MARKETING

PLAN
IN
COCA-COLA
In partial fulfillment of the requirements in Marketing Management
(MKT306) with the degree of Bachelor of Science in Business
Administration Major in Marketing Management.

SUBMITTED BY:
JOLO, JESSA
HUQUIRE, ROSS-JELL
QUIACHON, JUSTINE

SUBMITTED TO:
MR. JESSIE R. TAMAYO

COCA-COLA
BOTTLERS
PHILIPPINES
INC.

EXECUTIVE SUMMARY

The following marketing plan forms the basis for the products of the Coca-Cola
Company. The analysis allows us to outline the best strategies to follow for the
achievements of the companys strategic goal.

The Coca-Cola Company (TCCC) is engaged in the manufacturing, Distribution and

marketing of non-alcoholic beverage concentrates and syrups. The company owns the
world's most valuable brand: It offers also a portfolio of more than 3,300 products in over
200 countries worldwide.

They primarily produce sparkling beverages, variety of still, and also manufacture
finished beverages. TCCC owns or licenses nearly 500 brands, including diet and light
beverages, waters, enhanced waters, juice and juice drinks, teas, coffees, energy and sport
drinks. Furthermore, the company has ownership interests in a number of bottling and
canning operations, most of which are independently owned and managed.

Most of TCCC's products are manufactured and sold by bottling partners, who convert
them into finished packaged products for sale to distributors and other customers.
All these products were packaged in cans, glass and plastic bottles, and sold to
wholesalers and retailers.

CHAPTER I
INTRODUCTION

1.1 THE HISTORY OF COCA-COLA BOTTLERS PHILIPPINES, INC.

Year 1912 marks the beginning of company's products distribution in the Philippines
when American businessman, M.A. Clarke decided to bring out business offshore.
The Coca-Cola made history in the Philippines when the first documented soda fountain
was established in Manila. Later he opened a bottling plant --- the first in the Philippines
and the first ever in ASIA. The famous contour bottle -- a packaging innovation
introduced in 1916, started to become familiar site and slowly become a part at the
dinner's table of Filipinos.

As the Philippines leaped into the 1920's, the United States of America sank into the
Great Depression. But Coca-Cola, with the marketing genius of then Coca-Cola president
Robert Woodruff, Helped reinvent that period's marketing, advertising and packaging
approaches. And in 1927, San Miguel Corporation secured the first non-US national
Coca-Cola bottling and distribution franchise.

The company owned 70 percent of the joint venture, which grew to become Coke's sixth
largest operation by then. Coca-Cola Company in the Philippines has not been stagnantly
resides long to San Miguel Corporation's full ownership control. In April 1997, CocaCola Bottlers Philippines, Inc. was merged into the Australian-based Coca-Cola Amatil
Ltd After San Miguel exchanged its 70 percent interest in a Philippine-only operation for
a 25 percent stake in Coca-Cola Amatil Ltd., which had operations in 17 countries.
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In 2001, San Miguel decided to buy back Coca-Cola business in a transaction involving
Php 60 billion that Soriano III sold to Amatil. San Miguel ended up owning 65 percent of
CCBPI. However in 2006, San Miguel has sold its 65 % stake of its Coca-Cola Philippine
venture including its subsidiaries cosmos Bottling Corporation and Philippine Beverage
Partners to the Coca-Cola Company (TCCC) for $590 million. TCCC however ended up
only a five-year business control over CCBPI after Coca-Cola FEMSA acquired 51
percent majority ownership share.

Today, Coca-Cola Bottlers Philippines, Inc is the premiere soft beverage company in the
country, one of the top ten bottlers of Coca-Cola in the world, and one of the top 20
corporations in the Philippines in terms of revenue. With subsidiaries Cosmos Bottling
Corporation and the Philippine Beverage Partners, Inc., Coca-Cola Bottlers Philippines,
Inc., refreshes some 85 million Filipinos throughout the country.

To date, Coca-Cola in the Philippines operates with enormous manufacturing plants and
more serving sales offices to offers customers the widest selection of beverages.

3A. THE RISE AND FALL OF COCA COLA

Some Coca-Cola executives had quietly been arguing for a reintroduction of the old
formula as early as May. By June, when soft drink sales usually start to rise, the numbers
showed the new formula was leveling among consumers. Executives feared social peer
pressure was now affecting their bottom line. Some consumers began trying to obtain
"old" Coke from overseas, where the new formula had not yet been introduced, as
domestic stocks of the old drink were exhausted.] Over the course of the month, CocaCola's chemists also quietly reduced the acidity level of the new drink, hoping to assuage
complaints about the flavor and allow its sweetness to be better perceived (ads pointing to
this change were prepared, but never used).
In addition to the noisier public protests, boycotts, and bottles being emptied into the
streets of Southern cities, the company had more serious reasons to be concerned. Its
bottlers, and not just the ones still suing the company over syrup pricing policies, were
expressing concern. While they had given Goizueta a standing ovation when he
announced the change at an April 22 bottlers' meeting at Atlanta's Woodruff Arts Center,
glad the company had finally taken some initiative in the face of Pepsi's advances,[21] they
were less enthusiastic about the taste. Most of them saw great difficulty having to
promote and sell a drink that had long been marketed as "The Real Thing", constant and
unchanging; now that it had been changed.

The 20 bottlers still suing Coca-Cola made much of the change in their legal arguments.
Coca-Cola had argued in its defense when the suit was originally filed that the formula's
uniqueness and difference from Diet Coke justified different pricing policies from the
latter but if the new formula was simply an HFCS-sweetened Diet Coke, Coca-Cola
could not argue the formula was unique. Bottlers, particularly in the South, were also
tired of facing personal opprobrium over the change. Many reported that some
acquaintances had stopped speaking to them, or had expressed displeasure in other
emotionally hurtful ways. On June 23, several of the bottlers took these complaints to
Coca-Cola executives in a private meeting. With the company now fearing boycotts not
only from its consumers but its bottlers, talks about reintroducing the old formula moved
from "if" to "when".
Finally the board of Coca-Cola changed their minds and decided to bring back the old
Coke. Company president Donald Keough revealed years later in the 2002 documentary
The People vs. Coke that they realized this was the only right thing to do when they
visited a small restaurant in Monaco and the owner of the restaurant proudly said that
they had "the real thing, it's a real Coke," offering them a bottle of old Coke.
Coca-Cola executives announced the return of the original formula on July 11, less than
three months after New Coke's introduction. ABC News' Peter Jennings interrupted
General Hospital to share the news with viewers. On the floor of the U.S. Senate, David
Pryor called the reintroduction "a meaningful moment in U.S. history" The company
hotline received 31,600 calls in the two days after the announcement.
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The new product continued to be sold and retained the name Coca-Cola (until 1992,
when it was officially renamed Coca-Cola II), so the old product was named Coca-Cola
Classic, also called Coke Classic, later just Coke and for a short period of time it was
referred to by the public as Old Coke. Many who tasted the reintroduced formula were
not convinced that the first batches really were the same formula that had supposedly
been retired that spring. This was true for some regions because Coca-Cola Classic
differed from the original formula in that all bottlers who hadn't already done so were
using high fructose corn syrup instead of cane sugar to sweeten the drink.[41]
"There is a twist to this story which will please every humanist and will probably keep
Harvard professors puzzled for years," said Keough at a press conference. "The simple
fact is that all the time and money and skill poured into consumer research on the new
Coca-Cola could not measure or reveal the deep and abiding emotional attachment to
original Coca-Cola felt by so many people."
The company gave Gay Mullins, founder of the organization Old Cola Drinkers of
America (which had lobbied Coca-Cola to either reintroduce the old formula or sell it to
someone else) the first case of Coke Classic.]
By the end of the year, Coke Classic was substantially outselling both New Coke and
Pepsi. Six months after the rollout, Coke's sales had increased at more than twice the rate
of Pepsi's.

New Coke's sales dwindled to a three percent share of the market, although it was doing
quite well in Los Angeles and some other key markets. Later research, however,
suggested that it was not the reintroduction of Classic Coke, but instead the less-heralded
rollout of Cherry Coke (now called Coca-Cola Cherry), that can be credited with the
company's success that year.[
Coke spent a considerable amount of time trying to figure out where it had made a
mistake, ultimately concluding that it had underestimated the public reaction of the
portion of the customer base that would be alienated by the switch. This would not
emerge for several years afterward, however, and in the meantime the public simply
concluded that the company had, as Keough suggested, failed to consider the public's
attachment to the idea of what Coke's old formula represented. While that has become
conventional wisdom in the ensuing years, some analysts have suggested otherwise.
This populist version of the story served Coke's interests, however, as the whole episode
did more to position and define Coca-Cola as a brand embodying values distinct from
Pepsi than any deliberate effort to do so probably could have done. Allowing itself to be
portrayed as a somewhat clueless large corporation forced to back off a big change by
overwhelming public pressure flattered customers (as Keough put it, "We love any retreat
which has us rushing toward our best customers with the product they love the most.")
Bottles and cans continued to bear the "Coca-Cola Classic" title until 2009 when the
company announced that it would discontinue the use of "Classic" to avoid confusion
with the younger generation.
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While in the short term the fiasco led Bill Cosby to end his advertising for Coke, saying
his commercials that praised the superiority of the new formula had hurt his credibility,
no one at Coca-Cola was fired or otherwise held responsible for what is still widely
perceived as a misstep, for the simple reason that it ultimately wasn't. When Goizueta
died in 1997, the company's share price was at a level well above what it was when he
had taken over 16 years earlier and its position as market leader even more firmly
established. At the time Roger Enrico, then head of Pepsi's American operations, likened
New Coke to the Edsel. Later, when he was himself PepsiCo's CEO, he modified his
assessment of the situation, saying that had people been fired or demoted over New Coke,
it would have sent a message that risk-taking was strongly discouraged at the company.
In the late 1990s, Zyman summed up the New Coke experience thus: Yes, it infuriated the
public, cost a ton of money and lasted only 77 days before we reintroduced Coca-Cola
Classic. Still, New Coke was a success because it revitalized the brand and reattached the
public to Coke. New Coke continued to do what it had originally been designed to do:
win taste tests. In 1987, The Wall Street Journal surveyed 100 randomly selected cola
drinkers, the majority of whom indicated a preference for Pepsi, with Classic Coke
accounting for the remainder save two New Coke loyalists. When this group was given a
chance to try all three in a blind test, New Coke slightly edged out Pepsi yet many
drinkers reacted angrily to finding they had chosen a brand other than their favorite.
Goizueta never once regretted the decision, even throwing an anniversary party for New
Coke in 1995, and continued to drink it until his death in 1997.
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B. THE BIOGRAPHY OF THE COCA-COLA FOUNDER

John S. Pemberton

Background
Pemberton was born July 8, 1831, in Knoxville, Crawford County, Georgia. His father
was James Clifford Pemberton, brother of Confederate General John Clifford Pemberton.
Pemberton was raised in Rome, Georgia. He entered the Reform Medical College of
Georgia in Macon, and in 1850, at the age of nineteen, he was licensed to practice
pharmacy. Shortly thereafter, he met Ann Eliza Clifford Lewis of Columbus, Georgia,
known to her friends as "Cliff," who had been a student at the Wesleyan College in
Macon. In 1853, he married Miss Lewis in Columbus. Their only child, Charles Ney
Pemberton, was born in 1854. They lived in the Pemberton House in Columbus.
8
Invention of Coca-Cola

In April 1865 while serving as lieutenant colonel of the Confederate Army's 12th Cavalry
Regiment, Georgia State Guard, Pemberton was wounded in the Battle of Columbus,
Georgia. He was slashed across the chest by a saber, and like many wounded veterans, he
became addicted to the morphine used to ease the pain. He was a pharmacist and as such
searched for a cure for his addiction. In 1866, in Columbus, Georgia, he started working
on painkillers that would serve as opium-free alternatives to morphine. His first was "Dr.
Tuggle's Compound Syrup of Globe Flower (cephalanthus oxidentalis). He next began
experimenting with coca and coca wines, eventually creating his own version of Vin
Mariani, containing kola nut and damiana, which he called Pemberton's French Wine
Coca. According to Coca-Cola historian, Phil Mooney, Pemberton's world-famous soda
was "created in Columbus, Georgia and carried to Atlanta."
With public concern about the drug addiction, depression and alcoholism among war
veterans, and "neurasthenia", as well as among "highly-strung" Southern women,[
Pemberton's medicine was advertised as particularly beneficial for "ladies, and all those
whose sedentary employment causes nervous prostration"
In 1886, when Atlanta and Fulton County enacted temperance legislation, Pemberton
found himself forced to produce a non-alcoholic alternative to his French Wine
Coca. Pemberton relied on Atlanta druggist Willis Venable to test and help him perfect
the recipe for the beverage, which he formulated by trial and error.
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With Venable's assistance, Pemberton worked out a set of directions for its preparation
that eventually included blending the base syrup with carbonated water by accident when

trying to make another glass. Pemberton decided then to sell it as a fountain drink rather
than a medicine. Frank Mason Robinson came up with the name "Coca-Cola" for
the alliterative sound, which was popular among other wine medicines of the time.
Although the name quite clearly refers to the two main ingredients, the controversy over
its cocaine content would later prompt The Coca-Cola Company to state that the name
was "meaningless but fanciful." Robinson also hand wrote the Spencerian script on the
bottles and ads. Pemberton made many health claims for his product, touting it as a
"valuable brain tonic" that would cure headaches, relieve exhaustion and calm nerves,
and marketed it as "delicious, refreshing, pure joy, exhilarating," and "invigorating."
Pemberton sells the business
Soon after Coca-Cola hit the market, Pemberton fell ill and nearly bankrupt. Sick and
desperate, he began selling rights to his formula to his business partners in Atlanta. Part
of his motivation to sell actually derived from his expensive continuing morphine
addiction. Pemberton had a hunch that his formula "some day will be a national drink,"
so he attempted to retain a share of the ownership to leave to his son. But Pemberton's
son wanted the money. So in 1888 Pemberton and his son sold the remaining portion of
the patent to As a Candler.

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Death

Grave of John Pemberton in Columbus, Georgia

John Pemberton died at age 57 in August 1888, poor, sick, addicted to morphine, and a
victim of stomach cancer. His body was returned to Columbus, Georgia, where he was
laid to rest at Linwood Cemetery. His grave marker is engraved with symbols showing
his Confederate military service and his pride in being a Freemason. His son continued to
sell an alternative to his father's formula, but only six years later Charles Pemberton died,
an opium user himself.]
John Pemberton in popular culture
In 2010, the Coca-Cola Company paid tribute to Pemberton as a key character within an
advertising campaign called "Secret Formula". Centered on the secret ingredients of
Coca-Cola, imagery related to Pemberton was used to make people more aware of Coke's
history and mythology. In 2013, Pemberton was portrayed by Bill Hader in the "Atlanta"
episode of Comedy Central's Drunk History, created by Derek Waters.
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1.2 THE PRODUCTS OF COCA-COLA AND ITS DESCRIPTION

Coca-Cola is the most popular and biggest-selling soft drinks of TCCC.

The product was first offered as a fountain beverage by mixing Coca-Cola syrup with
carbonated water. Coca-Cola was introduced in 1886, patented in 1887, registered as a
trademark in 1893, and by 1895, it was being sold in every state and territory in the US.

TCCC's other popular soft drink brands offered around the globe includes Sprite, Royal,
Beat, Canada Dry, Canning's, Cheers, Cherry Coke, Citra, Diet Barq's, Diet Coke, Fanta,
Limca, Vault, Coca-Cola Zero, and Diet Cherry Coke. For its fountain products in the
US, TCCC manufactures fountain syrups and sells these to authorized fountain
wholesalers and retailers.

Outside the US, fountain syrups are manufactured by authorized bottlers from
concentrates procured from the company. These fountain syrups are sold by bottlers to
wholesalers or directly to fountain retailers.

The principal raw materials used by TCCC are nutritive and non-nutritive sweeteners. For
example, in the US, the company uses high fructose corn syrup as a nutritive sweetener,
whereas other countries it uses sucrose. The company uses aspartame, acesulfame
potassium, saccharin, cyclamate and sucralose as non-nutritive sweeteners.

12

For juice and juice-drink products, the company uses citrus fruit, particularly orange juice
concentrate, as a raw material.

TCCC operates its business through six business segments: North America, Eurasia and
Africa, Europe, Latin America, Pacific, and Bottling Investments.

TCCC also reports a non-operating segment: corporate. The company has divided its
operations into9 segments based on geographic operations. And the Pacific business
segment encompasses the company's operations in Korea, China, and the Philippines.

To get closer to the clients and consumers, the company operates as an integral supplier
for them offering a complete beverages portfolio that includes Eight O Clock, Funchum,
EOC Immuno Active, and Real Leaf Fruity, Minute Maid Pulpy, Pop, PowerAde,
Samurai, Sarsi, Scheweppers, Sparkle, Hi-C, Jaz Cola. Lift, Viva and Wilkins. Other than
these products of course, the company offers with the most outstanding brands to include
Coca-Cola, Coca-Cola Zero, Sprite, and Royal. As of December 2009, TCCC owned and
operated 29 principal beverage concentrate and or syrup manufacturing plants located
throughout the world.

In addition, TCCC owns or holds a majority interest in 112 principal beverage bottling
and canning plants located in different regions of the world. These plants are included in
the Bottling Investment operating segment.
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A. SOFT DRINKS PRODUCTS

Coca-Cola

Coca-Cola was created in Atlanta by Dr. John S. Pemberton, it was first offered as a
fountain beverage by mixing Coca-Cola syrup with carbonated water.

Coca-Cola Life TM

Coca-Cola Life is a reduced-calorie cola sweetened with cane sugar and stevia leaf
extract. Coca-Cola Life has 35% fewer calories than leading colas **
**Calories per 8-oz. Coca-Cola Life TM. 60 calories, Leading Colas: 100 calories
**Calories per 12-oz. Coca-Cola Life TM. 90 calories, leading Colas: 140-150 calories

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Coca-Cola Zero

Coca-Cola Zero offers real Coca-Cola taste and zero calories.

Diet Coke

Diet Coke is the perfect refreshment for people who want no calories, but plenty of
taste. Launched in 1982, Diet Coke is now the #1 sugar-free beverage brands and the #2
beverage brand in the United States.

Coca-Cola Vanilla Zero

Coca-Cola Vanilla Zero offers real cola taste with vanilla flavor and zero calories.
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Sprite

Sprite is the world's leading lemon-lime flavored sparkling beverage and the #2 Global
brands for TCCC worldwide. With a strong appeal among young adults, millions enjoy its
crisp, clean taste.
Barqs Root Beer

Barq's delivers root beer flavor; its the way root beer is supposed to taste: bold, full of
flavor, with a kick. Barqs has bite! .
Sprite Zero

Lemon-lime, zero-calorie Sprite Zero offers great taste that helps you keep your cool
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Caffeine Free Coca-Cola

Caffeine Free Coca-Cola offers the great taste of Coca-Cola without the caffeine.
Diet Barq's Root Beer

Diet Barq's is a no-calorie option that delivers root beer flavor.

Caffeine Free Diet Coke

Caffeine Free Diet Coke provides the beautifully balanced adult cola taste of Diet
Coke, minus caffeine. Perfect for afternoon and evening consumption occasions.
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Coca-Cola Cherry Zero

Coca-Cola Cherry Zero offers real cola taste with cherry flavor and zero calories.

Coca-Cola Cherry

Coca-Cola Cherry offers the great taste of Coca-Cola with a sweet, smooth cherry
flavor.
Coca-Cola Vanilla

Coca-Cola Vanilla is the flavored carbonated beverage that provides a refreshingly

smooth balance of vanilla flavor and great tasting Coca-Cola.
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Diet Coke Cherry

Diet Coke Cherry Flavor enlivens the taste buds by providing the great adult taste of
Diet Coke, with a hint of cherry flavor.
Diet Coke with Lime

Diet Coke with Lime Flavor enlivens the taste buds by providing the great adult taste
of Diet Coke, with a hint of lime flavor.
Fanta

The multi-sensory, fruity flavors of Fanta provide a bubbly, exuberant and playful
consumption experience.
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Fanta Zero

Fanta Zero offers the bold, fruity taste of Fanta with zero calories and
provides a bubbly, exuberant & playful consumption experience.

FRESCA

FRESCA offers distinctive, citrus grapefruit taste for sophisticated adults.

Mello Yello

Mello Yello has a uniquely smooth citrus taste and heritage, and is The Original
Smooth.
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Mello Yello Zero

Mello Yello Zero has a uniquely smooth citrus taste, zero calories and is The Original
Smooth.
Pibb Xtra

Pibb Xtra provides an intensely flavored, refreshing spicy cherry alternative to regular
cola.
Pibb Zero

Pibb Zero offers a bold Spicy Cherry flavor without the calories.
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B. COFFEE PRODUCTS
Gold Peak Coffee

Our philosophy is simple: bring the most delicious, flavorful coffee to everyone we can.
The smooth and rich flavors of Gold Peak Coffee are first found in the high quality
Arabica beans we use. This species is grown in altitudes of 3,000 - 6,000 feet. Then we
take special care in how we harvest, dry, sort, roast, package and dispense our coffee so
that no Arabica bean unlocks its potential before you take that first sip. Try a cup of Gold
Peak Coffee and discover the taste that brings you home.

Illy issimo

From the masters of Italian espresso, enjoy the pure pleasure of illy issimo coffee
anytime, anywhere. The 100% natural Arabica coffee and finest ingredients offer the
quintessential Italian espresso experience.

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C. TEA PRODUCTS

FUZE Freshly Brewed Iced Tea

FUZE Freshly Brewed Iced Tea is a line of teas that blend fruit flavors and some
helpful nutrients for a reinvented beverage experience.
FUZE Refreshments Juice Drinks and Teas

FUZE Refreshments is a line of great-tasting juice drinks and teas that blend fruit
flavors and some helpful nutrients for a reinvented beverage experience.
HONEST Tea

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HONEST Tea, the nation's top-selling organic bottled tea, delivers great-tasting,
refreshing beverages that are Just a Tad Sweet. Each premium HONEST Tea beverage is
freshly brewed using organic, Fair Trade CerfitiedTM tea leaves and comes in at 100
calories or less per bottle. HONEST Tea is Certified Organic, OU Kosher, Just a Tad
Sweet and available at retailers nationwide.

Gold Peak

GOLD PEAK TEA HOME BREWED TASTE YOULL LOVE AT FIRST SIP
Minute Maid Smoothies

Made with real fruit juices and/or fruit puree, Minute Maid Smoothies are a cool treat
that consumers of all ages love. These frozen treats are growing in popularity and
appearing on menus everywhere. Smoothies are an exciting and great tasting addition to
beverage portfolio.

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D. SPORTS DRINK PRODUCTS

POWERADE with ION4

POWERADE is formulated with ION4 to help replenish four electrolytes lost in

sweat. The formulation launched in 2009 to replace the former POWERADE product
lineup.
POWERADEZERO

POWERADE ZERO is the great-tasting zero calorie sports drink formulated with
Vitamins B3, B6 & B12 to aid in the metabolism of the bodys stored energy.
POWERADE ZERO Drops

POWERADE ZERO Drops is the perfect on-the-go solution for athletes. Just add
POWERADE ZERO Drops to water and turn it into POWERADE ZERO
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E. WATER DRINK PRODUCTS

DASANI DROPS

DASANI DROPS is your tantalizing ticket to taste. A departure into deliciousness

where youll find the flavor you crave that turns H2O into H2OMG. DASANI DROPS
is the delicious drop that enlivens the moment

DASANI

DASANI offers a pure and crisp clean taste in a redesigned bottle that consumers can
feel good about. Plant Bottle packaging is
The Coca-Cola Companys latest innovation in packaging that uses renewable materials
in a plastic bottle that is up to 30% made from plants and is still 100% recyclable. We are
proud to offer Plant Bottle packaging for all DASANI packages nationwide, showcasing
our leadership in the bottled water category.
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DASANI Sparkling

DASANI Sparkling is a flavored, unsweetened, zero calorie, Sparkling water beverage

that launched in February 2014 with 4 flavors Lime, Lemon, Apple and Berry.

DASANI Flavors

DASANI Flavors is designed to make a difference with better designed formulas and
better designed packaging that is stylish, has a premium look, and improved flavor and
zero calories.

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F. JUICE DRINKS PRODUCTS

Bright & Early

Bright & Early flavored drinks are a great way to start your morning, with delicious
flavors such as grape, apple, and orange each providing a full day's supply of vitamin C
per 8-oz. serving
Simply Juice Drinks

Simply Juice Drinks offer premium, not-from-concentrate products that appeal to

consumers seeking a refreshing and delicious taste experience.

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FUZE Slenderize

FUZE slenderize is a great tasting and refreshing low calorie fruit flavored beverage
infused with some helpful nutrients.

FUZE Taste Blends

FUZE Taste Blends are a great tasting and refreshing low calorie fruit flavored
beverage with a touch of milk for that delicious smoothie sensation and infused.

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Hi-C

The explosive fruit taste of Hi-C, with 100% vitamin C per serving, can be enjoyed
anytime, anywhere.

Minute Maid (Box Products)

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of
combined retail volume sales in 20111. Minute Maid juice box products, featuring 100%
juice and juice drinks in single-serve portion sizes for children, providing the nutrition
mom is seeking and the great taste and fun that kids want.

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Honest Kids Multi-Serve

Honest Kids, the nations top-selling organic SS youth juice drink1, delivers greattasting, lower-sugar* refreshment now in a larger, at-home package. Sweetened only
with fruit juice, each variety contains 1/3 less sugar than the leading kids juice drinks in
multi-serve packaging* and 100% daily value Vitamin C. Honest Kids is Certified
Organic, OU Kosher, Gluten-Free and is available at retailers nationwide.
HONEST Ade

HONEST Ade organic thirst quenchers deliver great-tasting, Just a Tad Sweet
refreshment. Each is 100 calories or less per bottle and just a tad sweet. HONEST Ade is
certified organic, OU Kosher, caffeine-free, and is available at retailers nationwide.

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Minute Maid Coolers

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of
combined retail volume sales in 20111. Minute Maid Coolers provide the nutrition mom
is seeking and the great taste and fun that kids want.

Minute Maid Fruit Falls

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of
combined retail volume sales in 20111. Minute Maid Fruit Falls is a naturally flavored
water beverage with only 5 calories per pouch. Minute Maid Fruit Falls provide the
nutrition mom is seeking and the great taste and fun that kids want.

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Minute Maid Just 10

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of
combined retail volume sales in 20111. Minute Maid Just 10 Fruit Punch is a low calorie
juice drink with only 10 calories per pouch. Minute Maid Just 10 provides the nutrition
mom is seeking and the great taste and fun that kids want.

Minute Maid Kids+ Orange Juice

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of
combined retail volume sales in 20111. Minute Maid Kids+ Orange Juice provides
superior nutritional fortification with Vitamins A, B1, C, , D, E & Calcium in a flavor that
kids love. The calcium and vitamin D combination helps support growing bones, and
antioxidant vitamins A, C and E help to maintain a normal, healthy immune system. Kids
will love the pulp-free taste!

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Minute Maid Lemonade

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of
combined retail volume sales in 20111. Classics never go out of style. Made with the
goodness of real lemons2, Minute Maid Lemonade is the quintessential refreshing
beverage with the great taste of a simpler time.

Minute Maid Light Lemonade

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of
combined retail volume sales in 20111. Minute Maid Light TM Lemonade offers the
great-tasting juice flavor people expect from Minute Maid, but with fewer calories.

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Minute Maid Orange Juice

With more than 100 different flavors and varieties, Minute Maid is the largest brand in
the Coca-Cola juice portfolio and is available in more than 70 countries worldwide.
Minute Maid Orchards Best

Minute Maid Orchards Best offers the refreshing goodness of 100% juice and a wide
variety of juice drinks in shelf-stable packaging.

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Odwalla Proteins

Odwalla offers a variety of delicious protein shakes that are supercharged with protein,
essential amino acids, vitamins, and other nutrients. The portfolio includes both dairy and
vegan protein options.

Odwalla 100% Juices

Odwalla 100% Juices are made from the finest quality fruits and vegetables nature has
to offer.

36

Odwalla Smoothies

Odwalla Smoothies are delicious blends of juice and fruit purees with beneficial
nutrients.
Simply Apple

Simply Apple is a premium, not-from-concentrate, 100% pure pressed apple juice that
appeals to consumers seeking a fresh taste experience.

37

Simply Cranberry Cocktail

Simply Cranberry Cocktail is a premium, not-from-concentrate juice drink product that

appeals to consumers seeking a fresh taste experience.

Simply
Grapefruit

Simply Grapefruit is a premium, not-from-concentrate, 100% juice that appeals to

consumers seeking a fresh taste.

38

Simply
Lemonade

Simply Lemonade offers premium, not-from-concentrate juice drink products that

appeal to consumers seeking a fresh taste experience.
Simply Limeade

Simply Limeade premium, not-from-concentrate juice drink product that appeals to

consumers seeking a fresh taste experience.
Simply Orange

Simply Orange offers premium, not-from-concentrate, 100% juice products that appeal
to consumers seeking a fresh-squeezed taste experience.
39
1.3 STATUS OF THE INDUSTRY

The growing trends surrounding societal concern, attitudes, and lifestyle are important to
consumers. Filipinos nowadays for instance are becoming more focused on healthy
lifestyle. The awareness of health and wellness issues such as obesity, diabetes, and
inactive lifestyle represent a serious risk to the carbonated drinks sector. The trend is
causing the industry's business environment to change as firms differentiate their
products in order to increase sales in a stagnant market.

San Miguel Corporation in particular is now producing healthy ready-to-drink fruit

juices. The universal Robina on the other hand also manufactures healthier substitute for
carbonates via C2 (tea) products. These are some among factors that carbonated soft
drinks consumption is continuously declining as interfence of the buyer's quest for
alternatives are observed.

If a firm was the first to introduce a product, then the advertising campaign should
reinforce this fact. Coca-Cola's "the real thing" does just that, and implies that other colas
are just imitations. According to Ries and Trout's arguments, "the success of a brand is
not due to the high level of marketing acumen of the company itself, but rather, it is due
to the fact that the company was first in the product category".

40

This is another core strategy of Coca-Cola being the first-mover to maintain its position
as market leader of the industry. As positioning really begin with a product, but the true
concept relies on the inculcation of that product in the minds of the consumer. Coca-Cola
being regarded as one of the world's notable brands, the power of a name it carries really
counts.
The report on soft drink industry suggests that sales have not been as brisk as in the past
as consumers shift to healthier (less sugar-laden) alternatives. Rising food and fuel prices
have also weakened consumer demand as people's physiological needs are of most
important of course. In spite of these, the outlook of the Coca-Cola Company remains
optimistic. The company will continue to be a popular segment of the beverage industry
since the soft drinks intake has been always a part of the diet of many Filipinos.
To enhance consumer demand, the company is actively pursuing promotional activities
such as tie-ups with value meals of popular fast-food chains, restaurants, pizza stores,
sponsorship of events, setting up of booths in school/club fairs, provision of free soft
drinks in some events, installation of vending machines, and among others.
The massive multi-media advertising campaigns, price cuts of other SKU's, product
introduction, as well as continuos research and development of the company, all these
aggressive efforts in revising interest in the product are slowly paying off.
Accordingly, while sales of the regular soft drink products have been broadly flat, the
demand for the new variants (e.g. sugar free (Cole Zero), water (Wilkins), Fruit-flavored
(Nestea Honey Lemon) have been posting good growth. And it is likely that these new
variants will continue to drive opportunity in the coming years.
41

CHAPTER II
MARKETING
ENVIRONMENT

42

2.1 THE MARKET

When it comes to the consumer market, Coca-Cola has a very broad market base. The
company focuses its efforts on many different people. Cokes core business, which has
been carbonated beverage, has been targeting a large audience of soft drink consumers.
Throughout history, the company has targeted many generations of people. The ages of
these people has ranged from young to old. Coke has always been known as a
classic, which has appealed to the older audience.

For the Coca-Cola Company, there is a need for them to focus on certain demographical
characteristics of the population. The characteristics they consider include: age, income,
and family. The other demographic considerations such as, education and ethnically
are not as large of a concern. When we look at age, the company tries to keep their
image hip and cool to appeal to younger generation people. But also target the older
generations by keeping the classic Coca-Cola image. Since age has a large impact on
income, it would be expected that this would be an issue for the company. This is not
necessarily true. The products they offer are affordable for most people, even young teens
without a job relying on parents. This brings us to the idea of targeting different family
types. Since age is not necessarily prohibiting family differences should not hurt.

43

The sales of their products, but only help it because of the appeal to most people. It does
not matter if you are single, married with no children, or even married with children.
Their products are suited for all people.

In Coca-Cola news they tell us that they are working on efforts to, develop new drinks
and to make juices, coffees, and teas (Coke, 2001) by implementing these changes,
they are targeting parents of children for their juices, older people with coffees, and
people who want a healthier alternative to carbonated beverages, with their teas. While
Cokes core business will remain carbonated beveragesaccording to Mr. Heyer,
we dont want to be limited.

Also included in deciding a market for a product are geographical considerations,

psychographic details, situation and behavior/usage. Coke targets people throughout
the world and of many different cultures. Because of this, their scope for geographical
area is very broad. Although they advertise Coke as refreshing beverage, which would be
needed more in warmer climates. It would be unwise of me to assume that advertising is
different in other, warmer, climates, but it would only make sense. They would need to
target someone wanting to quench their thirst rather than just enjoy a beverage.

44

2.2 THE COMPETITOR'S ANALYSIS

For more than a century, Coke and Pepsi vied for "throat share" of the world's
beverage market. In the domestic beverage market, The Coca-Cola Bottlers Philippines,
Inc.'s main competitor is the PepsiCo. The former painted to occupy the largest market
share followed by the later. But the Cola war is not only for these two players.

PROJECTED COMPETITORS:

1. Pepsi Cola Products Philippines, Inc. (PCPPI) is 32.9% owned by PepsiCo.

PCCPPI's brands in the market include Pepsi, Diet Pepsi, Pepsi Light, Pepsi Max, 7up,
Diet 7up, Mountain dew, Jazz, Mirinda, and Mug.

2. Interdev Corporation is a subsidiary of beer company Asia Brewery Inc., which

managed to secure a licensing agreement for virgin Cola, a popular brand in 2004. Virgin
Cola comes in four variants: regular, diet, lemon, and lime. It competes with lower-priced
brands in the market like Pop Cola, RC Cola and Jazz.

3.) Juice Company Zesto Corporation has also entered the soft drinks market via Zesto
Cola in 1994. Its product "challenged the market leader in terms of taste, refreshing
qualities, and price".

45

Zesto has since diversified its carbonated drinks line to include Zesto Cola, Zero Cal,
Root beer Light, Twist, Squiz Grape, Dalandan Fruit Soda, Calamansi Fruit Soda, and
Pomelo Fruit Soda.

4.) Another player is Asia wide Refreshments Corporation, which is the Philippine's
licensed bottling manufacturer and distributor of US brand RC Cola. The product is
among the relatively low-priced brands in the local market.

To name a few, the substitute for soft drinks primarily includes coffee, traditional
tea, and homemade juices.

Aside from above expected competitors, another leading player who is another
threat to Coca-Cola Company is Nestle, the holding company of the Nestle Group
engaged in the business of manufacturing and marketing branded food and beverages.

Leading player like Nestle have also diverse product ranges to be offered which
even intensify competition more in the market.

46

2.3 PRICING ANALYSIS

The amount of money charged for a product or service, or sum of the values that
Consumers exchange for the benefits of having or using the product or services.

As price gives us the profit so this P is very important for business price of
product should be that which gives maximum benefit to the company and which gives
maximum satisfaction to the customer.

Following factors Coca Cola kept in mind while determining the pricing:

Price should be set according to the product demand of public.

Price should be that which gives the company maximum revenue.

Price should not be too low or too high than the price competitor is charging from their
customers otherwise nobody will buy your product.

Price must be keeping the view of your target market.

47

The price of Coca Cola, despite being market leader is the same as that of its competitor
Sometimes, Pepsi places its customers into some psychological pricing strategies by
reducing a high priced bottle and consumers think that they save a lot of money from this.

Coca Cola has intense competition with neither Pepsi so its pricing cant exceed too
much nor decrease too much as compared to the price of Pepsi Cola.

If price of the Coca Cola exceed too much from the Pepsi then people will shift to the
Pepsi Cola and on the other hand if the price of Coca Cola decreases people might get the
impression that its quality is also low.

48
A. THE PRICE LIST OF COCA-COLA PRODUCTS

PRODUCTS

SUGGESTED RETAIL PRICE (SRP)

Coke Sakto

P7.00

Coke, Sprite, Royal Mismo

P11.00

Minute Maid Fresh 250 ml

P12.00

Minute Maid Fresh 800 ml

P25.00

Sprite, Royal 8oz

P8.00

Royal asstd GR/OR/LEM

P8.00

Coke, Sprite, Royal 12oz

P12.00

Coke, Sprite 400 ml

P15.00

Coke, Sprite, Royal, Sparkle KASALO

P18.00

Coke, Coke Zero, Sprite, Royal 1.5L

P50.00

Coke, Sprite, Royal in cans

P25.00

PowerAde Sports 500 ml

P24.00

Samurai 240 ml

P10.00

Real Leaf Frutcy 480 ml

P19.00

Viva Mineral 500 ml

P11.00

Wilkins Pure 500 ml

P11.00

Wilkins Pure 1L

P22.00

49
2.4 THE CHANNELS OF DISTRIBUTION

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

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 product

50
2.5 THE COCA-COLA PROMOTIONS

The Coca-Cola Company has a lot of promotions some of these are:

CHRISTMA
S CARAVAN PACK

SOUVE
NIR
51

TI
E- UP WITH MCDONALDS

RAFFLE PROMO

52

SHARE A COKE

53

CHAPTER
III
ANALYSIS
OF ISSUE
54

3.1 THE SWOT ANALYSIS

STRENGTHS

The success of the soft drinks industry in the country hinges on several strengths (S). For
one, Coca-Cola brands are well-established and have been in the market for several
decades now.

The local base licensees also enjoyed strong support from the mother company offshore.
Other than the brands have already developed a loyal customer base, the company
established also extensive facilities and distribution networks all over the country.

Further, the company spent heavily on marketing and multi-media advertising support.
Targeted advertising has been a major strength of the brand that it has the greater control
over who sees ads and when they are seen. While Coca-Cola offers wide array of choices
for the consumers, they also continuously pursue product innovations to cater to changing
demands and lifestyle of the market.

From the use of innovative packaging techniques to social networking, to the use of
advance technology, Coca-Cola has also big distribution network to operate and serve the
market from any major points of the country.

55
WEAKNESSES

In terms of weaknesses (W), sales have been declining in recent years due to
reason potentially linked to employees who are not executing well their function
effectively.

They are just complacent that the products no longer require efficient personal
representation as marketing and advertising propagation are already seen in the multimedia outlets. Also, Coca-Cola products are relatively high compared to other brands that
the present target markets (class B, C, D) preferred most to one with much lower price.

OPPORTUNITIES

An opportunity (O) for growth is seen in the introduction of new variants of soft
beverages. Offered for those health-conscious driven individuals. The increasing
incidence of eating-out among Filipino families also present opportunity as It may
translate to more orders of carbonated drinks.

Indeed, the Filipino culture and long traditional practices and gatherings like
fiestas, picnics, reunions, gimmicks, etc have all standing capability to increase strike rate
of the product in the market. Moreover, the growing economy of the country also poses
possible chance to increase the purchasing capability of the consumers.
56

THREATS

Brought about by much intensified competition in the market, not only within the
industry itself but also coming from other non-carbonated beverage such as bottled water,
ready-to-drink teas, fruit juices, sports and among others.

The shift in consumer preferences towards soft beverages tied to health and wellness also
offers threat to the company.

Scarcity of quality water, which is one vital component in producing soft drinks.

As graph exemplified expenditures in global perspective, Coca-Cola advertisement in the

Philippines is undoubtedly striking fast as one among the leaders in terms in terms of
advertisement publicities.

In the Philippines, soft drink industry is relatively disjointed as most of the market share
is being dominated by the top players.

The market has the presence of leading players like Coca-Cola Bottlers, Philippines, Inc.,
PepsiCo, and Nestle.

57

CHAPTER IV
OBJECTIVES
OF THE
MARKETING
PLAN
58
4.1 THE OBJECTIVES OF THE COCA-COLA COMPANY

The Coca Cola Company is successful in selling many of its products, however, there still be aspects that
can be further improved. The first of these areas is that there are many products that are not as well
known as the major brands of beverages, the well know Coca Cola, Sprite, Nestea, and PowerAde. One
of our objectives is to promote the lesser-known products under Coca-Cola Enterprises to be more
successful.

In the next two years (by 2008), it is plan that an 100% sales increase will occur in such products as, Full

Throttle, Hi-C, and Disneys Hundred Acre Woods. In order to achieve these goals we plan to focus more
attention to the advertising of such products.
The result of this will be an increase in sales for Coca-Cola Enterprises, an increase in Coca Colas
market share, as well as a decrease in sales for other competitors. A second objective is to reposition
Coca-Cola to be a healthier product. This is because consumers today are looking to lead healthier lives,
choosing substitution goods. Cola has many different drinks, such as Minute Maid, and many different

types of fruit juice beverages. These products contain many vital nutrients, such as Vitamin C. They have
also received a health check from the Heart and Stroke Foundation, which the Coca Cola Company
supports financially. It is planned for such information to be released to the public and by 2008; Coca
Cola Enterprises would be repositioned as a healthier company in the consumers minds. It is planned
that by 2008, a research conducted regarding favourite beverages will reveal that Coca Cola Enterprises
products rank number one among the vast majority of consumers.
59

CHAPTER V
MARKETING
STRATEGIES

60
MARKETING STRATEGIES
The importance of strategy formulation is coping with competition and submission to the
recent in the market trends.

Customers variation is also critical for the company to be identified in order for them to
determine who their target markets are. And the company should establish a strategy
attuned to that compliance.

5.1 POSITIONING STRATEGY

Brand loyalty refers to a consumers attachment or devotion to a brand (Aaker, 1991).

The power of the company sometimes comes from the power of its brands.
Coca-Colas revolutionary approach to creating a position in a Prospective customers
mind one that reflects a companys own strengths and competitive advantage should at
most emphasized. Coca-Cola should reinforce the banner of Cola flavour as most
superior among other competing category in terms of taste and preferences.
The expanding carbonated soft drinks market has also been accompanied by an influx of
newer brands that try to cater to different consumer tastes (Sen., 1997).
To address the demand of health conscious markets. Coca-Cola needs to reposition those
products (coke zero, diet coke, teas) to maximize potential gain of this losing slice of
market share.

61

5.2 PRICING STRATEGY

Price basically play relative role in consumer demand for soft drinks. Customers are price
sensitive.

Basically the perception of the buyers that when a product is expensive, the quality of a
product is good, and this holds true that even the use of price-quality approach has still
banging impact on the consumers.

This is important to impart a message that Coca-Cola is a company categorically

producing superior brands that deliberately attempt to offer more in terms of quality,
service and or performance.

On the note, because the company is perfectly viable to maintain economies of scale,
other non-performing brands can be offered in a price at par with the existing players to
shy them away and gain dominant control over the market. Setting the price low attracts
customers and gain market share.

62

5.3 INTRODUCTION OF SUBSTITUTE PRODUCTS

Posed by perceived ominous health threat and other factors, the demand for CSD has
been negatively affected.

Consumption of carbonated soft drinks in the Philippines has been in steady decline over
the past years.

The profusion of these substitute beverages in the market are gaining consumer favor
over CSDs.

Coca-Cola in this respect should vigorously position their substitute brands by making
product known to the public.

Posed by perceived health benefits, these must be displayed at the leading business
outlets, sari-sari store, convenience store, and retail trade partners to have consumer the
preference over plethora of refreshment beverages in the market.

63

5.4 INCENTIVISING BUSINESS PARTNERS

Market Execution Partners (sari-sari store, convenience store, supermarket, distributions,

and retailers) are regarded as the most important business partners by the company.

For the company to gain loyalty, a TDI (trade deals incentives) should be extended to
them.

By offering promotional and discounting strategy, expected ROI (return of investment)

can be generated as both is harmonized in achieving goals (e.g. sales volume target and
profits).

64
5.5 INTENSIFY MARKET SCANNING

The need to identify who and where your potential market is must present a potent
consideration for Coca-Cola to focus on.

Target market, positioning, and segmentation should come into play so that a product is
being offered at the right person and at the right place.

The effective use of Research and Development (R&D) aspect can bring so much to
translate the intention of better identifying the needs and wants of the consumers in a
given place.

65

TABLE OF CONTENTS

Executive Summary.

CHAPTER I INTRODUCTION

1.1 The history of Coca-Cola Bottlers Philippines, Inc

2-3

A. The Rise and fall of Coca-Cola Company

4-7

B. The Biography of the Coca-Cola Founder

8-11

1.2 The products of Coca-Cola and its description.

12-13

A. Soft Drinks Products..

14-21

B. Coffee Products...

22

C. Tea Products...

23-24

D. Sports Drink Products

25

E. Water Drink Products.

26-27

F. Juice Drink Products..

28-39

1.3 Status of the Industry

40-41

CHAPTER II MARKETING ENVIRONMENT

42

2.1 The market of Coca-Cola Bottlers Philippines, Inc .

43-44

2.2 The Competitions Analysis..

45-46

2.3 The Pricing Analysis

47-48

A. The Price List of Coca-Cola Products..

ii

49

2.4 The Channels of Distribution.

50

2.5 The Coca-Cola Promotions.

51-53

CHAPTER III ANALYSIS OF ISSUE

54

3.1 The SWOT Analysis..

55-57

CHAPTER IV OBJECTIVES OF THE MARKETING PLAN

58

4.1 The Objectives of the Coca-Cola Company .

59

CHAPTER V MARKETING STRATEGY

60

5.1 Positioning Strategy.

61

5.2Pricing Strategy

62

5.3 Introduction of Substitute Product.

63

5.4 Incentivizing Business Partners...

64

5.5 Intensify Market Scanning..

65

iii

CHAPTER VI PROJECTED INCOME STATEMENT..

66-67

CHAPTER VII EVALUATION OF MARKETING PLAN

68-69

APPENDIXES

iv