Coca- Cola Dissertation

Embed Size (px)

Citation preview

  • 8/6/2019 Coca- Cola Dissertation

    1/47

    TERM PROJECTMARKETING STRATEGY

    1

  • 8/6/2019 Coca- Cola Dissertation

    2/47

    Marketing Strategies Of

    Coca Cola

    MR. KASHIF AHMAD

    2

  • 8/6/2019 Coca- Cola Dissertation

    3/47

    TABLE OF CONTENTS

    CONTENTS

    1. Acknowledgement.2. Mission statement3. Introduction.4. Coca Cola.

    a. Coca Cola International.b. History.

    5. Management.6. Market share.7. Financial report.8. Dividends and Cash Plan.9. Products.

    10.Strategic planning.11.Bottlers owned by Coca cola12.Coca Cola Pakistan.13.Major Competitors

    a. Pepsib. History.c. Financial assets.

    Market share. Financial report. Products. Methodology

    14.Some basic information regarding marketing of cokea. Target market:b. Major segments:c. Factors effecting sales:d. Major competitors:e. Strategies of quality:f. Threats from competitors:g. Targets that would like to attain:h. Expanding target marketi. Threats and opportunities for price:

    j. Strategies of getting goals i.e. high profits:

    k. Marketing strategy:l. Expectations for the coming year:m. How coke determine the yearly budget:

    15.Marketing strategies16.Pest analysis

    .

    3

  • 8/6/2019 Coca- Cola Dissertation

    4/47

    ACKNOWLEDGEMENT

    We think if any of us honestly reflects on who we are, how we got here, what we think we

    might do well, and so forth, we discover a debt to others that spans written history. The

    work of some unknown person makes our lives easier everyday. We believe it's appropriate

    to acknowledge all of these unknown persons; but it is also necessary to acknowledge

    those people we know have directly shaped our lives and our work.

    4

  • 8/6/2019 Coca- Cola Dissertation

    5/47

    Coca Colas Mission StatementOur mission statement is to maximize shareowner value over time.

    1. In order for coca cola to achieve this mission, we must create value for all theconstraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by carrying through a wellthought out comprehensive business Brand Coca Cola is the core of our business.2. We will serve and provide a non-alcoholic drink suitable for everyone to drinkthroughout the day.3. We will be the best marketers in the world, with excellent promotion and appealto all types of people.4. We will think and act locally in order to get into a better frame of mind.5. We will lead as a model corporate citizen, in order to set an example for other

    companies.

    The main and most important objective of Coca Cola is to increase volume, increaseour products worldwide of non- alcoholic drinks, increase sales, increase our cash-flow in the long term and create a good impact on the economy by using better resources for the environment and creating minimal waste as possible.

    Worldwide, there are over 16 million customers who sell or serve Coca-Cola directly toconsumers via their stores or their selling methods. We see these sellers as very importantand it is vital that we help them with their businesses and create more opportunities for them to sell more of our products. Our customers needs are paramount for the company,

    and we make sure that we understand these needs whether they are selling from anelegant retailer in an up- scale supermarket, or on a high street kiosk.

    Whether or not we can meet our customers needs and demands is essentially whether or not we as a company are successful. There are more or less 6 million people in the worldwho could be Coca-Cola customers, and if we were to expand and create more productswhich meet the needs of more and more people, this number could raise up by millions.The only way we can achieve this is if we release the right products at the right time in theright market, as we need to appeal to the majority of customers in order to attract theattention of potential customers.

    5

  • 8/6/2019 Coca- Cola Dissertation

    6/47

    Coca- Cola International

    The History of Coca- ColaThe History of Coca- Cola

    In 1986, the Standards of the Coca- Cola system establish Coca-Cola enterprises. EachIn 1986, the Standards of the Coca- Cola system establish Coca-Cola enterprises. Each and every one if Coca-Colas franchises have a connection and a history of traditions of theand every one if Coca-Colas franchises have a connection and a history of traditions of the

    company which make it so unique and is the foundation of the company.company which make it so unique and is the foundation of the company.

    In 1886, a pharmacist from Atlanta named DR. John Pemberton produced Coca-

    Cola syrup. He made it purchasable in the form of a fountain drink, meaning you

    could not buy it from a bottle, this was later changed in 1899, when two men

    who were Chattanooga businessmen began to bottle the drink and they secured

    the rights to the bott le. They then had the authority to sell the drink for themajority of the USA from the Coca- Cola Company; this independent bottling

    system continued to operate until the early 1980s when the bottling franchises

    came together and became one company. In 1986 the Coca- Cola Company

    merged two large ownership groups and some of its company owned operations

    which ultimately formed Coca- Cola Enterprises Inc.

    On November 21 st 1986, Coca- Cola offered its stock to the public at a price of

    $5.50 a share. Annually, the total unit sales were 880,000 (1986).

    This continued for 5 years, when in December 1991, a merger between Coca-

    Cola enterprises and Johnston founded a stronger Company which was larger

    and would help boost and increase bot tl ing. Due to this merge, began to

    successfully reconstruct the companys image in 1992 and the unit sales has

    increased to 1.4 billion and the total income was $5 billion.

    6

  • 8/6/2019 Coca- Cola Dissertation

    7/47

    Management:Management:

    Here is an image of the hierarchy used in the Coca- Cola Company.

    Market Share:Market Share:As Coca- Cola is probably the largest company in the soft-drink industry, it gets to benefitfrom the large market share and is in control of around 59% of the worlds market which isvery large.

    Global Market Share:This table shows the operating segments worldwide;

    (Table)

    Unit case growth Non-alcoholic

    drink

    All commercialBeverages

    10 year compound annualgrowth

    5-year compoundannual growth 2001 annualgrowth 2002 2002

    Company

    Industry Company

    Industry Company

    Industry Companyshare

    Company share

    Company per capita

    Income6% 5% 5% 5% 4% 4% 18% 9% 70

    ChairmanBoard of governors

    Vice Chairman and chief operating officer

    Executive Vice Presidents

    Senior Vice Presidents

    Vice Presidents

    7

  • 8/6/2019 Coca- Cola Dissertation

    8/47

    This table indicates that the Coca- Colas Companys market is vast geographically and itholds great control successfully.

    The company generated record volumes of soft-drinks in 2002, when they increased their business by 250 million units.

    Due to carbonated soft drinks increasing and being the largest growth segment within itscategory of non-alcoholic ready-to-drink beverage, the company are more focused on thisand are ensuring that they are constantly in the market and are increasing it each andevery day and are always alert for any changes in customer needs or demands and mostimportantly it is vital that they are increasing their pace as it is very important that they doso in order to meet their objectives and be successful.

    The following pie chart demonstrated the operational income earned by the Coca ColaCompany.

    (Figure)

    Coca- Cola is the Worlds leading Soft Drink Company as this is due to this strategy and itssuccessfulness.

    Within the last decade, the global unit sales have increased for the Coca- Cola companyand the statistics of these data can be analyzed in the following chart.

    (Figure)

    0

    2

    4

    6

    8

    10

    12

    1971 1981 1991 2002

    unit sale in billions

    8

  • 8/6/2019 Coca- Cola Dissertation

    9/47

    This chart shows that within the Coca- Cola Company, there is positive growth in themarket. Internationally, there us a growth of 5%, and worldwide, there is a growth of 4%.The reason for this is mainly down to the innovative marketing programmers which havedone a fantastic job of excellent marketing and promotional techniques, finding thecustomers needs and demands, and most importantly putting these needs into practice

    and creating better products, making the customers feel more connected to Coca- Cola.Another reason for their growth is due to the bottles and their branding methods. Thecompany have ensured that they have kept their good status by making their brands verywell known and at times, associating their products with something which is very importantto customers, for example, Coca- Cola have a very famous television advert whichassociates their drink with Christmas. This advert is shown mostly every year at Christmastime and it is put there to make people associate Coca- Cola with Christmas and as thistime of the year is a very positive and joyous occasion, it makes people feel moreconnected to the company and as if they have grown up with that drink always available,particularly the elderly who may have had Coca- Cola with them as a child.

    9

  • 8/6/2019 Coca- Cola Dissertation

    10/47

    The Coca- Cola Company wanted their bottles to be more economical and in 2002, thisdream had become reality as their bottlers had made their bottles just that. This in manyways improved the relationship that the Company had with their bottling companies andthis is very helpful, particularly as it helps the two gain more opportunities for growth whichmeans that communication within the two will increase and their relationships with

    customers, production and logistics will improve.

    Market Share by Area:Market Share by Area:Coca- Cola is very popular and is known world-wide. It is world-renowned and is currentlyavailable throughout the world throughout the continents.The worldwide unit case volume by operating segment of 2002 review is shown below:

    Operation Review

    (2002 worldwide unit case volume by operating segment)

    NORTHAMERICA

    LATINAMERICA

    EUROPE &MIDDLE EAST

    ASIA AFRICA

    30% 25% 22% 17% 6%

    NORTH AMERICA

    LATIN AMERICA

    EUROPE & MIDDLE

    EAST

    ASIA

    AFRICA

    This pie chart shows that Coca-Cola has the most volume in North America, and

    statistically the least in Africa. This is probably due to the fact that Coca- Cola is anAmerican established Company and although it is very popular in Europe and Asia,perhaps there is not enough media coverage or methods of successful promotion in Africa,and this could possibly be worked on and improved by the company.

    10

  • 8/6/2019 Coca- Cola Dissertation

    11/47

    In terms of areas, this table shows data detailing the market share of the Coca- ColaCompany.

    If we analyze this data, we can conclude that Coca- Cola is gaining more and morecustomers which are shown in the Companys per capita income geographically.

    24 eight- ounce servings equally to one unit case. The non- alcoholic beverages are shownin the table and it includes beverages which are sold commericially which is based onindustry sources and is estimated by the Coca- Cola Company.

    Country Unit case growth Non-alcoholi

    cDrinks

    All commercialBeverages

    10 year compound annualgrowth

    5-year compoundannual growth

    2002 annualgrowth

    2002 2002

    Company

    Industry Company

    Industry Company

    Industry Company share

    Company share

    Companyper capita

    Income

    NorthAmerica

    4 5 3 3 2 2 22 15 398

    United

    States

    4 5 3 3 2 2 23 16 419

    LatinAmerica

    6 7 6 6 3 4 24 15 205

    Argentina

    7 4 6 2 7 2 20 10 236

    Brazil 5 5 3 6 3 5 23 13 144Chile 9 6 5 3 (2) 3 56 23 336

    Mexico 7 10 8 9 2 5 22 18 462 Europe

    & MiddleEast

    6 3 5 3 2 4 12 6 72

    Eurasia 17 8 6 5 (14) 1 14 5 39France 8 3 9 3 7 3 9 5 110

    Germany

    1 2 (1) 1 (6) 1 14 7 193

    GreatBritain

    8 2 11 2 8 3 17 6 193

    Italy 1 3 4 3 2 2 9 6 104Middle

    East12 12 7 5 4 8 8 3 17

    Spain 6 4 8 5 4 4 17 12 264

    Asia 7 6 6 7 10 7 14 5 23Africa 7 6 8 3 10 6 34 11 34

    11

  • 8/6/2019 Coca- Cola Dissertation

    12/47

    In Asia, Coca- Cola is very widely used and consumed. There are on average around 3.2billion units sold annually and Asia are main consumers of Coca- Cola. On average,someone who lives in Asia will have around 2 servings of Coca- Cola a month. As thecompany are constantly trying to think of new ways to improve their drink and come up with

    new varieties of the original Coca- Cola, they have achieved a growth in volume of 10% in2002.As more and more countries are developing and become more populated, Coca- Cola cantake this as a huge benefit and perhaps come up with new ways to expand their productsand increase the popularity of the brand. In China which is a very developed country, thetotal unit sales of Coca-Cola have increased by 6%.

    This pie chart shows the total unit sales in Asia:

    (Figure)

    This chart shows that statistically, Japan has the most unit sales in Asia, this is not verysurprising as Japan are extremely developed and have the best technology systems andfantastic ways of promoting, for example, in major cities such as Tokyo, there are largescreens around the city which can all be used to advertise the Coca- Cola company.However Korea has the least units sold in Asia, this could possibly be due to the fact thatKorea are not as economically developed as other Asian countries which means that if thecompany were to focus more on these countries which has less promotional methods, theycould potentially cover the majority of the countries throughout the World. Other countriessuch as Pakistan and India fall into the other category which shows that these countries areaccountable for a quarter of the sales in Asia.

    12

  • 8/6/2019 Coca- Cola Dissertation

    13/47

    Financial Report:Financial Report: Coca- Cola as a whole is a very strong Company financially, this is due to the sheer volumeof units they sells annually. They always make it through tough financial times, and Coca-Cola will be known for a very long time.This table shows the financial report of Coca- Cola Company of 2000 and 2001 and it alsoincludes the percentage change.

    (Table)

    Year Ended December 31,(In millions except per share data, ratios and growth rates)

    2002 2001 Percentagechange

    Net operating revenues 20,092 19,889 1%Operating income 5,352 3,691 45%Net income 3,969 2,177 82%Net income per share ( basic ) 1.60 1 0.88 2 82%Net income per share ( diluted ) 1.60 1 0.88 2 82%Net cash provided by operating activities 4,110 3,585 15%Business reinvestment (963) (779) 24%Dividends paid (1,791) (1,685) 6%Share repurchase activity (277) (133) 108%Free cash flow 3,147 2,806 12%Return on capital 26.6% 16.2% - Return on common equity 38.5% 23.1% - Unit case sales (in billions)

    International operations 12.5 11.9 5%North America operations 5.3 5.2 2%Worldwide 17.8 17.1 4%

    In 2002, there was a non-cash gain of basic and diluted net income or $.02 per share withtaxes included. This was recognized by one of the equity investors on the issuance stock of Coca- Cola enterprises Inc.

    The following charges are for the 2002 basic and diluted net income per share: $.24 per share including income taxes in relation to the organizational Realignment. $.19 per share including income taxes in relation to the Companys charges which

    were recorded by companys investors. $.16 per share including income taxes in relation to some of the manufacturing and

    bottling changes also for the intangible services. $.05 per share including income taxes in relation to a discrimination lawsuit settling

    terms.

    13

  • 8/6/2019 Coca- Cola Dissertation

    14/47

    $.01 per share including income taxes in relation to promotional and marketingexpenses which were based around Central Europe.

    These charges are made up by an additional $.05 per share including income taxes inrelation to the Coca- Cola Company and their mergers Hellenic Bottling Company S.A. andan additional $.04 per share including income taxes in relation to a tax rate reduction inGermany which gave the Company benefits and from tax planning strategies which were inthe Companys favor.

    Dividend and Cash Investment Plan:

    The Dividend and Cash Investment Plan allows our current shareowners or those whohave done so in the past to reinvest dividends in shares of the Coca- Cola Company inCompany Stock. This is an easy, economical, suitable and methodical method of gainingmore shares of Coca- Colas common stock and all those who are current shareholders or

    have been are entitled to participate in this plan and they may also buy Company Stock of up to $125,000 in voluntary cash investments. During the year of 2002, shareowners hadinvested $36 million in dividends and $31 million cash into the investment plan and by theend of 2002, 76% of Coca- Colas Companys shareowners or those who previously wereparticipated in the plan.

    14

  • 8/6/2019 Coca- Cola Dissertation

    15/47

    Company Statistics:

    The Companys statistics are quite remarkable; this is probably due to the fact that thecompany is so well known and it sold worldwide, not only that, but it is one of the mostfamous non-alcoholic beverages brand in the World with a range of verieties. Also, due totheir bottling and their brand name and most importantly their marketing. In the space of one year (between 2001 and 2002) there was an increase in sales and in their volume andevery other aspect included in the Company.The Coca- Cola brand is constantly expanding with employers, vehicles, facilities and other aspects, the following tables outlines these statistics:

    (Table)

    2002 2001

    Equivalent cases 4.2 billion 3.8 billionBottle and cans 87% 87%

    Fountain 13% 13%Employees 72,000 67,000 Vehicles 54,000 52,000 Cold drink equipments 2.4 million 2.3 millionFacilities

    Production only 25 25 Distribution 385 361

    Combination 53 50 Total 463 436

    Percent of North America population coverage 80% 72%Number of States of Operation 46 46 Bottle and can equivalent case package distribution

    Cans 44% 45%Non-refillable bottles 52% 51%

    Refillable bottles 4% 4%Capital structure

    Net debt to total capital ratio 63% 59%EBITDA interest coverage 3 3

    Weighted average cost of debt 6.3% 6.8%Key Statistics

    Constant territory bottle and can volume growth 3% %Bottle and can net revenues per case change Flat 2%Bottle and can cost of sales per physical case

    change1 %

    Reported EBITDA (in billions) $1.95 $2.39Reported EBITDA change (18)% 9%

    Capital expenditures( in billions) $0.97 $1.18 %-age of net operating revenues 6% 8%

    Coverage of North American Can/bottle volume 83% 74%

    15

  • 8/6/2019 Coca- Cola Dissertation

    16/47

    EBITDA is all the revenue and income before taxes, interest, depreciation, amortization andother items have been removed from them.Net Debt is the term for debts which are more long-term which also include long-term debtless cash

    Net Debt is the Long-term debt plus current portion of long-term debt less cashand marketable securities.

    Equivalent Case or Unit Case is the fountain gallons and physical casewhich has been converted into a s tandard uni t of measure which isdefined as 24 eight-ounce servings or 192 ounces per equivalent casesold by Coca-Cola Enterprises.

    Products:As well as Coca-Cola itself, there are many other different drinks and brands that the Coca-Cola company own; from carbonated drinks, to others and which are all worldwide andpopularly known. When new products are launched, the marketing team carefully considersthe countries culture and their restrictions.

    Coca-Cola brands: Coke

    Sprite Fanta

    Diet coke

    Coke Zero

    Coke with no caffeine

    16

  • 8/6/2019 Coca- Cola Dissertation

    17/47

    The over all volume of this company is as follows.

    (Figure)

    The Coca-Cola Company is committed and devoted to resource water only in marketswhere it expects profitable growth which is a good strategy as it has paid dividends. Thisapproach has been applied successfully in several markets to several brands such as Ciel(Mexico), Mori No Mizudayori (Japan), Bonaqua (Russia) and Kinley in India.

    As Coca-Cola have many bottling partners which are strong and dedicated locatedthroughout the USA, the countrys fastest increasing water brand was Dasani.

    . In Eurasia, the entire Turkuaz brand team worked together to launch Turkey's first purifiedwater brand. This year, Coca-Cola Company also successfully energized a major piece of its beverage strategywater. By the end of 2001, its bottled water volume exceeded 570million unit cases, making it the second biggest contributor to the growth of the companyafter carbonated soft drinks. Three of the water brands, Dasani, Ciel and Bonaqua eachachieved sales of over 100 million unit cases for the year.

    In 2001and 2002, the company has also made good progress in coffees and teas.Beverage Partners Worldwide, the renewed and strengthened marketing partnership withNestl S.A., began operations in 2001. This partnership combines Nestl's knowledge inlife science, research and development with the expertise of Coca Cola Company in brandbuilding and distribution.

    At the same time, the company grew Georgia coffee in Japan by 3 percent through award-winning marketing in a category that was flat for the year. Also in Japanwhere The Coca-Cola Company is the leader in the total tea category, the second-largest category in thenon-alcoholic ready-to-drink segmentit launched Marocha Green Tea. With sales of 46million unit cases for the year, Marocha Green Tea is the fastest-growing product in thefastest-growing category: green tea. The popularity of Marocha is also recognized by the

    17

  • 8/6/2019 Coca- Cola Dissertation

    18/47

    industry with a leading trade journal naming Marocha the most popular new food andbeverage product of the year.

    Know the most recognized word onthe planet after OK!

    18

  • 8/6/2019 Coca- Cola Dissertation

    19/47

    Among the soft drinks Fanta and Sprite become successful along with the major brandCoca Cola and Diet Coke . In key markets, the company has created new packaging sizesto satisfy consumer demands.

    Increasingly, Mexican families have lunch together at home. The average Mexicanhousehold drinks two-and-a-half liters or more of soft drinks during that break, while a two-liter bottle was the largest available package. So the company introduced a convenient 2-liter bottle to select regions, contributing to the sale of nearly 1.5 billion unit cases of Coca-Cola in Mexico this year. This larger bottle will complete its nationwide rollout in 2002. InChina, Coca-Cola is an integral part of holiday celebrations and the family get-togethersthat accompany such events. Through an intense focus on Coca-Cola, innovation and newbeverages, it has achieved volume growth of 10 percent in 2001. In China, sales of Coca-Cola increased by 6 percent. In the United States, recognizing that consumers often enjoytheir diet Coke with a slice of lemon, the company "bottled" the concept. The resultdiet

    Coke with lemoncontributed to volume growth of 4 percent for the number-one diet.Soft drink in North America: diet Coke. The company increased its two largest bottle sizesduring the 2001 holidays, and festival packaging helped drive a 6 percent volume increasefor Coca-Cola. The packaging innovations do not just involve resizing. The company hasalso responded to consumers' changing fashion styles with new bottles.

    With brands such as Minute Maid, Hi-C, Simply Orange and Disney juices and juicedrinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo in Africa.

    This year, the company re-launched its global sports-drink business, investing in new

    products, packaging, positioning and marketing. The results speak for themselves: itsglobal sports drinks, led by Powerade and Aquarius, grew by 13 percent in 2002, nearlydouble the growth rate of the worldwide sports-drink category. Revitalized in the UnitedStates, the company introduced Powerade in nearly every major Western Europeanmarket, including Great Britain, Germany and Spain, as well as in Mexico and LatinAmerica. The company launched 27 products in 2001.

    The commitment of the company to packaging innovation also resulted in new initiatives for our fountain business, a channel through which many consumers enjoy Coca-Cola. In theUnited States, the company developed Fountain, a total beverage dispensing system thatis more flexible and more reliable. Two years of research resulted in a dispensing system

    that provides exceptional beverage quality, easy to upgrade technology, brand and graphiccustomization and improved reliability.

    19

  • 8/6/2019 Coca- Cola Dissertation

    20/47

    STRATEGIC PLANNING

    In the year 2002, the company had a great success, as the strategy worked which resultedin making Coca Cola Company the worlds leading company. In 2001, companyaccomplished the crust of its strategy as

    Worldwide volume increased by 4 percent with strong international growth of 5

    percent and clear signs that our North American business is growing solidly and

    predictable. Earnings per share grew by 82 percent, as we delivered on our commitment to

    create volume growth while aggressively Return on common equity grew from 23 percent in 2000 to 38 percent this year . Return on capital increased from 16 percent in 2000 to 27 percent in 2001.

    The company has generated free cash flow of $3.1 billion, up from $2.8 billion in

    2000, a clear indication of its underlying financial strength.

    The strategy for the future of the company is very straightforward. The marketing strategyfor the year 2002 is as follows,

    Accelerate carbonated soft-drink growth, led by Coca-Cola.

    Selectively broaden the family of beverage brands to drive profitable growth.

    Grow system profitability and capability together with our bottling partners. Serve customers with creativity and consistency to generate growth across all

    channels. Direct investments to highest potential areas across markets.

    Drive efficiency and cost-effectiveness everywhere.

    20

  • 8/6/2019 Coca- Cola Dissertation

    21/47

    MAJOR COMPETITOR

    PEPSI INTERNATIONAL

    HISTORYPepsiCo is a world leader in convenient foods and beverages, with revenues of about $27billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo BeveragesInternational; and Quaker Foods North America, manufacturer and marketer of ready-to-eatcereals and other food products. PepsiCo brands are available in nearly 200 countries andterritories.Many of PepsiCo's brand names are over 100-years-old, but the corporation is relativelyyoung. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company,including Gatorade, in 2001.would entertain the listener with the latest musical selectionsrendered by violin or piano or both. The new name, Pepsi Cola, is derived from the two of the principle ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At thattime, Bradhams advertising praises his drink as Exhilarating, invigorating, aids digestion.

    1990-2002The advertisement of the Pepsi changes to, You got the right one baby, Uh-Huh!.With theextensive usage of the stars in the adds, the popularity of Pepsi increase. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest sellingready-to-drink tea brand in the United States. Outside the United States, Pepsi-ColaCompany's soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in more than 190 countries and territories.In Asia, they selected Lahore to make their regional office. This was done in 1970. Thisregional office is monitoring all the operations carried out in South West Asia. As in

    Pakistan, they only entered beverage industry. They have eleven bottlers covering wholePakistan. The plant operating here is Riaz Bottlers (Pvt) LTD. This plant was established atLahore in 1974. The total capacity of the plant is 30,000 cases per day. They have four filling lines in the plant operating on the three shift bases. Each shift is of eight hours. Theyhave permanent work force of 750 people and they employee approximately 1000 peoplemore on temporary basis during summer season.

    21

  • 8/6/2019 Coca- Cola Dissertation

    22/47

    Pepsis Products

    Pepsi

    Teem

    Mirinda

    Pepsi Max

    Pepsi Lemon

    Pepsi Blue

    Mountain Dew

    7up

    22

  • 8/6/2019 Coca- Cola Dissertation

    23/47

    COCA COLA PAKISTAN

    The Coca-Cola Company began operating in Pakistan in 1953. Coca-Cola, Fanta andSprite are the brands in Pakistan. The Coca-Cola System in Pakistan operates througheight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited(CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad,Rahimyar Khan, Multan and Lahore. The remaining two plants, independently owned, arein Rawalpindi and Peshawar. The Coca-Cola System in Pakistan serves 70,000customers/retail outlets. The Coca-Cola System in Pakistan employs 1,800 people. Duringthe last two years, The Coca-Cola System in Pakistan has invested over $130 million (U.S.)

    49 years of refreshment in Pakistan

    Coca-Cola introduced in Pakistan 1953

    Fanta introduced in Pakistan 1965

    Sprite was introduced 1972

    Diet Coke & Fanta Lemon 2001

    23

  • 8/6/2019 Coca- Cola Dissertation

    24/47

    PROMISE OF COKE

    The basic proposition of our business is simple, solid and timeless. When we bringrefreshment, value, joy and fun to our stakeholders, then we successfully nurture andprotect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligationto provide consistently attractive returns to the owners of our business.

    TARGET MARKET

    Cokes commercials basically based on young generations, So, the young generation is thetarget market of Coke because they want to represent Coke with the youth and energy butthey also consider about the old people they take then as a co-target market.

    MAJOR SEGMENTSMajor segments are basically those people who take this drink daily and those areas wherethe demands is higher then the other areas. There are so many people who take this drinkdaily and those people who take weekly and those who take less often are always there aswell. So, their basic segments are those people who take this drink regularly.

    FACTORS EFFECTING SALES

    There are so many factors, which affects the sale of coke. Here we are discussing threemajor factors which effects coke.

    Per capita income

    Competitors

    Weather

    Per Capita IncomeFirst we will discuss about Per capita income. This is major factor that affects the sale of this soft drink. Because which every passing year budgets are becoming very strict andtight in order to purchase things. So the disposable incomes of the people are comingdown. They spend heavily on rents, utilities, and education and basic necessities and after that when they get extra money they think about this soft drink .So the decreasing per capita income effects badly in selling and production of this soft drink.

    24

  • 8/6/2019 Coca- Cola Dissertation

    25/47

    And to get through with this difficulty there is need to increase the level of per capitaincome of Pakistan because it is much lesser than the rest of the countries.

    CompetitorsCokes major competitor is PEPSI and there is no hesitation to say this because everyone knows that and all the other cold drinks and water, coffee, tea are the competitors.

    Weather

    Weather is the third major factor in effecting the Cokes selling. This is underdevelopedmarket so the cokes consumption in summers is 60% and in winters is 40%.

    MAJOR CUSTOMERS NEED

    First of all the majority dont care that what they are going to have. In other words, theydont care before drinking that whether it is Pepsi or coke. They dont actuallydifferentiate between these two brands in order to their tastes.Consumers basically drink what they get.They believe on WHAT COLD THEY SOLD Consumers availability in brands is basically works like:Push availabilityPull consumers demand.

    For this reason Coca-Cola have provided their coolers and freezers in the market. Theyhave maximum number of coolers and freezers in the market. They provide thisinfrastructure free of cost just to provide child coke to their customer, which they want to bepurchase.Their salesman and mechanics regularly visit all the shops where coke has itsinfrastructure to check that either it is in proper condition or not, if not then they immediatelychange or repair it.

    25

  • 8/6/2019 Coca- Cola Dissertation

    26/47

    MAJOR COMPETITORSConsumers firstly decide that they are going to have a soft drink. Then they competebrands with each other. Like they compete Coke with Pepsi and Sprite with 7up andteam .So the major competitor of Coke is Pepsi.When they motivate to any other brand or on Coke its in instinct basically that based onmessages derive certain feelings.But Coca Cola thinks in a different way, they believe that RC Cola, new coming AMRATCola, and all juices, even they take water and tea as their competitors.

    STRATEGIES OF QUALITYAfter Micro and macro analysis Brand coke is primarily role

    1. Enhance competition moments

    2. When people watch cricket3. Through commercialization

    4. Fun time

    Though these strategies there could be better understanding and better connection with thepublic. These are the key consumption.

    THREATS FROM COMPETITORSThreats are well planned. Price is the major threat. When price goes certain beyond theexact price whether come down or go higher its effects the consumption of soft drink.Because when the price go higher people go for the substitute of coke i.e. Pepsi.And when price goes down they think that there is must be some thing wrong in it.In short it all depends on customers perception.

    TARGETS THAT WOULD LIKE TO ATTAINEvery organization runs on the bases of profit maximization so Coke is also looking for ahigh profit margin.

    There are three major ways of making money

    Over night profit

    Windfall profit

    Ethical and un-ethical ways

    26

  • 8/6/2019 Coca- Cola Dissertation

    27/47

    Over Night ProfitsThey could be over night profit that is for the number 1 brand for the year. This could be gotmy increasing sales volume

    Windfall ProfitCan be windfall profit. They are the extras profit. When the consumption the consumption ison boom. So, there is different kind of profits.

    Ethical And Unethical WaysProfit can also get through ethical and unethical ways. They believe on this quote Every thing is fare in love and war.

    Some profits stays for some time like over night profits and some just come and go likewind fall profits. And they can also get profit through different approaches.

    EXPANDING TARGET MARKETIn last 2 years Coke has come back in aggressive manner.

    Consumer has choice

    Attractive brand name Brand differentiating

    Consumer Has Got ChoiceNow the consumer has got choice. Because now they know the name of another big brand,though coke is the 2 nd best name but it can get a better position after some time

    Attractive Brand Name

    Now the consumers know the Name of Coke, because Coke is the name, which is the mostpopular after the word ok. So people can better differentiate brands with each other.

    Brand DifferentiationNow different companies have got different brand names. So, people can distinguishbetween brands. Two major brands coke and Pepsi also have brand names.

    27

  • 8/6/2019 Coca- Cola Dissertation

    28/47

    Coca Colas BrandCoca cola is US brand. Because they believe in the togetherness, being people together and friends are being together. Coca Cola strongly believes that Pakistani temperament isUS not ME

    Pepsis BrandPepsis brand is basically is basically ME branded. They use the temperament of ME. Incontrast to Coke they believe on individual struggle.

    THREATS AND OPPORTUNITIES FOR PRICE

    Opportunities

    If Coke is considered a luxury product. Then there is the tax rate system15% - sales tax20% - excise duty27% - goes to government03% - In making Budget

    After paying all these taxes coke has to pay electricity charges. We have to spend ondistributions. After paying all these expenses Cokes margin squeezed and consumers

    have to pay for increasing tariffs.These are the opportunities through which we can increase the price and can get profits.

    Threats

    There are much more threats in increasing prices. Because same problem of substitute. If Coke increase the price lets say 1 rupee. Then people definitely wont go for coke. Theyhave the best substitute of Coke that is Pepsi. So these are the threats in increasing prices.Coke will lose the margin of its profit and can face loss.

    28

  • 8/6/2019 Coca- Cola Dissertation

    29/47

    STRATEGIES OF GETTING GOALS I.E. HIGHPROFITSTo increase the price is the least thing, which Coke can adopt. There are so many waysthrough which Coke can increase the profits. Some major ways are as follows.

    Volume can be increased Interest level of consumers

    To take part in energetic festivals

    How to increase the volume of consumers?

    Coke can increase the volume by expanding the industry of coke. Through advertisements,offering different interesting things to attract people towards this product.

    How to increase the interest level of consumers?

    Coke is increasing the interest level of consumers by offering different flavors.For example Coke is increasing the number of flavors in Fanta, this is one of the productof coke. Through offering different flavors Coke can increase the Level of consumers andthrough this profits can be gained.

    How to take part in energetic festivals?

    Coke is already taking part in the festival like Basant since last 3 years. Coke offersdifferent attractive things in their festival and through this Coke gained high profit andconsumption of coke increased on these occasions.

    And this year in this year 2002 people were anxiously waiting that what interesting thingcoke is going to offer.

    MARKETING STRATEGYOur local marketing strategy enables Coke to listen to all the voices around the worldasking for beverages that span the entire spectrum of tastes and occasions. What peoplewant in a beverage is a reflection of who they are, where they live, how they work and play,and how they relax and recharge. Whether you're a student in the United States enjoying arefreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juicedrink, or a couple in Korea buying bottled water after a run together, we're there for you.We are determined not only to make great drinks, but also to contribute to communitiesaround the world through our commitments to education, health, wellness, and diversity.

    29

  • 8/6/2019 Coca- Cola Dissertation

    30/47

    Coke strives to be a good neighbor, consistently shaping our business decisions to improvethe quality of life in the communities in which we do business. It's a special thing to havebillions of friends around the world, and we never forget it.

    30

  • 8/6/2019 Coca- Cola Dissertation

    31/47

    MARKET POSITIONING

    Product RangeThe total range of Coca Cola company in Pakistan includes:

    Coke.

    Sprite.

    Fanta. Diet Coke.

    And company offers their products in different bottle sizes these includes:

    SSRB (standers size returnable bottle) LRB (litter returnable bottle)

    NRB (no return bottle) or disposable bottle

    PET 1.5 (1.5 litter plastic bottle)

    CANS (tin pack 330 ml)

    PackingCoca cola products are available in different packing

    24 regular bottle shell

    6 bottle pack for 1.5 pets 12 bottles in a pack for disposable bottle

    24 cans in one pack.

    31

  • 8/6/2019 Coca- Cola Dissertation

    32/47

    PRICE STRATEGY

    Trade PromotionCoca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And thats why coca cola seen more in the market. And they have agood sale in the market because according to the expert which product seen more in themarket that sells more.Seen as sold

    They do agreements with a shop keepers and stores to exclusive sale in that stores. Thesestores are called as KEY accounts in their local language.And coke also invest heavy budget on these stores and offers them free samples and free

    bottles and some time cash incentives.

    Different Price In Different SeasonsSome times Coca Cola Company change their product prices according to the season.Summer is supposed to be a good season for beverage industry in Pakistan.So in winter they reduce their prices to maintain their sales and profit. But normally theyreduce the prices of their pet bottles or 1 litter glass bottle.

    32

  • 8/6/2019 Coca- Cola Dissertation

    33/47

    PROMOTION STRATEGIESGetting shelvesThey gets or purchase shelves in big departmental stores and display their products in thatshelves in that style which show their product more clear and more attractive for theconsumers.

    Eye Catching PositionSalesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores.

    Sale PromotionCompany also do sponsorships with different college and schools cafes and sponsors their sports events and other extra curriculum activities for getting market share.

    UTC SchemeUTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. Thisscheme is very much popular among children.

    DISTRIBUTION CHANNELSCoca Cola Company makes two types of sellingDirect sellingIndirect selling

    Direct SellingIn direct selling they supply their products in shops by using their own transports. They

    have almost 450 vehicles to supply their bottles. In this type of selling company have moreprofit margin.

    33

  • 8/6/2019 Coca- Cola Dissertation

    34/47

    Indirect SellingThey have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers andagencies to assure their customers for availability of coca cola products.

    FACILITATING THE PRODUCT BYINFRASTRUCTUREFor providing their product in good manner company has provided infrastructure these

    includes: Vizi cooler

    Freezers

    Display racks

    Free empty bottles and shells for bottles

    ADVERTISEMENTCoca cola company use different mediums

    Print media

    Pos material Tv commercial Billboards and holdings

    Print MediaThey often use print media for advertisement. They have a separate department for printmedia.

    POS MaterialPos material mean point of sale material this includes: posters and stickers display in thestores and in different areas.

    34

  • 8/6/2019 Coca- Cola Dissertation

    35/47

    TV CommercialsAs everybody know that TV is a most common entertaining medium so TV commercials isone of the most attractive way of doing advertisement. So Coca Cola Company doesregular TV commercials on different channels.

    Billboards And HoldingsCoca cola is very much conscious about their billboards and holdings. They have so manysites in different locations for their billboards.

    EXPECTATIONS FOR THE COMING YEAR

    Every thing starts from the attitude of consumers behavior. And the basic key to attract theconsumers is to throw the money away.

    And positive feeling felling with the brand, which they used to have Coke wants to advertisetheir products heavily in the coming year. And it will take the 10% of their profits. And whenwe take it as a global level it is $ I billion.

    Coming year is the challenging year for the industry of Coke. They have to take lots of decisions that how to increase the production and where they have to spend money.For gaining success in coming year they have to have some important things like:

    1. Loyal consumers are important for companys success.

    2. Workers should be the brand centric not the promotion centric.

    3. They should know how much to for the brand activities.

    4. They should also know that how much to do with the promotion activities for brand.

    HOW COKE DETERMINE THE YEARLY BUDGET

    Coke determines its yearly budget by the Sales volume

    Profitability Target volume

    35

  • 8/6/2019 Coca- Cola Dissertation

    36/47

    Sales VolumeCoke determines its yearly budget through the sales volume. They first concentrate on thething is what is the condition of their sales? if the condition is good of their sales then theydefinitely increase their production and sales volume. Otherwise they concentrate on their old strategies.

    Profitability:The second thing through which they determines budget is the profit .if they r gettingprofits with the high margin, then they definitely want to increase their profits in the nextcoming year. Every organization runs on the basis of getting high profits. No organizationwants to face Loss in their business. To get profit is the first priority of the Coke.

    Target Volume:To run the business every industry has some targets, which they want to achieve in aspecific time period. If industry achieves those goals in that period then for the coming year it increases the volume of the target.So Coke Follow the same thing it has also some goals and targets to achieve in the giventime period. When they succeed to achieve that target then they increase their targetvolume in the next year.

    36

  • 8/6/2019 Coca- Cola Dissertation

    37/47

    SALES PROMOTION ACTIVITIESCoca-Cola CricketCricket the most sought after; watched & played game in Pakistan .the game of cricket hasbeen owned by various brands in the industry for the promotion of their products over aperiod of time. It has ranged from tobacco to lubricants to communication companies tobanks to airlines & lately to the beverage industry. The competition has become tougher &tougher as the time has progressed.

    Coca-Cola signed a sponsorship agreement with eight of Pakistans National cricketplayers. Coca-Cola realizing the fact that cricket is a very strong element by which it canreach it consumers & masses invested in the opportunity and launched a massivecampaign on mass media showing all these cricket stars endorsing & complimenting Coca-

    Cola brand. The Coca-Cola Company developed three TV commercials & four testimonialads with the player & ran them on the national net work during various cricket matches.These bold steps taken by the Coca-Cola marketing unit acclaimed them manyacknowledgements across the board. This campaign helped Coca-Cola to establish itsassociation with the game & the player.

    Coca-Cola ConcertsAbrar-ul-haqs distinct style, lyrics & songs have made him an instant hit among themasses in Pakistan. His enormous popularity in the country & abroad is supported byCoca-Colas commitment towards providing healthy & fun-filled entertainment for the youthof Pakistan. Coca-Cola brought Abrar to his fans through holding concerts & featuringAbrar in a much-appreciated TVC & MMT featured throughout the country.

    The TVC campaign focused on the hectic lifestyle of a pop star who found respite & relief through Coca-Cola in short moments that he had to himself during a concert. Coca-Colasbrand positioning of providing deep down refreshment for the body, soul & mind werecaptured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar.

    Coca-Cola Food MelaWith a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the peopleof Karachi, to a festive food festival comprising of 50 restaurants, spread out all over thebustling citys map. The promotion saw the avid families & friends enjoying the delicacies atthe restaurants; all resiliently upholding the Coca-Cola identity.

    37

  • 8/6/2019 Coca- Cola Dissertation

    38/47

    Coca-Cola Basant FestivalIn February the month of basant the parks & horticulture authority in Lahore nominatedCoca-Cola the official sponsor of the basant festival .Coca-Cola added to the carnivalatmosphere by making the festival free to enter & decorating all main roads in Lahore withilluminated kites. Coca-Cola also hosted a concert of pop idol Abrar-ul-haq, had childrensparade & held the Coca-Cola kite flying championship during the basant festival. Nowwhere there is basant there is Coca-Cola, it has been impossible to envisage basantwithout Coca-Cola. Coca-Cola give the more refreshing flavor to the colors of basant byadding more life to the festival, giving the consumer a unique experience which they hadnever tasted before.

    Coca-Cola GO-REDQuenching the thirst of motorist, pedestrians & passerbys during Lahores hottest summer

    season, Coca-Colas GO-RED teams went out into the cities main quadrants to serve &refresh on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FMannouncement campaign the GO-RED stall, served well to promote the Coca-Colaindustry.

    Coca-Cola Party in a ParkIn June 2000, Coca-Cola created an experiential musical evening in Lahore, where Junoonperformed. This program was recorded and one-hour program shown in the national TV for free.10 million households saw Coca-Cola Party in a Park while 10 thousand peopleattended the event.

    Coca-Cola Shopping FestivalCoca-Cola hosted The Coca-Cola Shopping Festival Lahores first shopping festival, aresounding success with tempting discounts, live music, great prizes & fire works. Libertymarketing Gulberg was a hive of activity during the weeklong shopping extravaganza. Thein augural event proved so popular that it is now set to become an annual fixture.

    Coca-Cola Pet PromotionIn 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in Pakistan.Targeting house wives & family home, Coca-Colas 1.5 liter Pet bottle, took the limelight &gained momentum with a campaign promoting the unique packaging and its numerousconsumer benefits .A treat for the family, Coca-Colas PET was offered through a price-offpromotion that said. Go out & get some

    38

  • 8/6/2019 Coca- Cola Dissertation

    39/47

    Coca-Cola Ramzan CampaignA very special occasion for the people of Pakistan Ramzan saw another very special Coca-Colas promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with a super price-off promotion. The emphasis on enjoying Coca-Cola at Iftar with friends & family.

    Coca-Cola Wonder of the World PromotionIn July 2000, Coca-Cola set the stage of the grand UTC promotion. Coca-Cola went aheadwith the idea of giving consumer chances to win fabulous, magical dream vacation tonumerous wonder destination throughout the world on every purchase of a 250 ml RGBbottle of Coca-Cola, Sprite, & Fanta.The promotion gave consumers a chance to win freedrink, a trip to PARIS, HOLLYWOOD, NEWYORK, SINGAPORE & CAIRO along withairfare & four nights free stay in these dream lands. The promotion saw avid consumer

    collecting Coca-Cola Crown caps & sparked a keen response from the public , renderingan outstanding testimonial campaign in the second phase, highlighting the winners over whelmed in the magical delight of their favorite beverage Coca-Cola.

    Coca-Cola & NokiaIn August 2001, the new under-the-crown promotion Nikla Kiya ?(What have u won) waslaunched in collaboration with Chimera Nokia.The promotion gave consumer a chance towin thousands of Coca-Cola branded Nokia 3310 cellular phones on every purchase of 750ml RGB bottle of Coca-Cola ,Sprite, & Fanta.The other highlight of promotion was theCaught Red Handed campaign. Branded Coca-Cola with caught red handed team inthem went to Lahore & Karachi for three days, with target that anyone being caughtdrinking Coca-Cola will be awarded a nokia 3310 mobile phone & if someone is caughttalking on a nokia mobile will win free supply of Coca-Cola. Caught red handed become ahuge success among the masses as it was one to one interaction between the Coca-Colabrand & the consumers. This activity helped billed confidence and brand loyalty amongcore consumers.

    Coca Cola TV MazzaThe coca cola new campaign is coca cola tv mazza, it is a utc scheme in which people are

    getting television sets of different sizes. These days this scheme is very popular among thepeople.

    Coca-Cola & Mc DonaldsCoca-Cola & key account of MC Donalds launched the we go together joint promotion toreinstate amongst consumers a real sense of the affinity that, both shares globally. Thepromotion kicked off with pos material (Danglers, Bunting etc) displayed at all MC Donaldsrestaurants along with a special offer for coke & fries.

    39

  • 8/6/2019 Coca- Cola Dissertation

    40/47

    Fanta & Sprite LaunchedIn November 2000moving on to the Sprite & Fanta brands, the consumers in Pakistanwitnessed a soft launch in essence. The Coca-Cola Company declared the new Non-Returnable bottles of Sprite & Fanta as the New, On the Go Packs flaunting theinnovative packaging convenience. Fanta & Sprite are sure to enjoy considerable successin Pakistan. Diet CokeAfter the acquisition of the individual local franchise bottling facilities in 1996, the companyhas successfully launched its first new product, diet coke, for the first time in almost 3years. The was linked with three fashion shows as Diet Coke is related to fashion & fitness,but the major hit was thematic fashion shows in restaurants, which are the key accounts of the company as this has been never done before in Pakistan.

    40

  • 8/6/2019 Coca- Cola Dissertation

    41/47

    CONCLUSION

    After thorough research, we come to the conclusion that the marketing strategy of

    Coca Cola is working for them and the product is gaining popularity among youth

    day by day.

    RECOMMENDATIONS

    After completing our project we have concluded some recommendation for the cocacola company, which are following.

    Coca Cola Company should try to emphasis more on providing their

    infrastructure in the market to facilitate their customers. According to the survey, conducted by the international firm Pakistani people

    like little bit sweeter cola drink. So for this coca cola company should produce

    their product according to the local demand. Marketing team should try to increase the availability of Coke in rural areas. They should also focus the old people. Now young generation has a trend to drink a coke 2 regular bottles at same

    time, so providing more satisfaction to them company should introduce liter

    disposable bottle.

    41

  • 8/6/2019 Coca- Cola Dissertation

    42/47

    PEST ANALYSIS OF COCA-COLAThere are four variables, which we will discuss in our report, they are:

    POLITICAL VARIABLESPOLITICAL VARIABLESPolitical variables Strongly

    Effected++

    Some whatEffected

    +

    NoEffect

    +

    Some whatEffected

    StronglyEffected

    Effects of governmentregulations &deregulations

    NE

    Effect of environmentalprotection laws if any

    YES

    Import and export

    regulations

    NE

    Effect of politicalconditions in certain

    countries of Coke

    NE

    Any effect of election,military take over,

    Revolution at Coke

    YES

    Conclusion Of Political Analysis:As far as the above table is concerned it could be seen that there are very littlechances of political variables to effect the cokes production and selling behavior.In the political variables most of the things are related to Governmental activities.So, they dont leave any good or bad impact in the Industry of coke.

    And there are some exceptional things like: environmental protection laws theysome what effect the industry of Coke. From last two years Government is going tobe really very much conscious about the environment. But after making the

    adjustments in plants and applying the proper way of wastage the chances of beingaffected by the protection laws are going to be diminished. So it impact good for the Cokes reputation. And the second thing in political variables which effects Cokeis elections & military take over Because in the days of elections and marshallaws condition the countries production in any field is declined. So it affects slightlythe revolution of Coke.

    So political conditions are over all leave neutral effects on cokes industry.

    42

  • 8/6/2019 Coca- Cola Dissertation

    43/47

    ECONOMICAL VARIABLES

    Economical Variables StronglyEffected

    ++

    Some whatEffected

    +

    NoEffect

    +

    Some whatEffected

    StronglyEffected

    Do soaring interest ratesmake business task any

    harder

    YES

    Any effect due toinflation

    YES

    Anything done to reduceunemployment

    YES

    Any effect of 11 thSeptember 2001,

    incident at Coke inPakistan

    NE

    Conclusion Of Economical Analysis

    It could be seen that economical variables highly affects the Cokes resolution. Economicfactors are those actors who effect the production of any industry. So, Coke is not the out of question. If the economic conditions of the country is not that strong and Coke increases itsPrice in this situation. Then it would impact highly negative. And inflation is also not a goodposition for any countrys production point of view. It also impacts highly negative in theCokes production.

    And as a country concerned like Pakistan where the unemployment rate is very muchhigh. The Coca-Cola system in Pakistan employs 1,800 people. During the last 2 years, theCoca-Cola system in Pakistan has involved over $130 million (U.S).When we draw the conclusion of economic variables. Then we come to know that if economic variables are in the favorable position of country then they impact good other wise the impact highly bad.

    43

  • 8/6/2019 Coca- Cola Dissertation

    44/47

    SOCIAL VARIABLES

    Social variables StronglyEffected

    ++

    Some whatEffected

    +

    NoEffect

    +

    Some whatEffected

    StronglyEffected

    Effects of advertisement of Coke on Public popularity

    YES

    How will do Cokescontribution affect charityorganizations of Pakistan

    YES

    Has rising consciousnessof natural resources in

    people effected your saveenvironment activities.

    YES

    CONCLUSION OF SOCIAL ANALYSIS

    EDUCATION

    The Coca-Cola Company has always believed that education is a powerful force inimproving the quality of life and creating opportunity for people and their families around theworld.The Coca-Cola Company is committed to helping people make their dreams come true. Allover the world, we are involved in innovative programs that give hard-working, Knowledge-hungry students books, supplies, places to study and scholarships. From youth in Brazil tofirst generation scholars, educational programs in local communities are our priority.

    ENVIRONMENTA large part or our relationship with the world around us is our relationship with the physicalworld. While we have always sought to be sensitive to the environment, we must use our significant resources and capabilities to provide active leadership on environmental issues,particularly those relevant to our business. We want the world we share to be clean and

    beautiful. We are always innovating to bring you different delicious beverages. This samespirit of innovation comes alive in our environment programs. Were committed topreserving our environment, from use of more than $ 2 billion (U.S) a year in recyclingcontent and suppliers, and environment

    Management initiatives, down to very local neighborhood collection and beautificationefforts. Heres a sample of what were doing in different communities around the worldregarding the conservation of water and natural resources, climate changes, wasteenvironment education.

    44

  • 8/6/2019 Coca- Cola Dissertation

    45/47

    The Coca-Cola system in Pakistan operates through eight bottlers. Four of which aremajority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL).

    COMMUNITY INVOLVEMENT:

    In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system initiateda famine-relief program to help victims and was the first private-sector company to assist.The Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows oneemployee from each plant, selected through a draw, to be sent on the Holy Pilgrimage toMecca at the Companys expense.

    TECHNOLOGICAL VARIABLES

    Technologicalvariables

    StronglyEffected

    ++

    Some whatEffected

    +

    NoEffect

    +

    Some whatEffected

    StronglyEffected

    Have businessinnovations effectively

    promoted your business

    YES

    Has the governmentsregulations ever

    hindered in importingtechnical equipment

    YES

    Does Coke help inpromoting paperless

    environment

    YES

    Conclusion Of Technological AnalysisOf course business innovation leaves highly good impacts in the business of Coke. As cokeuse more advance technology in its production process. It will resulted in increment of their production through out the country.

    As far as the governmental hindrances are concerned the impacts highly bad on cokes

    production. Ever year when budget in announced government taxes rates always shoot up.This approach of government decreases the profit margin of Coke.

    As the coke helping in promoting paperless environment .it impacts good, becausecomputers are the basic need of any person now a days. And though its a big industry so itis promoting the trend of paperless environment. And it is giving the way of other industriesto come to new technologies and into a new world of business. Through computers cokecan increase the efficiency of its business and can have up to-date data about their productions.

    45

  • 8/6/2019 Coca- Cola Dissertation

    46/47

    OVER ALL RESULTS OF PEST ANANYSISAfter our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited), we cameup with the very interesting report of facts and figures. Coca-Cola is no doubt one of themost popular beverage company and its product COKE is one of most consumed coladrink. They spend billion of dollars on their advertisement, promotions and recreationalcampaign.

    Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough time. Coca-Cola is a 27% shareholder in the Pakistan market and they dont want to stop here!! Itstarget market is to achieve a much higher %age. Coca-Cola has about 2000 employees atPakistani plants. Lahore plant of Coca-Cola is one of the beautiful plant in Asia, Situated onRaiwand Road.

    Coca-Cola has always had a close consumer and supplier relationship with its customers.Its entertaining and colorful advertisements have always and will always rock the media.Pakistani rock stars, sportmen and actors have played a very vital role in making Coca-Cola such a popular beverage.

    46

  • 8/6/2019 Coca- Cola Dissertation

    47/47

    CONCLUSION:Coca-Cola no doubt come the heart beat of Pakistanis. Coca-Cola is one of the leaders insponsoring the most important, thrilling events. E.g. Cricket matches, concerts and manyother social occasions. Event at the present they are organizing a Basant festival for whichthey busily organizing stuff .

    So

    Jo chaho ho jaye coca-

    cola enjoy