Professional Documents
Culture Documents
Acknowledgement
Executive summary
Challenge...................................................................................................................................1
New product category.............................................................................................................1
Product line extension.............................................................................................................1
Incremental Improvement.......................................................................................................2
Introduction to the company....................................................................................................2
Birth of Coca Cola...............................................................................................................2
Asa Candler.........................................................................................................................3
Death of the Soda Fountain - Rise of the Bottling Industry.................................................3
New Coke............................................................................................................................3
Situation Analysis......................................................................................................................4
Company Analysis.................................................................................................................4
Mission Statement...............................................................................................................4
Vision Statement.................................................................................................................4
Market Share.......................................................................................................................4
Customer Analysis.................................................................................................................5
Consumer Decision Process:...............................................................................................5
Competitors...........................................................................................................................6
Economic Effect Analysis..............................................................................................7
Political Effect Analysis.................................................................................................9
Technological Factors:.................................................................................................10
Social and Cultural Analysis..........................................................................................10
SWOT Analysis Of Coca Cola............................................................................................11
Strengths............................................................................................................................11
Weaknesses.......................................................................................................................11
Opportunities.....................................................................................................................12
Threats...............................................................................................................................13
Market Segmentation..............................................................................................................14
Behavioral base.....................................................................................................................14
Cognitive base.......................................................................................................................14
Selected Market Strategy........................................................................................................14
Product..................................................................................................................................14
Branding............................................................................................................................15
Product line.......................................................................................................................16
Packaging..........................................................................................................................16
Price......................................................................................................................................17
Prices of different bottles:.................................................................................................17
Discounts...........................................................................................................................18
Placement/Distribution Channel............................................................................................18
Indirect distribution...........................................................................................................18
Direct distribution.............................................................................................................18
Promotions............................................................................................................................19
Conclusion................................................................................................................................20
Suggestions...............................................................................................................................21
Bibliography............................................................................................................................22
Acknowledgement
Working with this report has been very interesting. We are forever indebted to all those
who gave us valuable suggestions, stimulating ideas, constructive comments and
encouragements throughout this report writing.
We are indebted to our respected teacher Mr. Sanjeeb Shrestha who’s indispensable
and intricate comments on various aspects conjoined with motivation made us come
forth holding such a project.
Executive summary
Purpose of this project is to study the strategies which Coca cola is doing in Nepali
market for its product Coca cola. Coca cola International is a world renowned brand. It
is a very well organized multinational company, which operates almost all over the
world. In Nepal It also has proved itself to be the No.1 soft drink.
Now days Coca cola is recognized as Nepalis National drink .Coca cola's greatest rival
is Pepsi Cola. Coca Cola has an international recognized brand. Coke’s basic strength is
its brand name. But Coca cola with its aggressive marketing planning and quick
diversification in creating and promoting new ideas and product packaging, is
successfully maintaining is No.1 position in Nepal. Coca cola is operating in Nepal,
through its more than 12 bottlers all over Nepal. These bottlers are Coca cola's strength.
Coca cola has given franchise to these bottlers. Bottlers, produce, distribute and help in
promoting the brand.
We also did analysis of the soft drink industry in Nepal and worldwide. The soft drinks
set to become world's leading beverage sector. Global consumption of soft drinks is
rising by 5% a year.
Challenge
Coca cola is doing new product development on frequent interval of times. The purpose
of which is to refresh the brand. By new products and innovative ideas consumers can
easily be attracted. In following ways Coca cola is doing new product development.
Coca cola which is mainly a company of soft drinks after establishing a brand in Nepal.
Coca cola came into several new product category. Fanta, Sprite and Aquapure, fast
food restaurants are the examples of new product category.
Mountain dew is the most recent addition in the product line of soft drinks which is
very popular especially among the youngsters.
However Coca cola launch its several variants with a minor difference on frequent
interval of time. There have been many Coca cola variants produced over the years,
including, Coca Cola raspberry,Coca Cola zero,Coca Cola M5, Coca Cola black cherry
vanilla, Coca Cola black, Coca Cola citrus,Coca Cola light sango, Coca Cola orange,
Coca Cola diet etc.
Line Filling
Coca cola claims that they are doing mass marketing but there was an unfilled gap in
the consumers. The diabetic patient can’t use the regular Coca cola because of the
sugar. So Coca cola had introduced diet Coca cola to fill the gap in their drinks as of
then onwards even diabetic people became their consumers.
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Incremental Improvement
Coca cola jumbo is an example of incremental improvement made by Coca cola. It was
2.25 liter bottle introduced few years ago in Nepal. The purpose of this packing is to
offer the Coca cola to a family for one or two time meals. Price of this pack is also kept
low so that is can be affordable easily by the consumers.
In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from
Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged
brass kettle in his backyard. The name was a suggestion given by John Pemberton's
bookkeeper Frank Robinson.
The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in
Atlanta on May 8, 1886.
About nine servings of the soft drink were sold each day. Sales for that first year added
up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in
expanses, so the first year of sales were a loss.
Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as
the caffeine-rich kola nut.
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Asa Candler
In 1887, another Atlanta pharmacist and businessman, Asa Candler bought the formula
for Coca Cola from inventor John Pemberton for $2,300. By the late 1890s, Coca Cola
was one of America's most popular fountain drinks, largely due to Candler's aggressive
marketing of the product. With Asa Candler, now at the helm, the Coca Cola Company
increased syrup sales by over 4000% between 1890 and 1900.
Advertising was an important factor in John Pemberton and Asa Candler's success and
by the turn of the century, the drink was sold across the United States and Canada.
Around the same time, the company began selling syrup to independent bottling
companies licensed to sell the drink. Even today, the US soft drink industry is
organized on this principle.
New Coke
On April 23, 1985, the trade secret "New Coke" formula was released. Today, products
of the Coca Cola Company are consumed at the rate of more than one billion drinks per
day.
The market in Nepal is surely dominated by Coca cola. It has proven itself to be the
No.1 soft drink in Nepal. Coca cola is the choice soft drink of every one. It is consumed
by all age groups because of its distinctive taste. Compared with other Cola in the
market, it is a bit sweeter and it contributes greatly to its liking by all. Consumer’s
survey results explain the same outcome and Coca cola has been declared as the most
wanted soft drink of Nepal.
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Situation Analysis
Company Analysis
Mission Statement
“To be the world's premier consumer Products Company focused on convenient foods
and beverages. We seek to produce healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and
the communities in which we operate. And in everything we do, we strive for honesty,
fairness and integrity.”
Vision Statement
“To be the world's best beverage company”. Being the best means providing
outstanding quality, service, cleanliness and value, so that their every customer is
contented and happy with their products.”
“To increase the value of their shareholder’s investment through sales growth, cost
control and wise investment of resources.”
Market Share
Coca-Cola, imported from India, was first introduced into Nepal in 1973, with local
production of Coca-Cola beginning in 1979. Bottlers Nepal Limited (BNL) is the only
bottler of Coca-Cola products in Nepal, and has two bottling plants; namely
Kathmandu (Bottlers Nepal Limited – BNL) and Bharatpur (Bottlers Nepal (Terai)
Limited,) which is 160 km from Kathmandu, its capital. Coca Cola enjoys 67.8 percent
share in Nepal´s carbonated soft drinks market, according to ACNeilsen, a global
marketing research firm. The multinational brand valued at $70 billion has presence in
200 countries.
4
Customer Analysis
1. Consumer
2. Business
3. Government
Coca cola main focus is the consumers which are the end users. Coca cola has to make
its marketing strategies keeping in view the consumer buying behavior. To forecast the
behavior of the consumer is a business problem. Physical aspect of the consumer can be
satisfied but it is difficult to satisfy the consumer psychologically. Consumer buying
behavior is affected by certain factors like Cultural factors, Social factors, Personal
factors and Psychological factors. So the producer should keep these factors in Mind
while promoting their product so that they can acquire the customer and increase their
market share.
There are different consumers in a society whose behavior is not the same. Every
consumer has a different perception of different products. Some consumers are
impressed by one quality of the product which may be in the view of other consumer
not that impressive. So to deal with different consumers in a society one should know
about the consumer buying behavior process which may help in making a true picture
of their product in the mind of the consumers.
Need Identification
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Information Search
Evaluation of Alternatives
He will now evaluate from the wide range of beverages available to him that which one
of them is suitable to him in terms of quality, taste and is pocket friendly.
Selection
Purchase
Post-Purchase Experience:
It is the experience that the consumer gets after using the product. He will use the
product again if he feels that his satisfaction after use is more or equal to the price of
the product.
After looking at above mentioned example, we can get an understanding that a product
should be so desirable that whenever a person identifies his need, he selects our product
among various substitute products and he feel satisfies so that he retains the use of that
product.
Competitors
The marketing concept states that to be successful, a company must provide greater
customer value and satisfaction than its competitors do.
The Coca-Cola Company's main rival in the soft drink industry, is usually second to
Coke in sales, and outsells Coca-Cola in some markets. RC Cola, now owned by the Dr
Pepper Snapple Group, the third largest soft drink manufacturer, is also widely
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available. There are different types of competitor in the market. Some of them in which
our product lies are discussed below:
Close Competitor
Coca cola and Pepsi are close competitors. It means that both have direct competition
in the market, their products are close substitutes for one another. Both the products can
influence the market share of one another through effective strategies made to cope up
with their competitors. In Nepal Coca cola is the market leader and Pepsi Cola is its
competitor. The Coca cola makes defense strategies so that it can maintain its position
in the market. While is a challenger and it makes attack strategies so that it can become
the market leader.
If the income level or per capita income of the people increases, it will have a
positive effect on the consumption of Coca cola.
Inflation
If the country faces inflationary trend in the market, the price of the Coca cola will
ultimately increase which will lower its demand.
Consumption Behavior
Nepal is a consumption oriented society. Due to demonstration effect the people are
more inclined towards consumption than saving. So the people of Nepal spent
heavily on food items. Hence Coca cola has a good market share in the present
circumstances.
Income Distribution
It means how much is in the hands of rich and poor class. If there is balanced
distribution of income in the country, the consumption of the people will increase
hence increasing the sales of beverages as well.
7
Payment Mod
As the use of plastic money is increasing the consumption pattern of the people are
increasing. Although it will have a low affect on the consumption of Coca cola.
Employment Opportunities
Aggregate Demand
In case of Coca cola, aggregate demand of the product increases in the season of
summer as the hot weather makes the consumers want to drink more.
Aggregate Supply
In summer season to cope up with the increasing demand they have to increase the
aggregate supply of their product.
Economic Policies
Some of the economic policies which can affect the market of Coca cola are
discussed below:
Fiscal Policy
It is the policy of taxes. If heavy tax is levied on Coca cola then its price will rise
having negative effect on its consumption.
Monetary Policy
Monetary policy is made to restrict or increase the supply of money in the market.
If policies are made to restrict the flow of money in the market, inflation can be
controlled hence increasing the real income of the people which will ultimately
affect the consumption of Coca cola.
8
Price Policy
If price of Coca cola is increased its demand will decrease and vice versa.
Income Policy
If income of the people will increase their purchasing power will increase and
hence increasing the market share of Coca Cola.
Political Stability:
Mixed Economy
In mixed economy government and private sector both plays their role in
developing the economy of the country. Investment by foreign companies like Coca
cola is more likely to flourish in mixed economy.
Laws Formulation
Government has given copy rights to Coca cola so that another company cannot sell
their product by the name of Coca cola. The countries where laws are formulated,
the strategies and activities of the company are different.
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Technological Factors:
Through research and development quality of the product can be improved or better
techniques or machinery can be developed which can increase the production.
When technology is advance the supply of the product increase hence the company
experiences growth in their business.
Psychographic
Social Status
Coca cola is a well renowned brand. People who are brand conscious will not drink
beverages of lesser known brands. They will try to show their status by drinking
Coca cola which is known to all as a quality drink.
Media
It is a very important factor for marketing. Media these days is a very effective way
of inspiring people to buy a specific product. A good promotion can boast up sales
to a great extent.
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SWOT Analysis Of Coca Cola
Strengths
Weaknesses
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emerging economies but it will prove weak as the world is fighting obesity and
is moving towards consuming healthier food and drinks.
Undiversified product portfolio. Unlike most company’s competitors, Coca
Cola is still focusing only on selling beverage, which puts the firm at
disadvantage. The overall consumption of soft drinks is stagnating and Coca
Cola Company will find it hard to penetrate to other markets (selling food or
snacks) when it will have to sustain current level of growth.
High debt level due to acquisitions. Nearly $8 billion of debt acquired from
CCE’s acquisition significantly increased Coca Cola's debt level, interest rates
and borrowing costs.
Negative publicity. The firm is often criticized for high water consumption in
water scarce regions and using harmful ingredients to produce its drinks.
Brand failures or many brands with insignificant amount of revenues. Coca
Cola currently sells more than 500 brands but only few of the brands result in
more than $1 billion sales. Plus, the firm’s success of introducing new drinks is
weak. Many of its introduction result in failures, for example, C2 drink.
Opportunities
12
Threats
13
Market Segmentation
It means that you divide the target market in to different groups. Market consists of
buyers and buyers differ in one or more ways. They may differ in wants, resources,
locations and buying practices. Through market segmentation companies divide large,
heterogeneous markets into smaller segments that can be reached more efficiently and
effectively with products and services that match their unique needs.
Segmentation is done on basis of the previously mentioned external factors and the
following:
Behavioral base
Cognitive base
It pushes and pulls the consumer. If the outlook of Coca cola bottle is desirable and it
attracts the consumer, he will buy it even if he isn’t thirsty.
Product
The soft drinks market in Nepal enjoys dynamic growth in both volume and value
terms. Carbonated drinks have become part of the culture in Nepal and multinational
companies have maintained standards over the years to provide the nation with high-
quality drinks. Rural areas of Nepal have driven sales of carbonated drinks to new
heights as more than 60 percent of the population resides in rural areas and young
consumers are more attracted to advertising. Coca cola is the most popular and leader
brand in the Nepali market and is consumed by children and adults alike. Coca cola is a
responsible corporate brand of Nepal and have contributed a lot to the economy.
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In marketing, a product is anything that can be offered to a market that might satisfy a
want or need. Until unless the product of the company is not strong in the market it
cannot survive in the longer run.
Coca cola has a product line comprised up of carbohydrate drinks, Lays and many other
products in Nepal. Coca cola’s product line satisfies consumer needs because Coca cola
produces different types of soft drinks for different consumers.
Branding
Consumer view a brand name as an important part of the product and branding can add
value to the product. A name, term, sign, symbol or design or a combination of these
intended to identify the goods and services of one seller or group of seller and to
differentiate them from their competitor
Logo
Logo is what establishes a brand name in the consumer mind. It is the brands identify,
signature, image and more often it is a logo that makes of breaks a product logo plays a
very effective role to improve the product or brand.
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Product line
Fanta Aquarius
Sprite
Coca-Cola
Zero
Packaging
“Packaging is a part of product planning in which a firm researchers, designs, and
produces its packaging.”
The physical container may be a cardboard, metal, plastic or wooden box; a cellophane,
wax paper, or cloth wrapper; a glass, aluminum, or plastic jar or can; a paper bag; styro
foam; some other material; or a combination of these products frequently have more
than one physical container.
But packaging depends upon the product nature as well as structure means either it is
liquid, semi liquid or solid.
In case of Coca cola Cola, they take the packaging designs by considering what is
better for company and what is better or convenient for the transportation.
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For protecting the syrup, Coca cola Cola uses the glass as well as plastic bottles of
different quantity.
Price
The amounts of money charged for a product or service, or sum of the values that
consumers exchange for the benefits of having or using the product or services. As
price gives us the profit so this P is very important for business price of product should
be that which gives maximum benefit to the company and which gives maximum
satisfaction to the customer.
Following factors Coca cola kept in mind while determining the pricing strategy.
The price of Coca Cola, despite being market leader is the same as that of its
competitor Pepsi.
Sometimes, Coca cola places its customers into some psychological pricing strategies
by reducing a high priced bottle and consumers think that they save a lot of money
from this.
17
Discounts
Coca Cola offers various discounts to those retailers who have the maximum sales of
Coca cola products on daily, monthly and on seasonal basis.
Seasonal Discount:
Coca cola also offers seasonal discounts schemes by reducing price in Dashain and
Tihar. Coca cola also offers trade in allowance for retailers.
Placement/Distribution Channel
The Coca cola uses the following two channels for the distribution of their products.
Indirect distribution
Indirect distribution involves agency holders e.g. Bottlers Nepal Limited (BNL). The
Marketing, Sales and Distribution strategy for BNL is titled ‘Refresh the Marketplace’
and includes a robust Consumer Response System to address any consumer concerns,
ideas and suggestions.
Direct distribution
The factory vehicles operate on direct routes in Kathmandu and other cities selling non-
returnable bottles Litter, Pet and Can.
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Promotions
In Nepal Coca cola is the most liked soft drink especially by young generation so the
Coca cola company has devised such marketing strategy which attracted them. For this
reason they started monitoring the habits of the generation. What they saw was that the
students were crazy about football and usually liked to idealize them so in order to
increase their sales the Coca cola Company paid high amounts of money to the
footballer to act as their spokes men.
Coca cola Cola Company has also become official sponsors of Nepal cricket and has
sponsored a number of series.
Also Coca cola has donated a lot to the earth quake victims and has launched a number
of prize schemes to attract new customers
As a result of this marketing strategy Coca cola has become the largest seller of soft
drinks in Nepal and is slowly forming a monopoly in drinks market.
Frequency of the Coca cola ads varies from time to time. When the season is on Coca
cola do heavy advertisement especially in Dashain and Tihar but this advertisement not
remain consist. We can hardly see the ads of Coca cola now as there is winter season.
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Conclusion
Coca cola is a well renowned company and it has maintained its position well by
understanding the client psychology, by ensuring quality, by introducing ingenuity in
products, by enlarging its product base, by keeping economic factors in view and by
intense and jazzy advertisements.
Whenever and where ever there is a spotlight event, Coca cola must figure in, like the
one day international cricket matches between India and Nepal many other such
occasions. The key word for success in the Marketing World is to “remain in the
spotlight” and that is what Coca cola is doing.
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Suggestions
The marketing world is full of surprises. Who could imagine that Coca Cola would be
overtaken by Pepsi? If Pepsi could be overrun by Coca cola, it would be no wonder that
Coca cola might be overtaken by some other beverage. The need then is to combine
quality with ingenuity. Along with that, the reputation of the company has to be kept
robust.
Today we live in a fast moving world where novelty and newness count a lot. One
cannot rest on one’s laurels. Fresh efforts, newness of approach must remain the
cardinal principles of a well orchestrated marketing strategy and the campaign must be
relentless. A continuous bombardment in advertisement would convince the clients that
Coca cola is a part of their lives. In order to live with style, Coca cola ought to be an
essential ingredient of one’s life.
The Coca cola is at its maturity stage and the sales of company are not growing very
rapidly. Company is doing a lot of promotional activities to let the product remain in
the market. It holds a large share of the market and whenever the sales state declining,
the company can improve it by different promotional activities.
Marketers of Coca cola can try to improve sales by improving one or more marketing
mix elements. They can cut prices to attract new users and competitor’s customers.
They can also launch a better advertising campaign or use aggressive sales promotion
to improve the sales. Thus, Coca cola is at its maturity stage.
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Bibliography
The following are the reference material where the information is collected.
Online References:
i) http://en.wikipedia.org/wiki/Coca_cola
ii) http://www.ekantipur.com/the-kathmandu-post/2010/04/01/Business/Coca-
Cola-promotion--campaign-launched/206780/
iii) http://www.bluechiplist.com/coca-cola/
iv) http://www.ktm2day.com/2010/05/01/coca-cola-set-to-expand-market-in-
nepal/
v) http://www.studymode.com/essays/Coca-Cola-Nepal-1149300.html
vi) http://www.ukessays.com/essays/marketing/coca-cola-and-their-internation-
marketing-strategies-marketing-essay.php
vii) http://www.cocacolasabco.com/Territory.aspx/Show/Nepal
Other References:
ix) Michael Blanding. The Coke Machine: The Dirty Truth Behind the World's
Favorite Soft Drink. Penguin. 2010. 375pp.
xii) David Greising. I'd Like the World to Buy a Coke: The Life and
Leadership of Roberto Goizueta. Somerset, NJ: John Wiley & Sons. 1998.
334pp.
xiii) Constance L. Hays. The Real Thing: Truth and Power at the Coca-Cola
Company. Random House. 2004. 398pp.
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xiv) E. Neville Isdell; with David Beasley. Inside Coca-Cola: A CEO's Life
Story of Building the World's Most Popular Brand. Macmillan. 2011.
272pp.
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