Strategic Marketing

Presented To:
Sir. Ali Raza

Presented By:

1. Rohail Fakhar
2. Waqar Haider
3. Uzair Ahmed
4. Hamza Iqbal

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Introduction
CCI Pakistan produces, distributes and sells sparkling and still beverages of
The Coca-Cola Company in
Pakistan. Having first started in 1996, Coca-Cola bottling operations in
Pakistan came under the roof of
Coca-Cola İçecek in 2008. CCI Pakistan serves a consumer base of 208
million with 6 plants and more
than 3000 employees across Pakistan. Its product portfolio comprises
Cappy, Coca-Cola, Coca-Cola zero,
Diet Coke, Fanta, Kinley, Monster, Rani, Sprite, Sprite 3G and Sprite Zero.

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Introduction
CCI is the sixth-largest bottler in the Coca-Cola system in terms of sales volume. CCI produces,
distributes and sells sparkling and still beverages of The Coca-Cola Company (TCCC) across Turkey,
Pakistan, Kazakhstan, Azerbaijan, Kyrgyzstan, Turkmenistan, Jordan, Iraq, Syria and Tajikistan.
CCI employs more than 10,000 people and has a total of 25 plants, offering a wide range of beverages to
a consumer base of 400 million. In addition to sparkling beverages, the product portfolio includes juices,
waters, sports and energy drinks, teas and iced teas.
CCI’s shares are traded on Borsa Istanbul (BIST) under “CCOLA.IS”, American depositary receipts
(ADR)
are traded over the counter in the United States under “COLAY”, Eurobond is traded on Irish Stock
Exchange under “CCOLAT” tickers.

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Our Vision, Mission and Values

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

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Mission & Values
Mission: Coca-Cola’s Roadmap starts with their mission, which is enduring. It declares their purpose
as a company and serves as the standard against which they weigh their actions and decisions.
• To refresh the world
• To inspire moments of optimism and happiness.
• To create value and make a difference.
Core Values: Their values serve as a compass for their actions and describe how they behave in the
world.
Leadership: The courage to shape a better future
• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, it's up to me
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands
• Quality: What we do, we do well

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Major brands & Core Competency
 Coke
 Sprite
 Fanta
 Diet coke
 Coke Zero
What is the core competence of the Company
 The company’s key asset as well as core competency is brand building.
 The Coca-Cola brand is a globally recognized advertising icon.
 Brand building is Coca-Cola's core competency.
 The total core competencies of Coca Cola can be summarized as strong brand value, franchise
 network, cost controls, distribution network and administrative control.
 Reputation for Quality
 Coca Cola’s core operation is the concentrate and syrup production from its secret formula.
 The company supplies this concentrate to the bottlers where the production of cola happens

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Competitors
What is the competitive landscape
PepsiCo (Major Rivalry)
Nestle
Gourmet
Pakola
RC Cola
Next Cola
Our Strategy

 Operational efficiency investments that we make across our geography ensure that
CCI continues to improve its business practices.
We successfully gear up our business and post accelerated growth through increased
production and a successful business model.
Our long-term priority remains to deliver strong top-line growth and steady
improvement of our profit margins.
We are always committed to delivering sustainable and profitable growth for our
shareholders. We focus on operational competency and capability, and put great
emphasis on understanding our customers.
 To enhance our commercial capabilities, we closely monitor consumer demand,
preferences, and trends.

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Our Strategy
 We expand our product portfolio by launching new brands, flavors and packaging
alternatives.
Portfolio expansion in sparkling and still categories, together with increased
availability and occasion based marketing activities allow us to grow both in sparkling
and still categories.
Our determination to improve the quality of our practices result in both market share
gain and volume growth in our markets.
Our dedication to increased efficiency and continuous improvement in every stage of
our business ensures successful financial results, along with an outstanding
sustainability performance; allowing us to protect the environment and create value for
all our stakeholders.

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BCG Matrix:
Star Category: Minute Maid , Fanta
The Minute Maid juices and the Fanta cola are the stars of Coca Cola Company. As Minute
Maid juices
and Fanta cola have a big share in market but market growth rate is also high for such products.
Cash Cow Category: Coca cola ,Sprite
Coca cola and sprite are the cash cows of Coca Cola Company. These products are widely used
all over
Pakistan and have a big market share and relative low growth rate industry.
Question Mark Category: Diet Coke , Sprite Zero
The above Coca Cola Company products fall in question mark category because these products
have less
market share but competing in a high growth market.

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4p’s Of CCl
• Price
• Place
• Promotion
• Product

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Price & Place
Different Pricing Strategies
1. Competition based pricing approach
2. Promotional Pricing Policy
3. Marketing Penetration Pricing Policy
4. Different Price In Different Seasons
Place
Distribution Channels
5. Direct Selling
6. Indirect Selling

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Promotion
Coca Cola Company uses the following promotional activities
Advertisement
Getting shelves
Eye Catching Position
Facilitating the Product by Infrastructure
Print Media
TV Commercials
Billboards

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Product:
Coca-Cola bottles are sold throughout each part of the world. The main product is the
concentrate, produced with a secret recipe.
Finished product produced from concentrate in combination with filtered water and
sweeteners.
The Coca-Cola Company also sells concentrate for soda fountains to main cafés and
food service providers.
 Nowadays their drinks have different type of tastes and variety of bottles used.

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Strategic Failure: The Coca Cola Company
Ignore the Psychological Aspects Of Loyal Customers Coke was a “national
institution” of America Coke was a symbol of American culture rather than just a
refreshing drink Consumers were hurt because of a historical association of coke with
American culture and history was being taken away by the company.

Failed to consider consumer-buying patterns. According to a survey done by Pepsi

soon after the introduction of new Coke, the Coke loyalists overwhelmingly favored an
unchanged original Coke formula. Failed market research Coca-Cola has made serious
market research failure. From 200,000 consumers who took the test, only 30,000 or
40,000 actually tasted the new formula & they were not informed what they were
tasting a new formula of coke Therefore most consumers had no idea of their
preferences as loyal coke customer are loyal to the taste of old and original coke.

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Strategic Failure: The Coca Cola Company

 They were not clearly advised that their responses might bring to the termination taste
of the original and old Coke formula. Taste the new coke was slightly difference from
the original one. The difference in taste was a major reason for the failure of ‘New
Coke’.
Tests done by their research and development department proved that the taste of the
Coke was the reason it was losing its market share. During the blind taste test, people
just took a sip of the cola and preferred a sweeter taste. But in reality they buy a can of
330 ml and they preferred the less sweet taste of old Coke.

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Strategy Failure
In Energy Drink
Further Coca Cola Beverages has started selling Energy Drink Mutant by taking selling
rights in Pakistan. Last year. After 3 months company has realized that they are going
wrong due to very less sale. Because. Mutant has very high price and also Mutant has
imported from other private companies as well which they are selling on low price as
compared to coke. So after 4 months company has decided to stop mutant sales.
Reason
Because coca cola is purely a carbonated soft drink company and its product are low
priced and have high sales volume, but while they started Sale of Mutant after getting
franchise rights. They want to get same sales and growth as their other brands. But due
to high cost and other marketing and selling rights issues in local company unable to get
there required sales. Also, market response is very poor.
IMPACT OF NEW COKE
Coca Cola Sales Dropped
Coca Cola market share
1980: 24.3% • 1984: 21.8%
April, 1985 introduction of New Coke PepsiCo recognized Coca Cola’s mistake and
responded with by the “They changed my Coke” advertisement
May, 1985 Pepsi became No.1
Summary of 1985 soft drink market share:
New Coke 15%
Coke Classic 5.9%
Pepsi 18.6%.

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IMPACT OF NEW COKE
Loyal Consumer Backlash. Replacement of original coke was too upsetting for
consumers. Backlash: Angry letters and phone calls (60,000 calls/day)
Intense media coverage ,Negative consumer response, Product boycott, Protest groups,
Such as the Society for the Preservation of the real thing and old Cola drinkers of
America established
Reaction of Impact by Coke
July 1985, “Old” Coke was sold alongside New Coke (after 79 days) and re-named as
“Classic” Coke.
1986 New Coke collapsed to 2.3%, Coke Classic surged to 18.9%, 1987 Classic Coke
became No. 1 soft drink.
Consumers became even more loyal to the brand after it was temporarily taken away
from them. 1990, New Coke re-labelled to “Coke II” and taken off the shelves 2009,
“Classic” Coke became Coca Cola

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Lesson Learnt
1. Market research has to be conducted or interpreted correctly
2. Marketing is about much more than the product itself
3. Go back if there is a need
4. Implementation should not be in a haste
What we learnt
1. Have courage to accept your mistake and correct it
2. Customers are loyal for a reason, we need to embrace that reason
3. Research is one of the most critical steps before any decisions are made
4. Branding is actually not an easy task
5. Sometimes it is only best to stay true with who you are

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Conclusion
The Coke reformulation attempt was a dramatic example of how consumer awareness
of the reactions of other consumers can play a critical role in the success and failure of
a new or altered product.
It highlights the necessity for some explicit investigation of social interaction effects
during concept testing research.
 The real lesson of the failed new Coke introduction is that consideration of the effects
of social influence must become part of the new product development process

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