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Marketing Management Project On Coca Col PDF
Marketing Management Project On Coca Col PDF
As plants cannot grow without seeds, birds cannot fly without wings.
Similarly knowledge cannot be attained without proper direction and
supervision. We are, therefore, also thankful to our respected teacher
Mr. Haneef Shehzad, because of whose generous co-operation and
help, the accomplishment of this Project became possible. I really
thankful to Mr.Haneef Shehzad & IIUI).
i
Executive Summary
This project is about to study any one of companies and one of that company’s
product according to marketing management perspective. In this project I have
studied the different techniques of marketing that are used by company, from
identifying the needs wants and demands of their product among the people, and
how company developed the customer oriented marketing strategies, that are how
they have done segmentation ,target marketing and positioning of their product.
At the end I have studied the swot and pest analysis of the company and
conclusion and recommendations.
Table of Contents
Chapter #1..................................................................................................................................................... 6
Introduction .................................................................................................................................................. 6
& .................................................................................................................................................................... 6
History ........................................................................................................................................................... 6
Introduction:- ................................................................................................................................................ 1
History:-......................................................................................................................................................... 1
Mission, Vision & Values:-............................................................................................................................. 1
Chapter #2..................................................................................................................................................... 3
THE MARKETING PROCESS ............................................................................................................................ 3
Need, Want and Demand:- ........................................................................................................................... 3
Customer Driven Market Strategy:- .............................................................................................................. 4
Market Segmentation:- ............................................................................................................................. 4
Regional segmentation: ........................................................................................................................ 4
Size ........................................................................................................................................................ 4
Population density ................................................................................................................................ 4
Climate .................................................................................................................................................. 4
Demographic ......................................................................................................................................... 4
Target Market ........................................................................................................................................... 4
Positioning:- .............................................................................................................................................. 5
Product .......................................................................................................................................................... 5
Price .......................................................................................................................................................... 6
Pricing Strategies and Tactics.................................................................................................................... 6
Place and Distribution ............................................................................................................................... 7
Promotion ................................................................................................................................................. 8
Customer Relationship management:- ......................................................................................................... 9
Building a customer-focused website ....................................................................................................... 9
My SAP Customer Relationship Management ........................................................................................ 10
My SAP Supply Chain Management ........................................................................................................ 10
Partnership relation management.......................................................................................................... 10
Coca-cola and SAP Partnership ............................................................................................................... 11
Capturing value customers in return (Market share, Customers loyalty):- ................................................ 11
MARKET SHARE ....................................................................................................................................... 11
MARKET SHARE BY AREA ........................................................................................................................ 11
CHAPTER #3................................................................................................................................................. 16
SOCIAL RESPONSIBILITY .............................................................................................................................. 16
SOCIAL RESPONSIBILITY .............................................................................................................................. 16
Corporate social responsibility ................................................................................................................... 16
Health and Wellbeing ............................................................................................................................. 16
A Fair and Ethical Workplace .................................................................................................................. 17
CHAPTER #4................................................................................................................................................. 18
Swot & ......................................................................................................................................................... 18
Pest analysis ................................................................................................................................................ 18
SWOT ANALYSIS:- ........................................................................................................................................ 18
STRENGTH ............................................................................................................................................... 18
WEAKNESS .............................................................................................................................................. 18
OPPORTUNITIES ...................................................................................................................................... 19
THREATS .................................................................................................................................................. 19
PEST ANALYSIS OF COCA-COLA ................................................................................................................... 20
POLITICAL VARIABLES ............................................................................................................................. 20
Conclusion of Political Analysis ............................................................................................................... 21
ECONOMICAL VARIABLES ....................................................................................................................... 21
Conclusion of Economical Analysis ......................................................................................................... 22
SOCIAL VARIABLES .................................................................................................................................. 23
CONCLUSION OF SOCIAL ANALYSIS ........................................................................................................ 23
EDUCATION ............................................................................................................................................. 23
ENVIRONMENT ....................................................................................................................................... 23
COMMUNITY INVOLVEMENT .................................................................................................................. 24
TECHNOLOGICAL VARIABLES .................................................................................................................. 24
Conclusion of Technological Analysis ..................................................................................................... 25
CHAPTER#5 ................................................................................................................................................. 27
CONCLUSION & .......................................................................................................................................... 27
RECOMMENDATIONS ................................................................................................................................. 27
RECOMMENDATIONS ................................................................................................................................. 27
Reference .................................................................................................................................................... 28
Chapter #1
Introduction
&
History
Introduction:-
The Coca-Cola Company is the world's largest number 1 beverage company, largest
manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the
world, and one of the largest corporations in the United States. The company is best known for
its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-
Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola
Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly
400 brands in over 200 countries or territories and serves 1.5 billion servings each day.
The company operates a franchised distribution system dating back to 1889 where The Coca-
Cola Company only produces syrup concentrate which is then sold to various bottlers throughout
the world who hold an exclusive territory.
The Coca-Cola Company is headquartered in Atlanta, Georgia. Its current president and CEO is
Muhtar Kent.
History:-
The Coca-Cola Company was originally established as the J. S. Pemberton Medicine Company,
a co-partnership between Dr. John Stith Pemberton and Ed Holland. The company was formed to
sell three main products: Pemberton's French Wine of Cola (later known as Coca-Cola),
Pemberton's Indian Queen Hair Dye, and Pemberton's Globe Flower Cough Syrup.
Finally in October of 1888, the company received a charter with an authorized capital of
$50,000. The charter became official on January 15, 1889. By this time, the company had
expanded their offerings to include Pemberton's Orange and Lemon Elixir.
1
Provide a clear direction for our Company and help ensure that we are all working toward the
same goals.
People: Being a great place to work where people are inspired to be the best they can
be.
Planet: Being a responsible global citizen that makes a difference.
Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and
satisfy peoples' desires and needs.
Partners: Nurturing a winning network of partners and building mutual loyalty.
We are guided by shared Values that we will live by as a company and as individuals:
2
Chapter #2
First of all the majority don’t care that what they are going to have. In other words, they don’t
care before drinking that whether it is “Pepsi” or “coke”. They don’t actually differentiate
between these two brands in order to their tastes.
Push availability
For this reason Coca-Cola have provided their coolers and freezers in the market. They have
maximum number of coolers and freezers in the market. They provide this infrastructure free of
cost just to provide chilled coke to their customer, which they want to be purchase.
3
Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to
check that either it is in proper condition or not, if not then they immediately change or repair it.
Market Segmentation:-
Regional offices
Population
Target Market:-
Coke’s commercials basically based on young generations, so, the young
generation is the target market of Coke because they want to represent Coke with the youth and
energy but they also consider about the old people they take then as a co-target market.
4
Positioning:-
Positioning helps customers understand what is unique about the products when compared with
the competition. Coca Cola plan to further create positions that will give their products the
greatest advantage in their target markets. Coca Cola has been positioned based on the process of
positioning by direct comparison and have positioned their products to benefit their target
market. Most people create an image of a product by comparing it to another product, thus
evident through the famous battles between Coca-Cola and Pepsi products.
Product:
Many Products are physical objects that you can own
and take home. But the word product means much more than
just physical goods. In marketing, product also refers to services,
such as holidays or a movie, where you enjoy the benefits
without owning the result of the service.
Businesses must think about products on three
different levels, which are the core product, the actual product
5
and the augmented product. The core product is what the consumer is actually buying and the
benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The actual product
is the parts and features, which deliver the core product. Consumers will buy the coke product
because of the high standards and high quality of the Coca Cola products. The augmented
product is the extra consumer benefits and services provided to customers. Since soft drinks are a
consumable good, the augmented level is very limited. But Coca Cola do offer a help line and
complaint phone service for customers who are not satisfied with the product or wish to give
feedback on the products.
Price:
Price is a very important part of the marketing mix as it can affect both the supply and
demand for Coca Cola. The price of Coca Cola’s products is one of the most important factors in
a customer’s decision to buy. Price will often be the difference that will push a customer to buy
our product over another, as long as most things are fairly similar. For this reason pricing
policies need to be designed with consumers and external influences in mind, in order to
effectively achieve a stable balance between sales and covering the production costs.
Price strategies are important to Coca Cola because the price determines the amount of
sales and profit per unit sold. Businesses have to set a price that is attractive to their customers
and provides the business with a good level of profit. Long before a sale was ever made Coca
Cola had developed a forecast of consumer demand at different prices which inevitably
determined whether or not the product came on the market, as well as the allocation of adequate
money and resources to produce promote and distribute the product.
6
slowly raise the price of its product. There has been a fierce pricing rivalry between Coca Cola
and Pepsi products as each company competes for customer recognition and satisfaction. Till
now it appears as if Coke has come up on top, although in order to gain long term profits Coke
had to sacrifice short term profits where in some cases it either went under of just broke even,
but as seen it has been all for the best.
7
Promotion:-
In today’s competitive environment, having the
right product at the right place in the right place at the right
time may still not be enough to be successful. Effective
communication with the target market is essential for the
success of the product and business. Promotion is the p of the
marketing mix designed to inform the marketplace about who
you are, how good your product is and where they can buy it.
Promotion is also used to persuade the customers to try a new
product, or buy more of an old product.
The promotional mix is the combination of personal selling, advertising, sales promotion
and public relations that it uses in its marketing plan. Above the line promotions refers to
mainstream media: Advertising through common media such as television, radio, transport, and
billboards and in newspapers and magazines. Because most of the target is most likely to be
exposed to media such as television, radio and magazines, Coca Cola has used this as the main
form of promotion for extensive range of products. Although advertising is usually very
expensive, it is the most effective way of
reminding and exposing potential customers to
Coca Cola Products. Coca Cola also utilizes
below the line promotions such as contests,
coupons, and free samples. These activities are
an effective way of getting people to give your
product a go.
8
Develop Relationship with the customer (CRM + PRM):-
Yet, to truly take advantage of the Coca-Cola Freestyle, the company felt it needed a new portal
for its end customers. Customers, for Coca-Cola, mean the end consumers and distributors and
small store owners. Small businesses that have traditionally relied on hand-written invoices and
phone ordering will be able to log into a self-service website and do their ordering from there.
"This will reduce write-offs and collection costs," Condra said, noting that it would help
eliminate many of the write-offs associated with the hand-written invoices.
The site will also offer suggestions on what needs to be ordered, based on past consumption.
"For customers, its driving profitability; now it's truly a partnership," Condra said. "With
partners and distributors, it's about our supply chain. Over time, it's really going to be a response
to their needs. They can go to this one location and have those needs met."
Coca-Cola is turning to SAP for the underlying technology. While the requirements of the site
demanded a business-to-business approach, the fact that it would eventually reach 3 million end
customers, many of whom are small store owners, demanded a simple business-to-consumer
interface.
"For an outlet manager to understand the dynamics would be very difficult, so we've assisted
them in that process," Condra said. "The standard CRM out of the box from an e-commerce
standpoint would have had a lot of steps. We tried to think about the mandatory clicks a
customer has to enter."
9
Coca-Cola called in Edison, N.J.-based Fujitsu Consulting to help with the project. The first step
in establishing the site was to form a creative design team made up of two business owners, a
non-SAP Web design expert, a CRM functional e-commerce lead, and an SAP CRM technical
Java lead. They supplemented that with end users that represented everything from a business
owner running five outlets to small "mom and pop" shop owners.
The Web design experts presented their approach in html, and the SAP CRM experts outlined the
gap between what was available within SAP and what needed to be customized. They then
prioritized the development required.
"If the business impact is medium or lower and development time is 20, 30 or even 10 days, we
go back to them," said Sathish Thandale, project manager with Fujitsu. "They always had the
usability as the priority, and the SAP experts always had SAP CRM in their mind."
10
initiatives get done and we maintain the momentum generated in the partnership meeting.”
Coca-Cola Enterprises and SAP have formed a strategic partnership to develop Direct Store
Delivery (DSD) functionality. Coca-Cola joins leading Consumer Products (CP) manufacturers
like Colgate-Palmolive, Kimberly-Clarke, Hershey, and General Mills in partnering with SAP to
develop new functionality, including Trade Promotions Management (TPM), Supply Chain
Planning (SCP), customer analytics, and Product Lifecycle Management (PLM).
MARKET SHARE:
Being the biggest company in the soft drink industry, Coca Cola enjoys the
largest market share. This company controls about 59% of the world market.
Operation Review
11
NORTH LATIN EUROPE & ASIA AFRICA
AMERICA
AMERICA MIDDLE EAST
NORTH AMERICA
LATIN AMERICA
ASIA
AFRICA
So the volume is least in the Africa and most in the North America. The data
about the market share of this company area wise is given in the following table.
The above table shows the geographical earning of the Coca Cola Company and
from this data; we can find out that the customers of Coca Cola are increasing which is shown by
the company’s per capita income. Unit case equals 24 eight-ounce servings. The column, which
shows the non-alcoholic beverages consist of commercially, sold beverages, as estimated by the
Company based on available industry sources. The country column is derived from
The Company's unit case volume while the industry column includes
nonalcoholic ready-to-drink beverages only, as estimated by the Company based on available
industry sources.
12
Country Unit case growth Non- All commercial
alcoholi
Beverages
c
Drinks
Incom
e
North 4 5 3 3 2 2 22 15 398
America
United 4 5 3 3 2 2 23 16 419
States
Latin 6 7 6 6 3 4 24 15 205
America
Argentin 7 4 6 2 7 2 20 10 236
a
Brazil 5 5 3 6 3 5 23 13 144
Mexico 7 10 8 9 2 5 22 18 462
Europe 6 3 5 3 2 4 12 6 72
& Middle
13
East
Eurasia 17 8 6 5 (14) 1 14 5 39
France 8 3 9 3 7 3 9 5 110
Great 8 2 11 2 8 3 17 6 193
Britain
Italy 1 3 4 3 2 2 9 6 104
Middle 12 12 7 5 4 8 8 3 17
East
Spain 6 4 8 5 4 4 17 12 264
Asia 7 6 6 7 10 7 14 5 23
Africa 7 6 8 3 10 6 34 11 34
In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billion
and the average consumer enjoys close to two servings of our products each month. Through an
intense focus on Coca-Cola, innovation and new beverages, the company has achieved volume
growth of 10 percent in 2002. With developing economies and populations, this region has
strong long-term potential, and the company is building an exciting family of beverage brands in
addition to expanding the popularity of our core brands, led by Coca-Cola. In China, for
example, sales of Coca-Cola increased 6 percent. The total unit case sale of Coca Cola in Asia
can be shown by the following pie chart.
(Figure)
14
So the company is emphasizing more in this area and is trying to develop a strategy, which can
increase the growth of the consumption of Coca Cola by the people of Asia. Among the
countries of Asia, Japan has the highest percentage, which is about 29%. Among others,
Pakistan, India and Bangladesh are those countries where the average consumption is increasing
day by day.
15
CHAPTER #3
SOCIAL RESPONSIBILITY
SOCIAL RESPONSIBILITY
Corporate social responsibility:-
The following section of the report intends to present some examples of how Coca-Cola Sabco
partners with its communities to provide support in areas where assistance is required. While
Coca-Cola Sabco often provides funding for projects, many of our employees devote their own
time to the initiatives we support and we thank them as well as the many people from the
community organizations we partner with. Their selfless devotion to securing the welfare of
others helps make the world a place that we can be proud to live in.
16
control malaria at work and at home. During 2007 a further 5,000 insecticide-treated nets were
provided for employees to use at home. Physical activity and nutrition education are the focus of
Company efforts in countries where obesity and lifestyle diseases are rising. New programs have
been launched in Greece, in addition to those in Hungary, Romania and Ireland.
17
CHAPTER #4
Swot &
Pest analysis
SWOT ANALYSIS:-
Coca-Cola Company is one of the leading MNC in the world. It
has made a remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way. By going through its SWOT analysis we can know much more about the
company.
STRENGTH:
The company has got various strengths, which leads the company be a market
leader. Some of the strengths listed below:
The company has got various fast moving products which are going
great job in the market. These soft drinks not only quench thirst but also refresh everyone it
touches. One of the strong brands of the company is Coca-Cola, which specially doing well in
the Pakistan market. It has captured one of the major shares of the soft drink market.
B.) Advertising:
Advertising plays a major in promoting sales of the product. The company has
got one of the best advertising strategies. Appointing film actors, as the brand ambassadors,
makes a great impact on the mind of the customers. The company should try to launch more and
more advertising and sales campaigns to promote sales to the maximum
WEAKNESS:
As no man in this world is a complete man and so are the companies. Every
company has got weakness so as Coca-Cola Company too. Some of the weaknesses which the
company should overcome are as follows:
18
must go for some more bottling plants and should opt for better distribution channels to increase
the sales in the best possible manner.
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season. This also hamper the sales of the company as the retailers and
distributor get dilemma whether to place the next order or not as increase or decrease in price
may hamper their profit margin and blockage of the goods.
OPPORTUNITIES:
Instead of weakness and threats the company the company has got
various opportunities to which it has to go for. The opportunities for the company are as follows:
As Pakistan is said to be one of the biggest market in the world, thus the
company survive for long and can expands to its length and width. Still there are thousand of
villages which have not been covered by soft drink companies. If the company targets the rural
market it can easily make large profits and thus can also satisfy its aim to benefit and refresh the
whole nation.
Coca- Cola Company has got more than 300 brands which are
running successfully over the world. Thus it can launch some more brands in the country, after
studying the demand and desire of the people and can deep its roots by winning their minds and
hearts.
THREATS:
(A) Competitors:
19
One of the strong competitors of the company is Pepsi Co. thus it has to
formulate such strategies which make it to remain one step ahead and give a strong competition
to the competitors. Some of the other competitor in the path of growth to the company is the
local soft drinks manufacturers who play an active part at the time of peak season. The other
local refreshers like Amrat, Macca and fruit juice etc. which hampers the sales of the company.
The policies of the government also play a major role for the company.
The company can not perform well or in its own way by violating the rules of the government.
Thus if the government formulates some policies which creates hindrances in the working of the
company it will prove to be one of the major threats.
There are four variables, which we will discuss in our report, they are
POLITICAL VARIABLES
Effects of government NE
regulations &
deregulations
Effect of political NE
20
conditions in certain
countries of Coke
As far as the above table is concerned it could be seen that there are very little chances of
“political variables” to effect the coke’s production and selling behavior. In the “political
variables” most of the things are related to Governmental activities. So, they don’t leave any
good or bad impact in the Industry of coke.
And there are some exceptional things like: “environmental protection laws” they some what
effect the industry of Coke. From last two years Government is going to be really very much
conscious about the environment. But after making the adjustments in plants and applying the
proper way of wastage the chances of being affected by the “protection laws” are going to be
diminished. So it impact good for the Coke’s reputation. And the second thing in political
variables which effects Coke is “elections & military take over” Because in the days of elections
and marshal law’s condition the countries production in any field is declined. So it affects
slightly the revolution of Coke.
So “political conditions” are over all leave neutral effects on coke’s industry.
ECONOMICAL VARIABLES
21
Do soaring interest rates YES
make business task any
harder
22
SOCIAL VARIABLES
EDUCATION
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families around the
world.
The Coca-Cola Company is committed to helping people make their dreams come true. All over
the world, we are involved in innovative programs that give hard-working, Knowledge-hungry
students books, supplies, places to study and scholarships. From youth in Brazil to first
generation scholars, educational programs in local communities are our priority.
ENVIRONMENT
23
A large part or our relationship with the world around us is our
relationship with the physical world. While we have always sought to be sensitive to the
environment, we must use our significant resources and capabilities to provide active leadership
on environmental issues, particularly those relevant to our business. We want the world we share
to be clean and beautiful. We are always innovating to bring you different delicious beverages.
This same spirit of innovation comes alive in our environment programs. We’re committed to
preserving our environment, from use of more than $ 2 billion (U.S) a year in recycling content
and suppliers, and environment Management initiatives, down to very local neighborhood
collection and beautification efforts. Here’s a sample of what we’re doing in different
communities around the world regarding the conservation of water and natural resources, climate
changes, waste environment education.
The Coca-Cola system in Pakistan operates through eight bottlers. Four of which are majority-
owned by Coca-Cola Beverages Pakistan Limited (CCBPL).
COMMUNITY INVOLVEMENT:
TECHNOLOGICAL VARIABLES
variables
Effected Effected
24
innovations
effectively
promoted your
business
As the coke helping in promoting “paperless environment” .it impacts good, because computers
are the basic need of any person now a days. And though it’s a big industry thus it is promoting
the trend of paperless environment. And it is giving the way of other industries to come to new
25
technologies and into a new world of business. Through computers coke can increase the
efficiency of its business and can have up –to-date data about their productions.
26
CHAPTER#5
CONCLUSION &
RECOMMENDATIONS
RECOMMENDATIONS
After completing our project we have concluded some recommendation for the coca cola
company, which are following.
Coca Cola Company should try to emphasis more on providing their infrastructure in the
market to facilitate their customers.
According to the survey, conducted by the international firm Pakistani people like little
bit sweeter cola drink. So for this coca cola company should produce their product
according to the local demand.
Marketing team should try to increase the availability of Coke in rural areas.
They should also focus the old people.
Now young generation has a trend to drink coke 2 regular bottles at same time, so
providing more satisfaction to them company should introduce ½ liter disposable bottle.
27
Reference
www.coca-cola.com/
www.coca-cola.com/template1/index.jsp?locale=en_US
www.thecoca-colacompany.com/
www.pakvisit.com/.../jobs%20in%20coca%20cola%20Pakistan.htm
en.wikipedia.org/wiki/The_Coca-Cola_Company
www.thecoca-colacompany.com/.../chronicle_birth_refreshing_idea.html -
www.likecool.com/Coca_Cola_History--Pic--Gear.html
www.ideafinder.com/history/inventions/cocacola.htm
www.thecoca-colacompany.com/.../av_advertising.html
www.psdeluxe.com/.../100-old-coca-cola-ads-and-posters.html
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