You are on page 1of 47

TERM PROJECT MARKETING STRATEGY

Marketing Strategies Of

Coca Cola

MR. KASHIF AHMAD

TABLE OF CONTENTS CONTENTS 1. 2. 3. 4. Acknowledgement. Mission statement Introduction. Coca Cola. a. Coca Cola International. b. History. 5. Management. 6. Market share. 7. Financial report. 8. Dividends and Cash Plan. 9. Products. 10. Strategic planning. 11. Bottlers owned by Coca cola 12. Coca Cola Pakistan. 13. Major Competitors a. Pepsi b. History. c. Financial assets. Market share. Financial report. Products. Methodology 14. Some basic information regarding marketing of coke a. Target market: b. Major segments: c. Factors effecting sales: d. Major competitors: e. Strategies of quality: f. Threats from competitors: g. Targets that would like to attain: h. Expanding target market i. Threats and opportunities for price: j. Strategies of getting goals i.e. high profits: k. Marketing strategy: l. Expectations for the coming year: m. How coke determine the yearly budget: 15. Marketing strategies 16. Pest analysis

. 3

ACKNOWLEDGEMENT

We think if any of us honestly reflects on who we are, how we got here, what we think we might do well, and so forth, we discover a debt to others that spans written history. The work of some unknown person makes our lives easier everyday. We believe it's appropriate to acknowledge all of these unknown persons; but it is also necessary to acknowledge those people we know have directly shaped our lives and our work.

Coca Colas Mission Statement


Our mission statement is to maximize shareowner value over time. 1. In order for coca cola 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 carrying through a well thought out comprehensive business Brand Coca Cola is the core of our business. 2. We will serve and provide a non-alcoholic drink suitable for everyone to drink throughout the day. 3. We will be the best marketers in the world, with excellent promotion and appeal to all types of people. 4. We will think and act locally in order to get into a better frame of mind. 5. We will lead as a model corporate citizen, in order to set an example for other companies. The main and most important objective of Coca Cola is to increase volume, increase our products worldwide of non- alcoholic drinks, increase sales, increase our cashflow in the long term and create a good impact on the economy by using better resources for the environment and creating minimal waste as possible. Worldwide, there are over 16 million customers who sell or serve Coca-Cola directly to consumers via their stores or their selling methods. We see these sellers as very important and it is vital that we help them with their businesses and create more opportunities for them to sell more of our products. Our customers needs are paramount for the company, and we make sure that we understand these needs whether they are selling from an elegant retailer in an up- scale supermarket, or on a high street kiosk. Whether or not we can meet our customers needs and demands is essentially whether or not we as a company are successful. There are more or less 6 million people in the world who could be Coca-Cola customers, and if we were to expand and create more products which meet the needs of more and more people, this number could raise up by millions. The only way we can achieve this is if we release the right products at the right time in the right market, as we need to appeal to the majority of customers in order to attract the attention of potential customers.

Coca- Cola International


The History of Coca- Cola
In 1986, the Standards of the Coca- Cola system establish Coca-Cola enterprises. Each and every one if Coca-Colas franchises have a connection and a history of traditions of the company which make it so unique and is the foundation of the company. In 1886, a pharmacist from Atlanta named DR. John Pemberton produced CocaCola syrup. He made it purchasable in the form of a fountain drink, meaning you could not buy it from a bottle, this was later changed in 1899, when two men who were Chattanooga businessmen began to bottle the drink and they secured the rights to the bottle. They then had the authority to sell the drink for the majority of the USA from the Coca- Cola Company; this independent bottling system continued to operate until the early 1980s when the bottling franchises came together and became one company. In 1986 the Coca- Cola Company merged two large ownership groups and some of its company owned operations which ultimately formed Coca- Cola Enterprises Inc. On November 21 st 1986, Coca- Cola offered its stock to the public at a price of $5.50 a share. Annually, the total unit sales were 880,000 (1986).

This continued for 5 years, when in December 1991, a merger between CocaCola enterprises and Johnston founded a stronger Company which was larger and would help boost and increase bottling. Due to this merge, began to successfully reconstruct the companys image in 1992 and the unit sales has increased to 1.4 billion and the total income was $5 billion.

Management:
Here is an image of the hierarchy used in the Coca- Cola Company.

Chairman Board of governors

Vice Chairman and chief operating officer

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

Market Share:
As Coca- Cola is probably the largest company in the soft-drink industry, it gets to benefit from the large market share and is in control of around 59% of the worlds market which is very large.

Global Market Share:


This table shows the operating segments worldwide; (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 table indicates that the Coca- Colas Companys market is vast geographically and it holds great control successfully. The company generated record volumes of soft-drinks in 2002, when they increased their business by 250 million units. Due to carbonated soft drinks increasing and being the largest growth segment within its category of non-alcoholic ready-to-drink beverage, the company are more focused on this and are ensuring that they are constantly in the market and are increasing it each and every day and are always alert for any changes in customer needs or demands and most importantly it is vital that they are increasing their pace as it is very important that they do so in order to meet their objectives and be successful. The following pie chart demonstrated the operational income earned by the Coca Cola Company. (Figure)

Coca- Cola is the Worlds leading Soft Drink Company as this is due to this strategy and its successfulness. Within the last decade, the global unit sales have increased for the Coca- Cola company and the statistics of these data can be analyzed in the following chart.

12 10 8 6 4 2 0 1971 1981 1991 2002 unit sale in billions

(Figure)

This chart shows that within the Coca- Cola Company, there is positive growth in the market. Internationally, there us a growth of 5%, and worldwide, there is a growth of 4%. The reason for this is mainly down to the innovative marketing programmers which have done a fantastic job of excellent marketing and promotional techniques, finding the customers needs and demands, and most importantly putting these needs into practice and creating better products, making the customers feel more connected to Coca- Cola. Another reason for their growth is due to the bottles and their branding methods. The company have ensured that they have kept their good status by making their brands very well known and at times, associating their products with something which is very important to customers, for example, Coca- Cola have a very famous television advert which associates their drink with Christmas. This advert is shown mostly every year at Christmas time and it is put there to make people associate Coca- Cola with Christmas and as this time of the year is a very positive and joyous occasion, it makes people feel more connected to the company and as if they have grown up with that drink always available, particularly the elderly who may have had Coca- Cola with them as a child.

The Coca- Cola Company wanted their bottles to be more economical and in 2002, this dream had become reality as their bottlers had made their bottles just that. This in many ways improved the relationship that the Company had with their bottling companies and this is very helpful, particularly as it helps the two gain more opportunities for growth which means that communication within the two will increase and their relationships with customers, production and logistics will improve.

Market Share by Area:


Coca- Cola is very popular and is known world-wide. It is world-renowned and is currently available throughout the world throughout the continents. The worldwide unit case volume by operating segment of 2002 review is shown below: 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

This pie chart shows that Coca-Cola has the most volume in North America, and statistically the least in Africa. This is probably due to the fact that Coca- Cola is an American established Company and although it is very popular in Europe and Asia, perhaps there is not enough media coverage or methods of successful promotion in Africa, and this could possibly be worked on and improved by the company.

10

In terms of areas, this table shows data detailing the market share of the Coca- Cola Company. 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 4 5 3 3 2 2 22 15 398 America United 4 5 3 3 2 2 23 16 419 States Latin 6 7 6 6 3 4 24 15 205 America Argentin 7 4 6 2 7 2 20 10 236 a Brazil 5 5 3 6 3 5 23 13 144 Chile 9 6 5 3 (2) 3 56 23 336 Mexico 7 10 8 9 2 5 22 18 462 Europe 6 3 5 3 2 4 12 6 72 & Middle East Eurasia 17 8 6 5 (14) 1 14 5 39 France 8 3 9 3 7 3 9 5 110 German 1 2 (1) 1 (6) 1 14 7 193 y Great 8 2 11 2 8 3 17 6 193 Britain Italy 1 3 4 3 2 2 9 6 104 Middle 12 12 7 5 4 8 8 3 17 East Spain 6 4 8 5 4 4 17 12 264 Asia 7 6 6 7 10 7 14 5 23 Africa 7 6 8 3 10 6 34 11 34 If we analyze this data, we can conclude that Coca- Cola is gaining more and more customers which are shown in the Companys per capita income geographically. 24 eight- ounce servings equally to one unit case. The non- alcoholic beverages are shown in the table and it includes beverages which are sold commericially which is based on industry sources and is estimated by the Coca- Cola Company.

11

In Asia, Coca- Cola is very widely used and consumed. There are on average around 3.2 billion units sold annually and Asia are main consumers of Coca- Cola. On average, someone who lives in Asia will have around 2 servings of Coca- Cola a month. As the company are constantly trying to think of new ways to improve their drink and come up with new varieties of the original Coca- Cola, they have achieved a growth in volume of 10% in 2002. As more and more countries are developing and become more populated, Coca- Cola can take this as a huge benefit and perhaps come up with new ways to expand their products and increase the popularity of the brand. In China which is a very developed country, the total unit sales of Coca-Cola have increased by 6%. This pie chart shows the total unit sales in Asia: (Figure)

This chart shows that statistically, Japan has the most unit sales in Asia, this is not very surprising as Japan are extremely developed and have the best technology systems and fantastic ways of promoting, for example, in major cities such as Tokyo, there are large screens around the city which can all be used to advertise the Coca- Cola company. However Korea has the least units sold in Asia, this could possibly be due to the fact that Korea are not as economically developed as other Asian countries which means that if the company were to focus more on these countries which has less promotional methods, they could potentially cover the majority of the countries throughout the World. Other countries such as Pakistan and India fall into the other category which shows that these countries are accountable for a quarter of the sales in Asia.

12

Financial Report:
Coca- Cola as a whole is a very strong Company financially, this is due to the sheer volume of units they sells annually. They always make it through tough financial times, and CocaCola will be known for a very long time. This table shows the financial report of Coca- Cola Company of 2000 and 2001 and it also includes the percentage change. (Table) Year Ended December 31, (In millions except per share data, 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 20,092 5,352 3,969 1.601 1.601 4,110 (963) (1,791) (277) 3,147 26.6% 38.5% 12.5 5.3 17.8 2001 19,889 3,691 2,177 0.882 0.882 3,585 (779) (1,685) (133) 2,806 16.2% 23.1% 11.9 5.2 17.1 Percentage change 1% 45% 82% 82% 82% 15% 24% 6% 108% 12% 5% 2% 4%

In 2002, there was a non-cash gain of basic and diluted net income or $.02 per share with taxes included. This was recognized by one of the equity investors on the issuance stock of Coca- Cola enterprises Inc. The following charges are for the 2002 basic and diluted net income per share:

$.24 per share including income taxes in relation to the organizational Realignment. $.19 per share including income taxes in relation to the Companys charges which were recorded by companys investors. $.16 per share including income taxes in relation to some of the manufacturing and bottling changes also for the intangible services. $.05 per share including income taxes in relation to a discrimination lawsuit settling terms. 13

$.01 per share including income taxes in relation to promotional and marketing expenses which were based around Central Europe. These charges are made up by an additional $.05 per share including income taxes in relation to the Coca- Cola Company and their mergers Hellenic Bottling Company S.A. and an additional $.04 per share including income taxes in relation to a tax rate reduction in Germany which gave the Company benefits and from tax planning strategies which were in the Companys favor.

Dividend and Cash Investment Plan:


The Dividend and Cash Investment Plan allows our current shareowners or those who have done so in the past to reinvest dividends in shares of the Coca- Cola Company in Company Stock. This is an easy, economical, suitable and methodical method of gaining more shares of Coca- Colas common stock and all those who are current shareholders or have been are entitled to participate in this plan and they may also buy Company Stock of up to $125,000 in voluntary cash investments. During the year of 2002, shareowners had invested $36 million in dividends and $31 million cash into the investment plan and by the end of 2002, 76% of Coca- Colas Companys shareowners or those who previously were participated in the plan.

14

Company Statistics:
The Companys statistics are quite remarkable; this is probably due to the fact that the company is so well known and it sold worldwide, not only that, but it is one of the most famous non-alcoholic beverages brand in the World with a range of verieties. Also, due to their bottling and their brand name and most importantly their marketing. In the space of one year (between 2001 and 2002) there was an increase in sales and in their volume and every other aspect included in the Company. The Coca- Cola brand is constantly expanding with employers, vehicles, facilities and other aspects, the following tables outlines these statistics: (Table) 2002 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 Coverage of North American Can/bottle volume 15 4.2 billion 87% 13% 72,000 54,000 2.4 million 25 385 53 463 80% 46 44% 52% 4% 63% 3 6.3% 3% Flat 1 $1.95 (18)% $0.97 6% 83% 2001 3.8 billion 87% 13% 67,000 52,000 2.3 million 25 361 50 436 72% 46 45% 51% 4% 59% 3 6.8% % 2% % $2.39 9% $1.18 8% 74%

EBITDA is all the revenue and income before taxes, interest, depreciation, amortization and other items have been removed from them. Net Debt is the term for debts which are more long-term which also include long-term debt less cash Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable securities. Equivalent Case or Unit Case is the fountain gallons and physical case which has been converted into a standard unit of measure which is defined as 24 eight-ounce servings or 192 ounces per equivalent case sold by Coca-Cola Enterprises.

Products:
As well as Coca-Cola itself, there are many other different drinks and brands that the CocaCola company own; from carbonated drinks, to others and which are all worldwide and popularly known. When new products are launched, the marketing team carefully considers the countries culture and their restrictions.

Coca-Cola brands:
Coke Sprite Fanta Diet coke Coke Zero Coke with no caffeine

16

The over all volume of this company is as follows.


(Figure)

The Coca-Cola Company is committed and devoted to resource water only in markets where it expects profitable growth which is a good strategy as it has paid dividends. This approach has been applied successfully in several markets to several brands such as Ciel (Mexico), Mori No Mizudayori (Japan), Bonaqua (Russia) and Kinley in India. As Coca-Cola have many bottling partners which are strong and dedicated located throughout the USA, the countrys fastest increasing water brand was Dasani. . In Eurasia, the entire Turkuaz brand team worked together to launch Turkey's first purified water brand. This year, Coca-Cola Company also successfully energized a major piece of its beverage strategywater. By the end of 2001, its bottled water volume exceeded 570 million unit cases, making it the second biggest contributor to the growth of the company after carbonated soft drinks. Three of the water brands, Dasani, Ciel and Bonaqua each achieved sales of over 100 million unit cases for the year. In 2001and 2002, the company has also made good progress in coffees and teas. Beverage Partners Worldwide, the renewed and strengthened marketing partnership with Nestl S.A., began operations in 2001. This partnership combines Nestl's knowledge in life science, research and development with the expertise of Coca Cola Company in brand building and distribution. At the same time, the company grew Georgia coffee in Japan by 3 percent through awardwinning marketing in a category that was flat for the year. Also in Japanwhere The CocaCola Company is the leader in the total tea category, the second-largest category in the non-alcoholic ready-to-drink segmentit launched Marocha Green Tea. With sales of 46 million unit cases for the year, Marocha Green Tea is the fastest-growing product in the fastest-growing category: green tea. The popularity of Marocha is also recognized by the 17

industry with a leading trade journal naming Marocha the most popular new food and beverage product of the year.

Know the most recognized word on the planet after OK!

18

Among the soft drinks Fanta and Sprite become successful along with the major brand Coca Cola and Diet Coke. In key markets, the company has created new packaging sizes to satisfy consumer demands. Increasingly, Mexican families have lunch together at home. The average Mexican household drinks two-and-a-half liters or more of soft drinks during that break, while a twoliter bottle was the largest available package. So the company introduced a convenient 2- liter bottle to select regions, contributing to the sale of nearly 1.5 billion unit cases of CocaCola in Mexico this year. This larger bottle will complete its nationwide rollout in 2002. In China, Coca-Cola is an integral part of holiday celebrations and the family get-togethers that accompany such events. Through an intense focus on Coca-Cola, innovation and new beverages, it has achieved volume growth of 10 percent in 2001. In China, sales of CocaCola increased by 6 percent. In the United States, recognizing that consumers often enjoy their diet Coke with a slice of lemon, the company "bottled" the concept. The resultdiet Coke with lemoncontributed to volume growth of 4 percent for the number-one diet. Soft drink in North America: diet Coke. The company increased its two largest bottle sizes during the 2001 holidays, and festival packaging helped drive a 6 percent volume increase for Coca-Cola. The packaging innovations do not just involve resizing. The company has also responded to consumers' changing fashion styles with new bottles. With brands such as Minute Maid, Hi-C, Simply Orange and Disney juices and juice drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo in Africa. This year, the company re-launched its global sports-drink business, investing in new products, packaging, positioning and marketing. The results speak for themselves: its global sports drinks, led by Powerade and Aquarius, grew by 13 percent in 2002, nearly double the growth rate of the worldwide sports-drink category. Revitalized in the United States, the company introduced Powerade in nearly every major Western European market, including Great Britain, Germany and Spain, as well as in Mexico and Latin America. The company launched 27 products in 2001. The commitment of the company to packaging innovation also resulted in new initiatives for our fountain business, a channel through which many consumers enjoy Coca-Cola. In the United States, the company developed Fountain, a total beverage dispensing system that is more flexible and more reliable. Two years of research resulted in a dispensing system that provides exceptional beverage quality, easy to upgrade technology, brand and graphic customization and improved reliability.

19

STRATEGIC PLANNING
In the year 2002, the company had a great success, as the strategy worked which resulted in making Coca Cola Company the worlds leading company. In 2001, company accomplished the crust of its 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. Earnings per share grew by 82 percent, 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. Return on capital increased from 16 percent in 2000 to 27 percent in 2001. The company has generated free cash flow of $3.1 billion, up from $2.8 billion in 2000, a clear indication of its underlying financial strength. The strategy for the future of the company is very straightforward. The marketing strategy for the year 2002 is as follows, Accelerate carbonated soft-drink growth, led by Coca-Cola. Selectively broaden the family of beverage brands to drive profitable growth. Grow system profitability and capability together with our bottling partners. Serve customers with creativity and consistency to generate growth across all channels. Direct investments to highest potential areas across markets. Drive efficiency and cost-effectiveness everywhere.

20

MAJOR COMPETITOR PEPSI INTERNATIONAL


HISTORY
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of PepsiCola North America, Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.would entertain the listener with the latest musical selections rendered by violin or piano or both. The new name, Pepsi Cola, is derived from the two of the principle ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At that time, Bradhams advertising praises his drink as Exhilarating, invigorating, aids digestion.

1990-2002
The advertisement of the Pepsi changes to, You got the right one baby, Uh-Huh!.With the extensive usage of the stars in the adds, the popularity of Pepsi increase. In 1992 PepsiCola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Outside the United States, Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. PepsiCola beverages are available in more than 190 countries and territories. In Asia, they selected Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the operations carried out in South West Asia. As in Pakistan, they only entered beverage industry. They have eleven bottlers covering whole Pakistan. The plant operating here is Riaz Bottlers (Pvt) LTD. This plant was established at Lahore in 1974. The total capacity of the plant is 30,000 cases per day. They have four filling lines in the plant operating on the three shift bases. Each shift is of eight hours. They have permanent work force of 750 people and they employee approximately 1000 people more on temporary basis during summer season.

21

Pepsis Products
Pepsi Teem Mirinda Pepsi Max Pepsi Lemon Pepsi Blue Mountain Dew 7up

22

COCA COLA PAKISTAN


The Coca-Cola Company began operating in Pakistan in 1953. Coca-Cola, Fanta and Sprite are the brands in Pakistan. The Coca-Cola System in Pakistan operates through eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan, Multan and Lahore. The remaining two plants, independently owned, are in Rawalpindi and Peshawar. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan employs 1,800 people. During the last two years, The Coca-Cola System in Pakistan has invested over $130 million (U.S.)

49 years of refreshment in Pakistan


Coca-Cola introduced in Pakistan 1953 Fanta introduced in Pakistan Sprite was introduced Diet Coke & Fanta Lemon 1965 1972 2001

23

PROMISE OF COKE
The basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business.

TARGET MARKET
Cokes commercials basically based on young generations, So, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market.

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. 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, their basic segments are those people who take this drink regularly.

FACTORS EFFECTING SALES


There are so many factors, which affects the sale of coke. Here we are discussing three major factors which effects coke. Per capita income Competitors Weather

Per Capita Income


First we will discuss about Per capita income. This is major factor that affects the sale of this soft drink. Because which every passing year budgets are becoming very strict and tight in order to purchase things. So the disposable incomes of the people are coming down. They spend heavily on rents, utilities, and education and basic necessities and after that when they get extra money they think about this soft drink .So the decreasing per capita income effects badly in selling and production of this soft drink. 24

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.

Competitors
Cokes 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, coffee, tea are the competitors.

Weather
Weather is the third major factor in effecting the Cokes selling. This is underdeveloped market so the cokes consumption in summers is 60% and in winters is 40%.

MAJOR CUSTOMERS NEED


First of all the majority dont care that what they are going to have. In other words, they dont care before drinking that whether it is Pepsi or coke. They dont actually differentiate between these two brands in order to their tastes. Consumers basically drink what they get. They believe on WHAT COLD THEY SOLD Consumers availability in brands is basically works like: Push availability Pull consumers demand. For this reason Coca-Cola have provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market. They provide this infrastructure free of cost just to provide child coke to their customer, which they want to be purchase. Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not, if not then they immediately change or repair it.

25

MAJOR COMPETITORS
Consumers firstly decide that they are going to have a soft drink. Then they compete brands with each other. Like they compete Coke with Pepsi and Sprite with 7up and team .So the major competitor of Coke is Pepsi. When they motivate to any other brand or on Coke its in instinct basically that based on messages derive certain feelings. But Coca Cola thinks in a different way, they believe that RC Cola, new coming AMRAT Cola, and all juices, even they take water and tea as their competitors.

STRATEGIES OF QUALITY
After Micro and macro analysis Brand coke is primarily role 1. Enhance competition moments 2. When people watch cricket 3. Through commercialization 4. Fun time Though these strategies there could be better understanding and better connection with the public. These are the key consumption.

THREATS FROM COMPETITORS


Threats are well planned. Price is the major threat. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink. Because when the price go higher people go for the substitute of coke i.e. Pepsi. And when price goes down they think that there is must be some thing wrong in it. In short it all depends on customers perception.

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. There are three major ways of making money Over night profit Windfall profit Ethical and un-ethical ways

26

Over Night Profits


They could be over night profit that is for the number 1 brand for the year. This could be got my increasing sales volume

Windfall Profit
Can be windfall profit. They are the extras profit. When the consumption the consumption is on boom. So, there is different kind of profits.

Ethical And Unethical Ways


Profit can also get through ethical and unethical ways. They believe on this quote Every thing is fare in love and war. Some profits stays for some time like over night profits and some just come and go like wind fall profits. And they can also get profit through different approaches.

EXPANDING TARGET MARKET


In last 2 years Coke has come back in aggressive manner. Consumer has choice Attractive brand name Brand differentiating

Consumer Has Got Choice


Now the consumer has got choice. Because now they know the name of another big brand, 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 Coke is the name, which is the most popular after the word ok. So people can better differentiate brands with each other.

Brand Differentiation
Now different companies have got different brand names. So, people can distinguish between brands. Two major brands coke and Pepsi also have brand names. 27

Coca Colas Brand


Coca cola is US brand. Because they believe in the togetherness, being people together and friends are being together. Coca Cola strongly believes that Pakistani temperament is US not ME

Pepsis Brand
Pepsis brand is basically is basically ME branded. They use the temperament of ME. In contrast to Coke they believe on individual struggle.

THREATS AND OPPORTUNITIES FOR PRICE


Opportunities
If Coke is considered a luxury product. Then there is the tax rate system 15% - sales tax 20% - excise duty 27% - goes to government 03% - In making Budget After paying all these taxes coke has to pay electricity charges. We have to spend on distributions. After paying all these expenses Cokes margin squeezed and consumers have to pay for increasing tariffs. These are the opportunities through which we can increase the price and can get profits.

Threats
There are much more threats in increasing prices. Because same problem of substitute. If Coke increase the price lets say 1 rupee. Then people definitely wont go for coke. They have the best substitute of Coke that is Pepsi. So these are the threats in increasing prices. Coke will lose the margin of its profit and can face loss.

28

STRATEGIES OF GETTING GOALS I.E. HIGH PROFITS


To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows. 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. Through advertisements, offering different interesting things to attract people towards this product.

How to increase the interest level of consumers?


Coke is increasing the interest level of consumers by offering different flavors. For example Coke is increasing the number of flavors in Fanta, this is one of the product of coke. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained.

How to take part in energetic festivals?


Coke is already taking part in the festival like Basant since last 3 years. Coke offers different attractive things in their festival and through this Coke gained high profit and consumption of coke increased on these occasions. And this year in this year 2002 people were anxiously waiting that what interesting thing coke is going to offer.

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. What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. 29

Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It's a special thing to have billions of friends around the world, and we never forget it.

30

MARKET POSITIONING
Product Range
The total range of Coca Cola company in Pakistan includes: Coke. Sprite. Fanta. Diet Coke.

And company offers their products in different bottle sizes these includes: SSRB LRB NRB PET 1.5 CANS (standers size returnable bottle) (litter returnable bottle) (no return bottle) or disposable bottle (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 1.5 pets 12 bottles in a pack for disposable bottle 24 cans in one pack.

31

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, by this these retailers and middle man push their product in the market. And thats why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. Seen as sold They do agreements with a shop keepers and stores to exclusive sale in that stores. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.

Different Price In Different Seasons


Some times Coca Cola Company change their product prices according to the season. Summer is supposed to be a good season for beverage industry in Pakistan. 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.

32

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.

Eye Catching Position


Salesman of the coca cola company positions their freezers and their products in eyecatching positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion
Company also do sponsorships with different college and schools cafes and sponsors their sports events and other extra curriculum activities for getting market share.

UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children.

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. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.

33

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.

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. They have a separate department for print media.

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

34

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. So Coca Cola Company does regular TV commercials on different channels.

Billboards And Holdings


Coca cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.

EXPECTATIONS FOR THE COMING YEAR


Every thing starts from the attitude of consumers behavior. And the basic key to attract the consumers is to throw the money away. And positive feeling felling with the brand, which they used to have Coke wants to advertise their products heavily in the coming year. And it will take the 10% of their profits. And when we take it as a global level it is $ I billion. Coming year is the challenging year for the industry of Coke. They have to take lots of decisions that how to increase the production and where they have to spend money. For gaining success in coming year they have to have some important things like: 1. Loyal consumers are important for companys success. 2. Workers should be the brand centric not the promotion centric. 3. They should know how much to for the brand activities. 4. They should also know that how much to do with the promotion activities for brand.

HOW COKE DETERMINE THE YEARLY BUDGET


Coke determines its yearly budget by the Sales volume Profitability Target volume

35

Sales Volume
Coke determines its yearly budget through the sales volume. They first concentrate on the thing is what is the condition of their sales? if the condition is good of their sales then they definitely increase their production and sales volume. Otherwise they concentrate on their old strategies.

Profitability:
The second thing through which they determines budget is the profit .if they r getting profits with the high margin, then they definitely want to increase their profits in the next coming year. Every organization runs on the basis of getting high profits. No organization wants to face Loss in their business. To get profit is the first priority of the Coke.

Target Volume:
To run the business every industry has some targets, which they want to achieve in a specific time period. If industry achieves those goals in that period then for the coming year it increases the volume of the target. So Coke Follow the same thing it has also some goals and targets to achieve in the given time period. When they succeed to achieve that target then they increase their target volume in the next year.

36

SALES PROMOTION ACTIVITIES


Coca-Cola Cricket
Cricket the most sought after; watched & played game in Pakistan .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 signed a sponsorship agreement with eight of Pakistans National cricket players. 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 CocaCola brand. The Coca-Cola 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. This campaign helped Coca-Cola to establish its association with the game & the player.

Coca-Cola Concerts
Abrar-ul-haqs distinct style, lyrics & songs have made him an instant hit among the masses in Pakistan. His enormous popularity in the country & abroad is supported by Coca-Colas 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. 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. Coca-Colas brand positioning of providing deep down refreshment for the body, soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar.

Coca-Cola Food Mela


With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the people of Karachi, to a festive food festival comprising of 50 restaurants, spread out all over the bustling citys map. The promotion saw the avid families & friends enjoying the delicacies at the restaurants; all resiliently upholding the Coca-Cola identity.

37

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 added to the carnival atmosphere by making the festival free to enter & decorating all main roads in Lahore with illuminated kites. Coca-Cola also hosted a concert of pop idol Abrar-ul-haq, had childrens parade & held the Coca-Cola kite flying championship during the basant festival. Now where there is basant there is Coca-Cola, it has been impossible to envisage basant without Coca-Cola. 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 GO-RED
Quenching the thirst of motorist, pedestrians & passerbys during Lahores hottest summer season, Coca-Colas 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 GO-RED stall, served well to promote the Coca-Cola industry.

Coca-Cola Party in a Park


In June 2000, Coca-Cola created an experiential musical evening in Lahore, where Junoon performed. This program was recorded and one-hour program shown in the national TV for free.10 million households saw Coca-Cola Party in a Park while 10 thousand people attended the event.

Coca-Cola Shopping Festival


Coca-Cola hosted The Coca-Cola Shopping Festival Lahores first shopping festival, a resounding success with tempting discounts, live music, great prizes & fire works. Liberty marketing Gulberg was a hive of activity during the weeklong shopping extravaganza. The in augural event proved so popular that it is now set to become an annual fixture.

Coca-Cola Pet Promotion


In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in Pakistan. Targeting house wives & family home, Coca-Colas 1.5 liter Pet bottle, took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits .A treat for the family, Coca-Colas PET was offered through a price-off promotion that said.Go out & get some

38

Coca-Cola Ramzan Campaign


A very special occasion for the people of Pakistan Ramzan saw another very special CocaColas promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with a super price-off promotion. The emphasis on enjoying Coca-Cola at Iftar with friends & family.

Coca-Cola Wonder of the World Promotion


In July 2000, Coca-Cola set the stage of the grand UTC promotion. Coca-Cola went ahead with the idea of giving consumer chances to win fabulous, magical dream vacation to numerous wonder destination throughout the world on every purchase of a 250 ml RGB bottle of Coca-Cola, Sprite, & Fanta.The promotion gave consumers a chance to win free drink, a trip to PARIS, HOLLYWOOD, NEWYORK, SINGAPORE & CAIRO along with airfare & four nights free stay in these dream lands. The promotion saw avid consumer collecting Coca-Cola Crown caps & sparked a keen response from the public , rendering an outstanding testimonial campaign in the second phase, highlighting the winners over whelmed in the magical delight of their favorite beverage Coca-Cola.

Coca-Cola & Nokia


In August 2001, the new under-the-crown promotion Nikla Kiya?(What have u won) was launched in collaboration with Chimera Nokia.The promotion gave consumer a chance to win thousands of Coca-Cola branded Nokia 3310 cellular phones on every purchase of 750ml RGB bottle of Coca-Cola ,Sprite, & Fanta.The other highlight of promotion was the Caught Red Handed campaign. Branded Coca-Cola with caught red handed team in them went to Lahore & Karachi for three days, 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. Caught red handed become a huge success among the masses as it was one to one interaction between the Coca-Cola brand & the consumers. This activity helped billed confidence and brand loyalty among core consumers.

Coca Cola TV Mazza


The coca cola new campaign is coca cola tv mazza, it is a utc scheme in which people are getting television sets of different sizes. These days this scheme is very popular among the people.

Coca-Cola & Mc Donalds


Coca-Cola & key account of MC Donalds launched the we go together joint promotion to reinstate amongst consumers a real sense of the affinity that, both shares globally. The promotion kicked off with pos material (Danglers, Bunting etc) displayed at all MC Donalds restaurants along with a special offer for coke & fries. 39

Fanta & Sprite Launched


In November 2000moving on to the Sprite & Fanta brands, the consumers in Pakistan witnessed a soft launch in essence. The Coca-Cola Company declared the new NonReturnable bottles of Sprite & Fanta as the New, On the Go Packs flaunting the innovative packaging convenience. Fanta & Sprite are sure to enjoy considerable success in Pakistan.

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

40

CONCLUSION
After thorough research, we come to the conclusion that the marketing strategy of Coca Cola is working for them and the product is gaining popularity among youth day by day.

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

41

PEST ANALYSIS OF COCA-COLA


There are four variables, which we will discuss in our report, they are:

POLITICAL VARIABLES
Political variables Effects of government regulations & deregulations Effect of environmental protection laws if any Import and export regulations Effect of political conditions in certain countries of Coke Any effect of election, military take over, Revolution at Coke Strongly Effected ++ Some what Effected + No Effect + NE Some what Effected Strongly Effected

YES NE NE YES

Conclusion Of Political Analysis:


As far as the above table is concerned it could be seen that there are very little chances of political variables to effect the cokes production and selling behavior. In the political variables most of the things are related to Governmental activities. So, they dont leave any good or bad impact in the Industry of coke. And there are some exceptional things like: environmental protection laws they some what effect the industry of Coke. From last two years Government is going to be really very much conscious about the environment. But after making the adjustments in plants and applying the proper way of wastage the chances of being affected by the protection laws are going to be diminished. So it impact good for the Cokes reputation. And the second thing in political variables which effects Coke is elections & military take over Because in the days of elections and marshal laws condition the countries production in any field is declined. So it affects slightly the revolution of Coke. So political conditions are over all leave neutral effects on cokes industry.
42

ECONOMICAL VARIABLES
Economical Variables Do soaring interest rates make business task any harder Any effect due to inflation Anything done to reduce unemployment Any effect of 11th September 2001, incident at Coke in Pakistan Strongly Effected ++ Some what Effected + No Effect + Some what Effected Strongly Effected YES YES YES NE

Conclusion Of Economical Analysis


It could be seen that economical variables highly affects the Cokes resolution. Economic factors are those actors who effect the production of any industry. So, Coke is not the out of question. If the economic conditions of the country is not that strong and Coke increases its Price in this situation. Then it would impact highly negative. And inflation is also not a good position for any countrys production point of view. It also impacts highly negative in the Cokes production. And as a country concerned like Pakistan where the unemployment rate is very much high. The Coca-Cola system in Pakistan employs 1,800 people. During the last 2 years, the Coca-Cola system in Pakistan has involved over $130 million (U.S). When we draw the conclusion of economic variables. Then we come to know that if economic variables are in the favorable position of country then they impact good other wise the impact highly bad.

43

SOCIAL VARIABLES
Social variables Effects of advertisement of Coke on Public popularity How will do Cokes contribution affect charity organizations of Pakistan Has rising consciousness of natural resources in people effected your save environment activities. Strongly Effected ++ YES YES YES Some what Effected + No Effect + Some what Effected Strongly Effected

CONCLUSION OF SOCIAL ANALYSIS EDUCATION


The Coca-Cola Company has always believed that education is a powerful force in improving the quality of life and creating opportunity for people and their families around the world. The Coca-Cola Company is committed to helping people make their dreams come true. All over the world, we are involved in innovative programs that give hard-working, Knowledgehungry students books, supplies, places to study and scholarships. From youth in Brazil to first generation scholars, educational programs in local communities are our priority.

ENVIRONMENT
A large part or our relationship with the world around us is our relationship with the physical world. While we have always sought to be sensitive to the environment, we must use our significant resources and capabilities to provide active leadership on environmental issues, particularly those relevant to our business. We want the world we share to be clean and beautiful. We are always innovating to bring you different delicious beverages. This same spirit of innovation comes alive in our environment programs. Were committed to preserving our environment, from use of more than $ 2 billion (U.S) a year in recycling content and suppliers, and environment Management initiatives, down to very local neighborhood collection and beautification efforts. Heres a sample of what were doing in different communities around the world regarding the conservation of water and natural resources, climate changes, waste environment education. 44

The Coca-Cola system in Pakistan operates through eight bottlers. Four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL).

COMMUNITY INVOLVEMENT:
In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system initiated a famine-relief program to help victims and was the first private-sector company to assist. The Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one employee from each plant, selected through a draw, to be sent on the Holy Pilgrimage to Mecca at the Companys expense.

TECHNOLOGICAL VARIABLES
Technological variables Have business innovations effectively promoted your business Has the governments regulations ever hindered in importing technical equipment Does Coke help in promoting paperless environment Strongly Effected ++ YES Some what Effected + No Effect + Some what Effected Strongly Effected

YES

YES

Conclusion Of Technological Analysis


Of course business innovation leaves highly good impacts in the business of Coke. As coke use more advance technology in its production process. It will resulted in increment of their production through out the country. As far as the governmental hindrances are concerned the impacts highly bad on cokes production. Ever year when budget in announced government taxes rates always shoot up. This approach of government decreases the profit margin of Coke. As the coke helping in promoting paperless environment .it impacts good, because computers are the basic need of any person now a days. And though its a big industry so it is promoting the trend of paperless environment. And it is giving the way of other industries to come to new technologies and into a new world of business. Through computers coke can increase the efficiency of its business and can have up to-date data about their productions. 45

OVER ALL RESULTS OF PEST ANANYSIS


After our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited), we came up with the very interesting report of facts and figures. Coca-Cola is no doubt one of the most popular beverage company and its product COKE is one of most consumed cola drink. They spend billion of dollars on their advertisement, promotions and recreational campaign. Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough time. CocaCola is a 27% shareholder in the Pakistan market and they dont want to stop here!! Its target market is to achieve a much higher %age. Coca-Cola has about 2000 employees at Pakistani plants. Lahore plant of Coca-Cola is one of the beautiful plant in Asia, Situated on Raiwand Road. Coca-Cola has always had a close consumer and supplier relationship with its customers. Its entertaining and colorful advertisements have always and will always rock the media. Pakistani rock stars, sportmen and actors have played a very vital role in making CocaCola such a popular beverage.

46

CONCLUSION:
Coca-Cola no doubt come the heart beat of Pakistanis. Coca-Cola is one of the leaders in sponsoring the most important, thrilling events. E.g. Cricket matches, concerts and many other social occasions. Event at the present they are organizing a Basant festival for which they busily organizing stuff.

So

Jo chaho ho jaye cocacola enjoy

47