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Bs Commerce 6 th (2009-2013) Report On International Business Topic: Coca-Cola Beverages Pakistan Limited Submitted to: Sir Maratab Ali Kazmi Submitted by: Tasneem Nawaz BCM-09-01 Syed Shafqat Abbas BCM-09-10 Muhammad Jamil BCM-09- 13 Ali Khalid BCM-09-27 Zahid jeelani BCM-09-28 Zargham Ahmed BCM-09-42 Bs Commerce 6 th (2009-2013) 1

Coca Cola Pakistan

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Page 1: Coca Cola Pakistan

Bs Commerce 6th (2009-2013)

Report On

International Business

Topic:Coca-Cola Beverages Pakistan Limited

Submitted to:Sir Maratab Ali Kazmi

Submitted by:

Tasneem Nawaz BCM-09-01Syed Shafqat Abbas BCM-09-10Muhammad Jamil BCM-09-13Ali Khalid BCM-09-27Zahid jeelani BCM-09-28Zargham Ahmed BCM-09-42

Bs Commerce 6th (2009-2013)Department of Commerce Bahaudin Zakariya

University Multan

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DEDICATED To our teacher Bastion

Of patience and grace Owing their

Prayers, the world we could face up to the Tyranny,

Unawareness and coercion those murmur prayers as my best

Possession ‘O’ Lord of Heavens, The Kindness is

The best dwelling, we ever knew the

Spur For all that we do.

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TABLE OF CONTENTS

Introduction 04

Brands 05

New Coke to Present 06

Coca-Cola IN Pakistan 08

Uncontrollable Elements 11

SWOT Analysis 14

Post 9/11 Effects 17

PEST Analysis 19

Duties & Taxes Applied 21

Strategies to Reduce Political Vulnerability 23

Cultural Borrowing 24

Problems 26

References 27

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INTRODUCTION

Coca-Cola (also known as Coke) is a popular carbonated soft drink sold in

stores, restaurants and vending machines in over two hundred countries.

It is produced by The Coca-Cola Company, which is also occasionally

referred to as Coca-Cola or Coke. It is one of the world’s most

recognizable and widely sold commercial brands. Coke's major rival is

Pepsi. Although Coke has been the target of urban legends decrying the

drink for its supposedly copious amounts of “acid”, or the "life-

threatening" effects of its carbonated water but still it is the most in-style

soft drink. About its safety and the ethics of the company that produces it,

it is widely accepted as the most dominant soft drink in the world today.

Originally intended as a patent medicine when it was invented in the late

19th century, Coca-Cola was bought out by shrewd businessman Asa

Griggs Candler, whose aggressive marketing tactics led Coke to its

dominance of the world soft drink market throughout the 20th century.

Although faced with accusations of perverse side-effects on the health of

consumers and monopolistic practices by its producing company, Coca-

Cola has remained a popular soft drink well into the first decade of the

21st century.

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BRANDS

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

- Juices and juice drinks

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

- Sports drinks

Such as POWERade and Aquarius

- Water products

Such as Ciel, Dasani, Kenly and Bonaqua

- Teas

Such as Sokenbicha and Marocha

- Coffee

Such as Georgia coffee, the best-selling noncarbonated beverage in

Japan.

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NEW COKE TO THE PRESENT

In 1985, Coca-Cola, amid much publicity, attempted to change the formula

of the drink. Some authorities believe that New Coke, as the reformulated

drink was called, was invented specifically to respond to its commercial

competitor, Pepsi. Double-blind taste tests indicated that most consumers

preferred the taste of Pepsi (which has more lemon oil, less orange oil, and

uses vanillin rather than vanilla) to Coke. New Coke was reformulated in a

way that emulated Pepsi. Follow-up taste tests revealed that most

consumers preferred the taste of New Coke to both Coke and Pepsi. The

reformulation was led by the then-CEO of the company, Roberto Goizueta,

and the President Don Keough.

It is unclear what part long-time company president Robert W. Woodruff

played in the reformulation. Goizueta claims that Woodruff endorsed it a

few months before his death in 1985; others have pointed out that, as the

two men were alone when the matter was discussed, Goizueta might have

misinterpreted the wishes of the dying Woodruff, who could speak only in

monosyllables. It has also been alleged that Woodruff might not have been

able to understand what Goizueta was telling him.

The commercial failure of New Coke therefore came as a grievous blow to

the management of the Coca-Cola Corporation. Coca-Cola management

was unprepared, however, for the nostalgic sentiments the drink aroused

in the American public; some compared changing the Coke formula to

rewriting the American Constitution.

The new Coca-Cola formula subsequently caused a public backlash. Gay

Mullins, from Seattle, Washington, USA, founded the Old Coke Drinkers of

America organization, which attempted to sue the company, and lobbied

for the formula of Old Coke to be released into the public domain. This and

other protests caused the company to return to the old formula under the

name Coca-Cola Classic on July 10, 1985. The company was later accused

of performing this volte-face as an elaborate reuse to introduce a new

product while reviving interest in the original. The company president

responded to the accusation by declaring: "We are not that stupid, or that

smart."

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The Coca-Cola Company is the world's largest consumer of natural vanilla

extract. When New Coke was introduced in 1985, the economy of

Madagascar crashed — vanilla being a prime export — and recovered only

after New Coke flopped, since New Coke used vanillin, a less-expensive

synthetic substitute. Purchases of vanilla more than halved during this

period.

Meanwhile, the market share for New Coke had dwindled to only 3% by

1986. The company renamed the product "Coke II" in 1992 (not to be

confused with "Coke C2", a reduced-sugar cola launched by Coca-Cola in

2004). However, sales falloff caused a severe cutback in distribution. By

1998, it was sold in only a few places in the Midwestern U.S.

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COCA-COLA

IN

PAKISTAN

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Introduction

The Coca-Cola Company is a global company with some of the world's

most widely recognized brands, the Coca-Cola business in Pakistan has

completed its 58 years of operation. The beverages are produced locally,

employing Pakistani citizens. And their product range and marketing

reflects Pakistani tastes and lifestyles, and they are deeply involved in the

life of the local communities in which they operate

History

The Coca-Cola Company began operating in Pakistan in 1953. Benjamin H.

Oehlert Junior, former senior vice president of The Coca-Cola Company,

served as United States Ambassador to Pakistan from 1967 to 1969.

Brands

Coca-Cola®, Fanta®, Sprite®, Sprite 3G®, Diet Coke®, kinley®

Bottling Information

The Coca-Cola System in Pakistan operates through twelve bottlers, 10 of

which are owned by Coca-Cola Beverages Pakistan Limited, out of these

twelve plants now eight are operating. The CCBPL plants are in Karachi,

Hyderabad, Lahore, Gujrawala, Faisalabad, Rahimyar Khan, Multan and

Sialkot. The remaining two plants, independently owned, are in Rawalpindi

and Peshawar. The Coca-Cola in Pakistan serves 95,000 customers retail

outlets.

Employment/Economic Impact

In Pakistan it has invested over $ 22886 million (U.S.). due to the heavy

investment it also employed many people in Pakistan.

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Community Involvement

In 2000, when Eastern Pakistan suffered its worst droughts, The Coca-Cola

System initiated a famine-relief program to help victims and was the first

private-sector company to assist.

It initiated a voluntary Haj program that allows one employee from each

plant, selected through a draw, to be sent on the Holy Pilgrimage to Mecca

at the Company's expense.

Sponsorships

The Company sponsors Pakistan's leading pop group and organizes

concerts throughout the country for teenagers and underprivileged

children.

It sponsors Pakistan's No. 1 solo artist, who will participate in concerts and

charity events organized by The Coca-Cola Company in Pakistan. The

Company has signed a sponsorship agreement with eight of Pakistan's

national cricket players for promotional and advertising use.

The Coca-Cola System in Pakistan is the exclusive supplier for Pakistan

Railways, serving soft drinks in stations, platforms and on trains. The

Company will be undertaking a beautification program of stations and

platforms.

in last few years coca cola sponsored a program to encourage Pakistani

music with name of coke studio.

Marketing Involvement

Coca-Cola Corporation is a multinational organization. And it is indulged in

the international marketing .The brands and basic strategies are made in

the home country but the local strategies are defined in the host

countries. Also the 4P’s are made according to the demographics and

taste of the people of the host country.

In Pakistan the Coca-Cola Company maps the strategies and the brands by

looking into the environment in which it is working. The brands are

produced locally. And the product, price promotion and placement are

planned with respect to the controllable variables and uncontrollable

variables.

Uncontrollable Elements

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Whenever any business start operating in two or more than two countries,

it come across some of the problems which are beyond the control of

business , like legal restraints, government controls, weather, consumer

behavior, economic conditions of the host country, social and cultural

factors, geography & infrastructure, channel of distribution available, level

of technology and competitive forces. These problems are different in all

the countries in which business starts its operations. So business has to

design a separate framework for each country to overcome these

problems.

Coke is one of the oldest companies which are in international business;

they have a vast experience of controlling these elements. They heavily

rely on research to overcome these problems.

Legal And Political Problems

They perform thorough study of legal and political problems to decide to

enter into any country. They track the previous record of the ruling party

and policies. They also keep in mind the attitude of other opposition

parties about foreign companies. If any problem arises regarding political

or legal issues, they don’t sacrifice their policies and secrecies, as we have

a case of COKE AND INDIAN GOVERNMENT. When Indian Government

asked to have formula for the concentrate and they deny and left the huge

Indian market.

Social And Cultural Factors

Social and Cultural factors have a very vital impact on the business in the

host country. Although this is the most difficult task to understand the

culture of the host country but business has to do reasonable care to

understand this problem.

Coke performs research to understand these issues and design their

strategies accordingly. They design their products, prices, place,

promotion and customer service according to the culture of the country.

As we see that coke has 400 brands allover the world but in Pakistan we

have only 5 brands and in India which is a market of 1.1 billion people

coke has 15 brands. This is because of cultural differences that they

cannot introduce all the brands in all the countries.

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Geography & Infrastructure

If any business wants to start its business in any other country, it also

studies the geography and infrastructure of the host country. That is if

feasible for doing business or not. They decide the channel of distribution,

modes of transportation and there cost to make decisions regarding prices

and designing strategies.

In Pakistan Coke found a reasonable infrastructure to do business, which is

continuously improving to facilitate distribution system.

Economic factors

Different counties have different economic conditions at a time so Coke

designs different strategies to handle these conditions. As Coke is one of

the largest businesses in the world, they have a strong financial

background to overcome these economic problems. In host countries they

change their prices, investment and penetration strategies to overcome

economic factors.

Competitive Forces

Whenever any business enters into any other country they face

competition with some local and international brands. Coke Combat this

problem with their quality commitment and continuously providing its

customers with quality product, services and entertainment.

Demographic Factors

People of all ages and gender use Coca-Cola. Educated people belonging

to upper and middle-income groups also commonly use Coca-Cola. Major

emphasis of Coca-Cola is to attract teenagers.

Life Style Pattern

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The Taste and quality conscious people Drink Coca-Cola brands especially

Coca-Cola. Diet Coca-Cola offered by Company is Very popular among

diabetic patients.

Preference for Specific Benefits

For over 51 years Coca-Cola Corporation has maintained a tradition of

producing only the Quality drinking beverages. That is why it continues to

be a familiar and trusted household name in Pakistan. Today, Coca-Cola’s

lives up to its well earned reputation as market leader by insuring that

consumers get the best carbonating drink. The best of nature, technology

and human resource have together contributed to Coca-Cola’s reputation

for unparalleled quality- a standard now recognized internationally. Above

all, the entire process is overseen by a professional management and

trained workforce.

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SWOT

ANALYSIS

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STRENGTHS

Coca-Cola has been a complex part of Pakistani culture for over a half

century. Being a strongly recognized brand the product's image is loaded

with coolness and refreshment, and this is an image many people have

taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats,

and collectible memorabilia. This extremely recognizable branding is one

of Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a

day around the world Coca-Cola stands as a simple, yet powerful symbol

of quality and enjoyment".

Additionally, Coca-Cola's bottling system is one of their greatest strengths.

It allows them to conduct business on a global scale while at the same

time maintain a local approach. The bottling companies are locally owned

and operated by independent business people who are authorized to sell

products of the Coca-Cola Company. Because Coke does not have outright

ownership of its bottling network, its main source of revenue is the sale of

concentrate to its bottlers.

The Coca-Cola Company in Pakistan has the mover advantage, as it was

the first to introduced soft drink. There are 8 plants working in Peshawar,

Karachi, Lahore, Gujrawala, Rawalpindi, Faisalabad, Raheem Yar khan, and

Multan. These big plants have employed more than 1800 employees.

Duopoly of two main beverage companies in Pakistan including Coca-Cola

has been diffused into the local markets.

WEAKNESSES

Although domestic businesses as well as many international markets are

thriving, Coca-Cola has recently reported some "declines in unit case

volumes due to reduced consumer purchasing power”

Coca-Cola on the other side has effects on the teeth's which is an issue for

health care. It also has got sugar by which continuous drinking of Coca-

Cola may cause health problems. Being addicted to Coca-Cola also is a

health problem, because drinking of Coca-Cola daily has an effect on your

body after few years (International report of Coca-cola).

Out of twelve plants, eight are the operational plants while two are

franchised with other group of companies, which is a drawback for coca-

cola in Pakistan as in these two plants the involvement of Coca-Cola

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International is not present which effects the overall image of these plants

in the local market about the quality and international standards.

OPPORTUNITIES

Brand recognition is the significant factor affecting Coke's competitive

position. Coca-Cola's brand name is known well throughout 94% of the

world today. In Pakistan it is the well-known brand among the people of all

ages specially the children are more attracted towards the coke.

As Coca-Cola is in business of soft drinks and has more than 450 brands

allover the world, but in Pakistan they have only four brands, so there is a

potential in Pakistani market for other brands too. Pakistani weather is hot

and humid. This causes a tremendous growth in the sales during the

summer season.

Packaging changes have also affected sales and industry positioning, but

in general, the public has tended not to be affected by new products.

Coca-Cola's bottling system also allows the company to take advantage of

infinite growth opportunities around the world. This strategy gives Coke

the opportunity to service a large geographic, diverse, area.

The unique formula (concentrate) is being imported from U.S.A and it is

then processed in the local plants, this resists the copying of formula and

formation of fake formula thus keeping the taste of pure and real Coca-

Cola revitalizing and tempting.

THREATS

Currently, the threat of new viable competitors in the carbonated soft

drink industry is not very substantial. The threat of substitutes, however,

is a very real threat. The soft drink industry is very strong, but consumers

are not necessarily married to it. Possible substitutes that continuously put

pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot

chocolate ("Cola Wars", 1991).

Even though Coca-Cola and Pepsi control nearly 5% of the entire beverage

market, the changing health-consciousness of the market could have a

serious affect. Of course, both Coke and Pepsi have already diversified into

these markets, allowing them to have further significant market shares

and offset any losses incurred due to fluctuations in the market ("Cola

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Wars", 1991). In Pakistan the consumption of cold beverages is 5% which

have to be stabilized.

Consumer buying power also represents a key threat in the industry. The

rivalry between Pepsi and Coke has produce a very slow moving industry

in which management must continuously respond to the changing

attitudes and demands of their consumers or face losing market share to

the competition. Furthermore, consumers can easily switch to other

beverages with little cost or consequence.

Post 9/11 Effects

After 9/11 incident Coca-cola suffered a loss due to boycott of religious

activists at a larger scale. The market share and market value was

dropped down to several points .Price competition was started after this

incident. Due to sanctions imposed on Pakistan after May5, 1995 taxes

were to be paid in high amount thus increasing the cost of production and

price offered to consumers and decreasing the buying powers of

customers. So any of the activists behavior can cause decline in the

production and sale of coke and other cold beverage company.

Intellectual Property Rights

Coke is one of the biggest brands in the world, and its brand value is

approximately 4 billion$. It is said that the most common word to speak in

this world is “OK” and after this the second most common in this whole

world is “COKE”. Sometimes different people and organizations used their

names to make money, in the form of fake bottling.

The main threat to the company is the production of fake bottles. Fake

bottling is growing day by day Fake bottles problem for a company comes

under the “act of unfair practices”. In a black marketing aspect whole

sellers and retailer could take the fake bottles at a low price for selling at

the price of original bottles which could be harm full for the health of

consumers. Coca Cola Company could create a check and balance to meet

the need of time, which in turn could help to increase its market share. It

already had made several steps to prevent fake bottling and production of

fake coke but due to mushrooming industry the laws and management of

the corporation is failed to stop this industry from flourishing. The

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government is also not of great help to the company in solving this main

issue.

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PEST

ANALYSIS

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POLITICAL FACTORS

The political environment of Pakistan affects the coca-cola beverages and

Coca-Cola Export Corporation, to some extent. For instance, the political

instability in Pakistan causes trade and import policies to change rapidly

as the government changes which causes many problems in the import of

raw materials. Trade barriers such as tariffs and duties on the import of

syrup (concentrate) from USA increases the operational cost. A relaxation

has been given by the current government. So the situation for the

beverage industry is getting better day by day for the last couple of years.

Also the policies have been more or less constant and also the emaciation

of free trade zones by the government will help the Coca-cola to flourish

more effectively in Pakistan.

ECONOMIC FACTORS

The economic condition of Pakistan has not been stable for a long time.

The increase in fuel prices, short fall of electricity increase the prices of

almost every product in Pakistan that decrease the consumer buying

power (inflation). When the recession occurs the price of bottles are

dropped down to increase the sales and to achieve the targets of the

company. So overall economy of Pakistan directly affects the cost and

price of the Coca-Cola Company.

SOCIAL FACTORS

Being a foreign based company Coca-cola faces opposition by Muslim

activists. The main social issues are:

It faced scandal of humiliating Muslim’s religion that when the inverted

image of Coca-Cola brand name is being viewed on the mirror it disgraces

the name of Holy city Makkah and Hazrat Muhammad (P.B.U.H). This was a

wrong conception as there was no reality in it and this scandal was

flopped after a short span.

One of the greatest social barriers to coca-cola Lahore is the restriction of

coke in the campus premises. Jamiat’s strike to coke affects the sales and

overall image of coke as a larger number of students from all over the

Pakistan are studying in the University of The Punjab. But on the contrary

in the all parts of the country coke is viewed as the partner in the major

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events like Basant and promoter of music thereby making a place in the

hearts of young generation of the society.

TECHNOLOGICAL FACTORS

The making of Coke, Fanta, Diet coke and sprite involves "mixing and

blending, filling and capping ". For this process, concentrate or syrup is

imported from USA and is then mixed in the local plants .Machinery for the

local plants was also imported but now the coca-cola company follows

Local content law as most of the spare parts are locally made. The system

is automated and equipment is fully operational and up-to-dated. In

technology Coca-cola company is far ahead than the several other local

beverage brands of Pakistan. It is a Highly Technical 10 Steps Process.

Which are all done in the local plants using local content law.

DUTIES AND TAXES APPLIED

Duties and Taxes are the tariff barriers for any company to import or

export something to other country. The most important component of

coke is their concentrate which is provided all over the world from USA.

Pakistani Government treats their concentrate under the head of luxuries

and applied second highest duty after tobacco. According to their

spokesman if this duty is removed, then price of coke’s 250ml bottle can

be lessened up to Rs.5.

Laws Abided By & Methods of Conflict Resolution

Coca-cola is one of the oldest multinational corporation, they have a vast

experience of dealing with different governments and different

organizations all over the world. When ever they enter into some country

they made a thorough research work. They analyze the political

restrictions, rules and regulations of doing business, political parties which

can affect policies and policy making authorities. They respect the laws of

host country and design their framework according to the rules and

regulations of the host country.

Methods of Conflict Resolution

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World wide Coca-cola tries to solve any disputes which may arise through

arbitration and they mention this clause in contract that if any dispute

arises, they will go for arbitration but if arbitration does not solve the

problem then they refer their dispute to litigation. They prefer arbitration

because litigation is very expensive and lengthy process; there is fear of

poor image and damaging public relations, fear of unfair treatment in host

country and fear of loss of confidentiality.

As far as Pakistan is concerned up till now no such dispute has arisen in

which they need to go for arbitration. But they go for litigation against

those firms which are involved in using their brand name for fake bottling.

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STRATEGIES TO REDUCE POLITICAL VULNERABILITY

Nowadays political governments are very conscious about foreign

businesses and foreign investments, so they usually have standardized

policies for all the competing businesses; there is no biasness in dealing

with different competing business. But sometimes a situation may arise

due to some political reasons that may create some problems, so coke

deals with such problems strategically.

As we have a example, when Pepsi launch their tin can at Rs.10/-they got

special permission to manufacture tin cans and that was the only plant

which got permission to manufacture cans, as we know that time Pepsi

and Coke are bitter competitors so Coke must go with guns and guns with

Pepsi, they tried to get permission but they failed. So they imported Coke

cans from Dubai at Rs.13/- and sell it for Rs.10/- to compete in the market.

So if some problem arises which can affect their image and that cannot be

solved due to some political and legal problems they solve this

strategically.

As we know that nowadays Pepsi in Pakistan is under the administration

and control of Mr. Hamayun Akhtar who is a Federal Trade Minister of

Pakistan, but nowadays policies are standardized so it doesn’t create any

problems.

Current Strategies Regarding International Operations

One of the reasons of losing their market share in Pakistan in last few

years was their quality. In Pakistan they were operating as franchisee but

now Company has acquired most of the plants except from Peshawar and

Rawalpindi plant now they are very much conscious about their quality

standards and the quality of other two is being controlled by Coca Cola

Exports Corporation.

Another reason was that their backup was not as strong as Pepsi. They

were not getting any kind of help regarding financial problems,

management problems from Coca Cola International. But now most of the

plants are under the control of Company itself and Coke International is

also very keen to raise its market share in Pakistan so they are fully

supporting Coca Cola Beverages Pakistan and Coca Cola Exports

Corporation Pakistan.

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In Pakistan there main focus is on standardized products as Coca Cola,

Sprite, Fanta, and they are going to launch some of new products in next 2

or 3 years.

Adaption and cultural borrowing

Adaption is a key concept in international marketing, and willing to adapt

is a crucial attitude .Adaptation, or at least accommodation, is required on

small matters as well as large ones. Coca-Cola Company recognizes the

need of affirmative action, that is, open tolerance of concept “different

and equal”. Coca-Cola company feels that essential to effective to

Adaption is awareness of its own culture and recognize that differences in

others can cause anxiety, frustration and misunderstanding of the host

intention .The self reference criterion (SRC) is specially operative in

business custom but Coca-Cola company could not indulge its own (SRC)

in others culture it try to adopt the strategies of the host countries where

they are doing business around the world ,it reduce the (SRC) to lower the

barriers of cultural differences . Coca-Cola Company develops an

understanding and willingness to accommodate the differences that

exists. Company is doing a successful business internationally since 1953.

And operating in a home country for more than 50 years it have set up its

strategies to meet the needs of required customer in every way possible

where it is doing business it aware of the possibility of cultural differences

and the probable differences, consequences of failure to adapt, or

accommodate, the seemingly and less variety of customs must be

assessed.

Coca-Cola Company business customs includes imperatives and

adiaphora. Cultural imperatives are the business customs and exceptions

that must be met and conformed to or avoided if relationship is to be

successful. Company knows the best how to do the business at their best.

Human relation, friend ships and or attaining the level of trust are right

tricks to do a business in a home country as well as in a host country.

They that there is no substitute for establishing friend ship in some

cultures before effective business negotiation can begin.

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Company motivate their local agents to make more sales and the

friendship helps establish the right relationship with end users that to

more sales over a longer period of time.

Culture adiaphora relates to the area of behavior or to customs that

cultural aliens may wish to conform or to participate in but that are not

required.

Company feels that such Culture adiaphora has a minute effect on its sale

but it has no longer effects. When an issue arises in a home country about

its penny per bottle is given to the Israel to war against Muslims and mean

while many brands came into existence such as Mecca Cola, Shandy Cola

etc.

They have adapted their company culture according to the external

environment as they are indulge in many community programs such as

scholarship and school funding programs and they have borrow the

culture of Pakistanis. They hire local employees and plan according to the

local environment

PROBLEMS BEING FACED BY COCA-COLA COMPANY

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There are some problems being faced by a company which affects its

business strategies. It is difficult to know where to begin and isolate the

events which shape the business environment.

Distribution

Coca-Cola Company is facing a problem of distribution, as distributors are

expecting more from coco cola to provide an extra distribution channels

which could help them to spread their products at large .Coca-cola

products are some where not available in rural area due to inefficient

distribution system.

Low value of share

Coca-Cola company having a share of about 27% which is lower than its

competitors i.e. Pepsi having market share of 68% involve in more

promotional strategies as compared to Coca-Cola.

Fake Bottling

Fake bottling in Pakistan is one of the major problems being faced by the

company. This problem not only affects the sale volume and profit

margins but also brand value and loyalty of the customers. The

profitability which company gain, ultimately that part of gain goes to fake

bottle producers, who running their business in the name of company

26

Page 27: Coca Cola Pakistan

Bs Commerce 6th (2009-2013)

References :

Google.com

Coca cola Multan ( operational Manager Imran Nawaz)

International business by Griffin Pustay

27