Anda di halaman 1dari 107

TABLE OF CONTENTS

CONTENTS 1. Mission statement 2. Introduction. 3. Coca Cola. a. Coca Cola International. b. History. 4. Management. 5. EXTERNAL MARKETING MIX 6. Market share. 7. Financial report. 8. Dividends and Cash Plan. 9. Products. 10. Market mix of Coca-Cola 11. Strategic planning. 12. Bottlers owned by Coca cola 13. Coca Cola Pakistan. 14. Major Competitors a. Pepsi b. History. c. Financial assets. y Market share. y Financial report. y Products. y Methodology 15. Some basic information regarding marketing of coke a. Target market: b. Major segments: c. Factors effecting sales: d. Major competitors: e. Strategies of quality: f. Threats from competitors: g. Targets that would like to attain: h. Expanding target market i. Threats and opportunities for price: j. Strategies of getting goals i.e. high profits: k. Marketing strategy: l. Expectations for the coming year: m. How coke determine the yearly budget: 16. Marketing strategies 17. Pest analysis 1

The Mission Statement of the Coca Cola Company


Our mission statement is to maximize shareowner value over time. In order to achieve this mission, we must create value for all the constraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. Consumer demand drives everything we do. 2. Brand Coca Cola is the core of our business 3. We will serve consumers a broad selection of the nonalcoholic ready-todrink beverages they want to drink through out the day. 4. We will be the best marketers in the world. 5. We will think and act locally. 6. We will lead as a model corporate citizen. The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and create economic value added by improving economic profit. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these
2

customers and helping them grow their beverage businesses. We strive to understand each customers business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. There are nearly 6 million people in the world who are potential consumers of our companys product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time.

COCA COLA INTERNATIONAL


HISTORY:
Coca-Cola Enterprises, established in 1886, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. The Coca-Cola Company traces its beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its companyowned operations with two large ownership groups that
4

were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form CocaCola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986. In December 1991, a merger between Coca-Cola Enterprises Company, and the Johnston helping Coca-Cola accelerate Bottling bottler Group, Inc. (Johnston) created a larger, stronger again consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion The Coca-Cola Company is the worlds largest beverage company. They operate in more than 200 countries & markets more than 2800 beverage products. Headquartered at Atlanta, Georgia, they employ approximately 90500
5

employees all over the world. It is often referred to simply as Coke or (in European and American countries) as Cola or Pop.

MANAGEMENT:
The hierarchy of Coca Cola Company is as follows.

Chairman Board of governors

Vice Chairman and chief operating officer

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

MARKET SHARE:
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market.

GLOBAL MARKET SHARE:


The following table can show the worldwide operating segments.
(Table) Unit case growth Nonalcoholic drink 2002
Company share

All commercial Beverages 2002


Compan y share Compan y per capita Income

10 year compound annual growth


Compan y Industry

5-year compound annual growth


Compan y Industry

2001 annual growth


Compan y Industry

6%

5%

5%

5%

4%

4%

18%

9%

70

This shows that the market of the company is geographically vast and it is controlling it with great success. In 2002, the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume, that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to
8

their future success. Thus they are increasing their market day by day. The operation income earned by Coca Cola Company can be illustrated by the following pie chart.
(Figure)

This strategy has worked a lot and it has helped them to become the Worlds leading Soft Drink Company. The global unit sale of the Coca Cola Company is increasing from the last ten years. The data of the global unit sale of the Coca Cola Company can be represented by following chart.
(Figure)
12 10 8 6 4 2 0 1971 1981 1991 2002 unit sale in billions

So there is positive growth in the market of the Coca Cola Company. There is a worldwide volume increase by 4% with strong international growth of 5%. This is only due to the
9

innovative marketing programmers, which has deepened the relationship of the customers and Coca Cola. The financial health and success of their bottling partners is a critical component of The Coca-Cola Company's ability to build and deliver leading brands.

10

In 2002, the company had worked with their bottlers to turn good intentions into reality by improving the system economics. The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. The main reason behind this relationship is to continue realizing shared opportunities for growth, with closer coordination of operations including customer relationships, logistics and production.

11

EXTERNAL MARKETING ENVIRONMENT (PEST ANALYSIS)


Political Analysis for Coca-Cola Non-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of regulations. There are potential fines set by the government on companies if they do not meet a standard of laws. The following are some of the factors that could cause CocaCola company's actual results to differ materially from the expected results described in their underlying company's forward statement:y Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions. y Changes in the non-alcoholic business environment. These include, without limitation, competitive product and pricing pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors. y Political conditions, especially in international markets, including civil unrest, government changes and
12

restrictions on the ability to transfer capital across borders. Political structure and legal considerations also have impinged on Coco-Cola Companys strategies. Governments of some Arab nations boycotted Coca-Colas products due to a political dispute and discontented with the company for maintaining distributors in Israel.

Economical Analysis Being flexible and willing to change to satisfy consumers needs, has enabled Coca-Cola to exploit the economies of scale that was gained by its global marketing and at the same time making its products appeal to local taste, which these have earned the company an enormous profits quarterly. As Coca-Cola has expanded over the decades or even nearly a century, the company has benefited from the various cultural insights and perspectives of the societies in which business is done. No doubt of the remarkable experience it has, it is still very committed to local markets,
13

to paying attention to what people from different cultures and backgrounds like to drink, and where and how they like to drink it, to remain competitive and to develop more new drinks to satisfy its markets.

Now, the estimated brand equity of Coca-Cola is $84billion, market share of more than 50 percent in beverage industry globally and about 70 percent of its income comes from countries outside United States. Every 10 seconds, 126,000 people in the whole world, choose to reach out for one of The Coca-Cola Company brands, and it is the companys mission to make that choice exciting and satisfying, every single time. Previously the U.S. economy was strong and nearly every part of it was growing and doing well. However, things changed. Before the attacks on September 11, 2001, the United States was starting to see the economy recover slightly and it is only just recently that they achieved the economic levels. Consumers are now resuming their normal habits, going to the malls, car shopping, and eating out at restaurants. However, many are still handling their money cautiously. They believe that with lower inflation still to come, consumers will recover their confidence over the next year. As researching for new products would cost less the CocaCola Company will sell its products for less and the people will spend as they would get cheap products from Coca-cola.

14

Social Analysis for Coca-Cola Foreign environment factors have influenced the CocaColas strategies in international marketing. Culture has a tremendous effect on peoples preferences and perception. Language is one of the aspects of culture that marketers must take care of, in term of translating product name, slogans and promotional messages so as not to convey the wrong meaning. Coca-Cola did not look much into this aspect when entering into the markets of countries like China and Taiwan as the literal translation of Coca-Cola in Chinese characters mean, bite the wax tadpole. Changes are necessary in international marketing for consumers products, as it is important that the products suit ones taste, preferences and fulfill ones needs. Coca-Cola has continued changing, improving and developing new drinks to appeal to local tastes. After discovering that Coke did not appeal as much to Japanese consumers, Coca-Cola developed over 30 new drinks for the Japanese market, which inclusive of Asian tea, English tea, coffee and fermented-milk drink. In China, Coca-Cola has also begun the similar strategy of introducing beverages developed for the taste buds of local market. It launched a fruit juice drink called Tian Yu Di (Heaven and Earth) specifically for the Chinese market with planning of introducing the market with a Chinese iced tea and soy milk drink.
15

Many U.S. citizens are practicing healthier lifestyles. This has affected the non-alcoholic beverage industry in that many are switching to bottled water and diet colas instead of beer and other alcoholic beverages. Also, time management has increased and is at approximately 43% of all households. The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life. Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. There is a large population of the age range known as the baby boomers. Since many are reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages.

16

Technological Analysis for Coca-Cola Some factors that cause company's actual results to differ materially from the expected results are as follows:
y The effectiveness of company's advertising, marketing and promotional programs. The new technology of internet and television which use special effects for advertising through media. They make some products look attractive. This helps in selling of the products. This advertising makes the product attractive. This technology is being used in media to sell their products. y Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier to carry and you can bin them once they are used. y As the technology is getting advanced there has been introduction of new machineries all the time. Due to introduction of this machineries the production of the Coca-Cola company has increased tremendously then it was few years ago y Coca-Cola has six factories in Britain which use the most state-of the-art drinks technology to ensure top product quality and speedy delivery. Europe's largest soft drinks factory was opened by CCE in Wakefield, Yorkshire in 1990. The Wakefield factory has the technology to produce cans of Coca-Cola faster than bullets from a machine gun
17

MARKET SHARE BY AREA:


Coca Cola is the world-renowned soft drink and the company is currently operating through out the world. The world wide total is about 17.8 billion. The operation review according to the segments is as follows. Operation Review (2002 worldwide unit case volume by operating segment) NORTH LATIN AMERICA AMERICA 30% 25% EUROPE & MIDDLE EAST 22% ASIA AFRICA

17%

6%

18

NORTH AMERICA LATIN AMERICA EUROPE & MIDDLE EAST ASIA AFRICA

So the volume is least in the Africa and most in the North America. The data about the market share of this company area wise is given in the following table. The above table shows the geographical earning of the Coca Cola Company and from this data; we can find out that the customers of Coca Cola are increasing which is shown by the companys per capita income. Unit case equals 24 eightounce servings. The column, which shows the non-alcoholic beverages consist of commercially, sold beverages, as estimated by the Company based on available industry sources. The country column is derived from The Company's unit case volume while the industry column includes nonalcoholic ready-to-drink beverages only, as estimated by the Company based on available industry sources.
(Table)

19

Country

Unit case growth

10 year 5-year compound compound annual annual growth growth


Compan y Industry Compan y Industry

2002 annual growth


Compan y Industry

Nonalcoholi c Drinks 2002


Compan y share

All commercial Beverages

2002
Compan y share Company per capita Income

North America United States Latin America Argentin a Brazil Chile Mexico Europe & Middle East Eurasia France German y Great Britain Italy Middle East Spain Asia Africa

4 4 6 7 5 9 7 6

5 5 7 4 5 6 10 3

3 3 6 6 3 5 8 5

3 3 6 2 6 3 9 3

2 2 3 7 3 (2) 2 2

2 2 4 2 5 3 5 4

22 23 24 20 23 56 22 12

15 16 15 10 13 23 18 6

398 419 205 236 144 336 462 72

17 8 1 8 1 12 6 7 7

8 3 2 2 3 12 4 6 6

6 9 (1) 11 4 7 8 6 8

5 3 1 2 3 5 5 7 3

(14) 7 (6) 8 2 4 4 10 10

1 3 1 3 2 8 4 7 6

14 9 14 17 9 8 17 14 34

5 5 7 6 6 3 12 5 11

39 110 193 193 104 17 264 23 34

In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billion and the average consumer enjoys close to two servings of our products each month. Through an intense focus on Coca-Cola, innovation and new
20

beverages, the company has achieved volume growth of 10 percent in 2002. With developing economies and populations, this region has strong long-term potential, and the company is building an exciting family of beverage brands in addition to expanding the popularity of our core
brands, led by Coca-Cola. In China, for example, sales of Coca-Cola increased 6 percent. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart.
(Figure)

So the company is emphasizing more in this area and is trying to develop a strategy, which can increase the growth of the consumption of Coca Cola by the people of Asia. Among the countries of Asia, Japan has the highest percentage, which is about 29%. Among others, Pakistan, India and Bangladesh are those countries where the average consumption is increasing day by day.

21

FINANCIAL REPORT:
This company is financially very strong. It is due to the strong finances, the company is still surviving the ups and down of the business world. The financial report of Coca Cola Company of the year 2001 and 2000 along with the percentage change is as follows.
(Table) Year Ended December 31, (In millions except per share data, ratios and growth rates) 2010 2009 Percentage change

Net operating revenues Operating income Net income Net income per share (basic) Net income per share (diluted) Net cash provided by operating activities Business reinvestment Dividends paid Share repurchase activity Free cash flow Return on capital Return on common equity Unit case sales (in billions) International operations North America operations
22

20,092 5,352 3,969 1.601 1.601 4,110 (963) (1,791) (277) 3,147 26.6% 38.5%

19,889 3,691 2,177 0.882 0.882 3,585 (779) (1,685) (133) 2,806 16.2% 23.1%

1% 45% 82% 82% 82% 15% 24% 6% 108% 12% -

12.5 5.3

11.9 5.2

5% 2%

Worldwide

17.8

17.1

4%

2010 basic and diluted net income per share includes a noncash gain of $.02 per share after taxes, which was recognized on the issuance of stock by Coca-Cola Enterprises Inc., one of the equity investors of this company. 2010 basic and diluted net income per share includes the following charges: y $.24 per share after income taxes related to an organizational Realignment. y $.19 per share after income taxes related to the Company's portion of charges recorded by the investors of the company. y $.16 per share after income taxes related to the impairment of certain bottling, manufacturing and intangible assets. y $.05 per share after income taxes related to the settlement terms of a discrimination lawsuit. y $.01 per share after income taxes related to incremental marketing expenses in Central Europe. These charges are partially offset by a gain of $.05 per share after income taxes related to the merger of Coca-Cola Beverages plc and Hellenic Bottling Company S.A. and $.04 per share after income taxes related to benefits from a tax rate reduction in Germany and from favorable tax planning strategies.

23

DIVIDEND AND CASH INVESTMENT PLAN: The Dividend and Cash Investment Plan permits shareowners of record to reinvest dividends from Company stock in shares of The Coca-Cola Company. The Plan provides a convenient, economical and systematic method of acquiring additional shares of our common stock. All shareowners of record are eligible to participate. Shareowners also may purchase Company stock through voluntary cash investments of up to $125,000 per year. At year-end, 76 percent of the Company's shareowners of record were participants in the Plan. In 2010, shareowners invested $36 million in dividends and $31 million in cash in the Plan.

24

COMPANY STATISTICS:

The statistics of this company is impressive. Since it is operating through out the world that is why the number of employees and the bottling equipments is highest among the other bottling companies. There is a constant increase in every aspect when we compare the statistics of 2001 and the statistics of 2002. This is because; Coca Cola Company is increasing its volume day by day. The expansion of this company, which shows the success of Coca Cola brands, results in the percentage change in the statistics of the two years. The statistics is as follows.
(Table) 2010 Equivalent cases Bottle and cans Fountain Employees Vehicles Cold drink equipments Facilities Production only Distribution Combination Total Percent of North America population coverage Number of States of Operation Bottle and can equivalent case package distribution Cans Non-refillable bottles Refillable bottles Capital structure Net debt to total capital ratio EBITDA interest coverage Weighted average cost of debt Key Statistics Constant territory bottle and can volume growth Bottle and can net revenues per case change Bottle and can cost of sales per physical case change Reported EBITDA (in billions) Reported EBITDA change Capital expenditures( in billions) %-age of net operating revenues 4.2 billion 87% 13% 72,000 54,000 2.4 million 25 385 53 463 80% 46 44% 52% 4% 63% 3 6.3% 3% Flat 1 $1.95 (18)% $0.97 6% 2009 3.8 billion 87% 13% 67,000 52,000 2.3 million 25 361 50 436 72% 46 45% 51% 4% 59% 3 6.8% % 2% % $2.39 9% $1.18 8%

25

Coverage of North American Can/bottle volume

83%

74%

EBITDA is the Earnings before interest, taxes, depreciation, and amortization, and other non-operating items.
y Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable securities. y Equivalent Case or Unit Case is the physical case and fountain gallons converted to a standard unit of measure defined as 24 eight-ounce servings or 192 ounces per equivalent case sold by Coca-Cola Enterprises.

26

PRODUCTS:
There are different brands of the Coca Cola Company, which are currently in use through out the world. This company not only deals in the carbonated drinks but also other drinks. While launching its product, the marketing team considers the culture of the country.

Major brands of coca cola


y Coke y Sprite y Fanta y Diet coke y Coke classic

27

The over all volume of this company is as follows.


(Figure)

The commitment of the company is to devote resources to water only in markets where it expects profitable growth. This strategy has paid dividends. The company has successfully applied its approach to brands in several key markets, including Ciel in Mexico, Mori No Mizudayori in Japan, Bonaqua in Russia and Kinley in India. Backed by a strong network of bottling partners through out the United States, Dasani became the nation's fastest-growing water brand. In Eurasia, the entire Turkuaz brand team worked together to launch Turkey's first purified water brand. This year, Coca-Cola Company also successfully energized a major piece of its beverage strategywater. By the end of 2009, its bottled water volume exceeded 570 million unit cases, making it the second biggest contributor to the growth of the company after carbonated soft drinks. Three of the water brands, Dasani, Ciel and Bonaqua each achieved sales of over 100 million unit cases for the year.
28

In 2009and 2010, the company has also made good progress in coffees and teas. Beverage Partners Worldwide, the renewed and strengthened marketing partnership with Nestl S.A., began operations in 2001. This partnership combines Nestl's knowledge in life science, research and development with the expertise of Coca Cola Company in brand building and distribution. At the same time, the company grew Georgia coffee in Japan by 3 percent through award-winning marketing in a category that was flat for the year. Also in Japanwhere The Coca-Cola Company is the leader in the total tea category, the second-largest category in the non-alcoholic ready-to-drink segmentit launched Marocha Green Tea. With sales of 46 million unit cases for the year, Marocha Green Tea is the fastest-growing product in the fastestgrowing category: green tea. The popularity of Marocha is also recognized by the industry with a leading trade journal naming Marocha the most popular new food and beverage product of the year.

29

Know the most recognized word on the planet after OK!

Among the soft drinks Fanta and Sprite become successful along with the major brand Coca Cola and Diet Coke. In key markets, the company has created new packaging sizes to satisfy consumer demands. Increasingly, Mexican families have lunch together at home. The average Mexican household drinks two-and-a-half liters or more of soft drinks during that break, while a two-liter bottle was the largest available package. So the company
30

introduced a convenient 2- liter bottle to select regions, contributing to the sale of nearly 1.5 billion unit cases of Coca-Cola in Mexico this year. This larger bottle will complete its nationwide rollout in 2002. In China, Coca-Cola is an integral part of holiday celebrations and the family gettogethers that accompany such events. Through an intense focus on Coca-Cola, innovation and new beverages, it has achieved volume growth of 10 percent in 2001. In China, sales of Coca-Cola increased by 6 percent. In the United States, recognizing that consumers often enjoy their diet Coke with a slice of lemon, the company "bottled" the concept. The resultdiet Coke with lemoncontributed to volume growth of 4 percent for the number-one diet. Soft drink in North America: diet Coke. The company increased its two largest bottle sizes during the 2001 holidays, and festival packaging helped drive a 6 percent volume increase for Coca-Cola. The packaging innovations do not just involve resizing. The company has also responded to consumers' changing fashion styles with new bottles. With brands such as Minute Maid, Hi-C, Simply Orange and Disney juices and juice drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo in Africa. This year, the company re-launched its global sports-drink business, investing in new products, packaging, positioning and marketing. The results speak for themselves: its global sports drinks, led by Powerade and Aquarius, grew by 13 percent in 2010, nearly double the growth rate of the worldwide sports-drink category. Revitalized in the United
31

States, the company introduced Powerade in nearly every major Western European market, including Great Britain, Germany and Spain, as well as in Mexico and Latin America. The company launched 27 products in 2001. The commitment of the company to packaging innovation also resulted in new initiatives for our fountain business, a channel through which many consumers enjoy Coca-Cola. In the United States, the company developed Fountain, a total beverage dispensing system that is more flexible and more reliable. Two years of research resulted in a dispensing system that provides exceptional beverage quality, easy to upgrade technology, brand and graphic customization and improved reliability.

32

MARKETING MIX OF COCA-COLA

33

MARKETING MIX OF COCA-COLA


Firstly, we will look at how Coca-Cola has used their marketing mix. The marketing mix is divided up into 4 parts; product, price, promotions and place. 1. Product: The product (Coca-Cola soft drink) includes not just the liquid inside but also the packaging. On the productservice continuum we see that a soft drink provides little service, apart from the convenience. Soft drinks satisfy the need of thirst. However, people are always different, some want more and others want less. Therefore Coca-Cola has made allowances for that by providing many sizes. We also have particular tastes, and again they have provided several options. So, although thirst is what is needed to be satisfied and that is the core benefit, we are receiving other benefits in the taste and size. Coca-Cola has developed several different flavours and sizes as mentioned above, but also several brands such as Sprite, Lift, Fanta and Diet Coke which increase the product line length, thus making full use of the market to maximize sales. The product is convenient, that is - bought frequently, immediately, and with a minimum of comparison and buying effort.The appearance of the product is eye catching with the bright red colour. It has a uniquely
34

designed bottle shape that fits in your hand better, and creates a nicer & more futuristic look. The quality of the soft drink is needed to be regularly high. Sealed caps ensure that none of the "fizz" is lost. The bottles are light, with flexible packaging, so they won't crack or leak, and are not too heavy to casually walk around with. The cans are also light and safe. The product range of Coca-Cola includes:
y y y y y y y y y y y y y y

Coca-Cola, Coca-Cola classic, caffeine free Coca-Cola, diet Coke caffeine free diet Coke, diet Coke with lemon Vanilla Coke, diet Vanilla Coke, Cherry Coke, diet Cherry Coke, Fanta brand soft drinks, Sprite, diet Sprite Sprite Remix

35

36

Product Lifecycle of Coke:


Product life cycle has four phases 1. Introduction 2. Growth 3. Maturity 4. Decline. The markets where Coke is a dominant player are United States of America, Europe and Asia, Africa. There is a vast difference in terms of above given phases for example, in U.S.A & Europe it has reached maturity stage where it cant expand its market more but if we consider Asia, it is still in the growth phase. Coca-Cola is currently going through the maturity stage in Western countires. This maturity stage lasts longer than all other stages. Management has to pay special attention to products during this stage of the product life-cycle. During the maturity stage, products usually go through a slowdown in sales growth. According to Coca-Cola's 2001 annual report, sales have increased by 1.02% compared to last year. This percentage has no comparison to the high level of growth Coca-Cola enjoyed during its growth stage. To add a little variation Coca-Cola took the Coca-Cola Classic and added variations to it, including Cherry Coke, Vanilla Coke and Diet Coke. Also Coca-Cola went from 6-oz. glass bottles to 8-oz. cans to plastic liter bottles, all helping increase consumption.

37

COCA-COLA

2. Price: Like any company who has successfully endured a century of existence, Coca- Cola has had to remain tremendously fluent with their pricing strategy. They have had the privilege of a worthy competitor constantly driving them to be smarter, faster, and better. A quote from Pepsi Co's CEO "The more successful they are, the sharper we have to be. If the Coca-Cola Company didn't exist, we'd pray for someone to invent them." states it simply. The relationship between Coca-Cola & Pepsi is a healthy one that each corporation has learned
38

to appreciate. Throughout the years Coca-Cola has made many pricing decisions but one might say that their ultimate goal has always been to maximize shareholder value. As cola consumption has decreased in the US colas have come to realize the untapped international market. In 2003 both Coke and Pepsi had a solid presence in India and had each introduced a 300mL bottle. In order to grab market share Pepsi began to drop prices (even with summer approaching, which was contrary to policy in America). Shortly thereafter, Coca-Cola decided to drop their prices slightly, but focused on the reduced price point of their 200mL container. Coca- Cola planned to use the lower price point to penetrate new cities that were especially price sensitive. The carbonated soft drink market in India is nearly 37% of the total beverage market there. This low price strategy was not unfamiliar to Coca-Cola. Both Coke & Pepsi utilized a low price strategy in the early 1990s. After annihilating the low price store brands, Coke chose to reposition itself as a "Premium" brand and then raise prices. Coca-Cola products would appear, on the shelf, to have the most expensive range of soft drinks common to supermarkets, at almost double the cost of no name brands. This can be for several reasons apart from just to cover the extra costs of promotions, for which no name brands do without. It creates consumer perceptions and values. When people buy Coca-Cola
39

they are not just buying the beverage but also the image that goes with it, therefore to have the price higher reiterates the fact that the product is of a better quality than the rest and that the consumer is not cheap. This is known as value-based pricing and is used by many other industries in attracting consumers. In India, the average income of a rural worker is Rs.500 a month. Coca Cola launched a 200 ml bottle for just Rs.5, an affordable amount on the pockets of the rural audience.

3. Place: Coca-Cola entered foreign markets in various ways. The most common modes of entry are direct exporting, licensing and franchising. Besides beverages and their special syrups, Coca-Cola also directly exports its merchandise to overseas distributors and companies. Other than exporting, the company markets internationally by licensing bottlers around the world and supplying them with the syrup needed to produce the product.
40

There are different types of franchising. The type that is used by Coca-Cola Company is manufacturersponsored wholesaler franchise system. It is very comparable to licensing but the only difference is that the finished products are sold to the retailers in local market. Coca Cola has managed their companys marketing and sales strategy within channels. Have you ever considered the significance of the Coke vending machine to the success and profitability of the Coca Cola company? This channel is direct to consumer and vending machines often have little to no competition and no trade or price promotions. The Coke Company operates three primary delivery systems for its business channels:
y Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and Club stores; y For smaller channels Coke does advanced sale delivery for convenience stores, drug stores, small supermarkets and on-premise fountain accounts. y Full service delivery for its full service vending customers.

Key Channel Listing


y Supermarkets y Convenience Stores y Fast Food
41

Petroleum Retailers Chain Drug Stores Hotels/Motels/Resorts Mass Merchan-disers U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and DECA y Vending
y y y y y

In 2006, the Company began changing its delivery method for its route delivery system. Historically, the Company loaded its trucks at a warehouse with products the route delivery employee would deliver. The delivery employee was responsible for pulling the required products off a side load truck at each customer location to fill the customer's order. Coke began using a new CooLift delivery system in 2006 in a portion of the Company's territory which involves pre-building orders in the warehouse on a small pallet the delivery employee can roll off a truck directly into the customer's location. The CooLift delivery system involves the use of a rear loading truck rather than a conventional side loading truck. Coke will continue to rollout this program over the next several years since they expect such significant savings and more efficient deliverys. This is a huge investment for Coke. The company works through independent bottlers of Coke. They work in coordination with the Coke company which produces the 'secret formula concentrate' and
42

ships to the distributors and bottlers for final processing and packaging prior to shipment to the stores. Coca-Cola floods all possible retailing stores in satisfying the third part, place. In supermarkets and convenient stores, Coca-Cola products are always easy to identify, and usually make up the greater proportion of options to buy. This increases their market exposure through effective use of the retailers. For a FMCG it is important that they can be found and purchased easily. With many automatic Can machines located in many sports stadiums and shopping malls, you don't even need to go to a store to buy a drink. This greatly enhances the speed of purchase. The company produces concentrate, which is then sold to various licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans and bottles to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and Western Europe and food service distributors.

43

The Coca-Cola Company only produces a syrup concentrate, which it sells to various bottlers throughout the world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sugar (or artificial sweeteners) and then carbonate it before filling it into cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. The Coca-Cola Company owns minority shares in some of its largest franchises, like Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company (CCHBC) and Coca-Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in the world. Since independent bottlers add sugar and sweeteners, the sweetness of the drink differs in various parts of the world, to cater for local tastes.

44

STRATEGIC PLANNING
In the year 2002, the company had a great success, as the strategy worked which resulted in making Coca Cola Company the worlds leading company. In 2001, company accomplished the crust of its strategy as
y Worldwide volume increased by 4 percent with strong

international growth of 5 percent and clear signs that our North American business is growing solidly and predictable.
y Earnings per share grew by 82 percent, as we delivered

on our commitment to create volume growth while aggressively


y Return on common equity grew from 23 percent in 2000

to 38 percent this year.


y Return on capital increased from 16 percent in 2000 to

27 percent in 2001.
y The company has generated free cash flow of $3.1

billion, up from $2.8 billion in 2000, a clear indication of its underlying financial strength. The strategy for the future of the company is very straightforward. The marketing strategy for the year 2002 is as follows,
45

y Accelerate carbonated soft-drink growth, led by Coca-

Cola.
y Selectively broaden the family of beverage brands to

drive profitable growth.


y Grow system profitability and capability together with

our bottling partners.


y Serve customers with creativity and consistency to

generate growth across all channels.


y Direct investments to highest potential areas across

markets.
y Drive efficiency and cost-effectiveness everywhere.

46

MAJOR COMPETITOR PEPSI INTERNATIONAL


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

1990-2002
47

The advertisement of the Pepsi changes to, You got the right one baby, Uh-Huh!.With the extensive usage of the stars in the adds, the popularity of Pepsi increase. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Outside the United States, Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in more than 190 countries and territories. In Asia, they selected Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the operations carried out in South West Asia. As in Pakistan, they only entered beverage industry. They have eleven bottlers covering whole Pakistan. The plant operating here is Riaz Bottlers (Pvt) LTD. This plant was established at Lahore in 1974. The total capacity of the plant is 30,000 cases per day. They have four filling lines in the plant operating on the three shift bases. Each shift is of eight hours. They have permanent work force of 750 people and they employee approximately 1000 people more on temporary basis during summer season. 21st century On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose, the same sweetener currently used in Pepsi One.[22][23] On March 21, 2005, it announced another diet product, Coca-Cola Zero, sweetened partly with a blend of aspartame and acesulfame potassium.[24] In 2007, CocaCola began to sell a new "healthy soda": Diet Coke with
48

vitamins B6, B12, magnesium, niacin, and zinc, marketed as "Diet Coke Plus." On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968.[25] In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola." The word "Classic" was truncated because "New Coke" was no longer in production, eliminating the need to differentiate between the two.[26] The formula remained unchanged. In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce bottles sold in parts of the southeastern United States.[27] The change is part of a larger strategy to rejuvenate the product's image.[27] In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet

49

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

50

COCA COLA PAKISTAN


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

51

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

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

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

52

FACTORS EFFECTING SALES


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

Per Capita Income


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

53

And to get through with this difficulty there is need to increase the level of per capita income of Pakistan because it is much lesser than the rest of the countries.

Competitors
Cokes major competitor is PEPSI and there is no hesitation to say this because every one knows that and all the other cold drinks and water, coffee, tea are the competitors.

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

MAJOR CUSTOMERS NEED


First of all the majority dont care that what they are going to have. In other words, they dont care before drinking that whether it is Pepsi or coke. They dont actually differentiate between these two brands in order to their tastes. Consumers basically drink what they get. They believe on WHAT COLD THEY SOLD Consumers availability in brands is basically works like: Push availability
54

Pull consumers demand. For this reason Coca-Cola have provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market. They provide this infrastructure free of cost just to provide child coke to their customer, which they want to be purchase. Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not, if not then they immediately change or repair it.

55

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

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

THREATS FROM COMPETITORS


Threats are well planned. Price is the major threat. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink. Because when the price go higher people go for the substitute of coke i.e. Pepsi.
56

And when price goes down they think that there is must be some thing wrong in it. In short it all depends on customers perception.

TARGETS THAT WOULD LIKE TO ATTAIN


Every organization runs on the bases of profit maximization so Coke is also looking for a high profit margin. There are three major ways of making money
y Over night profit y Windfall profit y Ethical and un-ethical ways

57

Over Night Profits


They

could be over night profit that is for the number 1 brand for the year. This could be got my increasing sales volume Windfall Profit Can be windfall profit. They are the extras profit. When the consumption the consumption is on boom. So, there is different kind of profits.

Ethical And Unethical Ways


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

EXPANDING TARGET MARKET


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

58

Consumer Has Got Choice


Now the consumer has got choice. Because now they know the name of another big brand, though coke is the 2nd best name but it can get a better position after some time

Attractive Brand Name


Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word ok. So people can better differentiate brands with each other.

Brand Differentiation Now different companies have got different brand names. So, people can distinguish between brands. Two major brands coke and Pepsi also have brand names. Coca Colas Brand
Coca cola is US brand. Because they believe in the togetherness, being people together and friends are being together. Coca Cola strongly believes that India temperament is US not ME

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

59

THREATS AND OPPORTUNITIES FOR PRICE


Opportunities

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

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

60

STRATEGIES OF GETTING GOALS I.E. HIGH PROFITS


To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows.
y Volume can be increased y Interest level of consumers y To take part in energetic festivals
How to increase the volume of consumers?

Coke can increase the volume by expanding the industry of coke. Through advertisements, offering different interesting things to attract people towards this product.
How to increase the interest level of consumers?

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

Coke is already taking part in the festival like Basant since last 3 years. Coke offers different attractive things in their
61

festival and through this Coke gained high profit and consumption of coke increased on these occasions. And this year in this year 2002 people were anxiously waiting that what interesting thing coke is going to offer.

MARKETING STRATEGY
Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It's a special thing to have billions of friends around the world, and we never forget it.

62

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

And company offers their products in different bottle sizes these includes:
y SSRB y LRB y NRB y PET 1.5 y CANS

(standers size returnable bottle) (litter returnable bottle) (no return bottle) or disposable bottle (1.5 litter plastic bottle) (tin pack 330 ml)

Packing
Coca cola products are available in different packing
y 24 regular bottle shell y 6 bottle pack for 1.5 pets y 12 bottles in a pack for disposable bottle
63

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

Different Price In Different Seasons


Some times Coca Cola Company change their product prices according to the season. Summer is supposed to be a good season for beverage industry in Pakistan. So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle.

64

PROMOTION STRATEGIES
Getting shelves
They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.

Eye Catching Position


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

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

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

DISTRIBUTION CHANNELS
Coca Cola Company makes two types of selling Direct selling Indirect selling
65

Direct Selling
In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.

66

Indirect Selling
They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.

FACILITATING THE PRODUCT BY INFRASTRUCTURE


For providing their product in good manner company has provided infrastructure these includes:
y Vizi cooler y Freezers y Display racks y Free empty bottles and shells for bottles

ADVERTISEMENT
Coca cola company use different mediums
y Print media y Pos material y Tv commercial y Billboards and holdings

67

Print Media
They often use print media for advertisement. They have a separate department for print media.

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

68

TV Commercials
As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.

Billboards And Holdings


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

Every thing starts from the attitude of consumers behavior. And the basic key to attract the consumers is to throw the money away. And positive feeling felling with the brand, which they used to have Coke wants to advertise their products heavily in the coming year. And it will take the 10% of their profits. And when we take it as a global level it is $ I billion. Coming year is the challenging year for the industry of Coke. They have to take lots of decisions that how to increase the production and where they have to spend money. For gaining success in coming year they have to have some important things like: 1. Loyal consumers are important for companys success.

69

2. Workers should be the brand centric not the promotion centric. 3. They should know how much to for the brand activities.
4.

They should also know that how much to do with the promotion activities for brand.

HOW COKE DETERMINE THE YEARLY BUDGET

Coke determines its yearly budget by the


y Sales volume y Profitability y Target volume

70

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

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

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

71

SALES PROMOTION ACTIVITIES


Coca-Cola Cricket
Cricket the most sought after; watched & played game in Pakistan .the game of cricket has been owned by various brands in the industry for the promotion of their products over a period of time. It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the beverage industry. The competition has become tougher & tougher as the time has progressed. Coca-Cola signed a sponsorship agreement with eight of Pakistans National cricket players. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it consumers & masses invested in the opportunity and launched a massive campaign on mass media showing all these cricket stars endorsing & complimenting Coca-Cola brand. The Coca-Cola Company developed three TV commercials & four testimonial ads with the player & ran them on the national net work during various cricket matches. These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board. This campaign helped Coca-Cola to establish its association with the game & the player.

Coca-Cola Concerts
Abrar-ul-haqs distinct style, lyrics & songs have made him an instant hit among the masses in Pakistan. His enormous popularity in the country & abroad is supported by CocaColas commitment towards providing healthy & fun-filled
72

entertainment for the youth of Pakistan. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured throughout the country. The TVC campaign focused on the hectic lifestyle of a pop star who found respite & relief through Coca-Cola in short moments that he had to himself during a concert. CocaColas brand positioning of providing deep down refreshment for the body, soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar.

Coca-Cola Food Mela


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

73

Coca-Cola Basant Festival


In February the month of basant the parks & horticulture authority in Lahore nominated Coca-Cola the official sponsor of the basant festival .Coca-Cola added to the carnival atmosphere by making the festival free to enter & decorating all main roads in Lahore with illuminated kites. Coca-Cola also hosted a concert of pop idol Abrar-ul-haq, had childrens parade & held the Coca-Cola kite flying championship during the basant festival. Now where there is basant there is Coca-Cola, it has been impossible to envisage basant without Coca-Cola. Coca-Cola give the more refreshing flavor to the colors of basant by adding more life to the festival, giving the consumer a unique experience which they had never tasted before.

Coca-Cola GO-RED
Quenching the thirst of motorist, pedestrians & passerbys during Lahores hottest summer season, Coca-Colas GORED teams went out into the cities main quadrants to serve & refresh on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement campaign the GO-RED stall, served well to promote the Coca-Cola industry.

Coca-Cola Party in a Park


In June 2000, Coca-Cola created an experiential musical evening in Lahore, where Junoon performed. This program was recorded and one-hour program shown in the national TV for free.10 million households saw Coca-Cola Party in a Park while 10 thousand people attended the event.
74

Coca-Cola Shopping Festival


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

Coca-Cola Pet Promotion


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

75

Coca-Cola Ramzan Campaign


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

Coca-Cola Wonder of the World Promotion


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

Coca-Cola & Nokia In August 2001, the new under-the-crown promotion Nikla Kiya?(What have u won) was launched in collaboration with Chimera Nokia.The promotion gave consumer a chance to win thousands of Coca-Cola branded Nokia 3310 cellular phones on every
76

purchase of 750ml RGB bottle of Coca-Cola ,Sprite, & Fanta.The other highlight of promotion was the Caught Red Handed campaign. Branded CocaCola with caught red handed team in them went to Lahore & Karachi for three days, with target that anyone being caught drinking Coca-Cola will be awarded a nokia 3310 mobile phone & if someone is caught talking on a nokia mobile will win free supply of Coca-Cola. Caught red handed become a huge success
among the masses as it was one to one interaction between the Coca-Cola brand & the consumers. This activity helped billed confidence and brand loyalty among core consumers.

Coca Cola TV Mazza


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

Coca-Cola & Mc Donalds


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

Fanta & Sprite Launched


In November 2000moving on to the Sprite & Fanta brands, the consumers in Pakistan witnessed a soft launch in
77

essence. The Coca-Cola Company declared the new NonReturnable bottles of Sprite & Fanta as the New, On the Go Packs flaunting the innovative packaging convenience. Fanta & Sprite are sure to enjoy considerable success in Pakistan.

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

78

SWOT ANALYSIS
Strengths: Coca-Cola has been a complex part of American culture for over a century. The product's image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of CocaCola's greatest strengths. Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers. A company like Coca-Cola has much internal and external strength, but when launching a product of this sort, they begin to run into many internal and external weaknesses as well. As far as internal strengths go, Coca-Cola itself is a strong company to say the least. Not only are they a $23 billion company, but in 200 nations, Coke sells about 400 drink brands, including four of the top five sellers right now. They own 36% of
79

the largest Coke bottler in the world, Coca-Cola Enterprises, which staffs facilities all over the world. Although Coke has never produced an organic product, they do own Odwalla, which is a natural juice company. This product would not be marketed as an Odwalla brand, but Odwalla's knowledge of natural juice making will be a great strength for Coca-Cola. Organic products are on the rise, with 70% of Americans having purchased something organic at least once. While organics are becoming more and more popular, there still are not many well-known organic companies; therefore, Coca-Cola will not have much competition. Perhaps one of their biggest strengths is the brand loyalty their customers have. When this product is launched, avid Coke drinkers will choose this organic fruit juice or soda over any other competitor simply because it's a Coca-Cola product and they trust it.

80

Weaknesses: Although domestic businesses as well as many international markets are thriving, Coca-Cola has recently reported some "declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power." According to an article in Fortune magazine, "In Japan, unit case sales fell 3% in the second quarter because while Japan generates around 5% of worldwide volume, it contributes three times as much to profits. Latin America, Southeast Asia, and Japan account for about 35% of Coke's volume and none of these markets are performing to expectation. Coca-Cola on the other side has effects on the teeth's which is an issue for health care. It also has got sugar by which continuous drinking of Coca-Cola may cause health problems. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effect on your body after few years. Opportunities: Brand recognition is the significant factor affecting Coke's competitive position. Coca-Cola's brand name is known well throughout 94% of the world today. Packaging changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products. Coca-Cola's bottling system also allows the company to take advantage of infinite growth opportunities around the
81

world. This strategy gives Coke the opportunity to service a large geographic, diverse, area. Threats: Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate. Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changing healthconsciousness of the market could have a serious affect. Of course, both Coke and Pepsi have already diversified into these markets, allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the market. Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi and Coke has produced a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competition. Furthermore, consumers can easily switch to other beverages with little cost or consequence

82

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

83

RECOMMENDATIONS
After completing our project we have concluded some recommendation for the coca cola company, which are following.

y Coca Cola Company should try to emphasis more on

providing their infrastructure in the market to facilitate their customers.


y According to the survey, conducted by the international

firm India people like little bit sweeter cola drink. So for this coca cola company should produce their product according to the local demand.
y Marketing team should try to increase the availability of

Coke in rural areas.


y They should also focus the old people. y Now young generation has a trend to drink a coke 2

regular bottles at same time, so providing more


84

satisfaction to them company should introduce liter disposable bottle.

PEST ANALYSIS OF COCA-COLA


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

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

YES NE NE YES

Conclusion Of Political Analysis:


As far as the above table is concerned it could be seen that there are very little chances of political variables to effect the cokes production and selling behavior. In the political variables most of the things are related to Governmental activities. So, they dont leave any good or bad impact in the Industry of coke.
85

And there are some exceptional things like: environmental protection laws they some what effect the industry of Coke. From last two years Government is going to be really very much conscious about the environment. But after making the adjustments in plants and applying the proper way of wastage the chances of being affected by the protection laws are going to be diminished. So it impact good for the Cokes reputation. And the second thing in political variables which effects Coke is elections & military take over Because in the days of elections and marshal laws condition the countries production in any field is declined. So it affects slightly the revolution of Coke. So political conditions are over all leave neutral effects on cokes industry.
ECONOMICAL VARIABLES
Economical Variables Strongly Effected  Some what Effected  No Effect  Some what Effected  Strongly Effected  YES

Do soaring interest rates make business task any harder Any effect due to inflation Anything done to reduce unemployment Any effect of 11th September 2001, incident at Coke in Pakistan

YES YES NE

86

Conclusion Of Economical Analysis


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

SOCIAL VARIABLES
Social variables Strongly Effected  YES Some what Effected  No Effect  Some what Effected  Strongly Effected 

Effects of advertisement of Coke on Public popularity

87

How will do Cokes contribution affect charity organizations of Pakistan Has rising consciousness of natural resources in people effected your save environment activities.

YES

YES

CONCLUSION OF SOCIAL ANALYSIS EDUCATION


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

ENVIRONMENT
A large part or our relationship with the world around us is our relationship with the physical world. While we have always sought to be sensitive to the environment, we must use our significant resources and capabilities to provide active leadership on environmental issues, particularly those relevant to our business. We want the world we share to be clean and beautiful. We are always innovating to bring you different delicious beverages. This same spirit of innovation comes alive in our environment programs. Were committed
88

to preserving our environment, from use of more than $ 2 billion (U.S) a year in recycling content and suppliers, and environment Management initiatives, down to very local neighborhood collection and beautification efforts. Heres a sample of what were doing in different communities around the world regarding the conservation of water and natural resources, climate changes, waste environment education. The Coca-Cola system in Pakistan operates through eight bottlers. Four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL).
COMMUNITY INVOLVEMENT:

In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system initiated a famine-relief program to help victims and was the first private-sector company to assist. The Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one employee from each plant, selected through a draw, to be sent on the Holy Pilgrimage to Mecca at the Companys expense.
TECHNOLOGICAL VARIABLES
Technological variables Have business innovations effectively promoted your business Has the governments regulations ever hindered in importing technical equipment Does Coke help in Strongly Effected  YES Some what Effected  No Effect  Some what Effected  Strongly Effected 

YES

YES 89

promoting paperless environment

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

OVER ALL RESULTS OF PEST ANANYSIS


After our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited), we came up with the very interesting report of facts and figures. Coca-Cola is no doubt one of the most popular beverage company and its product
90

COKE is one of most consumed cola drink. They spend billion of dollars on their advertisement, promotions and recreational campaign. Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough time. Coca-Cola is a 27% shareholder in the Pakistan market and they dont want to stop here!! Its target market is to achieve a much higher %age. Coca-Cola has about 2000 employees at India plants. Lahore plant of Coca-Cola is one of the beautiful plant in Asia, Situated on Raiwand Road. Coca-Cola has always had a close consumer and supplier relationship with its customers. Its entertaining and colorful advertisements have always and will always rock the media. India rock stars, sportmen and actors have played a very vital role in making Coca-Cola such a popular beverage.

91

DATA ANALYSIS 1. Have you ever tried the product (Coca-Cola)?

35 30 25 20 15 10 5 0

Out of the 30 people we urve ed, all of them aid the had tried Coca-Cola atlea t once. Thi explain the brand awarene of Coca-Cola. 2. Gender

no

92

20 18 16 14 12 10 8 6 4 2 0

Out of the 30 respondents, there were 18 men & 12 women.

3. Age groups
Age roups

51 & abo e 36 50 rs 20 35 rs 10 19 rs be ow 10 rs

10

no. o people

93

ma e

ema e

15

As represented in the chart, majority of the respondents were in the age group of 20-35 years, the least of the lot being 2 kids who were also asked to participate in the survey.

4. Do you enjoy the product (Coca-Cola)?

( Fr m th a al i , it wa f u d that maj rit f p pl ) r p d t aid th j d dri ki g C ca( p pl ) wh aid th pr f rr d C la a agai t th r dri k . 5. What brand would you say is more popular among the public? a) C ca-C la b) P p i c) Oth r
94



   

he 7

Co a Co a 56

As seen in the chart, out of 30 people, 17 respondents said, in their opinion, Coca-Cola was more popular while 11 respondents said they preferred Pepsi as a popular brand. 6. Do you enjoy Coca-Colas advertisements on TV?

don t li e them

not bad they are ood but nothin

s pec ial

really li e them 0 6 10 1 1

95

'

&

'

 

&

"

Pep 37

% !

# $ ! 1

The chart represents that a majority of people thought the Advertisements were good enough & they like what they see. 7. Do you think the price for a can of Coca Cola is cheap or expensive?

t r r

t b A ut f t 3 r r t C r t t

f ur , m j r t f 3 t t u tt tt C r r wt f w .

-C

8. If you were to see the Coca-Cola logo somewhere would you recognize it?

96

It i u d r t d fr m th fact that th L g f th C mpa y till ha it imag i th mi d f th p pl with all th r p d t ayi g th y w uld r c g iz th C ca-C la L g . 9. How often do you buy the product?

e e da

A an be een n he gu e, a on luded ha majo o he e ponden bough he p odu qu e


97

ne e

on e e

me

n a ea

9 8 76 5

me

n a mon h

C
0 5 10 15

me

n a ee

4 B 3 8

98 7 98 7

frequently. This shows the brand loyalty of the customers towards Coca-Cola.

10. Where do you buy Coca-Cola products the most?

Re au an

upe ma e

A een in he above cha , cu ome u ua y p efe ed o buy Coca-co a in e au an i e KFC, Mc Dona d , Sub-Way e c. The econd a ge op ion wa Gene a oe oc ing Coca-Co a.

DG

FE

H E

gene a

oe

DG D
0 5 10 15 20

GD

GD E

98

CONCLUSION
y It was observed that Coca-Cola has been perceived quite positively as it has been projected. People are aware of the Brand & Awareness of Coca-Cola is quite high in the market. When a product is launched, avid Coke drinkers choose this soda over any other competitor simply because it's a Coca-Cola product and they trust it. y Although Coke has been into controversies, people still prefer to stay loyal to the Brand with Coca-Cola being termed as a more popular brand than Pepsi. y Coca-Cola products would appear, on the shelf, to have the most expensive range of soft drinks common to supermarkets, at almost double the cost of no name brands. This can be for several reasons apart from just to cover the extra costs of promotions, for which no name brands do without. When people buy Coca-Cola they are not just buying the beverage but also the image that goes with it, therefore to have the price higher reiterates the fact that the product is of a better quality than the rest and that the consumer is not cheap. y In supermarkets and convenience stores Coca-Cola has their own fridge which contains only their products. There is little personal selling, but that is made up for in
99

public relations and corporate image. Coca-Cola sponsors a lot of events including sports and recreational activities.

So

Jo chaho ho jaye cocacola enjoy

100

LIMITATIONS

Time Constraints: A two months time limits us to understand completely the market

requirements and all round working perspective of the company. y Position and Authentication Constraints: With no authority or position it was sometimes difficult to convince the customer in front as summer trainee holds no responsibilities in the eyes of corporate. y No Customer Interection:ection It is because the customers of Hindustan CocaCola Beveragws Private Limited are big organisations, these organisations are situated outside Varanashi. So , there is no interection with customers of Hindustan Coca-Cola Beveragws Private Limited.

101

SUGGESTIONS In the report we have seen the graph of order booking targets and sales turnover. In the graph of order booking we have seen that the order for our product is increasing year. It means that with the increase of order to target. We have efficiency of the organization; we have to improve on certain points:
y Cost efficiency:

To get the achievement of cost efficiency we have to keep certain points in our mind they are resale of scraps, inventory management, work

distribution.
y Profit generation:

In the SWOT analysis we have seen there is a great opportunity products, these can be turnkey for

102

the company. The company should try to work on export. They should lay more emphasis on export.
y Improving technology:

There is no doubt that the product of company is not good. But from time to time the regular improvement of the technology. It improves the quality of the product as well as save the time.
y Becoming a global player:

With

the

last

dealings

we

can

conclude that the company had satisfy there maximum customers. After those dealings the company should try to get a good name in India as well as in international market.

103

Name: __________________________

1.

Have you ever tried the product (Coca-Cola)? a) Yes b) No

2. Gender a) Male b) Female

3. How old are you? a) Below 10 b) 10-19 c) 20-35 d) 36-50 e) 51 & Above

4. Do you enjoy the product? a) Yes b) No c) It's not bad

5. What brand would you say is more popular among the public? d) Coca-Cola e) Pepsi f) Other

6. Do you enjoy Coca Colas advertisements on TV? 104

a) b) c) d)

I really like them They good but nothing special Not bad I don't enjoy them

7. Do you think the price for a can of Coca Cola is cheap or expensive? a) Cheap b) Slightly over priced c) Expensive

8. If you were to see the Coca Cola logo somewhere would you recognize it? a) Yes b) No 9. How often do you buy the product? a) b) c) d) e) Never Once/few times a year Few times a month Few times a week Everyday

10. Where do you buy Coca-Cola products the most? a) Super Markets b) General stores c) Restaurants (McDonald's, Subway, KFC etc)

105

ANNEXURE
The internet is a powerful source of information related to management theories and practices. This annexure has been compiled for the net-savvy reader who would like to surf the net for information on an aspect that is, in some way, related to matter covered in this project work. This compilation is meant to be illustrative rather than comprehensive and there might be many other sources. You must be on the guard as every site listed on the search engines under the title Marketing Strategies Analysis may not be related to my project over my study undergone in BPC Hindustan Coca-Cola Beveragws Private Limited. It may be a site related to general references, articles and slides over management theories on Marketing!

106

BIBLIOGRAPHY
Bibliography refers to the sources through which information has been retrieved in my project development: Books & Magzines: y y y Websites: y y y www.google.com www.coca-colaindia.com www.altavista.com Marketing Management Economic Times Annual Report of coca-cola company. By ( Philip Kotler )

107