24172639 Project on Coca Cola in Pakistan

8/6/2019 24172639 Project on Coca Cola in Pakistan

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FSTRATEGIC MARKETING

Presented to:

Sir. Aslam Masood

Presented by:

Uzma Farrukh M-13395

SanaGhayyur M-13366

Strategic Marketing Page 1


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MARKETING STRATEGIES

OF COCA COLA



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With the name of Allah the most beneficial and the most merciful

ACKNOWLEDGEMENT



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First and foremost, we are grateful to ALLAH ALMIGHTY, most beneficent and the mostmerciful Who made us able to complete our given project successfully.

We would also like to pay tribute to the benefactor of humanity HOLY PROPHET(P.B.U.H.), Who gave us complete knowledge on every aspect and field of life.

In short of words, to express our modest gratitude and recognition to cuddly and loveablePARENTS , who at each and every moment prays for our success. We are also deeply thankful toour TEACHERS to have taught us from childhood to still especially SIR. ASLAM MASOOD ,who taught us Strategic Marketing .

Thank you all, without you this would have not been possible.



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DEDICATION

We dedicate this report to our parents and friends in recognition of their worth and to our

teachers who are the guiding force for us and it is their effort and hard work that showed us the

path of success and prosperity which would be there for us for the rest of our life.

Our thanks to all those who have generously contributed their theoretical knowledge to this

report including our teachers. Without their understanding and support, completion of this work would not have been possible.

We hope people find this report useful and the subject matter adds to their knowledge.

Keep your dreams alive. Understand to achieve anything requires faith and belief in

yourself, vision, hard work, determination, and dedication. Remember all things are possible for

those who believe . Merlin Olsen



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TABLE OF CONTENTS

Page #

Project Objective 09

Executive Summary 10

Market Demographics 11

Industry Analysis 11

Situational Analysis 12-14

Introduction of Coca Cola 15-16

Vision Statement 17

Mission Statement 18

Shared Values 18

Objectives of Coca Cola 19

Goals of Coca Cola 19

History of Coca Cola 20-21

History of Bottling 22-23

Advertising History of Coca Cola 24-25

Coke History in Pakistan 26-27

Organizational Hierarchy of Coca Cola 28

Departments of Coca Cola 29-31

Market Share of Coca Cola 32



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Global Unit Sales of Coca Cola 33

Region wise Consumption of Coca Cola 34

Market Position of Coca Cola Globally 35

Market Position of Coca Cola in Pakistan 35

Brands of Coca Cola 36-38

Portfolio Analysis (BCG Matrix) 39-40

Competitors 41-49

Competitors Analysis 50-51

Competitive Advantages 52

Customer Analysis 53

SWOT Analysis 54

Industrial SWOT Analysis 54-55

SWOT Analysis of Coca Cola 56-58

Product Life Cycle 59-60

Growth Strategy 61-62

Market Segmentation 63

Segmentation Strategy of Coca Cola 64-67

Marketing Mix 68

Product Strategy 68-70

Pricing Strategy 71-74

Positioning Strategy 75-76



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PROJECT OBJECTIVE

The objective of this project is to give overview of Marketing Strategy of Coca Cola to provide a broad selection of the nonalcoholic ready to drink beverages to potential consumers inPakistan. Analysis carried out on nonalcoholic ready to drink beverages market in terms of sizeand growth, covering different segments present in the market.

It includes introduction of the company and the product, internal and externalenvironment, market and competitor analysis, and marketing mix.



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EXECUTIVE SUMMARY

The scope of the project is to discuss the marketing strategies adopted and applied byCoca Cola, Pakistan. From the last month or so our group is in the process of a continuousresearch on marketing functions and strategies adopted by Coca Cola. These marketingfunctions mainly include the marketing mix i-e, Product Strategy, Pricing Strategy, Pricing Toolsand Strategies and Placement and Distribution Strategies as well as other market strategies.

Moreover the project also discusses the analysis of competition, market growth and trend,opportunity analysis and strategies for creating competitive advantage adopted by Coca Cola.

We will like to add that the project will provide the readers and listeners very high profileinformation about the marketing strategies as a whole and also about the Coca Cola Company. Inthe end we hope that the project will result very profitable for the readers and Coca Cola. Your feedback in the end either critical or substantial will be very highly appreciated.



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TOTAL TARGET MARKET : 42,446,579

SITUATIONAL ANALYSIS

Beverages are a major consumer able item and there is a huge demand and potential inthis market particularly the nonalcoholic ready to drink soft drink. The nonalcoholic ready todrink beverage has grown year on year and as a result, the pie is growing bigger every year.

MARKET ANALYSIS

The market analysis investigates both the internal and external business environment. It isvital that Coca Cola carefully monitor both the internal and external aspects regarding its

business as both the internal and external environment and their respective influences will bedecisive traits in relation to Cokes success and survival in the soft drink industry.

INTERNAL BUSINESS ENVIRONMENT

The internal business environment and its influence is that which is to someextent within the businesss control. The main attributes in the internal environmentinclude efficiency in the production process, through management skills and effective



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communication channels. To effectively control and monitor the internal businessenvironment, Coke must conduct continual appraisals of the businesss operations andreadily act upon any factors, which cause inefficiencies in any phase of the productionand consumer process.

EXTERNAL BUSINESS ENVIRONMENT

The External business environment and its influences are usually powerful forcesthat can affect a whole industry and, in fact, a whole economy. Changes in the externalenvironment will create opportunities or threats in the market place Coca cola must beaware off. Fluctuations in the economy, changing customer attitudes and values, anddemographic patterns heavily influence the success of Coca Colas products on themarket and the reception they receive from the consumers.



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COMPETITION

All over world there are two soft drink giants, Coke and Pepsi . The competitionbetween two companies has always been neck to neck. Both these companies keep ontry to take lead in terms of pricing, packaging, promoting and placing.

In Pakistan recently a few other beverages are also introduced such as Mecca-Cola,Shandy Cola and Amrat-Cola but currently these soft drinks are not a threat for coke dueto their very low market share and secondly due to brand loyalty of customers for coke.

POLITICAL/LEGAL

These are uncertainties that are extremely variable in the political conditions of Pakistan. Constant political instability does affect the company in terms of building newrelations with new Governments all the time.

SOCIAL AND CULTURAL FACTORS

The company has to be very careful in the implementation of its promotionalcampaigns, since the social cultural environment of Pakistan is very conservative and anysuggestive advertisements usually face a lot of negative reactions on the part of the

consumer.

SOCIAL FACTORS: Social factors include consumers family, small groups andstatus. Family members can affect buying behavior in such a way that if number of children is more in a family than the elders, then the children choice can matter a lot at the time of soft drink purchase. On the contrary, sometimes people go for the product that shows their status in society.

CULTURAL FACTORS: Every group and society has its own culture. Culturalfactors affect coke purchasing massively. Different communities and groups of

people have reshaped Pakistans culture. In recent years the Bahar/ Basant festivalin Punjab specially become important part of our culture in which sales of coke go

very high. Soft drink is purchased in bulk for the parties and other occasions.

PERSONAL FACTORS



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Buyers decision is also influenced by personal characteristics such as buyers ageand life cycle stage, occupation, personality and self-concept. Age and lifecycle stagemeans that people taste and way of living changes with passage of time. Lets say inearlier stage of life if a persons best choice for soft drink was Coke classic but as he

proceeds with his life, way of thinking and style may change. He may not opt for classiccoke anymore and might be more interested in diet coke.

Occupation matters a lot when consumer is indulge in buying. If consumer is astudent by occupation he will certainly go for returnable bottle of or may be disposable

bottle of 25 RS but most probably not for the coke CAN which is high in price. Where asif the consumer is a business executive who is financially strong will prefer more thecoke classic can or diet coke can. This change is mainly because of occupation.

PSYCHOLOGICAL FACTORS

A persons buying behavior is further influenced by major psychological factorssuch as motivation, perception, learning and self benefits.

Motivation is basically a drive thats sufficiently pressing a person to seek satisfaction of the need. Sometimes a person has no intention to buy a particular product

but what happens is that the group of people around him motivates him motivates. If a person is highly satisfied with the taste of diet coke , he may share his experience withanother person and as a result the latter person might get motivated by his opinion andend up buying diet coke

In some cases, consumers have descriptive thoughts and beliefs about something.It may change with the passage of time because mostly all the self beliefs are secondaryand not the core ones.

OTHER FACTORS

Other factors like the Government rules, regulations and technologicaladvancements have had no significant effect on the product and the company.



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COCA COLA

INTRODUCTION

F o u n d e d i n 1 8 8 6 , t h e c o c a - c o l a c o m p a n y i s t h e w o r l d s l e a d i n gm a n u f a c t u r e r, m a r k e t e r, a n d d i s t r i b u t o r o f n o n a l c o h o l i c b e v e r a g ec o n c e n t r a t e s a n d s y r u p s . T h e c o m p a n y s c o r p o r a t e h e a d q u a r t e r s a r e i nA t l a n t a , w i t h l o c a l o p e r a t i o n s i n o v e r 2 0 0 c o u n t r i e s a r o u n d t h e w o r l d .

A l t h o u g h C o c a - C o l a w a s f i r s t c r e a t e d i n t h e U n i t e d S t a t e s , i tq u i c k l y b e c a m e p o p u l a r w h e r e v e r i t w e n t . O u r f i r s t i n t e r n a t i o n a l b o t t l i n g

p l a n t s o p e n e d i n 1 9 0 6 i n C a n a d a , C u b a a n d P a n a m a , s o o n f o l l o w e d b ym a n y m o r e . To d a y, C o c a - C o l a h a s a p o r t f o l i o o f m o r e t h a n 3 , 0 0 0

b e v e r a g e s . C o c a - C o l a h a s 9 2 , 4 0 0 e m p l o y e e s w o r l d w i d e . M o r e t h a n 7 0 p e r c e n t o f o u r i n c o m e c o m e s f r o m o u t s i d e t h e U . S . , b u t t h e r e a l r e a s o n w ea r e a t r u l y g l o b a l c o m p a n y i s t h a t o u r p r o d u c t s m e e t t h e v a r i e d t a s t e

p r e f e r e n c e s o f c o n s u m e r s e v e r y w h e r e .



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Type Soft Drink (Cola)Manufacturer The Coca- Cola CompanyFounder(s) John S. PembertonCountry of Origin United StatesIntroduced 1886Area served Over 200 countriesColor Caramel E-150dFlavors Cola, Cola Green Tea, Cola Lemon, Cola

Lemon Lime, Cola Lime, Cola Orange andCola Raspberry.

Related Products Pepsi, Irn Bru, RC Cola , Cola Turka , Zam ZamCola , Mecca Cola , Virgin Cola , Parsi Cola ,Qibla Cola , Evoca Cola , Corsica Cola , BreizhCola , Afri Cola

Employees 92,400Servings per Day 1.6 BillionWebsite www.coca-cola.com

http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Irn_Bruhttp://en.wikipedia.org/wiki/RC_Colahttp://en.wikipedia.org/wiki/Cola_Turkahttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Mecca_Colahttp://en.wikipedia.org/wiki/Virgin_Colahttp://en.wikipedia.org/wiki/Parsi_Colahttp://en.wikipedia.org/wiki/Qibla_Colahttp://en.wikipedia.org/wiki/Evoca_Colahttp://en.wikipedia.org/wiki/Corsica_Colahttp://en.wikipedia.org/wiki/Breizh_Colahttp://en.wikipedia.org/wiki/Breizh_Colahttp://en.wikipedia.org/wiki/Afri_Colahttp://www.coca-cola.com/http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Irn_Bruhttp://en.wikipedia.org/wiki/RC_Colahttp://en.wikipedia.org/wiki/Cola_Turkahttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Mecca_Colahttp://en.wikipedia.org/wiki/Virgin_Colahttp://en.wikipedia.org/wiki/Parsi_Colahttp://en.wikipedia.org/wiki/Qibla_Colahttp://en.wikipedia.org/wiki/Evoca_Colahttp://en.wikipedia.org/wiki/Corsica_Colahttp://en.wikipedia.org/wiki/Breizh_Colahttp://en.wikipedia.org/wiki/Breizh_Colahttp://en.wikipedia.org/wiki/Afri_Colahttp://www.coca-cola.com/


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VISION STATEMENT

Our vision guides every aspect of our business by describing what we need to accomplish inorder to continue achieving sustainable 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 createmutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and supportsustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our overallresponsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.



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MISSION STATEMENTMission statement is a statement of organizations purposes that what it wants to accomplish.

In order to achievemission of increasingmarket share and

maintaining goodrelations with our customers all over theworld, we wish tocreate value for all theconstraints we serve,including our consumers,our bottlers, and our communities. The CocaCola Company

creates value by executing business guided by four key

beliefs:



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Customer is king; Customer demand drives everything we do.Brand Coca Cola is the core of our business.We will serve consumers a broad selection of the nonalcoholic ready-to-

drink beverages they want to drink throughout the day.We will be the best marketers in the world.

Everything we do is inspired by our enduring Mission :

To Refresh the World ...in body, mind, and spirit.To Inspire Moments of Optimism ...through our brands and our actions.To Create Value and Make a Difference ...everywhere we engage.

SHARED VALUES

Our values serve as a compass for our actions and describe how we behave in the world.Leadership: The courage to shape a better futureCollaboration: Leverage collective geniusIntegrity: Be realAccountability: If it is to be, it's up to mePassion: Committed in heart and mindDiversity: As inclusive as our brandsQuality: What we do, we do well

OBJECTIVE

OF

COCA

COLA

The company has sales based objective .Everything else (marketing plan, advertising

plan, production etc.) is derived from this objective.

Currently the companys objective is to



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Increase the volume of sales up to the maximum level as much as possible during thecurrent fiscal year.

The company sets its objective keeping in view the past performance, Historical trends,current market position, economic condition, macro environment and micro environment factors,

social values, market size and growth rate ,future expectations and predictions

G OALS OF COCA COLA

All CCBPL plants setup their own goal to achieve the objective.

The company goal is

To increase sales volume and gain market leadership in Lahore.

HISTORY OF COCA COLA



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Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in

Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his

backyard. He first distributed the product by carrying it in a jug down the street to Jacobs

Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water

was teamed with the new syrup, whether by accident or otherwise, producing a drink that was

proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola

is enjoyed.

Dr. Pembertons partner and book-keeper, Frank M.

Robinson, suggested the name and penned Coca-Cola in the

unique flowing script that is famous worldwide even today. He

suggested that the two Cs would look well in advertising. The first

newspaper ad for Coca-Cola soon appeared in The Atlanta Journal ,

inviting thirsty citizens to try the new and popular soda fountain

drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings, with the

suggestions Drink added to inform passersby that the new beverage was for soda fountain

refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr.

Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a

distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed

$50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage

he created. He gradually sold portions of his business to various partners and, just prior to his

death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from

Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete

ownership and control of the Coca-Cola business. Within four years, his merchandising flair had

helped expand consumption of Coca-Cola to every state and territory after which he liquidated



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his pharmaceutical business and focused his full attention on the soft drink. With his brother,

John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr.

Candler formed a Georgia corporation named the Coca-Cola Company. The trademark Coca-

Cola, used in the marketplace since 1886, was registered in the United States Patent Office on

January 31, 1893.

The business continued to grow, and in 1894, the first syrup manufacturing plant outside

Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles,

California, the following year. In 1895, three years after The

Coca-Cola Companys incorporation, Mr. Asa G. Candler

announced in his annual report to share owners that Coca-Cola is

now drunk in every state and territory in the United States.

As demand for Coca-Cola increased, the Company quickly

outgrew its facilities. A new building erected in 1898 was the first

headquarters building devoted exclusively to the production of

syrup and the management of the business. In the year 1919, the

Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff

became the President of the Company in the year 1923 and his more than sixty years of

leadership took the business to unsurpassed heights of commercial success, making Coca-Cola

one of the most recognized and valued brands around the world.



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HISTORY OF BOTTLING

Coca-Cola originated as a soda fountain beverage in 1886selling for five cents a glass. Early growth was impressive,

but it was only when a strong bottling system developed thatCoca-Cola became the world-famous brand it is today.

1894 A modest start for a bold ideaIn a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell,using a common glass bottle called a Hutchinson.

Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales.

1899 The first bottling agreementTwo young attorneys from Chattanooga, Tennessee believed they could build a business around

bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whiteheadobtained exclusive rights to bottle Coca-Cola across most of the United States (specificallyexcluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton,soon joined their venture.

1900-1909 Rapid growthThe three pioneer bottlers divided the country into territories and sold bottlingrights to local entrepreneurs. Their efforts were boosted by major progress in

bottling technology, which improved efficiency and product quality. By 1909,nearly 400 Coca-Cola bottling plants were operating, most of them family-

owned businesses. Some were open only during hot-weather months when demand was high.

1916 Birth of the contour bottleBottlers worried that the straight-sided bottle for Coca-Cola was easily confusedwith imitators. A design from the Root Glass Company of Terre Haute, Indianawon enthusiastic approval in 1915 and was introduced in 1916. The contour bottle

became one of the few packages ever granted trademark status by the U.S. PatentOffice. Today, it's one of the most recognized icons in the world - even in the dark!

1920s Bottling overtakes fountain salesAs the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S.Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became theforerunners of automated vending machines. By the end of the 1920s, bottle sales of



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Coca-Cola exceeded fountain sales.

1920s and 30s International expansionLed by longtime Company leader Robert W. Woodruff, chief executive

officer and chairman of the Board, the Company began a major push toestablish bottling operations outside the U.S. Plants were opened inFrance, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain,Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44countries.

1940s Post-war growthDuring the war, 64 bottling plants were set up around the world to supply thetroops. This followed an urgent request for bottling equipment and materialsfrom General Eisenhower's base in North Africa. Many of these war-time plantswere later converted to civilian use, permanently enlarging the bottling system

and accelerating the growth of the Company's worldwide business.s1950s Packaging innovationsFor the first time, consumers had choices of Coca-Cola package size andtype -- the traditional 6.5-ounce contour bottle, or larger servings including10-, 12- and 26-ounce versions. Cans were also introduced, becominggenerally available in 1960.

1960s New brands introduced: Following Fanta in the 1950s, Sprite, Minute Maid,Fresca and TaB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello wereadded in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by

POWERADE and DASANI in the 1990s. Today hundreds of other brands are offered tomeet consumer preferences in local markets around the world.

1970s and 80s Consolidation to serve customers: As technology led to a globaleconomy, the retailers who sold Coca-Cola merged and evolved into international mega-chains.Such customers required a new approach. In response, many small and medium-size bottlersconsolidated to better serve giant international customers. The Company encouraged andinvested in a number of bottler consolidations to assure that its largest bottling partners wouldhave capacity to lead the system in working with global retailers.

1990s New and growing markets: Political and economic changes opened vast

markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, theCompany invested heavily to build plants in Eastern Europe. And as the century closed, morethan $1.5 billion was committed to new bottling facilities in Africa.

21st Century : The Coca-Cola bottling system grew up with roots deeply planted in localcommunities. This heritage serves the Company well today as people seek brands that honour local identity and the distinctiveness of local markets. As was true a century ago, strong locally



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based relationships between Coca-Cola bottlers, customers and communities are the foundationon which the entire business grows.

ADVERTISING HISTORY OFCOCA COLA

Coca-Cola's advertising have a significant impact on American culture,and is frequently credited with the "invention" of the modern image of Santa Claus as an old man in red-and-white garments; however, while the

company did in fact start promoting this image in the 1930s in its winter advertising campaigns,it was already common before that. In fact, Coca-Cola was not even the first soft drink companyto utilize the modern image Santa Claus in its advertising White Rock Beverages used Santa in

advertisements for its ginger ale in 1923 after first using him to sellmineral water in 1915.

Before Santa Claus, however, Coca-Cola relied on images of smartly dressed young women to sell its beverages. Coca-Cola'sfirst such advertisement appeared in 1895 and featured a youngBostonian actress named Hilda Clark as its spokesperson.In the 1970s, a song from a Coca-Cola commercial called "I'd

Like to Teach the World to Sing", produced by Billy Davis, became a popular hit single.

Coca-Cola has a policy of avoiding using children younger than the age of 12 inany of its advertising. This decision was made as a result of a lawsuit from the beginningof the 20th century that alleged that Coke's caffeine content was dangerous to children.

However, in recent times, this has not stopped the company from targeting youngconsumers. Coke's advertising is rather pervasive, as one of Woodruff's stated goals was toensure that everyone on Earth drank Coca-Cola as their preferred beverage. This is especiallytrue in southern areas of the United States, such as Atlanta, where Coke was born.

Some of the memorable Coca-Cola television commercials between 1960 through 1986, werewritten and produced by former Atlanta radio veteran Don Naylor (WGST 1936-1950, WAGA1951-1959) during his career as a producer for the McCann Erickson advertising agency. Manyof these early television commercials for Coca-Cola featured movie stars, sports heroes, and

popular singers of the day.

During the 1980s, Pepsi-Cola ran a series of television advertisements showing people participating in taste tests essentially demonstrating that: "Fifty percent of the participants who



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said they preferred Coke actually chose the Pepsi". Statisticians were quick to point out the problematic nature of a 50/50 result; that most likely all this really showed was that in blind tests,most people simply cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads tocombat Pepsi's ads in an incident sometimes referred to as the cola wars; one of Coke's adscompared the so-called Pepsi challenge to two chimpanzees deciding which tennis ball wasfurrier. Thereafter, Coca-Cola regained its leadership in the market.

Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmedthree commercials for the company. In 1994 to commemorate her 5 yearswith the company, Coca-Cola issued special Selena coke bottles.

In an attempt to broaden its portfolio, Coca-Cola purchased ColumbiaPictures in 1982. Columbia provided subtle publicity through Coke

product placements in many of its films while under Coke's ownership.

However, after a few early successes, Columbia began to under-perform,and was dropped by the company in 1989.

Coca-Cola has gone through a number of different advertising slogans in its long history,including "The pause that refreshes", "I'd like to buy the world a Coke", and "Coke is it".

In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign whereconsumers earn virtual "points" by entering codes from special marked packages of Coca-Cola

products into a website. These points can in turn be redeemed for various prizes or sweepstakesentries



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C OKE H ISTORY IN P AKISTAN To provide Coca-Cola at arms length

The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite arethe brands with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in Pakistanoperates through eight bottlers, four of which are majority-owned by Coca-Cola BeveragesPakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala,Faisalabad, Rahim Yar Khan, Multan and Lahore. The Coca-Cola System in Pakistan serves70,000 customers/retail outlets. The Coca-Cola System in Pakistan has nearly 3,000 peopleworking constantly for the company. During the last two years, The Coca-Cola Company inPakistan has invested over $130 million (U.S) and coke has successfully provided 56 years of dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firmhas been continuously changing its slogans and thats a very creative idea to get the attention of the customers.

. Here we would like to include some of the popular slogans of coke since the coke journey started.

1886 Drink Coca-Cola

1908 Get the genuine1923 Enjoy thirst1934 When it's hard to get started, start with a Coca-Cola1942 The only thing like Coca-Cola is Coca-Cola itself 1956 The friendliest drink on earth1963 Things go better with Coke1993 Always. Coca-Cola2001 Life is Good2003 Jo Chaho Ho Jaye Coca Cola Enjoy2004 Flight Of Delight

2005 Galay Delicious Taste2006 Thanda matlab coca cola2007 khaly pily jila coca cola2008 Aja jashan mena ly



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TODAYToday CCBPL is operated directly under the supervision of the Coca-Cola International

based in Atlanta Georgia State___ USA .It owns 8 plants all around in Pakistan. Coca ColaCompany offers the brand range as Coca Cola, Diet Coke, Fanta, Sprite and Kinleywater in Pakistan.

Coca-Cola introduced in Pakistan 1953

Fanta introduced in Pakistan 1965

Sprite was introduced 1972

Diet Coke & Fanta Lemon 2001



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ORGANIZATIONAL HIERARCHYOF COCA COLA



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DEPARTMENTS OF COCA COLAEvery organization is made up of different departments, each of these departments help

Coca Cola achieve their objectives. As Coca Cola is a large multinational company, the amountsof departments are huge. Each country has their own Head Office and departments. Coca Cola isgeographically split into five geographic operating segments, also known as strategic businessunits (SBU's). The six SBU's are North America, Africa, Asia, Europe, Middle East and finallyLatin America. If all departments perform in the correct way then that will continue the successof Coca Cola.

There are 6 functional departments within Coca Cola, these are:

Marketing

Finance

Packaging

Sales

Research and development

Administration



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MARKETING DEPARTMENTThe Coca Cola marketing department develops core strategies for company brands to

ensure that all communication is consistent in every market. With this cohesive effort, the Coca-Cola system maximizes its resources for market leadership and profitable growth. The marketingdepartments are responsible for marketing the products and advertising the products and

promoting the products. If all these departments perform their duty firmly then the objectives of The Coca-Cola Company will meets.

FINANCE DEPARTMENTThe finance department of the Coca Cola Company is responsible for financial record

keeping. This involves keeping records of money received and paid out. The financial recordswill be used to produce the annual reports for the shareholders so that they can see thecompany performance. The Finance department is also responsible for the management accountsof the business like marketing etc. The Coca-Cola Company finance department is alsoresponsible for making budget of the company and for each department like marketingdepartment or research and development department. They will also be involved in the planning

process like taking over or any major decision.

PACKAGING DEPARTMENTThe packaging department of Coca-Cola Company is responsible for the packaging of the

products. They have to make the packaging attractive so that that product meets the eyes of theconsumers. Bringing new products package is their responsibility. It works with the companies

bottling partners to produce an attractive combination.

SALES DEPARTMENTThe sales department of the Coca Cola Company is to coordinate the selling program.

They also have to make the distribution methods, etc. Also, decide how much to sell and how



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much to store in the warehouse and to choose the transporting method which is the most costefficient and the quickest way.

RESEARCH AND DEVELOPMENTDEPARTMENT

This department has their budget given by the finance department and their responsibilityis to investigate new products. They work closely with marketing by looking at marketingresearch findings. They have to bring new products in the market for the change because theconsumer cannot stick with the same old products. If necessary then they also have to improvethe quality of the products. The Coca-Cola Company research department has done a lot of research and recently they have launched many new products like Diet coke with lemon, FantaTropical, Minute maids, Fanta raspberry, Fanta blue berry etc.

ADMINISTRATION DEPARTMENTThis department is essential for keeping the business going. They act as a help support of

the company, it is not the central purpose the business but every business organization wouldneed this department. Most businesses rely on administration to be organized. They deal withenquiries, give messages produce documents and give information to any customer. Thecomplaints that this department will get would be transferred to the research and developmentdepartment to make the product better or fix the problem that the consumer is having. Thesedepartments are the most important department of The Coca-Cola Company because they helpsthe company to meets the objectives of The Coca-Cola Company i.e. surviving, customer satisfaction and make more profits. As I said that the help desk department satisfies the customer

by providing the information they needs and taking the complaints and passing to the research

and development departments who improves the products.



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MARKET SHARE OF COCA COLA

Coca Cola is now one of the largest corporations in the world, with a global workforce of over 90,000 and revenues of $31.9 billion in revenues in 2008. Over the years, the brand equityof the Coca-Cola trademark, as well as that of other Coca Cola-produced brands, has establishedCoca Cola as a prominent figure in the non-alcoholic beverage industry and allowed thecompany to keep both revenues and profits high.

Sales and

Income Datain Millions

2004 2005 2006 2007 2008

Net Sales $21,742 $23,104 $24,088 $28,857 $31,944

Net Income(Profits)

$4,847 $4,872 $5,080 $5,981 $5,807

Units sold inBillions

19.8 20.6 21.4 22.7 23.7

Quarterly Earnings: 1Q2009 In the first quarter of 2009, the Coca-Cola Company postedrevenues of $7.169 billion, a 3% decrease from 1Q 2008 figures; net income fell 10% to$1,348 billion. Although sales volumes actually rose 7% during the quarter, the Coca-Cola Company was negatively impacted by the dollar's strengthening against the euro,Brazilian real, Mexican peso, and South African rand.

2Q2009: In the second quarter of 2009, the Coca-Cola Company posted revenues of $8.267 billion, an 8.6% decrease from 2Q2008 figures; net income grew 43% to $2.037 billion.Although the company managed to grow worldwide case volume by 4% (with especiallyimportant increase of 33% in India and 14% in China), adverse fluctuations in the foreignexchange caused the decrease in revenue. On a currency neutral basis, revenues grew by 4%during 2Q2009, as pricing remained constant during the year. The growth in net income isdeceptively large, as the 2008 figure includes an $843 million, or $0.40 per share, charge due tochanges in the company's accounting policy of its equity investments in its bottlers . Ignoring thischarge, net income would've fallen by 12%.

http://www.wikinvest.com/wiki/Revenue_-_Earnings_from_Equity_Method_Investmentshttp://www.wikinvest.com/wiki/Coca-cola_bottlers?action=edithttp://www.wikinvest.com/stock/Coca-Cola_Company_(KO)?action=edit&section=2http://www.wikinvest.com/wiki/Revenue_-_Earnings_from_Equity_Method_Investmentshttp://www.wikinvest.com/wiki/Coca-cola_bottlers?action=edit


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GLOBAL UNIT SALES OF COCA COLAThe global unit sale of the Coca Cola Company is increasing from last years. The data of

the global unit sale of the Coca Cola Company can be represented by the following chart.

So there is a positive growth in the market of Coca Cola Company. There is a worldwidevolume increase with strong international growth. This is only due to the innovative marketing

programmers, which has deepened the relationship of the customers and Coca Cola. Thefinancial health and success of their bottling partners is a critical component of the Coca ColaCompanys ability to build and deliver leading brands.

In 2008, the company had worked with their bottlers to turn good intentions into reality

by improving the system economics. The results in 2008 reflect this steadily improving andmutually constructive relationship between the Company and their bottling partners. The mainreason behind this relationship is to continue realizing shared opportunities for growth, withcloser coordination of operations including customer relationships, logistics and production.



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REGION WISE CONSUMPTION

OF COCA COLA

Coca Cola is the world renowned soft drink and the company is currently operatingthroughout the world. The world wide total is 23.7 Billions. Review according to the regions isas follows:

So the volume is least in Eurasia & Africa and the most in Latin America. From this datawe can find out that the customers of Coca Cola are increasing which is shown the companys

per capita income.



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MARKET POSITION OF COCA COLAWORLDWIDE

MARKET POSITION OF COCA COLA

IN PAKISTAN

On global level Coca-Cola is the most popular brand and market leader controlling 60%of market share. In Pakistan Coca Cola is the market follower but still in a very strong and stable

position holding 36% of the local market with a growing and increasing market share every year.



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BRANDS OF COCA COLA

Coca-Cola Zero has been one of the most successful product launch hes inCoca Colas history. In 2007, Coca Colas sold nearly 450 million casesglobally. Put into perspective, that's roughly the same size as Coca Colas total

business in the Philippines, one of our top 15 markets. As of September 2008,

Coca-Cola Zero is available in more than 100 countries.

ENERGY DRI NKS

For those with a high-intensity approach to

life, Coca Colas brands of Energy Drinkscontain ingredients such as ginseng extract,guarana extract, caffeine and B vitamins.

JUICES/JUICE DRINKS

We bring innovation to the goodness of juice inCoca Colas more than 20 juice and juicedrink brands, offering both adults and childrennutritious, refreshing and flavorful beverages.



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SOFT DRINKS

Coca Colas dozens of soft drink brands provide flavor and refreshment in a variety of choices. From the original Coca-Cola to mostrecent introductions, soft drinks from TheCoca-Cola Company are both icons andinnovators in the beverage industry.

SPORTS DRINKS

Carbohydrates, fluids, and electrolytes teamtogether in Coca Colas Sports Drinks, providingrapid hydration and terrific taste for fitness-seekers at any level

TEA AND COFFEE

Bottled and canned teas and coffees provideconsumers' favorite drinks in convenient

take-anywhere packaging, satisfying bothtraditional tea drinkers and today's growingcoffee culture.



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WATER

Smooth and essential, our Waters and Water Beverages offer hydration in its purest form.

OTHER DRINKS

So much more than soft drinks. Coca Colas brands also include milk products, soup, andmore so you can choose a Coca Cola Company

product anytime, anywhere for nutrition,refreshment or other needs.



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STAR

Coke Classic is the basic product through which the Coca Cola Company got the fame. Itis one product, which gives the maximum revenue from all over the world. It is one flavor, whichhas the maximum consumers all over the world. Coke has already worked a lot on it bylaunching new flavors in it, but still it is a product they can turn as famous as coke Classic.

CASH COWS

Fanta and Sprite are the products, which the Coca Cola Company can never think of stop producing. It is the one which make the coke company a huge success; it was one product whichgives billions of dollars as revenue from world over. Whenever the company thinks of launchingits product in a country the first product they launch is coke classic as they know that if dontwork here then nothing else can.

QUESTION MARK

Products that are still not a big hit as they havent consumed much time yet. Sprite 3G,Sprite Zero, Diet Coke and Kinley are the examples of these question marks as the questionmarks as they have not taken much time yet to get a hold of market & not even the large

percentage of the people have tasted it. So it needs time to be fully tested by the company & the

company needs to think whether it should continue the production or should divert to somethingnew.

DOGSA product that has not worked good or a product which has been a source of loss. Kinley

is one product that was not a big hit. Even its not a long period which flavored Fanta hasconsumed but still there are signs that it wont be a success. So its better for the company to getrid of it.



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COMPETITORS OF COCA COLA

The competitors to the products of the company mainly lie in the non-alcoholic beverage

industry consisting of juices and soft drinks.

The key competitors in the industry are as follows:

PepsiCo

Nestle

Cadbury Schweppes

PEPSI

Caleb Brandhum, a North Caroline Pharmacist, structure PepsiCola In2 the 1890s as cure of dyspepsia (indigestion). In 1902, Bradhumapplied for a trade mark, issued ninety seven share of stock and beganselling Pepsi syrup in earnest. In his first year of business he spends $1900on advertising a huge sum that he sold only 8000 gallons of syrup. In 1905Bradhum built Pepsis bottling plant. By 1907 he was selling 10,000gallons a year, two years later; he hired a New York advertising agency.After passing through many troubles for some period now Pepsi is amarket leader in international arence and is available in 187 Nations throughout the world.



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COCA COLA V/S PEPSI PRODUCTS

Both the companies Coca Cola and Pepsi have a number of products. Many of these products are innovations but there are also many products which are brought out just as acompetitive product for other companies. Some of these products that are brought in the market

by both the companies to compete against each other are as follows:

COCA COLA PEPSI

The main dark cola drink of the companywhich started the rivalry between theseCompanies .

Pepsi version of dark cola which is the major primary competitor to Coke.

Full Throttle is an energy drink produced bythe Coca Cola Company. It deputed in late2004 in North America .

AMP is and energy drink produced anddistributed by Pepsi CO. under the MountainDew soft drink brand .



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Vault is a carbonated beverage that wasreleased by the Coca Cola Company in June2005.

Mountain Dew MDX is an energy drink manufactured distributed by PepsiCo. Under Mountain Dew brand in 2005.

PowerAde is a sports drink by Coca ColaCompany and currently number two in thesports drink market worldwide.

Gatorade is a non carbonated sports drink marketed by Quaker Oats Company, a divisionof Pepsi Co. originally made for athletes butnow often consumed as a snack beverage.

Sprite is a clear, lemon lime flavored, noncaffeinated soft drink, produced by Coca ColaCompany.It was introduced in the U.S in 1961.

7 up is a brand of a lemon-lime flavored softdrink.



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Minute Maid is a product line of beveragesusually associated with orange juice, but nowextends to soft drinks of many kinds. TheMinute Maid company is now owned by CocaCola and is world largest marketers of fruit

juices and drinks.

Tropicana products are an American company based in Bradenton, Florida, USA, which isone of the worlds largest producers andmarketers of orange juice. It has been owned

by Pepsi Co. Inc. since 1998

Nestea is brand of iced tea manufactured anddistributed by the Nestle companys beveragedepartment in the U.S. and by Coca Cola inseveral European countries, Brazil andVenezuela.

Lipton Original iced tea is a ready to drink icedtea brand sold by Lipton through a worldwide

partnership with Pepsi.

Barqs is a brand of root beer notable for beingthe only major North American root bear to

Mug root beer is a brand name of root beer made by the Pepsi Company.



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contain caffeine. It has been bottled start of 20 th

century and is currently sold by Coca ColaCompany.

Diet Coke or Diet Coca Cola is a sugar-freesoft drink produced and distributed by Coca

Cola Company, was introduced in U.S. in 1982

Diet Pepsi is a low calorie carbonated cola. Itwas introduced in 1964 as a variant of Pepsi

Cola with no sugar.

Kinley is a brand of still or carbonated water owned by The Coca Cola Company.

Aquafina is non carbonated bottled water produced by PepsiCo.

Aquarius is a mineral sports drink manufactured by Coca Cola Company. It wasfirst introduced in 1983.

All Sport was a sports drink. It is produced byPepsi Co.



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Fanta is a soft drink brand owned by The CocaCola Company. It is produced and distributed

by Coca Cola Companys bottlers.

Mirinda is a brand of soft drink. Mirinda isowned by Pepsi Co.

Sprite Ice was the first flavor extension for Coca Cola Companys Sprite brand soft drink.

Pepsi Blue is a soft drink made by Pepsi Co.and launched in mid 2002.

Coca Cola Blak is a coffee flavored soft drink introduced by Coca Cola in 2006.

Pepsi Cappuccino is a cappuccino flavoredcarbonated soft drink produced by Pepsi Co.



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Maaza is a Coca Cola fruit drink brandmarketed in India and Bangladesh.

Slice is a line of fruit flavored soft drink manufactured by PepsiCo and introduced in1984.

Limca is a lemon and lime flavored carbonatedsoft drink made in India by Coca Cola. Teem; a lemon lime flavored soft drink

produced by the Pepsi Cola Company.



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NESTLE

Nestle does not give that tough a competition to Coca-Cola as itmainly deals with milk products, Baby foods and Chocolates. But theiced tea that is Nestea which has been introduced into the market by

Nestle provides a considerable amount of competition to the productsof the Company. Iced tea is one of the closest substitutes to the Colasas it is a thirst quencher and it is healthier when compared to fizzdrinks. The flavoured milk products also have become substitutes tothe products of the company due to growing health awareness among

people.

CADBURY SCHWEPPESCadbury Schweppes are joined force of Cadbury found in 1824 of

U.K. and Schweppes of Ireland founded in 1783. Cadbury Schweppes isunified bussing which manages the relations his with over 240 franchised

bottling operation on Zambia and Zimbabwe. Cadbury Schweppes hasfottlery ands partnership operations in 14 countries around the world.



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OTHER COMPETITORS

Mecca Cola

Amrat Cola

RC Cola

Shandy Cola

Qibla Cola

Future Cola

Unilever

Kraft Foods, Inc.

http://www.drinks-business-review.com/companyprofile.asp?guid=E00C82E3-8DA1-4F1A-B0A1-046B87A8C4BChttp://www.drinks-business-review.com/companyprofile.asp?guid=9D3A31A2-39BA-41C7-90D7-A5CCE6384A97http://www.drinks-business-review.com/companyprofile.asp?guid=9D3A31A2-39BA-41C7-90D7-A5CCE6384A97http://www.drinks-business-review.com/companyprofile.asp?guid=E00C82E3-8DA1-4F1A-B0A1-046B87A8C4BChttp://www.drinks-business-review.com/companyprofile.asp?guid=9D3A31A2-39BA-41C7-90D7-A5CCE6384A97


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C OMPETITOR ANALYSIS

BUYERS/CUSTOMERS

Coca-Cola has three major and large customers in the market, food street 60,000cerates /year, MacDonalds 40,000 cerates/year and Pakistan Railways who buy 50,000cerates /year.

However, these three customers being large and powerful are in an influential and bargaining position they can demand discount or others facilities like (boards sign/freezers/coolers etc.) and

impose a threat to switch to their closest rival and competitor Pepsi.

SUBSTITUTES Nestle products like juices, coffee, mineral water etc. and Shezan juices are substitutes of

Coke for health conscious people and other fresh juices.

RIVALS/COMPETITORS

DIRECT COMPETITORSThe direct competitor of Coca-Cola is Pepsi and that of CCBPL is PCI (Pepsi cola

international) there is always ongoing tuff competition between these two arch rivals with Pepsileading with 54% market share and Coke gradually growing and catching up 36% market sharein Pakistan. However on global level the situation is reverse.

Both companies often engage in price cut wars, prize scheme wars and sponsorship warsto win over each other customers.



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INDIRECT COMPETITORSThese include Nestle and Shezan juices who do not pose a threat to Coke as yet but has

the potential to do so as it is exploiting the natural aspect and health issues more and more tomake people conscious about physical fitness Coke has launched Diet Coke to counter the

physical fitness demands.

BUFFERING AND SMOOTHINGFor beverages like Coke the buffering and smoothing policies doesnt matter and they

dont apply anymore because Coke remains in demand all the year round in festivals, parties,events, meetings sports etc.

SUPPLIERSCoca-Cola has authorized suppliers and which do not pose a threat to it. Any how Coke

does have a quality check procedures in its plants to ensure that they get the right kind of ingredients from suppliers.

FOR EXAMPLE

If market has low quality carets of bottles by chance, they call their sales mangers to liftup all the stock from the market then inquired from the quality inspector. They take strict noticeof that .and don not take materials from that company again if that default is due to the ingredientcontains by it.

NEW ENTRANTSCoca-Cola is not afraid of competing .it doesnt fear losing its share to Mecca-Cola or

other new entrants. The company management believes that new entrants provoke healthycompetition, which will provide Coke with a challenge to hold on to its loyal customers. Besidesit will take a lot of effort on the part of new entrants like Mecca- Cola, Pak-cola to fully launchits product in Pakistan and capture or even motivate people to switch on to their new productfrom Coke.



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C OMPETITIVE ADVANTAGES

BRAND NAME, SYMBOL, BOTTLE SHAPE.

Brand name, symbol and bottle shape are distinctive features of Coca-Cola which give itan edge over its competitors. (Even without name people can easily identify Coke s, fantas, andsprites bottle from crowd.) They cannot be copied or imitated by others.

DIET COKE

Coca-Cola has successfully addressed to the needs of its health conscious overweightcustomers with the launch of diet Coke . Its competitor has yet to come up with and counter dietCoke properly.

SNATCHING AWAY CUSTOMERS

In the market Coke has been able to snatch large customers like Food Street, PakistanRailways, McDonalds, as well as Sponsorship events (basant, Eid, concerts etc.) from Pepsimainly due to its superiority in the following areas.

Cost: It is very economical, justifies performance,

Quality: No quality compromise, get the best all over Pakistan at any cost.

Innovation: new ideas for billboards design, sponsorship, changing their slogans time totime, according to the needs of the market.

Speed: On time delivery in all over the Pakistan.



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CUSTOMER ANALYSISThe Coca Cola Company exists to satisfy the consumers needs. The Coca Cola Company

has over 400 brands of drinks designed to satisfy a very wide range of consumers. They are able

to provide drinks for many different target markets including, people of all ages, sexes, races, etc.Coca-Cola products are able to sell to a diverse worldwide population and its success isunmatched.

In todays society, people are looking to lead better, healthier lives, Coca Cola seeing thistrend has begun to produce, diet drinks that have the same great taste as their regular drinks whilestill being low fat or low calorie drinks, such as diet coke, or coke zero.

Coca Cola products are purchased by all the different classes, but mainly by the middleand high-class citizens, because they have more money to spend on luxury items. Coca Cola is avery successful company; due to their success they are able to spend more money making their factories work more efficiently. They can do this by updating the equipment used to producetheir drinks.

Although people today are becoming more conscious about their environment, and thedamage that has been done in prior years. Many people make their purchase decisions partially based on a companys ethics, or social responsibility. By contributing to stop pollution bothwithin and outside their factories, they will gain the trust and respect of the potential buyers, whocare about saving our environment. In gaining their trust and respect more people will be willingto purchase their products, because the company stands for the same goals that their consumersare trying to protect. The Coca Cola Company tries to be more environmentally aware.



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SWOT ANALYSISSWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats inside a company, project, or a business venture. It involvesidentifying the internal and external factors that are favorable/ unfavorable for business tosucceed.

INDUSTRIAL SWOT ANALYSIS

STRENGTHS

The soft drinks market in Pakistan enjoyed dynamic growth over the review period in both volume and current value terms. Carbonates dominate the market in both the on-trade andoff-trade with the lions share of sales. Carbonates have become part of the culture in Pakistanand multinational companies have maintained their standards over the years to provideconsumers with high quality carbonated drinks. Off-trade sales of carbonates are higher thanthose of the on-trade but both achieved strong growth over the review period.

WEAKNESSES

Liquid concentrates and power concentrates are both seasonal categories in the marketand their sales peak in the summer in Pakistan. Both Rooh Afza and Jam-e-Shirin are traditionalsandalwood drinks in Pakistan which are highly regarded by consumers. These drinks can befound in every home in Pakistan, especially in rural areas throughout the summer and are themainstay of liquid concentrates.

OPPORTUNITIES

The Government of Pakistan has reduced excise taxes to encourage soft drinksmanufacturers and importers. The Government also reduced other applicable taxes to promisemore profit not only for soft drink manufacturers already in the market but also to attract

potential soft drinks manufacturers to invest in Pakistan. Tax reductions proved extremely beneficial to the soft drinks market in Pakistan and certainly encouraged and attractedmultinational companies to invest in the countrys soft drinks industry. The government also



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decided to tax the beverage industry on capacity of production rather than on actual productionand that brave move encouraged soft drinks manufacturers to maximize production and reduce

prices.

THREATS

Increasing health and hygiene awareness among Pakistanis has greatly increased sales of fruit/vegetable juice products. Both the government and the media have started health awarenesscampaigns to make Pakistanis realize that consumption of fruit/vegetable juice is as essential aseating food. Fruit/vegetable juices are doing very well in both urban and rural areas. On the other hand, health and hygiene awareness has also led to increased sales of bottled water in Pakistan.Previously bottled water was targeted on at major cities where consumers are more health-conscious and aware of the difference between bottled water and tap water. Nowadays, health

conscious rural inhabitants also drink bottled water due to health concerns.



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SWOT ANALYSIS OF COCA COLA

Strengths Weaknesses

Internal -Popularity-well known-branding obvious and easilyrecognized-A lot of finance-customer loyalty-International Trade

-Word of mouth-lack of popularity of many Coca Colas

brands-Most unknown and rarely seen-result of low profile or non-existentadvertising-health issues

Threats Opportunities

External -changing health-consciousnessattitude-legal issues-Health ministers-competition (Pepsi)

-many successful brands to pursue-advertise its less popular products-buy out competition.-More Brand recognition

STRENGTHSCoca Cola is an extremely recognizable company. Popularity is one of its superior strengths that are virtually incomparable. Coca Cola is known very well worldwide. It's brandingis obvious and easily recognized. Things like, logos and promos shown on t-shirts, hats, andcollectible memorabilia. Without a doubt, no beverage company compares to Coca Cola's social

popularity status. Some people buy coke, not only because of its taste, but because it is widelyaccepted and they feel like they are part of something so big and unifying. At the other end of thespectrum, certain individuals choose not to drink coke, based solely on rebelling from the world's



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idea that coke is something of such great power. Overwhelming is the best word to describe CocaCola's popularity. It is scary to think that its popularity has been constantly growing over theyears and the possibility that there is still room to grow. If you speak the words Coca Cola, itwould definitely be recognized all around the world. Money is another thing that is strength of thecompany. Coca Cola deals with massive amounts of money all year. Like all businesses, they

have had their ups and downs financially, but they have done well in this compartment and willcontinue to do well and improve. The money they are earning is substantially better than most beverage companies, and with that money, they put back into their own company so that they canimprove. Another strength that is very important to Coca Cola is customer loyalty. The 80/20 rulecomes into effect in this situation. Eighty percent of their profit comes from 20% of their loyalcustomers. Many people/families are extremely loyal to Coca Cola. It would not be rare toconstantly find bottles and cases of a product such as coke in a house. It seems that some peoplewould drink coke religiously like some people would drink water and milk. This is an improbablefeat. Customers will continually purchase these products, and will probably do so for a very longtime. If two parents were avid Coca Cola drinkers, this will be passed down do their children asthey grow loyal to the company. With Coca Colas ability to sell their product all over the world,

customers will continue to buy what they know and what they likeCoca Cola products.

WEAKNESSES

Coca Cola is a very successful company, with limited weaknesses. However they dohave a variety of weaknesses that need to be addressed if they want to rise to the next level. Wordof mouth is probably a strength and weakness of every company. While many people have goodthings to say, there are many individuals who are against Coca Cola as a company, and the

products in which they produce. Word of mouth unfortunately is something that is very hard tocontrol. While people will have their opinions, you have to try to sway their negative views. If

bad comments and views are put out to people who have yet to try Coca Cola products, then thatcould produce a lost customer which shows why word of mouth is a weakness. Another aspectthat could be viewed as a weakness is the lack of popularity of many of Coca Colas drinks.Many drinks that they produce are extremely popular such as Coke and Sprite but this companyhas approximately 400 different drink types. Most are unknown and rarely seen for available

purchase. These drinks do not probably taste bad, but are rather a result of low profile or nonexistent advertising. This is a weakness that needs to be looked at when analyzing their company. Another weakness that has been greatly publicized is the health issues that surroundsome of their products. It is known that a popular product like coke is not very beneficial to your

body and your health. With todays constant shift to health products, some products could possibly loose customers. This new focus on weight and health could be a problem for the product that is labelled detrimental to your health.

OPPORTUNITIES Coca Cola has a few opportunities in its business. It has many successful brands that itshould continue to exploit and pursue. Coca Cola also has the opportunity to advertise its less

popular products. With a large income it has the available money to put some of these other beverages on the market. This could be very beneficial to the company if they could start sellingthese other products to the same extent that they do with their main products. Another



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opportunity that we have seen being put to use before is the ability for Coca Cola to buy out their competition. This opportunity rarely presents itself in the world of business. However, with CocaColas power and success, such a task is not impossible. Coca Cola has bought out a countlessnumber of drink brands. An easy way to turn their profit into your profit is too buy out their company. Even though this may cost a vast amount of money initially, in the long run, if all goes

to plan, it results in a large profit. Also, the company will no longer need to worry about this product being part of the competition. Brand recognition is the significant factor affecting Cokescompetitive position. Coca Cola is known well throughout 90% of the world population today.

Now Coca Cola wants to get there brand name known even better and possibly get closer andcloser to 100%. It is an opportunity that most companies will ever dream of, and would be asupreme accomplishment. Coca Cola has an opportunity to continue to widen the gap betweenthem and their competitors.

THREATS

Despite the fact that Coca Cola dominates its market, it still has to deal with manythreats. Even though Coca Cola and Pepsi control nearly 40% of the entire beverage market, thechanging health-consciousness attitude of the market could have a serious effect on Coca Cola.This definitely needs to be viewed as a dominant threat. In todays world, people are constantlytrying to change their eating and drinking habits. This could directly affect the sale of CocaColas products. Another possible issue is the legal side of things. There are always issues with acompany of such supreme wealth and popularity. Somebody is always trying to find fault withthe best and take them down. Coca Cola has to be careful with lawsuits. Health minister couldalso be looked at as a threat. Again, some people may try to exploit the unhealthy side of CocaColas products and could threaten the status and success of sales. Other threats are of course thecompetition. Coca Colas main competition being Pepsi, sells a very similar drink. Coca Colaneeds to be careful that Pepsi does not grow to be a more successful drink. Other product such as

juices, coffee, and milk are threats. These other beverage options could take precedent in some peoples minds over Coca Colas beverages and this could threaten the potential success it presents again.



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PRODUCT LIFE CYCLE OF COCA COLA

The Product Life Cycle (PLC) is used to map the lifespan of a product. There aregenerally four stages in the life of the product. These four stages are the Introduction stage, theGrowth stage, the Maturity stage and the Decline stage. The following graph illustrates the four stages of the PLC:

There is no set time period for the PLC and the length of each stage may vary. One products entire life cycle could be over in a few months. Another product could last for years.Also, the Introduction stage may last much longer than the Growth stage and vice versa.

INTRODUCTION STAGE OF COCA COLA.

In the Introduction stage, Coca Cola was launched and initially promoted. Efforts weremade for creating its awareness in the market, inducing trial of the product and securing space in



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GROWTH STRATEGYGrowth is the main objective of every organization. They look forward for expanding &

growing in different markets & making a variety in their product line. A company can identifytheir growth through the product-market expansion grid. The approach is known as ANSOFF.

Coca Cola Company can also identify its expansion through the ANSOFF approach.

MARKET PENETRATION

Market Penetration is the strategy, which every company has to opt when it reaches amaximum height of growth. Coca Cola in Pakistan is doing market penetration through theselling its products to the business buyer, who are huge multinational organizations likeMcDonalds, Subway, Dunkin Donuts and many more. They are also keeping the local market infocus. Fri Chiks, AFC, PFC are examples of the buyers in the local market. They are selling theCoca Cola as the only beverage in their restaurants.

MARKET DEVELOPMENT

Market Development is exploring new markets for the products you are already selling.Many flavors of Coca Cola are not being sold in Pakistan. Coca Cola can develop a new marketif they introduce those flavors in Pakistan. Many people in Pakistan want a change in the

beverage industry, as they are having the same flavors from many years.



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A company takes a risk when it does Product Development, there is a chance that itlooses its customers or there will be a crowd of people demanding their product. Coca ColaCompany can do product development by introducing the new flavors in Pakistan which are not

sold anywhere in the world by the coke company. The company has to put large effort in that, asit has to conduct all market research & feasibilities for it. But there is also an opportunity for them as they know the market of Pakistan, that what the people here can afford & what taste theywant.

DIVERSIFICATION STRATEGY

Diversification strategy is one which every company really wants to practice. There are

lots of chances of growth but the risk factor is also there. The company can manufacture products, which are not manufactured by it before. Coca Cola is only dealing in beverages but itcan also manufacture its own snacks item as the company name is known almost all over theworld. So it can cash the name by producing the items, which are eaten with the beverages.



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MARKET SEGMENTATION

Dividing a market into distinct groups with distinct needs, characteristics, or behavior whomight require separate products or marketing mixes.

In evaluating different market segments, a firm must look at three factors:

Segment sizeSegment growthSegment structural attractiveness and company objectives and resources.

There is no single way to segment a market. The market has to try different segmentationvariables, alone and in combination, to find the best way to view the market structure.

TARGET MARKETING:

This is the process of evaluating each market segments attractiveness and selecting oneor more segments to enter.

After evaluating different segments, the company must now decide which and how manysegments it will target, because buyers have unique needs and wants, a seller could potentiallyview each buyer as a separate target market. Ideally, then, a seller might design a separatemarketing program for each buyer. There are three types of market segments.

Undifferentiated marketing. (Mass Marketing)

Differentiated marketing. (Segmented Marketing)Concentrated marketing. (Segmented Marketing, small segment)



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SEGMENTATION STRATEGY COCA COLA

Coca cola serves its products using mass marketing technique, which obviously falls inundifferentiated marketing, and undifferentiated marketing means no segmentation, but there areminor factors on which we can say that the coke segments its products and then targets thecustomers somehow. These factors are as follows.

GEOGRAPHIC SEGMENTATION

INTERNATIONALLY

Coke segments its products country wise and region wise, here the most important thingis the taste and the quality, it varies according to the taste and the income level of the people inthat country, and i.e. Third world counties are given low quality taste.

Coca Cola Company tries to satisfy the needs of a whole line of different people. Theyhave drinks that target different, age groups, ethnic groups, sexes, lifestyles, etc.

There are some of the different brands:

OasisThis is a juice made for the younger working adults, 20-30. It is available in berry, lemon andorange tangerine. This drink is most popular in Britain and Ireland.

Minute MaidMinute Maid targets kids and adults, ages 1-10 and 40+. This drink is conveniently packaged totake with you on the go anywhere. The health check is part of the reason for the wide targetmarket, parents want their kids to be healthy and so knowing that this product is accepted bysuch a well known respected company pleases the parents and gives them a sense of relief.

Coca ColaThe Coca Cola drink is by far there most successful drink. It is very popular among manydifferent nations. It is a soft drink. Because of the huge demand for the coca cola drink, and the

trend towards healthier lifestyles coca and begun to produce spin-offs of the coca cola product.They have made drinks such as coca cola zero, coca cola diet, coca cola C2, coca cola with limeetc. By having all these different drinks with the same basic taste they are able to target a much

bigger market. Due to the large success of the drinks coca cola is in demand worldwide. Assuch the Coca Cola brand is sold in most countries in the world.

Coca Coal ZeroThis drink is specifically targeted at teens that dont want the calories that come with coke butwant to same great taste. This Product is sweetened with aspartame.



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Coca Cola DietThe diet drinks are targeted at adults of ages 30-50, who are health conscious but still love thegreat taste of coke. This drink is sugar less.

Coca Cola with limeThe drink is sold in both regular and diet. It is for a wide range a coke lovers who are looking

for an extra little punch.SpriteThis is a soft drink that has many different target markets. This product has a different taste thencoke all together and is not as popular but it is still a very popular drink. Like coke it also has awhole other line of drinks associated with it, such as diet sprite, sprite zero, sprite with a hint of lime. This drink is also sold in many places worldwide.

PoweradePowerade is a sports drink. It is designed with a great taste and is also thirst quenching. It ismade for athletes of all ages, sexes and sports, but they would target this drink at teens andyoung adults, ages 13- 27. This drink is sold in many places but mostly over North America.

Aquarius

Aquarius is a sports drink, enjoyed by people who have healthy lifestyles. It is made for athletesof all ages, sexes and sports, but they would target this drink at teens and young adults, ages 13-27. This produce is very well known in Europe. Particularly in France, Norway, Spain. But it isstill known all over. It became even more successful when it became the official drink of theOlympic games in Barcelona in 1992.

Full ThrottleThis is an energy drink. It is designed for athletes both male and female but particularly males,of ages 14-25.

As we can see by looking at a select few of coca colas drinks they have a wide variety of drinks to satisfy everyones needs.

CLIMATIC

Weather is the third major factor in effecting the Cokes selling. In coke marketing, mainidea is to serve it cold, so we can say that, they focus more on hot areas of the world, i.e. middleeast etc and there sale increase in summer. This is underdeveloped market so the cokesconsumption in summers is 60% and in winters is 40%.. It is a source of refreshment when a

person is thirsty due to the hot weather.

LOCALLY

In Pakistan the coke segments more in urban and suburban areas as compare to rural. 35% population resides in urban areas and 65% population lives in rural areas in Pakistan. CocaCola is focusing on urban areas as people there are more inclined towards such beverage while

people in rural areas are more inclined drinking lassi and desi drinks.



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DEMOGRAPHIC SEGMENTATION

AGEInternationally coke has segments the small children introducing tastes like vanilla, lime

and cherry, they focus children from 4-12. Coke specifically target more young people thanolder.

Pakistan is considered to be a young country i.e. average age of Pakistani population isless than 38 years. Thus targeting young generation can be a beneficial marketing strategy for soft drink companies. In fact this is the case, all the major brands like Coca Cola, Pepsi mainlytarget younger generation in Pakistan.

GENDER

Coca Cola targets both genders with its wide variety of drinks. This market is relativelylarge and is open to both genders, thereby allowing greater product diversification.

FAMILY TYPE

Coca Cola introduces its economy pack, and thats how they focus family and groups.

INCOME

Coca Cola segments different income levels by packaging. Like for small income peopleit has small returnable glass bottle, for middle people it has non returnable bottle and for higher income people it has coke tin.

PSYCHOGRAPHICS SEGMENTATIONAll psychographics variables the social class, lifestyle, occupation, level of education and

personality, Coca Cola segments everyone, but again it is their packaging which is different for different consumers.



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SOCIAL CLASS

Coca Cola is a well known brand. People who are brand conscious will not drink beverages of less known brands and quality such as Amrat cola. They will try to show their status by drinking Coca Cola which is known to all as a quality drink.

LEVEL OF EDUCATION

A company has to make promotional strategies keeping in view the customer level. If the percentage of education is high in a country then through advertisements people can be madewell aware of their product and can convey their message easily. Promotion and education has adirect relationship.

BEHAVIORAL SEGMENTATION

It is how people perceive a specific product, in short psychological analysis of a product.Coca Cola all over the world is recognized as a quality drink and therefore people drink itwithout any hesitation whenever they are thirsty or otherwise. So marketers of Coca Cola havemade it a drink for all people and for diabetic people they introduced diet Coke.

OCCASIONS

A very special occasion for the people of Pakistan Ramzan, people emphasis on enjoyingCoca-Cola at Iftar and then on Eid with friends & family with super price off promotion.

BENEFITS SOUGHT

Sometimes, for the promotion strategy of coke, Coca Cola Company introduce prizes inthe top cover. So they segment people by benefit sought, i.e. by giving them prizes.



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MARKETING MIX OF COCA COLA

Marketing decisions generally fall into the following controllable categories:

ProductPrice

positionPlace (distribution)Promotion

P RODUCT STRATEGY OF COCA COLA Product: Anything that can be offered to a market for attention, acquisition, use or

consumption that might satisfy a want or need.

LEVELS OF COKE AS A PRODUCT

CORE PRODUCT

Core benefit is that it fulfills the thirst.

ACTUAL PRODUCT

Design: Pet bottles, returnable glass bottles, economy packs.

Quality: Quality differs with respect to country for example. Coca-Cola Can quality thatis available in Middle East is certainly different as compared to Coke Can available in Pakistan.

PRODUCT CLASSIFICATIONS

Coke is categorized as a convenience product, because the purchasing rate is very highand this is the product that is bought very frequently.



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INDIVIDUAL PRODUCT DECISIONS

BRANDING

BRAND EQUITYAs far as coke is concerned brand equity for the customers is very high. People are highly

brand loyal.

BRAND STRATEGY

The following is the brand strategy of Coke

LINE EXTENSION

Line extension occurs when a company introduces additional items in a given productcategory under the same brand name. For example if Coke introduces new flavors and packagesize, it will be considered as line extension.


Brand

Product

Existing New

Existin g

Line extension Brand extension

New Multi-

Branding New brands


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BRAND EXTENSION

Brand extension means using a successful brand name lets say Coca-Cola and then launching

new product for example cherry coke. This was an example of brand extension.

MULTI-BRANDING

It means introducing additional brands in the same category. For example Coca-Cola notonly introduced coke as a brand but also sprite and Fanta.

DIVERSIFICATIONIt means introducing new product with the new brand name. It means diversification but this

is something Coca-Cola has not adopted for as yet.

PRODUCT LINE DECISIONS

PRODUCT LINE LENGTHIt means the number of products that company is offering. For example Coke, Diet Coke,

Fanta, Sprite etc.

PRODUCT LINE FILLING

Product line filling means that earlier when Coca-Cola started it had only one flavor of coke available and that is classic coke but with the passage of time company filled the productline by adding diet coke, diet lemon etc.



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PRICING STRATEGY OF COCA COLA

The amount of money charged for a product or service, or sum of the values thatconsumers exchange for the benefits of having or using the product or services. As price gives us

the profit so this P is very important for business price of product should be that which givesmaximum benefit to the company and which gives maximum satisfaction to the customer.

Following factors Coca Cola kept in mind while determining the pricing strategy.

Price should be set according to the product demand of public.Price should be that which gives the company maximum revenue.Price should not be too low or too high than the price competitor is charging fromtheir customers otherwise nobody will buy your product.Price must be kee

Documents

24172639 Project on Coca Cola in Pakistan