Marketing Analysis of Coke(Coca cola)


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Marketing Analysis of Coke(Coca cola)

  2. 2. Group Members1. Muhammad Ghayas Yousafzai2. Raja Murad Saqib3. Muhammad Ali Bhatti BBA &Bsc –A/F
  3. 3. About Coke
  4. 4. Background Coke was established in 1886 by John S. Pemberton in Atlanta, Georgia. Bottling business began in 1899. Non-alcoholic beverage November 21, 1986 price of $5.50 a share. Unit sales were 880,000 in 1986. In 1992 unit case sales had climbed to 1.4 billion, and total revenues were $5 billion In 2009, they sold more than 600 million cases globallyKnow the most recognized word on planet after ‘OK’
  5. 5. John S. Pembertson Declaration
  6. 6. Coke Profile Type Soft Drink (Cola) Manufacturer The Coca- Cola Company Founder (s) John S. PembertonCountry of Origin United States Introduced 1886 Area Served Over 200 countries Brands More then 500 Flavors Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry. Employees 92,400Servings per Day 1.6 Billion Website
  7. 7. Coca Cola Pakistan Started operating in Pakistan in 1953. CCBP (Coca Cola Beverages Pakistan Limited). Plants located in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan, Multan and Lahore. Two independent plants in Rawalpindi and Peshawar. Serves 70,000 customers and retail outlets. Employs 1,800 people in Pakistan.
  8. 8. Mission Statement
  9. 9. Mission Statement To refresh the world - in mind, body and spirit To inspire moments of optimism - through our brands and actions To create value and make a difference everywhere we engage
  10. 10. Vision And Goals1. Maximizing return to shareholders2. Being a great place to work4. Bringing to the world a portfolio of beverage brands6. Nurturing a winning network of partners and building mutual loyalty7. Being a responsible global citizen that makes a difference8. Highly effective, and fast-moving organization
  11. 11. What Coke Cares about??
  12. 12. The Six key Beliefs Consumer demand drives everything we do. Brand Coca Cola is the core of our business We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages. To be the best marketers in the world. Think and act locally. To lead as a model corporate citizen.
  13. 13. Coca Cola Values Values•Leadership •Accountability•Passion •Innovation•Integrity •Quality
  14. 14. Major Products Of Coca Cola Sprite(1972) Coke (1953)Fanta Products Diet Coke(1965) (2001) Kinley DrinkingMinute Maid Water And Juices
  15. 15. PEST Analysis
  16. 16. External environment (Macro)Political Factors Government has control over Coke manufacturing activities by setting standards of law Changes in taxation and environmental laws Political conditions, civil unrest and restrictions on the ability to transfer capital across borders Arab nations boycotted Coke’s products due to a political dispute and discontented with the company for maintaining distributors in Israel.
  17. 17. Economic Forces Changes in consumer spending habits Economic crisis makes consumers to cut down their spending Inflation Worse economic situation after 9/11
  18. 18. Social Culture has a tremendous effect on people’s preferences and perception Many U.S. citizens are practicing healthier lifestyles. Organized Racing family in North America, May 10, 2012 Language is one of the aspects of culture that marketers must take care of
  19. 19. Technological Forces Introduction of new machineries all the time The new technology of internet and television which use special effects for advertising through media Speedy delivery –Wakefield factory has technology to produce cans of Coke faster than bullets from a machine gun
  20. 20. External environment (Micro)
  21. 21. External environment (Micro)Suppliers Coke considers its suppliers as a partner in their business. Extensive training – to keep good relations and maintain quality product. CCBSS(fructose corn syrup) Nutrasweet and Ajinomoto ( Acesulfame potassium) Tate and Lyle (Sucralose)
  22. 22. Marketing Intermediaries Retailers Wholesalers Resellers To build traffic and strengthen operations.
  23. 23. Customers Customer satisfaction is considered as being the most important and vital things in Coke progress. Coke dedicates a page on their website for customersCompetitors Coke’s main rival is PEPSI Constantly developing new products for its customers
  24. 24. Muhammad Ali Bhatti
  25. 25. Market Summary
  26. 26. Marketing MixProduct World’s most favorite brand FMCG distribution pattern Wide range of soft drinks Core product , Augmented Product, Actual product
  27. 27. Promotion Targeting value based advertising. Allows price discounts and allowances to distributors and retailers Push strategy and Pull strategy Most widely recognized word after "OK".
  28. 28. Marketing Budget TV BudgetChannel Timing No. of ads Price/mintPTV home 8am 5 PKR 100,000 9pm 4 PKR 132,226 AAG 8pm 4 PKR 50,000 Geo 10pm 5 PKR 70,000 ARY 9pm 5 PKR 400,000 Total 23 PKR 752,225
  29. 29. Newspaper BudgetNews Papers Size Day Prices Dawn 27x4 Sunday PKR 430,920 The News 27x4 Sunday PKR 1,682,000 Total PKR 2,112,920
  30. 30. Billboards Coca-Cola will cover each region with 500 sq. ft The three different rates of billboards are PKR 40000, 70000 and 125000. The total estimated cost of billboard advertisements will come to PKR2,600,000.
  31. 31. Place Wide scale distribution. Coke sets its own distributions directly to stores Supermarket Available nationwide and worldwide
  32. 32. Price Each sub-brand of Coke has different pricing strategy according to the market and its segments Pricing is done keeping in view the increasing rivalry with Pepsi Pricing is basically standard for all over the world
  34. 34. Internal Strength Weaknesses Popularity Word of mouth Well known Lack of popularity of many Branding obvious and easily Coca Cola’s brands recognized Most unknown and rarely A lot of finance seen Customer loyalty Result of low profile or International Trade non-existent advertising Holding a large part of world Health issues culture for a very long time Brand image, supreme taste quality No Luxury packing
  35. 35. External Threats OpportunitiesChanging health Many successful brandsconscious attitude to pursueLegal issues Advertise its less popular productsHealth ministers Buy out competition.Competition (Pepsi) More Brand recognition
  36. 36. Marketing Strategy To listen to all the voices around the world asking for beverages to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Determined to make great drinks
  37. 37. Marketing Objectives To increase volume To Expand worldwide nonalcoholic ready to drink beverages Improving economic profit Coke aim is to focus on enhancing value for their customers.
  38. 38. Major Segments Demographic Segmentation (Age, Income, Family size) Behavioral segmentation Segmentation health wise Coke segments its market upon their demands
  39. 39. Market DemographicsIn Pakistan Coke’s share is only 36%. POPULATION 176,242,949 (July, 2009 estimated) CHILDREN 37.2% (65,607,612) ADULTS 62.8% (110,680,572) CHILDREN EQUITY 60% (14,643,619) ADULT EQUITY 40% (27,802,960) TOTAL TARGET MARKET: 42,446,579
  40. 40. Market Positioning Open happiness – varieties of advertisements and taste Coke spends lots of money to make a different creative slogan for targeted people Coke controls about 59% of the world market Positioning statement of Coke To all, who wants best drinks to quench their thurst, by providing the best quality and taste in an affordable price.
  41. 41. Raja Murad Saqib
  42. 42. Product Life Cycle of Coke Coke is in maturity stage but gradually moving towards the declining stage of the life cycle. The company must now determine whether they will stop producing Coke, change the soda, seek new markets for the soft drink or if they will maintain their current strategy. Coke’s sales have increased by 1.02% compared to last year. This percentage has no comparison to the high level of growth Coke enjoyed during its growth stage.
  43. 43. Brand Development Strategy Coke believes in selling out the best products to its customers to retain them with their products. The company also invested in various advertisement campaigns often engaging the services of celebrities around the globe.
  44. 44. Brand image There could be hardly any person around the world that hasnt heard the name Coca Cola ever since it begins as world leading name in cold drinks. Millions of people around the world are consuming Coke as part of their daily meal. Brand image is the significant factor affecting Coke’s sale.
  45. 45. Strategies Of Getting GoalsCoke’s main strategies are as follows • Volume can be increased • Interest level of consumers • To take part in festivals and events • Diversification • By launching new Flavors
  46. 46. Promotion Strategies Getting shelves Eye Catching Position Advertisement : Print media Electronic media TV commercial Billboards and holdings
  47. 47. Sales Promotion Activities Coca-Cola Cricket Coca-Cola Concerts Coca-Cola Food Mela Coca-Cola Basant Festival Coca-Cola GO-RED Coca-Cola Party in a Park Coca-Cola Shopping Festival Coca-Cola Pet Promotion Coca-Cola Ramzan Campaign Coca-Cola Wonder of the World Promotion Coca Cola TV Mazza Coca-Cola & Mc Donalds Fanta & Sprite Launched Coke Studio
  48. 48. Financial Analysis
  49. 49. Growth Rate in Market Share Geographically Unit case Volume 2010 Vs 2011 Growth rate 2008 Vs 2009 5 year Annual Net Op. Op. Income Growth Growth RevenuesAfrica 10% 6% 16% 6%Eurasia 16% 13% 24% 38%European 3% 2% 14% 16%UnionLatin America 9% 6% 24% 22%North America (1%) 1% 11% 1%Pacific 7% 4% 7% 3%Bottling 64% N/A 53% 75%InvestmentsWorldwide 6% 4% 20% 15%
  50. 50. Sales Forecast Sales and 2007 2008 2009 2010 2011 Income Data in Millions $21,742 $23,104 $24,088 $28,857 $31,944 Net SalesNet $4,847 $4,872 $5,080 $5,981 $5,807Income(Profits)Units sold 19.8 20.6 21.4 22.7 23.7in Billions
  51. 51. Financial Report The financial report of Coca Cola Company of the year 2008 and 2009 along with the percentage change is as follows. (In millions except per share data, ratios and growth rates)
  52. 52. 2008 2009 %Net op. revenues 31,944 28857 1%Operating income 8,446 7,252 45%Net income 5,874 6,027 82%Net income per share 1.601 0.882 82%Net cash provided by op. 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 common equity 38.5% 23.1% - Unit case sales (in billions)International operations 12.5 11.9 5%North America operations 5.3 5.2 2%Worldwide 17.8 17.1 4%
  53. 53. LOGO