Introduction:

Coca-Cola is an American multinational beverage company and the oldest multinational

company in Bangladesh. Coca-Cola recently offers more than 500 brands and 200 countries.
Coca-Cola produce as franchise system business in Bangladesh. Coca-Cola International
Beverages Pvt. Ltd. And Gazi Shams Uddin, Chief Operating Officer (Beverages Unit), Abdul
Monem Limited along with other senior officials from Coca-Cola .

Abdul Monem Ltd. (AML) is the only official bottler of Coca-Cola, Sprite, Fanta Orange and
Fanta Lemon in Bangladesh authorized by the Coca Cola International headquarter located in
Atlanta, USA. Through three bottling plants located in Dhaka, Comilla and Chittagong and with
a devoted distribution channel spread all around the country, AML has well established its strong
and dominant presence in beverage industry of Bangladesh. Coca-Cola gives 1700 people
working facility in Bangladesh.

The Coca-Cola company is the ‘world’s largest beverage company and is the leading producer
and marketer of soft drinks. However Coca-Cola is not the sort of company to live in its past
glories instead it looks to the future as a challenge and constantly seeks new markets and ways of
increasing its market share in areas where it currently has a strong presence. It is the world’s
largest producer and distributer of syrups and concentrates for soft drinks.

As we all know, the Coca is today’s one of the biggest corporation that offers different
refreshment in form of a soft-drink. But aside from their historical success, the Coca Cola
Company is still a typical business that is affected and at the same time affecting the different
type of communities.

For generations, the simple pleasure of drinking Coca-Cola has been associated with special
times, special places and timeless moments but also with the satisfying experience of everyday
life. That is the magic of Coke. Coca-Cola, the brand…is the heart of our company. It has always
been and always will be. Coca-Cola, Fanta and Sprite create the magic to provide consumers

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with special moments. Consumers of all ages want great tasting beverages that also provide
nutrients for healthy growth and to make them feel their best.
There are two important things. The company have to do
1. Enhance the Coca-Cola trademark
2. Satisfy the Customer needs and expectations
“The Customer is always right”

Coca-Cola committed to

 Building preference & market leadership for our brands.

 Achieve quality excellence and serve our customers with quality products. Maximizing
profits
 Developing People
 Optimum utilization of assets

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 General environment Analysis of Coca-Cola
The Coca Cola Company and other organizations have their own weaknesses and strengths that
can both affect the future performance of their respective business in the external environment.
Analyzing the external environment in Bangladesh constraints is an advantage for the companies
since they can identify the possible factors that tend to leave an impact on their business. These
six external environment factors are discuss below…

 Political/Legal Environment:

The changes in laws and regulation, such as accounting standards, taxation requirements and
environmental laws and foreign jurisdictions might affect the book of the company as well as their
entry in this country. Other than that, the changes in the nature of business as non-alcoholic
beverages can gain competitive product and pricing pressures and the ability to improve or
maintain the share in sales in global market as a result of action by competitors.

The legal factors include discrimination law, customer law, antitrust law, employment law and
health and safety law. In Coca-Cola the business is subjected to various laws and regulation in the
numerous countries in which they do the business, the laws include competition, product safety,
advertising and labelling, container deposits, environment protection, and labor practices.
In Bangladesh, the products of the company is subjected to various acts like Drug and Cosmetic Act,
Occupation Safety and Health Act, various environment related acts and regulations, the
production, distribution, sale and advertising of all the products are subjected to various laws and
regulations. Changes in these laws could result in increased costs and capital expenditures, which
affects the company profitability and also the production and distribution of the products.

 Changes in laws and regulations, including changes in accounting standards, taxation

requirements, and environmental laws in domestic or foreign jurisdictions.

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  Changes in the non-alcoholic business environment. These include, without limitation,
competitive product and pricing pressures and their ability to gain or maintain share
of sales in the global market as a result of action by competitors.

 Political conditions, especially in international markets, including civil unrest,

government changes and restrictions on the ability to transfer capital across borders.

The political conditions of the country are also basis of the study, especially in internal markets
and other governmental changes that affects their ability to penetrate the developing and
emerging markets that involves the political and economic conditions. However, Coca-Cola
continuously monitoring the policies and regulations set by the government.

Coca-Cola is the leading soft drink brand in Bangladesh. However, the primary barrier for Coca-
Cola’s entry into the Bangladeshi market was its political environment. Despite the liberalization
of the economy in and introduction of the New Industrial Policy to eliminate barriers such as
bureaucracy and regulation, there was still a lot of protectionism. When Coca Cola had decided to
enter in Bangladesh to distribute the products, Coca-Cola was monitoring the policies and
regulations of this country. For the example, when entering Muslim country like Bangladesh,
Coca-Cola followed the regulation by adding “Halal” stamp in each of Coca-Cola’s products. In this
case, Coca Cola has no political issues in the matter of producing their product in Bangladesh.

 The courts of competent jurisdiction at Dhaka shall have exclusive jurisdiction to

determine any and all disputes arising out of, or in connection with, the Promotion.
 Participation in the Promotion is unauthorized in any jurisdiction that does not give effect
to all provisions of these Terms, including without limitation, this clause.
 Further all issues and questions concerning the construction, validity, interpretation and
enforceability of these Terms, or the rights and obligations of the Participants and partners
of Promotion shall in accordance with the laws of the Republic of Bangladesh.

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Coca Cola has to make sure that they have written price, manufacturing date, expiry date,
batch no, nutritional facts are written on the packed product. Ministry of Labor makes the
laws for proper employment in the country.

They have stipulated norms on employing people from the country and getting expatriates
in the company as well. Coca Cola has made sure that female employees are treated with
respect and given equal importance at the work place. Every field of work has got its own
wage, these are to meet the norms and laws set by the labor ministry of Bangladesh. When
employing anyone, Coca Cola doesn’t discriminate on social, regional or any racists‟ basis.

 Economic Environment:

The economic factors analyze the potential areas where the firm can grow and expand. It
includes the economic growth of the country, interest rates, exchange rates, inflation rates,
wage rates and unemployment rate in the country.

14 November 2014 Inflation continued its descent in October, coming down to 6.6 percent.
In recent days Coca-Cola’s inflation grows 7.5%. In Bangladesh 45%-55% charges for
their disposal income as corporate rule and charges 25% as individual rule. Economic
environment examines the local, national and world economy impact which is also includes
the issue of recession and inflation rates. The non-alcoholic beverage industry like
Bangladesh has high sales in countries outside the U.S because here alcohol is strongly
prohibited from religious perspective.

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According to the Standard and Poor's Industry surveys, "For major soft drink companies, there has
been economic improvement in many major international markets, These markets will continue
to play a major role in the success and stable growth for a majority of the non-alcoholic beverage
industry like Bangladesh. There is a low growth in the market for carbonated or soft drinks,
especially in Coca Cola’s main market.

The company first analyzes the economic condition of the country before venturing into that
country. When there is an economic growth in the country, the purchasing power among people
increasing. It gives the company or the marketer a good chance to market the product. Coca-Cola,
in the past identified this correctly and rightly started its distribution across Bangladesh.
Interest rates are the rate which is imposed on the company for the money they have borrowed
from government. When there is an increase in the interest rates, it may determine the company
in further investment as the cost for borrowing is higher. Coca-Cola uses derivative financial
instruments to cope up with the fluctuating interest rates. Inflation and wage rate go hand in hand,
when there is an increase in the inflation the employee demand for a higher wage rate to cope up
with the cost of living.

This comes as additional cost for the company which cannot be reflected in the price of the final
product as the competition and risk in this segment is higher. This is a threat in the external
environment faced by the company. From the above explanation it is clearly seen that the
economic factors involves a major impact in the behavior of the company during various economic
situations.

 Social-Cultural Environment:

Social factors are mainly the culture aspects and attitude, health consciousness among people,
population growth with age distribution, emphasis on safety. The company cannot change the
social factors but the company has to adjust itself to the changing the society. The company adapts
various management strategies to adapt these social trends.

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 Coca-Cola which is a company, is directly related to the customer, so social changes are the most
important factors to consider. Each and every country has a unique culture and attitude among
the people. It is very important to know about the culture before marketing in a particular country.
Coca-Cola has about 3300+ products in their stable, when entering into a country it does not
introduce all the products. When they started their business in Bangladesh, it introduces
minimum number of products according to the culture of the country and the attitude of the
people.

Consumers and government are becoming increasingly aware of the public health consequences,
mainly obesity which is the second social factor in the soft drinks industry. It inspired the company
to venture into the areas of Diet coke and zero calorie soft drinks. The problem of obesity is taken
seriously among the youngsters of who like to maintain a good physique. Hence coke introduced
dietary products for those youngsters of Bangladesh who can enjoy coke with zero calories. In one
of the study it is said that “Consumer from the age groups 37 to 55 are also increasingly concerned
with nutrition”. Since many are aware, they are concerned with the longevity of their lives. This
will affect the demand of the company in the existing product and also is an opportunity to venture
into new health and energy drinks industry.

Population growth rate and the age distribution is another social factor to be considered. It is very
important because non-alcoholic markets have most of its share from the children and youngsters.
Adults used to celebrate mostly with alcohol. The age distribution of the country becomes
important for the success of the product in this country.
Initially, it struggled to find acceptance as there were already other brands. Coca-Cola had earlier
focused more on the American way of life in their advertising campaigns, which the Bangladeshi
consumers could not identify with. Also, they did not focus on competition from other alternatives.

However, things were brought under control when they gave more attention on their marketing
mix. With the lowering of their prices by almost 15-20%, more investment in market research and
focusing on the target group of 18-24 year olds of our country, they were able to increase their
market share and build brand loyalty.

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Coca Cola today, has made significant investments to build its business in Bangladesh. It has also
generated employment for lots of people in related industry through its procurement, supply and
distribution cycles in our country.

The soft drink industry today is growing steadily due to the economy, strengthened middle class
and low per capita consumption. With the increase in health consciousness among the urban
consumers, the company has introduced newer products such as Diet Coke, which contain lesser
calories than ordinary Coca-Cola. This is also responsible for the company shifting focus from
carbonated drinks to Fruit Drinks / Juices and bottled water.

The rural market had also been identified by Coca-Cola as an attractive target, with almost 70% of
our country’s population.

 Technological Environment:

Technology plays a varied role in the soft drinks industry. The manufacturing and distribution of
the products in our country is relatively a Low-Tech business, although the creation of a new
product with the perfect blend and taste is a science (an art in itself).

Technological contributions are most important in packaging in our country and all over the world.
The company rely on their bottling partners for a significant portion of their business. Nearly 83%
of Bangladeshi unit case volume is manufactured and distributed by their bottling partners in
whom the company does not have controlling power. Hence it is necessary for the company to
maintain a cordial relation with their bottling partners. If the company do not give simple support
in pricing, marketing and advertising then the bottling industry while increase their short term
profits, may become detrimental to the company.

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The advancement in technology in the company has led to: Introduction of new ways for the
availability of Coca-Cola, it introduced general vending machines in Bangladesh and all over the
world. In products it led to the development of new products in our country like Cherry Coke, Diet
Coke etc. in our country. The technical advancement in the bottling industries include,
introduction of recyclable and non-refillable bottles, introduction of cans which are trendy, stylish
and popular among the youngsters of our country.

Technology is the main focus of the analysis where the introduction and the emerging
technological techniques are valued. This creates opportunities for new products and product
improvements in our country in terms of marketing and production. As the technology advances,
new products are introduced into the Bangladeshi market. The advancement in technology has
led to the creation of cherry coke but consumers still prefers the traditional taste of the original
coke in our country and all over the world.

 Global Environment:

Coca Cola has earned a title of environment friendly company and Coca Cola Bangladesh too has
followed in the footsteps. Coca-Cola’s Corporate is an initiative that prioritizes many global issues;
one of them being „water conservation‟. They support many community based rainwater
harvesting projects and help lending conservation education. Globalization is a way of eliminating
different countries continent and economy so as to make it easier to trade and transections within
and between other countries. Increase in economic can be seen to be on the major benefit gain
from globalization.

Coca Cola applies sales promotion marketing in various formats. Instances of sales promotion
applied by the company include but not limited to the offer of a free cooler bag if a customer
commits to a specific amount of a minimum purchase, offer of a seasonal Christmas, EID, PUJA
that comprises Coca-Cola “Buy 2 for the Price of 1” sales promotion during football seasons and
others. Moreover, many restaurant in Bangladesh chains such as KFC, BFC, PIZZA HUT and Subway
around the globe offer Coca Cola free of charge as a part of their own sales promotion campaign.

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Package with a uniform taste of product across the country, this became some of the foundation
strategy of the company. Coca-Cola company focus and meet those request a brand name Coca-
Cola and Red and White bottle attractive packaging system. The road to success has never been
smooth and easy. For Coca-Cola Company the phrase seems perfectly matched, the Company
faced a lot of challenges in some countries as it was trying to globalize. Some countries prohibited
the use of Coca-Cola products with the assertion that the products are health threatening and
cheering obesity, which are two major concern for people nowadays.
Other countries suits the Company for being selective in providing healthcare to their workers.
Another major challenged faced by the Company of the beverages market by other strong
Companies such as Pepsi.

Coca Cola Company should try to emphasis more on providing their infrastructure in the market
to facilitate their customers.

From our analysis, we have found some challenges that Coca-Cola Company is facing here in
Bangladesh. The Challenges are as follows-

 In rural areas especially in remote areas, Coke is not available but there is a demand.

 In Bangladesh, Coke Diet and Zero is not that much available. They are having production
and problem.

 Demographic Environment:

Deferent ages have their different requirement. Demography is the study of the human population
of size, density, age, gender, race, occupation in Bangladesh. The demographic environment is of
major interest to marketers because it involves people, and people make up markets. Within Coca
Cola several different demographic factors are relevant to their market sector.

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The company should target the age group that consumes most of its brand and customizes the
promotional and marketing strategies that suits their behaviors. Age is a factor that is relevant as
the organization has to obey by certain laws and regulations for example by advertising to children,
it is considered unconventional and morally wrong. Coca-Cola have stated that they will not
advertise their products to children and will not show them on children TV channels as they
contain high quantity of sugar and are unhealthy.

Coca-Cola produce different product for different region. Thus, marketers need to form more
precise age-specific segments within each group. Defining people by their birth date may be less
effective than segmenting them by their lifestyle, life stage, or the common value they seek in the
product they buy. So Coca-Cola as a soft drink it target the youth and old people while the other
products under Coca-Cola.

 According to the survey conducted by an international firm, Bangladeshi people like little bit
sweeter 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 on the old people.
 Now young generation has a trend to drink a coke 2 regular bottle at same time, so providing
more satisfaction to them company should introduce ½ liter disposable bottle.
 As, in Bangladesh, having a good number of demand, Coke Diet and Zero is not that much
available, so they should emphasize on the supply of these two brands.

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 SWOT Analysis of Coca-Cola

 SWOT Analysis:

The alphabets in the word SWOT sands for Strength, Weakness, Opportunity and Threats. In
SWOT analysis, we basically going to discuss about the strength, weakness, opportunity and
threats of Coca-Cola Company. So, here goes the SWOT analysis of Coca Cola Company.

 Strength:
 The best global brand in the world in terms of value: According to Interbrand, The Coca
Cola Company is the most valued ($77,839 billion) brand in the world.

 World’s largest market share in beverage: Coca Cola holds the largest beverage market
share in the world (about 40%).

 Strong marketing and advertising: Coca Cola’ advertising expenses accounted for more than
$3 billion in 2012 and increased firm’s sales and brand recognition.

 Most extensive beverage distribution channel: Coca Cola serves more than 200 countries
and more than 1.7 billion servings a day.

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 Customer loyalty: The firm enjoys having one of the most loyal consumer groups.
 Bargaining power over suppliers: The Coca Cola Company is the largest beverage producer in
the world and exerts significant power over its suppliers to receive the lowest price available
from them.
 Corporate Social Responsibility (CSR): Coca Cola is increasingly focusing on CSR programs, such
as recycling/packaging, energy conservation/climate change, active healthy living, water
stewardship and many others, which boosts company’s social image and result in competitive
advantage over competitors.

 Weaknesses:

 Significant focus on carbonated drinks: The business is still focusing on selling Coke,
Fanta, Sprite and other carbonated drinks. This strategy works in short term as
consumption of carbonated drinks will grow in emerging economies but it will prove weak
as the world is fighting obesity and is moving towards consuming healthier food and drinks.
 Undiversified product portfolio: Unlike most company’s competitors, Coca Cola is still
focusing only on selling beverage, which puts the firm at disadvantage. The overall
consumption of soft drinks is stagnating and Coca Cola Company will find it hard to penetrate
to other markets (selling food or snacks) when it will have to sustain current level of growth.
 High debt level due to acquisitions: Nearly $8 billion of debt acquired from CCE’s
acquisition significantly increased Coca Cola's debt level, interest rates and borrowing costs.
 Negative publicity: The firm is often criticized for high water consumption in water scarce
regions and using harmful ingredients to produce its drinks.
 Brand failures or many brands with insignificant amount of revenues: Coca Cola
currently sells more than 500 brands but only few of the brands result in more than $1 billion
sales. Plus, the firm’s success of introducing new drinks is weak. Many of its introduction result
in failures, for example, C2 drink.

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 Opportunities:
 Bottled water consumption growth: Consumption of bottled water is expected to grow both in
US and the rest of the world.
 Increasing demand for healthy food and beverages: Due to many programs to fight obesity,
demand for healthy food and beverages has increased drastically. The Coca Cola Company has
an opportunity to further expand its product range with drinks that have low amount of sugar
and calories.
 Growing beverages consumption in emerging markets: Consumption of soft drinks is still
significantly growing in emerging markets, especially BRIC countries, where Coca Cola could
increase and maintain its beverages market share.
 Growth through acquisitions: Coca Cola will find it hard to keep current growth levels and will
find it hard to penetrate new markets with its existing product portfolio. All this can be done
more easily through acquiring other companies.

 Threats:

 Changes in Consumer Tastes: Consumers around the world become more health
conscious and reduce their consumption of carbonated drinks, drinks that have large amounts
of sugar, calories and fat. This is the most serious threat as Coca Cola is mainly serving
carbonated drinks.
 Water Scarcity: Water is becoming scarcer around the world and increases both in cost and
criticism for Coca Cola over the large amounts of water used in production.
 Strong Dollar: More than 60% of The Coca Cola Company income is from outside US. Due to
strong dollar performance against other currencies firm’s overall income may fall.
 Legal Requirements to Disclose Negative Information on Product Labels: Some Coca Cola’s
carbonated drinks have adverse health consequences. For this reason, many governments
consider to pass legislation that requires disclosing such information on product labels.
Products containing such information may be perceived negatively and lose its customers.

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 Decreasing Gross Profit and Net Profit Margins: Coca Cola’s gross profit and net profit margin
was decreasing over the past few years and may continue to decrease due to higher water and
other raw material costs.
 Competition from PepsiCo. : PepsiCo is fiercely competing with Coca Cola over market share
in BRIC countries, especially India.
 Saturated Carbonated Drinks Market: The business significantly relies on the carbonated drinks
sales, which is a threat for the Coca Cola as the market of carbonated drinks is not growing or
even declining in the world.

 Conclusion

After thorough research, we come to the conclusion that the marketing strategy of Coca Cola is
working for them and the product is gaining popularity among youth day by day.
References:

Reference:

Text book: Management, Stephen P Robbins & Mary Coulter. Prentice- Hall of India
(10th edition).

 http://www.coca-colacompany.com/
 http://en.wikipedia.org/wiki/The_Coca-Cola_Company
 http://ivythesis.typepad.com/term_paper_topics/2009/12/pestle-analysis-on-
cocacola.html

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 http://annasurname.hubpages.com/hub/PEST-Analysis-Coca-Cola
 http://smallbecomesgiant.wordpress.com/2013/04/04/pest-analysis-of-coca-
colacompany/
 http://www.strategicmanagementinsight.com/swot-analyses/coca-cola-
swotanalysis.html

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