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Marketing Plan Of Coca-Cola

Presented by: Kamran Rahim Nisar Khan Abdul Ali Farman Kasi Presented to: Mr.Asad

Dated: ___30-12-12__


Reference to visit of Students (MBA Evening 2 nd Semester 2012) in a group on acquiring information regarding Coca Cola History Organization Policies Microenvironment of Company Macro environment of Company Coca Cola Products Marketing Policies Marketing Strategies Marketing Planning

On behalf of Coca Cola (Balochistan Region), shared publicly available information and material regarding mentioned area in support of their project. I wish them best of luck in their future endeavors in education.



First and foremost we thank Allah who blessed us with the knowledge, and understanding to do this project within our limited knowledge. We during working on our project discovered that our lives our made easier by the work of some unknown individuals and better every day. We believe it's necessary to acknowledge all of these unknown persons; but it is also important to appreciate and acknowledge those people who have molded and shaped our lives. We our grateful to our teacher and mentor Mr.Asad for his mentoring and guidance and support. We were very lucky to work with a talented and encouraging lecturer like him. We would like to acknowledge the Sales Manager Coca Cola Quetta Division, Mr. Khan Zaman, who gave us access to annual reports of coca-cola ,and our group which encouraged to adopt this topic.


1) Executive Summary of project

Page No.

2) Introduction and history of coca cola

3) Situation Analysis of market 14 a) Microenvironment

i) Company ii) Supplier 15 iii) Marketing Intermediaries 16 iv) Competitors 17 v) Customer 18


b) Macro environment i) Demographic factor 18

ii) Natural factor 18 iii) Technological factor 19 iv) Political factor 19 v) Cultural factor vi) Public 4) Market Summary i) Market Growth ii) Market Demographics iii) Market Trends iv) Market Needs and demands 23 20 21 22 20 20

v) Market/customer Behavior

p-t-o 5) Marketing Strategy(4 Ps) Marketing Mix 23 a) Product 24

b) Promotion c) Place d) Price 6) Project in terms of Comparing Theory & Practice

25 26 26 27

7) References & Appendixes


Executive Summary
We the students of MBA in Balochistan University Of Management Sciences and Information Technology have designed this marketing plan on Coca cola . It consists of SWOT analysis and market research, closely inspecting the soft drink i.e. carbonated drinks and energy drinks industry and future for Coca Cola in consumer as well as business market. After methodical inspection We have Individually examined the business environment both internal and external and customer trends and researched the industry in general environment, considering swot analysis all the external strengths, weaknesses threats and opportunities which coca cola has to attend to excel.

Mission Statement

Our mission statement is to maximize shareowner equity value and business over time

Our mission can only be achieved if we value all of our customers which include our bottlers, and communities. The Coca Cola Company mission consists of following main points:

1. Our ability to achieve better things excels because of the demands by our consumers. 2. The Brand name of Coca Cola is the heart of our company. 3. We want to be the number 1 sellers across the globe. 4. We think locally as well as internationally. Whatever we do is because of the urge of our long lasting mission:
To bring some refreshment to the world... To create time of hopefulness. Creating value and making some distinction.1

Values of coca cola We are guided by our stated values in our mission and as single member as well:

Leadership: we have the gallantry to mold or to create a better living place all people

Integrity: We want to be real in what we do

Type/drinks Manufacture company Founding scientist Place of origin Year of introduction Countries served Flavors Personnel employee Official Website

Soft Drink carbonated (Cola),energy drink Coca- Cola Company bevereges John S. Pemberton United States 1886 About 200 countries Cola, ,sprite, fanta, lemon sprite, kinley water 95000

Introduction Coca-cola began its operations in 1886 when Doctor John Pemberton began production of its syrup in drinks but branding and bottling started in 1899 after rights were secured Benjamin F. Thomas and Joseph B. Whitehead of selling and branding coca-cola.

Pakistans History of coke Coca Cola started working in Pakistan since 1953.Coca Cola began its operations with the following brands:

Coke (Regular/Diet). Sprite/lemon flavor. Fanta Minute maid juices.

Coca Cola company beverages runs its operation through four height bottlers owned by CCBPL.

Coca Cola plants in Pakistan: Coca cola have its plants in following cities of Pakistan: Hyderabad. Karachi. Gujranwala. Sialkot. RahimYar Khan. Multan. Lahore.

Remaining two plants are in Peshawar and Rawalpindi which were owned at the time of independence. It serves around 70,000 customers and has 1800 employees. The investment done from last two years is of $130 million approximately and from last 51 years coke is serving in Pakistan. Today coca-cola is being operated under the administration and regulation of the Coca-Cola International located in the state of Atlanta Georgia, USA having almost 10 plants all over in Pakistan .


Organizational hierarchy of coca-cola marketing section is as below :



Coca COLA have various brand names under its belt, which are used all over the world and Pakistan. This company mainly deals in energy drinks plus carbonated drinks but also In other drinks like lemon flavored tea etc . before launching and advertising its product, the marketers of the company considers the culture and traditions of the country.




Sprite/lemon flavour Fanta/ mirinda

Diet Coke

Pulpy orange/Minute Maid Juices Kinley Water

Board of Directors (As of 2011-12)



Departmentalization in Coca Cola There are different departments and institutions within an organization that helps in the achievement of organizations goal. Coca cola is a multi-national company having large number of departments which are also huge in their sizes that operates multi-national. Coke has its own departments and headquarters in almost every country. The five strategic business units(SBUs) of coca cola are as follows: North America. Africa. Asia. Europe. Eurasia and Middle East. Latin America.

Six important departments within coca cola include marketing, finance sales R&D administration and packaging departments: Ongoing Projects In 2001 Pakistan suffered from the worst droughts of its history, The Coca-Cola company initiated a programmed a project for famine stricken areas. C o c a - C o l a b e v e r a g e s in Pakistan started a Hajj plan which is voluntary and which sends one employee from each plant through selection with a draw at the Companys expense. coca cola is also investing in R&D to introduce new flavors in Pakistan.


SWOT Analysis:

Strengths Internal environme nt


- its Popular Worldwide -Word of mouth of coca cola -well known brand -branding obvious and easily recognizable -A lot of available -customer extremely loyal its products is excepted by all -lack of consumption and popularity of some Coca flavoured tea, cherry areflavoured cola -Most unknown and rarely -result of no advertising on health issues related to its drinks

financingColas brands ex: lemon

-International Trade ofseen

Threats External environme nt

-increasing healthamong people -legal issues tough from (Pepsi)

-many pursue -advertisements on its less successful and

consciousness attitude famous brands to adopt and

competitionpopular flavour products ex: coke cherry


Situation Analysis Coca Cola beverages has the biggest percentage market share in the soft drink industry. Coca Cola controls about 60% of the entire world market. In Asia, Japan has the highest Percentage of consumption of Coca Cola products. Among other Asian countries Pakistan, Sri Lanka, and south Asian countries like India and Bangladesh where the consumption level of soft drinks is increasing. So the company has specially targeted these areas and is trying to develop different strategies to increase the growth of the sales of Coca Cola. The satisfied customer of Coca Cola in Asia is in billions. Due to bringing new innovation and new beverages, Coca Cola has achieved increase in sales growth.

Microenvironment: Coca-Cola's microenvironment consists of the following: Company: The difference the Coca-Cola make over other companies is its employees, who are passionate and driven individuals. Suppliers: The Coca-Cola gives importance to supplier guiding principles, diversity, and expectations. Coca-Cola always emphasize that its suppliers maintain the best quality of raw materials. Suppliers have to undergo training, and also does routine checks and inspections to check the quality. Glass bottles of all sizes that are used in bottling are provided by Balochistan Glass Limited; Packages Limited design Labels whereas pet bottles with the labels by Plato Bag Limited; Quality sugar in hygienic bottles is provided by Saharan Mills Limited;

Machineries such as visicooler and chest cooler are provided by Vanillin Intercool Limited;

Industrial refrigeration solutions, dispensing equipments, capping machines and complete bottle line are provided by Dynamic Equipment and Controls. Marketing Intermediaries: Retailers are the partners in business, so Coca-Cola works directly with its retailers. Coke always tries to solve the problems of its intermediaries, and also offers training for improving consumer satisfaction and to maximize the sell. Competitors: The preferred objective of the CocaCola is to deliver a product to its end consumers that is better than other competitors. CocaCola has created brand awareness. Coca Cola is not only successful in its advertising, but also constantly developing new products for its customers. Pepsi-Cola is the major competitor of Coca Cola. Pepsi-Cola is currently working in more than 190 countries. They have almost all product portfolio competes with Coca-Cola. In order to maximize sales CocaCola has provided coolers and freezers to the retailers. In last years when Pepsi has been dominating the market, CocaCola has made an aggressive comeback by effective advertising, Brand differentiation, and Brand Initiatives. CocaCola occupied a very dominating position in the market since 1950, nut with the passage of time Pepsi had risen up into the competition by targeting young customers, discounts by the distribution outlets, competing on package size and advertising.

The Coca-Cola Company is competing with companies, like PepsiCo, AMRAT Cola, RC Cola, but also with others Nestle, juices and even tea in Pakistan. Consumer needs and tastes are changing with the passage of time. Concerns with obesity focus on health and nutrition, many consumers are changing their products choices and letting go of brands such as coca cola, energy drinks Tea products, and bottled water have become more popular as opposed to carbonated soft drinks. They are threats to the Coca-Cola brand and its customers. The Coca-Cola Company must continue aggressive efforts in community investment, responsible marketing, and product development in sales of juice, teas, water and ready-to-drink coffees. This shows that Coca-Cola is aware of their consumer's interests.

Customers: Millions of consumers use CocaCola daily. It is very important to maintain satisfaction level with consumers. The most important role in Coca Colas progress is customer satisfaction. Therefore the company increases the level of satisfaction and specially focuses on the consumer satisfaction. Coca-Cola has taken many steps to stay touch to the consumers and keeps its Brand loyalty. The Company also maintains the data base of the customers, so that it doesnt want to lose its customers. CocaCola retained old customers and getting new potential customers. Coke also dedicates a page on their website for customers to directly know the problems of the customers, and also bring new ways to maintains customer satisfaction and great service. I. Customer Market: Consumer market consists of individuals and households where demand of coke is highest. Both individuals and households purchases coke for their daily consumption.


Reseller Market: Reseller market is the market that purchases coke from company and then sells it further to earn profits. The best example is of McDonalds that buys coke from company and sells it with its every deal. According to a survey, 500-700 liters of coke per day is sold by McDonald franchises in Lahore.


International Market: Coke is a very famous brand across the globe and each country has its own production houses of coke. While, international market represents buyers who are in other countries. Pakistan also have manufacturing plants in different cities like Hyderabad, Karachi, Sialkot, Gujranwala, Faislabad, Rahimyar Khan, Multan and Lahore and they are


manufacturing coke for local consumption. In the case of Pakistan there are no international buyers.

Publics: Coca-Cola updated its financial information on website for investors. Coke is interested in creating value for consumers. Coke has also provided a section on its website to respond to the public. Speeches, company statements and various press releases are available for the public. Macro environment: Coca-Cola's macro environment includes the following . Demographics Forces: The changes in individuals lead to different taste preferences. The constantly changing factors must be constantly monitored to deliver the satisfaction to the consumers. Different bottles are designed just to target different customers some of them are as follows: 1. SSRB (Standard size returnable bottle) designed for youngsters, students & for lower class. 2. LRB (Large size returnable bottle) for households. 3. NRD (Non-returnable/Disposable bottle) designed for those who cant wait for returning a bottle. So, they buy disposable bottle and enjoy drinking coke during their work as well. 4. PET (Plastic bottle 500ml) designed when coke came to know that demand for 250ml is increased and people like to have two bottles of 250ml at a time so 500 ml was introduced. 5. PET(Plastic bottle 1.5 liter) CANS (tin pack 330 ml) for upper class as they want to be different in all perspectives. For example, the potential customers of coke are youngsters and the company target customers from the middle class to the upper class. Economic Forces:

When a country is in recession it means its economy is going down and Inflation, cost of living expenses, higher unemployment is going up. Consumers are experiencing lower disposable income and purchasing power. The consumers buy only those products that they can afford. For example, our country is in economic crisis. Coca-Cola must watching consumer spending behavior and provides a cheaper alternative cola. Inflation in our country forced coca cola to increase its prices and on the other hand competitors are always ready to take advantage thus, increase in prices badly affects coke market. Coke also generates employment opportunities and gets high revenues from Pakistan.

Natural Forces: In natural disaster, e.g. earthquake suppliers have shortages in the supply that will affect the sales of the company. Coca-Cola is constantly monitoring natural forces on planet Earth. Coca-Cola has built the world's largest recycling plant of plastic bottle. Coca-Cola has developed energy saving cold drink equipment. Coca-Cola is finding new ways to help our natural environment. Weather plays a major role in effecting sales of coke. The consumption of coke in summers is 60% and in winters and in winter it reduces to 40%. Technological Forces: Technology has been a major player to help a business remains profitable. The Coca-Cola Company has invested in technological research to find new ways to be more efficient. Coke is also using all latest technologies not only in production process but also for their customers i.e. coke dispensers that provide fresh chilled coke to its customers thus, coke is known as thanda matlub coca cola. Political Forces: Coca-Cola abides by laws and regulations set by the government. New legislation or regulation of food and beverage products could pose a threat to the Coca-Cola Company. Many laws have already been passed; new laws could decrease the profit margin and create more overhead expenses. Coca-Cola has developed products for health-conscious consumer .e.g. Coca-Cola Zero, sports drinks, and bottled water.

Pakistan has an unstable political and legal environment. Foreign investors are afraid to invest here. Coca-Cola has continued expanding their area of operation in Pakistan. This kind of investment is very important for the economy of Pakistan. Because of no change in food laws, coke is not highly affected. Safety of environment is also considered by coke thus the bottles are recyclable. Political disability also has no impact on coke market.

Rumors try to damage coke reputation by saying that a portion of profits from coke are for Jewish lobby.

Cultural Forces: Coca-Cola Plants are throughout the world, Coke is very sensitive to the cultural needs of its employees and consumers. Coca-Cola has been successful in global marketing, and it is because of product variation and adaptation to different environments. Coca-Cola has also collect many awards due to adaptation in the cultures. In Pakistan due to the Islamic cultural values, people use products made from Halal ingredients. Coca-Cola has to be vigilant and careful to use only the ingredients acceptable in an Islamic country in order to avoid controversies and bad publicity. 2


Market Summary

a) Market Growth: Annual Report of 2005 showed that the company beverage product sells reached to more than 200 countries. It is mentioned that greater than fifty billion servings of product are served in whole world each day owned by Coca-Cola account for balance of 1.5 billion. In 2007 yearly Report showed that Coca-Colas distribution of gallon sales around the world are as follows:

Sales in US is 37% Sales in Brazil, Japan, Mexico, China is 43% Remaining 20% sales are made in the rest of the world

b) Market Demographics: Cokes has only 36% share in Pakistan. POPULATION: Approximate CHILDREN population: 176,242,949 (July, 2009 estimated) (65,607,612)

Approximate ADULTS population: CHILDREN EQUITY share: ADULT EQUITY share: TOTAL TARGET MARKET: Coke focuses both male and female genders of Pakistan.3 C) Psychographics Segmentation & Market Trends:

(110,680,572) (14,643,619) (27,802,960) 42,446,579

The coca-cola brand products are segmented on basis of different income level group of people by packaging, and targeting its customer group. Such as for individuals having a low purchasing power or income, for them coke has small mm returnable bottle with deposits, for medium upper class people Coke has non returnable bottle (NRT) and coke offers Coke tin packaging to those buyers who have a higher income level. Coke Company has a distinct promotion strategy, the Coke Company often introduces rewards on the bottle cap or cover of bottle. So they segment the people who sought benefit. Coke always initiates activities, when ever people get together for any particular occasion of togetherness to enjoy with the brand. Research has shown that it is common among the youth to get together on particular occasions with friends and family to enjoy themselves,on such occasions they tend to consume large quantities of coke. For the youth of Pakistani and for events where there is socializing with friends or with family is an important part of their lives. Cokes brand is personally all about family and friends getting together . When, Coca Cola Intl is always looking for to promote itself through some sponsoring events. Therefore it frequently sponsors basant festival. It is also associated with festivals such as cocacola food mela coca-cola ramzan offering. &lang=en_us&output=json


c) Market Needs & wants: To serve their product chilled is the marketing idea of coke, so coke express that the target is the hotter regions in the world, specially the Middle East to increase the product sell in season of summer. The needs of market vary with respect to time so Coke Intl. introduces the products regarding time e.g. Coke Cherry etc. d) Market characteristic Behavior: Since always Pakistani people behavior towards beverages has been on WHATS the most COLD GETS SOLD. Pakistani people normally has prime focus on beverages that is the most cold whether it is Pepsi,Coke or other brands. In Pakistan the behavior of market has not changed somewhat as people are not that much considerate and conscious about their health but with the passage of time they have become more aware and concerned about obesity, and thus have shown distanced behavior towards beverages, therefore Coca Cola Intl. has provided them a perfect alternative and solution i.e. to provide them with the exact required product. Yes, we are discussing the Diet Coke; to fulfill the needs of a growing market. e) Market Growth rate and share: Around the globe Coca-Cola has got the most important and popular products brand and market and gets 60% of world market percentage share. In Pakistan Coca cola has the most consumers and market and is holding 37% of the share in local market and with increasing market share each year.

Coca Cola Company uses ANSOFF approach to identify its expansion.


In Pakistan Coca Cola is trying to penetrate market by selling in B2B markets, which are multinational organizations such as fast food restaurants ex: Chicks, AFC etc are local market examples. McDonalds, Subway, Dunkin Donuts & many other which also keeps local franchises into focus like Fri

The process of Market Development is to explore new markets for the existing product. Many new flavors of coca cola brand are now introduced in the market and being sold and distributed in Pakistan. Coca cola can develop new markets if they introduce new flavors like cherry cola and lemon tea too in Pakistan.

Marketing Mix
This is a strategy applied by professionals in marketing field. It is a vital tool when it comes to decide that what is the product/brand going to offer, Marketing Mix comprises of 4Ps: price, product, promotion, and placement; however in service marketing these 4ps have been extended from four to 7 or 8Ps to in order to determine the different nature of services being provided but we are providing products rather than offering services so in context of four Ps following is our elaboration of our products.

a) Product: Coca Cola like other businesses think about its products on three different levels. In the core product level, the different features that deliver it, is known as the actual product. The high standards and excellent quality of coca cola products is the main reason that consumers buy and

spends more on its core product. Augmented product is the second level, it is the services provided to the consumers other than the main product of the company. But this level is a small one as soft drinks and beverages are consumable goods. Several products made by coca cola in Pakistan are: Coke. Sprite. Fanta. Diet Coke. Bottle Sizes: This particular company makes coca-cola and other drinks i-e fanta, sprite in milliliters size bottles which are: Standard Sized bottles that could be returned Liter Returnable Bottle No Return Bottle or Disposable Bottle 1.5 Liter Plastic Made Bottle Tin Pack 330 ml

b) Promotion: Coca Cola being the best brand and demanding beverages all over the World always focus the Promotion of its each product in all means and through modern marketing techniques. Shelf Buying They buy shelves in different stores and position or place their products in such a way that they are attractive and easily visible to the consumers. Eye Catching Position

This is a strategy in which the company place their freezers or products in a kind of place where they look prominent and is the first thing that consumer note when entering a store. Sale Promotion: This strategy focuses on getting sponsorships from several colleges and schools where the company can promote their product in a sporting event or any other extra curricular activity. UTC Scheme UTC is short form for Under the Crown Scheme. Company offers some gifts or prizes on the purchase of their products e.g. coca cola company giving bicycles,caps,toys,tv,free vouchers is famous among children. Distribution Channels This consists of two strategies. direct selling and indirect selling form coca cola company Direct Selling In this the company uses their own means of transport to supply their products to the stores. They achieve more profit margin through this strategy Indirect Selling Intermediaries are used in this kind of selling.Wholesellers are used to supply their products so in this way a larger area can be covered. Facilitating the product by infrastructure This is a strategy in which the infrastructure comprises of Coolers Freezers Display Racks Billboards and Hoardings Billboards are used on different locations for promotion.

c) Place: Coca Cola has always tried to distribute their products on a large scale, therefore worlds 94 percent population is familiar with it. After the word OK , Coca-Cola is the most recognized word. The company directly distributes their products in to stores. These Stores could be Supermarket, Marts, Convenience Stores, Retail Stores and Departmental Stores. Coca Cola has got a huge distribution channel to make their products easily available.


With the passage of time , coca cola has increased their number products thus increasing the number of warehouse to store. Coca Cola Intl has also improved services via setting up a national service network.

d) Price The prices of Coca Colas products change in accordance with the brand, locality and the size. Primary products pricing are depended and fixed also on basis of Market Economical state. The Company sell their products in retail stores, convenient stores, petrol stations etc. The pricing methods/strategies are set by those the company sells to. Petrol stations and convenient stores have a fixed price when they sell coca cola products. However retail shops use different pricing methods and strategies to sell Coca Cola products according to needs and demand. Coca Cola uses all three conventional pricing strategies which are: market skimming pricing, market penetration pricing and neutral pricing. The 'reference value' (when the buyer compares it with the prices of products offered by its competitors) and the 'differential value' (when the consumer makes comparison in the attribute of different products with this one) must be considered. Coca Cola Internationals biggest competitor is Pepsi Co., therefore pricing strategies are made while keeping the rivalry and threats imposed by its competitor. Basically standard pricing is set around the globe. Variations in prices take place seldom after a long duration of time like, a year etc. Mostly prices are not affected by laws made by the government

and/or political rules and regulations but in Pakistan, the prices have gone up in a short period of time because of an increasing inflation rate. One of the reason that coca cola is readily available and covers a huge market is that the company provides incentives to the retailers,wholesellers and middlemen e.g. giving them free samples. These intermediaries then try to push the product more and more in the market. Company also makes agreements with the storekeepers such as exclusive sales in the stores. These stores are their KEY ACCOUNTS. These stores are also given offers from the company as an incentive. Different Prices charged in Different Season The pricing methods of coca cola changes according to the change in season. Summers are season in which beverage consumption is high, therefore company keeps high prices in summers and in winters it is vice versa. Thus making different sales in different seasons Learning from the Project in terms of Comparing Theory & Practice As theory is only an idea and practical is to implement the idea. Most of the things we learn from this project are the same standards which we read in books. E.g. that how we manage new innovation, role of technology, competition, organization structure and culture, and above all the knowledge of the taste of consumers and marketing mix and implementation and control. The difference we found that to theory is very ideal, and in practice it is very different to implement all the things. The difference we found between theory and practical are as follows. Hiring is not up to standards and personal preferences will be given. No proper training is provided to employees and not appreciated the innovative ideas. Local companies make their own drinks and use the Coca-Cola bottles and labels which is very dangerous for the company and for the consumer as well.The quality is not up to standard as the company claims.


Q1. Shop type (a) pansar shop(b) Departmental shop


(C) khoka/Sweet paan shop (d) Canteen Q2. Which type of soft drinks u sell ? (a) Coca cola (b) nestle (c) Pepsi (d) Others Q3. Which company signature or advertisement you use in your shop ? (a) Coca cola (b) nestle (c) Pepsi (D)no sign Q4. Which companys cooler refrigerator you have in your shop? (a) Coca cola (b) shezan (c) Pepsi Q5. What do you think which company has better sales and distribution network ? (a) Coca cola (b) nestle (c) Pepsi (d) others

Q6. What is size of bottle people buy frequently. ? (a)200ml returnable bottle (b)1000ml plastic bottle (c)tin bottles Q7. Does customer know the difference between branded and unbranded soft drinks ? Yes No

Q9. What is major group age of people which buy soft drinks ? (a) children (b) teenage (c) adult (d) old age people Q10. How do you rank the price of branded carbonates drinks ? (a) High (b) Medium (c) Low (d) Reasonable

Q11. Does a price reduction increase dales ,what is you view? (a) Yes (b) No

Q12. What medium of advertising is most influential ? (a)TV (b) Magazines/News papers

(c) Display (d) Hoardings Q13. What do you recommend to increase sales ?

(a) New promotion schemes (b) shop Refrigeration system (c) TV Advertisements (d) Reduction in return deposits of bottles (e) short Credit term facilities