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     coca-cola-markting-project coca-cola-markting-project Document Transcript

    • -2- Management On Coca ColaThe Partial Requirement for The Fulfillment of the MBA Degree
    • -3-
    • -4-_____________
    • -5- TABLE OF CONTENTS Topics Page #Introduction Vision of coca cola 12 Mission Statement of coca cola 13 Value of coca cola 13 Objective of coca cola 14 Goal of coca cola 14 History of Coca Cola 15 Coca Cola in Pakistan 16 Today of coca cola 17 Market Conduction 18 Market Position 19 Organizational Hierarchy 20 Board of directors 21 Financial data 23Business Portfolio and Growth Strategies of Coke Portfolio 24 Portfolio analysis 27 SWOT analysis 29 Five forces applied on coca cola 32(a,b) Growth strategy 33Marketing Environments Microenvironment 36 Macro environment 40 Competitive environment 44 Rivals competitor 44 Competitive advantage 45Market Segmentation & Positioning Strategy Market segmentation 48 Coke segmentation strategy 48 Positioning 51Product Strategy Level of coke as a product 53 Branding 53
    • -6- Product Line Decisions 54 Advertising Advertisement Objective 56 Setting of advertising budget 56 Advertising Strategy 56 Advertisement Media 56 Recommendations & Conclusions 58 Executive Summary:T he Coca-Cola Company is a global business enterprise and one of two main soft drink sellers. Study of this report helps the reader to know that how Coca-Cola has achieved its current market position.This report enlightens those factors that company has adopted during itslong journey of 52 years in Pakistan. This report includes the introduction,micro and macro environment factors affecting coke, segmentation andpositioning strategy and advertising methods that company uses and muchmore.The reader of this report can expect that after having complete studyhe/she can certainly have a broader view of the operations of Coca-Cola inPakistan. Like who are the competitors, what are the problems thatcompany facing in expanding its business etc. In Pakistan Coca-Cola isvery much a local business and company has provided this region with 51successful years of service. The dedicated service that company has beenproviding has made the company the proud holder of several most widelyrecognized brands in the world. This report study gives reader the ideaabout operation of coke in Pakistan.
    • -7-INTRODUCTION
    • -8- Vision of coca colaTo achieve sustainable growth, we have established a Vision with clear goals:• People: Being a great place to work where people are inspired to be the best they can be.• Planet: Being a responsible global citizen that makes a difference.• Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples desires and needs.• Partners: Nurturing a winning network of partners and building mutual loyalty.Profit: Maximizing return to shareowners while being mindful of our overallresponsibilities
    • -9- MISSION STATEMENT OF COCA-COLA:M ission statement is a statement of organization’s purposes that what it wants to accomplish. In order to achieve mission of increasing market share and maintaining good relations with ourcustomers all over the world, we wish to create value for all the constraintswe serve, including our consumers, our bottlers, and our communities. TheCoca Cola Company creates value by executing business strategy guidedby 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 through out the day. • We will be the best marketers in the world. 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. VALUE OF COCA COLAWe are guided by shared Values that we will live by as a company and asindividuals:• Leadership: “The courage to shape a better future”• Passion: “Committed in heart and mind”• Integrity: “Be real”
    • - 10 -• Accountability: “If it is to be, its up to me”• Collaboration: “Leverage collective genius”• Innovation: “Seek, imagine, create, delight” Quality: “What we do, we do well” OBJECTIVE OF COCA COLAThe company has sales based objective .Every thing else (marketing plan,advertising plan, production etc.) is derived from this objective. Currently the company‘s objective is to“Increase the volume of sales up to the maximum level as much aspossible during the current fiscal year.” The company sets its objective keeping in view the pastperformance, Historical trends, current market position, economiccondition, macro environment and micro environment factors, socialvalues, market size and growth rate ,future expectations and predictions. GOALS OF COCA COLAAll CCBPL plants setup their own goal to achieve the objective.The company goal is“To increase sales volume and gain market leadership in Lahore.”
    • - 11 - HISTORY OF COCA-COLA:C oca-Cola Enterprises was established in 1986 is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in thetraditions of Coca-Cola that is the foundation for this Company.The Coca-Cola Company traces it’s beginning to 1886, when anAtlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale. However the bottling business began in 1899when two Chattanooga businessmen, Benjamin F. Thomas andJoseph B. Whitehead, secured the exclusive rights to bottle andsell Coca-Cola for most of the United States from The Coca-ColaCompany.The Coca-Cola bottling system continued to operate asindependent, local businesses until the early 1980s when bottlingfranchises began to consolidate. In 1986, The Coca-ColaCompany merged some of its company-owned operations with twolarge ownership groups that were for sale, the John T. Luptonfranchises and BCI Holding Corporations bottling holdings, toform Coca-Cola Enterprises Inc. The Company offered its stock tothe public on November 21, 1986, at adjusted prices of $5.50 ashare. On an annual basis, total unit case sales were 880,000 in1986.In December 1991; a merger between Coca-ColaEnterprises and the Johnston Coca-Cola Bottling Group, Inc.(Johnston) created a larger, stronger Company, again helpingaccelerate bottler consolidation. As part of the merger, the seniormanagement team of Johnston assumed responsibility formanaging the Company, and began a dramatic, successfulrestructuring in 1992.Unit case sales had climbed to 1.4 billion,and total revenues were $5 billion at the year-end. Presently The
    • - 12 -Coca-Cola Company is the largest soft drink company in the world. Everyyear 800,000,000 servings of just "Coke" are sold in the U.S alone. C OKE H ISTORY IN P AKISTAN “To provide Coca-Cola at arms ‘length”T he Coca-Cola Company began operating in Pakistan in 1953. Coke, Fantail and Sprite are the brands with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in Pakistan operates througheight bottlers, four of which are majority-owned by Coca-Cola BeveragesPakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad,Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan and Lahore. Theremaining two plants, independently owned, are in Rawalpindi andPeshawar. The Coca-Cola System in Pakistan serves 70,000customers/retail outlets. The Coca-Cola System in Pakistan employs 1,800people working constantly for the company. During the last two years, TheCoca-Cola Company in Pakistan has invested over $130 million (U.S) andcoke has successfully provided 51 years of dedicated service to itscustomers in Pakistan. Since the beginning of Coke Company the firm hasbeen continuously changing its slogans and that’s a very creative idea toget the attention Of the customers.. Here we would like to include some of the popular slogans of coke sincethe coke journey started. • 1886 Drink Coca-Cola • 1908 Get the genuine • 1923 Enjoy thirst • 1934 When its 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
    • - 13 - • 2004 Flight Of Delight • 2005 Galay Delicious Taste • 2006 Thanda matlab coca cola • 2007 khaly pily jila coca cola • 2008 Aja jashan mena ly TodayToday CCBPL is operated directly under the supervision of the Coca-ColaInternational based in Atlanta Georgia State___ USA .It owns 10 plants allaround in Pakistan. ► Karachi. ► Lahore. ► Gujerwala ► Rawelpindi ► Peshawar ► Hyderabad ► Faisalabad ► Sialkot ► Rahimyarkhan
    • - 14 -► Multan.► Sahiwal MARKET CONDITION MARKET POSITION WORLDWIDE: 60% Coca-cola Pepsi Other 30% 10% MARKET POSITION IN PAKISTAN: -
    • - 15 - ., 10% ., 36% Coca-Cola Pepsi Others 54% MARKET POSITIONWorld wide on global level Coca-Cola is the most popular brand and marketleader and carry 60% of market share.In Pakistan due to above reasons Coca –cola is the market follower but still in avery strong and stable position holding 36% of the local market share with agrowing and increasing market share every year. Growth rate in market share: unit case volume 2007 vs. 2006 GROWTH 2007vs 2006 5-Year Net operating Growth Annual Operating income Growth Revenues Africa 10% 6% 16% 6% Eurasia 16% 13% 24% 38% European 3% 2% 14% 16%
    • - 16 - Union Latin 9% 6% 24% 22% America North (1%) 1% 11% 1% America Pacific 7% 4% 7% 3% Bottling 64% N/A 53% 750% Investments Worldwide 6% 4% 20% 15% ORGANIZATIONAL HIERARCHY:Organizational hierarchy of Coke with respect to marketing department isas Chairman Board of Governors Vice Chairman Executive Vice Presidents Vice Presidents
    • - 17 - Production Marketing Finance Manager Manager ManagerAssistant MKT Assistant MKT Assistant MKT Manager 1 Manager 2 Manager 3 Supervisor Supervisor Supervisor Salesmen
    • - 18 - Board of Directors (As of February 21, 2008) (Back row, left to right)James B. WilliamsRetired Chairman of the Board and Chief Executive Officer,SunTrust Banks, Inc.Alexis M. HermanChair and Chief Executive Officer, New Ventures, LLCSam NunnCo-Chairman and Chief Executive Officer, Nuclear Threat InitiativeDonald R. KeoughNonexecutive Chairman of the Board, Allen & Company Incorporated,And Nonexecutive Chairman of the Board, Allen & Company LLCJames D. RobinsonGeneral Partner, RRE VenturesHerbert A. AllenPresident and Chief Executive Officer, Allen & Company Incorporated
    • - 19 -Ronald W. AllenAdvisory Director, Former Consultant and Advisory Director, andRetired Chairman of the Board, President and Chief Executive Officer,Delta Air Lines, Inc.Peter V. UeberrothInvestor and Chairman, Contrarian Group, Inc., andNonexecutive Co-Chairman, Pebble Beach Company (Front row, left to right)Bary DillerChairman of the Board and Chief Executive Officer,IAC/InterActiveCorp, and Chairman of the Board andSenior Executive, Expedia, Inc.Cat hleen P. BlackPresident, Hearst MagazinesDonald F. McHenryDistinguished Professor in the Practice of Diplomacy andInternational Affairs, Georgetown UniversityE. Neville IsdellChairman of the Board and Chief Executive Officer,The Coca-Cola CompanyNot pictured:Jacob WalenbergChairman of the Board, Investor AB, and Vice Chairman ofSkandinaviska Enskilda Banken AB1 Audit Committee2 Committee on Directors and Corporate Governance3 Compensation Committee4 Executive Committee5 Finance Committee6 Management Development Committee7 Public Issues & Diversity Review Committee
    • - 20 - Financial DataYear Ended December 31, 2007 2006 2005(In millions except per share data) Summary of operationsNet operating revenues $28,857 $24,088 $23,104Cost of goods sold 10,406 8,164 8,195Gross profit 18,451 15,924 14,909Selling, general and admin exp 10,945 9,431 8,739Other operating charges 254 185 85Operating income 7,252 6,308 6,085Interest income 236 193 235Interest expense 456 220 240Equity income—net 668 102 680Other income (loss) — net 173 195 (93)Gains on issuances of stock by e. i — — 23Income before income taxes 7,873 6,578 6,690Income taxes 1,892 1,498 1,818Net income $ 5,981 $ 5,080 $ 4,872Average shares outstanding 2,313 2,348 2,392Avg shares outstanding 2,331 2,350 2,393 Per share dataBasic net income $ 2.59 $ 2.16 $ 2.04Diluted net income 2.57 2.16 2.04Cash dividends 1.36 1.24 1.12Closing market price on Dec 31 61.37 48.25 40.31Total market value of common stock $142,289 $111,857 $95,504 Balance sheet dataCash, cash equ and c.m securities $4,308 $2,590 $4,767Property, plant and equipment—net 8,493 6,903 5,831Depreciation 958 763 752Capital expenditures 1,648 1,407 899Total assets 43,269 29,963 29,427Long-term debt 3,277 1,314 1,154Shareowners’ equity 21,744 16,920 16,355Net cash provid by optg Actvty $ 7,150 $ 5,957 $ 6,423
    • - 21 -BUSINESS PORTFOLIO AND GROWTH STRATEGIES OF COKE
    • - 22 - PORTFOLIO:T he businesses & products that makes up the company constitutes business portfolio. Coca Cola Company has a vast portfolio & it has a wide range of products. Here we will be focusing on the different flavors of theCoke only. 1. Coke Classic: It was introduced in the 1886 by a pharmacist & was sold at a small scale. It was not a carbonated drink at the time of the launch but further development made it a fizzy drink & people start taking it as a beverage. 2. Vanilla Coke: Smooth taste of vanillas was added to Coke to give a refreshing feeling. Since, it was Vanilla coke’s debut in 2002. Millions of people were curious what coke have brought for them. It was a refresher & soother for the thirst quenchers. Still, it was not a big success like Coke Classic. 3. Cherry Coke: Cherry coke is one of the favorite colas taste with a blast of cherry. This flavor was introduced for the cherry lovers so they can have cherry wherever they & whenever they are. Some things never change, other things get better. Like Cherry Coke. 4. Caffeine free Coke: Classic is what you really want to have. Caffeine free coke fits right in with your plan. It’s true refreshment, minimize the caffeine input to your body, & gives a refreshing effect.
    • - 23 -5. Diet Coke/Coca Cola Light: Diet Coke was launched in 1982 which was the beginning decade of the fitness craze. A gala reception at the radio city Hall at N.Y.C celebrated the new drink on the scene. In just 1 year after its introduction it became the largest selling drink in America. It was one of the ideal drinks for the very fitness & health cautious people. Further flavors were added to the portfolio of diet coke which attracted the fitness crazy people to check the taste of it. a. Caffeine free Diet Coke: In 1983, Caffeine free diet coke was introduced for the people who were facing problems with the amount of caffeine present in the diet coke. The diet coke was ecoming more ideal for them as it was with less sweet & no caffeine. b. Diet Cherry Coke: Then the new Diet Cherry Coke was introduced a new low calorie flavor craze began. Coca Cola company promoted Diet Coke with penguins & celebrities in its advertisement. They were having the slogans like “Just for the Taste of it” & “The Move is on the Diet Coke”. It was becoming a big hit. c. Diet Coke with Lemon: When in 2001 the Diet Coke with Lemon was offered a new citrus taste sensation became a hit. It gave the people chance to have the taste of sweet coke with citrus lemon flavor. d. Diet Vanilla Coke: When in 2002 the Diet coke was celebrating its 20th birthday Diet Vanilla coke was the product, which company came up with & it was birthday gift of Diet Coke to its consumers.
    • - 24 - E. diet Coke with Lime: 2004 was the year when Coca Cola company came up with Diet Coke with Lime, which brought a juicy new flavor of coke to its consumers. PORTFOLIO ANALYSIS:A tool by which the management identifies & evaluates the various business that make up the company. Generally there are two approaches of doing the portfolio analysis & Coca Cola’s portfolio analysis is done withboth the methods & the results are as follows:1. BCG (BOSTON CONSULTING GROUP) APPROACH:In the BCG approach, a company classifies all its Bus according to the growthshare matrix.Coke is one of the main product line of the Coca Cola company. It is the onewhich is giving maximum revenues to it by different products in this line. Here wehave classified some of its major products in the BCG matrix on the basis of theirfame & liking of the people.
    • - 25 - 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: Coke Classic is one product, which the Coca Cola company can never think of 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 don’t work here then nothing else can. Question Mark: A product that is still not a big hit as it haven’t consumed much time yet. All the new flavors of coke are the examples of these question marks. In the above BCG matrix, Lime Coke & Cherry Coke are the two products mentioned as the question marks as they have not taken much time yet to get a hold of market & not even the large percentage of the people have tasted it. So it needs time to be fully tested by the company & the company needs to think whether it should continue the production or should divert to something new. Dog: A product that has not worked good or a product which has been a source of loss. Vanilla coke is one product that was not a big hit. Even its not a long period which Vanilla coke has consumed but still there are signs that it wont be a success. So its better for the company to get rid of it.
    • - 26 - SWOT ANALYSIS:- Strengths:Single Established Company .The biggest strength of Coca-Cola is that unlike other beverages, it hasestablished itself as a single large company CCBPL with 10 plants in all majorcities running directly under supervision of Coca-Cola international. So unlike tobottler system there is no conflict of decisions and policy. One policy adopted isfor al plants throughout the country. Similarly one decision taken (e.g. pricecuts+Rs.2/-) is implemented effectively and immediately in all plants all overPakistan without argument. So you will find same prices, same quality, sameschemes in all cities.Working Structure .Coca-Cola’s organizational structure is of International standards, hence thereare clear cut and well defined policies, procedures rules and regulations that
    • - 27 -have to be followed under all circumstances, hence working style is highlyprofessional, and discipline is maintained.Human Resource .The biggest strength of Coca-Cola is its Intellectual brain power of highlyprofessional qualified and dedicated employees who put in all their efforts tosatisfy their customers by providing the ultimate best of Coke.Proper Time Delivery.The fixed time of delivery of Coke to retailers, shopkeeper’s etc punctuality ismaintained which gives Coke an edge over all its competitorsBrand Name, Symbol, and Bottle Shape .These all are Coke’s strengths which give it an edge over its competitors. Coca-Cola bottle shape is so unique and stylish than even if the name is rubbed offpeople will still easily identify that its Coca-Cola bottle. Same is the case with itssymbol and name which cannot be imitated and are so well known. The mostknown and spoken word in world after OK is “COKE”.Superior Product Quality :Coca-Cola Company management never compromise on quality even if theyhave to spend a little extra in production. Bottle caps are one example. Examineand you will find that Coca-Cola brand caps (especially on liter bottles) anddisposable bottles are superior in quality than those of others beverages). Qualityin taste as well as bottle and caps and gifts which are offered doesn’t vary fromcity to city but is same throughout the company.Diet Coke:Coca-Cola’s strength is that they are market leaders who successfully launched.Diet Coke to cater the needs of overweight and health conscious people andhave been popular to a certain extent, their closest competitor also followed andlaunched their own diet beverages brand, but it never proved to be up to themark and failed.
    • - 28 - WEAKNESSES:Limitation of resources:This is the biggest weakness of Coke .They heavily depend on finance from theCCI (Coca-Cola International) based in USA. Consequently they are not able tosupply as many freezers, coolers or finance sign and electronic bill boards asshopkeepers demand as does Pepsi which is the major reason why they lagbehind.Non –Availability :- Coke is not available in small towns and in rural areas, reason being that thedistribution channel of Coke is not large, is not extended owing to limitations ofresources and lack of proper infrastructure.Formality of Rules and Regulations :The organizational structure of Coke is too formal ( being supervised by CCI),sothe lengthy processes of decision making and implementation through hierarchysystem (i-e follow order from CEO to downwards) have to be followed andemployees in Pakistan even (GM) is not allowed to take decisions to changeeven smallest of things like (Instruction on bottle) on their own .So many brilliantideas to improve and boost sales remain locked up in employees brain as theyare not allowed to work at their own free will. OPPORTUNITIES:Coke currently holds about 36% market share in Pakistan.Pepsi leads by holding 54% of market share 10% to other small beveragese.g. RC- cola, Maka-Cola, Pak-Cola etc.So there is vast opportunity for Coke to capture 70% market share.i.e. 54% ofPepsi and 10% of others.Coca-Cola with International standards can increase its market share many foldswith little efforts.
    • - 29 -Increasing distributing channels and infrastructure to ensure availability in smalltowns and areas.Line extension like Fanta, Coke, and Sprite in different flavors.Launch a new product it can do it successfully as it’s is well established,Company and has already positioned itself in customers mind (as those whoprovide the ultimate in taste and quality) so they are bound to try their newproduct as well. THREATS:Major Threat :Pepsi and its products as it is market leader so time to pose a serious threat toCoke. Potential Threat:New Entrants:New entrants like Maka-Cola, Pak –Cola that can exploit anti Jewish and anti warsentiments, provoke nationalism sell at low price and thus can be a source ofthreat for Coke in future once they fully launch their product in Pakistani marketso Coke management has to look out for them over time.Nestle Products:Like juices, Milo cold coffee ,drinks, etc as well as Shezan products e.g.squashes, tetra pack juices are also sort of threat but not the direct threat forCoke because they provoke health consciousness and physical fitness .AlthoughCoke has converted their attack on health issues by offering Diet Coke yet thethreat isn’t over .However Coca-Cola can effectively counter their threat at any time by launchingtheir own juice.Taxes (Govt.Laws and Policies):The Coca-Cola management is not happy with the Govt. tax laws and policies.Being a multinational with whole plants in 10 cities it is under heavy tax.Imposition so much so that on single bottle revenue. It has to pay as much asRs2.97/- as tax to the government.
    • - 30 -With the consequent result that Coca-Cola is the first beverage and 2nd highesttax paying company in Pakistan. It pays 33% on its total revenues. GROWTH STRATEGY:G rowth is the main objective of every organization. They look forward for expanding & growing in different markets & making a variety in their product line. A company can identify their growth through theproduct-market expansion grid. The approach is known as ANSOFF.Coca Cola Company can also identify its expansion through the ANSOFFapproach.Market Penetration is the strategy, which every company has to opt when itreaches a maximum height of growth. Coca Cola in Pakistan is doingmarket penetration through the selling its products to the business buyer,who are huge multinational organizations like McDonalds, Subway, DunkinDonuts & many more & they are also keeping the local market in focus. FriChiks, AFC, PFC are examples of the buyers in the local market. They areselling the Coca Cola as the only beverage in their restaurants.Market Development is exploring new markets for the products you are alreadyselling. Many flavors of coca cola are not being sold in Pakistan. Coca cola candevelop a new market if they introduce those flavors in Pakistan. Many people inPakistan want a change in the beverage industry, as they are having the sameflavors from many years.A company takes a risk when it do Product Development, there is a chance that itloose its customers or there will be a crowd of people demanding their product.
    • - 31 -Coca cola company can do product development by introducing the new flavorsin Pakistanwhich are not sold anywhere in the world by the coke company. The companyhas to put large effort in that, as it has to conduct all market research &feasibilities for it. But there is also an opportunity for them as they know themarket of Pakistan, that what the people here can afford & what taste they want.Diversification strategy is one which every company really want to practice.There are lots of chances of growth but the risk factor is also there. The companycan manufacture products, which are not manufactured by it before. Coca cola isonly dealing in beverages but it can also manufacture its own snacks item as thecompany name is known almost all over the world. So it can cash the name byproducing the items, which are eaten with the beverages.
    • - 32 - MARKETINGENVIRONMENTS
    • - 33 - Marketing Environments:T he forces outside marketing that affect marketing management ability to develop and maintain successful relationships with its target customers. There are two types of marketing environments that may affect anycompany’s operation, Microenvironment and the Macro environment. Micro environment factors affecting coke:First we consider the microenvironment factors.1=Customers:Recent survey shows that coke is the only product in the world with which morethan 85% of the population is well aware of. All the companies have to keepupdated study of their customers and in case of coke the company has alwaysmaintained excellent customer retention. Value of customers for coke can beunderstood by these factors that coke spends lot of efforts (financial and humanresource) on customer research. For example, Coke knows through marketsurvey that we put 3.2 ice cubes in a glass and one million of US populationdrinks coke with breakfast every day. This is how coke has been favorite drink ofcustomers for centuries.Coke customers vary massively in terms of age. From kids to youngsters, fromyoungsters to elders and from elders to older, coke has always captured highcustomer attention from decades. We can divide coke customers in differentcategories.I: Consumer Market:This is the group of consumer from where coke purchases are at the highestlevel because consumer market includes individuals and households.Households mostly buy coke for daily use in large number and purchasing byindividuals is also the case of repeat purchase. Healthy consumer market is a bigadvantage for the company.II: Reseller Market:Reseller market of coke is very large all over the world. This is the market, whichbuy the product from company and resell it at profit. In Pakistan McDonald is thebiggest example of reseller of coke. McDonald purchases coke from thecompany and sell it with each fast food deal served at restaurant. The surveyshows that each branch of McDonald located in Lahore sells approximately 500-700 liters of coke daily to its customers.
    • - 34 -III: International Market:International market consists of those buyers who are in other countries. Coke isworldwide known product and every country where coke is been sold has amanufacturing unit of its own. Similar is the case in Pakistan. Cokemanufacturing plants are in Karachi, Hyderabad, Sialkot, Gujranwala,Faisalabad, Rahimyar Khan, Multan and Lahore and these plants are producingthe drink for the local use. So in Pakistan there are no international buyers ofcoke. Characteristics affecting Consumer Behavior:Coke purchases are influenced strongly by cultural, personal, social andpsychological characteristics.Cultural Factors:Every group and society has its own culture. Cultural factors affect coke purchasingmassively. Different communities and group of people have reshaped Pakistan’sculture. In recent years the Bahar/Basant festival in Punjab specially has becomeimportant part of our culture in which sales of coke go very high. Soft drink ispurchased in bulk for the parties and other occasions.Social Factors:Social factors include consumer’s family, small groups and status. Familymembers can affect buying behavior in such a way that if number of children aremore in a family than the elders, then the children choice can matter a lot at timeof soft drink purchase. Parents most of the time, have to go according to kidschoice and kids have more interest in cola drink as compared to the elders. Onthe contrary sometime people go for the product that shows their status insociety. If a person has high status in society he or she might never go fordisposable coke bottle instead they might prefer the CAN packing of coke. Thischange is due to the status matter.Personal Factors:Buyer’s decision is also influenced by personal characteristics such as buyer’sage and life cycle stage, occupation, personality and self-concept. Age andlifecycle stage means that people taste and way of living changes with passageof time. Lets say in earlier stage of life if a person’s best choice for soft drink wasCoke classic but as he proceeds with his life, way of thinking and style maychange. He may not opt for classic coke any more and might be more interestedin diet coke.
    • - 35 -Occupation matters a lot when consumer is indulge in buying. If consumer is astudent by occupation he will certainly go for returnable bottle of 8 RS or may bedisposable bottle of 15 RS but most probably not for the coke CAN which is highin price. Where as if the consumer is a business executive who is financiallystrong will prefer more the coke classic can or diet coke can. This change ismainly because of occupation.Psychological Factors:A person buying behavior is further influenced by major psychological factorssuch as motivation, perception, learning and self-beliefs.Motivation is basically a drive that’s sufficiently pressing a person to seeksatisfaction of the need. Sometimes a person has no intention to buy a particularproduct but what happens is that the group of people around him motivates thatperson. If a person is highly satisfied with the taste of Diet coke, he may sharehis experience with another person and as a result the latter person might getmotivated by his opinion and may end up buying diet coke.In some cases consumers have descriptive thoughts and beliefs aboutsomething. For example if a health conscious person has a belief that diet cokeis good for health, he or she is never going to go for classic coke because dietcoke has maintained a clear position in the mind of that consumer. This is allabout the self- beliefs and thoughts that might change with time because mostlyall the self-beliefs are secondary and not the core ones.2=Competitors:All over world there are two soft drink giants, Coke and Pepsi. The competitionbetween two companies has always been neck to neck. Both these companieskeep on try to take lead in terms of pricing, packaging, promoting and placing.Pepsi is a world leader in convenient foods and beverages, with revenues ofabout $27 billion and over 143,000 employees. Pepsi brands are available innearly 200 countries and territories. As we compare the products of these twocompetitors we come to know that Coke has two flavors in Pakistan that is cokeplain and coke diet where as similar is the case with Pepsi as only these twoflavors are available of Pepsi as well. So in this perspective both parties haveequal strength. However competition is at its peak in terms of pricing. So manytimes we see that as soon as Pepsi lower downs the price of 1 liter pet bottle ordisposable drink, Coke adjusts its price right away so that they may not loosetheir customers. Although both these brands have sufficient amount of buyers allover the world but still both the companies strive to achieve the market leaderposition. Coke even after 99 successful years in US still trying best to be moreinnovative. Coke manufacturers spent two years and 4 Million $ on researchbefore settling on a new formula and finally came up with “sweeter new coke”
    • - 36 -and later on with “cherry coke”. Companies make all these efforts to give morecustomer value and satisfaction than its competitors.In Pakistan recently a few other beverages are also introduced such as Mecca-Cola and Amrat-Cola but currently these soft drinks are not a threat for coke dueto their very low market share and secondly due to brand loyalty of customers forcoke.3=Intermediaries:Marketing intermediaries help the company to promote, sell and distribute itsgoods to the end users. Intermediaries include resellers, distribution firms andmarketing agencies. When we talk about coke, Coke Company in Pakistan aswell as abroad has recognized the importance of working with theirintermediaries. For example recently Coke signed ten years deal with US basedcompany Wendy that it will provide coke to all the fast food chains located in US.Wendy in this case is a big example of intermediary for coke. In Pakistan otherthan various resellers, McDonald is one big party that is reseller of coke. Similarlythere are thousands of private agencies (intermediaries) that are working forcoke to distribute the product to the shopkeepers and retailers all over thecountry.Currently there are 46 distributors working in Lahore. Coke Company uses twotechniques for distribution, direct distribution and indirect distribution. In directdistribution company uses no agencies or middlemen to distribute the soft drinksbut company has its own system of distribution that include Company’s trucksand labor as well. The other way is indirect distribution in which company opts forvarious distributors that take the product from factory to the retailers andresellers.4=Suppliers:Suppliers always play an important role in any company’s operation. Suppliersprovide resources and raw material that company requires to produce the goodsand services. Coke company suppliers in Pakistan vary with respect to the rawmaterial they provide. Following is a brief list of different suppliers of coke. • Balochistan Glass Limited provides glass bottles of all sizes that are used in bottling. • Plato Bag Limited provides pet bottles with the labels. Labels are designed by the Packages Ltd. • Saharan Mills Limited provides the quality sugar in hygienic packets. • Vanillin Intercool Pakistan provides the machinery such as visicoolers and chest coolers for the chilled coco-cola.
    • - 37 - • Dynamic Equipment and Controls (PVT) Limited provides industrial refrigeration solutions, dispensing equipments, complete bottle line and capping machines. Macro environment factors affecting coke:Demographics:Coca cola knows its people very well. It offers different flavors & packagingaccording to its customer’s taste. It offers following sizes & every size istargeting different slots of customers. 1. SSRB (Standard size returnable bottle) 2. LRB (Large size returnable bottle) 3. NRD (Non-returnable/ Disposable bottle) 4. PET (Plastic Bottle 500 ml) 5. PET (Plastic Bottle 1.5 liter) 6. CANS (tin pack 330 ml)It targets its different sizes according to customers of different age groups &occupations. • SSRB is generally targeted to young children & people going to schools & universities. It is also targeted to the people of lower class. • LRB & PET 1.5 liter is usually consumed by households &I s one of its economy packs. • Disposable bottles are for the “on the go” people. As they don’t have the time to stand at a spot & drink the whole beverage. • PET 500ml was introduced, on the basis of the analysis, which shows that people nowadays are in a trend to drink two 250ml coke bottles together. As Coca Cola is a company who knows its consumers very well, they introduced the 500ml Pet bottle. • Business executives always expect something different for them form an organization, so Coke CANS were the answer to their expectation from coke. Different flavors always attract different types of people. They are for thepeople who always want to try something new. • Classic coke is the one suitable product who don’t want a change in their life or who don’t want to try something new. • Keeping the people in view who are fitness oriented or who are health conscious, Diet coke is the solution for all their beverage problems. • Vanilla Coke was introduced for the people who want a more sweetened beverage & who are looking for vanilla in everything they have.
    • - 38 - • Cherry & Lime coke is targeted to the people who want something citrus.Coca Cola launches its product after they study their customers in deep detail &conclude that what their customers really wants from them. Consumers alwayswelcome Coca Cola’s product, as they know that Coca Cola is the one whoknows them the best.Cultural factors:When there is an event or an occasion Coca Cola is always there for itscustomers.Coca Cola & Cricket:Pepsi is one of the biggest official sponsors of cricket & is also the officialdrink of cricket. Coke is there, giving Pepsi a tough time. Coke hassponsored eight Pakistani cricket players. Coca Cola is targeting cricket asit is one the famous & growing all over the world.Coca Cola & Musical Concerts:When you think of Pakistani Punjabi bhangra, Abrar-ul-Haq is the first nameyou think of. Coca Cola is the official sponsor of Abrar. Coke sponsorsalmost all of the concerts of Abrar. In most of the hoardings, billboards & TVcommercials of coke, we see Abrar performing & promoting coke.Junoon is a known name all over the world. Coke targeted its customer throughmusic celebrities & ask them to perform in their concerts & commercials. You seeJunoon performing a desire of having a coke is rite in you.Coca Cola & Food Mela:This is the century when food industry is at its boom. Coca cola organizes foodmelas for the people. In Karachi, coke treated thousands of people by bringing50 bustling restaurants all together in one area. All those restaurants wereoffering coke as the only beverage in the food mela.Coca Cola & Basant:Basant is one of the biggest event in Lahore. Coke was the official decorator ofLahore hired by PHA. Coke has promoted its products so much with relevance tobasant that at basant whenever you want to drink something chilled, the firstname you think of is Coke. It is there in the mind of the people that “Where thereis Basant there is Coca Cola”.
    • - 39 -Coke in Ramzan & Eid:Eid & Ramazan is one of the holy events of muslims. Coke earns its greatrevenues in the month of Ramazan & at the time of Eid. It offers newpackaging or great discount offers also special offers at Eid.Political factor:Political factors usually effects company working on the international level doingimports & exports. Coke usually performs its operations in the local market. • Coke is not usually affected by government regulations & deregulations as no major changes occur in the food laws. • Coke is a very environmental friendly product. From the caps till the labels on the PET bottles, everything is recyclable. • Depreciation of currency generally has no major effects on Coke they really don’t do imports& exports on large scale. They try to be local market oriented, they keep at least one company owned plant in a country. • Sudden changes in political conditions in a certain country doesn’t effect much on Coke, as it is a purely consumer product. • Pressure groups tried to de-market Coke in Pakistan by spreading the rumors that the revenue collected from coke goes to the Jewish lobby.Economic factors:Economic factors do affect a company in negative & positive manner. Coke is notan exception here, it is affected if there is inflation in the country & as a resultcoke increases its prices. Pepsi is always waiting to take a competitive edge. Theincreased price is a high negative effect on coke. Coke has employed 1800workers in the last two years & huge amount of revenues have been collectedfrom Pakistan. The economy worldwide was disturbed by the incident ofSeptember 11th,2001. The disposable income of the people of Pakistan isincreasing day by day & coke that was thought as a luxury good is now becominga necessity.Social factors:Coke, a customer oriented company, always take steps for the welfare of itsconsumers. The recyclable products used in manufacturing coke helps savepeople’s environment.Coke is also helping the needy & knowledge seeking people with fewerresources by providing them books, scholarships & opportunities to work. Coke
    • - 40 -has launched a program in Gujranwala, Pakistan where it provides basiceducation to children.Coke has also launched programs to increase awareness about the conservationof water & natural resources, climate changes, waste environment education &recyclable products.Technological factors:Technology in any field is effecting the development of that industry at ahigh rate. Beverage industry is also affected by the technological factorsbut in a positive manner. The new methods of filling the bottles, therefrigeration methods, the disposable bottles, the PET bottles all made somuch changes to the Coke which is one of the giants in the beverageindustry.Coke is adopting all the new technologies available. Coke is being suppliedwith the refrigerators, visichest coolers & many more for keeping the bottleschilled, as they claim in the subcontinent "thanda matlab Coca Cola". CocaCola Company got the technology of dispensers so they give Coke to peoplethat is as fresh from the fountain. Coca Cola Company has opted thetechnology for the usage of PET bottles, which are also environmentalfriendly. Coca Cola Company opted the recycling method to keep itsenvironment clean & also to have the soft corner in peoples heart. CocaCola Company is producing new packaging sizes with differentiated packagingwith the help of new technology everyday.Demand Management:Every organization keeps a desired level of demand for its products. Demand forproducts change timely. At any point there may be no demand, adequatedemand, irregular demand or too much demand. Regarding coke there are twodifferent techniques to tackle with the demand management.Increase the Demand:Companies want to increase the demand for their products. Penetrating in themarket by lowering the price, giving discount offers and offering special packageshelp companies to ultimately increase their demand of the product. Coke followsthe same strategy. Company keeps on adjusting its price structure to attract moreand more customers. More over special packing of coke are introduced atdifferent occasions and festivals. This helps further in increasing the demand ofthis soft drink.
    • - 41 - COMPETITIVE ENVIRONMENTBuyers/CustomersCoca-Cola has there major and large customers in the market, food street 60,000cerates /year, MacDonald’s 40,000 cerates/year and Pakistan Railways who buy50,000 cerates /year.However, these three customers being large and powerful are in an influentialand bargaining position they can demand discount or others facilities like (boardssign/freezers/coolers etc.) and impose a threat to switch to their closest rival andcompetitor Pepsi.SubstitutesNestle products like juices, coffee, mineral water etc. and Shezan juices aresubstitutes of Coke for health conscious people and other fresh juices. Rivals/CompetitorsDirect CompetitorsThe direct competitor of Coca-Cola is Pepsi and that of CCBPL is PCI (Pepsicola international) there is always ongoing tuff competition between these twoarch rivals with Pepsi leading with 54% market share and Coke graduallygrowing and catching up 36% market share in Pakistan. However on global levelthe situation is reverse.Both companies often engage in price cut wars, prize scheme wars andsponsorship wars to win over each other customers.Indirect CompetitorThese include Nestle and Shezan juices who do not pose a threat to Coke as yetbut has the potential to do so as it is exploiting the natural aspect and healthissues more and more to make people conscious about physical fitness Cokehas launched “Diet Coke” to counter the physical fitness demands.Buffering and SmoothingFor beverages like Coke the buffering and smoothing policies doesn’t matter andthey don’t apply anymore because Coke remains in demand all the year round infestivals, parties, events, meetings sports etc.
    • - 42 -SuppliersCoca-Cola has authorized suppliers and which do not pose a threat to it. Anyhow Coke does have a quality check procedures in its plants to ensure that theyget the right kind of ingredients from suppliers.For exampleIf market has low quality carets of bottles by chance, they call their salesmangers to lift up all the stock from the market then inquired from the qualityinspector. They take strict notice of that .and don not take materials from thatcompany again if that default is due to the ingredient contains by it.New EntrantsCoca-Cola is not afraid of competing .it doesn’t fear loosing its share to Maka-Cola or other new entrants. The company management believes that newentrants provoke healthy competition, which will provide Coke with a challenge tohold on to its loyal customers. Besides it will take a lot of effort on the part of newentrants like Maka- Cola, Pak-cola to fully launch its product in Pakistan andcapture or even motivate people to switch on to their new product from Coke. COMPETITOR ADVANTAGES: -Brand Name, Symbol, Bottle shape.Brand name, symbol and bottle shape are distinctive features of Coca-Colawhich give it an edge over its competitors. (Even with out name people can easilyidentify Coke’s, fanta’s, and sprite’s bottle from crowd.) They can not be copiedor imitated by others.Diet Coke:Coca-Cola has successfully addressed to the needs of its health consciousoverweight customers with the launch of diet Coke. Its competitor has yet tocome up with and counter diet Coke properly.
    • - 43 -Snatching Away Customers:In the market Coke has been able to snatch large customers like Food Street,Pakistan Railways, McDonald’s, as well as Sponsorship events (basant, 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 sloganstime to time, according to the needs of the market.Speed: On time delivery in all over the Pakistan.
    • - 44 -Market Segmentation & Positioning Strategy
    • - 45 - Market segmentation:D ividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.In evaluating different market segments, a firm must look at three factors: • Segment size • Segment growth • Segment structural attractiveness and company objectives and resources. There is no single way to segment a market. The market has to trydifferent segmentation variables, alone and in combination, to find the best wayto view the market structure.Target Marketing:This is the process of evaluating each market segment’s attractiveness andselecting one or more segments to enter.After evaluating different segments, the company must now decide which andhow many segments it will target, because buyers have unique needs and wants,a seller could potentially view each buyer as a separate target market. Ideally,then, a seller might design a separate marketing program for each buyer. Thereare three types of market segments. • Undifferentiated marketing. (Mass Marketing) • Differentiated marketing. (Segmented Marketing) • Concentrated marketing. (Segmented Marketing, small segment) Coke segmentation strategy:Coca cola servers its products using mass marketing technique, which obviouslyfalls in undifferentiated marketing, and undifferentiated marketing means nosegmentation, but there are minor factors on which we can say that the cokesegments its products and then targets the customers somehow. These factorsare as follows. Geographic Segmentation:Internationally:Coke segments its products country wise and region wise, here the mostimportant thing is the taste and the quality, it varies according to the taste and theincome level of the people in that country, i.e. Third world counties are given lowquality taste.
    • - 46 -Climatic:In coke marketing, main idea is to serve it cold, so we can say that, they focusmore on hot areas of the world, i.e. middle east etc and there sale increase insummer.Locally:In Pakistan the coke segments more in urban and suburban areas as compare torural. Demographic Segmentation:Age:Internationally coke has segments the small children introducing tastes likevanilla, lime and cherry, they focus children from 4-12. Coke specifically targetmore young people than older.Family type: Coke introduces its economy pack, and that’s how they focus family andgroups. “A question to ‘Amer pasha’ Country Manager”Question:Pepsi is targeting exactly the same market, and music is also a part of theirbrand image, so where does the differentiation lie in your approach?Answer:Pepsi’s brand personality is different, ours is about togetherness, about ‘us’.Coke will always show activities, where people get together to enjoy moments oftogetherness with our brand. Our research indicates that youngsters love to gettogether, and it is when they are enjoying themselves, that will consume coke.For Pakistani youth, socializing with friends and family is ‘core’ behavior in theirlives. Coke’s brand personality is also about togetherness.Income:
    • - 47 -Coke segments different income levels by packaging. Like for small incomepeople it has small returnable glass bottle, for middle people it has nonreturnable bottle and for higher income people it has coke tin. Psychographics Segmentation:All psychographics variables the social class, lifestyle, occupation, level ofeducation and personality, coke segments everyone, but again its therepackaging which is different for different consumers. Behavioral SegmentationOccasions:Thanks to the Coca-Cola Company the local festival of Basant has become andinternational event and an identity of the culture of Pakistan. Over the year theannual spring festival of Basant has taken on mega proportions. Previouslyrestricted largely to the walled city, the festivities now flood every nook andcorner of Lahore. The credit for making the celebrations available to almosteveryone largely goes to The Coca-Cola Company. In 2003, Coke was onceagain nominated as the official sponsor for the Basant festival bye the parks&horticulture authority, Lahore for the fourth year running. In these four years, thecompany has played a pioneering role in making the Basant festival a majorsocial and culture event in Pakistan. (“The News” on 50th anniversary of theCoca-Cola in Pakistan.)Benefits Sought:Sometimes, for the promotion strategy of coke, they introduce prizes in the topcover. So they segment people by benefit sought, i.e. by giving them prizes.
    • - 48 - PositioningT he way the product is defined by consumers on important attributes, the place the product occupies in consumer minds relative to competing products. Price More Same Less MoreBenefits Same LessHere if we talk about more price and more benefits, we can discuss Pepsiand Coke. As both are the market leaders and 90% market share ofPakistan beverage industry is secure by them & the rest 10% is secure bythe rest.And we can also take Pepsi and Coke as challenger for each other as bothof them provides more for same, more for less & same for less. As they aregiving their customers more benefits for same price and also more benefitsfor less price with respect to different packaging sizes.Others colas like Macca Cola, Amrat Cola and Mountain Dew are offeringsame for same price and same benefits for more price. They are usingfollowers strategy, as they follow the other market leaders and giving theircustomers same benefits for same price. Others colas like tha bottles (localcolas) are offering less benefits for same price and less benefits for lessprice. As they have no existence in market and their products have noposition or we can say very badly positioned in consumer minds.
    • - 49 -PRODUCT STRATEGY
    • - 50 - PRODUCT STRATEGYP roduct: Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. Levels of coke as a productCore product:Core benefit is that it fulfills the thirst.Actual product:Design: Pet bottles, returnable glass bottles, economy packs.Quality: Quality differs with respect to country for example. Coca-Cola Canquality that is available in Middle East is certainly different as compared to CokeCan available in Pakistan.Product Classifications:Coke is categorized as a convenience product, because the purchasing rate isvery high and this is the product that is bought very frequently.Individual product decisions
    • - 51 - Brand Existing New Existin Line extension Brand extension Product g New Multi-Branding New brands Branding: a) Brand Equity: As far as coke is concerned brand equity for the customers is very high. People are highly brand loyal. b) Brand Strategy: The following is the brand strategy of CokeLine Extension:Line extension occurs when a company introduces additional items in a givenproduct category under the same brand name. For example if Coke introducesnew flavors and package size, it will be considered as line extension.Brand Extension:Brand extension means using a successful brand name lets say Coca-Cola and then launching new product for example cherry coke. Thiswas an example of brand extension.Multi-Branding:It means introducing additional brands in the same category. For example Coca-Cola not only introduced coke as a brand but also sprite and Fanta.Diversification:
    • - 52 -It means introducing new product with the new brand name. It meansdiversification but this is something Coca-Cola has not adopted for as yet. Product Line Decisions:Product Line Length:It means the number of products that company is offering. For example Coke,Diet Coke, Fanta , Sprite.Product Line Filling:Product line filling means that earlier when Coca-Cola started it had only oneflavor of coke available and that is classic coke but with the passage of timecompany filled the product line by adding diet coke, diet lemon etc. Advertising
    • - 53 -
    • - 54 - Advertising:T he field of advertisement is one area where Coca-Cola has always emphasized.In year 2000 Coca-Cola unveiled the biggest advertising billboards in the historyof Pakistan. Each unveiling was marked by entertainment and light showswatched by thousands of people. Similarly in July 2000 Coca-Cola launched itsfirst under the crown promotion by the name of Dream Vacations in which theconsumers could collect caps of promotional bottles of Coca-Cola like Sprite,Fanta and Coke.Advertisement Objective:Type of advertising with respect to product life cycle that Coca-Cola adopts isreminder type. The reason behind this fact is that coke is such a product that is atthe maturity level currently so for such a product companies mostly go forreminder type of advertisement so that they can penetrate more and more andsame is the case with Coke.Setting of advertising budget:Coca-Cola sets its advertisement budget on the basis of competitor basedbudgeting. Major competitor of coke is Pepsi and as coke realizes that Pepsi hasincreased its advertising budget, straight away Coca-Cola management plans todo the same so that they can compete in advertising department as well.Advertising Strategy:Before creating advertising message the Coca-Cola Company gives lots of timeto the factor that the message must gain customer attention. This is basicallycalled “ Clutter Buster” means that only that advertisement will leave impact oncustomer mind that has some specialty or uniqueness in it. For example in IndiaCoke current slogan “ Thanda Matlab Coca-Cola” has gained reasonablecustomer attention.Advertisement Media:Coca-Cola Company advertises its products mainly coke through electronicmedia that includes Television, Radio and Internet as well. Moreover leadingnewspapers of Pakistan are also the targeted by coke for advertising. So we cansay that coke not only uses electronic but print media for advertisement as well.
    • - 55 -RECOMMENDATIONS & CONCLUSIONS
    • - 56 - Recommendations:A fter completing our project we have come up with recommendations for the coca cola company, which are following. following • Currently In Pakistan there are only two flavor of coke available, company can extend their portfolio by introducing new flavors. • According to the survey, conducted by the international firm Pakistani people like less sweet cola drink. So for this coca-cola company should think about bringing a new product for example new diet flavors, in the market to fulfill the local need. • Marketing team should try to increase the availability of Coke in rural areas. • Now young generation has a trend to drink a coke 2 regular bottles at same time, so providing more satisfaction to them company should introduce ½ liter disposable bottle. • Coca Cola Company should think about producing Coke Can locally as well because currently coke Cans are only smuggled from abroad and sold at high price. Company can capitalize on this factor. • Currently two plants of coke are being run under private companies, one is in Peshawer and other in Rawalpindi. Company should plan to buy these plants as well so that customers can get equally good quality all over the country. This will help company to maintain quality control. CONCLUSIONW e have concluded from this detailed report that despite the fact Coca- cola currently occupies the market leadership position overall but it does not guarantee that the company will sustain its position in thefuture as well. In Pakistan as compared to Pepsi, Coca-Cola has less number ofconsumers as Pepsi’s market share in Pakistan is approximately 58% where ascoke market share is hovering about 32%, hence the conclusion is that Coca-Cola must enhance factors such as relationship marketing, innovation andtechnology specially in Pakistan to attain market leader position in this region aswell.
    • - 57 -
    • - 58 -Five forces applied on coca cola Traditional competition : ► Prices of Pepsi brands ► Market share ► Promotional actions of competition
    • - 59 -► Light, diet coke, cherry coke a.o variations Suppliers:► Price and availability of ingredients on world market► Quality speed safety traceability, flexibility of supply chain New entrants:► New “look-a-like” manufacturers (foreign; global competition) Substitute products :► Fashionable new drinks, Red Bull, coffee, Belgian beer, ...► Buyers/consumers:► Consumer taste, fashion quality of perception, image: Is it “cool”? or: Is it “hot”?► Combined purchase power of shops, bars, supermarkets