Coca Cola Beverages Ltd

Coca Cola is a carbonated soft drink sold in the stores, restaurants, and vending
machines of more than 200 countries.[1] It is produced by The Coca-Cola Company
of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of
The Coca-Cola Company in the United States since March 27, 1944). Originally intended
as a patent medicine when it was invented in the late 19th century by John Pemberton,
Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics
led Coke to its dominance of the world soft-drink market throughout the 20th century.

Type: FMCG (soft drink)

Manufacturer: The Coca Cola Company
Country of origin: United States
Introduced: 1986
Brands: 400
Distribution: 312 Countries

History

Coca Cola syrup was created by pharmacist Dr Jon Styth Pemberton on May 8, 1886. it
was sold for five cents for a glass at the largest drug store in Atlanta. Coca Cola created
the unique logo that had been the trademark ever since. By May 29, 1886, the Coca Cola
appeared first time in the ad of Atlanta Journal on the medicine page. By June of1887, the
Coca-Cola trademark had been patented through the U. S. Patent Office and the product
was gaining wider distribution. In189 1, G. Candler, an Atlanta businessman, purchased
the rights to the product and formed the corporation "The Coca-Cola Company”.
The Company’s operating structure includes the following operating segments, the first
five of which are also sometimes referred to as strategic business units:

- North America
- Africa
- Asia
- Europe, Eurasia and Middle East
- Latin America

Mission

Everything they do is inspired by their long-lasting Mission

- To Refresh the World
- To Inspire Moments of Optimism
- To Create Value and Make a Difference
Vision

To achieve sustainable growth, they have established a Vision with clear

goals:
- People
- Planet
- Portfolio
- Profit

Growth Era

1886 : Atlanta pharmacist John Pemberton invents the Coca-Cola formula.

1891 : Atlanta businessman Asa G. Chandler buys the company for $2,300.
1915:The distinctly shaped Coca-Cola bottle was introduced.
1919:Coca-Cola was sold to a group of investors for $25 million.
1923: Robert W. Woodruff becomes Company’s President.
1961:Sprite was introduced.
1963:Company introduces diet cola.
1981: Roberto Goizueta becomes CEO of Coca Cola 1982:Diet Coke was
introduced.
1985:New Coke replaces original Coca-Cola formula
1988:Coca-Cola opens a plant in the Soviet Union (now Russia).
2000 : Mr. Doug Daft becomes CEO.
2001:Diet Lemon Coke is introduced.
2002:Company launches Vanilla Coke.
2005 : Coca-Cola Zero
2006:Coca-Cola Black Cherry Vanilla (2006)
2006:Diet Coca-Cola Black Cherry Vanilla (2006)
2007:Diet Coke Plus (2007)
2007 : Coca-Cola Orange (2007)
Bottler’s Agreements and Distribution Agreements

Separate contracts (‘‘Bottler’s Agreements’’) exist between our Company and each of its
bottlers regarding the manufacture and sale of soft drinks. Subject to specified terms and
conditions and certain variations, the Bottler’s Agreements generally authorize the bottler
to prepare particular designated Company Trademark Beverages, to package the same in
particular authorized containers, and to distribute and sell the same in (but generally only
in) an identified territory. The bottler is obligated to purchase its entire requirement of
concentrates or syrups for the designated Company Trademark Beverages from the
Company or Companyauthorized suppliers. We typically agree to refrain from selling or
distributing or from authorizing third parties to sell or distribute the designated Company
Trademark Beverages throughout the identified territory in the particular authorized
containers; however, we typically reserve for ourselves or our designee the right (1) to
prepare and package such beverages in such containers in the territory for sale outside the
territory and (2) to prepare, package, distribute and sell such beverages in the territory in
any other manner or form. Territorial restrictions on bottlers vary in some cases in
accordance with local law. The Bottler’s Agreements between us and our authorized
bottlers in the United States differ in certain respects from those in the other countries in
which Company Trademark Beverages are sold.

As further discussed below, the principal differences involve the duration of the
agreements; the inclusion or exclusion of canned beverage production rights; the
inclusion or exclusion of authorizations to manufacture and distribute fountain syrups; in
some cases, the degree of flexibility on the part of the Company to determine the pricing
of syrups and concentrates; and the extent, if any, of the Company’s obligation to provide
marketing support.

Outside the United States

The Bottler’s Agreements between us and our authorized bottlers outside the United
States generally are of stated duration, subject in some cases to possible extensions or
renewals of the term of the contract. Generally, these contracts are subject to termination
by the Company following the occurrence of certain designated events. These events
include defined events of default and certain changes in ownership or control of the
bottler. In certain parts of the world outside the United States, we have not granted
comprehensive beverage production rights to the bottlers. In such instances, we or our
designees typically sell canned (or in some cases
bottled) Company Trademark Beverages to the bottlers for sale and distribution
throughout the designated territory under distribution agreements, often on a non-
exclusive basis. A majority of the Bottler’s Agreements in force between us and bottlers
outside the United States authorize the bottler to manufacture and distribute
fountain syrups, usually on a non-exclusive basis. Our Company generally has complete
flexibility to determine the price and other terms of sale of the concentrates and syrups
we sell to bottlers outside the United States. In some instances, however, we have
agreed or may in the future agree with the bottler with respect to concentrate pricing on a
prospective basis for specified time periods. Outside the United States, in most cases we
have no obligation to provide marketing support to the bottlers. Nevertheless, we may, in
our discretion, contribute towards bottler expenditures for advertising and marketing. We
may also elect to undertake independent or cooperative advertising and marketing
activities.

Pakistan Entry

In 1950s Coca cola started its operations in Pakistan. In 1996, the coca cola itself took
over business operations in Pakistan & setup its 1st production plant in Karachi. Now
there are 6 production units and 11 distribution units working in Pakistan providing
employment to more than 6000 people.

Production Plants

- Lahore Plant
- Gujranwala Plant
- Rahim yar khan Plant
- Rawalpindi Plant
- Karachi Plant
- Hyderabad Plant
- Peshawar Plant
- Multan Plant

Coca Cola Beverages Ltd Pakistan, Multan Branch

As I have done my internship in Coca Cola Beverages multan branch, so what I have
observed while working with a bunch of extra-ordinary talented workers, that Coca Cola
is a company who is the market leader in the universe in beverage product category. So
their prime motive is to serve the whole world, “touch the untouched”. In Multan, the
franchise unit was established in 1964, with the wish or struggle to make it easy to
distribute Coke in different areas and to make it No. 1 in the market, and with the hope
that it will play a great role in increasing the production and to make it popular in all over
the country.

Distribution Strategy

Coca Cola works on the principle of “serve planet”. In the whole world, Coca Cola uses
its intensive distribution strategy to get as many consumers as they can. But when they
came Pakistan, they were welcomed by Pepsi who was the market leader in Pakistan in
shares and demand as well. Coke started its operations with
I remained working in all the departments to see the coordination and collaboration of
their work assignments. Out of these 11 territories 8 territories have been purchased by
Coca-Cola international now in Pakistan. Most of the territories in India and Pakistan
now have been operated by Coca-Cola International itself.
Area covered by Multan Beverages

- Multan City
- Pkapattan
- Sahiwal
- Dera Ghazi Khan
- Rajan Pur and Ziarat in Balochistan

Multan Region

Mr. Ali Navaiz is the Sales Manager of the Multan. He is responsible for the sale in
Multan Region. The whole Multan region is further divided into to areas these are named
as Multan Base and Multan District. The whole Multan city including old city is the part
of Multan Base. While Multan District consists of all neighbouring areas of Multan city
e.g. Bodla, Makhdoom Rashid, Muzaffar Garh etc. For the co-ordination of Mr. Ali
Navaiz there are two Area Sales Managers for each area of Multan Region. These are
Imran Hashmi for Multan Base and Mr. Ali Aamir for Multan District. And these both
have number of Market Development Officers (MDO’s) for the development of the
market.

Basically for sales purposes the whole territory of Multan region and other regions is
divided into many small parts and for each part we have a separate distributor i.e. for
Multan Cantt we have Sardar Qayyum & Co. and for M.D.A. Chowk we have Niazi
Traders as distributors. For every two distributors normally the company offers the
services of one Marketing Development Officer. For that company get two types of
benefits

 With the help of these MDO’s company come to know the actual situation of the
market from the mouth of their own employees.

 And company provide assistance to the distributor for achieving the sales targets.

Sahiwal Region

Mr. Kaleem Bukhari is Sales Manager of that region. He is also a graduate from our
department. He completed his studies from the department in 1989. He is really a co-
operative man. During my stay at Coca-Cola he really helps me in understanding the
culture of the organization. Which remains helpful for me for the period.

Sahiwal Region covers the area of Sahiwal City, Jahanian, Khanewal etc. As in Multan
region there are two Area Sales Managers for the co-ordination of Regional Sales
Manager similarly there are also two Area Sales Manager in Sahiwal. According to the
sale Sahiwal Region is best among the whole territory of Multan Plant. These two ASM’s
are Mr. Mubeen and Mr. Ejaz Hussain. They are hard working people. Due to their hard
work distributors of that region are able to achieve the sale targets. The remain
departmental structure of the Sahiwal Region is exactly similar to that of Multan Region.

Dera Ghazi Khan Region

The Regional Sales Manager of Dera Ghazi Khan Region is Mr. Muhammad Jamshed.
He is really a simple man. During my stay at Coca-Cola Multan he always co-operate me
like an elder brother. The D.G. Khan Region covered the area from Muzaffar Garh to
Raja Pur and Ziarat is also in the territory of D.G. Khan. As in other two regions D.G.
Khan has also two Area Sales Managers for the co-ordination of Regional Sales Manager.
These are Hamad-EL-Samee and Azhar Ansari.

Mission of CCBPL in Multan

At the time of equisition the market share of Multan Plant as compared to Pepsi Cola is
very small. i.e. only 12% to 15% of the total market. Mission of the plant is to be the
market leader.

Changes in Multan Plant

After the purchase of plants in Pakistan coca-cola beverages fire almost all of the
employees working in the old setups. And they rehired some of these and other personnel
on the basis of their competencies they have from other organizations of beverages field
and experienced people from other multinational organizations e.g. Liver Brothers etc.

Coca-Cola Beverages Pakistan Limited made number of changes in the Multan Plant and
in Other plants. Some of these changes are structural in nature and some are related to
operations of the system.

Now instead of Managing Director of organization, Business Operations Manager

(BOM) is the head of organization. And Mr. Aamir Altaf Qureshi is appointed as the
BOM in Multan.

They made number of changes in Production system, Marketing system etc. for the
improvement in quality. They purchased new fool proof bottles washing system in which
almost every bottle remains in the process for one and a half hour. That step increased the
quality of the product and shows the concern of the company for the society and
consumers in Pakistan.
Stock Keeping Unit (in Pakistan)

Weight= 250ml 500ml 1000ml 1500ml 2250ml

Category

Coca Cola
Coke Available Available Available Available Available
Diet Coke N/A Available N/A Available N/A
Sprite
Sprite Available Available Available Available Available
Sprite 3G Available N/A N/A Available N/A
Sprite Zero N/A Available N/A Available N/A
Fanta
Fanta Ornge Available Available Available Available Available
Fanta Mngo N/A N/A N/A Available N/A
Splash
Splash Appl. Available N/A N/A N/A N/A
Splash Mng Available N/A N/A N/A N/A
Splash Lemo Available N/A N/A N/A N/A
Pulpy
Pulpy Ornge N/A Available Available N/A N/A
Pure Water
Kinley N/A Available Avaiable Available Available

Distribution Channels
As Coca Cola is a beverage industry and lies is the category of fast moving consumer
goods, so the traditional supply chain is followed by them. Coca Cola company uses all
means of transporting their products to customers, from retailers, distributors and
agencies. Two channels which are commonly preferred to distribute the products to the
end consumers are:

1. Direct Channel Distribution

2. Indirect Channel Distribution
Retailers (MDOS)

- Also known as Direct Channel distribution

For retail distribution, Coca Cola Company hires employees designated as Market
Development Officers “MDO”. These employees visit different markets and try to make
new Coke points or to convert a competitor’s point into Coke point. They usually go to
the shop keeper or customer and ask about the competitor’s discount offers and sales
targets. Then they offer their respective product discounts and sales targets and try to
convert the existing Pepsi point or to create a new Coke point. They supply their products
in shops by using their own transports. They have almost 450 vehicles to supply their
bottles. In this type of selling company have more profit margin.

Distributors/Agencies

- Also known as Indirect Channel distribution

For distributor distribution, Coca Cola Company has their Sales & Marketing Managers
contact with an existing distributor who is distributing products of diversified categories
or a new distributor who is going to distribute solely Coca Cola‘s products in the market.
Coke uses this channel to cover maximum territories which ma be untouched if they only
use their personal transport for the distribution of their products. Margins are given to
distributors and they are allocated with sales targets whether semi annually or quarterly
basis. These distributors are registered distributors who are the specialist their
distribution functioning.

Supply Chain Problem

The problem Coca Cola company is facing is the distribution of their products throughout
Pakistan. They have less distribution network as compared with Pepsi. There may be
several problems for this fault but what I found there in the market, is the wrong
allocation of the territories assigned to MDO, distributors and agencies.