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Documente Profesional
Documente Cultură
Marketing Strategies Of
Coca Cola
PRESENETED TO: MR. SUFIAN AHMAD PRESENTED Y: Sami Ullah Khan 27s-640
TA !E O" CONTENTS CONTENTS #$ ($ )$ +$ Ackno%le&ge'ent$ Mission state'ent Intro&*ction$ Coca Cola$ a$ Coca Cola International$ ,$ -istor.$ /$ Manage'ent$ 0$ Market s1are$ 2$ "inancial re3ort$ 4$ Di5i&en&s an& Cas1 Plan$ 6$ Pro&*cts$ #7$ Strategic 3lanning$ ##$ ottlers o%ne& ,. Coca cola #($ Coca Cola Pakistan$ #)$ Ma8or Co'3etitors a$ Pe3si ,$ -istor.$ c$ "inancial assets$ Market s1are$ "inancial re3ort$ Pro&*cts$ Met1o&olog. #+$ So'e ,asic infor'ation regar&ing 'arketing of coke a$ Target 'arket: ,$ Ma8or seg'ents: c$ "actors effecting sales: &$ Ma8or co'3etitors: e$ Strategies of 9*alit.: f$ T1reats fro' co'3etitors: g$ Targets t1at %o*l& like to attain: 1$ E:3an&ing target 'arket i$ T1reats an& o33ort*nities for 3rice: 8$ Strategies of getting goals i$e$ ;1ig1 3rofits<: k$ Marketing strateg.: l$ E:3ectations for t1e co'ing .ear: '$ -o% coke &eter'ine t1e .earl. ,*&get: #/$ Marketing strategies #0$ Pest anal.sis
$ 3
DEDICATION
T1is re3ort is &e&icate& to '. ,elo5e& 3arents= >1o e&*cate& 'e an& ena,le& 'e to reac1 at t1is le5el$
ACKNOW ED!EMENT
>e t1ink if an. of *s 1onestl. reflects on %1o %e are= 1o% %e got 1ere= %1at %e t1ink %e 'ig1t &o %ell= an& so fort1= %e &isco5er a &e,t to ot1ers t1at s3ans %ritten 1istor.$ T1e %ork of so'e *nkno%n 3erson 'akes o*r li5es easier e5er.&a.$ >e ,elie5e it?s a33ro3riate to ackno%le&ge all of t1ese *nkno%n 3ersons@ ,*t it is also necessar. to ackno%le&ge t1ose 3eo3le %e kno% 1a5e &irectl. s1a3e& o*r li5es an& o*r %ork$ "irst of all %e %o*l& like to t1ank o*r teac1er M". M#hamma$ Sha%i&#' for t1eir g*i&ance t1ro*g1 o*t t1e se'ester$ T1en %e %o*l& like to t1ank o*r frien& an& ,rot1er Mr$ Aees1an An8*' for 3ro5i&ing *s t1e infor'ation t1at %as re9*ire& for co'3letion of t1is 3ro8ect$
MANAGEMENT:
T1e 1ierarc1. of Coca Cola Co'3an. is as follo%s$
Vice residents
MARKET S-AREeing t1e ,iggest co'3an. in t1e soft &rink in&*str.= Coca Cola en8o.s t1e largest 'arket s1are$ T1is co'3an. controls a,o*t /6J of t1e %orl& 'arket$
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T1is s1o%s t1at t1e 'arket of t1e co'3an. is geogra31icall. 5ast an& it is controlling it %it1 great s*ccess$ In (77(= t1e co'3an. gre% t1eir car,onate& softC&rink ,*siness ,. nearl. (/7 'illion *nit cases an& generate& recor& 5ol*'es$ eca*se car,onate& soft &rinks are t1e largest gro%t1 seg'ent %it1in t1e nonalco1olic rea&.CtoC&rink ,e5erage categor. 'eas*re& ,. 5ol*'e= t1at is %1. t1e. are foc*sing 'ore on t1is an& t1e. are contin*all. increasing t1e 3ace ,eca*se t1e. kno% t1at accelerating t1is 3ace is cr*cial to t1eir f*t*re s*ccess$ T1*s t1e. are increasing t1eir 'arket &a. ,. &a.$ T1e o3eration inco'e earne& ,. Coca Cola Co'3an. can ,e ill*strate& ,. t1e follo%ing 3ie c1art$ H"ig*reI
T1is strateg. 1as %orke& a lot an& it 1as 1el3e& t1e' to ,eco'e t1e >orl&Es lea&ing Soft Drink Co'3an.$ T1e glo,al *nit sale of t1e Coca Cola Co'3an. is increasing fro' t1e last ten .ears$ T1e &ata of t1e glo,al *nit sale of t1e Coca Cola Co'3an. can ,e re3resente& ,. follo%ing c1art$ H"ig*reI
42 40 3 6 4 2 0 4574 4534 4554 2002 #ni) sal' in 6illi(ns
So t1ere is 3ositi5e gro%t1 in t1e 'arket of t1e Coca Cola Co'3an.$ T1ere is a %orl&%i&e 5ol*'e increase ,. +J %it1 strong international gro%t1 of /J$ T1is is onl. &*e to t1e inno5ati5e 'arketing 3rogra''ers= %1ic1 1as &ee3ene& t1e relations1i3 of t1e c*sto'ers an& Coca Cola$ T1e financial 1ealt1 an& s*ccess of t1eir ,ottling 3artners is a critical co'3onent of T1e CocaCCola Co'3an.?s a,ilit. to ,*il& an& &eli5er lea&ing ,ran&s$ 1#
In (77(= t1e co'3an. 1a& %orke& %it1 t1eir ,ottlers to t*rn goo& intentions into realit. ,. i'3ro5ing t1e s.ste' econo'ics$ T1e res*lts in (77( reflect t1is stea&il. i'3ro5ing an& '*t*all. constr*cti5e relations1i3 ,et%een t1e Co'3an. an& t1eir ,ottling 3artners$ T1e 'ain reason ,e1in& t1is relations1i3 is to contin*e realiBing s1are& o33ort*nities for gro%t1= %it1 closer coor&ination of o3erations incl*&ing c*sto'er relations1i3s= logistics an& 3ro&*ction$
So t1e 5ol*'e is least in t1e Africa an& 'ost in t1e Nort1 A'erica$ T1e &ata a,o*t t1e 'arket s1are of t1is co'3an. area %ise is gi5en in t1e follo%ing ta,le$ T1e a,o5e ta,le s1o%s t1e geogra31ical earning of t1e Coca Cola Co'3an. an& fro' t1is &ata@ %e can fin& o*t t1at t1e c*sto'ers of Coca Cola are increasing %1ic1 is s1o%n ,. t1e co'3an.Es 3er ca3ita inco'e$ Fnit case e9*als (+ eig1tCo*nce ser5ings$ T1e col*'n= %1ic1 s1o%s t1e nonCalco1olic ,e5erages consist of co''erciall.= sol& ,e5erages= as esti'ate& ,. t1e Co'3an. ,ase& on a5aila,le in&*str. so*rces$ T1e co*ntr. col*'n is &eri5e& fro' 11
T1e Co'3an.?s *nit case 5ol*'e %1ile t1e in&*str. col*'n incl*&es nonalco1olic rea&.CtoC &rink ,e5erages onl.= as esti'ate& ,. t1e Co'3an. ,ase& on a5aila,le in&*str. so*rces$ HTa,leI Co*ntr. Fnit case gro%t1 NonC alco1oli c Drinks (77(
Co'3an . s1are
(77(
Co'3an . s1are Co'3an. 3er ca3ita Inco'e
N(")h Am'"i*a Uni)'$ S)a)'s a)in Am'"i*a A".'n)in a 1"a9il Chil' M':i*( E#"(+' 8 Mi$$l' Eas) E#"asia F"an*' !'"man , !"'a) 1"i)ain I)al, Mi$$l' Eas) S+ain Asia A%"i*a
4 4 6 7 5 9 7 6
5 5 7 4 5 6 10 3
3 3 6 6 3 5 8 5
3 3 6 2 6 3 9 3
2 2 3 7 3 (2) 2 2
2 2 4 2 5 3 5 4
22 23 24 20 23 56 22 12
15 16 15 10 13 23 18 6
17 8 1 8 1 12 6 7 7
8 3 2 2 3 12 4 6 6
6 9 (1) 11 4 7 8 6 8
5 3 1 2 3 5 5 7 3
(14) 7 (6) 8 2 4 4 10 10
1 3 1 3 2 8 4 7 6
14 9 14 17 9 8 17 14 34
5 5 7 6 6 3 12 5 11
12
In Asian 3o3*lation= %1ic1 is t1e satisfie& c*sto'er of Coca Cola= is a33ro:i'atel. )$( ,illion an& t1e a5erage cons*'er en8o.s close to t%o ser5ings of o*r 3ro&*cts eac1 'ont1$ T1ro*g1 an intense foc*s on CocaCCola= inno5ation an& ne% ,e5erages= t1e co'3an. 1as ac1ie5e& 5ol*'e gro%t1 of #7 3ercent in (77($ >it1 &e5elo3ing econo'ies an& 3o3*lations= t1is region 1as strong longCter' 3otential= an& t1e co'3an. is ,*il&ing an e:citing fa'il. of ,e5erage ,ran&s in a&&ition to e:3an&ing t1e 3o3*larit. of o*r core ,ran&s= le& ,. CocaCCola$ In C1ina= for e:a'3le= sales of CocaCCola increase& 0 3ercent$ T1e total *nit case sale of Coca Cola in Asia can ,e s1o%n ,. t1e follo%ing 3ie c1art$ H"ig*reI
So t1e co'3an. is e'31asiBing 'ore in t1is area an& is tr.ing to &e5elo3 a strateg.= %1ic1 can increase t1e gro%t1 of t1e cons*'3tion of Coca Cola ,. t1e 3eo3le of Asia$ A'ong t1e co*ntries of Asia= Ja3an 1as t1e 1ig1est 3ercentage= %1ic1 is a,o*t (6J$ A'ong ot1ers= Pakistan= In&ia an& angla&es1 are t1ose co*ntries %1ere t1e a5erage cons*'3tion is increasing &a. ,. &a.$
13
"INANCIA! REPORT:
T1is co'3an. is financiall. 5er. strong$ It is &*e to t1e strong finances= t1e co'3an. is still s*r5i5ing t1e *3s an& &o%n of t1e ,*siness %orl&$ T1e financial re3ort of Coca Cola Co'3an. of t1e .ear (77# an& (777 along %it1 t1e 3ercentage c1ange is as follo%s$ HTa,leI ;'a" En$'$ D'*'m6'" <4= >In milli(ns ':*'+) +'" sha"' $a)a= "a)i(s an$ ."(/)h "a)'s? 2002 Net o3erating re5en*es O3erating inco'e Net inco'e Net inco'e 3er s1are HbasicI Net inco'e 3er s1are HdilutedI Net cas1 3ro5i&e& ,. o3erating acti5ities *siness rein5est'ent Di5i&en&s 3ai& S1are re3*rc1ase acti5it. "ree cas1 flo% Ret*rn on ca3ital Ret*rn on co''on e9*it. Fnit case sales Hin ,illionsI International o3erations Nort1 A'erica o3erations >orl&%i&e 20,092 5,352 3,969 1.601 1.601 4,110 (963) (1,791) (277) 3,147 26.6% 38.5% 12.5 5.3 17.8 2004 19,889 3,691 2,177 0.882 0.882 3,585 (779) (1,685) (133) 2,806 16.2% 23.1% 11.9 5.2 17.1 7'"*'n)a.' *han.' 1% 45% 82% 82% 82% 15% 24% 6% 108% 12% 5% 2% 4%
(77( ,asic an& &il*te& net inco'e 3er s1are incl*&es a nonCcas1 gain of G$7( 3er s1are after ta:es= %1ic1 %as recogniBe& on t1e iss*ance of stock ,. CocaCCola Enter3rises Inc$= one of t1e e9*it. in5estors of t1is co'3an.$ (77( ,asic an& &il*te& net inco'e 3er s1are incl*&es t1e follo%ing c1arges: G$(+ 3er s1are after inco'e ta:es relate& to an organiBational Realign'ent$ G$#6 3er s1are after inco'e ta:es relate& to t1e Co'3an.?s 3ortion of c1arges recor&e& ,. t1e in5estors of t1e co'3an.$ G$#0 3er s1are after inco'e ta:es relate& to t1e i'3air'ent of certain ,ottling= 'an*fact*ring an& intangi,le assets$ G$7/ 3er s1are after inco'e ta:es relate& to t1e settle'ent ter's of a &iscri'ination la%s*it$ G$7# 3er s1are after inco'e ta:es relate& to incre'ental 'arketing e:3enses in Central E*ro3e$ 14
T1ese c1arges are 3artiall. offset ,. a gain of G$7/ 3er s1are after inco'e ta:es relate& to t1e 'erger of CocaCCola e5erages 3lc an& -ellenic ottling Co'3an. S$A$ an& G$7+ 3er s1are after inco'e ta:es relate& to ,enefits fro' a ta: rate re&*ction in Ger'an. an& fro' fa5ora,le ta: 3lanning strategies$
15
COMPANY STATISTICS:
T1e statistics of t1is co'3an. is i'3ressi5e$ Since it is o3erating t1ro*g1 o*t t1e %orl& t1at is %1. t1e n*',er of e'3lo.ees an& t1e ,ottling e9*i3'ents is 1ig1est a'ong t1e ot1er ,ottling co'3anies$ T1ere is a constant increase in e5er. as3ect %1en %e co'3are t1e statistics of (77# an& t1e statistics of (77($ T1is is ,eca*se@ Coca Cola Co'3an. is increasing its 5ol*'e &a. ,. &a.$ T1e e:3ansion of t1is co'3an.= %1ic1 s1o%s t1e s*ccess of Coca Cola ,ran&s= res*lts in t1e 3ercentage c1ange in t1e statistics of t1e t%o .ears$ T1e statistics is as follo%s$ HTa,leI 2002M E9*i5alent cases ottle an& cans "o*ntain E'3lo.ees Le1icles Col& &rink e9*i3'ents "acilities Pro&*ction onl. Distri,*tion Co',ination Total Percent of Nort1 A'erica 3o3*lation co5erage N*',er of States of O3eration ottle an& can e9*i5alent case 3ackage &istri,*tion Cans NonCrefilla,le ,ottles Refilla,le ,ottles Ca3ital str*ct*re Net &e,t to total ca3ital ratio E ITDA interest co5erage >eig1te& a5erage cost of &e,t Ke. Statistics Constant territor. ,ottle an& can 5ol*'e gro%t1 ottle an& can net re5en*es 3er case c1ange ottle an& can cost of sales 3er 31.sical case c1ange Re3orte& E ITDA Hin ,illionsI Re3orte& E ITDA c1ange Ca3ital e:3en&it*resH in ,illionsI JCage of net o3erating re5en*es Co5erage of Nort1 A'erican CanN,ottle 5ol*'e 4.2 billion 87% 13% 72,000 54,000 2.4 million 25 385 53 463 80% 46 44% 52% 4% 63% 3 6.3% 3% Flat 1 1.95 (18)% 0.97 6% 83% 2004 3.8 billion 87% 13% 67,000 52,000 2.3 million 25 361 50 436 72% 46 45% 51% 4% 59% 3 6.8% % 2% % 2.39 9% 1.18 8% 74%
16
E1ITDA is t1e Earnings ,efore interest= ta:es= &e3reciation= an& a'ortiBation= an& ot1er nonCo3erating ite's$ N') D'6) is t1e !ongCter' &e,t 3l*s c*rrent 3ortion of longCter' &e,t less cas1 an& 'arketa,le sec*rities$ E&#i2al'n) Cas' (" Uni) Cas' is t1e 31.sical case an& fo*ntain gallons con5erte& to a stan&ar& *nit of 'eas*re &efine& as (+ eig1tCo*nce ser5ings or #6( o*nces 3er e9*i5alent case sol& ,. CocaCCola Enter3rises$
PRODFCTS:
T1ere are &ifferent ,ran&s of t1e Coca Cola Co'3an.= %1ic1 are c*rrentl. in *se t1ro*g1 o*t t1e %orl&$ T1is co'3an. not onl. &eals in t1e car,onate& &rinks ,*t also ot1er &rinks$ >1ile la*nc1ing its 3ro&*ct= t1e 'arketing tea' consi&ers t1e c*lt*re of t1e co*ntr.$
17
T1e co''it'ent of t1e co'3an. is to &e5ote reso*rces to %ater onl. in 'arkets %1ere it e:3ects 3rofita,le gro%t1$ T1is strateg. 1as 3ai& &i5i&en&s$ T1e co'3an. 1as s*ccessf*ll. a33lie& itEs a33roac1 to ,ran&s in se5eral ke. 'arkets= incl*&ing Ciel in Me:ico= Mori No MiB*&a.ori in Ja3an= !ona"ua in R*ssia an& Kinle. in In&ia$ acke& ,. a strong net%ork of ,ottling 3artners t1ro*g1 o*t t1e Fnite& States= Dasani ,eca'e t1e nation?s fastestCgro%ing %ater ,ran&$ In E*rasia= t1e entire T*rk*aB ,ran& tea' %orke& toget1er to la*nc1 T*rke.?s first 3*rifie& %ater ,ran&$ T1is .ear= CocaCCola Co'3an. also s*ccessf*ll. energiBe& a 'a8or 3iece of its ,e5erage strateg.O%ater$ . t1e en& of (77#= itEs ,ottle& %ater 5ol*'e e:cee&e& /27 'illion *nit cases= 'aking it t1e secon& ,iggest contri,*tor to t1e gro%t1 of t1e co'3an. after car,onate& soft &rinks$ T1ree of t1e %ater ,ran&s= Dasani= Ciel an& ona9*a eac1 ac1ie5e& sales of o5er #77 'illion *nit cases for t1e .ear$ In (77#an& (77(= t1e co'3an. 1as also 'a&e goo& 3rogress in coffees an& teas$ e5erage Partners >orl&%i&e= t1e rene%e& an& strengt1ene& 'arketing 3artners1i3 %it1 NestlP S$A$= ,egan o3erations in (77#$ T1is 3artners1i3 co',ines NestlP?s kno%le&ge in life science= researc1 an& &e5elo3'ent %it1 t1e e:3ertise of Coca Cola Co'3an. in ,ran& ,*il&ing an& &istri,*tion$ At t1e sa'e ti'e= t1e co'3an. gre% Georgia coffee in Ja3an ,. ) 3ercent t1ro*g1 a%ar&C %inning 'arketing in a categor. t1at %as flat for t1e .ear$ Also in Ja3anO%1ere T1e CocaC Cola Co'3an. is t1e lea&er in t1e total tea categor.= t1e secon&Clargest categor. in t1e nonCalco1olic rea&.CtoC&rink seg'entOit la*nc1e& Maroc1a Green Tea$ >it1 sales of +0 'illion *nit cases for t1e .ear= Maroc1a Green Tea is t1e fastestCgro%ing 3ro&*ct in t1e fastestCgro%ing categor.: green tea$ T1e 3o3*larit. of Maroc1a is also recogniBe& ,. t1e in&*str. %it1 a lea&ing tra&e 8o*rnal na'ing Maroc1a t1e 'ost 3o3*lar ne% foo& an& ,e5erage 3ro&*ct of t1e .ear$ 18
1"
A'ong t1e soft &rinks Fan)a an& S+"i)' ,eco'e s*ccessf*l along %it1 t1e 'a8or ,ran& C(*a C(la an& Di') C(0'$ In ke. 'arkets= t1e co'3an. 1as create& ne% 3ackaging siBes to satisf. cons*'er &e'an&s$ Increasingl.= Me:ican fa'ilies 1a5e l*nc1 toget1er at 1o'e$ T1e a5erage Me:ican 1o*se1ol& &rinks t%oCan&CaC1alf liters or 'ore of soft &rinks &*ring t1at ,reak= %1ile a t%oC liter ,ottle %as t1e largest a5aila,le 3ackage$ So t1e co'3an. intro&*ce& a con5enient (CR liter ,ottle to select regions= contri,*ting to t1e sale of nearl. #$/ ,illion *nit cases of CocaC Cola in Me:ico t1is .ear$ T1is larger ,ottle %ill co'3lete its nation%i&e rollo*t in (77($ In C1ina= CocaCCola is an integral 3art of 1oli&a. cele,rations an& t1e fa'il. getCtoget1ers t1at acco'3an. s*c1 e5ents$ T1ro*g1 an intense foc*s on CocaCCola= inno5ation an& ne% ,e5erages= it 1as ac1ie5e& 5ol*'e gro%t1 of #7 3ercent in (77#$ In C1ina= sales of CocaC Cola increase& ,. 0 3ercent$ In t1e Fnite& States= recogniBing t1at cons*'ers often en8o. t1eir &iet Coke %it1 a slice of le'on= t1e co'3an. S,ottle&S t1e conce3t$ T1e res*ltO&iet Coke %it1 le'onOcontri,*te& to 5ol*'e gro%t1 of + 3ercent for t1e n*',erCone &iet$ Soft &rink in Nort1 A'erica: &iet Coke$ T1e co'3an. increase& its t%o largest ,ottle siBes &*ring t1e (77# 1oli&a.s= an& festi5al 3ackaging 1el3e& &ri5e a 0 3ercent 5ol*'e increase for CocaCCola$ T1e 3ackaging inno5ations &o not 8*st in5ol5e resiBing$ T1e co'3an. 1as also res3on&e& to cons*'ers? c1anging fas1ion st.les %it1 ne% ,ottles$ >it1 ,ran&s s*c1 as Min*te Mai&= -iCC= Si'3l. Orange an& Disne. 8*ices an& 8*ice &rinks in t1e Fnite& States= Too in Asia= Ka3o in !atin A'erica an& i,o in Africa$ T1is .ear= t1e co'3an. reCla*nc1e& its glo,al s3ortsC&rink ,*siness= in5esting in ne% 3ro&*cts= 3ackaging= 3ositioning an& 'arketing$ T1e res*lts s3eak for t1e'sel5es: itEs glo,al s3orts &rinks= le& ,. Po%era&e an& A9*ari*s= gre% ,. #) 3ercent in (77(= nearl. &o*,le t1e gro%t1 rate of t1e %orl&%i&e s3ortsC&rink categor.$ Re5italiBe& in t1e Fnite& States= t1e co'3an. intro&*ce& Po%era&e in nearl. e5er. 'a8or >estern E*ro3ean 'arket= incl*&ing Great ritain= Ger'an. an& S3ain= as %ell as in Me:ico an& !atin A'erica$ T1e co'3an. la*nc1e& (2 3ro&*cts in (77#$ T1e co''it'ent of t1e co'3an. to 3ackaging inno5ation also res*lte& in ne% initiati5es for o*r fo*ntain ,*siness= a c1annel t1ro*g1 %1ic1 'an. cons*'ers en8o. CocaCCola$ In t1e Fnite& States= t1e co'3an. &e5elo3e& F(#n)ain= a total ,e5erage &is3ensing s.ste' t1at is 'ore fle:i,le an& 'ore relia,le$ T%o .ears of researc1 res*lte& in a &is3ensing s.ste' t1at 3ro5i&es e:ce3tional ,e5erage 9*alit.= eas. to *3gra&e tec1nolog.= ,ran& an& gra31ic c*sto'iBation an& i'3ro5e& relia,ilit.$
2#
STRATEGIC P!ANNING
In t1e .ear (77(= t1e co'3an. 1a& a great s*ccess= as t1e strateg. %orke& %1ic1 res*lte& in 'aking Coca Cola Co'3an. t1e %orl&Es lea&ing co'3an.$ In (77#= co'3an. acco'3lis1e& t1e cr*st of itEs strateg. as >orl&%i&e 5ol*'e increase& ,. + 3ercent %it1 strong international gro%t1 of / 3ercent an& clear signs t1at o*r Nort1 A'erican ,*siness is gro%ing soli&l. an& 3re&icta,le$ Earnings 3er s1are gre% ,. 4( 3ercent= as %e &eli5ere& on o*r co''it'ent to create 5ol*'e gro%t1 %1ile aggressi5el. Ret*rn on co''on e9*it. gre% fro' () 3ercent in (777 to )4 3ercent t1is .ear . Ret*rn on ca3ital increase& fro' #0 3ercent in (777 to (2 3ercent in (77#$ T1e co'3an. 1as generate& free cas1 flo% of G)$# ,illion= *3 fro' G($4 ,illion in (777= a clear in&ication of its *n&erl.ing financial strengt1$ T1e strateg. for t1e f*t*re of t1e co'3an. is 5er. straig1tfor%ar&$ T1e ma"0')in. s)"a)'., %(" )h' ,'a" 2002 is as follo%s= Accelerate car,onate& softC&rink gro%t1= le& ,. CocaCCola$ Selecti5el. ,roa&en t1e fa'il. of ,e5erage ,ran&s to &ri5e 3rofita,le gro%t1$ Gro% s.ste' 3rofita,ilit. an& ca3a,ilit. toget1er %it1 o*r ,ottling 3artners$ Ser5e c*sto'ers %it1 creati5it. an& consistenc. to generate gro%t1 across all c1annels$ Direct in5est'ents to 1ig1est 3otential areas across 'arkets$ Dri5e efficienc. an& costCeffecti5eness e5er.%1ere$
21
#667C(77(
T1e a&5ertise'ent of t1e Pe3si c1anges to= ;Yo* got t1e rig1t one ,a,.= F1C-*1Q<$>it1 t1e e:tensi5e *sage of t1e stars in t1e a&&s= t1e 3o3*larit. of Pe3si increase$ In #66( Pe3siC Cola for'e& a 3artners1i3 %it1 T1o'as J$ !i3ton Co$ To&a. !i3ton is t1e ,iggest selling rea&.CtoC&rink tea ,ran& in t1e Fnite& States$ O*tsi&e t1e Fnite& States= Pe3siCCola Co'3an.?s soft &rink o3erations incl*&e t1e ,*siness of Se5enCF3 International$ Pe3siC Cola ,e5erages are a5aila,le in 'ore t1an #67 co*ntries an& territories$ In Asia= t1e. selecte& !a1ore to 'ake t1eir regional office$ T1is %as &one in #627$ T1is regional office is 'onitoring all t1e o3erations carrie& o*t in So*t1 >est Asia$ As in Pakistan= t1e. onl. entere& ,e5erage in&*str.$ T1e. 1a5e ele5en ,ottlers co5ering %1ole Pakistan$ T1e 3lant o3erating 1ere is RiaB ottlers HP5tI !TD$ T1is 3lant %as esta,lis1e& at !a1ore in #62+$ T1e total ca3acit. of t1e 3lant is )7=777 cases 3er &a.$ T1e. 1a5e fo*r filling lines in t1e 3lant o3erating on t1e t1ree s1ift ,ases$ Eac1 s1ift is of eig1t 1o*rs$ T1e. 1a5e 3er'anent %ork force of 2/7 3eo3le an& t1e. e'3lo.ee a33ro:i'atel. #777 3eo3le 'ore on te'3orar. ,asis &*ring s*''er season$
22
Pe3siEs Pro&*cts
Pe3si Tee' Mirin&a Pe3si Ma: Pe3si !e'on Pe3si l*e Mo*ntain De% 2*3
23
24
TARGET MARKET
CokeEs co''ercials ,asicall. ,ase& on .o*ng generations= So= t1e .o*ng generation is t1e target 'arket of Coke ,eca*se t1e. %ant to re3resent Coke %it1 t1e .o*t1 an& energ. ,*t t1e. also consi&er a,o*t t1e ol& 3eo3le t1e. take t1en as a coCtarget 'arket$
MAJOR SEGMENTS
Ma8or seg'ents are ,asicall. t1ose 3eo3le %1o take t1is &rink &ail. an& t1ose areas %1ere t1e &e'an&s is 1ig1er t1en t1e ot1er areas$ T1ere are so 'an. 3eo3le %1o take t1is &rink &ail. an& t1ose 3eo3le %1o take %eekl. an& t1ose %1o take less often are al%a.s t1ere as %ell$ So= t1eir ,asic seg'ents are t1ose 3eo3le %1o take t1is &rink reg*larl.$
An& to get t1ro*g1 %it1 t1is &iffic*lt. t1ere is nee& to increase t1e le5el of 3er ca3ita inco'e of Pakistan ,eca*se it is '*c1 lesser t1an t1e rest of t1e co*ntries$
Co'3etitors
CokeEs 'a8or co'3etitor is ;PEPSI< an& t1ere is no 1esitation to sa. t1is ,eca*se e5er. one kno%s t1at an& all t1e ot1er col& &rinks an& %ater= coffee= tea are t1e co'3etitors$
>eat1er
>eat1er is t1e t1ir& 'a8or factor in effecting t1e CokeEs selling$ T1is is *n&er&e5elo3e& 'arket so t1e cokeEs cons*'3tion in s*''ers is 07J an& in %inters is +7J$
26
MAJOR COMPETITORS
Cons*'ers firstl. &eci&e t1at t1e. are going to 1a5e a soft &rink$ T1en t1e. co'3ete ,ran&s %it1 eac1 ot1er$ !ike t1e. co'3ete Coke %it1 Pe3si an& S3rite %it1 2*3 an& tea' $So t1e 'a8or co'3etitor of Coke is Pe3si$ >1en t1e. 'oti5ate to an. ot1er ,ran& or on Coke itEs in instinct ,asicall. t1at ,ase& on 'essages &eri5e certain feelings$ *t Coca Cola t1inks in a &ifferent %a.= t1e. ,elie5e t1at RC Cola= ne% co'ing AMRAT Cola= an& all 8*ices= e5en t1e. take %ater an& tea as t1eir co'3etitors$
27
>in&fall Profit
Can ,e %in&fall 3rofit$ T1e. are t1e e:tras 3rofit$ >1en t1e cons*'3tion t1e cons*'3tion is on ,oo'$ So= t1ere is &ifferent kin& of 3rofits$
ran& Differentiation
No% &ifferent co'3anies 1a5e got &ifferent ,ran& na'es$ So= 3eo3le can &isting*is1 ,et%een ,ran&s$ T%o 'a8or ,ran&s ;coke< an& ;Pe3si< also 1a5e ,ran& na'es$ 28
Pe3siEs ran&
Pe3siEs ,ran& is ,asicall. is ,asicall. ;ME< ,ran&e&$ T1e. *se t1e te'3era'ent of ;ME<$ In contrast to Coke t1e. ,elie5e on in&i5i&*al str*ggle$
T1reats
T1ere are '*c1 'ore t1reats in increasing 3rices$ eca*se sa'e 3ro,le' of s*,stit*te$ If Coke increase t1e 3rice lets sa. # r*3ee$ T1en 3eo3le &efinitel. %onEt go for coke$ T1e. 1a5e t1e ,est s*,stit*te of Coke t1at is Pe3si$ So t1ese are t1e t1reats in increasing 3rices$ Coke %ill lose t1e 'argin of its 3rofit an& can face loss$
2"
MARKETIN! STRATE!;
O*r local 'arketing strateg. ena,les Coke to listen to all t1e 5oices aro*n& t1e %orl& asking for ,e5erages t1at s3an t1e entire s3ectr*' of tastes an& occasions$ >1at 3eo3le %ant in a ,e5erage is a reflection of %1o t1e. are= %1ere t1e. li5e= 1o% t1e. %ork an& 3la.= an& 1o% t1e. rela: an& rec1arge$ >1et1er .o*?re a st*&ent in t1e Fnite& States en8o.ing a refres1ing CocaCCola= a %o'an in Ital. taking a tea ,reak= a c1il& in Per* asking for a 8*ice &rink= or a co*3le in Korea ,*.ing ,ottle& %ater after a r*n toget1er= %e?re t1ere for .o*$ >e are &eter'ine& not onl. to 'ake great &rinks= ,*t also to contri,*te to co''*nities aro*n& t1e %orl& t1ro*g1 o*r co''it'ents to e&*cation= 1ealt1= %ellness= an& &i5ersit.$ 3#
Coke stri5es to ,e a goo& neig1,or= consistentl. s1a3ing o*r ,*siness &ecisions to i'3ro5e t1e 9*alit. of life in t1e co''*nities in %1ic1 %e &o ,*siness$ It?s a s3ecial t1ing to 1a5e ,illions of frien&s aro*n& t1e %orl&= an& %e ne5er forget it$
31
MARKET POSITIONING
Pro&*ct Range
T1e total range of Coca Cola co'3an. in Pakistan incl*&es: Coke$ S3rite$ "anta$ Diet Coke$
An& co'3an. offers t1eir 3ro&*cts in &ifferent ,ottle siBes t1ese incl*&es: SSR !R NR PET #$/ CANS Hstan&ers siBe ret*rna,le ,ottleI Hlitter ret*rna,le ,ottleI Hno ret*rn ,ottleI or &is3osa,le ,ottle H#$/ litter 3lastic ,ottleI Htin 3ack ))7 'lI
Packing
Coca cola 3ro&*cts are a5aila,le in &ifferent 3acking (+ reg*lar ,ottle s1ell 0 ,ottle 3ack for #$/ 3ets #( ,ottles in a 3ack for &is3osa,le ,ottle (+ cans in one 3ack$
32
PRICE STRATEGY
Tra&e Pro'otion
Coca cola co'3an. gi5es incenti5es to 'i&&le 'en or retailers in %a. a t1at t1e. offer t1e' free sa'3les an& free e'3t. ,ottles= ,. t1is t1ese retailers an& 'i&&le 'an 3*s1 t1eir 3ro&*ct in t1e 'arket$ An& t1atEs %1. coca cola seen 'ore in t1e 'arket$ An& t1e. 1a5e a goo& sale in t1e 'arket ,eca*se accor&ing to t1e e:3ert %1ic1 3ro&*ct seen 'ore in t1e 'arket t1at sells 'ore$ ;Seen as sol&< T1e. &o agree'ents %it1 a s1o3 kee3ers an& stores to e:cl*si5e sale in t1at stores$ T1ese stores are calle& as KEY acco*nts in t1eir local lang*age$ An& coke also in5est 1ea5. ,*&get on t1ese stores an& offers t1e' free sa'3les an& free ,ottles an& so'e ti'e cas1 incenti5es$
33
PROMOTION STRATEGIES
Getting s1el5es
T1e. gets or 3*rc1ase s1el5es in ,ig &e3art'ental stores an& &is3la. t1eir 3ro&*cts in t1at s1el5es in t1at st.le %1ic1 s1o% t1eir 3ro&*ct 'ore clear an& 'ore attracti5e for t1e cons*'ers$
Sale Pro'otion
Co'3an. also &o s3onsors1i3s %it1 &ifferent college an& sc1oolEs cafes an& s3onsors t1eir s3orts e5ents an& ot1er e:tra c*rric*l*' acti5ities for getting 'arket s1are$
FTC Sc1e'e
FTC 'ean *n&er t1e cro%n sc1e'e= coca cola often &o t1is t.3e of sc1e'e an& t1e. offer 5er. 1an&. 3riBes in it$ !ike once t1e. offer ,ic.cles= ca3s= t5 sets= cas1 3riBes etc$ T1is sc1e'e is 5er. '*c1 3o3*lar a'ong c1il&ren$
Direct Selling
In &irect selling t1e. s*33l. t1eir 3ro&*cts in s1o3s ,. *sing t1eir o%n trans3orts$ T1e. 1a5e al'ost +/7 5e1icles to s*33l. t1eir ,ottles$ In t1is t.3e of selling co'3an. 1a5e 'ore 3rofit 'argin$
34
In&irect Selling
T1e. 1a5e t1eir %1ole sellers an& agencies to co5er all area$ eca*se it is 5er. &iffic*lt for t1e' to co5er all area of Pakistan ,. t1eir o%n so t1e. 1a5e so 'an. %1ole sellers an& agencies to ass*re t1eir c*sto'ers for a5aila,ilit. of coca cola 3ro&*cts$
ADLERTISEMENT
Coca cola co'3an. *se &ifferent 'e&i*'s Print 'e&ia Pos 'aterial T5 co''ercial ill,oar&s an& 1ol&ings
Print Me&ia
T1e. often *se 3rint 'e&ia for a&5ertise'ent$ T1e. 1a5e a se3arate &e3art'ent for 3rint 'e&ia$
POS Material
Pos 'aterial 'ean 3oint of sale 'aterial t1is incl*&es: 3osters an& stickers &is3la. in t1e stores an& in &ifferent areas$
35
TL Co''ercials
As e5er.,o&. kno% t1at TL is a 'ost co''on entertaining 'e&i*' so TL co''ercials is one of t1e 'ost attracti5e %a. of &oing a&5ertise'ent$ So Coca Cola Co'3an. &oes reg*lar TL co''ercials on &ifferent c1annels$
36
Sales Lol*'e
Coke &eter'ines its .earl. ,*&get t1ro*g1 t1e sales 5ol*'e$ T1e. first concentrate on t1e t1ing is ;%1at is t1e con&ition of t1eir salesV< if t1e con&ition is goo& of t1eir sales t1en t1e. &efinitel. increase t1eir 3ro&*ction an& sales 5ol*'e$ Ot1er%ise t1e. concentrate on t1eir ol& strategies$
Profita,ilit.:
T1e secon& t1ing t1ro*g1 %1ic1 t1e. &eter'ines ,*&get is t1e ;3rofit< $if t1e. r getting 3rofits %it1 t1e 1ig1 'argin= t1en t1e. &efinitel. %ant to increase t1eir 3rofits in t1e ne:t co'ing .ear$ E5er. organiBation r*ns on t1e ,asis of getting 1ig1 3rofits$ No organiBation %ants to face !oss in t1eir ,*siness$ To get 3rofit is t1e first 3riorit. of t1e Coke$
Target Lol*'e:
To r*n t1e ,*siness e5er. in&*str. 1as so'e targets= %1ic1 t1e. %ant to ac1ie5e in a s3ecific ti'e 3erio&$ If in&*str. ac1ie5es t1ose goals in t1at 3erio& t1en for t1e co'ing .ear it increases t1e 5ol*'e of t1e target$ So Coke "ollo% t1e sa'e t1ing it 1as also so'e goals an& targets to ac1ie5e in t1e gi5en ti'e 3erio&$ >1en t1e. s*ccee& to ac1ie5e t1at target t1en t1e. increase t1eir target 5ol*'e in t1e ne:t .ear$
37
CocaCCola Concerts
A,rarC*lC1a9Es &istinct st.le= l.rics K songs 1a5e 'a&e 1i' an instant 1it a'ong t1e 'asses in Pakistan$ -is enor'o*s 3o3*larit. in t1e co*ntr. K a,roa& is s*33orte& ,. CocaCColaEs co''it'ent to%ar&s 3ro5i&ing 1ealt1. K f*nCfille& entertain'ent for t1e .o*t1 of Pakistan$ CocaCCola ,ro*g1t A,rar to 1is fans t1ro*g1 1ol&ing concerts K feat*ring A,rar in a '*c1Ca33reciate& TLC K MMT feat*re& t1ro*g1o*t t1e co*ntr.$ T1e TLC ca'3aign foc*se& on t1e 1ectic lifest.le of a 3o3 star %1o fo*n& res3ite K relief t1ro*g1 CocaCCola in s1ort 'o'ents t1at 1e 1a& to 1i'self &*ring a concert$ CocaCColaEs ,ran& 3ositioning of 3ro5i&ing &ee3 &o%n refres1'ent for t1e ,o&.= so*l K 'in& %ere ca3t*re& acc*ratel. in t1e TLC K &e3icte& a3tl. 1o% t1e &rink co'3letes t1e 'o'ent for A,rar$
38
CocaCCola GOCRED
T*enc1ing t1e t1irst of 'otorist= 3e&estrians K 3asser,.Es &*ring !a1oreEs 1ottest s*''er season= CocaCColaEs ;GOCRED< tea's %ent o*t into t1e cities 'ain 9*a&rants to ;ser5e K refres1< on t1e s3ot %it1 iceCcol& CocaCColas at &isco*nte& 3rices ,acke& ,. a 1ea5. "M anno*nce'ent ca'3aign t1e ;GOCRED< stall= ser5e& %ell to 3ro'ote t1e CocaCCola in&*str.$
3"
CocaCCola K Nokia
In A*g*st (77#= t1e ne% *n&erCt1eCcro%n 3ro'otion ; Ni0la Ki,aV<H>1at 1a5e * %onI %as la*nc1e& in colla,oration %it1 C1i'era Nokia$T1e 3ro'otion ga5e cons*'er a c1ance to %in t1o*san&Es of CocaCCola ,ran&e& Nokia ))#7 cell*lar 31ones on e5er. 3*rc1ase of 2/7'l RG ,ottle of CocaCCola =S3rite= K "anta$T1e ot1er 1ig1lig1t of 3ro'otion %as t1e ACa#.h) R'$ Han$'$B ca'3aign$ ran&e& CocaCCola %it1 Wca*g1t re& 1an&e&E tea' in t1e' %ent to !a1ore K Karac1i for t1ree &a.s= %it1 target t1at an.one ,eing ca*g1t &rinking CocaCCola %ill ,e a%ar&e& a nokia ))#7 'o,ile 31one K if so'eone is ca*g1t talking on a nokia 'o,ile %ill %in free s*33l. of CocaCCola$ Ca*g1t re& 1an&e& ,eco'e a 1*ge s*ccess a'ong t1e 'asses as it %as one to one interaction ,et%een t1e CocaCCola ,ran& K t1e cons*'ers$ T1is acti5it. 1el3e& ,ille& confi&ence an& ,ran& lo.alt. a'ong core cons*'ers$
CocaCCola K Mc Donal&Es
CocaCCola K ke. acco*nt of MC Donal&Es la*nc1e& t1e ; /' .( )(.')h'"< 8oint 3ro'otion to reinstate a'ongst cons*'ers a real sense of t1e affinit. t1at= ,ot1 s1ares glo,all.$ T1e 3ro'otion kicke& off %it1 3os 'aterial HDanglers= *nting etcI &is3la.e& at all MC Donal&Es resta*rants along %it1 a s3ecial offer for coke K fries$ 4#
Diet Coke
After t1e ac9*isition of t1e in&i5i&*al local franc1ise ,ottling facilities in #660= t1e co'3an. 1as s*ccessf*ll. la*nc1e& its first ne% 3ro&*ct= &iet coke= for t1e first ti'e in al'ost ) .ears$ T1e %as linke& %it1 t1ree fas1ion s1o%s as Diet Coke is relate& to fas1ion K fitness= ,*t t1e 'a8or 1it %as t1e'atic fas1ion s1o%s in resta*rants= %1ic1 are t1e ke. acco*nts of t1e co'3an. as t1is 1as ,een ne5er &one ,efore in Pakistan$
41
CONC!FSION
After t1oro*g1 researc1= %e co'e to t1e concl*sion t1at t1e 'arketing strateg. of Coca Cola is %orking for t1e' an& t1e 3ro&*ct is gaining 3o3*larit. a'ong .o*t1 &a. ,. &a.$
RECOMMENDATIONS
After co'3leting o*r 3ro8ect %e 1a5e concl*&e& so'e reco''en&ation for t1e coca cola co'3an.= %1ic1 are follo%ing$ Coca Cola Co'3an. s1o*l& tr. to e'31asis 'ore on 3ro5i&ing t1eir infrastr*ct*re in t1e 'arket to facilitate t1eir c*sto'ers$ Accor&ing to t1e s*r5e.= con&*cte& ,. t1e international fir' Pakistani 3eo3le like little ,it s%eeter cola &rink$ So for t1is coca cola co'3an. s1o*l& 3ro&*ce t1eir 3ro&*ct accor&ing to t1e local &e'an&$ Marketing tea' s1o*l& tr. to increase t1e a5aila,ilit. of Coke in r*ral areas$ T1e. s1o*l& also foc*s t1e ol& 3eo3le$ No% .o*ng generation 1as a tren& to &rink a coke ( reg*lar ,ottles at sa'e ti'e= so 3ro5i&ing 'ore satisfaction to t1e' co'3an. s1o*l& intro&*ce R liter &is3osa,le ,ottle$
42
7O ITICA CARIA1 ES
7(li)i*al 2a"ia6l's S)"(n.l, E%%'*)'$ ++ S(m' /ha) E%%'*)'$ + N( E%%'*) + NE S(m' /ha) E%%'*)'$ S)"(n.l, E%%'*)'$
Effects of go5ern'ent reg*lations K &ereg*lations Effect of en5iron'ental 3rotection la%s if an. I'3ort an& e:3ort reg*lations Effect of 3olitical con&itions in certain co*ntries of Coke An. effect of election= 'ilitar. take o5er= Re5ol*tion at Coke
YES NE NE YES
ECONOMICA CARIA1 ES
E*(n(mi*al Ca"ia6l's S)"(n.l, E%%'*)'$ ++ S(m' /ha) E%%'*)'$ + N( E%%'*) + S(m' /ha) E%%'*)'$ S)"(n.l, E%%'*)'$ YES YES YES NE
Do soaring interest rates 'ake ,*siness task an. 1ar&er An. effect &*e to inflation An.t1ing &one to re&*ce *ne'3lo.'ent An. effect of ##t1 Se3te',er (77#= inci&ent at Coke in Pakistan
44
SOCIA CARIA1 ES
S(*ial 2a"ia6l's S)"(n.l, E%%'*)'$ ++ YES YES YES S(m' /ha) E%%'*)'$ + N( E%%'*) + S(m' /ha) E%%'*)'$ S)"(n.l, E%%'*)'$
Effects of a&5ertise'ent of Coke on P*,lic 3o3*larit. -o% %ill &o CokeEs contri,*tion affect c1arit. organiBations of Pakistan -as rising conscio*sness of nat*ral reso*rces in 3eo3le effecte& .o*r ;sa5e en5iron'ent acti5ities$
ENLIRONMENT
A large 3art or o*r relations1i3 %it1 t1e %orl& aro*n& *s is o*r relations1i3 %it1 t1e 31.sical %orl&$ >1ile %e 1a5e al%a.s so*g1t to ,e sensiti5e to t1e en5iron'ent= %e '*st *se o*r significant reso*rces an& ca3a,ilities to 3ro5i&e acti5e lea&ers1i3 on en5iron'ental iss*es= 3artic*larl. t1ose rele5ant to o*r ,*siness$ >e %ant t1e %orl& %e s1are to ,e clean an& ,ea*tif*l$ >e are al%a.s inno5ating to ,ring .o* &ifferent &elicio*s ,e5erages$ T1is sa'e s3irit of inno5ation co'es ali5e in o*r en5iron'ent 3rogra's$ >eEre co''itte& to 3reser5ing o*r en5iron'ent= fro' *se of 'ore t1an G ( ,illion HF$SI a .ear in rec.cling content an& s*33liers= an& en5iron'ent Manage'ent initiati5es= &o%n to 5er. local neig1,or1oo& collection an& ,ea*tification efforts$ -ereEs a sa'3le of %1at %eEre &oing in &ifferent co''*nities aro*n& t1e %orl& regar&ing t1e conser5ation of %ater an& nat*ral reso*rces= cli'ate c1anges= %aste en5iron'ent e&*cation$ 45
T1e CocaCCola s.ste' in Pakistan o3erates t1ro*g1 eig1t ,ottlers$ "o*r of %1ic1 are 'a8orit.Co%ne& ,. CocaCCola e5erages Pakistan !i'ite& HCC P!I$
COMMFNITY INLO!LEMENT:
In (777= %1en eastern Pakistan s*ffere& its %orst &ro*g1ts= T1e CocaCCola s.ste' initiate& a fa'ineCrelief 3rogra' to 1el3 5icti's an& %as t1e first 3ri5ateCsector co'3an. to assist$ T1e CocaCCola s.ste' in Pakistan initiate& a 5ol*ntar. -a88 3rogra' t1at allo%s one e'3lo.ee fro' eac1 3lant= selecte& t1ro*g1 a &ra%= to ,e sent on t1e -ol. Pilgri'age to Mecca at t1e Co'3an.Es e:3ense$
YES
YES
47
CONC!FSION:
CocaCCola no &o*,t co'e t1e 1eart ,eat of Pakistanis$ CocaCCola is one of t1e lea&ers in s3onsoring t1e 'ost i'3ortant= t1rilling e5ents$ E$g$ Cricket 'atc1es= concerts an& 'an. ot1er social occasions$ E5ent at t1e 3resent t1e. are organiBing a !asant festi5al for %1ic1 t1e. ,*sil. organiBing st*ff.
S$1
48