REPORT ON COCA-COLA

COMPANY

Subject: Marketing Management

Submitted by: Ayesha Khan

0
TABLE OF CONTENTS

S. NO. CONTENTS PAGE NO.

I. Executive Summary 3

II. Introduction 3

III. Mission Statement and Vision 4-5

IV. History 6-9

i. Coke History in Pakistan

ii. Coke Today
V. A Global and Local Strategy 10-11

VI Marketing-mix of Coca Cola 12-17

i. Product
ii. Price
iii. Place
iv. Promotion

VII. Other Products and Offerings of 18-20

The Company
VIII. Coca Cola Market Offering in 21
Pakistan
IX. Market Position of Coca Cola in 21
Pakistan
X. Portfolio Analysis 22-23
1
XI. Major Competitors of Coca Cola 24-25

XII. Competitive Advantages 26

i. Brand name, Symbol, and

Bottle Shape
ii. Diet Coke
iii. Snatching Away Customers
XIII. SWOT Analysis 27-29

i. Strengths
ii. Weaknesses
iii. Opportunities
iv. Threats
XIV. Growth Strategy 30-31

i. Market Penetration
ii. Market Development
iii. Product Development
iv. Diversification Strategy
XV. Marketing Strategy 31-32

i. Going Global
ii. Quality Promises of Coke
iii. Targeting Young Minds
iv. Change of Bottle Design
v. Fun Island
vi. Cocateria
vii. Coca Clubs
viii. Coca Hookah
ix. Coke Pumps
XVI Major Segments 33

XVII Target Market 33

XVIII Conclusion 34

XIX Recommendations 35

XX References 36

2
 EXECUTIVE SUMMARY
The scope of the report is to discuss the marketing functions and strategies adopted and
applied by Coca Cola, Pakistan. These marketing functions mainly include the marketing
mix i.e., Product Strategy, Pricing Strategy, Pricing Tools and Strategies and Placement and
Distribution Strategies as well as other market strategies.

Moreover the report also discusses the analysis of competition, market growth and trend,
opportunity analysis and strategies for creating competitive advantage adopted by Coca
Cola.

INTRODUCTION
Coca-Cola, the product that has given the world its best-known taste, was born in
Atlanta, Georgia, on May 8, 1886. T h e Coca-Cola Company is the worlds leading
manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups. It
sells beverage concentrates and syrups to bottling and canning operators, distributors,
fountain retailers and fountain wholesalers. The companys corporate headquarters are in
Atlanta, with local operations in over 200 countries around the world.

Although Coca-Cola was first created in the United States, it quickly became popular
wherever it went. Its first inter national bottling plants opened in 1906 in Canada, Cuba and
Panama, soon followed by many more. Today, Coca-Cola has a portfolio of more than 3,000
beverages. Coca-Cola has 92,400 employees worldwide. More than 70 percent of its income
comes from outside the U.S., but the real reason it is a truly global company is that its
products meet the varied taste preferences of consumers everywhere.

3
 MISSION STATEMENT
Mission statement is a statement of organizations
purposes that what it wants to accomplish. Our mission
declares our purpose as a company. It serves as the
standard against which we weigh our actions and
decisions. It is the foundation of our manifesto.
Everything we do is inspired by our enduring Mission:

To Refresh the World...in body, mind, and spirit.

To Inspire Moments of Optimism...through our brands and our actions.

To Create Value and Make a Difference...everywhere we engage.

In order to achieve mission of increasing market share and maintaining good relations with
our customers all over the world, we wish to create value for all the constraints we serve,
including our consumers, our bottlers, and our communities. The Coca Cola Company
creates value by executing business strategy guided by four key beliefs:

Customer is king; Customer demand drives everything we do.

Brand Coca Cola is the core of our business.
We will serve consumers a broad selection of the nonalcoholic ready-to-drink beverages
they want to drink throughout the day.
We will be the best marketers in the world.

4
 VISION
The vision guides every aspect of the business by describing what it needs to
accomplish in order to continue achieving sustainable growth.

People: Being a great place to work where people are inspired to be the best they can be.

Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and
satisfy peoples desires and needs.

Partners: Nurturing a winning network of customers and suppliers, together we create

mutual, enduring value.

Planet: Being a responsible citizen that makes a difference by helping to build and
support sustainable communities.

Profit: Maximizing long-term return to shareowners while being mindful of our

overall responsibilities.
5
 HISTORY
Coca-Cola originated as a soda fountain beverage in 1886
selling for five cents a glass. Early growth was impressive,
but it was only when a strong bottling system developed
that Coca-Cola became the world-famous brand it is today.

1894 A modest start for a Bold Idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called
Coca- Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-
Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to
Asa Griggs Candler, who owned the Company. Candler thanked him but took no action.
He only focused on fountain sales.

1899 The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they

could build a business around bottling Coca-Cola. In a meeting with
Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained
exclusive rights to bottle Coca-Cola across most of the United States
for the sum of one dollar.

1900-1909 Rapid growth

The three pioneer bottlers sold bottling rights to local entrepreneurs. By 1909, nearly 400
Coca-Cola bottling plants were operating, most of them family-owned businesses.

1916 Birth of the contour bottle

Bottlers worried that the straight-sided bottle for Coca-Cola was easily
confused with imitators. A group representing the Company and bottlers
asked glass manufacturers to offer ideas for a distinctive bottle. A design
from the Root Glass Company, Indiana won enthusiastic approval in 1915
and was introduced in 1916. The contour bottle became one of the few
packages ever granted t r a d e m a r k s t a t u s b y t h e U . S . Patent Office. Today, it's one of
the most recognized icons in the world - even in the dark!

6
1920s and 30s Bottling overtakes fountain
sales

As the 1920s dawned, more than 1,000 Coca-Cola bottlers were

operating in the U.S. Six-bottle cartons were a huge hit after their 1923 introduction. By the
end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. By the time World War
II began, Coca-Cola was being bottled in 44 countries.

1940s Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops.

1950s Packaging innovations

For the first time, consumers had choices of Coca-Cola package

size and type the traditional 6.5-ounce contour bottle, or larger
servings including 10-, 12- and 26-ounce versions. Cans were also
introduced, becoming generally available in 1960.

1960s New brands introduced

Following Fanta in the 1950s, Sprite, Minute Maid, Fresca and TaB joined brand
Coca- Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s
brought diet Coke and Cherry Coke, followed by POWERADE and DASANI in the
1990s. Today hundreds of other brands are offered to meet consumer preferences in local
markets around the world.

1970s and 80s Consolidation to serve customers

As technology led to a global economy, many small and medium-size bottlers

consolidated to better serve giant international customers.

21st Century

The Coca-Cola bottling system grew up with roots deeply planted in local communities.
This heritage serves the Company well today as people seek brands that honor local
identity and the distinctiveness of local markets

7
 COKE HISTORY IN PAKISTAN
To provide Coca-Cola at arms length

The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite are
the brands with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in
Pakistan operates through eight bottlers, four of which are majority-owned by Coca-Cola
Beverages Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad,
Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan and Lahore. The Coca-Cola
System in Pakistan serves 70,000 customers/retail outlets. It has nearly 3,000 people working
constantly for the company. During the last two years, The Coca-Cola Company in Pakistan
has invested over $130 million (U.S) and coke has successfully provided 57 years of
dedicated service to its customers in Pakistan. Since the beginning of Coke Company the
firm has been continuously changing its slogans and thats a very creative idea to get the
attention of the customers.
Here we would like to include some of the popular slogans of coke since the coke journey
started:
1886 Drink Coca-Cola
1908 Get the genuine
1923 Enjoy thirst
1934 When it's hard to get started, start with a Coca-Cola
1942 The only thing like Coca-Cola is Coca-Cola itself
1956 The friendliest drink on earth
1963 Things go better with Coke
1993 Always. Coca-Cola
2001 Life is Good
2003 Jo Chaho Ho Jaye Coca Cola Enjoy
2004 Flight Of Delight
2005 Delicious Taste
2006 Thanda matlab coca cola
2007 Khaly Pily Ji Lay Coca Cola
2008 Aja jashan mena ly

2010 Khulen Khushiyan (Open Happiness)

TODAY.
8
Today CCBPL is operated directly under the supervision of the Coca-Cola International
based in Atlanta Georgia State, USA .It owns 8 plants all around in Pakistan. Coca Cola
Company offers the brand range as Coca Cola, Diet Coke, Fanta, Sprite and Kinley water in
Pakistan.

57 years of refreshment in Pakistan

Coca-Cola introduced in Pakistan 1953

Fanta introduced in Pakistan 1965

Sprite was introduced 1972

Diet Coke & Fanta Lemon 2001

Kinley water 2001

A GLOBAL AND LOCAL STRATEGY

9
The Coca-Cola Company is the world's largest beverage company and is the leading
producer and marketer of soft drinks. The Company markets four of the world's top five soft
drinks brands: Coca-Cola, Diet Coke, Fanta and Sprite. The success of The Coca-Cola
Company revolves around five main factors:

1. A unique and recognized brand - Coca-Cola is among the most recognized trade marks
around the globe.

2. Its quality - consistently offering consumers products of the highest quality.

3. The marketing techniques- delivering creative and innovative marketing programs

worldwide.

4. A global availability - Coca-Cola products are bottled and distributed worldwide.

5. Its ongoing innovation - continually providing consumers with new product offerings e.g.
Diet Coke (1982), Coca-Cola Vanilla (2002).

Although Coca-Cola is a global product with universal appeal, the Company actually
operates in local environments around the world, with each country having its own unique
needs and requirements. So while Coca-Cola is probably the only product in the world that is
universally relevant in every corner of the globe, the Company feels that its responsibility is
to ensure that with every single can or bottle of Coca-Cola sold and enjoyed, individual
connections are made with their consumer. That can only be achieved at a local level. The
challenge facing The Coca-Cola Company today is therefore to continue to build an
organizational structure that will deliver a global and local strategy.

10
The goal of The Coca-Cola Company is 'to be the world's leading provider of branded
beverage solutions, to deliver consistent and profitable growth, and to have the highest
quality products and processes.

To achieve this goal, the Company has established six strategic priorities and has built these
into every aspect of its business:

1. Accelerate carbonated soft drinks growth, led by Coca-Cola.

2. Broaden the family of products, wherever appropriate e.g. bottled water, tea, coffee,
juices, energy drinks.

3. Grow system profitability & capability together with the bottlers.

4. Creatively serve customers (e.g. retailers) to build their businesses.

5. Invest intelligently in market growth.

6. Drive efficiency & cost effectiveness by using technology and large scale production to
control costs.

7. Enabling the company people to achieve extraordinary results everyday.

11
 MARKETING MIX OF COCA COLA
Marketing decisions generally fall into the following controllable categories:
Product
Price
Place (distribution)
Promotion

PRODUCT:
The Coca-Cola Company's products include beverage concentrates and syrups, with the main
product being finished beverages. The business has over 300 brands of beverages around the
world with the main ones being Coke, Fanta, Sprite, Frutopia 100% Fruit Juice, and
PowerAde.

Packaging: The packaging of red and white Coca-Cola products is a world recognized.
There are three main functions of packaging: (1) contain and protect the product, (2) promote
the product, and (3) facilitate storage, use and convenience. The Coca-Cola bottling plants
have continued to develop new packaging to meet these three functions, while also adding
the ability to recycle and produce a product that is no longer seen as waste, but as a valuable
resource for the future. This recycling initiative adds to Coca-Colas position in the consumer
market. The products that Coca-Cola offers have many strong competitors and it is important
for the brand to be recognized everywhere as a leader in all aspects, from taste and price to
contributions and recycling. In Pakistan, Coke is available in 250-ml bottle, small size
disposable bottles, 1-liter bottle, 1.5 liter bottle and tin cans. Coca-Cola is the most well
known trademark, recognized by 94 per cent of the world's population. The business is very
successful and holds a very good reputation.

Marketing strategies for Product:

The Coca-Cola Company uses the following marketing strategies to differentiate its product
from its competitors to gain a competitive advantage:

Extension/product differentiation:
12
In 2002, the Coca-Cola Company extended the products of Coke and developed the new
products-- Coke with lemon and Vanilla Coke. This extension responded to consumer
demands and generated sales and profit.

Innovation:
In 2001, Coca-Cola had innovated and developed the introduction of purchasing the
company's products from vending machines via SMS messaging. In 2002, the company
innovated and came up with a new packaging idea, the Fridge Pack. The Fridge Pack
consists of cans packed 2-by-6. This innovation has increased consumer awareness and
preferences and increased rate of consumption and profitability.

PRICE:
The prices of Coca-Cola's products vary according to the brand and the size. The pricing has
been done at a reasonable level all over the world, also keeping in mind the prices being
offered by the competitors. In Pakistan, the prices of different sizes of bottles are:

Rs.15/- for 250-ml bottle

Rs. 20/- for 300-ml bottle

Rs.30/- for 500-ml

Rs.40/- for 1 liter bottle

Rs. 70/- for 1.5 liter bottle

Rs. 85/- for 2.25 liter bottle

Rs. 35/- for tin can

Pricing Methods/Pricing strategies:

The Coca-Cola Company's products are sold in retail stores, convenient stores, petrol
stations etc. The pricing methods/strategies are set by those to whom the company sells the
products to. Petrol stations and convenient stores usually sell Coca-Cola products at a fixed
price. However, retail outlet uses the following pricing methods/strategies when selling
Coca-Cola products:
13
 Competition-based pricing:
Coca-Cola products are usually priced below, above or equal to its competitors' prices. Coca
Cola has intense competition with 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.

Promotional Pricing:

Coca Cola has offered promotional prices very frequently. Especially on some occasion
Coca Cola reduces its rates like in Ramadan, Coca Cola reduces its rate unto 5 Rupees on 1.5
liter bottle. Coca Cola gives special offers to consumers on special occasions like Ramadan
and Eid days instead of decreasing the price of the products, some special packs like
Pakkora Mix, Chat Massala, or Free Drinks with Liter Bottles are offered.

Market Penetration Pricing:

Prices in beverage industry are determined by the consumer. In an economy like that of
Pakistan, consumers tend to switch towards a low priced product. Coca Colas objective is to
target every consumer of the country so Coca Cola has to set its prices at such a level which
no one can offer to its consumers. That is why Coca Cola charges the same prices as are
being charged by its competitors. Otherwise, consumers may go for Pepsi Cola in case of
availability of Coca Cola at relatively high price.

Discount Price:
Coca Cola offers various discounts to those retailers who have the maximum sales of Coca
Cola products on daily, monthly and on seasonal basis. Coca-Cola products are often marked
down during sale periods and special occasions. This will generate sales and increase profits.

Psychological Pricing:
Most of the Coca-Cola products use this method of pricing. This pricing strategy makes
consumers perceive the products to be cheaper.

14
PLACE:
Coca-Cola is distributed in more than 200 countries, with more than 450 brands consisting of
2800 beverage products. Each of these products is packaged and formulated to meet the
consumer needs and preferences of its region or country. Coca-cola produces the product, but
relies on its distribution channel to get the product to the consumer, by working with bottling
companies and retailers. Coca-cola does not have control over the entire distribution channel,
but has strong governing principles for all of its suppliers to ensure they adhere to Coca-
Colas guidelines. In Pakistan, coca cola is available in all main as well as posh and backward
areas in big cities. It is available to some extent in posh areas of small cities. It is available in
all restaurants and hotels, colleges, universities, hospitals, bus stops, etc.

Distribution Channels: Coca Cola Company has two types of distribution strategies:
Indirect distribution:
The Coca-Cola Company uses intermediaries in its distribution. That is, the company does
not sell its products directly to its consumers.

Intensive distribution:
The Coca-Cola Company uses the intensive distribution strategy. The business's products are
sold in almost every outlet including: retail outlets, small shops, restaurants, petrol stations,
newsagents, schools, sports and entertainment venues.

PROMOTION:
How does Coke use marketing communication to reach customers? By making relationships
with not only consumers but also everyone who comes in contact with Coke products, Coca
Cola is able to market to a diverse amount of people. Coca Colas promotional mix includes
product, price, place, and promotion. Cokes product, all 2800 of them, varies from soft
drinks all the way to just water and, depending on the product, the price can vary quite much.
Just Coca-Cola alone is found all over the world. Cokes promotional efforts, of course, span
worldwide. One of the promotional strategies that Coke advertises comes right from the
website. It uses phrases like, Satisfying your needs and The choice is yours to let
consumers know that they are being taken care of and have control over what they consume.
In addition, Coke also offers links on their website to help the consumer learn about
hydration, sweeteners and taste.
15
Cokes promotion is very aggressive. It advertises using print media like newspapers,
magazines etc. for their promotional purposes, they use various kinds of media such as print,
broadcast, specialty, out of home and interactive. To promote Coca-Cola, Fanta and Sprite,
the company uses the following tactics or ways:

Coupons

Rebates

Advertisements with catchy slogans

Sponsorship

Prize schemes

Price cuts from time to time

Billboards

Promotion Strategies:
The business uses a range of promotional activities, which are described below:

Advertising:
The Coca-Cola Company uses advertising as its main source of increasing consumer
awareness. It mainly uses the television. There are many television advertisements on Coca-
Cola products. This source allows the company's products to reach a large audience. The
latest television advertisement for Coca-Cola soft drinks was the 'You know you want it'
advertisement. Recently, the company benefited from its involvement in the world's
celebrated games such as the Olympics and the FIFA World Cup.

Personal selling:
Every year, The Coca-Cola Company has a highly trained sales team, which acts as a
representative of the company to the retailers. This strategy helps to maintain service and
product loyalty. It has been demonstrated by the business to be highly effective.

Publicity:

16
In 2003, Vanilla Coke was released to the media as a news brief outlining the huge profit
achieved by the business. This helped The Coca-Cola Company to strengthen the image of
the business's products.

Place of distribution:
The Coca-Cola Company sells its products to bottling and canning operations, distributors,
fountain wholesalers and some fountain retailers. These then distributes them to retail
outlets, milk bar and corner stores, restaurants, petrol stations and newsagents.

OTHER PRODUCTS AND OFFERINGS OF THE

COMPANY
17
Energy Drinks:
For those with a high-intensity approach to life, Coca Colas brands of Energy Drinks
contain ingredients such as ginseng extract, guarana extract, and caffeine and B vitamins.

Juice Drinks:
We bring innovation to the goodness of juice in Coca Colas more than 20 juices and juice
drink brands, offering both adults and children nutritious, refreshing and flavorful
beverages.

Soft Drinks:

Coca Colas dozens of soft drink brands provide

flavor and refreshment in a variety of choices.
From the original Coca-Cola to most recent

introductions, soft drinks and Coca-Cola

Company are both icons and innovators in the
beverage industry.
18
Sports Drinks:
Carbohydrates, fluids, and electrolytes team
together in Coca Colas Sports Drinks,
providing rapid hydration and terrific taste for
fitness-seekers at any level.

Tea and Coffee:

Bottled and canned teas and coffees
provide consumers' favorite drinks in
convenient take-any where packaging,
satisfying both traditional tea drinkers and
today's growing coffee culture.

Bottled Water:
Smooth a n d e s s e n t i a l , o u r Wa t e r s a n d
Water Beverages o ff e r h y d r a t i o n i n i t s
p u r e s t form.

Minute Maid:
Minute Maid Pulpy Orange is an orange juice launched by the Coca Cola
Company.

Bacardi Mixers:
It is a co-branded product with the Bacardi rum manufacturer. There are
many tropical drinks available in the United States, Australia and Spain.

19
Maaza:
Maaza is a Coca Cola fruit drink brand
marketed in India and Bangladesh.

Sprite:
Sprite is a clear, lemon lime flavored, non-
caffeinated soft drink, produced by Coca Cola Company.

Fanta:
Fanta is a soft drink brand owned by The Coca Cola Company. It is
produced and distributed by Coca Cola Companys bottlers.

COCA-COLA MARKET OFFERING IN PAKISTAN

The Coca-Cola Company began operating in Pakistan in 1953. Coca-Cola, Fanta and Sprite
and Kinley are its brands in Pakistan. The Coca-Cola System in Pakistan operates through
eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited
(CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad,
Rahimyar Khan, Multan and Lahore. The remaining two plants, independently owned, are in

20
Rawalpindi and Peshawar. The Coca-Cola System in Pakistan serves 70,000 customers/retail
outlets. It employs 1,800 people. During the last two years, the Coca-Cola System in
Pakistan has invested over $130 million (U.S.)

MARKET POSITION OF COCA COLA IN PAKISTAN

On global level Coca-Cola is the most popular brand and market leader controlling 60% of
market share. In Pakistan Coca Cola is the market follower but still in a very strong and
stable position holding 36% of the local market with a growing and increasing market share
every year.

PORTFOLIO ANALYSIS
A tool by which the management identifies and evaluates the various businesses that makes
up the company. Coca Colas portfolio analysis is done with the BCG method & the results
are as follows:
BCG (BOSTON CONSULTING GROUP) APPROACH:
21
In the BCG approach, a company classifies all its SBUs according to the growth share
matrix.

Coke is one of the main product lines of the Coca Cola Company. It is the one which is
giving maximum revenues to it by different products in this line. Here we have classified
some of its major products in the BCG matrix on the basis of their fame and liking of the
people:

STAR:
Coke Classic is the basic product through which the Coca Cola Company got the fame. It is
one product, which gives the maximum revenue from all over the world. It is one flavor,
which has the maximum consumers all over the world. Coke has already worked a lot on it
by launching new flavors in it, but still it is a product they can turn as famous as coke
Classic.

CASH COW:
Fanta and Sprite are the products, which the Coca Cola Company can never think to stop
producing. It is the one which make the coke company a huge success; it was one product
which gives billions of dollars as revenue from world over. Whenever the company thinks of
launching its product in a country, the first product they launch is coke classic as they know
that if dont work here then nothing else can.

QUESTION MARK:
Question marks include products that are still not a big hit as they havent consumed much
time yet. Sprite 3G, Sprite Zero, Diet Coke and Kinley are the examples of these question
marks as they have not taken much time yet to get a hold of market & not even a large
percentage of people have tasted it. So it needs time to be fully tested by the company & the
22
company needs to think whether it should continue with the production or should divert to
something new.

DOG:
Dogs include products that have not worked well or which have been a source of loss.
Flavored Fanta is one product that was not a big hit. Even its not a long period which
flavored Fanta has consumed but, still there are signs that it wont be a success. So its better
for the company to get rid of it.

MAJOR COMPETITORS OF COCA COLA

The competitors to the products of the company mainly lie in the non-alcoholic beverage
industry consisting of juices and soft drinks. The key competitors in the industry are as
follows:

PepsiCo
Nestle
Cadbury Schweppes

PEPSI:
23
Caleb Brandhum, a North Caroline Pharmacist, structure Pepsi Cola in the 1890s as cure of
dyspepsia (indigestion). In 1902, Bradhum applied for a trade mark, issued ninety seven
shares of stock and began selling Pepsi syrup. In his first year of business he spent $1900 on
advertising, a huge sum that he sold only 8000 gallons of syrup. In 1905, Bradhum built
Pepsis bottling plant. By 1907 he was selling 10,000 gallons a year, two years later; he hired
a New York advertising agency. After passing through many troubles for some period now
Pepsi is a market leader in the international arena and is available in 187 nations throughout
the world.

NESTLE:
Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk
products, Baby foods and Chocolates. But the iced tea that is Nestea, which has been
introduced into the market by Nestle, provides a considerable amount of competition to the
products of the Company. Iced tea is one of the closest substitutes to the Cola as it is a thirst
quencher and it is healthier when compared to fizz drinks. The flavored milk products also
have become substitutes to the products of the company due to growing health awareness
among people.

CADBURY SCHWEPPES:
Cadbury Schweppes are joint force of Cadbury, founded in 1824 in U.K. and Schweppes of
Ireland founded in 1783. Cadbury Schweppes has operations in 14 countries around the
world.

OTHER COMPETITORS:
Mecca Cola
Amrat Cola
RC Cola
Qibla Cola
Future Cola
Kraft Foods, Inc.

24
 COMPETITIVE ADVANTAGES

1. BRAND NAME, SYMBOL AND BOTTLE SHAPE:

Brand name, symbol and bottle shape are distinctive features of Coca-Cola which give it an
edge over its competitors. (Even without name people can easily identify Cokes, Fanta, and
Sprites bottle from crowd.) They cannot be copied or imitated by others.

2. DIET COKE:
Coca-Cola has successfully addressed to the needs of its health conscious overweight
customers with the launch of diet Coke. Its competitors has yet to come up with and counter
diet Coke properly.
25
 3. SNATCHING AWAY CUSTOMERS :
In the market, Coke has been able to snatch large customers like Food Street, Pakistan
Railways, McDonalds, as well as sponsorship events (Basant and Eid concerts etc.) from
Pepsi, mainly due to its superiority in the following areas:
Cost: It is very economical, justifies performance,
Quality: No quality compromise, get the best all over Pakistan at any cost.
Innovation: new ideas for billboards design, sponsorship, changing their slogans time
to time, according to the needs of the market.
Speed: On time delivery all over Pakistan.

SWOT ANALYSIS
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats inside a company, project, or a business venture. It involves
identifying the internal and external factors that are favorable/ unfavorable for business to
succeed.

SWOT ANALYSIS OF COCA COLA

Strengths Weaknesses
Internal -Popularity -lack of popularity of many Coca
-well known Colas brands
-branding obvious and easily -Most are unknown and rarely seen
recognized -result of low profile or non-existent
26
 -A lot of finance advertising
-Customer loyalty -Health issues
-International Trade

Threats Opportunities

External -Changing health-consciousness -Many successful brands to pursue

attitude -Advertise its less popular products
-Legal issues -Buy out competition
-Health ministers -More brand recognition
-Competition (Pepsi)

STRENGTHS:
Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths
that are virtually incomparable. Coca Cola is known very well worldwide. It's branding is
obvious and easily recognized. Some people buy coke, not only because of its taste, but
because it is widely accepted and they feel like they are a part of something so big and
unifying. Overwhelming is the best word to describe Coca Cola's popularity. It is scary to
think that its popularity has been constantly growing over the years and the possibility that
there is still room to grow. If you speak the words Coca Cola, it would definitely be
recognized all around the world. Money is another thing that is the strength of the company.
Coca Cola deals with massive amounts of money all year. Like all businesses, they have had
their ups and downs financially, but they have done well and will continue to do well and
improve. Another strength that is very important to Coca Cola is customer loyalty. The 80/20
rule comes into effect in this situation. Eighty percent of their profit comes from 20% of their
loyal customers. Many people/families are extremely loyal to Coca Cola. It seems that some
people would drink coke like water and milk. With Coca Colas ability to sell their product
all over the world, customers will continue to buy what they know and what they likeCoca
Cola products.

WEAKNESSES:
Coca Cola is a very successful company, with limited weaknesses. However they do have a
variety of weaknesses that need to be addressed if they want to rise to the next level. One of
them is the lack of popularity of many of Coca Colas drinks. Many drinks that they produce
are extremely popular such as Coke and Sprite but this company has approximately 400

27
different drink types. Most are unknown and rarely seen available for purchase. These drinks
do not probably taste bad, but are rather a result of low profile or non-existent advertising.
Another weakness that has been greatly publicized is the health issues that surround some of
their products. It is known that a popular product like coke is not very beneficial to your
body and your health. With todays constant shift to health products, some products could
possibly loose customers. This new focus on weight and health could be a problem for the
product that is labeled harmful to your health.

OPPORTUNITIES:
Coca Cola has a few opportunities in its business. It has many successful brands that it
should continue to develop and pursue. Coca Cola also has the opportunity to advertise its
less popular products. Another opportunity is the ability of Coca Cola to buy out their
competition. This opportunity rarely presents itself in the world of business. However, with
Coca Colas power and success, such a task is not impossible. Coca Cola has bought out a
countless number of drink brands. An easy way to turn their profit into your profit is too buy
out their company. Brand recognition is the significant factor affecting Cokes competitive
position. Coca Cola is known well throughout 90% of the world population today. Now Coca
Cola wants to get their brand name known even better and possibly get closer to 100%. It is
an opportunity that most companies will ever dream of, and would be a supreme
accomplishment. Coca Cola has an opportunity to continue to widen the gap between them
and their competitors.
THREATS:
Despite the fact that Coca Cola dominates its market, it still has to deal with many threats.
Even though Coca Cola and Pepsi control nearly 40% of the entire beverage market, the
changing health-consciousness attitude of the market could have a serious effect on Coca
Cola. This definitely needs to be viewed as a dominant threat. In todays world, people are
constantly trying to change their eating and drinking habits. This could directly affect the
sales of Coca Cola products. Another possible issue is the legal side of things. Coca Cola has
to be careful with lawsuits. Health ministers could also be looked at as a threat. Again, some
people may try to exploit the unhealthy side of Coca Cola products and could threaten the
status and success of sales. Other threats include competition. Coca Colas main competitor,
Pepsi, sells a very similar drink. Coca Cola needs to be careful that Pepsi does not grow to be
a more successful drink.

28
 GROWTH STRATEGY
Growth is the main objective of every organization. A company can identify their growth
through the product-market expansion grid. The approach is known as the ANSOFF grid.
Coca Cola Company can also identify its expansion through the ANSOFF approach:

29
MARKET PENETRATION:
Market Penetration is the strategy, which every company has to opt when it reaches a
maximum height of growth. Coca Cola in Pakistan is doing market penetration through
selling its products to business buyers, who are huge multinational organizations like KFC,
McDonalds, Subway, Dunkin Donuts and many more. They are selling Coca Cola as the
only beverage in their restaurants.

MARKET DEVELOPMENT:
Market Development is exploring new markets for the products you are already selling.
Many flavors of Coca Cola are not being sold in Pakistan. Coca Cola can develop a new
market if they introduce those flavors in Pakistan. Many people in Pakistan want a change in
the beverage industry, as they are having the same flavors from many years.

PRODUCT DEVELOPMENT:
A company takes a risk when it does Product Development-- there is a chance that it will
lose its customers or there will be a crowd of people demanding their product. Coca Cola
Company can do product development by introducing the new flavors in Pakistan which are
not sold anywhere in the world by the coke company.

DIVERSIFICATION STRATEGY:
Diversification strategy is one which every company really wants to practice. There are lots
of chances of growth but the risk factor is also there. The company can manufacture
products, which are not manufactured by it before. Coca Cola is only dealing in beverages
but it can also manufacture its own snack items as the company name is known almost all
over the world. So it can cash the name by producing the items, which are eaten with the
beverages.

MARKETING STRATEGY
Our local marketing strategy enables Coke to listen to all the voices around the world asking
for beverages that span the entire spectrum of tastes and occasions. It's a special thing to
have billions of friends around the world, and we never forget it.

30
Going Global:
We plan to take up global marketing strategy through standardization and integration of
many services to ensure uniform growth of the Coke Company throughout the world. From
now onwards, global marketing strategies will be incorporated not in a specific area or
country, but other countries also which were neglected till now, will get 100% recognition to
the Coke company.

Quality Promises of Coke:

Quality is our highest business objective. Though there are many problems in quality, our
quality department has taken an immediate action to ensure that our consumers do not lose
interest.

Targeting Young Minds:

Cokes commercials are basically based on youngsters. So, the young generation is the target
market of Coke because they want to represent Coke with the youth and energy.

Change of Bottle Designs:

As we are targeting the young minds, we are also changing the design of the bottle to attract
more and more young people. As the bottles of the Coke Company have always been simple,
we are planning to launch designer bottles with new attractive tastes.

Fun Island:
We are going to provide a real fun time in a private island of Coke Company. This island will
be especially meant for college couples on special occasions. On the island, well provide
fun stuff like Coke fountain, Coke Halloween parties, Coke games and Coke competitors.

Cocateria:
We are going to open worldwide cafeterias like cocateria, where we are going to have all the
varieties of drinks only of the Coke Company, including refreshments.

Coca Cabs:

31
We are providing private cabs for tourists for their personal use with limited free coke drinks
in the cab for the customers.

Coke Hookah:
We are planning to introduce a coke flavored hookah. This flavored hookah combines the
tastes of generations which are not harmful and are suitable for girls, ladies and old people.

Coke Pumps:
We are going to install coca pumps all over the world. This will reduce the cost price of the
soft drink compared to the bottled price and will create more demand in the market.

MAJOR SEGMENTS
Major segments are basically people who take this drink daily and those areas where the
demand is higher than the other areas. There are so many people who take this drink daily
and those who take weekly and those who take less often are always there as well. So, their
basic segments are those who take this drink regularly.

TARGET MARKET
The primary target market of the Coca-Cola Company is all consumers of all nations that
have a thirst for a high-quality beverage from a reputable brand that cares about small
communities and saving the environment. The Coca-Cola Company is well known for
advertising to persons of all ages, genders, incomes, ethnicity and lifestyles. Nevertheless,
more specifically, over the last decade the Coca-Cola Company has focused on a secondary
target market, based on specific psycho-graphic characteristics, of consumers that are health
conscious and interested in buying products to support their overall wellness. The Coca-Cola
Company has reached this market through many product lines, and has customized their
website to provide healthy resources and marketing of products that are considered smart
choices.

32
CONCLUSION
Coca-Cola is no doubt the heart beat of Pakistanis. We have concluded from this detailed
report that despite the fact Coca Cola currently occupies the market leadership position
overall, it does not guarantee that the company will sustain its position in the market in the
future as well. In Pakistan as compared to Pepsi, Coca-Cola has less number of consumers as
Pepsis market share in Pakistan is approximately 54% where as Cokes market share is
hovering about 36%. Hence the conclusion is that Coca-Cola must enhance factors such as
relationship marketing, innovation and technology especially in Pakistan to attain market
leader position in this region as well.

33
RECOMMENDATIONS
After completing our report, we have come up with following recommendations for the
Coca Cola Company, which are as follows:

Currently in Pakistan there are only two flavors of Coke available. The company can
extend their portfolio by introducing new flavors.

Coca Cola Company should try to emphasize more on providing their infrastructure in
the market to facilitate their customers.

According to a survey conducted by an international firm, Pakistani people like little

bit sweeter cola drink. So for this, the Coca-Cola Company should think about
bringing a new product according to the local demand.

Marketing team should try to increase the availability of Coke in rural areas. They
should also focus the old people.

Coca Cola Company should think about producing Coke cans locally as well because
currently coke cans are only smuggled from abroad and sold at a high price.

Now young generation has a trend to drink 2 regular bottles of Coke at same time, so
for this the company should introduce liter disposable bottles.

34
WEBLIOGRAPHY
www.cocacola.com

www.thecocacolacompany.com

www.wikipedia.com

www.google.com

BIBLIOGRAPHY
Principles of Marketing, by Philip Kotler

35