2. TABLE OF CONTENTS
Chapter 1:
1.1 Introduction to the industry
1.2 Executive summary
1.3 Objectives
1.4 Scope of the Study
Chapter 2:
2.1 History of the Coca-Cola Company
2.1.1 Brand recognition
2.1.2 Product Expansion
2.2Introduction in Pakistan
2.2.1Products‟ introduction in Pakistan
2.2.2Vision
2.2.3Mission
2.3Competition
Chapter 3:
3.1Coca-Cola Brand Value
3.2Coke‟s ranking Among Top Brands
3.3Coca-Cola‟s Brand Performance
3.4Coca Cola’s Market Share
3.4.1International Market Share
3.4.2Market Share for Pakistan
3.5Challenges in Maintaining Market Share
3. Chapter 4:
4.1Target Consumers
4.2Products Attributes
4.2.1Brand Awareness
4.3Brand Benefits
4.4Employees Benefits
4.5Integrated Marketing Communication (IMC)
4.6Tools of Integrated Marketing Communication
4.6.1Advertising
4.6.2Direct Marketing
4.6.3Sales Promotion
4.6.4Public Relations
4.6.5Internet Marketing
4.6.6Partnership and Sponsorship
Chapter 5:
5.1MARKETING MIX OF COCA-COLA (4 Ps)
5.1.1PRODUCT
5.1.2Levels of Products for Coke
5.1.3Quality
5.1.4Coke Products:
5.1.5PRICE
PRICING STRATEGY OF COCA-COLA
5.1.6Important Things while Setting Price
5.1.7Prices of Different Products:
5.1.8Competition Based Pricing Strategy
5.1.9Promotional Pricing Strategy
4. 5.1.10Market Penetration Pricing Strategy
5.1.11Placing Strategies
Distribution Channels
5.1.12Direct Selling
5.1.13Indirect Selling
5.1.4Promotional Strategies
5.2SWOT Analysis
5.2.1Strengths
5.2.2Weaknesses
5.2.3Opportunities
5.2.4Threats
5.3Qualitative Analysis of the Company
5.4Coca-Cola‟s CSR
5.4.1Water Treatment Plant
5.4.2Drinking Water Filtration Plant
5.4.3Edhi Campaign
5.5Competitive Analysis
5.6Pepsi Cola International (Pvt) Limited
5.7Products Range of Pepsi
5.8Promotional Strategies
5.9 Challenges being faced by Coke
5.10Extensive Distribution:
5. 1.1Introduction
The modern styles of living have created wider impact on the industrial outlook
globally. Similarly the ways of routine activities have also updated according to time.
In Pakistan, due to globalization the introduction of multinational corporations have
greatly impacted and changed the ways of living styles of their consumers.
Beverage companies are those companies which produce cold drinks that are fulfilling
the needs of their consumers. They produce non-durable products which includes
beverages of various kinds and flavors with different taste. These items are sold
relatively quickly because these products have specific time for their consumption
and are cost effective.
The beverage companies have greatly affected Pakistan’s consumer mindsets and
their life styles. Coca-Cola Beverages Pakistan Ltd is among those companies which
have played vital role in the development of modern lifestyle and ultimately the
economic development of Pakistan. It has introduced new taste and standards of
drinking habits among its consumers. 25 years ago, CCBPL started its operations in
Pakistan. It indicates the importance of Coca Cola being a business development
entity and largest tax payer company in the Pakistan economy. Ultimately, it
contributes towards the economic development of the country.
1. Executive Summary
This report is the assessment of marketing aspects of The Coca-Cola Company
Pakistan. The report has been made to analyze different aspects including
background, business activities, market worth, and brand essence.
The report contains many aspects of data which might be able to inculcate the
importance of running the business of Coca-Cola within Pakistani environment.
Coca-Cola is an international standard brand and would be following regional and
geographical based marketing activities for the host country.
The beverage sector contributes to: GDP, per capital income, employment and in
overall growth of the country. Some core marketing techniques have also been
analyzed in context of this report. Their marketing techniques, target audience and
their products offering upon different sort of segments. All such elements have been
analyzed and their ultimate outcome has been derived in the form of this descriptive
report. Maximum effort has been made in order to clearly explaining the real topic
discussions and marketing evaluation of the company.
6. 1.3 Objectives:
The core objectives of this study are:
To indicate the importance of Coca Cola in terms of marketability aspects
To identify the internal and external factors that have impact on marketing
performance of the company.
To study the comparison of the company with its core competitors in the industry
such that Pepsi.
To identify the area of development through analyzing core marketing strategies,
the company’s performance for the near future.
The prime focus of the study is not only to elaborate the above-mentioned objectives
but also to put focus on the analysis of company and the industry in terms of
marketability. This will have a positive logical impact in terms of market analysis of
the company. The main objectives also to include the functional analysis of Coca-
Cola Pakistan Limited company in perspectives of marketing.
1.4 Scope of the Study:
This study will clearly analyze the marketing aspects of the company. Moreover, the
study will also highlight the significance of Coca-Cola being a key player in
Pakistan’s FMCG sector. This study will highlight the key factors affecting the
company’s marketing strategies for being a valuable brand among its customers. The
study will also try to explore the outlook of the company. The key features of
marketing mix, competitive analysis and brand essence will be
Explained with the high focus on positive outcome in this report. The study will not
only focus on the fulfillment of the objectives defined above but also it will try to
explain every possible planning, strategies and tactics which are being used by the
company in order to facilitate its routine operations.
7. CHAPTER 2: The Company:
2.1History of the Coca-Cola Company
The company’s headquarter located in the Unites States and the state of Atlanta,
Georgia. Coca- Cola began its journey towards success since the early years of 1886.
Candler was the founder of the company who had willingness to introduce and
develop the taste of beverage that had never been introduced before in the whole
world. The drink was actually invented by a chemist named as John S. Pemberton
during the same year of 1886.
2.1.1Brand recognition:
Later, in 1889 Candler bought the formula and brand for the Coca Cola. It was
prepared to introduce to the world and let the world taste something special, unique
and different that they hadn’t tried before. The company was incorporated as the
Coca-Cola Company in 1892. Later in 1916, the company began to produce its unique
shaped signature bottles which still are accepted by consumers in todays time. Due to
widely acceptance by its consumers and willingness of expansion, the president at
that time Mr Robert Wood-ruff took step to target international market for the further
expansion and recognition of brand globally. This initiative was taken in 1928; the
Coca-Cola was introduced to the Olympic Games for the very first time in its history.
2.1.2Product Expansion
During the years of 1960s, Coca-Cola decided to expand its flavors from just cola
towards different excited flavors which had natural touch and taste. These new flavors
had brand names as Sprite, Fanta and Fresca. These flavors were introduced after
critical evaluation of the targeted market and consumers. In later years, the company
acquired the Minute Maid Company which had entirely different products including
juices. This brought the company to introduce the new line of juice towards beverage
line which is already their core business approach. Afterwards, the company decided
to introduce new products through innovations and changes in their current products
ranges, so they introduced “Diet” ranges of products which were sugar free in the
years of 1980‟s. The company had developed much brand image among their
consumers.
8. 2.2Introduction in Pakistan
Like many other industries and companies, Coca-Cola also introduced themselves
after the official existence of Pakistan. The company operated their business in the
name of Coca-Cola Beverages Pakistan Limited (CCBPL). Pakistan became familiar
with Coca-Cola in 1953. They started producing beverages using local ingredients
and local workforce was introduced to the world renowned brand. From the beginning
period, it was still important to target the market with accuracy that‟s the reason the
company introduced marketing team at very earlier stages.
2.2.1Products’ introduction in Pakistan
The company firstly introduced their signature drink that was Coca-Cola. In 1965,
they introduced the different flavor known as “Fanta”. After seven years the company
introduced Sprite in 1972. Later on, after 30 years of gap the company started
introducing some other range of products like “Diet Flavors” and “Lemon Fanta”.
CCBPL operates in Pakistan in such a way that they produce locally by using
everything available within the country and distribute their products across the
country. The company has 7 plants and 10 warehouses in the country to better serve
the customers in Pakistan.
2.3Company’s Core Competencies
The company’s core competencies included their visionary objectives, sharp vision
and mission.
9. 2.3.1Vision
The company states their visionary objectives as under;
“Our vision serves as the framework for our Road map and guides every aspect of our
business by describing what we need to accomplish in order to continue
achieving sustainable, quality growth”
People: Be a great place to work where people are inspired to be the best they can
be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we
create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
Profit: Maximize long-term return to share owners while being mindful of our
overall responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.
2.3.2Mission
Similarly the company has developed its mission to cope with the short term and long
terms competitiveness. Their mission states as follow:
“To refresh the world in mind, body and spirit. To inspire moments of optimism and
Happiness through our brands and actions”
To refresh the world-in body, mind and spirit.
To inspire moments of optimism and happiness- through our brands & actions.
To create value and make a difference-everywhere we engage
10. 2.4Competition
From the very beginning of the company’s history in Pakistan, they discovered that
their core competition is with non-other than the multinational brand known as
“Pepsi”. Pepsi is a renowned brand but Coca-Cola is the market leader everywhere in
the world but the case reverts for the Pakistani context. Because here in Pakistan,
Pepsi is the market leader because of having good percentages of market share and
other reasons to be discussed furthermore but at present Coca Cola compete the Pepsi
very well. The market share of Pepsi is 36 % while on the other hand the market share
of coke is 54 %.
11. CHAPTER 3: Market Analysis
In this chapter, different angles and different perspectives are discussed. These
perspectives give clear picture of the marketability, brand loyalty, market share and
many other aspects. The whole beverage industry has developed specified market
shares and market values of different brands. This is the reason that Coca-Cola needed
to derive specific branding techniques and customer attraction tactics. In this chapter
of market analysis, some key details are highlighted which shows the clear scenario
of the company’s outlook towards marketability. This has direct and indirect impact
on the international standards that are already set by the company globally to maintain
brand value.
3.1Coca-Cola Brand Value
The Coca-Cola Company developed much of its brand value over time. There was a
time when a famous investor and Finance Guru Mr. Warren Buffet purchased shares
of the Coca-Cola Company after forecasting that the shares they purchased would be
much and more benefitted in the future, its value of share was eventually increased
after certain years. This meant to develop the value for the company not only for the
end consumers but also essential to retain the investors for the sake of brand image
and loyalty development.
The company worked on several aspects because it‟s a multinational and globally
renowned company which would never expect to reduce its market shares. Ultimately
the company’s investors are retained through two things; one is the distribution of
dividends and the other one is company’s intentions to invest the amount of money.
3.2Coke’s ranking Among Top Brands
During latest announcement, it was observed that the Coca-Cola Company retained
3rd Spot on Inter brand's Annual Best Global Brands for fourth consecutive years.
That’s the reason of company’s commitment towards sustainability and progressively
increasing market value. The brand value of the company is so high that it is always
considered among world “stop class brands. It is also considered an obvious thing that
the company is well established and well known for the reason of its well organized
variety of brands. According to the official news feed by company’s website, there
are more than 500 brands that are spread under the umbrella of Coca-Cola Company.
These achievements have direct and indirect impact on company’s brand image,
market value, marketability and ultimately revenue generation. The Coca-Cola
Company effectively and accurately manages these varieties of brands. According to
earlier statistics the company had established the brand value of $73,102 million in
2017, which was recorded as 7 percent down as compared to the same time period of
previous year. Despite of this 7 percent downfall the company hasn’t stopped
12. eradicating the reasons of this downfall and performed well in the first quarter of
current fiscal year.
3.3Coca-Cola’s Brand Performance
The performance of any company with respect to its loyalty and market capture can
easily be assessed through the performance in its brand value proposition and the
market share in the current target market. Both of these tools are somehow core
implements to indicate the company and brand’s performance.
The graph clearly indicates the trend analysis of the company’s performance in terms
of their Brand value throughout different years of performances. The line graph
indicates Coke’s performance for past 10 years and 11th year which is the current
year in this project scenario. The highest achievement was being recorded in the year
2015 and the lowest was recorded at the very beginning year of 2006. Coca-Cola
increasingly gained its brand value since 2006 until it acquired the highest record
making brand value of 83.84 billion dollars in 2015. There has been noted that the
company obtained tremendous performance between 2006 and 2011 to because they
achieved almost 80 percent of the brand value in 2006. Since 2015 to current year
2017 due to intense competition between Coca-Cola and its core competitor’s
strategic outlook there have been a slight downfall in its brand value. Due to some
other qualitative reasons, the company lost its brand value that was not highlighted
before.
Coca-Cola Brand
Value
9
0 80.
69
83.
84
8
0
78.
42
80.
31
73.
76
74.
29
78.
14
7
0
67.63
67.99
6
0
58.
21
5
0
41.41
44.14
4
0
3
0
2
13. 3.4Coca Cola’s Market Share
As mentioned earlier, there are two core tools through which a brand‟s loyalty and its
performance can be assessed. Market share analysis is the second essential tool to
evaluate the level of acceptance and brand performance. These can only be done when
a company engages its customers up to the level of acceptance.
3.4.1International Market Share
There are 3 main players in international market and Coca-Cola is market leader with
the 52% shares while Pepsi is following with the 36% shares and Dr. Pepper Snapple
Group has 12% shares. As it can clearly be observed in below pie chart Coca-Cola
brand is the most accepted brand in the market of beverage industry for global
perspective with leading percentage of share as 26 Percent and Pepsi is being runner
up as the 15percent of market share.
14. 3.1.1 Market Share for Pakistan
During July 2010, the Wall Street Journal reported that Pepsi lost its significant
market share as compared to Coca-Cola the reason behind that was the huge
investments and sponsorship for Coke-Studio. Pepsi usually sponsors the sports
especially cricket fields. Pepsi recorded the dominant market share of 54 % and the
remaining percentage was covered by Coca-Cola Company. Due to some positive
factors and strategic approach, Pepsi had been the market leader for many years. This
data is compact and quantitative nature which directly indicates the direct impact in
the market share analysis for both of the companies. Now we compare this data with
the most recent one and see the difference between what had already been done and
the differences are to be observed after that implementation.
Now in this pie chart we can clearly observe and compare it with the previous pie
chart that Coke has developed to be the dominant and market leader in the beverage
industry for Pakistan. Coke developed from 35% of market share in 2010 to 54% of
market share according to the most recent data and observations. Pepsi lost too much
of its market share as it was the market leader with distinction of 65 % in 2010. Now
Market Share in
Pakistan 2010
35
% 65
%
Pepsi
Coca-
Cola
15. its market share has decreased to 36% according to most recent data. In those seven
years, other local brands have also come to business and they also developed some of
their market share. Gourmet developed 4% of market share in regional distribution.
Whereas, other local brands have also flourished and observed to discovering market
share of 6%.
This was a closer outlook and comparison of the performance of the beverage
companies between year 2010 and 2017 to elaborate their company’s market
performance.
3.5Challenges in Maintaining Market Share
As the time passes, the quality of life style has also altered from past to present and
expected to be changed in future as well. By keeping in views these situations the
company ought to have a competition through:
Unique value proposition through quality products
Copyright handling to eliminate the fake products in the markets
16. CHAPTER 4: Brand Essence
The brand essence of any company is the heart or the main key role in evaluating its
market sustainability for the future period. Brand essence usually includes several
important keynotes that create logical input in terms of identifying the actual target
group of the product. Some others also suggest that brand essence is heart and soul
for the products under certain brands. Various categories and several target groups
are further explained in this type of analyzing activities. These are also including
some sort of qualitative analysis and quantitative analysis in order to judge the
products‟ acceptance in real time data.
4.1Target Consumers
The first and primary considered thing for the company to consider is the consumer
and customer. The clear thing to consider in this section is the exact target audience.
In brand essence it can be termed as “to whom I want to appeal to”. If the product has
been developed by using proper inputs and converted that input towards output with
proper value addition that brings the revenue for the company. In other term,
consumers are the „business generators‟. Target consumers are assessed after
evaluation the gap analysis. The gap analysis can indicate the difference between what
the consumers‟ geography, demographic, social life, personal life and their routine
life daily activities. Coca-Cola is a product related to beverage industry so the
company assessed the eating, socializing, habits and other assessments in order to
work for the exact and accurate target market. This at the end helps the focus towards
the targeted consumers.
4.2Products Attributes
There are some core products attributes that bring the goodwill towards the brand and
finally the company gets benefit in terms of business development. These attributes
are directly linked to the products and their activities. Similarly, Coca-Cola also
possesses some of its attributes that the company main concern.
4.2.1Brand Awareness
The first and foremost thing while branding is to create awareness about the products.
Is target market or public aware bout the product which company wants to offer? The
other thing that is importing while creating awareness is Brand Personality which
17. refers to the uniqueness in offerings by the company through that product or service.
It also means to define whether the target market is to become a first time user or the
regular consumer. Because these things should be clear before launching the products
in valuable ways.
Communication is most essential tool while creating brand awareness. There are
several ways to create brand awareness. Most effective ways in today‟s digital era is
social media communication, effective marketing through creating purposeful
marketing campaigns and promoting at right platforms in the right time period. These
tools are important because they are the key towards successful brand awareness
activities. In this way Coca-Cola has created effective campaigns in different social
crowds for meaningful purposes and objectives. Using these types of media
(including social media) would definitely increase the branding value and consumer
retention towards the brand. If the media is strong enough then time is the only thing
required. Timely introduction and timely promotion is the best thing to set as the core
objectives while creating awareness for the products to the relevant target market.
4.3Brand Benefits
Brand benefits denote the ultimate benefits and advantages that the customers can
enjoy by selecting specific product to appreciate. The Coca-Cola Company has
developed great value for its consumers.
Coca-Cola is not only giving the value in terms of their beverage
Products but they are also contributing towards society in return. Brand benefits
compose of non- monetary benefits that mostly include after-sale services but for
Coca-Cola it is merely a return to the society. The company offers products that are
18. definitely presenting the unique taste in them; finally the brand creates value due to
its uniqueness among other competitive brands.
4.4Employees Benefits
The Coca-Cola Company creates value not only for its customers and consumers, but
also they create value for the employees that put efforts in making the company from
small entity to the big, bigger and acceptable among its customers. Employees‟
health benefits, fringe benefits, bonuses, training & development and many other non-
monetary benefits are being offered by the company in order to compensate their
employees. The company has recognized great satisfaction among its employees in
terms of remunerations and many other benefits. As the market is
Moving dynamically, the company accommodates their employees and engulfs their
employees with best offers in the market. Based upon cultural, social, national and
international emergence, the company offers holidays and arranges social events for
all to compensate them with the best they can.
4.5Integrated Marketing Communication (IMC)
The company effectively and efficiently uses integrated marketing communication
techniques in order to get connected and staying involved with its targeted customers.
It is merely not false to say that the Coca-Cola Company was the pioneer company to
launch the 360 degree marketing communication technique in order to staying
connected to their consumers wherever they are. This communication technique
revolves around the consumers (market), potential customers, the society and product
positioning etc.
Likewise, the company always tends to stay associated to their customers to deliver
more than just physical products. They cooperate with their customers for different
causes and they support to raise voices for the rights. For all these reasons, the
company is willing to stay close to their consumers through vast and quick social
media, where every part of the world is gathered as global village.
Coca-Cola effectively uses 360° communication techniques to be a part of practical
and emotional world of their consumers. The company has great interest to be close
to its customers, to be a part of their daily life activities, to be sympathetic in different
emotional situations and eventually creating emotions and feelings affiliations with
the public. The example to understand
this concept is that they help public in catastrophic periods and raising funds to help
the poor sector of economy.
19. Coca-Cola also involves their customers through cultural and musical shows that
bring an awesome touch between the company and the themes. By using those
attractions and affiliations the company creates its valuable messages in the form of
slogans such as; happiness, sharing, fun and traditions of Coke.
4.6Tools of Integrated Marketing Communication
After describing the role of IMC, now there is dire need to understand the features
and facts that actually work for perfect marketing technique. IMC tools include major
portion of marketing tactics which many companies including Coca-Cola uses
effectively in order to tackle the untapped market and to endure the current customers.
Integrated Marketing Communication or IMC is the key feature which not only
depends upon the products and customers but it also depends upon the objectives
which the company wants to achieve through proper promoting their brands to end
consumers.
Main channels or media used in this technique are; mass media (newspapers, TV),
Print media (Magazines, flyers and banners) and Social media (Social websites and
applications) which play the effective role of assigning company’s message to their
desired customers or general public. All the elements must work together for better
results in terms of marketing and advertising. IMC mix must be working enough
fundamentally with the marketing channels so that they convince effectively. Various
elements have been added to IMC mix which must have definite output on the brand’s
performance measurements. This is done when convincing message is delivered to
the customers. Here are some core elements of IMC mix that usually followed by the
Coca-Cola Company for directing and getting to maximum customers.
4.6.1Advertising
It is very important and core element of IMC tools in which mass consumers are
effectively focused towards intentions of the company and their contributions. The
huge target market is tapped by utilizing mass media. Hence, the most consumers are
attracted through TV Ads and other multimedia advertisements. It must be
interestingly mentioning that Coca-Cola has basically one objective worldwide and
they use similar techniques in the whole world. This is called as “think global, act
local”. Coke’s slogan has always been eye-capturing for even public who haven’t
been linked with the products.
4.6.2Direct Marketing
Another effective yet advanced technique is to get associated with the consumers
through digital means of communications. Similar to brand association, in this
20. method the company directly involve its customers to receive feed backs, 2-way
communication. Examples in this mechanism are; SMS-Marketing, E-Mail marketing
and direct/indirect sponsorship's for specific events. From these examples it can
clearly be noticed that the company is intensely interested to create consciousness
through any channel and engaging their customers at every possible step. One
example is to sending code words through SMS service to have a chance of winning
through lucky draw.
4.6.3Sales Promotion
One of the key elements from IMC in which the company must discover its
distinguishing features from its competitors in super markets or chain stores.
Moreover, the Coca-Cola
Company uses its unique strategies in terms of sales and promotions in the market.
Sales promotions are referred for the sake of utilizing both customer attraction and
trade benefits to both of the parties. In Pakistan, they rarely use sales promotions
because they have already stood up to the mark in the taste and exceptionality. People
already have understood the company’s unique standard. Despite of having low focus
on sales promotion, the public creates tremendous response to the company and the
brand. This inspires the value for the brand as well the company’s focus towards
understanding promotional activities. Many times the company uses its sales
promotions just to have a reminder to its consumers that they are strong entity in terms
of understanding their consumers very efficiently. Moreover, Coke links its sales
activities to social responsibilities in order to do two tasks on sale of even a single
product.
4.6.4Public Relations
The Coca-Cola Company is considered among very active companies who take
effectively part in developing relationship with their consumers and customers. Most
of the public relation strategies are introduced for detailed cultural as well as social
events. Corporate social responsibilities role are effectively played by the company.
By utilizing several forms of media, the key note will be brought to the target market
completely, even for those who do not fundamentally have the same attitude towards
the brand and toward communication. Some people are more likely to watch TV while
others more attracted towards internet and digital media, and many others are keen to
live and/or share their experience with the brand directly or indirectly. Through their
public relationships they create some innovative ideas in order to facilitate their
customers and consumers. They tend to create the positivity and positive image
towards the society.
21. Coca-Cola has created several examples in Pakistan under the umbrella of publicity
of their brand and branding activities. Company develops digital, print and social
media effectively in such a way that their customers understand the uniqueness in the
brand identity. Coke Studio, Coke Hello Happiness Phone Booths, Investments in
food related activities, sponsoring food related shows and cultural shows and last but
not the least they have created a great social activity to ask their consumers to donate
for “Edhi Center” Pakistan. In these ways the organization has created great impact
on their customers to support morally, ethically, culturally and ultimately trading to
create revenue.
4.6.5Internet Marketing
Due to advancements in technologies, acceptance of different gadgets and
advancements in connectivity the company has effectively tried to focus on the
outcome of the company’s performance. Customers use the latest gadgets,
applications, smart phones and internet to get connected to the world. Similarly, the
company has also adopted the latest introducing connectivity ideas. Coke’s strategies
are including capturing the maximum communities. It is the matter of fact that every
consumer has his own taste of entertainment and communicating. A specific
percentage of target market use television to get consciousness for the brands, a huge
number of people watch internet including YouTube, Facebook, Instagram,
WhatsApp and several other socializing websites, applications and platforms, many
of the consumers read newspapers on internet. These are the main points to be
understood by the marketers so that they should tap the untapped markets through the
media. Moreover, it is a fact of knowledge that almost everyone on the earth is aware
about the Coca-Cola due to pioneering in their marketing strategies. The company
has adopted new strategies through the execution of modern styles of internet
marketing. Almost every company has started electronic advertising.
4.6.6Partnership and Sponsorship
The Coca-Cola Company has objectives to achieve their core objectives through
sponsorship programs. The strategies are based upon investing and supporting in the
major events in the world. By sponsoring such big events, the company becomes a
part of the major events that create positive impacts even in the general public. The
strategies they approve are implemented as global tactics. Coke created historical
views in different fields. Some of the global strategies they adopted are as follow:
1923 Coke became official drink for the sportsmen
1928 Officially partnered in Olympic Games
1974 Partnered with FIFA
22. 1996 Partnership with France Football team officially
2007 Rugby world cup 2007 officially partnership
The most accepted yet awesome activity by the company is their investments in
musical performances and activities. Coke studio is a studio which creates unique and
catchy musical instrumental sounds for the public. They have contributed to create
awareness about cultural, regional and
Musical tunes. These are throwing according to different seasons. Coke studio is very
popular studio because musicians, stars and other personalities subsidize their talents
to in the form of valuable sounds and musical tones. Coca-Cola Company has
successfully created linkage with the public and their consumers. Millions of viewers
on YouTube channel and several stars are introduced through this platform. Similarly,
the original soundtracks are re-made through the influence of coke studio. Started
from season 1 and the latest one was season 8 at the end of previous year 2016. India
has its own artistic approach to the studio and Pakistan as its own pace of creating its
cultural music.
Chapter 5: Internal Analysis
Internal analysis referred to the impacts and changes that have been taken place within
the company to tolerate the market growth as well as to attain the revenue. Internal
analysis can be one in many ways, in this report it has been done mainly through
identifying marketing mix, SWOT analysis, BCG Matrix development and
comparison with its close competitor.
5.1MARKETING MIX OF COCA-COLA (4 Ps)
5.1.1PRODUCT
Product: Anything that is to be offered to the market (including individuals and
businesses) to make them satisfied and satisfying their needs, wants and demands is
called as product.
5.1.2Levels of Products for Coke:
Core: Core benefit is that to fulfill the thirst and create the joyful time while drinking.
Actual: These products line including different tastes and different sort of bottling
designs, beverage colors, tastes and ultimately consumers‟ lifestyle to use this
product.
Design:
Pet bottles
23. Reusable glass bottles
Economy packs
Tin Can
5.1.3Quality:
First of all this is a multinational brand that is why every country (or nation) will have
developed a distinct sort of taste and ingredients. The suitable example is that Coca-
Cola’s taste would be different in the USA, Middle East and in Pakistan. The reason
is original ingredients for making this beverage is only available in its home country.
5.1.4Coke Products:
The products by the company are characterized to be “convenience product”, because
of the reason that its purchasing rate is very high and highly consumer oriented
product which rarely gets depreciation or expired during its timeline period. These
are the products which a customer/consumer rarely thinks before purchasing.
(Cola Drink)
(Cola Drink)
(Soft Drinks)
-3G (Cola Drink)
(Mineral Water)
(Juice)
5.1.5PRICE
After identification of the products, next comes to realize the value for the product.
Every product or services offered are delivered to the consumers and in exchange of
these products (and services) company charges some amount, this is called as Price
for the product. The price of Coca-Cola, despite being making very acceptable market
share they kept similar as that of its competitors.
24. Pricing strategy of Coca-Cola
The suitable value for the products or services that a company charges in exchange
for cash or other assistance's, called as pricing of that product. Prices are charges in
order to give something in exchange for the usage of products or services. This P is
also important for the company to identify their product’s value proposition and
marketability. When the users are satisfied from one time purchase, they purchase
again and again so this creates demand and ultimately pricing strategies are gone
through these mechanics. Prices fulfill the company’s operative activities and other
sort of ideas to develop cost activities.
5.1.6Important Things while Setting Price
Demands of the product control the level of pricing
Targeted Revenue should be kept in mind while determining pricing
Too low or too high prices may lead to customer dissatisfaction and customer
retention rate is affected badly due to this factor.
Product’s price should be according to the acceptable level for maximum targeted
consumers
Customer’s satisfaction should be meeting completely with the offered product’s
price.
5.1.7Prices of Different Products:
Product Volume (in mili litres) Price
(in Pakistani Rs)
250 ML (Regular) 20
500 ML 40
1000 ML (1 Liter) 55
1500 ML (1.2 Liter) 80
2250 ML (2.25 Liter) 100
Tin Can 50
25. 5.1.8Competition Based Pricing Strategy:
Being a close competitor of PepsiCo, the Coca-Cola Company develops plans that
are based on pure competition in the market to avoid consumers‟ switching to other
products and their satisfaction levels. Coke’s pricing strategy in this regards is set in
such a way that they cannot exceed nor decreased below the certain limit that
competitor has already set in customer’s mind. If the company decreases its value that
would be considered worse condition because consumers can consider it to be the
fake or low quality products.
5.1.9Promotional Pricing Strategy
Promotional pricing is merely applied by the super stores and big stores on special
occasions. Company may not directly involve in those promotional pricing but the
stores are doing for their own promotions. Company directly offers promotional
pricing on special occasion of Ramadan (Islamic Month) and they decrease their
prices to support their consumers.
5.1.10Market Penetration Pricing Strategy
Prices in beverage industry are determined by the consumer. In an economy like 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-Cola has 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 its competitors. Otherwise,
consumers may go for Pepsi-Cola in case of availability of Coca-Cola at relatively
high price. These strategies are applied in most part of the world by Coke.
5.1.11Placing Strategies
Distribution Channels
Coca-Cola makes selling through two essential and big channels of distribution:
A.Direct Selling
B.Indirect Selling
5.1.12Direct Selling
In direct selling the company supplies their products in stores, shops, local markets
and cafeterias by utilizing their own transportation systems. They have more than 550
vehicles to supply their bottles to the end consumers. In this type of selling, the
company develops and devises more profit margins. Since this type of selling is
directly associated to consumers hence this is also known as B2C (business to
26. consumers) transactions. This is convenience for company to directly linking their
demands to end consumers.
5.1.13Indirect Selling
Coca-Cola has their whole sellers and agencies to cover all areas. Because it is very
difficult for them to cover all area of Pakistan by their own so they have so many
whole sellers and Agencies to assure their customers for availability of Coca-Cola
products. The company also has developed their supply chain process that has
intermediaries between company and their end consumers. The products are provided
to agencies and agencies supply those bottles to the outlets, stores and shops where
direct vehicles are merely not possible to reach. Those areas are covered by agencies.
5.1.14Promotional Strategies
Getting Shelves
The company gets or purchases shelves at big departmental stores and displays their
products in those shelves in that style which indicating their products clear, attractive
and more eye-catching for the consumers.
Fridges Distribution
The company provides refrigerators to shops, stores and local food points (including
restaurants) in order to promote their products in high range and secondly to support
their seller with best offers. Refrigerators are successful promotional strategies
because they contain coke’s logo and only Coca-Cola’s products range are to be
placed inside it.
Eye Catching Position
Salesmen of the Coca-Cola Company position their freezers and their products in eye
catching positions. Normally they keep their freezers near the entrance of the stores.
This brings awareness about availability of the product at specific places.
Sale Promotion
Company also provides sponsorships (at some areas specified) with different college
and school’s cafes and sponsors their sports events and other extra curriculum
activities for getting market share.
UTC Scheme
UTC means “under the crown scheme”. Coca-Cola often does this type of scheme
and they offer very handy prizes in it. Like once they offer bicycles, caps, TV sets,
cash prizes etc. This scheme is very much popular among children. Most often they
27. offer glass ranges to be composed by the consumers by showing the code to
shopkeepers.
5.2SWOT Analysis
SWOT analysis is a situation analysis tool that helps the managers to identify internal
strengths and weaknesses, external opportunities, and threats and the potential impact
of these factors on the organizational performance. In this analysis, the internal and
external analysis are done in order to assess the company’s strengths, weaknesses (as
internal) and opportunities, threats (as external) factors. This is also measured to be
an essential tool for marketing strategies determination.
5.2.1Strengths
Keeping in view of company’s current performance and its market value, Coca-Cola
has already developed its strengths by considering much differentiation among other
brands in this industry. Some of the core strengths that have been identified are as
follow;
Popularity: Coke being an accepted by consumer and having unique recognition
among its consumers has developed a well standard. These things are accountable for
the company to remain recognizable and famous for being unique in giving taste.
Branding: Strength by the company is its branding techniques. Consumers rely on this
brand because they have developed a specific image of this brand in their minds.
International Recognition: Being a multinational recognition of the company, Coke
is a brand which has acceptance from all over the countries. Its recognition can be
assessed through this term that loyal consumers ask for coke‟s products even they
travel to abroad countries.
Decisive Financing: Many events are sponsored and financed by the company which
develops the ultimate goodwill for the company. This is one of the main strengths of
the company that they actually possess. Investing in cultural shows, food streets,
cafeterias, bigger level of food related events, musical events (including coke studio)
and many other shows are being financed by the company.
Customer Loyalty: An important factor of strength is that Coke‟s brand image has
been an acceptable image among its consumers (majority of consumers). The drinks
are initiate everywhere they go such as work, schools, colleges, universities, markets
and even small vendors have coke brand at priority.
Promotional Mix: In recent years, Coca-Cola has also developed as a brand of
excellent advertisement in Pakistan. They have utilized huge billboards, huge LCDs
28. and decoration at park sides in city areas. On multimedia, they have made huge impact
through their outstanding ads. The famous advertisements included the drink for
being used as cold and tag was “Brrrrr”. Recent ad was the remixing of a song to
capture the tagline of coke as “Zaalima Coka-Cola Pila De”. Sprite is usually used to
link with spicy food and many times it is linked with the feelings of being thirsty.
5.2.2Weaknesses
Less Product Range: The Company has a good range of products that are delivered to
their consumers worldwide, but in Pakistan their product range is having much
smaller scale. Many products under the brand are seemed to be missing in Pakistan.
Health Issues: Un-wanting health issues are still there in the products that the
company might not communicate to their consumers. Consuming too much
(especially coke) can also lead to their addiction which some doctors suggest
unhealthy for the human body’s system. These are also getting up due to artificiality
(artificial flavors) in their beverages.
Consumer’s Behavior: The consumers are ultimately the end users of products.
Occasionally, they stop purchasing or at least boycott such products due to
instructions and media awareness of negative impacts of consuming such products.
This awareness creates consumers to be aware of what they are drinking, so this is a
weak point which needs to be elaborated.
5.2.3Opportunities
Introducing New brands: Just like other countries, Coca-Cola can introduce wider
range of products to Pakistan as well.
Healthy beverages: Despite of having great impact in the market through marvelous
products, the company still has room to introduce and work for the healthy (natural)
beverages that everyone can accept without any hesitation. “Hilal” certification is an
issue that represents surety for the product to be legalized and edible or drinkable for
the Muslims everywhere. Moreover, the company can also create awareness of
unhealthy beverages that are already available in the market as their replicas.
More Target Market: Coke has developed and grown much to become the market
leader. Being market leader doesn‟t mean that company has achieved everything.
Coke has rooms for achieving more. Targeting teenagers, or below age with more
products range which should be natural ingredients based is a good target market that
can be worked.
Kicking Out Pretenders: Regardless of achieving high market share and good
acceptance by the public there are many competitors which are using similar formulas
or similar bottling for the sake of their business developments. The company can
29. clearly kick them out of the way by making legal and lawful implementations against
them.
Staying Ahead of the Competition: The competition is getting tougher now a days in
the markets due to several valuable reasons. Coca-Cola can clearly beat its
competition when it will cover up its opportunities in the required time period. Coca-
Cola can merely beat its competitors through quality products, mass advertisements,
positive conclusion in customers‟ mindsets, maximum retention rate in the industry
and several other factors that are directly linked to the grown of the company and
ultimately removing this weak point.
5.2.4Threats
Threats are considered to be the risk for the businesses and they are also danger to the
businesses in generating revenue and customer satisfaction levels. Here are some of
the threats that the company faces.
Legal Issues: Legal issues including the regulations of being multinational brand, the
company has to follow the state laws whether it is in its home country or in other
countries. Following legal issues is not a threat; rapid changes in regulations are the
threats for the company to operate in the country. Sometimes excise and taxation
issues are also stated as legal issues in this terminology.
Political Issues: Just like other businesses and companies Coca-Cola Company is also
directly affected by the political issues. The unforeseen political acts and ups & downs
of situations are threats on the company‟s performance.
Inflation: Rise in prices of commodities, inputs and ingredients are directly affecting
the products or outcomes. The increase in price will increase the cost and ultimately
the products‟ prices will rise. This thing directly affects consumer buying behavior
and purchasing capacities.
Fake Products (Copyright): Many small businesses are still unknown which are
threats to the company. Those businesses are creating fake products in cheaper cost
and same bottling. This is merely unethical thing that must be eradicated to support
consumers trust on brand. Fake products often appear on peak seasons like in summer,
Ramadan and on some official occasions. Although food authorities are playing their
roles to eliminate this unethical thing but still there is room for company to take
serious legal actions against them. Moreover, the implementation of copyright issues
in Pakistan is weaker as compare to other nations.
30. STRENGTHS WEAKNESSS
Popularity
International Recognition Branding
Customer Loyalty
Effective Promotions
Less Product Range Consumer Behavior
Health Issues
OPPORTUNS THREATS
Introducing New Brands Staying Ahead
of competition Healthy Beverages
New Target Market Recognition
Kicking Out The Pretenders
Legal Issues Political Issues Inflation
Copyright Issues
Market Competition
5.3Qualitative Analysis of the Company
The effective measurement that assesses the qualitative aspects of a company is called
as “BCG Matrix”. This can evaluate a company’s performance in the entire
diversified field. If the company has more than two businesses or products range
then they evaluate their performance through this useful material. The chart below is
the illustration of The Coca-Cola Company as a whole; this will give idea of their
diversified products under one analysis.
31. From the above BCG Matrix of the company, it can clearly see that all the products
are categorized in different divisions according to their market share and market
growth rate.
Star Product:
Fanta and Sprite are being the high evolution rate and having high market share. These
are categorized as star products for the company as they
Possess higher growth stats.
Question Mark:
Diet Coke has been characterized in this segment because of its low market share but
having high growth in the market. Diet coke is also acceptable product in the market
but having market share relatively lower as compared to other products.
Cash Cow:
Coca-Cola itself has been put in this category which directs that Coca- Cola has high
market share but possessing relatively lower market growth. This also indicates that
the product needed to be observed for the growth management.
32. Dogs:
This category designates the worst situation of products or division of product line
for any company. In Coca-Cola Company, two products have been categorized in this
division; one is Minute Maid and the other one is Kinley water. These products have
low market share and even low market growth. The company is still funding in these
two product lines.
5.4Coca-Cola’s CSR
Corporate Social Responsibility or CSR is referred for a business to give returns to
society in the form of valuable projects that benefits merely for the society only and
company’s profit should not be linked with that activities. Being a multinational
company, Coca-Cola has also developed its structure of business activities in which
they are supporting not only their own businesses but they are also assisting their
environments in which they are operating. However, there are several issues that are
being addressed by other multinational corporations and businesses but Coca-Cola
has also taken its steps towards emphasizing some of the main issues that can create
difference in the society. These CSR are essential for developing brand image. Coca-
Cola Pakistan has already developed vast portfolio in terms of corporate social
responsibility.
There are three main projects and activities that have been recently done by the
company and they are doing it so far to have a valuable contribution in the society.
I. Water Treatment Plant
Ii.Drinking Water Filtration Plant
Iii.Edhi Campaign
5.4.1Water Treatment Plant
Focusing on the global issues regarding utilization of water, many projects by
governments and corporations have been implemented in past few years. Similarly,
Coca-Cola Company has also taken initiatives in order to fulfill in its objectives to
replenish the water requirement in as many countries as possible. This thing will bring
out the corporate social responsibility for the company as well as the goodwill for
their business development. Through this mechanism the company gives back the
same amount of water that has been consumed by the company during production of
beverages. This is the way they are saving water to re-utilize for the purpose of plants
and other valuable natural resources.
33. Initially in 2007, The Coca-Cola Company announced its water replenishment
objectives for overall countries where they have already in operations. They
introduced and integrated the framework of individuals, communities and the
environment. This collaboration of framework was tagged as “Me, We, World”.
Through this framework, the company set goals to achieve 100 percent of water
replenishment throughout the environment so that maximum people can enjoy this
blessing. Coca-Cola Company operated this responsibility activity in 61 countries.
Pakistan remained among those 61 countries which are enlisted in this corporate
activity.
The success of this project can be observed through achievement in 2014. Coca-Cola
operated
209 watershed projects worldwide. They consumed around 300 billion liters of water
that produced. Coca-Cola Pakistan was able to replenish around 782 million liters of
the ground water. This project had developed its importance especially for the plants
and all related fields of agriculture because they are most essential part of our country.
782 million liters of ground water was being replenished by the Coca-Cola Company
in 2008 in collaboration with renowned organization WWF in Pakistan in Ayubia
National Park.
5.4.2Drinking Water Filtration Plant
As it was mentioned in previous section that Coca-Cola has portfolio of social
responsibility activities, therefore the company has developed another water related
project that has direct impact on the consumer as well as society. Coca-Cola has
introduced plants and machinery that is being used to filter the water for drinking
purpose. As according to a recent news report, exact 84% of population in Pakistan
is facing lack of pure water supply. This means that a state/country having more than
34. 200 million of population, not even 160 million people are enjoying pure water. This
leads to scarcity of water usage. By keeping in view these drastic situations, Coca-
Cola has developed its objectives to supply water to those areas and those individuals
who do not have access to water that is able for drinking purpose.
This is a purposeful objective to work for the community in such a way to minimize
the water crisis. Specific timeframes have been decided by the company and areas
have been allotted with the projects in working conditions. Initially this project was
implemented throughout the world except Pakistan, but later on in 2015 when the
company observed severe condition in this situation, they took initiative throughout
the country in different selective regions. Pakistani areas include; majorly focused
areas of Punjab, KPK and Sindh. Some more areas of Gilgit, Karachi coastal areas
and in Lahore city it is operated at Bedian.
It must be kept in mind that the company acted internationally first and then they
brought the good thing and activities at level even for Pakistan. In this way, they have
followed the mechanism and concept of “Think Global-Act Local” which means to
think for global communities and act for every country’s local community.
5.4.3Edhi Campaign
The most recent and yet one of the most important social responsibility for the
community was taken by the Coca-Cola Pakistan. In the Islamic month of Ramadan,
they initiated a campaign in which they showed their contribution to the world’s most
renowned social worker’s organization named as “Edhi Foundation”. After death of
the founder Abdul Sattar Edhi, the whole world was in sorrow for him. Similarly
many people wanted to follow his mission. In this respect, the company took initiative
to support the foundation in entirely unique way that hasn’t been done before. Coca-
Cola Pakistan introduced a campaign in which charity donors or aid assisting
individuals will donate their amount to Edhi through Coke, and Coke will ultimately
double that amount for the sake of CSR. The aid consisted of Zakat and non-Zakat
donations. The month of Ramadan had been selected for this purpose because this
month is the best time spiritually for the Muslims to donate and receive best rewards
hereafter. The main message or objective of the campaign was to carry on Edhi‟s
legacy and his missions towards community.
35. In this campaign, it was observed that unlike other CSR campaigns many TV stars
and Pakistani film industry actors were in to create awareness for people to go for
donating through Coke. This indicates the respect for humanity and contribution
through valid method of donating the cash amount. In this campaign, Coca-Cola
Pakistan created retail partners as well as they partnered with “Easy Paisa” services.
The collection methods for the campaigns included more than 75000 collection points
designated by the company, more than 300 Edhi centers for collection throughout the
country. People can donate as much as they can for this sake of good deeds, the
company set amount of Rs 25 million as maximum limit. The very encouraging
impact on social media had been observed through hash tag of #Bottle of Change.
5.10Challenges being faced by Coke
5.10.1Extensive Distribution:
Coca-Cola has well established distribution channel which has its own uniqueness in
terms of quality service providing. The challenges being faced by the company are;
(1) getting access to maximum rural areas. This is a big task for the company because
their distribution is limited towards agencies or wholesalers. It means that company
has less access to reach to their target consumers in rural areas. Second big challenge
in distribution is timely delivering of the products. These days and upcoming days are
big challenge for every big organization including Coca-Cola because of value for
time.
5.10.2Relationship with Retailers:
Developing relationship with retailers is not a big deal because they already have big
brand name and already sustained in the consumers mindsets. The challenge is to
maintain or sustain the relationship with more than just business partnering with
retailers. Providing retailers with more than just products are the essential qualities to
sustain the association between two business entities.
36. 5.10.3Fake Bottling:
In Pakistan it is merely an obvious thing that any big brand or any big business name
has its duplicates and fake makers in the markets. Those fake players tend to be the
representatives of original but the truth is actually in addition the actual happening.
Fake beverages are also playing their roles to distribute their products which pretend
to be the real one. The challenge is to cope with them and to remain in the market.
Consumers are also not willing to get access to replicas.
5.10.4Sustaining as Market Leader:
Achieving highest growth in terms of market share is merely a big achievement for
any business. The other big and main challenge is to remain at the top of that category.
Coke achieved highest growth in the market which is an excellent achievement, but
the challenge is to remain at the top in future as well. Competitors will always try to
defame or devalue the brand through any means; the success is to defeat them with
distinctively. It is merely an essential for any business to not just achieve the top
positions but to remain in that position for the long time. Similarly, it is also big
challenge for the company to remain at the top ranking in presence of tough
competitors. With unique value among them, Coke can remain at the distinction
position in the market with highest market share and good percentage of growth rate.
This is the strategic approach which supports the company to remain among top
brands in the world.