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Zoya Ishaq ____________ Name of student
June 25, 2011 _____________ Date DEDICATION _________________ Signature
I dedicate this report to my grandfather Malik Anwar-ul-Haq who passed away on October 6, 2010. He was my source of encouragement, motivation and inspiration. He was a best friend, a companion, a teacher, a father and a man with a dignified character and an impressive personality. Bareabu, this is for you to thank you for all your effort, time, love and support in making me who I am today and to tell you that you will always be remembered.
They have been a motherly figure for me and I can just not thank them enough for framing me into a personality that I possess today. Ms Farhat Iqbal Awan. Last but not the least. I am extremely grateful to Allah Almighty for showering His blessings on me continuously and helping me at every stage of life and providing me with the ability to complete this report successfully. 4 . They make me who I am today with their unconditional love.ACKNOWLEDGEMENT First and foremost. I express my thanks to my advisors. and Ms Manal Talat for providing me with the courage to make a name as a student of BBA for 4 years. I would like to thank my parents for their trust and belief in me always. Ms Anum Zafar and Ms Maryam Rehmat. They have worked very hard on this with me. My humble gratitude and word of appreciation is also for Ms Saira Farooqi. without whom this report would not have been completed and compiled. Head of the BBA Department at Kinnaird.
I have gathered a sound knowledge over the matter and have found this study to be extremely useful to me in my learning experience. The scope of the project is to discuss the marketing strategies adopted and applied by ‘Coca Cola’.e what are the market shares of the beverage companies and what are the tactics used by the leader which makes them able to control and influence the market. The primary concern is how and what type of advertising tools and techniques Coca-Cola has used throughout the years since this company bases its sales on advertising and placement. 5 . what problems its faces and what recommendations are possible from my research analysis. Pakistan. The main purpose of this project is to teach us as to how Coca-Cola has done over the many decades since its beginning. The primary purpose of the report is to find out which company is leading the market i. My purpose was also to share maximum information about the products of Cola Cola that are now glued to our daily life consumptions.PREFACE The study mainly focuses on how Coca Cola has performed over the past years internationally and especially in Pakistan.
Kinnaird Postgraduate Programs 93. Thank you. The Bachelor in Business Administration class has a course requirement for their complete organization analysis that entails project research. 2011 Coca Cola Beverages Pakistan Limited Lahore Subject: Research Work for Final Dissertation Dear Sir/Madam. It is requested that you allow Zoya Ishaq of BBA – 8 to spend time and conduct research in your Organization. Jail Road Lahore 54000 Pakistan Telephone 042-7569536 April 14. Your time and help in this connection is appreciated. 6 .
Ms Saira Farooqi Head of Business Studies TABLE OF CONTENTS EXECUTIVE SUMMARY INTRODUCTION Rational of Study Research Objectives Problem Identification Hypothesis Research Plan Methodology INTRODUCTION TO COCA COLA Mission Vision Shared Values Objectives History Success Story 8 10 11 11 12 12 14 14 16 17 17 18 19 21 22 7 .
History in Pakistan ORGANIZATIONAL STRUCTURE SWOT ANALYSIS ORGANIZATIONAL ANAYLYSIS ORGANIZING STAFFING LEADING CONTROLLING COMPETITOR ANALYSIS MARKETING SWOT/PEST/BCG ANALYSIS RESEARCH FINDINGS & DATA ANALYSIS SUGGESTIONS & RECOMMENDATIONS APPENDIX 24 27 34 38 45 55 58 62 65 95 104 109 155 156 8 .
Executive Summary 9 .
Coca Cola’s global market share and performance have been studied. its vision. mission. Its performance in Pakistan has been taken under focus and problems have been identified and solutions recommended.This report has been compiled as a research project for the final year of BBA at Kinnaird College for Women Lahore. Hence. CCBPL. Placement and Promotion. where it lacks and how it can improve. The report highlights the company’s SWOT and PEST Analysis and also brings forward the BCG Matrix analysis. The organizational structure presented in this report along with staffing. The main purpose of this project is to teach us as to how Coca-Cola has done over the many decades since its beginning. The study in this report mainly focuses on how Coca Cola has performed over the past years internationally and especially in Pakistan. its market share is only 17% while in Pakistan. The marketing mix helps discover all aspects under the 4 P’s: Product. aims and objectives. The report gives us a brief introduction about The Coca Cola Company. The report is basically a detailed analysis of Coca Cola Beverages Pakistan Limited and the general beverage industry of the country. Price. this report gives an in-depth information about the process adopted by Coca Cola. 10 . out of the total beverage market only 36% accounts for Coca Cola’s market share. Coca Cola is celebrating 125 years of existence this year. leading and controlling details gives a complete managerial understanding of the brand. what problems its faces and what recommendations are possible from the research analysis conducted. In this report. Coca Cola is the leading beverage brand in the world and owns more than 60% of the global beverage market. In Asian countries.
CHAPTER 1 Introduction 11 .
The problems behind this lower market share lie in the distribution system. Coca-cola with its 450 brands is claiming to be the world’s best non-alcoholic beverage maker and is yet proving his claim by having 63% share in the world market and they are fulfilling their promise to maintain a standard and proving to become a quality symbol. advertising efforts. In Pakistan especially. Secondary information has been congregated through different marketing books. brand awareness. Coca Cola has a share of almost 17% which is far lower than its share in all other regions. In order to divert my efforts towards understanding the problems faced by Coca Cola and to give appropriate recommendations to these. 1. And their aim is to serve the nation by making only non-alcoholic drinks and to give the world a cool and fresh treat. questionnaires and interviews have been conducted to study consumer preferences. fake bottling and consumer cultural tastes. articles and generals related to advertisement and promotion.1 RATIONAL OF STUDY The topic of my research project is “The lesser market share of Coca Cola in Pakistan”. The purpose behind this report is to find out the actual existing problems behind the lesser market share of Coca Cola International in the overall beverage industry of the country and to provide the best possible solutions and recommendation to cater to this problem. international investment. The primary information has been taken directly from the Coca Cola office in Lahore. In Asian countries. Coca Cola is trumped by PepsiCo as Pepsi owns a market share of more than 60% of the Pakistani beverage industry.1. both primary and secondary information was utilized. internet sites of Coca-Cola Company.2 RESEARCH OBJECTIVES • • To identify the marketing strategies of Coca Cola To identify the impacts of marketing strategies of Coca Cola on its consumers 12 . Surveys.
4 HYPOTHESIS STATEMENT In order to determine the reasons for the less market share of Coca Cola. 1. the market share compared to other countries is extremely low.3 PROBLEM IDENTIFICATION The problem being faced by Coca Cola in Pakistan is the lesser market share in the country in comparison to its ultimate rival PepsiCo International. the problem definition would be: “The less market share of Coca Cola in Pakistan”. These include: High Price (pricing strategy) 13 . There are many reasons behind this lower market share as mentioned in detail in this research report. In Pakistan. Coca Cola invades more than 65% of the global beverage industry market share. The market share in Pakistan is 32% of the total market share as compared to 60% of that of PepsiCo while 8% is allotted to other local and less intense competitors. Hence. It generates the second lowest market share of 17% of the total from Asian countries.• • • • • To explore the market share of Coca Cola internationally and nationally To explore customer preferences while selecting a particular beverage brand To identify the problems faced by Coca Cola in Pakistan To analyze Coca Cola’s competitors in detail and understand their marketing strategies and market trends To determine solutions to the derived problems 1. I have made certain tentative hypothesis which may be the root cause of the lower level. These reasons will be statistically examined later to reach the actual reasons.
No. HYPOTHESIS STATEMENT Null Hypothesis 1 : The less market share is not due to price of Coca Cola Alternate Hypothesis : The less market share is due to price of Coca Cola Null Hypothesis : The less market share is not due to poor advertising of Coca Cola 2 Alternate Hypothesis : The less market share is due to poor advertising of Coca Cola Null Hypothesis : The less market share is not due to the competitors of Coca Cola 14 . Inefficient and Ineffective Advertising (promotional strategy) Intense Competition (strong competitor strategies) Non-availability (Placement strategy) Consumer Preferences Keeping in view these reasons I made the following hypothesis for my study: Table 1: Hypothesis Statement Sr.
controlling functions etc so that one can have a 15 . firstly. I will be giving a brief history of Coca Cola. Next. managerial functions.5 RESEARCH PLAN In this project. its mission and vision statement followed by P&G’s corporate values and objectives. leading functions. staffing procedures. I would be discussing Coca Cola’s organizational structure.3 Alternate Hypothesis : The less market share is due to the competitors of Coca Cola Null Hypothesis : The less market share is not due to non-availability of Coca Cola 4 Alternate Hypothesis : The less market share is due to non-availability of Coca Cola Null Hypothesis : The less market share is not due to consumer preference for Coca Cola 5 Alternate Hypothesis : The less market share is due to consumer preference for Coca Cola 1. I will be discussing the beverage industry globally and of Pakistan generally. specifically focusing on Coca Cola. departmental functions.
In the end I will give suggestions and recommendations according to the conclusions derived from the results of the statistics. 1.6. 1. I will be discussing the research problem in detail with the statistics I have obtained from an impartial survey conducted by me. placement and quality and then the results were analyzed and recommendations are suggested. Following this. be aware of its operations and can easily relate with it for a better understanding of the subject matter of this report which is related to Coca Cola. promotion. 1. A survey was conducted to check the consumer response towards beverages generally.3 Sampling Technique: The sampling technique used was random sampling. 1.4 Data Used: 1. Lastly.188.8.131.52 Target Population: The target population for the survey includes all those who use washing detergents. various analyses will be provided like competitors’ comparative analysis. I will also bring forward the marketing strategies of Coca Cola for its operations in Pakistan.6.6 METHODOLGY The data used in compiling this report is primary as well as secondary. advertising.better feel of the company.6. 1. consumer preferences and reasons for preference and specifically determines consumer’s response towards Coca Cola’s price.2 Sample Size: The sample size of the survey was 100 potential consumers and /or consumers. The most important source of information is the data collected by me during the research process. SWOT analysis and PEST analysis.1 Primary data: Information acquired via questions asked from the staff 16 .
or any in which this is asymptotically true.6.6.2 Analysis Techniques: The two analysis techniques used by me during this research project are: Descriptive statistics (frequency tables. charts etc) Inferential statistics ( chi-square testing) Chi-square: A chi-square test (also chi squared test or χ2 test) is any statistical hypothesis test in which the sampling distribution of the test statistic is a chi-square distribution when the null hypothesis is true. Survey conducted My personal observations 1. graphs.2. meaning that the sampling distribution (if the null hypothesis is true) can be made to approximate a chi-square distribution as closely as desired by making the sample size large enough. 17 . So I will be applying Chi-square test to test my hypothesis.1 Secondary data: Manuals/Annual Report Internet 1.
CHAPTER 2 Introduction To Coca-Cola 18 .
➢ To Create Value and Make a Difference. and create economic value added by improving economic profit. Customer demand drives everything we do. maximize our long-term cash flows.in body. quality growth. • People: Be a great place to work where people are inspired to be the best they can be. The Coca Cola Company creates value by executing business strategy guided by four key beliefs: ➢ The customer is the king.through our brands and our actions. and our communities..everywhere we engage. expand our share of worldwide nonalcoholic ready to drink beverages sales. ➢ Brand Coca Cola is the core of our business. including our consumers. ➢ We will serve consumers a broad selection of the nonalcoholic ready-to-drink beverages they want to drink throughout the day.1 MISSION In order to achieve mission of increasing market share and maintaining good relations with our customers all over the world. Everything we do is inspired by our enduring Mission: ➢ To Refresh the World... our bottlers.. and spirit. mind. we wish to create value for all the constraints we serve. The ultimate objectives of our business strategy are to increase volume. ➢ We will be the best marketers in the world..2 VISION Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable. ➢ To Inspire Moments of Optimism. 2.2. 19 ..
• Productivity: Be a highly effective. • • • • • • • Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be. 2. • Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. together we create mutual. lean and fast-moving organization. • Partners: Nurture a winning network of customers and suppliers.• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.3 SHARED VALUES Our values serve as a compass for our actions and describe how we behave in the world. it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do. enduring value. • Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. we do well Focus on needs of our consumers. customers and franchise partners Get out into the market and listen. observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious Focus on the Market • • • • • Work Smart 20 .
what worked and what didn’t Be the Brand • Inspire creativity. Coca-Cola is a great place to work where people are inspired to be the best they can be.• • • • • Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently Act Like Owners • • • • Be accountable for our actions and inactions Steward system assets and focus on building value Reward our people for taking risks and finding better ways to solve problems Learn from our outcomes -. Moreover maximizing return to shareowners is also a key aspect the company has to keep in mind because if shareholders are not satisfied by the performance or return they get they will stop investing in the firm. passion. optimism and fun 2. Employees are said human resource in business terms no doubt employee are back bone of the company because they are the one who play a vital role in making company’s a success story. Keeping the above mentioned points the company also has to be mindful of the overall responsibilities.4 OBJECTIVES OF COCA COLA INTERNATIONAL Profit: Profit maximizing is the aim of each and every firm regardless of how large or small it is because profits are the return which one gets in return of operations. Competitive wages and salaries are key feature of Coke’s human resource 21 . with high motivational techniques used in order to get the best from them. People: By people here it means the employees. Even Coca-Cola has large profit in Billions but still even it acquires hundred per cent market shares it will seek increased profit margins.
Consumers get what they want at the price and quantity which satisfy them. everywhere we engage...” 22 . Planet: Coca-Cola has long been an active partner when it comes to improvement. to Inspire Moments of Optimism... Partners: Partners with regard to supply especially and link with external parties for example ad agencies. through our brands and our actions and to create Value and Make a Difference. The polar bear campaign of the company is itself a success story in every aspect.department because the company believes that if employees are not with you. The company takes all external parties along with it and satisfy them the best they can... in body. and spirit. Coca-Cola believes that in order to achieve new heights and succeed it is necessary to provide a range of products to consumers which make them feel special and pleased. certainly you will lose out and suffer. mind. Coca-Cola wants to be a responsible global citizen that makes a difference and that its steps lead to beneficial effects on the economy. restoration and protection of environment. banks and insurance. Portfolio: Here the company focuses in the company’s image as a whole which means bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples’ desires and needs. security agency. public and environment with nothing being negatively impacted by its actions. AIM OF COCA COLA “To Refresh the World. Coca-Cola aims at nurturing a winning network of partners and building mutual loyalty so that there is no hurdle in its success and growth.
a pharmacist. Carbonated water was teamed with the new syrup.5 OBJECTIVES OF COCA COLA PAKISTAN The company has sales based objective . suggested the name and penned “Coca-Cola” in the unique flowing script that is famous worldwide even today.6 HISTORY OF COCA COLA Coca-Cola was first introduced by John Syth Pemberton. production etc. Historical trends. producing a drink that was proclaimed “delicious and refreshing”.2. advertising plan. in the year 1886 in Atlanta. 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. Frank M. market size and growth rate . macro environment and micro environment factors.” The first newspaper ad for CocaCola soon appeared in The Atlanta Journal. Dr. economic condition. Robinson. current market position. whether by accident or otherwise. a theme that continues to echo today wherever Coca-Cola is enjoyed. inviting thirsty citizens to try “the new and popular 23 .Everything else (marketing plan. He suggested that “the two Cs would look well in advertising. social values. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. Pemberton’s partner and book-keeper.future expectations and predictions 2.) is derived from this objective.
Illinois. California. John S. three years after The Coca-Cola Company’s incorporation. By the year 1891. John Pemberton’s former partner Frank Robinson and two other associates. was registered in the United States Patent Office on January 31.96 on advertising. Others were opened in Chicago. Mr. sales of Coca-Cola averaged nine drinks per day. his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. Candler. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. with the suggestions “Drink” added to inform passersby that the new beverage was for soda fountain refreshment. Within four years. For his efforts. just prior to his death in 1888. an entrepreneur from Atlanta. and in 1894. the first syrup manufacturing plant outside Atlanta was opened in Dallas. The trademark “CocaCola. 1893. In 1895. Red has been a distinctive color associated with the soft drink ever since. He gradually sold portions of his business to various partners and. Candler announced in his annual report to share owners that “CocaCola is now drunk in every state and territory in the United States. With his brother.” used in the marketplace since 1886. Dr. The first year.” As demand for Coca-Cola increased. Pemberton grossed $50 and spent $73. Pemberton never realized the potential of the beverage he created. Dr. the Company quickly outgrew its facilities. sold his remaining interest in Coca-Cola to Asa G. The business continued to grow. shipped in bright red wooden kegs. and Los Angeles. Candler formed a Georgia corporation named the Coca-Cola Company.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings. Texas. Mr. A new building erected in 1898 was the first headquarters building devoted exclusively to the 24 . Asa G. Dr. By the year 1886. the following year.soda fountain drink. Candler. Mr. Pemberton sold 25 gallons of syrup.
While Candler had introduced the U. he carried it a few doors down to Jacobs' Pharmacy.7 SUCCESS STORY OF COCA COLA 1886-1892 : It was 1886. Frank Robinson. caramel-colored liquid and. Pemberton's bookkeeper. another great American symbol was about to be unveiled. and wrote it out in his distinct. 1893-1904: Asa G. In 1923. and Candler found brilliant and innovative ways to introduce them to this exciting new refreshment. but The Coca-Cola Company was none too pleased about the proliferation of copycat beverages taking advantage of its success. the mixture was combined with carbonated water and sampled by customers who all agreed -. Woodruff would spend more than 60 years as Company leader introducing the beverage to the world beyond. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success. four years after his father Ernest purchased the Company from Asa Candler.S." 1919-1940: Perhaps no person had more impact on The Coca-Cola Company than Robert Woodruff. named the mixture Coca-Cola®. when it was done.this new drink was something special. urging consumers to "Demand the genuine" and "Accept no substitute. So Jacobs' pharmacy put it on sale for five cents a glass. and a great brand. Robert W. Here. a natural born salesman. One afternoon. Woodruff became the Company president. Candler. John Pemberton. and in New York Harbor. was inspired by simple curiosity. he stirred up a fragrant. an Atlanta pharmacist. Like many people who change history. He knew there were thirsty people out there. Advertising focused on the authenticity of Coca-Cola. making Coca-Cola one of the most recognized and valued brands around the world. This was a great product. 2. Eight hundred miles away. the Coca-Cola Company was sold to a group of investors for $25 million. 25 . Both needed to be protected. In the year 1919. 1905-1918: Imitation may be the sincerest form of flattery. workers were constructing the Statue of Liberty.production of syrup and the management of the business. transformed Coca-Cola from an invention into a business. to Coca-Cola.
Coca-Cola has fans from Boston to Budapest to Bahrain. with TAB® in 1963 and Fresca® in 1966. drinking brands such as Ambasa." 1990-1999: The 1990s were a time of continued growth for The Coca-Cola Company. Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola Company. Coca-Cola®.8 COCA COLA HISTORY IN PAKISTAN “To provide Coca-Cola at arms ‘length” Coca-Cola Company started its operation in Pakistan in 1953. In the remotest comers of the globe. completely overhauled the Company with a strategy he called "intelligent risk taking. 1960-1981: After 70 years of success with one brand. 2." was coming true -. 2000-Now: Now well into its second century. and the world met the lovable Coca-Cola Polar Bear for the first time. Roberto C. Goizueta. with ongoing support of the Olympic Games. the era of legwarmers. headbands and the fitness craze. the Company's goal is to provide magic every time someone drinks one of its more than 400 brands. originally developed in the 1940s and introduced in the 1950s. The Company's long association with sports was strengthened during this decade. the number of countries with bottling operations nearly doubled. you can still find Coca-Cola. In 1981. In 1960. Vegitabeta and Frescolita. The Coca-Cola Company acquired The Minute Maid Company.1941-1959: Woodruff’s vision that Coca-Cola be placed within "arm's reach of desire. 1982-1989: The 1980s. and a time of much change and innovation at The Coca-Cola Company. who fled Castro's Cuba in 1961. Coca-Cola was market leader till 1987. juices to the Company. 1993 saw the introduction of the popular "Always Coca-Cola" advertising campaign. Till 1996. the Company decided to expand with new flavors: Fanta®.from 1940s until 1960. at Karachi. adding an entirely new line of business. Sprite® followed in 1961. 10 bottling plants were being managed and run by the local partners under a franchise agreement. Based on company’s strict policy on product quality and marketing 26 .
During the last two years. The Coca-Cola Company in Pakistan has invested over $130 million (U.& distribution standards. Fraser and Neeves Singapore and Packages Ltd. 3. Objective was the acquisition of bottling plants from the local bottlers (i. CCBPL initial Paid-Up Capital stands at PKR. The CCBPL plants are in Karachi. Initially it acquired National Beverages LTD Karachi and later acquired International Beverages LTD Hyderabad . a Singapore based bottler of Coke. Faisalabad. Multan and Lahore. bought off the local bottlers in Karachi. The Coca-Cola System in Pakistan operates through eight bottlers. Since the beginning of Coke Company the firm has been continuously changing its slogans and that’s a very creative idea to get the attention of the customers. Rahim Yar Khan.000 people working constantly for the company.e. Fraser and Neeves. The CocaCola System in Pakistan serves more than 70. The Coca-Cola System in Pakistan has nearly 3. Sialkot. Riaz bottlers) for and manages them to bring them upto CocaCola international quality and marketing standards and brings modern management practices in beverage field. Coca-Cola Beverages Pakistan Limited (CCBPL) was incorporated in 1996. with Coca-Cola Company and local partners having a 90: 10 shareholding pattern. four of which are majorityowned by Coca-Cola Beverages Pakistan Limited (CCBPL). • • • • 1953 Brand Coca-Cola was Introduced 1961 Concentrate Plant was established 1965 Fanta flavor was Introduced 1972 Sprite Brand was Introduced 27 . Since then coke has made an impressive impact on the local market by increasing it’s availability as well as its volume share. Not long after it went on to acquire the bottling plants in Hyderabad as well.S) and coke has successfully provided 58 years of dedicated service to its customers in Pakistan. Gujranwala.In May 1996. it was decided to purchase these bottling plants from the local partners. Coca-Cola Beverages Private LTD (CCBPL) is a joint venture between Coca-Cola International.5 Billion. Hyderabad.000 customers/retail outlets. CCBPL has decided to expand its operations in Pakistan by buying other bottlers all over Pakistan.
Lahore Coca Cola is a multinational company and has its operations worldwide. according to the sale Coca-Cola is at second position in Pakistan and the market leader is Pepsi. Some of these territories are: 1. The head office of South West Asia region is in Lahore.• • • • • 2001 Diet Coke was Introduced 2005 Sprite Zero was launched 2007 Sprite 3G was launched 2007Kinley was launched 2008 Minute Maid was launched At present. Lahore 2. Lahore In Lahore the franchise unit was established in 1964. Rawalpindi (warehouse 28 . Coca Cola Beverages Pakistan Ltd. Karachi 3. Coca-Cola is the market leader with maximum market share. with the wish or struggle to make it easy to distribute Coke in different areas and to make it No. 1 position in the market. and with the hope that it will play a great role in increasing the production and to make it popular in all over the country Business Areas In Pakistan. there are 11 territories where the franchised units produce and sell Coca-Cola. Location and Market Coca Cola plant is located at: 23 Km Raiwind Road. Lahore Head Office: 5-E-Ii Gulberg III. But overall in the world.
Hyderabad 6. Multan 7. Rahim Yar Khan 8. Faisalabad 9. Gujranwala 29 . Peshawar 5.4.
CHAPTER 3 Organization al Structure 30 .
2 ORGANIZATIONAL CHART (overall) per plant 3.3 ORGANIZATIONAL CHART CCBPL PLANT 31 .1 ORGANIZATIONAL HIERARCHY OF COCA COLA 3.3.
4 ORGANIZATIONAL CHART HR\IR DEPARTMENT 3.3.5 ORGANIZATIONAL CHART ACCOUNTS DEPARTMENT 3.6 ORGANIZATIONAL CHART MAINTENANCE DEPARTMENT 32 .
3.8 ORGANIZATIONAL QUALITY CONTROL DEPARTMENT 33 .7 ORGANIZATIONAL CHART SALES & MARKETING DEPARTMENT 3.
9 ORGANIZATIONAL CHART DISTRIBUTION & LOGISTIC DEPARTMENT 34 .3.
CHAPTER 4 SWOT Analysis 35 .
One of the weaknesses is the distribution network. It is available in all sizes for example 500ml. Even though Coca-Cola is one of the top most recognized brands throughout the world but still there are some factors where Coca-Cola has to work in order to eliminate shortcomings. 2. like easy to carry. Strong financial position of the company makes it easier for it to spend money on every department of the organization. WEAKNESSES By weaknesses it is meant the missing elements which make the company vulnerable to changes. The price set by company is within reach of the customer and they can consume the quantity they want with less burden on their packets this is why the consumer base of cola drinkers have reached new heights ever rising . 2 liters. Consumers feel secure consuming the products which are under banner of Coca-Cola and it is a result of a lot of hard work the company has done in order to create positive and valuable market image and goodwill. Increasing annual per-capital consumption of Coca-Cola products is giving rise to the brand value. Packaging is a feature that adds value to Coca-Cola. Another strength of Coca-Cola is that its price. But when taking transportation in to consideration PepsiCo is way 36 . When operating in small countries and new places strong distribution is more than important so that the target consumer gets the product in the shape he or she expects. Coca-Cola always has strong advertising campaigns which put long lasting impacts on customer’s loyalty. Another strength of Coca-Cola is the uniquely designed bottle which has distinctive features. this gives Coca-Cola an edge over others when they launch a new product.5 liters so that one can enjoy the drink fully in the size which suits one. Coca-Cola is known world-wide and operates in more than 200 countries and with a great chunk of market share internationally. It is largely liked by consumers because of its strong. It is easily accessible and within reach of consumers at large.SWOT ANALYSIS STRENGTHS Coca-Cola has been operating successfully for over a century and has been ruling hearts of cola lovers. refreshing taste and above all its availability.
Pepsi and other soft drinks have been preferred by the younger generation primarily based on attitude. The reason for this opportunity is that Coca-Cola has the potential to bring out new ideas and implement in a way that it catches attention of new customers and make old customers loyal customers. more research for capturing markets and to increase the number of countries it operates in. By taking this opportunity properly into hand Coke can easily float new ideas and make positive impacts on its existing market share and further differentiate the company's products to sustain a competitive advantage and become market leaders. the classic imagery of Coca-Cola is losing the battle for the youth market to drinks perceived as trendier and having more of an edge. not on taste. In this context. Another potential opportunity which Coke enjoys is that it has capital in billions to expand. Coca-Cola has always been known for being innovators and the one that bring change. OPPORTUNITIES A true global brand. When it comes to opportunities Coca-Cola has significant growth opportunities. The company’s long-term lead in the beverage industry presents a challenge. With a large consumer base Coke’s growth in sales and market share is growing at a good rate. such as Dr. Coca–Cola offers its products in over 200 countries and produces 4 of the top 5 soft drink brands. Coca-Cola really has to work on flavor so that it may not lose customers in markets like Pakistan where cola drink is consumed in large quantities. Pepper and Mountain Dew. Coca-Cola does have an opportunity to increase consumption of its flagship brand. In Pakistan. Expansion here means finding new markets. Coca-Cola is 37 . In countries like Pakistan where sweetness counts Coca-Cola has to work really hard. Coca-Cola Classic is the world’s most well-known product and the bestselling soft drink in history with consumption of 1. As it has become a favorite of the masses.3 Billion servings per day.ahead of Coca-Cola. Blind taste tests conducted by Beyond Advertising and reported in other studies indicate most people cannot accurately identify a cola brand based on taste. Pepsi wins over Coca-Cola because people prefer a sweeter drink. Need of the hour is to find some good distributors or Coca-Cola is highly financed company it can start its own distribution so that it does not lose out on customers cause of false or late deliveries.
38 . more youth-relevant image can win Coca-Cola’s additional market share. The ever increasing regulation against soft-drink distributors like water shortage and it is Coke’s main ingredient that could affect its production negatively. Awareness about obesity amongst youngsters. PepsiCo may merge with other small companies to eliminate Coca-Cola. Coke Studio has shown a significant increase in the marketing share (up to 10%) as it has covered masses. for this Cole must try to come from above on the small players and try to capture them instead of making Pepsi stronger. It will further increase the product and business life cycle of Coca-Cola. The market segment has been criticized for rising obesity among children. language or sounds that resonate with youth. in Pakistan. PepsiCo and other competitors may develop marketing strategies to eliminate The Coca-Cola Company but Coca-Cola is known for its innovative trends it must bring some new ideas as an answer to competitor and gain competitor edge if the pressure put by competitors is not properly handled there may be an economic downturn in the business life cycle of Coca-Cola. both rural and urban. There is a possibility of beverage demand reduction and Coca-Cola as a beverage is concerned about it. A research revealed that Coke has not been as aggressive as its competition in the use of visual icons.highly trusted in the consumers circles Coke can easily through some new products in the market such as Coca-Cola in different flavors because the trust Coca-Cola enjoys is the edge which will lead to increased sales and profits. Moreover negative publicity on sugar/calories products. triggered by the consumption of non-diet carbonated soft drinks. But it can be tackled by making the right moves. THREATS A major threat which Coca-Cola faces is from Pepsi which is increasing its product range day by day and catching consumers. Music is a big opportunity for Coca Cola. A fresh. most likely making new ads and campaigns at grass root level.
CHAPTER 5 Organization al Analysis 39 .
➢ To satisfy the customer through extra ordinary service and an excellent service along with the complete tactical and operational support.1 STRATEGIC GOALS: The strategic goals are considered when company is thinking of the long-term objectives but at coca cola strategic objectives and goals are set up for three years. However. Thus. 5. ➢ To project an outstanding corporate image. ➢ To select and retain the professional people for the organization.Coca-Cola vision statement: “We will become the best and the biggest anchor bottler in the world” CCBPL has a very flat hierarchy. they are reviewed every year in the annual meeting to make sure that they are in line with the changing environment. These strategic goals are decide by the top management with consultation by the parent company head quartered at Singapore. consisting of just three layers.2 TACTICAL GOALS: The top management of the company on an annual basis devises these goals together with the consultation of the lower level employees. Then each departmental director is given these annual 40 . They are: ➢ To continue to be an organization providing the quality products to the valuable customers. The objectives of this company can be classified as: 5. the top management handles most of the goals setting and planning activities.
Each salesman has to bring in at least three new accounts every month. ➢ To increase the total retail customers by around 10%. duties and certain targets: Each salesman has to oversee around 100-125 outlets. For example: a sales man is given following tasks. these goals are: ➢ To increase the revenues by 20% as compared to last year. The salesman has three basic functions to perform.3 OPERATIONAL GOALS: Operational goals are decided by the top management in consultation with the lower level employees. 5. • • • To find new customers. mainly through marketing. They are following the concept of management by objectives (MBO). To retain existing ones. The frequency of visits to each outlet depends upon the sales of that particular outlet.tasks that then subdivide it on the quarterly or monthly basis to have a proper check to ensure that these objectives are achieved. ➢ To increase the market share by 5%. For this year.e. 41 . ➢ To reactivate the discontinued customers by 30%. every alternate day. To bring back the discontinued accounts. Each employee is assigned its goals and is told what is expected of him and then he is evaluated on the basis of certain rules and regulations followed evenly by the company. is the job of the director of each division. These may either be new customers or the reactivation of the discontinued accounts. Normally. a salesman has to visit a single outlet thrice a week i. This means that a salesman visits at least 20-30 outlets per day.
Programmed decisions are made only by the top management with no consultation what so ever with the line managers while the daily and routine decisions are made by the line managers at the middle level with the prior permission or approval from the general manager. Decisions. which definitely helps the salesman achievement of the above-mentioned goals. Then prospective applicants are short listed through the interview process. are related to ➢ The package positioning ➢ Trade discounts ➢ Advertisements ➢ Price reductions ➢ Distribution While recruiting new employees.4 DECISION-MAKING The decision-making process in CCBPL is centralized. the top management approves the vacancies and asks the Human Capital Department to conduct the written test and this test normally is conducted for the employees at the lower level. 42 . The model used is classical. which are normally taken at the top management. Then the Business and operations manager or general manager personally interviews the employees and then makes the final decision about the selection himself.Sales manager is made responsible for the performance and achievement of operational goals and is assigned to set certain milestones for the salesman so as to give him proper feedback. 5. whereby the top management takes their time while making decisions and explore and evaluate all the possible alternatives before choosing the rationally economic and feasible solution.
As a manager: • Ensure that the people you supervise understand their responsibilities under the Code and other Company policies. • Take opportunities to discuss the Code and reinforce the importance of ethics and compliance with employees • Create an environment where employees feel comfortable raising concerns. timely and understandable. accurate.• • • • Be Honest Follow the law Comply with the code Be accountable Managers should at all times model appropriate conduct. Never falsify any document. Always act to stop violations of the Code or the law by those you supervise For financial and business reports: Always record and classify transactions in the proper accounting period and in the appropriate account and department. 44 . Do not delay or accelerate the recording of revenue or expenses to meet budgetary goals. Do not distort the true nature of any transaction. Ensure that all reports to regulatory authorities are full. • • • • Estimates and accruals must be supported by appropriate documentation and be based on your best judgment. • • • Consider conduct in relation to the Code and other Company policies when evaluating employees. fair. Never encourage or direct employees to achieve business results at the expense of ethical conduct or compliance with the Code or the law.
meals or entertainment. business partners and consumers. Collect. Payments should be made in the supplier’s home country. Corporate Social Responsibility: 45 . Exceptions must be approved by the Ethics & Compliance Office. or any other favor from customers or suppliers if doing so might compromise. Gifts. payments generally should be made only to the person or firm that actually provided the goods or services. Limit access to the information to those who have a legitimate business purpose for seeing the information. use and process such information only for legitimate business purposes. Act in accordance with any relevant contractual obligations. Meals and Entertainment: Do not accept gifts. Privacy: The Company respects the privacy of all its employees. We must handle personal data responsibly and in compliance with all applicable privacy laws. your ability to make objective business decisions in the best interest of the company. For this reason. Employees who handle the personal data of others must: • • • • • Act in accordance with applicable law.Never enable another person’s efforts to evade taxes or subvert local currency laws. unless the supplier legitimately has assigned payment or sold its accounts receivable to another entity. or appear to compromise. and Take care to prevent unauthorized disclosure. where it does business. or where the goods were sold or services provided.
at their each territory. which minimizes their carbon footprint. • • They have a School Adoption Program all over the country where they provide facilities to those schools whom nobody owns and takes care of them. Their products and operations do not negatively affect the environment.CCBPL’s corporate commitment is incorporated into an internal policy that ensures : • • • Their products are safe and healthy for the consumer. • CHAPTER 6 46 . Treating their workers and applicants with equality and that their suppliers also meet certain social and environmental standards. CCBPL is affiliated to different NGO’S. They are planning to install water recycling plants under “Give it Back” program. The refrigerators that they use or provide to stores or bodegas are environmentally friendly.
Organizing 47 .
There main functional departments within Coca Cola are: • • • • • • • Marketing Finance Packaging Sales Research and development Administration Distribution and Logistics Department Marketing Department The Coca Cola marketing department develops core strategies for company brands to ensure that all communication is consistent in every market. If all these departments perform their duty firmly then the objectives of The Coca-Cola Company will meet. If all departments perform in the correct way then that will continue the success of Coca Cola. Coca Cola is geographically split into five geographic operating segments. Africa.6. Europe. also known as strategic business units (SBU's). each of these departments help Coca Cola achieve their objectives. Asia. the Coca-Cola system maximizes its resources for market leadership and profitable growth. The six SBU's are North America. The marketing departments are responsible for marketing the products and advertising the products and promoting the products.1 DEPARTMENTS OF COCA COLA Every organization is made up of different departments. With this cohesive effort. Finance Department 48 . the amounts of departments are huge. As Coca Cola is a large multinational company. Each country has their own Head Office and departments. Middle East and finally Latin America.
Fanta raspberry. Fanta Tropical. They will also be involved in the planning process like taking over or any major decision. Packaging Department The packaging department of Coca-Cola Company is responsible for the packaging of the products. Sales Department The sales department of the Coca Cola Company is to coordinate the selling program. The Finance department is also responsible for the management accounts of the business like marketing etc. They work closely with marketing by looking at marketing research findings. They have to make the packaging attractive so that that product meets the eyes of the consumers. This involves keeping records of money received and paid out. etc. The Coca-Cola Company research department has done a lot of research and recently they have launched many new products like Diet coke with lemon. Fanta blue berry etc. Also. Bringing new products package is their responsibility. The financial records will be used to produce the annual reports for the shareholders so that they can see the company performance. They have to bring new products in the market for the change because the consumer cannot stick with the same old products. Research & Development Department This department has their budget given by the finance department and their responsibility is to investigate new products.The finance department of the Coca Cola Company is responsible for financial record keeping. 49 . If necessary then they also have to improve the quality of the products. Minute maids. They also have to make the distribution methods. decide how much to sell and how much to store in the warehouse and to choose the transporting method which is the most cost efficient and the quickest way. It works with the companies bottling partners to produce an attractive combination. The Coca-Cola Company finance department is also responsible for making budget of the company and for each department like marketing department or research and development department.
The shipping department is responsible for the maintenance of inventory of empty bottles. The data entry of all transactions is essential and most important task of this department so they have the complete 50 .g. customer satisfaction and make more profits. They deal with enquiries. stock counting and reconciliation. stock receiving from the production. The complaints that this department will get would be transferred to the research and development department to make the product better or fix the problem that the consumer is having. They act as a help support of the company. it is not the central purpose the business but every business organization would need this department. The whole transports and vehicles are arranged and maintained by logistic department. The D&L department has to coordinate with the production and marketing department also because lots of its functions were depending upon these two departments. dispatches to distributors and sales centre. Distribution and Logistic D&L department is basically the combination of two departments these are logistic and shipping department.Administration Department This department is essential for keeping the business going.e. As I said that the help desk department satisfies the customer by providing the information they needs and taking the complaints and passing to the research and development departments who improves the products. vehicle checking. unloading. emptying feeding to production. These departments are the most important department of The Coca-Cola Company because they helps the company to meets the objectives of The Coca-Cola Company i. monitoring of timely vehicle loading. This department improves the goodwill and efficiency of the organization. All the employees working here are responsible for all shipping activities e. They also coordinate with the excise department on hourly basis. Most businesses rely on administration to be organized. give messages produce documents and give information to any customer. surviving.
It is difficult to deliver its product to different regions then it gives post mix machines for making bottle of different flavour so whenever customer wants Coca Cola products. The CCBPL has divided its marketing and sales department as follows: Marketing and Sales Post Mix dept Collar injunction treatment Key Accounts Post Mix Department This department is responsible for providing the post mix machines to different and famous hotels. they are prepared from it and served to consumers instantly. The employees of this department are responsible for providing refrigerators to different outlets. The reason of providing the fridges to different retail outlet is providing cool and refreshing 51 .record that where which resource is utilized and what company is gaining from it. Collar Injunction Treatment The second sub department which comes under the marketing department that is CIT. The distribution and logistics department manger ensures the effective accomplishment of all tasks and coordinate and manage all the activities.
Senior Manager Finance & Accounts. TOP MANAGEMENT It consists of Chairman. MIDDLE MANAGEMENT This level of management consists of Assistant Manager. Assigns tasks to subordinates in their areas. Senior Marketing Manager and General Manager. This type of management receives orders from General Manager and implements them through the co-operation of lower management. The Top management formulates policies and makes decisions about the company activities for achieving the objectives. * * * Makes decisions within the scope of his own authority. The CCBPL responsibility does not end after providing the refrigerators to shops or to retailers but it also take the responsibility of repairing and maintenance of the fridges. While the main responsibility of middle management is to control and direct the operations with the consent of General Manager to get 52 . Labor Officer. The employees of this department are responsible for targeting new markets and advertisement for the promotion of the product and making people aware about the coca-cola bottles. General Manager implements these policies and decisions in the factory. The General Manager's authority consists of the following.bottles to the customer so they really enjoy drinking coke whether in summer or winter.2 LEVELS OF MANAGEMENT We can subdivide the company management into the following three main levels. Expects and requires satisfactory performance form subordinates. 6. HR & Admin Manager. Security Officer and Time Officer. Key Accounts The third and last is key accounts.
LOWER MANAGEMENT This department is headed by Assistant Manager and supervisor. supplies. and Factory. We intend to rapidly adjust the risk management and monitoring procedures of all businesses acquired during the fiscal year.work done. guidelines. The principles. However. The components of this risk management system are designed to help enable us to anticipate risks and to manage them carefully in the pursuit of our business goals. Assistant Manager controls all the activities of the factory according to the rules and regulations receive from General Manager. b) Good relations between Govt. Risk Management The Company has a system for assessing and monitoring its potential business and financial risks. the components of the internal control and risk management system do not eliminate risk entirely and. good working conditions and definition of standard performance and reporting of flow of work. It involves in standardized production. thus. c) Good relations with general public. While he performs the following main function: a) To maintain good relations with outside public. so that they conform to coca-cola standards. Management Commitment 53 . processes and responsibilities of our internal control system have been defined and established to help ensure prompt and accurate accounting of all business transactions and to continuously provide reliable information about the Company’s financial position for internal and external use. cannot prevent loss or fraud in all cases.
➢ Establishing measurable Objectives at all relevant functional levels. to formulate strategic plans of marketing. to finalize annual and seasonal budgets and to take active and preventive measures for mitigation of risks and for seizing business opportunities. investments. the CFO COO. handling of complaints on priority basis and taking corrective and (which required) preventive actions.The management of Coca-Cola Pakistan(CCBPL) is committed towards ensuring the effectiveness and continual improvement of management system through: ➢ Establishing those policies which are appropriate to the purpose and the corporate principles of the company. 54 . ➢ Instituting mechanism for taking customers feed back. and the Executive Directors of the operating divisions meets regularly to review the results of operations. The committee places before Board Of Directors all such matters which are required to be approved by it under the law as well as other matters of importance. ➢ Creating awareness among employees about the relevance and importance of their activities towards the achievement of company’s goals and applicable statutory and regularity requirements. production. ➢ Establishing measures that are aligned with the interests of the stakeholders. ➢ Creating a customer focused environment whereby their needs and expectations govern the actions of the organization. maintain and improve the Management System and to facilitate the enhancement of customers’ satisfaction. ➢ Provisioning of the necessary resources to implement. ➢ Conducting periodic and timely management reviews to ensure the continuing suitability adequacy and effectiveness and to assess the opportunities for improvement in the Management System. Role Of Executive Management Committee in Policy Formulation The Executive Management Committee comprising the CEO.
Managing Director & Chief Executive Officer(CEO)
➢ The managing Director & Chief Executive Officer has the overall responsibility for
implementing policies and company objectives and for ensuring their achievement. ➢ He is authorized by the Board of Directors to delegate powers to selected functionaries for the achievement of operational and strategic achievement of these goals. ➢ He defines the objectives and ascertains their implementation through an established Management system which he constantly monitors. ➢ He assumes the overall responsibility for the quality of the products and services which are manufactured and marketed by the company. Executive Committee ➢ The Executive Committee comprises of managing Director & Chief Officer, Chief Financial Officer and all the Executive Directors. ➢ This committee meets on at least quarterly basis to address issues in relation to the achievement of the company’s objectives and implementation of company policies. Chief Financial Officer Chief Financial Officer is responsible; ➢ For ensuring that the company remains profitable; ➢ For ensuring there is positive cash flow in the company; ➢ To deploy and monitor the resources required for the achievement of above targets How Work Is Done In The CCBPL The departments of the organization like marketing, production, planning, buying, and distribution department work together to fulfill the demand and to procuring the raw material that is required for production.
Marketing department receive orders from the customers and necessary information which beneficial for the organization. From marketing this data going to planning department and planning department determine the total demand and required raw Material for the demand. Planning department is the center point of whole process. Planning say to buying to purchase raw material with considering the lead-time Than buying department thinking about purchasing the raw material and contact With suppliers and choose certified suppliers and check the quality the raw material and purchase the raw material if it is satisfy with all specification. Planning department also say to production department to produce required products at time, about categories and lot size which should fulfill the demand and time when products are required. Then production department get the required raw material from the buying department which have been already purchased that material .Now Production department start the work and manufacture all products as soon as required. Planning department also say to distribution department to place the shipments and timing of that shipment. Distribution dept. gets the finished goods from the production and ship the products at mention places and get the receive approval from the Customer. In this way all process continues and works in the sequence. Efficiency of the organization depends upon all departments of the organization. Specifically planning, marketing, distribution, buying and production departments play more important role to increase the efficiency of the organization. WORKING Planning Department Marketing Production Buying Distribution Department Department Department Department Chart 10:
6.3 ORGANIZATIONAL STRUCTURE Implementation
This organization is functional based organization. Coca-Cola uses a broad span of control.
CHAPTER 7 Staffing 58 .
which he can make and sometimes. After passing the aptitude test applicant is asked to appear for an interview. For a salesman job simple arithmetic and general knowledge is tested. Know how of English is also necessary in some cases. Purpose of this interview is to confirm the data and claims. which the applicant has produced and made. Selection: 59 . This interview is normally carried out by the sales and human resource department.Recruitment is normally done on the required positions and not on the standby basis. Selection is based on different criterion for different positions. Recruitment starts whenever a supervisor or sales manager needs a salesperson and it is first approved by the general manager before sending it to the human resources department. If the applicant is selected. he is asked for four sureties or any other references. applicant is called for the aptitude test. human resource department also like to confirm from their Ex-Employers about the conduct and the reason for leaving of the applicant. All the vacancies are first internally advertised so that all the employees who fulfill the requirements can avail this opportunity. After the screening stage. Education requirements are the first and the most important and are the first part of the screening of the personnel. If there aren’t any suitable persons for a particular job then human resource department search its data bank and if there is no suitable person then at last it is advertised in the newspaper but it is rarely the case at coca Cola for the sales man.
sales environment and company policies and procedures.The selection process will vary depending on the position applying for. These include filling out the route card. the company also has some in-house training facilities. supervisory techniques and other areas related to the sales. Apart from this on the job training. dealing with the customers. market developer. Normally a new sales man is supposed to work under another salesman to learn the basics of selling techniques and the overall environment in which he will be working. in most cases a combination of any of the following tools will be used: • • • • • • Interview Group exercises Presentations Psychometric tests Role plays/Situational Exercises Interview Training: At Coca cola on the job training is given the utmost importance. setting the visi cooler and the next days order to be loaded. The company has a sales hall in which all the sales personnel are given some tips regarding the changes in the selling environment and how to improve efficiency and efficacy. selling skills. workshops and modules related to the sales management. Ethical behavior is emphasized most so as not to create any sort of bad habits which can cause great problems for the company. These tips are normally given by the general manager. However. At first a sales man is given information about the product. Coca Cola also arranges some type of seminars. and sales manager if required. 60 . Forecasting of the daily sales. as one process can’t fit all the different roles at CCBPL. After doing all this if has any problems in learning then he is guided by salesman. communicating with to loader. cash management. merchandising. A salesman is then allowed to work under the salesman but he is asked to perform all the operations by his own.
The company also has an effective incentive plan. To maintain the professional employees company has a policy of promotion from within. which is measured very objectively.Coca Cola does not have any library and special trainers but they do have the separate space for the training and they also use some sort of videos to elaborate and show the examples of effective selling skills and techniques. Internships: The company offers a number of internship programs for undergraduate and graduate students. CHAPTER 8 61 . Not only the wages and salary but different other benefits are also given to employees to motivate and retain them in the organization. Apart from this the company pays its employees more than the industry wages. Promotions are based on the performance.
Leading 62 .
Increasing business with a coordinated approach by helping each other in its operations. Due to the presence of delegation and participation the Democratic Leadership Style is used since managers have to run the organization by involving their workforce and considering them as an important part of the organization. They are required to take major administrative and general decisions and also these managers are responsible for leading and motivating their subordinates and staff people.8. Performance awards are also there for lower level employees so that they perform at their best and work at least to get the awards. because they hold a top position in the organization. Sales and Marketing Departments make the use of team work to keep the interest of their fellow employees developed. We give following compensation and benefits: 63 . Encouraging the employees to give new ideas so as to increase the customer satisfaction.2 EMPLOYEE COMPENSATION & BENEFITS The compensation objective is to improve performance of employees and convey a message to employees that company is loyal with employees. 8.1 LEADERSHIP STYLE Coca-Cola gives great importance to its General Managers. Juniors are not considered inferiors rather they are given a good dosage of experience and help that they start working on their own without the words of their managers.
a step to make their dream come true. so they provide them different entertainment and 64 . Managers give their teams’ timely feedback on their team’s performance and keep them motivated by helping them personally without any rules and restrictions also those who want to come forward are given a shoulder.3 MOTIVATION As mentioned earlier promotions are given on performance in CCBPL. trophies. But because they want maximum output from their employees. Every month the list of top ten performances given by the employees is issued by EXCOM. to recognize and laud the efforts and boost their morals for good work. cash prices and excellence awards are also given. Also amount of wages is relatively higher than a normal industry wage that creates a major difference not only the old employees work faithfully but the new ones are motivated to become part of such a good organization whose main priority is lower level employees. so the employees gets motivated to work hard and achieve that level of performance so that they may prosper within the organization.• • • • • • • Basic salary Bonus Medical facility Pick and drop Social security Cell phone Balance Annual Leaves Designation Supervisor Above Supervisor Below supervisor then Allowed leaves 26 leaves per annum 26 leaves per annum 24 leaves per annum 8. Stress Management There is no formal implementation of stress management policies in CCBPL. Further more to recognize and appreciate the good work by the employees.
4 COMMUNICATION Open culture is the basis of communication in the organization. kitchen staff are invited to cut the cake and celebrate their birthday with the whole staff. Managers also cop up with their teams and their offices are open 24/7 for those who want to remove any confusion. Every month.5 CORPORATE CULTURE Top Management takes great care of the Organizational Rules & Regulations which ought to be followed by every personnel of the company. 8. which helps managers a lot in making further decisions. Every employee is made well aware of the norms and values of the organization and formal set of rules is strictly followed so that some people may not benefit from the name of company and turn it into a dirty fish in front of the world.recreational activities which include trips. Employees are consulted by the top management for the decision process and the chain moves on. 8. Sometimes even the Grape Vine structure is used too so that the management can get the feedback of the employees about their working. 65 . the birthday party is arranged where all the employees having different designations including office boy. occasional parties and gatherings are also held where people come with their families. in the each territory. tours.
CHAPTER 9 Controlling 66 .
67 . Every salesperson is given an attendance punch card. Different departments have different criteria and different reporting and controlling systems. The reporting. This card includes all the details about the visits of the outlets. Certain criteria are fixed in advance and if these criteria are not met then the employees are asked and evaluated for the reasons and corrective actions are taken by the respective managers. time spent on these outlets. evaluation and control system of sales departments is follows: Sales Person’s Reporting system: Every sales person directly reports to market developer of his area. names of the loaders and salesperson’s time in and time out of the vehicle.Control is done through the evaluation. which he is supposed to fill out. This basically is used by the human resources department to evaluate the performance and calculating the total salary of the salesman. A sales person is supposed to give him a daily report of his activities and he is free to ask for any kind of assistance from the market developer. time during travelling. which records his arrival and departure time. sales made on these outlets. time spent on these outlets. This basically tells about the total sales of the salesman according to the brand and the size of the product. which is based on the very objective basis. Apart from this a sales person is also given a form to fill up for the next days order to be loaded in the truck. sales made on these outlets. He is also given a route call card.
This evaluation also motivates salespeople to work hard and get the promotion or at least the monetary rewards. TOTAL QUALITY MANAGEMENT (TQM) • • • • • Passion for Quality Marketplace Workplace Environment Community 68 . growth in sales. which are set and communicated at the very beginning of the year to each sales manager.Sales Person’s Evaluation System: Every salesperson’s evaluation is done on quarterly basis. Route call. Performance is evaluated on the basis of performance development plan. market development and the punctuality of the salesman. each quarter to every market developer and every month to each salesperson. Call completion. This performance development plan evaluates the sales people on the basis of call slips. which are given not only to the best salesman but the best market developer and the best sales manager of the year. Evaluation helps the company to promote the people to the higher levels of the organization. Effective and productive call. Performance is measured on the basis of achievement of the targets. attendance.
CHAPTER 10 Competitor Comparative Analysis 69 .
in order to come up with better products to gain more consumers and satisfy the existing consumers.e. The different ways of segmenting it are as follows: • • • • • Non-alcoholic and sports beverages Natural and synthetic beverages In-home consumption and out of home on premises consumption. for adults and for senior citizens Segmentation based on the amount of consumption i. beverages for kids. In order to leverage the beverage industry.10. The beverage industry is vast and there various ways of segmenting it.e. beverages form an important part of the lives of people. These two perceptions are the biggest challenges faced by the beverage industry. If the behavioral patterns of consumers in Pakistan are closely noticed. high levels of consumption and low levels of consumption. beverages are a luxury and that beverages have to be consumed occasionally. so as to cater the right product to the right person.e.1 BEVERAGE INDUSTRY IN PAKISTAN In Pakistan. it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. 70 . it could be observed that consumers perceive beverages in two different ways i. Age wise segmentation i. It is an industry. in which the players constantly innovate.
refreshment. It is important to look at the entire beverage market. The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages. purchase and consume. as a big opportunity.Four strong strategic elements to increase consumption of the products of the beverage industry in Pakistan are: • • • The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. • Communication should be relevant and trendy so that consumers are able to find an appeal to go out. taste. for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy. Market Share of Companies in CSD Advertising Budgets: The graph below shows the advertising budget of the top five players in the carbonated soft drinks market. The amount is in billions with Pepsi leading. stimulation. well-being or prestige relevant to the category. Figure 1 71 . The beverage market has still to achieve greater penetration and also a wider spread of distribution. relaxation. Consumer education is a must to bring out benefits of beverage consumption whether in terms of health.
and shareholders build their wealth. started experimenting with different soft drinks in 1893.’ Our success will ensure: customers will build their business.2 PEPSI "We have absolute clarity about what we do ‘WE SELL HIGH QUALITY FOOD AND BEVERAGE PRODUCTS. sugar. He was famous for his self-created beverage which was called “Brad’s drink’ that was made of carbonated water. 72 Figure 3 . Caleb Bradham." History of Pepsi History of Pepsi starts when. He had a soda fountain in his drugstore where he used to serve his customers refreshing drinks. vanilla. who was a young pharmacist.Figure 2 10. employees build their futures.
S. Caleb then applied for a trademark with the U. Washington D. This new name was trademarked in 1903. 1969–1975: "You've Got a Lot to Live. Invigorating. Aids Digestion.” Taglines of Pepsi 1939–1950: "Twice as Much for a Nickel" 1950: "More Bounce to the Ounce" 1950–1957: "Any Weather is Pepsi Weather" 1957–1958: "Say Pepsi. Please" 1958–1960: "Be Sociable. and Pepsi's Got a Lot to Give" 1975–1977: "Have a Pepsi Day" 1977–1980: "Join the Pepsi People (Feeling Free)" 1980–1981: "Catch That Pepsi Spirit" (David Lucas. Pepsi Cola received it first logo. This drink was later renamed Pepsi Cola.C and formed the first Pepsi-Cola Company in 1902. Pepsi‘s theme line then was ‘Exhilarating. He then bought the trade name “Pepsi Cola’. Have a Pepsi" 1961–1964: "Now Its Pepsi for Those Who Think Young" (jingle sung by Joanie Sommers) 1964–1967: "Come Alive. New Bern Weekly Journal printed the first PepsiCola advertisement. You're in the Pepsi Generation" (jingle sung by Joanie Sommers) 1967–1969: "(Taste that beats the others cold) Pepsi Pours It On".rare oils. In 1898. composer) 1981–1983: "Pepsi's got your taste for life" 1983: "Its cheaper than Coke!" 1983–1984: "Pepsi Now! Take the Challenge!" 73 . pepsin and cola nuts. Bradham then shifted his operations into a rented warehouse. Patent Office.
Drink Pepsi" 1993–1994: "Right Now" (Van Halen song for the Crystal Pepsi advertisement) 1994–1995: "Double Dutch Bus" (Pepsi song sung by Brad Bentz) 1995: "Nothing Else is a Pepsi" 1995–1996: "Drink Pepsi. "Bad" and "Black or White". featuring Pepsi version of Bad) 1990–1991: "You got the right one Baby UH HUH" (sung by Ray Charles for Diet Pepsi) 1990–1991: "Yehi hai right choice Baby UH HUH" (India) 1991–1992: "Gotta Have It"/"Chill Out" 1992–1993: "Be Young. featuring the Pepsi version of "Billie Jean".1984–1991: "Pepsi. The Right One" 1989–1992: "Diet Pepsi. Blige) 1999–2006: "Yeh Dil Maange More!" (India) 74 . "Black of White"'s was promoting the Dangerous World Tour. Have Fun. The Choice of a New Generation" 1988–1989: "Diet Pepsi." Pepsi Stuff campaign 1996–1997: "Pepsi: There's nothing official about it" (During the Wills World Cup (cricket) held in India/Pakistan/Sri Lanka) 1997–1998: "Generation Next" (with the Spice Girls) 1998–1999: "Its the cola" (100th anniversary commercial) 1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercial with Britney Spears/commercial with Mary J. Get Stuff. The Taste That Beats Diet Coke" 1986–1987: "We've Got the Taste" (commercial with Tina Turner) 1987–1990: "Pepsi's Cool" (commercial with Michael Jackson. The Choice of a New Generation" (commercial with Michael Jackson and The Jacksons. The Taste That's Generations Ahead" 1989–1990: "Diet Pepsi.) 1984–1988: "Diet Pepsi.
can be Pepsi) .meaning "Change The World" by CALL)(Pakistan) 2010–present: "Pode ser bom. Sarap Magbago." (Philippines . pode ser Pepsi" (Can be good. Blige) 2007–2008: "More Happy"/"Taste the once that's forever young" (Michael Alexander) 2000–present: "pepsi ye pyaas heh bari" ((Urdu) meaning "There is a lot of thrist" (Pakistan)) 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake) 2008: "Рepsi is #1" Тv commercial (Luke Rosin) 2008–present: "Something For Everyone" 2009–present: "Refresh Everything"/"Every Generation Refreshes the World" 2009–present: "Yeh hai youngistaan meri jaan" (Hindi) 2009–present: "My Pepsi My Way"(India) 2009–present: "Refresca tu Mundo" (Spanish . India for the 2011 Cricket World Cup) 2011–present "Dunya Hai Dil Walon Ki" (Pakistan-meaning World is For Lovers by Ali Zafar) Advertising Techniques • • • • Banners Hoardings Pamphlets Leaflets 75 .2003: "Its the Cola"/"Dare for More" (Pepsi Commercial) 2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young" (Mary J.Brazil 2011–present: "Change the game" (Bangladesh. can be very good.meaning "Refresh your world") (Spanish Spoken countries in Latin America) 2010–present: "Every Pepsi Refreshes The World" 2010–present "Pepsi. pode ser muito bom.meaning "Its nice to change") 2010–2011 "Badal Do Zamana" (Urdu .
Advertising Budget For Total Market Place Spending Allocated in Rs. concerts.: 2007 1. charity shows etc. This year a greater chunk of marketing budget has been allocated to it. allocates the budget according to the marketing plan on different activities for example cricket tournament.7Billion 2.9 Billion 2. There has been an increase in advertising budget since the cola war and increased number of competitor.9 Billion 76 Figure 4 .8 Billion For Advertising Allocated in Rs. Budget is further spent on areas according to priority in marketing plan. Corporate Responsibility Pepsi Co.• • • • • • • • • • TV Commercials Radio Commercials Paintings of Trucks Shop Decorations Fridge / Deep Freezers to shops Match Sponsorships TV Programs Sponsorship Print Ads in Newspapers Celebrity Sponsorship etc.: 2007 2006 2005 2. For example Pepsi’s new music marketing with the name of ‘Pepsify’ has been launched.
as the competition level is rising in the local as well as international market.8 Billion There has been a 13% increase in the advertising cost of Pepsi.7Billion 1.2006 2005 1. Pepsi’s advertising through the years 77 .
all the employees working for them being at their top and fullest.refuse substitutes The best beverage under the sun Pure and wholesome The standard beverage It's fun to be thirsty when you can get a Coca-Cola The taste is the test of the Coca-Cola quality Coca-Cola is a perfect answer to thirst that no imitation can satisfy The hit that saves the day Quenching thirst everywhere Refresh yourself 1924 1925 Pause and refresh yourself The sociable drink 78 .2 COCA COLA “'Remind Coca-Cola is the real thing' but their motto now has changed to 'To benefit and refresh everyone who is touched by our business...' Also Coca-Cola would hope to provide the best quality drink for everyone.. and crisp as frost Delicious. delicious Sparkling .” Advertising Slogans of Coca-Cola: 1886 1900 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1919 1920 1922 1923 Drink Coca-Cola Deliciously refreshing Coca-Cola is a delightful.harmless as water.. wholesome. refreshing Whenever you see an arrow think of Coca-Cola It's time to drink Coca-Cola Demand the genuine .10. palatable. refreshing. healthful beverage Drink a bottle of carbonated Coca-Cola The drink of quality Cooling.
.Along the highway to anywhere Help yourself to refreshment Good food and Coca-Cola just naturally go together Coke follows thirst everywhere Dependable as sunrise For people on the go Almost everyone appreciates the best Feel the difference Sign of good taste Refreshment the whole world prefers Cold.." you hear the voice of America Coke knows no season Delicious and refreshing Coca-Cola..refreshing new feeling Enjoy that refreshing new feeling A chore's best friend 79 .1926 1927 1928 1929 1930 1932 1933 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 Stop at the red sign and refresh yourself Pure and wholesome A pure drink of natural flavors The pause that refreshes Meet me at the soda fountain Ice-cold sunshine Don't wear a tired. crisp taste that deeply satisfies Relax with Coke Coke and food . thirsty face The drink that keeps you feeling right What refreshment ought to be America's favorite moment Anytime is the right time to pause and refresh Coca-Cola goes along Bring in your thirst and go away without it A stop that belongs on your daily timetable The only thing like Coca-Cola is Coca-Cola itself That extra something How about a Coke 1945 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 Whenever you hear "Have a Coke.
..after Coke..1964 1965 1966 1970 1971 1975 1976 1979 1982 1985 1986 1989 1990 1993 2001 2003 2005 2006 2007 2008 2009 2010 2011 You'll go better refreshed Something more than a soft drink Coke.. Coca-Cola Life Tastes Good Real Make It Real The Coke Side of Life Live On The Coke Side Of Life Unity on the Coke side of Life Open Happiness Twist The Cap To Refreshness Life begins here Advertising Techniques Banners Hoardings 80 .after Coke It's the real thing I'd like to buy the world a Coke Look up America Coke adds life Have a Coke and a Smile Coke is it! We've got a Taste for You (Coca-Cola and Coca-Cola classic) Catch the wave (Coca-Cola) Can't Beat the Feeling Can't Beat the Real Thing Always.
sports and energy drinks. 81 .6 Billion 2.8 Billion 2. Figure 5 In Rs.Due to previously held cola wars the advertising budget is kept the one that matches Pepsi’s as these two companies have always competed with each other on the grounds of marketing and advertising.800 beverage products in more than 200 countries. teas and coffees. Corporate Responsibility Today Coca-Cola Company offers more than 450 brands that comprise over 2. From diet and regular sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks.5 Billion -. waters. Pamphlets TV Commercials Radio Commercials Paintings of Trucks Shop Decorations Fridge / Deep Freezers to shops TV Programs Sponsorships Print Ads in Newspapers. 2007 2006 2005 2.
Coca-Cola’s Pictorial Advertising through the years
10.3 SHANDY COLA
History of Shandy Cola Shandy Cola was established in 1995 and in a short span of 12 years has acquired a prominent position in the Beverage industry in general
especially amongst local industry. Shandy is equipped with latest fully automatic plant of international standard. Shandy cola is presently available in 300ml, one liter and 1 ½ liter, PET bottle packing. ½ & 2 liter sizes will be launched soon to cater for the needs of small and large family segments. Shandy is the pioneer in introducing 250 & 270ml bottle in PET to make soft drinks more accessible. Introduction of PET bottles reduced many other product handling related hassles, since PET is unbreakable, free from minor brim damages, light in weight and does not need return of empty bottles Distributors, Dealers, Retailers, company itself and most important the consumer has benefited from PET in terms of economy, time and unnecessary double loading/unloading. Shandy with its strength of operating on most modern Plant, best Marketing and Distribution practices and being customer focused company is expanding taking strides. Our major strength lies in our Human Resource. Our internal customers (employees) are partners to Shady cola and their enthusiastic support for the organization is the USP for Shandy Cola. Shandy cola was readily accepted by the consumers, specially the younger generation where Shandy is being sold extensively at educational institutions. Our regular dealers/retailers include most of good Retail outlets and Retail Chains like Gourmet and Butt Sweets. Advertising Techniques • Print Ads -Magazine -Newspaper • Event Sponsoring Advertising Budget Shandy Cola’s budget is Rs.20 Lacs. According to the marketing wing the budget is enough because the company is still catering to some small markets.
10.4 RC COLA History of RC Cola It's been 100+ years since Claude Hatcher, a young graduate pharmacist in Columbus, Georgia, began creating soft drinks in the basement of his family's wholesale grocery business in 1905. Little did he know at the time, that his humble experiments would grow into a great soft drink company that's still driven today by the same innovative, entrepreneurial spirit. For a virtual tour of Royal Crown's rich history, scroll the page down. Birth of a Business The Company’s first cola product was Chero-Cola. Other early products included Royal Crown Ginger Ale, Royal Crown Strawberry, and Royal Crown Root Beer. Sales grew and in 1912, the Company began to sell syrups and flavor concentrates to franchised bottlers, which gave birth to the Royal Crown franchise system. Today it’s a worldwide force of Royal Crown bottlers, distributors, and of course, consumers that stretches around the globe. RC Cola Brands: RC Cola Diet RC Cola Cherry RC Cola RC Edge Cola Diet Rite Cola RCQ Royal Crown Draft Cola Kick RC Cola’s Taglines through the years
.Go RC! 1965-Who's drinking all that Diet Rite .America's No. even non-dieters drink it 1970-We cool off hot towns 1972-The one you loved is back 1974-RC . Yes 1977-Say yes to Diet Rite Cola: One big delicious Yes! 1980-Here's to fun 1981-Taste the one that won 1984-Cola lovin' woman.Come on over to RC Cola the one with the mad. Yes. Cola lovin' man Everybody! 85 .it’s just right for you 1975-Me and my RC 1975-No.1939-Royal Crown is Tops in Taste 1941-Best by taste test 1956-Better Taste Calls for RC! 1959-RC .Americas Number One" 1964-Go fresher . mad taste 1967-Diet Rite tastes so good. No.. 1 Low Calorie Soda 1967-scape .the fresher refresher 1962-Royal Crown is made fresher to taste fresher 1963-Go fresher with RC: "Overnight .
same great taste 1990-Take the RC Challenge 1994-Shake things up 1998-Be Free. RC finally stopped production somewhere in the early 90’s. RC Cola was being sued by different organizations internationally so it lowered its investment in the sub-continent.continent which was the 70’s. It was well known since the time of its arrival in the sub. Drink RC 2011-Taste changes. Advertising was minimal in Pakistan as compared to its competition. RC cola faded away by the early 90’s. Reasons for failure in Pakistan: Pepsi Cola and Coca Cola stormed into the market.1984-Everybody's Gotta Diet Rite 1985-ome people go out of their way for the taste of RC 1988 -Decide for yourself 1989-New look. 86 . good taste doesn’t RC Cola in Pakistan RC cola was a very famous drink in Pakistan.
The target market is the youth. Advertising Budget amounts to Rs.RC Cola has been planned to be relaunched in Pakistan in 2010 with its operations in Karachi. Advertising Techniques • • • • • • • • • Media TV Commercials Print ads (magazines. newspapers) Broachers Event Sponsoring Truck Painting Pamphlets Leaflets Bill boards Advertising Budget The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. 692. 00 87 .84.
30.4 AMRAT COLA History Amrat cola was launched in 2003. is an offspring of Pakistan Mineral Water Bottling Plant (Pvt) Limited (PMW) the establishment of which dates back to 14-12-1986.000 88 .10. Measures taken in the direction yielded into an extra-ordinary appreciation by the nation and the management was highly encouraged to give the idea of a comprehensive and concrete realization. in fact. 71. And today ABI is a twinkling star in the galaxy of national organizations. Nature of the business of the company has been the production and bottling of “Mineral Water” and Carbonated Soft Drink in PET Bottles and Aluminum Cans. Advertising Budget Rs. The idea behind the establishment of ABI was to acquire self-efficiency in the beverage industry and to provide the nation with quality carbonated soft drink. With the passage of time the impetus to the production of CSDs superseded all productions and thus ABI came into existence in 2003 and today PMW is working under the umbrella of ABI in the capacity of a subsidiary of ABI along with other franchisees network spread nationwide. ABI. The company set up the most sophisticated and hi-tech equipment for producing and filling CSDs and Mineral Water in PET Containers and Cans. Amrat beverage International (ABI) stands as one of the first large scale national beverage organization. since then it has made great leaps towards success.
small cities) where Amrat is very popular now.There has been a significant rise in the budget major reasons being the increasing demands and exploration of new markets (in towns. 89 .
It is based in Lahore. With his commitment and strenuous effort to provide the consumers with best quality 90 .Advertising Techniques • • • • • • • • • • • TV Commercial Radio Commercial Cinema Commercial Cable TV Commercial Print Ads (Newspapers) Banners Leaflets Brochure Hoarding Poll Streamers Occasional Ads (Ramazn+Basant+Eids+Matches etc.) Corporate Social Responsibility (Public Service messages+ Tree plantation + Polio Movement etc.) • Shop Decoration • • • • Distributor's awards Free Sample 3 plus one scheme 1. the second largest city of Pakistan known for its traditional foods and passion for eating. Muhammad Nawaz Chatha started this unique business with only one sale outlet. With their 4 processing units and 73 sales outlets plus 3 outlets are under construction they try to reach out to a huge population for their food needs. when Mr. The company has shown an explosive annual growth of more than 25 % in its business since 1987. 5 GOURMET BEVERAGES Gourmet Bakers and Sweets” is the largest food retail chain of Pakistan.
food products in a convenient and unmatched displaying manner. For Example Nestle. Apart from investment they have total of 73 outlets out of which 5 outlets are on rental basis and 68 outlets are owned by them. soft drinks. They are more focused on drinks also because of health conscious to use natural products and increase our immunity against diseases. At moment we have more than 1700 employees working in the organization. coffee & red drinks. Gourmet has been in the food industry of Lahore for the last 21 years and is dominant in its industry because of having more market share than its competitors. Soon they will start a new product line of fruit juices in the next two months for which a better offering is needed in order to gain more share by attracting customers. Haleeb. Their main financer/banker is Citibank. tea. Gourmet has invested 600 million on its beverages plant. Shezan. Coca Cola are Gourmet’s direct competitors in the field of fruit juices and beverages who have already captured a reasonable market share by serving all the classes of customers (high to low). Indirect competitors are those offering bottled water. Gourmet has become a success story of business growth in Pakistan. The only reason why Lahoris consume Gourmet beverages is the fact that they are far more economical and cater to the price needs of the general public. And from this huge investment they are expecting return on investment (ROI) from 10-15 %. 91 .
Many of these products are innovations but there are also many products which are brought out just as a competitive product for other companies. Some of these products that are brought in the market by both the companies to compete against each other are as follows: Table 2: Coca Cola products v/s Pepsi products COCA COLA PEPSI 92 .10/6 COCA COLA V/S PEPSI PRODUCTS Both the companies Coca Cola and Pepsi have a number of products.
The main dark cola drink of the company which started the rivalry between these Companies. Mountain Dew MDX is an energy drink manufactured distributed by PepsiCo. Under Mountain Dew brand in 2005. Sprite 3G is a carbonated beverage that was released by the Coca Cola Company in June 2005. 93 . Pepsi version of dark cola which is the major primary competitor to Coke.
Inc. Florida. but now extends to soft drinks of many kinds.Sprite is a clear.It was introduced in the U. produced by Coca Cola Company. lemon lime flavored. which is one of the world’s largest producers and marketers of orange juice. It has been owned by Pepsi Co. 7 up is a brand of a lemon-lime flavored soft drink. since 1998 94 .S in 1961. Tropicana products are an American company based in Bradenton. The Minute Maid company is now owned by Coca Cola and is world’ largest marketers of fruit juices and drinks. Minute Maid is a product line of beverages usually associated with orange juice. non caffeinated soft drink. USA.
95 .Nestea is brand of iced tea manufactured and distributed by the Nestle company’s beverage department in the U. in 1982 Diet Pepsi is a low calorie carbonated cola. Diet Coke or Diet Coca Cola is a sugar-free soft drink produced and distributed by Coca Cola Company. Brazil and Venezuela. Lipton Original iced tea is a ready to drink iced tea brand sold by Lipton through a worldwide partnership with Pepsi. It was introduced in 1964 as a variant of Pepsi Cola with no sugar.S. and by Coca Cola in several European countries.S. was introduced in U.
Mirinda is a brand of soft drink. It is produced and distributed by Coca Cola Company’s bottlers. Fanta is a soft drink brand owned by The Coca Cola Company. Aquafina is non carbonated bottled water produced by PepsiCo. 96 . Mirinda is owned by Pepsi Co.Kinley is a brand of still or carbonated water owned by The Coca Cola Company.
simple and modern. LOGO : COCA COLA V/S PEPSI There seem to be two types of people in the world. Both Coca Cola and Pepsi offer the same prices of their products. 97 . They change. Regardless of how many updates Pepsi has made to there logo. They cant seem to find themselves. and just when you think they got it. However when comparing it to the Pepsi logo. Coke has done a wonderful job making only minimal changes to keep up with the times.Maaza is a Coca Cola fruit drink brand marketed in India and Bangladesh. Simplicity: The idea behind cokes logo is very simple. You either a Coke fan or a Pepsi fan. Memorable: With all the different identities pepsi has gone through. and stay current. there is a clear winner. This is a complete opposite of Coke. its hard to think of any of them as memorable. For the past 125 years. its had minimal change throughout the 125 year history. their current design is clean. The script font used is very sophisticated and traditional giving the brand that ageless feel as it should. The logo has essentially stayed intact since the 1900’s. yet in the details it could be perceived as complex. Slice is a line of fruit flavored soft drink manufactured by PepsiCo and introduced in 1984. which is a true testament to the word timeless. Timeless: Pepsi’s logo has proved “fail” in this category for years.
46 billion 9. Pepsi.80% 8 in Pakistan 1.01% 11. The logo branches out to different varieties and often is often accompanied by a simple red bottle.04% 11.09 million 1.14 billion 9.34% 4.90% 7 in Pakistan 8.87% 95. using a variety of effects.6% CHAPTER 11 98 . It can be placed anywhere.26 billion 5. They are a heavy hitter in terms of graphics. or on top of a bottle cap.39 billion 11.37% 9.48 million 10.9% Pepsi 3.94% 465. however it is very ineffective. Table 3: Coca Cola v/s Pepsi Factors Earnings Cash flow Book value Market capital Profit Brands Revenue Net income Sales growth Coca-cola 5.Creative: The Coke brand is very versatile. is completely different.
Coca Cola Marketing 99 .
1 GLOBAL UNIT SALES OF COCA COLA Figure 6 11. 11.5 TARGET AUDIENCE OF COCA COLA: • • All age groups Youth especially 100 .11.2 REGION WISE CONSUMPTION OF COCA COLA Figure 7 11.4 MARKET POSITION OF COCA COLA IN PAKISTAN Figure 9 On global level Coca-Cola is the most popular brand and market leader controlling 60% of market share.3 MARKET POSITION OF COCA COLA WORLDWIDE Figure 8 11. In Pakistan Coca Cola is the market follower but still in a very strong and stable position holding 32% of the local market with a growing and increasing market share every year.
When their costs were high. People got more awareness about Coca Cola and the increase in the competition leads it to decrease prices.6 PRODUCT LIFE CYCLE OF COCA COLA Figure 10 INTRODUCTION STAGE OF COCA COLA. Coca Cola was launched and initially promoted. In this stage the marketing strategies used by Coca Cola were as follows: • • Product improvement New models were developed 101 . Efforts were made for creating its awareness in the market. and there was no existing demand for Coca Cola in this stage. sales volume were low. inducing trial of the product and securing space in the outlet shelf. GROWTH STAGE OF COCA COLA In the growth stage Coca Cola experienced rapid increase in sales volume and its competition began to increase.• Upper and Middle Class 11. In the Introduction stage.
more innovative products have been created that replaces that product. It has the following brands in Pakistan. Coca Cola’s brand differentiation and features diversification is emphasized to maintain and increase market share. sales volume is at the peak and most of the market is covered. The marginal costs of Coca Cola are low in this stage. DECLINE STAGE This is the stage in which sales of the product begin to fall. Either everyone that wants to. has bought the product or new. There is increase in competitors which are entering in the market. The only way to increase sales during this period is to cut the cost of the product. MATURITY STAGE OF COCA COLA Coca Cola is in the Maturity stage from years now.• • It entered new market segments It enlarged its distribution channels. Carbonated soft drinks ➢ Coca Cola 102 .7 MARKETING MIX OF COCA COLA Marketing decisions generally fall into the following controllable categories: ➢ Product ➢ Price ➢ Placement (distribution) ➢ Promotion PRODUCT Coca Cola Beverages Pakistan has a very narrow product range. 11.
103 .5 liter pet Juices ➢ Minute Maid ➢ Splash These products are sold in the market in different sizes of bottles. These sizes are available for all its products.25 liter pet Water products ➢ Kinley These products are sold in the market in different sizes of bottles. These sizes are available for all its products. These sizes are available for all its products. ➢ 250 ml ➢ 250 ml (Non Returnable) ➢ 300 ml (Non Returnable) ➢ 500 ml (Non Returnable) ➢ 1 liter ➢ 1.➢ Diet Coke ➢ Sprite ➢ Sprite Zero ➢ Sprite 3G ➢ Fanta ➢ Fanta Citurs These products are sold in the market in different sizes of bottles. ➢ 250 ml RGB ➢ 400 ml (Non Returnable) ➢ 1.
➢ 500 ml ➢ 1.5 Liter pet ➢ 20 Liter
PRICING The price of Coca Cola, despite being market leader is the same as that of its competitor Pepsi Cola. Sometimes, Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle and consumers think that they save a lot of money from this.
Table 4 : Retail Prices
QUANTITY (ML) 250(REGULAR) 250 ( NON RETURNABLE) 500 HALF LITER (330) CANE (1500) PET (2250) JUMBO PACK (500) KINLEY WATER (1500) KINLEY WATER MINUTE MAID PULPY ORANGE
CONSUMER PRICES (RUPEES) 13 20 25 30 65 80 15 25 45
PLACEMENT Placement means distribute the products among all channels. CCBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way
that the demand of customers is fulfilled at the right place and the right time when it is needed by them. Factory............Warehouse............Dealers......Customers Factory.............Agencies…………................Customers Factory……….Outstation…………………..Customers Types of Channels: Coke has two channels of distribution i.e.: ➢ DIRECT CHANNEL ➢ INDIRECT CHANNEL Distribution Process:
Total Channels: There are around 26 channels where products are distributed. i.e.: • • • • • • • • Vendors Bakeries Pan shops Restaurants Café General stores Departmental stores Super stores etc.
Getting Shelves: They get or purchase shelves in big departmental stores and display their products in those shelves in that style which show their product clearer and more attractive for the consumers. Eye Catching Position: Salesman of the Coca Cola Company positions their freezers and their products in eye-catching positions. 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. UTC Scheme UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, TV sets, cash prizes etc. This scheme is very much popular among children. Indirect Selling: They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of Coca Cola products. Facilitating the product by infrastructure:
Moreover leading newspapers of Pakistan are also the targeted by coke for advertising.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 Advertising Media: Coca-Cola Company advertises its products mainly coke through electronic media that includes Television. Radio and Internet as well. Coca Cola Company use different mediums ➢ Print media ➢ Pos material ➢ TV commercial ➢ Billboards and holdings Sales Promotion Activities: • • • • Coca Cola Cricket Coca Cola Concerts Coca Cola Food Mela Coca Cola Basant Festival Coca Cola Go-Red Coca Cola Party in a Park Coca Cola Shopping Festival Coca Cola Pet Promotion 107 • • • • . So we can say that coke not only uses electronic but print media for advertisement as well.
• Coca Cola Ramzan Campaigne Coca Cola Wonder of the World Promotion Coca Cola & Nokia Coca Cola TV Mazza Coca Cola & Mc Donalds The Big Idea to help flood victims Coca-Cola largest ever photo-mosaic Pakistani flag Coca Cola Scholarship Program Coke Studio • • • • • • • • CHAPTER 12 108 .
SWOT/ PEST/ BCG Analysis 109 .
1 SWOT ANALYSIS STRENGTHS • • • • • • • Excellent brand image Financially strong Wide infrastructure Technological strength Excellent quality Customer loyalty Popularity WEAKNESSES • • • • • Weak distribution network Less brands Less availability Lack of promotion Health issues OPPORTUNITIES • • • Increase Quality Awareness Among The Customers Billion Cases Markets Emerging Market 110 .12.
ECONOMIC FACTORS The economic condition of Pakistan has not been stable for a long time but the recent economic indicators suggest that the economy is growing and macroeconomic issues are getting sold but at the same time there has not any marked increase in the consumer buying power (inflation). A relaxation has been given by the current government.THREATS • • • Fake brands Local Brands Competitor Pepsi 12.2 PEST ANALYSIS POLITICAL FACTORS The political environment of Pakistan affects the coca-cola beverages and Coca-Cola Export Corporation. For instance. to some extent. Also the policies have been more or less constant and also the emaciation of free trade zones by the government will help the Coca-cola to flourish more effectively in Pakistan. Trade barriers such as tariffs and duties on the import of syrup (concentrate) from USA increases the operational cost. So the situation for the beverage industry is getting better day by day for the last couple of years. the political instability in Pakistan causes trade and import policies to change rapidly as the government changes which causes many problems in the import of raw materials. When the recession occurs the price of bottles are dropped down to increase the sales and to 111 .
Fanta. The main social issues are: It faced scandal of humiliating Muslim’s religion that when the inverted image of Coca-Cola brand name is being viewed on the mirror it disgraces the name of Holy city Makkah and Hazrat Muhammad (P.achieve the targets of the company. One of the greatest social barriers to coca-cola Lahore is the restriction of coke in the campus premises.B. It is a Highly Technical 10 Steps Process. filling and capping ". concentrate or syrup is imported from USA and is then mixed in the local plants . This was a wrong conception as there was no reality in it and this scandal was flopped after a short span. In technology Coca-cola company is far ahead than the several other local beverage brands of Pakistan.U. But on the contrary in the all parts of the country coke is viewed as the partner in the major events like Basant and promoter of music thereby making a place in the hearts of young generation of the society. TECHNOLOGICAL FACTORS The making of Coke. For this process. The system is automated and equipment is fully operational and up-to-dated. Diet coke and sprite involves "mixing and blending. So overall economy of Pakistan directly affects the cost and price of the Coca-Cola Company.Machinery for the local plants was also imported but now the coca-cola company follows Local content law as most of the spare parts are locally made. 112 .H). SOCIAL FACTORS Being a foreign based company Coca-cola faces opposition by Muslim activists. Jamiat’s strike to coke affects the sales and overall image of coke as a larger number of students from all over the Pakistan are studying in the University of The Punjab. Which are all done in the local plants using local content law.
STAR Coke Classic is the basic product through which the Coca Cola Company got the fame. Whenever the company thinks of launching 113 . It is one flavor. It is the one which make the coke company a huge success. which the Coca Cola Company can never think of stop producing. Coke has already worked a lot on it by launching new flavors in it. Here we have classified some of its major products in the BCG matrix on the basis of their fame and liking of the people. which has the maximum consumers all over the world. It is the one which is giving maximum revenues to it by different products in this line. CASH COWS Fanta and Sprite are the products. It is one product.3 BCG (BOSTON CONSULTING GROUP) APPROACH Coke is one of the main product lines of the Coca Cola Company.12. it was one product which gives billions of dollars as revenue from world over. which gives the maximum revenue from all over the world. but still it is a product they can turn as famous as coke Classic.
flavored Fanta is one product that was not a big hit.its product in a country the first product they launch is coke classic as they know that if don’t work here then nothing else can. Even it’s not a long period which flavored Fanta has consumed but still there are signs that it won’t be a success. Sprite 3G. QUESTION MARKS Products that are still not a big hit as they haven’t consumed much time yet. Diet Coke and Kinley are the examples of these question marks as the question marks as they have not taken much time yet to get a hold of market & not even the large percentage of the people have tasted it. DOGS A product that has not worked good or a product which has been a source of loss. Sprite Zero. So it needs time to be fully tested by the company & the company needs to think whether it should continue the production or should divert to something new. 114 . So it’s better for the company to get rid of it.
CHAPTER 13 Research Findings & 115 .
Data Analysis 116 .
2 100.Question # 1: What is your gender? Cumulative Frequency Valid Male Female Total 31 89 120 Percent 25.8 74.0 Interpretation: In the sample.0 Percent 25.0 Valid Percent 25. almost 26% of the sample population is that of males while the remaining 74% is of females. Question # 2: 117 .8 74.2 100.8 100.
7 3.35 36 .3 100.2 97.5 86.What is your age? Cumulative Frequency Valid 17 and less 18 . The 118 .7 100.7 100.5 94.45 46 and above Total 9 104 4 1 2 120 Percent 7. 7% and more belong to those under age 17.0 Percent 7.0 Valid Percent 7.25 26 .7 3. 3% out of 120 people belong to the age group of 26 – 35 and consume beverages while the remaining 2% is of those above age 46.5 98.0 Interpretation: The sample shows that around 87% of the youth between ages 18 to 25 consume soft drinks and beverages.3 .5 86.8 1.3 .8 1.
25.25.5 49. 70.5 17.000 – Rs.0 17.000 Rs.0 Interpretation: The sample shows that almost 50% of the sample population had a monthly income of Rs.000 Rs. Question # 3: What is your monthly household income? Cumulative Frequency Valid Rs.000 and more. 55. 40.8 5.8 5. 70.000 – Rs. 55.000 and Rs.0 17.0 Percent 10.Rs. 70.000 .000 Rs.youth is always the most responsive and is present in majority in the country.000 Rs.8 15.5 17.000. Coca Cola should target the youth especially. 40. It is energetic and accepts changes easily.8 33.000 and Rs.3 50. and also Rs.000 . 55.000 and more Total 13 6 21 21 59 120 Percent 10.8 100.Rs. 55.0 Valid Percent 10. 70. 17% had a monthly income between Rs. 40. 5% of the sample number 119 .000.2 100.2 100.10.5 49.
Question # 4: How often do you consume soft drinks? Cumulative Frequency Valid Daily Once a week Twice a week Thrice a week More than thrice a week Total 47 29 16 10 18 120 Percent 39.3 8.3 15.2 24.had an income between Rs 25.0 100.000 while the remaining 11% had an income of less than Rs. 25. 14% twice while 8% thrice a week at least.2 13.7 85.0 Percent 39.000.0 Valid Percent 39. 15% more than thrice. 24% consume soft drinks once.2 63.2 13. 120 .3 8. It is clear that the soft drink industry is a strong industry as most of the people drink one soft drink daily at least in the targeted areas.0 100.0 100.000 and 40.0 Interpretation: The sample shows that almost 40% of the sample population consumes soft drinks on a daily basis.3 76.3 15.2 24.
500 – Rs. 300 Rs. 700 . 700 Rs.0 21.7 100. 100 – Rs.0 121 .8 5.7 15. 900 Rs.Rs.8 26.0 21.8 5.0 Valid Percent 30.3 100.7 100.Question # 5: How much money do you spend on soft drinks monthly? Cumulative Frequency Valid Rs.Rs.0 51.7 67.0 Percent 30.5 73. 900 .8 26.7 15. 300 .more Total 36 26 19 7 32 120 Percent 30. 500 Rs.
900. It is clear that either people spend too much or too less on soft drinks.Interpretation: From the sample of 120 people.300 at least on soft drinks monthly. 300 – Rs.500 – Rs. the above pie chart depicts that 30% of the people spend Rs.100 – Rs. 900. and 16% spend between Rs. 27% spend more than Rs. 500. Question # 6: 122 . 700 – Rs. 21% spend between Rs. 700 while only 5% spend between Rs.
3 26.7 5.7 5.0 100.3 95.0 100.0 100.0 Valid Percent 68. The sample results show that only 5% prefer a local brand such as Gourmet Cola over Coca Cola 123 .0 Percent 68.3 26.0 Interpretation: The options given in the questionnaire was a list of 6 brands from which one had to be selected.Which of the following brand do you prefer? Cumulative Frequency Valid Coca Cola Pepsi Gourmet Cola Total 82 32 6 120 Percent 68.
0 Percent 72. The competition is directly between Coca Cola and Pepsi.5% chose Pepsi.5 27.5 100. it is imperative to denote here that more than 80% of the surveyed people belong to the age group of 18 to 25.0 Interpretation: When asked to be specific about their brand preference between Coca Cola and Pepsi.5% chose Coca Cola while 27. It is evident that 68% of the youth prefers Coca Cola over Pepsi. It is evident that 72% of the youth prefers Coca Cola over Pepsi.5 27. which do you prefer more precisely? Cumulative Frequency Valid Coca Cola Pepsi Total 87 33 120 Percent 72. this percentage figure also depicts the brand preference of the youth. Question # 7: Of the following brands. Thus. 72.5 100.0 Valid Percent 72. However. this percentage figure also depicts the brand preference of the youth.5 100. 68% and 27% respectively. it is imperative to denote here that more than 80% of the surveyed people belong to the age group of 18 to 25. Thus. Question # 8: 124 .or Pepsi. However.
7 90.Which soft drink brand of Coca Cola do you prefer? Cumulative Frequency Valid Coca Cola Classic Diet Coke Sprite Fanta Sprite 3G Total 73 13 23 9 2 120 Percent 60.8 10.8 71. Diet Coke and Sprite as the demand for them is the highest.0 Percent 60.5 1.7 100. 11% like Diet Coke. 7% like Fanta while only 2% like Sprite 3G.0 Interpretation: Almost 61% of the people who filled the questionnaire prefer Coca Cola Classic among the Coca Cola soft drink brands.8 19. 19% like Sprite. Thus Coca Cola should lay more focus on Coca Cola Classic.0 Valid Percent 60.2 7.8 98.7 100.8 10.2 7.8 19.5 1. 125 .3 100.
0 2.8 16.8 100.8 10.7 94.0 126 .0 2.8 10.0 Percent 5.5 5.5 5.8 100.7 91.8 75.8 75.2 100.Question # 9: Which mineral water brand do you prefer? Cumulative Frequency Valid Kinley Aquafina Nestle Sufi Gourmet water Total 7 13 90 3 7 120 Percent 5.0 Valid Percent 5.
5 5.0 57.3 9.5 90. Hence it is evident that Kinley water of Coca Cola is not a top favorite water brand. The survey results show that Nestle invades 75% of the market.8 100.0 Percent 25.0 127 .2 100.0 57. 11% people prefer Aquafina.0 3.Interpretation: The options given in the questionnaire was a list of 5 mineral water brands from which one had to be selected.0 3.0 Valid Percent 25.5 87. Kinley and Gourmet water are preferred by an equal 5% each while Sufi water is a preference in only 2%.0 82.2 100. Question # 10: Which juice brand do you prefer? Cumulative Frequency Valid Minute Maid Nestle Fruita Vitals Shezan All-Pure Country Cool Fresher Total 30 69 6 4 11 120 Percent 25.3 9.5 5.
Interpretation: The options given in the questionnaire was a list of 5 juice brands from which one had to be selected. Fresher is preferred by 9%. The survey results show that Nestle Fruita Vitals invades 58% of the market. The results depict that Minute Maid can be explored as it has good market potential. 25% people prefer Minute Maid. 5% people prefer Shezan All-Pure and a small 4% like Country Cool. Question # 11: 128 .
which means a total of 72% are satisfied.5 35.5 2.5 2.5 43. Question # 12: 129 .5 100.To what extent are you satisfied with the prices of Coca Cola? Cumulative Frequency Valid Extremely Satisfied Satisfied Neither Satisfied nor dissatisfied Dissatisfied Extremely dissatisfied Total 21 3 120 17.0 9 43 44 Percent 7. A fairly considerate percentage of 17% is neither satisfied nor dissatisfied.8 36.7 Percent 7.0 Interpretation: 36% people are extremely satisfied while 36% are generally satisfied with the prices of Coca Cola.8 36. This means that Coca Cola can continue with the current pricing strategy.5 35.5 100.0 97.0 17.3 80.7 Valid Percent 7.5 100. Only a total of 10% is dissatisfied or extremely dissatisfied.
0 57.0 130 .2 .0 57.5 4.0 Valid Percent 25.2 100.8 100.5 95.8 100.0 82. Cumulative Frequency Valid Strongly Agree Agree Neither agree nor disagree Disagree Strongly disagree Total 30 69 15 5 1 120 Percent 25.The advertising of Coca Cola is very good.2 .0 Percent 25.5 12.5 4.5 12.0 99.
in totality 6% are do not agree.Interpretation: The survey results show that 25% of the people strongly agree to the statement while 58% agree. Question # 13: 131 . Only. This means that people like the advertising of Coca Cola.
0 Valid Percent 21. This means that Coca Cola’s advertising is generally remembered on print media.2 21. radio and internet. Cumulative Frequency Valid Strongly agree agree Neither agree nor disagree Disagree Total 26 59 26 9 120 Percent 21.7 70. 21% are indecisive.0 Interpretation: Only 8% of the people disagree with this statement.The advertising of Coca Cola is on print media.5 100.5 100.7 7.0 Percent 21. radio and internet by a maximum number of people: 50% who strongly agree while 21% agree to this statement.5 100.2 21.7 7. 132 .7 49.8 92.7 49.
36% are neutral.7 29.5 100.8 20. Coca Cola has clear competition from Pepsi and most people cannot tell who has more popular advertisements. 133 .0 Percent 11.2 35.7 29.7 40.7 97.8 2.8 76.2 35.0 Valid Percent 11.5 100.5 100.0 Interpretation: The survey results show that only 12% people strongly agree with this statement.Question # 14: The adverisements of Pepsi are more popular than Coca Cola.8 20.8 2. 29% agree. Cumulative Frequency Valid Strongly agree Agree Neither agree nor disagree Disagree Strongly Disagree Total 14 35 43 25 3 120 Percent 11. 21% disagree and 2% strongly disagree.
Cumulative Frequency Valid Strongly Agree Agree Neither agree nor disagree Disagree Total 78 35 5 2 120 Percent 65.0 94.7 100.2 1.2 1.Question # 15: Coke Studio is a good marketing strategy of Coca Cola. 134 .2 98.0 Interpretation: Only 2% of the sample population disagree with the statement which means that Coke Studio is an excellent marketing strategy of Coca Cola and the company should pursue it.2 4.2 4.0 Valid Percent 65.0 29.0 Percent 65.7 100.0 29.3 100.
0 Percent 35.2 6.Question # 16: Sprite .2 88.0 39.0 135 .3 95.University of Freshology is a good marketing strategy of Coca Cola Cumulative Frequency Valid Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree Total 42 47 17 8 6 120 Percent 35.7 5.7 5.2 14.0 74.0 100.0 39.0 100.2 6.0 100.0 Valid Percent 35.2 14.
Implementation: 35% of the people strongly agree while 39% agree that the University of Freshology marketing strategy is good. Coca Cola must come up with more cool and fresher lessons under this strategy. Since. It can be said that this approach has appealed to the youth. Only 5% strongly disagree and 7% disagree. Question # 17: 136 . most of the surveyed people belong to the youth.
3 37.2 100.5 5.8 100.3 37.0 4. Question # 18: 137 . This means that Coca Cola is generally available easily.Coca Cola and its products are available easily.3 90.8 95.0 Implementation: Only 4% of the people disagree with the statement.0 Valid Percent 53.0 4.0 Percent 53.2 100. Cumulative Frequency Valid Strongly agree Agree Neither agree nor disagree Disagree Total 64 45 6 5 120 Percent 53.5 5.
0 Percent 13. Cumulative Frequency Valid Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Total 16 31 53 14 6 120 Percent 13.2 11.0 100.2 83.8 44.3 25.3 25.7 5.0 138 .3 39.2 11.7 5.8 44.Coca Cola and/or its products are more easily available than Pepsi.3 95.0 100.0 Valid Percent 13.0 100.
13% strongly disagree.Interpretation: Most of the people agree with this statement. 12% disagree while 5% are indecisive. Question #19: 139 . Coca Cola faces immense competition from Pepsi and this survey result is also an evidence of it.
3 100.0 Valid Percent 38.3 16.Where do you buy Coca Cola and its products most from? Cumulative Frequency Valid College/University/School General Stores Super markets Restaurants Total 46 46 20 8 120 Percent 38. Coca Cola should therefore pay more attention to the placement of its products at areas where it is bought the most. universities and general stores as shown from the survey results.0 Percent 38.7 93. Only 16% are bought from super markets and 7% from restaurants.3 16.3 38.7 6.0 Interpretation: Coca Cola and its products are bought the most from schools.7 6. 140 . colleges.3 38.7 100.3 76.7 100.
8 .0 15.0 Valid Percent 80.8 .2 100.0 141 .0 Percent 80.5 .8 100.8 2.8 100.0 15.0 95.8 96.8 2.Question # 20: You consume Coca Cola and/or its products because of its Cumulative Frequency Valid Taste Brand Image Packaging Advertisements Price Total 96 19 1 3 1 120 Percent 80.5 .7 99.
Advertisements have a minute role of 2% while 1% accounts for packaging and price each.Interpretation: 80% of the people consume Coca Cola for its good taste. Coca Cola should pay more importance to advertisements to attract more people. Brand Image accounts for 16% of why people drink Coca Cola and its products. People prefer it because it is less sweet than its competitor Pepsi’s. 142 .
HYPOTHESIS TESTING THROUGH CHI-SQUARE TEST Hypothesis: 1 Null Hypothesis: The less market share is not due to price of Coca Cola Alternate Hypothesis: The less market share is due to price of Coca Cola H◦ = O=E H1 = O =E Significance level: 5% Test Statistics:
To what extent are you satisfied with the prices of Coca Cola? Observed N Extremely Satisfied Satisfied Neutral Dissatisfied Extremely Dissatisfied Total 9 43 44 21 3 120 Expected N 36.0 48.0 6.0 24.0 6.0 Residual -27.0 -5.0 38.0 -3.0 -3.0
Test Statistics To what extent are you satisfied with the prices of Coca Cola? Chi-Square df Asymp. Sig. 263.313a 4 .000
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 6.0.
Interpretation: Since P-value (.000) is less than significance level (.05), there is evidence against the null hypothesis and the null hypothesis is rejected which says that the less market share is not due to price of Coca Cola. The alternate hypothesis is accepted that the less market share is due to price of Coca Cola.
Hypothesis: 2 Null Hypothesis : The less market share is not due to poor advertising of Coca Cola. Alternate Hypothesis: The less market share is due to poor advertising of Coca Cola. H◦ = O=E H1 = O =E Significance level: 5% Test Statistics:
The advertising of Coca Cola is very good. Observed N Strongly agree Agree Neutral Disagree Strongly disagree Total 30 69 15 5 1 120 Expected N 42.0 36.0 12.0 18.0 12.0 Residual -12.0 33.0 3.0 -13.0 -11.0
Test Statistics The advertising of Coca Cola is very good. Chi-Square df Asymp. Sig. a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 12.0. 53.901a 4 .000
Interpretation: Since P-value (.000) is less than significance level (.05), there is evidence against the null hypothesis and the null hypothesis is rejected which says that the less market share is not due to poor advertising of Coca Cola. The alternate hypothesis is accepted that the less market share is due to poor advertising of Coca Cola.
Hypothesis: 3 Null Hypothesis : The less market share is not due to competitors of Coca Cola.
0 24.0 -16.0 48.Alternate Hypothesis: The less market share is due to competitors of Coca Cola.0.000) is less than significance level (. Sig.05).0 -18. H◦ = O=E H1 = O =E Significance level: 5% Test Statistics: Which of the following brand do you prefer? Observed N Coca Cola Pepsi Gourmet Total 82 32 6 120 Expected N 48.0 Test Statistics Which of the following brand do you prefer? Chi-Square df Asymp. there is evidence against the null hypothesis and the null hypothesis is rejected which says that the less market share is not due to competitors of Coca Cola. 0 cells (.0 Residual 34. The alternate hypothesis is accepted that the less market share is due to competitors of Coca Cola. Interpretation: Since P-value (. 42.917a 2 . The minimum expected cell frequency is 24. 146 .000 a.0%) have expected frequencies less than 5.
0 Test Statistics Coca Cola and its products are available easily.05).0 18. H◦ = O=E H1 = O =E Significance level: 5% Test Statistics: Coca Cola and its products are available easily. The minimum expected cell frequency is 18. 0 cells (.000 a.0 36. Alternate Hypothesis: The less market share is due to non-availability of Coca Cola.000) is less than significance level (.0.0 18.972a 3 . Interpretation: Since P-value (.0 -13. there is evidence against the null hypothesis and the null hypothesis is rejected which says that the less market share is not due to 147 .0%) have expected frequencies less than 5.Hypothesis: 4 Null Hypothesis : The less market share is not due to non-availability of Coca Cola.0 -12. 24. Chi-Square df Asymp. Sig. Observed N Strongly Agree Agree Neutral Disagree Total 64 45 6 5 120 Expected N 48.0 9.0 Residual 16.
944a Expected N 48.non-availability of Coca Cola. The alternate hypothesis is accepted that the less market share is due to non-availability of Coca Cola. H◦ = O=E H1 = O =E Significance level: 5% Test Statistics: You consume Coca Cola and/or its products because of its Observed N Taste Brand Image Packaging Advertisement Price Total 96 19 1 3 1 120 Test Statistics You consume Coca Cola and/or its products because of its Chi-Square 82.0 12.0 -9.0 36.0 -11. Alternate Hypothesis: The less market share is due to consumer preference for Coca Cola.0 -11. Hypothesis: 5 Null Hypothesis : The less market share is not due to consumer preference for Coca Cola.0 -17.0 148 .0 12.0 Residual 48.0 12.
96 19 1 3 1 Expected N 48.You consume Coca Cola and/or its products because of its Observed N Taste Brand Image Packaging Advertisement Price df Asymp.000) is less than significance level (.0%) have expected frequencies less than 5. CONCLUSION: The 5 hypothesis tests above prove that the following are the factors behind the lesser market share of Coca Cola in Pakistan: • • • • • Price Poor Advertising Competitors Non-availability Consumer Preference 149 .0 12. The alternate hypothesis is accepted that the less market share is due to consumer preference for Coca Cola. Interpretation: Since P-value (. The minimum expected cell frequency is 12.0 4 .000 a.0 -11.0. there is evidence against the null hypothesis and the null hypothesis is rejected which says that the less market share is not due to consumer preference for Coca Cola.0 12.0 -9.05).0 -17.0 -11. 0 cells (. Sig.0 36.0 12.0 Residual 48.
Another factor that adds to the lesser market share is the consumer preference. certain religious taboos were also prevalent in the past that are still existing somewhere in the society. Also. especially the rural areas. Pepsi trumps Coca Cola in the country. the advertising and promotional technique are far less as compared to its competitor Pepsi. If Coca Cola caters well to the above mentioned issues. In Pakistan. CHAPTER 14 150 . Pepsi is more famous and recognized in the urban and sub-urban areas of the country. Competition is the basic reason behind the less market share. its sales would boost a lot and its market share will automatically increase to the desired level. Not just this. There is lack of availability of Coca Cola in majority areas. Paying for a luxury becomes a heavy burden on them and so people avoid buying Coca Cola as much as their purchasing power keeps shrinking persistently. Coca Cola is easily accessed in only the metropolitan cities majorly.The high level of inflation and increasing economic crisis makes it impossible for the public to meet their everyday demand for basic necessities like food. people generally prefer more sweeter edible items and Pepsi and other colas are far sweeter than Coca Cola. shelter and clothing.
Suggestions & Recommend ations 151 .
• The marketing. The company must hire famous celebrities as brand ambassadors like Pepsi does. The Coca Cola marketing strategy must be focused more on the youth as the youth consumes soft drinks more than any other age. Coca Cola must launch its own Pakistani host website. So for this coca cola company should produce their product according to the local demand. It should also implement on a TV show to cater to new rising talent in the country and cater to the rural population as well. The company should focus on locally produced cans as the cans are currently imported and sold at high prices.• • • The Coca Cola Beverages Pakistan Limited should extend its brand portfolio in Pakistan by launching more brands as there are internationally. • • • • • 152 . • According to the survey. distribution and logistics teams should try to increase the availability of Coke in rural areas. The Coke Studio marketing approach was extremely successful and Coca Cola must continue with adopting music as its advertising tool. conducted by the international firm Pakistani people like little bit sweeter cola drink. Increased promotional and placement strategies need to be implemented upon to attract more rural population. More innovative and attractive discount schemes should be planned to boost up sales and attract more audience.
Appendix 153 .
REFERENCES • • • www.com Mr. Bilal Mustafa Marketing Manager. Shahzad Kaleem Brand Manager.com www. CCBPL 0321-4020420 154 .knowledgeinn. CCBPL 0301-8416959 • Mr.thecoca-colacompany.
000 and above 1.55.000 c) Rs. Daily b. During the questionnaire. 25.000 e) Rs.000 b) Rs. Twice a week 156 .000 – Rs.000 d) Rs. What is your monthly household income? a) Rs. 40. Your response to the questions will be very valuable and help me determine the issue more effectively. I sincerely apologize for the inconvenience of the matter I have caused. 70.The aim of this survey is to evaluate the causes behind the lower market share of Coca Cola as compared to its rival in Pakistan. 70. What is your gender? a) Male b) Female 1. How often do you consume soft drinks? a. if in any manner you feel offended. 55.000 – Rs. 25.000 – Rs. What is your age? a) 17 and less b) 18 – 25 c) 26 – 35 d) 36 – 45 e) 46 and above 1. 1.10.000 – Rs. 40. Once a week c.
Rs. 700 d. Which soft drink brand of Coca Cola do you prefer? a. Coca Cola Classic b. More than 3 times a week 1. Rs. Pepsi 1. Coca Cola b. Rs. 500 – Rs. Which of the following brands do you prefer? a. 100 – Rs. Rs. 300 b. Rs. 700 – Rs. Of the following brands. Coca Cola b. Pepsi c. 900 e. Fanta e. 300 – Rs. RC Cola d. 900 – more 1. Shandy Cola e. Gourmet Cola 1. Sprite d.d. 500 c. Amrat Cola f. Diet Coke c. which do you prefer more precisely? a. How much money do you spend on soft drinks monthly? a. Thrice a week e. Sprite 157 .
Neither agree nor disagree d. Neither satisfied nor dissatisfied d. The advertising of Coca Cola is very good. Dissatisfied e. Disagree e. To what extent are you satisfied with the prices of Coca Cola? a. Satisfied c.f. Fresher 1. Aquafina c. Which mineral water brand do you prefer? a. Nestle Fruita Vitals c. Strongly disagree 158 . Nestle d. Sprite 3G 1. Extremely satisfied b. Which juice brand do you prefer? a. Strongly agree b. Extremely dissatisfied 1. Country Cool e. Sufi e. Agree c. a. Kinley b. Gourmet water 1. Shezan All Pure d. Minute Maid b.
Disagree e. Coke Studio is a good marketing strategy of Coca Cola. Sprite . a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly disagree 159 . Strongly disagree 1. a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly disagree 1. The advertisements of Pepsi are more popular than Coca Cola. radio and internet. The advertising of Coca Cola is on print media. Agree c.1.University of Freshology is a good marketing strategy of Coca Cola. Neither agree nor disagree d. a. Strongly agree b. a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly disagree 1.
Strongly agree b. Advertisements e. Neither agree nor disagree d. College/university/school canteen b. Agree c. Taste b. Disagree 1. You consume Coca Cola and/or its products because of its: a. Strongly disagree e.1. a. Disagree e. Price 160 . Brand Image c. a. Packaging d. Coca cola and/or its products are more easily available than Pepsi. Super markets d. General stores c. Strongly disagree 1. Coca Cola and its products are available easily. Agree c. Where do you buy Coca Cola and its products most from? a. Strongly agree b. Neither agree nor disagree d. Restaurants 1.
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