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8/7/2019 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
profitable nonalcoholic beverage systems that create value for our Company,38
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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.
49
8/7/2019 2003 ALI COCACOLA FINAL report
50/50
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/