COKE

MARKETING MIX

SEC (F)

UNIVERSITY OF CENTRAL PUNJAB PROJECT ON coca-cola

SUBMITTED TO: PROF. SHEHZAD ALAM SUBMITTED BY:

GROUP A
M.USMAN NAAZIR BILAL EJAZ JUNAID INAM NAJAM-US-SEHAR ANAM KALEEM FARYAL SAMI L1F09MBAM2169 L1F09MBAM2147 L1F09MBAM0097 L1F09MBAM2090 L1F09MBAM2195 L1F09MBAM2118

DATE OF SUBMISSION:

19/01/2010
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TABLE OF CONTENTS

COKE INTRODUCTION.4 COKE HISTORY.4 COKES MISSION...5 COKES VISION...5 PLANTS.6 TARGET MARKET7 MARKETING MIX..8 PRODUCT..9 PRICE..16 PROMOTION.19 PLACEMENT..21 S.W.O.T ANALYSIS..24 STRENGTHS24 WEAKNESSES25 OPPORTUNITIES.26 THREATS..27 CONCLUSION..28 RECOMMANDATION.29 BIBLIOGRAPHY..30

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INTRODUCTION:

The Coca Cola Company is the worlds largest company, largest manufacturers, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world and is one of the largest corporations (in the U.S.). Coca Cola is invented by pharmacist JOHN STITH PEMBERTON in May, 1886. The soft drink was first sold to the public at soda fountain in Jacobs pharmacy in Atlanta on May8, 1886. In Pakistan, Coca Cola Beverages Pakistan limited (CCBPL) is serving the nation after the 9/11 situation when all foreign investors take their shares back.

HISTORY:

The Coca Cola was originally established as the J.S. Pemberton Medicine Company. The company was formed to sell three main products: Pembertons French wine Cola (later known as Coca Cola), Pembertons Indian Queen Hair Dye and Pembertons Globe Flower cough syrup. The Coca-Cola is headquartered in Atlanta, Georgia. Its stock is listed o the NYSE and is part of DJIA and S&P 500. Its current chairman and CEO is Mukhtar Akhtar. CCBPL was incorporated in 1953 and is based in Karachi Pakistan.

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However with growing competition and unstable economic and political situation in Pakistan the company suffered heavy losses so much so that Coca Cola almost reached to the point of extinction from market. Hence the company decided to cancel all franchises to bottle Coke in Pakistan. Coca Cola International decided to replant in Pakistan under name and style of Coca Cola Beverages Pakistan Limited in 1996 and established its first plant in Karachi in 1998.

MISSION STATEMENT:
TO PROVIDE COCA-COLA AT ARMS LENGTH

VISION:
Be the number one Beverages Company of Pakistan and to be profitable. Manufacturing and Marketing leading brands in National and International markets. Making move towards leadership.

SLOGANS:
The current slogan of Coca Cola is:

OPEN HAPPINESS
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GOALS:

ALL CCBPL plants setup their own goals to achieve the objective. The company goal is TO INCREASE SALES VOLUME AND GAIN MARKET LEADERSHIP IN PAKISTAN.

PLANTS:
Today CCBPL is operated directly under the supervision of the Coca Cola international based in Atlanta Georgia state _ USA. It owns 8 plants all around in Pakistan.

KARACHI. LAHORE. GUJRANWALA. RAWALPINDI. PESHAWAR. HYDERABAD. FAISALABAD. RAHIM YAR KHAN.

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SHARED VALUES:
We value and respect our employees and customers. We communicate openly. We are committed toward winning.

TARGET MARKET:
The target market of Coke is general public. They hit the people from teenagers to the old age and use the impulse hitting techniques.

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MARKETING MIX
(THE 4 PS OF MARKETING MIX)

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PRODUCT
Product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. Coca Cola is the worlds popular beverages, consumer buy Coca Cola products because of their high standards and high quality. This is one of the reasons of its being popular all over the world. BRAND NAME: A commodity, service, or process having a trade name.

COKE:
Carbonated drink and most popular soft drink. It is well known registered trademarks. Its logo consists of red and white color. The word Coca Cola is written in white color with a red background. It has a same logo and brand name all over the world because it is multi-national company. Coca Cola export co. is spending million of rupees to promote Coca Cola products in Pakistan. It has more than around 200 brand world Wide.
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TEMPERATURE: 4 degree centigrade cold temperature of Coca Colas soft dinks tastes great. If the soft drinks are not cold, they taste like a medicine (SYRUP). SHARES: 42% of shares are hold by Pakistan of Coca Cola. INDICATIONS: It satisfies thirst and is refreshing. Offering Coke to guests is a tradition. TAGLINES OF COKE: 2007: 2008: 2009: THUNDA MATLAB COCA COLA. AJA JASHAN MANA LE. OPEN HAPPINESS.

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PACKING:
Packing is important factor because it helps the business to design promotional schemes so that they can generate more revenues and profits. Coca Cola focuses on their products packing. They have different technical methods of packing so that their product can be protected during transportation. Coca Cola Pakistan Packages its beverages into: 250ml bottle. Disposable bottles. Canes/ Tins. Half liter bottle (500 ml). 1- Liter. 1.5 liter. 2.5ml (JUMBO).

INGREDIENTS: Carbonated Water. Sugar (sucrose of fructose depending on country of origin). Caffeine. Phosphoric acid V. caramel (E150d). Natural flavoring.

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A cane of coke (12fl. Ounces /355ml) has 1. 2. 3. 4. 5. 39 grams of Carbohydrates (all from sugar). 50mg of Sodium 0 gram fats. 0 grams Potassium. 140 calories.

LAUNCHING NEW PRODUCTS: Coca Cola launches new products like minute maid, splash and pulpy orange as well as drinking water so that their company can earn more profits. Minute maid is also most popular and expensive brand because of its high standard, high quality and unbeatable taste. An additional product the Coke is trying to launch against energy drink REDBULL, a product called BURN.
OTHER PRODUCTS: There are 10 major selling brands in Pakistan.

1. Coke

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2. Coke Diet

3. Sprite

4. Sprite 3G

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5. Sprite Zero

6. Fanta Orange

7.Fanta Citrus

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8.Minute Maid Splash

9.Minute Maid Pulpy Orange

10.Kinley Water

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PRICING
PRICE: Which determines the Value of Good is called Price. PRICE STRATEGY: Coke use the penetrating strategy to face the competition because Pepsi having most of the market shares. The company has not yet changed its pricing strategy. COST: Cost of production does not matter but the affordability. GEOGRAPHICAL VARIATIONS: There are no variations of prices on geographical basis. They are fixed in Pakistan. CASH DISCOUNTS: Coke never involved in Cash discount Schemes. SPECIAL OFFER:

Rs.10 discount on JUMBO and 1.5 liter bottles in Ramadan. Rs.5 discount on half liter in Ramadan.

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COMPETITORS PRICES: The prices of the competitors are same such as PEPSI and RC Cola and The prices of GOURMET COLA are relatively low.

Shares of Coke and its Competitors

50 45 40 35 30 25 20 15 10 5 0 PEPSI COKE OTHERS

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RETAIL PRICES:

QUANTITY (ML) 250(REGULAR) 250 ( NON RETURNABLE) 500 HALF LITER (330) CANE (1500) PET (2250) JUMBO PACK (500) KINLEY WATER (1500) KINLEY WATER MINUTE MAID PULPY ORANGE

CONSUMER PRICES (RUPEES) 13 20 25 30 65 80 15 25 45

GOVERNMENT: Government has no any hand in the price policies of the company but company pays high amount of taxes on their products.

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PROMOTION

COKE TARGET MARKET: Coke commercials based on young generation 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 them as a Co-target market.

CHANNELS ADOPTED FOR PROMOTION: Segmentation is a channel on the basis of needs. Coke adopt direct channel for the distribution of the product.

FACILITATING THE PRODUCT BY INFRASTRUCTURE: For providing their product in good manner company has provided infrastructure facilities these include:

Vizzi coolers Freezers Display racks Gondolas Free empty bottles and shells for bottles

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ADVERTISMENT: Coca Cola Company uses different mediums for the advertisement of their product: Print Media Pos (point of sale) material T.V commercials Billboards & Hoardings

PROMOTIONAL STARTEGY: They promote their product as it triggers the impulse rate when it cooled down at 4C. NATURE OF MARKETING FOR PRODUCT: Nature for marketing for product is that it will sale out through impulse. DISTRIBUTION ON OUTLETS: Cloj-k method is used for the distribution of product on outlets which ensures the availability of all products of coke on outlet. CUSTOMER FEEDBACK: Coke provides quality services for the better response from the customers. COKE STUDIO: They introduced their own studio to promote their product and music in the industry.
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PLACEMENT

Placement means distribute the products among all channels. TYPES OF CHANNELS: Coke has two channels of distribution i.e.: DIRECT CHANNEL INDIRECT CHANNEL DIRECT CHANNEL: In direct channel they distribute their products in markets by using their own transports. INDIRECT CHANNEL: It is very difficult for them to cover all area of Pakistan. So they have so many whole sellers and agencies to assure their customers for the availability of Coca Cola products in all over the country. DISTIRIBUTION PROCESS:
FINAL CONSUMERS

COMPANY

RETAILERS

WHOLE SELLERS

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MERCHANDISE OFFICER: Coke has merchandise officers who have the knowledge of inventory, which is load or unload on truck while distribution. COCA COLA EXPORT: This company concentrates on advertisement to create impulse and they are on developing brand. COCA COLA BEVERAGES PAKISTAN LTD: CCBPL has only three purposes PRODUCTION DISTRIBUTION SALES They concentrate on fulfilling the needs of the customers. TOTAL CHANNELS: There are around 26 channels where products are distributed. i.e.: Vendors Bakeries Pan shops Restaurants Caf General stores Departmental stores Super stores etc.

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WAREHOUSING: Coke provides the facility of warehouses to store the products for distribution purpose. There are two warehouses of Coke in Lahore. i.e.: Industrial Area (Township) Saggian INVENTORY: They maintain their inventory distribution according to the FIRST IN FIRST OUT METHOD (FIFO). Due to this the benefit is that regular bottles expire after nine months and Jumbo bottles after six months. DISTRIBUTION CLASSIFICATION: They distribute products according to income levels of people and on need basis and high, middle and low society basis.

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S.W.O.T ANALYSIS

STRENGTHS:
QUALITY: Coca-Cola Company management never compromise on quality. The quality of Coke is better than other similar beverages products. Coke has a top quality control department for the quality check. EASY AVAILABILITY: Coke is easily available from the huge Departmental Stores to the smallest retail shops all around the Pakistan. FINANCIAL POSITION: Coke is financially strong as compared to its competitors. Like Gourmet, Shandy and Amrat Cola etc. EXPERIENCE: Coke has an Experience of marketing in all over the world as well as in Pakistan since 1953. QUALIFIED STAFF: Coke has a qualified and trained staff.

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COMPETITIVE ADVANTAGE: The Quality and services provided by Coke is their competitive or differential advantage. INNOVATION: Coke launched numerous products in a short span of time. such as (minute maid pulpy orange),(splash)&(sprite 3G).

WEAKNESSES
INCREASE IN PRICES: The price of coke products is more than other products prices prevailing in the market. LOW MARKET SHARE: Coke has low market share as compare to its competitor PEPSI. NO LEADERSHIP: Pepsi is the market leader. Coke lost its leadership in 1987. LESS BRAND IN PAKISTAN: Coke has only ten brands in Pakistan and 200 brands in all over the World. HIGH PRICES OF NEW BRANDS: The prices of new products of Coke are very expensive. Low Income groups can not purchase these brands.
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OPPORTUNITIES

NEVER ENDING DEMAND: Coke has never ending demand in the market of Pakistan. They can increase the demand of their products by reducing the prices and by giving discounts. BRANDS: Coke can Increase the brands in Pakistan. INCREASE MARKET SHARES: Coke can increase its market share as compared to market shares of PEPSI. PLANTS AND WAREHOUSES: Coke can increase plants and warehouses also in Rural Areas. ATTAIN LEADERSHIP: Coke can attain leadership from Pepsi.

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THREATS

HIGH COMPETITION: There is high competition of coke with Pepsi as Pepsi is key competitor of Coke. SMALLER PLAYERS: Small players like Gourmet and Shandy Cola covers 10% of market shares. So thats why they are threats for Coca Cola. MULTINATIONAL SUBSITUTES: Multinational substitutes are also the threats for Coca Cola like REDBULL, RANI etc. Taxes: The Coca Cola management is not happy with Govt. taxes. It pays high tax but less than Cigarettes companies.

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CONCLUSION

We have concluded from this detailed report that despite the fact Coca Cola currently occupies the market leadership position overall and from the companys condition. It is expected that company will sustain its good position in future as well. In Pakistan as compared to Pepsi, Coca Cola has less number of consumers as Pepsis market share in Pakistan is approximately 48% where as Coke market share about 42% and remaining shares of other drinks have the conclusion is that Coke is doing efforts to enhance factors such as relationship marketing, Innovation and technology. Especially in Pakistan to attain market leader position in this region. Coke is trying to expand its distribution channels in all over the Pakistan. Thats why coke products are available in super markets as well as in small retail markets.

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RECOMMENDATIONS
After completing our project, we have come up with following recommendations for the Coca Cola beverages Pakistan Limited, which are as follows:

Coke can extend their portfolio in Pakistan by launching more brands. According to the survey conducted by International firms, Pakistani old age people like less sweet Cola drinks. So for this Coke should think about bringing new diet flavors in the market to fulfill the local needs. Marketing teams should try to increase the availability of Coke in Rural areas. Coca Cola should think about producing Canes locally as well because currently Coke canes are imported and sold at high prices. Coke should reduce the prices of new products like MINUTE MAID PULPY ORANGE.

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BIBLIOGRAPHY
HTTP://www.google.com/coke http://www.wikipedia.com http://www.coke.com http://www.thecocacolacompany.com

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