TERM PROJECT MARKETING STRATEGY
Marketing Strategies Of
PRESENETED TO: MR. Ahmad Kamal PRESENTED BY: WAQAS MALIK MBC-10-22
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
This report is dedicated to my beloved parents, Who educated me and enabled me to reach at this level.
First of all we would like to thank our teacher Mr. and so forth.ACKNOWLEDGEMENT
We think if any of us honestly reflects on who we are. Muhammad Shafique for their guidance through out the semester. how we got here. we discover a debt to others that spans written history. but it is also necessary to acknowledge those people we know have directly shaped our lives and our work. We believe it's appropriate to acknowledge all of these unknown persons. Then we would like to thank our friend and brother Mr. what we think we might do well.
. Zeeshan Anjum for providing us the information that was required for completion of this project. The work of some unknown person makes our lives easier everyday.
expand our share of worldwide nonalcoholic ready to drink beverages sales. The ultimate objectives of our business strategy are to increase volume. including our consumers. 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 will think and act locally. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. and our communities. Brand Coca Cola is the core of our business 3. Ultimately.The Mission Statement of the Coca Cola Company
Our mission statement is to maximize shareowner value over time. We will lead as a model corporate citizen. our bottlers. There are nearly 6 million people in the world who are potential consumers of our company’s product. whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. Consumer demand drives everything we do. We strive to understand each customer’s business and needs. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. 4. We will be the best marketers in the world. and create economic value added by improving economic profit.
. our customers. maximize our longterm cash flows. 2. 5. In order to achieve this mission. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. we must create value for all the constraints we serve. 6. We achieve this when we place the right products in the right markets at the right time.
The Coca-Cola bottling system continued to operate as independent. (Johnston) created a larger. successful restructuring in 1992. However the bottling business began in 1899 when two Chattanooga businessmen. In December 1991. Whitehead . and total revenues were $5 billion
. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group. is a young company by the standards of the Coca-Cola system.4 billion.000 in 1986. Inc. Dr. As part of the merger. secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. stronger Company. local businesses until the early 1980s when bottling franchises began to consolidate. Lupton franchises and BCI Holding Corporation's bottling holdings. In 1986. On an annual basis. to form Coca-Cola Enterprises Inc. John Pemberton . The Company offered its stock to the public on November 21. total unit case sales were 880.COCA COLA INTERNATIONAL
Coca-Cola Enterprises. Benjamin F.Unit case sales had climbed to 1. began to produce Coca-Cola syrup for sale in fountain drinks. the John T. at a split-adjusted price of $5. and began a dramatic. The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale. when an Atlanta pharmacist. the senior management team of Johnston assumed responsibility for managing the Company. 1986. The Coca-Cola Company traces it’s beginning to 1886. Thomas and Joseph B. established in 1986. again helping accelerate bottler consolidation.50 a share.
Coca Cola enjoys the largest market share. This company controls about 59% of the world market. (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
All commercial Beverages 2002
Compan y share Compan y per capita Income
Chairman Board of governors
Vice Chairman and chief operating officer
Executive Vice Presidents
Senior Vice Presidents
MARKET SHARE: SHARE
Being the biggest company in the soft drink industry.
GLOBAL MARKET SHARE:
The following table can show the worldwide operating segments.MANAGEMENT:
The hierarchy of Coca Cola Company is as follows.
which has deepened the relationship of the customers and Coca Cola. the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. Thus they are increasing their market day by day. 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. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume. The operation income earned by Coca Cola Company can be illustrated by the following pie chart. In 2002. 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. (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. (Figure)
This strategy has worked a lot and it has helped them to become the World’s leading Soft Drink Company. The data of the global unit sale of the Coca Cola Company can be represented by following chart. The global unit sale of the Coca Cola Company is increasing from the last ten years.This shows that the market of the company is geographically vast and it is controlling it with great success. 10
. There is a worldwide volume increase by 4% with strong international growth of 5%. This is only due to the innovative marketing programmers.
logistics and production. Unit case equals 24 eight-ounce servings. with closer coordination of operations including customer relationships.
MARKET SHARE BY AREA:
Coca Cola is the world-renowned soft drink and the company is currently operating through out the world. 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. we can find out that the customers of Coca Cola are increasing which is shown by the company’s per capita income. the company had worked with their bottlers to turn good intentions into reality by improving the system economics. as estimated by the Company based on available industry sources. sold beverages.8 billion. The country column is derived from 11
. The main reason behind this relationship is to continue realizing shared opportunities for growth.In 2002. The above table shows the geographical earning of the Coca Cola Company and from this data. The world wide total is about 17. The column. The operation review according to the segments is as follows. The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. which shows the non-alcoholic beverages consist of commercially. The data about the market share of this company area wise is given in the following table.
The Company's unit case volume while the industry column includes nonalcoholic ready-todrink 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
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 Great Britain Italy Middle East Spain Asia Africa
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 1 12 6 7 7
8 3 2 2 3 12 4 6 6
6 9 (1) 11 4 7 8 6 8
5 3 1 2 3 5 5 7 3
(14) 7 (6) 8 2 4 4 10 10
1 3 1 3 2 8 4 7 6
14 9 14 17 9 8 17 14 34
5 5 7 6 6 3 12 5 11
39 110 193 193 104 17 264 23 34
. as estimated by the Company based on available industry sources.
With developing economies and populations. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart. India and Bangladesh are those countries where the average consumption is increasing day by day.
. which can increase the growth of the consumption of Coca Cola by the people of Asia. which is about 29%. sales of Coca-Cola increased 6 percent. for example. (Figure)
So the company is emphasizing more in this area and is trying to develop a strategy.2 billion and the average consumer enjoys close to two servings of our products each month. and the company is building an exciting family of beverage brands in addition to expanding the popularity of our core brands. Pakistan. the company has achieved volume growth of 10 percent in 2002. is approximately 3. Through an intense focus on Coca-Cola. Among others. Among the countries of Asia. this region has strong long-term potential. In China. which is the satisfied customer of Coca Cola.In Asian population. led by Coca-Cola. innovation and new beverages. Japan has the highest percentage.
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 20.9 5. • $. manufacturing and intangible assets. The financial report of Coca Cola Company of the year 2001 and 2000 along with the percentage change is as follows.6% 38. • $.110 (963) (1.585 (779) (1.2 17. 2002 basic and diluted net income per share includes the following charges: • $.01 per share after income taxes related to incremental marketing expenses in Central Europe.2% 23.5 5.3 17.1 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 $.352 3.691 2.24 per share after income taxes related to an organizational Realignment. • $.05 per share after income taxes related to the settlement terms of a discrimination lawsuit.147 26.889 3. It is due to the strong finances.16 per share after income taxes related to the impairment of certain bottling.806 16.19 per share after income taxes related to the Company's portion of charges recorded by the investors of the company.685) (133) 2.601 1. (Table) Year Ended December 31.1% 11.601 4.. 14
.8 2001 19.791) (277) 3. (In millions except per share data. • $.969 1.FINANCIAL REPORT:
This company is financially very strong.092 5.882 3.02 per share after taxes. the company is still surviving the ups and down of the business world.882 0.177 0.5% 12. one of the equity investors of this company. which was recognized on the issuance of stock by Coca-Cola Enterprises Inc.
economical and systematic method of acquiring additional shares of our common stock.
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.04 per share after income taxes related to benefits from a tax rate reduction in Germany and from favorable tax planning strategies.These charges are partially offset by a gain of $. and $. 76 percent of the Company's shareowners of record were participants in the Plan. All shareowners of record are eligible to participate. At year-end.
.A.000 per year.05 per share after income taxes related to the merger of Coca-Cola Beverages plc and Hellenic Bottling Company S. The Plan provides a convenient. shareowners invested $36 million in dividends and $31 million in cash in the Plan. Shareowners also may purchase Company stock through voluntary cash investments of up to $125. In 2002.
results in the percentage change in the statistics of the two years.8% ½% 2% ½% $2.000 54.95 (18)% $0.000 2. The expansion of this company.2 billion 87% 13% 72. The statistics is as follows.8 billion 87% 13% 67.39 9% $1. Coca Cola Company is increasing its volume day by day. 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. This is because.18 8% 74%
. (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 Coverage of North American Can/bottle volume 4. 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 52.4 million 25 385 53 463 80% 46 44% 52% 4% 63% 3 6.97 6% 83% 2001 3.COMPANY STATISTICS:
The statistics of this company is impressive.000 2.3% 3% Flat 1 $1.3 million 25 361 50 436 72% 46 45% 51% 4% 59% 3 6.
While launching its product.
Major brands of coca cola
• • • • • Coke Sprite Fanta Diet coke Coke classic
. 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. This company not only deals in the carbonated drinks but also other drinks.
There are different brands of the Coca Cola Company. the marketing team considers the culture of the country. • • Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable securities. which are currently in use through out the world. and other non-operating items.EBITDA is the Earnings before interest. depreciation. and amortization. taxes.
This partnership combines Nestlé's knowledge in life science.A. Marocha Green Tea is the fastest-growing product in the fastest-growing category: green tea. Also in Japan—where The CocaCola Company is the leader in the total tea category. the second-largest category in the non-alcoholic ready-to-drink segment—it launched Marocha Green Tea. Three of the water brands. the company has also made good progress in coffees and teas. 18
. This year. Coca-Cola Company also successfully energized a major piece of its beverage strategy—water. Ciel and Bonaqua each achieved sales of over 100 million unit cases for the year. This strategy has paid dividends. Mori No Mizudayori in Japan. Bonaqua in Russia and Kinley in India.
The commitment of the company is to devote resources to water only in markets where it expects profitable growth. research and development with the expertise of Coca Cola Company in brand building and distribution. In 2001and 2002.The over all volume of this company is as follows. it’s bottled water volume exceeded 570 million unit cases. Beverage Partners Worldwide. In Eurasia. 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. began operations in 2001. Dasani. making it the second biggest contributor to the growth of the company after carbonated soft drinks. With sales of 46 million unit cases for the year. Backed by a strong network of bottling partners through out the United States. the entire Turkuaz brand team worked together to launch Turkey's first purified water brand. including Ciel in Mexico. the company grew Georgia coffee in Japan by 3 percent through awardwinning marketing in a category that was flat for the year.. the renewed and strengthened marketing partnership with Nestlé S. At the same time. By the end of 2001. Dasani became the nation's fastest-growing water brand. The company has successfully applied it’s approach to brands in several key markets.
Know the most recognized word on the planet after “OK”!
Hi-C. investing in new products. Kapo in Latin America and Bibo in Africa. it has achieved volume growth of 10 percent in 2001. In key markets. nearly double the growth rate of the worldwide sports-drink category. packaging. sales of CocaCola increased by 6 percent. This year. easy to upgrade technology. a channel through which many consumers enjoy Coca-Cola.
. contributing to the sale of nearly 1. Soft drink in North America: diet Coke. With brands such as Minute Maid. Revitalized in the United States. In the United States. the company developed Fountain. Mexican families have lunch together at home. This larger bottle will complete its nationwide rollout in 2002. positioning and marketing. Through an intense focus on Coca-Cola. The company launched 27 products in 2001. The company has also responded to consumers' changing fashion styles with new bottles. the company re-launched its global sports-drink business. In the United States. grew by 13 percent in 2002. Simply Orange and Disney juices and juice drinks in the United States. Qoo in Asia. the company introduced Powerade in nearly every major Western European market. the company "bottled" the concept.5 billion unit cases of CocaCola in Mexico this year. while a twoliter bottle was the largest available package. The company increased its two largest bottle sizes during the 2001 holidays. Increasingly. The result—diet Coke with lemon—contributed to volume growth of 4 percent for the number-one diet. In China. a total beverage dispensing system that is more flexible and more reliable. as well as in Mexico and Latin America. Germany and Spain.Among the soft drinks Fanta and Sprite become successful along with the major brand Coca Cola and Diet Coke. So the company introduced a convenient 2-½ liter bottle to select regions. innovation and new beverages. The average Mexican household drinks two-and-a-half liters or more of soft drinks during that break. led by Powerade and Aquarius. Coca-Cola is an integral part of holiday celebrations and the family get-togethers that accompany such events. The results speak for themselves: it’s global sports drinks. The packaging innovations do not just involve resizing. brand and graphic customization and improved reliability. In China. recognizing that consumers often enjoy their diet Coke with a slice of lemon. and festival packaging helped drive a 6 percent volume increase for Coca-Cola. The commitment of the company to packaging innovation also resulted in new initiatives for our fountain business. including Great Britain. the company has created new packaging sizes to satisfy consumer demands. Two years of research resulted in a dispensing system that provides exceptional beverage quality.
Selectively broaden the family of beverage brands to drive profitable growth. Serve customers with creativity and consistency to generate growth across all channels. The company has generated free cash flow of $3. The marketing strategy for the year 2002 is as follows. Direct investments to highest potential areas across markets. the company had a great success. • • • • • • Accelerate carbonated soft-drink growth. Return on capital increased from 16 percent in 2000 to 27 percent in 2001. as the strategy worked which resulted in making Coca Cola Company the world’s leading company. • • • • Earnings per share grew by 82 percent.
. 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.STRATEGIC PLANNING
In the year 2002. Drive efficiency and cost-effectiveness everywhere. 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.8 billion in 2000. a clear indication of its underlying financial strength. led by Coca-Cola. Grow system profitability and capability together with our bottling partners.1 billion. The strategy for the future of the company is very straightforward. up from $2. In 2001.
they selected Lahore to make their regional office.
The advertisement of the Pepsi changes to. including Gatorade. It was first used on the August 28. Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. Pepsin and Kola Nuts. “You got the right one baby. Each shift is of eight hours. with revenues of about $27 billion and over 143. they only entered beverage industry. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company. This regional office is monitoring all the operations carried out in South West Asia. the beverage businesses of PepsiCola North America. As in Pakistan. but the corporation is relatively young. “Pepsi Cola”.PEPSI INTERNATIONAL
PepsiCo is a world leader in convenient foods and beverages. PepsiCola beverages are available in more than 190 countries and territories. PepsiCo brands are available in nearly 200 countries and territories. The new name. In 1992 PepsiCola formed a partnership with Thomas J.000 cases per day. aids digestion”.would entertain the listener with the latest musical selections rendered by violin or piano or both. This plant was established at Lahore in 1974. is derived from the two of the principle ingredients. Uh-Huh!”. and Quaker Foods North America. invigorating. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. At that time. manufacturer and marketer of ready-to-eat cereals and other food products. Outside the United States. They have permanent work force of 750 people and they employee approximately 1000 people more on temporary basis during summer season. Gatorade/Tropicana North America and PepsiCo Beverages International. the popularity of Pepsi increase. In Asia. The total capacity of the plant is 30. They have eleven bottlers covering whole Pakistan. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Many of PepsiCo's brand names are over 100-years-old. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International. They have four filling lines in the plant operating on the three shift bases. The plant operating here is Riaz Bottlers (Pvt) LTD. Bradham’s advertising praises his drink as “Exhilarating.000 employees. This was done in 1970.
. Lipton Co. in 2001.With the extensive usage of the stars in the adds.
• • • • • • • • Pepsi Teem Mirinda Pepsi Max Pepsi Lemon Pepsi Blue Mountain Dew 7up
The Coca-Cola System in Pakistan operates through eight bottlers. Multan and Lahore. Gujranwala. Rahimyar Khan. independently owned. Coca-Cola.)
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
. Sialkot. The Coca-Cola System in Pakistan employs 1. The remaining two plants. Hyderabad. Faisalabad.000 customers/retail outlets. During the last two years. The Coca-Cola System in Pakistan serves 70.COCA COLA PAKISTAN
The Coca-Cola Company began operating in Pakistan in 1953. Fanta and Sprite are the brands in Pakistan. The Coca-Cola System in Pakistan has invested over $130 million (U. four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). are in Rawalpindi and Peshawar.800 people.S. The CCBPL plants are in Karachi.
That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business. So. They spend heavily on rents. Because which every passing year budgets are becoming very strict and tight in order to purchase things. 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. value. utilities. So. 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. and education and basic necessities and after that when they get extra money they think about this soft drink . Here we are discussing three major factors which effects coke.
Major segments are basically those people who take this drink daily and those areas where the demands is higher then the other areas.So the decreasing per capita income effects badly in selling and production of this soft drink. solid and timeless. joy and fun to our stakeholders. This is major factor that affects the sale of this soft drink. then we successfully nurture and protect our brands. • • • Per capita income Competitors Weather
Per Capita Income
First we will discuss about “ Per capita income”. When we bring refreshment. 25
.PROMISE OF COKE
The basic proposition of our business is simple. particularly Coca-Cola. So the disposable incomes of the people are coming down. which affects the sale of coke.
FACTORS EFFECTING SALES
There are so many factors.
Coke’s commercials basically based on young generations. their basic segments are those people who take this drink regularly.
if not then they immediately change or repair it. They believe on “WHAT COLD THEY SOLD” Consumer’s availability in brands is basically works like: Push availability Pull consumer’s demand. In other words.
MAJOR CUSTOMERS NEED
First of all the majority don’t care that what they are going to have. tea are the competitors. They don’t actually differentiate between these two brands in order to their tastes. They provide this infrastructure free of cost just to provide child coke to their customer.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. Consumers basically drink what they get. 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. This is underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%. they don’t care before drinking that whether it is “Pepsi” or “coke”.
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. For this reason Coca-Cola have provided their coolers and freezers in the market.
Weather is the third major factor in effecting the Coke’s selling. They have maximum number of coolers and freezers in the market. coffee.
even they take water and tea as their competitors. Like they compete Coke with Pepsi and Sprite with 7up and team . There are three major ways of making money • • • Over night profit Windfall profit Ethical and un-ethical ways
. and all juices. Fun time Though these strategies there could be better understanding and better connection with the public.
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.So the major competitor of Coke is Pepsi. Because when the price go higher people go for the substitute of “coke” i.e. Then they compete brands with each other. Enhance competition moments 2. In short it all depends on customer’s perception.
THREATS FROM COMPETITORS
Threats are well planned. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink.MAJOR COMPETITORS
Consumers firstly decide that they are going to have a soft drink. When they motivate to any other brand or on Coke it’s in instinct basically that based on messages derive certain feelings. But Coca Cola thinks in a different way. Price is the major threat. they believe that RC Cola. When people watch cricket 3.
STRATEGIES OF QUALITY
After Micro and macro analysis Brand “coke” is primarily role 1. These are the “key consumption”. And when price goes down they think that there is must be some thing wrong in it. Pepsi. Through commercialization 4. new coming AMRAT Cola.
This could be got my increasing sales volume
Can be windfall profit. 28
. Two major brands “coke” and “Pepsi” also have brand names.
Ethical And Unethical Ways
Profit can also get through ethical and unethical ways. 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. So. • • • Consumer has choice Attractive brand name Brand differentiating
Consumer Has Got Choice
Now the consumer has got choice.
EXPANDING TARGET MARKET
In last 2 years Coke has come back in aggressive manner. people can distinguish between brands.Over Night Profits
They could be over night profit that is for the number 1 brand for the year.
Now different companies have got different brand names. because Coke is the name. When the consumption the consumption is on boom. which is the most popular after the word “ok”. So. And they can also get profit through different approaches. They are the extras profit. They believe on this quote “ Every thing is fare in love and war”. So people can better differentiate brands with each other. Some profits stays for some time like “over night profits” and some just come and go like “wind fall profits”. there is different kind of profits. Because now they know the name of another big brand.
sales tax 20% .
THREATS AND OPPORTUNITIES FOR PRICE
If Coke is considered a luxury product. Then there is the tax rate system 15% . After paying all these expenses Coke’s margin squeezed and consumers have to pay for increasing tariffs.excise duty 27% . These are the opportunities through which we can increase the price and can get profits.goes to government 03% . We have to spend on distributions. They use the temperament of “ME”. 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. If Coke increase the price lets say 1 rupee.Coca Cola’s Brand
Coca cola is “US” brand. So these are the threats in increasing prices. Coca Cola strongly believes that Pakistani temperament is “US” not “ME”
Pepsi’s brand is basically is basically “ME” branded. They have the best substitute of Coke that is Pepsi. Then people definitely won’t go for coke.
There are much more threats in increasing prices. In contrast to Coke they believe on individual struggle. Because same problem of substitute. being people together and friends are being together. Because they believe in the togetherness.
how they work and play.
How to take part in energetic festivals?
Coke is already taking part in the festival like “Basant” since last 3 years. we're there for you. wellness. offering different interesting things to attract people towards this product. What people want in a beverage is a reflection of who they are. but also to contribute to communities around the world through our commitments to education. and how they relax and recharge.
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. Whether you're a student in the United States enjoying a refreshing Coca-Cola. health. And this year in this year 2002 people were anxiously waiting that what interesting thing coke is going to offer. this is one of the product of coke. a child in Peru asking for a juice drink. Some major ways are as follows.STRATEGIES OF GETTING GOALS I. a woman in Italy taking a tea break. “HIGH PROFITS”
To increase the price is the least thing. There are so many ways through which Coke can increase the profits. 30
. which Coke can adopt. or a couple in Korea buying bottled water after a run together.E.
How to increase the interest level of consumers?
Coke is increasing the interest level of consumers by offering different flavors. and diversity. Through advertisements. where they live. • • • 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 offering different flavors Coke can increase the Level of consumers and through this profits can be gained. For example Coke is increasing the number of flavors in “Fanta”. We are determined not only to make great drinks. Coke offers different attractive things in their festival and through this Coke gained high profit and consumption of coke increased on these occasions.
Coke strives to be a good neighbor.
. and we never forget it. 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.
The total range of Coca Cola company in Pakistan includes: • • • • Coke. Diet Coke.5 pets 12 bottles in a pack for disposable bottle 24 cans in one pack.
.5 litter plastic bottle) (tin pack 330 ml)
Coca cola products are available in different packing • • • • 24 regular bottle shell 6 bottle pack for 1.
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. Sprite. Fanta.
So in winter they reduce their prices to maintain their sales and profit. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. by this these retailers and middle man push their product in the market. “Seen as sold” They do agreements with a shop keepers and stores to exclusive sale in that stores. And that’s why coca cola seen more 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. But normally they reduce the prices of their pet bottles or 1 litter glass bottle. These stores are called as KEY accounts in their local language.PRICE STRATEGY
Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles. Summer is supposed to be a good season for beverage industry in Pakistan.
Different Price In Different Seasons
Some times Coca Cola Company change their product prices according to the season.
In this type of selling company have more profit margin.PROMOTION STRATEGIES
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. cash prizes etc.
Coca Cola Company makes two types of selling Direct selling Indirect selling
In direct selling they supply their products in shops by using their own transports.
UTC mean under the crown scheme. Like once they offer bicycles. coca cola often do this type of scheme and they offer very handy prizes in it. tv sets. Normally they keep their freezers near the entrance of the stores.
. They have almost 450 vehicles to supply their bottles. caps.
Eye Catching Position
Salesman of the coca cola company positions their freezers and their products in eyecatching positions.
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. This scheme is very much popular among children.
. 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.
Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas.
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
Coca cola company use different mediums • • • • Print media Pos material Tv commercial Billboards and holdings
They often use print media for advertisement.Indirect Selling
They have their whole sellers and agencies to cover all area. They have a separate department for print media.
And it will take the 10% of their profits.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 should also know that how much to do with the promotion activities for brand. And positive feeling felling with the brand. They have so many sites in different locations for their billboards. 3. 2. 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. They should know how much to for the brand activities. which they used to have Coke wants to advertise their products heavily in the coming year.
Billboards And Holdings
Coca cola is very much conscious about their billboards and holdings. So Coca Cola Company does regular TV commercials on different channels. Loyal consumers are important for company’s success.
EXPECTATIONS FOR THE COMING YEAR
Every thing starts from the attitude of consumer’s behavior. 4. Workers should be the brand centric not the promotion centric.
HOW COKE DETERMINE THE YEARLY BUDGET
Coke determines its yearly budget by the • • • Sales volume Profitability Target volume
. And the basic key to attract the consumers is to throw the “money away”. Coming year is the challenging year for the industry of Coke. And when we take it as a global level it is $ I billion.
Otherwise they concentrate on their old strategies.
The second thing through which they determines budget is the “profit” .if they r getting profits with the high margin. which they want to achieve in a specific time period. Every organization runs on the basis of getting high profits.Sales Volume
Coke determines its yearly budget through the sales volume.
. If industry achieves those goals in that period then for the coming year it increases the volume of the target. 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.
To run the business every industry has some targets. To get profit is the first priority of the Coke. then they definitely want to increase their profits in the next coming year. No organization wants to face Loss in their business. 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.
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-Cola signed a sponsorship agreement with eight of Pakistan’s National cricket players. the Coca-Cola food mela treated the people of Karachi. It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the beverage industry. fun & prizes to be won.the game of cricket has been owned by various brands in the industry for the promotion of their products over a period of time. all resiliently upholding the Coca-Cola identity. watched & played game in Pakistan . Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured throughout the country. 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.SALES PROMOTION ACTIVITIES
Cricket the most sought after. The promotion saw the avid families & friends enjoying the delicacies at the restaurants. to a festive food festival comprising of 50 restaurants. 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. The competition has become tougher & tougher as the time has progressed. lyrics & songs have made him an instant hit among the masses in Pakistan. This campaign helped Coca-Cola to establish its association with the game & the player. 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.
. spread out all over the bustling city’s map. soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar.
Abrar-ul-haq’s distinct style. Coca-Cola’s brand positioning of providing deep down refreshment for the body.
Coca-Cola Food Mela
With a splash of food.
took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits . pedestrians & passerby’s during Lahore’s hottest summer season. great prizes & fire works. Targeting house wives & family home. had children’s parade & held the Coca-Cola kite flying championship during the basant festival.A treat for the family. live music.
Coca-Cola Party in a Park
In June 2000. Coca-Cola created an experiential musical evening in Lahore.Go out & get some
Coca-Cola Pet Promotion
In 1996. Coca-Cola’s 1.5 liter Pet bottle. a resounding success with tempting discounts.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 also hosted a concert of pop idol Abrar-ul-haq. served well to promote the Coca-Cola industry. Liberty marketing Gulberg was a hive of activity during the weeklong shopping extravaganza.
Coca-Cola Shopping Festival
Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping festival. This program was recorded and one-hour program shown in the national TV for free. Now “where there is basant there is Coca-Cola”. 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 “GO-RED” stall. Coca-Cola launched 1. giving the consumer a unique experience which they had never tasted before.Coca-Cola added to the carnival atmosphere by making the festival free to enter & decorating all main roads in Lahore with illuminated kites.
Quenching the thirst of motorist.10 million households saw Coca-Cola ‘Party in a Park’ while 10 thousand people attended the event. Coca-Cola’s PET was offered through a “price-off” promotion that said………. Coca-Cola give the more refreshing flavor to the colors of basant by adding more life to the festival. where Junoon performed.5 liter Pet contour bottle for the first time in Pakistan. The in augural event proved so popular that it is now set to become an annual fixture. it has been impossible to envisage basant without Coca-Cola.
Coca-Cola set the stage of the grand UTC promotion.
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. 40
. Sprite. it is a utc scheme in which people are getting television sets of different sizes. & Fanta. Branded Coca-Cola with ‘caught red handed’ team in them went to Lahore & Karachi for three days. The emphasis on enjoying Coca-Cola at “Iftar” with friends & family.
Coca Cola TV Mazza
The coca cola new campaign is coca cola tv mazza. magical “dream vacation” to numerous “wonder destination” throughout the world on every purchase of a 250 ml RGB bottle of Coca-Cola.The promotion gave consumers a chance to win free drink.Coca-Cola Ramzan Campaign
A very special occasion for the people of Pakistan Ramzan saw another very special CocaCola’s promotion. HOLLYWOOD. the new under-the-crown promotion “Nikla Kiya?”(What have u won) was launched in collaboration with Chimera Nokia.Sprite. Coca-Cola went ahead with the idea of giving consumer chances to win fabulous.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 . The promotion saw avid consumer collecting Coca-Cola ‘Crown caps’ & sparked a keen response from the public .5 liter PET bottle & the 1 liter bottle with a super price-off promotion. SINGAPORE & CAIRO along with airfare & four nights free stay in these dream lands. Bunting etc) displayed at all MC Donald’s restaurants along with a special offer for coke & fries. rendering an outstanding testimonial campaign in the second phase. This activity helped billed confidence and brand loyalty among core consumers. & Fanta. These days this scheme is very popular among the people. highlighting the winners over whelmed in the magical delight of their favorite beverage Coca-Cola. NEWYORK.
Coca-Cola & Nokia
In August 2001. 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. The promotion kicked off with pos material (Danglers.The other highlight of promotion was the “Caught Red Handed” campaign.
Coca-Cola Wonder of the World Promotion
In July 2000. Caught red handed become a huge success among the masses as it was one to one interaction between the Coca-Cola brand & the consumers. a trip to PARIS. both shares globally. marketing the popular 1.
the company has successfully launched its first new product. diet coke.
. the consumers in Pakistan witnessed a soft launch in essence. for the first time in almost 3 years. but the major hit was thematic fashion shows in restaurants. The was linked with three fashion shows as Diet Coke is related to fashion & fitness.
After the acquisition of the individual local franchise bottling facilities in 1996. The Coca-Cola Company declared the new “NonReturnable” bottles of Sprite & Fanta as the “New. Fanta & Sprite are sure to enjoy considerable success in Pakistan. On the Go Packs” flaunting the innovative packaging convenience. which are the key accounts of the company as this has been never done before in Pakistan.Fanta & Sprite Launched
In November 2000moving on to the Sprite & Fanta brands.
After thorough research. 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. • Now young generation has a trend to drink a coke 2 regular bottles at same time.
. • They should also focus the old people. • Marketing team should try to increase the availability of Coke in rural areas. • Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. which are following. • According to the survey.
After completing our project we have concluded some recommendation for the coca cola company. 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. so providing more satisfaction to them company should introduce ½ liter disposable bottle.
So it affects slightly the revolution of Coke. And there are some exceptional things like: “environmental protection laws” they some what effect the industry of Coke. they don’t leave any good or bad impact in the Industry of coke. they are:
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.
. which we will discuss in our report. So. In the “political variables” most of the things are related to Governmental activities. 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. military take over. From last two years Government is going to be really very much conscious about the environment. So “political conditions” are over all leave neutral effects on coke’s industry. So it impact good for the Coke’s reputation.PEST ANALYSIS OF COCA-COLA
There are four variables. And the second thing in political variables which effects Coke is “elections & military take over” Because in the days of elections and marshal law’s condition the countries production in any field is declined. 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 coke’s production and selling behavior.
Then it would impact highly negative. Coke is not the out of question.800 people. It also impacts highly negative in the Coke’s production. Economic factors are those actors who effect the production of any industry. 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 Coke’s resolution.
. And as a country concerned like “Pakistan” where the unemployment rate is very much high. the Coca-Cola system in Pakistan has involved over $130 million (U. When we draw the conclusion of “economic variables”.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. The Coca-Cola system in Pakistan employs 1.S). 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. And inflation is also not a good position for any country’s production point of view. During the last 2 years. If the economic conditions of the country is not that strong and Coke increases its Price in this situation. So.
Social variables Effects of advertisement of Coke on Public popularity How will do Coke’s contribution affect charity organizations of Pakistan Has rising consciousness of natural resources in people effected your “save environment activities. Here’s a sample of what we’re doing in different communities around the world regarding the conservation of water and natural resources. From youth in Brazil to first generation scholars. We’re committed to preserving our environment. supplies. This same spirit of innovation comes alive in our environment programs. climate changes. and environment Management initiatives. particularly those relevant to our business. While we have always sought to be sensitive to the environment. from use of more than $ 2 billion (U. Knowledgehungry students books. we must use our significant resources and capabilities to provide active leadership on environmental issues.
A large part or our relationship with the world around us is our relationship with the physical world.S) a year in recycling content and suppliers. The Coca-Cola Company is committed to helping people make their dreams come true. We want the world we share to be clean and beautiful. places to study and scholarships. educational programs in local communities are our priority. waste environment education. 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. All over the world. down to very local neighborhood collection and beautification efforts. 45
. We are always innovating to bring you different delicious beverages. we are involved in innovative programs that give hard-working.
The Coca-Cola system in Pakistan operates through eight bottlers. when eastern Pakistan suffered its worst droughts. because computers are the basic need of any person now a days. As the coke helping in promoting “paperless environment” .
In 2000. Through computers coke can increase the efficiency of its business and can have up –to-date data about their productions. The Coca-Cola system initiated a famine-relief program to help victims and was the first private-sector company to assist. Four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). selected through a draw. As coke use more advance technology in its production process. This approach of government decreases the profit margin of Coke. Ever year when budget in announced government taxes rates always shoot up.it impacts good. 46
Technological variables Have business innovations effectively promoted your business Has the government’s 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 −−
Conclusion Of Technological Analysis
Of course business innovation leaves highly good impacts in the business of Coke. to be sent on the Holy Pilgrimage to Mecca at the Company’s expense. And though it’s a big industry so it is promoting the trend of paperless environment. As far as the “governmental hindrances” are concerned the impacts highly bad on coke’s production. The Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one employee from each plant. And it is giving the way of other industries to come to new technologies and into a new world of business. It will resulted in increment of their production through out the country.
OVER ALL RESULTS OF PEST ANANYSIS
After our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited). Coca-Cola has about 2000 employees at Pakistani plants. CocaCola is a 27% shareholder in the Pakistan market and they don’t want to stop here!! Its target market is to achieve a much higher %age. Lahore plant of Coca-Cola is one of the beautiful plant in Asia. Coca-Cola is no doubt one of the most popular beverage company and its product COKE is one of most consumed cola drink. Situated on Raiwand Road. Its entertaining and colorful advertisements have always and will always rock the media. Pakistani rock stars. Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough time. They spend billion of dollars on their advertisement. sportmen and actors have played a very vital role in making CocaCola such a popular beverage. promotions and recreational campaign.
. we came up with the very interesting report of facts and figures. Coca-Cola has always had a close consumer and supplier relationship with its customers.
“ Jo chaho ho jaye cocacola enjoy ”
.g. Event at the present they are organizing a Basant festival for which they busily organizing stuff. E. concerts and many other social occasions. Coca-Cola is one of the leaders in sponsoring the most important. Cricket matches.CONCLUSION:
Coca-Cola no doubt come the heart beat of Pakistanis. thrilling events.