-609600-152400<br />Marketing Plan<br />Presented by:<br />Abiha HamidBBA-FA08-025<br />Noor ul Ain AfzalBBA-FA08-031<br />Sumaira HafeezBBA-FA08-034<br />Zara AhmedBBA-FA08-039<br />Iqra KhalidBBA-FA08-067<br />Presented to:<br />Ms. Samreen Awais<br />ACKNOWLWDGEMENT<br />First and fore mostly we would like to thank Almighty Allah who blessed us with knowledge, understanding and ability to do this project.<br />We have discovered that the work of some unknown persons makes our lives easier every day. We believe it's appropriate to acknowledge all of these unknown persons; but it is also necessary to acknowledge those people we know have directly shaped our lives and our work.<br />First of all we would like to thank our teacher Ms. Samreen Awais for her guidance throughout the semester.<br />We thank Assistant Manager Coca Cola Faisalabad Division, Mr. Mehboob Sultan, under whose kind supervision we got our required material. We are also very thankful to the Mr. Muhammad Nadeem, Head of Division Pepsi Co. Faisalabad.<br />DEDICATION<br />This project is dedicated to our parents who have enabled us to stand on our own feet and have guided us in all matters of life.<br />May Allah bless them!<br />Ameen<br />TABLE OF CONTENTS<br />Contents:Page No.<br />
We are the students of BBA studies in The University of Faisalabad and we have established this marketing plan after critically examining and thoroughly researching over it. It consists of examining market research, auditing situation analysis and carefully scrutinizing the soft drink industry and possibilities for Coca Cola in the market. We have carefully analyzed the internal and external business environments and critically examined the industry in general, considering all external threats and opportunities.<br />
The Coca-Cola Company traces it’s 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.<br />2343150127000TypeSoft Drink (Cola)ManufacturerThe Coca- Cola CompanyFounder (s)John S. PembertonCountry of OriginUnited StatesIntroduced1886Area ServedOver 200 countriesColorCaramel E-150dFlavorsCola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry.Employees92,400Servings per Day1.6 BillionWebsitewww.coca-cola.com<br />MAJOR PRODUCTS OF COCA COLA INTERNATIONAL<br />Product NameImageCoke Sprite Fanta Diet Coke Minute Maid Minute Maid Juices Kinley Drinking Water <br />
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. <br />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 their future success.<br />In Asian population, which is the satisfied customer of Coca Cola, is approximately 4.2 billion and the average consumer enjoys close to four servings of our products each month. Through an intense focus on Coca-Cola, innovation and new beverages, the company has achieved volume growth of 22 percent in 2009.<br />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.<br />
Customer satisfaction is considered as being the most important and vital things in Coca Cola’s progress.<br />The company expects to increase volume worldwide by 7 percent with strong international growth of 8.2 percent by 2010. It focuses on:<br />
Getting new potential customers, side by side retaining old ones.
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.<br />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.<br />Pepsi Co. has focused on these marketing principles to attain their higher share of market in Asia:<br />
The Coca Cola Company has always focused on portraying a simple yet strong brand image. Their motto was:<br />Know the most recognized word on the planet after “OK”!<br />3608070986790In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler 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.<br />Major Products (Asia):<br />
Any company can only exceed its sales and profits if it has an excellent marketing strategy and if it is bringing innovation in its resources with every passing day.<br />The company has generated free cash flow of $14.1 billion, up from $11.8 billion in 2008, a clear indication of its underlying financial strength. This increase is contributed to Coca Cola’s changing marketing strategy. They have focused on increasing sales in Asia as a foremost ingredient since the last few years as coca cola did not have a large market share previously. They have competed well against Pepsi Co. in getting a reasonable market share.<br />
According to the 2005 Annual Report, the company sells beverage products in more than 200 countries. The report further states that of the more than 50 billion beverage servings of all types consumed worldwide every day, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion. Of these, beverages bearing the trademark "
accounted for approximately 78% of the Company's total gallon sales.<br />Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:<br />37% in the United States<br />43% in Mexico, Brazil, Japan and the People's Republic of China<br />20% spread throughout the rest of the world<br />In 2010 it was announced that Coca-Cola had become the first brand to top £1 billion in annual UK grocery sales.<br />
Coke segments different income levels by packaging. Like for people with a low level of income, it has small returnable glass bottle, for the mediocre class it has non returnable bottle (NRT) and for people with a high level of income it has Coke tin.<br />Sometimes, for the promotion strategy of coke, the Coke Company introduces prizes on the top cover. So they segment people by benefit sought, i.e. by giving them prizes.<br />Coke will always show activities, where people get together to enjoy moments of togetherness with our brand. Research analysis indicates that youngsters love to get together, and it is when they are enjoying themselves, that will consume coke. For Pakistani youth, socializing with friends and family is ‘core’ behavior in their lives. Coke’s brand personality is all about togetherness.<br />At times, Coca Cola Intl seeks to promote itself through sponsoring events. Since many years, Basanat festival has somewhat become “Coke Festival”. <br />
In coke marketing, main idea is to serve it cold, so we can say that, they focus more on hot areas of the world, i.e. middle east etc and there sale increase in summer.<br />The market needs vary with time and Coke Intl. introduces its products over time e.g. Coke Cherry etc.<br />
The behavior of Pakistani market has always been orientated on “WHATS COLD GETS SOLD”. People normally focus on buying anything that is cold either Pepsi or Coke. The market behavior in Pakistan has not changed a lot as people are not entirely health conscious but over a few years due to increasing awareness of obesity, people have adopted an alienated behavior to soft drinks, which is why Coca Cola Intl. has provided them with the perfect solution i.e. provide a product exactly when it is needed. Yes, we are talking about Diet Coke; introduced in 2001 to meet the growing market needs.<br />
Market Share Growth Rate:
Worldwide on global level Coca-Cola is the most popular brand and market leader and carry 60% of market share.<br />In Pakistan due to above reasons Coca –cola is the market follower but still in a very strong and stable position holding 36% of the local market share with a growing and increasing market share every year.<br />GROWTH RATE IN MARKET SHARE GEOGRAPHICALLY<br />Unit Case Volume2008 vs. 2009 Growth Rate2008 vs. 2009Growth5-YearAnnual GrowthNet OperatingRevenuesOperatingIncomeAfrica10%6%16%6%Eurasia16%13%24%38%European Union3%2%14%16%Latin America9%6%24%22%North America(1%)1%11%1%Pacific7%4%7%3%Bottling Investments64%N/A53%750%Worldwide6%4%20%15%<br />
Coca Cola Company can also identify its expansion through the ANSOFF approach.
Coca Cola in Pakistan is doing market penetration through the selling its products to the business buyer, who are huge multinational organizations like McDonalds, Subway, Dunkin Donuts & many more & they are also keeping the local market in focus. Fri Chicks, AFC etc are examples of the buyers in the local market. They are selling the Coca Cola as the only beverage in their restaurants.
Market Development is exploring new markets for the products you are already selling. Many flavors of coca cola are not being sold in Pakistan. Coca cola can develop a new market if they introduce those flavors in Pakistan.
StrengthsWeaknessesInternal-Popularity-well known-branding obvious and easily recognized-A lot of finance-customer loyalty-International Trade-Word of mouth -lack of popularity of many Coca Cola’s brands -Most unknown and rarely seen -result of low profile or non-existent advertising -health issues ThreatsOpportunitiesExternal-changing health-consciousness attitude -legal issues -Health ministers-competition (Pepsi)-many successful brands to pursue-advertise its less popular products-buy out competition. -More Brand recognition <br />SWOT analysis is a technique much used in much general management as well as marketing scenarios. SWOT consists of examining the current activities of the organization- its Strengths and Weakness- and then using this and external research data to set out the Opportunities and Threats that exist.<br />
Coca-Cola has been holding a large part of world culture for a very long time. Coca cola has focused on brand image and brand loyalty along with providing supreme taste and quality. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greatest strengths. <br />"
Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment"
(Allen, 1995). <br />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. <br /> In Pakistan, people don’t care before drinking that whether it is “Pepsi” or “Coke”. They don’t actually differentiate between these two brands in order to their tastes.<br />Consumers basically drink what they get.<br />They believe on “WHATS COLD GETS SOLD”<br />Consumer’s availability in brands is basically works like:<br />
For this reason Coca-Cola Intl has 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.<br />
Coca-Cola has had some "
declines in unit case volumes in the South East Asia due to reduced consumer purchasing power”.<br />Coca-Cola contains caffeine and caramel which can adverse effects on the teeth (if prolonged) 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.<br />Another weakness which may be considered regionally is its sugar content. Pepsi Co. makes its sales only because Pepsi is so far, having a larger market share only because it is more sugary and Asian people focus on sugary drinks.<br />
Brand recognition is an important factor in affecting Coke's competitive position. Coca-Cola's brand name is known well throughout 94% of the world today. The main concern of Coca Cola Marketing Strategies has been just to improvise its system and make it even more recognizable. The bottling system of Coca Cola allows the company to take advantage of its growth opportunities. The coke team has been working strenuously in Pakistan gaining supporters via Mass marketing and Promotional tools.<br />
The main threat is Price. A small increase in price, let’s say just 1 rupee will have a drastic effect on sales. Only because people will go for the next available substitute i.e. Pepsi so price change is a major factor in affecting Sales of coca cola and in marginal profits. Coca Cola can face major losses if it goes for a sudden increase or decrease in price.<br />Contradiction: Some analysts assume that new competitors can also have an effect on Coke Sales. But actually, new comers have some what a very less contribution because Soft Drink industry is in itself a very vast and strong industry. New competitors can never make their way up to Coke’s level in a even 10 years to come.<br />A possible threat may be the increasing health awareness. People have recently become more conscious about health issues. 60% of the world’s population does not drink carbonated drinks (due to poverty and /or health issues).<br />Another threat is the increasing rivalry between Pepsi and Coke. This has somewhat changed customer perceived value and now both competitors have to respond to an ever increasing demand and attributes of consumers.<br />
The major competition faced by Coca Cola International is Pepsi Co. 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.<br />2419350328930<br />Major Pepsi Co. products include:<br />
A common criticism of Coke based on its allegedly toxic acidity levels has been found to be baseless by researchers; lawsuits based on these notions have been dismissed by several American courts for this reason. Although numerous court cases have been filed against The Coca-Cola Company since the 1920s, alleging that the acidity of the drink is dangerous, no evidence corroborating this claim has been found. Under normal conditions, scientific evidence indicates Coca-Cola's acidity causes no immediate harm.<br />Coca-Cola has been criticized for alleged adverse health effects, its aggressive marketing to children exploitative labor practices, high levels of pesticides in its products, building plants in Nazi Germany which employed slave labor, environmental destruction, monopolistic business practices, and hiring paramilitary units to murder trade union leaders. In October 2009, in an effort to improve their image, Coca-Cola partnered with the American Academy of Family Physicians, providing a $500,000 grant to help promote healthy-lifestyle education; the partnership spawned sharp criticism of both Coca-Cola and the AAFP by physicians and nutritionists.<br />
Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that can 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.<br />-1228301654024<br />
“Our mission statement is to maximize shareowner value over time”<br />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:<br />Consumer demand drives everything we do.<br />Brand Coca Cola is the core of our business <br />
We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink throughout the day.
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 customers and helping them grow their beverage businesses. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. <br />Aims:<br />
People: Being a great place to work where people are inspired to be the best they can be.
Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.
Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value.
Planet: Being a responsible citizen that makes a difference by helping build and support sustainable communities.
Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities.
All Coca Cola Intl. plants setup their own goal to achieve the objective.<br />The company goal is:<br />“To increase sales volume and gain market leadership in Lahore.”<br />The company aims to achieve sales level of $35,000,000,00 by the end of year 2010. The sales level for year 2009 was $31,944,000,00.<br />
The target market for Coca cola is very wide as it satisfies the needs for many different consumers, ranging from the healthy diet consciousness through Diet Coke to the average human through its best selling drink regular Coke. Most Coke products satisfy all age groups as it is proven that most people of different age groups consume the Coca Cola product. This market is relatively large and is open to both genders, thereby allowing greater product diversification.<br />Coke’s 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.<br />
The strategy for the future of the company is very straightforward. The marketing strategy for the year 2010 is as follows:<br />
Accelerate carbonated soft-drink growth, led by Coca-Cola.
Selectively broaden the family of beverage brands to drive profitable growth.
Grow system profitability and capability together with our bottling partners.
Serve customers with creativity and consistency to generate growth across all channels.
Direct investments to highest potential areas across markets.
Drive efficiency and cost-effectiveness everywhere.
The marketing mix is probably the most crucial stage of the marketing planning process. The marketing mix refers to the combination of the four factors (price, promotion, product, and place) that make up the core of a business’s marketing strategy.<br />
Businesses must think about products on three different levels, which are the core product, the actual product and the augmented product. The core product is what the consumer is actually buying and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The actual product is the parts and features, which deliver the core product. Consumers will buy the coke product because of the high standards and high quality of the Coca Cola products. The augmented product is the extra consumer benefits and services provided to customers. Since soft drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a help line and complaint phone service for customers who are not satisfied with the product or wish to give feedback on the products.<br />
Over the time Coca Cola has spent millions of dollars developing and promoting their brand name, resulting in worldwide recognition. 'Coca-Cola' is the most recognized trademark, recognized by 94% of the world's population and is the most widely recognized word after "
. Coca Cola’s red and white colors and special writing are all examples of world-wide trademarks.<br />There are a number of branding strategies:<br />
Coca Cola utilizes the Individual brand strategy as Coca Cola’s major products are given their own brand names e.g. Fanta, Sprite, Coca Cola etc although they may be presented as different lines they operate under the name of Coca Cola. <br />
The Coca Cola Company has always focused wide scale distribution. This is the reason, 94% of the world’s population knows about Coke. “Coca Cola” is the most recognized word after OK.<br />Coca Cola sets its own distributions directly to stores. Stores include a wide variety of Supermarket, Marts, Convenience Stores, Retail Stores and Departmental Stores. The channel distribution of Coca Cola Intl is extremely large.<br />Over time, they have produced many products and thus have increased number of warehouses for specific products.<br />Coca Cola Intl has also improved services via setting up a national service network.<br />960745298441<br />
Since Coca Cola Intl faces a major threat from its competitor Pepsi Co., so naturally the Pricing is done keeping in view the increasing rivalry with Pepsi. Pricing is basically standard for all over the world. Price changes occur seldom after a longer period of time say, a year etc. Mostly prices are devoid of governmental and/or political laws and regulations but in Pakistan, due to an ever increasing rate of Inflation, prices have increased in a short span of time.<br />9334503517900JO CHAHO HO JAYE, COCA COLA ENJOY!!!<br />
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 2008 and 2009 along with the percentage change is as follows. <br />Year Ended December 31,<br />(In millions except per share data, ratios and growth rates)<br />20092008Δ%Net operating revenues31,944288571%Operating income8,4467,25245%Net income5,8746,02782%Net income per share (basic)1.6010.88282%Net income per share (diluted)1.6010.88282%Net cash provided by operating activities4,1103,58515%Business reinvestment(963)(779)24%Dividends paid(1,791)(1,685)6%Share repurchase activity(277)(133)108%Free cash flow3,1472,80612%Return on capital26.6%16.2%-Return on common equity38.5%23.1%-Unit case sales (in billions) International operations12.511.95% North America operations5.35.22% Worldwide17.817.14%<br />2008 basic and diluted net income per share included a non-cash 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.<br />2009 basic and diluted net income per share includes the following charges: <br />
$.24 per share after income taxes related to an organizational Realignment.
$.19 per share after income taxes related to the Company's portion of charges recorded by the investors of the company.
$.16 per share after income taxes related to the impairment of certain bottling, manufacturing and intangible assets.
$.05 per share after income taxes related to the settlement terms of a discrimination lawsuit.
Break Even is calculated as follows:<br />Break Even = Total Fixed Cost(1-Total Variable CostsTotal Sales)<br />For Coca Cola Intl. the break even calculated for the Year 2009 was:<br />Break Even = $11,088,000,00<br />Source: http://www.thecoca-colacompany.com/ourcompany/company_reports.html<br />
Sales and Income Data in Millions20052006200720082009Net Sales$21,742$23,104$24,088$28,857$31,944Net Income (Profits)$4,847$4,872$5,080$5,981$5,807Units sold in Billions19.820.621.422.723.7<br />
After completing our project we have come up with following recommendations for the Coca Cola Company, which are following:<br />
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 an international firm Pakistani people like less sweet cola drink. So the Coca-Cola Company should think about bringing innovations in their products for example new diet flavors or maybe more juices so as to fulfill the need of local market.
Marketing team should try to increase the availability of Coke in rural areas.
Coca Cola Company should think about producing Coke Can locally. Because currently coke Cans are only smuggled from abroad and sold at high prices. The Coca Cola Company can capitalize on this factor.