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Marketing Management Final Report Marketing Management Final Report Document Transcript

  • HAMDARD UNIVERSITY Pursuit of Excellence FINAL REPORT COCA COLA PAKISTAN MARKETING MANAGEMENT HAMDARD UNIVERSITY CITY CAMPUS 1HAMDARD INSTITUTE OF MANAGEMENT SCIENCES 1
  • Name of Group Member Rehan Ahmed Sadaf FarooqSubmitted by: Sir Syed Faiz-ul-Ullah Jawad 2
  • Acknowledgement After in-depth study of Marketing Management, we are finallysucceeded to complete the progress report of Marketing Management on CocaCola Pakistan Mr. Sir Syed Faiz-ul-Ullah Jawad being the instructor of this particularcourse remained very cooperative and helpful throughout the term to giveguidelines and make rational decisions. We are grateful to him for his kindsupervision. Each of our group members felt his responsibility to accomplish task ofhis part adequately. This collaboration resulted in the successful MarketingManagement progress report on Coca Cola Pakistan. 3
  • TABLE OF CONTENT 1. Executive Summary ………………………………………… 06 2. Company Introduction……………………………………… 07 3. Vision Statement…………………………………………….. 08 Mission Statement………………………………………… 08 Shared Values…………………………………………......... 09 Objective of Coca Cola Pakistan…………………………. 10 Goals of Coca Cola………………………………………... 10 Marketing Objectives……………………………………... 104. Current Marketing Situation……………………………..…. 13 a) Marketing Description……………………………….. 13 b) Benefits and Product features……………………….. 14 c) Product Review………………………………………... 15 d) Competitive Review…………………………………… 155. SWOT Analysis……………………………………………….. 186. Marketing Strategy………………………………………….. 21 a) Positioning……………………………………………. 21 b) Product Strategy…………………………………….. 22 c) Pricing Strategy……………………………………… 24 d) Distribution Strategy……………….…………….…. 27 e) Marketing Communication Strategy……………… 28 f) Marketing Research………………………………… 307. Action Program……………………………………………… 318. Budget………………………………………………………… 319. Controls……………………………………………………… 3210. Bibliography……………………………………………….. 33 4
  • Coke 5
  • 1. EXECUTIVE SUMMARYRole of Marketing Department in the improvement process continues to be atthe vanguard of strategy contest not only in this part of the world (Pakistan) butalso in other countries. Most of the specifics about promoting brands have beenrenowned in the entire world. The competitive allege for marketing departmentare infinite, containing promotions and strategies that make possible for themto survive in persistently varying environment (Such as technology) of world.By applying international marketing concepts the company can acquiremultinational status with a reputed brands and the company is globallyrecognized for the quality and standard.Coca-Cola‟s headquarter is in USA and there are more than 200 countries inwhich it is acting as a host company. In Pakistan there are 9 plants and over1800 employees, 8 plants are functional and three plants in Lahore, Gujranwalaand Rahimyar Khan have achieved the Quality system award.Coca-cola with its 450 brands is claiming to be the world‟s best non-alcoholicbeverage maker and is yet proving his claim by having 63% share in the worldmarket and they are fulfilling their promise to maintain a standard and provingto become a quality symbol. And their aim is to serve the nation by makingonly non-alcoholic drinks and to give the world a cool and fresh treat. 6
  • 3. Company IntroductionThe Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta andSprite are the brands with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in Pakistan operates through eight bottlers, four of which aremajority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). TheCCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad,Rahim Yar Khan, Multan and Lahore. The Coca-Cola System in Pakistanserves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan hasnearly 3,000 people working constantly for the company. During the last twoyears, The Coca-Cola Company in Pakistan has invested over $130 million(U.S) and coke has successfully provided 56 years of dedicated service to itscustomers in Pakistan. Since the beginning of Coke Company the firm has beencontinuously changing its slogans and that‟s a very creative idea to get theattention of the customers.Today CCBPL is operated directly under the supervision of the Coca-ColaInternational based in Atlanta Georgia State___ USA .It owns 8 plants allaround in Pakistan. Coca Cola Company offers the brand range as Coca Cola,Diet Coke, Fanta, and Sprite in Pakistan.➢ Coca-Cola introduced in Pakistan 1953➢ Diet Coke 2001 7
  • 3. VISION STATEMENTOur vision guides every aspect of our business by describing what we need toaccomplish in order to continue achieving sustainable growth.➢People: Be a great place to work where people are inspired to be the bestthey can be.➢Portfolio: Bring to the world a portfolio of quality beverage brands thatanticipate and satisfy peoples desires and needs.➢ Partners: Nurture a winning network of customers and suppliers, togetherwe create mutual, enduring value.➢Planet: Be a responsible citizen that makes a difference by helping build andsupport sustainable communities.➢ Profit: Maximize long-term return to shareowners while being mindful ofour overall responsibilities.➢ Productivity: Be a highly effective, lean and fast-moving organization.MISSION STATEMENTMission statement is a statement of organization‟s purposes that what it wantsto accomplish. In order to achieve mission of increasing market share andmaintaining good relations with our customers all over the world, we wish tocreate value for all the constraints we serve, including our consumers, ourbottlers, and our communities. The Coca Cola Company creates value byexecuting business strategy guided by four key beliefs:➢Customer is king; Customer demand drives everything we do.➢Brand Coca Cola is the core of our business.➢We will serve consumers a broad selection of the nonalcoholic ready-to-drink beverages they want to drink throughout the day.➢We will be the best marketers in the world. 8
  • 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.SHARED VALUESOur values serve as a compass for our actions and describe how we behave inthe world.➢Leadership: The courage to shape a better future➢Collaboration: Leverage collective genius➢Integrity: Be real➢Accountability: If it is to be, its up to me➢Passion: Committed in heart and mind➢Diversity: As inclusive as our brands➢Quality: What we do, we do well 9
  • OBJECTIVE OF COCA COLAThe company has sales based objective .Everything 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 as possibleduring the current fiscal year.” The company sets its objective keeping in view the past performance,Historical trends, current market position, economic condition, macroenvironment and micro environment factors, social values, market size andgrowth 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.”MARKETING OBJECTIVESThe objective is the starting point of the marketing plan. Objectives shouldseek to answer the question Where do we want to go?. The purposes ofobjectives include: To enable a company to control its marketing plan. To help to motivate individuals and teams to reach a common goal. To provide an agreed, consistent focus for all functions of an organization. 10
  • A) MARKET SHARE OBJECTIVESTo gain 60% of the market for soft drinks industry B) PROFITABILITY OBJECTIVESTo achieve a 20% return on capital employed by August 2007 C) PROMOTIONAL OBJECTIVESTo increase awareness of the product on the market. D) OBJECTIVES FOR SURVIVALTo survive the current market war between competitors. E) OBJECTIVES FOR GROWTHTo increase the size of the worldwide Coca Cola enterprise by 10%.PROMISE OF COKEThe basic proposition of our business is simple, solid and timeless. When webring refreshment, value, joy and fun to our stakeholders, then we successfullynurture and protect our brands, particularly Coca-Cola. That is the key tofulfilling our ultimate obligation to provide consistently attractive returns to theowners of our business.TARGET MARKETCoke‟s commercials basically based on young generations, so, the younggeneration is the target market of Coke because they want to represent Cokewith the youth and energy but they also consider about the old people they takethen as a co-target market. 11
  • MAJOR SEGMENTSMajor segments are basically those people who take this drink daily and thoseareas where the demands are higher than the other areas. There are so manypeople who take this drink daily and those people who take weekly and thosewho take less often are always there as well. So, their basic segments are thosepeople who take this drink regularly.FACTORS EFFECTING SALESThere are so many factors, which affects the sale of coke. Here we arediscussing three major factors which effects coke. Per capita income Competitors WeatherPER CAPITA INCOMEFirst we will discuss about “Per capita income”. This is major factor thataffects the sale of this soft drink. Because which every passing year budgets arebecoming very strict and tight in order to purchase things. So the disposableincomes of the people are coming down. They spend heavily on rents, utilities,and education and basic necessities and after that when they get extra moneythey think about this soft drink .So the decreasing per capita income effectsbadly in selling and production of this soft drink.And to get through with this difficulty there is need to increase the level of percapita income of Pakistan because it is much lesser than the rest of thecountries.COMPETITORSCoke‟s major competitor is “PEPSI” and there is no hesitation to say thesebecause everyone knows that and all the other cold drinks and water, coffee,tea are the competitors. 12
  • WEATHERWeather is the third major factor in effecting the Coke‟s selling. This isunderdeveloped market so the coke‟s consumption in summers is 60% and inwinters is 40%.4. CURRENT MARKETING SITUATIONBeverages are a major consumer able item and there is a huge demand andpotential in this market particularly the nonalcoholic ready to drink soft drink.The nonalcoholic ready to drink beverage has grown year on year and as aresult, the pie is growing bigger every year. a) MARKET ANALYSISThe market analysis investigates both the internal and external businessenvironment. It is vital that Coca Cola carefully monitor both the internal andexternal aspects regarding its business as both the internal and externalenvironment and their respective influences will be decisive traits in relation toCoke‟s success and survival in the soft drink industry.INTERNAL BUSINESS ENVIRONMENTThe internal business environment and its influence is that which is to someextent within the business‟s control. The main attributes in the internalenvironment include efficiency in the production process, through managementskills and effective communication channels. To effectively control andmonitor the internal business environment, Coke must conduct continualappraisals of the business‟s operations and readily act upon any factors, whichcause inefficiencies in any phase of the production and consumer process.EXTERNAL BUSINESS ENVIRONMENTThe External business environment and its influences are usually powerfulforces that can affect a whole industry and, in fact, a whole economy. Changesin the external environment will create opportunities or threats in the marketplace Coca cola must be aware off. Fluctuations in the economy, changingcustomer attitudes and values, and demographic patterns heavily influence thesuccess of Coca Cola‟s products on the market and the reception they receivefrom the consumers. 13
  • b) BENEFITS AND PRODUCT FEATURESBENEFITSStrive TO OFFER beverages FOR EVERY LIFESTYLE ANDOCCATION WHILE THE PROVIDING QUALITY that consumers trust.Attributes must be translated into functional and emotional benefits.FEATURES Coke is having difference in taste than Pepsi due to having difference in ingredients. Coke has maintained global leadership in soft drink industry. Coke is trying to focus on worldwide expansion of the cola market. Coke must try to focus on its relationships with bottling subsidiaries. Coke is facing a major challenge in developing countries that their regional bottlers may not have the financial resources to continue expansion. The brands are trying to create world-wide economic development and population growth to sustain sales and profits 14
  • c) PRODUCT REVIEWCoca-Cola has, and still, continued to reign in the consumers market stunningother companies with their artistic and viewer-friendly commercials Coke is having difference in taste Coke has maintained global leadership in soft drink industry Coke is trying to focus on worldwide expansion of the cola market d) Competitive ReviewBUYERS/CUSTOMERSCoca-Cola has three major and large customers in the market, food street60,000 cerates /year, MacDonald‟s 40,000 cerates/year and Pakistan Railwayswho buy 50,000 cerates /year.However, these three customers being large and powerful are in an influentialand bargaining position they can demand discount or others facilities like(boards sign/freezers/coolers etc.) and impose a threat to switch to their closestrival and competitor 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 globallevel the situation is reverse.Both companies often engage in price cut wars, prize scheme wars andsponsorship wars to win over each other customers. 15
  • INDIRECT COMPETITORSThese include Nestle and Shezan juices that 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 matterand they don‟t apply anymore because Coke remains in demand all the yearround in festivals, parties, events, meetings sports etc.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 thatthey get the right kind of ingredients from suppliers.NEW ENTRANTSCoca-Cola is not afraid of competing .it doesn‟t fear losing its share to Mecca-Cola or other new entrants. The company management believes that newentrants provoke healthy competition, which will provide Coke with achallenge to hold on to its loyal customers. Besides it will take a lot of effort onthe part of new entrants like Mecca- Cola, Pak-cola to fully launch its productin Pakistan and capture or even motivate people to switch on to their newproduct from Coke.COMPETITIVE ADVANTAGESBRAND NAME, SYMBOL, BOTTLE SHAPE.Brand name, symbol and bottle shape are distinctive features of Coca-Colawhich give it an edge over its competitors. (Even without name people caneasily identify Coke‟s, fanta‟s, and sprite‟s bottle from crowd.) They cannot becopied or imitated by others. 16
  • DIET COKECoca-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 properlySNATCHING AWAY CUSTOMERSIn 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 slogans time to time, according to the needs of the market. Speed: On time delivery in all over the Pakistan.THREATS AND OPPORTUNITIES FOR PRICEOPPORTUNITIESIf 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 BudgetAfter paying all these taxes coke has to pay electricity charges. We have tospend on distributions. After paying all these expenses Coke‟s margin squeezedand consumers have to pay for increasing tariffs.These are the opportunities through which we can increase the price and canget profits. 17
  • THREATSThere are much more threats in increasing prices. Because same problem ofsubstitute. If Coke increases the price let‟s say 1 rupee. Then people definitelywon‟t go for coke. They have the best substitute of Coke that is Pepsi. So theseare the threats in increasing prices. Coke will lose the margin of its profit andcan face loss.5. SWOT ANALYSISSWOT Analysis is a strategic planning tool used to evaluate the Strengths,Weaknesses, Opportunities and Threats inside a company, project, or abusiness venture. It involves identifying the internal and external factors thatare favorable/ unfavorable for business toSucceed.INDUSTRIAL SWOT ANALYSISSTRENGTHSThe soft drinks market in Pakistan enjoyed dynamic growth over the reviewperiod in both volume and current value terms. Carbonates dominate themarket in both the on-trade and Off-trade with the lion‟s share of sales.Carbonates have become part of the culture in Pakistan and multinationalcompanies have maintained their standards over the years to provide consumerswith high quality carbonated drinks. Off-trade sales of carbonates are higherthan those of the on-trade but both achieved strong growth over the reviewperiod.WEAKNESSESLiquid concentrates and power concentrates are both seasonal categories in themarket and their sales peak in the summer in Pakistan. Both Rooh Afza andJam-e-Shirin are traditional sandalwood drinks in Pakistan which are highlyregarded by consumers. These drinks can be found in every home in Pakistan,especially in rural areas throughout the summer and are the mainstay of liquidconcentrates. 18
  • OPPORTUNITIESThe Government of Pakistan has reduced excise taxes to encourage soft drinksmanufacturers and importers. The Government also reduced other applicabletaxes to promise more profit not only for soft drink manufacturers already inthe market but also to attract potential soft drinks manufacturers to invest inPakistan. Tax reductions proved extremely beneficial to the soft drinks marketin Pakistan and certainly encouraged and attracted multinational companies toinvest in the country‟s soft drinks industry. The government also decided to taxthe beverage industry on capacity of production rather than on actualproduction and that brave move encouraged soft drinks manufacturers tomaximize production and reduce prices.THREATSIncreasing health and hygiene awareness among Pakistanis has greatlyincreased sales of fruit/vegetable juice products. Both the government and themedia have started health awareness campaigns to make Pakistanis realize thatconsumption of fruit/vegetable juice is as essential as eating food.Fruit/vegetable juices are doing very well in both urban and rural areas. On theother hand, health and hygiene awareness has also led to increased sales ofbottled water in Pakistan. Previously bottled water was targeted on at majorcities where consumers are more health-conscious and aware of the differencebetween bottled water and tap water. Nowadays, health conscious ruralinhabitants also drink bottled water due to health concerns. 19
  • SWOT ANALYSIS OF COCA COLA INTERNALSTRENGTHS WEAKNESSES Popularity Word of mouth Well Known Lack of popularity of many Coca Cola‟s brands Branding obvious and easily Most unknown and rarely seen recognized A lot of finance Result of low profile or non- existent advertising. Customer loyalty Health issues International Trade EXTERNAL Changing health- Many Successful brands to consciousness attitude pursue Legal issues Advertise its less popular products Buy out competition Health ministers More brand recognition Competition (Pepsi) 20
  • 6. MARKETING STRATEGYOur local marketing strategy enables Coke to listen to all the voices around theworld asking for beverages that span the entire spectrum of tastes andoccasions. What people want in a beverage is a reflection of which they are,where they live, how they work and play, and how they relax and recharge.Whether youre 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 acouple in Korea buying bottled water after a run together, were there for you.We are determined not only to make great drinks, but also to contribute tocommunities around the world through our commitments to education, health,wellness, and diversity.Coke strives to be a good neighbor, consistently shaping our business decisionsto improve the quality of life in the communities in which we do business. Its aspecial thing to have billions of friends around the world, and we never forgetit. a) MARKET POSITIONINGOnce a business has decided which segments of the market it will compete in,developed a clear picture of its target market and defined its product, thepositioning strategy can be developed. Positioning is the process of creating,the image the product holds in the mind of consumers, relative to competingproducts. Coca Cola and Franklins both make soft drinks; although Franklinsmay try to compete they will still be seen as down market from Coca Cola.Positioning helps customers understand what is unique about the productswhen compared with the competition. Coca Cola plan to further createpositions that will give their products the greatest advantage in their targetmarkets. Coca Cola has been positioned based on the process of positioning bydirect comparison and have positioned their products to benefit their targetmarket. Most people create an image of a product by comparing it to anotherproduct, thus evident through the famous battles between Coca-Cola and Pepsiproducts. 21
  • b) PRODUCT STRATEGY OF COCA COLAProduct: 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 PRODUCTCore 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 Can quality that is available in Middle East is certainly different as compared to Coke Can available in Pakistan.PRODUCT CLASSIFICATIONSCoke is categorized as a convenience product, because the purchasing rate isvery high and this is the product that is bought very frequently.BRANDINGBRAND EQUITYAs far as coke is concerned brand equity for the customers is very high. Peopleare highly brand loyal. 22
  • BRAND STRATEGYThe following is the brand strategy of Coke➢ LINE EXTENSIONLine 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 EXTENSIONBrand extension means using a successful brand name let‟s say Coca-Cola andthen launching new product for example cherry coke. This was an example ofbrand extension.➢ MULTI-BRANDINGIt means introducing additional brands in the same category. For exampleCoca-Cola not only introduced coke as a brand but also sprite and Fanta.➢DIVERSIFICATIONIt 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 DECISIONSPRODUCT LINE LENGTHIt means the number of products that company is offering. For example Coke,Diet Coke, Fanta, Sprite etc.PRODUCT LINE FILLINGProduct 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. 23
  • c) PRICING STRATEGYThe amount of money charged for a product or service, or sums of the valuesthat consumers exchange for the benefits of having or using the product orservices. As price gives us the profit so this P is very important for businessprice of product should be that which gives maximum benefit to the companyand which gives maximum satisfaction to the customer.Following factors Coca Cola kept in mind while determining the pricingstrategy.➢Price should be set according to the product demand of public.➢Price should be that which gives the company maximum revenue.➢Price should not be too low or too high than the price competitor is chargingfrom their customers otherwise nobody will buy your product.➢Price must be keeping the view of your target market.The price of Coca Cola, despite being market leader is the same as that of itscompetitor Pepsi Cola. Sometimes, Pepsi places its customers into somepsychological pricing strategies by reducing a high priced bottle and consumersthink that they save a lot of money from this.PRICES OF DIFFERENT BOTTLES Size of Coca Cola Price of Coca Cola (Rs.) Regular bottle 12 Non returnable or disposable bottle 25 1.5 liter bottle 60 2.25 liter bottle 70 Coca Cola can 30 24
  • COMPETITION BASED PRICING APPROACHCoca Cola has intense competition with neither Pepsi so its pricing can‟texceed too much nor decrease too much as compared to the price of PepsiCola. If price of the Coca Cola exceed too much from the Pepsi then peoplewill shift to the Pepsi Cola and on the other hand if the price of CocaCola decreases people might get the impression that its quality is also low.PROMOTIONAL PRICING POLICYCoca Cola has offered promotional prices very frequently. Especially on someoccasion Coca Cola reduces its rates like in Ramzan Coca Cola reduces its rateunto 5 Rupees on 1.5 liter bottle.MARKET PENETRATION PRICING POLICYPrices in beverage industry are determined by the consumer. In an economylike that of Pakistan, consumers tend to switch towards a low priced product.Coca Cola‟s objective is to target every consumer of the country so Coca Colahas to set its prices at such a level which no one can offer to its consumers.That is why Coca Cola charges the same prices as are being charged by itscompetitors. Otherwise, consumers may go for Pepsi Cola in case ofavailability of Coca Cola at relatively high price.DISCOUNTSCoca Cola offers various discounts to those retailers who have the maximumsales of Coca Cola products on daily, monthly and on seasonal basis. Some ofthe main discounts given to the retailers are as follows: 25
  • QUALITY DISCOUNTFollowing are discounts offered by Coca Cola.➢ 1/10 DISCOUNTI.e. one case of Coca Cola is free on buying 10 cases of Coca Cola at one time.➢ 2/20 DISCOUNTI.e. two cases of Coca Cola are free on buying 20 cases of Coca Cola at onetime.SEASONAL DISCOUNTFollowing are discounts offered by Coca Cola.Coca Cola also offers seasonal discounts schemes by reducing price inRamadan and on Eid. Coca Cola also offers trade in allowance for retailers.➢ 3 B – F DISCOUNTI.e. sometimes, especially in the off-season duration, in order to increase thesale of Fanta and Sprite, 3-BF discount is given (i.e.) 3 bottles free onpurchasing every case of Fanta and Sprite.INCENTIVESMainly two types of incentives are given by the Coca Cola:INCENTIVE TO RETAILERSCoca Cola provide various incentives to retailers on the best sales andachieving the predetermined sales targets. These incentives are in the shape of:➢Deep Freezers➢Return Tickets➢Free Transportation Services. 26
  • INCENTIVE TO DEALERSThe first, second and third best dealers of the year are awarded.CREDITThere is no credit system in the beverage industry. Every single bottle is soldon the cash basis.SPECIAL OFFERSCoca Cola gives special offers to consumers on special occasions like Ramadanand Eid days instead of decreasing the price of the products, some specialpacks like Pakkora Mix, Chat Massala, or Free Drinks with Liter Bottles areoffered. d) DISTRIBUTION CHANNELSCoca Cola Company makes two types of selling➢Direct selling➢Indirect sellingDIRECT SELLINGIn direct selling they supply their products in shops by using their owntransports. They have almost 450 vehicles to supply their bottles. In this type ofselling company have more profit margin.INDIRECT SELLINGThey have their whole sellers and agencies to cover all area. Because it is verydifficult for them to cover all area of Pakistan by their own so they have somany whole sellers and agencies to assure their customers for availability ofCoca Cola products. 27
  • FACILITATING THE PRODUCT BY INFRASTRUCTUREFor providing their product in good manner company has providedinfrastructure these includes:➢Vizi cooler➢Freezers➢Display racks➢Free empty bottles and shells for bottles E) MARKETING COMMUNICATION (ADVERTISEMENT) STRATEGY The field of advertisement is one area where Coca-Cola has alwaysemphasized.In year 2000 Coca-Cola unveiled the biggest advertising billboards in thehistory of Pakistan. Each unveiling was marked by entertainment and lightshows watched by thousands of people. Similarly in July 2000 Coca-Colalaunched its first under the crown promotion by the name of Dream Vacationsin which the consumers could collect caps of promotional bottles of Coca-Colalike Sprite, Fanta and Coke.ADVERTISEMENT OBJECTIVEType 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 isat the 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. 28
  • SETTING OF ADVERTISING BUDGETCoca-Cola sets its advertisement budget on the basis of competitor basedbudgeting. Major competitor of Coca Cola is Pepsi and as Coke realizes thatPepsi has increased its advertising budget, straight away Coca-Colamanagement plans to do the same so that they can compete in advertisingdepartment as well.ADVERTISING STRATEGYBefore 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 MEDIACoca-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.Coca Cola Company use different mediums➢Print media➢Pos material➢TV commercial➢Billboards and holdingsPRINT MEDIAThey often use print media for advertisement. They have a separate departmentfor print media.POS (POINT OF SALE) MATERIALPOS material mean point of sale material this includes: posters and stickers thatare displayed in the stores and in different areas. 29
  • TV COMMERCIALSAs everybody know that TV is a most common entertaining medium so TVcommercials are one of the most attractive way of doing advertisement. SoCoca Cola Company does regular TV commercials on different channels.BILLBOARDS AND HOLDINGSCoca Cola is very much conscious about their billboards and holdings. Theyhave so many sites in different locations for their billboards. F) MARKETING RESEARCHCoca Cola marketing team focuses not only on the results as well as the tasksassigned. They firmly believe if you want to establish a clear image in the minds of consumers, you first need a clear image in your own mind. Since the major competitor is Pepsi Co. so Coca Cola Intl has focused on neutralizing the competition. Kill the category: If Pepsi Co. launched Crystal Pepsi then Coca Cola Intl launched Diet Coke. The Coca Cola marketing team maintained their focus strongly on the product itself. When they changed bottle shape, many people started buying bottles instead of the drink itself The Coca Cola team learnt from everything. Even if a customer said “no”, they focused on “why” did he say no and then found out ways on “how” to solve that issue. Formula for positioning success: Define Over deliver Claim Succeed 30
  • They specified the criteria for each product offered because if you don‟t specify the criteria for choosing, consumers will develop their own, which is dangerous.After thorough research, we come to the conclusion that the marketing strategyof Coca Cola is working for them and the product is gaining popularity amongyouth day-by-day.7. ACTION PROGRAMT o achieve the business objectives coca cola adopted the following strategies Coke Studio- Coke Studio is a musical program sponsored by coca cola and telecasted on popular channels in Pakistan Coke Blitz- In coke blitz coca cola company’s employees worked as a team and visited their retailers and helped them in cleaning of refrigerators and placed them at easily reachable position. Sprite Mad about TV- In this promotional activity a media team visited the universities all over Pakistan in search of talent under the coca cola company name to promote its product. Ramadan offer- In month of Ramadan special discounts are given to increase the sales8. BUDGETHOW COKE DETERMINE THE YEARLY BUDGETCoke determines its yearly budget by the➢Sales volume➢Profitability➢Target volume 31
  • SALES VOLUMECoke determines its yearly budget through the sales volume. They firstconcentrate on the thing is “what is the condition of their sales?” if thecondition is good of their sales then they definitely increase their productionand sales volume. Otherwise they concentrate on their old strategies.PROFITABILITYThe second thing through which they determines budget is the “profit” .if they rgetting profits with the high margin, then they definitely want to increase theirprofits in the next coming year. Every organization runs on the basis of gettinghigh profits. No organization wants to face Loss in their business. To get profitis the first priority of the Coke.TARGET VOLUMETo run the business every industry has some targets, which they want toachieve in a specific time period. If industry achieves those goals in that periodthen for the coming year it increases the volume of the target.So Coke Follow the same thing it has also some goals and targets to achieve inthe given time period. When they succeed to achieve that target then theyincrease their target volume in the next year.9. CONTROLSCoca Cola Intl. has controlled sales via: Geographic Market Organization Opening plant in various countries (in Pakistan they have 10 plants) so as to reduce taxes. They have invested $5.6 million in their R&D facility to maintain Product Quality Control. Their primary concern right now is penetrating into the Pakistani market via strong attacking techniques whereby maintaining defense strategy against Pepsi Co. The overall strategic control is implemented in all plants and factories throughout the 200 countries which Coca Cola proudly serves. 32
  • 7. BIBLIOGRAPHY www.scribd.com www.fliiby.com www.slideshare.net www.cocacola.com 33