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Strategic Marketing Plan for Coca-Cola - 2016

Technical Report April 2016


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Running head: STRATEGIC MARKETING 1


Strategic Marketing Plan
Coca-Cola Pakistan
Supervisior: Dr. Rizwan Raheem Ahmed

Sub mitt ed b y:

A je et Kum ar

Muham mad
Mohsin Mujtab a

Javed Jumani
STRATEGIC MARKETING PLAN COCA-COLA 2

Executive Summary

This report aims to highlight the Marketing Planning of Coca Cola Company. It discusses the

current strategic marketing strategies that are being planned and implemented by the company

for attracting and retaining the customers. It provides an environment analysis of the company

using SWOT analysis framework. It uses the Porters Five Forces Model to explain the

competition existing within the beverage industry of Pakistan. The PEST analysis framework is

taken into use for explaining the variables of Pakistans external environmental that can

potentially have an impact over the beverage industry as a whole. Furthermore, the industry

analysis and competition analysis has been done to provide a better picture regarding where the

Coca Cola company exists in the Pakistani Market.


STRATEGIC MARKETING PLAN COCA-COLA 3

Table of Contents

Introduction ..................................................................................................................................... 5
Mission ........................................................................................................................................ 6
Values .......................................................................................................................................... 7
SWOT Analysis .............................................................................................................................. 7
Strengths ...................................................................................................................................... 7
Weakness..................................................................................................................................... 8
Opportunities ............................................................................................................................... 8
Threats ......................................................................................................................................... 8
PEST Analysis ................................................................................................................................ 9
Political Factors ........................................................................................................................... 9
Economic Factors ........................................................................................................................ 9
Social Factors ............................................................................................................................ 10
Technological Factors ............................................................................................................... 10
Competitor Analysis ..................................................................................................................... 10
Differential Advantage.................................................................................................................. 12
Porter`s five forces analysis .......................................................................................................... 14
Existing Rivalry......................................................................................................................... 14
Threat of New Entrants ............................................................................................................. 14
Threat of Substitute Products .................................................................................................... 15
Supplier Power .......................................................................................................................... 15
Bargaining Power of Buyer ....................................................................................................... 15
Industry Analysis of Beverages Market ........................................................................................ 16
Merger and acquisition .............................................................................................................. 16
Globalization ............................................................................................................................. 16
Target Market ............................................................................................................................ 17
Table One: Target Markets ....................................................................................................... 18
Category ........................................................................................................................................ 18
Rank within category ................................................................................................................ 18
Rank within category ................................................................................................................ 18
Strategic Action Plan .................................................................................................................... 18
STRATEGIC MARKETING PLAN COCA-COLA 4

Objective Strategies ...................................................................................................................... 19


Marketing Communication ........................................................................................................... 20
Marketing Penetration Pricing strategy ..................................................................................... 23
Distribution Channels ................................................................................................................... 24
Significant Focus on Carbonated Drinks ...................................................................................... 25
Financial Position of the Company ............................................................................................... 25
Conclusion .................................................................................................................................... 26
References ................................................................................................................................. 28
Appendixes ................................................................................................................................... 30
Appendix # 1 ............................................................................................................................. 30
Appendix # 2 ............................................................................................................................. 31
Appendix # 3 ............................................................................................................................. 32
Appendix # 4 ............................................................................................................................. 33
STRATEGIC MARKETING PLAN COCA-COLA 5

Strategic Marketing Report of Coca Cola

Introduction

As a Chandler founded the Coca Cola Company back in 1886 and it is headquarter in

Atlanta, Georgia, United States. It is one of the top companies of the world and has remained as

the number 1 brand in terms of brand value from 2000 to 2013 (CCBPL, 2016). It is currently

ranked as third top brand in terms of brand value after Apple Inc. and Google Inc. The reason for

choosing Coca Cola for this report is that wide range of data is available on the company and

competition between Coca Cola and Pepsi is considered to be the top rivalry between two

established brands in the world. Coca Cola is a multinational corporation having its route in

almost every part of the world. It is currently involved in retailing, marketing non-alcoholic

beverage syrups, manufacturing and other stuff. The parent product of the company is Coca-Cola

drink, which is a flagship product, invested by pharmacist Pemberton in Columbus. Muhtar Kent

is the current CEO and chairman of the company (Fittzsimmons, 2011).

In Pakistan, Coca Cola is operating under the name of Coca Cola Pakistan Beverages

Limited and its products are available in every cities, villages, and districts of Pakistan. In the

global market, Coca Cola is the market leader for the beverage industry as it holds 48.6% as per

the recent statistics (Wijngaarden et al, 2012). Pepsi is the direct competitor of Coca Cola

holding significant 20.5% share of the total beverages industry. It means that Pepsi stands

nowhere close to Coca Cola when it comes to the international market. However, talking

specifically about the market of Pakistan, it can be seen that Pepsi holds a much larger share of

the total market as compared to Coca Cola. Coca Cola marketing strategies and supply strategies

have proven to be ineffective in Pakistan for leaving Pepsi behind. Therefore, it becomes

important to analyse the marketing strategies of Coca Cola to analyse the effectiveness of
STRATEGIC MARKETING PLAN COCA-COLA 6

marketing strategies along with analysing the impact of external factors in impacting the

operations of the company (Walston, 2014).

Source: Euro monitor (2015)

Mission

The mission statement of a company helps to understand existence reason of an

organization. Coca Colas mission is to refresh the world, make a different, create value, and

inspire the optimism and happiness moments.

To refresh the world in mind, body and spirit. To inspire moments of optimism and

happiness through our brands and actions (Coca Cola, 2016, p.1)
STRATEGIC MARKETING PLAN COCA-COLA 7

Values

The major values of the company include portfolio, partners, planet, people and

productivity and profit. The company wants to create a culture where people are inspired to

perform at their best possible level (The Beverage Marketing Corporation, 2007).

SWOT Analysis

The framework SWOT analysis is taken into use to analyses the internal and external

environment of an organization. It is one of the common frameworks used by organizations

across the globe (Collier, 2014). It includes the internal environment analysis using strengths and

weaknesses of the organization and the external environment analysis using opportunities and

threats (See Appendix # 2).

Strengths

One of the key strength of Coca Cola is that it has the strongest brand value in the

international market. There are many customers in both international and local market of

Pakistan that prefer Coca Cola to Pepsi. Coca Cola has the ability to make significant

investments in Marketing to improve its market share in the Pakistans market. The international

leadership of Coca Cola is recognised across the globe. The company has maintained strong

relationship with the strategic partners (Nesheim et al, 2015). The company is offering wide

range of products. As the revenue is being generated from different regions of Pakistan, risk is

diversified.
STRATEGIC MARKETING PLAN COCA-COLA 8

Weakness

Coca Cola does not have its own bottle manufacturing setup as it has in the international

market. Therefore, the reliance on the strategic partners is high. There have been times where

Coke was not available in the market which was mainly because the Mehran Bottlers in Pakistan

could not provide sufficient supplies of bottles to the company. Coca Colas supply chain

management is not as effective as the supply chain of Pepsi co in the region of Pakistan (Ismail

et al, 2013).

Opportunities

As the standard of living of Pakistans people is changing rapidly, it can be seen that

people are eating regularly in restaurants and other places where leisure time is being spent. Coca

Cola has the opportunity to create strategic alliance with hotels and restaurants where the

demand of beverages are high. Coca Cola can be found in many of the restaurants of Pakistan

(Mukhtar, 2013). Hence, it can further improve the supply chain and marketing by creating

strategic alliances. Coca Cola can take advantage of various marketing platforms such as social

media marketing to enhance its sales.

Threats

The key threat, which is being faced, by both Coca Cola and Pepsi is that local

manufacturers are keen to enter the market and capture market share. Brands like Gourmet are

being introduced in the Pakistani market, which can be seen as the direct competitors for the

company (Asmine 2015). It has also been observed that the people of Pakistan are becoming

more health conscious due to which the consumption of beverages might get decreased with the
STRATEGIC MARKETING PLAN COCA-COLA 9

passage of time. The campaigns against soft drinks are common in the international market,

which can potentially impact the operations of the company.

PEST Analysis

As shown in Appendix 3, PEST analysis is a framework, which is used to identify the

attractiveness of a region where business is being operated. It discusses the Political, Economic,

Social, and Technological factors that do not only impact the business, but also the overall

industry (Khan and Lee, 2015).

Political Factors

Analyzing the Political condition of Pakistan, it can be analyzed that the political

condition is not very stable. In different parts of the country, strikes and other activities take

place, which can have a negative impact over the sales and profitability of the company. For

instance; Coca Cola and Pepsi are being sold to schools, universities, hotels, restaurants, and

other places. In case the any region of Pakistan is closed due to political reasons, the sales of the

company will be impacted negatively.

Economic Factors

The economic conditions of Pakistan are not very attractive in the recent years. However,

as the price of Coca Cola is not high and the demand is very stable, the consumption of Coca

Cola is not being impacted by the economic factor to a significant level. The purchase power

parity of Pakistan has decreased in recent years, but the sales of Coca Cola are not impacted by

these economic factors to a significant level.


STRATEGIC MARKETING PLAN COCA-COLA 10

Social Factors

Social factors have significant impact over the sales and profitability of a business. For

instance; the awareness of being health conscious has encouraged many consumers of Coca Cola

and Pepsi to shift from beverages consumption to those products, which are healthier like Juices.

Additionally, there are many people living in Pakistan who still prefer to consume local products

and services as compared to the international brands. This is one of the reasons why local

manufacturers like Gourmet have been success in some parts of the country (especially in

Punjab).

Technological Factors

It is a known fact that Coca Cola one of the top brands in the world. It has the highest

level of technology, which is required for producing quality products along with providing high

level of after sales service. Coca Cola has been able to adopt with the changing technology in

both local and international market effectively.

Competitor Analysis

Firstly company analyses the state of an industry, it determines important factor and how

to create a strategy to make a profit eventually. So the coca cola company is focused on the

beverage market of or soft drink industry competition, which is totally different from other

industry competition structure.so the coca cola company, is a market leader and the first mover

in the beverage industry and also has the best brand image all over the worldwide. The main or

primary competitor of coca cola is PepsiCo; because The Coca Cola Company and PepsiCo

range of products or varieties they have almost similar products. Both of the companies have
STRATEGIC MARKETING PLAN COCA-COLA 11

similar nature of competition, so the targeted audiences and markets are same, so products are

similar. The Brands varieties range of the products of these two companies describes in below in

the table.

Source: Coca Cola (2016)


STRATEGIC MARKETING PLAN COCA-COLA 12

Differential Advantage

The Coca Cola Company is the first mover in the soft drink industry and the company has

recognized a good brand image, coca cola is the largest investor in the soft drink industry and

also being enjoyed market leader in the worldwide. Most likely popular products are classic

coca cola because the consumers are more like that product of his different taste and as well and

his packaging of bottles and style. When Coca Cola is decided to change the formula of coke,

start new coke the response of our consumers in this new formula coke is not good, so the

customers were not like this new coke. Suddenly the company was rapidly restarted coke

formula to satisfy the needs and demands of audiences in the same Coca Cola Classic.

Coca cola has good brand equity and innovation products time to time, increase because

the products are differentiation and have a good communication system. Coca cola annually

spends 20 percent of advertisement budget to continue for maintaining differentiation strategy

and communication system. To increase product quality and uniqueness so that prices are high to

satisfy customers demands, this is a great chance of capturing the audiences confidence to

make first-class charged prices cover the extra production cost (Porter, 2006). Coca cola is

financially too strong in the soft drink industry, so that company is spending more money in

differential strategies to stable as the market leader in worldwide.

Company analysis external environment, it refers to present a model of five forces by

(Porter, 2008). Moreover to explore the new trends of beverage industries and also recognize

important factors to calculate and evaluate the current situation of opportunities and threats,

though (SWOT analysis) in front of the present environment.


STRATEGIC MARKETING PLAN COCA-COLA 13


STRATEGIC MARKETING PLAN COCA-COLA 14

Porter`s five forces analysis

Existing Rivalry

Coca cola is a market leader thought out the world wild in beverage or soft drink market

industries. A competitor of coca cola is Pepsi Co, but Coca Cola Company is too larger than

Pepsi, but Pepsi Colas has to market control in the United States market. There are main other

competitive companies in beverages a number of categories, but the coca cola and PepsiCo

dominate in the market world wild none of companies beat the market position of these two

companies. As a SWOT analysis of Coca Cola and Pepsi Co are strengths and weaknesses

almost similar.

Threat of New Entrants

The new competitor entrants threat in this industry is low because there is too strong

competitive industrial pressure because coca cola and PepsiCo they have a good brand name in

the beverage market so it's not an easy rival for the new company. There are many barriers to

new entrants to distribution channel only two companies existing they have distributed

throughout the worldwide, so it is challenging new companies, both have a huge investment in

manufacturing and also they have good transportation and distribution network throughout

worldwide. So that's why these have large economies scale it helps to cut a cost of production.

These factors affect the new entrants would not able to compete at low cost products, so that's

why the new entrants river is very low.


STRATEGIC MARKETING PLAN COCA-COLA 15

Threat of Substitute Products

With the soft drinks industry threat of substitute products is very high, for substitutes of

coca cola is, e.g., energy drink water, hot tea and cold tea, mineral water, coffee, juices. The

Coca-Cola Company has focused on these sectors to increase as well. New trends of the market

are focused on health, conscious so the consumer is preferred to bottle water, and energy drink

water and juices increasingly popular with this trend because they advertised those products are

healthier than soft drinks. Caffeine is included in the soft drink so people take for this purpose,

coffee; tea is also a substitute product. These are increasing numbers of varieties in the soft drink

to change the consumer tastes. Overall the strong threat substitutes products qualities and

innovation.

Supplier Power

Coca cola has low supplier power, in this case, this is the largest beverage company in

worldwide and supplier is a manufacturer bottling since the coca cola company have specific

stakeholder in many bottling components. The manufacturing of this bottling equipment can be

easily supplied other companies so that why supplier bargaining power is low. The raw materials

it includes sweetie and water are normal, so without any problem supplier are easily changed...

Bargaining Power of Buyer

In coca Cola Company has high buyer power, these beverages are available at

supermarket, cafeterias and discount stores. For the resale our products, these companies

distribute soft drink in these stores. So the buyer needs to have the mostly large amount of

discounts. Supermarkets and large stores buy a large amount of beverages.so the company,
STRATEGIC MARKETING PLAN COCA-COLA 16

allowing them at lower price rate. Now a days consumers mind shift and focused on healthy

foods and drinks, and also buyer or move to demand of consumer healthy adoptions they drive

substitute products of soft drink.

Coca cola has little bargaining of bottling partners, and the company is totally dependent on

bottler to sell our product in the market.

Industry Analysis of Beverages Market

Merger and acquisition

Beverage industries are at almost the peak level of maturity, so that will lead to change

the soft drinks industry trend because when any trend at a mature level at the then go down side

this is a market trend (Elmore, 2014). So it leads change through create merger and acquisition

through looking to generate more revenue and growth increased economies of scale. A number

of companies seeking to adopt merger and acquisition to improve growth revenue and market

share. One of the best examples of industry analysis in beverage market is PepsiCo purchase

Quaker oats. So the PepsiCo with the help to explore business in an energy drink sector (Data

monitor, 2005). Coca cola is the first mover in the beverage market and also the coca cola

company missed market leader in the soft drink industry so this is a good opportunity.

Globalization

Now a day, Coca-Cola is one of the best soft drink companies in the world, when the

initial started coca cola rapidly growing and expanding our business in the beverage industry

through worldwide. Due to fast growth in soft drink industry Coca Cola Company is ranking as

largest the company in the world. Coca cola is globalizing the company and it operates more
STRATEGIC MARKETING PLAN COCA-COLA 17

than 200 countries and they have more than 84000 numbers of suppliers. Coca Cola also

captured almost 70% percent market share in the beverage industry in worldwide. The Coca Cola

Company has a variety of products it remains to the commitment of the company that all over

product provides the refreshing, sustaining and quality remain same taste across the world.

Position of Coca Cola Company in global market in the beverage industry, coke is a market

leader because the varieties of products, quality and services, and also strong communication

channel across the world (Egol et al., 2014).

Target Market

Coca cola is globalizing company and it has a good brand name throughout worldwide.

So they have a huge amount of consumers ranging and satisfied their different needs. Coca cola

has proven that to satisfy all levels of age groups they are consuming the coca cola products. So

the targeting to focus on the best age grouped is 18 to 34 ages of people, because this age of

groups very huge volume of potential. Because those age groups who live home up to 3

members. The second category of age-targeted is 18 to 24-year-olds, coca cola does not target

this age group because this not large sufficient to target due to a consumer and the brand

reputation is already established. So the best option is to select and combining top two age

ranking groups of customer.


STRATEGIC MARKETING PLAN COCA-COLA 18

Table One: Target Markets

Category A B D Rank AxD Rank

(000) % of Index within (VP) within

Users category category

18-24 17381 16.0 123 1 2,197,863 3

25-34 28605 26.4 114 2 3,260,970 1

3 Person or 65345 60.3 109 1 7,122,605 1

more

Source: Data Ahmad (2015)

So this table is defined the combination of these two age groups have a large amount of

targeted existing consumers in this category. First age group in the above table show that 25-34

age groups have a large volume of potential (3,260,970) so that the volume is seventy percent as

primarily targeted due to large significant volume. And the other hand second age group is 18-24

category target volume of this age group is (2,197,863) so that category weight is thirty present

as a secondary target age group.

Strategic Action Plan

Strategy word first used by American Army which means design to achieve long term

profitable goal. After that beginning business people use these terminologies in order to achieve

their long-term planning/ goal to fulfill their organizations profitable needs.

Coca Cola is worlds best platform to design strategic objective and action plan. Action plan

stipulate action, which required highlighting utmost organizational issue as well as to touch with
STRATEGIC MARKETING PLAN COCA-COLA 19

its associated objective. While it is also define who will attain this goal as per its time line. The

layout of strategic action is depending upon the nature of necessities of organization. But overall

strategic action plan define the strategy to overcome the current issue, which face by

organization that massively hit its goal and profitability.

In Coca Cola if we compare its own market share in Pakistan as well as globe, will

surprise to get result that in Pepsi beat Coke in Pakistan but its vice versa around the world. So

what is the issue behind it, what strategies required designing to overcome this issue? What

action required addressing this issue? So after careful analysis of we comes to know the effective

distribution, product availability and product visibility is more critical factor need to design the

strategy to counter this pace.

Objective Strategies

The action plan may define its objective. The designed objective is very much important to

promulgate to face real challenge and get out possible solution. The define objective must be

vivid and address issue in proper way. The objective define its over all problem scenario so it

should be SMART (specific, measureable, achievable, realistic and timeliness). It is like wheel

brow to carry the specific question towards its nearest answer. Following bullet points are

strategic objective that needed to cover in this marketing plan. Coca Cola always design its

strategic plan only for 3 years. So below mention objective must cover before 3 years.

Redefine distribution channel (Distributor, Wholesaler and retailer). Pepsi has strong

presence in Pakistani Market comparatively Coca Cola.

Make sure to availability and visibility of product in every corner of Pakistan.


STRATEGIC MARKETING PLAN COCA-COLA 20

The Coca Cola is not up to mark in taste as the people of Pakistan perceived (We like

some more sweet in any drink for instance Pepsi).

Coke must further expand its product portfolios per Market Research like Sting in Pepsi.

Marketing Communication

It is unquestionable that Coke is no 1 beverage company in the world. But the scenario is

quite different in Pakistan. Above defined objective in bullet points are weaknesses in Pakistan,

thats reason Coke is not able to make space in Pakistani Market. The defined objective need to

address through marketing / communication strategy. Wish the proposed communicational

strategy would prove suitable strategy to boost up Cokes market share in Pakistani market. Coca

Pakistan offers vary of product portfolio like as Coca-Cola (Classic), Sprite, Fanta, Coke Diet,

Kenly (Water) brand, with unique bottling style more famous in the World. Now a days Coke as

different communicational strategy as per their culture of hosting country that prove best strategy

as previously they practiced. Marketing / Communicational strategies is actually planning /

methodologies way to bring right product at right time in right price to the right place with

utmost executional of promotional strategy. Coca Cola is always designed unique marketing mix

to make it better than best (Coca Cola, 2016).

In Product Life Cycle there is distinct product process phases like Born, Introduction,

Growth, Maturity and Decline (Ahmed et al., 2016). In western region such as USA, Europe

Coke is on Maturity stage meanwhile the sale remains on consecutive stage a slight chance to

turn back sale in growth phase. It is vivid opportunity for Coke to focus on untapped market in

Asia or those regions in the world where Coke is still on combating stage. This is the fertile time

for Coke to make their communicational strategy be unique be smart in Asian market.
STRATEGIC MARKETING PLAN COCA-COLA 21

Coke ought to focus on effective distribution strategy in Pakistan. Gray Armstrong writer

of principle of Marketing say The success on any product depend upon Product Availability in

customer doorstep in every retailer, every SME even every corner of Pakistan from Karachi to

Khyber. Coke may focus on Marketing Research and Research Development to understand

Customer Buy logy, focus on product extension line as Pepsis Dew, Sting with multiple flavor

/ product range to turn them self into growth phase.

In Product Development they need to focus / expand their product line with research and

development. For future Coke must focus to expand them self in consumer health to improve

consumer experience with new feeling, funny, unique and new stylish.

In Advertising strategy Coke must focus Bill Board with coming soon and bring unique

idea on billboard not as cultural add like others. TVC add like now a days seen during World

Cup Go Coke Pakistan. Over their needs to raise the emotion of People of Pakistan through

patriotism TVC. Although the best strategy of Coke evergreen is Coke Studio, while online add

like social media one of the best mod to pursuit your message to youth (upcoming leader). Coke

use both strategy Pull and Push in Sales Promotion.

In promotion strategy Asian people are dying heart friend of Cricket So Coke needs to

sponsor / organize different matches, tournament, and world cup matches, because this is only

fertile time to get people visibility on peak level. Furthermore it is also way to recall your brand

in the viewers mind. As per research in Asian people are fond of Cricket on maximum level

secondary they focus on their cultural game, like Hockey in Pakistan and India. But make sure in

this era young people also getting interest in Football matches and its world cup matches. Coke

also need to take sponsorship on Countrys cricket dress for maximum visibility in people mind.
STRATEGIC MARKETING PLAN COCA-COLA 22

As since promulgating Coca Cola, the genius founder of coca Cola, they are the main brain

that brought Coca Cola name and now Coke is only worlds best beverage company presence

more than 180 Countries of the world. The co-founder of Coke and their entire team mainly

believe on 3 best timeless principles (Triumph based 3 points), which are, describe below.

A. Acceptability: Product must be acceptable everyone in the society. The best marketing

communicational (Pull and Push) strategy ensure that all brands of Coke must design as

like Coke is a family member of every home. It must be available every homes

refrigerator. Coke is integral part of every human with most preferred beverages in

country.

B. Affordability: The amount of money that charge for product / service. Coca Cola is

specially designed to target everyone in the world. Due to unique customer driven

strategy they designed their product price to peruse every one, every class of people like

SEC A, B, C and D. The offer best product in term of value for money. I think it is best

sound that product affordable for every class of people from tin to regular. This is the

best thing to believe that product is affordable for every cult / poor or rich. The Coke

engulfs people from every side due to pricing strategy, product for every one for every

class with every price.

C. Availability: One of the utmost elements of strategy that product availability at customer

door step. Product availability is a game of triumph for every organization. Make sure

that all brands are available at every shop every restaurant and every corner of the world.

Penetration of product in every market place. Really the winning game is product

availability. Why Pepsi so strong in Pakistan the only reason is product availability at

every corner of Pakistan where water is not presence you will get Pepsi. See the strong
STRATEGIC MARKETING PLAN COCA-COLA 23

forward distribution and product availability. Need same response from Coke than

onward we will celebrate victory of Coke in Pakistan. Only secret of success for every

company is Product availability / affordability and acceptability.

Coca-Cola has well organized extensive global distribution chain in the world. The

Network is guarantee of its ubiquity of product. (Ubiquity is the ability to appear to be present

everywhere at once.). Coke has unique distribution with worlds bests thrust brands in the shape

of Coca Cola. Coca Cola is unique bottling system in the world, which seems if blind can touch

bottle he will acknowledge that this is Coca Cola due to different bottling style. Coke has

widespread and largest distribution and product channel of network.

Coca Cola offering different pricing strategies as per their rivals, Pepsi Pakistan is vivid

competitor of Coca Cola, it has neither soar nor too lose price for offering its product as compare

to its direct and indirect competitor. There is interesting fact in pure competition between Pepsi

and Coke. If Coke rises up price than Pepsi take up opportunity and pull all customer of Coke

towards their domain due to this fear both competitor are too weak to take up pricing decision. If

price will too low it leave a bad perception to their consumer. Coke also offering promotional

strategy on different occasion on Ramadan, Eid due to bull whip effect.

Marketing Penetration Pricing strategy

Product is unique identification and assets of company, that offer to satisfy the needs and

wants of consumer. While in Place it refers to distribution and retailer of product in Pakistan.

Coca is one of the worlds most great brands of the world.


STRATEGIC MARKETING PLAN COCA-COLA 24

Distribution Channels

Choosing suitable distribution path is more important to develop effective channel to

deliver your company offering to its end user. Choice of effective distribution may lead success

of Coke. There is multiple factor that seems to success for Coke. Like lead-time, transport and

distance of distribution from customer end and product line extension available at distribution

end. Different type of distribution strategies that Coke has to chaos, the type of distribution can

be.

Intensive Distribution

Selective Distribution

Selective Distribution

If we are looking forward Pepsi as a direct rival of coke, it uses all distribution channels to

convey their product message to the end user. In Intensive channel Coke needs to choose every

retailer every corner station to product availability. Intensive distribution always suitable and

success especially in FMCG and consumer familiar product / convince product. Being a

beverage product it needs to specially target intensive distribution (mass level of distribution).

While in Selective Distribution we need to focus some specific area limited distributor.

Selective always use in shopping product or automobile product, which is expensive in middle

level. Where we think and do plan before buy any product. Like auto mobile. But due to

availability we also need to focus our present on selective distribution when Coke can easily

control and dominate. Exclusive Distribution is pure example of distribution where only one

companys product available nothing else product is acceptable at that channels is called

Exclusive channels Like (in Mercedes Bens out you will get only Mercedes nothing others. This

is perfect example of Exclusive distribution example.


STRATEGIC MARKETING PLAN COCA-COLA 25

Sales Promotion, Coke always use promotional strategies in the form of advertising TVS,

now a days Coke adopt patriotism philosophy in their advertising for instance now a days TVC

seen. Coke is more billboards and holding conscious in all over Pakistan with respect to their

new adding features in their product. Coke also sponsors different music show and different

event that is part of trade marketing. One of the stringent strategy / fool strategy follow by Coke

and Pepsi that they always raise their product price rate in summer, while its complain their user

to buy expensive one especially in summer, it may effect on their brand loyalty (Ahmed et al.,

2014).

The company has got a pricing strategy, as there is no certainty of rising or fall of price

during the peak season. This also hamper the sales of the company as the retailers and distributor

get dilemma whether to place the next order or not as increase or decrease in price may hamper

their profit margin and blockage of the goods.

Significant Focus on Carbonated Drinks

The Coca Cola Company is still focusing on selling carbonated drinks like Coca Cola,

Sprite Fanta etc. As the world is moving towards consuming the healthier foods and drinks, the

Coca Cola must focus on some healthier drinks; it has limited range of such products like Minute

Maid Juices range.

Financial Position of the Company

The financial position of Coca Cola is very strong as it has strong routes in more than 200

countries of the world where high level of sales is being achieved every day. The company

invests heavily in the Marketing activities in the international market as well as in Pakistan. It
STRATEGIC MARKETING PLAN COCA-COLA 26

has been seen in last few decades that Coca Cola has always been active in marketing its brand

using Above the Line and Below the Line methods. Coca Cola is currently sponsoring some of

the most watched Television shows in Pakistan such as Coke Studio and others. Coca-Cola is

continuously encouraging people to switch towards Coca Cola by doing marketing campaigns

regularly. In almost every fifteen minutes, the advertisements of Coke can be seen on television.

Coca Colas social media team is very active in responding to customers and consumers 24/7. In

future, the company has plans for further expansion in the budgets of marketing by running more

and more campaigns that can be helpful in enabling the company to attract and retain customers

from across the Pakistan. The strong Financial Position of Coca Cola suggests that it has got the

ability of dominating the market of Pakistan just like it did in the international market. However,

there is a need of revising the marketing strategy. The company should create strong alliances

with the strategic partners who can assure that Coca Cola has its products availability in all over

Pakistan. The only reason why Coca Cola has left behind Pepsi in Pakistan is because of the

availability of the product in the market. Pepsi came in Pakistan before Coca Cola and captured

the market in most effective and efficient manner. It becomes important for Coca Cola to take

initiatives that ensure that it has been able to beat Pepsi in the Pakistani market in terms of brand

value and sales and profitability.

Conclusion

Based on the analysis of the report, it can be said that Coca Cola has done great in terms

of attracting and retaining customers using various marketing techniques in the international

market. It has achieved its place as a symbol of American Product in across the globe. The

people living in various part of the world are addicted with the products being produced and sold
STRATEGIC MARKETING PLAN COCA-COLA 27

by Coca Cola. This is one of the reasons why Coca Cola has been able to achieve number one

position in terms of brand value for 13 continuous years. However, Coca Cola still lacks behind

Pepsi Co when it comes to the market of Pakistan. There are many reasons why Pepsi has been

more successful in the Pakistani market as compared to Coca Cola. One of these reasons is that

Pepsi is more widely available in Pakistan as compared to Coca Cola. It has built very strong

relationships with the strategic partners, which help them to ensure the high availability of Pepsi

products in all over Pakistan. Other reason is that Pepsi has captured the Pakistani market

initially when Coca Cola was not even introduced in Pakistan. Hence, it is recommended that

Coca Cola should improvise its strategies in order to give tough time to Pepsi and achieve high

market share in Pakistani market as well as it already has in the International Market.
STRATEGIC MARKETING PLAN COCA-COLA 28

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STRATEGIC MARKETING PLAN COCA-COLA 30

Appendixes

Appendix # 1

Source: Euro Monitor


STRATEGIC MARKETING PLAN COCA-COLA 31

Appendix # 2

Source: Armstrong & Taylor (2005)


STRATEGIC MARKETING PLAN COCA-COLA 32

Appendix # 3

Source: Armstrong & Cunningham (2012)


STRATEGIC MARKETING PLAN COCA-COLA 33

Appendix # 4

Source: Porter (2011)

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