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THE COCA-COLA COMPANY

We are the world’s leading manufacturer, marketer, and distributor of non-


alcoholic beverage concentrates and syrups, which are used by a network of
bottling partners to produce more than 300 beverage brands. Our corporate
headquarters is in Atlanta, Ga., with operations in nearly 200 countries.
We serve local market preferences with a wide variety of beverages, spanning the
entire spectrum of tastes and serving occasions. Understanding the local culture –
including preferences in work, recreation, and relaxation activities – is essential for
developing sustainable global business growth.
In addition to providing top-quality beverages, we contribute to communities
around the world through our commitments to education, health, wellness, the
environment, and diversity. We strive to be a good neighbor – consistently shaping
our business decisions to improve the quality of life in the
communities where we do business.

History

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The world's most recognized trademark in the World!
It is recognized by 94% of the world's population.
The world has changed in many ways since pharmacist, John Styth Pemberton first
introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. However, the
pure and simple magic of one thing remains the same - Coca-Cola. The name and
the product mean so many things to hundreds of millions of consumers around the
globe. Coca-Cola products are served more than 705 million times every day,
quenching the thirsts of consumers in more than 195 countries in every climate.
That's a long way to come after such a modest beginning...

May - Pemberton concocted a caramel-colored syrup in a three-legged brass


1886 kettle in his backyard. He first "distributed" the new product by carrying
Coca-Cola in a jug down the street to Jacobs Pharmacy. For five cents,
consumers could enjoy a glass of Coca-Cola at the soda fountain. Whether
by design or accident, carbonated water was teamed with the new syrup,
producing a drink that was proclaimed "Delicious and Refreshing." Dr.
Pemberton's partner and bookkeeper, Frank M. Robinson, suggested the
name and penned, in the unique flowing script that is famous worldwide
today, " ".
1886 - Sales of Coca-Cola averaged nine drinks per day. That first year, Dr.
Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs.
Red has been a distinctive color associated with the No. 1 soft drink brand
ever since.
1891 - Atlanta entrepreneur Asa G. Candler had acquired complete ownership of
the Coca-Cola business. Pemberton was forced to sell because he was in a
state of poor health and was in debt. He had paid $76.96 for advertising,
but he only made $50.00 in profits. Candler acquired the whole company
for $2,300. Within four years, Candler's merchandising flair helped expand
consumption of Coca-Cola to every state and territory.
1893 - In January "Coca-Cola" was registered in the U.S. Patent office.
1894 - The first syrup plant outside of Atlanta was opened in Dallas.
1899 - Chandler's great achievement -- large scale bottling of Coca-Cola
1906 - The first two countries outside the United States to bottle Coca-Cola were
Cuba and Panama

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1915 - The Root Glass company created the Coca-Cola contour glass bottle.
1917 - 3 Million Coke's sold per day. " " is the worlds most recognized
trademark.
1919 - The Coca-Cola Company was sold to a group of investors for $25
million.
1923 - The Coca-Cola Company was sold after the Prohibition Era to Ernest
Woodruff for 25 million dollars. He gave Coca-Cola to his son, Robert
Woodruff, who would be president for six decades.
Woodruff's leadership took the business to unrivaled heights of commercial
success, making Coca-Cola an institution the world over. Woodruff was an
influential man in Atlanta because of his contributions to area colleges,
universities, businesses and organizations. When he made a contribution, he would
never leave his name, this is how he became to be known as "Mr. Anonymous."
During the Woodruff era, Mr. Woodruff made a promise to the armed forces of
the United States to supply Coca-Cola to every serviceperson. He said that costs
and location did not matter, he supplied 5 billion bottles to the service.
Robert Woodruff did have one dubious distinction, he raised the syrup prices for
distributors. But he improved efficiency at every step of the manufacturing
process. Woodruff also increased productivity by improving the sales department,
emphasizing quality control, and beginning large-scale advertising and
promotional campaigns. Woodruff made Coke available in every state of the
Union through the soda fountain. For all of these achievements he earned the
name, "The Boss"
1923 - Woodruff introduced the six bottle carton
1925 - 6 Million Coke's sold per day.
1927 - The first Coca-Cola radio advertisement.
1928 - Sales of bottled Coca-Cola surpassed fountain sales for the first time.
1929 - Coca-Cola was made available through vending machine
- The Coca-Cola bell glass was made available
1931 - The Coke Santa was introduced as a Christmas promotion
1934 Johnny Weissmuller, and Olympic champion swimmer, and Maureen
O'Sullivan, a motion-picture star, appeared on a metal serving tray for
Coca-Cola.
1940 - Coke is bottled in over 40 countries.

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1943 On June 29, an urgent cablegram arrived from General Dwight
Eisenhower's Allied Headquarters in North Africa, requesting 10 Coca-
Cola bottling plants to serve American servicemen overseas. Eventually,
64 plants were set up during WWII.
1950 - Advertising on on the television began. Currently Coca-Cola is advertised
on over five hundred TV channels around the world.
1952 - "The Big Beverage", the first novel about Coca-Cola, was written by
William T. Campbell.
1960 - The twelve ounce Coke can was introduced.
1961 - Sprite was introduced.
1971 - The song "I'd like to Buy the World a Coke" was released.
1977 - The Coca-Cola contour bottle was patented
1978 - The two liter bottle was introduced, and during that same year the
company also introduced plastic bottles
1979 - Fifteen hundred employees moved to the new corporate headquarters in
Atlanta located on North Avenue. The new corporate headquarters came to
be known as "The Tower."
1982 - Diet Coke was introduced in July.
1985 - The Coca-Cola Company made what has been known as one of the
biggest marketing blunder. They stumbled onto a new formula in efforts to
produce diet Coke. They put forth 4 million dollars of research to come up
with the new formula.
The decision to change their formula and pull the old Coke off the market came
about because taste tests showed a distinct preference for the new formula. The
new formula was a sweeter variation with less tang, it was also slightly smoother.
Robert Woodruff's death was a large contributor to the change because he stated
that he would never change Coca-Cola's formula. Another factor that influenced
the change was that Coke's market share fell 2.5 percent in four years. Each
percentage point lost or gain meant 200 million dollars. This was the first flavor
change since the existence of the Coca-Cola company. The change was
announced April 23, 1985 at the Vivian Beaumont Theater at the Lincoln Center.
Some two hundred TV and newspaper reporters attended this very glitzy
announcement. It included a question and answer session, and a history of Coca-
Cola. The debut was accompanied by an advertising campaign that revived the
Coca-Cola theme song of the early 1970s, "I'd Like to Buy the World a Coke"

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The change to the world's best selling soft drink was heard by 81 percent of the
United States population within twenty-four hours of the announcement. Within a
week of the change, one thousand calls a day were flooding the company's eight
hundred number. Most of the callers were shocked and/or outraged, many said that
they were considering switching to Pepsi. Within six weeks, the eight hundred
number was being jammed by six thousand calls a day. The company also fielded
over forty thousand letters, which were all answered and each person got a coupon
for the new Coke. Many American consumers of Coca-Cola asked if they would
have the final say. When Pepsi heard that the Coca-Cola company was changing
its secret formula they said that it was a decision that Pepsi tastes better. Roger
Enrico, the president and CEO of Pepsi-Cola wrote a letter to every major
newspaper in the U.S. to declare the victory.
Coca-Cola management had to decide: Do nothing or "buy the world a new
Coke". They decided to develop the new formula.

1985 - July 10, eighty-seven days after the new Coke was introduced, the old
Coke was brought back in addition to the new one. This was greatly due
to dropping market share and consumer protest. The market share fell from
a high of 15 percent to a low of 1.4 percent. This was said to be a classic
marketing retreat. Coca-Cola executives admitted that they had goofed by
taking the old Coke off the market. The Coca-Cola company's eight
hundred number received eighteen thousand calls of gratitude. One caller
said they felt like a lost friend had returned home. The comeback of old
Coke drove stock prices to the highest level in twelve years. This was said
to be the only way to regain the lead on the cola wars.
1988 - Coca-Cola was the first independent operator in the Soviet Union.
1993 - Coca-Cola exceeds 10 Billion cases sold worldwide.
1993 - Advertising slogan -"Always Coca-Cola".
1995 - Coke was consumed aboard the Space Shuttle Discovery -- marking the
third trip into space for Coca-Cola and the first for Diet Coke.
1996 - The Summer Olympics will be held in Atlanta, Georgia, the home of
Coca-Cola.
For more than 65 years, Coca-Cola has been a sponsor of the Olympics.

One great earmark that the Coca-Cola Company has is helping the people of
Atlanta. They accomplish this through scholarships, hotlines, donations and
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contributions. Another large accomplishment that the Coca-Cola has, is being the
first company to make and use recycled plastic bottles. One way to see all of the
achievements of the Coca-Cola company is to visit the World of Coke in Atlanta.
It houses a collection of memorabilia, samples of the products, exhibits, and many
other exciting items. All of what has been said is the basis of what Coca-Cola was
built on. Without societies help, Coca-Cola could not have become over a 50
billion dollar business. Keep on consuming the world's favorite soft drink, Coca-
Cola.

Until the 1960s, both small town and big city dwellers enjoyed carbonated
beverages at the local soda fountain or ice cream saloon. Often housed in the drug
store, the soda fountain counter served as a meeting place for people of all ages.
Often combined with lunch counters, the soda fountain declined in popularity as
commercial ice cream, bottled soft drinks, and fast food restaurants came to the
fore.

• The term "soda water" was first coined in 1798.


• In 1810, the first U.S. patent was issued for the manufacture of imitation
mineral waters.
• The first soda fountain patent was granted to Samuel Fahnestock in 1819.
• In 1858, G.D. Dows invented and operated the first marble soda fountain,
which he patented in 1863.
• In 1883, James W. Tufts patented a soda fountain, which he called the
Arctic. Tufts went on to become a huge soda fountain manufacturer.
• On January 25, 1870, Gustavus Dows patented a modern form of the soda
fountain.
• In October of 1874, Robert M. Green created the first ice cream soda.
• In 1903, a revolution in soda fountain design took place with the front
service fountain patented by Dr. Heisinger.

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More fun facts and trivia
• Coca-Cola can be used to bake a ham. Pour one can into the baking pan,
rap the ham in aluminum foil, and bake. Thirty minutes before the ham has
finished cooking, remove the foil, allowing the drippings to mix with the
Coca-Cola to make a delicious brown gravy.
• Mexico and Iceland have the highest per capita consumption of Coca-Cola.
• Coca-Cola translated to Chinese means, "To make mouth happy".
• Every second over 7,000 Coca-Cola products are consumed.
• The tallest Coca-Cola bottling plants are in Hong Kong. The plant in Quarry
Bay is 17 floors, and the plant in Shatin is 25 floors.
• The bottling plant at the highest elevation in the world is located in Bolivia,
at 12,000 feet.
• The world's longest Coca-Cola truck is in Sweden. It is 79 feet long with a
four-azle trailer.
• The best selling non-carbonated soft drink in Japan is a product of The
Coca-Cola Company named "Georgia", a coffee flavored beverage.
• Coca-Cola first crossed the Atlantic on board the Graf Zeppelin, the German
dirigible.
• The Varsity Restaurant in Atlanta, Georgia, has earned the distinction of
serving the highest volume of Coca-Cola anywhere. It dispenses nearly 3
million servings of Coca-Cola annually.
• If the Coca-Cola company constructed a sign like the ones McDonald's uses
to count their millions of customers, by 1983 it would have read "over 1
trillion served."
• If all the Coca-Cola ...
o ever produced were in 6 1/2 oz. bottles and placed end to end
they would wrap around the earth more than 11,863 times.
o sold in 1994 were in 8-ounce bottles laid end-to-end, those
bottles would reach to the moon and back 76 times.

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o vending machines in the U.S. were stacked one on top of each
other, the pile would be over 450 miles high.
o ever produced were to erupt from "Old Faithful" at its normal
rate of 14,000 gallons per hour, the geyser would flow continually for 1,577
years.
o products sold in 1994 were flowing over Niagara Falls at its
normal rate of 1.5 billion gallons per second, the falls would flow for three
hours.
The Coca-Cola Company began bottling operations in ...
... 1907 in Hawaii.
... 1912 in the Philippines.
... 1920 in France.
... 1927 in Belgium, Bermuda, Colombia, Honduras, Italy, Mexico, Haiti and
Burma.
... 1928 in Antigua, China, Guatemala, Holland, Spain, Venezuela, and the
Dominican Republic.
... 1929 in Germany and Spanish Morocco.
... 1938 Australia, Austria, Gutana, Surinam, Jamaica, Curacao, Luxembourg,
Norway, Scotland, South Africa, The Virgin Islands, and Trinidad.
... 1940 in Ecuador, and El Salvador.
... 1942 in Nicaragua, Argentina, Brazil, Costa Rica, Iceland, and Uruguay.
... 1945 in Egypt, and Martinique
... 1946 in Barbados, Japan, and Okinawa
... 1947 in Morocco and Tangier
... 1948 in Liberia, Rhodesia, and Guadeloupe

What's in a Coke???

• Carbonated Water
• High Fructose Corn Syrup
• Caramel Color
• Phosphoric Acid
• Natural Flavors

• Caffeine

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THE QUALITY EVOLUTION
Coca-Cola debuted at the soda fountain of Jacob’s Pharmacy in Atlanta in 1886.
The world was introduced to Coca-Cola in glass bottles in 1899. In 1916, multiple
bottle designs were unified to the now-universal y recognized contour shape. And
that’s how ur business remained through 1955 – one
product, available at soda fountains and in glass bottles.Gradual y, The Coca-Cola
Company
diversified its family of brands. By the 1980s, the Company
added powerful brand extensions such as Diet Coke, Cherry
Coke, and caffeine free Coke. In the 1990s.

PRODUCTS:
There are different brands of the Coca Cola Company, which
are currently in use throughout the world. This company not
only deals in the carbonated drinks but also other drinks. While launching its
product, the marketing team considers the culture of the country.

Major brands of coca cola

• Coke
• Sprite
• Fanta
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• Diet coke
• Coke classic

Ingredients
• Carbonated water
• Sugar (sucrose or fructose depending on country of origin)
• Caffeine
• Phosphoric acid v. Caramel (E150d)
• Natural flavourings

A can of Coca-Cola (330 millilitres (12 imp fl oz; 11 US fl oz)) contains 35 grams
(1.2 oz), or 7-8 teaspoons, of sugar.

Bottles of Coca-Cola Zero and Coca-Cola Light

Formula of natural flavorings


The exact formula of Coca-Cola's natural flavourings (but not its other ingredients
which are listed on the side of the bottle or can) is a famous trade secret. The
original copy of the formula is held in SunTrust Bank's main vault in Atlanta. Its
predecessor, the Trust Company, was the underwriter for the Coca-Cola
Company's initial public offering in 1919. A popular myth states that only two
executives have access to the formula, with each executive having only half the
formula.The truth is that while Coca-Cola does have a rule restricting access to
only two executives, each knows the entire formula and others, in addition to the
prescribed duo, have known the formulation process.

Franchised production model


The actual production and distribution of Coca-Cola follows a franchising model.
The Coca-Cola Company only produces a syrup concentrate, which it sells to
bottlers throughout the world, who hold Coca-Cola franchises for one or more
geographical areas. The bottlers produce the final drink by mixing the syrup with
filtered water and sweeteners, and then carbonate it before putting it in cans and

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bottles, which the bottlers then sell and distribute to retail stores, vending
machines, restaurants and food service distributors.

The Coca-Cola Company owns minority shares in some


of its largest franchises, like Coca-Cola Enterprises,
Coca-Cola Amatil, Coca-Cola Hellenic Bottling
Company (CCHBC) and Coca-Cola FEMSA, but fully
independent bottlers produce almost half of the volume
sold in the world. Independent bottlers are allowed to
sweeten the drink according to local tastes.

Logo design
The famous Coca-Cola logo was created by John Pemberton's
bookkeeper, Frank Mason Robinson, in 1885. Robinson came up
with the name and chose the logo's distinctive cursive script. The
typeface used, known as Spencerian script, was developed in the
mid 19th century and was the dominant form of formal handwriting
in the United States during that period.

Robinson also played a significant role in early Coca-Cola


advertising. His promotional suggestions to Pemberton included giving away
thousands of free drink coupons and plastering the city of Atlanta with publicity
banners and streetcar signs.

Contour bottle design


The equally famous Coca-Cola bottle, called the "contour bottle" within the
company, but known to some as the "hobble skirt" bottle, was created in 1915 by
bottle designer Earl R. Dean. In 1915, the Coca-Cola Company launched a
competition among its bottle suppliers to create a new bottle for the beverage that

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would distinguish it from other beverage bottles, "a bottle which a person could
recognize even if they felt it in the dark, and so shaped that, even if
broken, a person could tell at a glance what it was."

Chapman J. Root, president of the Root Glass Company, turned the


project over to members of his supervisory staff, including company
auditor T. Clyde Edwards, plant superintendent Alexander
Samuelsson, and Earl R. Dean, bottle designer and supervisor of the
bottle molding room. Root and his subordinates decided to base the
bottle's design on one of the soda's two ingredients, the coca leaf or
the kola nut, but were unaware of what either ingredient looked like. Dean and
Edwards went to the Emeline Fairbanks Memorial Library and were unable to find
any information about coca or kola. Instead, Dean was inspired by a picture of the
gourd-shaped cocoa pod in the Encyclopedia Britannica. Dean made a rough
sketch of the pod and returned back to the plant to show Mr. Root. He explained to

Root how he could transform the shape of the pod into a bottle. Chapman Root
gave Dean his approval.

Faced with the upcoming scheduled maintenance of the mold-making machinery,


over the next 24 hours Dean sketched out a concept drawing which was approved
by Root the next morning. Dean then proceeded to create a bottle mold and
produced a small number of bottles before the glass-molding machinery was turned
off.

Chapman Root approved the prototype bottle and a design patent was issued on the
bottle in November, 1915. The prototype never made it to production since its
middle diameter was larger than its base, making it unstable on conveyor belts.
Dean resolved this issue by decreasing the bottle's middle diameter. During the
1916 bottler's convention, Dean's contour bottle was chosen over other entries and
was on the market the same year. By 1920, the contour bottle became the standard

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for the Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the
most recognized packages on the planet..."even in the dark!".

As a reward for his efforts, Dean was offered a choice between a $500 bonus or a
lifetime job at the Root Glass Company. He chose the lifetime job and kept it until
the Owens-Illinois Glass Company bought out the Root Glass Company in the
mid-1930s. Dean went on to work in other Midwestern glass factories.

Although endorsed by some, this version of events is not considered authoritative


by many who consider it implausible. One alternative depiction has Raymond
Loewy as the inventor of the unique design, but, while Loewy did serve as a
designer of Coke cans and bottles in later years, he was in the French Army the
year the bottle was invented and did not immigrate to the United States until 1919.
Others have attributed inspiration for the design not to the cocoa pod, but to a
Victorian hooped dress.

In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California


took advantage of a case involving a waitress injured by an exploding Coca-Cola
bottle to articulate the doctrine of strict liability for defective products. Traynor's
concurring opinion in Escola v. Coca-Cola Bottling Co. is widely recognized as a
landmark case in U.S. law today.

In 1997, Coca-Cola also introduced a "contour can," similar in shape to its famous
bottle, on a few test markets, including Terre Haute, Indiana. The new can has
never been widely released.

A new slim and tall can began to appear in Australia as of December 20, 2006,
which costs an average of AU$2. The cans have a distinct resemblance to energy
drinks that are popular with teenagers. It is unknown if the design is of limited
edition or may soon replace the current 355 mL cans that have been used in the
past (the new slim cans are 300 mL, making the volume-to-cost ratio even smaller).

In January 2007, Coca-Cola Canada changed "Coca-Cola Classic" labeling,


removing the "Classic" designation, leaving only "Coca-Cola." Coca-Cola stated
this is merely a name change and the product remains the same. The cans still bear
the "Classic" logo in the United States.

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Coca-Cola is a registered trademark in most countries.
The U.S. trademark was registered in the United States
Patent Office on January 31, 1893. In the UK, Coca-
Cola was registered with the UK Patent Office on July
11, 1922, under registration number 427817.

In 2007, Coca-Cola introduced an aluminum can


designed to look like the original glass Coca-Cola
bottles.

In 2007, the company's logo on cans and bottles


changed. The cans and bottles retained the red color and
familiar typeface, but the design was simplified, leaving only the logo and a plain
white swirl (the "dynamic ribbon").

In 2008, in some parts of the world, the plastic bottles for all Coke varieties
(including the larger 1.25- and 2-liter bottles) was changed to include a new plastic
screw cap and a contoured bottle shape designed to evoke the old glass bottles.

What's in ?

Nutritional Information and ingredient list for various Coca-Cola products!

Coca-Cola Classic
%
Amount
RDA Ingredients
Calories 140 • Carbonated Water

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Fat 0g 0% • High Fructose Corn Syrup
• Caramel Color
Sodium 50mg 2%
• Phosphoric Acid
Carbohydrates 39g 13% • Natural Flavors
Sugar 39g
• Caffeine
Protein 0g 0%

Nutritional Information

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Minute Maid Orange
Amount % RDA Ingredients
Calories 170 • Carbonated Water
• High Fructose Corn Syrup
Fat 0g 0%
• Caramel Color
Sodium 35mg 1% • Phosphoric Acid
• Natural Flavors
Carbohydrates 47g 16% • Caffeine
Sugar 47g • Citric Acid
• Acacia
Protein 0g 0% • Potassium Benzoate
• Glycerol Ester of Wood Rosin
• Yellow #6
• Brominated Vegetable Oil

• Red 48

Sprite

Amount % RDA Ingredients

Calories 140 • Carbonated Water


• High Fructose Corn Syrup
Fat 0g 0%
• Caramel Color
Sodium 70mg 3% • Phosphoric Acid
• Natural Flavors
Carbohydrates 38g 13% • Citric Acid
Sugar 38g • Sodium Citrate
Protein 0g 0% • Sodium Benzoate

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Mr. Pibb
Amount % RDA Ingredients
Calories 140 • Carbonated Water
• High Fructose Corn Syrup
Fat 0g 0%
• Caramel Color
Sodium 45mg 2% • Phosphoric Acid
• Natural Flavors
Carbohydrates 39g 13% • Caffeine
Sugar 39g • Potassium Benzoate
• Monosodium phosphate
Protein 0g
• Lactic Acid.

The caffeine free versions of the above are identical, minus the caffeine.

All information given is for a serving size of 12 oz.

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MARKETING STRATEGY
Our local marketing strategy enables Coke to listen to all the voices around the
world asking for beverages that span the entire spectrum of tastes and occasions.
What people want 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 a refreshing Coca-Cola, a woman in Italy
taking a tea break, a child in Peru asking for a juice drink, 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 communities around the
world through our commitments to education, health, wellness, and diversity. Coke
strives to be a good neighbor, consistently shaping our business decisions to
improve the quality of life in the communities in which we do business. It's a
special thing to have billions of friends around the world, and we never forget it.

PRICE STRATEGY

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Price is a very important part of the marketing mix as it can effect both the supply
and demand for Coca Cola. The price of Coca Cola’s products is one of the most
important factors in a customer’s decision to buy. Price will often be the difference
that will push a customer to buy our product over another, as long as most things
are fairly similar. For this reason pricing policies need to be designed with
consumers and external influences in mind, in order to effectively achieve a stable
balance between sales and covering the production costs.

Price strategies are important to Coca Cola because the price determines the
amount of sales and profit per unit sold. Businesses have to set a price that is
attractive to their customers and provides the business with a good level of profit.
Long before a sale was ever made Coca Cola had developed a forecast of consumer
demand at different prices which inevitably determined whether or not the product
came on the market, as well as the allocation of adequate money and resources to
produce, promote and distribute the product.

Pricing Strategies And Tactics


The pricing Strategy a business will use will have to focus on achieving the
marketing plan’s objectives and support the positioning of the product, and take
external factors such as economic conditions and competitors in to account. There
are 5 strategies available to business: Market skimming pricing, Penetration
pricing, Loss leaders, Price Points and Discounts. Over the years Coca Cola has
used Penetration Pricing as a way of grabbing a foothold in the market and won a
market share. It’s product penetrated the marketplace. Once customer loyalty is
established as seen with Coca Cola it is then able to slowly raise the price of its
product. There has been a fierce pricing rivalry between Coca Cola and Pepsi
products as each company competes for customer recognition and satisfaction. Till
now it appears as if Coke has come up on top, although in order to gain long term
profits Coke had to sacrifise short term profits where in some cases it either went
under of just broke even, but as seen it has been all for the best.
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Pricing Methods

Good pricing decisions are based on an analysis of what target customers


expect to pay, and what they perceive as good quality. If the price is too high,
consumers will spend their money on other goods and services. If the price is too
low, the firm can lose money and go out of business.

Pricing methods include: Cost based Pricing, Market based pricing and
Competition based Pricing. Over the years Coca has lost ground here in it’s pricing
but has regained it’s strength as it employed the Competition-based pricing method
which allowed it to compete more effectively in the soft drink market. Leader
follower pricing occurs when there is one quite powerful business in the market
which is thought to be the market leader. The business will tend to have a larger
market share, loyal customers and some technological edge, thus the case currently
with Coke, it was first the follower but through effective management has now
become the leader of the market and is working towards achieving the marketing
objectives of the Coca Cola. Survival in the market place, own 60 % of market
share by 2007, increase further awareness of product and a return on 20% on
capital employed for August 2007.

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 that’s 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 stores.
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


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Some 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 they reduce the prices of their pet bottles or 1 litter glass bottle.

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PROMOTION STRATEGIES

In today’s competitive environment , having the right product at the right place in
the right place at the right time may still not be enough to be successful. Effective
communication with the target market is essential for the success of the product
and business. Promotion is the p of the marketing mix designed to inform the
marketplace about who you are, how good your product is and where they can buy
it. Promotion is also used to persuade the customers to try a new product, or buy
more of an old product.

The promotional mix is the combination of personal selling, advertising,


sales promotion and public relations that it uses in its marketing plan. Above the
line promotions refers to mainstream media:Advertising through common media
such as television, radio, transport, and billboards and in newspapers and
magazines. Because most of the target is most likely to be exposed to media such
as television, radio and magazines, Coca Cola has used this as the main form of
promotion for extensive range of products. Although advertising is usually very
expensive, it is the most effective way of reminding and exposing potential
customers to Coca Cola Products. Coca Cola also utilizes below the line
promotions such as contests, coupons, and free samples. These activities are an
effective way of getting people to give your product a go.

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.

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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 school’s cafes and
sponsors their sports events and other extra curriculum activities for getting market
share.

UTC Scheme
UTC 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. This scheme is very much popular among children.

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DISTRIBUTION CHANNELS

Place and Distribution:

The place P of the marketing mix refers to distribution of the product- the
ways of getting the product to the market.The distribution of products starts with
the producer and ends with the consumer.

One key element of the “Place/Distribution” aspect is the respective distribution


channels that Coca Cola has elected to transport and sell its product.

Selecting the most appropriate distribution channel is important, as the choice will
determine sales levels and costs. The choice for a distribution channel for any
business depends on numerous factors, these include:

• How far away the customers are;

• The type of product being transported;

• The lead times required; and;

• The costs associated with transport;

There are four types of distribution strategies that Coca Cola could have chosen
from, these are: intensive, selective, exclusive and direct distribution. It is apparent
from the popularity of the Coca Cola’s product on the market that the business in
the past used the method of intensive distribution as the product is available at
every possible outlet. From supermarkets to service stations to your local corner
shop, anywhere you go you will find the Coca Cola products.

Physical Distribution Issues

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Coca Cola needs to consider a number of issues relating to the physical
distribution of its soft drink products. The five components of physical distribution
are, order processing, warehousing, materials handling, inventory control,
transportation. Coca Cola must further try to balance their operations with more
efficient distribution channels.

Order Processing- Coca Cola cannot delay their processes for consumer deliveries
(i.e. delivery to selling centers), as this is inefficient business functioning and is
portrays a flawed image of the product and overall business.

Warehousing and inventory control- warehousing of Coca Cola products is


necessary. Inventory control is another important aspect of distribution as
inventory makes up a large percentage of businesses assets. Choosing the correct
and desired inventory measure that Jackson’s sees as most effective is vital.
Jackson’s must remember though that there are factors involved with inventory
control that can hinder the products sales and customer perceptions (hazards,
distribution from storage facilities, etc…).

Materials handling- this deals with physically handling the product and using
machinery such as forklifts and conveyor belts. When holding products, then Coca
Cola has benefited from purchasing or renting respective machinery.

Transportation- transporting Coca Cola products is the one most important


components of physical distribution. Electing either to transport the sports drink by
air, rail, road or water depends on the market (i.e. global, or domestic?) and
depends on the associated costs. The most beneficial transportation method for
Coca Cola would be ROAD if the product were moved around from storage to the
cost centers.

Coca Cola Company makes two types of selling


Direct selling
Indirect selling

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Direct Selling
In 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 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.

Sales Volume
Coke determines its yearly budget through the sales volume. They first concentrate
on the thing is “what is the condition of their sales?” if the condition is good of
their sales then they definitely 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
getting profits with the high margin, then they definitely want to increase their
profits in the next coming year. Every organization runs on the basis of getting
high profits. No organization wants to face Loss in their business. To get profit is
the first priority of the Coke.

Target Volume:

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To run the business every industry has some targets, which they want to achieve in
a specific 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
given time period. When they succeed to achieve that target then they increase
their target volume in the next year.

Branding
It is often hard to say exactly why we buy one company’s product over
another. Companies such as Nike and Adidas spend large amounts of money trying
to win consumers away from their competitors who make products that are very
similar. The popularity of the brand is often the deciding factor. Over the time
Coca Cola has spent millions of dollars developing and promoting their brand
name, resulting in world wide recognition. 'Coca-Cola' is the most recognised
trademark, recognised by 94% of the world's population and is the most widely
recognised word after "OK". Coca Cola’s red and white colours and special writing
are all examples of world-wide trademarks.

There are a number of branding strategies: Generic brand strategy,


Individual brand strategy, Family brand strategy, Manufacturer’s brand strategy,
Private brand strategy and Hybrid brand strategy. Coca Cola utilizes the Individual
brand strategy as Coca Cola’s major products are given their own brand names e.g
Fanta, Sprite, Coca Cola etc although they maybe presented as different lines they
operate under the name of Coca Cola.

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Packaging
Packaging, which is not as highly perceived by businesses, is still an important
factor to examine in the marketing mix. Packaging protects the product during
transportation, while it sits in the shelf and during use by consumers, it promotes
the product and distinguishes it from the competition. Packaging can allow the
business to design promotional schemes, which can generate extra revenue and
advertisements. Coca-Cola has benefited from packaging the product with
incentives and endorsements on the labelling as a promotional strategy to increase
it’s volume of sales and revenue.

Situation Analysis
Market Analysis:

The market analysis investigates both the internal and external business
environment. It is vital that Coca cola carefully monitor both the internal and
external aspects regarding it’s business as both the internal and external
environment and their respective influences will be decisive traits in relation to
Coke’s success and survival in the soft drink industry.

Internal Business Environment

The internal business environment and its influence is that which is to some
extent within the business’s control. The main attributes in the internal
environment include efficiency in the production process, through management
skills and effective communication channels. To effectively control and monitor
the internal business environment, Coke must conduct continual appraisals of the

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business’s operations and readily act upon any factors, which cause inefficiencies
in any phase of the production and consumer process.

External Business Environment

The External business environment and its influences are usually powerful forces
that can affect a whole industry and, in fact, a whole economy. Changes in the
external environment will create opportunities or threats in the market place Coca
cola must be aware off. Fluctuations in the economy, changing customer attitudes
and values, and demographic patterns heavily influence the success of Coka Cola’s
products on the market and the reception they receive from the consumers.

Product Life cycle:

When referring to each and every product or service ever placed before the
consumer i.e. in the long term all the existing products and services are dead. For
e.g.:- Replacement of Ford Cortina ( a highly successful car) by Ford Sierra, the
replacement of sierra by the Ford Mondeo and the replacement of the old Mondeo
by the new Mondeo in 2001. So every product is born, grows, matures and dies. So
in the commercial market place products and services are created, launched and
withdrawn in a process known as Product Life Cycle.

To be able to market its product properly, a business must be aware of the


product life cycle of its product. The standard product life cycle tends to have five
phases: Development, Introduction, Growth, Maturity and Decline. Coca-Cola is
currently in the maturity stage, which is evidenced primarily by the fact that they
have a large, loyal group of stable customers.

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Furthermore, cost management, product differentiation and marketing have
become more important as growth slows and market share becomes the key
determinant of profitability. In foreign markets the product life cycle is in more of
a growth trend Coke's advantage in this area is mainly due to its establishment
strong branding and it is now able to use this area of stable profitability to
subsidize the domestic Cola Wars.

Insert the picture of the product lifecycle

Developing The Marketing Mix

The marketing mix is probably the most crucial stage of the marketing
planning process. This is where the marketing tactics for each product are
determined. The marketing mix refers to the combination of the four factors(price,
promotion, product, place) that make up the core of a business’s marketing
strategy. In this step of the marketing planning process, marketing mix must be
designed to satisfy the wants of target markets and achieve the marketing
objectives. The most successful businesses have continually monitored and
changed their marketing mix due to respective internal and external factors and
have monitored the external business environment in order to maximise their
marketing mix components.

Implementing, Monitoring And


Controlling
Financial Forecasts

Financial forecasts are predictions of future events relating strictly to expected


costs and revenue costs for future years. There are five major marketing
expenditures, which include research costs, product development costs, product
costs, promotion costs and distribution costs.

Sales force composite is the most logical method in forecasting revenue. This
involves estimates from individual salespeople to sell to work out a total for the

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whole business. Once these costs and revenues are forecasted, management can
then decide which combination of marketing mix strategies will deliver the most
sales revenue at the lowest cost.

Implementing

Implementation is the process of turning plans into actions, and involves all the
activities that put the marketing plan to work. Successful implementation depends
on how well the business blends its people, organisational structure and company
culture into a cohesive program that supports the marketing plan.

For its further success, Coca Cola must impose several key changes. Production
needs to be on time and meet the quota demanded from wholesalers. It must also
be efficient so as not to build inventory stocks and inventory prices. The marketing
needs to be motivated and knowledgeable about the product. The forms of
promotion such as advertising must be attracting and enticing to the target market
to get the greatest amount of exposure possible for the product. This will ensure the
success of the product in the stores. Distribution of the product must be efficient.
This problem has already been taken care of with convenient transport routes to
commercial areas and transport already being arranged.

Monitoring And Controlling

Monitoring and controlling allows the business to check for variance in the budget
and actual. This is important because it allows Coca Cola to take the necessary
actions to meet the marketing objectives. There are three tools Coca Cola should
use to monitor the marketing plan. They are the following:

i. Sales Analysis

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The sales analysis breaks down total business sales by market segments to identify
strengths and weaknesses in the different areas of sales. Sellers of Coca Cola
products vary from major retail supermarkets to small corner stores. This gives the
its products maximum exposure to customers at their convenience.

ii. Market Share Analysis

Market share analysis compares Coca Cola’s business sales performance with that
of its competitors. Coca Cola looks to increase its market share by over 60%. With
the changes Coca Cola is currently undergoing, they aim to regain an iron fist
control of the market. Target market various age groups and lifestyles from high
school students too universities, and male or female.

Marketing Profitability Analysis

This analysis looks at the cost side of marketing and the profitability of products,
sales territories, market segments and sales people. There are three ratios to
monitor marketing profitability; they are market research to sales, advertising to
sales and sales representatives to sales. The results of these three tools can help
Coca Cola determine any emerging trends, such as the need for a different product.
Comparing these results with actual results gives the business an idea on when to
change.

Market Research
When attempting to implement a new Marketing plan a business must address its
target market and conduct the relevant information to insure the new marketing
plan both differs from the old and is better for the business. When conducting
market research a business must first define the problem and then gather the
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appropriate information to solve the problem. There are 3 types of information a
business can gather to solve its problems.

• Exploratory Research which clarifies the problem an d searches for ways to


address it.

• Descriptive Research is used to measure and describe things like the market
potential for a product and characteristics of the target market.

• Casual Research is used to test a hypothesis about a cause and effect


relationship.

Coca Cola through its market research has addressed all three types of research
to define the problem raised by shareholders and gathered information to serve
their needs.

PROMISE OF COKE
The basic proposition of our business is simple, solid and timeless. When we bring
refreshment, value, joy and fun to our stakeholders, then we successfully nurture
and protect our brands, particularly Coca-Cola. That is the key to fulfilling our
ultimate obligation to provide consistently attractive returns to the owners of our
business.

TARGET MARKET

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

The soft drink market is very large, and the business cannot be “all things to all
people”, so it must choose which market segments have the greatest potential. The
target market is the group of customers on whom the business focuses attention.
The target market is where Coca Cola focuses its marketing efforts as it feels this is
where it will be most productive and successful. The target market for Coca cola is
very wide as it satisfy’s the needs for many different consumers, ranging from the
healthy diet consciousness through Diet Coke to the average human through its
best selling drink regular Coke. Most Coke products satisfy all age groups as it is
proven that most people of different age groups consume the Coca Cola product.
This market is relatively large and is open to both genders, thereby allowing
greater product diversification.

There are four broad ways which Coca Cola can segment its market:

-> Mass marketing

-> Concentrated marketing

-> Differentiated marketing

-> Niche marketing

The most apparent method used by Coca Cola is with no doubt the differentiated
marketing method as Coke satisfy’s a range of different markets. Diet coke
satisfy’s the weight consciousness, regular coke, sprite, fanta the average human,
coffee, iced tea etc. Each group of beverages satisfy a particular group of people
but majority the average human.

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MAJOR SEGMENTS
Major segments are basically those people who take this drink daily and those
areas where the demands is higher then the other areas. There are so many people
who take this drink daily and those people who take weekly and those who take
less often are always there as well. 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
three major factors which effects coke.

• Per capita income


• Competitors
• Weather

Per Capita Income

First 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 and tight in order to purchase things. So the disposable incomes of the
people are coming down. 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.

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

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Weather
Weather is the third major factor in effecting the Coke’s selling. This is
underdeveloped market so the coke’s consumption in summers is 60% and in
winters is 40%.

MAJOR CUSTOMERS NEED


First of all the majority don’t care that what they are going to have. In other words,
they don’t care before drinking that whether it is “Pepsi” or “coke”. They don’t
actually differentiate between these two brands in order to their tastes.

Consumers basically drink what they get.

They believe on “WHAT COLD THEY SOLD”

Consumer’s availability in brands is basically works like:

Push availability

Pull consumer’s demand.

For this reason Coca-Cola have provided their coolers and freezers in the market.
They have maximum number of coolers and freezers in the market. They provide
this infrastructure free of cost just to provide child coke to their customer, which
they want to be purchase.

Their salesman and mechanics regularly visit all the shops where coke has its
infrastructure to check that either it is in proper condition or not, if not then they
immediately change or repair it.

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MAJOR COMPETITORS
Consumers firstly decide that they are going to have
a soft drink. Then they compete brands with each
other. Like they compete Coke with Pepsi and
Sprite with 7up and team .So the major competitor
of Coke is Pepsi.

When they motivate to any other brand or on Coke


it’s in instinct basically that based on messages
derive certain feelings.

But Coca Cola thinks in a different way, they believe that RC Cola, new coming
AMRAT Cola, and all juices, even they take water and tea as their competitors.

THREATS FROM COMPETITORS


Threats are well planned. Price is the major threat. When price goes certain beyond
the exact 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 customer’s perception.

EXPANDING TARGET MARKET


In last 2 years Coke has come back in aggressive manner.

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• Consumer has choice
• Attractive brand name
• Brand differentiating

Consumer Has Got Choice


Now the consumer has got choice. Because now they know the name of another
big brand, though coke is the 2nd 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 most popular after the word “ok”. So people can better differentiate brands with
each other.

Brand Differentiation
Now different companies have got different brand names. So, people can
distinguish between brands. Two major brands “coke” and “Pepsi” also have brand
names.

Coca Cola’s Brand


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

Pepsi’s Brand

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Pepsi’s brand is basically is basically “ME” branded. They use the temperament of
“ME”. In contrast to Coke they believe on individual struggle.

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STRATEGIES OF GETTING GOALS I.E.
“HIGH PROFITS”
To increase the price is the least thing, which Coke can adopt. There are so many
ways through 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
product of coke. Through offering different flavors Coke can increase the Level of
consumers and through this profits can be gained.

When making decisions on products a business must look at factors that influence
consumer choice such as psychological factors, Sociocultural factors, Economic
factors and Government Factors.

Psychological Factors: such as motivation, perception, lifestyle, personality and


self concept, learning , and attitudes influence the consumers behaviour towards a
product and Coca Cola has addressed this issue by introducing Diet Coke to satisfy
different lifestyles.

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Sociocultural factors: such as culture, subculture, socio-economic status, family
and reference groups influence the consumers behaviour towards a product.

Economic factors: such as Disposable income and discretionary income. Coca Cola
has addressed this side of the influence by maintaining a low price on the price of
its products.

Government Factors: such as new regulations, inflation, interest rates all influence
consumer spending and choice.

How to take part in energetic festivals?

Coke is already taking part in the festival like “Basant”. Coke offers different
attractive things in their festival and through this Coke gained high profit and
consumption of coke increased on these occasions.

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Marketing Objectives
The objective is the starting point of the marketing plan. Objectives should seek to
answer the question 'Where do we want to go?'. The purposes of objectives
include:

• to enable a company to control its marketing plan.

• to help to motivate individuals and teams to reach a common goal.

• to provide an agreed, consistent focus for all functions of an organization.

All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic,


and Timed.

Specific - Be precise about what you are going to achieve

Measurable - Quantify you objectives

Achievable - Are you attempting too much?

Realistic - Do you have the resource to make the objective happen (men, money,
machines, materials, minutes)?

Timed - State when you will achieve the objective (within a month? By February
2010?)

1.Market Share Objectives:

To gain 60% of the market for soft drink industry by September 2007.
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2.Profitability Objectives:

To achieve a 20% return on capital employed by August 2007

3. Promotional Objectives

To increase awareness of the product on the market.

4. Objectives for Survival

To survive the current market war between competitors.

5. Objectives for Growth

To increase the size of the worldwide Coca Cola enterprise by 10% .

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SWOT Analysis:
SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a
technique much used in many general management as well as marketing scenarios.
SWOT consists of examining the current activities of the organisation- its
Strengths and Weakness- and then using this and external research data to set out
the Opportunities and Threats that exist.

Strengths:
Coca-Cola has been a complex part of world culture for a very long time. The
product's image is loaded with over-romanticizing, and this is an image many
people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts,
hats, and collectible memorabilia. This extremely recognizable branding is one of
Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a day around
the world Coca-Cola stands as a simple, yet powerful symbol of quality and
enjoyment" (Allen, 1995).

Additionally, Coca-Cola's bottling system is one of their greatest strengths. It


allows them to conduct business on a global scale while at the same time maintain
a local approach. The bottling companies are locally owned and operated by
independent business people who are authorized to sell products of the Coca-Cola

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Company. Because Coke does not have outright ownership of its bottling network,
its main source of revenue is the sale of concentrate to its bottlers.

Weaknesses:
Weaknesses for any business need to be both minimised and monitored in order to
effectively achieve productivity and efficiency in their business’s activities, Coke
is no exception. Although domestic business as well as many international markets
are thriving (volumes in Latin America were up 12%), Coca-Cola has recently
reported some "declines in unit case volumes in Indonesia and Thailand due to
reduced consumer purchasing power." According to an article in Fortune
magazine, "In Japan, unit case sales fell 3% in the second quarter [of 1998]...scary
because while Japan generates around 5% of worldwide volume, it contributes
three times as much to profits. Latin America, Southeast Asia, and Japan account
for about 35% of Coke's volume and none of these markets are performing to
expectation.

Coca-Cola on the other side has effects on the teeth which is an issue for health
care. It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems. Being addicted to Coca-Cola also is a health problem, because
drinking of Coca-Cola daily has an effect on your body after few years.

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Opportunities:
Brand recognition is the significant factor affecting Coke's competitive position.
Coca-Cola's brand name is known well throughout 94% of the world today. The
primary concern over the past few years has been to get this name brand to be even
better known. Packaging changes have also affected sales and industry positioning,
but in general, the public has tended not to be affected by new products. Coca-
Cola's bottling system also allows the company to take advantage of infinite
growth opportunities around the world. This strategy gives Coke the opportunity to
service a large geographic, diverse area.

Threats:
Currently, the threat of new viable competitors in the carbonated soft drink
industry is not very substantial. The threat of substitutes, however, is a very real
threat. The soft drink industry is very strong, but consumers are not necessarily
married to it. Possible substitutes that continuously put pressure on both Pepsi and
Coke include tea, coffee, juices, milk, and hot chocolate. Even though Coca-Cola
and Pepsi control nearly 40% of the entire beverage market, the changing health-
consciousness of the market could have a serious affect. Of course, both Coke and
Pepsi have already diversified into these markets, allowing them to have further
significant market shares and offset any losses incurred due to fluctuations in the
market. Consumer buying power also represents a key threat in the industry. The
rivalry between Pepsi and Coke has produce a very slow moving industry in which
management must continuously respond to the changing attitudes and demands of
their consumers or face losing market share to the competition. Furthermore,
consumers can easily switch to other beverages with little cost or consequence.

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PESTAL ANALYSIS OF COCA-COLA
There are four variables, which we will discuss in our report, they are:

POLITICAL VARIABLES

Political variables Strongly Some what No Some what Strongly


Effected Effect Effected
Effected Effected
++ +− −−
+ −

Effects of government NE
regulations & deregulations

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Effect of environmental YES
protection laws if any

Import and export NE


regulations

Effect of political conditions NE


in certain countries of Coke

Any effect of election, YES


military take over,
Revolution at Coke

Conclusion Of Political Analysis:


As far as the above table is concerned it could be seen that there are very little
chances of “political variables” to effect the coke’s production and selling
behavior.

In the “political variables” most of the things are related to Governmental


activities. So, they don’t leave any good or bad impact in the Industry of coke.

And there are some exceptional things like: “environmental protection laws” they
some what effect the industry of Coke. From last two years Government is going to
be really very much conscious about the environment. But after making the
adjustments in plants and applying the proper way of wastage the chances of being
affected by the “protection laws” are going to be diminished. So it impact good for
the Coke’s reputation. And the second thing in political variables which effects
Coke is “elections & military take over” Because in the days of elections and
marshal law’s condition the countries production in any field is declined. So it
affects slightly the revolution of Coke.

So “political conditions” are over all leave neutral effects on coke’s industry.

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ECONOMICAL VARIABLES

Economical Variables Strongly Some what No Some what Strongly


Effected Effect Effected
Effected Effected
++ +− −−
+ −

Do soaring interest rates make YES


business task any harder

Any effect due to inflation YES

Anything done to reduce YES


unemployment

Any effect of 11th September NE


2001, incident at Coke in
Pakistan

Conclusion Of Economical Analysis


It could be seen that “economical variables” highly affects the Coke’s resolution.
Economic factors 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 its Price in this situation. Then it would impact
highly negative. And inflation is also not a good position for any country’s
production point of view. It also impacts highly negative in the Coke’s production.

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And as a country concerned like “Pakistan” where the unemployment rate is very
much high. The Coca-Cola system in Pakistan employs 1,800 people. During the
last 2 years, the Coca-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.

SOCIAL VARIABLES

Social variables Strongly Some what No Some what Strongly


Effected Effect Effected
Effected Effected
++ +− −−
+ −

Effects of advertisement of Coke YES


on Public popularity

How will do Coke’s contribution YES


affect charity organizations of
Pakistan

Has rising consciousness of YES


natural resources in people
effected your “save environment
activities.

CONCLUSION OF SOCIAL ANALYSIS


EDUCATION
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world.

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The Coca-Cola Company is committed to helping people make their dreams come
true. All over 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 to first generation scholars, educational
programs in local communities are our priority.

ENVIRONMENT
A large part or our relationship with the world around us is our relationship with
the physical world. 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 same spirit of
innovation comes alive in our environment programs. We’re committed to
preserving our environment, from use of more than $ 2 billion (U.S) a year in
recycling content and suppliers, and environment

Management initiatives, down to very local neighborhood collection and


beautification efforts. Here’s a sample of what we’re doing in different
communities around the world regarding the conservation of water and natural
resources, climate changes, waste environment education.
The Coca-Cola system in Pakistan operates through eight bottlers. Four of which
are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL).

COMMUNITY INVOLVEMENT:
In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system
initiated a 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 one employee from each plant, selected through a draw, to be
sent on the Holy Pilgrimage to Mecca at the Company’s expense.
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TECHNOLOGICAL VARIABLES
Technological variables Strongly Some what No Some what Strongly
Effected Effect Effected
Effected Effected
++ +− −−
+ −

Have business innovations YES


effectively promoted your
business

Has the government’s YES


regulations ever hindered in
importing technical
equipment

Does Coke help in YES


promoting paperless
environment

Conclusion Of Technological Analysis

Of course business innovation leaves highly good impacts in the business of Coke.
As coke use 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
coke’s 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,


because computers are the basic need of any person now a days. And though it’s a
big industry so it is promoting the trend of paperless environment. And it is giving
the way of other industries to come to new technologies and into a new world of

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business. Through computers coke can increase the efficiency of its business and
can have up –to-date data about their productions.

OVER ALL RESULTS OF PEST ANANYSIS


After our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited),
we came up with the very interesting report of facts and figures. Coca-Cola is no
doubt one of the most popular beverage company and its product COKE is one of
most consumed cola drink. They spend billion of dollars on their advertisement,
promotions and recreational campaign.

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 don’t want
to stop here!! Its target market is to achieve a much higher %age. Coca-Cola has
about 2000 employees at Pakistani plants. Lahore plant of Coca-Cola is one of the
beautiful plant in Asia, Situated on Raiwand 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.

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Mission, Vision & Values
The world is changing all around us. To continue to thrive as a business over the
next ten years and beyond, we must look ahead, understand the trends and forces
that will shape our business in the future and move swiftly to prepare for what's to
come. We must get ready for tomorrow today. That's what our 2020 Vision is all
about. It creates a long-term destination for our business and provides us with a
"Roadmap" for winning together with our bottler partners.

Our Mission

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.


Our Vision
Our 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.

• 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 create mutual, enduring value.
• Planet: Be a responsible citizen that makes a difference by helping build
and support sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful of
our overall responsibilities.

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

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Our Winning Culture
Our Winning Culture defines the attitudes and behaviors that will be required of us
to make our 2020 Vision a reality.

Live Our 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 future


• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, it's up to me
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands

• Quality: What we do, we do well


Focus on the Market

• Focus on needs of our consumers, customers and franchise partners


• Get out into the market and listen, observe and learn
• Possess a world view
• Focus on execution in the marketplace every day

•Be insatiably curious


Work Smart

• Act with urgency


• Remain responsive to change
• Have the courage to change course when needed
• Remain constructively discontent

• Work efficiently

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Act Like Owners

• Be accountable for our actions and inactions


• Steward system assets and focus on building value
• Reward our people for taking risks and finding better ways to solve
problems

• Learn from our outcomes -- what worked and what didn’t


Be the Brand

• Inspire creativity, passion, optimism and fun

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CONCLUSION:

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

So…

“ Jo chaho ho jaye coca-cola

enjoy ”

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