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COCA COLA INTERNATIONAL (INTRODUCTION)

- Coca-Cola Enterprises, established in 1986, is a young company by the


standards of the Coca-Cola system.
- The Coca-Cola Company traces begin at 1886, when an Atlanta pharmacist,
Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain
drinks. However the bottling business began in 1899 when two Chattanooga
businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the
exclusive rights to bottle and sell Coca-Cola for most of the United States
from The Coca-Cola Company.
- The Coca-Cola bottling system continued to operate as independent, local
businesses until the early 1980s when bottling franchises began to
consolidate.
- In 1986, The Coca-Cola Company merged some of its company-owned
operations with two large ownership groups that were for sale, the John T.
Lupton franchises and BCI Holding Corporation's bottling holdings, to form
Coca-Cola Enterprises Inc.
- In December 1991, a merger between Coca-Cola Enterprises and the
Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger,
stronger Company, again helping accelerate bottler consolidation. As part
of the merger, the senior management team of Johnston assumed
responsibility for managing the Company, and began a dramatic, successful
restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total
revenues were $5 billion and continue growing well until today.

PRODUCTS (Soft drinks)

There are different brands of the Coca Cola Company, which are currently in use throughout
the world. This company not only deals in the carbonated drinks but also other drinks. While
launching its product, the marketing team considers the culture of the country.
Major products of coca cola:
• Coke
• Sprite
• Fanta
• Diet coke
• Coke classic
Among the soft drinks Fanta and Sprite become successful along with the current major brand
the Diet Coke. In key markets, the company has created new packaging sizes
to satisfy consumer demands. Increasingly, Malaysian families have lunch together at home.
The average Malaysian household drinks two-and-a-half liters or more of soft drinks during
that break, while a two- liter bottle was the largest available package. So the company
introduced a convenient 2-½ liter bottle to select regions, contributing to the sale of nearly 1.5
billion unit cases of Coca- Cola in Mexico this year. This larger bottle will complete its
nationwide rollout in 2002. In China, Coca-Cola is an integral part of holiday celebrations and
the family get-togethers that accompany such events. Through an intense focus on Coca-Cola,
innovation and new beverages, it has achieved volume growth of 10 percent in 2001. In
China, sales of Coca- Cola increased by 6 percent. In the United States, recognizing that
consumers often enjoy their diet Coke with a slice of lemon, the company "bottled" the
concept. The result—diet Coke with lemon—contributed to volume growth of 4 percent for
the number-one diet.
Soft drink in North America: diet Coke. The company increased its two largest bottle
sizes during the 2001 holidays, and festival packaging helped drive a 6 percent volume
increase for Coca-Cola. The packaging innovations do not just involve resizing. The company
has also responded to consumers' changing fashion styles with new bottles.
This year, the company re-launched its global sports-drink business, investing in new
products, packaging, positioning and marketing. The results speak for themselves: it’s global
sports drinks, led by Powerade and Aquarius, grew by 13 percent in 2002, nearly double the
growth rate of the worldwide sports-drink category. Revitalized in the United States, the
company introduced Powerade in nearly every major Western European market, including
Great Britain, Germany and Spain, as well as in Mexico and Latin America. The company
launched 27 products in 2008.

ADVERTISING BUDGET

Coke determine the advertising budget based on its yearly budget by the
• Sales volume
• Profitability
• Target volume

Sales Volume
Coke determines its yearly budget through the sales volume. They first concentrate on the
thing is “what is the condition of their sales?” if the condition is good of their sales then they
definitely increase their production and sales volume. Otherwise they concentrate on their old
strategies.

Profitability
The second thing through which they determines budget is the “profit” .if they r getting
profits with the high margin, then they definitely want to increase their profits in the next
coming year. Every organization runs on the basis of getting high profits. No organization
wants to face Loss in their business. To get profit is the first priority of the Coke.

Target Volume
To run the business every industry has some targets, which they want to achieve in a specific
time period. If industry achieves those goals in that period then for the coming year it
increases the volume of the target.
So Coke Follow the same thing it has also some goals and targets to achieve in the given time
period. When they succeed to achieve that target then they increase their target volume in the
next year.
TARGET MARKET
Coke’s commercials basically based on young generations, So, the young generation is the
target market of Coke because they want to represent Coke with the youth and energy but
they also consider about the old people they take then as a co-target market.

SEGMENTATION
The purpose for segmenting a market is to allow marketing or sales program to focus on the
subset of prospects that are "most likely" to purchase the offerings. If done properly this will
help to insure the highest return for marketingor sales expenditures. Depending on whether
we are selling our offering to individual consumers or a business, there are definite
differences in what we will consider when defining market segments. It can be done by
identifying the demographic, cultural environment and economic situation.
Demographic
Demographic trends observed in Coca Cola products shows that it appeals to the
younger generation mostly. Especially from the age 6-25 years old. There are so many people
who take this drink daily and those people who take weekly and those who take less often are
always there as well. So, their basic segments are those people who take this drink regularly.

Economic
All of Coke's products are economically priced. This would attract a vast number
consumers to buy and consumer products offered by Coca Cola as it is affordable and
reasonably priced. Besides that, Coca Cola is developing in areas. For example, it is
distributed to cities and towns such as Penang, Malacca, and Kuala Lumpur. One of the main
factors that contribute to the situation mentioned is because majority of individuals in cities or
developing areas have purchasing power as many of them have jobs and earn a higher income
compared to individuals residing in the rural areas.
ADVERTISEMENT

Coca cola company use different mediums


• Print media
• Pos material
• Tv commercial
• Billboards and holdings
• Promotional activities

Print Media
They often use print media for advertisement. They have a separate department for print
media.

POS Material
Pos material mean point of sale material this includes: posters and stickers display in the
stores and in different areas.

TV Commercials
As everybody know that TV is a most common entertaining medium so TV commercials is
one of the most attractive way of doing advertisement. So Coca Cola Company does regular
TV commercials on different channels.

Billboards And Holdings


Coca cola is very much conscious about their billboards and holdings. They have so many
sites in different locations for their billboards.

SALES PROMOTION ACTIVITIES


- This is coca cola’s main advertising strategies which had been enforced widely.
Examples are below:
Coca-Cola Cricket
Cricket the most sought after; watched & played game throughout world. The game of
cricket has been owned by various brands in the industry for the promotion of their products
over a period of time. It has ranged from tobacco to lubricants to communication companies
to banks to airlines & lately to the beverage industry. The competition has become tougher &
tougher as the time has progressed.
Coca-Cola signed a sponsorship agreement with eight of National cricket players.
Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it
consumers & masses invested in the opportunity and launched a massive campaign on mass
media showing all these cricket stars endorsing & complimenting Coca- Cola brand. The
Coca-Cola Company developed three TV commercials & four testimonial ads with the player
& ran them on the national net work during various cricket matches. These bold steps taken
by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board.
This campaign helped Coca-Cola to establish its association with the game & the player.

Coca-Cola Concerts
Abrar-ul-haq’s distinct style, lyrics & songs have made him an instant hit among the
masses in Pakistan. His enormous popularity in the country & abroad is supported by Coca-
Cola’s commitment towards providing healthy & fun-filled entertainment for the youth of
Pakistan. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in
a much-appreciated TVC & MMT featured throughout the country.
The TVC campaign focused on the hectic lifestyle of a pop star who found respite &
relief through Coca-Cola in short moments that he had to himself during a concert. Coca-
Cola’s brand positioning of providing deep down refreshment for the body, soul & mind were
captured accurately in the TVC & depicted aptly how the drink completes the moment for
Abrar.

Coca-Cola GO-RED
Quenching the thirst of motorist, pedestrians & passerby’s during this current hottest
season, Coca-Cola’s “GO-RED” teams went out into the cities main quadrants to “serve &
refresh” on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM
announcement campaign the “GO-RED” stall, served well to promote the Coca-Cola industry.
Coca-Cola Party in a Park.
In June 2000, Coca-Cola created an experiential musical evening in Lahore, where
Junoon(celebrity) performed. This program was recorded and one-hour program shown in the
national TV for free.10 million households saw Coca-Cola ‘Party in a Park’ while 10
thousand people attended the event.

Coca-Cola Shopping Festival


Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping
festival, a resounding success with tempting discounts, live music, great prizes & fire
works. Liberty marketing Gulberg was a hive of activity during the weeklong shopping
extravaganza. The in augural event proved so popular that it is now set to become an
annual fixture.

Coca-Cola & Mc Donald’s


Coca-Cola & key account of MC Donald’s launched the “we go together” joint promotion to
reinstate amongst consumers a real sense of the affinity that, both shares globally. The
promotion kicked off with pos material (Danglers, Bunting etc) displayed at all MC Donald’s
restaurants along with a special offer for coke & fries.
And there are much more such as Coca-Cola Pet Promotion, Coca-Cola Wonder of the World
Promotion and much more to come.

CONCLUSION
After thorough research, we come to the conclusion that the advertising strategy of Coca Cola
is working for them and the product is gaining popularity among youth day by day. Therefore
we would like to lay some recommendation for the coca cola company, which are following:
• Coca Cola Company should try to emphasis more on providing their
infrastructure in the market to facilitate their customers.
• According to the survey, conducted by the international firm Malaysian people
like little lesser sweetness in cola drink. So for this coca cola company should produce
their product according to the local demand.
• Marketing team should try to increase the availability of Coke in rural areas.
• They should also focus the old people.
• Now young generation has a trend to drink a coke 2 regular bottles at same
time, so providing more satisfaction to them company should introduce ½ liter
disposable bottle.