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Marketing Plan
Presented by:
Abiha Hamid
Noor ul Ain Afzal

BBA-FA08-025
BBA-FA08-031

Sumaira Hafeez

BBA-FA08-034

Zara Ahmed

BBA-FA08-039

Iqra Khalid

BBA-FA08-067

Presented to:
Ms. Samreen Awais

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ACKNOWLWDGEMENT

First and fore mostly we would like to thank Almighty Allah who blessed us with
knowledge, understanding and ability to do this project.
We have discovered that the work of some unknown persons makes our lives
easier every day. We believe it's appropriate to acknowledge all of these
unknown persons; but it is also necessary to acknowledge those people we know
have directly shaped our lives and our work.
First of all we would like to thank our teacher Ms. Samreen Awais for her
guidance throughout the semester.
We thank Assistant Manager Coca Cola Faisalabad Division, Mr. Mehboob
Sultan, under whose kind supervision we got our required material. We are also
very thankful to the Mr. Muhammad Nadeem, Head of Division Pepsi Co.
Faisalabad.

DEDICATION

This project is dedicated to our parents who have enabled us to stand on our
own feet and have guided us in all matters of life.
May Allah bless them!
Ameen

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TABLE OF CONTENTS

Contents:

Page

No.
1) Executive Summary
2) Introduction
3) Situation Analysis
a) External
i) Customer
ii) Competitor Analysis
b) Internal
i) Company
ii) Context
4) Market Summary
a) Market Growth
b) Market Demographics
c) Psychographics Segmentation & Market Trends
14
d) Market Needs
e) Market Behavior
f) Market Share Growth Rate
g) Market Growth
5) SWOT Analysis
a) Strengths
b) Weaknesses
c) Opportunities
d) Threats
6) Competition
7) Product Offering
8) Keys to Success
9) Critical Issues
10)
Marketing Strategy
11)
Mission
12)
Marketing Objectives
13)
Financial Objectives
14)
15)
16)
17)
a)
b)
c)
d)
18)
19)
20)

28
Target Markets
Stretegies
Positioning
Marketing Mix
Product
Promotion
Place
Price
Financial Analysis
Break Even Sales
Sales Forecast35

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22
23
24
25
26
27

28
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29
30
30
30
31
32
33
34

21)
22)
23)

Implementation& Control
Recommendations
Appendixes

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36
37
38

1. Executive Summary
We are the students of BBA studies in The University of Faisalabad and we
have established this marketing plan after critically examining and thoroughly
researching over it. It consists of examining market research, auditing situation
analysis and carefully scrutinizing the soft drink industry and possibilities for
Coca Cola in the market. We have carefully analyzed the internal and external
business environments and critically examined
considering all external threats and opportunities.

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the

industry in general,

2. Introduction
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
fountain drinks. However the bottling business began in 1899 when two
Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead,
secured the exclusive rights to bottle and sell Coca-Cola for most of the United
States from The Coca-Cola Company.

Type
Manufacturer
Founder (s)
Country of Origin
Introduced
Area Served
Color
Flavors

Soft Drink (Cola)

The Coca- Cola Company
John S. Pemberton
United States
1886
Over 200 countries
Caramel E-150d
Cola, Cola Green Tea, Cola Lemon, Cola
Lemon Lime, Cola Lime, Cola Orange

Employees
Servings per Day
Website

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and Cola Raspberry.

92,400
1.6 Billion
www.coca-cola.com

MAJOR PRODUCTS OF COCA COLA

INTERNATIONAL

Product Name
Coke

Sprite

Fanta

Diet Coke

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Image

Minute Maid

Minute Maid Juices

Kinley Drinking Water

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3. Situation Analysis
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.
In 2002, the company grew their carbonated soft-drink business by nearly 250
million unit cases and generated record volumes. Because carbonated soft drinks
are the largest growth segment within the nonalcoholic ready-to-drink beverage
category measured by volume, that is why they are focusing more on this and
they are continually increasing the pace because they know that accelerating
this pace is crucial to their future success.
In Asian population, which is the satisfied customer of Coca Cola, is
approximately 4.2 billion and the average consumer enjoys close to four servings
of our products each month. Through an intense focus on Coca-Cola, innovation
and new beverages, the company has achieved volume growth of 22 percent in
2009.
So the company is emphasizing more in this area and is trying to develop a
strategy, which can increase the growth of the consumption of Coca Cola by the
people of Asia. Among the countries of Asia, Japan has the highest percentage,
which is about 29%. Among others, Pakistan, India and Bangladesh are those
countries where the average consumption is increasing day by day.

a) External Factors
i) Customers:

Customer satisfaction is considered as being the most important and vital things
in Coca Colas progress.
The company expects to increase volume worldwide by 7 percent with strong
international growth of 8.2 percent by 2010. It focuses on:

Customer Database
Getting new potential customers, side by side retaining old ones.
Giving customers more than just a soft drink.
Brand loyalty.

Marketing is a science, not an art. Give consumers more reasons to sue your
product.

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ii) Competitor Analysis:

MAJOR COMPETETOR: PEPSI CO.

PepsiCo is a world leader in convenient foods and beverages, with revenues of

about $27 billion and over 143,000 employees. The company consists of the
snack businesses of Frito-Lay North America and Frito-Lay International.
Pepsi-Cola beverages are available in more than 190 countries and territories. In
Asia, they selected Lahore to make their regional office. This was done in 1970.
This regional office is monitoring all the operations carried out in South West
Asia.
Pepsi Co. has focused on these marketing principles to attain their higher share
of market in Asia:

Measuring Satisfaction using various techniques

Increasing customer perceived value (CPV)
Increasing shareholder wealth. The earnings per share are expected to

grow to 116 Rs. In 2010.

Maintaining its supply chain management to ensure that the customer

gets Pepsi exactly when he requires.

Mass Marketing via advertising Pepsi with customer attraction areas e.g.
celebrities (Shahrukh Khan, Junaid Jamshed, Adnan Sami), Sports (Cricket),

concerts (Haroon etc)

Price Indiscrimination all over the region
Focusing on Brand image
Customer retention schemes such as lucky draw, meeting your favorite

celebrity etc
Adding social and ethical benefits to every bottle they sell.

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b) Internal Factors:
i) Company:
The Coca Cola Company has always focused on portraying a simple yet strong
brand image. Their motto was:

Know the most recognized word on the planet after OK!

In December 1991, a merger between Coca-Cola Enterprises and the Johnston

Coca-Cola Bottling Group, Inc. (Johnston) created 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.
Major Products (Asia):

Coca-Cola introduced in Pakistan 1953

Fanta introduced in Pakistan 1965
Sprite was introduced 1972
Diet Coke & Fanta Lemon 2001

ii) Context:
Any company can only exceed its sales and profits if it has an excellent
marketing strategy and if it is bringing innovation in its resources with every
passing day.
The company has generated free cash flow of $14.1 billion, up from $11.8 billion
in 2008, a clear indication of its underlying financial strength. This increase is
contributed to Coca Colas changing marketing strategy. They have focused on
increasing sales in Asia as a foremost ingredient since the last few years as coca
cola did not have a large market share previously. They have competed well
against Pepsi Co. in getting a reasonable market share.

4.
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Market Summary

a) Market Growth:
According to the 2005 Annual Report, the company sells beverage products in
more than 200 countries. The report further states that of the more than 50
billion beverage servings of all types consumed worldwide every day, beverages
bearing the trademarks owned by or licensed to Coca-Cola account for
approximately 1.5 billion. Of these, beverages bearing the trademark "CocaCola" or "Coke" accounted for approximately 78% of the Company's total gallon
sales.
Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed
as follows:

37% in the United States

43% in Mexico, Brazil, Japan and the People's Republic of China

20% spread throughout the rest of the world

In 2010 it was announced that Coca-Cola had become the first brand to top 1
billion in annual UK grocery sales.

b) Market Demographics:
In Pakistan Cokes share is only 36%.

POPULATION:
176,242,949 (July, 2009 estimated)
CHILDREN:
37.2% (65,607,612)
ADULTS:
62.8% (110,680,572)
CHILDREN EQUITY:
60% (14,643,619)
ADULT EQUITY:
40% (27,802,960)
TOTAL TARGET MARKET:
42,446,579

Coke targets both genders in Pakistan.

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c) Psychographics Segmentation & Market Trends:

Coke segments different income levels by packaging. Like for people with a low
level of income, it has small returnable glass bottle, for the mediocre class it has
non returnable bottle (NRT) and for people with a high level of income it has Coke
tin.
Sometimes, for the promotion strategy of coke, the Coke Company introduces
prizes on the top cover. So they segment people by benefit sought, i.e. by giving
them prizes.
Coke will always show activities, where people get together to enjoy moments of
togetherness with our brand. Research analysis indicates that youngsters love to
get together, and it is when they are enjoying themselves, that will consume
coke. For Pakistani youth, socializing with friends and family is core behavior in
their lives. Cokes brand personality is all about togetherness.
At times, Coca Cola Intl seeks to promote itself through sponsoring events. Since
many years, Basanat festival has somewhat become Coke Festival.

d) Market Needs:
In coke marketing, main idea is to serve it cold, so we can say that, they focus
more on hot areas of the world, i.e. middle east etc and there sale increase in
summer.
The market needs vary with time and Coke Intl. introduces its products over time
e.g. Coke Cherry etc.

e) Market Behavior:
The behavior of Pakistani market has always been orientated on WHATS COLD
GETS SOLD. People normally focus on buying anything that is cold either Pepsi
or Coke. The market behavior in Pakistan has not changed a lot as people are not
entirely health conscious but over a few years due to increasing awareness of
obesity, people have adopted an alienated behavior to soft drinks, which is why
Coca Cola Intl. has provided them with the perfect solution i.e. provide a product
exactly when it is needed. Yes, we are talking about Diet Coke; introduced in
2001 to meet the growing market needs.

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f) Market Share Growth Rate:

Worldwide on global level Coca-Cola is the most popular brand and market
leader and carry 60% of market share.
In Pakistan due to above reasons Coca cola is the market follower but still in a
very strong and stable position holding 36% of the local market share with a
growing and increasing market share every year.

GROWTH RATE IN MARKET SHARE GEOGRAPHICALLY

Unit Case Volume

2008 vs. 2009 Growth

Rate
5-Year
Annual
Growth
6%

Net
Operating
Revenues
16%

Operating
Income

Africa

2008 vs.
2009
Growth
10%

Eurasia

16%

13%

24%

38%

European Union

3%

2%

14%

16%

Latin America

9%

6%

24%

22%

North America

(1%)

1%

11%

1%

Pacific

7%

4%

7%

3%

Bottling
Investments
Worldwide

64%

N/A

53%

750%

6%

4%

20%

15%

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6%

g) Market Growth:

Coca Cola Company can also identify its expansion through the ANSOFF
approach.

Coca Cola in Pakistan is doing market penetration through the selling its
products to the business buyer, who are huge multinational organizations
like McDonalds, Subway, Dunkin Donuts & many more & they are also
keeping the local market in focus. Fri Chicks, AFC etc are examples of the
buyers in the local market. They are selling the Coca Cola as the only

beverage in their restaurants.

Market Development is exploring new markets for the products you are
already selling. Many flavors of coca cola are not being sold in Pakistan.
Coca cola can develop a new market if they introduce those flavors in
Pakistan.

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5.

SWOT Analysis:

Strengths
Internal

Weaknesses

-Popularity

-Word of mouth

-well known

-lack of popularity of many

-branding obvious and

Coca Colas brands

easily recognized

-Most unknown and rarely

-A lot of finance

seen

-customer loyalty

-result of low profile or non-

-International Trade

existent advertising
-health issues

Threats
External

Opportunities

-changing health-

-many successful brands to

consciousness attitude

pursue

-legal issues

-advertise its less popular

-Health ministers

products

-competition (Pepsi)

-buy out competition.

-More Brand recognition

SWOT analysis is a technique much used in much general management as well

as marketing scenarios. SWOT consists of examining the current activities of the
organization- its Strengths and Weakness- and then using this and external
research data to set out the Opportunities and Threats that exist.

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a) Strengths:
Coca-Cola has been holding a large part of world culture for a very long time.
Coca cola has focused on brand image and brand loyalty along with providing
supreme taste and quality. 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).
Additionally, 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.
In Pakistan, people dont care before drinking that whether it is Pepsi or
Coke. They dont actually differentiate between these two brands in order to
their tastes.
Consumers basically drink what they get.
They believe on WHATS COLD GETS SOLD
Consumers availability in brands is basically works like:

Push availability.
Pull consumers demand.

For this reason Coca-Cola Intl has provided their coolers and freezers in the
market. They have maximum number of coolers and freezers in the market. They
provide this infrastructure free of cost just to provide child coke to their
customer, which they want to be purchase.

b) Weaknesses:
Coca-Cola has had some "declines in unit case volumes in the South East Asia
due to reduced consumer purchasing power.
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Coca-Cola contains caffeine and caramel which can adverse effects on the teeth
(if prolonged) 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.
Another weakness which may be considered regionally is its sugar content. Pepsi
Co. makes its sales only because Pepsi is so far, having a larger market share
only because it is more sugary and Asian people focus on sugary drinks.

c) Opportunities:
Brand recognition is an important factor in affecting Coke's competitive position.
Coca-Cola's brand name is known well throughout 94% of the world today. The
main concern of Coca Cola Marketing Strategies has been just to improvise its
system and make it even more recognizable. The bottling system of Coca Cola
allows the company to take advantage of its growth opportunities. The coke
team has been working strenuously in Pakistan gaining supporters via Mass
marketing and Promotional tools.

d) Threats:
The main threat is Price. A small increase in price, lets say just 1 rupee will have
a drastic effect on sales. Only because people will go for the next available
substitute i.e. Pepsi so price change is a major factor in affecting Sales of coca
cola and in marginal profits. Coca Cola can face major losses if it goes for a
sudden increase or decrease in price.
Contradiction: Some analysts assume that new competitors can also have an
effect on Coke Sales. But actually, new comers have some what a very less
contribution because Soft Drink industry is in itself a very vast and strong
industry. New competitors can never make their way up to Cokes level in a even
10 years to come.
A possible threat may be the increasing health awareness. People have recently
become more conscious about health issues. 60% of the worlds population does
not drink carbonated drinks (due to poverty and /or health issues).

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Another threat is the increasing rivalry between Pepsi and Coke. This has
somewhat changed customer perceived value and now both competitors have to
respond to an ever increasing demand and attributes of consumers.

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6.

Competition

The major competition faced by Coca Cola International is Pepsi Co. PepsiCo is a
world leader in convenient foods and beverages, with revenues of about $27
billion and over 143,000 employees. The company consists of the snack
businesses of Frito-Lay North America and Frito-Lay International; the beverage
businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and
PepsiCo Beverages International; and Quaker Foods North America, manufacturer
and marketer of ready-to-eat cereals and other food products. PepsiCo brands
are available in nearly 200 countries and territories.

Major Pepsi Co. products include:

Pepsi
Teem
Mirinda
Pepsi Max
Pepsi Lemon
Pepsi Blue
Mountain Dew
7up

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7.
Regulars:

Coke Classic
Vanilla Coke
Cherry Coke
Caffeine free Coke
Fanta
Sprite
Sprite Ice
Sprite Duo
Coca Cola Black
Limca
Caffeine free Diet Coke
Diet Cherry Coke
Diet Coke with Lemon
Diet Vanilla Coke

Sports Drinks:

PowerAde
Nestea
Aquarius
Vitamin Energy

Juices/Water:

Minute Maid
Maaza
Kinley

Energy Drinks:

Full Throttle
Barqs
Tab
Burn

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Product Offering

8.

Keys to Success

Coca Cola marketing team focuses not only on the results as well as the tasks
assigned.

They firmly believe if you want to establish a clear image in the minds

of consumers, you first need a clear image in your own mind.

Since the major competitor is Pepsi Co. so Coca Cola Intl has focused

on neutralizing the competition.

Kill the category: If Pepsi Co. launched Crystal Pepsi then Coca Cola

Intl launched Diet Coke.

The Coca Cola marketing team maintained their focus strongly on the
product itself. When they changed bottle shape, many people started

buying bottles instead of the drink itself

The Coca Cola team learnt from everything. Even if a customer said
no, they focused on why did he say no and then found out ways on

how to solve that issue.

Formula for positioning success :
Define
Over deliver
Claim
Succeed
They specified the criteria for each product offered because if you
dont specify the criteria for choosing, consumers will develop their
own, which is dangerous.

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9.

Critical Issues

A common criticism of Coke based on its allegedly toxic acidity levels has been
found to be baseless by researchers; lawsuits based on these notions have been
dismissed by several American courts for this reason. Although numerous court
cases have been filed against The Coca-Cola Company since the 1920s, alleging
that the acidity of the drink is dangerous, no evidence corroborating this claim
has been found. Under normal conditions, scientific evidence indicates CocaCola's acidity causes no immediate harm.
Coca-Cola has been criticized for alleged adverse health effects, its aggressive
marketing to children exploitative labor practices, high levels of pesticides in its
products,

building

environmental

plants

destruction,

in Nazi

Germany which

monopolistic

business

employed
practices,

slave

labor,

and

hiring

paramilitary units to murder trade union leaders. In October 2009, in an effort to

improve their image, Coca-Cola partnered with the American Academy of Family
Physicians, providing a $500,000 grant to help promote healthy-lifestyle
education; the partnership spawned sharp criticism of both Coca-Cola and the
AAFP by physicians and nutritionists.

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10.

Marketing Strategy

Our local marketing strategy enables Coke to listen to all the voices around the
world asking for beverages that can span the entire spectrum of tastes and
occasions. What people want in a beverage is a reflection of who 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.

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11.

Mission

Our mission statement is to maximize shareowner

value over time

In order to achieve this mission, we must create value for all the constraints we
serve,

including

communities.

our

The

consumers,

Coca

Cola

our

customers,

Company

creates

our

bottlers,

value

by

and

our

executing

comprehensive business strategy guided by six key beliefs:

1. Consumer demand drives everything we do.

2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the nonalcoholic ready-to
drink beverages they want to drink throughout the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We will lead as a model corporate citizen.
Everything we do is inspired by our enduring Mission:
To Refresh the World...in body, mind, and spirit.
To Inspire Moments of Optimism...through our brands and our actions.
To Create Value and Make a Difference...everywhere we engage.

7.

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12.

Marketing Objectives

The ultimate objectives of our business strategy are:

To increase volume
Expand our share of worldwide nonalcoholic ready to drink beverages

sale
Maximize our long-term cash flows
Create economic value added by improving economic profit.

The Coca Cola system has more than 16 million customers around the world that
sells or serves our products directly to consumers. We keenly focus on enhancing
value for these customers and helping them grow their beverage businesses. We
strive to understand each customers business and needs, whether that
customer is a sophisticated retailer in a developed market a kiosk owner in an
emerging market.

Aims:
People: Being a great place to work where people are inspired to be
the best they can be.
Portfolio: Bringing to the world a portfolio of quality beverage brands
that anticipate and satisfy people's desires and needs.
Partners: Nurturing a winning network of customers and suppliers,
together we create mutual, enduring value.
Planet: Being a responsible citizen that makes a difference by helping
build and support sustainable communities.
Profit: Maximizing long-term return to shareowners while being
mindful of our overall responsibilities.

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13.

Financial Objectives

All Coca Cola Intl. plants setup their own goal to achieve the objective.
The company goal is:

To increase sales volume and gain market leadership in

Lahore.
The company aims to achieve sales level of $35,000,000,00 by the end of year
2010. The sales level for year 2009 was $31,944,000,00.

14.

Target Markets

The target market for Coca cola is very wide as it satisfies the needs for many
different consumers, ranging from the healthy diet consciousness through Diet
Coke to the average human through its best selling drink regular Coke. Most
Coke products satisfy all age groups as it is proven that most people of different
age groups consume the Coca Cola product. This market is relatively large and is
open to both genders, thereby allowing greater product diversification.
Cokes commercials basically based on young generations, so, the young
generation is the target market of Coke because they want to represent Coke
with the youth and energy but they also consider about the old people they take
then as a co-target market.

15.

Strategy

The strategy for the future of the company is very straightforward. The
marketing strategy for the year 2010 is as follows:
Accelerate carbonated soft-drink growth, led by Coca-Cola.
Selectively broaden the family of beverage brands to drive profitable
growth.
Grow system profitability and capability together with our bottling
partners.
Serve customers with creativity and consistency to generate growth
across all channels.
Direct investments to highest potential areas across markets.
Drive efficiency and cost-effectiveness everywhere.

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16.

Positioning

Product Range:
The total range of Coca Cola Intl. in Pakistan includes:

Coke.
Sprite.
Fanta.
Diet Coke.

Bottle Sizes:
The company offers their products in different bottle sizes which include:

SSRB
LRB
NRB
PET
CANS

Standard Size Returnable Bottle

Litter Returnable Bottle
No Return Bottle or Disposable Bottle
1.5 Liter Plastic Bottle
Tin Pack 330 ml

Packing:
Coca cola products are available in different packaging:

24 Regular Bottle Shell.

6 Bottle Pack for 1.5 PETs.
12 Bottles in a pack for Disposable Bottle.
24 Cans in one crate.

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17. Marketing Mix

The marketing mix is probably the most crucial stage of the marketing planning
process. 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.

a) Product:
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.

b) Promotion:
Over the time Coca Cola has spent millions of dollars 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.
There are a number of branding strategies:

Generic brand strategy

Individual brand strategy
Family brand strategy
Manufacturers brand strategy
Private brand strategy
Hybrid brand strategy

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Coca Cola utilizes the Individual brand strategy as Coca Colas major products
are given their own brand names e.g. Fanta, Sprite, Coca Cola etc although they
may be presented as different lines they operate under the name of Coca Cola.

c) Place:
The Coca Cola Company has always focused wide scale distribution. This is the
reason, 94% of the worlds population knows about Coke. Coca Cola is the
most recognized word after OK.
Coca Cola sets its own distributions directly to stores. Stores include a wide
variety

of

Supermarket,

Marts,

Convenience

Stores,

Retail

Stores

and

Departmental Stores. The channel distribution of Coca Cola Intl is extremely

large.
Over time, they have produced many products and thus have increased number
of warehouses for specific products.
Coca Cola Intl has also improved services via setting up a national service
network.

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d) Price
Since Coca Cola Intl faces a major threat from its competitor Pepsi Co., so
naturally the Pricing is done keeping in view the increasing rivalry with Pepsi.
Pricing is basically standard for all over the world. Price changes occur seldom
after a longer period of time say, a year etc. Mostly prices are devoid of
governmental and/or political laws and regulations but in Pakistan, due to an
ever increasing rate of Inflation, prices have increased in a short span of time.

JO CHAHO HO JAYE,
COCA COLA ENJOY!!!

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18.

Financial Analysis

This company is financially very strong. It is due to the strong finances, the
company is still surviving the ups and down of the business world. The financial
report of Coca Cola Company of the year 2008 and 2009 along with the
percentage change is as follows.
Year Ended December 31,
(In millions except per share data, ratios and growth rates)

Net operating revenues

Operating income
Net income
Net income per share (basic)
Net income per share (diluted)
Net cash provided by operating
activities
Business reinvestment
Dividends paid
Share repurchase activity
Free cash flow
Return on capital
Return on common equity
Unit case sales (in billions)
International operations
North America operations
Worldwide

2009

2008

31,944
8,446
5,874
1.601
1.601
4,110

28857
7,252
6,027
0.882
0.882
3,585

1%
45%
82%
82%
82%
15%

(963)
(1,791)
(277)
3,147
26.6%
38.5%

(779)
(1,685)
(133)
2,806
16.2%
23.1%

24%
6%
108%
12%
-

12.5
5.3
17.8

11.9
5.2
17.1

5%
2%
4%

2008 basic and diluted net income per share included a non-cash gain of $.02
per share after taxes, which was recognized on the issuance of stock by CocaCola Enterprises Inc., one of the equity investors of this company.
2009 basic and diluted net income per share includes the following charges :

$.24 per share after income taxes related

Realignment.
$.19 per share after income taxes related to the
charges recorded by the investors of the company.
$.16 per share after income taxes related to the
bottling, manufacturing and intangible assets.
$.05 per share after income taxes related to the
discrimination lawsuit.

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to

an

organizational

Company's portion of
impairment of certain
settlement terms of a

19.

Break Even

Break Even is calculated as follows:

Total

Break Even =

Cost

Total Variable Costs

(1
)
Total Sales

For Coca Cola Intl. the break even calculated for the Year 2009
was:
Break Even = $11,088,000,00
Source: http://www.thecocacolacompany.com/ourcompany/company_reports.html

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20.

Sales Forecast

Sales
and
Income
Data in
Millions

2005

2006

2007

2008

2009

Net
Sales

$21,742

$23,104

$24,088

$28,857

$31,944

Net
Income
(Profits)
Units
sold in
Billions

$4,847

$4,872

$5,080

$5,981

$5,807

19.8

20.6

21.4

22.7

23.7

Unit Sale in Billions

35

31.9
28.8

30
25

23.1

24.8

20.7

Unit sale in Billions

20
15
10
5
0

2005

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2006

2007

2008

2009

21- Implementation & Control

Implementation:
Currently, Coca Cola Intl. issuing the following techniques to increase
shareholders wealth, maximize customer satisfaction and satisfy the market:
Value Positioning
Value Pricing
Promotional Pricing
Differentiation
o Image
o Product
o Channel Personnel
Market Strategy
o Niche Marketing
o Mass Marketing

Control:
Coca Cola Intl. has controlled sales via:

Geographic Market Organization

Opening plant in various countries (in Pakistan they have 10 plants) so

as to reduce taxes.
They have invested $5.6 million in their R&D facility to maintain Product

Quality Control.
Their primary concern right now is penetrating into the Pakistani market
via strong attacking techniques whereby maintaining defense strategy

against Pepsi Co.

The overall strategic control is implemented in all plants and factories
throughout the 200 countries which Coca Cola proudly serves.

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21.

Recommendations

After completing our project we have come up with following

recommendations for the Coca Cola Company, which are following:

Currently in Pakistan there are only two flavor of Coke available, company

can extend their portfolio by introducing new flavors.

According to the survey conducted by an international firm Pakistani
people like less sweet cola drink. So the Coca-Cola Company should think
about bringing innovations in their products for example new diet flavors

or maybe more juices so as to fulfill the need of local market.

Marketing team should try to increase the availability of Coke in rural

areas.
Coca Cola Company should think about producing Coke Can locally.
Because currently coke Cans are only smuggled from abroad and sold at
high prices. The Coca Cola Company can capitalize on this factor.

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22.

Appendixes

www.cocacola.com
www.thecocacolacompany.com
www.wikipedia.com
Principles of Marketing by Philip Kotler
Strategic Marketing by David W. Cravens
Local Newspapers: Dawn, The Nation and The News
International Herald Tribune Newspaper
The Nikkei Weekly magazine, Japan (Winter, 2009)

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