2003 ALI COCACOLA FINAL report

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    MARKETING MANAGEMENET

    REPORT ON

    Beverages PakistanLtd.

    SUBMITTED TO:

    SIR ZULIFQAR AHMED

    SUBMITTED BY:

    DATE: 7th OF DEC 20072

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    PREFACE:

    This management report is all about the coca-cola company and its products. In this document

    Microsoft word is used.

    Writing the report has greatly enhanced our knowledge and has proved to be a learning

    experience as it has enabled us to view the subject from a different respective .We haveresearched our topics thoroughly and written the report to the best of our quality.

    This report is all about coca-cola beverages Pakistan Ltd. The coca-cola company is pioneer

    in setting up modern soft drink industry in Pakistan. But still coca cola Company is not the

    leader in market because it has lower market share than Pepsi through this report we have

    searched that how much people are more attracted or consume coca-cola.

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    ACKNOWLEDGEMENTS:

    First of all we would like to thank Almighty Allah.

    Then, we would like to thank our respected course instructor MR ZULIFQAR AHMED who

    gave us the necessary insight and in depth understanding of the subject without which it would

    have been impossible to complete the report on The Coca Cola Company-. The

    understanding which developed under your surveillance and guidance throughout the

    semester was really commendable and helpful really it was just because of your insightful

    teachings that expand the horizons of our knowledge, with the help of which we could achieve

    our objective.

    We wish to thank Muneer Ahmed (Marketing Services Manager) Coca-Cola Beverages

    Pakistan Limited who helped in making the completion of this report by providing necessary

    information.

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    EXECUTIVE SUMMARY:

    This marketing report is all about the coca-cola company and its products.

    This report is all about coca-cola beverages Pakistan Ltd. The coca-cola company is

    pioneer in setting up modern soft drink industry in Pakistan.

    The coca-cola company is the global soft-drink industry leader, with world

    headquarters in Atlanta, Georgia. Syrups, concentrates and beverage bases of coca-cola,

    the companys flagship brand, and over 160 other company soft-drink brands are

    manufactured and sold by the coca-cola company and its subsidiaries in nearly 200

    countries around the world.

    The Coca Cola is pioneer in setting up modern soft drink industry in Pakistan.

    Before Coca Cola came to Pakistan in 1953, the country had no national soft drink industry.

    Coca-Cola is a carbonated cola soft drink, produced by the Coca-Cola of Atlanta, Georgia.

    The Coca-Cola Company markets four of the worlds top-five soft drink brands,

    including Diet Coke, Fanta and Sprite. In 1886, the year Coca-Cola was first sold in a

    neighborhood pharmacy in Atlanta, sales of Coca-Cola averaged nine drinks per day.

    The products of the Coca Cola Company include a wide range of non-alcoholic

    beverages. In Pakistan, the Companys range of trade marked beverages brands include

    Coca Cola, Diet Coke, Sprite and Fanta.

    Coca colas product line consists of the following number of items:

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    In the year 2000 the Coca Cola Company surged with the marketing activities to re-

    ignite its beverage and brand identities.

    The Coca Cola beverage are produced and sold in Pakistan by the companys

    authorized two local bottling partners at 8 bottling plants.

    Coca cola has followed all the main kinds of sales promotion strategies.

    Price promotion: - coca cola has always used price promoting strategies.

    Coca cola is a refreshing soft drink .the basic features of coca cola are

    Coca cola has the following main attributes:-

    Size availability: - Coca cola is available in every size.

    Product line: - Coca cola has introduced many new product extensions and launched

    many new products like, Fanta, diet coke etc.

    Globally, The Coca-Cola Company owns or licenses nearly 400 brands in the

    nonalcoholic beverage business.

    Coca-Colas brand name is known well throughout 90% of the world today.

    Coca Colas top three direct competitors are:

    Pakistan beverages; PEPSI

    Continental Bottles limited; R.C. Cola

    The primary competitor of the Coca-Cola Company is Pepsi.

    Coca-Cola responded to the challenge by price discounting. Pepsi campaign shifted the

    company from the bargain brand image to a contender of Coca-Colas quality image, while

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    Coca-Cola changed to a bargain strategy. Pepsi aggressively responded with its own price

    cuts and Coca-Cola in turned matched the company.

    Before Coca Cola came into Pakistan in 1953 the country had no national soft drink

    industry. The Coca Cola Company and bottlers take advantage of virtually limitless worldwide

    growth opportunities.

    In 2003, every function of The Coca-Cola Company integrated these priorities into their

    business plans. Accelerate Carbonated Soft-Drink Growth, Led by Coca-Cola.

    Coca Cola Company uses 3 different ways of distribution.

    The Coca Cola beverage are produced and sold in Pakistan by the companys authorized

    two local bottling partners at 8 bottling plants.

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    TABLE OF CONTENTS:

    INTRODUCTION9

    COMPANY AND MARKETING PHILOSOPHIES...14

    MARKETING MIX.15

    MARKET SHARE.22

    GROWTH RATE..23

    PRODUCT LINE & PRODUCT MIX.24

    PRODUCT LIFE CYCLE.25

    CHANNEL OF DISTRIBUTION29

    TOOLS OF PROMOTION MIX32

    INTERVIEW..35

    ASSUMPTIONS......................................................................................47

    OBSERVED CULTURE AND ETHICS 48

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    CONCLUSION & RECOMMENDATIONS..49

    REFERENCES50

    INTRODUCTION:

    The coca-cola company is the global soft-drink industry leader, with world headquarters in

    Atlanta, Georgia. The company and its subsidiaries employ nearly 30,000 people around the

    world. Syrups, concentrates and beverage bases of coca-cola, the companys flagship brand,

    and over 160 other company soft-drink brands are manufactured and sold by the coca-cola

    company and its subsidiaries in nearly 200 countries around the world. In fact, approximately

    70 percent of company volume and 80 percent of company profit come from outside the United

    States.

    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 coca-cola company has a commitment, more than a century old, to social responsibility

    through philanthropy and good citizenship. The companys reputation for good corporate

    citizenship results from charitable donations, employee volunteerism, technical assistance and

    other demonstrations of support in thousands of communitys world wide.

    The employment and income generated by the Coca Cola system extents to 1000 of people of

    whom the Coca Cola Bottlers and distributions directly employ 8000.

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    Coca-Cola is a cola (a type ofcarbonated soft drink) sold in stores, restaurants and vending

    machines in more than 200 countries. It is produced by The Coca-Cola Company (NYSE:KO)

    and is often referred to simply as Coke. Originally intended as a patent medicine when it was

    invented in the late 19th century by John Pemberton, Coca-Cola was bought out by

    businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the

    world soft drink market throughout the 20th century.

    The company actually produces concentrate for Coca-Cola, which is then sold to various

    licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive

    contracts with the company, produce finished product in cans and bottles from the concentratein combination with filtered water and sweeteners. The bottlers then sell, distribute and

    merchandise Coca-Cola in cans and bottles to retail stores and vending machines. Such

    bottlers include Coca-Cola Enterprises, which is the single largest Coca-Cola bottler in North

    America, Australia, Asia and Europe. The Coca-Cola Company also sells concentrate for

    fountain sales to major restaurants and food service distributors.

    The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand

    name. The most common of these is Diet Coke, which has become a major diet cola.

    However, others exist, including Diet Coke Caffeine-Free, Cherry Coke, Coca-Cola Zero,

    Vanilla Coke and special editions with lemon and with lime, and even with coffee. The Coca-

    Cola Company owns and markets other soft drinks that do not carry the large Coca-Cola brand

    marking, such as Sprite, Fanta, Pibb, and others, but the Coca-Cola Company's trademark

    name can usually be found somewhere on the bottle or can.

    HISTORY:

    The first Coca-Cola recipe was invented in Columbus, Georgia, by John Stith Pemberton,

    originally as a coca wine called Pemberton's Freedom Wine Coca in 1885. He may have been

    inspired by the formidable success ofEuropean Angelo Mariani's cocawine, Vin Mariani.

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    In 1885, when Atlanta and Fulton County passed Prohibition legislation, Pemberton responded

    by developing Coca-Cola, essentially a carbonated, non-alcoholic version of French Wine

    Cola.

    The first sales were at Jacob's

    Pharmacy in Atlanta, Georgia, on

    May 8, 1886.[It was initially sold as a

    patent medicine for five cents a glass

    at soda fountains, which were

    popular in the United States at the

    time thanks to a belief that

    carbonated water was good for the

    health.[] Pemberton claimed Coca-

    Cola cured many diseases, including

    morphine addiction, dyspepsia,

    neurasthenia, headache, and

    impotence. Pemberton ran the first

    advertisement for the beverage on

    May 29 of the same year in the

    Atlanta Journal. For the first eight

    months only nine drinks were sold each day.

    By 1888, three versions of Coca-Cola sold by three separate businesses were on the

    market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and

    incorporated it as the Coca Cola Company in 1888.[]The same year, while suffering from an

    ongoing addiction to morphine, Pemberton sold the rights a second time to four more

    businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile,

    Pemberton's alcoholic son Charley Pemberton began selling his own version of the product. [

    In an attempt to clarify the situation, John Pemberton declared that the name Coca-Cola

    belonged to Charley, but the other two manufacturers could continue to use the formula. So, in

    the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After

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    Before Coca Cola came to Pakistan in 1953, the country had no national soft drink industry. A

    couple of regional companies did exist, but with a few exceptions, soft drink was merely

    produced locally by hundreds of small, often one-man units. Operation of these units and the

    quality of their products were to say the least, questionable. Untreated tap water was used

    widely, control was almost non-existent, bottling and bottle washing facilities for bottled

    products were almost nil, delivery to the customers was irregular and seldom extended beyond

    a five mile radius of the production unit.

    Coca Cola brought with it not only a new flavor, enabling Pakistan to share with the rest of the

    world an old and trusted soft drink. It brought a totally new concept of hygienic and modernproduction, quality control, distribution and marketing techniques.

    Coca Cola bottlers set up their plants at several places, after feeling the benefits of this

    modern approach to production and marketing.

    They also provide better standard of living for around 80000 people mainly small shopkeepers

    who earn an average from the sale of the Companys brands, alone an average per capita

    income.

    With the establishment and development of the Coca Cola bottling organization, new and

    increasingly sophisticated techniques of management, marketing and technical skills have

    introduced to a large number of small industries

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    COMPANY AND MAREKTING PHILOSOPHIES

    The Companys Profile:

    Coca-Cola is a carbonated cola soft drink, produced by the Coca-Cola of Atlanta, Georgia.

    The beverage is widely referred to as Coke, a nickname eventually trademarked by the

    company. Coke is one of the worlds most recognizable and widely sold commercial brands.

    Originally intended as a patent medicine when it was invented in the late-19th century, Coca-

    Cola was acquired by the businessman As a Griggs Candler, whose shrewd marketing tacticsled Coke to its world-wide soft drink market dominance during the twentieth century. Though

    beset periodically by critiques of its health effects and by allegations of wrongdoing by the

    company, Coca-Cola has remained an internationally popular soft drink

    The Coca-Cola Company markets four of the worlds top-five soft drink brands, including Diet

    Coke, Fanta and Sprite. Companys beverage products encompass nearly 400 brands

    including noncarbonated beverages such as waters, juices, sports drinks, teas and coffees.

    In 1886, the year Coca-Cola was first sold in a neighborhood pharmacy in Atlanta, sales of

    Coca-Cola averaged nine drinks per day. Since then, Coca-Cola has grown to become the

    worlds most ubiquitous brand, holding the leadership position in many of the countries in

    which it does business. And yet, Company is presented with tremendous opportunities for

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    growth. Every day, approximately 50 billion beverage servings of all types are consumed

    around the world. Cocks beverages account for a fraction of those, approximately 1.3 billion

    a figure that simultaneously indicates.

    MARKETING MIX:

    The most important strategies that a company follows to stay in the business are called the

    Marketing Mix. It has got everything that a firm can do to influence the demand for its product.

    It consists of four Ps that are:-

    Product

    Price

    Place

    Promotion

    PRODUCT:

    The best way to hold customers is to constantly figure out how to give them more forless.

    (Philip Kotler)

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    The products of the Coca Cola Company include a wide range of non-alcoholic beverages. In

    Pakistan, the Companys range of trade marked beverages brands include Coca Cola, Diet

    Coke, Sprite and Fanta.

    They consider the consistent high quality of their beverage to be one of their business primary

    assets. In each country where they produce their beverages, the Coca Cola system adheres

    not only the national laws on food processing and labeling, but also to their own strict

    standards for exceptional quality.

    In everything they do. From The selection of ingredients to the production o their beverages,

    they use their delivery to the market place; they use their specialized quality marketing system.

    The Coca Cola Quality System, to ensure that they are offering consumers only the highest

    quality products. They monitor their success through their customers and consumer feedback

    and their in-trade monitoring programs and this information enables is to continuously improve

    their already demanding systems.

    The product line length of a product mix refers to the total number of items in the mix.

    Coca colas product line consists of the following number of items:

    COKE FANTA SPRITE

    DIET COKE

    Disposable bottles; Disposable bottles; Disposable bottles;

    Coke cans; Fanta cans; Sprite cans;

    1.5 liter bottles; 1.5 liter bottles; 1.5 liter bottles;

    1 liter bottles; 1 liter bottles; 1 liter bottles;

    300 ml bottles and 300 ml bottles and 300 ml bottles and

    250 ml bottles 250ml bottles 250 ml bottles

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    PRICE:

    You dont sell through price, you sell the price.

    (Philip Kotler)

    Competition based pricing: - to compete with the competitors coke lowers its prices

    Sometimes the external factors influence the prices of coke for example Government policy: - sometimes government introduces such polices due to which the

    prices of all the coke products increase. For e.g. when the government regulates taxes the

    price of coke increased. But it did not remain for a very long time, and the prices came back to

    there original prices.

    Occasions: - in Pakistan when ever there is Ramadan in the country the prices of all the

    coca cola products decrease in order to increase the sales in the holy month of Ramadan.

    PLACE:

    Today you have to run faster to stay in the same place

    (Philip Kolter)

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    In 1996, the beverage giant began its bottling plant acquisition by purchasing its Karachi

    Bottling plant. Moving forward other bottling plants were acquired including Hyderabad in

    1997, Gujranwala/ Sialkot in 1998, Faisalabad in 1999 and finally the Rahim Yar Khan, Multan

    and Lahore bottling plants in 2000. it is not worthy that significant volume growth has been

    registered at all of these since their inception.

    The second authorized bottling partner Khattak group operates two plants namely Makk

    Beverage Pvt Ltd and Sahi Beverage Pvt Ltd in Rawalpindi with 55 and 63 distributors

    respectively. The general managers of these plants are Mr. Zufiqar Hussain.

    The company has thus far invested over $100 million in Pakistan. In the year 2000 the Coca

    Cola Company surged with the marketing activities to re-ignite its beverage and brand

    identities.

    The Coca Cola beverage are produced and sold in Pakistan by the companys authorized two

    local bottling partners at 8 bottling plants.

    In addition, sales and distribution center have been established in all major cities of Pakistan.

    Cola is easily available in every store in Pakistan and in almost every city whether small or big.

    IslamabadPakistan is the second largest market of Coca-Cola after Turkey in the Eurasia

    and the Middle East Division spread over 23 countries and lot of scope is there for its

    expansion. This was stated here on Friday by the Coca-Cola Public Affairs and

    Communication Director Gurtay Kipcak and Windy R. Sherman of The Albright Group in apanel Interview with Pakistan Observer. The Panelists included Mahmood Hussain and Abu

    Talha. They said Coca-Cola is in Pakistan for the last 53 years and our business had been

    steadily growing. They said for all practical purposes Coca-Cola had become a Pakistani

    company with its business growing day by day.

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    For the last two years it had shown remarkable growth rate and the growth had been

    registered in double digits.

    PROMOTION:

    If you want a place in the e sun, youve got to put up with a few blisters.

    (Abigail Van Buren)

    Sales promotion

    Coke has not remained behind doing its sales promotion. In general stores it uses coke

    cartoons to attract customers. Coca cola has followed all the main kinds of sales promotion

    strategies.

    Consumer promotion: - it increased the sales during 1990`s a lot so that people would see

    coca cola in every store and have an intention to buy it.

    Trade promotion: - it has always kept on introducing new products to keep the retailers

    busy and keep all the shelves packed with its product. For e.g. the introduction of Diet coke,

    Fanta lemon, Sprite and many new products.

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    Price promotion: - coca cola has always used price promoting strategies. It always reduces

    the price of its products. And offers them at discounted rate at special occasions like Christmas

    etc.

    ATTRIBUTES AND FEATURES:

    Coca cola is a refreshing soft drink .the basic features of coca cola are

    Caramel Color

    Phosphoric Acid

    Natural Flavors Caffeine

    Carbonated Water

    High fructose corn syrup

    Coca coal has the following amount of minerals in it:-

    Calories 140g -Carbonated Water

    -High Fructose CornFat 0 g 0 %

    Sodium 50 mg 2 %

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    -Syrup

    -Caramel Color

    -Phosphoric Acid

    -Natural Flavors

    -Caffeine

    Carbohydrates 39 g 13 %

    Sugar 39 g 13 %

    Protein 0 g 0%

    Coca cola has the following main attributes:-

    Refreshing:-

    Coke is considered to be a very refreshing soft drink and is a drink loved by todays

    generation. Not only the teenagers love it but it is also famous among the elders, who get

    amazed by its sensational taste.

    Non alcoholic: -

    Coca cola is non alcoholic drink therefore it is easy for everyone to use it because in certain

    religions, like Islam there is restriction on drinking alcoholic drinks.

    Size availability: -

    Coca cola is available in every size. From a litter bottle to cans and the small easy to carry

    bottles. Cola has created convenience for different consumers keeping in mind all the

    problems or difficulties that a customer could face using the product.

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    MARKET SHARE:

    The share of CCBPL is 35% of the total beverage industry. Out of this, Coca colas share is

    22% of the total beverage industry. Coke contributes around 65% of the total sales of CCBPL.

    Coca Cola Company Market Share

    Others

    8%

    Pepsi54%

    Coca Cola

    38%

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    GROWTH RATE:

    Coca Cola was first produced in Pakistan, in 1953, followed by Fanta in 1965, Sprite in 1972,

    Diet Coke and Fanta Lemon in 2001.

    In 1996, the beverage giant began its bottling plant acquisition by purchasing its Karachi

    Bottling plant. Moving forward other bottling plants were acquired including Hyderabad in

    1997, Gujranwala/ Sialkot in 1998, Faisalabad in 1999 and finally the Rahim Yar Khan, Multan

    and Lahore bottling plants in 2000. It is not worthy that significant volume growth has been

    registered at all of these since their inception.

    The second authorized bottling partner Khattak group operates two plants namely Makk

    Beverage Pvt Ltd and Sahi Beverage Pvt Ltd in Rawalpindi with 55 and 63 distributors

    respectively. The general managers of these plants are Mr. Zufiqar Hussain.

    The company has thus far invested over $100 million in Pakistan. In the year 2000 the Coca

    Cola Company surged with the marketing activities to re-ignite its beverage and brand

    identities.

    The Coca Cola beverage are produced and sold in Pakistan by the companys authorized two

    local bottling partners at 8 bottling plants.

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    In addition, sales and distribution center have been established in all major cities of Pakistan.

    PRODUCT LINE:

    Globally, The Coca-Cola Company owns or licenses nearly 400 brands in the nonalcoholic

    beverage business. Many of those brands are considered among the worlds most valuable.

    Some of these include:

    Carbonated Soft Drinks:

    Such as Coca-Cola, Diet Coke, Fanta, Sprite and Fresca

    Juices and Juice Drinks:

    Such as Minute Maid, Qoo, Fruitopia, Maaza and Bibo

    Sports Drink:

    Such as POWERADE and Aquarius

    Water Products:

    Such as Ciel, Dasani and Bonaqua

    Teas:

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    Such as Sokenbicha and Marocha

    Coffee:

    Such as GEORGIA coffee, the best-selling noncarbonated beverage in Japan

    A significant portion of tea and coffee business is operated by Beverage Partners Worldwide,

    its 50/50 joint venture with Nestl, S.A.

    PRODUCT LIFE CYCLE:

    1. DEVELOPMENT STAGES:

    Coca Cola was first developed as a mix of medicines in (1831-1888). In 1886 the formula was

    changed and wine was taken out from it. Later sugar was added to it to make the syrup

    sweeter. Initially it was sold as headache remedy and was also noted that syrup helped

    against digestion and exhaustion and that it was a refreshing drink in addition to that. Since

    1885 Coke was stimulated health tonic and beverage.

    2. INTRODUCTION STAGES:

    Before Coca Cola came into Pakistan in 1953, the country had no national soft drink industry.

    A couple of regional companies did exist but with few exceptions, soft drinks were merely

    produced locally by hundreds of small often one-man unit. Operations of these units and the

    quality of the products were to say the least, questionable. The treated tap water was used

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    widely product standards varied greatly , quality control was almost non existent, bottling and

    bottle washing facilities were often primitive, cooling facilities for bottled products were almost

    irregular and seldom extended beyond a five mile radius of the production unit.

    Coca-Cola Company was incorporated in 1953 as a successor to the business of a company

    with the same name that had been organized in 1892 at Atlanta. It not only brought new

    flavors but also enabling Pakistan to share with the rest of the world an old and trusted soft

    drink. It brought a totally new concept of hygienic and modern production, quality control,

    distribution and marketing techniques.

    3. Growth Stage

    One of the greatest strength of Coca Cola enables to conduct business on a global scale while

    maintaining its focus on individual local territories.

    Bottlers use in depth understanding of the local business environment to offer brands and

    services to meet the unique local needs ensuring the highest standards of produce quality and

    uniformity.

    Bottlers serve as strategic business partners to the company on every major continent and

    leaders in global bottling system.

    The Coca Cola Company and bottlers take advantage of virtually limitless worldwide growth

    opportunities.

    4. Maturity Stage

    Till 1985 Coke was market leader. In 1987 Coca Cola faced slowdown in sales as it loses its

    concentration towards the bottling system and brand system.

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    In 1986- Pepsi Cola revamped all its strategies especially the Bottling system. Pepsi started

    targeting the sport fans and gradually captured the sports market. Pepsi was also sure that

    young generation is fond of Music so it also doing music marketing. Through these strategies it

    started living in the hearts of new generation specially the teenagers and early 20s.

    In 1994-1995 Coca Cola realized its main cause of downfall and in order to gain it position

    back it modified the product by introducing 300ml to inspire more usage. It also modified the

    marketing mix by cutting down its prices and introducing a scheme of saving Rs.50 with

    McDonalds Combo Meal offer.

    BRAND POSITIONING:

    'Coca-Cola's' brand personality reflects the positioning of its brand. The process of positioning

    a brand or product is a complex managerial task and must be done over time using all the

    elements of the marketing mix. Positioning is in the mind of the consumer and can be

    described as how the product is considered by that consumer. When researching the

    positioning of a product, consumers are often asked how they would describe that product if it

    were a person. The purpose of this is to develop a character statement. This can ensure that

    consumers have a clear view of the brand values that make up the brand personality, just like

    the values and beliefs that make up a person. Many people see 'Coca-Cola' as a part of their

    daily life. This affinity between the brand and the consumer leads to a high degree of loyalty

    and makes the purchasing decision easier. Brand positioning guides 'what' will be

    communicated in the company's advertising, while the character statement guides 'how' a

    message should be delivered or put across.

    BRAND STRATGIES

    In 2003, company re-affirmed its commitment to be the worlds leading provider of branded

    beverage solutions, to deliver consistent and profitable growth and to have the highest-quality

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    products and processes. The Coca-Cola Company achieves these goals by striving for

    flawless execution against a crystal-clear strategy for success, and by doing so with an

    unwavering commitment to quality.

    Companys six strategic priorities provide us with the framework for this success. In 2003,

    every function of The Coca-Cola Company integrated these priorities into their business plans.

    And this year, The Company will continue to ingrain these prioritiesand their benefitsinto

    every aspect of its business.

    Six Strategic Priorities:

    1. Accelerate Carbonated Soft-Drink Growth, Led by Coca-Cola.

    The company leads with strengths. Carbonated soft drinks remain its most profitable

    business and Coca-Cola is the most popular brand in the world. This strategy paves the way

    for growth.

    2. Selectively Broaden Family of Beverage Brands to Drive Profitable Growth.

    Enormous opportunity exists in categories such as juice and juice drinks, bottled water,

    teas, energy drinks, coffee and more.

    3. Grow System Profitability and Capability Together with Company's Bottling Partners.

    Coca-Cola is a company of relationships, and one of its most important relationships is the

    one it shares with its bottling partners. In 2003, those relationships became more profitable

    and productive.

    4. Serve Customers with creativity and Consistency to Generate Growth across All

    Channels.

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    Coca-Cola will continually strive to increase growth for its customers businesses, helping

    create a context for its own growth.

    5. Direct Investment to Highest Potential Areas Across Markets.

    Coca-Cola tailors its business approach to the individual marketplace based on its stage of

    development. In this way, it directs its investments in a way that makes the most business

    sense.

    6. Drive Efficiency and Cost-Effectiveness Everywhere.

    By leveraging technology, creating alignment across business units and achieving

    economies of scale, company is able to operate with more efficiency.

    DISRIBUTION CHANNEL

    Coca Cola Company uses 3 different ways of distribution.

    1. direct distribution

    2. indirect distribution

    3. intermediaries

    DIRECT DISTRIBUTION: 67% of the companys total distribution is done by direct

    distribution that is company uses its own transport and reach the retailers and the retailers sell

    them at the actual suggested price by the company.

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    TOOLS OF PROMOTION MIX:

    The Marketing Mix is the name placed on the '4Ps' of marketing: Product, Place, Price, and

    Promotion. It is this fourth element, Promotion, which is focused on in this case study. This

    involves communicating the benefits of a product to increase sales and ultimately profits.

    There are four main methods of promoting the benefits of a brand.

    . Advertising

    . Personal Selling

    . Public Relations & Sponsorship (PR)

    .Sales Promotion

    The combination of these four methods constitutes the Promotion Mix. Public Relations is

    about communicating with the media to create good publicity for a firm or its products. The

    media then communicate these activities to the public.

    Public Relations:

    One of the marketing department's functions is to manage public relations and maintain a

    positive and beneficial image of the firm's policies and products. The aims of the Public

    Relations Manager liaising with the marketing function are to:

    Make the public aware of the existence of the firm and maintain the good name and image of

    'Coca-Cola' by issuing press releases, organizing news conferences and informing the public

    about the firm's activities.

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    INTERNATIONAL SPONSORSHIP:

    Coca-Cola's powerful brand personality has become a vehicle for promotion in its own right,

    sponsoring many events both on a global and local level. The company has long been

    associated with global events such as The Olympic Games, The FIFA World Cup, Rugby

    World Cup and Special Olympics. Coke has also been linked to world fairs and national

    exhibitions since 1905. With the Olympics blossoming in popularity and complexity, increased

    attention has been turned to serving the growing crowds and to supplying the needs of the

    athletes and organizing committees. In many countries

    where Olympic associations lack full government

    sponsorship local bottlers of 'Coca-Cola' donate funds to

    aid potential Olympians as the partnership of 'Coca-Cola'

    and the Olympics continues to grow

    .

    'Coca-Cola' was the official sponsor of the Olympics 2000 Games held in Sydney maintaining

    an unbroken presence at the games since 1928. The company has already contracted to

    sponsor both the summer and Winter Games through to 2008.

    'Coca-Cola' will be the official global sponsor of the Special Olympics to be held in Ireland in

    2003 (this is the first time the games will be hosted outside the US). As the Olympic

    Movement's longest-standing corporate partner, 'Coca-Cola' has aided the evolution of games

    together with more than 190 National Olympic Committees assisting thousands of athletes in

    their training.

    FOOTBALL:

    'Coca-Cola' also sets out to support football at every level of the sport. On a global basis

    'Coca-Cola' has been a sponsor of the World Cup since the 1978 tournament in Argentina

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    through to France in 1998 and into the new millennium. In Europe, 'Coca-Cola' is involved with

    the European Championship and plays a prominent part

    in making the event such a success. The global

    popularity of football makes it an ideal sport for 'Coca-

    Cola' to build on the life experiences of their target group. At these events 'Coca-Cola' has

    exclusive product availability in the non-alcoholic beverage category. To support Coca-

    Colas association with football, 'Coca-Cola' created the very successful 'Eat football, sleep

    football, drink 'Coca-Cola' campaign and the 'World Cup for fans' campaign. These campaigns

    highlight the natural link between having a 'Coca-Cola' and enjoying the experience of

    watching a football game

    RUGBY:

    'Coca-Cola' has also become the long-term sports sponsor of the Rugby World Cup. The

    Company has been a sponsor since 1995. This is the first time for a sponsor to commit to

    more than one Rugby World Cup. The Company wants to communicate that 'Coca-Cola' is the

    refreshment that stimulates and revitalizes rugby fans, and enhances the group experience

    and enjoyment of watching the game

    Interview:

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    Marketing Manager, Coca Cola Company:

    Q: What is your designation and since how many years you

    are working here?

    I am working here as marketing services manager and working here since last five year.

    Q: How do you motivate your employees?

    We usually gave them rewards such as salary incentive and bonuses and some time organize

    concert that can boost their moral.

    Q: What are your preferences in hiring an employee?

    It depend on us that what a quality we find in him. For example before hiring a person

    for marketing we will see his way of interacting with people how he communicates and

    can satisfy the person in front of him.

    Q: How empowerment is used in the coca cola companys

    organizational structure?

    Empowerment is the authority to make decisions within ones area of responsibility without first

    having to get approval from someone else. In empowerment employees are encouraged to

    use their own initiative. Empowered employees are given not only the authority but also the

    resources so they are able top make decisions and have the power to get them implemented.

    The heart and soul of enterprise has always been its people. Over the past century, Coca Cola

    people have led successes by living and working with a consistent set of values.

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    Empowerment programs have transformed coca coal into a vital organization by creating a

    shape purpose among employees. Encouraging greater collaboration and most importantly

    delivering enhanced values to customers. The Company has adopted the strategy of

    empowering its employees to share their talent and vision from every perspective, and the

    conjunction of it a lot of programs have been launched in the company over the years. Some

    of them are given as under;

    ENABLING EMPLOYEE &LEADERSHIP DEVELOPMENT:

    As mentioned by a Coca-Cola Company executive, the business of The Coca-Cola Company

    is defined by individual moments of connection between people. Multiplied billions of times,

    these interactions are the building blocks of our business success.

    This is why the Company strives to focus its resources on enabling and empowering

    employees to be and do their best, everyday. Investing in the development of our people will

    drive our ongoing success.

    CONTINUOUS LEARNING:

    Each one at The Coca-Cola Company is accountable for continually expanding and growing

    the business of it. It is an effort that requires the collective commitment, passion and

    leadership of all employees. It also requires a dedication to continuous learning and

    improvement, the desire to learn more every day and apply what they learn to new and

    different challenges.

    Q: Which view does your organization follow is it classic view or

    socioeconomic view?

    Basically we follow socioeconomic view. In todays environment it is requisite to have

    socioeconomic view otherwise pressure groups wont going let you do your business

    Q: What have you done in social responsibility?

    Well. we opened schools in Punjab and Sindh. We offered free education for poor children.

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    Q: How you take decisions in your organization?

    It depends on the severity of the problem. If the problem is sever we thoroughly examine the

    problem then we sort out what is the best alternative to solve the problem and select that

    alternative. Usually we took decision on intuition.

    Q: What are the latest development programs of coca-cola?

    LEADERSHIP DEVELOPMENT PROGRAMS:

    These are available for leaders at multiple levels. These initiatives help ensure that the

    organizations leaders are prepared to support the business strategy, while also developing

    and serving as stewards of the Companys talent.

    DEVELOPING PEOPLE:

    Just as The Coca-Cola Company is driven by a vision it has defined for its future, so are

    employees. Career development resources are available for in-role development and careergrowth. Through a series of guided personal assessments and self-reflections, employees may

    define realistic career goals; better understand how to be competitive in their current role;

    identify the paths that will take them to their career of choice; and continue to deliver value to

    the organization as a whole.

    OPTIMIZING PERFORMANCE:

    The Coca Cola Company is part of a broad, integrated system that reaches into localcommunities almost everywhere in the world, and its success depends on having the right

    strategies, the right resources, the right alignment of goals and objectives, and the right

    network of partnerships. It believes that the success of employees depends on their clear

    understanding of how their work aligns with organizational objectives and a strong process of

    ongoing guidance, feedback and coaching. And a variety of training and informative programs

    are being introduced for employees, to strengthening this conviction.

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    FEEDBACK:

    The Company believes that feedback should take place more than once a year. Throughoutthe year, managers and employees should meet to discuss progress, exchange ideas, solve

    problems and remove barriers. This ongoing, two-way conversation offers frequent

    opportunities to highlight strengths and areas for future development. The Company also

    expects every leader to be accountable for nurturing an inclusive, open work environment

    building a committed, diverse workforce that is driven to produce results. When candid, open

    dialogue occurs throughout the year, there are few, if any, surprises at year-end.

    Q: How does the organizational culture of coca cola influence the

    performance of its employees?

    Organizational culture can be defined as the common values beliefs and norms within the

    organization that are shared by all employees of the organization. This includes all the

    employees of the organization from top management to the lower level staff. Organizational

    culture has a number of important characteristics.

    Q: What is your mission statement and objectives currently being

    pursued?

    We exist to create value for our share owners on a long-term basis by

    building a business that enhances The Coca-Cola Companys trademarks.

    This also is our ultimate commitment.

    As the worlds largest beverage company, we refresh that world. We do this

    by developing superior soft drinks, both carbonated and noncarbonated, and

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    our bottling partners, our customers, our shareowners and the communities in

    which we do business.

    In creating value, we succeed or fail based on our ability to perform as

    worthy stewards of several key assets.

    Coca-Cola the worlds most recognized trademark, and other

    highly valuable trademarks.

    The worlds most effective and pervasive distribution system.

    Satisfied customers, who make a good profit selling our products.

    Our strong global leadership in the beverage industry in particular and in

    the business world in general.

    Q: How do you assume SWOT analysis?

    The SWOT analysis is a useful tool that allows you to look at the

    big picture- a quick list of what you do well and what you dont.

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    Q: What are the strength, weaknesses, opportunity and threats

    (SWOT) of your organization?

    STRENGTHS:

    For all of its worldwide reach and complexity, the remarkable strength of The Coca-Cola

    Company finds its roots in two key things: our people and our brands.

    PEOPLE:

    As the worlds best-known brand, Coca-Cola is by its very nature inclusive. The Company, a

    reflection of the many countries and cultures in which it does business, strives to be as

    inclusive as the brand itself. The business rationale for a diversity of people, cultures and ideas

    has never been more compelling: the more diverse companys thinking, the more opportunity

    for innovation.

    BRANDS:

    Globally, The Coca-Cola Company owns or licenses nearly 400 brands in the nonalcoholic

    beverage business.

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    WEAKNESSES:

    ADVERSE LONG-TERM HEALTH:

    Most nutritionists advise that Coca-Cola and other soft drinks can be harmful if consumed to

    excess, particularly to young children whose soft drink consumption competes with, rather than

    complements, a balanced diet. Studies have shown that regular soft drink users have a lower

    intake ofcalcium (which can contribute to osteoporosis), magnesium, ascorbic acid, riboflavin,

    and vitamin A. The drink has also aroused criticism for its use of caffeine, an addictive

    substance.

    ACIDITY:

    Evidence has been presented in numerous cases against Coca-Cola since the 1920s that

    decisively proves that the drink is not more harmful than comparable soft drinks, or indeed

    acidic fruit juices like apple juice. Under normal conditions, its acidity causes no immediate

    harm.

    A 2005 experiment by the American Academy of Pediatric Dentistry found the pH of the mouth

    to be 5.5, 5.6, and 5.7 in 5, 10, and 20 minutes (respectively) after swishing 15 ml in the mouth

    for one minute. None of those are in the critical range to damage tooth enamel. Diet Coke was

    found to be slightly less acidic.

    The impartiality of this experiment can be reasonably questioned. In 2003 the American

    Academy of Pediatric Dentistry took a grant of $1m dollars from Coca-Cola to fund educational

    research. The drink has also aroused criticism for its use of phosphoric acid.

    HIGH FRUCTOSE CORN SYRUP:

    Since the late-1980s in the U.S., Coke has been made with high fructose corn syrup instead of

    sugar glucose/fructose. This was largely due to the increasing prices of sugar during these

    times. There are some groups who criticize this move to use high fructose corn syrup over

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    sugar due to the fact that the corn used to produce corn syrup may come from genetically

    altered plants. Some nutritionists also caution against high fructose corn syrup because of

    possible links to obesity and diabetes. High fructose corn syrup has been shown to be

    metabolized differently by the human body.

    OPPORTUNITIES:

    DIVERSIFICATION:

    Another example is that the company knows that the people of the sub continent are very

    passionate about cricket. So they would us cricket players etc. to promote their product.

    The culture of coca cola is such that it promotes diversity. This is due to the fact that coca cola

    is a large multinational company with its operations all around the globe. This results in the

    interaction of employees with other employees as well as customers from not just the native

    culture but belonging to many other and diverse cultures.

    Coca cola recognizes that it is not only the geographical diversity that has to be taken into

    consideration when setting up business in other countries but also the ethnic differences. For

    Example: when promoting its product in Muslim countries through advertising the company

    has to take special care. This is because such things as dancing etc. which are viewed as

    being very normal in the Western society are offensive to Muslims so they cannot be shown

    in ads.

    This scenario will be very similar in the South American countries. However there cricket would

    be replaced by football.

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    THREATS:

    COMPETETIVE STRATEGIES:

    Brand recognition is the significant factor affecting Cokes competitive position. Coca-Colas

    brand name is known well throughout 90% of the world today. The primary concern over the

    past few years has been to get this name brand to be even better known. Packaging changes

    have also affected sales and industry positioning, but in general, the public has tended not tobe affected by new products.

    TOP THREE COMPETITORS:

    Coca Colas top three direct competitors are:

    1. Pakistan beverages; PEPSI

    2. MEHRAN BOTTLERS; Pakola, Bubble Up

    3. Continental Bottles limited; R.C. Cola

    INDIRECT COMPETITOR:

    1. Juices ( Frost, Polly, Frooto, Shezan etc )

    2. Mineral water ( Ava, Nestle, Culligan, Fontalia, Vital etc )

    3. Private retailers drinks ( Spice lemon, Lemon Barley by Tesmart etc )

    4. Unbranded, low priced cola drinks sold at railway stations and other recreational places.

    5. Smuggled cans of Pepsi, Coke, Sprite etc )

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    The primary competitor of the Coca-Cola Company is Pepsi. Pepsi and Coca-Cola make up

    anywhere from 75% to 90% of the market wherever they operate. Since the industry follows

    FDA regulations, much legislation have been passed to control the companys actions. The

    most commonly known is that Coca-Cola use to instill a small amount of cocaine in their drinks

    in order to enhance flavor as well as create an addiction.

    COLA WARS:

    Pepsi Co and The Coca-Cola Company are two of the largest and oldest archrivals in the

    carbonated soft-drink industry. The war between the soda giants, also known as the

    "Cola Wars", initiated in the 1960s when Coca-Cola's dominance was being increasingly

    challenged by Pepsi-Cola. The competitive environment between the rivals was intense and

    well publicized, forcing both companies to continuously establish and implement strategic

    changes as a means to create a competitive advantage. The rivalry fostered and stimulated

    continuing growth in an industry in which many predicted in the early 1970s to be on the verge

    of maturity. Reasons for the prediction came from the fact that further growth of per capita

    consumption of soft drinks are limited to how much people are able to consume on a dailybasis. Furthermore, both Pepsi and Coke offered a limited number of products that "looked the

    same, tasted the same, and bubble into foam the same" (252); thus, questioning whether

    further substantial growth in sales was possible.

    Rather than succumbing to the impending maturation of their domestic market, the two

    industry leaders, fostered by the competitive intensity, launched new strategies, such as

    product modifications, new forms of pricing and promotion, and fundamental changes in its

    distribution system, that have led to rapid and continued expansion of both company's

    domestic sales. By forecasting and responding to changes in the economic, political, social,

    and technological environments, Pepsi and Coke have successfully innovated in marketing,

    distribution, and product development. The soda rivalry also initiated both companies to seek

    international markets and diversification strategies in order to increase their sales growth.

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    Rather than targeting every market, Pepsi focused on the demographic environment. Pepsi

    foresaw the mass appeal of the youth generation for soft drinks and in 1961 divulged the

    successful slogan Now, Its Pepsi, for Those Who Think Young. The campaign was such a

    success that Pepsis sales growth outperformed that Coca-Cola.

    Marketing strategies began to take broader dimensions as the soft drink industry continued to

    expand and became more complex. In 1976, Pepsi introduced the Pepsi Challenge in its

    campaigns, a moved that directly challenged Coca-Colas longstanding dominance. Coca-Cola

    responded to the challenge by price discounting. Pepsi campaign shifted the company from

    the bargain brand image to a contender of Coca-Colas quality image, while Coca-Cola

    changed to a bargain strategy. Pepsi aggressively responded with its own price cuts and

    Coca-Cola in turned matched the company.

    As far as attacking competition is concerned in Pakistan, coca cola is a follower of Pepsi.

    Pepsi in its early growth stages adopted a strategy that is to enhance the market coverage

    they started to target him youth through sponsoring music and cricket, being two the most

    favorable interests of the youth. In reference to targeting the youth through music coke is now

    sponsoring singer like Abrar-ul-Haque and internationally recognized band like Junoon.

    Q: Where do you want to see your organization in future?

    As indistinguishable as the product itself, Cokes marketing strategies have been no different.

    Relying on colorful images, lively words, beautiful people, interesting bottle designs, andcontagious jingles, Coke propelled its respective products into the American and international

    mainstream. The changing faces of Cokes management, however, facilitated the brand image

    according to its own style and what it saw as an advantageous competitive approach. This

    style and approach is what makes Coca-Cola distinguishable. All these things are intended to

    remind people to purchase Coca Cola.

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    Thus we concluded that in future coca cola sales will increase but it has to face direct

    competition from Pepsi. As compared to Pepsi, coca colas sales are declining day by day.

    To maintain its position in the consumer market it has to follow some powerful strategies

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    ASSUMPTIONS:

    BEFORE WE VISITED THE FACTORY WE ASSUMED THAT THE LOOK OF THE

    FACTORY WAS BRILLIANT, A VERY CLEAN ENVIROMENT AND A GOOD MANAGEMENT

    BUT WHEN WE VISITED THERE WE SAW THAT THE FACTORY HAD A VERY BAD

    LOOK, ITS SIGN BOARD WAS TOTALLY DAMAGED.

    WHEN WE ENTERED GUARD ASKED US TO WAIT IN VISITING ROOM SO WHEN WE

    ENTERED IN ROOM WE SAW THAT IT WAS QUITE DIRTY, WE WERE VERY

    DISAPPOINTED BECAUSE OF THIS. THEY GAVE US TEA INSTEAD OF COCA-COLA.

    AFTER INTERVIEW WE WENT TO CANTEEN FOR REFRESHMENT BUT WE DID NOT

    FIND ANYTHING TO EAT.

    AT LAST WE WANT TO LET YOU KNOW THAT WE GAIN OUR KNOWLEDGE AND WE

    SURE, THAT INTERVIEW WILL HELP US A LOT IN FUTURE.

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    OBSERVED CULTURE AND ETHICS

    When organizational participants interact with one another, they use common

    language, terminology, and rituals related to defense and demeanor.

    NORMS: Standards of behavior exist, including guidelines on how much work to

    do, which in many organizations come down to Do not do much; do not do too

    little.

    DETERMINANT VALUES: There are major values that the organization

    advocates and expects the participants to share. |Typical examples are high

    product quality, low absenteeism, and high efficiency.

    PHILOSOPHY: There are strict guidelines related to getting along in the

    organizations beliefs about how employees and customers are expected to be

    treated.

    RULES: There are strict guidelines related to getting along in the organization.

    New comers must learn these ropes in order to be accepted as full fledged

    members of the group.

    ORGANIZATIONAL CLIMATE: This is an overall feeling that is conveyed by the

    physical layout, the way participants interact, and the way members of the

    organization conduct themselves with customers and outsiders.

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    CONCLUSIONS & RECOMMENDATIONS:

    Since its inception the Coca Cola Company falls into the category of broad beverage market. It

    has got a large number of potential and actual buyers. So far they are segmenting all sorts of

    consumers from youngest to the oldest. In my opinion they should rather emphasize more

    towards the teenagers as these people will be the brand loyal of the future. Coca Cola

    Company has set a different framework for each segment there fore it should not mix all of

    them and must maintain the difference among each segment.

    While targeting the customers they must adopt such a targeting strategy that will apply on both

    the new users and current users.

    In order to increase its market share coke can go for flank attack by targeting any of the

    institutions like CBM, AMI or Preston in Karachi and NCA in Lahore. They can take over their

    cafeterias and sponsor them on the contract basis. Contract like coke would repaint the cafes

    and return for a certain years as per contract these institutes will use coke as their official

    drink.

    In many far flung areas of Landhi, Orangi and many others, the companys market developers

    rarely pay a visit. This not only affect companys sales but also image. Therefore more market

    developers be selected and properly spread to target these neglected areas.

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    REFERENCES:

    Sales Managers Saud Alam & Nadeem Khan

    The coca-cola brand & sponsorship (5th edition).

    http://www.thecoca-colacompany.com/contactus/myths_rumors/index.html

    http://en.wikipedia.org/wiki/The_Coca-Cola_Company#History

    http://www.coca-colacompany.com

    http://www.coca-colacompany.com/http://www.coca-colacompany.com/