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Ms. Mustari Alam Lecturer, School of Business Asian University of Bangladesh

Prepared byMd. Alamgir Kabir N-M Abdullah-Al-Mamun Mostofa Mahmud Sigma Islam Chowdury Mehzabin Alom Md. Hannan BBA-9th (Batch) Section-B Capmus-Dhanmondi Submit Date30th, July, 2003 200020170 200020618 200020165 200020230 200020351 200020207

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Subject
1. 2. 3. Acknowledgement Synopsis Introduction Coca-Cola Company The products of Coca-Cola Company in Bangladesh Marketing of Coca-Cola Company in Bangladesh

Page No.
4 5 6-7 6 6-7 8-24 8-11 8 9-11 11 11-13 14-24 16 17-18 18-21 21 22 22-24 24 25

4. 5. 6.

a.
b. c. d. e.

f.

Market segmentation by Coca-Cola Company Demographic Segmentation Operating variables Products retail price Distribution Cannels Integrated marketing communication model of Coca-Cola Company I. IMC planning model II. Review of Coca-Cola Company marketing plan III. Promotional program situational analysis IV. Analysis of the communication process of Coca-Cola Company

V.
VI.

VII.
7. Conclusion

Budget termination of Coca-Cola Company Developing the integrated marketing program Monitoring, Evaluating, and Control by Coca-Cola Company

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Our Consumer Behavior (BBA-2415) and International Marketing (BBA-4729) Course Teacher Ms. Mustari Alam give us an opportunity to choose a multi national Company, which is marketing in Bangladesh and analyze its marketing sight and we choose the Coca-Cola Company. This is a very important topic considering current world, because all the business operations goal is marketing its products and Coca-Cola Company is one of the leading company in the world. Road to prepare this assignment we know about the present marketing process of Coca-Cola Company in Bangladesh and it helps us to increase our knowledge about marketing situation in Bangladesh and also we know about Coca-Cola Company. We would like to giving thank our course teacher for giving us such an opportunity to make an assignment and also for his cooperation during doing the assignment. We also would like to giving thank to the persons who were really help us for collecting the Marketing relative data of Coca-Cola Company and answered to our various question. ByMd. Alamgir Kabir N-M Abdullah-Al-Mamun Mostofa Mahmud Sigma Islam Chowdury Mehzabin Alom Md. Hannan

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Here the marketing process of Coca-Cola Company is analyzes through a systematically process. Which focuses the following steps Market segmentation. Suitable environment for business. Differentiate marketing. Product positioning. Retail price of the products. Distribution channels. To review the marketing plan and objectives. Developing a promotional plan.

Here we develop this report by using two methods one is primary method and the other is secondary methodPrimary method: Primary method includes the data collection method, which we collect from the different books, magazines, and web-site. Secondary method: Secondary method includes the date collection method, which we collect from the direct interview form the Coca-Cola Companys marketing people.

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Coca-Cola Company:
The Coca-Cola Company exists to benefit and refresh everyone it touches. Founded in 1886, Coca-Cola Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce more than 300 beverage brands. Its corporate headquarters are in Atlanta, with local operations in over 200 countries around the world.

The products of Coca-Cola Company in Bangladesh: Coca-Cola


Coco-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. Created in Atlanta, Georgia, by Dr. John S. Permberton, Coco-Cola was first offered as a fountain by mixing Coco-Cola syrup with carbonated water. Coco-Cola was registered as a trademark in 1887 and by 1895 Coco-Cola was being sold in every state and territory in the United State. In 1899, the company began franchised bottling operations in the United State. Today, you can find Coco-Cola in virtually every part of the world. The Coco-Cola company has more than 300 in its portfolio.

Sprite
Introduced in 1960, Sprite is the worlds leading lemonlime flavored soft drink. Sprite is sold in more than 190 countries and ranks as the No.4 soft drink worldwide with a strong appeal to young people. Millions of people enjoy sprite because of its crisp, clean taste that really quenches your thirst. But Sprite also has an honest, straightforward attitude about things that sets it apart from other soft drink, Sprite encourages you to be true to who you are and to obey your thirst.
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Fanta
A favorite in Europe since the 1940s, Fanta was acquired by the Company in 1960. Fanta is the core flavor, representing about 70% of sale, but other citrus and fruit flavors have their own sol fun base. Consumers around the world, particular teens fondly associate Fanta with happiness and special times with friends and family. This positive imagery is driven by the brands fun, playful personality, which goes hand with the bright color (particularly orange fruit taste, and tingle carbonation. Fanta sells best in Brazil, Germany Spain, Japan, Italy and Argentina. Fanta Distribution was increased in the U.S. in 2001 with the turn of tour flavors: orange, strawberry, pineapple and grape. Orange, the biggest seller, is now available in most of the country.

Diet Coke
The most popular sugar-free soft drink in Americait's the one that started the fun with its clean, crisp, refreshing taste and stylish can. The original drink for people who want great taste without any of the calories, diet Coke is a classic.

Kinley
Introduced in India in August 2000, Kinley is purified bottled water. In a country where many people are concerned about reliable drinking water, Kenlay delivers a product that is safe and suitable for consumers and their families. Within ten months of its lunch, Kinley had emerged as Indias number two packaged water and is currently the number three Coca-Cola product in India. Recently it expands its market in Bangladesh. Especially popular among adults who seek a better quality of life and healthier lifestyle, Kinley is available in a range of packaging include 500 ml, 1 liter and 2 liter PET bottles, and 5 liter, 15 liter, 20 liter and 25 liter bulk jars for in-home consumption.

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Market segmentation by Coca-Cola Company:


In Bangladesh Coca-Cola Company segment its market by the following two steps, which are as follows1. Demographic segmentation, and 2. Operating segmentation.

Demographic Segmentation:
The Coca-Cola Companys demographic segmentation are forwarding through the following waysMetropolitan city

Districts

Thana

Figure: Market Segmentation by Coca-cola

Metropolitan city:
The Coca-Cola Companys first survey the metropolitan city in Bangladesh and found it would be the one of the suitable business ground in Bangladesh, for this reason they established their company at Mirpur-2, at Dhaka.

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District:
The Coca-Cola Company when they observe their marketing at the metropolitan is successful then thy include Districts in their market segmentation and so far the product of Coca-Cola Company is running successfully. But its success is not more than the metropolitan city.

Table-1: Consumer Segmentation.


Products name Target Consumer Young People Young People Young People Female and body conscious consumer Health conscious consumer Age 15-35 15-35 15-35 15-40

Thana:
When the Coca-Cola Company was success to expand their products at districts they decided they will go to the Thana level. In Thana level they began to marketing their product its result is satisfied and so far it is continued.

Coca-cola Sprite Fanta Diet Coke

Operating variables:

Kenly Mineral water

All ages

Coca-Cola is a soft drinks and it is not necessary for every day life and Bangladesh is a very poor country, most of the people are very poor for this reason Coca-Cola is considered as a luxury products. So, the companys target consumer is the people who are able to buy and drink it. Generally these groups of people are middle class to the upper class. Here the lower class is not target consumer. Again Coca-Cola Company segment the consumer considering the people interests (e.g. taste, age, sex, body conscious, health conscious, etc.).

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Suitable environment for Coca-Cola:


The business season of all kinds of soft drinks is summer when the hot is every where. In this time people are really thirsty and they want to drink some think that makes them cool and fresh. Coca-Cola is one of the markets leading products which make people cold and fresh. But other season people choose Coca-Cola in any type of occasion like any types of party, or festival. Spring is the main dull season for Coca-Cola.

Differentiate Marketing:
Coca-Cola Company differentiates their products on the focus of their consumer demand. Coca-Cola : produces for the Young people both for Male and Female. Sprite Diet Coke Fanta : produces for the Young people (M &F). : Produces for body conscious people, especially for Female. : produces for Female, children, and Young people.

Kenly : Produces for all the people who are conscious about their body.

Table-2: Target Customer of Coca-Cola

Company

Here the Coca-Cola Company differentiates its products on the focus of their consumers demand but it can be mix-up. Their marketing plan implement considering differentiate marketing.

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Product positioning:
Coca-Cola Company publicity of their products to the customer as it makes them fresh and cool and it established on the customers mind. For example one of their publicity messages isCool means Coca-cola. So, when a consumer wants to drink a soft drink for their refresh and making himself as a cool, they first think about Coca-Cola.

Product Pricing:
Product Name CocaCola ml/liter 250 ml 1 liter 1.5 liter Can-250 ml 250 ml 1 liter Can-250 ml 250 ml 1 liter Can-250 ml Can-250 ml Price Tk. 10 Tk. 30 Tk. 40 Tk. 15 Tk. 10 Tk. 30 Tk. 15 Tk. 10 Tk. 30 Tk. 15 Tk. 15

Retail Price of Coca-Cola in Bangladesh shows in the table which are as below-

Sprite

Distribution Channels:

For more than hundred a century, Coca-Cola Company has Fanta dominated the worlds markets for beverage. Its familiar Coca-Cola, Diet Sprite, Fanta, Diet Coke, Sunfil, Coke Kenly, and many more are a common sight at any location in the world. Many factors contribute to Coca-Cola Companys enduring success high-quality products, flexible and efficient manufacturing, and steady stream of innovative new products, and a lean organization that is responsive to customer needs. The biggest reason for Coca-Cola Companys success has been their system of distribution and product support and the close customer relationship its fosters. The backbone of that system is their uncountable dealers around the world who sell their products.

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Coca-Cola Companys dealers provide a wide range of important services to customers. Fit summarizes: After the product leaves their door, the dealers take over. They are the ones on the frontline. Theyre the ones who live with the product for its life-time. Theyre ones customer see. All though they offer financing and insurance, they arrange those deals for customers. Theyre out there training a customers operations. The dealer create the image of a company that doesnt just stand behind its products but with its products, any where in the world. Their dealers are the reason that their motto-Buy the raw materials, Get the company-is not an empty slogan. Picture: Distribution of Coca-Cola Companys dealers build strong customer relationships in the communities. Their independent dealer in Bangladesh knows so much more about the requirements of customers in this location than a huge corporation like Coca-Cola could. Competitors often bypass their dealers and sell directly to customers to cut costs or make more profits for themselves. However, Coca-Cola Company wouldnt think of going around its dealers. The knowledge of the local market and the close relations with customers that their dealers provide are worth every poisa. Theyd rather cut off their right arm than sell directly to customers and bypass their dealers. Coca-Cola Company and its dealers work in close harmony to find better ways to bring value to customer. Thy genuinely treat their system and theirs as one. The entire system is linked by a single worldwide computer network. For example working at their desktop computers, Coca-Cola Company managers can check to see how many bottles in the country are waiting for delivery. Closely linked dealers play a vital role in almost every aspect of Coca-Cola Companys operations, from product design and delivery, to product service and support, to market intelligence and customer feedback. The close working relationship between Coca-Cola Company and its dealers comes down to more than just formal contracts and business agreements.

Coca-Cola

Dealer profitability: When times are good, Coca-Cola Company shares the bounty with its dealers rather than trying to grab all the
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riches for itself. When times are bad, Coca-Cola Company protects its dealers. As a result Coca-Cola Company emerged with its distribution system intact and its competitive position stronger than ever. Extraordinary dealer support: Nowhere is this support more apparent than in the companys beverage delivery system, the faster and most reliable in the industry. Communications: Coca-Cola Company communicates with its dealers-fully, frequently, and honestly. There are no secrets (except Coca-Colas formula) between them. They have the financial statements and key operating data of every dealer in the country. In addition, virtually all Coca-Cola Company and dealer employees have real-time access to continually updated databases of service information, sales trends and forecasts, customer satisfaction surveys, and other critical data, virtually everyone from the youngest marketing executive has direct contact with somebody in their dealer. Coca-Cola Company does all it can to ensure that its dealerships are run well. It closely monitors each dealerships sales market position, service capability, financial situation, and other performance measures. It genuinely wants each dealer to succeed, and when it sees a problem, it jumps in to help. As a result, Coca-Cola Company dealerships, many of which are family business, tend to be stable and profitable. Personal relationship: In addition to more formal business ties, CocaCola Company forms close personal ties with its dealers in a kind of family relationship.

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Here we analysis the ssCoca-Colas Marketing plan from the view point of IMC planning model.

Review of marketing plan


Examine overall marketing plan and objectives Role of advertising and promotions Competitive analysis Assess environmental influences

Analysis of Promotional Program Situation


Internal Analysis External Analysis Promotional department organization Consumer behavior analysis Firms ability to implement promotional program Market segment and target Agency evaluation and selection market Review of previous program result Marketing position

Analysis of Communication Process


Analyze receivers response processes Analyze source, messages, channel factors Establish communications goals and objectives

Budget Determination
Set tentative marketing communications budget Allocate tentative budget

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Develop Integrated Marketing Communication Program


Advertising Set advertising object Determine advertising budget Develop advertising message Develop advertising media strategy Direct marketing Set direct marketing objectives Determine direct marketing budget Develop direct marketing message Develop direct marketing media strategy Interactive/Internet marketing Set interactive/Internet marketing objectives Determine interactive/Internet marketing budget Develop interactive/Internet message Develop interactive/Internet media strategy Sales promotion Set sales promotion objectives Determine sales promotion budget Determine sales promotion tools and develop message Develop sales promotion media strategy Public relations/publicity Set PR/publicity objectives Determine PR/publicity budget Develop PR/publicity message Develop PR/publicity strategy Personal selling Set personal selling and sales objectives Determine personal selling and sales budget Develop sales message Develop selling roles and responsibilities

Integrate and Implement Marketing Communications Strategies


Integrate promotional mix strategies Create and produce ads Purchase media time, space, etc. Design and implement direct marketing programs Design and distribute sales promotion materials Design and implement public relations/publicity programs Design and implement interactive/Internet marketing programs

Monitor, Evaluate, and Control Intergrated Marketing Communications Program


Evaluate promotional program results/effectiveness Take measures to control and adjust promotional strategies

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>>>>> Review of Marketing Plan

Analysis of promotional program situation Analysis of communications process Budget determination

Develop marketing communication program

Advertising

Direct Marketing

Interactive/Int ernet Marketing

Sales promotion

PR/ publicity

Personal selling

Advertising Objectives

Direct Marketing objectives

Interactive/Inter net marketing objectives

Sales promotion objectives

PR/ publicity objectives

Personal selling objectives

Advertising strategy

Direct marketing strategy

Interactive/Inter net marketing strategy

Sales promotion strategy

PR /publicity strategy

Personal selling strategy

Advertising message and media strategy and tactics

Direct marketing and media strategy and tactics

Interactive/ Internet message and media strategy and tactics

Sales promotions message and media strategy and tactics

PR/publicity relations message and media strategy and tactics

Sales message strategy and sales tactics

Integrate and implement marketing communication strategies

Monitor, evaluate, and control integrated marketing communication program


Figure-1: An Integrated Marketing Communication Planning Model

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The first in IMC planning process is to review the marketing plan and objectives. Before developing a promotional plan, CocaCola Company understand where the company (or brand) has been, its current position in the market, where it intends to go, and how it plans to get there. Most of this information Coca-Cola Company contained in the marketing plan, a written document that describes the overall marketing strategy and programs developed for an organization, a particular product line, or a brand. Marketing plans of Coca-Cola Company generally included five basic elements:
1. Market competitions: There are several brands of beverage in the

Bangladeshi market, such as-Pepsi, Rc-Cola, Pran, Virgin, Euro-Cola, etc. Ultimately, Coca-Cola Company faced the strong competitions and sometimes the competitors sells come near to them. For example- Pepsi and Rc-Cola is the main competitors for Coca-Cola in the Bangladeshi market. Environmental Factor: Most of the time of a year in Bangladesh is hot. For this reason the business of the soft drink is suitable in Bangladesh. Moreover, the government of Bangladesh provides full support to established industry and invites the foreign investment and also gives extra ordinary facilities for the investor. Coca-Cola Company takes the advantages and expands its business all over the country.
2. Marketing objective: The marketing objective of Coca-Cola Company

is operate their business and making a leading position in beverage world in Bangladesh and also generating profit by provides consumer satisfaction. Measuring performance: Coca-Cola Company measure performance by regular market survey and monitoring their products performance through the dealers information about products and directly concerns with the consumers.
3. Marketing Strategy and Program: Coca-Cola Companys target

market is mainly the young people who really respond their offer.
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Coca-Cola Company offers different types of beverage for its target consumer and they focus on the consumers favorite taste, personality, their income and many more. Then they produce beverage with the consideration of consumers favorite taste, personality, income, etc.
4. Implementing Marketing Strategy: After market survey Coca-Cola

Company produces the product that the customer wants. For exampleCoca-Cola Company produce Diet-Coke for body conscious consumers. Specific task to be performed and responsibilities: After producing a new product Coca-Cola Company collect information from the route level of market and if they receive any type of complain from the consumer then they take initiative steps to solve this complain.
5.

Monitoring performance: Coca-Cola Company monitors the products performance by survey. This survey process includes the collecting consumers opinion about their products from the dealer, the retailer and directly from the customer.

Internal Analysis of Coca-Cola Company:


The promotional department of Coca-Cola Company working successfully. Sometimes, Coca-Cola Company offers to the customer something bonus for the customer to influence them to buy Coca-Cola, something bonus for the dealers/retailers to influence them to sell its products effectively and sometime offers something new to the customers. Sometimes they offer to the customers as bonuses are as followsBuy to two bottles of 1 litters Coca-Cola (Coca-Cola, Sprite, Fanta) and receive Free! one Coca-Cola glasses. Drink Coca-Cola (Coca-Cola, Sprite, Fanta) and see the inside the cap of the its bottle and win Car, Motorcycle, Cash Money, Gold, Cricket bat, yoyo, Cricket ball, Cricket Shirts, and many more! Buy 1.5 litter Coca-Cola and get 25% extra Coca-Cola!

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Sometimes they offer to the dealer and retailers as bonus are as followsSell one case Coca-Cola, Sprite, Fanta and get free 3 bottles of Coca-Cola, Sprite, Fanta. Sell only Coca-Cola, Sprite, Fanta and get a free Coca-Cola Refrigerator! All of the year Coca-Cola Company gives different types facilities to its dealers and retailer.

Coca-Cola Companys failure promotional program:


In 1985, in what has now become an all time classic marketing tale, the Coca-Cola Company made a major marketing blunder. After 99 successful years, it set aside its longstanding rule Dont mess with Mother Coke-and dropped its original formula Coke! In its place came New Coke with a sweeter, smoother taste. At first, amid the introductory flurry of advertising and publicity, New Coke sold well. But sales soon went flat, as a stunned public reacted. Coke began receiving sacks of mail and more than 1,500 phone calls each day from angry consumers. A group called Old Cola Drinkers staged protests, handed out T-shirts, and threatened a class-action suit unless Coca-Cola brought back the old formula. After only three months, the Coca-Cola Company brought old Coke back. Now called Coke Classic.

External Analysis:
The external analysis of Coca-Cola Company focuses on factors such as characteristics of the companys customer, market segments, positioning strategies, and competitors. An important part of Coca-Cola Companys external analysis is a detailed consideration of customers characteristics and buying patterns, their decision processes, and factors influencing their purchase decisions. Coca-Cola Company also gives concentration on consumers perceptions and attitudes, lifestyle, and criteria for marking purchase decisions.

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Customers Characteristics:
We can show Coca-Cola Companys customers characteristics by the following Table
The customers who is young and like strong taste, these type of customer is suitable for Coca-Cola Companys Coke. The customers who are young like little clear, crisp, refreshing taste, these type of customer is suitable for Sprite. The customers who young like sweaty orange taste, these type of customer is suitable for Coca-Cola Companys Fanta.. The customers who is young, especially female and like conscious about their body, these type of customer is suitable for Coca-Cola Companys Diet-Coke. All the customers who are conscious about their health, this type of customer is suitable for Coca-Cola Companys Kenly Mineral Water.

Market Segmentation:
We have already discus market segmentation by Coca-Cola Company (page#8-11).

Buying Pattern:
The consumers of Coca-Cola Company buy their products, when they are working out side their home, on an occasion like as birthday party, New Year festival, and any other celebrating moment. The products of Coca-Cola Company are selling more in summer, when the weather is so hot and the customer is thirsty. An advertisement of Coca-Cola Company is when a women carrying 1 litter bottle of Coca-Cola, some people asks her, Does party today at your home?

Consumers perception and attitude:


When the consumers are feel they are thirsty and tired, then they wanted to drink something like Coca-Cola.

Consumers life style:


Consumers purchase decision differs for their different life style. This life style influences for the local culture, region, and norms. In Bangladesh Most of the People are Muslims, so, the Coca-Cola Company produce and marketing their products with the consideration of the peoples emotion for their religion.

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Consumers Criteria:
The consumers in Bangladesh looking for a quality product and they are very much like the good test, and when they buy a product they think about these think. Coca-Cola Company produces their beverage with the consideration of consumers criteria.

Receivers response processes:


The Coca-Cola Company influence the customer through the attractive advertisement, these advertisement they complete through the Television, Radio, Posters, neon sigh advertisement, News paper advertisement. In the advertisement they try to give a message to the consumer about their product, such as its quality, uses, and benefits. The consumer influence CocaCola Companys advertisement and buy the CocaCola. The company collects the information about Customers response process by analyzing market survey and reports from the dealer or retailers.

Picture: A women who is a model of Coca-Cola.

Communication Source with the consumer, message, channels:


Coca-Cola Company communicates with the consumers through advertisement, direct market survey, and through the dealers or retailers. Coca-Cola Company communicates with the consumers through advertisement, and through advertisement the consumers receives various kinds of message from the Coca-Cola Company. Such messages are as

Cool means, Coca-Cola. Life taste good -Coca-Cola. Its test as if, it recovers your thirst-Sprite. For its test, you can loose your character-Sprite. Express your emotion from your heart-Fanta.

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Budget termination of Coca-Cola for the communication is approximately 20% of its production cost. They didnt provide us detailed about their communication budget, because of their business secret.

Coca-Cola Company develops the IMC program is generally the most involved and detailed step of the promotional planning process. At this stage of the planning process, decisions have to be made regarding the role and importance of each element and their coordination with one another. Each promotional mix element has its own set of objectives and a budget and strategy for meeting the customer. The advertising program of Coca-Cola Company set its own objectives, usually involving the communication of some message or appeal to a target audience. Like as

Cool means, Coca-Cola. Life taste good-Coca-Cola. Its test as if, it recovers your thirst-Sprite. For its test, you can loose your character-Sprite. Express your emotion from your heart-Fanta.

Coca-Cola Company providing a budget to the advertising manager and the agency with some idea of how much money is available for developing the ad campaign and purchasing media to disseminate the ad message. Coca-Cola Company development, often referred to as creative strategy, involves determining the basic appeal and message the Coca-Cola Company wishes to convey to the target audience. Coca-Cola Companys media strategy involves determining communication channels used to deliver the
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advertising message to the target audience. Coca-Cola Company used the following types of media Television Radio News papers Magazines Bill boards Posters Cultural campaigning Environmental campaigning And specific media such as Particular magazines Particular TV programs
A program of dance competitions that was Sponsored by Coca-Cola.

They use sports man or sports events for their advertisement as a model. Such fields are as Foot ball Cricket Tennis Athletics Etc. When Coca-Cola Company sees the message and media strategies have been determined, then they implement them. Coca-Cola Company hires advertising agencies to plan and produce their Picture: Marathon messages and to evaluate and purchase the media sponsored by Coca-Cola that carries their ads. Coca-Cola Companys hires agencies work very closely with their clients as they develop the ads and select media, because it is the advertiser and that ultimately approves (and pays for) the creative work and media plan.

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A similar process takes place by Coca-Cola Company for the other elements of the IMC program as objectives are set, an overall strategy is developed, message and media strategies are determine, and steps are taken to implement them. While the Coca-Cola Companys advertising agencies used to perform some of the other IMC functions, they also hire other communication specialists such as direct marketing and interactive and /or sales promotion agencies, as well as promotion agencies, as well as public relations firms.

The final stage of the promotional planning process of Coca-Cola Company is monitoring, evaluation, and controlling the promotional program. It is important to determine how well the promotional program is meeting communications objectives and helping Coca-Cola Company accomplish its overall marketing goals and objectives. If Coca-Cola Company found any problem from they take the initiative action as soon as possible and to control or remove the problems.

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Coca-Cola Company is one of best beverage company in the world and its unbelievable Success come for its strong marketing process which includes the marketing survey, communications with the dealers, retailers, and the customers and take positive action it arise any kind of problems, and many more. If any company analyze the Coca-Cola Companys marketing plan and they established the process in their own field, it can say that company will be successful when it face the market or the consumers.

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