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Marketing Strategies Of
PRESENETED TO: MR. SUFIAN AHMAD PRESENTED BY: Sami Ullah Khan 27s-640
TABLE OF CONTENTS CONTENTS 1. 2. 3. 4. Acknowledgement. Mission statement Introduction. Coca Cola. a. Coca Cola International. b. History. 5. Management. 6. Market share. 7. Financial report. 8. Dividends and Cash Plan. 9. Products. 10. Strategic planning. 11. Bottlers owned by Coca cola 12. Coca Cola Pakistan. 13. Major Competitors a. Pepsi b. History. c. Financial assets. • Market share. • Financial report. • Products. • Methodology 14. Some basic information regarding marketing of coke a. Target market: b. Major segments: c. Factors effecting sales: d. Major competitors: e. Strategies of quality: f. Threats from competitors: g. Targets that would like to attain: h. Expanding target market i. Threats and opportunities for price: j. Strategies of getting goals i.e. “high profits”: k. Marketing strategy: l. Expectations for the coming year: m. How coke determine the yearly budget: 15. Marketing strategies 16. Pest analysis
This report is dedicated to my beloved parents, Who educated me and enabled me to reach at this level.
what we think we might do well. We believe it's appropriate to acknowledge all of these unknown persons. and so forth. The work of some unknown person makes our lives easier everyday. First of all we would like to thank our teacher Mr. 5 . but it is also necessary to acknowledge those people we know have directly shaped our lives and our work. we discover a debt to others that spans written history.ACKNOWLEDGEMENT We think if any of us honestly reflects on who we are. Then we would like to thank our friend and brother Mr. how we got here. Muhammad Shafique for their guidance through out the semester. Zeeshan Anjum for providing us the information that was required for completion of this project.
Ultimately. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day. Consumer demand drives everything we do. including our consumers. maximize our longterm cash flows. 6. There are nearly 6 million people in the world who are potential consumers of our company’s product. We strive to understand each customer’s business and needs. Brand Coca Cola is the core of our business 3. expand our share of worldwide nonalcoholic ready to drink beverages sales. we must create value for all the constraints we serve. 2. We will think and act locally. In order to achieve this mission. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. 7 . whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. and our communities.The Mission Statement of the Coca Cola Company Our mission statement is to maximize shareowner value over time. We will be the best marketers in the world. 4. our customers. We will lead as a model corporate citizen. our bottlers. and create economic value added by improving economic profit. We achieve this when we place the right products in the right markets at the right time. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. The ultimate objectives of our business strategy are to increase volume. 5. 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 keenly focus on enhancing value for these customers and helping them grow their beverage businesses.
the senior management team of Johnston assumed responsibility for managing the Company. established in 1986.50 a share. is a young company by the standards of the Coca-Cola system. a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group. The Coca-Cola bottling system continued to operate as independent. Dr.COCA COLA INTERNATIONAL HISTORY: Coca-Cola Enterprises.4 billion. successful restructuring in 1992. and began a dramatic. total unit case sales were 880. Benjamin F. The Coca-Cola Company traces it’s beginning to 1886. the John T. The Company offered its stock to the public on November 21. Whitehead . at a split-adjusted price of $5. began to produce Coca-Cola syrup for sale in fountain drinks. and total revenues were $5 billion 8 . However the bottling business began in 1899 when two Chattanooga businessmen. The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale. As part of the merger. On an annual basis. Inc.000 in 1986. 1986. when an Atlanta pharmacist. again helping accelerate bottler consolidation. to form Coca-Cola Enterprises Inc.Unit case sales had climbed to 1. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. In 1986. stronger Company. John Pemberton . local businesses until the early 1980s when bottling franchises began to consolidate. In December 1991. Thomas and Joseph B. secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. (Johnston) created a larger. Lupton franchises and BCI Holding Corporation's bottling holdings.
Chairman Board of governors Vice Chairman and chief operating officer Executive Vice Presidents Senior Vice Presidents Vice Presidents MARKET SHARE: SHARE Being the biggest company in the soft drink industry. This company controls about 59% of the world market. Coca Cola enjoys the largest market share. (Table) Unit case growth 10 year compound annual growth Compan y Industry 5-year compound annual growth Compan y Industry 2001 annual growth Compan y Industry Nonalcoholic drink 2002 Company share All commercial Beverages 2002 Compan y share Compan y per capita Income 6% 5% 5% 5% 4% 4% 18% 9% 70 9 .MANAGEMENT: The hierarchy of Coca Cola Company is as follows. GLOBAL MARKET SHARE: The following table can show the worldwide operating segments.
There is a worldwide volume increase by 4% with strong international growth of 5%. The data of the global unit sale of the Coca Cola Company can be represented by following chart. 10 . the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume. 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 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 2002. The global unit sale of the Coca Cola Company is increasing from the last ten years. (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. that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success. This is only due to the innovative marketing programmers. which has deepened the relationship of the customers and Coca Cola. The operation income earned by Coca Cola Company can be illustrated by the following pie chart.
The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. the company had worked with their bottlers to turn good intentions into reality by improving the system economics. The above table shows the geographical earning of the Coca Cola Company and from this data. The operation review according to the segments is as follows. The world wide total is about 17. as estimated by the Company based on available industry sources. MARKET SHARE BY AREA: Coca Cola is the world-renowned soft drink and the company is currently operating through out the world.In 2002. The column. The country column is derived from 11 . 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. sold beverages.8 billion. Unit case equals 24 eight-ounce servings. Operation Review (2002 worldwide unit case volume by operating segment) NORTH AMERICA 30% LATIN AMERICA 25% EUROPE & MIDDLE EAST 22% ASIA 17% AFRICA 6% NORTH AMERICA LATIN AMERICA EUROPE & MIDDLE EAST ASIA AFRICA So the volume is least in the Africa and most in the North America. logistics and production. with closer coordination of operations including customer relationships. which shows the non-alcoholic beverages consist of commercially. The main reason behind this relationship is to continue realizing shared opportunities for growth.
The Company's unit case volume while the industry column includes nonalcoholic ready-todrink beverages only. (Table) Country Unit case growth Nonalcoholi c Drinks 2002 Compan y share All commercial Beverages 10 year 5-year compound compound annual annual growth growth Compan y Industry Compan y Industry 2002 annual growth Compan y Industry 2002 Compan y share Company per capita Income North America United States Latin America Argentin a Brazil Chile Mexico Europe & Middle East Eurasia France German y Great Britain Italy Middle East Spain Asia Africa 4 4 6 7 5 9 7 6 5 5 7 4 5 6 10 3 3 3 6 6 3 5 8 5 3 3 6 2 6 3 9 3 2 2 3 7 3 (2) 2 2 2 2 4 2 5 3 5 4 22 23 24 20 23 56 22 12 15 16 15 10 13 23 18 6 398 419 205 236 144 336 462 72 17 8 1 8 1 12 6 7 7 8 3 2 2 3 12 4 6 6 6 9 (1) 11 4 7 8 6 8 5 3 1 2 3 5 5 7 3 (14) 7 (6) 8 2 4 4 10 10 1 3 1 3 2 8 4 7 6 14 9 14 17 9 8 17 14 34 5 5 7 6 6 3 12 5 11 39 110 193 193 104 17 264 23 34 12 . as estimated by the Company based on available industry sources.
Japan has the highest percentage.In Asian population. is approximately 3. which is the satisfied customer of Coca Cola. Among the countries of Asia. Through an intense focus on Coca-Cola. for example. With developing economies and populations. this region has strong long-term potential. 13 . innovation and new beverages. India and Bangladesh are those countries where the average consumption is increasing day by day. Pakistan. which can increase the growth of the consumption of Coca Cola by the people of Asia. (Figure) So the company is emphasizing more in this area and is trying to develop a strategy. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart. In China. which is about 29%. Among others. sales of Coca-Cola increased 6 percent. and the company is building an exciting family of beverage brands in addition to expanding the popularity of our core brands.2 billion and the average consumer enjoys close to two servings of our products each month. led by Coca-Cola. the company has achieved volume growth of 10 percent in 2002.
5 5.685) (133) 2. • $. 14 .19 per share after income taxes related to the Company's portion of charges recorded by the investors of the company.16 per share after income taxes related to the impairment of certain bottling.882 0. 2002 basic and diluted net income per share includes the following charges: • $.2% 23. • $.5% 12.2 17.969 1.1% 11.147 26. It is due to the strong finances.601 1.02 per share after taxes. The financial report of Coca Cola Company of the year 2001 and 2000 along with the percentage change is as follows.24 per share after income taxes related to an organizational Realignment. (Table) Year Ended December 31. manufacturing and intangible assets. • $.806 16.8 2001 19. ratios and growth rates) 2002 Net operating revenues Operating income Net income Net income per share (basic) Net income per share (diluted) Net cash provided by operating activities Business reinvestment Dividends paid Share repurchase activity Free cash flow Return on capital Return on common equity Unit case sales (in billions) International operations North America operations Worldwide 20. one of the equity investors of this company. (In millions except per share data.05 per share after income taxes related to the settlement terms of a discrimination lawsuit.882 3. which was recognized on the issuance of stock by Coca-Cola Enterprises Inc.352 3.585 (779) (1.110 (963) (1.01 per share after income taxes related to incremental marketing expenses in Central Europe.9 5.6% 38. • $.691 2.FINANCIAL REPORT: This company is financially very strong.1 Percentage change 1% 45% 82% 82% 82% 15% 24% 6% 108% 12% 5% 2% 4% 2002 basic and diluted net income per share includes a non-cash gain of $.889 3.3 17..092 5.791) (277) 3.601 4. the company is still surviving the ups and down of the business world.177 0.
15 . Shareowners also may purchase Company stock through voluntary cash investments of up to $125. and $. 76 percent of the Company's shareowners of record were participants in the Plan.000 per year.05 per share after income taxes related to the merger of Coca-Cola Beverages plc and Hellenic Bottling Company S. All shareowners of record are eligible to participate. The Plan provides a convenient. shareowners invested $36 million in dividends and $31 million in cash in the Plan.A. At year-end.04 per share after income taxes related to benefits from a tax rate reduction in Germany and from favorable tax planning strategies. economical and systematic method of acquiring additional shares of our common stock. DIVIDEND AND CASH INVESTMENT PLAN: The Dividend and Cash Investment Plan permits shareowners of record to reinvest dividends from Company stock in shares of The Coca-Cola Company.These charges are partially offset by a gain of $. In 2002.
3% 3% Flat 1 $1.000 2.COMPANY STATISTICS: The statistics of this company is impressive. This is because.18 8% 74% 16 .2 billion 87% 13% 72. which shows the success of Coca Cola brands.97 6% 83% 2001 3.000 52.8 billion 87% 13% 67.39 9% $1.3 million 25 361 50 436 72% 46 45% 51% 4% 59% 3 6. (Table) 2002ª Equivalent cases Bottle and cans Fountain Employees Vehicles Cold drink equipments Facilities Production only Distribution Combination Total Percent of North America population coverage Number of States of Operation Bottle and can equivalent case package distribution Cans Non-refillable bottles Refillable bottles Capital structure Net debt to total capital ratio EBITDA interest coverage Weighted average cost of debt Key Statistics Constant territory bottle and can volume growth Bottle and can net revenues per case change Bottle and can cost of sales per physical case change Reported EBITDA (in billions) Reported EBITDA change Capital expenditures( in billions) %-age of net operating revenues Coverage of North American Can/bottle volume 4.95 (18)% $0. Since it is operating through out the world that is why the number of employees and the bottling equipments is highest among the other bottling companies. Coca Cola Company is increasing its volume day by day.8% ½% 2% ½% $2.4 million 25 385 53 463 80% 46 44% 52% 4% 63% 3 6. There is a constant increase in every aspect when we compare the statistics of 2001 and the statistics of 2002. results in the percentage change in the statistics of the two years. The expansion of this company.000 54. The statistics is as follows.000 2.
PRODUCTS: There are different brands of the Coca Cola Company. taxes. Major brands of coca cola • • • • • Coke Sprite Fanta Diet coke Coke classic 17 . which are currently in use through out the world. 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. the marketing team considers the culture of the country. depreciation. This company not only deals in the carbonated drinks but also other drinks. and other non-operating items. • • Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable securities. and amortization.EBITDA is the Earnings before interest. While launching its product.
Backed by a strong network of bottling partners through out the United States. it’s bottled water volume exceeded 570 million unit cases. Mori No Mizudayori in Japan. Dasani became the nation's fastest-growing water brand. The company has successfully applied it’s approach to brands in several key markets. Ciel and Bonaqua each achieved sales of over 100 million unit cases for the year. 18 . At the same time. the second-largest category in the non-alcoholic ready-to-drink segment—it launched Marocha Green Tea. With sales of 46 million unit cases for the year. Beverage Partners Worldwide. Dasani. research and development with the expertise of Coca Cola Company in brand building and distribution. making it the second biggest contributor to the growth of the company after carbonated soft drinks. Also in Japan—where The CocaCola Company is the leader in the total tea category. In 2001and 2002. Three of the water brands. began operations in 2001. Marocha Green Tea is the fastest-growing product in the fastest-growing category: green tea. In Eurasia. This partnership combines Nestlé's knowledge in life science. 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.The over all volume of this company is as follows. the renewed and strengthened marketing partnership with Nestlé S. This strategy has paid dividends. including Ciel in Mexico.A. (Figure) The commitment of the company is to devote resources to water only in markets where it expects profitable growth. Bonaqua in Russia and Kinley in India. the entire Turkuaz brand team worked together to launch Turkey's first purified water brand.. the company grew Georgia coffee in Japan by 3 percent through awardwinning marketing in a category that was flat for the year. By the end of 2001. This year. Coca-Cola Company also successfully energized a major piece of its beverage strategy—water. the company has also made good progress in coffees and teas.
Know the most recognized word on the planet after “OK”! 19 .
The average Mexican household drinks two-and-a-half liters or more of soft drinks during that break. recognizing that consumers often enjoy their diet Coke with a slice of lemon. Germany and Spain. Mexican families have lunch together at home. sales of CocaCola increased by 6 percent. In China. contributing to the sale of nearly 1. Soft drink in North America: diet Coke. The company has also responded to consumers' changing fashion styles with new bottles. it has achieved volume growth of 10 percent in 2001. Revitalized in the United States. the company has created new packaging sizes to satisfy consumer demands. easy to upgrade technology. a channel through which many consumers enjoy Coca-Cola. Qoo in Asia. The results speak for themselves: it’s global sports drinks. The commitment of the company to packaging innovation also resulted in new initiatives for our fountain business. In key markets. Increasingly. With brands such as Minute Maid. the company "bottled" the concept. the company developed Fountain. led by Powerade and Aquarius. The company increased its two largest bottle sizes during the 2001 holidays. and festival packaging helped drive a 6 percent volume increase for Coca-Cola. In the United States. The packaging innovations do not just involve resizing. In the United States. the company introduced Powerade in nearly every major Western European market. nearly double the growth rate of the worldwide sports-drink category. investing in new products. including Great Britain. The company launched 27 products in 2001.5 billion unit cases of CocaCola in Mexico this year. Two years of research resulted in a dispensing system that provides exceptional beverage quality.Among the soft drinks Fanta and Sprite become successful along with the major brand Coca Cola and Diet Coke. while a twoliter bottle was the largest available package. a total beverage dispensing system that is more flexible and more reliable. Kapo in Latin America and Bibo in Africa. the company re-launched its global sports-drink business. brand and graphic customization and improved reliability. Simply Orange and Disney juices and juice drinks in the United States. grew by 13 percent in 2002. Coca-Cola is an integral part of holiday celebrations and the family get-togethers that accompany such events. This larger bottle will complete its nationwide rollout in 2002. The result—diet Coke with lemon—contributed to volume growth of 4 percent for the number-one diet. packaging. innovation and new beverages. This year. positioning and marketing. as well as in Mexico and Latin America. So the company introduced a convenient 2-½ liter bottle to select regions. Through an intense focus on Coca-Cola. 20 . Hi-C. In China.
as the strategy worked which resulted in making Coca Cola Company the world’s leading company. • • • • • • Accelerate carbonated soft-drink growth. the company had a great success. The marketing strategy for the year 2002 is as follows. • • • • Earnings per share grew by 82 percent. Direct investments to highest potential areas across markets.STRATEGIC PLANNING In the year 2002. Selectively broaden the family of beverage brands to drive profitable growth. Serve customers with creativity and consistency to generate growth across all channels. a clear indication of its underlying financial strength. Grow system profitability and capability together with our bottling partners. 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. In 2001. Return on capital increased from 16 percent in 2000 to 27 percent in 2001. The strategy for the future of the company is very straightforward.8 billion in 2000. MAJOR COMPETITOR 21 .1 billion. The company has generated free cash flow of $3. up from $2. led by Coca-Cola. 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. Drive efficiency and cost-effectiveness everywhere.
but the corporation is relatively young. including Gatorade.With the extensive usage of the stars in the adds. “You got the right one baby. the beverage businesses of PepsiCola North America. They have four filling lines in the plant operating on the three shift bases. Uh-Huh!”. At that time. Pepsin and Kola Nuts. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. and Quaker Foods North America. Lipton Co. “Pepsi Cola”. Outside the United States. Gatorade/Tropicana North America and PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. 1990-2002 The advertisement of the Pepsi changes to.PEPSI INTERNATIONAL HISTORY PepsiCo is a world leader in convenient foods and beverages. manufacturer and marketer of ready-to-eat cereals and other food products. is derived from the two of the principle ingredients. 22 . This was done in 1970. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International. invigorating. they selected Lahore to make their regional office. In Asia. PepsiCola beverages are available in more than 190 countries and territories. the popularity of Pepsi increase. This regional office is monitoring all the operations carried out in South West Asia. The new name. Each shift is of eight hours. It was first used on the August 28. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company.000 cases per day. They have permanent work force of 750 people and they employee approximately 1000 people more on temporary basis during summer season. Many of PepsiCo's brand names are over 100-years-old. As in Pakistan. aids digestion”. In 1992 PepsiCola formed a partnership with Thomas J. The plant operating here is Riaz Bottlers (Pvt) LTD. with revenues of about $27 billion and over 143. This plant was established at Lahore in 1974.would entertain the listener with the latest musical selections rendered by violin or piano or both. in 2001. They have eleven bottlers covering whole Pakistan. The total capacity of the plant is 30. they only entered beverage industry. Pepsi-Cola Company's soft drink operations include the business of Seven-Up International.000 employees. Bradham’s advertising praises his drink as “Exhilarating.
Pepsi’s Products • • • • • • • • Pepsi Teem Mirinda Pepsi Max Pepsi Lemon Pepsi Blue Mountain Dew 7up 23 .
Sialkot. The Coca-Cola System in Pakistan serves 70. independently owned. The remaining two plants. four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). Rahimyar Khan. Coca-Cola. Faisalabad.S. Gujranwala.000 customers/retail outlets. The Coca-Cola System in Pakistan operates through eight bottlers. Fanta and Sprite are the brands in Pakistan.COCA COLA PAKISTAN The Coca-Cola Company began operating in Pakistan in 1953.800 people. The Coca-Cola System in Pakistan employs 1. are in Rawalpindi and Peshawar. Multan and Lahore. The CCBPL plants are in Karachi. During the last two years. The Coca-Cola System in Pakistan has invested over $130 million (U. Hyderabad.) 49 years of refreshment in Pakistan Coca-Cola introduced in Pakistan 1953 Fanta introduced in Pakistan Sprite was introduced Diet Coke & Fanta Lemon 1965 1972 2001 24 .
There are so many people who take this drink daily and those people who take weekly and those who take less often are always there as well. MAJOR SEGMENTS Major segments are basically those people who take this drink daily and those areas where the demands is higher then the other areas. So the disposable incomes of the people are coming down. This is major factor that affects the sale of 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. So. So. 25 . and education and basic necessities and after that when they get extra money they think about this soft drink . utilities. When we bring refreshment. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business. then we successfully nurture and protect our brands. 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. They spend heavily on rents. value.PROMISE OF COKE The basic proposition of our business is simple. solid and timeless. FACTORS EFFECTING SALES There are so many factors. joy and fun to our stakeholders. which affects the sale of coke. particularly Coca-Cola. TARGET MARKET Coke’s commercials basically based on young generations.So the decreasing per capita income effects badly in selling and production of this soft drink. their basic segments are those people who take this drink regularly. • • • Per capita income Competitors Weather Per Capita Income First we will discuss about “ Per capita income”.
MAJOR CUSTOMERS NEED First of all the majority don’t care that what they are going to have. tea are the competitors. In other words. This is underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%. They provide this infrastructure free of cost just to provide child coke to their customer. Consumers basically drink what they get. They don’t actually differentiate between these two brands in order to their tastes. 26 . they don’t care before drinking that whether it is “Pepsi” or “coke”. coffee. For this reason Coca-Cola have provided their coolers and freezers in the market. which they want to be purchase. Competitors Coke’s major competitor is “PEPSI” and there is no hesitation to say this because every one knows that and all the other cold drinks and water.And to get through with this difficulty there is need to increase the level of per capita income of Pakistan because it is much lesser than the rest of the countries. Weather Weather is the third major factor in effecting the Coke’s selling. 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. They have maximum number of coolers and freezers in the market.
Fun time Though these strategies there could be better understanding and better connection with the public. There are three major ways of making money • • • Over night profit Windfall profit Ethical and un-ethical ways 27 . But Coca Cola thinks in a different way. Then they compete brands with each other. Because when the price go higher people go for the substitute of “coke” i. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink. new coming AMRAT Cola. even they take water and tea as their competitors.So the major competitor of Coke is Pepsi. they believe that RC Cola. And when price goes down they think that there is must be some thing wrong in it. When people watch cricket 3. Enhance competition moments 2.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. 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. THREATS FROM COMPETITORS Threats are well planned. Price is the major threat. These are the “key consumption”. 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.e. Through commercialization 4. In short it all depends on customer’s perception. Like they compete Coke with Pepsi and Sprite with 7up and team .
They are the extras profit. Brand Differentiation Now different companies have got different brand names. because Coke is the name. people can distinguish between brands. This could be got my increasing sales volume Windfall Profit Can be windfall profit. So. there is different kind of profits. 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. So. Because now they know the name of another big brand. 28 . And they can also get profit through different approaches. They believe on this quote “ Every thing is fare in love and war”. Ethical And Unethical Ways Profit can also get through ethical and unethical ways. So people can better differentiate brands with each other. Some profits stays for some time like “over night profits” and some just come and go like “wind fall profits”. Two major brands “coke” and “Pepsi” also have brand names. which is the most popular after the word “ok”. EXPANDING TARGET MARKET In last 2 years Coke has come back in aggressive manner. • • • Consumer has choice Attractive brand name Brand differentiating Consumer Has Got Choice Now the consumer has got choice.Over Night Profits They could be over night profit that is for the number 1 brand for the year. When the consumption the consumption is on boom.
These are the opportunities through which we can increase the price and can get profits. If Coke increase the price lets say 1 rupee. being people together and friends are being together. THREATS AND OPPORTUNITIES FOR PRICE Opportunities If Coke is considered a luxury product.sales tax 20% . Coca Cola strongly believes that Pakistani temperament is “US” not “ME” Pepsi’s Brand Pepsi’s brand is basically is basically “ME” branded.Coca Cola’s Brand Coca cola is “US” brand.goes to government 03% . Then there is the tax rate system 15% . Because they believe in the togetherness. So these are the threats in increasing prices. We have to spend on distributions. In contrast to Coke they believe on individual struggle.excise duty 27% . They have the best substitute of Coke that is Pepsi.In making Budget After paying all these taxes coke has to pay electricity charges. Coke will lose the margin of its profit and can face loss. Threats There are much more threats in increasing prices. They use the temperament of “ME”. 29 . Then people definitely won’t go for coke. Because same problem of substitute. After paying all these expenses Coke’s margin squeezed and consumers have to pay for increasing tariffs.
health. a woman in Italy taking a tea break. MARKETING STRATEGY Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. There are so many ways through which Coke can increase the profits. we're there for you. • • • 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. a child in Peru asking for a juice drink. 30 . where they live. or a couple in Korea buying bottled water after a run together. wellness. “HIGH PROFITS” To increase the price is the least thing. which Coke can adopt. How to take part in energetic festivals? Coke is already taking part in the festival like “Basant” since last 3 years. How to increase the interest level of consumers? Coke is increasing the interest level of consumers by offering different flavors. offering different interesting things to attract people towards this product. We are determined not only to make great drinks. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained. and diversity. For example Coke is increasing the number of flavors in “Fanta”. Coke offers different attractive things in their festival and through this Coke gained high profit and consumption of coke increased on these occasions. Through advertisements.STRATEGIES OF GETTING GOALS I. Some major ways are as follows. What people want in a beverage is a reflection of who they are. this is one of the product of coke. And this year in this year 2002 people were anxiously waiting that what interesting thing coke is going to offer. and how they relax and recharge. but also to contribute to communities around the world through our commitments to education.E. Whether you're a student in the United States enjoying a refreshing Coca-Cola. how they work and play.
and we never forget it.Coke strives to be a good neighbor. It's a special thing to have billions of friends around the world. 31 . consistently shaping our business decisions to improve the quality of life in the communities in which we do business.
And company offers their products in different bottle sizes these includes: • • • • • SSRB LRB NRB PET 1.5 CANS (standers size returnable bottle) (litter returnable bottle) (no return bottle) or disposable bottle (1.MARKET POSITIONING Product Range The total range of Coca Cola company in Pakistan includes: • • • • Coke. Diet Coke.5 litter plastic bottle) (tin pack 330 ml) Packing Coca cola products are available in different packing • • • • 24 regular bottle shell 6 bottle pack for 1. Fanta. Sprite.5 pets 12 bottles in a pack for disposable bottle 24 cans in one pack. 32 .
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. by this these retailers and middle man push their product in the market. Different Price In Different Seasons Some times Coca Cola Company change their product prices according to the season. “Seen as sold” They do agreements with a shop keepers and stores to exclusive sale in that stores. So in winter they reduce their prices to maintain their sales and profit. 33 . These stores are called as KEY accounts in their local language. Summer is supposed to be a good season for beverage industry in Pakistan. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives. And that’s why coca cola seen more in the market. But normally they reduce the prices of their pet bottles or 1 litter glass bottle. And they have a good sale in the market because according to the expert which product seen more in the market that sells more.
Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eyecatching positions. In this type of selling company have more profit margin. They have almost 450 vehicles to supply their bottles. This scheme is very much popular among children. caps. UTC Scheme UTC mean under the crown scheme. tv sets. coca cola often do this type of scheme and they offer very handy prizes in it. 34 . cash prizes etc.PROMOTION STRATEGIES Getting shelves They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers. Normally they keep their freezers near the entrance of the stores. 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. 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. Like once they offer bicycles.
POS Material Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas. FACILITATING THE PRODUCT BY INFRASTRUCTURE For providing their product in good manner company has provided infrastructure these includes: • • • • Vizi cooler Freezers Display racks Free empty bottles and shells for bottles ADVERTISEMENT Coca cola company use different mediums • • • • Print media Pos material Tv commercial Billboards and holdings Print Media They often use print media for advertisement. 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. 35 . They have a separate department for print media.
Coming year is the challenging year for the industry of Coke. HOW COKE DETERMINE THE YEARLY BUDGET Coke determines its yearly budget by the • • • Sales volume Profitability Target volume 36 . They have to take lots of decisions that how to increase the production and where they have to spend money. 2.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 it will take the 10% of their profits. 4. And positive feeling felling with the brand. For gaining success in coming year they have to have some important things like: 1. They have so many sites in different locations for their billboards. They should know how much to for the brand activities. which they used to have Coke wants to advertise their products heavily in the coming year. EXPECTATIONS FOR THE COMING YEAR Every thing starts from the attitude of consumer’s behavior. Loyal consumers are important for company’s success. 3. Billboards And Holdings Coca cola is very much conscious about their billboards and holdings. They should also know that how much to do with the promotion activities for brand. And the basic key to attract the consumers is to throw the “money away”. So Coca Cola Company does regular TV commercials on different channels. Workers should be the brand centric not the promotion centric. And when we take it as a global level it is $ I billion.
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. then they definitely want to increase their profits in the next coming year. 37 . No organization wants to face Loss in their business. 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. When they succeed to achieve that target then they increase their target volume in the next year. To get profit is the first priority of the Coke. Target Volume: To run the business every industry has some targets. Profitability: The second thing through which they determines budget is the “profit” . Otherwise they concentrate on their old strategies.if they r getting profits with the high margin.Sales Volume Coke determines its yearly budget through the sales volume. So Coke Follow the same thing it has also some goals and targets to achieve in the given time period. Every organization runs on the basis of getting high profits.
soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar. These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board. lyrics & songs have made him an instant hit among the masses in Pakistan. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it consumers & masses invested in the opportunity and launched a massive campaign on mass media showing all these cricket stars endorsing & complimenting CocaCola brand. The Coca-Cola Company developed three TV commercials & four testimonial ads with the player & ran them on the national net work during various cricket matches. Coca-Cola signed a sponsorship agreement with eight of Pakistan’s National cricket players. the Coca-Cola food mela treated the people of Karachi. Coca-Cola Concerts Abrar-ul-haq’s distinct style. The competition has become tougher & tougher as the time has progressed. spread out all over the bustling city’s map. fun & prizes to be won. Coca-Cola Food Mela With a splash of food.the game of cricket has been owned by various brands in the industry for the promotion of their products over a period of time. watched & played game in Pakistan . This campaign helped Coca-Cola to establish its association with the game & the player. It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the beverage industry.SALES PROMOTION ACTIVITIES Coca-Cola Cricket Cricket the most sought after. 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. 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. The promotion saw the avid families & friends enjoying the delicacies at the restaurants. all resiliently upholding the Coca-Cola identity. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured throughout the country. 38 . to a festive food festival comprising of 50 restaurants.
Targeting house wives & family home. Coca-Cola created an experiential musical evening in Lahore. Coca-Cola launched 1. had children’s parade & held the Coca-Cola kite flying championship during the basant festival. Liberty marketing Gulberg was a hive of activity during the weeklong shopping extravaganza. a resounding success with tempting discounts.10 million households saw Coca-Cola ‘Party in a Park’ while 10 thousand people attended the event. Coca-Cola Party in a Park In June 2000. Coca-Cola Shopping Festival Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping festival. This program was recorded and one-hour program shown in the national TV for free. served well to promote the Coca-Cola industry. great prizes & fire works.Go out & get some 39 .A treat for the family. pedestrians & passerby’s during Lahore’s hottest summer season. it has been impossible to envisage basant without Coca-Cola. took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits . Now “where there is basant there is Coca-Cola”. Coca-Cola Pet Promotion In 1996. Coca-Cola give the more refreshing flavor to the colors of basant by adding more life to the festival. Coca-Cola’s PET was offered through a “price-off” promotion that said………. giving the consumer a unique experience which they had never tasted before.5 liter Pet bottle. Coca-Cola GO-RED Quenching the thirst of motorist.Coca-Cola Basant Festival In February the month of basant the parks & horticulture authority in Lahore nominated Coca-Cola the official sponsor of the basant festival . The in augural event proved so popular that it is now set to become an annual fixture. Coca-Cola’s 1.5 liter Pet contour bottle for the first time in Pakistan. 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. where Junoon performed.Coca-Cola added to the carnival atmosphere by making the festival free to enter & decorating all main roads in Lahore with illuminated kites. live music. Coca-Cola also hosted a concert of pop idol Abrar-ul-haq.
& Fanta. These days this scheme is very popular among the people. The promotion saw avid consumer collecting Coca-Cola ‘Crown caps’ & sparked a keen response from the public . NEWYORK. The promotion kicked off with pos material (Danglers. The emphasis on enjoying Coca-Cola at “Iftar” with friends & family. HOLLYWOOD. Coca-Cola set the stage of the grand UTC promotion. 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. a trip to PARIS.Coca-Cola Ramzan Campaign A very special occasion for the people of Pakistan Ramzan saw another very special CocaCola’s promotion. Coca-Cola Wonder of the World Promotion In July 2000. marketing the popular 1.The promotion gave consumer a chance to win thousand’s of Coca-Cola branded Nokia 3310 cellular phones on every purchase of 750ml RGB bottle of Coca-Cola . rendering an outstanding testimonial campaign in the second phase.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. Sprite. & Fanta. Coca-Cola went ahead with the idea of giving consumer chances to win fabulous. both shares globally. the new under-the-crown promotion “Nikla Kiya?”(What have u won) was launched in collaboration with Chimera Nokia. 40 . Coca-Cola & Nokia In August 2001.The promotion gave consumers a chance to win free drink. Caught red handed become a huge success among the masses as it was one to one interaction between the Coca-Cola brand & the consumers. SINGAPORE & CAIRO along with airfare & four nights free stay in these dream lands. highlighting the winners over whelmed in the magical delight of their favorite beverage Coca-Cola. it is a utc scheme in which people are getting television sets of different sizes. This activity helped billed confidence and brand loyalty among core consumers. magical “dream vacation” to numerous “wonder destination” throughout the world on every purchase of a 250 ml RGB bottle of Coca-Cola.5 liter PET bottle & the 1 liter bottle with a super price-off promotion. Coca Cola TV Mazza The coca cola new campaign is coca cola tv mazza.Sprite. Bunting etc) displayed at all MC Donald’s restaurants along with a special offer for coke & fries. 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.
for the first time in almost 3 years. which are the key accounts of the company as this has been never done before in Pakistan. Fanta & Sprite are sure to enjoy considerable success in Pakistan. On the Go Packs” flaunting the innovative packaging convenience.Fanta & Sprite Launched In November 2000moving on to the Sprite & Fanta brands. 41 . diet coke. the consumers in Pakistan witnessed a soft launch in essence. Diet Coke After the acquisition of the individual local franchise bottling facilities in 1996. the company has successfully launched its first new product. The Coca-Cola Company declared the new “NonReturnable” bottles of Sprite & Fanta as the “New. The was linked with three fashion shows as Diet Coke is related to fashion & fitness. but the major hit was thematic fashion shows in restaurants.
so providing more satisfaction to them company should introduce ½ liter disposable bottle. So for this coca cola company should produce their product according to the local demand. • According to the survey. • Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. 42 . • They should also focus the old people. 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. which are following. • Now young generation has a trend to drink a coke 2 regular bottles at same time.CONCLUSION After thorough research. conducted by the international firm Pakistani people like little bit sweeter cola drink. RECOMMENDATIONS After completing our project we have concluded some recommendation for the coca cola company. • Marketing team should try to increase the availability of Coke in rural areas.
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. And there are some exceptional things like: “environmental protection laws” they some what effect the industry of Coke. From last two years Government is going to be really very much conscious about the environment. they don’t leave any good or bad impact in the Industry of coke. 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. military take over. In the “political variables” most of the things are related to Governmental activities. they are: POLITICAL VARIABLES Political variables Effects of government regulations & deregulations Effect of environmental protection laws if any Import and export regulations Effect of political conditions in certain countries of Coke Any effect of election. So it affects slightly the revolution of Coke. So. So “political conditions” are over all leave neutral effects on coke’s industry. 43 . So it impact good for the Coke’s reputation.PEST ANALYSIS OF COCA-COLA There are four variables. Revolution at Coke Strongly Effected ++ Some what Effected + No Effect +− NE Some what Effected − Strongly Effected −− YES NE NE YES Conclusion Of Political Analysis: As far as the above table is concerned it could be seen that there are very little chances of “political variables” to effect the coke’s production and selling behavior. which we will discuss in our report.
800 people. It also impacts highly negative in the Coke’s production. When we draw the conclusion of “economic variables”. And inflation is also not a good position for any country’s production point of view. Economic factors are those actors who effect the production of any industry.S). During the last 2 years. the Coca-Cola system in Pakistan has involved over $130 million (U. Coke is not the out of question. So. If the economic conditions of the country is not that strong and Coke increases its Price in this situation.ECONOMICAL VARIABLES Economical Variables Do soaring interest rates make business task any harder Any effect due to inflation Anything done to reduce unemployment Any effect of 11th September 2001. Then it would impact highly negative. The Coca-Cola system in Pakistan employs 1. incident at Coke in Pakistan Strongly Effected ++ Some what Effected + No Effect + − Some what Effected − Strongly Effected −− YES YES YES NE Conclusion Of Economical Analysis It could be seen that “economical variables” highly affects the Coke’s resolution. 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. And as a country concerned like “Pakistan” where the unemployment rate is very much high. 44 .
particularly those relevant to our business. While we have always sought to be sensitive to the environment. We’re committed to preserving our environment. supplies. We are always innovating to bring you different delicious beverages. educational programs in local communities are our priority. Strongly Effected ++ YES YES YES Some what Effected + No Effect + − Some what Effected − Strongly Effected −− CONCLUSION OF SOCIAL ANALYSIS EDUCATION The Coca-Cola Company has always believed that education is a powerful force in improving the quality of life and creating opportunity for people and their families around the world. ENVIRONMENT A large part or our relationship with the world around us is our relationship with the physical world. we are involved in innovative programs that give hard-working. climate changes. Knowledgehungry students books. The Coca-Cola Company is committed to helping people make their dreams come true. Here’s a sample of what we’re doing in different communities around the world regarding the conservation of water and natural resources. places to study and scholarships. from use of more than $ 2 billion (U. waste environment education.S) a year in recycling content and suppliers. We want the world we share to be clean and beautiful. All over the world. down to very local neighborhood collection and beautification efforts. This same spirit of innovation comes alive in our environment programs. and environment Management initiatives. we must use our significant resources and capabilities to provide active leadership on environmental issues. 45 .SOCIAL VARIABLES Social variables Effects of advertisement of Coke on Public popularity How will do Coke’s contribution affect charity organizations of Pakistan Has rising consciousness of natural resources in people effected your “save environment activities. From youth in Brazil to first generation scholars.
The Coca-Cola system initiated a famine-relief program to help victims and was the first private-sector company to assist. It will resulted in increment of their production through out the country. selected through a draw.The Coca-Cola system in Pakistan operates through eight bottlers. This approach of government decreases the profit margin of Coke. COMMUNITY INVOLVEMENT: In 2000. As far as the “governmental hindrances” are concerned the impacts highly bad on coke’s production. Through computers coke can increase the efficiency of its business and can have up –to-date data about their productions. And it is giving the way of other industries to come to new technologies and into a new world of business. The Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one employee from each plant. And though it’s a big industry so it is promoting the trend of paperless environment. when eastern Pakistan suffered its worst droughts.it impacts good. because computers are the basic need of any person now a days. 46 . TECHNOLOGICAL VARIABLES Technological variables Have business innovations effectively promoted your business Has the government’s regulations ever hindered in importing technical equipment Does Coke help in promoting paperless environment Strongly Effected ++ YES Some what Effected + No Effect + − Some what Effected − Strongly Effected −− YES YES Conclusion Of Technological Analysis Of course business innovation leaves highly good impacts in the business of Coke. Ever year when budget in announced government taxes rates always shoot up. Four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). As coke use more advance technology in its production process. As the coke helping in promoting “paperless environment” . to be sent on the Holy Pilgrimage to Mecca at the Company’s expense.
Coca-Cola is no doubt one of the most popular beverage company and its product COKE is one of most consumed cola drink. Pakistani rock stars. Situated on Raiwand Road. Lahore plant of Coca-Cola is one of the beautiful plant in Asia. Its entertaining and colorful advertisements have always and will always rock the media. Coca-Cola has always had a close consumer and supplier relationship with its customers. promotions and recreational campaign. 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. Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough time. Coca-Cola has about 2000 employees at Pakistani plants. 47 .OVER ALL RESULTS OF PEST ANANYSIS After our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited). sportmen and actors have played a very vital role in making CocaCola such a popular beverage. we came up with the very interesting report of facts and figures. They spend billion of dollars on their advertisement.
CONCLUSION: Coca-Cola no doubt come the heart beat of Pakistanis. Coca-Cola is one of the leaders in sponsoring the most important. thrilling events. E.g. So… “ Jo chaho ho jaye cocacola enjoy ” 48 . Event at the present they are organizing a Basant festival for which they busily organizing stuff. concerts and many other social occasions. Cricket matches.