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Strategic planning. Doubt hey ismy mujhy tum read karo?? 12. Coca Cola Pakistan. 13. Major Competitors (a bit review of it) a. Pepsi b. History. • Market share. • Financial report. • Products. • Methodology 14.Some basic information regarding marketing of coke a. Target market: b. Major segments: c. Factors effecting sales: d. Major competitors: e. Strategies of quality: f. Threats from competitors: g. Targets that would like to attain: h. Expanding target market L Threats and opportunities for price: j. Strategies of getting goals i.e, "high profits": k. Marketing strategy: I. Expectations for the coming year: 15. Marketing strategies 16. Pest analysis
The Coca-Cola Company
is the world's largest beverage company, largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world and is one of the largest corporations in the United States. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billion servings each day.
Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines
The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA and S&P 500. Its current president and CEO is Muhtar Kent.
Mission, Vision & Values
The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottler partners
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.
• • •
To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.
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, quality growth.
• • • • •
People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
• • • • • •
Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.
49 Years Of Refreshment In Pakistan
Coca-Cola introduced in Pakistan Fanta introduced in Pakistan Sprite was introduced Diet Coke & Fanta Lemon
1953 1965 1972 2001
Coca Cola Pakistan
The Coca-Cola Company began operating in Pakistan in 1953. Coca-Cola, Fanta and Sprite are the brands in Pakistan. The Coca-Cola System in Pakistan operates through eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan, Multan and Lahore. The remaining two plants, independently owned, are in Rawalpindi and Peshawar. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan
employs 1,800 people. During the last two years, The Coca-Cola System in Pakistan has invested over $130 million (U.S.)
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market.
Market Share By Area
Coca Cola is the world-renowned soft drink and the company is currently operating through out the world. The world wide total is about 17.8 billion.
Industrial SWOT analysis
The soft drinks market in Pakistan enjoyed dynamic growth over the review period in both volume and current value terms. Carbonates have become part of the culture in Pakistan and multinational companies have maintained their standards over the years to provide consumers with high-quality carbonated drinks. Off-trade sales of carbonates are higher than those of the on-trade but both achieved strong growth over the review period
Liquid concentrates and powder concentrates are both seasonal categories in the market and their sales peak in the summer in Pakistan. Both Rooh Afza and Jam-e-Shirin are traditional sandalwood drinks in Pakistan which are highly regarded by consumers. These drinks can be found in every home in Pakistan, especially in rural areas, throughout the summer and are the mainstay of liquid concentrates
The government of Pakistan has reduced excise taxes to encourage soft drinks manufacturers and importers. The government also reduced other applicable taxes to promise more profits not only for soft drinks manufacturers already in the market but also to attract potential soft drinks manufacturers to invest in Pakistan. Tax reductions proved extremely beneficial to the soft drinks market in Pakistan and certainly encouraged and attracted multinational companies to invest in the country's soft drinks industry. The government also decided to tax the beverage industry on capacity of production rather than on actual production and that brave move encouraged soft drinks manufacturers to maximize production and reduce prices
Increasing health and hygiene awareness among Pakistanis has greatly increased sales of fruit/vegetable juice products. Both the government and the media have started health awareness campaigns to make Pakistanis realize that consumption of fruit/vegetable juice is as essential as eating food. Fruit/vegetable juices are doing very well in both urban and rural areas. On the other hand, health and hygiene awareness has also led to increased sales of bottled water in Pakistan. Previously bottled water was targeted only at major cities where consumers are more healthconscious and aware of the difference between bottled water and tap water.Nowadays, healthconscious rural inhabitants also drink bottled water due to health concerns.
SWOT Analysis Of COKE
SWOT Analysis, which is based on thorough review of the business (corporation, product category competition, customers and products), identities and evaluates the internal strengths and weakness of the companies well as its external threats and opportunities. The marketing mix is driven by the results of the SWOT analysis.
Demand of coke is more than its competitors.Company has a very established name and a good reputation.coke has large market share than its competitors.As the target customers of coke is young generation, so coke has more brand loyal customers.Most of the customers are satisfied with the price of the coke.coke is an international company and it has a very strong position internationally.The environment of factory is very good and attractive. • • Large scale of operations Strong supply chain management system
coke does not offer any sort of incentive or discount to its retailers.coke target only young customers in their promotions.Crown of the disposable bottle is not good.Demand of disposal bottle is declining. coke tin pack is not available in far off rural areas. • • Unable to differentiate itself from Pepsi. Less effective campaigns.
Company may start entering rural areas also.The company may also diversify its business in some other potential business.Increased interest of people in musical groups, cultural shows and sports has provided an opportunity for coke to increase its sales through them. • • Growing bottled water market. Untouched markets.
The main competitor of the company is the Pepsi Cola.At the international level, coke has a very strong competition with pepsi. pepsi has started its advertisements more effectively to increase their demand and it is a very strong threat for coke. Cola drinks are not good for the health so the awareness level of the people is in creasing which is a big threat to the company. • • • • Intense competition with competitors. Intense price competition. Dependence on bottling partners Sluggish growth of carbonated beverages
HOW Internal and External factors affecting the strategies
Marketers need to be good at building relationships with customers, others in the company and external links. To do this effectively, they must understand the major environmental forces that surround all of these relationships. A company’s environment consists of forces outside marketing that affect marketing management’s ability to build and maintain successful relationship with the target customers. Every company should know the vital importance of constantly watching and adapting to the changing environment. As the world is moving fast today, no one can be certain about the future. The environment continues to change rapidly. By carefully studying the environment, marketers can adapt their strategies to meet new marketplace challenges and opportunities. Some of the external and internal environmental factors that affect the marketing trend of the company are as follows:
The macro environment consists of the larger societal forces that affect the microenvironment. The external factors are not under the control of the marketers; they can just observe them and make strategies in light of these factors. Some of these factors are given below: DEMOGRAPHIC FACTORS: • Age The requirements of different age groups are different. coke should target that age group that consumes it the most and make promotional strategies according to their behavior. So their main target is the young generation.
• Education A company has to make promotional strategies keeping in view the customer level. If the percentage of education is high in a country then through advertisements people can be made well aware of their product and can convey their message easily. Promotion and education has a direct relationship. • Population Distribution Population distribution means how much [population lives In urban areas and rural areas. In Pakistan 35 % population resides in urban areas and 65% population lives in rural areas. coke is focusing on urban areas as people there are more inclined towards such beverage while people in rural areas are more inclined drinking lassi and desi drinks. • Population Density It means number of people in one square km per area. Karachi has the largest population density and Islamabad has less population density in Pakistan. coke sales are more in Karachi as compared to the sales in Islamabad. ECONOMIC FACTORS: • Income and Income per Capita If the income level or per capita income of the people increases, it will have a positive effect on the consumption of coke. • Inflation If the country faces inflationary trend in the market, the price of the Coke will ultimately increase which will lower its demand. • Consumption Behavior Pakistan is a consumption oriented society. Due to demonstration effect the people are more inclined towards consumption than saving. So the people of Pakistan spent heavily on food items. Hence COKE has a good market share in the present circumstances. • Income Distribution It means how much is in the hands of rich and poor class. In Pakistan 10% rich people posses 93% of wealth and 90% people posses 7% of wealth. If there is balanced distribution of income in the country, the consumption of the people will increase hence increasing the sales of beverages as well.
• Payment Mod As the use of plastic money is increasing the consumption pattern of the people are increasing. Although it will have a low affect on the consumption of Coke. • Employment Opportunities As employment opportunities increase the living standard of the people increase and the people consume more. • Aggregate Demand In case of Coke, aggregate demand of the product increases in the season of summer as the hot weather makes the consumers want to drink more. • Aggregate Supply In summer season to cope up with the increasing demand they have to increase the aggregate supply of their product. • Economic Policies Some of the economic policies which can affect the market of coke are discussed below: • Fiscal Policy It is the policy of taxes. If heavy tax is levied on Coke then its price will rise having negative affect on its consumption. • Monetary Policy Monetary policy is made to restrict or increase the supply of money in the market. If policies are made to restrict the flow of money in the market, inflation can be controlled hence increasing the real income of the people which will ultimately affect the consumption of Coke. • Price Policy If price of Coke is increased its demand will decrease and vice versa. • Income Policy If income of the people will increase their purchasing power will increase and hence increasing the market share of Coke.
PHYSICAL FACTOR: • Region Pakistan is divided into different geographical regions. Marketing and sales of Coke is different in different geographical regions. In hot areas its demand is more. • City Size The cities which are densely populated the consumption of Coke is more. • Climate Coke is more suitable for humid or hot weathered countries like Pakistan. It is a source of refreshment when a person is thirty due to the hot weather. • Infrastructure Roads are the basic need for transportation of Coke from one place to another. Coke cannot open factories in every city of Pakistan so it has to transport it to other cities where Pepsi is demanded. Electricity is the basic necessity for production of any product. Constant load shedding slows down the process of production which leads to less production and low market share. TECHNOLOGICAL FACTORS: • Research and Development Through research and development quality of the product can be improved or better techniques or machinery can be developed which can increase the production. When technology is advance the supply of the product increase hence the company experiences growth in their business. POLITICAL AND LEGAL FACTORS: • POLITICAL STABILITY: Whenever the government is considered to be stable, the business will flourish. If there is political stability in the country the policies and strategies made by Coke can be consistent to be implemented. Foreign companies are also keen to invest in those countries which are politically stable where they have no fear of decline in their market share or shut down due to sudden change of government.
• Mixed Economy In mixed economy government and private sector both plays their role in developing the economy of the country. Investment by foreign companies like Coke is more likely to flourish in mixed economy. • Laws Formulation Government has given copy rights to Coke so that another company cannot sell their product by the name of Coke. The countries where laws are formulated, the strategies and activities of the company are different. • Social Responsibility Coke’s social responsibility is to provide its customers with clean and hygienic product so to do this they have increased the use of disposable bottles. SOCIAL AND CULTURAL FACTORS: • Psychographic It is a combination of demographic and psychological factors. Psychological attributes mean how you perceive things. The company will focus on the behavior of consumers and make different changes in their product quantity or quality and in promoting their product so that they can attract the customers. Keeping in view that the behavior of different consumers is not alike they have to make their marketing strategies in accordance with their requirements so that they are convinced to buy the product. • Religious Religious factors can influence the market sales of Coke as it happened in 2003 when the U.S-led attack on Iraq, wide sections of society in Pakistan have banned American multinationals Coke and Pepsi • Social Status Coke is a well renowned brand. People who are brand conscious will not drink beverages of lesser known brands such as Amrat cola. They will try to show their status by drinking Coke which is known to all as a quality drink. • Media It is a very important factor for marketing. Media these days is a very effective way of inspiring people to buy a specific product. A good promotion can boast up sales to a great extent.
CUSTOMERS: There are three types of customers 1. Consumer 2. Business 3. Government Coke main focus is the consumers which are the end users. Coke has to make its marketing strategies keeping in view the consumer buying behavior. To forecast the behavior of the consumer is a business problem. Physical aspect of the consumer can be satisfied but it is difficult to satisfy the consumer psychologically. Consumer buying behavior is affected by certain factors like Cultural factors, Social factors, Personal factors and Psychological factors. So the producer should keep these factors in Mind while promoting their product so that they can acquire the customer and increase their market share. There are different consumers in a society whose behavior is not the same. Every consumer has a different perception of different products. Some consumers are impressed by one quality of the product which may be in the view of other consumer not that impressive. So to deal with different consumers in a society one should know about the consumer buying behavior process which may help in making a true picture of their product in the mind of the consumers. CONSUMER BUYING BEHAVIOUR PROCESS: Consumer buying behavior process is explained in some steps which are discussed below: • Need Identification The consumer is thirsty and he wants to quench his thirst. • Information Search He will search as to what will satisfy his thirst the most. • Evaluation of Alternatives He will now evaluate from the wide range of beverages available to him that which one of them is suitable to him in terms of quality, taste and is pocket friendly.
• Selection After evaluating the product he will select a product • Purchase The consumer will buy the selected product. • Post-Purchase Experience: It is the experience that the consumer gets after using the product. He will use the product again if he feels that his satisfaction after use is more or equal to the price of the product. After looking at above mentioned example, we can get an understanding that a product should be so desirable that whenever a person identifies his need, he selects our product among various substitute products and he feel satisfies so that he retains the use of that product. COMPETITOR: He is the person who is selling the same type of product in the market. The marketing concept states that to be successful, a company must provide greater customer value and satisfaction than its competitors do. Coke has a tough competition with Pepsi Cola while it faces a little competition with the local producers like RC Cola, Shandi Cola etc. The local producers hardly affect the sales of Coke in the market. There are different types of competitor in the market. Some of them in which our product lies are discussed below: • Close Vs Distant Competitor Pepsi and Coke are close competitors. It means that both have direct competition in the market, their products are close substitutes for one another. Both the products can influence the market share of one another through effective strategies made to cope up with their competitors. Coka cola and Nestle juice are distant competitors of one another. It means that their products satisfy the same want but they are in indirect competition with one another.
• Strong Vs Weak: Coca Cola and Pepsi are strong competitors. In Pakistan Pepsi is the market leader and Coca Cola is its competitor. The Pepsi makes defense strategies so that it can maintain its position in the market. While Coca Cola is a challenger and it makes attack strategies so that it can become the market leader. Coke and Shandi Cola are weak competitors. Pepsi is the market leader and Shandi Cola is the follower. SEGMENTATION It means that you divide the target market in to different groups. Market consists of buyers and buyers differ in one or more ways. They may differ in wants, resources, locations and buying practices. Through market segmentation companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs. MARKETING STRATEGIES There are different marketing strategies which are applied in targeting. Some of these strategies which Coke follows are discussed below: TARGET MARKET The market which is focused by the producer is called the target market. Targeting is to focus on the target market to attract the customers. CHARACTERISTICS OF TARGET MARKET The target market should have some following features. • Accessible It means that the target market which is focused should be accessible or easily approachable. • Substantial The target Market should be substantial. It should have a specific size where strategies can be made and implemented. • Measurable One should be able to measure the demand in the market.
• Comparable The producer should identify that needs of different customers are different. • Profitable The target market should be profitable for the producer. • Mass Marketing Big firms or companies say that everyone is their buyer whether they belong to rural or urban area, big or small country, rich or poor, adults and small children etc. Coke is mostly used by the young generation but it claims that it is moving towards mass marketing. POSITIONING STRATEGY It means that you try to give image to your product in the mind of the customers. To give a true and positive picture of the product is the best positioning. The company should promote its good points or comparative advantage which it has over its competitors DIFFERENTIATION STRATEGY In order to serve your target market you introduce different things to your product so that your product can be differentiated from other products. • Basis of Differentiation There are many bases on which a product can be differentiated but Coke has differentiated its product on the following base: • Product Differentiation Coke differentiate its product from its competitors on the basis of brand, quality and taste. • Image Differentiation Logo is used for image differentiation. Logo is what establishes a brand name in the consumer mind. It is the brands identification, signature and image. Coca cola has kept on changing its logo from time to time.
Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And that's why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. "Seen as sold" They do agreements with a shop keepers and stores to exclusive sale in that stores. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.
Different Price In Different Seasons
Some times Coca Cola Company change their product prices according to the season. Summer is
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. supposed to be a good season for beverage industry in Pakistan. So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle.
They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.
Eye Catching Position
Salesman of the coca cola company positions their freezers and their products in eyecatching
positions. Normally they keep their freezers near the entrance of the stores.
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. 34
Coca Cola Company makes two types of selling Direct selling Indirect selling
In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.
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
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
Billboards And Holdings
Coca cola company use different mediums • Print media • Pas material • Tv commercial • Billboards and holdings
They often use print media for advertisement. They have a separate department for print media.
As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.
Coca cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.
Coca cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.
Coca-Cola Basant Festival
In February the month of basant the parks & horticulture authority in Lahore nominated Coca-Cola the official sponsor of the basant festival .Coca-Cola added to the carnival atmosphere by making the festival free to enter & decorating all main roads in Lahore with illuminated kites. Coca-Cola also hosted a concert of pop idol Abrar-ul-haq, had children's parade & held the Coca-Cola kite flying championship during the basant festival. Now "where there is basant there is Coca-Cola", it has been impossible to envisage basant without Coca-Cola. Coca-Cola give the more refreshing flavor to the colors of basant by adding more life to the festival, giving the consumer a unique experience which they had never tasted before.
Quenching the thirst of motorist, pedestrians & passerby's during Lahore's hottest summer season, Coca-Cola's "GO-RED" teams went out into the cities main quadrants to "serve & refresh" on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement campaign the "GO-RED" stall, served well to promote the Coca-Cola industry.
Coca-Cola Party in a Park
In June 2000, Coca-Cola created an experiential musical evening in Lahore, where Junoon performed. This program was recorded and one-hour program shown in the national TV for free. 1 0 million households saw Coca-Cola 'Party in a Park' while 10 thousand people attended the event.
Coca-Cola Shopping Festival
Coca-Cola hosted "The Coca-Cola Shopping Festival" Lahore's first shopping festival, a resounding success with tempting discounts, live music, great prizes & fire works. Liberty marketing Gulberg was a hive of activity during the weeklong shopping extravaganza. The in augural event proved so popular that it is now set to become an annual fixture.
Coca-Cola Pet Promotion
In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in Pakistan. Targeting house wives & family home, Coca-Cola's 1.5 liter Pet bottle, took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits .A treat for the family, Coca-Cola's PET was offered through a "price-off' promotion that said ..............Go out & get some 39
Coca-Cola Ramzan Campaign
A very After completing our project we havePakistan Ramzan recommendation for the coca cola company, special occasion for the people of concluded some saw another very special CocaCola's promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with a super price-off which are following. promotion. The emphasis on enjoying Coca-Cola at "Iftar" with friends & family.
After thorough research, we come to the conclusion that the marketing strategy of Coca Cola is working for them and the product is gaining popularity among youth day by day. • • • • • Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. According to the survey, conducted by the international firm Pakistani people like little bit sweeter cola drink. So for this coca cola company should produce their product according to the local demand. Marketing team should try to increase the availability of Coke in rural areas. They should also focus the old people. Now young generation has a trend to drink a coke 2 regular bottles at same time, so providing more satisfaction to them company should introduce ~ liter disposable bottle.
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