INSTITUTE OF COMMERCIAL MANAGEMENT (ICM)

Contemporary Strategic Management

Coursework

Name Sultan ICM ID Number

Muhammad

Shoaib

00000

Date: Module Code: Coursework Leader: Semester: Year:

25.02.2011

SHABAZ KHAN March 2012

COCA COLA
AND ITS MARKETING STRETEGIES IN PAKISTAN

Contents
INSTITUTE OF COMMERCIAL MANAGEMENT (ICM)........................................................1 Contemporary Strategic Management ........................................................................1 Coursework .................................................................................................................1 Contents............................................................................................................................3

Introduction Of Marketing Strategy: Developing a marketing strategy is vital for any business. Without which, the hard work to attract the customers are probably to be haphazard and unproductive. The focus of any enterprise`s approach should be to make sure that their products and services encounter their customers' needs and that they help to develop long-term and lucrative relationships with those customers. To stay competitive, firm needs to keep the offerings constantly fresh and new i.e. has to be pioneering and different from others. The company needs to keep up with the existing inclinations in the market, any emerging technologies and changes or improvements related to their existing products.. Any enterprise working in the market always focuses on the consumers demand as they are the kings of the market and the products end users. Once the firm has created and implemented the strategy, they should monitor its effectiveness and make any adjustments required to maintain its success. Marketing Strategy is a thus a set of specific ideas and actions that outline and guide decisions on the best or chosen way to create, distribute, promote, and price a product or service (manage the marketing mix variables). Thus to be more successful and to increases the product width and line and also to increase the targeted customers companies need to identify their strategies and along with identification a great execution is also required.

Fig1. Marketing Strategy Process Thus Marketing strategy includes the ways to face and create a healthy competition for the rivals, use the latest technology and satisfy the needs of the customers so that the end users i.e. the consumers always prefer the product which helps the company to optimize the profit of the organisation. Fig 1 illustrates the simplified process of marketing strategy.

Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. coco colas beginning in Pakistan relates to the year 1950 when it was introduced in Pakistan for very first time since then it, operated in Pakistan as franchise and become market leader as there was no competition of coca cola. And it leaded the market for 37 year but then its share yielded to the fierce competition with Pepsi cola, another US based beverage Company who started operation in Pakistan in 1960. In 1960, coca cola operating in Pakistan as multinational and took over all franchise business prevailing since its beginning. Cocacola Pakistan admits that currently the market share of coca-cola is 36% which is very low as compared to Pepsi that stands at 54%. Coca-cola is hopeful that the above mentioned problems if resolved would help them come back into the business but it would take some time. The company has still a substantial growth rate in the country i.e. 25%. flexible and willing to change to satisfy consumers needs, has enabled Coca-Cola to exploit the economies of scale that was gained by its global marketing and at the same time making its products appeal to local taste, which these have earned the company an enormous profits quarterly.

Now, the estimated brand equity of Coca-Cola is $84billion, market share of more than 50 percent in beverage industry globally and about 70 percent of its income comes from countries outside United States. Every 10 seconds, 126,000 people in the whole world choose to reach out for one of The Coca-Cola Company brands, and it is the companys mission to make that choice exciting and satisfying, every single time.

Not only to make great drinks, Coca-Cola is also determined to contribute to communities around the world through its commitments to education, health, wellness, and diversity and consistently shaping its business decisions to improve the quality of life in the communities in which the company do business. $150USmnCoca-Cola Beverages Pakistan Limited (CCBPL) was a 92% subsidiary of US soft drinks behemoth The Coca-Cola Company until June 2008, when half of its shares were acquired by Turkish Coca-Cola bottler Coca-Cola Icecap (CCI). Coca-Cola entered Pakistan in 1996 and operates 11 bottling plants in the country out of which it distributes Coca-Cola, Sprite and Fanta and a small, but growing non-carbonated beverage portfolio. Coca-Cola controls an estimated 36% of the Pakistani soft drinks market and is the sector's leading player, ahead of PepsiCo (estimated market share 54%). 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 worlds most recognizable and widely sold commercial brands. Coke's major rival is Pepsi. The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan and Lahore. The remaining two plants, independently owned, are in Rawalpindi and Peshawar. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan employs 1,800 people working constantly for the company. During the last two years, The Coca-Cola Company in Pakistan has invested over $130 million (U.S) and coke has successfully provided 51 years of dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firm has been continuously changing its slogans and thats a very creative idea to get the attention Of the customers.