Page 1

A Project on marketing strategies of

Page 2

Submitted to: Sir Saeed Liaquat

Submitted by:
Tahir Raza (L) 7455 7489 7487 7458 7456 7456

Hafiz M.Usman Zia shafique Ammara Khalid Sadia zeenat Muzamil Akram

G C University of Faisalabad

Page 3

ACKNOWLEDGEMENT
First and foremost, we are grateful to ALLAH ALMIGHTY, most beneficent and the most merciful Who made us able to complete our given project successfully. We would also like to pay tribute to the benefactor of humanity HOLY PROPHET (P.B.U.H.), Who gave us complete knowledge on every aspect and field of life. In short of words, to express our modest gratitude and recognition to cuddly and loveable PARENTS, who at each and every moment prays for our success. We are also deeply thankful to our TEACHERS to have taught us from childhood to still especially SIR. SAEED LIAQUAT, who taught us Marketing.

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

Page 4

DEDICATION
We dedicate this report to our parents and friends in recognition of their worth and to our teachers who are the guiding force for us and it is their effort and hard work that showed us the path of success and prosperity which would be there for us for the rest of our life. Our thanks to all those who have generously contributed their theoretical knowledge to this report including our teachers. Without their understanding and support, completion of this work would not have been possible. We hope people find this report useful and the subject matter adds to their knowledge. Keep your dreams alive. Understand to achieve anything requires faith and belief in yourself, vision, hard work, determination, and dedication. Remember all things are possible for those who believe. Merlin Olsen

Page 5

TABLE OF CONTENTS Page #

Executive Summary Introduction History of coca cola History of Bottling Popular slogans Production Vision Statement Mission Statement Marketing Organizational Hierarchy of Coca Cola Business model Region wise Consumption of Coca Cola Market Position of Coca Cola Globally Market Position of Coca Cola in Pakistan Brands of Coca Cola Competitors Competitors Analysis

09 10 11 13 15 16 17 18 18 20 21 22 25 25 26 27 30

Page 6

Competitive Advantages 52 Customer Analysis SWOT Analysis Industrial SWOT Analysis SWOT Analysis of Coca Cola Product Life Cycle Growth Strategy Market Segmentation Segmentation Strategy of Coca Cola Geographic Segmentation Demographic Segmentation Psychographics Segmentation Behavioral Segmentation Marketing Mix Product Strategy Pricing Strategy Positioning Strategy Packaging strategy Promotion Strategy Distribution Channels Advertisement of Coca Cola Advertisement Media 46 46 49 52 55 56 57 58 59 45 46 35 38 40 41 42 43 44 33 33 34

Page 7

Expectations for the Coming Year 60

Conclusion Recommendations Bibliography

61 62 63

Page 8

EXECUTIVE SUMMARY
The scope of the project is to discuss the marketing strategies adopted and applied by Coca Cola, Pakistan. From the last month or so our group is in the process of a continuous research on marketing functions and strategies adopted by Coca Cola. These marketing functions mainly include the marketing mix i-e, Product Strategy, Pricing Strategy, Pricing Tools and Strategies and Placement and Distribution Strategies as well as other market strategies. Moreover the project also discusses the analysis of competition, market growth and trend, opportunity analysis and strategies for creating competitive advantage adopted by Coca Cola. We will like to add that the project will provide the readers and listeners very high profile information about the marketing strategies as a whole and also about the Coca Cola Company. In the end we hope that the project will result very profitable for the readers and Coca Cola. Your feedback in the end either critical or substantial will be very highly appreciated.

Page 9

INTRODUCTION
Since its beginning in the spring of 1886, Coca-Cola has grown to become the most recognized trademark in history. Operating out of more than 200 countries worldwide, Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate of 1.7 billion servings a day. The Coca-Cola Company is the worlds leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, with world headquarters in Atlanta, Georgia. The Company and its subsidiaries employ nearly 139,600 people around the world. Syrups, concentrates and beverage bases for Coca-Cola, the Companys flagship brand, and over 230 other Company soft-drink brands are manufactured and sold by The Coca-Cola Company and its subsidiaries in nearly 200 countries around the world.

Page 10

HISTORY OF COCA COLA

Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed. Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and penned Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested that the two Cs would look well in advertising. The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings, with the suggestions Drink added to inform passersby that the new beverage was for soda fountain refreshment. By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and

Page 11

control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated

his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark Coca-Cola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893. The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Companys incorporation, Mr. Asa G. Candler announced in his annual report to share owners that Coca-Cola is now drunk in every state and territory in the United States. As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.

CADBURY SCHWEPPES
Cadbury Schweppes are joined force of Cadbury found in 1824 of U.K. and Schweppes of Ireland founded in 1783. Cadbury Schweppes is unified bussing which

Page 12

manages the relations his with over 240 franchised bottling operation on Zambia and Zimbabwe. Cadbury Schweppes has fottlery ands partnership operations in 14 countries around the world.

HISTORY OF BOTTLING
Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. 1894 A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called CocaCola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. 1899 The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States (specifically excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. 1900-1909 Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them familyowned businesses. Some were open only during hot-weather months when demand was high. 1916 Birth of the contour bottle Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark! 1920s Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S.

Page 13

Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 1920s and 30s International expansion Led by longtime Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. 1940s Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. s1950s Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type -- the traditional 6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960. 1960s New brands introduced: Following Fanta in the 1950s, Sprite, Minute Maid, Fresca and TaB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by POWERADE and DASANI in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world. 1970s and 80s Consolidation to serve customers: As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 1990s New and growing markets: Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa.

Page 14

21st Century : The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honour local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows

Some of the popular slogans of coke

. Here we would like to include some of the popular slogans of coke since the coke journey started. 1886 Drink Coca-Cola 1908 Get the genuine 1923 Enjoy thirst 1934 When it's hard to get started, start with a Coca-Cola 1942 The only thing like Coca-Cola is Coca-Cola itself 1956 The friendliest drink on earth 1963 Things go better with Coke 1993 Always. Coca-Cola 2001 Life is Good 2003 Jo Chaho Ho Jaye Coca Cola Enjoy 2004 Flight Of Delight 2005 Galay Delicious Taste 2006 Thanda matlab coca cola 2007 khaly pily jila coca cola 2008 Aja jashan mena ly

2009 very Brrrrrrrrrrrrrrrrrrrrrrrrr hai coke zindagi

Page 15

Production
One of The Coca-Cola Companys greatest strength lies in the ability to conduct business on a global scale while maintaining a local approach. By contract with The Coca-Cola Company or its local subsidiaries, local businesses are authorized to bottle and sell Company soft drinks within certain territorial boundaries and under conditions that ensure the highest standards of quality and uniformity. The Company takes pride in being a world-wide business that is always local. Bottling plants are, with some exceptions, locally owned and operated by independent business people who are native to the nations in which they are located. Bottlers provide the required capital for investments in land, buildings, machinery, equipment, trucks, bottles and cases. Most supplies are purchased from local sources, often creating new supply industries and areas of employment within local economies. The Company supplies the concentrates and beverage bases used to make its products and provides management assistance to help its bottlers ensure the profitable growth of their businesses. Product manufacturing, quality control, plant and equipment design, marketing and personnel training are just a few of the areas in which the Company shares its expertise. The strong commitment of bottlers to their own profitable volume growth helps to meet the Companys strategic goals and furthers the interests of the world-wide production, distribution and marketing systems.

Operating structure
The Companys operating management structure consists of five geographic groups plus the Minute Maid Company.
1. The North American Group comprises the US and Canada. 2. The Latin America Group includes the Companys operations across Central and South

America, from Mexico to the tip of Argentina.

3. The Greater Europe Group stretches from Greenland to Russias Far East, including some

of the most established markets in Western Europe and the rapidly growing nations of East and Central Europe. 4. The Africa and Middle East Group, the Companys most populated operating group, encompasses the Middle East and the entire continent of Africa. 5. The Asia Pacific Group has operations from India through the Pacific region including China, Japan and Australia. 6. The Minute Maid Company the Companys juice business - is located in Houston, Texas. It is the worlds leading marketer of juices and juice drinks.

Page 16

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 bottling 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. 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

Page 17

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

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 didnt

Be the Brand

Inspire creativity, passion, optimism and fun

Marketing
Consumers will have different experiences, given their personal preferences and location. The Coca-Cola is adjusting its approach so that it can tap into these differences and provide the appropriate marketing activities and beverages to connect with consumers. Its think local, act local approach to marketing allows to adapt communications to fit local circumstances. Coca-Cola Company wants to provide consumers with beverages to fit their different life styles and life stages. As consumers are having different experiences, it has been recognised that the commercial beverage industry is in different stages of development around the world. If we look at theoretical

Page 18

beverage consumption of eight 8-ounce glasses of liquid a day, it becomes apparent that the commercial beverage industry only provides 25% of the liquid that is consumed by the worlds population. The non-commercial beverage consumption is basically tap water and/or homemade fruit juices. Over time, the Coca-Cola Company is expecting that this non-commercial portion of consumption will continue to decline and that the commercial beverage industry will grow. This 25% slice that represents the commercial beverage industry can be broken down into three segments (see Figure1): alcoholic beverages, not ready-to-drink beverages and ready-to-drink beverages.

Page 19

ORGANIZATIONAL HIERARCHYOF COCA COLA

Page 20

Page 21

Page 22

Page 23

REGION WISE CONSUMPTION OF COCA COLA

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

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

Page 24

MARKET POSITION WORLDWIDE

OF

COCA

COLA

MARKET POSITION OF COCA COLA IN PAKISTAN

Page 25

On global level Coca-Cola is the most popular brand and market leader controlling 60% of market share. In Pakistan Coca Cola is the market follower but still in a very strong and stable position holding 36% of the local market with a growing and increasing market share every year.

Brand/Product Portfolio
Sparkling Beverages Coca-Cola Diet Coke Sprite Sprite Zero Sprite 3G Fanta Orange Fanta Citrus

Juices & Still Water Kinley Bottled Drinking Water

Minute Maid Pulpy Orange Minute Main Splash Mango Minute Maid Splash Apple

Page 26

COMPETITORS OF COCA COLA

The competitors to the products of the company mainly lie in the non-alcoholic beverage industry consisting of juices and soft drinks. The key competitors in the industry are as follows:
PepsiCo Nestle

Cadbury Schweppes

COCA COLA V/S PEPSI PRODUCTS

Both the companies Coca Cola and Pepsi have a number of products. Many of these products are innovations but there are also many products which are brought out just as a

Page 27

competitive product for other companies. Some of these products that are brought in the market by both the companies to compete against each other are as follows:

COCA COLA

PEPSI

The main dark cola drink of the company which started the rivalry between these Companies.

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

Sprite is a clear, lemon lime flavored, non 7 up is a brand of a lemon-lime flavored soft caffeinated soft drink, produced by Coca Cola drink. Company.It was introduced in the U.S in 1961.

Diet Pepsi is a low calorie carbonated cola. It was introduced in 1964 as a variant of Pepsi Diet Coke or Diet Coca Cola is a sugar-free soft Cola with no sugar. drink produced and distributed by Coca Cola Company, was introduced in U.S. in 1982

Page 28

Kinley is a brand of still or carbonated water Aquafina is non carbonated bottled water produced by PepsiCo. owned by The Coca Cola Company.

Fanta is a soft drink brand owned by The Coca Cola Company. It is produced and distributed by Coca Cola Companys bottlers.

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

Page 29

COMPETITOR ANALYSIS
BUYERS/CUSTOMERS
Coca-Cola has three major and large customers in the market, food street 60,000 cerates /year, MacDonalds 40,000 cerates/year and Pakistan Railways who buy 50,000 cerates /year. However, these three customers being large and powerful are in an influential and bargaining position they can demand discount or others facilities like (boards sign/freezers/coolers etc.) and impose a threat to switch to their closest rival and competitor Pepsi.

SUBSTITUTES
Nestle products like juices, coffee, mineral water etc. and Shezan juices are substitutes of Coke for health conscious people and other fresh juices.

RIVALS/COMPETITORS
DIRECT COMPETITORS
The direct competitor of Coca-Cola is Pepsi and that of CCBPL is PCI (Pepsi cola international) there is always ongoing tuff competition between these two arch rivals with Pepsi leading with 54% market share and Coke gradually growing and catching up 36% market share in Pakistan. However on global level the situation is reverse. Both companies often engage in price cut wars, prize scheme wars and sponsorship wars to win over each other customers.

INDIRECT COMPETITORS
These include Nestle and Shezan juices who do not pose a threat to Coke as yet but has the potential to do so as it is exploiting the natural aspect and health issues more and more to make

Page 30

people conscious about physical fitness Coke has launched Diet Coke to counter the physical fitness demands.

BUFFERING AND SMOOTHING

For beverages like Coke the buffering and smoothing policies doesnt matter and they dont apply anymore because Coke remains in demand all the year round in festivals, parties, events, meetings sports etc.

SUPPLIERS
Coca-Cola has authorized suppliers and which do not pose a threat to it. Any how Coke does have a quality check procedures in its plants to ensure that they get the right kind of ingredients from suppliers.

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

NEW ENTRANTS
Coca-Cola is not afraid of competing .it doesnt fear losing its share to Mecca-Cola or other new entrants. The company management believes that new entrants provoke healthy competition, which will provide Coke with a challenge to hold on to its loyal customers. Besides it will take a lot of effort on the part of new entrants like Mecca- Cola, Pak-cola to fully launch its product in Pakistan and capture or even motivate people to switch on to their new product from Coke.

Page 31

COMPETITIVE ADVANTAGES

BRAND NAME, SYMBOL, BOTTLE SHAPE.

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

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

SNATCHING AWAY CUSTOMERS

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

Cost: It is very economical, justifies performance, Quality: No quality compromise, get the best all over Pakistan at any cost. Innovation: new ideas for billboards design, sponsorship, changing their slogans time to
time, according to the needs of the market.

Speed: On time delivery in all over the Pakistan.

Page 32

CUSTOMER ANALYSIS
The Coca Cola Company exists to satisfy the consumers needs. The Coca Cola Company has over 400 brands of drinks designed to satisfy a very wide range of consumers. They are able to provide drinks for many different target markets including, people of all ages, sexes, races, etc. Coca-Cola products are able to sell to a diverse worldwide population and its success is unmatched. In todays society, people are looking to lead better, healthier lives, Coca Cola seeing this trend has begun to produce, diet drinks that have the same great taste as their regular drinks while still being low fat or low calorie drinks, such as diet coke, or coke zero. Coca Cola products are purchased by all the different classes, but mainly by the middle and high-class citizens, because they have more money to spend on luxury items. Coca Cola is a very successful company; due to their success they are able to spend more money making their factories work more efficiently. They can do this by updating the equipment used to produce their drinks. Although people today are becoming more conscious about their environment, and the damage that has been done in prior years. Many people make their purchase decisions partially based on a companys ethics, or social responsibility. By contributing to stop pollution both within and outside their factories, they will gain the trust and respect of the potential buyers, who care about saving our environment. In gaining their trust and respect more people will be willing to purchase their products, because the company stands for the same goals that their consumers are trying to protect. The Coca Cola Company tries to be more environmentally aware.

SWOT ANALYSIS
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats inside a company, project, or a business venture. It involves identifying the internal and external factors that are favorable/ unfavorable for business to succeed.

INDUSTRIAL SWOT ANALYSIS

Page 33

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

WEAKNESSES
Liquid concentrates and power concentrates are both seasonal categories in the market and their sales peak in the summer in Pakistan. Both Rooh Afza and Jam-e-Shirin are traditional sandalwood drinks in Pakistan which are highly regarded by consumers. These drinks can be found in every home in Pakistan, especially in rural areas throughout the summer and are the mainstay of liquid concentrates.

OPPORTUNITIES
The Government of Pakistan has reduced excise taxes to encourage soft drinks manufacturers and importers. The Government also reduced other applicable taxes to promise more profit not only for soft drink manufacturers already in the market but also to attract potential soft drinks manufacturers to invest in Pakistan. Tax reductions proved extremely beneficial to the soft drinks market in Pakistan and certainly encouraged and attracted multinational companies to invest in the countrys soft drinks industry. The government also decided to tax the beverage industry on capacity of production rather than on actual production and that brave move encouraged soft drinks manufacturers to maximize production and reduce prices.

THREATS
Increasing health and hygiene awareness among Pakistanis has greatly increased sales of fruit/vegetable juice products. Both the government and the media have started health awareness

Page 34

campaigns to make Pakistanis realize that consumption of fruit/vegetable juice is as essential as eating food. Fruit/vegetable juices are doing very well in both urban and rural areas. On the other hand, health and hygiene awareness has also led to increased sales of bottled water in Pakistan. Previously bottled water was targeted on at major cities where consumers are more health-conscious and aware of the difference between bottled water and tap water. Nowadays, health conscious rural inhabitants also drink bottled water due to health concerns.

SWOT ANALYSIS OF COCA COLA

Strengths Internal
-Popularity -well known -branding obvious recognized -A lot of finance -customer loyalty -International Trade

Weaknesses
-Word of mouth -lack of popularity of many Coca Colas easilybrands -Most unknown and rarely seen -result of low profile or non-existent advertising -health issues

and

Threats External

Opportunities

-changing health-consciousness-many successful brands to pursue attitude -advertise its less popular products -legal issues -buy out competition. -Health ministers -More Brand recognition -competition (Pepsi)

STRENGTHS
Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths

Page 35

that are virtually incomparable. Coca Cola is known very well worldwide. It's branding is obvious and easily recognized. Things like, logos and promos shown on t-shirts, hats, and collectible memorabilia. Without a doubt, no beverage company compares to Coca Cola's social popularity status. Some people buy coke, not only because of its taste, but because it is widely accepted and they feel like they are part of something so big and unifying. At the other end of the spectrum, certain individuals choose not to drink coke, based solely on rebelling from the world's idea that coke is something of such great power. Overwhelming is the best word to describe Coca Cola's popularity. It is scary to think that its popularity has been constantly growing over the years and the possibility that there is still room to grow. If you speak the words Coca Cola, it would definitely be recognized all around the world. Money is another thing that is strength of the company. Coca Cola deals with massive amounts of money all year. Like all businesses, they have had their ups and downs financially, but they have done well in this compartment and will continue to do well and improve. The money they are earning is substantially better than most beverage companies, and with that money, they put back into their own company so that they can improve. Another strength that is very important to Coca Cola is customer loyalty. The 80/20 rule comes into effect in this situation. Eighty percent of their profit comes from 20% of their loyal customers. Many people/families are extremely loyal to Coca Cola. It would not be rare to constantly find bottles and cases of a product such as coke in a house. It seems that some people would drink coke religiously like some people would drink water and milk. This is an improbable feat. Customers will continually purchase these products, and will probably do so for a very long time. If two parents were avid Coca Cola drinkers, this will be passed down do their children as they grow loyal to the company. With Coca Colas ability to sell their product all over the world, customers will continue to buy what they know and what they likeCoca Cola products.

WEAKNESSES
Coca Cola is a very successful company, with limited weaknesses. However they do have a variety of weaknesses that need to be addressed if they want to rise to the next level. Word of mouth is probably a strength and weakness of every company. While many people have good things to say, there are many individuals who are against Coca Cola as a company, and the products in which they produce. Word of mouth unfortunately is something that is very hard to control. While people will have their opinions, you have to try to sway their negative views. If bad comments and views are put out to people who have yet to try Coca Cola products, then that could produce a lost customer which shows why word of mouth is a weakness. Another aspect that could be viewed as a weakness is the lack of popularity of many of Coca Colas drinks. Many drinks that they produce are extremely popular such as Coke and Sprite but this company has approximately 400 different drink types. Most are unknown and rarely seen for available purchase. These drinks do not probably taste bad, but are rather a result of low profile or nonexistent advertising. This is a weakness that needs to be looked at when analyzing their company. Another weakness that has been greatly publicized is the health issues that surround some of their products. It is known that a popular product like coke is not very beneficial to your body and your health. With todays constant shift to health products, some products could possibly loose customers. This new focus on weight and health could be a problem for the product that is labelled detrimental to your health.

Page 36

OPPORTUNITIES
Coca Cola has a few opportunities in its business. It has many successful brands that it should continue to exploit and pursue. Coca Cola also has the opportunity to advertise its less popular products. With a large income it has the available money to put some of these other beverages on the market. This could be very beneficial to the company if they could start selling these other products to the same extent that they do with their main products. Another opportunity that we have seen being put to use before is the ability for Coca Cola to buy out their competition. This opportunity rarely presents itself in the world of business. However, with Coca Colas power and success, such a task is not impossible. Coca Cola has bought out a countless number of drink brands. An easy way to turn their profit into your profit is too buy out their company. Even though this may cost a vast amount of money initially, in the long run, if all goes to plan, it results in a large profit. Also, the company will no longer need to worry about this product being part of the competition. Brand recognition is the significant factor affecting Cokes competitive position. Coca Cola is known well throughout 90% of the world population today. Now Coca Cola wants to get there brand name known even better and possibly get closer and closer to 100%. It is an opportunity that most companies will ever dream of, and would be a supreme accomplishment. Coca Cola has an opportunity to continue to widen the gap between them and their competitors.

THREATS
Despite the fact that Coca Cola dominates its market, it still has to deal with many threats. Even though Coca Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness attitude of the market could have a serious effect on Coca Cola. This definitely needs to be viewed as a dominant threat. In todays world, people are constantly trying to change their eating and drinking habits. This could directly affect the sale of Coca Colas products. Another possible issue is the legal side of things. There are always issues with a company of such supreme wealth and popularity. Somebody is always trying to find fault with the best and take them down. Coca Cola has to be careful with lawsuits. Health minister could also be looked at as a threat. Again, some people may try to exploit the unhealthy side of Coca Colas products and could threaten the status and success of sales. Other threats are of course the competition. Coca Colas main competition being Pepsi, sells a very similar drink. Coca Cola needs to be careful that Pepsi does not grow to be a more successful drink. Other product such as juices, coffee, and milk are threats. These other beverage options could take precedent in some peoples minds over Coca Colas beverages and this could threaten the potential success it presents again.

PRODUCT LIFE CYCLE OF COCA COLA

Page 37

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

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

INTRODUCTION STAGE OF COCA COLA.

In the Introduction stage, Coca Cola was launched and initially promoted. Efforts were made for creating its awareness in the market, inducing trial of the product and securing space in the outlet shelf. When their costs were high, sales volume were low, and there was no existing demand for Coca Cola in this stage.

Page 38

GROWTH STAGE OF COCA COLA

In the growth stage Coca Cola experienced rapid increase in sales volume and its competition began to increase. People got more awareness about Coca Cola and the increase in the competition leads it to decrease prices. In this stage the marketing strategies used by Coca Cola were as follows: Product improvement New models were developed It entered new market segments It enlarged its distribution channels.

MATURITY STAGE OF COCA COLA

Coca Cola is in the Maturity stage from years now. The marginal costs of Coca Cola are low in this stage, sales volume is at the peak and most of the market is covered. There is increase in competitors which are entering in the market. Coca Colas brand differentiation and features diversification is emphasized to maintain and increase market share.

DECLINE STAGE
This is the stage in which sales of the product begin to fall. Either everyone that wants to, has bought the product or new, more innovative products have been created that replaces that product. The only way to increase sales during this period is to cut the cost of the product.

GROWTH STRATEGY
Growth is the main objective of every organization. They look forward for expanding & growing in different markets & making a variety in their product line. A company can identify their growth through the product-market expansion grid. The approach is known as ANSOFF.

Page 39

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

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

MARKET DEVELOPMENT
Market Development is exploring new markets for the products you are already selling. Many flavors of Coca Cola are not being sold in Pakistan. Coca Cola can develop a new market if they introduce those flavors in Pakistan. Many people in Pakistan want a change in the beverage industry, as they are having the same flavors from many years.

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

Page 40

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

DIVERSIFICATION STRATEGY
Diversification strategy is one which every company really wants to practice. There are lots of chances of growth but the risk factor is also there. The company can manufacture products, which are not manufactured by it before. Coca Cola is only dealing in beverages but it can also manufacture its own snacks item as the company name is known almost all over the world. So it can cash the name by producing the items, which are eaten with the beverages.

MARKET SEGMENTATION
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. In evaluating different market segments, a firm must look at three factors:

Segment size Segment growth Segment structural attractiveness and company objectives and resources. There is no single way to segment a market. The market has to try different segmentation variables, alone and in combination, to find the best way to view the market structure.

TARGET MARKETING:

Page 41

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

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

SEGMENTATION STRATEGY COCA COLA

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

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

Page 42

Coca Cola Company tries to satisfy the needs of a whole line of different people. They have drinks that target different, age groups, ethnic groups, sexes, lifestyles, etc. There are some of the different brands: Coca Cola The Coca Cola drink is by far there most successful drink. It is very popular among many different nations. It is a soft drink. Because of the huge demand for the coca cola drink, and the trend towards healthier lifestyles coca and begun to produce spin-offs of the coca cola product. They have made drinks such as coca cola zero, coca cola diet, coca cola C2, coca cola with lime etc. By having all these different drinks with the same basic taste they are able to target a much bigger market. Due to the large success of the drinks coca cola is in demand worldwide. As such the Coca Cola brand is sold in most countries in the world. Coca Cola Diet The diet drinks are targeted at adults of ages 30-50, who are health conscious but still love the great taste of coke. This drink is sugar less. Sprite This is a soft drink that has many different target markets. This product has a different taste then coke all together and is not as popular but it is still a very popular drink. Like coke it also has a whole other line of drinks associated with it, such as diet sprite, sprite zero, sprite with a hint of lime. This drink is also sold in many places worldwide. Powerade Powerade is a sports drink. It is designed with a great taste and is also thirst quenching. It is made for athletes of all ages, sexes and sports, but they would target this drink at teens and young adults, ages 13- 27. This drink is sold in many places but mostly over North America. Aquarius Aquarius is a sports drink, enjoyed by people who have healthy lifestyles. It is made for athletes of all ages, sexes and sports, but they would target this drink at teens and young adults, ages 13- 27. This produce is very well known in Europe. Particularly in France, Norway, Spain. But it is still known all over. It became even more successful when it became the official drink of the Olympic games in Barcelona in 1992. .

CLIMATIC
Weather is the third major factor in effecting the Cokes selling. In coke marketing, main idea is to serve it cold, so we can say that, they focus more on hot areas of the world, i.e. middle east etc and there sale increase in summer. This is underdeveloped market so the cokes consumption in summers is 60% and in winters is 40%.. It is a source of refreshment when a person is thirsty due to the hot weather.

Page 43

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

DEMOGRAPHIC SEGMENTATION
AGE
Internationally coke has segments the small children introducing tastes like vanilla, lime and cherry, they focus children from 4-12. Coke specifically target more young people than older. Pakistan is considered to be a young country i.e. average age of Pakistani population is less than 38 years. Thus targeting young generation can be a beneficial marketing strategy for soft drink companies. In fact this is the case, all the major brands like Coca Cola, Pepsi mainly target younger generation in Pakistan.

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

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

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

Page 44

PSYCHOGRAPHICS SEGMENTATION
All psychographics variables the social class, lifestyle, occupation, level of education and personality, Coca Cola segments everyone, but again it is their packaging which is different for different consumers.

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

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

BEHAVIORAL SEGMENTATION
It is how people perceive a specific product, in short psychological analysis of a product. Coca Cola all over the world is recognized as a quality drink and therefore people drink it without any hesitation whenever they are thirsty or otherwise. So marketers of Coca Cola have made it a drink for all people and for diabetic people they introduced diet Coke.

OCCASIONS

Page 45

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

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

MARKETING MIX OF COCA COLA

Marketing decisions generally fall into the following controllable categories:

Product Price position Place (distribution) Promotion

PRODUCT STRATEGY OF COCA COLA

Product: Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

LEVELS OF COKE AS A PRODUCT

CORE PRODUCT
Core benefit is that it fulfills the thirst.

Page 46

ACTUAL PRODUCT
Design: Pet bottles, returnable glass bottles, economy packs. Quality: Quality differs with respect to country for example. Coca-Cola Can quality that is available in Middle East is certainly different as compared to Coke Can available in Pakistan.

PRODUCT CLASSIFICATIONS
Coke is categorized as a convenience product, because the purchasing rate is very high and this is the product that is bought very frequently.

INDIVIDUAL PRODUCT DECISIONS

Brand
Existing Existin g New
Line extension

New
Brand extension

Product

Multi-Branding

New brands

BRANDING
BRAND EQUITY

Page 47

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

BRAND STRATEGY
The following is the brand strategy of Coke

LINE EXTENSION
Line extension occurs when a company introduces additional items in a given product category under the same brand name. For example if Coke introduces new flavors and package size, it will be considered as line extension.

BRAND EXTENSION
Brand extension means using a successful brand name lets say Coca-Cola and then launching new product for example cherry coke. This was an example of brand extension.

MULTI-BRANDING
It means introducing additional brands in the same category. For example Coca-Cola not only introduced coke as a brand but also sprite and Fanta.

DIVERSIFICATION
It means introducing new product with the new brand name. It means diversification but this is something Coca-Cola has not adopted for as yet.

PRODUCT LINE DECISIONS

Page 48

PRODUCT LINE LENGTH

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

PRODUCT LINE FILLING

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

PRICING STRATEGY OF COCA COLA

The amount of money charged for a product or service, or sum of the values that consumers exchange for the benefits of having or using the product or services. As price gives us the profit so this P is very important for business price of product should be that which gives maximum benefit to the company and which gives maximum satisfaction to the customer. Following factors Coca Cola kept in mind while determining the pricing strategy. Price should be set according to the product demand of public. Price should be that which gives the company maximum revenue. Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy your product. Price must be keeping the view of your target market. The price of Coca Cola, despite being market leader is the same as that of its competitor Pepsi Cola. Sometimes, Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle and consumers think that they save a lot of money from this.

PRICES OF DIFFERENT BOTTLES Size of Coca Cola

Regular bottle Non returnable or disposable bottle 1.5 liter bottle 2.25 liter bottle

Price of Coca Cola (RS.)

17 35 75 90

Page 49

Coca Cola can

45

PRICING STRATEGIES
COMPETITION BASED PRICING APPROACH
Coca Cola has intense competition with Pepsi so its pricing cant exceed too much nor decrease too much as compared to the price of Pepsi Cola. If price of the Coca Cola exceed too much from the Pepsi then people will shift to the Pepsi Cola and on the other hand if the price of Coca Cola decreases people might get the impression that its quality is also low.

PROMOTIONAL PRICING POLICY

Coca Cola has offered promotional prices very frequently. Especially on some occasion Coca Cola reduces its rates like in Ramzan Coca Cola reduces its rate unto 5 Rupees on 1.5 liter bottle.

MARKET PENETRATION PRICING POLICY

Prices in beverage industry are determined by the consumer. In an economy like that of Pakistan, consumers tend to switch towards a low priced product. Coca Colas objective is to target every consumer of the country so Coca Cola has to set its prices at such a level which no one can offer to its consumers. That is why Coca Cola charges the same prices as are being charged by its competitors. Otherwise, consumers may go for Pepsi Cola in case of availability of Coca Cola at relatively high price.

DISCOUNTS

Page 50

Coca Cola offers various discounts to those retailers who have the maximum sales of Coca Cola products on daily, monthly and on seasonal basis. Some of the main discounts given to the retailers are as follows:

QUALITY DISCOUNT
Following are discounts offered by Coca Cola.

1/10 DISCOUNT
I.e. one case of Coca Cola is free on buying 10 cases of Coca Cola at one time.

2/20 DISCOUNT
I.e. two cases of Coca Cola are free on buying 20 cases of Coca Cola at one time.

SEASONAL DISCOUNT
Following are discounts offered by Coca Cola. Coca Cola also offers seasonal discounts schemes by reducing price in Ramadan and on Eid. Coca Cola also offers trade in allowance for retailers.

3 B F DISCOUNT
I.e. sometimes, especially in the off-season duration, in order to increase the sale of Fanta and Sprite, 3-BF discount is given (i.e.) 3 bottles free on purchasing every case of Fanta and Sprite.

INCENTIVES
Mainly two types of incentives are given by the Coca Cola:

INCENTIVE TO RETAILERS
Coca Cola provide various incentives to retailers on the best sales and achieving the predetermined sales targets. These incentives are in the shape of: Deep Freezers

Page 51

 Return Tickets Free Transportation Services.

INCENTIVE TO DEALERS
The first, second and third best dealers of the year are awarded.

CREDIT
There is no credit system in the beverage industry. Every single bottle is sold on the cash basis.

POSITIONING STRATEGY
The way the product is defined by consumers on important attributes, the place the product occupies in consumer minds relative to competing products.

Price
More Same Less

Benefits

More Same Less

Page 52

Here if we talk about more price and more benefits, we can discuss Coca Cola and Pepsi. As both are the market leaders and 90% market share of Pakistan beverage industry is secure by them & the rest 10% is secure by the rest. And we can also take challenger for each other as for same, more for less & giving their customers more also more benefits for less different packaging sizes. Others colas like and Mountain Dew are and same benefits for more followers strategy, as they leaders and giving their same price. Others colas like offering less benefits for for less price. As they have their products have no badly positioned in consumer Coca Cola and Pepsi as both of them provides more same for less. As they are benefits for same price and price with respect to Mecca Cola, Amrat Cola offering same for same price price. They are using follow the other market customers same benefits for tha bottles (local colas) are same price and less benefits no existence in market and position or we can say very minds.

LOGO

OF

COCA COLA
establishes a brand name in brands identify, signature, logo that makes of breaks a effective role to improve the kept on changing its logo the trade marks.

Logo is what the consumer mind. It is the image and more often it is a product logo plays a very product or brand. Coca Colas from time to time along with

Page 53

PACKAGING COCACOLA

&

LABELING

OF

Packaging means the activities of designing and producing the container or wrapper for a product. Traditionally packaging decisions where based primarily on cost and production factors, the primary function of the package was to contain and protect the product the product. In recent time, however humorous factors have made packaging an important marketing tool. These factors include all acting attention describing the product making the sales. Packaging involves designing and producing the container or wrapper for product. The package may include the products primary container a secondary package that is thrown away when the product is about to be used and shipping package necessary to store , information appearing the product labeling printed information appearing on or with the packaging is also part of packaging. Label ways rouge from toys attached from product to the complex graphic that identify the product or brand, such as the product the label weight also described several things about the product that made its contents how it is to be used. Coca-Cola products, almost all of them are available in bottles of 250 ml, 500 ml pet jar, 1000ml, 1500 ml and 2000 ml bottles as well as 330 ml cans. The advantages of packaging are as follows
In strip packaging there is aluminum foil on both the sides. Strip packing is done

for providing stability to those products which are having less productivity.
In facilitating branding and advertising of products. In serving as a silent salesman. It induces the buyers to make re order.

It has got display value. It helps the seller to increase his sales and obtained higher prices than he could get from unpacked good. Printed literature containing Instruction to use the product can be easily passed on to the consumers by putting in the package.

Page 54

 Packaging given the product a prestige an individually and identity which the goods sold in loose form do.

LABELING OF COCA COLA

Labels may range from simple tags attached to products to complex graphics that are part of the package. Labeling is mainly done in order to promote the product through attractive graphic. In the Coca-Cola company, the labels are provided with bottles.

PROMOTION STRATEGIES OF COCA COLA

GETTING SHELVES
They get or purchase shelves in big departmental stores and display their products in those shelves in that style which show their product clearer and more attractive for the consumers.

EYE CATCHING POSITION

Salesman of the Coca Cola Company positions their freezers and their products in eyecatching positions. Normally they keep their freezers near the entrance of the stores.

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

UTC SCHEME

Page 55

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.

DISTRIBUTION CHANNELS
Coca Cola Company makes two types of selling Direct selling Indirect selling

DIRECT SELLING
In direct selling they supply their products in shops by using their own transports. They have almost 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.

FACILITATING THE INFRASTRUCTURE

includes: Vizi cooler Freezers

PRODUCT

BY

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

Page 56

 Display racks Free empty bottles and shells for bottles

ADVERTISEMENT OF COCA COLA

The field of advertisement is one area where Coca-Cola has always emphasized. In year 2000 Coca-Cola unveiled the biggest advertising billboards in the history of Pakistan. Each unveiling was marked by entertainment and light shows watched by thousands of people. Similarly in July 2000 Coca-Cola launched its first under the crown promotion by the name of Dream Vacations in which the consumers could collect caps of promotional bottles of Coca-Cola like Sprite, Fanta and Coke.

ADVERTISEMENT OBJECTIVE
Type of advertising with respect to product life cycle that Coca-Cola adopts is reminder type. The reason behind this fact is that coke is such a product that is at the maturity level currently so for such a product companies mostly go for reminder type of advertisement so that they can penetrate more and more and same is the case with Coke.

SETTING OF ADVERTISING BUDGET

Coca-Cola sets its advertisement budget on the basis of competitor based budgeting. Major competitor of Coca Cola is Pepsi and as Coke realizes that Pepsi has increased its advertising budget, straight away Coca-Cola management plans to do the same so that they can compete in advertising department as well.

ADVERTISING STRATEGY
Before creating advertising message the Coca-Cola Company gives lots of time to the factor that the message must gain customer attention. This is basically called Clutter Buster means that only that advertisement will leave impact on customer mind that has some specialty or

Page 57

uniqueness in it. For example in India Coke current slogan Thanda Matlab Coca-Cola has gained reasonable customer attention.

ADVERTISEMENT MEDIA
Coca-Cola Company advertises its products mainly coke through electronic media that includes Television, Radio and Internet as well. Moreover leading newspapers of Pakistan are also the targeted by coke for advertising. So we can say that coke not only uses electronic but print media for advertisement as well. Coca Cola Company use different mediums Print media Pos material TV commercial Billboards and holdings

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

POS MATERIAL
POS material mean point of sale material this includes: posters and stickers that are displayed in the stores and in different areas.

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

Page 58

BILLBOARDS AND HOLDINGS

Coca Cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.

EXPECTATIONS FOR THE COMING YEAR

Everything starts from the attitude of consumers behavior. And the basic key to attract the consumers is to throw the money away. And positive feeling felling with the brand, which they used to have Coke wants to advertise their products heavily in the coming year. And it will take the 10% of their profits. And when we take it as a global level it is $ I billion. Coming year is the challenging year for the industry of Coke. They have to take lots of decisions that how to increase the production and where they have to spend money. For gaining success in coming year they have to have some important things like: Loyal consumers are important for companys success. Workers should be the brand centric not the promotion centric. They should know how much to for the brand activities. They should also know that how much to do with the promotion activities for brand.

HOW COKE DETERMINE THE YEARLY BUDGET

Coke determines its yearly budget by the Sales volume Profitability Target volume

Page 59

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
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.

CONCLUSION
We have concluded from this detailed report that despite the fact Coca Cola currently occupies the market leadership position overall but it does not guarantee that the company will sustain its position in the future as well. In Pakistan as compared to Pepsi, Coca-Cola has less number of consumers as Pepsis market share in Pakistan is approximately 70% where as Coke market share is hovering about 30%, hence the conclusion is that Coca-Cola must enhance factors such as relationship marketing, innovation and technology especially in Pakistan to attain market leader position in this region as well.

Page 60

Page 61

RECOMMENDATIONS
After completing our project we have come up with following recommendations for the Coca Cola Company, which are following.
Currently in Pakistan there are only two flavor of Coke available, company can extend

their portfolio by introducing new flavors. According to the survey, conducted by the international firm Pakistani people like less sweet cola drink. So for this Coca-Cola Company should think about bringing a new product for example new diet flavors, in the market to fulfill the local need. Marketing team should try to increase the availability of Coke in rural areas. Coca Cola Company should think about producing Coke Can locally as well because currently coke Cans are only smuggled from abroad and sold at high price. Company can capitalize on this factor.

Page 62

BIBLIOGRAPHY

Bibliography refers to the sources through which information has been retrieved in my project development: Books & Magzines: Websites:
www.google.com

Marketing Management Economic Times

By ( Philip Kotler )

Annual Report of coca-cola company.

www.cocacola.com www.thecocacolacompany.com www.wikipedia.com

Page 63