Coke Pakistan Marketing Analysis project (SWOT)

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A brief project on the marketing analysis of Pakistan Coke (CocaCola), Macro & Micro Analysis, Marketing Mix, SWOT Analysis, Values and Competitors, Marketing strategies, Marketing objectives, Market needs, Market behavior, Market Growth and major segments. Everything you need to know.

COKE 2012
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MARKETING PROJECT
COKE
MARKET ANALYSIS
SUBMITTED BY : MUHAMMAD GHAYAS
SUBMITTED TO: SIR.BILAL RIAZ
DATE OF SUBMISSION: 07JUNE, 2012
ARMY PUBLIC COLLEGE OF MANAGEMENT AND SCIENCES
KHADIM HUSSAIN ROAD, LALKURTI, RAWALPINDI.
ARMY PUBLIC COLLEGE OF MANAGEMENT AND SCIENCES
KHADIM HUSSAIN ROAD, LALKURTI, RAWALPINDI.
COKE 2012
ACKNOWLWDGEMENT
First and fore mostly we would like to thank Almighty Allah who blessed us
with knowledge, understanding and ability to do this project.
We have discovered that the work of some unknown persons makes our lives
easier every day. We believe it's appropriate to acknowledge all of these
unknown persons; but it is also necessary to acknowledge those people we
know have directly shaped our lives and our work.
First of all we would like to thank our teacher Mr. Bilal Riaz Chauhan for his
guidance throughout the semester.
DEDICATION
This project is dedicated to our parents who have enabled us to stand on our
own feet and have guided us in all matters of life.
May Allah bless them!
Ameen
Executive Summary
We are the students of BBA & Bsc – A/f of Army Public College of
Management & Science and we have established this marketing project on Coke
after critically examining and thoroughly researching over it.
It consists of examining PEST Analysis, SWOT Analysis, and Market
Segmentation, Market Environment (Macro & Micro, Market research, Market
Strategy, Brand Strategy, Marketing Mix and carefully scrutinizing the soft
drink industry and possibilities for Coca Cola in the market. We have carefully
analyzed the internal and external business environments and critically
examined the industry in general, considering all external threats and
opportunities.
About The Company
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COKE 2012
The Coke Cola was established in 1886 by John S. Pemberton in Columbia,
Georgia. In 1889 Coca Cola formula and brand was established by Asa Candler
who also incorporated The Coca-Cola Company in 1892. However the bottling
business began in 1899. The Coca-Cola Company is a multinational beverage
corporation and manufacturer and marketer of non-alcoholic beverage
concentrates and syrups which are then sold to various countries throughout the
world.
Type Soft Drink (Cola)
Manufacturer The Coca- Cola Company
Founder (s) John S. Pemberton
Country of Origin United States
Introduced 1886
Area Served Over 200 countries
Brands More then 500
Flavors Cola, Cola Green Tea, Cola Lemon,
Cola Lemon Lime, Cola Lime, Cola
Orange and Cola Raspberry.
Employees 92,400
Servings per Day 1.6 Billion
Website www.coca-cola.com
Coca Cola Pakistan
The Coke Cola company started operating in Pakistan in 1953 which is owned
by (CCBP) Coca Cola Beverages Pakistan Limited. Its Plants are in Karachi,
Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan, Multan and
Lahore. The remaining two plants, independently owned, are in Rawalpindi and
Peshawar. The Coca-Cola System in Pakistan serves 70,000 customers/retail
outlets. The Coca-Cola System in Pakistan employs 1,800 people.
Mission Statement
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COKE 2012
Following are the declarations of COKE overall mission and goals, and the
values that COKE is guided by as a company and as individuals.
• To refresh the world - in mind, body and spirit
• To inspire moments of optimism - through our brands and actions
• To create value and make a difference everywhere we engage
Coca Cola Company Vision
To achieve COKE mission, they has developed a set of goals, which they will
work with their bottlers to deliver:
• Profit: Maximizing return to shareholders, while being mindful of our
overall responsibilities
• People: Being a great place to work, where people are inspired to be the
best they can be
• Portfolio: Bringing to the world a portfolio of beverage brands that
anticipate and satisfy people's desires and needs
• Partners: Nurturing a winning network of partners and building mutual
loyalty
• Planet: Being a responsible global citizen that makes a difference
• Productivity: Be a highly effective, lean and fast-moving organization
The Coca Cola Company Values
• Leadership
• Passion
• Integrity
• Accountability
• Innovation
• Quality
The Coca Cola Company creates value by executing comprehensive business
strategy guided by six key beliefs:
• Consumer demand drives everything we do.
• Brand Coca Cola is the core of our business
• We will serve consumers a broad selection of the nonalcoholic ready-to–
drink beverages they want to drink throughout the day.
• We will be the best marketers in the world.
• We will think and act locally.
• We will lead as a model corporate citizen.
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COKE 2012
MAJOR PRODUCTS OF COCA COLA INTERNATIONAL
Product Name Image
Coke
Sprite
Fanta
Diet Coke
Minute Maid
Minute Maid Juices
Kinley Drinking Water
Marketing Analysis
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COKE 2012
This involves the External (Macro & Micro environment) & Internal
Environment analysis of Coke.
Coca-Cola's External (Macro) environment
• Political Analysis and Factors
Coke comes in the food category under the FDA (Food and Drug
Administration).It means that government has a control over Coke
manufacturing activates by setting standards of law for Coke to reach.
It has created changes in Laws and Regulations like; changes in Accounting
Standards, taxation requirements, and environmental laws either in domestic
or foreign authorities. Non-Alcoholic business era. These are competitive
product and pricing policy pressures, ability to maintain or earn share of
sales in worldwide market compared to rivals.
• Economic Forces
Pakistan has recently faced an economic crisis which has forced consumers
to cut down their spending. For Coke's off-brand competitors, this could
mean an increase in sales. Coca-Cola must begin watching consumer
spending habits, as many could be opting to purchase a cheaper alternative
cola.
• Social
In Pakistan currently majority of people are exercising healthier lifestyle due
to this they are switching to bottled water and diet colas such as Coca-Cola
Light or Zero, instead of drinking other beverages. Additionally, time
management is quite 43 % of all households, and it has increased. Customers
aged from 37 to 55, are concerned with their nutrition. Also, large portion of
the population is within the range of baby boomers age. That will continue
by increasing the demand in healthier and other beverages.
• Technological Forces
The clever scientists with Coca-Cola are constantly finding new ways to
work with technology. For instance, one promotion that I found interesting
was the conversion of Coke cans into GPS devices. In 2004, Coke ran a
promotion that 120 lucky cola drinkers could find a Coke can with a GPS
device attached. This type of technology allowed the can to turn into a
mobile phone.
 Coca-Cola's External (Micro) environment
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• Suppliers
Coke considers its suppliers as a partner in their business. As coke want its
suppliers to maintain the best quality possible because suppliers are linked to
customer value. So Coke provides extensive training to suppliers, and also
routine inspections In order to build good relations with its suppliers and
maintain quality product. Following are coca cola suppliers
 CCBSS(Provide fructose corn syrup)
 Nutrasweet and Ajinomoto ( supply Acesulfame potassium)
 Tate and Lyle (Supply Sucralose)
• Marketing Intermediaries
Coke works with its intermediaries to maximize sales. Coke offers a website
to solve its intermediary’s problems and to build traffic and strengthen
operations, training employees to sell "value meals", and improving server
hospitality to foster consumer satisfaction. Coke works directly with its
retailers, as they too are partners in business.
• Customers
Customer satisfaction is considered as being the most important and vital
things in Coke progress. Coke dedicates a page on their website for
customers to share how Coke has shaped their lives. Coke cares about every
one of its customers, and strives to reward its customers with great service,
and a great product.
• Competitors
Coke’s main rival is PEPSI so Coke’s objective is to
deliver a better product to its consumers than PEPSI
so far. Coke is successful in doing so; it has created
brand awareness in consumers mind with the help of successful advertising,
and by constantly developing new products for its customers to enjoy.
 Competitor Analysis
MAJOR COMPETETOR: PEPSI CO.
• Maintaining its supply chain management to ensure that the customer
gets Pepsi exactly when he requires.
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• Mass marketing via advertising Pepsi with customer attraction areas e.g.
celebrities (Shahrukh Khan, Junaid Jamshed, Adnan Sami), Sports
(Waseem Akram, Shahid khan Afridi), concerts etc.
• Price Indiscrimination all over the region
• Focusing on Brand image
• Customer retention schemes such as lucky draw, meeting your favorite
celebrity etc.
• Adding social and ethical benefits to every bottle they sell.
 Internal Environment
• Company
Coca-Cola prides itself in employing passionate and driven individuals. Its
employees are inspired workers who can make a difference.
Know the most recognized word on the planet after “OK”!
Major Products (Asia)
Coca-Cola introduced in Pakistan 1953
Fanta introduced in Pakistan 1965
Sprite was introduced 1972
Diet Coke & Fanta Lemon 2001
Market Summary
 Marketing Mix
The marketing mix is probably the most crucial stage of the marketing planning
process. The marketing mix refers to the combination of the four factors that
make up the core of a business’s marketing strategy.
a) Product
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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 (fast
moving consumer goods) distribution pattern.
• The effective distribution network of coke has almost eroded the small
and middle level players in the market.
• The core product is what the consumer is actually buying and the benefits
it gives. Coca Cola customers are buying a wide range of soft drinks.
• The actual product is the parts and features, which deliver the core
product. Consumers will buy the coke product because of the high
standards and high quality of the Coca Cola products.
b) Promotion
• Coca cola adopts various advertising and promotional strategies to create
an increased demand in the market by associating with life style and
behavior and mainly targeting value based advertising.
• You are more likely to see a coke ad individualized for a particular
festival or in with a general positive message
• It has many brand ambassadors
• It allows price discounts and allowances to distributors and retailers in
order to push more products into the market.
• It employs both push strategy through promotions and pull strategy
through advertisements and campaigns.
• 'Coca-Cola' is the most recognized trademark, recognized by 94% of the
world's population and is the most widely recognized word after "OK".
c) Place
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• The Coca Cola Company has always focused wide scale distribution.
• Coca Cola sets its own distributions directly to stores. Stores include a
wide variety of Supermarket, Marts, Convenience Stores, Retail Stores
and Departmental Stores.
• The channel distribution of Coca Cola Intl is extremely large.
• Over time, they have produced many products and thus have increased
number of warehouses for specific products.
d) Price
• Each sub-brand of Coke has different pricing strategy according to the
market and its segments.
• Since Coca Cola Intl faces a major threat from its competitor Pepsi Co, so
naturally the Pricing is done keeping in view the increasing rivalry with
Pepsi.
• Pricing is basically standard for all over the world. Price changes occur
seldom after a longer period of time say, a year etc.
• Mostly prices are devoid of governmental and/or political laws and
regulations but in Pakistan, due to an ever increasing rate of Inflation,
prices have increased in a short span of time.
SWOT Analysis
SWOT analysis is a technique used in general management as well as marketing
scenarios. SWOT consists of examining the current activities of the
organization- its Strengths and Weaknesses- and then using this and external
research data to set out the Opportunities and Threats that exist.
Strengths Weaknesses
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 Internal  Popularity
 Well known
 Branding obvious and easily
recognized
 A lot of finance
 Customer loyalty
 International Trade
 Holding a large part of world
culture for a very long time
 Brand image, supreme taste
quality
 Word of mouth
 Lack of popularity of many
Coca Cola’s brands
 Most unknown and rarely
seen
 Result of low profile or
non-existent advertising
 Health issues
 No Luxury packing
Threats Opportunities
 External  Changing health
consciousness attitude
 Legal issues
 Health ministers
 Competition (Pepsi)
 Many successful brands to
pursue
 Advertise its less popular
products
 Buy out competition.
 More Brand recognition
 Marketing Strategy
• Coke‘s marketing strategy enables them to listen to all the voices around
the world asking for beverages that can span the entire spectrum of tastes
and occasions.
• Coke ‘s products are for its customers and provides them what they want
in a beverage is a reflection of who they are, where they live, how they
work and play, and how they relax and recharge. Whether a student
enjoying a refreshing Coke, a child in home asking for a juice drink, or a
couple in buying bottled water after a run together, etc. They can all
enjoy Coke‘s products.
• They are determined not only to make great drinks, but also to contribute
to communities around the world through our commitments to education,
health, wellness, and diversity.
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COKE 2012
 Marketing Objectives
• To increase volume
• Expand their share of worldwide nonalcoholic ready to drink beverages
sale
• Maximize their long-term cash flows
• Create economic value added by improving economic profit.
• Coke aim is to focus on enhancing value for their customers.
 Major Segments
Coke segments its market in a number of ways.
• Coca Cola's, customer segmentation is mainly by their market
demographically based on age, income and family size.
• Coca Cola’s behavioral segmentation has been a key to the company’s
success.
• Age is one of the most significant parts of the segmentation of Coca
Cola.
• Coca cola customers are mainly teenagers and young adults between
the ages of 16 to 35.
• Coca Cola introduces Coca Cola diet for the people who are suffering
from diabetic and for those who are likely to avoid sugar and for the
aged people specially 40 plus.
• Coca cola also segment the market on the income basis by making little
pack.
• They have an awesome price range for all grades of people. They
introduce different prices of containers with different size for the
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people whose income is small. They think about student, poor people,
and middle class people economic condition for their pricing.
• Coca Cola makes a variation in their served bottle size into many ways
such as 500ml, 1L, 1.5L, 2L pack. So People can easily choose a
suitable pack based on their family size.
• Major segments are basically those people who take this drink daily
and those areas where their demand is higher than the other areas.
• There are so many people who take this drink daily and those people
who take weekly and those who take less often are always there as so,
their basic segments are those people who take this drink regularly.
 Market Positioning of Coca Cola
• The main theme of coca cola is “open happiness” Coke is trying to
influence the new generation and young boys and girls by giving varieties
of advertisement and taste.
• Every year coca cola spends lots of money to make a different creative
slogan for targeted people which they want to serve.
• Recently, coca cola has proven that, it is the highest selling cold drink in
the whole country and above the world.
• Positioning statement for Coca Cola To all, who wants best drinks to
quench their thrust, coca cola is one of the best cold drinks, which
provides the best quality and taste in an affordable price.
 Market Needs
• 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.
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COKE 2012
• The market needs vary with time and Coke has introduced its products
over time e.g. Coke Cherry etc.
 Market Behavior
• The behavior of Pakistani market has always been orientated on
“WHATS COLD GETS SOLD”.
• People normally focus on buying anything that is cold either Pepsi or
Coke
• The market behavior in Pakistan has not changed. A lot of people are
not entirely health conscious but over a few years due to increasing
awareness of obesity, people have adopted an alienated behavior to
soft drinks, which is why Coca Cola Intl. has provided them with the
perfect solution.
 Market Growth
• Coke also identifies its expansion
through the ANSOFF approach.
• Coca Cola in Pakistan is doing
market penetration through selling
its products to business buyer, who are huge multinational organizations
like McDonalds, Subway, Dunkin Donuts & many more & they are also
keeping the local market in focus. Fri Chicks, AFC etc are examples of
the buyers in the local market. They are selling the Coca Cola as the only
beverage in their restaurants.
Market Development
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• It is exploring new markets for the products you are already selling.
• Many flavors of Coke are not being sold in Pakistan.
• Coke can develop a new market if they introduce those flavors in
Pakistan.
 Market Size
• Coca Cola is one of the leading beverage companies in Pakistan.
• It covers the large market segment the market for coca cola as mentioned
in the SWOT analysis segment is encouraging.
• Coke has a great potential in the market they operating in.
• Coke has a large margin for growth in Pakistan.
Following are the major factors which influence the level of demand of a
product.
 Price
• Price is the major factor that affects the demand of the product. If the
price is not suitable to the consumers or customers than they will switch
any close substitute.
 Quality
• If a company provides the quality services or products then the demand of
the product increases. In order to run a successful market flourishment
consistency in the quality of the product is very important.
 Supply
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• Supply and demand of the product are the market forces and played the
main role in the product demand. If supply of the product decreased than
in some cases the demand of the product increase as well as the price of
the product can also increased.
 Taste
• Taste of product is the major factor that affects the demand of the
product. Like if the product is of good taste than the future demand of
the product is likely to increase and vice versa. If customers are not
satisfied by the taste of product according to their well, then they
will not buy product.
 Number of users
• Number of users α Demand
 Income
• Income level of the customers had a great impact on the demand of the
product. It directly relates to the purchasing power of the customer.
Your consumer must be able to purchase your product.
 Competitors
• Competitors are the biggest threat to the demand of product. If
competitors offer the same products as the company offers then the
customers got more alternatives. So increased alternatives, increases the
bargaining power of the customers and they can switch to another
substitute.
Product Life Cycle of Coke
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Products go through various steps throughout their useful lives. They are
introduced, grow, mature and eventually decline.
• Coke has been in the
industry since the
nineteenth century, so
if they continue with
the same marketing
strategy, then they will
send themselves
irrevocably into the
decline stage.
• Coke is in maturity
stage but gradually moving towards the declining stage of the product life
cycle. Management has to pay special attention to products during this
critical stage.
• The company must now determine whether they will stop producing
Coke, change the soda, find new uses for it, seek new markets for the soft
drink or if they will maintain their current strategy.
• Coke knows that they must begin to acknowledge the shift in consumer
tastes in order to remain competitive. They have done this successfully
many times in the past, as can be seen in the introduction of their popular
Diet Coke brand.
• Coke must break into the non-carbonated drink market in order to
acknowledge consumer’s new interest in healthy drinks
• During the maturity stage, products usually go through a slowdown in
sales growth. According to Coke 2001 annual report, sales have increased
by 1.02% compared to last year. This percentage has no comparison to
the high level of growth Coke enjoyed during its growth stage.
Brand Development Strategy
The brand development strategy of Coke is effective as it has been able to
construct, manage as well as maintain its brand image. Due to this Coke gained
unanimous acceptance all around the globe by its consumers.
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• Coke believes in selling out the best products to its customers to retain
them with their products.
• The company has also invested in various advertisement campaigns often
engaging the services of celebrities around the globe. In addition to the
consumers, there is another category of consumers, who increase the
consumer base and the constitute collectors of the brand.
• The collectors usually indulge in collecting old as well as upcoming logos
of Coca Cola, bottles and literary matter. With regard to the brand
development of Coca Cola Zero, the company came out with an
advertisement; this was quite different from the conventional ones. In this
regard, (no calorie beverage), it has sold out three types of products.
• Coca Cola Classic
• Diet Coke
• Coca Cola Zero.
 Brand Equity
• Brand of Coke has stood the rest of the time over 120 years. In fact Coke
has alone is recognized as the most valuable in the world by the respected
inter brand corporation.
• The coca-cola brand (coke) has become effectively a part of modern
world culture. Though its advertising campaign has changed over the
years, coca-cola “THE REAL TASTE” has always stood for a “REAL”
COLA DRINK with authenticity. The identity is build by a decade with
consistent values and differentiated product features.
• Many competitors have aim at cokes but the brand continues to command
a number one position globally in ranking of brand equity.
• After all if u stand for the real thing every competitor is an imitator the
Coca-Cola bottle design differentiated the identity, the easier it is to
protect from infringement.
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 Brand image
There could be hardly any person around the world that hasn't heard the name
Coca Cola ever since it begins as world leading name in cold drinks.
• Coca Cola has created a strong brand image irrespective of age, sex and
geographical locations. Millions of people around the world are
consuming cold drinks or soft drinks as part of their daily meal.
• Coke leader in soft drink market.
• Brand image is the significant factor affecting Coke’s sale. Coca-Cola’s
brand name is very well known all over the world.
• Packaging changes have also affected sales and industry positioning, but
in general, the public has ended not to be affected by new products. Coca-
Cola’s bottling system also allows the company to take advantage of
infinite growth opportunities around the world.
Brand Positioning
The location of a brand in relation to its competitors in some pre-defined space.
The space may be defined by criteria used by consumers, such as "value for
money" or "age of consumer" etc.”
4 main factors that go into defining a brand position:
• Brand Attributes
• Competitor attributes
• Price
• Consumer perception.
Coke’s main strategies are as follows
Strategic Planning
• Worldwide volume increased by 4 percent with strong international growth of
5 percent.
• Earnings per share grew by 82 percent.
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• Return on common equity grew from 23 percent to 38 percent this year.
• Return on capital increased from 16 percent in 2000 to 27 percent.
• The company has generated free cash flow of $3.1 billion, up from $2.8 billion
The marketing strategy for the future is as follows:
• Accelerate carbonated soft-drink growth, led by Coca-Cola.
• Selectively broaden the family of beverage brands to drive profitable growth.
• Grow system profitability and capability together with our bottling partners.
• Serve customers with creativity and consistency to generate growth across all
channels.
• Direct investments to highest potential areas across markets.
• Drive efficiency and cost-effectiveness everywhere.
Strategies Of Quality
After Micro and macro analysis Brand "coke" is primarily role
• Enhance competition moments
• When people watch cricket
• through commercialization
• Fun time
Expanding Target Market
• Attractive Brand Name
Now the consumers know the Name of Coke, because Coke is the name, which
is the most popular after the word "ok". So people can better differentiate
brands with each other.
• Brand Differentiation
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Now different companies have got different brand names. So, people can
distinguish between brands. Two major brands "coke" and "Pepsi" also have
brand names.
Strategies Of Getting Goals
Some major ways are as follows.
• Volume can be increased
• Interest level of consumers
• To take part in energetic festivals
Price Strategy
• Trade Promotion
Coca cola company gives incentives to middle men or retailers in such a way
that they offer them free samples and free empty bottles, by this these retailers
and middle man push their product in the market following "Seen as sold".
 Promotion Strategies
• Getting shelves
They get or purchase shelves in big departmental stores and display their
products in those shelves in attractive style.
• Eye Catching Position
Salesman of the coca cola company positions their freezers and their products in
eye-catching positions. Normally they keep their freezers near the entrance of
the stores.
• Sale Promotion
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Company also do sponsorships with different college and school's cafes and
sponsor their sports events and other extra curriculum activities for getting
market share.
• Distribution Channels
Coca Cola Company makes two types of 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 provide coke in bulks to wholesalers 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 wholesalers and agencies to assure their customers for
availability of coca cola products.
For providing their product in good manner company has provided
infrastructure which inclides.
• Vizi cooler • Freezers • Display racks
• Free empty bottles and shells for bottles
Advertisement
Coca Cola Company use different mediums
• Print media • Electronic media • TV commercial • Billboards and
holdings
• 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.
• Profitability
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Product differentiation and no compromise over the quality of product is the
key factor in getting high economic profit. Whoever they compromised over
the quality of the product the consumer will shift towards other available
options
• Target Volume
To run the business every industry increases volume in specific time period. If
industry achieves those goals in that period then for the coming year it increases
the volume of the target.
Coke did the same.
 Sales Promotion Activities
• Coca-Cola Cricket
• Coca-Cola Concerts
• Coca-Cola Food Mela
• Coca-Cola Basant Festival
• Coca-Cola GO-RED
• Coca-Cola Party in a Park
• Coca-Cola Shopping Festival
• Coca-Cola Pet Promotion
• Coca-Cola Ramzan Campaign
• Coca-Cola Wonder of the World Promotion
• Coca Cola TV Mazza
• Coca-Cola & Mc Donald's
• Fanta & Sprite Launched
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Financial Analysis
Growth Rate in Market Share Geographically
Unit Case Volume 2010 vs. 2011 Growth Rate
2008 vs
2009
Growth
5 Year Annual
Growth
Net Operating
Revenues
Operating
Income
Africa 10% 6% 16% 6%
Eurasia 16% 13% 24% 38%
European Union 3% 2% 14% 16%
Latin America 9% 6% 24% 22%
North America (1%) 1% 11% 1%
Pacific 7% 4% 7% 3%
Bottling
investments
64% N/A 53% 75%
Worldwide 6% 4% 20% 15%
Market Demographics:
In Pakistan Coke’s share is only 36%.
 POPULATION: 176,242,949 (July, 2009 estimated)
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 CHILDREN: 37.2% (65,607,612)
 ADULTS: 62.8% (110,680,572)
 CHILDREN EQUITY: 60% (14,643,619)
 ADULT EQUITY: 40% (27,802,960)
 TOTAL TARGET MARKET: 42,446,579
Financial Report
The financial report of Coca Cola Company of the year 2008 and 2009 along
with the percentage change is as follows.
(In millions except per share data, ratios and growth rates)
2010 2011 Δ%
Net operating revenues 31,944 28857 1%
Operating income 8,446 7,252 45%
Net income 5,874 6,027 82%
Net income per share (basic) 1.601
0.882
82%
Net income per share 1.601
0.882
82%
Net cash provided by operating activities 4,110 3,585 15%
Business reinvestment (963) (779) 24%
Dividends paid (1,791) (1,685) 6%
Share repurchase activity (277) (133) 108%
Free cash flow 3,147 2,806 12%
Return on capital 26.6% 16.2% -
Return on common equity 38.5% 23.1% -
Unit case sales (in billions)
25 | P a g e
COKE 2012
International operations 12.5 11.9 5%
North America operations 5.3 5.2 2%
Worldwide 17.8 17.1 4%
26 | P a g e
COKE 2012
Sales Forecast
Recommendations
Following are the recommendations which we came up after completing our
project:
• 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 an international firm Pakistani
people like less sweet cola drink. So the Coca-Cola Company should
think about bringing innovations in their products for example new diet
flavors or maybe more juices so as to fulfill the need of local market.
• Marketing team should try to increase the availability of Coke in rural
areas.
27 | P a g e
Sales and
Income Data
in Millions
2008 2009 2010 2011 2012
Net Sales $21,742 $23,104 $24,088 $28,857 $31,944
Net Income
(Profits)
$4,847 $4,872 $5,080 $5,981 $5,807
Units sold in
Billions
19.8 20.6 21.4 22.7 23.7
COKE 2012
• Coca Cola Company should think about producing Coke Can locally.
Because currently coke Cans are only smuggled from abroad and sold at
high prices. The Coca Cola Company can capitalize on this factor.
• Coca Cola Company should try to emphasis more on providing their
infrastructure in the market to facilitate their customers.
• According to the survey, conducted by the international firm Pakistani
people like little bit sweeter cola drink. So for this coca cola company
should produce their product according to the local demand.
• Marketing team should try to increase the availability of Coke in rural
areas.
• Now young generation has a trend to drink coke 2 regular bottles at same
time, so providing more satisfaction to them company should introduce
new disposable bottles
• They should also introduce 3 liters family pack coke and other fruit juices
in the market.
References
• www.cocacola.com
• www.thecocacolacompany.com
• www.wikipedia.com
• www.coca-cola.com
• www.scribd.com
• www.answers.com
• Principles of Marketing by Philip Kotler
• Strategic Marketing by David W. Cravens
28 | P a g e
COKE 2012
• Local Newspapers: Dawn, The Nation and The News
***Success Without Effort Is A Impossible***
29 | P a g e

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  • 1. COKE 2012 1 | P a g e MARKETING PROJECT COKE MARKET ANALYSIS SUBMITTED BY : MUHAMMAD GHAYAS SUBMITTED TO: SIR.BILAL RIAZ DATE OF SUBMISSION: 07JUNE, 2012 ARMY PUBLIC COLLEGE OF MANAGEMENT AND SCIENCES KHADIM HUSSAIN ROAD, LALKURTI, RAWALPINDI. ARMY PUBLIC COLLEGE OF MANAGEMENT AND SCIENCES KHADIM HUSSAIN ROAD, LALKURTI, RAWALPINDI.
  • 2. COKE 2012 ACKNOWLWDGEMENT First and fore mostly we would like to thank Almighty Allah who blessed us with knowledge, understanding and ability to do this project. We have discovered that the work of some unknown persons makes our lives easier every day. We believe it's appropriate to acknowledge all of these unknown persons; but it is also necessary to acknowledge those people we know have directly shaped our lives and our work. First of all we would like to thank our teacher Mr. Bilal Riaz Chauhan for his guidance throughout the semester. DEDICATION This project is dedicated to our parents who have enabled us to stand on our own feet and have guided us in all matters of life. May Allah bless them! Ameen Executive Summary We are the students of BBA & Bsc – A/f of Army Public College of Management & Science and we have established this marketing project on Coke after critically examining and thoroughly researching over it. It consists of examining PEST Analysis, SWOT Analysis, and Market Segmentation, Market Environment (Macro & Micro, Market research, Market Strategy, Brand Strategy, Marketing Mix and carefully scrutinizing the soft drink industry and possibilities for Coca Cola in the market. We have carefully analyzed the internal and external business environments and critically examined the industry in general, considering all external threats and opportunities. About The Company 2 | P a g e
  • 3. COKE 2012 The Coke Cola was established in 1886 by John S. Pemberton in Columbia, Georgia. In 1889 Coca Cola formula and brand was established by Asa Candler who also incorporated The Coca-Cola Company in 1892. However the bottling business began in 1899. The Coca-Cola Company is a multinational beverage corporation and manufacturer and marketer of non-alcoholic beverage concentrates and syrups which are then sold to various countries throughout the world. Type Soft Drink (Cola) Manufacturer The Coca- Cola Company Founder (s) John S. Pemberton Country of Origin United States Introduced 1886 Area Served Over 200 countries Brands More then 500 Flavors Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry. Employees 92,400 Servings per Day 1.6 Billion Website www.coca-cola.com Coca Cola Pakistan The Coke Cola company started operating in Pakistan in 1953 which is owned by (CCBP) Coca Cola Beverages Pakistan Limited. Its Plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan, Multan and Lahore. The remaining two plants, independently owned, are in Rawalpindi and Peshawar. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan employs 1,800 people. Mission Statement 3 | P a g e
  • 4. COKE 2012 Following are the declarations of COKE overall mission and goals, and the values that COKE is guided by as a company and as individuals. • To refresh the world - in mind, body and spirit • To inspire moments of optimism - through our brands and actions • To create value and make a difference everywhere we engage Coca Cola Company Vision To achieve COKE mission, they has developed a set of goals, which they will work with their bottlers to deliver: • Profit: Maximizing return to shareholders, while being mindful of our overall responsibilities • People: Being a great place to work, where people are inspired to be the best they can be • Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy people's desires and needs • Partners: Nurturing a winning network of partners and building mutual loyalty • Planet: Being a responsible global citizen that makes a difference • Productivity: Be a highly effective, lean and fast-moving organization The Coca Cola Company Values • Leadership • Passion • Integrity • Accountability • Innovation • Quality The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: • Consumer demand drives everything we do. • Brand Coca Cola is the core of our business • We will serve consumers a broad selection of the nonalcoholic ready-to– drink beverages they want to drink throughout the day. • We will be the best marketers in the world. • We will think and act locally. • We will lead as a model corporate citizen. 4 | P a g e
  • 5. COKE 2012 MAJOR PRODUCTS OF COCA COLA INTERNATIONAL Product Name Image Coke Sprite Fanta Diet Coke Minute Maid Minute Maid Juices Kinley Drinking Water Marketing Analysis 5 | P a g e
  • 6. COKE 2012 This involves the External (Macro & Micro environment) & Internal Environment analysis of Coke. Coca-Cola's External (Macro) environment • Political Analysis and Factors Coke comes in the food category under the FDA (Food and Drug Administration).It means that government has a control over Coke manufacturing activates by setting standards of law for Coke to reach. It has created changes in Laws and Regulations like; changes in Accounting Standards, taxation requirements, and environmental laws either in domestic or foreign authorities. Non-Alcoholic business era. These are competitive product and pricing policy pressures, ability to maintain or earn share of sales in worldwide market compared to rivals. • Economic Forces Pakistan has recently faced an economic crisis which has forced consumers to cut down their spending. For Coke's off-brand competitors, this could mean an increase in sales. Coca-Cola must begin watching consumer spending habits, as many could be opting to purchase a cheaper alternative cola. • Social In Pakistan currently majority of people are exercising healthier lifestyle due to this they are switching to bottled water and diet colas such as Coca-Cola Light or Zero, instead of drinking other beverages. Additionally, time management is quite 43 % of all households, and it has increased. Customers aged from 37 to 55, are concerned with their nutrition. Also, large portion of the population is within the range of baby boomers age. That will continue by increasing the demand in healthier and other beverages. • Technological Forces The clever scientists with Coca-Cola are constantly finding new ways to work with technology. For instance, one promotion that I found interesting was the conversion of Coke cans into GPS devices. In 2004, Coke ran a promotion that 120 lucky cola drinkers could find a Coke can with a GPS device attached. This type of technology allowed the can to turn into a mobile phone.  Coca-Cola's External (Micro) environment 6 | P a g e
  • 7. COKE 2012 • Suppliers Coke considers its suppliers as a partner in their business. As coke want its suppliers to maintain the best quality possible because suppliers are linked to customer value. So Coke provides extensive training to suppliers, and also routine inspections In order to build good relations with its suppliers and maintain quality product. Following are coca cola suppliers  CCBSS(Provide fructose corn syrup)  Nutrasweet and Ajinomoto ( supply Acesulfame potassium)  Tate and Lyle (Supply Sucralose) • Marketing Intermediaries Coke works with its intermediaries to maximize sales. Coke offers a website to solve its intermediary’s problems and to build traffic and strengthen operations, training employees to sell "value meals", and improving server hospitality to foster consumer satisfaction. Coke works directly with its retailers, as they too are partners in business. • Customers Customer satisfaction is considered as being the most important and vital things in Coke progress. Coke dedicates a page on their website for customers to share how Coke has shaped their lives. Coke cares about every one of its customers, and strives to reward its customers with great service, and a great product. • Competitors Coke’s main rival is PEPSI so Coke’s objective is to deliver a better product to its consumers than PEPSI so far. Coke is successful in doing so; it has created brand awareness in consumers mind with the help of successful advertising, and by constantly developing new products for its customers to enjoy.  Competitor Analysis MAJOR COMPETETOR: PEPSI CO. • Maintaining its supply chain management to ensure that the customer gets Pepsi exactly when he requires. 7 | P a g e
  • 8. COKE 2012 • Mass marketing via advertising Pepsi with customer attraction areas e.g. celebrities (Shahrukh Khan, Junaid Jamshed, Adnan Sami), Sports (Waseem Akram, Shahid khan Afridi), concerts etc. • Price Indiscrimination all over the region • Focusing on Brand image • Customer retention schemes such as lucky draw, meeting your favorite celebrity etc. • Adding social and ethical benefits to every bottle they sell.  Internal Environment • Company Coca-Cola prides itself in employing passionate and driven individuals. Its employees are inspired workers who can make a difference. Know the most recognized word on the planet after “OK”! Major Products (Asia) Coca-Cola introduced in Pakistan 1953 Fanta introduced in Pakistan 1965 Sprite was introduced 1972 Diet Coke & Fanta Lemon 2001 Market Summary  Marketing Mix The marketing mix is probably the most crucial stage of the marketing planning process. The marketing mix refers to the combination of the four factors that make up the core of a business’s marketing strategy. a) Product 8 | P a g e
  • 9. COKE 2012 • 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 (fast moving consumer goods) distribution pattern. • The effective distribution network of coke has almost eroded the small and middle level players in the market. • The core product is what the consumer is actually buying and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks. • The actual product is the parts and features, which deliver the core product. Consumers will buy the coke product because of the high standards and high quality of the Coca Cola products. b) Promotion • Coca cola adopts various advertising and promotional strategies to create an increased demand in the market by associating with life style and behavior and mainly targeting value based advertising. • You are more likely to see a coke ad individualized for a particular festival or in with a general positive message • It has many brand ambassadors • It allows price discounts and allowances to distributors and retailers in order to push more products into the market. • It employs both push strategy through promotions and pull strategy through advertisements and campaigns. • 'Coca-Cola' is the most recognized trademark, recognized by 94% of the world's population and is the most widely recognized word after "OK". c) Place 9 | P a g e
  • 10. COKE 2012 • The Coca Cola Company has always focused wide scale distribution. • Coca Cola sets its own distributions directly to stores. Stores include a wide variety of Supermarket, Marts, Convenience Stores, Retail Stores and Departmental Stores. • The channel distribution of Coca Cola Intl is extremely large. • Over time, they have produced many products and thus have increased number of warehouses for specific products. d) Price • Each sub-brand of Coke has different pricing strategy according to the market and its segments. • Since Coca Cola Intl faces a major threat from its competitor Pepsi Co, so naturally the Pricing is done keeping in view the increasing rivalry with Pepsi. • Pricing is basically standard for all over the world. Price changes occur seldom after a longer period of time say, a year etc. • Mostly prices are devoid of governmental and/or political laws and regulations but in Pakistan, due to an ever increasing rate of Inflation, prices have increased in a short span of time. SWOT Analysis SWOT analysis is a technique used in general management as well as marketing scenarios. SWOT consists of examining the current activities of the organization- its Strengths and Weaknesses- and then using this and external research data to set out the Opportunities and Threats that exist. Strengths Weaknesses 10 | P a g e
  • 11. COKE 2012  Internal  Popularity  Well known  Branding obvious and easily recognized  A lot of finance  Customer loyalty  International Trade  Holding a large part of world culture for a very long time  Brand image, supreme taste quality  Word of mouth  Lack of popularity of many Coca Cola’s brands  Most unknown and rarely seen  Result of low profile or non-existent advertising  Health issues  No Luxury packing Threats Opportunities  External  Changing health consciousness attitude  Legal issues  Health ministers  Competition (Pepsi)  Many successful brands to pursue  Advertise its less popular products  Buy out competition.  More Brand recognition  Marketing Strategy • Coke‘s marketing strategy enables them to listen to all the voices around the world asking for beverages that can span the entire spectrum of tastes and occasions. • Coke ‘s products are for its customers and provides them what they want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether a student enjoying a refreshing Coke, a child in home asking for a juice drink, or a couple in buying bottled water after a run together, etc. They can all enjoy Coke‘s products. • They are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. 11 | P a g e
  • 12. COKE 2012  Marketing Objectives • To increase volume • Expand their share of worldwide nonalcoholic ready to drink beverages sale • Maximize their long-term cash flows • Create economic value added by improving economic profit. • Coke aim is to focus on enhancing value for their customers.  Major Segments Coke segments its market in a number of ways. • Coca Cola's, customer segmentation is mainly by their market demographically based on age, income and family size. • Coca Cola’s behavioral segmentation has been a key to the company’s success. • Age is one of the most significant parts of the segmentation of Coca Cola. • Coca cola customers are mainly teenagers and young adults between the ages of 16 to 35. • Coca Cola introduces Coca Cola diet for the people who are suffering from diabetic and for those who are likely to avoid sugar and for the aged people specially 40 plus. • Coca cola also segment the market on the income basis by making little pack. • They have an awesome price range for all grades of people. They introduce different prices of containers with different size for the 12 | P a g e
  • 13. COKE 2012 people whose income is small. They think about student, poor people, and middle class people economic condition for their pricing. • Coca Cola makes a variation in their served bottle size into many ways such as 500ml, 1L, 1.5L, 2L pack. So People can easily choose a suitable pack based on their family size. • Major segments are basically those people who take this drink daily and those areas where their demand is higher than the other areas. • There are so many people who take this drink daily and those people who take weekly and those who take less often are always there as so, their basic segments are those people who take this drink regularly.  Market Positioning of Coca Cola • The main theme of coca cola is “open happiness” Coke is trying to influence the new generation and young boys and girls by giving varieties of advertisement and taste. • Every year coca cola spends lots of money to make a different creative slogan for targeted people which they want to serve. • Recently, coca cola has proven that, it is the highest selling cold drink in the whole country and above the world. • Positioning statement for Coca Cola To all, who wants best drinks to quench their thrust, coca cola is one of the best cold drinks, which provides the best quality and taste in an affordable price.  Market Needs • 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. 13 | P a g e
  • 14. COKE 2012 • The market needs vary with time and Coke has introduced its products over time e.g. Coke Cherry etc.  Market Behavior • The behavior of Pakistani market has always been orientated on “WHATS COLD GETS SOLD”. • People normally focus on buying anything that is cold either Pepsi or Coke • The market behavior in Pakistan has not changed. A lot of people are not entirely health conscious but over a few years due to increasing awareness of obesity, people have adopted an alienated behavior to soft drinks, which is why Coca Cola Intl. has provided them with the perfect solution.  Market Growth • Coke also identifies its expansion through the ANSOFF approach. • Coca Cola in Pakistan is doing market penetration through selling its products to business buyer, who are huge multinational organizations like McDonalds, Subway, Dunkin Donuts & many more & they are also keeping the local market in focus. Fri Chicks, AFC etc are examples of the buyers in the local market. They are selling the Coca Cola as the only beverage in their restaurants. Market Development 14 | P a g e
  • 15. COKE 2012 • It is exploring new markets for the products you are already selling. • Many flavors of Coke are not being sold in Pakistan. • Coke can develop a new market if they introduce those flavors in Pakistan.  Market Size • Coca Cola is one of the leading beverage companies in Pakistan. • It covers the large market segment the market for coca cola as mentioned in the SWOT analysis segment is encouraging. • Coke has a great potential in the market they operating in. • Coke has a large margin for growth in Pakistan. Following are the major factors which influence the level of demand of a product.  Price • Price is the major factor that affects the demand of the product. If the price is not suitable to the consumers or customers than they will switch any close substitute.  Quality • If a company provides the quality services or products then the demand of the product increases. In order to run a successful market flourishment consistency in the quality of the product is very important.  Supply 15 | P a g e
  • 16. COKE 2012 • Supply and demand of the product are the market forces and played the main role in the product demand. If supply of the product decreased than in some cases the demand of the product increase as well as the price of the product can also increased.  Taste • Taste of product is the major factor that affects the demand of the product. Like if the product is of good taste than the future demand of the product is likely to increase and vice versa. If customers are not satisfied by the taste of product according to their well, then they will not buy product.  Number of users • Number of users α Demand  Income • Income level of the customers had a great impact on the demand of the product. It directly relates to the purchasing power of the customer. Your consumer must be able to purchase your product.  Competitors • Competitors are the biggest threat to the demand of product. If competitors offer the same products as the company offers then the customers got more alternatives. So increased alternatives, increases the bargaining power of the customers and they can switch to another substitute. Product Life Cycle of Coke 16 | P a g e
  • 17. COKE 2012 Products go through various steps throughout their useful lives. They are introduced, grow, mature and eventually decline. • Coke has been in the industry since the nineteenth century, so if they continue with the same marketing strategy, then they will send themselves irrevocably into the decline stage. • Coke is in maturity stage but gradually moving towards the declining stage of the product life cycle. Management has to pay special attention to products during this critical stage. • The company must now determine whether they will stop producing Coke, change the soda, find new uses for it, seek new markets for the soft drink or if they will maintain their current strategy. • Coke knows that they must begin to acknowledge the shift in consumer tastes in order to remain competitive. They have done this successfully many times in the past, as can be seen in the introduction of their popular Diet Coke brand. • Coke must break into the non-carbonated drink market in order to acknowledge consumer’s new interest in healthy drinks • During the maturity stage, products usually go through a slowdown in sales growth. According to Coke 2001 annual report, sales have increased by 1.02% compared to last year. This percentage has no comparison to the high level of growth Coke enjoyed during its growth stage. Brand Development Strategy The brand development strategy of Coke is effective as it has been able to construct, manage as well as maintain its brand image. Due to this Coke gained unanimous acceptance all around the globe by its consumers. 17 | P a g e
  • 18. COKE 2012 • Coke believes in selling out the best products to its customers to retain them with their products. • The company has also invested in various advertisement campaigns often engaging the services of celebrities around the globe. In addition to the consumers, there is another category of consumers, who increase the consumer base and the constitute collectors of the brand. • The collectors usually indulge in collecting old as well as upcoming logos of Coca Cola, bottles and literary matter. With regard to the brand development of Coca Cola Zero, the company came out with an advertisement; this was quite different from the conventional ones. In this regard, (no calorie beverage), it has sold out three types of products. • Coca Cola Classic • Diet Coke • Coca Cola Zero.  Brand Equity • Brand of Coke has stood the rest of the time over 120 years. In fact Coke has alone is recognized as the most valuable in the world by the respected inter brand corporation. • The coca-cola brand (coke) has become effectively a part of modern world culture. Though its advertising campaign has changed over the years, coca-cola “THE REAL TASTE” has always stood for a “REAL” COLA DRINK with authenticity. The identity is build by a decade with consistent values and differentiated product features. • Many competitors have aim at cokes but the brand continues to command a number one position globally in ranking of brand equity. • After all if u stand for the real thing every competitor is an imitator the Coca-Cola bottle design differentiated the identity, the easier it is to protect from infringement. 18 | P a g e
  • 19. COKE 2012  Brand image There could be hardly any person around the world that hasn't heard the name Coca Cola ever since it begins as world leading name in cold drinks. • Coca Cola has created a strong brand image irrespective of age, sex and geographical locations. Millions of people around the world are consuming cold drinks or soft drinks as part of their daily meal. • Coke leader in soft drink market. • Brand image is the significant factor affecting Coke’s sale. Coca-Cola’s brand name is very well known all over the world. • Packaging changes have also affected sales and industry positioning, but in general, the public has ended not to be affected by new products. Coca- Cola’s bottling system also allows the company to take advantage of infinite growth opportunities around the world. Brand Positioning The location of a brand in relation to its competitors in some pre-defined space. The space may be defined by criteria used by consumers, such as "value for money" or "age of consumer" etc.” 4 main factors that go into defining a brand position: • Brand Attributes • Competitor attributes • Price • Consumer perception. Coke’s main strategies are as follows Strategic Planning • Worldwide volume increased by 4 percent with strong international growth of 5 percent. • Earnings per share grew by 82 percent. 19 | P a g e
  • 20. COKE 2012 • Return on common equity grew from 23 percent to 38 percent this year. • Return on capital increased from 16 percent in 2000 to 27 percent. • The company has generated free cash flow of $3.1 billion, up from $2.8 billion The marketing strategy for the future is as follows: • Accelerate carbonated soft-drink growth, led by Coca-Cola. • Selectively broaden the family of beverage brands to drive profitable growth. • Grow system profitability and capability together with our bottling partners. • Serve customers with creativity and consistency to generate growth across all channels. • Direct investments to highest potential areas across markets. • Drive efficiency and cost-effectiveness everywhere. Strategies Of Quality After Micro and macro analysis Brand "coke" is primarily role • Enhance competition moments • When people watch cricket • through commercialization • Fun time Expanding Target Market • Attractive Brand Name Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word "ok". So people can better differentiate brands with each other. • Brand Differentiation 20 | P a g e
  • 21. COKE 2012 Now different companies have got different brand names. So, people can distinguish between brands. Two major brands "coke" and "Pepsi" also have brand names. Strategies Of Getting Goals Some major ways are as follows. • Volume can be increased • Interest level of consumers • To take part in energetic festivals Price Strategy • Trade Promotion Coca cola company gives incentives to middle men or retailers in such a way that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market following "Seen as sold".  Promotion Strategies • Getting shelves They get or purchase shelves in big departmental stores and display their products in those shelves in attractive style. • Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores. • Sale Promotion 21 | P a g e
  • 22. COKE 2012 Company also do sponsorships with different college and school's cafes and sponsor their sports events and other extra curriculum activities for getting market share. • Distribution Channels Coca Cola Company makes two types of 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 provide coke in bulks to wholesalers 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 wholesalers and agencies to assure their customers for availability of coca cola products. For providing their product in good manner company has provided infrastructure which inclides. • Vizi cooler • Freezers • Display racks • Free empty bottles and shells for bottles Advertisement Coca Cola Company use different mediums • Print media • Electronic media • TV commercial • Billboards and holdings • 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. • Profitability 22 | P a g e
  • 23. COKE 2012 Product differentiation and no compromise over the quality of product is the key factor in getting high economic profit. Whoever they compromised over the quality of the product the consumer will shift towards other available options • Target Volume To run the business every industry increases volume in specific time period. If industry achieves those goals in that period then for the coming year it increases the volume of the target. Coke did the same.  Sales Promotion Activities • Coca-Cola Cricket • Coca-Cola Concerts • Coca-Cola Food Mela • Coca-Cola Basant Festival • Coca-Cola GO-RED • Coca-Cola Party in a Park • Coca-Cola Shopping Festival • Coca-Cola Pet Promotion • Coca-Cola Ramzan Campaign • Coca-Cola Wonder of the World Promotion • Coca Cola TV Mazza • Coca-Cola & Mc Donald's • Fanta & Sprite Launched 23 | P a g e
  • 24. COKE 2012 Financial Analysis Growth Rate in Market Share Geographically Unit Case Volume 2010 vs. 2011 Growth Rate 2008 vs 2009 Growth 5 Year Annual Growth Net Operating Revenues Operating Income Africa 10% 6% 16% 6% Eurasia 16% 13% 24% 38% European Union 3% 2% 14% 16% Latin America 9% 6% 24% 22% North America (1%) 1% 11% 1% Pacific 7% 4% 7% 3% Bottling investments 64% N/A 53% 75% Worldwide 6% 4% 20% 15% Market Demographics: In Pakistan Coke’s share is only 36%.  POPULATION: 176,242,949 (July, 2009 estimated) 24 | P a g e
  • 25. COKE 2012  CHILDREN: 37.2% (65,607,612)  ADULTS: 62.8% (110,680,572)  CHILDREN EQUITY: 60% (14,643,619)  ADULT EQUITY: 40% (27,802,960)  TOTAL TARGET MARKET: 42,446,579 Financial Report The financial report of Coca Cola Company of the year 2008 and 2009 along with the percentage change is as follows. (In millions except per share data, ratios and growth rates) 2010 2011 Δ% Net operating revenues 31,944 28857 1% Operating income 8,446 7,252 45% Net income 5,874 6,027 82% Net income per share (basic) 1.601 0.882 82% Net income per share 1.601 0.882 82% Net cash provided by operating activities 4,110 3,585 15% Business reinvestment (963) (779) 24% Dividends paid (1,791) (1,685) 6% Share repurchase activity (277) (133) 108% Free cash flow 3,147 2,806 12% Return on capital 26.6% 16.2% - Return on common equity 38.5% 23.1% - Unit case sales (in billions) 25 | P a g e
  • 26. COKE 2012 International operations 12.5 11.9 5% North America operations 5.3 5.2 2% Worldwide 17.8 17.1 4% 26 | P a g e
  • 27. COKE 2012 Sales Forecast Recommendations Following are the recommendations which we came up after completing our project: • 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 an international firm Pakistani people like less sweet cola drink. So the Coca-Cola Company should think about bringing innovations in their products for example new diet flavors or maybe more juices so as to fulfill the need of local market. • Marketing team should try to increase the availability of Coke in rural areas. 27 | P a g e Sales and Income Data in Millions 2008 2009 2010 2011 2012 Net Sales $21,742 $23,104 $24,088 $28,857 $31,944 Net Income (Profits) $4,847 $4,872 $5,080 $5,981 $5,807 Units sold in Billions 19.8 20.6 21.4 22.7 23.7
  • 28. COKE 2012 • Coca Cola Company should think about producing Coke Can locally. Because currently coke Cans are only smuggled from abroad and sold at high prices. The Coca Cola Company can capitalize on this factor. • Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. • According to the survey, conducted by the international firm Pakistani people like little bit sweeter cola drink. So for this coca cola company should produce their product according to the local demand. • Marketing team should try to increase the availability of Coke in rural areas. • Now young generation has a trend to drink coke 2 regular bottles at same time, so providing more satisfaction to them company should introduce new disposable bottles • They should also introduce 3 liters family pack coke and other fruit juices in the market. References • www.cocacola.com • www.thecocacolacompany.com • www.wikipedia.com • www.coca-cola.com • www.scribd.com • www.answers.com • Principles of Marketing by Philip Kotler • Strategic Marketing by David W. Cravens 28 | P a g e
  • 29. COKE 2012 • Local Newspapers: Dawn, The Nation and The News ***Success Without Effort Is A Impossible*** 29 | P a g e