PRINCIPLES OF

MARKETING FINAL
REPORT

IQRA FAKHAR
BPA SECOND YEAR
ROLL N0# 15

SUBMITTED TO;
MA’AM SAIMA MALIK.

SUBMISSION DATE;
15 MARCH 2021

Page-
Department of Public Administration
UNIVERSITY OF KARACHI.
CONTENT
Introduction ………………………………………………………………………. 1
Market Orientation …………………………………………………………………2
Market Size ………………………………………………………………………....2
Estimated Market Growth …………………………………………………………. 2
Target Audience …………………………………………………………………… 2-3
Mass Market Product ………………………………………………………………. 3
Why Coca Cola is more Liked by the Customers? ………………………………… 4
Product Attributes ……………………………………………………….................. 4-5
Unique Selling Point of Product ………………………………………………… …. 5
Product Life Cycle ………………………………………………………………. …5-6
Product Portfolio…………………………………………………………………….6
Extension Strategy ………………………………………………………………….6-7
Types of Pricing Technique ……………………………………………………. ….7
Market Skimming or Penetration Pricing ………………………………………….7
Promotion Mix ……………………………………………………………………. 7-8
Sales Promotion & Below the Line Promotion Techniques …………………….….8-9
Channels of Distribution ……………………………………………………………9-10
Packaging …………………………………………………………………….…….10
Integrated Marketing Mix ………………………………………………………….10
What a Brand should do to Increase its Sales? ……………………………………... 10-11
 INTRODUCTION
The Coca-Cola company is the „world’s largest beverage company and is the leading
producer and marketer of soft drinks. Today, Coca-Cola is consumed throughout the world at
the rate of more than 600 million times per day and this figure is continuing to rise. However,
Coca-Cola is not the sort of company to live in its past glories instead it looks to the future as
a challenge and constantly seeks new markets and ways of increasing its market share in
areas where it currently has a strong presence. It is the world’s largest producer and
distributer of syrups and concentrates for soft drinks. As we all know, the Coca is today’s one
of the biggest corporations that offers different refreshment in form of a soft drink. But aside
from their historical success, the Coca Cola Company is still a typical business that is
affected and at the same time affecting the different type of communities. Coca-Cola has sold
more than one billion servings every day. More than 10,450 beverages are consumed every
second. It is present in all seven continents and is recognized by 94% of the world population.
How did Coca-Cola grow from its humble roots as a home-brewed Georgia-based patent
medicine to be the international soft drink powerhouse that it is today? Coca-Cola used
numerous technologies to achieve its rise to the top of the soft drink industry, defining new
technologies and establishing paradigms that popped the status quo like a cap from a soda
bottle. Through technology, Coca-Cola perfected Coke as a beverage and spread it
throughout the world. Even today, the US soft drink industry is organized on this principle.
"The Coca-Cola Company" is now the largest soft drink company in the world.

Page-
MARKET ORIENTATION:
Coca cola is a brand which is famous for its market orientation. As it is a market-oriented
brand it mainly focuses on the needs and wants of their customers. Their priority is to
produce those products which satisfies their consumers. They are not only affordable to the
consumers but also provide them with variety of variants. Large established businesses like
coca cola uses the market orientation principles to produce and expand their products and
services to be profitable. Coca cola has a wide variety of competitors and to survive in the
market they follow market orientation because the majority of highly successful brands are
market oriented because these brands focus on what their consumers want and try to fulfil
their demands.

SIZE OF THE MARKET:

The consumer market of beverages is quite big as the total revenue according to Karachi
Chamber of commerce in 2019 was Rs 100 billion which goes in the exchequer. The share of
Coca Cola would be 2-5% in the beverage industry. The volume of sale has particularly
increased since the last two decade as people are addicted to it and they have developed a
taste for it and due to this the market has to be fully equipped with the stock as the first
preference in beverages is coke. Coke has launched additional beverages like Sprite, Fanta,
and mineral water Dasani, Sprite and Fanta have also flourished in the market and created a
competition many adults have given preference to sprite over black or colored beverages the
demand of Sprite has almost equaled to Coke, but they do have competitors and big ones like
Pepsi the big devil and then Pakola, then in Punjab gourmet drinks are there. They have
maintained their value for sale as they have targeted the mass market, every class is indulged
in drinking Coke and they have maintained their standard and its availability in both rural and
urban areas now every shop fridge has coke in it.

ESTIMATED MARKET GROWTH:

Food Industry is an exponentially growing market in Pakistan, because of its basic and daily
needs. Pakistan made according to the several reports an average of $223.5m in food
annually. It has been growing ever since. The market is estimated to grow at the rate of 7.46
per cent per annum and is still the fastest growing market in the country just a spot behind
textile industry. The growth rate is increasing due to the fact there may be an expanded call
for food and beverages after the Global Pandemic wave of Covid-19. Pakistan has sturdy
standing in food industry, so the accelerated marketplace growth is imminent.

TARGET AUDIENCE:
GEOGRAPHIC SEGMENTATION:
Climate:
In coke advertising and marketing the primary concept is to serve it cold so they focus more
on warm regions of the world.
Internationally:

Page-
Coke distributes its products country and region wise. The most important factor is the taste
and satisfaction of the consumers. Coke taste varies according to the income level of the
people of that particular country. For example, Asian and African regions are provided with
low quality and taste products.
Locally:
In Pakistan coke is consumed more in urban and suburban areas rather than rural areas.
DEMOGRAPHIC SEGMENTATION:
Age:
Coke consumers are mostly teenagers and young people because they target young more than
older people.
Gender:
Coke targets both male and female genders.
Family type:
Coke introduces its family pack and that’s how they seek attention of families and groups.
Their ads also promote family values and importance.
Income:
Coke targets people with different income level. For example, their glass bottles are
affordable for lower middle-class people and their tins are used by elites. So, they have
different packings for the people with different income levels.
PSYCHOGRAPHIC SEGMENTATION:
In psychographic segmentation, Coca Cola consumers are separated amongst exclusive
groups/classes on the idea of personality, lifestyle, or values. Coca-Cola Company supplied
products in the market which might be appropriate for modern, busy lifestyles. Coca cola is a
huge brand so people who are brand conscious will never use products whose brand is not
known or famous.

MASS MARKET PRODUCT:

A mass marketplace product is when a company, usually a monopolist, sells a product to a
massive fraction of consumers. While a niche product is a product focused on best selected
phase of a larger industry and marketplace. Coke, Pepsi, and General Motors are some of the
examples of companies which target a mass market. Underneath is some of the reasons
explaining why Coca Cola is a mass product:
Coca cola products are priced conveniently giving affordable options to everyone by giving
SKU’s means they introduce the same products in different sizes and packaging. They
promote their products in such a way that it covers every consumer profile. They keep in
mind their consumers need and wants and try to produce those products which will satisfy
their consumers.

Page-
WHY IS COCA COLA LIKED MORE BY THE CUSTOMERS?
Coca Cola is a brand which guarantees, and it vows to accomplish certain outcome to convey
certain involvement with certain way. This guarantee is passed on to individuals by all that
they see, contact, or hear. Coca-Cola is, by a fair edge, the most well-known carbonated soda
pop available, with around 17% piece of the overall industry versus Pepsi at around 10–11%.
Different brands, for example, Mountain Dew have under 5% piece of the pie.
Coca-Cola is constantly reminding us that we kind of want a nice cold carbonated drink
because the idea of drinking one is so much sweeter than the actual beverage. And this is the
secret, train our brains to associate the brand with a good feeling (happiness, relaxation,
friends, love, etc.) rather than a soda.
The ubiquity of Coke can be ascribed to two principle factors: taste and advertising. Coca
Cola goes through a ton of cash showcasing their item. In the US alone Coca Cola spends
over a large portion of a billion dollars on promoting and more than $3.5 billion
internationally.
In any case, advertising isn't the only primary explanation of why such countless individuals
pick Coke. The genuine key to Coca Cola's prosperity is its taste. Coca-Cola is an illustration
of an entirely adjusted flavor formula. When served at the correct temperature, your tongue
will identify equivalent proportions of sweet, harsh, salt and Unami (appetizing) faculties just
as acidic and basic sensations. The fixings in Coke are not included equivalent measures,
however this is how your tongue will distinguish them considering the equilibrium in Coke's
formula. The mix of flavors is a game changer however the equilibrium is the key.
Coca Cola as a brand contacts a huge number of individuals' heart every day. At uncommon
event to formal gathering Coca Cola is important for our life. Coca Cola brand is the
uncommon piece of individuals' lives. Coca Cola as a decent has appreciated in numerous
lives and given outstanding cherished recollections to armed force activity. A huge number of
individuals share their stories of Coca Cola with Coca Cola. The objective of the Coca ought
to be to give individuals dynamic and sound lives by offering quality refreshments.

PRODUCT ATTRIBUTES:
QUALITY:
Quality is important in each step during the production of coca cola drinks and the materials
wherein they are packaged. They attempt to supply ideal products which are trusted
anywhere. And to do that they are continually reviewing and improving their standards. They
are charging justified price from their customers because their products are not overpriced
nor underpriced for the quality they are providing to their consumers.
DURABILITY:
Coke can last for 6-9 months after the date printed on the box if stored properly and
unopened. Well, it for sure will become flat and nasty tasting after the time durations stated in
the table. The shelf life of Coca Cola depends on variety of factors, such as the sell-by using
date and the way the Coke was stored.

Page-
CONSISTENCY:
Coca cola believes in brand consistency. Coca-Cola’s packaging has not been changed over
time, as it has script lettering. The product has had a few mild alterations however has
typically remained steady. However, in advertising Coca-Cola has proven outstanding
consistency. Although the advertisements change through the years, but the overall issues
expressed within the advertisements do not change. Coca-Cola is understood for enhancing
the ideas of happiness, togetherness, and refreshment in commercials throughout the globe.
Coca-Cola’s amazing consistency is a big purpose for why It is considered as one of the most
well controlled consumer products manufacturers.
APPEARANCE:
Coca-Cola is well-known for its white scripted textual content on a distinct shiny red
background. The Coca Cola logo affords an appealing combination of red and white, which
expresses youngsters, optimism, purity, and excellence.

UNIQUE SELLING POINT OF PRODUCT:

Like some other fizzy beverages, Coca-Cola is a fresh beverage with a glowing taste. But
what makes Coca-Cola stand pleased with its competition? The solution is its USP, which
emphasize on originality to win customers.
Coca Cola is the number one beverage brand in terms of sales with more than 500 products at
offer. Coca Cola uses a unique way of advertising their products especially their TV
commercials and they always come up with unique slogans. Coca-Cola’s marketing
campaign, “Share a Coke”, has been a completely successful advertising tactic. Everyone has
a touch of narcissism and would not refuse something with their name on it. This method
encourages customers to buy not the Coke, however the customized bottle. To improve sales
even extra, Coca-Cola emphasizes on “sharing” the Coke with our loved ones to inspire us to
purchase not just one but many bottles. Coca-Cola even toured to meet clients and distribute
customized cans. Some people will also proportion their excitement of this revel in on social
networks and in a roundabout way market it the Coke. It creates intimacy with its consumers
by evoking memories and experiences with the brand and their unique selling preposition
“live the Coke side of life”. It invites human beings to create their positive reality and to
resource that advent, Coke is the happiness within the bottle.

PRODUCT LIFECYCLE OF COCA COLA:

THE INTRODUCTION STAGE:
It is the first stage of the product life cycle. When coca cola was first introduced as a soda
fountain drink in the late 19th century by John Stith Pemberton it was placed in the market for
sale for 5 cents a glass. As it is the introductory stage of a product in which we introduce our
product in the market, so profits are often low in this stage. Length of introductory stage
varies from product to product. Frank Mason Robinson who was Pemberton’s partner and
bookkeeper suggested that the drink should be named Coca Cola because it will sound good
for advertising.
THE GROWTH STAGE:

Page-
Asa Griggs Candler was an American Business tycoon who bought coca cola recipe in 1888
from Stith Pemberton. Chandler shaped the Coca-Cola Company in 1892 and by 1895 Coca-
Cola changed into being inebriated in each nation across America. As demand grew,
production multiplied and Coca-Cola became made to be had in bottles in place of just soda
fountains resulting in increasing sales, more competitors, and higher earnings. Competitors
are starting to go into the market extra rapidly. The number of distribution retailers begins to
increase.
THE MATURITY STAGE:
Coca-Cola is currently in this level. To expand its mature stage Coca-Cola has evolved the
following marketing techniques: product improvement, new models have been advanced, it
entered new marketplace segments, and enlarged its distribution channels. Number of
capability new customers decline, and the income of a product typically begins the level off.
Competition causes income to fall until the most powerful competitor is in charge. Maturity
stage is the Longest level within the PLC. In this stage Companies search for marketing
techniques to market their product.
THE DECLINE STAGE:
In the decline stage the product Sales become lower and retain to drop to lower stages. In this
stage the Companies decide whether to harvest the product or divesting the product.

PRODUCT PORTFOLIO:
The product portfolio of coca cola in Pakistan comprises the following 11 brands:
1. Cappy
2. Coca Cola
3. Coca Cola zero
4. Diet coke
5. Fanta
6. Kinley
7. Monster
8. Rani
9. Sprite
10. Sprite 3G
11. Sprite zero

EXTENSION STRATEGY:
INTRODUCING NEW VARIANTS IN THE MARKET:
One of the popular and loved soda drinks in Pakistan, Coca-Cola, has many greater flavors
than just the one we know. Some of these flavors are not widely available while the others
been discontinued or restrained to certain international countries. Apart from normal Coke
other Coke variants like Diet Coke vanilla Coke taste, Coca Cola Lime etc. are yet to be
released in Pakistan.
EVOLUTION OF PACKAGING:

Page-
Over the years the branding and packaging of Coca Cola have evolved, however it is still not
far different from its original shape. There is a lot of competition within the market of
carbonated smooth drinks, which includes surviving agencies like Pepsi, so Coca-Cola makes
use of different attractive packaging and takes the assist of different branding strategies to
compete with its opponents.

TYPES OF PRICING TECHNIQUE:

COMPETITION BASED PRICING:
Coca Cola is in extreme competition with Pepsi so its pricing cannot exceed an excessive
amount, nor lower too much as compare to the price of Pepsi cola. If price of Coca Cola
exceeds too much from Pepsi the consumers will shift toward Pepsi cola and on the other
hand if Coca Cola decreases its price too much people may get impression that the quality is
also low.
PROMOTIONAL PRICING:
Coca Cola gives promotional prices very often. Especially on some occasions like Ramadhan
the Coca Cola reduces its rate up to five or 10 rupees on 1.5-liter bottle.

MARKET SKIMMING OR PENETRATION PRICING:

As a mass market and old product Coca Cola cannot follow market skimming or penetration
pricing policy. As it has very strong competitors like Pepsi and co. if, they increase the price
mass market will divert towards Pepsi.

PROMOTION MIX:
ADVERTISING APPEALS:
Emotional Appeal: Coca-Cola’s new advertisement aired from January 2020 shows family
values of, how important family gathering is and how Coca-Cola helps in binding that bond
even tighter.
Social Appeal: Coca-Cola’s Ramadhan TVC’s and newspaper advertisements highlight how
important is it to interact with friends and promotes helping and bonding with poor people.
Giving a strong social message that in times of need help out and reach out for people and
understand their needs in these times, where we should share our happiness with less
privileged.
Humor Appeal: Coca-Cola’s 2017 Desi-Wedding ad had a humorous appeal where a guy
tries to give Coca-Cola to a girl, but the girl’s father takes the bottle instead and pranks him
and laughs at him.
MESSAGE EXECUTION TECHNIQUES:
Musical: Coca-Cola uses musical messaging techniques via concert advertisement and
wedding musical advertisement
Humor: Coca-Cola makes humorous ad by mocking its rival Pepsi

Page-
Lifestyle: Coca-Cola highlights that people who have a lively personality and are extroverts
tend to use Coca-Cola to solidify a bond, or start new ways to make friend
Slice of Life: Ramadhan advertisement, Family Gathering advertisement, brotherly love
advertisement gives emotional message and shows how important social bonds are as part of
life.
Endorsement: over the time in Pakistan, Different celebrities have endorsed Coca-Cola, like
Mahirah Khan, Shehryar Munawar, Momina Mustehsan etc.
MEDIA (S) USED FOR ADVERTISING:
Print Media: Newspapers and magazines are widely used at global level to advertise Coca
Cola.
Internet: Internet is another platform in which the various sorts of Coca-Cola classified ads
are located. Specifically, the brand’s online advertisement is undertaken through the use of
banners, pop-up ads, on-website sponsorships, and various other varieties of on-line
advertisements.
Visual and Aural Media: Coca cola is also advertised through television cinemas and radio.
Coca cola launches different ads in different countries throughout the world and their ads
reflect values customs and traditions of different countries. In cinemas coca cola
advertisements are played before the movie starts or between the movie short breaks or it is
also advertised by showing being consumed by the lead roles in the movie. It is also
advertised through radio, but the duration of radio ads is not too long but it’s enough for
promoting brand awareness among their consumers.
Posters and Billboards: Posters are commonly displayed at the public transports, shops, and
restaurants and in Pakistan particularly posters are also found on the walls, poles and even on
the bridges. There is another mean “Billboard” by which coca cola is advertised. But in
Pakistan coca cola is no more advertised through billboards because they are now banned in
Pakistan.
MOST USED MEDIA OF ADVERTISING:
The most used media of advertising coca cola is visual media. Throughout the years coca cola
is launching ads with unique slogans like “The Coke side of Life”, “Turn up your day with
Coca cola”, “Taste the Feeling” etc. Coca cola tv commercials attract all types of audience
whether they are youngsters’ teenagers or elders. They promote family values and different
customs and traditions through their tv commercials. These tv commercials help coca cola to
remain in the mind of their consumers so the coca cola commercials play major role in the
brand success. The frequency of commercials is very high they usually aired on primetimes.
The latest ad of coca cola Pakistan featuring Mahirah Khan is targeting everyone especially
those heroes that are part of this fight (Coronavirus). Coca cola is a brand for everyone so this
ad is for all the doctors for the ones who are suffering from coronavirus, for those who do not
lose hope and are patient, those who are alone, those who are together, the delivery boys, for
the survivors in short it is for each and everyone.

PERSUASIVE ADVERTISING:

Page-
Coca-Cola makes use of persuasive advertising to grow demand for its products. Persuasive
marketing is extraordinarily competitive in cases in which different competitors of tender
drink production come in vicinity. The idea is persuading the target audience to buy Coca-
Cola products because of their ability to cause them to satisfy and enjoy existence. There is
similar merchandise (Pepsi) within the smooth drink market however there is no room to out-
compete Coca-Cola due to the powerful advertisements which might be wonderful and
convincing in nature. The approach that Coca-Cola offers to its product promotion is
interesting and captivating in its very own manner.

BELOW THE LINE TECHNIQUES:

SALES PROMOTION:
Coca cola spends a lot of money on advertising and marketing and despite the fact that the
emblem name is very famous Coca cola still uses sales promotion techniques which will
appeal to new customers and also to provide their current clients with an incentive to buy
more of their products. Coke usually use promotional techniques in the form of advertising.
Nowadays Coke undertake patriotism philosophy of their marketing as an example now a
days TVC seen. One of the bad strategies of Coke is that they always increase their product
price in summers, by doing this their sales may be reduced, or it may effect on their brand
loyalty.
SALES PROMOTION TECHNIQUES:
Dumpbins: Coca Cola has Dump boxes assigned at store like a first-rate marketplace in
which all the Coca Cola products are assembled.
Points of Sales Display: Coca Cola promotes its products through standees and banners
located at different public places like shopping malls, restaurants, cafeterias of schools,
colleges, and universities etc.
PERSONAL SELLING:
Personal selling is when businesses use people to sell their product face to face customers.
Coca Cola for example uses personal selling if you are at a cricket match or at the station you
will see a guy yelling “Cold Coke here”.
PUBLIC RELATIONS:
Public Relations are activities that help an organization to influence a target audience. Coca
Cola uses this by being at big events and getting people to notice their product.
SPONSORSHIPS:
The Coca Cola organization has targets to obtain their core objectives via sponsorship
programs. The strategies are based totally upon investing and assisting in the foremost events
in the world. Through sponsoring such huge events the company turns into part of the
predominant activities that create great influences in the public.
TRADE FAIRS:
Coca cola participates in exhibitions like in expo Centre and in different events like food
festivals (Karachi eat Coke fest, etc.) and promotes their products through these events.

Page-
CHANNELS OF DISTRIBUTION:
Coca Cola has evolved its distribution community everywhere in the world. It follows two
kinds of distribution method:
Single Intermediary Channel: In direct selling they sale their products in stores by using
their personal transports. These stores can be retail shops, restaurants, cinema halls, etc. They
have got a huge wide variety of automobiles to supply their products. In this sort of selling,
organization have extra profit margin.
Two Intermediary Channels: Coca Cola is in partnership with diverse distributor
companies. The employer supply products to these distributors, who then cause them to
available to the retailers. They have their entire dealers and organizations to cover all region
due to the fact it's far very tough for them to cover all place of Pakistan by way of their own
so they have a lot of wholesalers and businesses to assure their clients for availability of coca
cola products.

PACKAGING:
There are hundreds of reasons which could explain Coca Cola is such a hit product: specific
flavor, emblem photo, classified ads that are starred through celebrities. Apparently,
packaging must be introduced on this list since it did help Coca Cola to draw hundreds of
thousands of customers. If a product stands out in packaging, purchasers will without
difficulty notice the product, after which they are much more likely to buy products with
appealing packaging.
Paying Attention to Cultural Values: Coca Cola paid special interest to cultural and family
values, especially those which are related to vacations. No remember on Ramadhan or Eid,
Coca Cola always provides you with unique layout in packaging.
Boosting Patriotism: Coca cola constantly tried to awaken our patriotic emotions. For
example, “Share a Coke with Pakistan” cans.
Affordable Packaging: Coca cola is affordable for everyone because they have different
packaging for people with different income level.

INTEGRATED MARKETING MIX:

In my opinion Coca Cola’s marketing mix is integrated because its products are affordable to
all the socio-economic classes because they have different packaging for the consumers of
different classes which makes their products affordable for everyone. The integrated
components used by Coca Cola comprises of mass media methodology which consists of tv
advertising, print media and banner advertisements. Also, the quality of the products they are
providing to their consumers matches with what they are promoting. Their promotion does
justice with their products and their price and it is seeking the attention of maximum audience
possible. Their products are placed in the market in such a way that they are readily available
for their consumers.

WHAT THE BRAND/ MARKETER SHOULD DO TO INCREASE ITS

BUSINESS (SALES)?

Page-
 Coca-Cola’s products aren’t healthy. As a result, people may be alienated by that and
avoid buying the product, especially for their kids. That is why many products have
already been banned from the campuses. People’s desire for healthy food
consumption will rise even more, so Coca-Cola has to adapt to this new development
even faster. There is high potential for the company to introduce more healthy drinks
since people pay more attention to that. Being the biggest producer in the Soft Drinks
Industry people like the brand and would probably purchase the product.
 Image building is the crucial factor that encourages your image to hang out in a bunch
of non-recognizable brands. Thus, brand picture building is vital, and it very well may
be finished by supporting occasions, promoting, social reason related publicizing,
legitimate arranging of brand character and so on.
 Ensuring availability is a major factor in improving sales. If your product (coca
cola) is well known but not easily available, the sales figures will go down. To
avoid this the company should ensure that its supply chain is efficient and is
well coordinated. Field teams should be assigned to ensure the effective
carrying out of the supply chain.
 The major factor which is influencing the sales is the product display tactics
used. The sales of the soft drinks increase when the soft drinks are placed near
the entrance and near food items which goes well with the drinks. This tactic
helps the customer to promote buying soft drinks. The sales can be increased by
displaying the products itself as well as the display hanging and other attention-
grabbing components. 
 Brand can outwardly request the clients to purchase the items. Devices that can be
utilized to improve visual promoting are: Signs, Banners, Sounds, Planograms.
Sign/images can go about as visual marketing devices. Standards and sounds draw in
the consideration of clients, though planogram helps in masterminding the items on
the rack as indicated by the past marketing projections.
 Consumer interest for better decisions implies that no soda range is finished without
low-and no-sugar sodas. Soda makers are centring consideration around there with
regards to new items and missions. Chipping away at making items that consolidate
the kind of the first item, with a no-sugar formula to make them more interesting to
customers, would build the deals.
 Packaging assumes an enormous part in buyer dynamic. Previous CEO of The Coca-
Cola Company, Muhtar Kent, when said, "It's the single greatest driver of deals
expansions on the planet." But standing apart on the store rack and grabbing the
attention of the customer is the test these days of overpowering item decisions.
Interesting to your purchaser is only one viewpoint to consider when choosing which
bundle to utilize. So engaging packaging will doubtlessly help in expanding the deals.

Page-