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COCA COLA

Coke final Report.doc

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PAGE 18

PRESENTED TO: Miss ZuneraPRESENTED BY: Dil Muhammad (2123220)

Akmal Younis (________)

MISSION STATEMENT

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference.

Vision StatementOur vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

3MISSION STATEMENT

3Vision Statement

6Introduction:

6History of Coca-Cola:

6Coke History in Pakistan

7Target Marketing:

7Marketing Mix of Coca-Cola

8Product

9Packing

9Product strategy

9Levels of coke as a product

9Core product:

9Actual product:

9Product Classifications:

9Line Extension:

10Brand Extension:

10Multi-Branding:

10Diversification:

10Product Line Decisions:

10Product Line Length:

10Product Line Filling:

10Price

10Price

11PRICE STRATEGY

11Trade Promotion

11Different Price in Different Seasons

11Place

11Availability

11DISTRIBUTION CHANNELS

12Direct Selling

12Indirect Selling

12FACILITATING THE PRODUCT BY INFRASTRUCTURE

12Market segmentation:

13Coke segmentation strategy:

13Geographic Segmentation:

13Internationally:

13Climatic:

13Locally:

13Demographic Segmentation:

13Age:

13Family type:

14Income:

14Psychographics Segmentation:

14Behavioral Segmentation:

14Occasions:

14Benefits Sought:

15Promotion:

15PROMOTION STRATEGIES

15Getting shelves

15Eye Catching Position

15Sale Promotion

16PUBLICITY

17Promotional campaigns of coke:

17Conclusion & Recommendations:

17CONCLUSION

18Recommendations:

18References

Introduction:

History of Coca-Cola: The Coca-Cola Company traces its beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company.

The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at adjusted prices of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986.In December 1991; a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion at the year-end. Presently The Coca-Cola Company is the largest soft drink company in the world. Every year 800,000,000 servings of just "Coke" are sold in the U.S alone.Coke History in Pakistan

58 Years of dedicated service

The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite are the brands with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in Pakistan operates through eight 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, are in Rawalpindi and Peshawar. The Coca-Cola Company in Pakistan has invested over $130 million (U.S) and coke has successfully provided 58 years of dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firm has 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 genuine

1923 Enjoy thirst

1934 When it's hard to get started, start with a Coca-Cola

1942 The only thing like Coca-Cola is Coca-Cola itself

1956 The friendliest drink on earth

1963 Things go better with Coke

1993 Always. Coca-Cola

2001 Life is Good 2003 Jo Chaho Ho Jaye Coca Cola Enjoy 2006 geo coke zindagi 2007 Kha lee pee lee jee lee 2008 Hans gaa jee lee coke zindagi

2009 Brrrrrr.

Target Marketing:

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

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

Undifferentiated marketing. (Mass Marketing)

Differentiated marketing. (Segmented Marketing)

Marketing Mix of Coca-Cola

Product

Price

Place

Promotion

ProductPricePlacePromotion

Functionality

Appearance

Quality

Packaging

Brand

Warranty

Service/SupportList price

Discounts

Allowances

Financing

Leasing optionsChannel members

Channel motivation

Market coverage

Locations

Logistics

Service levelsAdvertising

Personal selling

Public relations

Message

Media

Budget

Product

Coca-Cola the worlds most popular beverages .The popularity of Coke is to such an extent that

The most known and spoken word in world after OK is COKEProduct Range

The total range of Coca Cola company in Pakistan includes:

Product Range

Coke/ Diet coke

Sprite/ Sprite 3G/ zero

Fanta/ Fanta citrus

Kinley Pure water

Pulpy Orange juice (New)

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)

Packing

24 regular bottle shells

6 bottle pack for 1.5 pets

12 bottles in a pack for disposable bottle

24 cans in one packet.

Product strategy

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 that is 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 high and this is the product that is bought very frequently.

Line Extension:

Line extension occurs when a company introduces additional items in a given product category under the same brand name. For example if Coke introduces new flavors and package size, it will be considered as line extension.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 not only introduced coke as a brand but also sprite and Fanta.

Diversification:

It 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 Length:

It means the number of products that company is offering. For example Coke, Diet Coke, Fanta, Sprite.

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 product line by adding diet coke, diet lemon etc

Price

Price

Rs.25/- for 250-ml bottle,

Rs.50/- for tin.

Rs.80/- for 1.5 liter bottle.

Rs.75/- for 2.25 liter bottle

Very economical justifies the ultimate taste and joy provided by the beverage of and on price cuts are provided to customers.

PRICE STRATEGY

Trade Promotion

Coca 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 a good sale in the market because according to the expert which product seen more in the market that sells more.

Seen as sold

They do agreements with a shop keepers and stores to exclusive sale in that store. These stores 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 Seasons

Some times Coca Cola Company changes 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 they reduce the prices of their pet bottles or 1 litter glass bottle.

Place

Availability

Available in all main as well as posh and backward areas in big cities. Available to some extent in posh areas of small cities.

Available in all restaurants and hotels, colleges, universities, hospitals, bus stops etc.

DISTRIBUTION CHANNELS

Coca Cola Company makes two types of selling

Direct selling

Indirect selling

Direct Selling

In direct selling they supply their products in shops by using their own transports. They have almost 350 vehicles to supply their bottles. In this type of selling company have more profit margin.

Indirect Selling

They 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 and agencies to assure their customers for availability of coca cola products.

FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure these includes:

Vizi cooler

Freezers

Display racks

Free empty bottles and shells for bottles

Market segmentation:Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.

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

Segment size

Segment growth

Segment structural attractiveness and company objectives and resources.

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

Concentrated marketing. (Segmented Marketing, small segment)Coke segmentation strategy:

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

Geographic Segmentation:Internationally:

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

Climatic:

In coke marketing, main idea is to serve it cold, so we can say that, they focus more on hot areas of the world, i.e. middle east etc and there sale increase in summer.

Locally:

In Pakistan the coke segments more in urban and suburban areas as compare to rural.

Demographic Segmentation:

Age:

Internationally 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 than older.

Family type:

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

Income:

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

Psychographics Segmentation:

All psychographics variables the social class, lifestyle, occupation, level of education and personality, coke segments everyone, but again its there packaging which is different for different consumers.

Behavioral Segmentation:

Occasions:

Thanks to the Coca-Cola Company the local festival of Basant has become and international event and an identity of the culture of Pakistan. Over the year the annual spring festival of Basant has taken on mega proportions. Previously restricted largely to the walled city, the festivities now flood every nook and corner of Lahore. The credit for making the celebrations available to almost everyone largely goes to The Coca-Cola Company. In 2003, Coke was once again nominated as the official sponsor for the Basant festival bye the parks& horticulture authority, Lahore for the fourth year running. In these four years, the company has played a pioneering role in making the Basant festival

Major social and culture event in Pakistan. (The News on 50th anniversary of the Coca-Cola in Pakistan.)

Benefits Sought:

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

Promotion:To promote the Coca-Cola, Fanta, and Sprite the company uses the following tactics or ways

Advertisements with catchy slogans.

Coca-Cola enjoys

Always Coca-Cola.

Eat Cricket, sleep cricket, and drink Coca-Cola.

Sponsorship:

Sports e.g. cricket matches and hockey.

Events e.g. basant festivals.

Concerts.

Artist album e.g.Arar-ul-Haq.

PROMOTION STRATEGIES

Getting shelves

They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.

Eye Catching Position

Salesman 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 Promotion

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

PUBLICITY

Coca Cola Company use different mediums

Print media

Pos material

TV commercial

Billboards and holdings

Print Media

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

Pos Material

Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas.

TV Commercials

As everybody know that tv is a most common entertaining medium so tv commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular tv commercials on different channels

Prize schemes:

Coca-Cola glasses. Bicycles. TV (16, 21.28)Billboard electronic sign board.

In major public areas, liberty bank square.

Defence Y block Commercial area.

At centre point.etc.

Promotional campaigns of coke: BASANT:

The Coca-Cola Company sponsors the basant festivals in Lahore, a festival that marks the beginning of spring and attracts visitors from all over the world. Part of the festivals is Coca-Cola kite flying championship.

SHAPE \* MERGEFORMAT

Concerts and charity programs:

The Coca-Cola Company sponsors Pakistani leading pop group and organizes concerts and charity shows throughout the country for teen ages and underprivileged children.

Cricket players for promotion:

The company has signed a sponsorship agreement with eight of Pakistans national cricket players for promotional and advertising use.

Conclusion & Recommendations:

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 dayRecommendations:

Bottle shape.

Availability in rural areas

Repositioning of flavored Fanta.

Should be flexible in policies.

Prize schemes

Instead of large expensive gifts, prize schemes should constitute of small, inexpensive gifts e.g. Coca-Cola penal case. Coca-Cola pen, key chains, T-shirts, Cups, bottles in each cerate could contain prizes. This would be a much effective scheme to increase sales.

Should be flexible in policies

CCI should allow some degree of freedom in its policies and work procedures and policies according to the environment and conditions of Pakistan without having to ask for permission every time.

Referenceshttp://www.coca-colajourney.com.pk/our-company/coca-cola-starts-operations-in-pakistanhttp://www.coca-colacompany.com/our-company/mission-vision-valuesGoogle, WikipediaCOCA COLA COCA COLA

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