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MARKETING PLAN OF COCA COLA
SIR MAZHAR ALI
SUBMITTED BY ABDUL RAFAY (4198) WALEED LAL BAKHSH (4311) ADEEL ALVI (4331) ANWAR MITHANI (4096)
GROUP MEMBERS PARTCIPATION ABDUL RAFAY WALEED LAL BAKHSH ADEEL ALVI ANWAR MTHANI
First of all bow our head before ALLAH ALMIGHTY. ALLAH the Omnipotent, Omnipresent and to the HOLY PROPHET MUHAMMAD (PBUH) for completion of our assignment. Our humble and heartiest thanks are for our best teacher SIR MAZHAR to motivate us and encourage us to complete this task.
THE EXECUTIVE SUMMARY
The scope of the project is to discuss the marketing strategies adopted and applied by Coco Cola, Pakistan. From the last two month or so our group is in the process of continuous research on the marketing functions and strategies adopted by Coco Cola. These marketing functions mainly include the marketing mix i-e, Product strategy, Pricing strategies, pricing tool and strategies as well as other market strategies More over the project also market growth and trend, opportunities analysis and strategies of making competitive advantage adopted by Coco Cola. We will like to add a the project will provide the readers and listeners very highly profile information about the marketing strategies as a whole and also about the Coco Cola Company .In the end hope that the project will result very profitable for the readers and Coco Cola
1. 2. 3. 4. 5. 6.
Acknowledgment The Executive Summary Introduction. Mission, vision and values. a. Coca Cola International history. b. Domestic history. Product line. Current situation analysis a. Market Condition b. Market Strategy c. Market analysis d. Market share analysis. e. Market Positioning f. Price Strategy g. Promotion Strategy Marketing strategies of coca cola a. Product b. Place c. Promotion
d. Price 8. Sale Promotion Activity 9. Coco cola swot analysis a. Strength b. Weakness c. Opportunities d. Threat 10. Profit and loss statements 11. Financial highlights 12. Action programs
Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines, Worldwide (The Coca-Cola Company claims that it is sold in more than 200 countries.). It is produced by The Coca-Cola Company in Atlanta, Georgia, and is often referred to simply as Coke or (in European and American countries) as cola, pop, or in some parts of the U.S., soda. Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to various licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans and bottles to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and Western Europe. The Coca-Cola Company also sells concentrate for fountain sales to major restaurants and food service distributors. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, which has become a major diet cola. However, others exist, including Caffeine-Free Coca-Cola, Diet Coke Caffeine- Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime, or coffee. In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or sodium benzoate, the controversial additive linked to DNA damage and hyperactivity in children, of Diet Coke. The company has stated that it plans to remove the controversial additive from its other products, including Sprite and Oasis, as soon as a satisfactory alternative is discovered.
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.
OUR WINNING CULTURE
Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality.
LIVE OUR VALUES
Our values serve as a compass for our actions and describe how we behave in the world. · Leadership: The courage to shape a better future · Collaboration: Leverage collective genius · Integrity: Be real · Accountability: If it is to be, it's up to me · Passion: Committed in heart and mind · Diversity: As inclusive as our brands · Quality: What we do, we do well
FOCUS ON THE MARKET
· Focus on needs of our consumers, customers and franchise partners · Get out into the market and listen, observe and learn · Possess a world view · Focus on execution in the marketplace every day · Be insatiably curious
· Act with urgency · Remain responsive to change · Have the courage to change course when needed · Remain constructively discontent · Work efficiently
ACT LIKE OWNERS
· Be accountable for our actions and inactions · Steward system assets and focus on building value · Reward our people for taking risks and finding better ways to solve problems
Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company.
The Coca-Cola Company traces its beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fount ain dr inks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secur ed the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 19 86, The Coca-Cola Company merged some of its company-owned oper ations with two large ownership groups that were for s ale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986. In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) creat ed a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion.
Coca cola started its operations in Pakistan in early sixties. The brand became very popular in a very short span of time and the company broadened its operations to meet its increasing demands. The coca cola inaugurated their plant in Multan at Vehari road in 1965. It is still situated at the same place. Initially it was introduced as a franchise basis. The owners who took the franchise were not focusing on the quality of coke very much and they were unable to meet the standard of coke internationally. They were losing the market share against Pepsi. So the coca cola company now has taken over it in Pakistan. Here we would like to include some of the popular slogans of coke since the coke journey started. y y y y y y y y y y y 1886 Drink Coca-Cola 1908 Get the genuine 1923 Enjoy thirst 1934 When it's hard to get started, start with a Coca-Cola 1942 The only thing like Coca-Cola is Coca-Cola itself 1956 The friendliest drink on earth 1963 Things go better with Coke 1993 Always. Coca-Cola 2001 Life is Good 2003 Jo Chaho Ho Jaye Coca Cola Enjoy 2009 Khaa Ley Pee Ley Gee Ley Coca Cola
Today CCBPL is operated directly under the supervision of the Coca-Cola International based in Atlanta Georgia State___ USA .It owns 10 plants all around in Pakistan. y y y y y y Karachi. Lahore. Gujerwal Rawelpindi Peshawar Hyderabad
A beverage is a drink specifically prepared for human consumption. Almost always it largely consists of water. These include: · Water, from the tap or from a bottle · Juice, for example fruit juices, vegetable juices · Soft drinks y Lemonade y Carbonated drinks (generally called sodas in the Eastern U.S) y Cola y Ginger ale y Root beer y Cream soda y Sports drinks y Infusions y Coffee y Tea y Dairy drinks, for example milk, yoghurt drink, chocolate milk, y milkshake
PRODUCT LINE OF COCA COLA
The coca cola beverage industry is currently producing different types of beverage products. The most famous are: y COCA COLA FANTA y SPRITE, SPRITE 3G y KINLY water MAAZA MANGO The bottles that are filled in this plant are 250ml and 1 liter bottles. The pet bottles tin packs are not filled. The bottles are also not produced in this plant.
PRODUCT RANGE IN PAKISTAN
The total range of Coca Cola company in Pakistan includes: y Coke.
y y y
Sprite. Fanta. Diet Coke.
CURRENT SITUATION ANALYSIS
Market condition worldwide
% 30 % 10
y y y
Coca Cola share 60% in whole world. Pepsi share 30% in whole world. Others product share 10% in whole world.
Market position in Pakistan
Coca Cola share 36% in Pakistan. Pepsi share 54% in Pakistan. Others product share 10% in Pakistan.
y Going Global Our Quality Promises Targeting Young Mind Changes Of Bottle Design Fun Island Coca Cads Coca Hokha Coke Pump
MARKET ANALYSIS: The market analysis investigates both the internal and external business environment. It is vital that Coca cola carefully monitor both the internal and external aspects regarding its business as both the internal and external environment and their respective influences will be decisive traits in relation to Cokes success and survival in the soft drink industry. INTERNAL BUSINESS ENVIRONMENT The internal business environment and its influence is that which is to some extent within the businesss control. The main attributes in the internal environment include efficiency in the production process, through management skills and effective communication channels. To effectively control and monitor the internal business environment, Coke must conduct continual appraisals of the businesss operations and readily act upon any factors, which cause inefficiencies in any phase of the production and consumer process. 9
EXTERNAL BUSINESS ENVIRONMENT The External business environment and its influences are usually powerful forces that can affect a whole industry and, in fact, a whole economy. Changes in the external environment will create opportunities or threats in the market place Coca cola must be aware off. Fluctuations in the economy, changing customer attitudes and values, and demographic patterns heavily influence the success of Coca Colas products on the market and the reception they receive from the consumers. MARKET SHARE ANALYSIS Coca cola is now one of the largest corporations in the world, with a global work force of over 90,000 and revenues of $31.9 billion in revenues in 2009. Over the years, the brand equity of the coca cola trademark, as well as that of other coca cola produced brands, has established coca cola as prominent figure in the non- alcoholic beverage industry and allowed the company to keep both revenues and profits high. Market share analysis compares Coca Colas business sales performance with that of its competitors. In Pakistan Coca Cola looks to increase its market share from 30% to 35%.
The total range of Coca Cola company in Pakistan includes:
y y y y
Coke. Sprite. Fanta. Diet Coke.
And company offers their products in different bottle sizes these includes: y SSRB (standers size returnable bottle)
y y y
LRB NRB PET 1.5 CANS
(litter returnable bottle) (no return bottle) or disposable bottle (1.5 litter plastic bottle) (tin pack 330 ml)
Coca cola products are available in different packing
y y y
24 regular bottle shell 6 bottle pack for 1.5 pets 12 bottles in a pack for disposable bottle 24 cans in one pack.
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 thats 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
Sometimes Coca Cola Company change their product prices according to the season. Summer is 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.
Getting shelves They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers. Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores. Sale Promotion Company also do sponsorships with different college and schools cafes and sponsors their sports events and other extra curriculum activities for getting market share. Distribution Channel Coca Cola Company makes two types of selling Direct selling Indirect selling Direct Selling In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.
MARKETING STRATEGIES OF COCA COLA
Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of which they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It's a special thing to have billions of friends around the world, and we never forget it. 11
Coca Cola does its positioning on the basis of its taste. Once a business has decided which segments of the market it will compete in, developed a clear picture of its target market and defined its product, the positioning strategy can be developed. Positioning is the process of creating, the image the product holds in the mind of consumers, relative to competing products. Coca Cola and Franklins both make soft drinks; although Franklins may try to compete they will still be seen as down market from Coca Cola. Positioning helps customers understand what is unique about the products when compared with the competition. Coca Cola plan to further create positions that will give their products the greatest advantage in their target markets. Coca Cola has been positioned based on the process of positioning by direct comparison and have positioned their products to benefit their target market. Most people create an image of a product by comparing it to another product, thus evident through the famous battles between Coca-Cola and Pepsi products.
Developing the Marketing Mix or 4 Ps
The marketing mix is probably the most crucial stage of the marketing planning process. This is where the marketing tactics for each product are determined. The marketing mix refers to the combination of the four factors (price, promotion, product, and place) that make up the core of a businesss marketing strategy. In this step of the marketing planning process, marketing mix must be designed to satisfy the wants of target markets and achieve the marketing objectives. The most successful businesses have continually monitored and changed their marketing mix due to respective internal and external factors and have monitored the external business environment in order to maximize their marketing mix components.
Many Products are physical objects that you can own and take home. But the word product means much more than just physical goods. In marketing, product also refers to services, such as holidays or a movie, where you enjoy the benefits without owning the result of the service. Businesses must think about products on three different levels, which are the core product, the actual product and the augmented product. The core product is what the consumer is actually buying and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The actual product is the parts and features, which deliver the core product. Consumers will buy the coke product because of the high standards and high quality of the Coca Cola products. The augmented product is the extra consumer benefits and services provided to customers. Since soft drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a help line and complaint phone service for customers who are not satisfied with the product or wish to give feedback on the products. BRANDING It is often hard to say exactly why we buy one companys product over another. Companies such as Nike and Adidas spend large amounts of money trying to win consumers away from their competitors who make products that are very similar. The popularity of the brand is often the deciding factor. Over the time Coca Cola has spent millions of dollars 12
developing and promoting their brand name, resulting in worldwide recognition. 'Coca-Cola' is the most recognized trademark, recognized by 94% of the world's population and is the most widely recognized word after "OK". Coca Colas red and white colors and special writing are all examples of world-wide trademarks. PRODUCT LINE There are different brands of the Coca Cola Company, which are currently in use throughout the world. This company not only deals in the carbonated drinks but also other drinks. While launching its product, the marketing team considers the culture of the country. Major brands of coca cola y y y y y Coke Sprite Fanta Diet coke Coke classic PROMOTION ADVERTISEMENT Coca cola company use different mediums y y y y Print media Pos material Tv commercial Billboards and holdings
SALES PROMOTION ACTIVITIES 1. 2. 3. 4. COCA-COLA CRICKET COCA-COLA CONCERTS COCA-COLA FOOD MELA COCA-COLA & MC DONALDS
SWOT ANALYSIS OF COCO COLA
y PRODUCT IMAGE /BRAND IMAGE:
It is rated as the worlds number one cold drink and is famed for its internationally well-known brand name Coca-Cola. Coca-Cola has been a complex part of world culture for a very long time. The product's image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment" (Allen, 1995). y BOTTLING (SHAPE):
Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers. y REGULAR SUPPLY :
The regular supply of the products is strength of the company. The products are regularly supplied to the dealers through proficient means of delivering and distribution has given Coca-Cola Pakistan an added advantage. Coke trucks supply the products regularly and always have the desired products for the dealers. y AGGRESSIVE MARKETING STRATEGY:
Its marketing strategy is very aggressive which aids it in further and incessant production and distribution of its products. It gives trade offers to its dealers for storing more and more coke products and the signage strategies and agglomeration of all the marketing strategies proves that it has a very aggressive marketing strategy. This will help Coca-Cola Pakistan in strengthening its integrity in the y CUSTOMER LOYALTY / TASTE LOVER :
The biggest strength of coco colas is the taste. We researched on it and ask too many people they like coco cola because it is not too much sweet as compare to others there is some secret ingredient which is highly confidential
Weaknesses for any business charge to be both minimized and monitored in adjustment to finer accomplish abundance and ability in their business's activities, although Coco Cola is very successful business company, with limited weakness. However they do have a variety of weakness that need to be addressed if they want to raise the next level. y CENTRALIZED DECISION MAKING:
The decision making process in the company is highly centralized and the workers feel that there exists no proper authority existing in the firm. The salesmen feel dissatisfied for they are totally powerless to make any decisions themselves. In dealing with their buyers they have not the slightest authority to allow them any credit or discount. y POOR DISTRIBUTION:
Presently the market share of coca cola in Pakistan is only 14% however Pepsi has a market share of 77%.even though internationally coca cola is considered the number one brand. The problem however lies why is it that coke is unable to attain a strong hold in Pakistan. The answer to this is not simple, but through various reasoning one of the major attributes to this is coke has a weak hand on its distribution channel. In Karachi, Shops and stores put their names on painted branded boards, and are bought by the cola majors to stock only their brands, thereby obviating any sales pitch by their competitors. In this case coke has been beaten by Pepsi at various occasions.
DOCUMENTATION & FORMALITIES:
Some time quick action is necessary but due to the centralized decision making it is not possible. However the competitors do use the local approach as per the area requirement. y HEALTH PROBLEM:
Coca-Cola on the other side has effects on the teeth's which is an issue for health care. It also has got sugar by which continuous drinking of Coca-Cola may cause health problems. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effect on your body after few years
y LESS AVAILIBITY:
The product is not available to the extent that it should be. If Coca-Cola wants to make an impact in the market they will have to do more than they are doing at the present moment. If we talking about the rural areas in Pakistan Coco cola is not frequently available as its competitors are. It is the reason that Coco Cola Company is unable to spread its roots in this market as it has done globally.
LACK OF PROMOTION:
Coca cola is very much conscious about their billboards, holdings and TV commercials but these Promotional activities have been greatly neglected in many areas especially interior sides of our providences. This indeed results in a high degree of difficulty for coke in penetrating the market.
y NEW MARKET:
We know that Coke came to Pakistan many years ago and since it is working hard to develop its market. We think that Coca-Cola can secure new dealers and buyers of its product as still large part of the country is still devoid of its products. It can promote its products in the younger generation by targeting the new outlets being opened due to improved law & order situation and a growing population. Another new market is waiting for Coco Cola is the rural area where company need to address with its integrated marketing tools and strategies to make them aware and develop the taste of these people. y TO MAKE CHANGES IN PACKAGING:
Coca-Cola's bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse. y NICHE MARKETING:
Niche markets that ample companies do not ambition to serve
Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and y FAKE PRODUCTS:
In areas such as Liaqatabad, New Karachi, Glimmer etc Fake beverages by the name of coke are being supplied by unknown people. Such activities really hamper the companys name and its brand originality. Above all the fake beverages supplied are almost similar to the taste of the original Coke brand and not everyone can decipher the difference between the original and the fake product. This is in fact a great threat to Coca-Cola for unworthy people is taking advantage of its brand name and spoiling its good name in the market y CONSUMER BUYING POWER:
It also represents a key threat in the industry. The rivalry between Pepsi and Coke has produce a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competition. Furthermore, consumers can easily switch to other beverages with little cost or consequence.
THE MANGO SEASON:
The mango season is a great threat to Coca-Colas operations and also its sales. According to statistics during the mango season CocaColas sales are reduced by about 25-30%. This is indeed a huge blow to Coca-Cola especially since it is a fairly new company in the market. The greatest affect is on the revenue from the rural areas where mango drinks take over. However this is one factor that Coke cannot do anything about for it is not in their hands. If the mango season is to come nothing can be done about it. y y Economical and political issues. Competitors Schemes
The Coca-Cola Company and Subsidiaries Condensed Consolidated Balance Sheets (UNAUDITED) (In millions except par value) April 3, 2009 ASSETS CURRENT ASSETS Cash and cash equivalents Marketable securities Trade accounts receivable, less allowances Inventories Prepaid expenses and other assets TOTAL CURRENT ASSETS INVESTMENTS Equity method investments: Coca-Cola Hellenic Bottling Company S.A. Coca-Cola FEMSA, S.A.B. de C.V. Coca-Cola Amatil Limited Coca-Cola Enterprises Inc. Other, principally bottling companies and joint ventures Other investments, principally bottling companies TOTAL INVESTMENTS OTHER ASSETS PROPERTY, PLANT AND EQUIPMENT ² net TRADEMARKS WITH INDEFINITE LIVES GOODWILL OTHER INTANGIBLE ASSETS TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt Accrued income taxes TOTAL CURRENT LIABILITIES LONG-TERM DEBT OTHER LIABILITIES DEFERRED INCOME TAXES THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common stock, $0.25 par value; Authorized ² 5,600 shares Capital surplus $ 5,651 6,701 461 356 13,169 5,017 2,944 865 880 8,021 $
6,816 263 3,139 2,298 2,198 14,714
1,386 840 680 2,410 441 5,757 1,793 8,425 6,042 3,988 2,384 43,103
Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS TOTAL EQUITY TOTAL LIABILITIES AND EQUITY $
38,911 (2,893) (24,207) 20,712 396 21,108 43,103
The Coca-Cola Company and Subsidiaries Condensed Consolidated Statements of Cash Flows (UNAUDITED) (In millions)
Three Months Ended April 3, 2009 OPERATING ACTIVITIES Consolidated net income Depreciation and amortization Stock-based compensation expense Deferred income taxes Equity income or loss, net of dividends Foreign currency adjustments Gains on sales of assets, including bottling interests Other operating charges Other items Net change in operating assets and liabilities Net cash provided by operating activities INVESTING ACTIVITIES Acquisitions and investments, principally beverage and bottling companies and trademarks Purchases of other investments Proceeds from disposals of bottling companies and other investments Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net cash used in investing activities FINANCING ACTIVITIES (179) (6) 37 (467) 7 9 (599) $ 1,359 283 53 (20) (3) 42 (5) 74 100 (1,010) 873
Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Net cash provided by financing activities EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS Net increase during the period Balance at beginning of period Balance at end of period $
5,758 (3,001) 10 (950) 1,817
2,115 4,701 6,816
PROFIT LOSS STATEMENTS The Coca-Cola Company today reported solid first quarter 2009 results despite a challenging economic environment, with unit case volume increasing 2 percent, successfully cycling 6 percent growth in the prior year quarter. Acquisitions contributed 1 percentage point of unit case volume growth for the quarter. Internationally, the Company achieved broad-based unit case volume growth of 3 percent. Unit case volume increased in key emerging markets, with 31 percent growth in India, 10 percent growth in China, high single-digit growth in Southern Eurasia, Thailand and Vietnam and mid single-digit growth in Korea and Nigeria. During the quarter, Latin America continued with strong unit case volume growth of 5 percent, led by a 6 percent increase in Mexico and a 4 percent increase in Brazil, as well as continued volume and value share gains in both sparkling and still beverages. Europe outperformed the industry and gained volume and value share. Unit case volume growth of 3 percent in Northwest Europe was offset by significant macroeconomic challenges in Central and Eastern Europe resulting in unit case volume for the group declining 2 percent in the quarter, cycling 4 percent growth in the prior year quarter. North America again outperformed the industry, gaining nonalcoholic ready-to-drink share for the fifth consecutive quarter. North America realized sequential improvement with unit case volume declining 2 percent in the quarter. In Japan, unit case volume was even, outperforming the nonalcoholic ready-to-drink industry and resulting in the fourth consecutive quarter of share gains. Sparkling beverage unit case volume was even in the quarter. International sparkling beverage unit case volume increased 1 percent in the quarter, cycling 5 percent growth.
Still beverage unit case volume increased 9 percent in the quarter, led by strong growth across the portfolio, including juices and juice drinks, sports drinks, teas, and water brands. International still beverage unit case volume increased 13 percent in the quarter. Globally, the Company gained volume and value share in nonalcoholic ready-to-drink beverages for the seventh consecutive quarter.
The Company reported first quarter 2009 earnings per share of $0.58. After considering items impacting comparability, earnings per share for the quarter were $0.65, a decrease of 3 percent versus the 2008 first quarter. Reported earnings per share for the first quarter of 2009 included a net charge of $0.07 per share primarily related to restructuring charges and asset write-downs. Reported earnings per share for the first quarter of 2008 were $0.64, including a net charge of $0.03 per share primarily related to restructuring charges and asset write-downs. Results in the first quarter of 2009 were also positively impacted by 5 additional selling days, which will offset in the fourth quarter. Operating income for the first quarter of 2009 decreased 1 percent on a reported basis versus the first quarter of 2008. Items impacting comparability reduced first quarter operating income by $92 million in 2009 and by $85 million in 2008. After considering these items, operating income was even. Excluding the impact of currency, operating income increased 17 percent, exceeding the Companys currency neutral long-term profit target. In February, the Company approved its 47th consecutive annual dividend increase, raising the 2009 quarterly dividend 8 percent. The Company is currently on track to deliver $500 million in annualized savings from productivity initiatives by year-end 2011. The continued acceleration of these efforts will enable cash flows to be redeployed to drive investments for growth. "While the global economic environment remains challenging, we are well positioned for long-term growth. Our business was built for times like these," said Muhtar Kent, president and chief executive officer, The Coca-Cola Company. "We again exceeded our long-term profit target and delivered solid volume results. Importantly, in many worldwide markets, we outperformed the nonalcoholic ready-to-drink industry, driving further volume and value share gains. I am confident that, armed with strong brands and solid business fundamentals, our experienced management team will continue delivering against our long-term targets." "Consumers around the world love and trust our brands and turn to us to provide simple moments of refreshment nearly 1.6 billion times every day. And every week, our system reaches 20 million customers around the world with innovative, category-leading brands and services that deliver at the point-of-sale. There really is no better consumer business to be in todayor tomorrow." "Further, our business has historically generated significant cash flow in all economic conditions, enabling us to invest in key brands and geographies, and consistently return value to our shareowners. This is clearly reflected by our 47th consecutive annual dividend increase and the continued investment behind our growing stable of billion dollar brands." "Our strong foundation, consistent set of strategic priorities, and alignment with our invaluable bottling partners were drivers of our continued success this quarter. Our system is truly like no other, and is now more aligned and more capable of creating value for our consumers, our customers, and our shareowners. All of this provides us confidence that The CocaCola Company will continue to deliver consistent, long-term sustainable growth and with great resolve will come out of this tumultuous period much better than when we entered."
T o achieve the business objectives coca cola adopted the following strategies;_ y Coke Studio- Coke Studio is a musical program sponsored by coca cola and telecasted on popular channels in Pakistan. Coke Blitz- In coke blitz coca cola companys employees worked as a team and visited their retailers and helped them in cleaning of refrigerators and placed them at easily reachable position.
Sprite Mad About TV- In this promotional activity a media team visited the universities all over Pakistan in search of talent under the coca cola company name to promote its product. Ramadhan offer- In month of Ramadhan special discounts are given to increase the sales.
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