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

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

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

49  REFERENCES……………………………………………………………………………………50 INTRODUCTION: The coca-cola company is the global soft-drink industry leader. 9 . concentrates and beverage bases of coca-cola. to social responsibility through philanthropy and good citizenship. The company’s reputation for good corporate citizenship results from charitable donations.. with world headquarters in Atlanta.000 people around the world. 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. CONCLUSION & RECOMMENDATIONS……………………………………………………. employee volunteerism. 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. technical assistance and other demonstrations of support in thousands of community’s world wide. By contract with the coca-cola company or its local subsidiaries. approximately 70 percent of company volume and 80 percent of company profit come from outside the United States. The company and its subsidiaries employ nearly 30. the company’s flagship brand. In fact. 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. Syrups. more than a century old. Georgia. The coca-cola company has a commitment.

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

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

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

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

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

Cocks’ beverages account for a fraction of those.” (Philip Kotler) 15 . approximately 50 billion beverage servings of all types are consumed around the world. 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. It has got everything that a firm can do to influence the demand for its product.growth. approximately 1. 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.

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

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

The company has thus far invested over $100 million in Pakistan.In 1996. In addition. Multan and Lahore bottling plants in 2000. Zufiqar Hussain. 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. Moving forward other bottling plants were acquired including Hyderabad in 1997. 18 . the beverage giant began its bottling plant acquisition by purchasing its Karachi Bottling plant. The Coca Cola beverage are produced and sold in Pakistan by the company’s authorized two local bottling partners at 8 bottling plants. In the year 2000 the Coca Cola Company surged with the marketing activities to “re-ignite” its beverage and brand identities. Sherman of The Albright Group in a panel Interview with Pakistan Observer. Faisalabad in 1999 and finally the Rahim Yar Khan. The Panelists included Mahmood Hussain and Abu Talha. 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. Cola is easily available in every store in Pakistan and in almost every city whether small or big. They said Coca-Cola is in Pakistan for the last 53 years and our business had been steadily growing. it is not worthy that significant volume growth has been registered at all of these since their inception. 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. Gujranwala/ Sialkot in 1998. They said for all practical purposes Coca-Cola had become a Pakistani company with its business growing day by day.

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

coca cola has always used price promoting strategies. ATTRIBUTES AND FEATURES: Coca cola is a refreshing soft drink .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 140g • -Carbonated Water Fat 0g 0% • -High Fructose Corn Sodium 50 mg 2% 20 . It always reduces the price of its products. Price promotion: . And offers them at discounted rate at special occasions like Christmas etc.

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

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 . Out of this. Coke contributes around 65% of the total sales of CCBPL.

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

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

S. In 1886 the formula was changed and wine was taken out from it. questionable. A couple of regional companies did exist but with few exceptions. the country had no national soft drink industry. the best-selling noncarbonated beverage in Japan A significant portion of tea and coffee business is operated by Beverage Partners Worldwide. 2. INTRODUCTION STAGES: Before Coca Cola came into Pakistan in 1953. 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. DEVELOPMENT STAGES: Coca Cola was first developed as a mix of medicines in (1831-1888). PRODUCT LIFE CYCLE: 1. its 50/50 joint venture with Nestlé. 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.Such as Sokenbicha and Marocha Coffee: Such as GEORGIA coffee. The treated tap water was used 25 .A. Operations of these units and the quality of the products were to say the least. Since 1885 Coke was stimulated health tonic and beverage.

Bottlers serve as strategic business partners to the company on every major continent and leaders in global bottling system. 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. bottling and bottle washing facilities were often primitive. quality control. 26 . Maturity Stage Till 1985 Coke was market leader. The Coca Cola Company and bottlers take advantage of virtually limitless worldwide growth opportunities. It brought a totally new concept of hygienic and modern production.widely product standards varied greatly . 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. 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. distribution and marketing techniques. cooling facilities for bottled products were almost irregular and seldom extended beyond a five mile radius of the production unit. 3. quality control was almost non existent. In 1987 Coca Cola faced slowdown in sales as it loses its concentration towards the bottling system and brand system. 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.

When researching the positioning of a product.In 1986. Pepsi was also sure that young generation is fond of Music so it also doing music marketing. BRAND STRATGIES In 2003. Pepsi started targeting the sport fans and gradually captured the sports market. just like the values and beliefs that make up a person. while the character statement guides 'how' a message should be delivered or put across. consumers are often asked how they would describe that product if it were a person. 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. Through these strategies it started living in the hearts of new generation specially the teenagers and early 20’s. to deliver consistent and profitable growth and to have the highest-quality 27 . The purpose of this is to develop a character statement. BRAND POSITIONING: 'Coca-Cola's' brand personality reflects the positioning of its brand. company re-affirmed its commitment to be the world’s leading provider of branded beverage solutions. Positioning is in the mind of the consumer and can be described as how the product is considered by that consumer.50 with McDonalds Combo Meal offer. Many people see 'Coca-Cola' as a part of their daily life. This affinity between the brand and the consumer leads to a high degree of loyalty and makes the purchasing decision easier. 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 Cola revamped all its strategies especially the Bottling system. It also modified the marketing mix by cutting down its prices and introducing a scheme of saving Rs. This can ensure that consumers have a clear view of the brand values that make up the brand personality. Brand positioning guides 'what' will be communicated in the company's advertising.

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

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

Arrangements for Institutional sales Institutional sales are covered by the key accounts manager. Company differentiates it on the basis of service from the ordinary accounts. Names and Addresses of the agencies: There are 15 agencies which have dealings with the Coca Cola. 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. Korangi South  Siyal agency. Kala Board  Ali Hasan Agency.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. Some of these are.  Moghul Agency. Baldiya town  Usman Agency. Metropole  Nasir Ayaz Agency. Quaid abad  Shiraz Agency. Quaid abad pul  Five Star Agency. Landhi 30 . 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. Azam Basti  National Agency.

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Advertising . Personal Selling . This involves communicating the benefits of a product to increase sales and ultimately profits. Place. There are four main methods of promoting the benefits of a brand. organizing news conferences and informing the public about the firm's activities. which is focused on in this case study. Public Relations is about communicating with the media to create good publicity for a firm or its products. The media then communicate these activities to the public. 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.Sales Promotion The combination of these four methods constitutes the Promotion Mix. It is this fourth element. Price. 32 . and Promotion. Public Relations & Sponsorship (PR) . Promotion. . 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.TOOLS OF PROMOTION MIX: The Marketing Mix is the name placed on the '4Ps' of marketing: Product.

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

This is the first time for a sponsor to commit to more than one Rugby World Cup. 'Coca-Cola' is involved with the European Championship and plays a prominent part in making the event such a success. The Company has been a sponsor since 1995. 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. In Europe. drink 'Coca-Cola' campaign and the 'World Cup for fans' campaign. 'Coca-Cola' created the very successful 'Eat football. sleep football.through to France in 1998 and into the new millennium. To support “Coca- Cola’s” association with football. The global popularity of football makes it an ideal sport for 'Coca- Cola' to build on the life experiences of their target group. The Company wants to communicate that 'Coca-Cola' is the refreshment that stimulates and revitalizes rugby fans. and enhances the group experience and enjoyment of watching the game Interview: 34 .

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.Marketing Manager. Coca Cola people have led successes by living and working with a consistent set of values. 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. 35 . 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. Q: What are your preferences in hiring an employee? It depend on us that what a quality we find in him. The heart and soul of enterprise has always been its people. 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. 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. In empowerment employees are encouraged to use their own initiative.

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…. CONTINUOUS LEARNING: Each one at The Coca-Cola Company is accountable for continually expanding and growing the business of it. 36 . We offered free education for poor children. everyday. 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. This is why the Company strives to focus its resources on enabling and empowering employees to be and do their best. these interactions are the building blocks of our business success”. Investing in the development of our people will drive our ongoing success. It is an effort that requires the collective commitment. we opened schools in Punjab and Sindh. Multiplied billions of times. the desire to learn more every day and apply what they learn to new and different challenges. “the business of The Coca-Cola Company is defined by individual moments of connection between people. Some of them are given as under. Encouraging greater collaboration and most importantly delivering enhanced values to customers. It also requires a dedication to continuous learning and improvement. and the conjunction of it a lot of programs have been launched in the company over the years. ENABLING EMPLOYEE &LEADERSHIP DEVELOPMENT: As mentioned by a Coca-Cola Company executive.Empowerment programs have transformed coca coal into a vital organization by creating a shape purpose among employees. The Company has adopted the strategy of empowering its employees to share their talent and vision from every perspective.

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

Organizational culture has a number of important characteristics. open dialogue occurs throughout the year. there are few. open work environment— building a committed.  As the world’s largest beverage company. 38 . two-way conversation offers frequent opportunities to highlight strengths and areas for future development. This also is our ultimate commitment”. This includes all the employees of the organization from top management to the lower level staff. Throughout the year.FEEDBACK: The Company believes that feedback should take place more than once a year. managers and employees should meet to discuss progress. surprises at year-end. both carbonated and noncarbonated. we refresh that world. and profitable nonalcoholic beverage systems that create value for our Company. The Company also expects every leader to be accountable for nurturing an inclusive. 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. if any. We do this by developing superior soft drinks. exchange ideas. When candid. diverse workforce that is driven to produce results. 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. solve problems and remove barriers. This ongoing.

our bottling partners. our shareowners and the communities in which we do business.” Q: How do you assume “SWOT” analysis? “The SWOT analysis is a useful tool that allows you to look at the big picture. Satisfied customers. we succeed or fail based on our ability to perform as worthy stewards of several key assets.  Coca-Cola the world’s most recognized trademark. our customers.  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.  The world’s most effective and pervasive distribution system.” 39 . who make a good profit selling our products. and other highly valuable trademarks.

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

Coke has been made with high fructose corn syrup instead of sugar glucose/fructose. its acidity causes no immediate harm. 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. In 2003 the American Academy of Pediatric Dentistry took a grant of $1m dollars from Coca-Cola to fund educational research. an addictive substance. There are some groups who criticize this move to use high fructose corn syrup over 41 . 10.6.S. magnesium. or indeed acidic fruit juices like apple juice.5. ascorbic acid. This was largely due to the increasing prices of sugar during these times. 5.WEAKNESSES: ADVERSE LONG-TERM HEALTH: Most nutritionists advise that Coca-Cola and other soft drinks can be harmful if consumed to excess. riboflavin. A 2005 experiment by the American Academy of Pediatric Dentistry found the pH of the mouth to be 5. and 5. Under normal conditions. The drink has also aroused criticism for its use of phosphoric acid.. None of those are in the critical range to damage tooth enamel. particularly to young children whose soft drink consumption competes with. rather than complements.7 in 5. The impartiality of this experiment can be reasonably questioned. HIGH FRUCTOSE CORN SYRUP: Since the late-1980s in the U. a balanced diet. and vitamin A. The drink has also aroused criticism for its use of caffeine. and 20 minutes (respectively) after swishing 15 ml in the mouth for one minute. 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.

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

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

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

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

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

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. 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. WE WERE VERY DISAPPOINTED BECAUSE OF THIS. ITS SIGN BOARD WAS TOTALLY DAMAGED. A VERY CLEAN ENVIROMENT AND A GOOD MANAGEMENT BUT WHEN WE VISITED THERE WE SAW THAT THE FACTORY HAD A VERY BAD LOOK.

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

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

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