Report on Coca Cola

1. 1

2. 2

3. 3
EXECUTIVE SUMMARY
 Introduction of Coca cola
 Mission Statement
 Coca cola’s Belief
 HHiissttoorryy ooff CCooccaa ccoollaa
 Major brands of Coca cola
 Management
 Market Share
 Global market share
 Coca cola Pakistan
 49 years of refreshment in Pakistan
 Promise of Coke
 Target Market
 Major segment
 Competitors
 Multan Beverages Limited
 Production process
 Supply Chain Operation
 Problems for Coca Cola Company
 Distribution
 Investment

4. 4
 Brand Awareness
 Single Advertising Platform
 Low value of share
 Fake Bottling
 SWOT Analysis of Coca Cola Company
 Strengths
 Weaknesses
 Opportunities
 Threats
 Recommendations

5. 5
TABLE OF CONTANT
Topics page no. Topics page no.
Introduction
of Coca cola
01 Problems for Coca
Cola Company
07
HHiissttoorryy ooff
CCooccaa ccoollaa
02 SWOT Analysis of
Coca Cola
Company
09
Management 03 Recommendations 13
Market Share 03
Coca cola
Pakistan
04
Multan
Beverages
Limited
05
Production
process
06

6. 6
Introduction of Coca cola
Mission Statement:
Our mission statement is to maximize shareowner value over time.
Coca cola’s Belief:
In order to achieve this mission, we must create value for all the constraints we serve, including our
consumers,ourcustomers,ourbottlers,andourcommunities.The CocaColaCompanycreates 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 consumersabroadselectionof the nonalcoholic ready-to–drink beverages
they want to drink throughout 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 productsdirectlytoconsumers.We keenlyfocusonenhancingvalue for these customers and
helpingthemgrowtheirbeveragebusinesses.We strive to understand each customer’s business
and needs,whetherthatcustomerisa sophisticatedretailerinadeveloped market a kiosk owner
in an emerging market.
There are nearly 6 million people in the world who are potential consumers of our company’s
product.Ultimately,oursuccessinachievingourmissiondependsonourabilityto satisfy more of
theirbeverage consumptiondemandsandourabilitytoaddvalue for customers. We achieve this
when we place the right products in the right markets at the right time.

7. 7
HHiissttoorryy ooff CCooccaa ccoollaa::
Coca-Cola Enterprises, established in 1986, is a young company by the standards of the
Coca-Cola system. Yet each of its franchises has a strong heritage in 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 were for sale, the John T. Lupton franchises and BCI Holding Corporation's
bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the
public on November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual
basis, total unit case sales were 880,000 in 1986.
In December 1991, a merger between Coca-Cola Enterprises 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 bill ion, and total
revenues were $5 billion.

8. 8
Major brands of Coca cola:
Coke Sprite Fanta
Diet Coke Splash Pulpy
Management:
The hierarchy of Coca Cola Company is as follows.
Market Share: Being the biggest company in the soft drink industry, Coca Cola enjoys the
largest market share. This company controls about 59% of the world market. Coca cola’s market share
in Pakistan is about 24% of total market.
Global market share: The following table can show the worldwide operating
segments.
Chairman
Board ofgovernors
Vice Chairman and
chiefoperating
officer
ExecutiveVice
Presidents
Senior Vice
Presidents
Vice Presidents

9. 9
Unit case growth Non-
alcoholic
Drink
All commercial
Beverages
10 year compound
annual growth
5-year compound
annual growth
2001 annual growth 2012 2013
Company Industry Company Industry Company Industry Company
share
Company
share
Company
per capita
Income
6% 5% 5% 5% 4% 4% 18% 9% 70
Coca cola Pakistan:
The Coca-Cola Company began operating in Pakistan in 1953. Coca-Cola, Fanta and Sprite are
the brands in Pakistan. The Coca-Cola System in Pakistan operates through eight bottlers, four
of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL
plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan, Multan and
Lahore. The remaining two plants, independently owned, are in Rawalpindi and Peshawar. The
Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in
Pakistan employs 1,800 people. During the last two years, The Coca-Cola System in Pakistan has
invested over $130 million (U.S.)
49 years of refreshment in Pakistan:
Coca-Cola introduced in Pakistan 1953
Fanta introduced in Pakistan 1965
Sprite was introduced 1972
Diet Coke & Fanta Lemon 2001

10. 10
Promise of Coke:
The basic propositionof ourbusinessissimple, solid and timeless. When we bring refreshment, value,
joyand funto our stakeholders,thenwe successfullynurture and protect our brands, particularly Coca-
Cola.That is the keyto fulfillingourultimate obligationtoprovide consistently attractive returns to the
owners of our business.
Target Market:
Coke’scommercialsbasicallybasedonyounggenerations, so,the younggenerationisthe 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 segment:
Major segmentsare basicallythose people whotake thisdrinkdailyandthose areas where the demand
ishigherthan the otherareas.There are so manypeople whotake thisdrink dailyandthose peoplewho
take weeklyandthose whotake lessoften are always there as well. So, their basic segments are those
people who take this drink regularly.
Competitors:
Coke’smajorcompetitoris “PEPSI” and there is no hesitation to say this because everyone knows that
and all the other cold drinks and water, coffee, tea is the competitors.
Multan Beverages Limited:
Multan Beverages was established in year 1964 on Vehari road as a franchised unit for Coca-Cola
Company. It supplies soft drink facilities to the people of Multan, D.G. Khan, Vehari and Khanewal.
Initiallyit produced Coca-Cola only and at that time its production capacity was 35 bottles per minute.
In early80’s the plantwas modified,thusincreaseditscapacityupto 180 bottlesperminute,then plant
had the capacity to produce 320 bottles per minute and company also started production of Fanta and

11. 11
Sprite. Ithas engagedina contract of producingSimba. In 1988, the liter bottle was introduced, which
was greatly appreciated by the customers.
Present Multan Beverages has modified their plant with double line process and is producing 2*320
bottlesperminute,due tothe cryingneedof the customers. Now,the factoryproduces 75% of Coke, 20
% Sprite, 4% Fanta while no return and liter bottle has only 1% share in the overall production. The
factoryhas the emptybottle stockof 400,000 bottles. The MultanBeverageshasinstalledanew flexible
plant, producing all sizes.
Production process:
Processmanagementisthe selection of inputs,operations,workforce andmethodsforproducinggoods
and services. Inputselectionincludeschoosingthe mix of human skills, raw materials, outside services
and equipment consistent with organization’s positioning strategies and its ability to obtain these
resources. Production process at Multan beverages could be divided into following heads.
 Purchase of bottles
 Collection of Bottles
 Washing of Bottles
 Inspection selection (empty bottles)
 First soak
 Second soak
 Third soak
 Fourth soak
 Light room (empty bottles are checked after proper washing)
 Water treatment
 Syrup manufacturing
 Filling of bottles
 Light room for filled bottles
 Loading for printing codes, expiry etc.
 Packing

12. 12
 Storing in godowns
 Loading and delivery
 Work in process treatments
o Syrup treatment
o Lab test
o Finished product testing
Supply Chain Operation:
Companymakesdecisionregardingindividual customerorders.The goal of supplychainoperationsis to
handle incoming customer orders in the best possible manner. During this phase, firms allocate
inventoryorproductiontoindividual orders,setadate that an orderisto be filled,generate pick lists at
a warehouse,allocate toshipping,set delivery and so on. There is less uncertainty about demand. The
production, sales and supply chain departments get together to decide the inventory usually on a
weekly basis.
Problems for Coca Cola Company:
There are some problemsbeingfacedbya companywhichaffectsitsbusinessstrategies.Itisdifficult to
know where to begin and isolate the events which shape the business environment.
Distribution: Coca-ColaCompanyisfacinga problemof distribution, as distributors are expecting
more from coco cola to provide an extra distribution channels which could help them to spread their
products at large .Coca-cola products are somewhere not available in rural area due to inefficient
distribution system.
Investment: Coca-ColaCompanyisnow facinga problemregardinginvestment,like investment in
distributionsystem, tomake itefficient.Theyneedinvestment to encourage retailers to provide space
to their products, in the form of providing coolers. Company is not in a situation to provide it to all its
retailingstoreswhile itscompetitorPEPSICOLA providesittoitsdistributors to promote his products in
CustomerRetailerDistributorManufacturerSupplier

13. 13
the marketwhichis theircompetitive edgeto increase itsshare inthe market.It creates an attraction to
its distributors to take its products more to take incentives of special discounts provided by the
company to its distributors, wholesaler, and retailers
.
Brand Awareness: Having low promotional strategies that most of their customers are
unaware of theirbrandsmostlythey mix their brands with Pepsi, they feel that Sprit and Fanta are the
brandsof Pepsi butinactual these are the brandsof Coca-ColaCompanytheyare facingthese problems
due to having low promotional strategy so that the unaware of its brands.
Single Advertising Platform: Theyhave onlyone Advertisingplatformregardingpromotion
which is music; on the other hand Pepsi has another very important Advertising platform which is
Cricket. Most of our youngsters are attracted towards it.
Low value of share: Coca-Cola company having a share of about 27% which is lower than its
competitorsi.e.Pepsihavingmarketshare of 68% involve in more promotional strategies as compared
to Coca-Cola.
Fake Bottling: Fake bottling in Pakistan is one of the major problems being faced by the company. This
problem not only affects the salevolume and profitmargins but also brand valueand loyalty of the customers. The
profitability which company gain, ultimately that part of gain goes to fake bottle producers, who running their
business in the name of company

14. 14
SWOT Analysis of Coca Cola Company:
Table for SWOT analysis
(Figure)
Strengths
-Popularity
-well known
-branding obvious and easily recognized
-A lot of finance
-customer loyalty
-International Trade
Weaknesses
-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
Opportunities
-many successful brands to pursue
-advertise its less popular products
-More Brand recognition
Threats
-changing health-consciousness attitude
-legal issues
-Health ministers
-competition (Pepsi)

15. 15
 Strengths: Coca Cola is an extremely recognizable company. Popularity is one of its
superior strengths that are virtually incomparable. Coca Cola is known very well
worldwide. It's branding is obvious and easily recognized. Things like, logos and promos
shown on t-shirts, hats, and collectible memorabilia. Without a doubt, no beverage
company compares to Coca Cola's social popularity status. Some people buy coke, not
only because of its taste, but because it is widely accepted and they feel like they are
part of something so big and unifying. At the other end of the spectrum, certain
individuals choose not to drink coke, based solely on rebelling from the world's idea that
coke is something of such great power. Overwhelming is the best word to describe Coca
Cola's popularity. It is scary to think that its popularity has been constantly growing over
the years and the possibility that there is still room to grow. If you speak the words
“Coca Cola”, it would definitely be recognized all around the world. Money is another
thing that is strength of the company. Coca Cola deals with massive amounts of money
all year. Like all businesses, they have had their ups and downs financially, but they have
done well in this compartment and will continue to do well and improve. The money
they are earning is substantially better than most beverage companies, and with that
money, they put back into their own company so that they can improve. Another
strength that is very important to Coca Cola is customer loyalty. The 80/20 rule comes
into effect in this situation. Eighty percent of their profit comes from 20% of their loyal
customers. Many people/families are extremely loyal to Coca Cola. It would not be rare
to constantly find bottles and cases of a product such as coke in a house. It seems that
some people would drink coke religiously like some people would drink water and milk.
This is an improbable feat. Customers will continually purchase these products, and will
probably do so for a very long time. If two parents were avid Coca Cola drinkers, this will
be passed down do their children as they grow loyal to the company. With Coca Cola’s
ability to sell their product all over the world, customers will continue to buy what they
know and what they like…Coca Cola products.
 Weaknesses: Coca Cola is a very successful company, with limited weaknesses. However
they do have a variety of weaknesses that need to be addressed if they want to rise to
the next level. Word of mouth is probably a strength and weakness of every company.
While many people have good things to say, there are many individuals who are against
Coca Cola as a company, and the products in which they produce. Word of mouth
unfortunately is something that is very hard to control. While people will have their
opinions, you have to try to sway their negative views. If bad comments and views are
put out to people who have yet to try Coca Cola products, then that could produce a lost
customer which shows why word of mouth is a weakness. Another aspect that could be

16. 16
viewed as a weakness is the lack of popularity of many of Coca Cola’s drinks. Many
drinks that they produce are extremely popular such as Coke and Sprite but this
company has approximately 400 different drink types. Most are unknown and rarely
seen for available purchase. These drinks do not probably taste bad, but are rather a
result of low profile or nonexistent advertising. This is a weakness that needs to be
looked at when analyzing their company. Another weakness that has been greatly
publicized is the health issues that surround some of their products. It is known that a
popular product like coke is not very beneficial to your body and your health. With
today’s constant shift to health products, some products could possibly loose
customers. This new focus on weight and health could be a problem for the product that
is labeled detrimental to your health.
 Opportunities: Coca Cola has a few opportunities in its business. It has many successful
brands that it should continue to exploit and pursue. Coca Cola also has the opportunity
to advertise its less popular products. With a large income it has the available money to
put some of these other beverages on the market. This could be very beneficial to the
company if they could start selling these other products to the same extent that they do
with their main products. Another opportunity that we have seen being put to use
before is the ability for Coca Cola to buy out their competition. This opportunity rarely
presents itself in the world of business. However, with Coca Cola’s power and success,
such a task is not impossible. Coca Cola has bought out a countless number of drink
brands. An easy way to turn their profit into your profit is too buy out their company.
Even though this may cost a vast amount of money initially, in the long run, if all goes to
plan, it results in a large profit. Also, the company will no longer need to worry about
this product being part of the competition. Brand recognition is the significant factor
affecting Cokes competitive position. Coca Cola is known well throughout 90% of the
world population today. Now Coca Cola wants to get there brand name known even
better and possibly get closer and closer to 100%. It is an opportunity that most
companies will ever dream of, and would be a supreme success. Coca Cola has an
opportunity to continue to widen the gap between them and their competitors.
 Threats: Despite the fact that Coca Cola dominates its market, it still has to deal with
many threats. Even though Coca Cola and Pepsi control nearly 40% of the entire
beverage market, the changing health-consciousness attitude of the market could have
a serious effect on Coca Cola. This definitely needs to be viewed as a dominant threat. In
today’s world, people are constantly trying to change their eating and drinking habits.

17. 17
This could directly affect the sale of Coca Cola’s products. Another possible issue is the
legal side of things. There are always issues with a company of such supreme wealth and
popularity. Somebody is always trying to find fault with the best and take them down.
Coca Cola has to be careful with lawsuits. Health minister could also be looked at as a
threat. Again, some people may try to exploit the unhealthy side of Coca Cola’s products
and could threaten the status and success of sales. Other threats are of course the
competition. Coca Cola’s main competition being Pepsi, sells a very similar drink. Coca
Cola needs to be careful that Pepsi does not grow to be a more successful drink. Other
product such as juices, coffee, and milk are threats. These other beverage options could
take precedent in some people’s minds over Coca Cola’s beverages and this could
threaten the potential success it presents again.

18. 18
Recommendations:
After completing our project we have concluded some recommendation for the coca cola
company, which are following.
 Coca ColaCompanyshouldtryto emphasismore onprovidingtheirinfrastructure in the market
to facilitate their customers.
 According to the survey, conducted by the international firm Pakistani people like little bit
sweetercoladrink.Soforthiscoca colacompanyshouldproduce 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.
 Nowyounggenerationhasa trendto drinka coke two regularbottlesatsame time,soproviding
more satisfaction to them company should introduce ½ liter disposable bottle.