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Marketing Strategies Of
PRESENETED TO: MR. SUFIAN AHMAD
Sami Ullah Khan
Financial report. Coca Cola International. Acknowledgement. Bottlers owned by Coca cola 12. 9. 7. Mission statement 3. 13. 6. 4. 8. Strategic planning. 11. 2. a. 5. Pepsi b. b. c. Dividends and Cash Plan. • Market share. Coca Cola Pakistan. 10. Major Competitors a. Financial assets. History. Management.TABLE OF CONTENTS CONTENTS 1. Introduction. Coca Cola. Products. History. 5 . Market share.
Expanding target market i. Some basic information regarding marketing of coke a. Marketing strategies 16. Strategies of getting goals i. Marketing strategy: l. “high profits”: k. Products. Expectations for the coming year: m. 6 . Factors effecting sales: d. Strategies of quality: f. Pest analysis . How coke determine the yearly budget: 15. Threats and opportunities for price: j. Target market: b. Targets that would like to attain: h.• • • Financial report. Methodology 14. Threats from competitors: g.e. Major competitors: e. Major segments: c.
DEDICATION This report is dedicated to my beloved parents. 7 . Who educated me and enabled me to reach at this level.
Muhammad Shafique for their guidance through out the semester. what we think we might do well. The work of some unknown person makes our lives easier everyday. and so forth. First of all we would like to thank our teacher Mr. We believe it's appropriate to acknowledge all of these unknown persons. Then we would like to thank our friend and brother Mr. 8 . but it is also necessary to acknowledge those people we know have directly shaped our lives and our work. Zeeshan Anjum for providing us the information that was required for completion of this project. how we got here.ACKNOWLEDGEMENT We think if any of us honestly reflects on who we are. we discover a debt to others that spans written history.
We will be the best marketers in the world. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. 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 through out the day. and our communities. expand our share of worldwide nonalcoholic ready to drink beverages sales. including our consumers. We strive to understand 9 . and create economic value added by improving economic profit. 5.The Mission Statement of the Coca Cola Company Our mission statement is to maximize shareowner value over time. maximize our longterm cash flows. our bottlers. 6. The ultimate objectives of our business strategy are to increase volume. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. we must create value for all the constraints we serve. We will think and act locally. 3. 4. our customers. We will lead as a model corporate citizen. In order to achieve this mission. Consumer demand drives everything we do. 2.
whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. 10 . our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time. Ultimately.each customer’s business and needs. There are nearly 6 million people in the world who are potential consumers of our company’s product.
established in 1986. began to produce Coca-Cola syrup for sale in fountain drinks. at a split-adjusted price of $5. The Coca-Cola bottling system continued to operate as independent. to form Coca-Cola Enterprises Inc. The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale. 1986. Whitehead . total unit case sales were 880. secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. local businesses until the early 1980s when bottling franchises began to consolidate. The Coca-Cola Company traces it’s beginning to 1886. Dr.50 a share. In 1986. the John T. The Company offered its stock to the public on November 21.COCA COLA INTERNATIONAL HISTORY: Coca-Cola Enterprises. 11 . However the bottling business began in 1899 when two Chattanooga businessmen. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. On an annual basis. Benjamin F. when an Atlanta pharmacist.000 in 1986. is a young company by the standards of the Coca-Cola system. Thomas and Joseph B. John Pemberton . Lupton franchises and BCI Holding Corporation's bottling holdings.
4 billion. and total revenues were $5 billion MANAGEMENT: The hierarchy of Coca Cola Company is as follows. Inc. the senior management team of Johnston assumed responsibility for managing the Company.In December 1991. successful restructuring in 1992. (Johnston) created a larger. stronger Company. a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group.Unit case sales had climbed to 1. again helping accelerate bottler consolidation. and began a dramatic. As part of the merger. Chairman Board of governors Vice Chairman and chief operating officer Executive Vice Presidents Senior Vice Presidents Vice Presidents 12 .
GLOBAL MARKET SHARE: The following table can show the worldwide operating segments. This company controls about 59% of the world market. (Table) Unit case growth Nonalcoholic All commercial Beverages 2002 10 year compound annual growth Compan y Industry 5-year compound annual growth Compan y Industry 2001 annual growth Compan y Industry drink 2002 Company share Compan y share Compan y per capita Income 6% 5% 5% 5% 4% 4% 18% 9% 70 13 . Coca Cola enjoys the largest market share.MARKET SHARE: SHARE Being the biggest company in the soft drink industry.
that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success. 14 . the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. The data of the global unit sale of the Coca Cola Company can be represented by following chart. In 2002. The global unit sale of the Coca Cola Company is increasing from the last ten years. Thus they are increasing their market day by day.This shows that the market of the company is geographically vast and it is controlling it with great success. (Figure) This strategy has worked a lot and it has helped them to become the World’s leading Soft Drink Company. The operation income earned by Coca Cola Company can be illustrated by the following pie chart. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume.
There is a worldwide volume increase by 4% with strong international growth of 5%. which has deepened the relationship of the customers and Coca Cola. 15 . 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.(Figure) 12 10 8 6 4 2 0 1971 1981 1991 2002 unit sale in billions So there is positive growth in the market of the Coca Cola Company. This is only due to the innovative marketing programmers.
The main reason behind this relationship is to continue realizing shared opportunities for growth. The operation review according to the segments is as follows. The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners.8 billion. with closer coordination of operations including customer relationships. Operation Review (2002 worldwide unit case volume by operating segment) NORTH AMERICA 30% LATIN AMERICA 25% EUROPE & MIDDLE EAST 22% ASIA AFRICA 17% 6% 16 . logistics and production. The world wide total is about 17.In 2002. the company had worked with their bottlers to turn good intentions into reality by improving the system economics. MARKET SHARE BY AREA: Coca Cola is the world-renowned soft drink and the company is currently operating through out the world.
The column. The country column is derived from The Company's unit case volume while the industry column includes nonalcoholic ready-todrink beverages only. The data about the market share of this company area wise is given in the following table. we can find out that the customers of Coca Cola are increasing which is shown by the company’s per capita income.NORTH AMERICA LATIN AMERICA EUROPE & MIDDLE EAST ASIA AFRICA So the volume is least in the Africa and most in the North America. Unit case equals 24 eight-ounce servings. as estimated by the Company based on available industry sources. (Table) 17 . as estimated by the Company based on available industry sources. which shows the non-alcoholic beverages consist of commercially. sold beverages. The above table shows the geographical earning of the Coca Cola Company and from this data.
Country Unit case growth Nonalcoholi c All commercial Beverages 10 year compound annual growth Compan y Industry 5-year compound annual growth Compan y Industry 2002 annual growth Compan y Industry Drinks 2002 2002 Compan y share Compan y share Company per capita Income North America United States Latin America Argentin a Brazil Chile Mexico Europe & Middle East Eurasia France German y Great 4 4 6 7 5 9 7 6 5 5 7 4 5 6 10 3 3 3 6 6 3 5 8 5 3 3 6 2 6 3 9 3 2 2 3 7 3 (2) 2 2 2 2 4 2 5 3 5 4 22 23 24 20 23 56 22 12 15 16 15 10 13 23 18 6 398 419 205 236 144 336 462 72 17 8 1 8 8 3 2 2 6 9 (1) 11 5 3 1 2 18 (14) 7 (6) 8 1 3 1 3 14 9 14 17 5 5 7 6 39 110 193 193 .
In China.2 billion and the average consumer enjoys close to two servings of our products each month. this region has strong long-term potential. which is the satisfied customer of Coca Cola. the company has achieved volume growth of 10 percent in 2002.Britain Italy Middle East Spain Asia Africa 1 12 6 7 7 3 12 4 6 6 4 7 8 6 8 3 5 5 7 3 2 4 4 10 10 2 8 4 7 6 9 8 17 14 34 6 3 12 5 11 104 17 264 23 34 In Asian population. led by Coca-Cola. With developing economies and populations. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart. is approximately 3. Through an intense focus on Coca-Cola. and the company is building an exciting family of beverage brands in addition to expanding the popularity of our core brands. for example. innovation and new beverages. (Figure) 19 . sales of Coca-Cola increased 6 percent.
So the company is emphasizing more in this area and is trying to develop a strategy. Among others. which is about 29%. Among the countries of Asia. Japan has the highest percentage. which can increase the growth of the consumption of Coca Cola by the people of Asia. India and Bangladesh are those countries where the average consumption is increasing day by day. Pakistan. 20 .
1 1% 45% 82% 82% 82% 15% 24% 6% 108% 12% 5% 2% 4% 21 .FINANCIAL REPORT: This company is financially very strong.5 5.691 2.6% 38. The financial report of Coca Cola Company of the year 2001 and 2000 along with the percentage change is as follows.110 (963) (1.9 5. (In millions except per share data. ratios and growth rates) 2002 2001 Percentage change Net operating revenues Operating income Net income Net income per share (basic) Net income per share (diluted) Net cash provided by operating activities Business reinvestment Dividends paid Share repurchase activity Free cash flow Return on capital Return on common equity Unit case sales (in billions) International operations North America operations Worldwide 20. the company is still surviving the ups and down of the business world.882 0.177 0.092 5.969 1.5% 12.601 4.2 17.889 3.806 16.685) (133) 2.2% 23. (Table) Year Ended December 31.8 19.585 (779) (1.791) (277) 3.1% 11.601 1. It is due to the strong finances.882 3.3 17.147 26.352 3.
• $..05 per share after income taxes related to the merger of Coca-Cola Beverages plc and Hellenic Bottling Company S. $.01 per share after income taxes related to incremental marketing expenses in Central Europe. and $.02 per share after taxes.19 per share after income taxes related to the Company's portion of charges recorded by the investors of the company.2002 basic and diluted net income per share includes a non-cash gain of $.24 per share after income taxes related to an organizational Realignment. DIVIDEND AND CASH INVESTMENT PLAN: 22 . These charges are partially offset by a gain of $. • $.A.04 per share after income taxes related to benefits from a tax rate reduction in Germany and from favorable tax planning strategies. which was recognized on the issuance of stock by Coca-Cola Enterprises Inc. manufacturing and intangible assets. 2002 basic and diluted net income per share includes the following charges: • • $. one of the equity investors of this company. • $.16 per share after income taxes related to the impairment of certain bottling.05 per share after income taxes related to the settlement terms of a discrimination lawsuit.
All shareowners of record are eligible to participate. Shareowners also may purchase Company stock through voluntary cash investments of up to $125. 76 percent of the Company's shareowners of record were participants in the Plan.000 per year.The Dividend and Cash Investment Plan permits shareowners of record to reinvest dividends from Company stock in shares of The Coca-Cola Company. shareowners invested $36 million in dividends and $31 million in cash in the Plan. economical and systematic method of acquiring additional shares of our common stock. 23 . At year-end. The Plan provides a convenient. In 2002.
000 54.2 billion 87% 13% 72. The statistics is as follows. This is because.3 million 25 361 50 436 72% 46 45% 51% 4% 59% . There is a constant increase in every aspect when we compare the statistics of 2001 and the statistics of 2002.4 million 25 385 53 463 80% 46 44% 52% 4% 63% 2001 3. results in the percentage change in the statistics of the two years.8 billion 87% 13% 67.000 52. The expansion of this company. which shows the success of Coca Cola brands.COMPANY STATISTICS: The statistics of this company is impressive. Coca Cola Company is increasing its volume day by day. Since it is operating through out the world that is why the number of employees and the bottling equipments is highest among the other bottling companies. (Table) 2002ª Equivalent cases Bottle and cans Fountain Employees Vehicles Cold drink equipments Facilities Production only Distribution Combination Total Percent of North America population coverage Number of States of Operation Bottle and can equivalent case package distribution Cans Non-refillable bottles Refillable bottles Capital structure Net debt to total capital ratio 24 4.000 2.000 2.
39 9% $1. and other non-operating items. • Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable securities.EBITDA interest coverage Weighted average cost of debt Key Statistics Constant territory bottle and can volume growth Bottle and can net revenues per case change Bottle and can cost of sales per physical case change Reported EBITDA (in billions) Reported EBITDA change Capital expenditures( in billions) %-age of net operating revenues Coverage of North American Can/bottle volume 3 6. PRODUCTS: 25 . and amortization.97 6% 83% 3 6.3% 3% Flat 1 $1. depreciation.18 8% 74% EBITDA is the Earnings before interest. taxes.95 (18)% $0.8% ½% 2% ½% $2. • Equivalent Case or Unit Case is the physical case and fountain gallons converted to a standard unit of measure defined as 24 eight-ounce servings or 192 ounces per equivalent case sold by Coca-Cola Enterprises.
Major brands of coca cola • • • • • Coke Sprite Fanta Diet coke Coke classic 26 . which are currently in use through out the world. This company not only deals in the carbonated drinks but also other drinks. the marketing team considers the culture of the country.There are different brands of the Coca Cola Company. While launching its product.
making it the second biggest contributor to the growth of 27 . This year. Backed by a strong network of bottling partners through out the United States. Coca-Cola Company also successfully energized a major piece of its beverage strategy—water. it’s bottled water volume exceeded 570 million unit cases. By the end of 2001. Bonaqua in Russia and Kinley in India. (Figure) The commitment of the company is to devote resources to water only in markets where it expects profitable growth. including Ciel in Mexico. the entire Turkuaz brand team worked together to launch Turkey's first purified water brand. The company has successfully applied it’s approach to brands in several key markets. Dasani became the nation's fastest-growing water brand. In Eurasia.The over all volume of this company is as follows. Mori No Mizudayori in Japan. This strategy has paid dividends.
began operations in 2001. In 2001and 2002. The popularity of Marocha is also recognized by the industry with a leading trade journal naming Marocha the most popular new food and beverage product of the year. Also in Japan—where The CocaCola Company is the leader in the total tea category.the company after carbonated soft drinks. With sales of 46 million unit cases for the year. Marocha Green Tea is the fastest-growing product in the fastest-growing category: green tea.A. the company has also made good progress in coffees and teas. Ciel and Bonaqua each achieved sales of over 100 million unit cases for the year. research and development with the expertise of Coca Cola Company in brand building and distribution. At the same time. Dasani. the renewed and strengthened marketing partnership with Nestlé S.. the company grew Georgia coffee in Japan by 3 percent through awardwinning marketing in a category that was flat for the year. Beverage Partners Worldwide. Three of the water brands. the second-largest category in the non-alcoholic ready-to-drink segment—it launched Marocha Green Tea. This partnership combines Nestlé's knowledge in life science. 28 .
Know the most recognized word on the planet after “OK”! 29 .
Through an intense focus on Coca-Cola. The company has also responded to consumers' changing fashion styles with new bottles. In China. the company has created new packaging sizes to satisfy consumer demands.Among the soft drinks Fanta and Sprite become successful along with the major brand Coca Cola and Diet Coke. innovation and new beverages. The company increased its two largest bottle sizes during the 2001 holidays. In the United States. Mexican families have lunch together at home. and festival packaging helped drive a 6 percent volume increase for Coca-Cola. sales of CocaCola increased by 6 percent. contributing to the sale of nearly 1. This larger bottle will complete its nationwide rollout in 2002. it has achieved volume growth of 10 percent in 2001. Increasingly. the company "bottled" the concept. The result—diet Coke with lemon—contributed to volume growth of 4 percent for the number-one diet.5 billion unit cases of CocaCola in Mexico this year. Coca-Cola is an integral part of holiday celebrations and the family get-togethers that accompany such events. So the company introduced a convenient 2-½ liter bottle to select regions. 30 . recognizing that consumers often enjoy their diet Coke with a slice of lemon. In China. The packaging innovations do not just involve resizing. The average Mexican household drinks two-and-a-half liters or more of soft drinks during that break. while a twoliter bottle was the largest available package. Soft drink in North America: diet Coke. In key markets.
The commitment of the company to packaging innovation also resulted in new initiatives for our fountain business. the company re-launched its global sports-drink business. the company introduced Powerade in nearly every major Western European market. Kapo in Latin America and Bibo in Africa. packaging. Two years of research resulted in a dispensing system that provides exceptional beverage quality. including Great Britain. a total beverage dispensing system that is more flexible and more reliable. brand and graphic customization and improved reliability.With brands such as Minute Maid. easy to upgrade technology. positioning and marketing. The company launched 27 products in 2001. Revitalized in the United States. This year. as well as in Mexico and Latin America. Hi-C. investing in new products. Germany and Spain. 31 . grew by 13 percent in 2002. Simply Orange and Disney juices and juice drinks in the United States. led by Powerade and Aquarius. a channel through which many consumers enjoy Coca-Cola. Qoo in Asia. The results speak for themselves: it’s global sports drinks. In the United States. nearly double the growth rate of the worldwide sports-drink category. the company developed Fountain.
The strategy for the future of the company is very straightforward.1 billion. led by Coca-Cola. • Earnings per share grew by 82 percent. the company had a great success. 32 . company accomplished the crust of it’s strategy as • Worldwide volume increased by 4 percent with strong international growth of 5 percent and clear signs that our North American business is growing solidly and predictable. as the strategy worked which resulted in making Coca Cola Company the world’s leading company. as we delivered on our commitment to create volume growth while aggressively • • • Return on common equity grew from 23 percent in 2000 to 38 percent this year. a clear indication of its underlying financial strength. Grow system profitability and capability together with our bottling partners. The marketing strategy for the year 2002 is as follows.STRATEGIC PLANNING In the year 2002. Return on capital increased from 16 percent in 2000 to 27 percent in 2001. • • • Accelerate carbonated soft-drink growth. In 2001. Selectively broaden the family of beverage brands to drive profitable growth. The company has generated free cash flow of $3. up from $2.8 billion in 2000.
Drive efficiency and cost-effectiveness everywhere. • • Direct investments to highest potential areas across markets.• Serve customers with creativity and consistency to generate growth across all channels. 33 .
manufacturer and marketer of ready-to-eat cereals and other food products.000 employees. 34 . in 2001. including Gatorade. the beverage businesses of PepsiCola North America. Many of PepsiCo's brand names are over 100-years-old. Bradham’s advertising praises his drink as “Exhilarating. and Quaker Foods North America. Pepsin and Kola Nuts. but the corporation is relatively young. invigorating. It was first used on the August 28. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International. is derived from the two of the principle ingredients. At that time. with revenues of about $27 billion and over 143. The new name.would entertain the listener with the latest musical selections rendered by violin or piano or both. PepsiCo brands are available in nearly 200 countries and territories. “Pepsi Cola”. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company. aids digestion”.MAJOR COMPETITOR PEPSI INTERNATIONAL HISTORY PepsiCo is a world leader in convenient foods and beverages. Gatorade/Tropicana North America and PepsiCo Beverages International.
Today Lipton is the biggest selling ready-to-drink tea brand in the United States. They have permanent work force of 750 people and they employee approximately 1000 people more on temporary basis during summer season. As in Pakistan.1990-2002 The advertisement of the Pepsi changes to. the popularity of Pepsi increase. In Asia. They have four filling lines in the plant operating on the three shift bases.With the extensive usage of the stars in the adds. “You got the right one baby. 35 . they selected Lahore to make their regional office. Lipton Co. This regional office is monitoring all the operations carried out in South West Asia. This plant was established at Lahore in 1974. PepsiCola beverages are available in more than 190 countries and territories. In 1992 PepsiCola formed a partnership with Thomas J. Each shift is of eight hours. they only entered beverage industry. The total capacity of the plant is 30. Outside the United States. Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. They have eleven bottlers covering whole Pakistan. The plant operating here is Riaz Bottlers (Pvt) LTD. This was done in 1970.000 cases per day. Uh-Huh!”.
Pepsi’s Products • • • • • • • • Pepsi Teem Mirinda Pepsi Max Pepsi Lemon Pepsi Blue Mountain Dew 7up 36 .
The Coca-Cola System in Pakistan employs 1. Hyderabad. The Coca-Cola System in Pakistan serves 70. The remaining two plants.) 49 years of refreshment in Pakistan Coca-Cola introduced in Pakistan 1953 Fanta introduced in Pakistan Sprite was introduced Diet Coke & Fanta Lemon 37 1965 1972 2001 . are in Rawalpindi and Peshawar. During the last two years.S. four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). Coca-Cola. Multan and Lahore. The Coca-Cola System in Pakistan has invested over $130 million (U. Rahimyar Khan.800 people. Sialkot. Gujranwala. independently owned. The Coca-Cola System in Pakistan operates through eight bottlers. Fanta and Sprite are the brands in Pakistan.000 customers/retail outlets.COCA COLA PAKISTAN The Coca-Cola Company began operating in Pakistan in 1953. Faisalabad. The CCBPL plants are in Karachi.
TARGET MARKET Coke’s commercials basically based on young generations. There are so many people who take this drink daily and those people who take weekly and those who take less often are always there as well. the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market. particularly Coca-Cola. then we successfully nurture and protect our brands.PROMISE OF COKE The basic proposition of our business is simple. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business. MAJOR SEGMENTS Major segments are basically those people who take this drink daily and those areas where the demands is higher then the other areas. solid and timeless. So. So. When we bring refreshment. value. 39 . their basic segments are those people who take this drink regularly. joy and fun to our stakeholders.
FACTORS EFFECTING SALES There are so many factors. 40 . and education and basic necessities and after that when they get extra money they think about this soft drink . Because which every passing year budgets are becoming very strict and tight in order to purchase things. Here we are discussing three major factors which effects coke. utilities. So the disposable incomes of the people are coming down. This is major factor that affects the sale of this soft drink. • • • Per capita income Competitors Weather Per Capita Income First we will discuss about “ Per capita income”. They spend heavily on rents. which affects the sale of coke.So the decreasing per capita income effects badly in selling and production of this soft drink.
Weather Weather is the third major factor in effecting the Coke’s selling. In other words. This is underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%. Competitors Coke’s major competitor is “PEPSI” and there is no hesitation to say this because every one knows that and all the other cold drinks and water. tea are the competitors.And to get through with this difficulty there is need to increase the level of per capita income of Pakistan because it is much lesser than the rest of the countries. They don’t actually differentiate between these two brands in order to their tastes. MAJOR CUSTOMERS NEED First of all the majority don’t care that what they are going to have. coffee. Consumers basically drink what they get. they don’t care before drinking that whether it is “Pepsi” or “coke”. 41 .
They provide this infrastructure free of cost just to provide child coke to their customer. 42 . For this reason Coca-Cola have provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market.They believe on “WHAT COLD THEY SOLD” Consumer’s availability in brands is basically works like: Push availability Pull consumer’s demand. Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not. if not then they immediately change or repair it. which they want to be purchase.
new coming AMRAT Cola.So the major competitor of Coke is Pepsi. and all juices. When they motivate to any other brand or on Coke it’s in instinct basically that based on messages derive certain feelings. even they take water and tea as their competitors. These are the “key consumption”. THREATS FROM COMPETITORS 43 . Enhance competition moments 2. they believe that RC Cola.MAJOR COMPETITORS Consumers firstly decide that they are going to have a soft drink. STRATEGIES OF QUALITY After Micro and macro analysis Brand “coke” is primarily role 1. Fun time Though these strategies there could be better understanding and better connection with the public. Then they compete brands with each other. But Coca Cola thinks in a different way. When people watch cricket 3. Through commercialization 4. Like they compete Coke with Pepsi and Sprite with 7up and team .
Because when the price go higher people go for the substitute of “coke” i. And when price goes down they think that there is must be some thing wrong in it. TARGETS THAT WOULD LIKE TO ATTAIN Every organization runs on the bases of profit maximization so Coke is also looking for a high profit margin.Threats are well planned.e. In short it all depends on customer’s perception. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink. Price is the major threat. There are three major ways of making money • • • Over night profit Windfall profit Ethical and un-ethical ways 44 . Pepsi.
They are the extras profit. Some profits stays for some time like “over night profits” and some just come and go like “wind fall profits”. there is different kind of profits. They believe on this quote “ Every thing is fare in love and war”. When the consumption the consumption is on boom. EXPANDING TARGET MARKET In last 2 years Coke has come back in aggressive manner. This could be got my increasing sales volume Windfall Profit Can be windfall profit. So. Ethical And Unethical Ways Profit can also get through ethical and unethical ways.Over Night Profits They could be over night profit that is for the number 1 brand for the year. 45 . And they can also get profit through different approaches.
Coca Cola’s Brand 46 . Two major brands “coke” and “Pepsi” also have brand names. Brand Differentiation Now different companies have got different brand names. Because now they know the name of another big brand. So people can better differentiate brands with each other. though coke is the 2nd best name but it can get a better position after some time Attractive Brand Name Now the consumers know the Name of Coke.• • • Consumer has choice Attractive brand name Brand differentiating Consumer Has Got Choice Now the consumer has got choice. which is the most popular after the word “ok”. because Coke is the name. So. people can distinguish between brands.
Coca cola is “US” brand. Because they believe in the togetherness, being people together and friends are being together. Coca Cola strongly believes that Pakistani temperament is “US” not “ME”
Pepsi’s brand is basically is basically “ME” branded. They use the temperament of “ME”. In contrast to Coke they believe on individual struggle.
THREATS AND OPPORTUNITIES FOR PRICE
If Coke is considered a luxury product. Then there is the tax rate system 15% - sales tax 20% - excise duty 27% - goes to government 03% - In making Budget
After paying all these taxes coke has to pay electricity charges. We have to spend on distributions. After paying all these expenses Coke’s margin squeezed and consumers have to pay for increasing tariffs. These are the opportunities through which we can increase the price and can get profits.
There are much more threats in increasing prices. Because same problem of substitute. If Coke increase the price lets say 1 rupee. Then people definitely won’t go for coke. They have the best substitute of Coke that is Pepsi. So these are the threats in increasing prices. Coke will lose the margin of its profit and can face loss.
STRATEGIES OF GETTING GOALS I.E. “HIGH PROFITS”
To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows.
• • •
Volume can be increased Interest level of consumers To take part in energetic festivals
How to increase the volume of consumers?
Coke can increase the volume by expanding the industry of coke. Through advertisements, offering different interesting things to attract people towards this product.
How to increase the interest level of consumers?
Coke is increasing the interest level of consumers by offering different flavors.
For example Coke is increasing the number of flavors in “Fanta”, this is one of the product of coke. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained.
How to take part in energetic festivals?
Coke is already taking part in the festival like “Basant” since last 3 years. Coke offers different attractive things in their festival and through this Coke gained high profit and consumption of coke increased on these occasions.
And this year in this year 2002 people were anxiously waiting that what interesting thing coke is going to offer.
Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. 50
Coke strives to be a good neighbor. It's a special thing to have billions of friends around the world. and we never forget it. 51 . consistently shaping our business decisions to improve the quality of life in the communities in which we do business.
Sprite.5 litter plastic bottle) (tin pack 330 ml) Packing Coca cola products are available in different packing 52 . Fanta. And company offers their products in different bottle sizes these includes: • • • • • SSRB LRB NRB PET 1.MARKET POSITIONING Product Range The total range of Coca Cola company in Pakistan includes: • • • • Coke.5 CANS (standers size returnable bottle) (litter returnable bottle) (no return bottle) or disposable bottle (1. Diet Coke.
5 pets 12 bottles in a pack for disposable bottle 24 cans in one pack. 53 .• • • • 24 regular bottle shell 6 bottle pack for 1.
by this these retailers and middle man push their product in the market. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives. Summer is supposed to be a good season for beverage industry in Pakistan.PRICE STRATEGY Trade Promotion Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles. Different Price In Different Seasons Some times Coca Cola Company change their product prices according to the season. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. These stores are called as KEY accounts in their local language. So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle. “Seen as sold” They do agreements with a shop keepers and stores to exclusive sale in that stores. 54 . And that’s why coca cola seen more in the market.
Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eyecatching positions. UTC Scheme 56 .PROMOTION STRATEGIES Getting shelves They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers. Sale Promotion Company also do sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share. Normally they keep their freezers near the entrance of the stores.
UTC mean under the crown scheme. DISTRIBUTION CHANNELS Coca Cola Company makes two types of selling Direct selling Indirect selling Direct Selling In direct selling they supply their products in shops by using their own transports. cash prizes etc. In this type of selling company have more profit margin. tv sets. 57 . Like once they offer bicycles. This scheme is very much popular among children. They have almost 450 vehicles to supply their bottles. caps. coca cola often do this type of scheme and they offer very handy prizes in it.
FACILITATING THE PRODUCT BY INFRASTRUCTURE For providing their product in good manner company has provided infrastructure these includes: • • • • Vizi cooler Freezers Display racks Free empty bottles and shells for bottles ADVERTISEMENT Coca cola company use different mediums • • Print media Pos material 58 . 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.Indirect Selling They have their whole sellers and agencies to cover all area.
59 .• • Tv commercial Billboards and holdings Print Media They often use print media for advertisement. POS Material Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas. They have a separate department for print media.
60 . And it will take the 10% of their profits.TV Commercials As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. And the basic key to attract the consumers is to throw the “money away”. They have to take lots of decisions that how to increase the production and where they have to spend money. EXPECTATIONS FOR THE COMING YEAR Every thing starts from the attitude of consumer’s behavior. And when we take it as a global level it is $ I billion. which they used to have Coke wants to advertise their products heavily in the coming year. Coming year is the challenging year for the industry of Coke. 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. And positive feeling felling with the brand. They have so many sites in different locations for their billboards.
Loyal consumers are important for company’s success. HOW COKE DETERMINE THE YEARLY BUDGET Coke determines its yearly budget by the • • • Sales volume Profitability Target volume 61 .For gaining success in coming year they have to have some important things like: 1. 4. They should know how much to for the brand activities. Workers should be the brand centric not the promotion centric. 3. 2. They should also know that how much to do with the promotion activities for brand.
Sales Volume Coke determines its yearly budget through the sales volume. Otherwise they concentrate on their old strategies. If industry achieves those goals in that period then for the coming year it increases the volume of the target. which they want to achieve in a specific time period. When they succeed to achieve that target then they increase their target volume in the next year. Every organization runs on the basis of getting high profits. 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. To get profit is the first priority of the Coke. 62 .if they r getting profits with the high margin. No organization wants to face Loss in their business. Target Volume: To run the business every industry has some targets. So Coke Follow the same thing it has also some goals and targets to achieve in the given time period. then they definitely want to increase their profits in the next coming year. Profitability: The second thing through which they determines budget is the “profit” .
These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board. 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. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it consumers & masses invested in the opportunity and launched a massive campaign on mass media showing all these cricket stars endorsing & complimenting CocaCola brand. This campaign helped Coca-Cola to establish its association with the game & the player. The competition has become tougher & tougher as the time has progressed.SALES PROMOTION ACTIVITIES Coca-Cola Cricket Cricket the most sought after. It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the beverage industry. Coca-Cola signed a sponsorship agreement with eight of Pakistan’s National cricket players. The Coca-Cola Company developed three TV commercials & four testimonial ads with the player & ran them on the national net work during various cricket matches. Coca-Cola Concerts 64 .
65 . lyrics & songs have made him an instant hit among the masses in Pakistan. 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 Food Mela With a splash of food. Coca-Cola’s brand positioning of providing deep down refreshment for the body. The promotion saw the avid families & friends enjoying the delicacies at the restaurants. to a festive food festival comprising of 50 restaurants. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured throughout the country. all resiliently upholding the Coca-Cola identity. fun & prizes to be won. soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar. 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.Abrar-ul-haq’s distinct style. spread out all over the bustling city’s map. the Coca-Cola food mela treated the people of Karachi.
had children’s parade & held the Coca-Cola kite flying championship during the basant festival.Coca-Cola 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. it has been impossible to envisage basant without Coca-Cola. giving the consumer a unique experience which they had never tasted before. Now “where there is basant there is Coca-Cola”.Coca-Cola Basant Festival In February the month of basant the parks & horticulture authority in Lahore nominated Coca-Cola the official sponsor of the basant festival . Coca-Cola give the more refreshing flavor to the colors of basant by adding more life to the festival. served well to promote the Coca-Cola industry. pedestrians & passerby’s during Lahore’s hottest summer season. Coca-Cola GO-RED Quenching the thirst of motorist. Coca-Cola Party in a Park 66 . Coca-Cola’s “GO-RED” teams went out into the cities main quadrants to “serve & refresh” on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement campaign the “GO-RED” stall.
Coca-Cola Shopping Festival Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping festival. Coca-Cola launched 1. where Junoon performed. a resounding success with tempting discounts. live music.Go out & get some 67 .5 liter Pet contour bottle for the first time in Pakistan. Targeting house wives & family home. Coca-Cola’s PET was offered through a “price-off” promotion that said………. The in augural event proved so popular that it is now set to become an annual fixture. Coca-Cola created an experiential musical evening in Lahore.In June 2000. Coca-Cola’s 1.10 million households saw Coca-Cola ‘Party in a Park’ while 10 thousand people attended the event. Coca-Cola Pet Promotion In 1996. great prizes & fire works.5 liter Pet bottle. took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits . Liberty marketing Gulberg was a hive of activity during the weeklong shopping extravaganza.A treat for the family. This program was recorded and one-hour program shown in the national TV for free.
Coca-Cola Ramzan Campaign A very special occasion for the people of Pakistan Ramzan saw another very special CocaCola’s promotion. the new under-the-crown promotion “Nikla Kiya?”(What have u won) was launched in collaboration with Chimera Nokia. rendering an outstanding testimonial campaign in the second phase. HOLLYWOOD. The promotion saw avid consumer collecting Coca-Cola ‘Crown caps’ & sparked a keen response from the public . The emphasis on enjoying Coca-Cola at “Iftar” with friends & family.5 liter PET bottle & the 1 liter bottle with a super price-off promotion. SINGAPORE & CAIRO along with airfare & four nights free stay in these dream lands. & Fanta.The promotion gave consumer a chance to 68 . marketing the popular 1.The promotion gave consumers a chance to win free drink. Coca-Cola & Nokia In August 2001. Coca-Cola set the stage of the grand UTC promotion. a trip to PARIS. highlighting the winners over whelmed in the magical delight of their favorite beverage Coca-Cola. magical “dream vacation” to numerous “wonder destination” throughout the world on every purchase of a 250 ml RGB bottle of Coca-Cola. Sprite. NEWYORK. Coca-Cola Wonder of the World Promotion In July 2000. Coca-Cola went ahead with the idea of giving consumer chances to win fabulous.
Sprite. 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. 69 . & Fanta. Coca Cola TV Mazza The coca cola new campaign is coca cola tv mazza.win thousand’s of Coca-Cola branded Nokia 3310 cellular phones on every purchase of 750ml RGB bottle of Coca-Cola . This activity helped billed confidence and brand loyalty among core consumers. Caught red handed become a huge success among the masses as it was one to one interaction between the Coca-Cola brand & the consumers. both shares globally. with target that anyone being caught drinking Coca-Cola will be awarded a nokia 3310 mobile phone & if someone is caught talking on a nokia mobile will win free supply of Coca-Cola. it is a utc scheme in which people are getting television sets of different sizes. The promotion kicked off with pos material (Danglers.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. These days this scheme is very popular among the people. Bunting etc) displayed at all MC Donald’s restaurants along with a special offer for coke & fries.
the company has successfully launched its first new product. diet coke. Fanta & Sprite are sure to enjoy considerable success in Pakistan. The was linked with three fashion shows as Diet Coke is related to fashion & fitness. which are the key accounts of the company as this has been never done before in Pakistan. The Coca-Cola Company declared the new “NonReturnable” bottles of Sprite & Fanta as the “New. On the Go Packs” flaunting the innovative packaging convenience. the consumers in Pakistan witnessed a soft launch in essence.Fanta & Sprite Launched In November 2000moving on to the Sprite & Fanta brands. Diet Coke After the acquisition of the individual local franchise bottling facilities in 1996. 70 . but the major hit was thematic fashion shows in restaurants. for the first time in almost 3 years.
So for this coca cola company should produce their product according to the local demand. RECOMMENDATIONS After completing our project we have concluded some recommendation for the coca cola company. we come to the conclusion that the marketing strategy of Coca Cola is working for them and the product is gaining popularity among youth day by day. • Marketing team should try to increase the availability of Coke in rural areas. conducted by the international firm Pakistani people like little bit sweeter cola drink. • According to the survey. • They should also focus the old people. 72 . • Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers.CONCLUSION After thorough research. which are following.
73 . so providing more satisfaction to them company should introduce ½ liter disposable bottle.• Now young generation has a trend to drink a coke 2 regular bottles at same time.
military take over.PEST ANALYSIS OF COCA-COLA There are four variables. Revolution at Coke ++ YES NE NE YES 74 . which we will discuss in our report. they are: POLITICAL VARIABLES Political variables Strongly Effected Some what Effected + No Effect +− NE Some what Effected − Strongly Effected −− Effects of government regulations & deregulations Effect of environmental protection laws if any Import and export regulations Effect of political conditions in certain countries of Coke Any effect of election.
And the second thing in political variables which effects Coke is “elections & military take over” Because in the days of elections and marshal law’s condition the countries production in any field is declined. In the “political variables” most of the things are related to Governmental activities. 75 . From last two years Government is going to be really very much conscious about the environment. So it impact good for the Coke’s reputation.Conclusion Of Political Analysis: As far as the above table is concerned it could be seen that there are very little chances of “political variables” to effect the coke’s production and selling behavior. So “political conditions” are over all leave neutral effects on coke’s industry. So it affects slightly the revolution of Coke. So. And there are some exceptional things like: “environmental protection laws” they some what effect the industry of Coke. they don’t leave any good or bad impact in the Industry of coke. But after making the adjustments in plants and applying the proper way of wastage the chances of being affected by the “protection laws” are going to be diminished.
Then it would impact highly negative. incident at Coke in Pakistan ++ YES YES NE Conclusion Of Economical Analysis It could be seen that “economical variables” highly affects the Coke’s resolution.ECONOMICAL VARIABLES Economical Variables Strongly Effected Some what Effected + No Effect + − Some what Effected − Strongly Effected −− YES Do soaring interest rates make business task any harder Any effect due to inflation Anything done to reduce unemployment Any effect of 11th September 2001. If the economic conditions of the country is not that strong and Coke increases its Price in this situation. Economic factors are those actors who effect the production of any industry. So. And inflation is also not a good 76 . Coke is not the out of question.
The Coca-Cola system in Pakistan employs 1.800 people.position for any country’s production point of view. Then we come to know that if economic variables are in the favorable position of country then they impact good other wise the impact highly bad. When we draw the conclusion of “economic variables”. SOCIAL VARIABLES 77 . It also impacts highly negative in the Coke’s production. And as a country concerned like “Pakistan” where the unemployment rate is very much high. During the last 2 years. the Coca-Cola system in Pakistan has involved over $130 million (U.S).
Social variables Strongly Effected Some what Effected + No Effect + − Some what Effected − Strongly Effected −− Effects of advertisement of Coke on Public popularity How will do Coke’s contribution affect charity organizations of Pakistan Has rising consciousness of natural resources in people effected your “save environment activities. Knowledgehungry students books. From youth in Brazil to first generation scholars. supplies. ++ YES YES YES CONCLUSION OF SOCIAL ANALYSIS EDUCATION The Coca-Cola Company has always believed that education is a powerful force in improving the quality of life and creating opportunity for people and their families around the world. The Coca-Cola Company is committed to helping people make their dreams come true. 78 . All over the world. we are involved in innovative programs that give hard-working. places to study and scholarships. educational programs in local communities are our priority.
We want the world we share to be clean and beautiful. from use of more than $ 2 billion (U. and environment Management initiatives.ENVIRONMENT A large part or our relationship with the world around us is our relationship with the physical world. Four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). While we have always sought to be sensitive to the environment. The Coca-Cola system in Pakistan operates through eight bottlers. This same spirit of innovation comes alive in our environment programs. The Coca-Cola system initiated a famine-relief program to help victims and was the first private-sector company to assist. We are always innovating to bring you different delicious beverages. We’re committed to preserving our environment. 79 . down to very local neighborhood collection and beautification efforts.S) a year in recycling content and suppliers. we must use our significant resources and capabilities to provide active leadership on environmental issues. COMMUNITY INVOLVEMENT: In 2000. when eastern Pakistan suffered its worst droughts. waste environment education. climate changes. Here’s a sample of what we’re doing in different communities around the world regarding the conservation of water and natural resources. particularly those relevant to our business.
selected through a draw. to be sent on the Holy Pilgrimage to Mecca at the Company’s expense. TECHNOLOGICAL VARIABLES Technological variables Have business innovations effectively promoted your business Has the government’s regulations ever hindered in importing technical equipment Does Coke help in promoting paperless environment Strongly Effected ++ YES Some what Effected + No Effect + − Some what Effected − Strongly Effected −− YES YES Conclusion Of Technological Analysis 80 .The Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one employee from each plant.
promotions and recreational campaign. As the coke helping in promoting “paperless environment” . This approach of government decreases the profit margin of Coke.it impacts good. They spend billion of dollars on their advertisement. As coke use more advance technology in its production process. 81 . Ever year when budget in announced government taxes rates always shoot up. It will resulted in increment of their production through out the country. And though it’s a big industry so it is promoting the trend of paperless environment. Through computers coke can increase the efficiency of its business and can have up –to-date data about their productions. because computers are the basic need of any person now a days.Of course business innovation leaves highly good impacts in the business of Coke. Coca-Cola is no doubt one of the most popular beverage company and its product COKE is one of most consumed cola drink. And it is giving the way of other industries to come to new technologies and into a new world of business. we came up with the very interesting report of facts and figures. OVER ALL RESULTS OF PEST ANANYSIS After our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited). As far as the “governmental hindrances” are concerned the impacts highly bad on coke’s production.
Pakistani rock stars. 82 . Coca-Cola has always had a close consumer and supplier relationship with its customers. CocaCola is a 27% shareholder in the Pakistan market and they don’t want to stop here!! Its target market is to achieve a much higher %age. Its entertaining and colorful advertisements have always and will always rock the media. Lahore plant of Coca-Cola is one of the beautiful plant in Asia. Coca-Cola has about 2000 employees at Pakistani plants. sportmen and actors have played a very vital role in making CocaCola such a popular beverage.Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough time. Situated on Raiwand Road.
E.g. concerts and many other social occasions. Event at the present they are organizing a Basant festival for which they busily organizing stuff. thrilling events. So… “ Jo chaho ho jaye cocacola enjoy ” 83 . Coca-Cola is one of the leaders in sponsoring the most important.CONCLUSION: Coca-Cola no doubt come the heart beat of Pakistanis. Cricket matches.
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