it. So it needs time to be fully tested by the company & the company needs to think whether it should continue the production or should divert to something new.
A product that has not worked good or a product which has been a source of loss. flavored Fanta is one product that was not a big hit. Even it’s not a long period which flavored Fanta has consumed but still there are signs that it won’t be a success. So it’s better for the company to get rid of it.
COMPETITORS OF COCA COLA
The competitors to the products of the company mainly lie in the non-alcoholic beverage industry consisting of juices and soft drinks. The key competitors in the industry are as follows:
➢ PepsiCo ➢ Nestle
➢ Cadbury Schweppes
Caleb Brandhum, a North Caroline Pharmacist, structure Pepsi Cola In2 the 1890’s as cure of dyspepsia (indigestion). In 1902, Bradhum applied for a trade mark, issued ninety seven share of stock and began selling Pepsi syrup in earnest. In his first year of business he spends $1900 on advertising a huge sum that he sold only 8000 gallons of syrup. In 1905 Bradhum built Pepsi’s bottling plant. By 1907 he was selling 10,000 gallons a year, two years later; he hired a New York advertising agency. After passing through many troubles for some period now Pepsi is a market leader in international arence and is available in 187 Nations throughout the world.
COCA COLA V/S PEPSI PRODUCTS
Both the companies Coca Cola and Pepsi have a number of products. Many of these products are innovations but there are also many products which are brought out just as a competitive product for other companies. Some of these products that are brought in the market by both the companies to compete against each other are as follows:
The main dark cola drink of the company which started the rivalry between these Companies.
Pepsi version of dark cola which is the major primary competitor to Coke.
Full Throttle is an energy drink produced by the Coca Cola Company. It deputed in late 2004 in North America.
AMP is and energy drink produced and distributed by Pepsi CO. under the Mountain Dew soft drink brand.
Vault is a carbonated beverage that was released by the Coca Cola Company in June 2005.
Mountain Dew MDX is an energy drink manufactured distributed by PepsiCo. Under Mountain Dew brand in 2005.
PowerAde is a sports drink by Coca Cola Company and currently number two in the sports drink market worldwide.
Gatorade is a non carbonated sports drink marketed by Quaker Oats Company, a division of Pepsi Co. originally made for athletes but now often consumed as a snack beverage.
Sprite is a clear, lemon lime flavored, non caffeinated soft drink, produced by Coca Cola Company.It was introduced in the U.S in 1961.
7 up is a brand of a lemon-lime flavored soft drink.
Minute Maid is a product line of beverages usually associated with orange juice, but now extends to soft drinks of many kinds. The Minute Maid company is now owned by Coca Cola and is world’ largest marketers of fruit juices and drinks.
Tropicana products are an American company based in Bradenton, Florida, USA, which is one of the world’s largest producers and marketers of orange juice. It has been owned by Pepsi Co. Inc. since 1998
Nestea is brand of iced tea manufactured and distributed by the Nestle company’s beverage department in the U.S. and by Coca Cola in several European countries, Brazil and Venezuela.
Lipton Original iced tea is a ready to drink iced tea brand sold by Lipton through a worldwide partnership with Pepsi.
Barq’s is a brand of root beer notable for being Mug root beer is a brand name of root beer the only major North American root bear to made by the Pepsi Company. contain caffeine. It has been bottled start of 20th century and is currently sold by Coca Cola Company.
Diet Coke or Diet Coca Cola is a sugar-free soft drink produced and distributed by Coca Cola Company, was introduced in U.S. in 1982
Diet Pepsi is a low calorie carbonated cola. It was introduced in 1964 as a variant of Pepsi Cola with no sugar.
Kinley is a brand of still or carbonated water owned by The Coca Cola Company.
Aquafina is non carbonated bottled water produced by PepsiCo.
Aquarius is a mineral sports drink manufactured by Coca Cola Company. It was first introduced in 1983.
All Sport was a sports drink. It is produced by Pepsi Co.
Fanta is a soft drink brand owned by The Coca Cola Company. It is produced and distributed by Coca Cola Company’s bottlers.
Mirinda is a brand of soft drink. Mirinda is owned by Pepsi Co.
Sprite Ice was the first flavor extension for Coca Cola Company’s Sprite brand soft drink.
Pepsi Blue is a soft drink made by Pepsi Co. and launched in mid 2002.
Coca Cola Blak is a coffee flavored soft drink introduced by Coca Cola in 2006.
Pepsi Cappuccino is a cappuccino flavored carbonated soft drink produced by Pepsi Co.
Maaza is a Coca Cola fruit drink brand marketed in India and Bangladesh.
Slice is a line of fruit flavored soft drink manufactured by PepsiCo and introduced in 1984.
Limca is a lemon and lime flavored carbonated soft drink made in India by Coca Cola.
Teem; a lemon lime flavored soft drink produced by the Pepsi Cola Company.
Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The flavoured milk products also have become substitutes to the products of the company due to growing health awareness among people.
Strategic Marketing Page 48
Cadbury Schweppes are joined force of Cadbury found in 1824 of U.K. and Schweppes of Ireland founded in 1783. Cadbury Schweppes is unified bussing which manages the relations his with over 240 franchised bottling operation on Zambia and Zimbabwe. Cadbury Schweppes has fottlery ands partnership operations in 14 countries around the world.
➢ Mecca Cola ➢ Amrat Cola ➢ RC Cola ➢ Shandy Cola ➢ Qibla Cola ➢ Future Cola
➢ Unilever ➢ Kraft Foods, Inc.
Coca-Cola has three major and large customers in the market, food street 60,000 cerates /year, MacDonald’s 40,000 cerates/year and Pakistan Railways who buy 50,000 cerates /year. However, these three customers being large and powerful are in an influential and bargaining position they can demand discount or others facilities like (boards sign/freezers/coolers etc.) and impose a threat to switch to their closest rival and competitor Pepsi.
Nestle products like juices, coffee, mineral water etc. and Shezan juices are substitutes of Coke for health conscious people and other fresh juices.
The direct competitor of Coca-Cola is Pepsi and that of CCBPL is PCI (Pepsi cola international) there is always ongoing tuff competition between these two arch rivals with Pepsi leading with 54% market share and Coke gradually growing and catching up 36% market share in Pakistan. However on global level the situation is reverse. Both companies often engage in price cut wars, prize scheme wars and sponsorship wars to win over each other customers.
These include Nestle and Shezan juices who do not pose a threat to Coke as yet but has the potential to do so as it is exploiting the natural aspect and health issues more and more to
Strategic Marketing Page 51
make people conscious about physical fitness Coke has launched “Diet Coke” to counter the physical fitness demands.
BUFFERING AND SMOOTHING
For beverages like Coke the buffering and smoothing policies doesn’t matter and they don’t apply anymore because Coke remains in demand all the year round in festivals, parties, events, meetings sports etc.
Coca-Cola has authorized suppliers and which do not pose a threat to it. Any how Coke does have a quality check procedures in its plants to ensure that they get the right kind of ingredients from suppliers.
If market has low quality carets of bottles by chance, they call their sales mangers to lift up all the stock from the market then inquired from the quality inspector. They take strict notice of that .and don not take materials from that company again if that default is due to the ingredient contains by it.
Coca-Cola is not afraid of competing .it doesn’t fear losing its share to Mecca-Cola or other new entrants. The company management believes that new entrants provoke healthy competition, which will provide Coke with a challenge to hold on to its loyal customers. Besides it will take a lot of effort on the part of new entrants like Mecca- Cola, Pak-cola to fully launch its product in Pakistan and capture or even motivate people to switch on to their new product from Coke.
BRAND NAME, SYMBOL, BOTTLE SHAPE.
Brand name, symbol and bottle shape are distinctive features of Coca-Cola which give it an edge over its competitors. (Even without name people can easily identify Coke’s, fanta’s, and sprite’s bottle from crowd.) They cannot be copied or imitated by others.
Coca-Cola has successfully addressed to the needs of its health conscious overweight customers with the launch of diet Coke. Its competitor has yet to come up with and counter diet Coke properly.
SNATCHING AWAY CUSTOMERS
In the market Coke has been able to snatch large customers like Food Street, Pakistan Railways, McDonald’s, as well as Sponsorship events (basant, Eid, concerts etc.) from Pepsi mainly due to its superiority in the following areas.
Cost: It is very economical, justifies performance, Quality: No quality compromise, get the best all over Pakistan at any cost. Innovation: new ideas for billboards design, sponsorship, changing their slogans time to
time, according to the needs of the market.
Speed: On time delivery in all over the Pakistan.
The Coca Cola Company exists to satisfy the consumers’ needs. The Coca Cola Company has over 400 brands of drinks designed to satisfy a very wide range of consumers. They are able to provide drinks for many different target markets including, people of all ages, sexes, races, etc. Coca-Cola products are able to sell to a diverse worldwide population and its success is unmatched. In today’s society, people are looking to lead better, healthier lives, Coca Cola seeing this trend has begun to produce, diet drinks that have the same great taste as their regular drinks while still being low fat or low calorie drinks, such as diet coke, or coke zero. Coca Cola products are purchased by all the different classes, but mainly by the middle and high-class citizens, because they have more money to spend on luxury items. Coca Cola is a very successful company; due to their success they are able to spend more money making their factories work more efficiently. They can do this by updating the equipment used to produce their drinks. Although people today are becoming more conscious about their environment, and the damage that has been done in prior years. Many people make their purchase decisions partially based on a company’s ethics, or social responsibility. By contributing to stop pollution both within and outside their factories, they will gain the trust and respect of the potential buyers, who care about saving our environment. In gaining their trust and respect more people will be willing to purchase their products, because the company stands for the same goals that their consumers are trying to protect. The Coca Cola Company tries to be more environmentally aware.
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats inside a company, project, or a business venture. It involves identifying the internal and external factors that are favorable/ unfavorable for business to succeed.
INDUSTRIAL SWOT ANALYSIS
The soft drinks market in Pakistan enjoyed dynamic growth over the review period in both volume and current value terms. Carbonates dominate the market in both the on-trade and off-trade with the lion’s share of sales. Carbonates have become part of the culture in Pakistan and multinational companies have maintained their standards over the years to provide consumers with high quality carbonated drinks. Off-trade sales of carbonates are higher than those of the on-trade but both achieved strong growth over the review period.
Liquid concentrates and power concentrates are both seasonal categories in the market and their sales peak in the summer in Pakistan. Both Rooh Afza and Jam-e-Shirin are traditional sandalwood drinks in Pakistan which are highly regarded by consumers. These drinks can be found in every home in Pakistan, especially in rural areas throughout the summer and are the mainstay of liquid concentrates.
The Government of Pakistan has reduced excise taxes to encourage soft drinks manufacturers and importers. The Government also reduced other applicable taxes to promise more profit not only for soft drink manufacturers already in the market but also to attract potential soft drinks manufacturers to invest in Pakistan. Tax reductions proved extremely beneficial to the soft drinks market in Pakistan and certainly encouraged and attracted multinational companies to invest in the country’s soft drinks industry. The government also decided to tax the beverage industry on capacity of production rather than on actual production
Strategic Marketing Page 55
and that brave move encouraged soft drinks manufacturers to maximize production and reduce prices.
Increasing health and hygiene awareness among Pakistanis has greatly increased sales of fruit/vegetable juice products. Both the government and the media have started health awareness campaigns to make Pakistanis realize that consumption of fruit/vegetable juice is as essential as eating food. Fruit/vegetable juices are doing very well in both urban and rural areas. On the other hand, health and hygiene awareness has also led to increased sales of bottled water in Pakistan. Previously bottled water was targeted on at major cities where consumers are more healthconscious and aware of the difference between bottled water and tap water. Nowadays, health conscious rural inhabitants also drink bottled water due to health concerns.
SWOT ANALYSIS OF COCA COLA
-Popularity -well known -branding obvious and easily recognized -A lot of finance -customer loyalty -International Trade
-Word of mouth -lack of popularity of many Coca Cola’s brands -Most unknown and rarely seen -result of low profile or non-existent advertising -health issues
-changing health-consciousness attitude -legal issues -Health ministers -competition (Pepsi)
-many successful brands to pursue -advertise its less popular products -buy out competition. -More Brand recognition
Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths that are virtually incomparable. Coca Cola is known very well worldwide. It's branding is obvious and easily recognized. Things like, logos and promos shown on t-shirts, hats, and collectible memorabilia. Without a doubt, no beverage company compares to Coca Cola's social popularity status. Some people buy coke, not only because of its taste, but because it is widely accepted and they feel like they are part of something so big and unifying. At the other end of the spectrum, certain individuals choose not to drink coke, based solely on rebelling from the world's idea that coke is something of such great power. Overwhelming is the best word to describe Coca Cola's popularity. It is scary to think that its popularity has been constantly growing over the
Strategic Marketing Page 57
years and the possibility that there is still room to grow. If you speak the words “Coca Cola”, it would definitely be recognized all around the world. Money is another thing that is strength of the company. Coca Cola deals with massive amounts of money all year. Like all businesses, they have had their ups and downs financially, but they have done well in this compartment and will continue to do well and improve. The money they are earning is substantially better than most beverage companies, and with that money, they put back into their own company so that they can improve. Another strength that is very important to Coca Cola is customer loyalty. The 80/20 rule comes into effect in this situation. Eighty percent of their profit comes from 20% of their loyal customers. Many people/families are extremely loyal to Coca Cola. It would not be rare to constantly find bottles and cases of a product such as coke in a house. It seems that some people would drink coke religiously like some people would drink water and milk. This is an improbable feat. Customers will continually purchase these products, and will probably do so for a very long time. If two parents were avid Coca Cola drinkers, this will be passed down do their children as they grow loyal to the company. With Coca Cola’s ability to sell their product all over the world, customers will continue to buy what they know and what they like…Coca Cola products.
Coca Cola is a very successful company, with limited weaknesses. However they do have a variety of weaknesses that need to be addressed if they want to rise to the next level. Word of mouth is probably a strength and weakness of every company. While many people have good things to say, there are many individuals who are against Coca Cola as a company, and the products in which they produce. Word of mouth unfortunately is something that is very hard to control. While people will have their opinions, you have to try to sway their negative views. If bad comments and views are put out to people who have yet to try Coca Cola products, then that could produce a lost customer which shows why word of mouth is a weakness. Another aspect that could be viewed as a weakness is the lack of popularity of many of Coca Cola’s drinks. Many drinks that they produce are extremely popular such as Coke and Sprite but this company has approximately 400 different drink types. Most are unknown and rarely seen for available purchase. These drinks do not probably taste bad, but are rather a result of low profile or nonexistent advertising. This is a weakness that needs to be looked at when analyzing their company. Another weakness that has been greatly publicized is the health issues that surround some of their products. It is known that a popular product like coke is not very beneficial to your body and your health. With today’s constant shift to health products, some products could possibly loose customers. This new focus on weight and health could be a problem for the product that is labelled detrimental to your health.
Coca Cola has a few opportunities in its business. It has many successful brands that it should continue to exploit and pursue. Coca Cola also has the opportunity to advertise its less popular products. With a large income it has the available money to put some of these other beverages on the market. This could be very beneficial to the company if they could start selling these other products to the same extent that they do with their main products. Another opportunity that we have seen being put to use before is the ability for Coca Cola to buy out their competition. This opportunity rarely presents itself in the world of business. However, with Coca Cola’s power and success, such a task is not impossible. Coca Cola has bought out a countless
Strategic Marketing Page 58
number of drink brands. An easy way to turn their profit into your profit is too buy out their company. Even though this may cost a vast amount of money initially, in the long run, if all goes to plan, it results in a large profit. Also, the company will no longer need to worry about this product being part of the competition. Brand recognition is the significant factor affecting Cokes competitive position. Coca Cola is known well throughout 90% of the world population today. Now Coca Cola wants to get there brand name known even better and possibly get closer and closer to 100%. It is an opportunity that most companies will ever dream of, and would be a supreme accomplishment. Coca Cola has an opportunity to continue to widen the gap between them and their competitors.
Despite the fact that Coca Cola dominates its market, it still has to deal with many threats. Even though Coca Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness attitude of the market could have a serious effect on Coca Cola. This definitely needs to be viewed as a dominant threat. In today’s world, people are constantly trying to change their eating and drinking habits. This could directly affect the sale of Coca Cola’s products. Another possible issue is the legal side of things. There are always issues with a company of such supreme wealth and popularity. Somebody is always trying to find fault with the best and take them down. Coca Cola has to be careful with lawsuits. Health minister could also be looked at as a threat. Again, some people may try to exploit the unhealthy side of Coca Cola’s products and could threaten the status and success of sales. Other threats are of course the competition. Coca Cola’s main competition being Pepsi, sells a very similar drink. Coca Cola needs to be careful that Pepsi does not grow to be a more successful drink. Other product such as juices, coffee, and milk are threats. These other beverage options could take precedent in some people’s minds over Coca Cola’s beverages and this could threaten the potential success it presents again.
PRODUCT LIFE CYCLE OF COCA COLA
The Product Life Cycle (PLC) is used to map the lifespan of a product. There are generally four stages in the life of the product. These four stages are the Introduction stage, the Growth stage, the Maturity stage and the Decline stage. The following graph illustrates the four stages of the PLC:
There is no set time period for the PLC and the length of each stage may vary. One product’s entire life cycle could be over in a few months. Another product could last for years. Also, the Introduction stage may last much longer than the Growth stage and vice versa.
INTRODUCTION STAGE OF COCA COLA.
In the Introduction stage, Coca Cola was launched and initially promoted. Efforts were made for creating its awareness in the market, inducing trial of the product and securing space in the outlet shelf. When their costs were high, sales volume were low, and there was no existing demand for Coca Cola in this stage.
GROWTH STAGE OF COCA COLA
In the growth stage Coca Cola experienced rapid increase in sales volume and its competition began to increase. People got more awareness about Coca Cola and the increase in the competition leads it to decrease prices. In this stage the marketing strategies used by Coca Cola were as follows: ➢ ➢ ➢ ➢ Product improvement New models were developed It entered new market segments It enlarged its distribution channels.
MATURITY STAGE OF COCA COLA
Coca Cola is in the Maturity stage from years now. The marginal costs of Coca Cola are low in this stage, sales volume is at the peak and most of the market is covered. There is increase in competitors which are entering in the market. Coca Cola’s brand differentiation and features diversification is emphasized to maintain and increase market share.
This is the stage in which sales of the product begin to fall. Either everyone that wants to, has bought the product or new, more innovative products have been created that replaces that product. The only way to increase sales during this period is to cut the cost of the product.
Growth is the main objective of every organization. They look forward for expanding & growing in different markets & making a variety in their product line. A company can identify their growth through the product-market expansion grid. The approach is known as ANSOFF. Coca Cola Company can also identify its expansion through the ANSOFF approach.
Market Penetration is the strategy, which every company has to opt when it reaches a maximum height of growth. Coca Cola in Pakistan is doing market penetration through the selling its products to the business buyer, who are huge multinational organizations like McDonalds, Subway, Dunkin Donuts and many more. They are also keeping the local market in focus. Fri Chiks, AFC, PFC are examples of the buyers in the local market. They are selling the Coca Cola as the only beverage in their restaurants.
Market Development is exploring new markets for the products you are already selling. Many flavors of Coca Cola are not being sold in Pakistan. Coca Cola can develop a new market if they introduce those flavors in Pakistan. Many people in Pakistan want a change in the beverage industry, as they are having the same flavors from many years.
A company takes a risk when it does Product Development, there is a chance that it looses its customers or there will be a crowd of people demanding their product. Coca Cola Company can do product development by introducing the new flavors in Pakistan which are not sold anywhere in the world by the coke company. The company has to put large effort in that, as it has to conduct all market research & feasibilities for it. But there is also an opportunity for them as they know the market of Pakistan, that what the people here can afford & what taste they want.
Diversification strategy is one which every company really wants to practice. There are lots of chances of growth but the risk factor is also there. The company can manufacture products, which are not manufactured by it before. Coca Cola is only dealing in beverages but it can also manufacture its own snacks item as the company name is known almost all over the world. So it can cash the name by producing the items, which are eaten with the beverages.
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. In evaluating different market segments, a firm must look at three factors:
➢ Segment size ➢ Segment growth ➢ Segment structural attractiveness and company objectives and resources. There is no single way to segment a market. The market has to try different segmentation variables, alone and in combination, to find the best way to view the market structure.
This is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. After evaluating different segments, the company must now decide which and how many segments it will target, because buyers have unique needs and wants, a seller could potentially view each buyer as a separate target market. Ideally, then, a seller might design a separate marketing program for each buyer. There are three types of market segments.
➢ Undifferentiated marketing. (Mass Marketing) ➢ Differentiated marketing. (Segmented Marketing) ➢ Concentrated marketing. (Segmented Marketing, small segment)
SEGMENTATION STRATEGY COCA COLA
Coca cola serves its products using mass marketing technique, which obviously falls in undifferentiated marketing, and undifferentiated marketing means no segmentation, but there are minor factors on which we can say that the coke segments its products and then targets the customers somehow. These factors are as follows.
Coke segments its products country wise and region wise, here the most important thing is the taste and the quality, it varies according to the taste and the income level of the people in that country, and i.e. Third world counties are given low quality taste. Coca Cola Company tries to satisfy the needs of a whole line of different people. They have drinks that target different, age groups, ethnic groups, sexes, lifestyles, etc. There are some of the different brands: Oasis This is a juice made for the younger working adults, 20-30. It is available in berry, lemon and orange tangerine. This drink is most popular in Britain and Ireland. Minute Maid Minute Maid targets kids and adults, ages 1-10 and 40+. This drink is conveniently packaged to take with you on the go anywhere. The health check is part of the reason for the wide target market, parents want their kids to be healthy and so knowing that this product is accepted by such a well known respected company pleases the parents and gives them a sense of relief. Coca Cola The Coca Cola drink is by far there most successful drink. It is very popular among many different nations. It is a soft drink. Because of the huge demand for the coca cola drink, and the trend towards healthier lifestyles coca and begun to produce spin-offs of the coca cola product. They have made drinks such as coca cola zero, coca cola diet, coca cola C2, coca cola with lime etc. By having all these different drinks with the same basic taste they are able to target a much bigger market. Due to the large success of the drinks coca cola is in demand worldwide. As such the Coca Cola brand is sold in most countries in the world. Coca Coal Zero This drink is specifically targeted at teens that don’t want the calories that come with coke but want to same great taste. This Product is sweetened with aspartame. Coca Cola Diet
Strategic Marketing Page 65
The diet drinks are targeted at adults of ages 30-50, who are health conscious but still love the great taste of coke. This drink is sugar less. Coca Cola with lime The drink is sold in both regular and diet. It is for a wide range a coke lovers who are looking for an extra little punch. Sprite This is a soft drink that has many different target markets. This product has a different taste then coke all together and is not as popular but it is still a very popular drink. Like coke it also has a whole other line of drinks associated with it, such as diet sprite, sprite zero, sprite with a hint of lime. This drink is also sold in many places worldwide. Powerade Powerade is a sports drink. It is designed with a great taste and is also thirst quenching. It is made for athletes of all ages, sexes and sports, but they would target this drink at teens and young adults, age’s 13- 27. This drink is sold in many places but mostly over North America. Aquarius Aquarius is a sports drink, enjoyed by people who have healthy lifestyles. It is made for athletes of all ages, sexes and sports, but they would target this drink at teens and young adults, age’s 1327. This produce is very well known in Europe. Particularly in France, Norway, Spain. But it is still known all over. It became even more successful when it became the official drink of the Olympic games in Barcelona in 1992. Full Throttle This is an energy drink. It is designed for athletes both male and female but particularly males, of ages 14-25. As we can see by looking at a select few of coca colas drinks they have a wide variety of drinks to satisfy everyone’s needs.
Weather is the third major factor in effecting the Coke’s selling. In coke marketing, main idea is to serve it cold, so we can say that, they focus more on hot areas of the world, i.e. middle east etc and there sale increase in summer. This is underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%.. It is a source of refreshment when a person is thirsty due to the hot weather.
In Pakistan the coke segments more in urban and suburban areas as compare to rural. 35 % population resides in urban areas and 65% population lives in rural areas in Pakistan. Coca Cola is focusing on urban areas as people there are more inclined towards such beverage while people in rural areas are more inclined drinking lassi and desi drinks.
Internationally coke has segments the small children introducing tastes like vanilla, lime and cherry, they focus children from 4-12. Coke specifically target more young people than older. Pakistan is considered to be a young country i.e. average age of Pakistani population is less than 38 years. Thus targeting young generation can be a beneficial marketing strategy for soft drink companies. In fact this is the case, all the major brands like Coca Cola, Pepsi mainly target younger generation in Pakistan.
Coca Cola targets both genders with its wide variety of drinks. This market is relatively large and is open to both genders, thereby allowing greater product diversification.
Coca Cola introduces its economy pack, and that’s how they focus family and groups.
Coca Cola segments different income levels by packaging. Like for small income people it has small returnable glass bottle, for middle people it has non returnable bottle and for higher income people it has coke tin.
All psychographics variables the social class, lifestyle, occupation, level of education and personality, Coca Cola segments everyone, but again it is their packaging which is different for different consumers.
Coca Cola is a well known brand. People who are brand conscious will not drink beverages of less known brands and quality such as Amrat cola. They will try to show their status by drinking Coca Cola which is known to all as a quality drink.
LEVEL OF EDUCATION
A company has to make promotional strategies keeping in view the customer level. If the percentage of education is high in a country then through advertisements people can be made well aware of their product and can convey their message easily. Promotion and education has a direct relationship.
It is how people perceive a specific product, in short psychological analysis of a product. Coca Cola all over the world is recognized as a quality drink and therefore people drink it without any hesitation whenever they are thirsty or otherwise. So marketers of Coca Cola have made it a drink for all people and for diabetic people they introduced diet Coke.
A very special occasion for the people of Pakistan Ramzan, people emphasis on enjoying Coca-Cola at “Iftar” and then on Eid with friends & family with super price off promotion.
Sometimes, for the promotion strategy of coke, Coca Cola Company introduce prizes in the top cover. So they segment people by benefit sought, i.e. by giving them prizes.
MARKETING MIX OF COCA COLA
Marketing decisions generally fall into the following controllable categories: ➢ Product ➢ Price ➢ position
Strategic Marketing Page 68
➢ Place (distribution) ➢ Promotion
PRODUCT STRATEGY OF COCA COLA
Product: Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.
LEVELS OF COKE AS A PRODUCT
Core benefit is that it fulfills the thirst.
Design: Pet bottles, returnable glass bottles, economy packs. Quality: Quality differs with respect to country for example. Coca-Cola Can quality that is available in Middle East is certainly different as compared to Coke Can available in Pakistan.
Coke is categorized as a convenience product, because the purchasing rate is very high and this is the product that is bought very frequently.
INDIVIDUAL PRODUCT DECISIONS
As far as coke is concerned brand equity for the customers is very high. People are highly brand loyal.
The following is the brand strategy of Coke
➢ LINE EXTENSION
Strategic Marketing Page 70
Line extension occurs when a company introduces additional items in a given product category under the same brand name. For example if Coke introduces new flavors and package size, it will be considered as line extension.
➢ BRAND EXTENSION
Brand extension means using a successful brand name lets say Coca-Cola and then launching new product for example cherry coke. This was an example of brand extension.
It means introducing additional brands in the same category. For example Coca-Cola not only introduced coke as a brand but also sprite and Fanta.
It means introducing new product with the new brand name. It means diversification but this is something Coca-Cola has not adopted for as yet.
PRODUCT LINE DECISIONS
PRODUCT LINE LENGTH
It means the number of products that company is offering. For example Coke, Diet Coke, Fanta, Sprite etc.
PRODUCT LINE FILLING
Product line filling means that earlier when Coca-Cola started it had only one flavor of coke available and that is classic coke but with the passage of time company filled the product line by adding diet coke, diet lemon etc.
PRICING STRATEGY OF COCA COLA
The amount of money charged for a product or service, or sum of the values that consumers exchange for the benefits of having or using the product or services. As price gives us the profit so this P is very important for business price of product should be that which gives maximum benefit to the company and which gives maximum satisfaction to the customer. Following factors Coca Cola kept in mind while determining the pricing strategy. ➢ Price should be set according to the product demand of public. ➢ Price should be that which gives the company maximum revenue. ➢ Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy your product. ➢ Price must be keeping the view of your target market. The price of Coca Cola, despite being market leader is the same as that of its competitor Pepsi Cola. Sometimes, Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle and consumers think that they save a lot of money from this.
PRICES OF DIFFERENT BOTTLES Size of Coca Cola
Regular bottle Non returnable or disposable bottle 1.5 liter bottle 2.25 liter bottle Coca Cola can
Price of Coca Cola (RS.)
12 25 60 70 30
COMPETITION BASED PRICING APPROACH
Coca Cola has intense competition with Pepsi so its pricing can’t exceed too much nor decrease too much as compared to the price of Pepsi Cola. If price of the Coca Cola exceed too much from the Pepsi then people will shift to the Pepsi Cola and on the other hand if the price of Coca Cola decreases people might get the impression that its quality is also low.
PROMOTIONAL PRICING POLICY
Coca Cola has offered promotional prices very frequently. Especially on some occasion Coca Cola reduces its rates like in Ramzan Coca Cola reduces its rate unto 5 Rupees on 1.5 liter bottle.
MARKET PENETRATION PRICING POLICY
Prices in beverage industry are determined by the consumer. In an economy like that of Pakistan, consumers tend to switch towards a low priced product. Coca Cola’s objective is to target every consumer of the country so Coca Cola has to set its prices at such a level which no one can offer to its consumers. That is why Coca Cola charges the same prices as are being charged by its competitors. Otherwise, consumers may go for Pepsi Cola in case of availability of Coca Cola at relatively high price.
Coca Cola offers various discounts to those retailers who have the maximum sales of Coca Cola products on daily, monthly and on seasonal basis. Some of the main discounts given to the retailers are as follows:
Following are discounts offered by Coca Cola.
➢ 1/10 DISCOUNT
I.e. one case of Coca Cola is free on buying 10 cases of Coca Cola at one time.
➢ 2/20 DISCOUNT
I.e. two cases of Coca Cola are free on buying 20 cases of Coca Cola at one time.
Following are discounts offered by Coca Cola. Coca Cola also offers seasonal discounts schemes by reducing price in Ramadan and on Eid. Coca Cola also offers trade in allowance for retailers.
➢ 3 B – F DISCOUNT
I.e. sometimes, especially in the off-season duration, in order to increase the sale of Fanta and Sprite, 3-BF discount is given (i.e.) 3 bottles free on purchasing every case of Fanta and Sprite.
Mainly two types of incentives are given by the Coca Cola:
Strategic Marketing Page 74
INCENTIVE TO RETAILERS
Coca Cola provide various incentives to retailers on the best sales and achieving the predetermined sales targets. These incentives are in the shape of: ➢ Deep Freezers ➢ Return Tickets ➢ Free Transportation Services.
INCENTIVE TO DEALERS
The first, second and third best dealers of the year are awarded.
There is no credit system in the beverage industry. Every single bottle is sold on the cash basis.
Coca Cola gives special offers to consumers on special occasions like Ramadan and Eid days instead of decreasing the price of the products, some special packs like Pakkora Mix, Chat Massala, or Free Drinks with Liter Bottles are offered.
The way the product is defined by consumers on important attributes, the place the product occupies in consumer minds relative to competing products.
More Same Less
Here if we talk about more price and more benefits, we can discuss Coca Cola and Pepsi. As both are the market leaders and 90% market share of Pakistan beverage industry is secure by them & the rest 10% is secure by the rest. And we can also take Coca Cola and Pepsi as challenger for each other as both of them provides more for same, more for less & same for less. As they are giving their customers more benefits for same price and also more benefits for less price with respect to different packaging sizes.
Strategic Marketing Page 76
Others colas like Mecca Cola, Amrat Cola and Mountain Dew are offering same for same price and same benefits for more price. They are using followers strategy, as they follow the other market leaders and giving their customers same benefits for same price. Others colas like tha bottles (local colas) are offering less benefits for same price and less benefits for less price. As they have no existence in market and their products have no position or we can say very badly positioned in consumer minds.
LOGO OF COCA COLA
Logo is what establishes a brand name in the consumer mind. It is the brands identify, signature, image and more often it is a logo that makes of breaks a product logo plays a very effective role to improve the product or brand. Coca Colas kept on changing its logo from time to time along with the trade marks.
PACKAGING & LABELING OF COCACOLA
Packaging means the activities of designing and producing the container or wrapper for a product. Traditionally packaging decisions where based primarily on cost and production factors, the primary function of the package was to contain and protect the product the product. In recent time, however humorous factors have made packaging an important marketing tool. These factors include all acting attention describing the product making the sales. Packaging involves designing and producing the container or wrapper for product. The package may include the product’s primary container a secondary package that is thrown away when the product is about to be used and shipping package necessary to store , information appearing the product labeling printed information appearing on or with the packaging is also part of packaging. Label ways rouge from toys attached from product to the complex graphic that identify the product or brand, such as the product the label weight also described several things about the product that made its contents how it is to be used. Coca-Cola products, almost all of them are available in bottles of 250 ml, 500 ml pet jar, 1000ml, 1500 ml and 2000 ml bottles as well as 330 ml cans. The advantages of packaging are as follows
➢ In strip packaging there is aluminum foil on both the sides. Strip packing is done
for providing stability to those products which are having less productivity.
➢ In facilitating branding and advertising of products. ➢ In serving as a silent salesman. It induces the buyers to make re order.
➢ It has got display value. ➢ It helps the seller to increase his sales and obtained higher prices than he could get from unpacked good. ➢ Printed literature containing “Instruction to use the product” can be easily passed on to the consumers by putting in the package. ➢ Packaging given the product a prestige an individually and identity which the goods sold in loose form do.
LABELING OF COCA COLA
Strategic Marketing Page 79
Labels may range from simple tags attached to products to complex graphics that are part of the package. Labeling is mainly done in order to promote the product through attractive graphic. In the “Coca-Cola” company, the labels are provided with bottles.
PROMOTION STRATEGIES OF COCA COLA
They get or purchase shelves in big departmental stores and display their products in those shelves in that style which show their product clearer and more attractive for the consumers.
EYE CATCHING POSITION
Salesman of the Coca Cola Company positions their freezers and their products in eyecatching positions. Normally they keep their freezers near the entrance of the stores.
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 mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, TV sets, cash prizes etc. This scheme is very much popular among children.
Coca Cola Company makes two types of selling ➢ Direct selling ➢ Indirect selling
In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.
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.
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 OF COCA COLA
The field of advertisement is one area where Coca-Cola has always emphasized. In year 2000 Coca-Cola unveiled the biggest advertising billboards in the history of Pakistan. Each unveiling was marked by entertainment and light shows watched by thousands of people. Similarly in July 2000 Coca-Cola launched its first under the crown promotion by the name of Dream Vacations in which the consumers could collect caps of promotional bottles of Coca-Cola like Sprite, Fanta and Coke.
Type of advertising with respect to product life cycle that Coca-Cola adopts is reminder type. The reason behind this fact is that coke is such a product that is at the maturity level currently so for such a product companies mostly go for reminder type of advertisement so that they can penetrate more and more and same is the case with Coke.
SETTING OF ADVERTISING BUDGET
Coca-Cola sets its advertisement budget on the basis of competitor based budgeting. Major competitor of Coca Cola is Pepsi and as Coke realizes that Pepsi has increased its advertising budget, straight away Coca-Cola management plans to do the same so that they can compete in advertising department as well.
Before creating advertising message the Coca-Cola Company gives lots of time to the factor that the message must gain customer attention. This is basically called “Clutter Buster” means that only that advertisement will leave impact on customer mind that has some specialty or uniqueness in it. For example in India Coke current slogan “Thanda Matlab Coca-Cola” has gained reasonable customer attention.
Coca-Cola Company advertises its products mainly coke through electronic media that includes Television, Radio and Internet as well. Moreover leading newspapers of Pakistan are also the targeted by coke for advertising. So we can say that coke not only uses electronic but print media for advertisement as well. Coca Cola Company use different mediums ➢ Print media ➢ Pos material ➢ TV commercial ➢ Billboards and holdings
They often use print media for advertisement. They have a separate department for print media.
POS material mean point of sale material this includes: posters and stickers that are displayed in the stores and in different areas.
As everybody know that TV is a most common entertaining medium so TV commercials are one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.
BILLBOARDS AND HOLDINGS
Coca Cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.
EXPECTATIONS FOR THE COMING YEAR
Everything starts from the attitude of consumer’s behavior. And the basic key to attract the consumers is to throw the “money away”. And positive feeling felling with the brand, which they used to have Coke wants to advertise their products heavily in the coming year. And it will take the 10% of their profits. And when we take it as a global level it is $ I billion. Coming year is the challenging year for the industry of Coke. They have to take lots of decisions that how to increase the production and where they have to spend money. For gaining success in coming year they have to have some important things like: ➢ Loyal consumers are important for company’s success. ➢ Workers should be the brand centric not the promotion centric. ➢ They should know how much to for the brand activities. ➢ They should also know that how much to do with the promotion activities for brand.
HOW COKE DETERMINE THE YEARLY BUDGET
Coke determines its yearly budget by the ➢ Sales volume ➢ Profitability ➢ Target volume
Coke determines its yearly budget through the sales volume. 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. Otherwise they concentrate on their old strategies.
The second thing through which they determines budget is the “profit” .if they r getting profits with the high margin, then they definitely want to increase their profits in the next coming year. Every organization runs on the basis of getting high profits. No organization wants to face Loss in their business. To get profit is the first priority of the Coke.
To run the business every industry has some targets, which they want to achieve in a specific time period. If industry achieves those goals in that period then for the coming year it increases the volume of the target. So Coke Follow the same thing it has also some goals and targets to achieve in the given time period. When they succeed to achieve that target then they increase their target volume in the next year.
SALES PROMOTION ACTIVITIES
Cricket the most sought after; watched & played game in Pakistan .the game of cricket has been owned by various brands in the industry for the promotion of their products over a period of time. It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the beverage industry. The competition has become tougher & tougher as the time has progressed. Coca-Cola signed a sponsorship agreement with eight of Pakistan’s National cricket players. 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 CocaCola 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. This campaign helped Coca-Cola to establish its association with the game & the player.
Abrar-ul-haq’s distinct style, lyrics & songs have made him an instant hit among the masses in Pakistan. His enormous popularity in the country & abroad is supported by Coca-Cola’s commitment towards providing healthy & fun-filled entertainment for the youth of Pakistan. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured throughout the country. 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. Coca-Cola’s brand positioning of providing deep down refreshment for the body, soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar.
COCA-COLA FOOD MELA
With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the people of Karachi, to a festive food festival comprising of 50 restaurants, spread out all over the bustling city’s map. The promotion saw the avid families & friends enjoying the delicacies at the restaurants; all resiliently upholding the Coca-Cola identity.
COCA-COLA BASANT FESTIVAL
In February the month of basant the parks & horticulture authority in Lahore nominated CocaCola 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. Coca-Cola also hosted a concert of pop idol Abrar-ul-haq, had children’s parade & held the Coca-Cola kite flying championship during the basant festival. Now “where there is basant there is Coca-Cola”, it has been impossible to envisage basant without Coca-Cola. Coca-Cola give the more refreshing flavor to the colors of basant by adding more life to the festival, giving the consumer a unique experience which they had never tasted before.
Quenching the thirst of motorist, pedestrians & passerby’s during Lahore’s hottest summer season, Coca-Cola’s “GO-RED” teams went out into the cities main quadrants to “serve & refresh” on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement campaign the “GO-RED” stall, served well to promote the Coca-Cola industry.
COCA-COLA PARTY IN A PARK
In June 2000, Coca-Cola created an experiential musical evening in Lahore, where Junoon performed. This program was recorded and one-hour program shown in the national TV for free.10 million households saw Coca-Cola ‘Party in a Park’ while 10 thousand people attended the event.
COCA-COLA SHOPPING FESTIVAL
Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping festival, a resounding success with tempting discounts, live music, great prizes & fire works. Liberty marketing Gulberg was a hive of activity during the weeklong shopping extravaganza. The in augural event proved so popular that it is now set to become an annual fixture.
COCA-COLA PET PROMOTION
In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in Pakistan. Targeting house wives & family home, Coca-Cola’s 1.5 liter Pet bottle, took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits .A treat for the family, Coca-Cola’s PET was offered through a “price-off” promotion that said...Go out & get some Strategic Marketing Page 88
COCA-COLA RAMZAN CAMPAIGN
A very special occasion for the people of Pakistan Ramzan saw another very special CocaCola’s promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with a super price-off promotion. The emphasis on enjoying Coca-Cola at “Iftar” with friends & family.
COCA-COLA WONDER OF THE WORLD PROMOTION
In July 2000, Coca-Cola set the stage of the grand UTC promotion. Coca-Cola went ahead with the idea of giving consumer chances to win fabulous, magical “dream vacation” to numerous “wonder destination” throughout the world on every purchase of a 250 ml RGB bottle of Coca-Cola, Sprite, & Fanta.The promotion gave consumers a chance to win free drink, a trip to PARIS, HOLLYWOOD, NEWYORK, SINGAPORE & CAIRO along with airfare & four nights free stay in these dream lands. The promotion saw avid consumer collecting Coca-Cola ‘Crown caps’ & sparked a keen response from the public , rendering an outstanding testimonial campaign in the second phase, highlighting the winners over whelmed in the magical delight of their favorite beverage Coca-Cola.
COCA-COLA & NOKIA
In August 2001, the new under-the-crown promotion “Nikla Kiya?”(What have u won) was launched in collaboration with Chimera Nokia. 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 CocaCola ,Sprite, & Fanta. The other highlight of promotion was the “Caught Red Handed” campaign. Branded Coca-Cola with ‘caught red handed’ team in them went to Lahore & Karachi for three days, 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. Caught red handed become a huge success among the masses as it was one to one interaction between the Coca-Cola brand & the consumers. This activity helped build confidence and brand loyalty among core consumers.
COCA COLA TV MAZZA
The Coca Cola new campaign is Coca Cola TV mazza, it is a utc scheme in which people are getting television sets of different sizes. These days this scheme is very popular among the people.
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, both shares globally. The promotion kicked off with pos material (Danglers, Bunting etc) displayed at all MC Donald’s restaurants along with a special offer for coke & fries.
Strategic Marketing Page 89
FANTA & SPRITE LAUNCHED
In November 2000moving on to the Sprite & Fanta brands, the consumers in Pakistan witnessed a soft launch in essence. The Coca-Cola Company declared the new “Non-Returnable” bottles of Sprite & Fanta as the “New, On the Go Packs” flaunting the innovative packaging convenience. Fanta & Sprite are sure to enjoy considerable success in Pakistan.
After the acquisition of the individual local franchise bottling facilities in 1996, the company has successfully launched its first new product, diet coke, for the first time in almost 3 years. The was linked with three fashion shows as Diet Coke is related to fashion & fitness, but the major hit was thematic fashion shows in restaurants, which are the key accounts of the company as this has been never done before in Pakistan.
We have concluded from this detailed report that despite the fact Coca Cola currently occupies the market leadership position overall but it does not guarantee that the company will sustain its position in the future as well. In Pakistan as compared to Pepsi, Coca-Cola has less number of consumers as Pepsi’s market share in Pakistan is approximately 54% where as Coke market share is hovering about 36%, hence the conclusion is that Coca-Cola must enhance factors such as relationship marketing, innovation and technology especially in Pakistan to attain market leader position in this region as well.
After completing our project we have come up with following recommendations for the Coca Cola Company, which are following.
➢ Currently in Pakistan there are only two flavor of Coke available, company can extend
their portfolio by introducing new flavors. ➢ According to the survey, conducted by the international firm Pakistani people like less sweet cola drink. So for this Coca-Cola Company should think about bringing a new product for example new diet flavors, in the market to fulfill the local need. ➢ Marketing team should try to increase the availability of Coke in rural areas. ➢ Coca Cola Company should think about producing Coke Can locally as well because currently coke Cans are only smuggled from abroad and sold at high price. Company can capitalize on this factor.
www.cocacola.com www.thecocacolacompany.com www.wikipedia.com www.google.com Principles of Marketing by Philip Kotler Strategic Marketing by David W. Cravens Local Newspapers International Herald Tribune Newspaper The Nikkei Weekly magazine, Japan (Winter, 2009) Jamal Hassan