Project report on coca cola marketing mix

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Project report on coca cola marketing mix

  1. 1. 1 PROJECT REPORT ON MARKETING MIX COCA COLA Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  2. 2. 3 . 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-to–drink 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 customers and helping them grow their beverage businesses. We strive to understand each customer’s Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  3. 3. 5 COCA COLA INTERNATIONAL HHIISSTTOORRYY:: 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 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. 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 company- owned operations with two large ownership groups that Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  4. 4. 7 employees all over the world. It is often referred to simply as Coke or (in European and American countries) as Cola or Pop. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  5. 5. 9 MMAARRKKEETT SSHHAARREE: 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. GGLLOOBBAALL MMAARRKKEETT SSHHAARREE:: The following table can show the worldwide operating segments. (Table) Unit case growth Non- alcoholic drink All commercial Beverages 10 year compound annual growth 5-year compound annual growth 2001 annual growth 2002 2002 Compan y Industry Compan y Industry Compan y Industry Company share Compan y share Compan y per capita Income 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 Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  6. 6. 11 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  7. 7. 13 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 Coca- Cola company's actual results to differ materially from the expected results described in their underlying company's forward statement:-  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.  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.  Political conditions, especially in international markets, including civil unrest, government changes and Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  8. 8. 15 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 company’s 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 Coca- Cola Company will sell its products for less and the people will spend as they would get cheap products from Coca-cola. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  9. 9. 17 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  10. 10. 19 MMAARRKKEETT SSHHAARREE BBYY AARREEAA:: 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 AMERICA LATIN AMERICA EUROPE & MIDDLE EAST ASIA AFRICA 30% 25% 22% 17% 6% Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  11. 11. 21 Country Unit case growth Non- alcoholi c Drinks All commercial Beverages 10 year compound annual growth 5-year compound annual growth 2002 annual growth 2002 2002 Compan y Industry Compan y Industry Compan y Industry Compan y share Compan y share Company per capita Income North America 4 5 3 3 2 2 22 15 398 United States 4 5 3 3 2 2 23 16 419 Latin America 6 7 6 6 3 4 24 15 205 Argentin a 7 4 6 2 7 2 20 10 236 Brazil 5 5 3 6 3 5 23 13 144 Chile 9 6 5 3 (2) 3 56 23 336 Mexico 7 10 8 9 2 5 22 18 462 Europe & Middle East 6 3 5 3 2 4 12 6 72 Eurasia 17 8 6 5 (14) 1 14 5 39 France 8 3 9 3 7 3 9 5 110 German y 1 2 (1) 1 (6) 1 14 7 193 Great Britain 8 2 11 2 8 3 17 6 193 Italy 1 3 4 3 2 2 9 6 104 Middle East 12 12 7 5 4 8 8 3 17 Spain 6 4 8 5 4 4 17 12 264 Asia 7 6 6 7 10 7 14 5 23 Africa 7 6 8 3 10 6 34 11 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 Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  12. 12. 23 FFIINNAANNCCIIAALL RREEPPOORRTT:: 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 20,092 19,889 1% Operating income 5,352 3,691 45% Net income 3,969 2,177 82% Net income per share (basic) 1.601 0.882 82% Net income per share (diluted) 1.601 0.882 82% Net cash provided by operating activities 4,110 3,585 15% Business reinvestment (963) (779) 24% Dividends paid (1,791) (1,685) 6% Share repurchase activity (277) (133) 108% Free cash flow 3,147 2,806 12% Return on capital 26.6% 16.2% - Return on common equity 38.5% 23.1% - Unit case sales (in billions) International operations 12.5 11.9 5% North America operations 5.3 5.2 2% Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  13. 13. 25 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  14. 14. 27 Coverage of North American Can/bottle volume 83% 74% EBITDA is the Earnings before interest, taxes, depreciation, and amortization, and other non-operating items.  Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable securities.  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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  15. 15. 29 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 it’s 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 strategy—water. By the end of 2009, it’s 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  16. 16. 31 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 Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  17. 17. 33 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  18. 18. 35 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 product- service 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 Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  19. 19. 37 Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  20. 20. 39 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 COCA-COLA Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  21. 21. 41 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  22. 22. 43  Petroleum Retailers  Chain Drug Stores  Hotels/Motels/Resorts  Mass Merchan-disers  U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and DECA  Vending 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 Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  23. 23. 45 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  24. 24. 47  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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  25. 25. 49 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, Coca- Cola began to sell a new "healthy soda": Diet Coke with Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  26. 26. 51 Pepsi’s Products  Pepsi  Teem  Mirinda  Pepsi Max  Pepsi Lemon  Pepsi Blue  Mountain Dew  7up Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  27. 27. 53 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 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. 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  28. 28. 55 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 Coke’s 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 Coke’s selling. This is underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%. MAJOR CUSTOMERS NEED First of all the majority don’t care that what they are going to have. In other words, they 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. Consumers basically drink what they get. They believe on “WHAT COLD THEY SOLD” Consumer’s availability in brands is basically works like: Push availability Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  29. 29. 57 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 it’s 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  30. 30. 59 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.  Consumer has choice  Attractive brand name  Brand differentiating Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  31. 31. 61 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 Coke’s 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 won’t 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  32. 32. 63 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  33. 33. 65 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 that’s 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  34. 34. 67 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  35. 35. 69 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  36. 36. 71 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  Sales volume  Profitability  Target volume Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  37. 37. 73 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 Pakistan’s 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-haq’s 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 Coca- Cola’s commitment towards providing healthy & fun-filled Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  38. 38. 75 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 children’s 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 & passerby’s during Lahore’s hottest summer season, Coca-Cola’s “GO- RED” 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  39. 39. 77 Coca-Cola Ramzan Campaign A very special occasion for the people of Pakistan Ramzan saw another very special Coca-Cola’s promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with a super price-off promotion. The emphasis on enjoying Coca- Cola 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 Coca- Cola, 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 thousand’s of Coca-Cola branded Nokia 3310 cellular phones on every Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  40. 40. 79 essence. The Coca-Cola Company declared the new “Non- Returnable” 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  41. 41. 81 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. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  42. 42. 83 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 health- consciousness 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 Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  43. 43. 85 RECOMMENDATIONS After completing our project we have concluded some recommendation for the coca cola company, which are following.  Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers.  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.  Marketing team should try to increase the availability of Coke in rural areas.  They should also focus the old people.  Now young generation has a trend to drink a coke 2 regular bottles at same time, so providing more Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  44. 44. 87 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 Coke’s reputation. And the second thing in political variables which effects Coke is “elections & military take over” Because in the days of elections and marshal law’s 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 coke’s industry. ECONOMICAL VARIABLES Economical Variables Strongly Effected  Some what Effected  No Effect   Some what Effected  Strongly Effected  Do soaring interest rates make business task any harder YES Any effect due to inflation YES Anything done to reduce unemployment YES Any effect of 11th September 2001, incident at Coke in Pakistan NE Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  45. 45. 89 How will do Coke’s contribution affect charity organizations of Pakistan YES Has rising consciousness of natural resources in people effected your “save environment activities. 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. We’re committed Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  46. 46. 91 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 coke’s 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 it’s 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 Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  47. 47. 93 DATA ANALYSIS 1. Have you ever tried the product (Coca-Cola)? 0 5 10 15 20 25 30 35 yes no Out of the 30 people we surveyed, all of them said they had tried Coca-Cola atleast once. This explains the brand awareness of Coca-Cola. 2. Gender Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  48. 48. 95 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)? yes 77% no 23% From the analysis, it was found that majority of 77% (23 people) respondents said they enjoyed drinking Coca- Cola as against 23% (7 people) who said they preferred other drinks. 5. What brand would you say is more popular among the public? a)Coca-Cola b)Pepsi c) Other Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  49. 49. 97 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? 0 5 10 15 20 25 cheap slightly overpriced expensive As seen in the above figure, a majority of 23 people out of the 30 respondents thought that the Coca-Cola Cans are slightly overpriced with a few people also rating it as expensive. 8. If you were to see the Coca-Cola logo somewhere would you recognize it? Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  50. 50. 99 frequently. This shows the brand loyalty of the customers towards Coca-Cola. 10. Where do you buy Coca-Cola products the most? 0 5 10 15 20 super markets general stores Restaurants As seen in the above chart, customers usually preferred to buy Coca-cola in restaurants like KFC, Mc Donalds, Sub-Way etc. The second largest option was General stores stocking Coca-Cola. Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  51. 51. 101 public relations and corporate image. Coca-Cola sponsors a lot of events including sports and recreational activities. So… “ Jo chaho ho jaye coca- cola enjoy ” Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  52. 52. 103 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:  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.  Profit generation: In the SWOT analysis we have seen there is a great opportunity products, these can be turnkey for Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  53. 53. 105 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? Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA
  54. 54. 107 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! Forfullprojectcopycontact9998778903orvisitwww.kalalunsons.com -ServicesbyNiRm AL PaLA

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