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TERM PROJECT MARKETING STRATEGY

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Marketing Strategies Of

Coca Cola

PRESENETED TO: MRS. VEENA AVASTHI PRESENTED BY: SURENDRA SHARMA

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The Mission Statement of the Coca Cola Company
Our mission statement is to maximize shareowner value over time. In order to achieve this mission, we must create value for all the constraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. Consumer demand drives everything we do. 2. Brand Coca Cola is the core of our business 3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day. 4. We will be the best marketers in the world. 5. We will think and act locally. 6. We will lead as a model corporate citizen. The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and create economic value added by improving economic profit. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. There are nearly 6 million people in the world who are potential consumers of our company’s product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time.

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the businessmen. is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. syrup for Dr. The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were 5 . B. The Coca-Cola bottling system continued to operate as independent. The Coca-Cola Company traces it’s beginning to 1886. sale drinks. began to produce Coca-Cola fountain when Thomas Whitehead . exclusive rights to bottle and sell Coca-Cola for most of the United States from The CocaCola Company.COCA COLA INTERNATIONAL HISTORY: Coca-Cola Enterprises. when an Atlanta pharmacist. established in 1986. local businesses until the early 1980s when bottling franchises began to consolidate. two and However bottling business began in 1899 Chattanooga Benjamin Joseph secured F. John in the Pemberton . In 1986.

Unit case sales had climbed to 1. Inc. As part of the merger.000 in 1986. and began a dramatic. the John T. again helping accelerate bottler consolidation. In December 1991. On an annual basis. successful restructuring in 1992.for sale. and total revenues were $5 billion 6 . the senior management team of Johnston assumed responsibility for managing the Company. (Johnston) created a larger. to form Coca-Cola Enterprises Inc.50 a share. Lupton franchises and BCI Holding Corporation's bottling holdings. stronger Company. a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group. 1986. total unit case sales were 880. at a splitadjusted price of $5.4 billion. The Company offered its stock to the public on November 21.

Coca Cola enjoys the largest market share. This company controls about 59% of the world market.MANAGEMENT: The hierarchy of Coca Cola Company is as follows. 7 . Chairman Board of governors Vice Chairman and chief operating officer Executive Vice Presidents Senior Vice Presidents Vice Presidents MARKET SHARE: SHARE Being the biggest company in the soft drink industry.

that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success. (Table) Unit case growth 10 year compound annual growth Compan y Industry 5-year compound annual growth Compan y Industry 2001 annual growth Compan y Industry Nonalcoholic drink 2002 Company share All commercial Beverages 2002 Compan y share Compan y per capita Income 6% 5% 5% 5% 4% 4% 18% 9% 70 This shows that the market of the company is geographically vast and it is controlling it with great success. the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. The operation income earned by Coca Cola Company can be illustrated by the following pie chart. Thus they are increasing their market day by day. (Figure) 8 .GLOBAL MARKET SHARE: The following table can show the worldwide operating segments. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume. In 2002.

9 . The global unit sale of the Coca Cola Company is increasing from the last ten years. which has deepened the relationship of the customers and Coca Cola. The data of the global unit sale of the Coca Cola Company can be represented by following chart.This strategy has worked a lot and it has helped them to become the World’s leading Soft Drink Company. The financial health and success of their bottling partners is a critical component of The Coca-Cola Company's ability to build and deliver leading brands. There is a worldwide volume increase by 4% with strong international growth of 5%. This is only due to the innovative marketing programmers. (Figure) 12 10 8 6 4 2 0 1971 1981 1991 2002 unit sale in billions So there is positive growth in the market of the Coca Cola Company.

MARKET SHARE BY AREA: Coca Cola is the world-renowned soft drink and the company is currently operating through out the world.8 billion. the company had worked with their bottlers to turn good intentions into reality by improving the system economics. The operation review according to the segments is as follows.In 2002. The data about the market share of this company area wise is given in the following table. logistics and production. The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. 10 . The world wide total is about 17. The main reason behind this relationship is to continue realizing shared opportunities for growth. Operation Review (2002 worldwide unit case volume by operating segment) NORTH AMERICA 30% LATIN AMERICA 25% EUROPE & MIDDLE EAST 22% ASIA 17% AFRICA 6% NORTH AMERICA LATIN AMERICA EUROPE & MIDDLE EAST ASIA AFRICA So the volume is least in the Africa and most in the North America. with closer coordination of operations including customer relationships.

Unit case equals 24 eight-ounce servings. The country column is derived from The Company's unit case volume while the industry column includes nonalcoholic ready-to-drink beverages only. (Table) Country Unit case growth Nonalcoholi c Drinks 2002 Compan y share All commercial Beverages 10 year 5-year compound compound annual annual growth growth Compan y Industry Compan y Industry 2002 annual growth Compan y Industry 2002 Compan y share Company per capita Income North America United States Latin America Argentin a Brazil Chile Mexico Europe & Middle East Eurasia France German y 4 4 6 7 5 9 7 6 5 5 7 4 5 6 10 3 3 3 6 6 3 5 8 5 3 3 6 2 6 3 9 3 2 2 3 7 3 (2) 2 2 2 2 4 2 5 3 5 4 22 23 24 20 23 56 22 12 15 16 15 10 13 23 18 6 398 419 205 236 144 336 462 72 17 8 1 8 3 2 6 9 (1) 5 3 1 11 (14) 7 (6) 1 3 1 14 9 14 5 5 7 39 110 193 . which shows the non-alcoholic beverages consist of commercially. as estimated by the Company based on available industry sources. The column. sold beverages. we can find out that the customers of Coca Cola are increasing which is shown by the company’s per capita income.The above table shows the geographical earning of the Coca Cola Company and from this data. as estimated by the Company based on available industry sources.

In China. Among others. for example. led by Coca-Cola. (Figure) So the company is emphasizing more in this area and is trying to develop a strategy. sales of Coca-Cola increased 6 percent. Japan has the highest percentage. Pakistan. Among the countries of Asia. the company has achieved volume growth of 10 percent in 2002. which is the satisfied customer of Coca Cola. With developing economies and populations. 12 . India and Bangladesh are those countries where the average consumption is increasing day by day.2 billion and the average consumer enjoys close to two servings of our products each month. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart. this region has strong long-term potential.Great Britain Italy Middle East Spain Asia Africa 8 1 12 6 7 7 2 3 12 4 6 6 11 4 7 8 6 8 2 3 5 5 7 3 8 2 4 4 10 10 3 2 8 4 7 6 17 9 8 17 14 34 6 6 3 12 5 11 193 104 17 264 23 34 In Asian population. innovation and new beverages. which can increase the growth of the consumption of Coca Cola by the people of Asia. and the company is building an exciting family of beverage brands in addition to expanding the popularity of our core brands. Through an intense focus on Coca-Cola. is approximately 3. which is about 29%.

It is due to the strong finances.2% 23.352 3..FINANCIAL REPORT: This company is financially very strong.889 3.2 17.6% 38. which was recognized on the issuance of stock by Coca-Cola Enterprises Inc. one of the equity investors of this company.1 Percentage change 1% 45% 82% 82% 82% 15% 24% 6% 108% 12% 5% 2% 4% 2002 basic and diluted net income per share includes a non-cash gain of $. • $.147 26.3 17.882 3. ratios and growth rates) 2002 Net operating revenues Operating income Net income Net income per share (basic) Net income per share (diluted) Net cash provided by operating activities Business reinvestment Dividends paid Share repurchase activity Free cash flow Return on capital Return on common equity Unit case sales (in billions) International operations North America operations Worldwide 20. (In millions except per share data.8 2001 19.110 (963) (1. (Table) Year Ended December 31.691 2.5 5. 13 .1% 11.24 per share after income taxes related to an organizational Realignment. the company is still surviving the ups and down of the business world.177 0.601 1.685) (133) 2.092 5.02 per share after taxes.806 16.601 4.791) (277) 3.5% 12.882 0.9 5.585 (779) (1. 2002 basic and diluted net income per share includes the following charges: • $.969 1. The financial report of Coca Cola Company of the year 2001 and 2000 along with the percentage change is as follows.19 per share after income taxes related to the Company's portion of charges recorded by the investors of the company.

• $. manufacturing and intangible assets. These charges are partially offset by a gain of $. All shareowners of record are eligible to participate. In 2002.A. economical and systematic method of acquiring additional shares of our common stock. • $. 76 percent of the Company's shareowners of record were participants in the Plan.• $.05 per share after income taxes related to the merger of Coca-Cola Beverages plc and Hellenic Bottling Company S. and $. The Plan provides a convenient. shareowners invested $36 million in dividends and $31 million in cash in the Plan.000 per year.04 per share after income taxes related to benefits from a tax rate reduction in Germany and from favorable tax planning strategies. At year-end.05 per share after income taxes related to the settlement terms of a discrimination lawsuit. 14 .16 per share after income taxes related to the impairment of certain bottling.01 per share after income taxes related to incremental marketing expense Europe. DIVIDEND AND CASH INVESTMENT PLAN: The Dividend and Cash Investment Plan permits shareowners of record to reinvest dividends from Company stock in shares of The Coca-Cola Company. Shareowners also may purchase Company stock through voluntary cash investments of up to $125.

2 billion 87% 13% 72. The statistics is as follows. (Table) 2002ª Equivalent cases Bottle and cans Fountain Employees Vehicles Cold drink equipments Facilities Production only Distribution Combination Total Percent of North America population coverage Number of States of Operation Bottle and can equivalent case package distribution Cans Non-refillable bottles Refillable bottles Capital structure Net debt to total capital ratio EBITDA interest coverage Weighted average cost of debt Key Statistics Constant territory bottle and can volume growth Bottle and can net revenues per case change Bottle and can cost of sales per physical case change Reported EBITDA (in billions) Reported EBITDA change Capital expenditures( in billions) %-age of net operating revenues 15 4.000 52.97 6% 2001 3. The expansion of this company.000 2.8% ½% 2% ½% $2.8 billion 87% 13% 67. Since it is operating through out the world that is why the number of employees and the bottling equipments is highest among the other bottling companies.000 54.18 8% .COMPANY STATISTICS: The statistics of this company is impressive.3 million 25 361 50 436 72% 46 45% 51% 4% 59% 3 6.4 million 25 385 53 463 80% 46 44% 52% 4% 63% 3 6.95 (18)% $0. which shows the success of Coca Cola brands. There is a constant increase in every aspect when we compare the statistics of 2001 and the statistics of 2002.3% 3% Flat 1 $1. Coca Cola Company is increasing its volume day by day. results in the percentage change in the statistics of the two years. This is because.39 9% $1.000 2.

depreciation. PRODUCTS: There are different brands of the Coca Cola Company.Coverage of North American Can/bottle volume 83% 74% EBITDA is the Earnings before interest. and other non-operating items. which are currently in use through out the world. Equivalent Case or Unit Case is the physical case and fountain gallons converted to a standard unit of measure defined as 24 eight-ounce servings or 192 ounces per equivalent case sold by Coca-Cola Enterprises. While launching its product. and amortization. • • Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable securities. the marketing team considers the culture of the country. This company not only deals in the carbonated drinks but also other drinks. taxes. Major brands of coca cola • Coke • Sprite • Fanta • Diet coke • Coke classic 16 .

the renewed and strengthened marketing partnership with Nestlé S. The company has successfully applied it’s approach to brands in several key markets.. In Eurasia. Mori No Mizudayori in Japan. making it the second biggest contributor to the growth of the company after carbonated soft drinks. (Figure) The commitment of the company is to devote resources to water only in markets where it expects profitable growth. Coca-Cola Company also successfully energized a major piece of its beverage strategy—water. Dasani. began operations in 2001. it’s bottled water volume exceeded 570 million unit cases. Also 17 . research and development with the expertise of Coca Cola Company in brand building and distribution. Three of the water brands. In 2001and 2002. This partnership combines Nestlé's knowledge in life science. the entire Turkuaz brand team worked together to launch Turkey's first purified water brand. Beverage Partners Worldwide. Ciel and Bonaqua each achieved sales of over 100 million unit cases for the year. the company grew Georgia coffee in Japan by 3 percent through award-winning marketing in a category that was flat for the year. This strategy has paid dividends. By the end of 2001.The over all volume of this company is as follows. the company has also made good progress in coffees and teas. including Ciel in Mexico. This year. Dasani became the nation's fastest-growing water brand. At the same time. Backed by a strong network of bottling partners through out the United States. Bonaqua in Russia and Kinley in India.A.

18 .in Japan—where The Coca-Cola Company is the leader in the total tea category. Marocha Green Tea is the fastest-growing product in the fastestgrowing category: green tea. The popularity of Marocha is also recognized by the industry with a leading trade journal naming Marocha the most popular new food and beverage product of the year. the second-largest category in the non-alcoholic ready-to-drink segment—it launched Marocha Green Tea. With sales of 46 million unit cases for the year.

Know the most recognized word on the planet after “OK”! 19 .

In China. The packaging innovations do not just involve resizing. With brands such as Minute Maid. The result—diet Coke with lemon—contributed to volume growth of 4 percent for the number-one diet. positioning and marketing. The results speak for themselves: it’s global sports drinks.Among the soft drinks Fanta and Sprite become successful along with the major brand Coca Cola and Diet Coke. In the United States. Qoo in Asia. This year. Coca-Cola is an integral part of holiday celebrations and the family gettogethers that accompany such events. In the United States. it has achieved volume growth of 10 percent in 2001. a channel through which many consumers enjoy Coca-Cola. Through an intense focus on CocaCola. The commitment of the company to packaging innovation also resulted in new initiatives for our fountain business. Kapo in Latin America and Bibo in Africa. Revitalized in the United States. In key markets. a 20 . led by Powerade and Aquarius. and festival packaging helped drive a 6 percent volume increase for Coca-Cola. including Great Britain.5 billion unit cases of Coca-Cola in Mexico this year. the company developed Fountain. innovation and new beverages. contributing to the sale of nearly 1. grew by 13 percent in 2002. the company "bottled" the concept. Germany and Spain. packaging. Increasingly. as well as in Mexico and Latin America. nearly double the growth rate of the worldwide sportsdrink category. In China. The company has also responded to consumers' changing fashion styles with new bottles. The average Mexican household drinks two-and-a-half liters or more of soft drinks during that break. Soft drink in North America: diet Coke. investing in new products. the company re-launched its global sports-drink business. recognizing that consumers often enjoy their diet Coke with a slice of lemon. sales of Coca-Cola increased by 6 percent. Mexican families have lunch together at home. the company has created new packaging sizes to satisfy consumer demands. while a two-liter bottle was the largest available package. This larger bottle will complete its nationwide rollout in 2002. The company increased its two largest bottle sizes during the 2001 holidays. Simply Orange and Disney juices and juice drinks in the United States. So the company introduced a convenient 2-½ liter bottle to select regions. Hi-C. The company launched 27 products in 2001. the company introduced Powerade in nearly every major Western European market.

led by Coca-Cola. the company had a great success. The marketing strategy for the year 2002 is as follows. a clear indication of its underlying financial strength. up from $2. STRATEGIC PLANNING In the year 2002. • The company has generated free cash flow of $3. • Return on capital increased from 16 percent in 2000 to 27 percent in 2001. • Accelerate carbonated soft-drink growth. easy to upgrade technology. Two years of research resulted in a dispensing system that provides exceptional beverage quality. 21 .8 billion in 2000. as we delivered on our commitment to create volume growth while aggressively • Return on common equity grew from 23 percent in 2000 to 38 percent this year. company accomplished the crust of it’s strategy as • Worldwide volume increased by 4 percent with strong international growth of 5 percent and clear signs that our North American business is growing solidly and predictable. as the strategy worked which resulted in making Coca Cola Company the world’s leading company.total beverage dispensing system that is more flexible and more reliable. brand and graphic customization and improved reliability. The strategy for the future of the company is very straightforward. • Earnings per share grew by 82 percent. • Grow system profitability and capability together with our bottling partners. In 2001.1 billion. • Selectively broaden the family of beverage brands to drive profitable growth.

• Drive efficiency and cost-effectiveness everywhere. • Direct investments to highest potential areas across markets.• Serve customers with creativity and consistency to generate growth across all channels. 22 .

“You got the right one baby. they selected Lahore to make their regional office. with revenues of about $27 billion and over 143. They have eleven bottlers covering whole Pakistan. Pepsin and Kola Nuts. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company. the popularity of Pepsi increase. but the corporation is relatively young. As in Pakistan.MAJOR COMPETITOR PEPSI INTERNATIONAL HISTORY PepsiCo is a world leader in convenient foods and beverages. including Gatorade.would entertain the listener with the latest musical selections rendered by violin or piano or both. the beverage businesses of Pepsi-Cola North America. 1990-2002 The advertisement of the Pepsi changes to. aids digestion”. manufacturer and marketer of ready-to-eat cereals and other food products. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International. Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. The plant operating here is Riaz 23 . The new name. Many of PepsiCo's brand names are over 100-years-old. In Asia. UhHuh!”. Pepsi-Cola beverages are available in more than 190 countries and territories. This regional office is monitoring all the operations carried out in South West Asia. Gatorade/Tropicana North America and PepsiCo Beverages International.000 employees. and Quaker Foods North America. Outside the United States. is derived from the two of the principle ingredients.With the extensive usage of the stars in the adds. PepsiCo was founded in 1965 through the merger of PepsiCola and Frito-Lay. Lipton Co. invigorating. This was done in 1970. they only entered beverage industry. “Pepsi Cola”. PepsiCo brands are available in nearly 200 countries and territories. in 2001. At that time. Bradham’s advertising praises his drink as “Exhilarating. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. It was first used on the August 28. In 1992 Pepsi-Cola formed a partnership with Thomas J.

Each shift is of eight hours. They have four filling lines in the plant operating on the three shift bases. This plant was established at Lahore in 1974. They have permanent work force of 750 people and they employee approximately 1000 people more on temporary basis during summer season.Bottlers (Pvt) LTD.000 cases per day. The total capacity of the plant is 30. Pepsi’s Products • Pepsi • Teem • Mirinda • Pepsi Max • Pepsi Lemon • Pepsi Blue • Mountain Dew • 7up 24 .

value. particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business. joy and fun to our stakeholders. TARGET MARKET Coke’s commercials basically based on young generations. then we successfully nurture and protect our brands.PROMISE OF COKE The basic proposition of our business is simple. solid and timeless. FACTORS EFFECTING SALES There are so many factors. So. their basic segments are those people who take this drink regularly. MAJOR SEGMENTS Major segments are basically those people who take this drink daily and those areas where the demands is higher then the other areas. which affects the sale of coke. the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market. There are so many people who take this drink daily and those people who take weekly and those who take less often are always there as well. So. When we bring refreshment. Here we are discussing three major factors which effects coke. • Per capita income • Competitors • Weather 25 .

They believe on “WHAT COLD THEY SOLD” Consumer’s availability in brands is basically works like: Push availability Pull consumer’s demand. they don’t care before drinking that whether it is “Pepsi” or “coke”. This is major factor that affects the sale of this soft drink. In other words. MAJOR CUSTOMERS NEED First of all the majority don’t care that what they are going to have. So the disposable incomes of the people are coming down. which they want to be purchase. 26 . and education and basic necessities and after that when they get extra money they think about this soft drink . Consumers basically drink what they get. This is underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%. utilities.So the decreasing per capita income effects badly in selling and production of this soft drink. coffee. They spend heavily on rents. They have maximum number of coolers and freezers in the market. They don’t actually differentiate between these two brands in order to their tastes.Per Capita Income First we will discuss about “ Per capita income”. tea are the competitors. Weather Weather is the third major factor in effecting the Coke’s selling. And to get through with this difficulty there is need to increase the level of per capita income of Pakistan because it is much lesser than the rest of the countries. For this reason Coca-Cola have provided their coolers and freezers in the market. Competitors Coke’s major competitor is “PEPSI” and there is no hesitation to say this because every one knows that and all the other cold drinks and water. They provide this infrastructure free of cost just to provide child coke to their customer. Because which every passing year budgets are becoming very strict and tight in order to purchase things.

e. STRATEGIES OF QUALITY After Micro and macro analysis Brand “coke” is primarily role 1. Price is the major threat. Because when the price go higher people go for the substitute of “coke” i. and all juices. Enhance competition moments 2. new coming AMRAT Cola. But Coca Cola thinks in a different way. even they take water and tea as their competitors. Pepsi. Fun time Though these strategies there could be better understanding and better connection with the public. they believe that RC Cola. Like they compete Coke with Pepsi and Sprite with 7up and team . When people watch cricket 3. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink. Then they compete brands with each other. THREATS FROM COMPETITORS Threats are well planned. In short it all depends on customer’s perception. And when price goes down they think that there is must be some thing wrong in it.So the major competitor of Coke is Pepsi. When they motivate to any other brand or on Coke it’s in instinct basically that based on messages derive certain feelings. These are the “key consumption”. if not then they immediately change or repair it. 27 . Through commercialization 4.Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not. MAJOR COMPETITORS Consumers firstly decide that they are going to have a soft drink.

Some profits stays for some time like “over night profits” and some just come and go like “wind fall profits”. So. And they can also get profit through different approaches. When the consumption the consumption is on boom. There are three major ways of making money • Over night profit • Windfall profit • Ethical and un-ethical ways Over Night Profits They could be over night profit that is for the number 1 brand for the year. They believe on this quote “ Every thing is fare in love and war”. This could be got my increasing sales volume Windfall Profit Can be windfall profit. Ethical And Unethical Ways Profit can also get through ethical and unethical ways. 28 . They are the extras profit. there is different kind of profits.TARGETS THAT WOULD LIKE TO ATTAIN Every organization runs on the bases of profit maximization so Coke is also looking for a high profit margin.

Two major brands “coke” and “Pepsi” also have brand names. Coca Cola strongly believes that Pakistani temperament is “US” not “ME” 29 . So. being people together and friends are being together. which is the most popular after the word “ok”. people can distinguish between brands. Coca Cola’s Brand Coca cola is “US” brand. Brand Differentiation Now different companies have got different brand names.EXPANDING TARGET MARKET In last 2 years Coke has come back in aggressive manner. though coke is the 2nd best name but it can get a better position after some time Attractive Brand Name Now the consumers know the Name of Coke. Because they believe in the togetherness. • Consumer has choice • Attractive brand name • Brand differentiating Consumer Has Got Choice Now the consumer has got choice. because Coke is the name. So people can better differentiate brands with each other. Because now they know the name of another big brand.

Because same problem of substitute. 30 . So these are the threats in increasing prices.sales tax 20% . Then there is the tax rate system 15% . Threats There are much more threats in increasing prices. In contrast to Coke they believe on individual struggle. These are the opportunities through which we can increase the price and can get profits. Coke will lose the margin of its profit and can face loss.In making Budget After paying all these taxes coke has to pay electricity charges. They use the temperament of “ME”. We have to spend on distributions.goes to government 03% . Then people definitely won’t go for coke.excise duty 27% . After paying all these expenses Coke’s margin squeezed and consumers have to pay for increasing tariffs. If Coke increase the price lets say 1 rupee. They have the best substitute of Coke that is Pepsi. THREATS AND OPPORTUNITIES FOR PRICE Opportunities If Coke is considered a luxury product.Pepsi’s Brand Pepsi’s brand is basically is basically “ME” branded.

• Volume can be increased • Interest level of consumers • To take part in energetic festivals How to increase the volume of consumers? Coke can increase the volume by expanding the industry of coke. this is one of the product of coke. Through advertisements. How to take part in energetic festivals? Coke is already taking part in the festival like “Basant” since last 3 years. Some major ways are as follows. “HIGH PROFITS” To increase the price is the least thing. There are so many ways through which Coke can increase the profits. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained. 31 . which Coke can adopt.STRATEGIES OF GETTING GOALS I. Coke offers different attractive things in their festival and through this Coke gained high profit and consumption of coke increased on these occasions. How to increase the interest level of consumers? Coke is increasing the interest level of consumers by offering different flavors. And this year in this year 2002 people were anxiously waiting that what interesting thing coke is going to offer.E. For example Coke is increasing the number of flavors in “Fanta”. offering different interesting things to attract people towards this product.

how they work and play. What people want in a beverage is a reflection of who they are. we're there for you. Whether you're a student in the United States enjoying a refreshing CocaCola. a child in Peru asking for a juice drink. and we never forget it. We are determined not only to make great drinks. health. consistently shaping our business decisions to improve the quality of life in the communities in which we do business. but also to contribute to communities around the world through our commitments to education. and diversity. Coke strives to be a good neighbor. or a couple in Korea buying bottled water after a run together.MARKETING STRATEGY Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. 32 . It's a special thing to have billions of friends around the world. where they live. and how they relax and recharge. wellness. a woman in Italy taking a tea break.

5 • CANS (standers size returnable bottle) (litter returnable bottle) (no return bottle) or disposable bottle (1. • Fanta. • Diet Coke.5 pets • 12 bottles in a pack for disposable bottle • 24 cans in one pack.MARKET POSITIONING Product Range The total range of Coca Cola company in Pakistan includes: • Coke. • Sprite. 33 . And company offers their products in different bottle sizes these includes: • SSRB • LRB • NRB • PET 1.5 litter plastic bottle) (tin pack 330 ml) Packing Coca cola products are available in different packing • 24 regular bottle shell • 6 bottle pack for 1.

These stores are called as KEY accounts in their local language. Different Price In Different Seasons Some times Coca Cola Company change their product prices according to the season. 34 . “Seen as sold” They do agreements with a shop keepers and stores to exclusive sale in that stores. by this these retailers and middle man push their product in the market. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. Summer is supposed to be a good season for beverage industry in Pakistan.PRICE STRATEGY Trade Promotion Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles. So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle. And that’s why coca cola seen more in the market.

PROMOTION STRATEGIES Getting shelves They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers. In this type of selling company have more profit margin. This scheme is very much popular among children. caps. coca cola often do this type of scheme and they offer very handy prizes in it. Normally they keep their freezers near the entrance of the stores. They have almost 450 vehicles to supply their bottles. cash prizes etc. Like once they offer bicycles. UTC Scheme UTC mean under the crown scheme. Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eye-catching positions. tv sets. Sale Promotion Company also do sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share. 35 . DISTRIBUTION CHANNELS Coca Cola Company makes two types of selling Direct selling Indirect selling Direct Selling In direct selling they supply their products in shops by using their own transports.

POS Material 36 . They have a separate department for print media. FACILITATING THE PRODUCT BY INFRASTRUCTURE For providing their product in good manner company has provided infrastructure these includes: • Vizi cooler • Freezers • Display racks • Free empty bottles and shells for bottles ADVERTISEMENT Coca cola company use different mediums • Print media • Pos material • Tv commercial • Billboards and holdings Print Media They often use print media for advertisement.Indirect Selling They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.

37 .Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas.

Billboards And Holdings Coca cola is very much conscious about their billboards and holdings. 38 .TV Commercials As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. They have so many sites in different locations for their billboards. So Coca Cola Company does regular TV commercials on different channels.

Coca-Cola’s brand positioning of providing deep down refreshment for the body.SALES PROMOTION ACTIVITIES Coca-Cola Cricket Cricket the most sought after. soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar. lyrics & songs have made him an instant hit among the masses in Pakistan. watched & played game in Pakistan . Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it consumers & masses invested in the opportunity and launched a massive campaign on mass media showing all these cricket stars endorsing & complimenting Coca-Cola brand. The CocaCola Company developed three TV commercials & four testimonial ads with the player & ran them on the national net work during various cricket matches. These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board. 39 . This campaign helped Coca-Cola to establish its association with the game & the player. Coca-Cola signed a sponsorship agreement with eight of Pakistan’s National cricket players. His enormous popularity in the country & abroad is supported by Coca-Cola’s commitment towards providing healthy & fun-filled entertainment for the youth of Pakistan. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured throughout the country. Coca-Cola Concerts Abrar-ul-haq’s distinct style. The TVC campaign focused on the hectic lifestyle of a pop star who found respite & relief through Coca-Cola in short moments that he had to himself during a concert.the game of cricket has been owned by various brands in the industry for the promotion of their products over a period of time. It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the beverage industry. The competition has become tougher & tougher as the time has progressed.

Coca-Cola Food Mela With a splash of food. pedestrians & passerby’s during Lahore’s hottest summer season. spread out all over the bustling city’s map. Coca-Cola’s “GO-RED” teams went out into the cities main quadrants to “serve & refresh” on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement campaign the “GORED” stall. 40 . fun & prizes to be won. all resiliently upholding the Coca-Cola identity. Coca-Cola give the more refreshing flavor to the colors of basant by adding more life to the festival. giving the consumer a unique experience which they had never tasted before. Coca-Cola Party in a Park In June 2000. Coca-Cola also hosted a concert of pop idol Abrar-ul-haq. where Junoon performed.Coca-Cola added to the carnival atmosphere by making the festival free to enter & decorating all main roads in Lahore with illuminated kites. served well to promote the Coca-Cola industry. to a festive food festival comprising of 50 restaurants. it has been impossible to envisage basant without Coca-Cola. The promotion saw the avid families & friends enjoying the delicacies at the restaurants. the Coca-Cola food mela treated the people of Karachi. Now “where there is basant there is Coca-Cola”.10 million households saw Coca-Cola ‘Party in a Park’ while 10 thousand people attended the event. This program was recorded and one-hour program shown in the national TV for free. Coca-Cola Basant Festival In February the month of basant the parks & horticulture authority in Lahore nominated Coca-Cola the official sponsor of the basant festival . Coca-Cola created an experiential musical evening in Lahore. had children’s parade & held the Coca-Cola kite flying championship during the basant festival. Coca-Cola GO-RED Quenching the thirst of motorist.

Coca-Cola went ahead with the idea of giving consumer chances to win fabulous. SINGAPORE & CAIRO along with airfare & four nights free stay in these dream lands. rendering an outstanding testimonial campaign in the second phase. Liberty marketing Gulberg was a hive of activity during the weeklong shopping extravaganza. a trip to PARIS. highlighting the winners over whelmed in the magical delight of their favorite beverage Coca-Cola. & Fanta. live music.5 liter PET bottle & the 1 liter bottle with a super price-off promotion.5 liter Pet bottle. magical “dream vacation” to numerous “wonder destination” throughout the world on every purchase of a 250 ml RGB bottle of Coca-Cola. Targeting house wives & family home. Coca-Cola set the stage of the grand UTC promotion. great prizes & fire works.A treat for the family.The promotion gave consumers a chance to win free drink. The emphasis on enjoying Coca-Cola at “Iftar” with friends & family.5 liter Pet contour bottle for the first time in Pakistan. Sprite.Go out & get some Coca-Cola Ramzan Campaign A very special occasion for the people of Pakistan Ramzan saw another very special Coca-Cola’s promotion.Coca-Cola Shopping Festival Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping festival. a resounding success with tempting discounts. Coca-Cola’s PET was offered through a “price-off” promotion that said………. Coca-Cola’s 1. Coca-Cola Pet Promotion In 1996. The in augural event proved so popular that it is now set to become an annual fixture. marketing the popular 1. 41 . The promotion saw avid consumer collecting Coca-Cola ‘Crown caps’ & sparked a keen response from the public . Coca-Cola launched 1. took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits . NEWYORK. Coca-Cola Wonder of the World Promotion In July 2000. HOLLYWOOD.

Fanta & Sprite are sure to enjoy considerable success in Pakistan. Bunting etc) displayed at all MC Donald’s restaurants along with a special offer for coke & fries. with target that anyone being caught drinking Coca-Cola will be awarded a nokia 3310 mobile phone & if someone is caught talking on a nokia mobile will win free supply of Coca-Cola. Fanta & Sprite Launched In November 2000moving on to the Sprite & Fanta brands. On the Go Packs” flaunting the innovative packaging convenience. This activity helped billed confidence and brand loyalty among core consumers. both shares globally. it is a utc scheme in which people are getting television sets of different sizes. & Fanta. The Coca-Cola Company declared the new “Non-Returnable” bottles of Sprite & Fanta as the “New. Coca Cola TV Mazza The coca cola new campaign is coca cola tv mazza.The other highlight of promotion was the “Caught ed” campaign. Branded Coca-Cola with ‘caught ed’ team in them went to Lahore & Karachi for three days. The promotion kicked off with pos material (Danglers.The promotion gave consumer a chance to win thousand’s of Coca-Cola branded Nokia 3310 cellular phones on every purchase of 750ml RGB bottle of Coca-Cola .Sprite. Coca-Cola & Mc Donald’s Coca-Cola & key account of MC Donald’s launched the “we go together” joint promotion to reinstate amongst consumers a real sense of the affinity that. Caught ed become a huge success among the masses as it was one to one interaction between the Coca-Cola brand & the consumers. the consumers in Pakistan witnessed a soft launch in essence. These days this scheme is very popular among the people. 42 . the new under-the-crown promotion “Nikla Kiya?”(What have u won) was launched in collaboration with Chimera Nokia.Coca-Cola & Nokia In August 2001.

but the major hit was thematic fashion shows in restaurants. for the first time in almost 3 years.Diet Coke After the acquisition of the individual local franchise bottling facilities in 1996. 43 . which are the key accounts of the company as this has been never done before in Pakistan. The was linked with three fashion shows as Diet Coke is related to fashion & fitness. diet coke. the company has successfully launched its first new product.

• They should also focus the old people. • Marketing team should try to increase the availability of Coke in rural areas. • Now young generation has a trend to drink a coke 2 regular bottles at same time. conducted by the international firm Pakistani people like little bit sweeter cola drink. so providing more satisfaction to them company should introduce ½ liter disposable bottle. So for this coca cola company should produce their product according to the local demand. 44 . which are following. • Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. • According to the survey.RECOMMENDATIONS After completing our project we have concluded some recommendation for the coca cola company.

Event at the present they are organizing a Basant festival for which they busily organizing stuff.g.CONCLUSION: Coca-Cola no doubt come the heart beat of Pakistanis. Cricket matches. concerts and many other social occasions. Coca-Cola is one of the leaders in sponsoring the most important. E. So… “ Jo chaho ho jaye cocacola enjoy ” 45 . thrilling events.