INTRODUCTION

:
In May, 1886, Coca-Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca-Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank Robinson. Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted” Coca -Cola" into the flowing letters which has become the famous logo of today. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886. In Pakistan CCBPL Coca-Cola beverage s Pakistan limited is serving the nation after the 9/11 situation when all foreign investors take their share back.

HISTORY
The Coca-Cola International started its operating in Pakistan in 1953 through bottle system. The business flourished and soon Coca-Cola became very popular and leading beverages of Pakistan, however with growing competition and unstable economic and political situation in Pakistan , the company suffered heavy losses, so much so that Coca-Cola almost reached to the point of extinction from the market . Hence the company decided to cancel all franchises to bottle Coke in Pakistan. CocaCola International decided replant and re-organize itself as a proper company under the name and style of Coca-Cola Beverages Pakistan limited (CCBPL) in 1996 and Established its first plant in Karachi in 1998.Under this banner it has done it so successfully that today Coke is once again is house hold name popular especially among young generation and gaining market share at a very fast pace.

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Today:
Today CCBPL is operated directly under the supervision of the Coca-Cola

International based in Atlanta Georgia State (USA) .It owns 10 plants all around in Pakistan. • • • • • • • • • • Karachi Lahore Gujranwala Rawalpindi Peshawar Hyderabad Faisalabad Sialkot Rahim Yar Khan Multan

VISION
“Be the number one Beverages Company of Pakistan and to be profitable”

Locally:
“Making move towards leadership”

CCBPL’s 4 vision points: shared values:
• • • • We value and respect our employees and customers. We communicate openly We have Integrity We are committed towards winning.

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MISSION STATEMENT:
“To provide Coca-Cola at arms ‘length”

Objective:
The company has sales based objective .Every thing 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:
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.”

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PORTFOLIO ANALYSIS
It is a tool by which management identifies and evaluates the various businesses making up the company.

Currently Coke lie in star on the BCG matrix. They are enjoying high market share and high market growth.

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Marketing Objective:
Current marketing objective of CCBPL is to achieve 20-30% increase in sales volume before the inception of the year 2004.

The Tell Methodology of COCA COLA

T: target volume (sales) achievement E: excellent distributions. L: loaded L: and lavish display.

Product:
Coca-Cola the world’s most popular beverages .The popularity of Coke is to such an extent that “The most known and spoken word in world after OK is COKE”.

The Family of Coke Includes:

Coke: Coca-Cola (often "Coke") is a carbonated cola and the world's most popular soft drink. For all ages (mostly fun loving people).

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Sprite: Sprite is a clear, lemon-lime flavored, non-caffeinated
soft drink, produced by the Coca-Cola Company. It was introduced to the United States in 1961. For young women and old people 60+ and middle aged men and women. (Ages 35-60). This was Coke's response to the popularity of 7 Up, which had begun as "Lithiated Lemon" in 1929. It comes in a primarily green and blue can or a green transparent bottle with a primarily green and blue label. Sprite is also found in 8oz. glass bottles. Currently, Sprite is sold in over 190 countries. People who are feeling sick often choose to drink Sprite, believing that it "settles the stomach" due to the high amounts of carbonates and bubbles (however, there is no scientific proof of this). Sprite is often the soft drink of choice for individuals limiting their caffeine intake.

Fanta: For children and teen ages. is a soft drink brand owned by The Coca-Cola Company.

Diet Coke: For health conscious people (overweight/ diabetic). It is a sugar-free soft drink produced and distributed by The Coca-Cola Company. It was introduced in the United States in July 1982, and was the first new brand since 1886 to use the Coca-Cola trademark. Diet Coke and Diet Pepsi have capitalized on the markets of people who require low sugar regimens, such as diabetics and people with other health conditions, athletes, and people who want to lose weight. In the UK, a 330 ml can of Diet Coke contains around 1.3 Calories (5 kilojoules) compared to 142 Calories (595 kJ) for a regular can of Coca-Cola.

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VANILLA COKE: Vanilla Coke (also known as Coca-Cola Vanilla, and, for a time in the summer of 2003, V) is the soft drink Coca-Cola made to a recipe with extra vanilla. Mostly for Children and people who want to try something different instead of juices. The introduction of the vanilla flavor was hailed by the Coca-Cola Company as "the greatest innovation since Diet Coke in 1983"

COKE ZERO: Coca-Cola Zero or Coke Zero is a product of the Coca-Cola Company. It is a low-calorie variation of Coca-Cola Classic sweetened with aspartame and acesulfame potassium (also known as Ace-K). In the United States, where the drink was first introduced, Coke Zero is marketed as having zero calories. (hence the Zero in the product's name), but in other countries it is marketed as having zero sugar. Coca-Cola Zero does in fact contain a trace amount of calories. Depending on the country where it is made, it has about 0.3 to 0.5 kcal per 100 mL. Coke Zero is Coca-Cola's biggest product launch in 22 years, and primarily targets young adult males with the marketing claim that the taste is almost indistinguishable from Coca-Cola Classic since, unlike Diet Coke, Coke Zero is based on the formulation of Coca-Cola Classic.

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Macroeconomic Environment:

Economy:
The fluctuations in Pakistan economy also effect Coke market position. Because of high inflation and low purchasing power Coke is unable to capture many potential customers of the large Pakistani population who have to struggle hard to make both ends meet rather than afford the luxury of drinking Coke as often as they would like to.

Coke’s Economy:
Generally speaking the peak season for Coke’s market is from March------June when the company gains maximum revenues from sales. The off-season is from November-------February. However in large cities like Lahore, Karachi the curve for sales and revenue remains flat through out the year since demand is there all the year round on all occasions, events .Coke is there to serve. In smaller cities and towns, however the sales and revenue curve is steeper when Coke is mostly in demand during the peak season and demand declines as peak season comes off.

Coke's economy

Regular

Peak Season

Technology:
Coca-Cola company employees the latest machinery in production in its plants and computerized systems for quality checks and control as well as production. In beverage industry no latest technology is in operation in Pakistan hence no competitor poses a threat to Coke on basis of technology.

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Demographics:
Coke’s target market includes people from all demographics (age wise, gender wise, income groups, social status etc.) For example. COKE: For all. (Mostly fun loving people till ages 33-35) SPRITE: For young women of all groups as well as old people also like it. FANTA: For children and teen ages.

Social Values:
Social values like health consciousness nationalism, anti Jewish and religious sentiments have caused problems for Coke especially in the post 9/11 era. These issues were fully exploited in media, made the target sales volume for Coca-Cola management difficult to achieve and attain. These are launch of Maka-Cola, and others new brand in new near future who would base their marketing on these social values, can become a threat for Coke.

Micro or Competitive Environment:

Buyers/Customers:
Coca-Cola has there 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.

Substitutes:
Nestle products like juices, coffee, mineral water etc. and Shezan juices are substitutes of Coke for health conscious people and other fresh juices. Rivals/Competitors: Direct Competitors 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.

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INDIRECT COMPETITOR:
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 make people conscious about physical fitness Coke has launched “Diet Coke” to counter the physical fitness demands

SUPPLIERS:
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. For example, 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.

In Pakistan COKE is available in:
• • • • • 250-ml bottle. Small size disposable bottles. 1-litre bottle. 1.5 liter bottle. Tins.

COCA-COLA Brand Equity

= $ 84 million

Price:

• Rs.10/- for 250-ml bottle, Rs.25/- for tin. Rs.30/- for 1 liter bottle. Rs.45/- for 1.5 liter bottle.

• •

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Place:
Available in all main as well as posh and backward areas in big cities. Available to some extent in posh areas of small cities. Available in all restaurants and hotels, colleges, universities, hospitals, bus stops etc.

Promotion:
Its promotion is very aggressive. It advertises using print media like newspapers, magazines etc. For their promotional purposes, they use various kinds of media such as print, broad cast, specialty, out of home and interactive. To promote the CocaCola, Fanta, and Sprite the company uses the following tactics or ways:

VARIOUS TOOLS OF SALES PROMOTION:
Coke adopt the various tools of promotion • • • • Coupons Premium Rebates Special offers

PREMIUM:

Premium means more value of product in the same price, Coke adopt this type of promotion on occasions, like Eid, Basant festival etc.

REBATES:
Rebates are given to their retailers all those whose sales are more than 24 crates of bottle in a month.

 Advertisements with catchy slogans:
• Coca-Cola enjoys

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• • •

Always Coca-Cola. Eat Cricket, sleep cricket, and drink Coca-Cola. Food is Asking for Coca-Cola.

 Sponsorship:

• • • Events e.g. Ramzan, Basant festivals. Concerts. Artist album e.g.Arar-ul-Haq. Sports e.g. Football

 Prize Schemes:
• • • Coca-Cola glasses. Bicycles. TV (16’, 21’.28’)

 Prize cuts from time to time:
• • • Ramadan offer. Eid offer. Independence Day offered.

 Billboard – Electronic Signboard:
• • • In major public areas, liberty bank square. At centre point.etc. And many other crowded places.

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Promotional campaigns of CCBPL:
 Basant:

The Coca-Cola Company sponsors the basant festivals in Lahore, a festival that marks the beginning of spring and attracts visitors from all over the world. Part of the festivals is” Coca-Cola kite flying championship”.

 Concerts and Charity Programs:

The Coca-Cola Company sponsors Pakistani leading pop group and organizes concerts and charity shows throughout the country for teen ages and underprivileged children.

Football Players for Promotion:

The company has signed a sponsorship agreement with eight of Pakistan’s national cricket players for promotional and advertising use.

 Celebrity Sources:
Celebrities like Abrar-ul-Haq, have been used in advertising and video songs to influence the attitude of consumers because they are the people who are considered to be a credible source. People regard them as trust worthy and pay more attention to the advertisement than they would if non-celebrities were used

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TARGET MARKET STRATEGIES:

The coca cola company is using aggregation strategy as target market strategy. They are taking the whole market as one segment. They assume the coke is for all age groups and social classes. That’s why coca cola company say “coke for all”. The coke offered by the coca cola company tastes so good that it could attract any age group. It has low price so anyone can consume it. It has stylish and innovative bottle shape so all classes consume it in order to fulfill their social needs.

SEGMENTATION ON THE BASIS OF PSYCHOGRAPHICS:
The coca cola company believes in segmenting the consumer market on the basis on psychographics. They focus on life styles and values. So they often show people having parties and function with colored clothes and enjoying their life. And in their advertisements they usually focus on youth but they also show old age people who are fun loving and prefer enjoyment in life.

Community Involvement of CCBPL:

Helping Drought Affective:

In 2000 when the eastern areas of Pakistan suffered its worst droughts. The CocaCola system initiated a famine relief program to help victims and was the first private-sector company to do so.

Re-decortications of Stations and Platforms:

The Coca-Cola system in Pakistan is the exclusive supplier for Pakistan Railways, serving soft drinks in all stations, platforms, and on within trains. The company will

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be undertaking a beautification program of stations and platforms all over the country.

COMMUNICATION CHANNELS
The CCBPL uses the latest most effective and fastest communication channel i.e. internet. All the plants of CCBPL are interconnected with each other and to CCI (Coca Cola International head office in Atlanta USA) through networking, 24 hour bases. Even departments within one plant communicate through e-mail and internet basis so information is reached far a fast and directly to all plants, departments from head office.

Distribution Strategy

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Current Distribution Structure:
Coke is the largest thirst fulfilling brand in Pakistan with a subscriber base of over 5 million and more than 50% market share covering 95% of the urban population nationwide. Coke currently operates the largest of people’s network in Pakistan. Coke distribution network consists of both direct and indirect channels and our strategy is to make Coke available at the customers’ doorsteps.

Direct Channel:
The direct channel comprises company owned shops.

 Club 300 team:
Coke direct sales force comprises all over sales personnel based in Lahore, Karachi and Islamabad/Rawalpindi sector. The main objectives of the direct sales force are as follows:  Sales for high-value relationship oriented corporate clients   Providing customized and personalized services Ensuring retention and loyalty of the customers

Indirect Channel:
The main objectives of the indirect channel are:

 

To increase the reach and penetration through shops and drink To expand our sales network at a rapid pace.

The indirect channel comprises:

All shops dealers having a sales force of their own.

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COMPETITIVE POSITIONING MARKET CONDITION

Market Position Worldwide


30% Pe psi


10% Others

  

60% Coca Cola

 

Market Position in Pakistan

10% Others

36% Coca Cola

54% Pepsi

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Coca-Cola and local competitors:
Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. Around the world, some local brands do compete with Coke.   Big Cola is a fast growing mark in South and Central America. In India, Coca-Cola ranks third behind the leader, Pepsi-Cola, and local drink Thums Up. The Coca-Cola Company purchased Thums Up in 1993. In the Middle East, Mecca Cola is seen as a competitor to Coca-Cola. In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and also many countries of Middle East, Zam Zam Cola and Parsi Cola are major competitors to Coca-Cola. In Pakistan coke faces challenge from Pepsi, Shandy Cola, Amrat Cola and Mecca Cola

  

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Summarizing Advertising Strategy Of Coke:
Coke uses both National and International advertisements.Type of advertising with respect to Product Life Cycle that Coke 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 Pepsi. Before creating advertising message the Coke 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 the slogan of Coke “Always Coca Cola” and “Food Is Asking for coke” has gained tremendous customer attention. Coke Company advertises its products mainly through electronic media that includes Television, Radio and Internet as well. Moreover leading newspapers of Pakistan and Billboards are also targeted by Coke for advertising. So we can say that Coke not only uses electronic but print media for advertisement as well.

Coca-Cola frequently has rewards programs or sweepstakes' with codes or messages printed on the bottom of caps. Coca-Cola currently has a rewards program called "mycokerewards" (using a name designed to appeal to teens). Drinkers use codes found on bottles and 6/12 packs (which earn three times the points that bottles do) and redeem them on the mycokerewards Website. The codes have also been sold on auction sites such as eBay for significantly cheaper prices and redeemed on mycokerewards for prizes, which are resold on the auction Website. This has caused eBay to limit the amount of caps sold per auction to 20 caps and Coca-Cola to limit 10 caps per day to be redeemed.

IMC PLAN:
Based on the above analysis reinforcement advertising strategy should be used to remind consumers of the product again and again and form its good image. Instead

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of large expensive gifts, prize schemes should constitute of small, inexpensive gifts e.g. Coca-Cola penal case. Coca-Cola pen, key chains, T-shirts, Cups, bottles in each cerate could contain prizes. This would be a much effective scheme to increase sales. The purchase of cold drinks was considered to be a luxury few years back but now it has become the need of every individual so now it is a product that is purchased habitually by the target market therefore the company’s marketing department should be concerned about maintaining the habitual behavior of customers. They should make sure that the product quality remains consistent and there should not be irregular product availability. In 1971, 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, and is widely considered one of the best advertising campaigns in history. The song and commercial is credited with helping Coca-Cola retain its market from the burgeoning Pepsi-Cola Co. and to help make Coke attractive to young people again. Coke's advertising has been rather pervasive, as one of Woodruff's stated goals was to ensure that everyone on Earth drank Coca-Cola as their preferred beverage. Advertising for Coke is now almost ubiquitous, especially in southern areas of North America, such as Atlanta, where Coke was invented. Coca-Cola has gone through a number of different advertising slogans in its long history, including "The pause that refreshes," "Things Go Better," "(It's) The Real Thing," "Coke is it" and "Always Coca-Cola". Coca-Cola has a long history of sports marketing relationships, which over the years have included several major sports leagues both in the United States and internationally. Two such notable instances are Coca-Cola's sponsorship of the Olympic games, with Coke being the first-ever sponsor of an Olympic game at the 1928 Summer Olympics in Amsterdam, and also Coca-Cola's sponsorship of FIFA since 1978 in the 1978 FIFA World Cup, which organizes football tournaments such as the FIFA World Cup. The English Football (Soccer) division 1, (the second division behind the Barclays-sponsored FA Premier League) has now been re-named the Coca-Cola Championship. Coca-Cola owns a Japanese rugby union club, the Coca Cola West Red Sparks, who are based in Fukuoka city, Kyūshū, and compete in the Top League. A number of NASCAR's most popular drivers such as Kevin Harvick, Tony Stewart, Jeff Burton, Mark Martin and Greg Biffle are part of the Coca-Cola Racing Family. Mineral water of CCI which has already been successfully launched in India. This can be a very effective medium to counter the threats posted to Coke, Fanta, and Sprite by Pepsi which has already launched “Aqua Fina” in Pakistan. By introducing Kingly Water in Pakistan coke can tackle in a better way, the threat which is posed by Pepsi. Coke can use advertisements, sales promotion by offering it with a coke or through directly targeting customers.

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