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Coca cola

  1. 1. www.GamesWala.comSubmitted under the partial fulfilment of the requirement for MASTER OF BUSINESS ADMINISTRATION of Uttar Pradesh Technical University, Lucknow Submitted To:- Submitted By:- Mr. Aftab Ahmad Tarique Jamal (HOD) MBA 3rd sem. 0907270164 IIMT Management College, Meerut (U.P.) India 1
  2. 2. www.GamesWala.comJai Shree Ram, Dostoi am vikas gupta, age 31 years . i start a gaming website which has PR4 and ratings below 4 lakh.i need here 1 help from you, as i have no money to promote my gaming site,i amrunning graphic shop with 1 PC (yes 1 PC :) think how i am surviving with 1 PCand a family with 2 kids :P ), I do not know much about how to promote mywebsite, so i decided to talk with you friends to come and join my site and playall the games for free, all games are personally selected by me from thousands ofgames.I am updating my website daily with lots of awesome games.You can playwithout register or register you id or you also can play with your facebookID.hope you all will like my site and play free online games there, and dontforgot to tell your friends about :) DECLERATION I Tarique Jamal hereby declare that this project report entitled Marketing StrategiesAnalysis has been completed based on actual study carried out by me during my internship programat Hindustan Coca-Cola Beveragws Private Limited, Patna. 2
  3. 3. I am presenting an authentic report of my work to IIMT Management college,Meerutcarried out at Hindustan Coca-Cola Beveragws Private Limited, Patna for the partial fulfilmentof the requirement of the Master Of Business Administraion degree programme of Uttar PradeshTechnical University, Lucknow. This research report is original and information, data and fact furnished their in are actualbased on study carried out by me. (Tarique Jamal) CERTIFICATE OF ORIGINALITYThis is certify that the Vocational Training Report entitled “Marketing StrategiesAnalysis”submitted to Hindustan Coca-Cola Beveragws Private Limited,Patna in partialfulfillment of requirement for the award of the degree of Master of Business Administration (MBA),original work carried out by Mr. Tarique Jamaland UPTU Roll No.0907270164 Under myguidance.This vocational report done on (training period June 14, 2010 to Aug 12, 2010) the topic hasn’t beensubmitted for any other examination & doesn’t form part of any other course undergone by the 3
  4. 4. www.GamesWala.comcandidate.……………………. ………………………..Signature of Guide Signature of Std.Date - / / Date - / /Name & Designation of Guide Name & Roll no of Std................................................... ............................................................................................... .............................................. …………………………….. Signature of Training Incharge V.K.Srivastav ACKNOWLEDGEMENT After completing my IInd semester curriculum. I went for summer training for 8 weeksduration and it bears inspirit of several person. I have achieve this training in one of the most esteemed organisation of the countryHindustan Coca-Cola Beveragws Private Limited, Patna for their kind permission to undertaken 4
  5. 5. www.GamesWala.comits study I am grateful to respected Mr. Vijay Kumar Singh (HR Executive,in Coca-Cola BeveragwsPrivate Limited). For there moral support and encouragement throughout my project work. This list will go incomplete without the special reference of the contribution and wholehearted support of manager’s and all other staff and department, which truly reflect their deep insightinto the project and the professional touch which is their benchmark. I would like to thanks Mr. Aftab Ahmad(IIMT Management college,Meerut), who helpedme a lot during this project. My gratitude will not be completed without thanking my beloved parents who have been aconstant source of aspiration & blessing in my pursuit for studies. PREFACEI did my summer training in Hindustan Coca-Cola Beveragws Private Limited, Patna. Icompleted my summer training for 8 weeks. I got training in the study of Marketing StrategiesAnalysis, Financial department is also being considered. 5
  6. 6. www.GamesWala.comHence I am presenting the training report Marketing Strategies Analysis. All the mistakes andproblems had been carefully removed with the help of all the managers.So I am thankful to all the managers of Hindustan Coca-Cola Beverages Private Limited, Patna. Tarique Jamal MBA (IIIrd Semester) TABLE OF CONTENTS CONTENTS 1. Mission statement 2. Introduction. 3. Coca Cola. a. Coca Cola International. b. History. 6
  7. 7. 4. Management. 5. EXTERNAL MARKETING ENVIRONMENT 6. Market share. 7. Financial report. 8. Dividends and Cash Plan. 9. Products. 10. Market mix of Coca-Cola 11. Strategic planning. 12. Bottlers owned by Coca cola 13. Coca Cola Pakistan. 14. Major Competitors a. Pepsi b. History. c. Financial assets. • Market share. • Financial report. • Products. • Methodology 15. Some basic information regarding marketing of coke a. Target market: b. Major segments: c. Factors effecting sales: d. Major competitors: e. Strategies of quality: f. Threats from competitors: g. Targets that would like to attain: h. Expanding target market i. Threats and opportunities for price: j. Strategies of getting goals i.e. “high profits”: k. Marketing strategy: l. Expectations for the coming year: m. How coke determine the yearly budget: 16. Marketing strategies 17. Pest analysis.The Mission Statement of the Coca Cola CompanyOur mission statement is to maximize shareowner valueover time. 7
  8. 8. www.GamesWala.comIn order to achieve this mission, we must create value for allthe constraints we serve, including our consumers, ourcustomers, our bottlers, and our communities. The CocaCola Company creates value by executing comprehensivebusiness strategy guided by six key beliefs: 1. Consumer demand drives everything we do. 2. Brand Coca Cola is the core of our business 3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day. 4. We will be the best marketers in the world. 5. We will think and act locally. 6. We will lead as a model corporate citizen.The ultimate objectives of our business strategy are toincrease volume, expand our share of worldwidenonalcoholic ready to drink beverages sales, maximizeour long-term cash flows, and create economic valueadded by improving economic profit.The Coca Cola system has more than 16 million customersaround the world that sells or serves our products directly toconsumers. We keenly focus on enhancing value for thesecustomers and helping them grow their beveragebusinesses. We strive to understand each customer’sbusiness and needs, whether that customer is asophisticated retailer in a developed market a kiosk owner inan emerging market. 8
  9. 9. www.GamesWala.comThere are nearly 6 million people in the world who arepotential consumers of our company’s product. Ultimately,our success in achieving our mission depends on our abilityto satisfy more of their beverage consumption demands andour ability to add value for customers. We achieve this whenwe place the right products in the right markets at the righttime. 9
  10. 10. COCA COLA INTERNATIONALHISTORY:Coca-Cola Enterprises, established in 1886, is a youngcompany by the standards of the Coca-Cola system.Yet each of its franchises has a strong heritage in thetraditions of Coca-Cola that is the foundation for thisCompany.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 fountaindrinks. However the bottling business began in 1899when two Chattanooga businessmen, Benjamin F.Thomas and Joseph B. Whitehead , secured theexclusive rights to bottle and sell Coca-Cola for most ofthe United States from The Coca-Cola Company.The Coca-Cola bottling system continued to operate asindependent, local businesses until the early 1980swhen bottling franchises began to consolidate. In 1986,The Coca-Cola Company merged some of its company- 10
  11. 11. www.GamesWala.comowned operations with two large ownership groups thatwere for sale, the John T. Lupton franchises and BCIHolding Corporations bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock tothe public on November 21, 1986, at a split-adjustedprice of $5.50 a share. On an annual basis, total unitcase sales were 880,000 in 1986.In December 1991, a merger between Coca-ColaEnterprises and the Johnston Coca-Cola BottlingGroup, Inc. (Johnston) created a larger, strongerCompany, again helping accelerate bottlerconsolidation. As part of the merger, the seniormanagement team of Johnston assumed responsibilityfor managing the Company, and began a dramatic,successful restructuring in 1992.Unit case sales hadclimbed to 1.4 billion, and total revenues were $5 billionThe Coca-Cola Company is the world’s largest beveragecompany. They operate in more than 200 countries & 11
  12. 12. www.GamesWala.commarkets more than 2800 beverage products. Headquarteredat Atlanta, Georgia, they employ approximately 90500employees all over the world. It is often referred to simply asCoke or (in European and American countries) as Cola orPop. 12
  13. 13. www.GamesWala.comMANAGEMENT:The hierarchy of Coca Cola Company is as follows. 13
  14. 14. Chairman Board of governors Vice Chairman and chief operating officer Executive Vice Presidents Senior Vice Presidents Vice Presidents
  15. 15. www.GamesWala.comMARKET SHARE: SHAREBeing the biggest company in the soft drink industry, CocaCola enjoys the largest market share. This companycontrols about 59% of the world market.GLOBAL MARKET SHARE:The following table can show the worldwide operatingsegments. (Table) Unit case growth Non- All commercial alcoholic Beverages drink10 year 5-year compound 2001 annual 2002 2002compound annual annual growth growthgrowthCompan Industry Compan Industry Compan Industry Company Compan Company y y share y share y per capita Income 6% 5% 5% 5% 4% 4% 18% 9% 70This shows that the market of the company is geographicallyvast and it is controlling it with great success. In 2002, thecompany grew their carbonated soft-drink business by nearly250 million unit cases and generated record volumes.Because carbonated soft drinks are the largest growthsegment within the nonalcoholic ready-to-drink beveragecategory measured by volume, that is why they are focusingmore on this and they are continually increasing the pace 15
  16. 16. www.GamesWala.combecause they know that accelerating this pace is crucial totheir future success. Thus they are increasing their marketday by day. The operation income earned by Coca ColaCompany can be illustrated by the following pie chart. (Figure)This strategy has worked a lot and it has helped them tobecome the World’s leading Soft Drink Company. The globalunit sale of the Coca Cola Company is increasing from thelast ten years. The data of the global unit sale of the CocaCola Company can be represented by following chart. (Figure) 12 10 8 6 unit sale in billions 4 2 0 1971 1981 1991 2002 16
  17. 17. www.GamesWala.comSo there is positive growth in the market of the Coca ColaCompany. There is a worldwide volume increase by 4% withstrong international growth of 5%. This is only due to theinnovative marketing programmers, which has deepened therelationship of the customers and Coca Cola. The financialhealth and success of their bottling partners is a criticalcomponent of The Coca-Cola Companys ability to build anddeliver leading brands. 17
  18. 18. www.GamesWala.comIn 2002, the company had worked with their bottlers to turngood intentions into reality by improving the systemeconomics. The results in 2002 reflect this steadily improvingand mutually constructive relationship between the Companyand their bottling partners. The main reason behind thisrelationship is to continue realizing shared opportunities forgrowth, with closer coordination of operations includingcustomer relationships, logistics and production. 18
  19. 19. EXTERNAL MARKETING ENVIRONMENT (PEST ANALYSIS)Political Analysis for Coca-ColaNon-alcoholic beverages fall within the food category underthe FDA. The government plays a role within the operation ofmanufacturing these products in terms of regulations. Thereare potential fines set by the government on companies ifthey do not meet a standard of laws.The following are some of the factors that could cause Coca-Cola companys actual results to differ materially from theexpected results described in their underlying companysforward statement:- • Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions. • Changes in the non-alcoholic business environment. These include, without limitation, competitive product and pricing pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors. 19
  20. 20. • Political conditions, especially in international markets, including civil unrest, government changes and restrictions on the ability to transfer capital across borders.Political structure and legal considerations also haveimpinged on Coco-Cola Company’s strategies. Governmentsof some Arab nations boycotted Coca-Cola’s products due toa political dispute and discontented with the company formaintaining distributors in Israel.Economical AnalysisBeing flexible and willing to change to satisfy consumers’needs, has enabled Coca-Cola to exploit the economies ofscale that was gained by its global marketing and at thesame time making its products appeal to local taste, whichthese have earned the company an enormous profitsquarterly. 20
  21. 21. www.GamesWala.comAs Coca-Cola has expanded over the decades or evennearly a century, the company has benefited from thevarious cultural insights and perspectives of the societies inwhich business is done. No doubt of the remarkableexperience it has, it is still very committed to local markets,to paying attention to what people from different cultures andbackgrounds like to drink, and where and how they like todrink it, to remain competitive and to develop more newdrinks to satisfy its markets.Now, the estimated brand equity of Coca-Cola is $84billion,market share of more than 50 percent in beverage industryglobally and about 70 percent of its income comes fromcountries outside United States. Every 10 seconds, 126,000people in the whole world, choose to reach out for one ofThe Coca-Cola Company brands, and it is the company’smission to make that choice exciting and satisfying, everysingle time.Previously the U.S. economy was strong and nearly everypart of it was growing and doing well. However, thingschanged. Before the attacks on September 11, 2001, theUnited States was starting to see the economy recoverslightly and it is only just recently that they achieved theeconomic levels. Consumers are now resuming their normalhabits, going to the malls, car shopping, and eating out atrestaurants. However, many are still handling their moneycautiously. They believe that with lower inflation still to come, 21
  22. 22. www.GamesWala.comconsumers will recover their confidence over the next year.As researching for new products would cost less the Coca-Cola Company will sell its products for less and the peoplewill spend as they would get cheap products from Coca-cola.Social Analysis for Coca-ColaForeign environment factors have influenced the Coca-Cola’s strategies in international marketing. Culture has atremendous effect on people’s preferences and perception.Language is one of the aspects of culture that marketersmust take care of, in term of translating product name,slogans and promotional messages so as not to convey thewrong meaning. Coca-Cola did not look much into thisaspect when entering into the markets of countries likeChina and Taiwan as the literal translation of Coca-Cola inChinese characters mean, “bite the wax tadpole”.Changes are necessary in international marketing forconsumer’s products, as it is important that the products suitone’s taste, preferences and fulfill one’s needs. Coca-Colahas continued changing, improving and developing newdrinks to appeal to local tastes.After discovering that Coke did not appeal as much toJapanese consumers, Coca-Cola developed over 30 new 22
  23. 23. www.GamesWala.comdrinks for the Japanese market, which inclusive of Asian tea,English tea, coffee and fermented-milk drink.In China, Coca-Cola has also begun the similar strategy ofintroducing beverages developed for the taste buds of localmarket. It launched a fruit juice drink called Tian Yu Di(Heaven and Earth) specifically for the Chinese market withplanning of introducing the market with a Chinese iced teaand soy milk drink.Many U.S. citizens are practicing healthier lifestyles. Thishas affected the non-alcoholic beverage industry in thatmany are switching to bottled water and diet colas instead ofbeer and other alcoholic beverages. Also, time managementhas increased and is at approximately 43% of allhouseholds. The need for bottled water and other moreconvenient and healthy products are in important in theaverage day-to-day life.Consumers from the ages of 37 to 55 are also increasinglyconcerned with nutrition. There is a large population of theage range known as the baby boomers. Since many arereaching an older age in life they are becoming moreconcerned with increasing their longevity. This will continueto affect the non-alcoholic beverage industry by increasingthe demand overall and in the healthier beverages. 23
  24. 24. www.GamesWala.comTechnological Analysis for Coca-ColaSome factors that cause companys actual results to differmaterially from the expected results are as follows: • The effectiveness of companys advertising, marketing and promotional programs. The new technology of internet and television which use special effects for advertising through media. They make some products look attractive. This helps in selling of the products. This advertising makes the product attractive. This technology is being used in media to sell their products. • Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier to carry and you can bin them once they are used. 24
  25. 25. • As the technology is getting advanced there has been introduction of new machineries all the time. Due to introduction of this machineries the production of the Coca-Cola company has increased tremendously then it was few years ago • Coca-Cola has six factories in Britain which use the most state-of the-art drinks technology to ensure top product quality and speedy delivery. Europes largest soft drinks factory was opened by CCE in Wakefield, Yorkshire in 1990. The Wakefield factory has the technology to produce cans of Coca-Cola faster than bullets from a machine gunMARKET SHARE BY AREA:Coca Cola is the world-renowned soft drink and thecompany is currently operating through out the world. Theworld wide total is about 17.8 billion.The operation review according to the segments is asfollows. Operation Review 25
  26. 26. (2002 worldwide unit case volume by operating segment) NORTH LATIN EUROPE & ASIA AFRICAAMERICA AMERICA MIDDLE EAST 30% 25% 22% 17% 6% NORTH AMERICA LATIN AMERICA EUROPE & MIDDLE EAST ASIA AFRICASo the volume is least in the Africa and most in the NorthAmerica. The data about the market share of this companyarea wise is given in the following table.The above table shows the geographical earning of the CocaCola Company and from this data; we can find out that thecustomers of Coca Cola are increasing which is shown bythe company’s per capita income. Unit case equals 24 eight-ounce servings. The column, which shows the non-alcoholicbeverages consist of commercially, sold beverages, asestimated by the Company based on available industrysources. The country column is derived from 26
  27. 27. The Companys unit case volume while the industry column includes nonalcoholic ready-to-drink beverages only, as estimated by the Company based on available industry sources. (Table)Country Unit case growth Non- All commercial alcoholi Beverages c Drinks 10 year 5-year compound 2002 annual 2002 2002 compound annual annual growth growth growth Compan Industry Compan Industry Compan Industry Compan Compan Company y y y y share y share per capita Income North 4 5 3 3 2 2 22 15 398America United 4 5 3 3 2 2 23 16 419 States Latin 6 7 6 6 3 4 24 15 205AmericaArgentin 7 4 6 2 7 2 20 10 236 a Brazil 5 5 3 6 3 5 23 13 144 Chile 9 6 5 3 (2) 3 56 23 336 Mexico 7 10 8 9 2 5 22 18 462Europe 6 3 5 3 2 4 12 6 72& Middle EastEurasia 17 8 6 5 (14) 1 14 5 39 France 8 3 9 3 7 3 9 5 110German 1 2 (1) 1 (6) 1 14 7 193 y Great 8 2 11 2 8 3 17 6 193 Britain 27
  28. 28. Italy 1 3 4 3 2 2 9 6 104Middle 12 12 7 5 4 8 8 3 17 EastSpain 6 4 8 5 4 4 17 12 264 Asia 7 6 6 7 10 7 14 5 23Africa 7 6 8 3 10 6 34 11 34In Asian population, which is the satisfied customer of CocaCola, is approximately 3.2 billion and the average consumerenjoys close to two servings of our products each month.Through an intense focus on Coca-Cola, innovation and newbeverages, the company has achieved volume growth of 10percent in 2002. With developing economies andpopulations, this region has strong long-term potential, andthe company is building an exciting family of beveragebrands in addition to expanding the popularity of our corebrands, led by Coca-Cola. In China, for example, sales of Coca-Colaincreased 6 percent. The total unit case sale of Coca Cola in Asiacan be shown by the following pie chart. (Figure)So the company is emphasizing more in this area and istrying to develop a strategy, which can increase the growth 28
  29. 29. www.GamesWala.comof the consumption of Coca Cola by the people of Asia.Among the countries of Asia, Japan has the highestpercentage, which is about 29%. Among others, Pakistan,India and Bangladesh are those countries where theaverage consumption is increasing day by day. 29
  30. 30. www.GamesWala.comFINANCIAL REPORT:This company is financially very strong. It is due to thestrong finances, the company is still surviving the ups anddown of the business world. The financial report of CocaCola Company of the year 2001 and 2000 along with thepercentage change is as follows. (Table) Year Ended December 31, (In millions except per share data, ratios and growth rates) 2002 2001 Percentage changeNet operating revenues 20,092 19,889 1%Operating income 5,352 3,691 45%Net income 3,969 2,177 82%Net income per share (basic) 1.601 0.882 82%Net income per share(diluted) 1.601 0.882 82%Net cash provided byoperating activities 4,110 3,585 15%Business reinvestment (963) (779) 24%Dividends paid (1,791) (1,685) 6%Share repurchase activity (277) (133) 108%Free cash flow 3,147 2,806 12%Return on capital 26.6% 16.2% -Return on common equity 38.5% 23.1% -Unit case sales (in billions) Internationaloperations 12.5 11.9 5% 30
  31. 31. North Americaoperations 5.3 5.2 2% Worldwide 17.8 17.1 4%2002 basic and diluted net income per share includes a non-cash gain of $.02 per share after taxes, which wasrecognized on the issuance of stock by Coca-ColaEnterprises Inc., one of the equity investors of this company.2002 basic and diluted net income per share includes thefollowing charges: • $.24 per share after income taxes related to an organizational Realignment. • $.19 per share after income taxes related to the Companys portion of charges recorded by the investors of the company. • $.16 per share after income taxes related to the impairment of certain bottling, manufacturing and intangible assets. • $.05 per share after income taxes related to the settlement terms of a discrimination lawsuit. • $.01 per share after income taxes related to incremental marketing expenses in Central Europe.These charges are partially offset by a gain of $.05 per shareafter income taxes related to the merger of Coca-ColaBeverages plc and Hellenic Bottling Company S.A. and $.04per share after income taxes related to benefits from a tax 31
  32. 32. www.GamesWala.comrate reduction in Germany and from favorable tax planningstrategies.DIVIDEND AND CASH INVESTMENT PLAN:The Dividend and Cash Investment Plan permitsshareowners of record to reinvest dividends from Companystock in shares of The Coca-Cola Company. The Planprovides a convenient, economical and systematic methodof acquiring additional shares of our common stock. Allshareowners of record are eligible to participate.Shareowners also may purchase Company stock throughvoluntary cash investments of up to $125,000 per year.At year-end, 76 percent of the Companys shareowners ofrecord were participants in the Plan. In 2002, shareownersinvested $36 million in dividends and $31 million in cash inthe Plan. 32
  33. 33. www.GamesWala.comCOMPANY STATISTICS:The statistics of this company is impressive. Since it isoperating through out the world that is why the number ofemployees and the bottling equipments is highest among theother bottling companies. There is a constant increase inevery aspect when we compare the statistics of 2001 andthe statistics of 2002. This is because; Coca Cola Companyis increasing its volume day by day. The expansion of thiscompany, which shows the success of Coca Cola brands,results in the percentage change in the statistics of the twoyears. The statistics is as follows. (Table) 2002ª 2001Equivalent cases 4.2 billion 3.8 billion Bottle and cans 87% 87% Fountain 13% 13%Employees 72,000 67,000Vehicles 54,000 52,000Cold drink equipments 2.4 million 2.3 millionFacilities Production only 25 25 Distribution 385 361 Combination 53 50Total 463 436Percent of North America population coverage 80% 72%Number of States of Operation 46 46Bottle and can equivalent case package distribution Cans 44% 45% Non-refillable bottles 52% 51% Refillable bottles 4% 4%Capital structure Net debt to total capital ratio 63% 59% EBITDA interest coverage 3 3 Weighted average cost of debt 6.3% 6.8%Key Statistics Constant territory bottle and can volume growth 3% ½% Bottle and can net revenues per case change Flat 2% Bottle and can cost of sales per physical case change 1 ½% Reported EBITDA (in billions) $1.95 $2.39 33
  34. 34. Reported EBITDA change (18)% 9% Capital expenditures( in billions) $0.97 $1.18 %-age of net operating revenues 6% 8% Coverage of North American Can/bottle volume 83% 74%EBITDA is the Earnings before interest, taxes,depreciation, and amortization, and other non-operatingitems. • Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable securities. • Equivalent Case or Unit Case is the physical case and fountain gallons converted to a standard unit of measure defined as 24 eight-ounce servings or 192 ounces per equivalent case sold by Coca-Cola Enterprises. 34
  35. 35. PRODUCTS:There are different brands of the Coca Cola Company, whichare currently in use through out the world. This company notonly deals in the carbonated drinks but also other drinks.While launching its product, the marketing team considersthe culture of the country.Major brands of coca cola • Coke • Sprite • Fanta • Diet coke • Coke classic 35
  36. 36. www.GamesWala.comThe over all volume of this company is as follows. (Figure)The commitment of the company is to devote resources towater only in markets where it expects profitable growth.This strategy has paid dividends. The company hassuccessfully applied it’s approach to brands in several keymarkets, including Ciel in Mexico, Mori No Mizudayori inJapan, Bonaqua in Russia and Kinley in India. Backed by astrong network of bottling partners through out the UnitedStates, Dasani became the nations fastest-growing waterbrand. In Eurasia, the entire Turkuaz brand team workedtogether to launch Turkeys first purified water brand. Thisyear, Coca-Cola Company also successfully energized amajor piece of its beverage strategy—water. By the end of2001, it’s bottled water volume exceeded 570 million unitcases, making it the second biggest contributor to the growth 36
  37. 37. www.GamesWala.comof the company after carbonated soft drinks. Three of thewater brands, Dasani, Ciel and Bonaqua each achievedsales of over 100 million unit cases for the year.In 2001and 2002, the company has also made goodprogress in coffees and teas. Beverage Partners Worldwide,the renewed and strengthened marketing partnership withNestlé S.A., began operations in 2001. This partnershipcombines Nestlés knowledge in life science, research anddevelopment with the expertise of Coca Cola Company inbrand building and distribution.At the same time, the company grew Georgia coffee inJapan by 3 percent through award-winning marketing in acategory that was flat for the year. Also in Japan—whereThe Coca-Cola Company is the leader in the total teacategory, the second-largest category in the non-alcoholicready-to-drink segment—it launched Marocha Green Tea.With sales of 46 million unit cases for the year, MarochaGreen Tea is the fastest-growing product in the fastest-growing category: green tea. The popularity of Marocha isalso recognized by the industry with a leading trade journalnaming Marocha the most popular new food and beverageproduct of the year. 37
  38. 38. Know the most recognized word on the planet after “OK”!Among the soft drinks Fanta and Sprite become successfulalong with the major brand Coca Cola and Diet Coke. Inkey markets, the company has created new packaging sizesto satisfy consumer demands. 38
  39. 39. www.GamesWala.comIncreasingly, Mexican families have lunch together at home.The average Mexican household drinks two-and-a-half litersor more of soft drinks during that break, while a two-literbottle was the largest available package. So the companyintroduced a convenient 2-½ liter bottle to select regions,contributing to the sale of nearly 1.5 billion unit cases ofCoca-Cola in Mexico this year. This larger bottle willcomplete its nationwide rollout in 2002. In China, Coca-Colais an integral part of holiday celebrations and the family get-togethers that accompany such events. Through an intensefocus on Coca-Cola, innovation and new beverages, it hasachieved volume growth of 10 percent in 2001. In China,sales of Coca-Cola increased by 6 percent. In the UnitedStates, recognizing that consumers often enjoy their dietCoke with a slice of lemon, the company "bottled" theconcept. The result—diet Coke with lemon—contributed tovolume growth of 4 percent for the number-one diet.Soft drink in North America: diet Coke. The companyincreased its two largest bottle sizes during the 2001holidays, and festival packaging helped drive a 6 percentvolume increase for Coca-Cola. The packaging innovationsdo not just involve resizing. The company has alsoresponded to consumers changing fashion styles with newbottles.With brands such as Minute Maid, Hi-C, Simply Orange andDisney juices and juice drinks in the United States, Qoo in 39
  40. 40. www.GamesWala.comAsia, Kapo in Latin America and Bibo in Africa.This year, the company re-launched its global sports-drinkbusiness, investing in new products, packaging, positioningand marketing. The results speak for themselves: it’s globalsports drinks, led by Powerade and Aquarius, grew by 13percent in 2002, nearly double the growth rate of theworldwide sports-drink category. Revitalized in the UnitedStates, the company introduced Powerade in nearly everymajor Western European market, including Great Britain,Germany and Spain, as well as in Mexico and Latin America.The company launched 27 products in 2001.The commitment of the company to packaging innovationalso resulted in new initiatives for our fountain business, achannel through which many consumers enjoy Coca-Cola. Inthe United States, the company developed Fountain, a totalbeverage dispensing system that is more flexible and morereliable. Two years of research resulted in a dispensingsystem that provides exceptional beverage quality, easy toupgrade technology, brand and graphic customization andimproved reliability. 40
  41. 41. MARKETING MIX OF COCA-COLAFirstly, we will look at how Coca-Cola has used theirmarketing mix. The marketing mix is divided up into 4 parts;product, price, promotions and place. 1. Product: The product (Coca-Cola soft drink) includes not just the liquid inside but also the packaging. On the product- service continuum we see that a soft drink provides little service, apart from the convenience. Soft drinks satisfy the need of thirst. However, people are always different, some want more and others want less. Therefore Coca-Cola has made allowances for that by providing many sizes. We also have particular tastes, and again they have provided several options. So, 41
  42. 42. www.GamesWala.comalthough thirst is what is needed to be satisfied and thatis the core benefit, we are receiving other benefits in thetaste and size. Coca-Cola has developed severaldifferent flavours and sizes as mentioned above, butalso several brands such as Sprite, Lift, Fanta and DietCoke which increase the product line length, thusmaking full use of the market to maximize sales.The product is convenient, that is - bought frequently,immediately, and with a minimum of comparison andbuying effort.The appearance of the product is eyecatching with the bright red colour. It has a uniquelydesigned bottle shape that fits in your hand better, andcreates a nicer & more futuristic look.The quality of the soft drink is needed to be regularlyhigh. Sealed caps ensure that none of the "fizz" is lost.The bottles are light, with flexible packaging, so theywont crack or leak, and are not too heavy to casuallywalk around with. The cans are also light and safe.The product range of Coca-Cola includes: • Coca-Cola, • Coca-Cola classic, • caffeine free Coca-Cola, • diet Coke • caffeine free diet Coke, • diet Coke with lemon 42
  43. 43.• Vanilla Coke,• diet Vanilla Coke,• Cherry Coke,• diet Cherry Coke,• Fanta brand soft drinks,• Sprite,• diet Sprite• Sprite Remix 43
  44. 44. www.GamesWala.comProduct Lifecycle of Coke:Product life cycle has four phases1. Introduction2. Growth3. Maturity4. Decline.The markets where Coke is a dominant player are UnitedStates of America, Europe and Asia, Africa. There is a vastdifference in terms of above given phases for example, in 44
  45. 45. www.GamesWala.comU.S.A & Europe it has reached maturity stage where it can’texpand its market more but if we consider Asia, it is still inthe growth phase.Coca-Cola is currently going through the maturity stage inWestern countires. This maturity stage lasts longer than allother stages. Management has to pay special attention toproducts during this stage of the product life-cycle. Duringthe maturity stage, products usually go through a slowdownin sales growth. According to Coca-Colas 2001 annualreport, sales have increased by 1.02% compared to lastyear. This percentage has no comparison to the high level ofgrowth Coca-Cola enjoyed during its growth stage. To add alittle variation Coca-Cola took the Coca-Cola Classic andadded variations to it, including Cherry Coke, Vanilla Cokeand Diet Coke. Also Coca-Cola went from 6-oz. glass bottlesto 8-oz. cans to plastic liter bottles, all helping increaseconsumption. COCA-COLA 45
  46. 46. www.GamesWala.com2. Price: Like any company who has successfully endured a century of existence, Coca- Cola has had to remain tremendously fluent with their pricing strategy. They have had the privilege of a worthy competitor constantly driving them to be smarter, faster, and better. A quote from Pepsi Cos CEO "The more successful they are, the sharper we have to be. If the Coca-Cola Company didnt exist, wed pray for someone to invent them." states it simply. The relationship between Coca-Cola & Pepsi is a healthy one that each corporation has learned to appreciate. 46
  47. 47. www.GamesWala.comThroughout the years Coca-Cola has made manypricing decisions but one might say that their ultimategoal has always been to maximize shareholder value.As cola consumption has decreased in the US colashave come to realize the untapped international market.In 2003 both Coke and Pepsi had a solid presence inIndia and had each introduced a 300mL bottle. In orderto grab market share Pepsi began to drop prices (evenwith summer approaching, which was contrary to policyin America). Shortly thereafter, Coca-Cola decided todrop their prices slightly, but focused on the reducedprice point of their 200mL container. Coca- Colaplanned to use the lower price point to penetrate newcities that were especially price sensitive. Thecarbonated soft drink market in India is nearly 37% ofthe total beverage market there.This low price strategy was not unfamiliar to Coca-Cola.Both Coke & Pepsi utilized a low price strategy in theearly 1990s. After annihilating the low price storebrands, Coke chose to reposition itself as a "Premium"brand and then raise prices.Coca-Cola products would appear, on the shelf, to havethe most expensive range of soft drinks common tosupermarkets, at almost double the cost of no namebrands. This can be for several reasons apart from justto cover the extra costs of promotions, for which noname brands do without. It creates consumer 47
  48. 48. perceptions and values. When people buy Coca-Cola they are not just buying the beverage but also the image that goes with it, therefore to have the price higher reiterates the fact that the product is of a better quality than the rest and that the consumer is not cheap. This is known as value-based pricing and is used by many other industries in attracting consumers. In India, the average income of a rural worker is Rs.500 a month. Coca Cola launched a 200 ml bottle for just Rs.5, an affordable amount on the pockets of the rural audience.3. Place: Coca-Cola entered foreign markets in various ways. The most common modes of entry are direct exporting, licensing and franchising. Besides beverages and their special syrups, Coca-Cola also directly exports its merchandise to overseas distributors and companies. Other than exporting, the company markets internationally by licensing bottlers 48
  49. 49. www.GamesWala.comaround the world and supplying them with the syrupneeded to produce the product.There are different types of franchising. The type that isused by Coca-Cola Company is manufacturer-sponsored wholesaler franchise system. It is verycomparable to licensing but the only difference is thatthe finished products are sold to the retailers in localmarket.Coca Cola has managed their company’s marketing andsales strategy within channels. Have you everconsidered the significance of the Coke vendingmachine to the success and profitability of the CocaCola company? This channel is direct to consumer andvending machines often have little to no competition andno trade or price promotions.The Coke Company operates three primary deliverysystems for its business channels: • Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and Club stores; • For smaller channels Coke does advanced sale delivery for convenience stores, drug stores, small supermarkets and on-premise fountain accounts. • Full service delivery for its full service vending customers. 49
  50. 50. www.GamesWala.comKey Channel Listing • Supermarkets • Convenience Stores • Fast Food • Petroleum Retailers • Chain Drug Stores • Hotels/Motels/Resorts • Mass Merchandisers • U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and DECA • VendingIn 2006, the Company began changing its deliverymethod for its route delivery system. Historically, theCompany loaded its trucks at a warehouse withproducts the route delivery employee would deliver. Thedelivery employee was responsible for pulling therequired products off a side load truck at each customerlocation to fill the customers order. Coke began using anew CooLift® delivery system in 2006 in a portion of theCompanys territory which involves pre-building ordersin the warehouse on a small pallet the deliveryemployee can roll off a truck directly into the customerslocation. The CooLift® delivery system involves the useof a rear loading truck rather than a conventional side 50
  51. 51. www.GamesWala.comloading truck. Coke will continue to rollout this programover the next several years since they expect suchsignificant savings and more efficient deliverys. This is ahuge investment for Coke.The company works through independent bottlers ofCoke. They work in coordination with the Coke companywhich produces the secret formula concentrate andships to the distributors and bottlers for final processingand packaging prior to shipment to the stores.Coca-Cola floods all possible retailing stores insatisfying the third part, place. In supermarkets andconvenient stores, Coca-Cola products are always easyto identify, and usually make up the greater proportionof options to buy. This increases their market exposurethrough effective use of the retailers. For a FMCG it isimportant that they can be found and purchased easily.With many automatic Can machines located in manysports stadiums and shopping malls, you dont evenneed to go to a store to buy a drink. This greatlyenhances the speed of purchase.The company produces concentrate, which is then soldto various licensed Coca-Cola bottlers throughout theworld. The bottlers, who hold territorially exclusivecontracts with the company, produce finished product incans and bottles from the concentrate in combinationwith filtered water and sweeteners. The bottlers thensell, distribute and merchandise Coca-Cola in cans and 51
  52. 52. www.GamesWala.combottles to retail stores and vending machines. Suchbottlers include Coca-Cola Enterprises, which is thelargest single Coca-Cola bottler in North America andWestern Europe and food service distributors.The Coca-Cola Company only produces a syrupconcentrate, which it sells to various bottlers throughoutthe world who hold Coca-Cola franchises for one ormore geographical areas. The bottlers produce the finaldrink by mixing the syrup with filtered water and sugar(or artificial sweeteners) and then carbonate it beforefilling it into cans and bottles, which the bottlers then selland distribute to retail stores, vending machines,restaurants and food service distributors.The Coca-Cola Company owns minority shares in someof its largest franchises, like Coca-Cola Enterprises,Coca-Cola Amatil, Coca-Cola Hellenic BottlingCompany (CCHBC) and Coca-Cola FEMSA, but fullyindependent bottlers produce almost half of the volume 52
  53. 53. sold in the world. Since independent bottlers add sugar and sweeteners, the sweetness of the drink differs in various parts of the world, to cater for local tastes.STRATEGIC PLANNINGIn the year 2002, the company had a great success, as thestrategy worked which resulted in making Coca ColaCompany the world’s leading company. In 2001, companyaccomplished the crust of it’s strategy as • Worldwide volume increased by 4 percent with strong international growth of 5 percent and clear signs that our North American business is growing solidly and predictable. • Earnings per share grew by 82 percent, as we delivered on our commitment to create volume growth while aggressively • Return on common equity grew from 23 percent in 2000 to 38 percent this year. • Return on capital increased from 16 percent in 2000 to 27 percent in 2001. 53
  54. 54. • The company has generated free cash flow of $3.1 billion, up from $2.8 billion in 2000, a clear indication of its underlying financial strength.The strategy for the future of the company is verystraightforward. The marketing strategy for the year 2002is as follows, • Accelerate carbonated soft-drink growth, led by Coca- Cola. • Selectively broaden the family of beverage brands to drive profitable growth. • Grow system profitability and capability together with our bottling partners. • Serve customers with creativity and consistency to generate growth across all channels. • Direct investments to highest potential areas across markets. • Drive efficiency and cost-effectiveness everywhere. 54
  55. 55. www.GamesWala.comMAJOR COMPETITORPEPSI INTERNATIONALHISTORYPepsiCo is a world leader in convenient foods andbeverages, with revenues of about $27 billion and over143,000 employees. The company consists of the snackbusinesses of Frito-Lay North America and Frito-LayInternational; the beverage businesses of Pepsi-Cola NorthAmerica, Gatorade/Tropicana North America and PepsiCoBeverages International; and Quaker Foods North America,manufacturer and marketer of ready-to-eat cereals and otherfood products. PepsiCo brands are available in nearly 200countries and territories.Many of PepsiCos brand names are over 100-years-old, butthe corporation is relatively young. PepsiCo was founded in 55
  56. 56. www.GamesWala.com1965 through the merger of Pepsi-Cola and Frito-Lay.Tropicana was acquired in 1998 and PepsiCo merged withThe Quaker Oats Company, including Gatorade, in2001.would entertain the listener with the latest musicalselections rendered by violin or piano or both. The newname, “Pepsi Cola”, is derived from the two of the principleingredients, Pepsin and Kola Nuts. It was first used on theAugust 28. At that time, Bradham’s advertising praises hisdrink as “Exhilarating, invigorating, aids digestion”.1990-2002The advertisement of the Pepsi changes to, “You got theright one baby, Uh-Huh!”.With the extensive usage of thestars in the adds, the popularity of Pepsi increase. In 1992Pepsi-Cola formed a partnership with Thomas J. Lipton Co.Today Lipton is the biggest selling ready-to-drink tea brandin the United States. Outside the United States, Pepsi-ColaCompanys soft drink operations include the business ofSeven-Up International. Pepsi-Cola beverages are availablein more than 190 countries and territories.In Asia, they selected Lahore to make their regional office.This was done in 1970. This regional office is monitoring allthe operations carried out in South West Asia. As inPakistan, they only entered beverage industry. They haveeleven bottlers covering whole Pakistan. The plant operatinghere is Riaz Bottlers (Pvt) LTD. This plant was established atLahore in 1974. The total capacity of the plant is 30,000cases per day. They have four filling lines in the plantoperating on the three shift bases. Each shift is of eight 56
  57. 57. www.GamesWala.comhours. They have permanent work force of 750 people andthey employee approximately 1000 people more ontemporary basis during summer season. 57
  58. 58. www.GamesWala.comPepsi’s Products • Pepsi • Teem • Mirinda • Pepsi Max • Pepsi Lemon • Pepsi Blue • Mountain Dew • 7up 58
  59. 59. www.GamesWala.comCOCA COLA PAKISTANThe Coca-Cola Company began operating in Pakistan in1953. Coca-Cola, Fanta and Sprite are the brands inPakistan. The Coca-Cola System in Pakistan operatesthrough eight bottlers, four of which are majority-owned byCoca-Cola Beverages Pakistan Limited (CCBPL). TheCCBPL plants are in Karachi, Hyderabad, Sialkot,Gujranwala, Faisalabad, Rahimyar Khan, Multan andLahore. The remaining two plants, independently owned, arein Rawalpindi and Peshawar. The Coca-Cola System inPakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan employs 1,800 people. During thelast two years, The Coca-Cola System in Pakistan hasinvested over $130 million (U.S.) 59
  60. 60. www.GamesWala.comPROMISE OF COKEThe basic proposition of our business is simple, solid andtimeless. When we bring refreshment, value, joy and fun toour stakeholders, then we successfully nurture and protectour brands, particularly Coca-Cola. That is the key to fulfillingour ultimate obligation to provide consistently attractivereturns to the owners of our business.TARGET MARKETCoke’s commercials basically based on young generations,So, the young generation is the target market of Cokebecause they want to represent Coke with the youth andenergy but they also consider about the old people they takethen as a co-target market.MAJOR SEGMENTSMajor segments are basically those people who take thisdrink daily and those areas where the demands is higherthen the other areas. There are so many people who takethis drink daily and those people who take weekly and thosewho take less often are always there as well. So, their basicsegments are those people who take this drink regularly. 60
  61. 61. www.GamesWala.comFACTORS EFFECTING SALESThere are so many factors, which affects the sale of coke.Here we are discussing three major factors which effectscoke.• Per capita income• Competitors• WeatherPer Capita IncomeFirst we will discuss about “ Per capita income”. This ismajor factor that affects the sale of this soft drink. Becausewhich every passing year budgets are becoming very strictand tight in order to purchase things. So the disposableincomes of the people are coming down. They spend heavilyon rents, utilities, and education and basic necessities andafter that when they get extra money they think about thissoft drink .So the decreasing per capita income effects badlyin selling and production of this soft drink. 61
  62. 62. And to get through with this difficulty there is need toincrease the level of per capita income of Pakistan becauseit is much lesser than the rest of the countries.CompetitorsCoke’s major competitor is “PEPSI” and there is nohesitation to say this because every one knows that and allthe other cold drinks and water, coffee, tea are thecompetitors.WeatherWeather is the third major factor in effecting the Coke’sselling. This is underdeveloped market so the coke’sconsumption in summers is 60% and in winters is 40%.MAJOR CUSTOMERS NEEDFirst of all the majority don’t care that what they are going tohave. In other words, they don’t care before drinking thatwhether it is “Pepsi” or “coke”. They don’t actuallydifferentiate between these two brands in order to theirtastes.Consumers basically drink what they get.They believe on “WHAT COLD THEY SOLD” 62
  63. 63. www.GamesWala.comConsumer’s availability in brands is basically works like:Push availabilityPull consumer’s demand.For this reason Coca-Cola have provided their coolers andfreezers in the market. They have maximum number ofcoolers and freezers in the market. They provide thisinfrastructure free of cost just to provide child coke to theircustomer, which they want to be purchase.Their salesman and mechanics regularly visit all the shopswhere coke has its infrastructure to check that either it is inproper condition or not, if not then they immediately changeor repair it. 63
  64. 64. www.GamesWala.comMAJOR COMPETITORSConsumers firstly decide that they are going to have a softdrink. Then they compete brands with each other. Like theycompete Coke with Pepsi and Sprite with 7up and team .Sothe major competitor of Coke is Pepsi.When they motivate to any other brand or on Coke it’s ininstinct basically that based on messages derive certainfeelings.But Coca Cola thinks in a different way, they believe that RCCola, new coming AMRAT Cola, and all juices, even theytake water and tea as their competitors.STRATEGIES OF QUALITYAfter Micro and macro analysis Brand “coke” is primarily role 1. Enhance competition moments 2. When people watch cricket 3. Through commercialization 4. Fun timeThough these strategies there could be better understandingand better connection with the public. These are the “keyconsumption”.THREATS FROM COMPETITORSThreats are well planned. Price is the major threat. Whenprice goes certain beyond the exact price whether comedown or go higher its effects the consumption of soft drink. 64
  65. 65. www.GamesWala.comBecause when the price go higher people go for thesubstitute of “coke” i.e. Pepsi.And when price goes down they think that there is must besome thing wrong in it.In short it all depends on customer’s perception.TARGETS THAT WOULD LIKE TO ATTAINEvery organization runs on the bases of profit maximizationso Coke is also looking for a high profit margin.There are three major ways of making money • Over night profit • Windfall profit • Ethical and un-ethical ways 65
  66. 66. www.GamesWala.comOver Night ProfitsThey could be over night profit that is for the number 1 brandfor the year. This could be got my increasing sales volumeWindfall ProfitCan be windfall profit. They are the extras profit. When theconsumption the consumption is on boom. So, there isdifferent kind of profits.Ethical And Unethical WaysProfit can also get through ethical and unethical ways. They believe on this quote“ Every thing is fare in love and war”.Some profits stays for some time like “over night profits” andsome just come and go like “wind fall profits”. And they canalso get profit through different approaches.EXPANDING TARGET MARKETIn last 2 years Coke has come back in aggressive manner. • Consumer has choice • Attractive brand name • Brand differentiating 66
  67. 67. www.GamesWala.comConsumer Has Got ChoiceNow the consumer has got choice. Because now they knowthe name of another big brand, though coke is the 2nd bestname but it can get a better position after some timeAttractive Brand NameNow the consumers know the Name of Coke, because Cokeis the name, which is the most popular after the word “ok”.So people can better differentiate brands with each other.Brand DifferentiationNow different companies have got different brandnames. So, people can distinguish between brands.Two major brands “coke” and “Pepsi” also have brandnames.Coca Cola’s BrandCoca cola is “US” brand. Because they believe in thetogetherness, being people together and friends are beingtogether. Coca Cola strongly believes that Pakistanitemperament is “US” not “ME”Pepsi’s Brand 67
  68. 68. www.GamesWala.comPepsi’s brand is basically is basically “ME” branded. Theyuse the temperament of “ME”. In contrast to Coke theybelieve on individual struggle. THREATS AND OPPORTUNITIES FOR PRICEOpportunitiesIf Coke is considered a luxury product. Then there is the taxrate system15% - sales tax20% - excise duty27% - goes to government03% - In making BudgetAfter paying all these taxes coke has to pay electricitycharges. We have to spend on distributions. After paying allthese expenses Coke’s margin squeezed and consumershave to pay for increasing tariffs.These are the opportunities through which we can increasethe price and can get profits.ThreatsThere are much more threats in increasing prices.Because same problem of substitute. If Coke increasethe price lets say 1 rupee. Then people definitely won’tgo for coke. They have the best substitute of Coke thatis Pepsi. So these are the threats in increasing prices. 68
  69. 69. www.GamesWala.comCoke will lose the margin of its profit and can faceloss. 69
  70. 70. www.GamesWala.comSTRATEGIES OF GETTING GOALS I.E. “HIGHPROFITS”To increase the price is the least thing, which Coke canadopt. There are so many ways through which Coke canincrease the profits. Some major ways are as follows. • Volume can be increased • Interest level of consumers • To take part in energetic festivalsHow to increase the volume of consumers?Coke can increase the volume by expanding the industry ofcoke. Through advertisements, offering different interestingthings to attract people towards this product.How to increase the interest level of consumers?Coke is increasing the interest level of consumers by offeringdifferent flavors.For example Coke is increasing the number of flavors in“Fanta”, this is one of the product of coke. Through offeringdifferent flavors Coke can increase the Level of consumersand through this profits can be gained.How to take part in energetic festivals? 70
  71. 71. www.GamesWala.comCoke is already taking part in the festival like “Basant” sincelast 3 years. Coke offers different attractive things in theirfestival and through this Coke gained high profit andconsumption of coke increased on these occasions.And this year in this year 2002 people were anxiouslywaiting that what interesting thing coke is going to offer.MARKETING STRATEGYOur local marketing strategy enables Coke to listen to all thevoices around the world asking for beverages that span theentire spectrum of tastes and occasions. What people wantin a beverage is a reflection of who 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 arefreshing Coca-Cola, a woman in Italy taking a tea break, achild in Peru asking for a juice drink, or a couple in Koreabuying bottled water after a run together, were there for you.We are determined not only to make great drinks, but also tocontribute to communities around the world through ourcommitments to education, health, wellness, and diversity.Coke strives to be a good neighbor, consistently shaping ourbusiness decisions to improve the quality of life in thecommunities in which we do business. Its a special thing tohave billions of friends around the world, and we neverforget it. 71
  72. 72. MARKET POSITIONINGProduct RangeThe total range of Coca Cola company in Pakistan includes: • Coke. • Sprite. • Fanta. • Diet Coke.And company offers their products in different bottle sizesthese includes: • SSRB (standers size returnable bottle) • LRB (litter returnable bottle) • NRB (no return bottle) or disposable bottle • PET 1.5 (1.5 litter plastic bottle) • CANS (tin pack 330 ml)Packing 72
  73. 73. www.GamesWala.comCoca cola products are available in different packing • 24 regular bottle shell • 6 bottle pack for 1.5 pets • 12 bottles in a pack for disposable bottlePRICE STRATEGYTrade PromotionCoca cola company gives incentives to middle men orretailers in way a that they offer them free samples and freeempty bottles, by this these retailers and middle man pushtheir product in the market. And that’s why coca cola seenmore in the market. And they have a good sale in the marketbecause according to the expert which product seen more inthe market that sells more.“Seen as sold”They do agreements with a shop keepers and stores toexclusive sale in that stores. These stores are called as KEYaccounts in their local language.And coke also invest heavy budget on these stores andoffers them free samples and free bottles and some timecash incentives.Different Price In Different Seasons 73
  74. 74. www.GamesWala.comSome times Coca Cola Company change their productprices according to the season. Summer is supposed to be agood season for beverage industry in Pakistan.So in winter they reduce their prices to maintain their salesand profit. But normally they reduce the prices of their petbottles or 1 litter glass bottle. 74
  75. 75. PROMOTION STRATEGIESGetting shelvesThey gets or purchase shelves in big departmental storesand display their products in that shelves in that style whichshow their product more clear and more attractive for theconsumers.Eye Catching PositionSalesman of the coca cola company positions their freezersand their products in eye-catching positions. Normally theykeep their freezers near the entrance of the stores.Sale PromotionCompany also do sponsorships with different college andschool’s cafes and sponsors their sports events and otherextra curriculum activities for getting market share.UTC SchemeUTC mean under the crown scheme, coca cola often do thistype of scheme and they offer very handy prizes in it. Likeonce they offer bicycles, caps, tv sets, cash prizes etc. Thisscheme is very much popular among children.DISTRIBUTION CHANNELSCoca Cola Company makes two types of selling 75
  76. 76. www.GamesWala.comDirect sellingIndirect sellingDirect SellingIn direct selling they supply their products in shops by usingtheir own transports. They have almost 450 vehicles tosupply their bottles. In this type of selling company havemore profit margin. 76
  77. 77. www.GamesWala.comIndirect SellingThey have their whole sellers and agencies to cover all area.Because it is very difficult for them to cover all area ofPakistan by their own so they have so many whole sellersand agencies to assure their customers for availability ofcoca cola products.FACILITATING THE PRODUCT BYINFRASTRUCTUREFor providing their product in good manner company hasprovided infrastructure these includes: • Vizi cooler • Freezers • Display racks • Free empty bottles and shells for bottlesADVERTISEMENTCoca cola company use different mediums • Print media • Pos material • Tv commercial • Billboards and holdings 77
  78. 78. www.GamesWala.comPrint MediaThey often use print media for advertisement. They have aseparate department for print media.POS MaterialPos material mean point of sale material this includes:posters and stickers display in the stores and in differentareas. 78
  79. 79. www.GamesWala.comTV CommercialsAs everybody know that TV is a most common entertainingmedium so TV commercials is one of the most attractive wayof doing advertisement. So Coca Cola Company doesregular TV commercials on different channels.Billboards And HoldingsCoca cola is very much conscious about their billboards andholdings. They have so many sites in different locations fortheir billboards.EXPECTATIONS FOR THE COMING YEAR Every thing starts from the attitude of consumer’s behavior.And the basic key to attract the consumers is to throw the“money away”.And positive feeling felling with the brand, which they used tohave Coke wants to advertise their products heavily in thecoming year. And it will take the 10% of their profits. Andwhen we take it as a global level it is $ I billion.Coming year is the challenging year for the industry of Coke.They have to take lots of decisions that how to increase theproduction and where they have to spend money.For gaining success in coming year they have to have someimportant things like: 1. Loyal consumers are important for company’s success. 79
  80. 80. 2. Workers should be the brand centric not the promotion centric. 3. They should know how much to for the brand activities. 4. They should also know that how much to do with the promotion activities for brand.HOW COKE DETERMINE THE YEARLY BUDGETCoke determines its yearly budget by the • Sales volume • Profitability • Target volume 80
  81. 81. www.GamesWala.comSales VolumeCoke determines its yearly budget through the sales volume.They first concentrate on the thing is “what is the condition oftheir sales?” if the condition is good of their sales then theydefinitely increase their production and sales volume.Otherwise they concentrate on their old strategies.Profitability:The second thing through which they determines budget isthe “profit” .if they r getting profits with the high margin, thenthey definitely want to increase their profits in the nextcoming year. Every organization runs on the basis of gettinghigh profits. No organization wants to face Loss in theirbusiness. To get profit is the first priority of the Coke.Target Volume:To run the business every industry has some targets, whichthey want to achieve in a specific time period. If industryachieves those goals in that period then for the coming yearit increases the volume of the target.So Coke Follow the same thing it has also some goals andtargets to achieve in the given time period. When theysucceed to achieve that target then they increase their targetvolume in the next year. 81
  82. 82. SALES PROMOTION ACTIVITIESCoca-Cola CricketCricket the most sought after; watched & played game inPakistan .the game of cricket has been owned by variousbrands in the industry for the promotion of their productsover a period of time. It has ranged from tobacco tolubricants to communication companies to banks to airlines& lately to the beverage industry. The competition hasbecome tougher & tougher as the time has progressed.Coca-Cola signed a sponsorship agreement with eight ofPakistan’s National cricket players. Coca-Cola realizing thefact that cricket is a very strong element by which it canreach it consumers & masses invested in the opportunityand launched a massive campaign on mass media showingall these cricket stars endorsing & complimenting Coca-Colabrand. The Coca-Cola Company developed three TVcommercials & four testimonial ads with the player & ranthem on the national net work during various cricketmatches. These bold steps taken by the Coca-Colamarketing unit acclaimed them many acknowledgementsacross the board. This campaign helped Coca-Cola toestablish its association with the game & the player.Coca-Cola ConcertsAbrar-ul-haq’s distinct style, lyrics & songs have made himan instant hit among the masses in Pakistan. His enormous 82
  83. 83. www.GamesWala.compopularity in the country & abroad is supported by Coca-Cola’s commitment towards providing healthy & fun-filledentertainment for the youth of Pakistan. Coca-Cola broughtAbrar to his fans through holding concerts & featuring Abrarin a much-appreciated TVC & MMT featured throughout thecountry.The TVC campaign focused on the hectic lifestyle of a popstar who found respite & relief through Coca-Cola in shortmoments that he had to himself during a concert. Coca-Cola’s brand positioning of providing deep down refreshmentfor the body, soul & mind were captured accurately in theTVC & depicted aptly how the drink completes the momentfor Abrar.Coca-Cola Food MelaWith a splash of food, fun & prizes to be won, the Coca-Colafood mela treated the people of Karachi, to a festive foodfestival comprising of 50 restaurants, spread out all over thebustling city’s map. The promotion saw the avid families &friends enjoying the delicacies at the restaurants; allresiliently upholding the Coca-Cola identity. 83
  84. 84. www.GamesWala.comCoca-Cola Basant FestivalIn February the month of basant the parks & horticultureauthority in Lahore nominated Coca-Cola the official sponsorof the basant festival .Coca-Cola added to the carnivalatmosphere by making the festival free to enter & decoratingall main roads in Lahore with illuminated kites. Coca-Colaalso hosted a concert of pop idol Abrar-ul-haq, had children’sparade & held the Coca-Cola kite flying championship duringthe basant festival. Now “where there is basant there isCoca-Cola”, it has been impossible to envisage basantwithout Coca-Cola. Coca-Cola give the more refreshingflavor to the colors of basant by adding more life to thefestival, giving the consumer a unique experience which theyhad never tasted before.Coca-Cola GO-REDQuenching the thirst of motorist, pedestrians & passerby’sduring Lahore’s hottest summer season, Coca-Cola’s “GO-RED” teams went out into the cities main quadrants to “serve& refresh” on the spot with ice-cold Coca-Colas atdiscounted prices backed by a heavy FM announcementcampaign the “GO-RED” stall, served well to promote theCoca-Cola industry.Coca-Cola Party in a ParkIn June 2000, Coca-Cola created an experiential musicalevening in Lahore, where Junoon performed. This program 84
  85. 85. www.GamesWala.comwas recorded and one-hour program shown in the nationalTV for free.10 million households saw Coca-Cola ‘Party in aPark’ while 10 thousand people attended the event.Coca-Cola Shopping FestivalCoca-Cola hosted “The Coca-Cola Shopping Festival”Lahore’s first shopping festival, a resounding success withtempting discounts, live music, great prizes & fire works.Liberty marketing Gulberg was a hive of activity during theweeklong shopping extravaganza. The in augural eventproved so popular that it is now set to become an annualfixture.Coca-Cola Pet PromotionIn 1996, Coca-Cola launched 1.5 liter Pet contour bottle forthe first time in Pakistan. Targeting house wives & familyhome, Coca-Cola’s 1.5 liter Pet bottle, took the limelight &gained momentum with a campaign promoting the uniquepackaging and its numerous consumer benefits .A treat forthe family, Coca-Cola’s PET was offered through a “price-off” promotion that said……….Go out & get some 85
  86. 86. www.GamesWala.comCoca-Cola Ramzan CampaignA very special occasion for the people of Pakistan Ramzansaw another very special Coca-Cola’s promotion, marketingthe popular 1.5 liter PET bottle & the 1 liter bottle with asuper price-off promotion. The emphasis on enjoying Coca-Cola at “Iftar” with friends & family.Coca-Cola Wonder of the World PromotionIn July 2000, Coca-Cola set the stage of the grand UTCpromotion. Coca-Cola went ahead with the idea of givingconsumer chances to win fabulous, magical “dreamvacation” to numerous “wonder destination” throughout theworld on every purchase of a 250 ml RGB bottle of Coca-Cola, Sprite, & Fanta.The promotion gave consumers achance to win free drink, a trip to PARIS, HOLLYWOOD,NEWYORK, SINGAPORE & CAIRO along with airfare & fournights free stay in these dream lands. The promotion sawavid consumer collecting Coca-Cola ‘Crown caps’ & sparkeda keen response from the public , rendering an outstandingtestimonial campaign in the second phase, highlighting thewinners over whelmed in the magical delight of their favoritebeverage Coca-Cola.Coca-Cola & NokiaIn August 2001, the new under-the-crown promotion“Nikla Kiya?”(What have u won) was launched incollaboration with Chimera Nokia.The promotion gave 86
  87. 87. www.GamesWala.comconsumer a chance to win thousand’s of Coca-Colabranded Nokia 3310 cellular phones on everypurchase of 750ml RGB bottle of Coca-Cola ,Sprite, &Fanta.The other highlight of promotion was the“Caught Red Handed” campaign. Branded Coca-Cola with ‘caught red handed’ team in them went toLahore & Karachi for three days, with target thatanyone being caught drinking Coca-Cola will beawarded a nokia 3310 mobile phone & if someone iscaught talking on a nokia mobile will win free supply ofCoca-Cola. Caught red handed become a huge successamong the masses as it was one to one interaction betweenthe Coca-Cola brand & the consumers. This activity helpedbilled confidence and brand loyalty among core consumers.Coca Cola TV MazzaThe coca cola new campaign is coca cola tv mazza, it is autc scheme in which people are getting television sets ofdifferent sizes. These days this scheme is very popularamong the people.Coca-Cola & Mc Donald’sCoca-Cola & key account of MC Donald’s launched the “wego together” joint promotion to reinstate amongstconsumers a real sense of the affinity that, both sharesglobally. The promotion kicked off with pos material(Danglers, Bunting etc) displayed at all MC Donald’srestaurants along with a special offer for coke & fries. 87
  88. 88. www.GamesWala.comFanta & Sprite LaunchedIn November 2000moving on to the Sprite & Fanta brands,the consumers in Pakistan witnessed a soft launch inessence. The Coca-Cola Company declared the new “Non-Returnable” bottles of Sprite & Fanta as the “New, On theGo Packs” flaunting the innovative packaging convenience.Fanta & Sprite are sure to enjoy considerable success inPakistan.Diet CokeAfter the acquisition of the individual local franchise bottlingfacilities in 1996, the company has successfully launched itsfirst new product, diet coke, for the first time in almost 3years. The was linked with three fashion shows as Diet Cokeis related to fashion & fitness, but the major hit was thematicfashion shows in restaurants, which are the key accounts ofthe company as this has been never done before inPakistan. 88
  89. 89. SWOT ANALYSISStrengths:Coca-Cola has been a complex part of American culturefor over a century. The products image is loaded withover-romanticizing, and this is an image many peoplehave taken deeply to heart. The Coca-Cola image isdisplayed on T-shirts, hats, and collectible memorabilia.This extremely recognizable branding is one of Coca-Colas greatest strengths.Additionally, Coca-Colas bottling system is one of theirgreatest strengths. It allows them to conduct businesson a global scale while at the same time maintain a localapproach. The bottling companies are locally ownedand operated by independent business people who areauthorized to sell products of the Coca-Cola Company.Because Coke does not have outright ownership of itsbottling network, its main source of revenue is the saleof concentrate to its bottlers. 89
  90. 90. www.GamesWala.comA company like Coca-Cola has much internal andexternal strength, but when launching a product of thissort, they begin to run into many internal and externalweaknesses as well. As far as internal strengths go,Coca-Cola itself is a strong company to say the least.Not only are they a $23 billion company, but in 200nations, Coke sells about 400 drink brands, includingfour of the top five sellers right now. They own 36% ofthe largest Coke bottler in the world, Coca-ColaEnterprises, which staffs facilities all over the world.Although Coke has never produced an organic product,they do own Odwalla, which is a natural juice company.This product would not be marketed as an Odwallabrand, but Odwallas knowledge of natural juice makingwill be a great strength for Coca-Cola.Organic products are on the rise, with 70% ofAmericans having purchased something organic at leastonce. While organics are becoming more and morepopular, there still are not many well-known organiccompanies; therefore, Coca-Cola will not have muchcompetition.Perhaps one of their biggest strengths is the brandloyalty their customers have. When this product islaunched, avid Coke drinkers will choose this organicfruit juice or soda over any other competitor simplybecause its a Coca-Cola product and they trust it. 90
  91. 91. www.GamesWala.comWeaknesses:Although domestic businesses as well as manyinternational markets are thriving, Coca-Cola hasrecently reported some "declines in unit case volumes inIndonesia and Thailand due to reduced consumerpurchasing power." According to an article in Fortunemagazine, "In Japan, unit case sales fell 3% in thesecond quarter because while Japan generates around5% of worldwide volume, it contributes three times asmuch to profits. Latin America, Southeast Asia, andJapan account for about 35% of Cokes volume andnone of these markets are performing to expectation.Coca-Cola on the other side has effects on the teethswhich is an issue for health care. It also has got sugarby which continuous drinking of Coca-Cola may causehealth problems. Being addicted to Coca-Cola also is a 91
  92. 92. www.GamesWala.comhealth problem, because drinking of Coca-Cola dailyhas an effect on your body after few years.Opportunities:Brand recognition is the significant factor affectingCokes competitive position. Coca-Colas brand name isknown well throughout 94% of the world today.Packaging changes have also affected sales andindustry positioning, but in general, the public hastended not to be affected by new products. Coca-Colasbottling system also allows the company to takeadvantage of infinite growth opportunities around theworld. This strategy gives Coke the opportunity toservice a large geographic, diverse, area.Threats:Currently, the threat of new viable competitors in thecarbonated soft drink industry is not very substantial.The threat of substitutes, however, is a very real threat.The soft drink industry is very strong, but consumers arenot necessarily married to it. Possible substitutes thatcontinuously put pressure on both Pepsi and Cokeinclude tea, coffee, juices, milk, and hot chocolate.Even though Coca-Cola and Pepsi control nearly 40%of the entire beverage market, the changing health- 92
  93. 93. consciousness of the market could have a serious affect. Of course, both Coke and Pepsi have already diversified into these markets, allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the market.Consumer buying power also represents a key threat in theindustry. The rivalry between Pepsi and Coke has produceda very slow moving industry in which management mustcontinuously respond to the changing attitudes and demandsof their consumers or face losing market share to thecompetition. Furthermore, consumers can easily switch toother beverages with little cost or consequenceCONCLUSIONAfter thorough research, we come to the conclusion that themarketing strategy of Coca Cola is working for them and theproduct is gaining popularity among youth day by day. 93
  94. 94. RECOMMENDATIONSAfter completing our project we have concluded somerecommendation for the coca cola company, which arefollowing. 94
  95. 95. • Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. • According to the survey, conducted by the international firm Pakistani people like little bit sweeter cola drink. So for this coca cola company should produce their product according to the local demand. • Marketing team should try to increase the availability of Coke in rural areas. • They should also focus the old people. • Now young generation has a trend to drink a coke 2 regular bottles at same time, so providing more satisfaction to them company should introduce ½ liter disposable bottle. PEST ANALYSIS OF COCA-COLAThere are four variables, which we will discuss in our report, they are: 95