Project on Coca-Cola Company

Strategic Marketing

Submitted By: Submitted To:

Muhammad Mohsin Sir Muhammad Ali
20534 Department of management sciences
MBA Evening 3.5 years
 ACKNOWLEDGEMENT
My first and foremost humble and gratitude to “Allah” Almighty for
giving me strength and ability to make this project.

Apart from it I take the opportunity to acknowledge the real efforts of

Sir Muhammad Ali for his valuable support, encouragement and
untiring help at all time. It’s been a great experience working on Coca
Cola Company .It give me complete insight about how an organization
not only survives in cutthroat completion but also maintain a killer
instinct in the competitive world.

I would also like to thank all my class fellows for guiding me and
supporting me time by time.

Last but not least my greatest gratitude to my parents, without their

support this dream would have remained dream.

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 EXECUTIVE SUMMARY
This report has been prepared with a specific purpose in mind. It outlines the history and
current scenario of the Coca-Cola Company locally.

The report contains a brief introduction of Coca Cola Pakistan. Its vision, mission and core
values. A detailed view of the tasks, which have been undertaken to analyze the market of
Coca-Cola i.e. I have performed Competitive analysis of Coca-Cola Pakistan and presented the
BCG matrix for coca cola Pakistan in order to identify areas of potential growth for Coca-Cola. I
have also given a brief description of marketing mix for Coca Cola Company Pakistan.

The main objective of this project report is to analyze and study in efficient way the current
position of Coca- Cola Company in Pakistan. The study also aims to perform Market Analysis of
Coca-Cola Company & find out different factors effecting the growth of Coca-Cola. Another
objective of the study was to perform Competitive analysis between Coca-Cola and its
competitors. Apart from these objectives this study is also conducted to understand the
Customer preferences towards various Coca-Cola products.

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 Table of Contents
S.No. Topics Page No

1. Introduction 4

2. Vision, Mission, Core Values 4

3. Competitive Advantages 5

4. Competitors 6

5. BCG Matrix 7

6. Marketing Mix 7

7. Suggestions for Improvement 11

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Introduction:
The Coca-Cola Company is one of the largest manufacturers, distributors and marketers of nonalcoholic
beverages Coca-Cola was invented in 1886 The Coca-Cola Company offers nearly 400 brands in over 312
countries. Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines
throughout the world. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often
referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since
March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century
by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing
tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.

Vision:
Coca-Cola vision serves as the framework for their Roadmap and guides every aspect of our business by
describing what they 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.

Mission:
Coca-Cola’s Roadmap starts with their mission, which is enduring. It declares their purpose as a
company and serves as the standard against which they weigh their actions and decisions.

 To refresh the world...

 To inspire moments of optimism and happiness...
 To create value and make a difference.

Core Values:
Their values serve as a compass for their actions and describe how they behave in the world.

 Leadership: The courage to shape a better future

 Collaboration: Leverage collective genius

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  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

Competitive Advantage(s):
Market Leadership: Coca-Cola FEMSA is the largest franchise bottler of Coca-Cola trademark beverages
in the world, with operations in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia,
Venezuela, Argentina, Brazil and the Philippines.

Business partnerships: Coca-Cola FEMSA is working together with The Coca-Cola Company to develop
more advanced joint business models to continue exploring and participating in new lines of beverages,
extending existing product lines and effectively advertising and marketing our products. As partners, we
have a shared incentive to capture important growth opportunities in Latin America’s fast-growing, but
under-developed non-carbonated beverage segment, developing and expanding our still beverage
portfolio through innovation, strategic acquisitions and by entering into agreements to jointly acquire
companies with The Coca-Cola Company.

Strong brand portfolio: The Company offers a powerful and wide portfolio of beverages to its customers
and consumers, and continuously explores promising beverage categories to capture growth in its
different markets. To get closer to its customers and help them to satisfy consumers’ expanding needs,
Coca-Cola FEMSA has become a one-stop shop for its retailers by offering a complete beverage portfolio
- including carbonated soft drinks, bottled water, juices, orangeades, isotonic, teas, energy drinks, milk,
coffee and even beer in some markets such as Brazil.

Collaborative customer relationships: As an organization, Coca-Cola FEMSA continually looks to deepen

its customer relationships. Our company is working closely with its largest clients to develop stronger
multi-faceted relationships. Among the company’s initiatives, are tailoring its extensive portfolio of
products and packages for their stores - based on the local market’s socioeconomic demographics,
relevant consumption occasion and the store’s distinctive characteristics. We partner with our
customers on multiple fronts-from knowledge management and capabilities development to go-to-
market and point-of-sale execution-to ensure each and every shopper’s trip counts.

Channel Marketing: In order to provide more dynamic and specialized marketing of our products, our
strategy is to classify our markets and develop targeted efforts for each consumer segment or
distribution channel. Our principal channels are small retailers, "on-premise" consumption such as
restaurants and bars, supermarkets and third party distributors. Presence in these channels entails a
comprehensive and detailed analysis of the purchasing patterns and preferences of various groups of
beverage consumers in each of the different types of locations or distribution channels. In response to
this analysis, we tailor our product, price, packaging and distribution strategies to meet the particular
needs of and exploit the potential of each channel.

Multi-Segmentation: We have been implementing a multi-segmentation strategy in the majority of our

markets. This strategy consists of the implementation of different product/price/package portfolios by
market cluster or group. These clusters are defined based on consumption occasion, competitive
intensity and socio-economic levels, rather than solely on the types of distribution channels.

Flexible sales and distribution models: We use several sales and distribution models depending on
market, geographic conditions and the customer’s profile: (1) the pre-sale system, which separates the
sales and delivery functions, permitting trucks to be loaded with the mix of products that retailers have
previously ordered, thereby increasing both sales and distribution efficiency, (2) the conventional truck
route system, in which the person in charge of the delivery makes immediate sales from inventory
available on the truck, (3) a hybrid distribution system, where the same truck carries product available
for immediate sale and product previously ordered through the pre-sale system, (4) the telemarketing
system, which could be combined with pre-sales visits and (5) sales through third-party wholesalers of
our products.

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Full Operating Potential: More with less is a key part of the Coca-Cola FEMSA corporate culture. The
company continually seeks to optimize manufacturing and distribution capacity to maximize operating
efficiency, adapting its organizational processes to address changing competitive, economic, and
sociopolitical environments. In addition, we rely on state-of-the-art market intelligence systems that
enable the company to execute and refine its channel-marketing and multi-segmentation strategies,
consistent with customers’ and consumers’ purchasing patterns and preferences.

Managerial expertise: We focus on management quality as a key element of our growth strategy and
remain committed to fostering the development of quality management at all levels. Both FEMSA and
The Coca-Cola Company provide us with managerial experience. To build upon these skills, we also offer
management training programs designed to enhance our executives’ abilities and to provide a forum for
exchanging experiences, know-how and talent among an increasing number of multinational executives
from our new and existing territories.

Sustainable Development: Sustainable development is an important pillar of our Company’s strategy.

We continually develop programs that ensure the creation of social and economic value by fostering the
quality of life of our employees, promoting a culture of health and well-being, supporting our
surrounding communities and minimizing our operations’ environmental impact.

Competitors:
The competitors to the products of the company mainly lie in non-alcoholic beverage industry consisting
of juices and soft drinks.

The key competitors in the industry are as follows

 PepsiCo
 Nestle

PepsiCo:

The PepsiCo challenge (to archrival Coca-Cola) never loses its fizz for the
world's #2 carbonated soft drink maker. Its soft drink brands include Pepsi,
7up, Mirinda, Mountain Dew, and their diet alternatives. Cola is not the
company's only beverage: Pepsi sells Tropicana orange juice, and Aquafina
water. The company also owns Frito-Lay, the world's #1 snack maker with
offerings such as Lay’s, Doritos, and Cheetos in Pakistan.

PepsiCo Products in Pakistan:

 Pepsi
 7up
 Mirinda
 Diet Alternative drinks
 Tropicana Orange juice
 Aquafina

Nestle:

Nestle Company founded in 1866 by Henri Nestle in

Vevey, Switzerland, the company then expanded
globally. It has over 280,000 employees and has
different factories and sales operations all over the
world. More than 140 years the company is following
the principles of honesty, fairness and long-term
approach which make them to be able to stand in one of
the most competitive markets in the world.

Nestle Drinks & Juices in Pakistan:

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  Nestle pure life
 Nestea
 Milo
 Nestle Fruita Vitals

BCG Matrix:
Star Category:

 Minute Maid
 Fanta

The Minute Maid juices and the Fanta cola are the stars of Coca Cola Company. As Minute Maid juices
and Fanta cola have a big share in market but market growth rate is also high for such products.

Cash Cow Category:

 Coca cola
 Sprite

Coca cola and sprite are the cash cows of Coca Cola Company. These products are widely used all over
Pakistan and have a big market share and relative low growth rate industry.

Question Mark Category:

 Diet Coke
 Sprite Zero

The above Coca Cola Company products fall in question mark category because these products have less
market share but competing in a high growth market.

Dog Category:

 Nestea

Nestea is considered as the dog in BCG matrix because of its low market share in Pakistan market and
relative high growth market.

Marketing Mix of Coca Cola Company:

Product:

The Coca-Cola formula is The Coca-Cola Company's secret recipe for Coca-Cola. As a publicity marketing
strategy started by Robert W. Woodruff, the company presents the formula as one of the most closely
held trade secrets ever and only a few employees know or have access to. This Coca-Cola formula
appears to be the original formula to Coca-Cola.

The company Coca Cola is a multinational and it is not limited to one product. Through the years they
have invented and introduced many products than their main cola drinks. The list of Coca Cola brands
available in Pakistan are as follows

Coca-Cola:

Coca-Cola was created in Atlanta by Dr. John S. Pemberton, it was first offered as
a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola
is part of life's enjoyable moments with others, because Coca-Cola is the
authentic cola sensation that provides uplifting refreshment.

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Sprite:

Sprite is the world's leading lemon-lime flavored sparkling beverage and the
#2 Global brands for TCCC worldwide. With a strong appeal among young
adults, millions enjoy its crisp, clean taste.

Sprite is a perfectly clear lemon-lime sparkling beverage with 100% natural flavors and
no caffeine. Functional Benefits: A collision of lemon and lime that delivers a crisp,
clean taste. Emotional Benefits: To spark your true self.

Fanta:

The multi-sensory, fruity flavors of Fanta provide a bubbly, exuberant and

playful consumption experience.

Multi-sensory experience that inspires the exuberant spirit in all of us with

fruity, bubbly, and full-color magnified by all five senses; broad appeal across
African-American, Hispanic and Anglo-American ethnic groups.

Diet Alternatives:

Diet Coke & Sprite Zero:

Diet coke is a Diet Carbonated Cola. Diet Coke is the perfect refreshment
for people who want no calories, but plenty of taste.

Sprite zero is a Zero-calorie lemon-lime carbonated beverage. Lemon-

lime, zero-calorie Sprite Zero™ offers great taste that helps you keep your
cool.

Minute Maid Juices:

Minute Maid offers the refreshing goodness of 100% juice and a wide variety of juice drinks in shelf-
stable packaging.

Flavors available in Pakistan are

 Minute Maid Pulpy Orange

 Minute Maid Pulpy Tropical
 Minute Maid Pulpy Lemon

Nestea: Nestea is a brand of iced tea manufactured by Nestlé and

distributed by Nestlé Company’s beverage department in the United States
and by Beverage Partners Worldwide, a joint venture between The Coca-Cola
Company and Nestlé, in the rest of the world.

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Price:

The amount of money charged for a product or service. As price gives us the profit so this P is very
important for business. Price of the product should be that which gives maximum benefit to the
company and maximum benefit to the customer.

Coke was a company ruling the markets before Pepsi entered. Earlier the price of coke was cost based
i.e. it was decided on the cost which was spent on making the product plus the profit and other
expenses. But after the emergence of other companies especially the likes of Pepsi, Coca-Cola started
with a pricing strategy based on the basis of competition.

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

 The price should be set according to the public demand for product
 Price should be that which gives maximum revenue to the company
 Price should not be too high or too low than the price competitor is charging from their
customers, otherwise no one will buy the product
 Price must be keeping in view the company’s target market

Prices of different Bottles

Size of Coca Cola Price of Coca Cola (RS.)

Regular bottle 20

1.5 Liter Bottle 90

Disposable Bottle 40

Coca Cola Can 50

Different Pricing Strategies:

1. Competition based pricing approach:

Coca Cola is in intense competition with Pepsi so its pricing can’t exceed too much nor decrease too
much as compare to the price of Pepsi cola. If price of Coca Cola exceeds too much from Pepsi the
people will shift towards Pepsi cola and on the other hand if Coca Cola decreases its price too much
people might get impression that the quality is also low.

2. Promotional Pricing Policy:

Coca Cola offers promotional prices very frequently. Especially on some occasions like Ramadan the
Coca Cola reduces its price up to 5 or 10 rupees on 1.5 liter bottle.

3. Marketing Penetration Pricing Policy:

Price in the beverage industry is determined by the consumer. In an economy like Pakistan, consumers
tend to switch towards a low price product. Coca Cola’s objective is to target every consumer of the
country so Coca Cola has to set its price at such a level which no one can offer to its consumer. That is
the reason Coca Cola is charging the price as its competitors are charging. Otherwise, people may go for
Pepsi cola in case the Coca Cola products are available at a high price.

Place:

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.

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Coca cola is the world’s most favorite brand and is available all over the world. The distribution system
of coca cola follows the FMCG distribution pattern. The effective distribution network of coke has
almost destroyed the small and middle level players in the market.

Coca-Cola is Selling in mostly everywhere in the world, you can find all the favorite different brands of
Coca Cola in every big chain super market and in most little shops like corner shops.

Distribution Channels

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 different types of distribution strategies that Coca Cola could have chosen from. These
distribution strategies can be

 Intensive Distribution
 Selective Distribution
 Exclusive Distribution
 Direct Distribution

It is apparent from the popularity of the Coca Cola’s products in the market of Pakistan that the
company is using the intensive distribution as the products are 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.

Promotion:

In today’s competitive environment, having the right product 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 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.

Coca Cola Company uses the following promotional activities

 Advertisement
 Sales promotion

Advertisement:

Coca Cola Company advertises its products in Pakistan mainly through electronic media that include
television, Radio and internet as well. More over the leading newspapers of Pakistan are also targeted
by Coca Cola Company for its advertisement. So we can say it uses not only the electronic media but also
use the print media.

They often use the following mediums

 Print media
 TV Commercials
 Billboards

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Print Media:

The Coca Cola Company often uses the print media for advertisement of their products. They have
separate department for print media.

TV Commercials:

Now a days TV commercials are becoming the common way of advertisement. The Coca Cola Company
does regular commercials on different TV channels for its
products advertisement.

Billboards:

The Coca Cola Company is very much conscious about their

billboards and holdings. They have so many sites in all over
Pakistan for their billboards.

Sales Promotions:

The Coca Cola Company also does sponsorships with colleges, schools and universities’ cafes and
sponsors their sports events and other extra curriculum activities for getting the market share.

Suggestions for Improvement:

As no man in this world is a complete man and so are the companies. No company is perfect and has
space for improvements so as Coca-Cola Company too. Today’s world is a competitive world and the
companies must not forget that customers have different choices, if the consumers are not satisfied
with Coca Cola products they will switch to other competitor’s products like Pepsi.

Some of the areas where the Coca Cola Company needs improvement are as follows

Distribution network:

The Coca Cola Company has an average distribution network all over the Pakistan. This is one of the
reason why the company fails to fulfill the demand of the customer at time of peak seasons. It must go
for some more bottling plants and should opt for better distribution channels to increase the sales in the
best possible manner.

Pricing strategy:

The company has got a pricing strategy as there is no certainty of rising or fall of price during the peak
season. This also hamper the sales of the company as the retailers and distributor get dilemma whether
to place the next order or not as increase or decrease in price may hamper their profit margin and
blockage of the goods.

Significant focus on carbonated drinks:

The Coca Cola Company is still focusing on selling carbonated drinks like Coca Cola, Sprite Fanta etc. As
the world is moving towards consuming the healthier foods and drinks, the Coca Cola must focus on
some healthier drinks, it has limited range of such products like Minute Maid Juices range. The company
must focus on some Fresh fruit juices as Nestle is doing.

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