Pictures for the market share of coke

Text for market share

Globally, Coca-Cola is the largest company in the beverage industry. However, Coca-Cola
Pakistan currently admits that the market share of Coca-Cola is 30% which is very low as
compared to Pepsi that stands at 65% (just mention on screen that these are unofficical
figures). However, the company has still a substantial growth rate of 25% in Pakistan and hopes
to gain more share in the market in the future. Coca-Cola Pakistan has managed to almost double
its market share in Pakistan in the last 10 years. (If you can make an animated pie chart like
the picture I have attached with respect to the percentages, it would be great)
Coke offers a wide range of unique nonalcoholic beverages that come in different
variants to serve every segment in the market. It includes:
Pictures and transcript for the brand portfolio

(I would like if you add all these pictures in one slide and just say their names in the voiceover. Itd be
better if you could add a picture of just a bottle of each of the following.)

Fanta

Sprite
Rani Puply, formerly known as Minute Maid the water Dasani

And coke which is the most profit generating Cash Cow brand of the company

Transcript for value proposition

Next, we look at the value proposition of the company, which revolves around three main questions:

1. What are we selling?

2. To whom are we selling it to?
3. Why would they buy it?
Coke has secret formula that others can only imitate. The unique selling point of coca Cola is its quality.
Moreover, other advantages include its attractive packaging. Coke was the first one to come up with
colored crown caps for their bottles. Its objective is to create value by building on direct and strong
customer relationship by fitting into every little moment of theirs by its affordability and availability.
They aim to derive volume by creating and maintaining value.

Next screen. This is the answer for the third point of value proposition but to be shown on another
screen

Transcript for target group

Bull’s Eye Target

Market

Secondary Target Market

^ the above diagram should be shown on the screen and the voice over is below and add the
highlighted words as well!

Each business has a specific Target Market that drives its Business Strategy. This is
also known as the Bull’s Eye Target Market. It should always match the personality of
the brand.
If Coke was a human, its personality would have been young, energetic, cheerful and
vibrant
the Bull’s Eye target market of coke includes young men and women ranging from the
age of 16 to 29. Geographically, Coke targets major urban cities which have warmer
climates. It focuses on customers of all occupations, religions and nationalities (show
people of these if possible!) that are educated and belong to the SEC A class. Its
target customers are not only socially active, but also family oriented at the same time.
They are loyal and informed users that prioritize quality.
The secondary target market is connected to the bull’s eye target market through
aspirations. The secondary target market is also very important. In fact, in Coke’s
case, major portion of sales are derived by its secondary target market.
the secondary target market consists of anyone and everyone. It has proven to satisfy consumers of all
genders, ages, religions, occupations and income levels. People of all social classes having different
personalities living different kinds of lifestyles aspire to consume Coke.

transcript for positioning statement

Moving on to positioning; it is the place the brand or the product occupies in the mind of its target
customers relative to its competition, based on unique selling points and differences. CocaColas
positioning statement is:

I want the below text to be written on screen as well as a voiceover of it:

To: The educated, socially active and confident youth that is urban world minded, fun-loving,
sophisticated and belong to the SEC A. And the people that find such an audience admirable.

Our Brand Is: Making moments memorable, enjoyable and fun. “Mazza hur lamhe ka.”

That: A global brand with a local approach that resonates to the memories you make, so you’re not just
quenching your thirst, you’re making moments count.

While many think Coke is positioned as refreshing, delicious beverage that quenches your thirst unlike
anything else in the world, it is also and more proudly, an icon that just doesn’t fulfil your beverage
needs but your emotional needs too.

Next slide

Coke’s objective is clear. In the short run they want to drive consumption widely and increase THE
FREQUENCY OF SAID consumption. In the long run they want the consumer to think that Coke is the
brand that addresses their beverage and emotional needs and this is why the consumer wants to
associate himself with the brand.

(slide 8, big heading) Communication of tagline and brand message

(must come in display after heading has. Not at the same time) Mazah hurr lamhe ka. (Taste the
Feeling.)

An ideal consumer for Coke must hear the tagline and want to instill in his mind that having a bottle of
Coke with him will make whatever they are doing feel better. They shall be able to associate the brand
with enjoyable activities.

(slide 9)
Coke asserts to give you a delicious refreshing moment; it is a chilled beverage that refreshes you like
nothing else in the world. Coke wants to build a relationship with all its stakeholders, i.e. the
community, the channels, the customers and especially the consumers.

Transcript and pictures for competition

^ I want this picture to start off this part and the transcript is below if you can add an animation like
this it would be even better

The Pepsi Coke Rivalry has been ongoing since 1975 after Pepsi did a blind “Pepsi Challenge” in which
majority of the people preferred Pepsi, thinking it was Coke over Coke itself. Since then the market
leader, Coca Cola started losing shares to Pepsi, however remains the market leader globally.

In Pakistan however, Pepsi being the market leader and Coke being the close challenger have a
continuous rivalry against each other. They both offer the same SKUs in the market as well as being
available for mostly every single place together. In our retail assignment we even saw that in big IMTs
Coke and Pepsi even have refrigerators right next to each other. (Please show the picture below and
show arrows on the refrigerators of coke and pepsi)

Both the companies were revolved in the Battle of the 40s due to which both were doing competitive
pricing which can even be seen today. If Pepsi offers a price cut offer in Ramadan, Coke does the same
thing to be on the same level or it would eventually lose its customers to the cheaper option.

However, in the interview Mr. Abbas told us that they do not see Pepsi as their competition as such, in
fact they are competing the broader and larger Fast Moving Consumer Goods market which included
typical grocery items. They aim to be on the regular grocery list of everyone living in the country being
bought as frequently as possible.

With a cutthroat competition and other local brands stepping up such as Gourmet Cola (insert pic)
particularly in Punjab and Cola Next (insert pic) it is difficult to predict what the future market situations
will be like. Pepsi and coke both have asserted themselves as drinks for the youth that make moments
enjoyable, be it walking alone or celebrating festivals with families.
However, According the Mr. Murtaza, entrance of Gourmet Cola and Cola Next at a substantially low
price, actually has played an role in attracting people into the sparkling beverage industry which have
made them switch to the better offering in the market, which is coke, even at a premium price.

On the positioning map, this is where coke stands

Transcript and pic for PLC

Insert picture

Product life Cycle is the course of a products sales over its lifetime. It involves 5 stages; product
development, introduction, growth, maturity and decline stage.
Coca-Cola is a cash cow product. It has a high market share and a low growth rate, thus, Coke
seems to be entering the maturity stage. Even after around 75 years, it is still going strong.
Coca-Cola has achieved acceptance from most of its potential customers.
Coke has peaked sales and because they have a large consumer base, they have been able to
reduce their costs. They are enjoying high profits from the middle majority customers. The
stable number of competitors (add a down arrow) in the market are beginning to decline.
Furthermore, their marketing objective, now, is to maximize profits while also maintaining or,
more preferably, improving their market share. Pepsi is one of the main competitors for Coke.
Pepsi and Coke are almost perfect substitutes for each other, especially in a country like
Pakistan where people fail to differentiate between the tastes of the two.
CocaCola needs to introduce new variants to get back into the growth stage. In the
confectionary industry, it is important to keep innovating because businesses are aware that
people are always looking for something new. Thus, if Coke Pakistan doesn’t innovate, it may
lose customers to its competitors.
However, according to the Marketing Director of the company, who we interviewed, Coke is
still in the growth stage in Pakistan and has a very high potential in the market.
 PRICE

Product Price

Place Promotion
Animation on screen like this if possible

While all other components of the market mix (namely product, place and promotion) account for the
costs of the business, price is the only component that derives revenues to cover these costs and earn
profits. Hence, it is essential for a business to set the right prices.

*next screen*

According to our study, due to high competition in the Pakistani market with Pepsi, Coke uses
competitive pricing. because the two products are almost perfect substitutes, It is important for them to
maintain prices equal to the competitors, otherwise, as soon as Coke will increase its prices, customers
will shift to pepsi. (show arrow from coke to pepsi if possible) On the other hand, if Coke reduces its
prices they will lose their market shares and revenues. In the long run, this would only reduce the
market price and result in lower profits, if not losses, for both the companies.

However, Mr. Murtaza Abbas, Marketing Director at Coke Pakistan told us in the interview that
competitive pricing was a part of the Battle of the 40s where both the companies were trying to gain
share from each other, but now Coke has realized that it doesn’t help either of the companies if they
have the same prices and offer the same SKUs. Coke does not consider Pepsi to be its competitor, its
competition is the limited market for NARTDC which has high potentials. (show an office person on
screen)
*New screen*

He also told us that, recently, this year in 2019, Coca-Cola also decided they were going to lead pricing as
the number 1 player in the market so they took the price up on key SKUs and didn’t see any problems
such as volumes going down drastically or any other major shift, especially for Coke. They plan to take
this strategy further in the future.

*New screen*

Moreover, Coke and Pepsi not only have the same prices but also sell the exact same Stock Keeping
Units (SKUs) in the market. (show similar size bottles)

(same screen) According to Mr. Abbas, Pakistani beverage market overall is an underdeveloped market
as far as the pack sizes are concerned. As the market evolves, we will see more pack sizes coming in
which would be differentiated, hopefully, within a year or two.

(add more bottles with this para of more sizes if possible)

Stock Keeping units

Coke Pakistan follows a framework known as the OBPPC (Occasion, Brand, Pack, Price and Channel). The
entire portfolio is assessed; who will drink a certain product, at what time, at what moment and
occasion. Then it is seen which brand, pack and price would serve that occasion and what channel would
be most suitable to sell that back or brand to meet the need of the consumer.

This a very lengthy and holistic exercise done by Coca-Cola company once in every two or three years
where the architecture and brand pack is built and then executed over time. There are 4 basic
categories; affordability, frequency, upsize and upscale which may overlap.

Moreover, the Coca-Cola Company carries 2 studies which help building the science behind this entire
brand-pack architecture. Both of the following are integrated into the final framework.

The Consumer Beverage Landscape study to study consumer behavior in which a sample (show people)
of different consumers is chosen and then all they key drinking moments for them are identified.

The Moment of Truth Research (MOTR) which studies the customer(retailer) behavior.

Coke’s SKUs can be divides into three groups; Returnable glass bottles, PET bottles and Aluminum cans.

Each bottles picture with highlighted words*

Returnable Glass Bottles

This is the Coca-Cola 250ml Returnable Glass Bottle (RGB). It costs Rs.

20 for each bottle. It is the smallest and most economical SKU available
in the market.

This SKU is an entry pack for company as it helps people get into the
Coca-Cola franchise.
Aluminum Cans

These are the 250ml can which is available for Rs.

40 and the 330ml can avaible for Rs. 50 in the
market. However, unlike the glass bottle, this SKU is
nonrefundable. It is lies in the upscale category on
which Coke charges premium.

What the purpose of having such similar sizes in

the market? When we asked Mr Abbas about it, he
told us that essentially, the two should never be
available at the same outlet as they do not have any dual role in the same market.

The 250ml can should be available in a modern trade or traditional trade outlet. Only those that cater to
SEC A and B.

However, The 330ml can offerings are ideally for upscale restaurants in the market where the
consumption is greater approximately 10oz (between 300 and 330ml).

PET Bottles

This is the Coca-Cola 500ml Plastic bottle which costs Rs. 50. This plays a

dual role and lies between the frequency and upsize pack categories.

these plastic bottles provide the luxury to seal the bottle back and enjoy
the drink at another time. 
 Multi-serving Bottles

This is the Coca-Cola 1 litre bottle which is available in the market for Rs 100. It is
a multi-serving pack which means it can serve groups of people.

In our retail audit, we discovered that this pack was not highly available in most
areas of Karachi. When we asked Mr Abbas why? He told us It is because it
focuses more on semi urban-rural areas such as Rahim Yar Khan and Sialkot etc.

These are the Coca-Cola 1.5 litre and 2.25 liter bottles available

in the market for Rs. 110 and Rs. 140 respectively. They are often
referred to as the party size or the family size bottle as it caters to
the demand of groups depending on their sizes. The 1.5 liter pack
is the frequency pack whereas the 2.25 liter pack is the upsize
pack.

. 
Promotional Pricing

Coca-Cola doesn’t offer promotional prices very often. Pakistan is a low competition market as far as
promotions are concerned according to Mr. Abbas. We don’t have as many consumer promotions as
Coca-Cola or even other companies may have in other parts of the world.

However, we have seldomly seen Coke offering promotional discounts such as in during Ramadan. These
promotions, however, are not just to induce more sales but to build a beverage association with the
Holy month where friends and families come together and feast together (show people sitting together
on a table maybe?).

According to Mr. Abbas, with promotional prices, there is a natural spike that will come about. However,
if these promotions are not built on the right fundamentals it mostly leads to higher trade inventories
which get deloaded over time in the following months in form of lower sales after Eid which nets out the
effect.

In his view, offering price offs or setting promotional prices are not necessary to induce higher sales. If
the brand is strong, it will sell. And for the selling the right consumer associations are necessary, instead
of trade associations. (wrte trade association, then cut that and write customer associations above it)

Psychological Pricing

We often see brands playing psychology and offering prices such as 9.99 dollars. In Pakistan, this game is
played differently.

Coca-Cola Pakistan sets prices at Magical Price Points. Magic price points are defined by the currency
notes in the market. For Pakistan multiples of 10, 20, 50 and 100 (Show notes) would be price points as
these currency notes have a higher circulation in the market.

Thus, these are the magic price points the company would always want to be in. This season, the 1.5
liter PET bottle has been priced at Rs100 and the Regular glass bottle (RGB) is priced at Rs20 and most of
the others are priced in multiples of 10, 20, 50 or 100.
So essentially, the goal is to ensure that these price points aren’t missed at any point of time.

Even if there is inflation or increase in taxations, the company would keep the price points and may
choose to downsize the bottle.

*New slide*

Moreover, due to the current economic turmoil, this year has been a tough year for
all the industries in Pakistan. Mr. Murtaza explained how the industries are hit by
three challenges
1. Declining GDP
2. increasing rate of interest
3. FOREX rate going up as well as inflation in the market

Out of these, the FOREX rate had the most significant impact because it lead to
higher cost of production. Alongside that, the food inflation was much higher than all
other inflation in Pakistan which again put a pressure on the beverages industry and
the FMCG market because the consumer now included only the key items in their
basket, letting go of the more expensive items.
Moreover, the government revenue went down due to which taxes increased on
everything which again put a pressure on the industry.
Due to these factors, the consumer confidence went down so they decreased their
purchases because of which the retail and food and beverages sector went down.
Transcript for distribution channels of coke
Launched In 1996, Coca Cola Beverages Pakistan Limited, CCBPL, which is now named as Coca
Cola Icecek (please google the pronunciation), acquired all the distribution and manufacturing
plants of the company. Coca cola company sells the concentrate to coca cola icecek which then
manufactures the product, bottles it, and then distributes it amongst the approximately 500
distributors of coke all over Pakistan, which then sell it to the retailers. As the main bottling
company, coca cola icecek Pakistan is also responsible for ensuring high quality products and
availability all across the country, as well as making sure that the product reaches the consumer
in good shape.
(please insert the supply chain aligned with the wordings)

Coca Cola Retailers

Coca Cola Approx 500
Company around Customers
Icecek distributors
Pakistan Pakistan

In about 90% of Pakistan, the company has a presell distribution model where the distributor takes the
order from retailers one day and then delivers it the next. However, between cities the way it differs is
that, firstly, in urban centers there would be bigger and better distributors and in small areas there
would be a small distributor network present. Secondly, in some areas of the country the company also
used the Feeder Model of distribution which has distributor extensions present, where there is one big
distributor who has logistic arms in different semi urban areas which are being fed by the big distributor.

(make arrows while speaking this)

To ensure high quality reaches the customer in all the products of the company, it follows steps at the
different level of the value chain. At the plant/manufacturer level, they follow standards given by local
and national authorities, along with rules from ICO certifications as well as quality standards of the Cola
Company itself. The second thing the company focuses on is making sure that every step of the way,
from the plant to distributor to retailer to customer to consumer, that the different standards set are
followed. For example, at the distributor level, in peak heat season, the products should be stored in a
shed and not exposed to direct sunlight. Furthermore, at the market/retailer level, the company does
regular quality audits, across the smallest to the largest retailers, in which they check the expiry, taste
and color etcetera of the products. In case of any flaw, the company does a backward trace to the batch
and go into the very depth of the issue. The company also has a Customer Service Helpline (1-800-COKE-
1) for any complaints from the customers.
(slide1)PROMOTION.MARKETING

Promotion refers to any form of MARKETING COMMUNICATION that aims to inform or persuade the
target audience of a product relative to how it is positioned and its current offering.

(find a better image for the same diagram)

(slide 2) When asked with what strategies Coke employs from the promotional mix to market its
product, the brand manager Mr. Abbas stated all of them; he also said how some were more excessively
used than others were.

(slide 3) Advertisements:

Coke aggressively advertises their brand on a national level. These advertisements are mainly TVCs or
social media. Coke uses these specific tools in almost all their advertisements.

 (slide 4)Highly popular celebrities, often together, to engage the audience. For example,
Sheheryar Munawar and Mahira Khan in a TVC where a Coke Studio studio song by Ali Sethi
played in the background.
 The colour red. Red is a familiar theme with coke and it is something they have associated
themselves with. In every advertisement or banner the actor holding the bottle of coke will
either be wearing a red shirt or have a piece of red in their attire.
 Catchy music in the background. Music is another popular tool coke uses and these often have a
distinctive message. Jingles like ‘Hum aik hain’, ‘Zaalima Coca Cola pila de’ ‘Coca Cola tuuu’ are
all examples of some of their jingles that the audience
still remembers.

Use this image in background for the pointers above.

Use it as watermark of something, it should be blurred and
the points should come on it one at a time.