MAGADH UNIVERSITY

Bodhgaya, Bihar, India

A Project Report on

INTERNATIONAL PRICING STRATEGY OF

Submitted in partial fulfillment for the award of the degree of

BACHELOR OF BUSINESS MANAGEMENT
Session: 2015-2018

Submitted By: SURBHII

Registration No. : 154620705532
College Code: 462

Under the Guidance of Mr. Nitish Kumar

CIMAGE COLLEGE

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 DECLARATION

I SURBHII, student of BBM , CIMAGE COLLEGE , PATNA, BIHAR ,hereby declare

that this project report titled “International Pricing Strategy of Coca-Cola
Company” is the record of authentic work carried out by me during the period
of 10th April to 25th April 2018.

The project report has not been submitted to any other university or institute
for the award of any diploma etc.

Signature :

Date :

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 ACKNOWLEDGEMENT
It is my great pleasure to present this report before you. I sincerely would like
to show my gratitude towards all those persons who have helped me
throughout my project work.

I am heartily thankful to Nitish Sir for giving me his valuable guidance for
preparing this report. I would like to express my special thanks to all the
another official who has helped me a lot during this SIP. Their critical advices
helped me to make this report more effective.

Moreover, I thanks to Rajesh sir who guided me before and after the industrial
training. He gave me great support to prepare this project, too. And all who
directly or indirectly helped me in preparing this report.

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 CONTENTS
EXECUTIVE SUMMARY

CHAPTER 1 INTRODUCTION

CHAPTER 2 COMPANY PROFILE

 COCA-COLA COMPANY
 GLOBAL MARKET SHARE OF COCA-COLA
 TRENDS AND FORCES
 POTER’S FIVE FORCES
 PESTLE ANALYSIS
 SWOT ANALYSIS
 COCA-COLA INDIA
 MARKETING MIX IN INDIA

CHAPTER 3 PRICING IN INDIA

CHAPTER 4 PRICING IN PAKISTAN

CHAPTER 5 COCA-COLA MEXICO

CHAPTER 6 COCA-COLA AMATIL

CHAPTER 7 COCA-COLA LIFE IN FRANCE

CONCLUSION

BIBLIOGRAPHY

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 EXECUTIVE SUMMARY
This report has been prepared with a specific purpose in mind. It outlines the
history and current scenario of the Coca-Cola Company globally and locally.
The first part of the study takes us through the present state of affairs of the
beverage industry and Coca-Cola Company globally.

The report contains a brief introduction of Coca Cola Company and Coca-Cola
India and a detailed view of the tasks, which have been undertaken to analyze
the market of Coca-Cola i.e. we have performed Competitive, PESTLE and
SWOT analysis of Coca-Cola Company and PESTLE and SWOT analysis of
Coca-Cola India in order to identify areas of potential growth for Coca-Cola.
We have also given a brief description of Trends and Forces that are affecting
Coca-Cola Company globally.

The main objective of this project report is to analyze and study in efficient way
the current position of Coca- Cola Company. The study also aims to perform
Market Analysis of Coca-Cola Company & find out different factors effecting
the growth of Coca-Cola. Another objective of the study was to perform
Competitive analysis between Coca-Cola and its competitors. Apart from these
objectives this study is also conducted to understand the Customer preferences
towards various Coca-Cola products.

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 INTRODUCTON
Let reason go before every enterprise,

And counsel before every action

Research is a human activity based on intellectual investigation and is aimed at

discovering, interpreting, and revising human knowledge on different aspects of
the world.

MARKETING RESEARCH:-

Marketing research is the function that links the consumer, customer and public
to the marketer through information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve understanding of marketing as a
process. Marketing research specifies the information required to address these
issues, designs the methods for collecting information, manages and implements
the data collection process, analyzes and communicates the findings and their
implications.

-American Marketing Association

Marketing research is about researching the whole company‘s marketing

process.

-Palmer (2000)

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 INTRODUCTION TO COCA-COLA

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the world‘s leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly
400 beverage brands. It sells beverage concentrates and syrups to bottling and canning
operators, distributors, fountain retailers and fountain wholesalers. The Company‘s beverage
products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-
ready-to-drink powder products. In addition to this, it also produces and markets sports
drinks, tea and coffee. The Coca- Cola Company began building its global network in the
1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-
Cola system has successfully applied a simple formula on a global scale: ―Provide a moment
of refreshment for a small amount of money- a billion times a day.‖

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that system is
dedicated to people working long and hard to sell the products manufactured by the
Company. This unique worldwide system has made The Coca-Cola Company the world‘s
premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola,
more than any other consumer product, has brought pleasure to thirsty consumers around the
globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for
hundreds of millions of people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by
working with its business partners to deliver satisfaction and value to consumers through a
worldwide system of superior brands and services, thus increasing brand equity on a global
basis. They aim at managing their business well with people who are strongly committed to
the Company values and culture and providing an appropriately controlled environment, to
meet business goals and objectives. The associates of this Company jointly take
responsibility to ensure compliance with the framework of policies and protect the
Company‘s assets and resources whilst limiting business risks.

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 COMPANY PROFILE

MISSION:

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.

 To refresh the world...

 To inspire moments of optimism and happiness...
 To create value and make a difference.

VISION:
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.
 People: Be a great place to work where people are inspired to be the best they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
 Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
 Profit: Maximize long-term return to shareowners while being mindful of our
overall responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.

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WINNING CULTURE:
Our Winning Culture defines the attitudes and behaviours that will be required of us to make
our 2020 Vision a reality.

LIVE OUR VALUES :

Our values serve as a compass for our actions and describe how we behave in the world.
 Leadership: The courage to shape a better future.
 Collaboration: Leverage collective genius.
 Integrity: Be real.
 Accountability: If it is to be, it's up to me.
 Passion: Committed in heart and mind.
 Diversity: As inclusive as our brands.
 Quality: What we do, we do well.
FOCUS ON THE MARKET:
 Focus on needs of our consumers, customers and franchise partners.
 Get out into the market and listen, observe and learn.
 Possess a world view.
 Focus on execution in the marketplace every day.
 Be insatiably curious.
WORK SMART:
 Act with urgency.
 Remain responsive to change.
 Have the courage to change course when needed.
 Work efficiently.

ACT LIKE OWNERS:

 Be accountable for our actions and inactions.
 Steward system assets and focus on building value.
 Reward our people for taking risks and finding better ways to solve problems.
 Learn from our outcomes -- what worked and what didn‘t.
BE THE BRAND:
Inspire creativity, passion, optimism and fun.

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 HISTORY OF COCA-COLA

The prototype Coca-Cola recipe was formulated at the Eagle Drug and
Chemical Company, a drugstore in Columbus, Georgia by John Pemberton,
originally as a coca wine called Pemberton's French Wine Coca. He may have
been inspired by the formidable success of Vin Mariani, a European cocawine.

In 1886, when Atlanta and Fulton County passed prohibition legislation,

Pemberton responded by developing Coca-Cola, essentially a non-alcoholic
version of French Wine Coca. The first sales were at Jacob's Pharmacy in
Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for
five cents a glass at soda fountains, which were popular in the United States at
the time due to the belief that carbonated water was good for the health.[9]
Pemberton claimed Coca-Cola cured many diseases, including morphine
addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the
first advertisement for the beverage on May 29 of the same year in the Atlanta
Journal.

By 1888, three versions of Coca-Cola — sold by three separate businesses —

were on the market. Asa Griggs Candler acquired a stake in Pemberton's
company in 1887 and incorporated it as the Coca Cola Company in 1888. The
same year, while suffering from an ongoing addiction to morphine, Pemberton
sold the rights a second time to four more businessmen: J.C. Mayfield, A.O.
Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's
alcoholic son Charley Pemberton began selling his own version of the product.

John Pemberton declared that the name "Coca-Cola" belonged to Charley, but
the other two manufacturers could continue to use the formula. So, in the
summer of 1888, Candler sold his beverage under the names Yum Yum and
Koke. After both failed to catch on, Candler set out to establish a legal claim to

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Coca-Cola in late 1888, in order to force his two competitors out of the
business. Candler purchased exclusive rights to the formula from John
Pemberton, Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier
came forward to claim her signature on the bill of sale had been forged, and
subsequent analysis has indicated John Pemberton's signature was most likely a
forgery as well. In 1892 Candler incorporated a second company, The Coca-
Cola Company (the current corporation), and in 1910 Candler had the earliest
records of the company burned, further obscuring its legal origins. By the time
of its 50th anniversary, the drink had reached the status of a national icon in the
USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after the
company made minor changes in the sourcing of some ingredients. Coca-Cola
was sold in bottles for the first time on March 12, 1894. The first outdoor wall
advertisement was painted in the same year as well in Cartersville, Georgia.
Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in
Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its
proprietor was Joseph A. Biedenharn. The original bottles were Biedenharn
bottles, very different from the much later hobble-skirt design that is now so
familiar. Asa Candler was tentative about bottling the drink, but two
entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph
B. Whitehead, proposed the idea and were so persuasive that Candler signed a
contract giving them control of the procedure for only one dollar. Candler never
collected his dollar, but in 1899 Chattanooga became the site of the first Coca-
Cola bottling company. The loosely termed contract proved to be problematic
for the company for decades to come. Legal matters were not helped by the
decision of the bottlers to subcontract to other companies, effectively becoming
parent bottlers. Coke concentrate, or Coke syrup, was and is sold separately at
pharmacies in small quantities, as an over-the-counter remedy for nausea or
mildly upset stomach.

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On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the
formula of the drink with "New Coke". Follow-up taste tests revealed that most
consumers preferred the taste of New Coke to both Coke and Pepsi, but Coca-
Cola management was unprepared for the public's nostalgia for the old drink,
leading to a backlash. The company gave in to protests and returned to a
variation of the old formula, under the name Coca-Cola Classic on July 10,
1985.

On February 7, 2005, the Coca-Cola Company announced that in the second

quarter of 2005 they planned to launch a Diet Coke product sweetened with the
artificial sweetener sucralose, the same sweetener currently used in Pepsi One.
On March 21, 2005, it announced another diet product, Coca-Cola Zero,
sweetened partly with a blend of aspartame and acesulfame potassium. In 2007,
Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins B6, B12,
magnesium, niacin, and zinc, marketed as "Diet Coke Plus‖. On July 5, 2005, it
was revealed that Coca-Cola would resume operations in Iraq for the first time
since the Arab League boycotted the company in 1968.

In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to
"Coca-Cola." The word "Classic" was truncated because "New Coke" was no
longer in production, eliminating the need to differentiate between the two. The
formula remained unchanged.

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels
of 16-ounce bottles sold in parts of the southeastern United States. The change
is part of a larger strategy to rejuvenate the product's image. In November 2009,
due to a dispute over wholesale prices of Coca-Cola products, Costco stopped
restocking its shelves with Coke and Diet Coke.

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 GLOBAL MARKET SHARE OF COCA-COLA

In 2009, the company generated revenues of $31 billion with $6.8 billion net income. An
increased consumer preference for healthier drinks has resulted in slowing growth rates for
sales of carbonated soft drinks (abbreviated as CSD), which constitutes 78% of KO‘s sales.
KO‘s profits are also vulnerable to the volatile costs for the raw materials used to make
drinks - such as the corn syrup used as a sweetener, the aluminium used in cans, and the
plastic used in bottles. Furthermore, slowing consumer spending in Coke's large North
American market compounds the challenge of increasing costs and a weak economic
environment. Finally, Coca-Cola earns approximately 75% of revenue from international
sales, exposing it to currency fluctuations, which are particularly adverse with a stronger U.S.
Dollar (USD).

Despite these challenges, Coca-Cola has remained profitable. Though the non-CSD market is
growing quickly, the traditional CSD market is still large in terms of both revenues and
volume and highly lucrative. The size and variety of KO‘s offerings in the CSD category,
coupled with the unparalleled brand equity of the Coca-Cola trademark, has allowed KO to
maintain its share of this important market. KO has also responded to consumers‘ changing
tastes with new, non-CSD product launches and acquisitions such as that of Glaceau in 2007.
Strong international growth has also more than offset a weak domestic market.

On February 25, Coca-Cola Company announced its plan to buy Coca-Cola Enterprises (CCE)
for $12.3 million.[7] Since spinning of Coca-Cola Enterprises (CCE) 24 years ago, the soft
drink market has changed dramatically with consumers buying fewer soft drinks and more
non-carbonated beverages, such as Powerade and Dasani water. Under the new deal, Coca-
Cola Company will take control of the bottler's North America operations, giving the
company control over 90% of the total North America volume. In return, Coca-Cola
Enterprises will take over Coke's bottling operations in Norway and Sweden, becoming a
European-focused producer and distributor.

In March 2010, Coca-Cola Company entered into discussions to buy the Russian juice
company, OAO Nidan Juices. The company is 75% owned by a private equity firm in
London and 25% by its Russian founders and controls 14.5% of the Russian juice market. If
successful, the purchase would add to Coca-Cola's 20.5% market share, passing Pepsi's 30%
market share. The Russian juice market is estimated to be $3.2 billion dollars, and estimates
of Nidan's purchase price are between $560-$620 million.

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In April 2010, Coca-Cola Company purchased a majority share of Innocent, the British fruit
smoothie maker. Last year the company bought an 18% share of the company for more than
$45 million, and recent purchases of additional shares increased Coke's stake to 58%.

In June 2010, Coca-Cola Company agreed to pay Dr Pepper Snapple Group (DPS) $715
million for the continued right to sell their products following the company's acquisition of
Coca-Cola Enterprises (CCE). The deal covers the next 20 years with an option to renew for an
additional 20 years.

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 TRENDS AND FORCES

 The Global Economic Recession Threatens Overall Demand:

In 2008 and 2009, the global economy has fallen into a recession. Not just the United States
but countries from all over the world have felt the impacts of the 2008 Financial Crisis. This
may be a problem for Coke, which derives approximately 75% of its sales from outside North
America. Still, the company has positioned itself well in international markets both
organically and through acquisitions, such as that of Chinese juice maker Huiyuan for $2.4
billion. However the company was unsuccessful with its purchase of Huiyuan as it broke
antitrust laws in China. On March 5, 2010, Coke's CEO said that emerging markets are
bouncing back quicker than more developed markets.

 New Aversion to Soda Threatens Main Business:

74% of the Coca Cola Company's products are classified as carbonated soft drinks, making it
particularly sensitive to changes in demand for CSD. Consumer demand for CSD has been
negatively affected by concerns about health and wellness. This is true across most of KO's
markets. There has been an increase in the number of regulations regarding CSD in the
United States in response to the heightened desire for healthy food consumption.

In 2006, many state public school systems banned the sale of soft drinks on their campuses.
The Centre for Science and Public Interest proposed that a warning label be placed on all
beverages containing more than 13g of sugar per 12-oz serving. This proposal would affect
all non-diet, full calorie drinks produced by KO. These factors have driven a shift in
consumption away from CSD to healthier alternatives, such as tea, juices, and water.

Within the CSD segment consumers have been moving away from sugared drinks, opting
instead for diet beverages, which do not generally contain any sugar or calories.

Though KO has been somewhat slow to respond to this shift in consumer preferences, it has
recently begun to increase its development of both diet CSD and non-CSD beverages. KO is
faced with the task of balancing the risk of new innovations with the low growth rates of
established brands, a predicament for manufactures throughout the beverage industry.

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  Integrated Bottler Strategy Increases Flexibility:
After CEO Neville Isdell was brought out of retirement in 2004 to revive the then flagging
beverage maker, one of the first areas that he targeted for improvement was KO's frayed
relations with its extensive network of bottlers. Since consolidating all company-owned
bottlers into the Bottling Investments division, Isdell has continued to increase KO's interest
in its bottlers through stake purchases or outright buyouts. This strategy represents a
weakening of the division between KO's production and distribution operations. Isdell
believes that by combining production and distribution operations the company will have
enhanced its ability to quickly respond to changing market conditions. In KO's 2007 Q3
Analyst call, Isdell credited the outright purchase of Coca-Cola Bottlers Philippines (CCBPI)
for double-digit volume growth in that country. Additionally, KO has signed new agreements
with many of its bottlers which allow them to distribute drinks produced by other companies.
For example, Coca-Cola Enterprises (CCE) now distributes Arizona, a ready-to-drink tea made
by Ferolito, Vultaggio & Sons, an American iced-tea company. Isdell sees these agreements
as another way of taking advantage of the rapidly growing non-CSD market.

 Bottled Water Falling Out of Favour:

In Q3 2009, Dasani bottled water's revenues fell by double digits; this decrease is emblematic
of the bottled water industry as a whole. In August 2009, the Wall Street Journal reported that
sales of bottled water had fallen for the first time in five years. The combination of the
recession and upper class consumers' increased environmental consciousness has lead many
customers to cut back on bottled water in favour of tap water and reusable containers.
Following this trend, at least one town in Washington state and one in Australia have
outlawed the selling of bottled water within their city limits. In 2008, bottled water was the
third most popular beverage (behind soda and milk), but compared to 2007, Americans
consumption declined for the first time, down to 8.7 billion gallons from 8.8 billion gallons.
Although this is a seemingly small decrease, industry experts don't expect bottled water to
bounce back anytime soon.

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  Dollar Affects International Performance:

Another trend affecting Coca-Cola is the relative strength of the U.S. Dollar (USD). Although
the company is based in the US, KO derives about 75% of its operating income from outside
United States. Because of this, the company is very sensitive to the strength of the dollar. As
foreign currencies weaken relative to the dollar, goods sold in foreign markets are suddenly
worth fewer dollars back in the US, lowering earnings. Thus, if the dollar strengthens (as it
did in the second half of 2008 and 2009), it has a negative effect on KO's earnings. Coca-
Cola executives expect currency fluctuations to adversely affect 3Q09 operating income by
10-12% and 4Q09 operating income by high single digits.

KO has broad exposure to foreign currencies and actively hedges a large portion of these to
avoid wide swings in earnings from currency fluctuations. Although this hedging insulates
from the potential downside of a strengthening dollar, it also limits larger gains from drastic
downswings in the dollar's value.

 Commodity Cost Fluctuations Affect Margins:

The Coca-Cola Company‘s profitability can be affected both directly and indirectly by the
costs of various production inputs. KO itself is responsible for purchasing the raw materials
used to make its concentrates and syrups. Variations in the prices for these goods can affect
the company‘s total cost of production as well as its profit margins. Changes in the
production costs of bottlers can also impact KO‘s profitability, though in a more indirect way.
If the raw materials necessary for bottling become more expensive, the bottler may be forced
to drastically raise prices to compensate.

Such a price increase would likely hurt KO, given the competitive nature of the non-
alcoholic beverage industry, and provide a possible incentive for consumers to switch to other
companies‘ beverages.

Aluminium, corn, and PET resin are three examples of such production goods used by bottlers
that could have significant bearing on the Coca-Cola Company‘s profit margins. In 2007, the
prices of these commodities rose drastically with general commodities bubble and
dramatically pressured margins. They receded in 2008, but the possibility of another
significant rise in Commodities represents a constant threat to profits.

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 POTER‟S FIVE FORCES

 RIVALRY AMONG EXISTING FIRMS:

The greatest competition that Coca-cola faces is from the rival sellers within the industry.
Coca-Cola, Pepsi Co, and Cadbury Schweppes are among the largest competitors in this
industry, and they are all globally established which creates a great amount of competition.
Aside from these major players, smaller companies such as Cott Corporation and National
Beverage Company make up the remaining market share. All five of these companies make a
portion of their profits outside of the United States.

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Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola, Diet Coke, Fanta,
and Sprite), it had lower sales in 2005 than did PepsiCo (Murray, 2006c). However, Coca-
Cola has higher sales in the global market than PepsiCo, PepsiCo is the main competitor for
Coca-Cola and these two brands have been in a power struggle for years (Murray, 2006c).
Coke has been more dominant with a 53% of market share as in 1999 compared to Pepsi with
a market share of 21%.

According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S. market
share has increased to 30.8%, while the Coca-Cola Company's has decreased to 42.7% due to
Pepsi marketing schemes still the higher large gap between the market share can be attributed
to the fact that Coca-Cola took advantage of Pepsi entering the market late and has set up its
bottler's and distribution network especially in developed markets.

"The Coca-Cola Company" is the largest soft drink company in the world. Every year
800,000,000 servings of just "Coca-Cola" are sold in the United States alone. Bottling plants
with some exceptions are locally owned and operated by independent business people who
are native to the nations in which they are located. Coca-Cola manufactures, distributes and
markets non-alcoholic beverage concentrates and syrups, including fountain syrups.

It supplies concentrates and beverage bases used to make the products and provides
management assistance to help it's bottler's ensure the profitable growth of their business.
This has put Pepsi at a significant disadvantage compared to US market. Overall, Coca-Cola
continues to outsell Pepsi in almost all areas of the world. However, exceptions include India,
Saudi Arabia and Pakistan.

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By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India after
a new government ordered, The Coca-Cola Company to turn over its secret formula for Coke
and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act
(FERA).

In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.
This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands
was allowed. PepsiCo bought out its partners and ended the joint venture in 1994. In 1993,
The Coca-Cola Company returned in pursuance of India's Liberalization policy. In 2005, The
Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in
India. Coca-Cola India's market share was 52.5%.

In Russia, Pepsi initially had a larger market share than Coke but it was undercut once the
Cold War ended. In 1972, Pepsi Co Company struck a barter agreement with the government
of the Soviet Union, in which Pepsi Co was granted exportation and Western marketing
rights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola.

This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the
U.S.S.R. Pepsi, as one of the first American products in the Soviet Union, became a symbol
of that relationship and the Soviet policy.

Brand name loyalty is another competitive pressure. The Brand Keys Customer Loyalty
Leaders Survey (2004) shows the brands with the greatest customer loyalty in all industries.
Diet Pepsi ranked 17th and Diet Coke ranked 36th as having the most loyal customers to their
brands. The new competition between rival sellers is to create new varieties of soft drinks,
such as vanilla and cherry, in order to increase sales and getting new customers.

Pepsi is however trying to counter this by competing more aggressively in the emerging
economies where the dominance of Coke is not as pronounced, with the growth in emerging
markets significantly expected to exceed the developed markets, rivalry in international
market is going to be more pronounced.

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Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke, supporting
Pepsi's positioning as "The Choice of a New Generation." In 1975, Pepsi began showing
people doing blind taste tests called Pepsi Challenge in which they preferred one product over
the other. Pepsi started hiring more popular spokespersons to promote their products.

In the late 1990s, Pepsi launched its most successful long-term strategy of the Cola Wars,
Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points on
billions of packages and cups. They could redeem the points for free Pepsi lifestyle
merchandise. After researching and testing the program for over two years to ensure that it
resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success.

Tens of millions consumers participated. Pepsi outperformed Coke during the summer of the
Atlanta Olympics, held at Coke's hometown where Coke was the lead sponsor for the Games.
Due to its success, the program was expanded to include Mountain Dew into Pepsi's
international markets worldwide. The company continued to run the program for many years,
continually innovating with new features each year.

Coca-Cola and Pepsi engaged in a "cyber-war" with the re-introduction of Pepsi Stuff in 2005
& Coca-Cola retaliated with Coke Rewards. This cola war has now concluded, with Pepsi
Stuff ending its services and Coke Rewards still offering prizes on their website. Both were
loyalty programs that give away prizes and product to consumers after collecting bottle caps
and 12 or 24 pack box tops, then submitting codes online for a certain number of points.
However, Pepsi's online partnership with Amazon allowed consumers to buy various
products with their "Pepsi Points", such as mp3 downloads. Both Coca-Cola and coke
previously had a partnership with the iTunes Store.

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  POTENTIAL ENTRANTS:

New entrants are not a strong competitive pressure for the soft drink industry. Coca-Cola and
Pepsi Co dominate the industry with their strong brand name and great distribution channels.
In addition, the soft-drink industry is fully saturated and growth is small. This makes it very
difficult for new, unknown entrants to start competing against the existing firms.

Another barrier to entry is the high fixed costs for warehouses, trucks, and labour, and
economies of scale. New entrants cannot compete in price without economies of scale. These
high capital requirements and market saturation make it extremely difficult for companies to
enter the soft drink industry therefore new entrants are not a strong competitive force.

Capital requirements for producing, promoting, and establishing a new soft drink
traditionally have been viewed as extremely high. According to industry experts, this makes
the likelihood of potential entry by new players quite low, except perhaps in much localized
situations that matter little to Coke or Pepsi. Yet, while this view may reflect conventional
wisdom, some industry observers question whether a new time is coming, with 'new age'
beverages selling to well-informed and health-informed and health-conscious consumers.
This issue was beginning to grab the attention of both Coke and Pepsi in the summer of
1992, when they both were not able to explain a drop in their June 1992 sales.

 SUBSTITUTES:

Numerous beverages are available as substitutes for soft drinks. Citrus beverages and fruit
juices are the more popular substitutes. Availability of shelf space in retail stores as well as
advertising and promotion traditionally has had a significant effect on beverage purchasing
behaviour. Overall total liquid consumption in the United States in 1991 included Coca-
Cola's 10% share of all liquid consumption.
―For years the story in the non-alcoholic sector centred on the power struggle between Coke
and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on
new product flavours and looking to noncarbonated beverages for growth.‖

Substitute products are those competitors that are not in the soft drink industry. Such
substitutes for Coca-Cola products are bottled water, sports drinks, coffee, and tea, juices etc.

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Bottled water and sports drinks are increasingly popular with the trend to be a more health
conscious consumer. There are progressively more varieties in the water and sports drinks
that appeal to different consumer's tastes, but also appear healthier than soft drinks.

In addition, coffee and tea are competitive substitutes because they provide caffeine. The
consumers who purchase a lot of soft drinks may substitute coffee if they want to keep the
caffeine and lose the sugar and carbonation.

Blended coffees are also becoming popular with the increasing number of Starbucks, Barista
and CCD stores that offer many different flavours to appeal to all consumer markets. It is also
cheap for consumers to switch to these substitutes making the threat of substitute products
very strong (Datamonitor, 2005).

The growth rate has been recently criticized due to the market saturation of soft drinks.
Datamonitor (2005) stated, ―Looking ahead, despite solid growth in consumption, the global
soft drinks market is expected to slightly decelerate, reflecting stagnation of market prices.‖
The change attributed to the other growing sectors of the non-alcoholic industry including tea
& coffee is 11.8% and bottled water is 9.3%. Sports drinks and energy drinks are also
expected to increase in growth as competitors start adopting new product lines.

Profitability in the soft drink industry will remain rather solid, but market saturation has
caused analysts to suspect a slight deceleration of growth in the industry (2005). Because of
this, soft drink leaders are establishing themselves in alternative markets such as the snack,
confections, bottled water, and sports drinks industries.

In order for soft drink companies to continue to grow and increase profits they will need to
diversify their product offerings. So in order to compete with the substitutes industry, coca-
cola has diversified from just carbonated drink industry to other substitute and so have other
brands like Pepsi, Dr pepper/Snapple.

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  BARGANING POWER OF BUYERS:
Individual consumers are the ultimate buyers of soft drinks. However, Coke and Pepsi's real
'buyers' have been local bottlers who are franchised -or are owned, especially in the case of
Coke- to bottle the companies' products and to whom each company sells its patented
syrups or concentrates. While Coke and Pepsi issue their franchise, these bottlers are in
effect the 'conduit' through which these international cola brands get to local consumers

Through the early 1980's, Coke's domestic bottlers were typically independent family
businesses deriving from franchises issued early in the century. Pepsi had a collection of
similar franchises, plus a few large franchisees that owned many locations. Until 1980, Coke
and Pepsi were somewhat restricted in owning bottling facilities, which was viewed as a
restraint of free trade. Jimmy Carter, a Coke fan, changed that by signing legislation to
allow soft-drink companies to own bottling companies or territories, plus upholding the
territorial integrity of soft-drink franchises, shortly before he left office.

Also, the three most important channels for soft drinks are supermarkets, fountain sales, and
vending. In 1987, supermarkets accounted for about 40% of total U.S. soft drink industry
sales, fountain sales represented about 25%, and vending accounted for approximately 13%.
Other retailers represent the remaining percentage. While both Coca-Cola and Pepsi
distribute their bottled soft drinks through a network of bottling companies, Coca-Cola uses
its own network of wholesalers for their fountain syrup distribution, and Pepsi distributes its
fountain syrup through its bottlers.

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  BARGANING POWER SUPPLIERS:
The principal raw material used by the soft-drink industry in the United States is high
fructose corn syrup, a form of sugar, which is available from numerous domestic sources.
The principal raw material used by the soft-drink industry outside the United States is
sucrose. It likewise is available from numerous sources. Another raw material increasingly
used by the soft-drink industry is aspartame, a sweetening agent used in low-calorie soft-
drink products. Until January 1993, aspartame was available from just one source -the
NutraSweet Company, a subsidiary of the Monsanto Company- in the United States due to
its patent, which expired at the end of 1992. Coke managers have long held 'power' over
sugar suppliers. They view the recently expired aspartame patents as only enhancing their
power relative to suppliers.

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 PESTEL ANALYSIS OF COCA- COLA

PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It
is a tool that helps the organisations for making strategies and to know the EXTERNAL
environment in which the organisation is working and is going to work in the future.

Coca-Cola beverage, which is the leading manufacturer and distributor of non-alcoholic

drinks also need to undergo this PESTLE analysis to know about the external environment
(especially their competitors and the opportunities available) in order to keep pace with the
fast growing economy.

Political Analysis:

Political factors are how far a government intervenes in the operations of the company. The
political factors may include tax policy, trade restrictions, environmental policy, laws
imposed on the recruiting labours, amount of permitted goods by the government and the
service provided by the government.

Globally, Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and
Drug Administration), it is an agency in the United States Department of Health and Human
Services. Its headquarters is in USA and it has started opening offices in foreign countries as
well. The job of the FDA is to check and certify whether the ingredients used in the
manufacturing of Coca-Cola products in the particular country is meeting to the standards or
not. In Coca-Cola the company takes all the necessary steps to analyze thoroughly before
introducing any ingredients in its products and get prior approval from the FDA. The
company also has to take into consideration of the regulation imposed by FDA on plastic
bottled products.

Apart from FDA the other political factors includes tax policies and accounting standards.
The accounting standards used by the company changes from time to time which have a
significant role in the reported results.

The company also is subjected to income tax policies according to the jurisdiction of various
countries. In addition to this, the company is also subjected to import and excise duties for
distribution of the products in the countries where it does not have the outsourcing units.

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Moreover, if there is any unrest or changes in the government and any kind of protest by the
political activists may decline the demand for the products. Also the situations like the unsure
conditions prevailing in Iraq and escalation of the terrorist activities in these areas could
affect the international market of our product. It creates an inability for the company to
penetrate in the markets of such countries.

Economic Factors:

The economic factors analyze the potential areas where the firm can grow and expand. It
includes the economic growth of the country, interest rates, exchange rates, inflation rates,
wage rates and unemployment in the country.

The company first analyzes the economic condition of the country before venturing into that
country. When there is an economic growth in the country, the purchasing power among
people increases. It gives the company or the marketer a good chance to market the product.
Coca-Cola, in the past identified this correctly and rightly started its distribution across
various countries. The net operating profits for the company outside US stands at around
72%. Along with this the company uses 63 various types of currencies other than US
Dollar. Hence there is a definite impact in the revenues due to the fluctuating foreign
currency exchange rates. A strong and weak currency tends to affect the exporting of the
products globally.

Interest rates are the rate which is imposed on the company for the money they have
borrowed from government. When there is an increase in the interest rates, it may deter the
company in further investment as the cost for borrowing is higher. Coca-Cola uses derivative
financial instruments to cope up with the fluctuating interest rates. Inflation and wage rate go
hand in hand, when there is an increase in the inflation the employee demand for a higher
wage rate to cope up with the cost of living.

This comes as additional cost for the company which cannot be reflected in the price of the
final product as the competition and risk in this segment is higher. This is a threat in the
external environment faced by the company. From the above explanation it is clearly seen
that the economic factors involves a major impact in the behaviour of the company during
various economic situations.

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Social Factors:

Social factors are mainly the culture aspects and attitude, health consciousness among people,
population growth with age distribution, emphasis on safety. The company cannot change the
social factors but the company has to adjust itself to the changing society. The company
adapts various management strategies to adapt to these social trends.

Coca-Cola which is a B2C company, is directly related to the customer, so social changes are
the most important factors to consider. Each and every country has a unique culture and
attitude among the people. It is very important to know about the culture before marketing in
a particular country. Coca-Cola has about 3300+ products in their stable, when entering into
a country it does not introduce all the products. It introduces minimum number of products
according to the culture of the country and the attitude of the people.

Consumers and government are becoming increasingly aware of the public health
consequences, mainly obesity which is the second social factor in the soft drinks industry. It
inspired the company to venture into the areas of Diet coke and zero calorie soft drinks. The
problem of obesity is taken seriously among the youngsters who like to maintain a good
physique. Hence coke introduced dietary products for those youngsters who can enjoy coke
with zero calories. In one of the study it is said that ―Consumer from the age groups 37 to
55 are also increasingly concerned with nutrition‖. Since many are aware, they are
concerned with the longevity of their lives. This will affect the demand of the company in
the existing product and also is an opportunity to venture into new health and energy drinks
industry.

Population growth rate and the age distribution is another social factor to be considered. It is
very important because non-alcoholic markets have most of its share from the children and
youngsters. Adults used to celebrate mostly with alcohol. The age distribution of the country
becomes important for the success of the product in a country.

Technological Factors:

Technology plays a varied role in the soft drinks industry. The manufacturing and distribution
of the products is relatively a Low-Tech business, although the creation of a new product
with the perfect blend and taste is a science (an art in itself).

Technological contributions are most important in packaging. The company rely on their
bottling partners for a significant portion of their business. Nearly 83% of the worldwide unit
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case volume is manufactured and distributed by their bottling partners in whom the company
does not have controlling power. Hence it is necessary for the company to maintain a cordial
relation with their bottling partners. If the company do not give ample support in pricing,
marketing and advertising then the bottling industry while increase their short term profits,
may become detrimental to the company.

The advancement in technology in the company has led to: Introduction of new ways for the
availability of Coca-Cola, it introduced general vending machines all over the world. In
products it led to the development of new products like Cherry Coke, Diet Coke etc. The
technical advancement in the bottling industries include, introduction of recyclable and non
refillable bottles, introduction of cans which are trendy, stylish and popular among the
youngsters.

Legal Factors
The legal factors include discrimination law, customer law, antitrust law, employment law
and health and safety law. In Coca-Cola the business is subjected to various laws and
regulation in the numerous countries in which they do the business, the laws include
competition, product safety, advertising and labelling, container deposits, environment
protection, labour practices.

In the US the products of the company is subjected to various acts like Federal Food, Drug
and Cosmetic Act, the Federal Trade Commission Act, Occupation Safety and Health Act,
various environment related acts and regulations, the production, distribution, sale and
advertising of all the products are subjected to various laws and regulations. Changes in these
laws could result in increased costs and capital expenditures, which affects the company
profitability and also the production and distribution of the products.

Various jurisdictions may adopt significant regulations in the additional product labelling and
warning of certain chemical content or perceived health consequences. These requirements if
become applicable in the future the company must be ready to accept and have necessary
changes in hand for the same.

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Environment Factors
These factors include the environment such as the weather conditions and the seasons in
which people prefer to buy cool beverages. Also the company must follow the environmental
issues related to the product manufacturing, packaging and distributing in various countries.
It must adhere to the norms and market the product accordingly. Usage of renewable plastic
in the PET bottles is followed by the company strictly.

SWOT ANALYSIS OF COCA-COLA

STRENGTHES
WEAKNESS
World's leading brand.
Negative Publicity.
Large scale of operations.
Decline in cash from Operating
Robust revenue growth in 3 Activities.
segments.
Sluggish Performance in North
America.
SWOT
ANALYSIS
THREATS
OPPORTUNITIES
Acquisitions. Intense Competition.

Growing bottled water Dependence on bottling

market. Patners.
Growing Hispanic Population Sluggish growth of Carbonated
in U.S. beverages.

Fig 2.1 SWOT ANALYSIS OF COCA-COLA

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Global and local strategy
The Coca-Cola Company is the world's largest beverage company and is the leading producer
and marketer of soft drinks. The Company markets four of the world's top five soft drinks
brands: Coca-Cola, Diet Coke, Fanta and Sprite.

The success of The Coca-Cola Company revolves around five main factors:
1. A unique and recognised brand - Coca-Cola is among the most recognised trade
marks around the globe
2. Quality - consistently offering consumers products of the highest quality
3. Marketing - delivering creative and innovative marketing programmes worldwide
4. Global availability - Coca-Cola products are bottled and distributed worldwide
5. Ongoing innovation - continually providing consumers with new product offerings
e.g. Diet Coke(1982), Coca-Cola Vanilla (2002).

The illustration shows the worldwide distribution of sales of Coca-Cola products by

quantity in 2003. Although Coca-Cola is a global product with universal appeal, the
Company actually operates in local environments around the world, with each country
having its own unique needs and requirements.

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 So while Coca-Cola is
probably the only product in the world that is universally relevant in every corner of the
globe, the Company feels that its responsibility is to ensure that with every single can or
bottle of Coca-Cola sold and enjoyed, individual connections are made with their consumer.
That can only be achieved at a local level.

The challenge facing The Coca-ColaCompany today is therefore to continue to build an

organisational structure that will deliver a global and local strategy.

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 What Can We Learn from
Coca-Cola’s Global
Marketing Success?
As the most recognizable brand in the world, Coca-Cola certainly knows a thing or two
about successful global marketing. At over a century old, Coke remains an industry leader
both in product sales and marketing. The following are some of the keys to the iconic
company‘s strategies:

Simplicity
Despite having grown into a massive global industry with innumerable products, Coca-
Cola has never strayed from its timeless and basic ideals. Throughout the decades and
multitudes of marketing campaigns, Coca-Cola has remained consistent when
communicating one strong and effective message: pleasure.
Enduring, simple slogans such as ―Enjoy‖ and ―Happiness‖ never go out of style and
translate easily across the globe.

Personalization
Despite its status as a global icon, Coca-Cola understands that it has to find a way to speak to
consumers at a more personal, localized level. Initially introduced in Australia, the
company‘s Share a Coke campaign has now successfully expanded to over 50 countries.
Each country‘s offerings are customized to its local culture and language, with the most
popular names of each region printed on cans and bottles in

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place of the company‘s moniker. This campaign is the perfect example of effectively
applying a localized positioning strategy to a global market.

Socialization

Social media is one of the fastest-growing tools for effective international marketing, giving
companies the ability to reach consumers on a worldwide level through a single platform.
Besides being an effective localization strategy, the Share a Coke campaign also successfully
utilizes social networks to engage consumers and prompt them to share their Coke experience
with others. According to the Wall Street Journal, there were over 125,000 posts about the
campaign in just one month after it launched in the United States.

Experience

A significant part of Coca-Cola‘s success is its emphasis on brand over product. Coke
doesn‘t sell a drink in a bottle, it sells ―happiness‖ in a bottle. With thousands of different
products and packaging designs that vary among regions, a global marketing plan focused on
the products themselves would be challenging to manage. Instead, Coke aims to sell
consumers the experience and lifestyle associated with its brand. For example, Coke recently
unveiled a new packaging campaign where they individualized 2 million bottle designs.
AdWeek writer Tim Nudd writes, ―The resulting product conveys to ‗Diet Coke lovers that
they are extraordinary by creating unique one-of-a-kind extraordinary bottles,‘ said Alon
Zamir, vp of marketing for Coca-Cola Israel.‖ Though the products may vary, the experiences
they are selling – happiness, friendship – are universally shared and understood.

So, what can we learn from Coca-Cola when it comes to building a successful global brand?
Making human connections, remaining innovative while staying true to simple principles,
and creating branded experiences are all global marketing techniques that have contributed to
Coca-Cola‘s place as an industry leader, even after 125 years.
For more insight on expanding into new markets, check out our market
penetration guide or our other global marketing-focused posts.

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 Coca-Cola Unveils Global
Brand Marketing Strategy
01/19/2016

ATLANTA — The Coca-Cola Co. is uniting its Coca-

Cola beverage brands under one global marketing
strategy for the first time.
Chief Marketing Officer Marcos de Quinto revealed the creative campaign
at a media event in Paris. The "One Brand" global marketing strategy
brings together Coca-Cola, Coca-Cola Light/Diet Coca-Cola, Coca-Cola
Zero and Coca-Cola Life under the iconic Coca-Cola brand positioning in
one global creative campaign, themed "Taste the Feeling."
The "One Brand" strategy:
 Extends the global equity and iconic appeal of original Coca-Cola across
the trademark, uniting the Coca-Cola family under the world's No. 1
beverage brand.
 Comes to life in a global campaign that uses universal storytelling
and everyday moments to connect with consumers around the world.
 Features the product at the heart of the creative, celebrating the
experience and simple pleasure of drinking a Coca-Cola, any Coca-Cola.
 Underscores the company's commitment to choice, allowing
consumers to choose whichever Coca-Cola suits their taste, lifestyle
and diet.

"Every day, millions of people around the world reach for an ice- cold
Coca-Cola," de Quinto said. "The new 'One Brand' approach will share
the equity of Coca-Cola, across all Coca-Cola trademark products,
reinforcing our commitment to offer consumers choice with more clarity.
This is a powerful investment behind all Coca- Cola products, showing
how everyone can enjoy the specialness of
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an ice-cold Coca-Cola, with or without calories, with or without
caffeine."
The strategy moves the company away from multiple brand
campaigns, "to one single iconic brand campaign that celebrates both
the product and the brand," he added.
"Taste the Feeling" will roll out at various times across all markets
globally this year and will come to life through a number of elements,
including: 10 television commercials; 100-plus campaign images; new
visual identity system; new music anthem and audio signature; and a
shareable and customizable interactive digital experience.
According to the company, the creative campaign is anchored in the
fundamentals of the Coca-Cola brand — the Spencerian script, the red disc
and the iconic glass bottle — but with a modern take, featuring authentic
and real moments with the product at center stage.
Coca-Cola reached out to 10 different agencies to begin the development
process, and ultimately the 10 television commercials created for the
campaign were produced by Mercado-McCann, Sra. Rushmore, Santo,
and Oglivy & Mather New York.
"There is nothing quite like the taste of an ice-cold Coca-Cola", said
Rodolfo Echeverria, vice president, global creative, connections and
digital, The Coca-Cola Co. "The campaign creative was designed to
celebrate the notion that the simple pleasure of drinking an ice-cold Coca-
Cola makes any moment more special. The universal moments and
storytelling depicted in the campaign were created to resonate with our
consumers globally. The same images and television creative in Japan will
also be seen in Italy, in Mexico and around the world."
At launch, five of the 10 spots will be released. The lead television spot,
"Anthem," (Mercado-McCann) comes to life through a series

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of ordinary moments linked by a Coca-Cola, such as ice-skating with
friends, a first date, a first kiss and a first love. The spot will run in all
markets in 2016.
The 100-plus campaign images were shot by fashion photographers Guy
Aroch and Nacho Ricci. The new campaign imagery will be used in print
advertising, out-of-home billboards, in- store, and digital media.
Atlanta-based Coca-Cola's beverage portfolio is led by Coca-Cola and
features several $20-billion brands including Diet Coke, Fanta, Sprite,
Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply,
Georgia, Dasani, Fuze Tea and Del Valle.

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Coca-Cola Marketing Strategy: Recipe for Success

The world‘s fourth most valuable company Coca-Cola is one of the most
recognizable brands today.

According to researchers, Coca-Cola is available in every country, including

Cuba and North Korea (through the grey market). Furthermore, Coca-Cola
sells 1.8 billion bottles every day and the numbers are still rising.

It‘s quite hard for organizations to reach the magnitude of Coca-Cola, but
using the right marketing strategies may give a huge boost to increase
worldwide brand recognition.

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If we thoroughly analyze Coca-Cola marketing strategy, we‘ll see that it‘s
heavily linked with the concept of ―4P‘s.‖

Coca-Cola focuses on improving the community relationships and

increasing their happiness, that positively reflects on their public image,
resulting in customer and revenue rise.

Coca-Cola Marketing Strategy: How it

Works
If a company plans to grow and progress, it‘s essential to analyze and
understand their current situation to formulate and determine target
markets.

Brands can benefit from the statement above by contributing to

their marketing objectives and corporation goals.

Developing marketing strategies is connected with high-level of planning, that

helps to achieve certain goals within a specific period of time and with limited
resources.

Marketing strategies, also entail gaining an upper hand over your

competitors by efficiently managing existing possibilities.

Coca-Cola marketing strategy is one of the most complete and diverse

strategies today. To fully understand how they act, let‘s discuss the
components of their marketing strategy.

Pricing Strategy – Today, it became quite popular for startups, for a day or
two, to offer their service or a product for free, and then increase their prices.
Though, Coca-Cola chose a different approach and made the challenge even
tougher. From 1886 to 1959 (73 years), Coca-Cola had a fixed price and it only
cost 5 cents.

Today, due to the fierce competition with Pepsi (their rivalry dates back to
1975), Coca-Cola pricing strategy is strictly updated because if the prices
between them noticeably change, then one of the brands will definitely suffer,
and the other one will surely benefit. For instance, if the price of Cola-Cola
will too much exceed Pepsi‘s, then consumers may shift to the cheaper one.

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On the other hand, if the prices will drop, it might make customers doubt the
quality of the product it sells.

The Classic Bottle Of Coca-Cola – Coca-Cola‘s bottle was a part of the

corporation‘s defensive marketing. But, after time, they started promoting it as
much as the logo and product. Furthermore, Coca-Cola‘s bottle design was
inspired by the shape of the cocoa pod.

Coca-Cola Logo/Font – In 1923, when the corporation‘s logo was normalized,

Coca-Cola decided that as the recipe, the logo must have remained untouched.
As a result, Coca-Cola‘s logo has been messing with the minds of the society
for a very long time.

Sponsorship – Coca-Cola is one of the most recognized sponsor brands, it has

a long sponsorship history that includes American Idol, The Olympic Games,
BET Network, NASCAR, etc.

 American Idol – The sponsor of one of the most reputable and famous
TV show American Idol is Coca-Cola that officially sponsored all ten
seasons.
 The Olympic Games – The Amsterdam 1928 Olympic Games were the
first time when Coca-Cola got involved in the Olympic sponsorship.
Since then, Coca-Cola has become one of the most long-term partners of
the games. Moreover, in 2012 when London held the Olympic Games
for the third time, to celebrate, Coca-Cola Great Britain produced a
special bottle that featured a special picture (it was a rose that illustrated
the games being handover to London from Beijing)
 NASCAR – For over 50 years, Coca-Cola has been an official
sponsor of the National Association of Stock Car Auto (NASCAR).

Social Media – Considering that social media has become the greatest tool
for marketing, of course, Coca-Cola has taken the advantage and created its
social profiles on reputable media like Facebook, Google+,
Twitter, Pinterest. And let‘s see how they manage each of them.

 Facebook – The strategy that Coca-Cola uses is quite unusual and

unique, it‘s something similar to Starbucks. Taking into account, that
Coca-Cola is the most recognized brand, it‘s easy for them to attract
dozens of fans without even trying. But still, engaging and interacting
with consumers is still something that must be done. For instance, apart
from Red Bull and ASOS, Coca-Cola isn‘t that active on Facebook, they
may go even a week without any updates. But, post
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 engagement is still unbelievably good. Moreover, due to the fact that
Coca-Cola doesn‘t own any stores to drive customers, their aim is to
increase awareness for future ads, expand brand recognition and
increase authority.
 Twitter – Coca-Cola is one of the most active brands on twitter I‘ve seen.
The company has 3M+ followers and more than 129K tweets. The way
Coca-Cola uses Twitter is quite unique. They spend a lot of their time
replying @mentions. So, as Nike, social media is a vital part of the Coca-
Cola marketing strategy.
 Pinterest – The way, that Coca-Cola uses Pinterest is quite entertaining.
Rather, than focusing on marketing messages, Coca- Cola simply
gathers images that are somehow related to the Coke, itself. For
example, many of the images uploaded on Coca-Cola‘s Pinterest
account are random images from Flickr, that weren‘t taken for the sake
of advertising, but for entertainment and joy. In addition,
it‘s an awesome idea that Coca-Cola came up with, because this way, they
can encourage people to interact with the brand more often, and inspire the
society to take their chance and get featured on the brand‘s official social
profile.
 Google+ – The Google+ Page of Coca-Cola isn‘t that impressive.
They do have about 2M followers, but they are less active, compared to
Facebook and Twitter. Furthermore, the fans are also less engaged, than
on other social media. The only interest that Google+ drives, is the
hangouts hosted with Coca-Cola‘s awesome fans.

Advertising – The best part of the Coca-Cola marketing strategy is

advertising. Coca-Cola is often addressed as a revolutionary organization that
had a significant impact on the American culture.

Psst… Don’t Forget The “Coca-Cola

Marketing
Strategy” Presentation
Till today, Coca-Colas has changed their slogan many times. For instance,
―Make it Happy,‖ ―Life is Good,‖ ―I‘d like to buy the world a Coke,‖ and
―Coke is it,‖ etc.

Besides the cool slogans and the revolution we spoke about, it‘s hard to believe
that Coca-Cola was such game changer. So, let‘s examine some of the most
entertaining, positive and joyful commercials Coca-Cola has ever had.

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Coca-Cola’s “Friendly Twist” Commercial – Your first day at school, college,
university, work, etc. can be really frustrating and boring. It’s a day when talks
and interactions are reduced to zero.

So, Coca-Cola came up with an awesome idea to help people make new
connections and change their first day experience to something
unforgettable. Here‘s the heartwarming ad that Coke brought to us; an
excuse to talk:

Coca-Cola Presents “Unlock the 007 in You” – When the new James Bond
movie 007 was announced, Coca-Cola decided to handover
exclusive tickets, BUT they weren‘t free. People had to complete a special
mission within 70 seconds to unlock their inner 007 and earn their exclusive
tickets.

A way to Unite Pakistan and India, Coca-Cola’s “Small World

Machine” – The relationship between India and Pakistan has been tough for
years. People were saying that instead of improving, it was getting worse.
Furthermore, what saddens the people most, is knowing that together they
could do wonders. So, Coca-Cola decided to launch an awesome campaign
that could help Indian and Pakistan citizens get together for the first time in a
long time.

CLOSING LINE

Coca-Cola is one of the most successful companies today. Approximately,

98% of the world‘s population recognizes the brand name.

Without a doubt, Coca-Cola marketing strategy has played a crucial role in

increasing the corporation‘s brand recognition, authority, revenue and
becoming one of the most reputable companies today

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How Coca-Cola Built Its Liquid, Linked
Social Campaign for Olympics 2016
Coca-Cola is the longest continuous sponsor of the Olympics, going back
almost 88 years. The company first sponsored the 1928 Olympic Games in
Amsterdam, and has supported every Olympics game since.

Coca-Cola ad for Olympics 1948, showcasing their long-standing relationship with the
Games

43 | P a g e
The brand has come a long way since, as has advertising, from radio and
print in the 1920s to digital media today. In the last four years, since London
2012, social media platforms like Facebook, Twitter, Snapchat, and
Instagram have also seen exponential growth, making this year’s Games truly
the “most social games ever.”
Back in 2013, explaining what she learned from the London Olympics, Coca-
Cola’s Christy Amador, a senior communications manager, said that the
brand likes content ideas to be liquid (flexible) and linked (linked together,
regardless of the channels used).

The Social Marketer‘s Content Optimization Cheat Sheet

Coca-Cola’s campaign for this year’s Olympics has both these qualities,
hitting on emotional, inspirational, and aspirational sweet spots for
consumers. The campaign uses footage of more than 70 athletes from all over
the world, across a wide variety of sports. Short snippets of the ad are being
used for the brand’s digital media platforms.

On Twitter alone, in the first week since the Games began, the brand has
reached over 31 million consumers, with over 105 million potential
impressions.

44 | P a g e
Here is how Coca-Cola is deploying its liquid, linked campaign on Facebook,
Twitter, and Instagram.
1. Being Human and NOT Selling the Drink – Both pieces of creative
from Coca-Cola for this year’s Olympics–the hashtag #thatsgold and the
ad tagline “Together is Beautiful”–promote optimism and inclusion.
These values are core to Coca-Cola. They do not ask consumers to buy a
drink at any point, but instead put celebration, achievement, and
togetherness on display, irrespective of religion and race.
As Team USA takes the stage, we're reminded of all the reasons why Together Is Beautiful.
#THATSGOLD
A post shared by Coca-Cola (@cocacola) on Aug 5, 2016 at 7:03pm PDT
This resonates with consumers, as well. The #thatsgold hashtag garnered
close to 4,000 mentions on Twitter alone in the first week of the Games, with
many consumers tagging important moments of their lives with #thatsgold.
Family time with a Coca-Cola is definitely a
#THATSGOLDmoment!
— Coca-Cola (@CocaCola) August 11, 2016
2. Creating Timely Content to Capture Euphoria – Coca-Cola has a
strong understanding of its consumers. They know that people don’t just
want to be spectators; people want to be able to engage. That’s why Coca-
Cola has been publishing content in almost real time to commemorate what is
happening at the Games. This facilitates a connection between the brand and
its consumers in the very moment of excitement and happiness. Coca-Cola’s
posts do not just congratulate athletes and teams–they create content that
drives engagement around the event, as well.

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 Currently watching gymnasts change gravity from a law to a
suggestion. #THATSGOLD #Rio2016pic.twitter.com/dLmM
vzf1DK
— Coca-Cola (@CocaCola) August 11, 2016
From one legend to another. Incredible job by Simone Biles!
@NastiaLiukin #NastiaSays #TeamUSA #THATSGO
LDpic.twitter.com/gDQlfMJiOG
— Coca-Cola (@CocaCola) August 11, 2016
3. Consistent Messaging – Coca-Cola did not just come up with the
hashtag #thatsgold–they backed it up with a visually stunning physical
activation, which includes Coca-Cola in commemorative gold aluminum
bottles (sold in limited edition) and the golden logo with the Olympics
rings across their social media channels to tie the message together.
@CocaCola i love this new
can #THATSGOLDpic.twitter.com/BQsbjIkFQI
— John ramnarine (@john_ramnarine) August 3, 2016

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4. Creating Diverse Collateral for a Wider Audience – Coca-Cola
has been creating various content–GIFs, videos, surveys, photos, and
creative illustrations–in order to make sure their messaging is relevant and
tailored to the audience they are targeting. Videos from the brand have
generated the most engagement of any content type, driving over 58% of
engagement across all channels.
➖ ➖ ➖ ➖➖
➖➖
➖ ➖ ➖➖➖
➖ ➖#Rio2016 #UnevenBars #THATSGOLD
— Coca-Cola (@CocaCola) August 14, 2016
.@Nathangadrian: Swimmer. Olympian. Avid video
gamer. #Rio2016 is about to get a little more
rad. #THATSGOLDpic.twitter.com/w5dBBO0GZj
— Coca-Cola (@CocaCola) August 14, 2016
As Team USA takes the stage, we're reminded of all the reasons
why Together Is
Beautiful. https://t.co/MFNTqB0dkApic.twitter.com/jJd3jo7SI v
— Coca-Cola (@CocaCola) August 6, 2016

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Coca-Cola Marketing
Strategies
Worldwide popularity of Coca-Cola was because of certain simple yet
groundbreaking marketing strategies like –

Consistency
Consistency can be seen from logo to the bottle design & the price of the drink (the price
was 5 cents from 1886 to 1959). Coca-Cola has kept it simple with every
slogan revolving around the two terms ‗Enjoy‘ and ‗happiness‘.

Branding
From the star bottle to the calendars, watches and other unrelated products, Candler started
the trend to make Coca-Cola visible everywhere. The company has followed the same
branding strategy till now. Coca-Cola is everywhere and hence has the
world‘s most renowned logo.

Positioning
Coca-Cola didn‘t position itself as a product. It was and it is an ‗Experience‘ of
happiness and joy.

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 Franchise model
The bottling rights were sold to different local entrepreneurs, which is continued till now.
Hence, Coca-cola isn‘t one giant company, it‘s a system of many small companies
reporting to one giant company.

Personalization & Socialization

Unlike other big companies, Coca-Cola has maintained its positioning as a social brand.
It talks to the users. Coca-Cola isn‘t a company anymore. It‘s a part of us
now. With its iconic advertising ideas which include ―I‘d Like to Buy the World a
Coke‖ & ―Share a Coke‖, it has maintained a special spot in the heart of its users.

Diversification

Coca-Cola, after marking its presence all over the world, took its first step towards
diversifying its portfolio in 1960 by buying Minute Maid. It now operates in all but 2
countries worldwide with a portfolio of more than 3500 brands.

Coca-Cola Marketing Facts

 Logo & bottle design hasn‘t changed since the start.
 During its first year, Coca-Cola sold an average of 9 drinks a day.
 Norman Rockwell created art for Coke ads.
 Coke has had a huge role in shaping our image of Santa Clause.
 In the 1980s, the company attempted a ―Coke in the Morning‖ campaign to try to win over
coffee drinkers.
 In 1923, the company began selling bottles in packages of six, which became common
practice in the beverage industry.
 Recently, it was in the news that Verizon acquired Yahoo for around $5 billion which is more
or less the same amount the Coca-Cola Company spends on its advertisements.
 The number of employees working with the Coca-Cola Company (123,200 to be exact) is
more than the population of many countries.
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

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Coca-Cola India was the leading soft drink brand in India till 1977 when it was
forced to close down its operation by a socialist government in the drive for self
sufficiency. After 16 years of absence, coca cola returned to India and witnessed
a different culture and economic platform. During their absence, Parle brothers
introduced a new type of cola called THUMS UP. Along with, they also
formulated a lemon flavoured drink, LIMCA, and mango flavoured, MAAZA.
In 1993, coca cola bought the whole Parle Brother operation, in a hope to beat
the main competitor (Pepsi). They presumed that with the tried and tested
products of Parle they will be able to regain their throne in the Indian soft drink
market. Pepsi having a 6 year head start helped revive the demand for global
cola but it was not easy for the soft drink giant (coca cola) to return to India.
Pepsi put more focus on the youth of the country in their advertisements but
coca cola tried influencing Indians with the ‗American‘ way of life, which
turned out to be a mistake.

Coca-Cola invested heavily in India for the first five years, which got them
credit of being one of the biggest investor in the country; however, their sales
figures were not so impressive. Hence, they had to re-think their market
strategies. Coca-Cola learned from Hindustan Lever that reducing their will
result in more turnover, hence leading to profit. They launched an extensive

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market research in India. They ascertained that in India 3 As must be applied;
Affordability, Availability and Acceptability. Coca-Cola learnt that they were
competing with local drinks such as ―Nimbu Pani‖, ―Narial Pani‖, ―Lassi‖ etc.
and reached to a conclusion that competitive pricing was unavoidable. Since
then they introduced a 200 ml glass bottle for Rs.5.

Further, they had different advertising campaigns for different regions of the
country. In the southern part, their strategy was to make Bollywood or Tamil
stars to endorse their products. In various regions they tried portraying coca cola
products with different regional food products. One of the most famous ad
campaigns in India was ‗Thanda Matlab Coca-Cola‘; they featured the same
quote with different regional entities.

Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in
market share i.e. 60% in Carbonated Soft drinks Segment, 36% in Fruit drinks
Segment, 33% in Packaged water Segment, compared to its arch rival, Pepsi.
Diversifying their product range and having a competitive pricing policy, they
have regained their throne. With virtually all the goods and services required to
produce and market Coca-Cola being made in India, the business system of the
Company directly employs approximately 6,000 people, and indirectly creates
employment for more than 125,000 people in related industries through its vast
procurement, supply, and distribution System.

The Indian operations comprises of 50 bottling operations, 25 owned by the

Company, with another 25 being owned by franchisees. That apart, a network of
21 contract packers manufactures a range of products for the Company.

On the distribution front, 10-tonne trucks – open bay three-wheelers that can
navigate the narrow alleyways of Indian cities – constantly keep our brands
available in every nook and corner of the Country‘s remotest areas.

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MARKETING MIX OF COCA-COLA INDIA

 PRODUCT:-

Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta, Sprite,
Thums Up, Maaza, Minute Maid and Georgia Gold. Bottled water was another area where
Coca-Cola identified major opportunities. In 2002, Packaged drinking water in India was a
Rs 1,000 cr industry and growing by 40% every year. PDW was a low margin – high volume
business, but it was an attractive proposition for bottlers as it increased plant utilization rates.
In this market Coke‘s Kinley was pitched against Ramesh Chauhan‘s Bisleri and Pepsi‘s
Aquafina. The product not only faced intense competition but also was difficult to
differentiate. Coke positioned Kinley as natural water with the tag line “Bhoond Bhoond
Mein Vishwas” (Trust in each drop of water).

In early 1999, the parent company acquired Cadbury Schweppes. As a result 12 more bottlers
were brought into CCI‘s fold. This acquisition added Crush, Canada Dry and Sport Cola to
CCI‘s product line. This meant CCI had three orange, clear lime and cola drinks each in its
portfolio.

 PRICE:-

Coke learnt with experience that price was a strategic weapon in an emerging market like
India. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond
the reach of many Indian customers. In 2000, CCI conducted a yearlong experiment in
coastal Andhra Pradesh by introducing a 200ml bottle at Rs 7. The volumes went up by 30%
demonstrating the importance of consumer affordability. So the 200ml pack priced at Rs 5
was rolled out countrywide in January 2003. The advertising Campaign highlighted the
affordability and Indian image.

To make it affordable, Coke introduced Kinley in 200ml pouches for Re. 1 in selected places
in Ahmadabad and 200ml water cups in Maharashtra, priced at Rs 3 per cup in testing
marketing exercise conducted in mid – 2002. In 2002 Kinley with 35% market share had
become the leader in the retail PDW segment and was contributing 20% of CCI‘s revenues.

53 | P a g e
  PLACE:-

Coke pushed down responsibilities from corporate headquarters to the local business units.
The aim was to effectively align CCI's corporate resources, support systems and culture to
leverage the local capabilities. CCI's operations had been divided into North, Central and
Southern regions. Each region had a president at the top, with divisions comprising
marketing, finance, human resources and bottling operations. The heads of the divisions
reported to the CEO. Bottling operations were divided into four companies directed by the
bottling head from headquarters. Under the new plan, CCI shifted to a six region profit center
set up where product customization and packaging, marketing and brand building were taken
up locally. A Regional General Manager (RGM) headed each region with the regional
functional heads reporting to him. All the RGMs reported to VP (Operations, who in turn
reported to CEO. The four bottling operations, with 37 bottling plants, were merged into
Hindustan Coca-Cola Beverages (HCCB). Each of the six regions had on an average six
bottling plants. Each plant was headed by an Area General Manager (AGM) and held profit
center responsibility for a business territory. He reported to the RGM as well as the head of
bottling at the head quarters.

 PROMOTION:-

In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketing
campaign positioned Coca-Cola as an international brand and did not emphasize local
association. Coke, as a deliberate strategy, decided not to spend heavily on promoting Thums
Up. Indeed the marketing spend on Thums Up between 1993 and 1996 was almost negligible.
The overall marketing effort was also not focused as CCI changed the head of marketing
three times during the period. Thumps Up remained neglected. Inadequate marketing support
for other Parle brands also led to their declining market shares.

The bottlers taken over by Coke also had problems adjusting to a new work culture. They
argued that CCI's lack of interest in promoting Thumps Up was resulting in falling sales and
asked CCI to take corrective action.

54 | P a g e
 Pricing in india

Pricing is going to become as a crucial decision in future for many reasons,

problems like customization, technological growth, international and channel
pricing will also play a vital role in organizational decision making related to
pricing (Pricing, 2009). There are other factors like market demand, standards
of industry, profits, organizations experience, customer to whom it is being
made or offered etc also need to be analyzed while fixing price for products and
services. So it can be said that Hindustan Coca Cola limited that every time
following formula kind of policies does not when it is concerned for pricing.
There is need to look out for market realities and generation of profits while
making pricing decisions.

Hindustan coca cola private ltd needs to involve itself in considering various
factors which may have various pricing practices. There won't be a perfect
model which will suite to pricing decision completely. But the following is one
model which can provide some backup for coca cola products. But there is no
assurance but this model is used to break pricing strategy into manageable tasks
that are gathered together at the final stages of marketing strategy. Presetting
objectives of pricing, assess price-product correlation, forecast costs and
limitations of price, examine profit prospective, prepare preliminary price
structure and modify price according to the requirements are some of the
elements which are to be considered while pricing products. Price maker will
have a lot of load while preparing price for the product. Because there are more
other things which are involved in pricing decisions like distribution channels,
demand, competition in the market, uneven products, business circumstances
etc would decide the failure or success of coca cola product or Hindustan
limited business (J Paul Peter & James H Donnelly, 2004). There is need for
managers to continuously reviewing the strategies of pricing which has been
because Hindustan Company's products are in a market where there are high
volumes of competition from other organizations. It is needed to concentrate on
ways from which income will be created then only products can manage in
balancing costs and revenues, where price product mechanism will help to
bring money into organizations. Increasing profitability, increase in sales,
gaining market share, promoting quality etc would help in fixing will be
discussed in dissertation in detail.

55 | P a g e
Like any other company which has successfully undergone a century of
survival, the Hindustan Coca Cola company has to continue extremely assured
while considering the pricing strategy. The Coca Cola company has the
privilege of being a worth competitor that constantly drives it to be as a
smarter, more rapidly and better company in adopting the pricing strategies. If
they are to be more successful then they need to be sharper. If this company
does not exist then the other companies would have invented such a strategy.
The relationship among the Pepsi and the Coca Cola companies are healthy
each having corporation among them. Throughout many years the Coca Cola
Company has been trying to adopt the pricing decisions for reaching the main
goal that has to be withstanding as a greater shareholder value. The solid
presence of Pepsi and Coke in India has introduced the new bottles with new
marketing strategies.

The best method to evaluate and to move forward is concentrating on the

customer values by adopting the value based pricing approach for customers in
order to gain solutions for the organization. Value based pricing for the
customer is the main transformation for the Coca Cola Company. There is an
impact of the Coca Cola's business along with the entire partner and the value
cycle with their customers in order to address the concerned areas and add
value ahead of their beverage products. Basically the customers of this
company are located internationally along with the restaurants, retailers and
other independent businesses. To create a customer value they need to work
with them equally to generate mutual benefits. The company serves the
customers with the help of management teams, offering services and other
supportive modifications to reach their needs. The customers of the company
look forward to lower the costs, enhance the sales and profits and convey better
quality products to the customers. So they work to generate additional value for
their customers by predicting their interests and demands and proactively
supply the feasible solutions for its businesses.

The company works with the customers to enhance the supply chain
management and shopper marketing and to accelerate its innovation to offer
superior beverage selections to each and every customer on their every
shopping trip. These programs which increases the customer value and
understands their shopper needs preferences, drives and migrating from the
profitable link to mutual and multifunctional company relationships. The
company also provides support to the smaller customers to assist their
businesses profitable and more efficient. The company is totally based on the
market based and value based pricing. The value based pricing totally related to
the customer value, where the customers are quoted with different prices
depending on the product value. Here the customers are the main drivers for
price. Traditionally, the value based pricing is considered as the usage of

56 | P a g e
methodologies like customer surveys, conjoint analysis and focus groups in
order to evaluate how the customers value is dependent on the products and
then it is used to find the price. Such kind of value based pricing is utilized
most often for the consumer goods, mainly when the new products are brought
up.
Hence the company focuses on adding the value their customers, by carrying
out the superior services. Coca Cola sets and observes the quantitative targets in
order to enhance the customer satisfaction. In order to gain the customers
perception, the company has to hold the regular feedback on the products that
are held with company's employees and the customers (Robert Lewis Phillips,
2005).

Following are the factors that the Coca Cola Company has to consider for
determining the pricing strategies:

Costs: For gaining a profitable business, the company has to make sure that the
products are priced higher than their average costs. It can be acceptable in the
short term periods where the price is below the total costs if this value exceeds
the marginal cost, so that the deal still produces the optimistic contribution to
the fixed costs.

Competitors: Any price can be set by the company, if its business is the
monopoly in the market. On the other hand, if the organization works under the
perfect competition conditions then it the company has no other choice and
should accept the market price. The real price is somewhere between them. In
such conditions the chosen price must be very carefully regarded as the relative
to those of the intense competitors.

Customers: There must be considerations on the customer expectations on the

price and must be addressed. Preferably, any business must attempt to
enumerate its demand curve to evaluate the sales volume that can be achieved
through the given prices.

Business objective: The probable pricing objectives incorporate to exploit the

profits, to reach the given targets on the investments and to go with competition
instead of leading the market.

For a competitive strategy pricing is considered as the main element for the
company. Eventually, companies participate on price as the customers assess
the amount they spend in relation to the benefits they entertain. The demand for
the company's product is based on its own prices and also on the prices
provided by the competitors. According to this the company's strategic pricing
choices must evaluate the pricing strategies of the competitors.

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In order to examine the transformation of the competitive advantage in the
market outcomes, the competitive advantage is useful to observe the situations
existing among the two competitors. Suppose companies set the same cost for
the similar products, provide services to the same customers and the also have
the similar level of transaction costs. Hence in such kind of conditions there is a
possibility of price war may arise.

For a competitive deal among the economists, break even pricing play a major
role. With the help- of break even pricing, every business earns the revenues
which covers all their economical costs. There is a possibility of the customers
to deal with the prices that can be fallen according to the costs. Such break even
pricing is very useful in times of research and development or increasing the
production capacity so as to enhance new products. Whereas the price wars are
not rare as there are many factors in the competitive markets which attenuates
the pricing competition, concerning a positive economic results to the
competitors. Hence such results attract the new units into the market and
enhancing the innovations.

58 | P a g e
 Pricing in Pakistan
The Coca-Cola Company started their operations in Pakistan in 1953. Coca-
Cola, Sprite and Fanta are the available brands in Pakistan. The System of
Coca-Cola in Pakistan operates through eight bottlers, four of that are majority-
owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants
are awailable in Karachi, Gujranwala, Multan, Hyderabad, Lahore, Faisalabad,
Rahimyar Khan and Sialkot. The other two plants, separately owned, are in
Peshawar & Rawalpindi. The Coca-Cola serves 70,000 customers/retail outlets
in Pakistan. 1,800 people work system of Coca Cola in Pakistan. With in the
last two years, over $130 million (U.S.) were invested by the Pakistan Coca
Cola system.

More than 56 years of refreshment period in

Pakistan Coca-Cola was introduced in Pakistan 1953

Fanta was introduced in Pakistan 1965

Sprite was introduced 1972

Diet Coke & Fanta Lemon was introduced 200

Since 1897Coca cola international productions have been sold in Mexico. Now
Coco cola controls 60% of the Mexican soda market, further Pepsi with 30%.
Further Mexican president Fox's before becoming a politician he was working
as president of the Coca-Cola Corporation of Latin America & Mexico.

After his victory, Coca-Cola started bottling water by the wealthiest aquifer in
the Chiapan town of San Cristóbal de las Casas, an ecological reserve controlled
by a conservation group Pronatura that receives money from the Coca-Cola
Mexico. In 2004, the Coke plant at San Cristóbal de las Casas used 107,332,391
water liters about as much as 200,000 homes use.

In a country where over 12 million general public are without access to

drinkable water, Mexican groups have started on a boycott against Coca-Cola
basically motivated by Coke's increasing authority of Mexican water.

So the object of this report is to critically evaluate the strategy and performance
of any ONE US, European or Asian company over the last five years in any two
emerging markets in different regions of the world. According to that the report
describes Coca Cola Companies performance & strategies in US & Asian
reigns by using Pakistan & Mexico emerging markets.

59 | P a g e
OPPORTUNITIES & THREATS FOR PRICE

Opportunities
There are some taxes company must pay such as

20% - excise duty

03% - In making Budge

15% - sales tax

27% - goes to government

Not only for taxes but for electricity chargers, distribution chargers, after paying
all of those chargers the price of a coke can increase up & consumer have to
pay these as taxes.

These are the opportunities through which we can increase the price and can get
profits. The Coca Cola Company gets those as their opportunities to increase
the margin of rates as well as for increases their profits

Threats
There are some threats in increasing prices of products. If for instance, Coke
increases for 1 rupee. Then people definitely will not go for Coca Cola they
transfer to Pepsi. So these are the threats when coke increases its prices of
products.

Trade Promotion
Coca Cola Company presents incentives to middle men or vendors in way that
they gives them free models & free empty bottles, because of that retailers
&middle man motivate to push their product in the sell & that's the reason coca
cola seen more in the market and they have a good sale in the market because
according to the expert that product seen more in the market that sells more.

"Seen as sold"
The company makes agreements with a shop keepers & stores to special sale in
those stores. These stores are mainly called as KEY accounts in local words. &
the Coca Cola Company also invest large budget on these stores & gives them
free samples & some time cash incentives & free bottles.

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Various Price in Different Seasons Some times Coca Cola Company changes
their productions prices according to that season. The best season for Pakistan
beverage industry is summer. But for winter the scenario in totally posit.
Reduce prices to maintain the sales & profit. But in general they decrease the
prices of their1 litter glass bottle & pet bottles.

Marketing Penetration Pricing strategy

Product is unique identification and assets of company, that offer to satisfy the
needs andwants of consumer. While in Place it refers to distribution and retailer
of product in Pakistan.Coca is one of the worldÕs most great brands of the
world.

The company has got a pricing strategy, as there is no certainty of rising or fall
of priceduring the peak season. This also hamper the sales of the company as
the retailers and distributorget dilemma whether to place the next order or not
as increase or decrease in price may hampertheir profit margin and blockage of
the goods.

Conclusion

Based on the analysis of the report, it can be said that Coca Cola has done great
in termsof attracting and retaining customers using various marketing
techniques in the internationalmarket. It has achieved its place as a symbol of
American Product in across the globe. The people living in various part of the
world are addicted with the products being produced & sold by Coca Cola.

This is one of the reasons why Coca Cola has been able to achieve number one
position in terms of brand value for 13 continuous years. However, Coca Cola
still lacks behindPepsi Co when it comes to the market of Pakistan. There are
many reasons why Pepsi has beenmore successful in the Pakistani market as
compared to Coca Cola. One of these reasons is thatPepsi is more widely
available in Pakistan as compared to Coca Cola. It has built very
strongrelationships with the strategic partners, which help them to ensure the
high availability of
Pepsi products in all over Pakistan. Other reason is that Pepsi has captured the P
akistani marketinitially when Coca Cola was not even introduced in Pakistan.
Hence, it is recommended thatCoca Cola should improvise its strategies in
order to give tough time to Pepsi and achieve highmarket share in Pakistani
market as well as it already has in the International Market.

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 COCA COLA MEXICO
Within the soft drinks Sprite & Fanta become positively along with the key
brand Coca Cola &Diet Coke. In key markets, the company has formed new
packaging sizes to satisfy customer demands.

More and more, Mexican domestic families have lunched together at home. The
lot of Mexican household drinks 2-1/2or more of soft drinks during that break,
while a two liter bottle was the biggest available package. Therefore the
company initiated a convenient 2-1/2 liter bottle to choose regions, involving to
the sale of nearly 1.5 billion unit cases of Coke in Mexico. The bigger bottle
will complete its island wide rollout in 2002.

Since 1897Coca cola international productions have been sold in Mexico. Now
Coco cola controls 60% of the Mexican soda market, further Pepsi with 30%.
Further Mexican president Fox's before becoming a politician he was working
as president of the Coca-Cola Corporation of Latin America & Mexico.

After his victory, Coca-Cola started bottling water by the wealthiest aquifer in
the Chiapan town of San Cristóbal de las Casas, an ecological reserve controlled
by a conservation group Pronatura that receives money from the Coca-Cola
Mexico. In 2004, the Coke plant at San Cristóbal de las Casas used 107,332,391
water liters about as much as 200,000 homes use.

In a country where over 12 million general public are without access to

drinkable water, Mexican groups have started on a boycott against Coca-Cola
basically motivated by Coke's increasing authority of Mexican water.

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Solid 2015 for Coca-Cola Amatil as
Australian beverages division stabilises

Coca-Cola Amatil‘s (CCA) has recorded a net profit of $393.4 million for
2015, up 4.8 per cent on 2014, with earnings in its core Australian Beverages
business stabilising after several years of decline.

Speaking at the presentation of the company‘s 2015 financial results CCA

group managing director, Alison Watkins said the company‘s 2015 result is
consistent with its plans and the guidance provided in 2014.

―We are delivering on our strategy of strengthening our category leadership,

making a step change in our productivity and in-market execution, and building
better alignment with The Coca-Cola Company and our other partners.‖

Coca-Cola Amatil‘s Australian Beverages business delivered a slight increase in

overall volumes, recording a lift of 0.2 per cent to $464 million, driven
by ongoing promotional investment and product innovation. The beverage giant
said it was also ahead of schedule with a three year $100 million cost savings
plan within the division.

Moderate gains were delivered across a number of brands including Coca-Cola,

Sprite, Kirks and Fanta, particularly in the grocery channel. Single serve grew
by 1.5 per cent across the Sparkling Beverages portfolio with active category
management, pack and channel mix, together with investment in pricing tools
and improved promotional pricing strategies contributing to a volume increase.

Ms Watkins said the group also benefited from new product launches and
continuation of a number of marketing campaigns including the 100 year
celebration of the iconic Coca-Cola contour bottle, ‗Colour Your Summer‘, the
‗Come Alive‘ campaign featuring thermochromatic cans and the ‗Sprite Cut
Though the Heat‘ marketing campaign.

The much anticipated launch of Coca-Cola Life, a reduced sugar beverage that
uses natural sweeteners, achieved sales volumes of 1-2 per cent of total Coca-
Cola volumes, in line with the company‘s expectations.

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Downward price pressure in the water category continued and volume growth
was primarily driven by low cost private label and value water brands. However
enhanced water drove around two-thirds of the total growth in the water
category, representing approximately 35 per cent of value in the grocery
channel, up from 28 per cent in 2014.

A permanent value water brand, Peats Ridge, was introduced in June, while Mt
Franklin was repositioned with new packaging and a new campaign, ‗The
Nation‘s Hydration‘, and increased its market share in the premium spring water
segment within the grocery channel.

The company‘s coconut water brand, Zico, saw continued sales increases and is
competing to be the number two player in the high value coconut water
segment, with the product now holding 15 per cent market share.

Competitive pricing resulted in a loss of share for Powerade, however, the

company responded with the launch of a new product formulation ‗ION4‘ in
October and regained market share and value growth in the fourth quarter.

In the dairy category, sales of Barista Bros flavoured milk products continued to
grow as a result of increased distribution momentum, increasing sales velocity
and the addition of a new product, ‗Double Expresso‘, to the range. Within the
national convenience and petroleum channel, Barista Bros achieved 6 per
cent share of the flavoured milk segment in the fourth quarter.

―We expect the turnaround of the Australian Beverages business to be gradual,

fuelled by strong category and brand programmes in 2016 and a continued
focus on revenue growth management, route to market and cost savings.
This is assisting us to create a platform to become a more lean and agile
organisation for the future, fully capable of anticipating and responding to
market opportunities,‖ Ms Watkins said.

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3 long-term threats to
Coca-Cola Amatil Ltd
Investors looking at Coca-Cola Amatil Ltd in recent months have rightfully
been focussed on certain factors – the company‘s drive to reduce costs, SPC
Ardmona, margin pressure from Woolworths Limited and Wesfarmers Ltd
and the Indonesian bottling business.

There are three major risks (and three reasons for hope) that investors should
watch out for:

1. Competition from PepsiCo

Pepsi is distributed in Australia by Schweppes (owned by Asahi), and PepsiCo‘s
local bottling operations are in India, giving PepsiCo a strong cost advantage.

This, combined with an aggressive volume sales strategy and Coca-Cola‘s

‗premium‘ pricing are the reasons I believe Pepsi‘s products are invariably
cheaper than comparable CCA beverages.

CCA‘s bottling operations in Sydney can‘t compete on cost, but there is

reason to hope – CCA also has foreign bottling operations that could be
stepped up to improve competitiveness.

This however will result in redundancies in Australia, which is a PR issue and

may not be politically viable – particularly after the Victorian
government and consumers stepped up to save SPC Ardmona at the end of
2013.
2. Changes in consumer beverage preferences
Consumer shifts toward being more health-conscious have affected the
beverage sector, with Coca-Cola noting its strongest growth is in beverages like
juice, energy and waters, followed by zero and low-sugar soft drinks.

Coca-Cola and Pepsi have responded to preferences by increasing their varieties

of non-cola beverages as well as issuing new products Coke Life and
Pepsi Next which are both stevia-sweetened and contain ~60% of the sugar of
their ‗parent‘ beverages.

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CCA also commenced sales of ‗Barista Bros‘, a pre-mixed coffee and iced tea
range that hasn‘t been successful thus far.

Management appears to be on top of shifting consumer trends, but it‘s also

worth noting that as sales in Indonesia, PNG and Fiji soar, CCA is selling soft
drinks to a rapidly growing number of consumers that aren‘t as health
conscious. This is traditionally something that CCA does very well.

3. A „premium‟ pricing model

As referenced above, Coca-Cola has followed the strategy of making its
beverages the most expensive in order to bolster margins. Theoretically this
strategy targets people who love Coke and only drink Coke – charge them more
and they‘ll pay it, because it‘s Coke, not Pepsi.

So far this seems to have worked, kind of, although margin pressure and falling
case prices in Australia indicate that Coca-Cola prices are vulnerable.

With Woolworths set to renew its focus on offering competitive prices,

and Wesfarmers already on top of that issue, there is a lot of pressure on the
price Coca-Cola can charge for its products.

Speaking rationally, there‘s no reason to pay a premium for Coke when you can
buy a cheaper, different-tasting but otherwise identical beverage from Pepsi‘s
range. Naturally Pepsi is also trying to build a stable of beverage-loyal
consumers, and future market share may actually depend more on how many
consumers can be introduced to a company‘s products, rather than taste, price,
and health benefits of those products.

Or to put it another way, the success of Coca-Cola‘s pricing strategy depends on

it being the #1 most desired beverage, which in turn depends on two things –
taste, and marketing.

To my mind Coca-Cola only has one truly unique beverage (Vanilla Coke),
with the rest of its stable (Coke, Zero, Diet, Life) more or less matched by an
equivalent Pepsi offering (Pepsi, Max, Diet/Light, Next). Thus, a good
percentage of sales is up for grabs.

Thankfully for shareholders, management has flagged a major increase in

marketing spend in order to strengthen CCA‘s consumer appeal.

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New Marketing Strategy For Coca-
Cola Life In France
Coca-Cola Life is to be marketed in France via an inventive and quirky new
sampling campaign.

Beginning on 21 March, a green Coca-Cola Life van will begin touring the
country, with Paris as its starting point. The operation, orchestrated by the
French marketing firm 'Rosbeef!', will entail hiring a team of 250 people for the
nationwide journey in order to distribute the beverage to passers by.

Furthermore, in the famous Paris store Colette, the drinks multinational will
make available limited-edition Coca-Cola Life boxes, which are furnished out
of wood, and will contain a glass bottle of the soft drink, as well as a drinking
glass bearing its logo. These are set to be priced at €15.

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 Conclusion
The amount of money charged for a product or service, or sum of the values that
Consumers exchange for the benefits of having or using the product or services.
As price gives us the profit so this P is very important for business price of
product should be that which gives maximum benefit to the company and which
gives maximum satisfaction to the customer.

Following factors Coca Cola kept in mind while determining the pricing
strategy.

➢ Price should be set according to the product demand of public.

➢ Price should be that which gives the company maximum revenue.

➢ Priceshould not be too low or too high than the price competitor is
charging from their customers otherwise nobody will buy your product.

➢ Price must be keeping the view of your target market.

The price of Coca Cola, despite being market leader is the same as that of its
competitor

Sometimes, Pepsi places its customers into some psychological pricing

strategies by reducing a high priced bottle and consumers think that they save a
lot of money from this.

PRICES OF DIFFERENT BOTTLES:

Size of Coca Cola Price of Coca Cola (RS.)

Regular bottle 13

Non returnable or disposable bottle 30

1.5 liter bottle 70

2.25 liter bottle

90 Coca Cola can

40
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 PRICING STRATEGIES:
Coca Cola has intense competition with Pepsi so its pricing can‘t exceed too
much nor decrease too much as compared to the price of Pepsi Cola. If price of
the Coca Cola exceed too much from the Pepsi then people will shift to the
Pepsi Cola and on the other hand if the price of Coca Cola decreases people
might get the impression that its quality is also low.

Coke additionally utilizes the international pricing strategy. For example, the
cost of a 2-liter container of Coke in the United States is unique in relation to
the cost of a similar item in China. This needs to do with the distinction in
financial conditions, aggressive circumstances, and laws. Along these lines,
Coca Cola has been following different evaluating procedures in view of the
necessity and considering the presentation of new items focusing on various
gathering of people.

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 Bibliography
 www.google.com
 Wikipedia
 www.cocacola.org
 www.cocacola.in
 www.mbaproject.com

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