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MARKETING MANAGEMENET REPORT ON

Beverages Pakistan Ltd.
SUBMITTED TO: SIR ZULIFQAR AHMED SUBMITTED BY:

DATE: 7th OF DEC 2007
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PREFACE:
This management report is all about the coca-cola company and its products. In this document Microsoft word is used. Writing the report has greatly enhanced our knowledge and has proved to be a learning experience as it has enabled us to view the subject from a different respective .We have researched our topics thoroughly and written the report to the best of our quality. This report is all about coca-cola beverages Pakistan Ltd. The coca-cola company is pioneer in setting up modern soft drink industry in Pakistan. But still coca cola Company is not the leader in market because it has lower market share than Pepsi through this report we have searched that how much people are more attracted or consume coca-cola.

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ACKNOWLEDGEMENTS:

First of all we would like to thank Almighty Allah. Then, we would like to thank our respected course instructor MR ZULIFQAR AHMED who gave us the necessary insight and in depth understanding of the subject without which it would have been impossible to complete the report on “The Coca Cola Company-”. The understanding which developed under your surveillance and guidance throughout the semester was really commendable and helpful really it was just because of your insightful teachings that expand the horizons of our knowledge, with the help of which we could achieve our objective. We wish to thank “Muneer Ahmed” (Marketing Services Manager) Coca-Cola Beverages Pakistan Limited” who helped in making the completion of this report by providing necessary information.

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EXECUTIVE SUMMARY:
• This marketing report is all about the coca-cola company and its products. • This report is all about coca-cola beverages Pakistan Ltd. The coca-cola company is

pioneer in setting up modern soft drink industry in Pakistan. • The coca-cola company is the global soft-drink industry leader, with world

headquarters in Atlanta, Georgia. Syrups, concentrates and beverage bases of coca-cola, the company’s flagship brand, and over 160 other company soft-drink brands are manufactured and sold by the coca-cola company and its subsidiaries in nearly 200 countries around the world. • • The Coca Cola is pioneer in setting up modern soft drink industry in Pakistan. Before Coca Cola came to Pakistan in 1953, the country had no national soft drink industry.

Coca-Cola is a carbonated cola soft drink, produced by the Coca-Cola of Atlanta, Georgia. • The Coca-Cola Company markets four of the world’s top-five soft drink brands, including Diet Coke, Fanta and Sprite. In 1886, the year Coca-Cola was first sold in a neighborhood pharmacy in Atlanta, sales of Coca-Cola averaged nine drinks per day. • The products of the Coca Cola Company include a wide range of non-alcoholic

beverages. In Pakistan, the Company’s range of trade marked beverages brands include Coca Cola, Diet Coke, Sprite and Fanta. • Coca cola’s product line consists of the following number of items: 5

while 6 . PEPSI Continental Bottles limited. Cola • The primary competitor of the Coca-Cola Company is Pepsi. • Product line: . • • • • • Globally. R. Coca Cola’s top three direct competitors are: Pakistan beverages. Coca-Cola’s brand name is known well throughout 90% of the world today.Coca cola is available in every size. • The Coca Cola beverage are produced and sold in Pakistan by the company’s authorized two local bottling partners at 8 bottling plants. • • • Coca cola has followed all the main kinds of sales promotion strategies. Pepsi’ campaign shifted the company from the bargain brand image to a contender of Coca-Cola’s quality image. The Coca-Cola Company owns or licenses nearly 400 brands in the nonalcoholic beverage business. Fanta. diet coke etc.the basic features of coca cola are Coca cola has the following main attributes:• Size availability: .coca cola has always used price promoting strategies. Price promotion: .• In the year 2000 the Coca Cola Company surged with the marketing activities to “re- ignite” its beverage and brand identities. Coca-Cola responded to the challenge by price discounting. Coca cola is a refreshing soft drink .C.Coca cola has introduced many new product extensions and launched many new products like.

The Coca Cola Company and bottlers take advantage of virtually limitless worldwide growth opportunities. 7 . every function of The Coca-Cola Company integrated these priorities into their business plans. Pepsi aggressively responded with its own price cuts and Coca-Cola in turned matched the company. Led by Coca-Cola.Coca-Cola changed to a bargain strategy. Accelerate Carbonated Soft-Drink Growth. • In 2003. • The Coca Cola beverage are produced and sold in Pakistan by the company’s authorized two local bottling partners at 8 bottling plants. • Coca Cola Company uses 3 different ways of distribution. • Before Coca Cola came into Pakistan in 1953 the country had no national soft drink industry.

...................22  GROWTH RATE………………………………………………………………………………….23  PRODUCT LINE & PRODUCT MIX…………………………………………………………….......25  CHANNEL OF DISTRIBUTION…………………………………………………………………29  TOOLS OF PROMOTION MIX…………………………………………………………………32  INTERVIEW………………………………………………………………………………………...15  MARKET SHARE………………………………………………………………………………….47  OBSERVED CULTURE AND ETHICS …………………………………………………………48 8 ........................35  ASSUMPTIONS……..........TABLE OF CONTENTS:  INTRODUCTION……………………………………………………………………………………9  COMPANY AND MARKETING PHILOSOPHIES…………………………………………….......24  PRODUCT LIFE CYCLE………………………………………………………………………….................14  MARKETING MIX………………………………………………………………………………….........

9 . Georgia. approximately 70 percent of company volume and 80 percent of company profit come from outside the United States. concentrates and beverage bases of coca-cola. Syrups.49  REFERENCES……………………………………………………………………………………50 INTRODUCTION: The coca-cola company is the global soft-drink industry leader. By contract with the coca-cola company or its local subsidiaries. The company and its subsidiaries employ nearly 30. In fact. technical assistance and other demonstrations of support in thousands of community’s world wide. more than a century old. CONCLUSION & RECOMMENDATIONS……………………………………………………. local businesses are authorized to bottle and sell company soft drinks within certain territorial boundaries and under conditions that ensure the highest standards of quality and uniformity. with world headquarters in Atlanta. employee volunteerism. The coca-cola company has a commitment. The company’s reputation for good corporate citizenship results from charitable donations. to social responsibility through philanthropy and good citizenship. The employment and income generated by the Coca Cola system extents to 1000 of people of whom the Coca Cola Bottlers and distributions directly employ 8000. the company’s flagship brand.. and over 160 other company soft-drink brands are manufactured and sold by the coca-cola company and its subsidiaries in nearly 200 countries around the world.000 people around the world.

The most common of these is Diet Coke. originally as a coca wine called Pemberton's Freedom Wine Coca in 1885. Georgia. However. Cherry Coke. which has become a major diet cola. The bottlers. which is the single largest Coca-Cola bottler in North America. He may have been inspired by the formidable success of European Angelo Mariani's cocawine. Vin Mariani. Coca-Cola was bought out by businessman Asa Griggs Candler. on occasion. but the Coca-Cola Company's trademark name can usually be found somewhere on the bottle or can. Asia and Europe. HISTORY: The first Coca-Cola recipe was invented in Columbus. which is then sold to various licensed Coca-Cola bottlers throughout the world.Coca-Cola is a cola (a type of carbonated soft drink) sold in stores. Coca-Cola Zero. Such bottlers include Coca-Cola Enterprises. 10 . introduced other cola drinks under the Coke brand name. and others. produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The Coca-Cola Company has. others exist. The company actually produces concentrate for Coca-Cola. and even with coffee. restaurants and vending machines in more than 200 countries. Vanilla Coke and special editions with lemon and with lime. including Diet Coke Caffeine-Free. distribute and merchandise Coca-Cola in cans and bottles to retail stores and vending machines. The CocaCola Company owns and markets other soft drinks that do not carry the large Coca-Cola brand marking. The Coca-Cola Company also sells concentrate for fountain sales to major restaurants and food service distributors. whose marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century. Fanta. Australia. It is produced by The Coca-Cola Company (NYSE:KO) and is often referred to simply as Coke. who hold territorially exclusive contracts with the company. Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton. Pibb. by John Stith Pemberton. The bottlers then sell. such as Sprite.

in the summer of 1888.In 1885. essentially a carbonated.[] Pemberton claimed CocaCola cured many diseases. Meanwhile. After 11 . Mayfield. Mullahy and E. while suffering from an ongoing addiction to morphine. but the other two manufacturers could continue to use the formula. including morphine addiction.[It was initially sold as a patent medicine for five cents a glass at time soda fountains. Pemberton sold the rights a second time to four more businessmen: J. when Atlanta and Fulton County passed Prohibition legislation. Pemberton responded by developing Coca-Cola. Candler sold his beverage under the names Yum Yum and Koke. For the first eight months only nine drinks were sold each day. Murphey. three versions of Coca-Cola — sold by three separate businesses — were on the market.[ In an attempt to clarify the situation. and neurasthenia. Georgia. on May 8. The first sales were at Jacob's Pharmacy in Atlanta.O. C. dyspepsia. headache. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. By 1888. to a which belief were that popular in the United States at the thanks carbonated water was good for the health. non-alcoholic version of French Wine Cola. Bloodworth. A. impotence. Pemberton's alcoholic son Charley Pemberton began selling his own version of the product.H. 1886.O.[]The same year. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. So.C. John Pemberton declared that the name Coca-Cola belonged to Charley.

Candler incorporated a second company. although the efficacy of his concerted advertising campaign would not be realized until much later. Candler set out to establish a legal claim to Coca-Cola in late 1888. at the Biedenharn Candy Company in 1891. 1892. In 1935. the drink had reached the status of a national icon for the USA.The first bottling of Coca-Cola occurred in Vicksburg. The Coca-Cola Company (the current corporation). 12 . becoming parent bottlers. as an over-the-counter remedy for nausea or mildly upset stomach. Margaret Dozier and Woolfolk Walker. very different from the much later hobble-skirt design that is now so familiar. Asa Candler was tentative about bottling the drink. Coke concentrate. was and is sold separately at pharmacies in small quantities. but the two entrepreneurs who proposed the idea were so persuasive that Candler signed a contract giving them control of the procedure. or Coke syrup. 1894. Its proprietor was Joseph A. However. Cans of Coke first appeared in 1955. and Subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well. Candler had the earliest records of the company burned. the loosely termed contract proved to be problematic for the company for decades to come. after the company made minor changes in the sourcing of some ingredients. in 1914. Legal matters were not helped by the decision of the bottlers to subcontract to other companies — in effect. in order to force his two competitors out of the business. Coca-Cola was sold in bottles for the first time on March 12. Candler purchased exclusive rights to the formula from John Pemberton. Biedenharn. The original bottles were Biedenharn bottles. and in 1910.both failed to catch on. Mississippi. Regardless. it was certified kosher by Rabbi Tobias Geffen. Candler began marketing the product. Dozier came forward to claim her signature on the bill of sale had been forged. further obscuring its legal origins. However. By the time of its 50th anniversary. ABOUT COCA COLA IN PAKISTAN: The Coca Cola is pioneer in setting up modern soft drink industry in Pakistan.

after feeling the benefits of this modern approach to production and marketing. Untreated tap water was used widely. They also provide better standard of living for around 80000 people mainly small shopkeepers who earn an average from the sale of the Company’s brands. new and increasingly sophisticated techniques of management. but with a few exceptions. delivery to the customers was irregular and seldom extended beyond a five mile radius of the production unit. distribution and marketing techniques. Coca Cola bottlers set up their plants at several places. enabling Pakistan to share with the rest of the world an old and trusted soft drink. often one-man units. the country had no national soft drink industry. quality control. bottling and bottle washing facilities for bottled products were almost nil. A couple of regional companies did exist. alone an average per capita income. Coca Cola brought with it not only a new flavor.Before Coca Cola came to Pakistan in 1953. questionable. It brought a totally new concept of hygienic and modern production. marketing and technical skills have introduced to a large number of small industries 13 . Operation of these units and the quality of their products were to say the least. soft drink was merely produced locally by hundreds of small. With the establishment and development of the Coca Cola bottling organization. control was almost non-existent.

sports drinks. Coke is one of the worlds’ most recognizable and widely sold commercial brands. Coca-Cola has remained an internationally popular soft drink The Coca-Cola Company markets four of the world’s top-five soft drink brands. Coca-Cola has grown to become the world’s most ubiquitous brand. produced by the Coca-Cola of Atlanta. Georgia. juices. Though beset periodically by critiques of its health effects and by allegations of wrongdoing by the company. And yet.COMPANY AND MAREKTING PHILOSOPHIES The Company’s Profile: Coca-Cola is a carbonated cola soft drink. teas and coffees. Since then. sales of Coca-Cola averaged nine drinks per day. including Diet Coke. whose shrewd marketing tactics led Coke to its world-wide soft drink market dominance during the twentieth century. CocaCola was acquired by the businessman As a Griggs Candler. Company is presented with tremendous opportunities for 14 . the year Coca-Cola was first sold in a neighborhood pharmacy in Atlanta. holding the leadership position in many of the countries in which it does business. a nickname eventually trademarked by the company. Fanta and Sprite. In 1886. The beverage is widely referred to as Coke. Originally intended as a patent medicine when it was invented in the late-19th century. Company’s beverage products encompass nearly 400 brands— including noncarbonated beverages such as waters.

It has got everything that a firm can do to influence the demand for its product.” (Philip Kotler) 15 . Cocks’ beverages account for a fraction of those. It consists of four P’s that are: Product  Price  Place  Promotion PRODUCT: “The best way to hold customers is to constantly figure out how to give them more for less. approximately 1. MARKETING MIX: The most important strategies that a company follows to stay in the business are called the Marketing Mix. Every day.3 billion— a figure that simultaneously indicates. approximately 50 billion beverage servings of all types are consumed around the world.growth.

300 ml bottles and 250 ml bottles FANTA SPRITE 16 . They consider the consistent high quality of their beverage to be one of their business’ primary assets. Sprite cans.5 liter bottles. Coke cans. In each country where they produce their beverages. the Coca Cola system adheres not only the national laws on food processing and labeling. In Pakistan. Coca cola’s product line consists of the following number of items: COKE DIET COKE Disposable bottles. Diet Coke.5 liter bottles. 1 liter bottles. but also to their own strict standards for exceptional quality. In everything they do. Fanta cans. the Company’s range of trade marked beverages brands include Coca Cola. 300 ml bottles and 250ml bottles Disposable bottles. 1 liter bottles. 1. to ensure that they are offering consumers only the highest quality products. They monitor their success through their customers and consumer feedback and their in-trade monitoring programs and this information enables is to continuously improve their already demanding systems. The product line length of a product mix refers to the total number of items in the mix. Sprite and Fanta. they use their delivery to the market place. The Coca Cola Quality System. 1. 1 liter bottles. they use their specialized quality marketing system. 1.The products of the Coca Cola Company include a wide range of non-alcoholic beverages. 300 ml bottles and 250 ml bottles Disposable bottles. From The selection of ingredients to the production o their beverages.5 liter bottles.

For e.to compete with the competitors coke lowers its prices Sometimes the external factors influence the prices of coke for example  Government policy: . But it did not remain for a very long time. when the government regulates taxes the price of coke increased.sometimes government introduces such polices due to which the prices of all the coke products increase.g. and the prices came back to there original prices. you sell the price. PLACE: “Today you have to run faster to stay in the same place” (Philip Kolter) 17 .  Occasions: .PRICE: “You don’t sell through price.” (Philip Kotler) Competition based pricing: .in Pakistan when ever there is Ramadan in the country the prices of all the coca cola products decrease in order to increase the sales in the holy month of Ramadan.

The Coca Cola beverage are produced and sold in Pakistan by the company’s authorized two local bottling partners at 8 bottling plants. The company has thus far invested over $100 million in Pakistan. The second authorized bottling partner Khattak group operates two plants namely Makk Beverage Pvt Ltd and Sahi Beverage Pvt Ltd in Rawalpindi with 55 and 63 distributors respectively. the beverage giant began its bottling plant acquisition by purchasing its Karachi Bottling plant. They said for all practical purposes Coca-Cola had become a Pakistani company with its business growing day by day. In addition.In 1996. Cola is easily available in every store in Pakistan and in almost every city whether small or big. Zufiqar Hussain. In the year 2000 the Coca Cola Company surged with the marketing activities to “re-ignite” its beverage and brand identities. Moving forward other bottling plants were acquired including Hyderabad in 1997. Faisalabad in 1999 and finally the Rahim Yar Khan. Sherman of The Albright Group in a panel Interview with Pakistan Observer. The Panelists included Mahmood Hussain and Abu Talha. 18 . Islamabad—Pakistan is the second largest market of Coca-Cola after Turkey in the Eurasia and the Middle East Division spread over 23 countries and lot of scope is there for its expansion. it is not worthy that significant volume growth has been registered at all of these since their inception. Gujranwala/ Sialkot in 1998. They said Coca-Cola is in Pakistan for the last 53 years and our business had been steadily growing. sales and distribution center have been established in all major cities of Pakistan. This was stated here on Friday by the Coca-Cola Public Affairs and Communication Director Gurtay Kipcak and Windy R. The general managers of these plants are Mr. Multan and Lahore bottling plants in 2000.

For the last two years it had shown remarkable growth rate and the growth had been registered in double digits. In general stores it uses coke cartoons to attract customers. PROMOTION: “If you want a place in the e sun.it has always kept on introducing new products to keep the retailers busy and keep all the shelves packed with its product. you’ve got to put up with a few blisters. 19 .” (Abigail Van Buren) Sales promotion Coke has not remained behind doing its sales promotion. For e.it increased the sales during 1990`s a lot so that people would see coca cola in every store and have an intention to buy it. Sprite and many new products. Fanta lemon.g. Coca cola has followed all the main kinds of sales promotion strategies.  Consumer promotion: . the introduction of Diet coke.  Trade promotion: .

the basic features of coca cola are  Caramel Color  Phosphoric Acid  Natural Flavors  Caffeine  Carbonated Water  High fructose corn syrup Coca coal has the following amount of minerals in it:- Calories Fat Sodium 140g 0g 50 mg 0% 2% • • -Carbonated Water -High Fructose Corn 20 . ATTRIBUTES AND FEATURES: Coca cola is a refreshing soft drink . And offers them at discounted rate at special occasions like Christmas etc.coca cola has always used price promoting strategies. Price promotion: . It always reduces the price of its products.

Cola has created convenience for different consumers keeping in mind all the problems or difficulties that a customer could face using the product. like Islam there is restriction on drinking alcoholic drinks. who get amazed by its sensational taste.  Non alcoholic: Coca cola is non alcoholic drink therefore it is easy for everyone to use it because in certain religions.  Size availability: Coca cola is available in every size. From a litter bottle to cans and the small easy to carry bottles. Not only the teenagers love it but it is also famous among the elders. 21 .Carbohydrates Sugar Protein 39 g 39 g 0g 13 % • 13 % 0% • • • • -Syrup -Caramel Color -Phosphoric Acid -Natural Flavors -Caffeine Coca cola has the following main attributes:-  Refreshing:Coke is considered to be a very refreshing soft drink and is a drink loved by today’s generation.

Out of this. Coke contributes around 65% of the total sales of CCBPL. Coca cola’s share is 22% of the total beverage industry.MARKET SHARE: The share of CCBPL is 35% of the total beverage industry. Coca Cola Company Market Share Others 8% Coca Cola 38% Pepsi 54% 22 .

Moving forward other bottling plants were acquired including Hyderabad in 1997. In 1996. Faisalabad in 1999 and finally the Rahim Yar Khan. The second authorized bottling partner Khattak group operates two plants namely Makk Beverage Pvt Ltd and Sahi Beverage Pvt Ltd in Rawalpindi with 55 and 63 distributors respectively. The company has thus far invested over $100 million in Pakistan. Sprite in 1972.GROWTH RATE: Coca Cola was first produced in Pakistan. Zufiqar Hussain. in 1953. Multan and Lahore bottling plants in 2000. The Coca Cola beverage are produced and sold in Pakistan by the company’s authorized two local bottling partners at 8 bottling plants. the beverage giant began its bottling plant acquisition by purchasing its Karachi Bottling plant. It is not worthy that significant volume growth has been registered at all of these since their inception. 23 . The general managers of these plants are Mr. Diet Coke and Fanta Lemon in 2001. followed by Fanta in 1965. In the year 2000 the Coca Cola Company surged with the marketing activities to “re-ignite” its beverage and brand identities. Gujranwala/ Sialkot in 1998.

Qoo. Maaza and Bibo Sports Drink: Such as POWERADE and Aquarius Water Products: Such as Ciel. PRODUCT LINE: Globally. Some of these include: Carbonated Soft Drinks: Such as Coca-Cola. Many of those brands are considered among the worlds’ most valuable. Sprite and Fresca Juices and Juice Drinks: Such as Minute Maid. The Coca-Cola Company owns or licenses nearly 400 brands in the nonalcoholic beverage business. Fanta.In addition. Diet Coke. sales and distribution center have been established in all major cities of Pakistan. Fruitopia. Dasani and Bonaqua Teas: 24 .

Since 1885 Coke was stimulated health tonic and beverage. A couple of regional companies did exist but with few exceptions. INTRODUCTION STAGES: Before Coca Cola came into Pakistan in 1953.A. DEVELOPMENT STAGES: Coca Cola was first developed as a mix of medicines in (1831-1888). soft drinks were merely produced locally by hundreds of small often one-man unit. Later sugar was added to it to make the syrup sweeter. PRODUCT LIFE CYCLE: 1. the country had no national soft drink industry. Operations of these units and the quality of the products were to say the least. In 1886 the formula was changed and wine was taken out from it. its 50/50 joint venture with Nestlé. questionable.Such as Sokenbicha and Marocha Coffee: Such as GEORGIA coffee. the best-selling noncarbonated beverage in Japan A significant portion of tea and coffee business is operated by Beverage Partners Worldwide. Initially it was sold as headache remedy and was also noted that syrup helped against digestion and exhaustion and that it was a refreshing drink in addition to that. S. The treated tap water was used 25 . 2.

quality control. In 1987 Coca Cola faced slowdown in sales as it loses its concentration towards the bottling system and brand system. cooling facilities for bottled products were almost irregular and seldom extended beyond a five mile radius of the production unit. Growth Stage One of the greatest strength of Coca Cola enables to conduct business on a global scale while maintaining its focus on individual local territories. 3. The Coca Cola Company and bottlers take advantage of virtually limitless worldwide growth opportunities. Bottlers serve as strategic business partners to the company on every major continent and leaders in global bottling system. quality control was almost non existent. Coca-Cola Company was incorporated in 1953 as a successor to the business of a company with the same name that had been organized in 1892 at Atlanta.widely product standards varied greatly . Bottlers use in depth understanding of the local business environment to offer brands and services to meet the unique local needs ensuring the highest standards of produce quality and uniformity. distribution and marketing techniques. bottling and bottle washing facilities were often primitive. It brought a totally new concept of hygienic and modern production. Maturity Stage Till 1985 Coke was market leader. It not only brought new flavors but also enabling Pakistan to share with the rest of the world an old and trusted soft drink. 4. 26 .

to deliver consistent and profitable growth and to have the highest-quality 27 . Many people see 'Coca-Cola' as a part of their daily life. Brand positioning guides 'what' will be communicated in the company's advertising. This affinity between the brand and the consumer leads to a high degree of loyalty and makes the purchasing decision easier. BRAND POSITIONING: 'Coca-Cola's' brand personality reflects the positioning of its brand. consumers are often asked how they would describe that product if it were a person. The process of positioning a brand or product is a complex managerial task and must be done over time using all the elements of the marketing mix. Pepsi started targeting the sport fans and gradually captured the sports market. company re-affirmed its commitment to be the world’s leading provider of branded beverage solutions.In 1986.50 with McDonalds Combo Meal offer. while the character statement guides 'how' a message should be delivered or put across. Pepsi was also sure that young generation is fond of Music so it also doing music marketing.Pepsi Cola revamped all its strategies especially the Bottling system. BRAND STRATGIES In 2003. In 1994-1995 Coca Cola realized its main cause of downfall and in order to gain it position back it modified the product by introducing 300ml to inspire more usage. It also modified the marketing mix by cutting down its prices and introducing a scheme of saving Rs. The purpose of this is to develop a character statement. Positioning is in the mind of the consumer and can be described as how the product is considered by that consumer. When researching the positioning of a product. just like the values and beliefs that make up a person. This can ensure that consumers have a clear view of the brand values that make up the brand personality. Through these strategies it started living in the hearts of new generation specially the teenagers and early 20’s.

28 . 3. And this year. The Coca-Cola Company achieves these goals by striving for flawless execution against a crystal-clear strategy for success. energy drinks. In 2003. Selectively Broaden Family of Beverage Brands to Drive Profitable Growth. and one of its most important relationships is the one it shares with its bottling partners. The Company will continue to ingrain these priorities—and their benefits—into every aspect of its business. coffee and more. Coca-Cola is a company of relationships. teas.products and processes. Led by Coca-Cola. Accelerate Carbonated Soft-Drink Growth. Grow System Profitability and Capability Together with Company's Bottling Partners. bottled water. Carbonated soft drinks remain its most profitable business and Coca-Cola is the most popular brand in the world. Company’s six strategic priorities provide us with the framework for this success. This strategy paves the way for growth. 2. Enormous opportunity exists in categories such as juice and juice drinks. every function of The Coca-Cola Company integrated these priorities into their business plans. Six Strategic Priorities: 1. those relationships became more profitable and productive. and by doing so with an unwavering commitment to quality. 4. Serve Customers with creativity and Consistency to Generate Growth across All Channels. The company leads with strengths. In 2003.

creating alignment across business units and achieving economies of scale. it directs its investments in a way that makes the most business sense. company is able to operate with more efficiency. helping create a context for its own growth. Coca-Cola tailors its business approach to the individual marketplace based on its stage of development. Drive Efficiency and Cost-Effectiveness Everywhere. indirect distribution 3.Coca-Cola will continually strive to increase growth for its customers’ businesses. intermediaries DIRECT DISTRIBUTION: 67% of the company’s total distribution is done by direct distribution that is company uses its own transport and reach the retailers and the retailers sell them at the actual suggested price by the company. 29 . Direct Investment to Highest Potential Areas Across Markets. In this way. By leveraging technology. DISRIBUTION CHANNEL Coca Cola Company uses 3 different ways of distribution. 6. direct distribution 2. 5. 1.

Baldiya town  Usman Agency. Names and Addresses of the agencies: There are 15 agencies which have dealings with the Coca Cola. Kala Board  Ali Hasan Agency. Metropole  Nasir Ayaz Agency. These institutes are given some extra benefits and very good service but the company does not provide any customized product to these key institutes other than the fountain fresh. Quaid abad pul  Five Star Agency.  Moghul Agency. Korangi South  Siyal agency. Arrangements for Institutional sales Institutional sales are covered by the key accounts manager. Landhi 30 . Azam Basti  National Agency. Quaid abad  Shiraz Agency. Company differentiates it on the basis of service from the ordinary accounts. Some of these are.INDIRECT DISTRIBUTION: 17% of the indirect distribution is done by the wholesaler whose final consumers are their own customers and there is no fix territory in the whole seller. MARKITING INTERMEDIARIES: The final and third way of distribution which Coca Cola Company has adopted is marketing intermediaries through like McDonalds-sell products of Coca Cola to their customers and promotes their name as well.

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This involves communicating the benefits of a product to increase sales and ultimately profits. organizing news conferences and informing the public about the firm's activities. . Place. The media then communicate these activities to the public. and Promotion. Price. It is this fourth element. Advertising . Personal Selling . There are four main methods of promoting the benefits of a brand. Public Relations & Sponsorship (PR) . 32 . Public Relations is about communicating with the media to create good publicity for a firm or its products. Promotion.Sales Promotion The combination of these four methods constitutes the Promotion Mix. The aims of the Public Relations Manager liaising with the marketing function are to: Make the public aware of the existence of the firm and maintain the good name and image of 'Coca-Cola' by issuing press releases. Public Relations: One of the marketing department's functions is to manage public relations and maintain a positive and beneficial image of the firm's policies and products. which is focused on in this case study.TOOLS OF PROMOTION MIX: The Marketing Mix is the name placed on the '4Ps' of marketing: Product.

INTERNATIONAL SPONSORSHIP: “Coca-Cola's” powerful brand personality has become a vehicle for promotion in its own right. Coke has also been linked to world fairs and national exhibitions since 1905. sponsoring many events both on a global and local level. On a global basis 'Coca-Cola' has been a sponsor of the World Cup since the 1978 tournament in Argentina 33 . In many countries where Olympic associations lack full government sponsorship local bottlers of 'Coca-Cola' donate funds to aid potential Olympians as the partnership of 'Coca-Cola' and the Olympics continues to grow . FOOTBALL: 'Coca-Cola' also sets out to support football at every level of the sport. With the Olympics blossoming in popularity and complexity. The company has already contracted to sponsor both the summer and Winter Games through to 2008. The company has long been associated with global events such as The Olympic Games. Rugby World Cup and Special Olympics. The FIFA World Cup. 'Coca-Cola' was the official sponsor of the Olympics 2000 Games held in Sydney maintaining an unbroken presence at the games since 1928. 'Coca-Cola' has aided the evolution of games together with more than 190 National Olympic Committees assisting thousands of athletes in their training. 'Coca-Cola' will be the official global sponsor of the Special Olympics to be held in Ireland in 2003 (this is the first time the games will be hosted outside the US). increased attention has been turned to serving the growing crowds and to supplying the needs of the athletes and organizing committees. As the Olympic Movement's longest-standing corporate partner.

The Company has been a sponsor since 1995. sleep football. drink 'Coca-Cola' campaign and the 'World Cup for fans' campaign. At these events 'Coca-Cola' has exclusive product availability in the non-alcoholic beverage category. These campaigns highlight the natural link between having a 'Coca-Cola' and enjoying the experience of watching a football game RUGBY: 'Coca-Cola' has also become the long-term sports sponsor of the Rugby World Cup. 'Coca-Cola' is involved with the European Championship and plays a prominent part in making the event such a success. 'Coca-Cola' created the very successful 'Eat football. The Company wants to communicate that 'Coca-Cola' is the refreshment that stimulates and revitalizes rugby fans. To support “CocaCola’s” association with football. and enhances the group experience and enjoyment of watching the game Interview: 34 . The global popularity of football makes it an ideal sport for 'CocaCola' to build on the life experiences of their target group. In Europe. This is the first time for a sponsor to commit to more than one Rugby World Cup.through to France in 1998 and into the new millennium.

Q: How empowerment is used in the coca cola company’s organizational structure? Empowerment is the authority to make decisions within ones area of responsibility without first having to get approval from someone else. Over the past century. In empowerment employees are encouraged to use their own initiative. Coca Cola people have led successes by living and working with a consistent set of values. Q: What are your preferences in hiring an employee? It depend on us that what a quality we find in him. Coca Cola Company: Q: What is your designation and since how many years you are working here? I am working here as marketing services manager and working here since last five year. For example before hiring a person for marketing we will see his way of interacting with people how he communicates and can satisfy the person in front of him. Empowered employees are given not only the authority but also the resources so they are able top make decisions and have the power to get them implemented.Marketing Manager. Q: How do you motivate your employees? We usually gave them rewards such as salary incentive and bonuses and some time organize concert that can boost their moral. The heart and soul of enterprise has always been its people. 35 .

these interactions are the building blocks of our business success”. the desire to learn more every day and apply what they learn to new and different challenges. and the conjunction of it a lot of programs have been launched in the company over the years. In today’s environment it is requisite to have socioeconomic view otherwise pressure groups won’t going let you do your business Q: What have you done in social responsibility? Well…. everyday. Some of them are given as under. Multiplied billions of times. It is an effort that requires the collective commitment. passion and leadership of all employees. Q: Which view does your organization follow is it classic view or socioeconomic view? Basically we follow socioeconomic view. 36 . we opened schools in Punjab and Sindh. It also requires a dedication to continuous learning and improvement. “the business of The Coca-Cola Company is defined by individual moments of connection between people. Investing in the development of our people will drive our ongoing success. Encouraging greater collaboration and most importantly delivering enhanced values to customers. CONTINUOUS LEARNING: Each one at The Coca-Cola Company is accountable for continually expanding and growing the business of it.Empowerment programs have transformed coca coal into a vital organization by creating a shape purpose among employees. We offered free education for poor children. ENABLING EMPLOYEE &LEADERSHIP DEVELOPMENT: As mentioned by a Coca-Cola Company executive. The Company has adopted the strategy of empowering its employees to share their talent and vision from every perspective. This is why the Company strives to focus its resources on enabling and empowering employees to be and do their best.

Q: How you take decisions in your organization? It depends on the severity of the problem. 37 . and its success depends on having the right strategies. Career development resources are available for in-role development and career growth. It believes that the success of employees depends on their clear understanding of how their work aligns with organizational objectives and a strong process of ongoing guidance. while also developing and serving as stewards of the Company’s talent. employees may define realistic career goals. If the problem is sever we thoroughly examine the problem then we sort out what is the best alternative to solve the problem and select that alternative. DEVELOPING PEOPLE: Just as The Coca-Cola Company is driven by a vision it has defined for its future. Usually we took decision on intuition. integrated system that reaches into local communities almost everywhere in the world. and continue to deliver value to the organization as a whole. Q: What are the latest development programs of coca-cola? LEADERSHIP DEVELOPMENT PROGRAMS: These are available for leaders at multiple levels. These initiatives help ensure that the organization’s leaders are prepared to support the business strategy. and the right network of partnerships. identify the paths that will take them to their career of choice. feedback and coaching. And a variety of training and informative programs are being introduced for employees. OPTIMIZING PERFORMANCE: The Coca Cola Company is part of a broad. the right alignment of goals and objectives. better understand how to be competitive in their current role. the right resources. Through a series of guided personal assessments and self-reflections. to strengthening this conviction. so are employees.

there are few.FEEDBACK: The Company believes that feedback should take place more than once a year. When candid. both carbonated and noncarbonated.  As the world’s largest beverage company. The Company also expects every leader to be accountable for nurturing an inclusive. exchange ideas. open work environment— building a committed. 38 . two-way conversation offers frequent opportunities to highlight strengths and areas for future development. This ongoing. diverse workforce that is driven to produce results. Organizational culture has a number of important characteristics. open dialogue occurs throughout the year. This includes all the employees of the organization from top management to the lower level staff. we refresh that world. Throughout the year. if any. Q: What is your mission statement and objectives currently being pursued? “We exist to create value for our share owners on a long-term basis by  building a business that enhances The Coca-Cola Company’s trademarks. surprises at year-end. and profitable nonalcoholic beverage systems that create value for our Company. managers and employees should meet to discuss progress. solve problems and remove barriers. This also is our ultimate commitment”. Q: How does the organizational culture of coca cola influence the performance of its employees? Organizational culture can be defined as the common values beliefs and norms within the organization that are shared by all employees of the organization. We do this by developing superior soft drinks.

who make a good profit selling our products. Satisfied customers. our customers.” Q: How do you assume “SWOT” analysis? “The SWOT analysis is a useful tool that allows you to look at the big picture. we succeed or fail based on our ability to perform as worthy stewards of several key assets.  The world’s most effective and pervasive distribution system.  Our strong global leadership in the beverage industry in particular and in the business world in general.a quick list of what you do well and what you don’t.  In creating value. our shareowners and the communities in which we do business.  Coca-Cola the world’s most recognized trademark.” 39 . and other highly valuable trademarks.our bottling partners.

a reflection of the many countries and cultures in which it does business.Q: What are the strength. The Coca-Cola Company owns or licenses nearly 400 brands in the nonalcoholic beverage business. the more opportunity for innovation. cultures and ideas has never been more compelling: the more diverse company’s thinking. opportunity and threats (SWOT) of your organization? STRENGTHS: For all of its worldwide reach and complexity. the remarkable strength of The Coca-Cola Company finds its roots in two key things: our people and our brands. strives to be as inclusive as the brand itself. weaknesses. 40 . Coca-Cola is by its very nature inclusive. The Company. The business rationale for a diversity of people. PEOPLE: As the world’s best-known brand. BRANDS: Globally.

particularly to young children whose soft drink consumption competes with. This was largely due to the increasing prices of sugar during these times. HIGH FRUCTOSE CORN SYRUP: Since the late-1980s in the U. None of those are in the critical range to damage tooth enamel. rather than complements. riboflavin. an addictive substance. A 2005 experiment by the American Academy of Pediatric Dentistry found the pH of the mouth to be 5. ascorbic acid. and vitamin A. and 20 minutes (respectively) after swishing 15 ml in the mouth for one minute. 10. a balanced diet..WEAKNESSES: ADVERSE LONG-TERM HEALTH: Most nutritionists advise that Coca-Cola and other soft drinks can be harmful if consumed to excess. its acidity causes no immediate harm. In 2003 the American Academy of Pediatric Dentistry took a grant of $1m dollars from Coca-Cola to fund educational research.6. The impartiality of this experiment can be reasonably questioned. Studies have shown that regular soft drink users have a lower intake of calcium (which can contribute to osteoporosis). Diet Coke was found to be slightly less acidic.5. There are some groups who criticize this move to use high fructose corn syrup over 41 .S. ACIDITY: Evidence has been presented in numerous cases against Coca-Cola since the 1920s that decisively proves that the drink is not more harmful than comparable soft drinks. Under normal conditions. magnesium. Coke has been made with high fructose corn syrup instead of sugar glucose/fructose.7 in 5. or indeed acidic fruit juices like apple juice. 5. The drink has also aroused criticism for its use of phosphoric acid. The drink has also aroused criticism for its use of caffeine. and 5.

This is due to the fact that coca cola is a large multinational company with its operations all around the globe. This results in the interaction of employees with other employees as well as customers from not just the native culture but belonging to many other and diverse cultures. OPPORTUNITIES: DIVERSIFICATION: Another example is that the company knows that the people of the sub continent are very passionate about cricket. 42 . which are viewed as being very “normal” in the Western society are offensive to Muslims so they cannot be shown in ads. For Example: when promoting its product in Muslim countries through advertising the company has to take special care. Coca cola recognizes that it is not only the geographical diversity that has to be taken into consideration when setting up business in other countries but also the ethnic differences.sugar due to the fact that the corn used to produce corn syrup may come from genetically altered plants. However there cricket would be replaced by football. Some nutritionists also caution against high fructose corn syrup because of possible links to obesity and diabetes. to promote their product. This scenario will be very similar in the South American countries. High fructose corn syrup has been shown to be metabolized differently by the human body. So they would us cricket players etc. The culture of coca cola is such that it promotes diversity. This is because such things as dancing etc.

THREATS: COMPETETIVE STRATEGIES: Brand recognition is the significant factor affecting Coke’s competitive position. Packaging changes have also affected sales and industry positioning. Nestle.C. Fontalia. but in general. low priced cola drinks sold at railway stations and other recreational places. Private retailers drinks ( Spice lemon. TOP THREE COMPETITORS: Coca Cola’s top three direct competitors are: 1. 5. Smuggled cans of Pepsi. Mineral water ( Ava. Coke. Culligan. Frooto. Cola INDIRECT COMPETITOR: 1. Sprite etc ) 43 . Lemon Barley by Tesmart etc ) 4. the public has tended not to be affected by new products. R. Polly. PEPSI 2. Vital etc ) 3. Coca-Cola’s brand name is known well throughout 90% of the world today. MEHRAN BOTTLERS. Continental Bottles limited. Bubble Up 3. Juices ( Frost. Pakola. Pakistan beverages. Unbranded. Shezan etc ) 2. The primary concern over the past few years has been to get this name brand to be even better known.

Reasons for the prediction came from the fact that further growth of per capita consumption of soft drinks are limited to how much people are able to consume on a daily basis. Since the industry follows FDA regulations. By forecasting and responding to changes in the economic. initiated in the 1960s when Coca-Cola's dominance was being increasingly challenged by Pepsi-Cola. and technological environments. Furthermore. fostered by the competitive intensity. launched new strategies. The competitive environment between the rivals was intense and well publicized. questioning whether further substantial growth in sales was possible. political. the two industry leaders. new forms of pricing and promotion. The soda rivalry also initiated both companies to seek international markets and diversification strategies in order to increase their sales growth. tasted the same. The most commonly known is that Coca-Cola use to instill a small amount of cocaine in their drinks in order to enhance flavor as well as create an addiction. Pepsi and Coca-Cola make up anywhere from 75% to 90% of the market wherever they operate. distribution. both Pepsi and Coke offered a limited number of products that "looked the same. much legislation have been passed to control the company’s actions. The rivalry fostered and stimulated continuing growth in an industry in which many predicted in the early 1970s to be on the verge of maturity. Rather than succumbing to the impending maturation of their domestic market. such as product modifications. and bubble into foam the same" (252). and product development. thus. The war between the soda giants.The primary competitor of the Coca-Cola Company is Pepsi. also known as the "Cola Wars". forcing both companies to continuously establish and implement strategic changes as a means to create a competitive advantage. Pepsi and Coke have successfully innovated in marketing. COLA WARS: Pepsi Co and The Coca-Cola Company are two of the largest and oldest archrivals in the carbonated soft-drink industry. social. and fundamental changes in its distribution system. that have led to rapid and continued expansion of both company's domestic sales. 44 .

facilitated the brand image according to its own style and what it saw as an advantageous competitive approach. The campaign was such a success that Pepsi’s sales growth outperformed that Coca-Cola. This style and approach is what makes Coca-Cola distinguishable. for Those Who Think Young”. Q: Where do you want to see your organization in future? As indistinguishable as the product itself. interesting bottle designs. being two the most favorable interests of the youth. Pepsi introduced the Pepsi Challenge in its campaigns. Pepsi’ campaign shifted the company from the bargain brand image to a contender of Coca-Cola’s quality image. In 1976. Pepsi aggressively responded with its own price cuts and Coca-Cola in turned matched the company. It’s Pepsi. As far as attacking competition is concerned in Pakistan. lively words. Pepsi in its early growth stages adopted a strategy that is to enhance the market coverage they started to target him youth through sponsoring music and cricket. coca cola is a follower of Pepsi. Relying on colorful images. Coke’s marketing strategies have been no different. Pepsi foresaw the mass appeal of the youth generation for soft drinks and in 1961 divulged the successful slogan “Now.Rather than targeting every market. All these things are intended to remind people to purchase Coca Cola. beautiful people. Coke propelled its respective products into the American and international mainstream. The changing faces of Coke’s management. In reference to targeting the youth through music coke is now sponsoring singer like Abrar-ul-Haque and internationally recognized band like Junoon. Pepsi focused on the demographic environment. Marketing strategies began to take broader dimensions as the soft drink industry continued to expand and became more complex. however. while Coca-Cola changed to a bargain strategy. Coca-Cola responded to the challenge by price discounting. and contagious jingles. a moved that directly challenged Coca-Cola’s longstanding dominance. 45 .

To maintain its position in the consumer market it has to follow some powerful strategies 46 . coca cola’s sales are declining day by day. As compared to Pepsi.Thus we concluded that in future coca cola sales will increase but it has to face direct competition from Pepsi.

A VERY CLEAN ENVIROMENT AND A GOOD MANAGEMENT BUT WHEN WE VISITED THERE WE SAW THAT THE FACTORY HAD A VERY BAD LOOK. AT LAST WE WANT TO LET YOU KNOW THAT WE GAIN OUR KNOWLEDGE AND WE SURE. THEY GAVE US TEA INSTEAD OF COCA-COLA. WHEN WE ENTERED GUARD ASKED US TO WAIT IN VISITING ROOM SO WHEN WE ENTERED IN ROOM WE SAW THAT IT WAS QUITE DIRTY. 47 . AFTER INTERVIEW WE WENT TO CANTEEN FOR REFRESHMENT BUT WE DID NOT FIND ANYTHING TO EAT. ITS SIGN BOARD WAS TOTALLY DAMAGED. WE WERE VERY DISAPPOINTED BECAUSE OF THIS.ASSUMPTIONS: BEFORE WE VISITED THE FACTORY WE ASSUMED THAT THE LOOK OF THE FACTORY WAS BRILLIANT. THAT INTERVIEW WILL HELP US A LOT IN FUTURE.

|Typical examples are high product quality.” DETERMINANT VALUES: There are major values that the organization advocates and expects the participants to share. the way participants interact. PHILOSOPHY: There are strict guidelines related to getting along in the organization’s beliefs about how employees and customers are expected to be treated. ORGANIZATIONAL CLIMATE: This is an overall feeling that is conveyed by the physical layout. and high efficiency. New comers must learn these ropes in order to be accepted as full fledged members of the group. terminology. and rituals related to defense and demeanor. they use common language. low absenteeism. NORMS: Standards of behavior exist. which in many organizations come down to “Do not do much. do not do too little. including guidelines on how much work to do. and the way members of the organization conduct themselves with customers and outsiders.OBSERVED CULTURE AND ETHICS When organizational participants interact with one another. 48 . RULES: There are strict guidelines related to getting along in the organization.

CONCLUSIONS & RECOMMENDATIONS: Since its inception the Coca Cola Company falls into the category of broad beverage market. 49 . In my opinion they should rather emphasize more towards the teenagers as these people will be the brand loyal of the future. Orangi and many others. So far they are segmenting all sorts of consumers from youngest to the oldest. This not only affect company’s sales but also image. Therefore more market developers be selected and properly spread to target these neglected areas. They can take over their cafeterias and sponsor them on the contract basis. AMI or Preston in Karachi and NCA in Lahore. It has got a large number of potential and actual buyers. the company’s market developers rarely pay a visit. Coca Cola Company has set a different framework for each segment there fore it should not mix all of them and must maintain the difference among each segment. While targeting the customers they must adopt such a targeting strategy that will apply on both the new users and current users. In many far flung areas of Landhi. In order to increase its market share coke can go for flank attack by targeting any of the institutions like CBM. Contract like coke would repaint the cafes and return for a certain years as per contract these institutes will use coke as their official drink.

org/wiki/The_Coca-Cola_Company#History http://www.thecoca-colacompany.REFERENCES: • • • • • Sales Managers Saud Alam & Nadeem Khan The coca-cola brand & sponsorship (5th edition). http://www.html http://en.wikipedia.coca-colacompany.com/contactus/myths_rumors/index.com 50 .

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