Professional Documents
Culture Documents
Making Final of Strategic Management Cocacola
Making Final of Strategic Management Cocacola
Making Final of Strategic Management Cocacola
MANAGEMENT OF COCACOLA
Page
1
TABLE OF CONTENTS
CONTENTS
1.
2.
3.
4.
Acknowledgement.
Mission statement
Introduction.
Coca Cola.
a. Coca Cola International.
b. History.
5. Management.
6. Market share.
9. Products.
10. Strategic planning.
11. Bottlers owned by Coca cola
12. Coca Cola Pakistan.
13. Major
Competitors a.
Pepsi
b. History.
Products. Methodology
14. Some basic information regarding marketing of coke
a. Target market:
b. Major segments:
c. Factors effecting sales:
d. Major competitors:
e. Strategies of quality:
f. Threats from competitors:
g. Targets that would like to attain:
h. Expanding target market
i. Threats and opportunities for price: (SWOT)
j. Strategies of getting goals i.e. high profits:
k. Marketing strategy:
15. Marketing strategies
16. Pest analysis
ANNEXTURE: WEBLIOGRAPHY AND BIBLIOGRAPHY
Page
2
Page
3
team
responsibili ty
of
Johnston
assumed
for
managing
the Company,
and
Page
4
Page
5
MANAGEMENT:
The hierarchy of Coca Cola Company is as follows.
Chairman
Board of
governors
Executive Vice
Presidents
Senior Vice
Presidents
Vice
Presidents
MARKET SHARE:
RE
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest
market share. This company controls about 59% of the world market.
Page
6
TABLE
Unit case growth
10 year
compound annual
growth
5-year compound
annual growth
2001 annual
growth
Nonalcoholic
drink
2002
All commercial
Beverages
2002
Compan
y
Industry
Compan
y
Industry
Compan
y
Industry
Company
share
Compan
y share
Compan
y per
capita
Income
6%
5%
5%
5%
4%
4%
18%
9%
70
This shows that the market of the company is geographically vast and it is controlling it with
great success. In 2002, the company grew their carbonated soft-drink business by nearly
250 million unit cases and generated record volumes. Because carbonated soft drinks are
the largest growth segment within the nonalcoholic ready-to-drink beverage category
measured by volume, that is why they are focusing more on this and they are continually
increasing the pace because they know that accelerating this pace is crucial to their future
success. Thus they are increasing their market day by day.
Page
7
PRODUCTS:
There are different brands of the Coca Cola Company, which are currently in use through
out 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.
Page
8
The commitment of the company is to devote resources to water only in markets where it
expects profitable growth. This strategy has paid dividends. The company has successfully
applied its approach to brands in several key markets, including Ciel in Mexico, Mori No
Mizudayori in Japan, Bonaqua in Russia and Kinley in India. Backed by a strong network of
bottling partners through out the United States, Dasani became the nation's fastest-growing
water brand. In Eurasia, the entire Turkuaz brand team worked together to launch Turkey's
first purified water brand. This year, Coca-Cola Company also successfully energized a
major piece of its beverage strategywater. By the end of 2001, its bottled water volume
exceeded 570 million unit cases, making it the second biggest contributor to the growth of
the company after carbonated soft drinks. Three of the water brands, Dasani, Ciel and
Bonaqua each achieved sales of over 100 million unit cases for the year.
In 2001and 2002, the company has also made good progress in coffees and teas.
Beverage Partners Worldwide, the renewed and strengthened marketing partnership with
Nestl S.A., began operations in 2001. This partnership combines Nestl's knowledge in
life science, research and development with the expertise of Coca Cola Company in brand
building and distribution.
At the same time, the company grew Georgia coffee in Japan by 3 percent through awardwinning marketing in a category that was flat for the year. Also in Japanwhere The CocaCola Company is the leader in the total tea category, the second-largest category in the
non-alcoholic ready-to-drink segmentit launched Marocha Green Tea. With sales of 46
million unit cases for the year, Marocha Green Tea is the fastest-growing product in the
fastest-growing category: green tea. The popularity of Marocha is also recognized by the
industry with a leading trade journal naming Marocha the most popular new food and
beverage product of the year.
Page
9
Page
10
Among the soft drinks Fanta and Sprite become successful along with the major brand
Coca Cola and Diet Coke. In key markets, the company has created new packaging sizes
to satisfy consumer demands.
Increasingly, Mexican families have lunch together at home. The average Mexican
household drinks two-and-a-half liters or more of soft drinks during that break, while a twoliter bottle was the largest available package. So the company introduced a convenient 2-
liter bottle to select regions, contributing to the sale of nearly 1.5 billion unit cases of CocaCola 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 CocaCola 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 resultdiet
Coke with lemoncontributed 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.
With brands such as Minute Maid, Hi-C, Simply Orange and Disney juices and juice
drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo in Africa.
This year, the company re-launched its global sports-drink business, investing in new
products, packaging, positioning and marketing. The results speak for themselves: its
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 2001.
The commitment of the company to packaging innovation also resulted in new initiatives for
our fountain business, a channel through which many consumers enjoy Coca-Cola. In the
United States, the company developed Fountain, a total beverage dispensing system that
is more flexible and more reliable. Two years of research resulted in a dispensing system
that provides exceptional beverage quality, easy to upgrade technology, brand and graphic
customization and improved reliability.
Page
11
STRATEGIC PLANNING
In the year 2002, the company had a great success, as the strategy worked which resulted
in making Coca Cola Company the worlds leading company. In 2001, company
accomplished the crust of its strategy as
Worldwide volume increased by 4 percent with strong international growth of 5
percent and clear signs that our North American business is growing solidly and
predictable.
Earnings per share grew by 82 percent, as we delivered on our commitment to
create volume growth while aggressively
Return on common equity grew from 23 percent in 2000 to 38 percent this
year.
Return on capital increased from 16 percent in 2000 to 27 percent in 2001.
The company has generated free cash flow of $3.1 billion, up from $2.8 billion in
2000, a clear indication of its underlying financial strength.
The strategy for the future of the company is very straightforward. The marketing strategy
for the year 2002 is as follows,
Accelerate carbonated soft-drink growth, led by Coca-Cola.
Selectively broaden the family of beverage brands to drive profitable growth.
Grow system profitability and capability together with our bottling partners.
Serve customers with creativity and consistency to generate growth across all
channels.
Direct investments to highest potential areas across markets.
Drive efficiency and cost-effectiveness everywhere.
MAJOR COMPETITOR
21
Page
12
PEPSI INTERNATIONAL
HISTORY
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27
billion and over 143,000 employees. The company consists of the snack businesses of
Frito-Lay North America and Frito-Lay International; the beverage businesses of PepsiCola North America, Gatorade/Tropicana North America and PepsiCo Beverages
International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat
cereals and other food products. PepsiCo brands are available in nearly 200 countries and
territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively
young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company,
including Gatorade, in 2001.would entertain the listener with the latest musical selections
rendered by violin or piano or both. The new name, Pepsi Cola, is derived from the two of
the principle ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At that
time, Bradhams advertising praises his drink as Exhilarating, invigorating, aids digestion.
1990-2002
The advertisement of the Pepsi changes to, You got the right one baby, Uh-Huh!.With the
extensive usage of the stars in the adds, the popularity of Pepsi increase. In 1992 PepsiCola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling
ready-to-drink tea brand in the United States. Outside the United States, Pepsi-Cola
Company's soft drink operations include the business of Seven-Up International. PepsiCola beverages are available in more than 190 countries and territories.
In Asia, they selected Lahore to make their regional office. This was done in 1970. This
regional office is monitoring all the operations carried out in South West Asia. As in
Pakistan, they only entered beverage industry. They have eleven bottlers covering whole
Pakistan. The plant operating here is Riaz Bottlers (Pvt) LTD. This plant was established at
Lahore in 1974. The total capacity of the plant is 30,000 cases per day. They have four
filling lines in the plant operating on the three shift bases. Each shift is of eight hours. They
have permanent work force of 750 people and they employee approximately 1000 people
more on temporary basis during summer season.
Page
13
Pepsis Products
Pepsi
Teem
Mirinda
Pepsi Max
Pepsi Lemon
Pepsi Blue
Mountain Dew
7up
The Coca-Cola Company began operating in Pakistan in 1953. Coca-Cola, Fanta and
Sprite are the brands in Pakistan. The Coca-Cola System in Pakistan operates through
eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited
(CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad,
Rahimyar 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. During
the last two years, The Coca-Cola System in Pakistan has invested over $130 million (U.S.)
1965
1972
2001
Page
15
PROMISE OF COKE
The basic proposition of our business is simple, solid and timeless. When we bring
refreshment, value, joy and fun to our stakeholders, then we successfully nurture and
protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation
to provide consistently attractive returns to the owners of our business.
TARGET MARKET
Cokes 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.
MAJOR SEGMENTS
Major segments are basically those people who take this drink daily and those areas where
the demands is higher then the other areas. 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.
And to get through with this difficulty there is need to increase the level of per capita
income of Pakistan because it is much lesser than the rest of the countries.
Competitors
Cokes major competitor is PEPSI and there is no hesitation to say this because every
one knows that and all the other cold drinks and water, coffee, tea are the competitors.
Weather
Weather is the third major factor in effecting the Cokes selling. This is underdeveloped
market so the cokes consumption in summers is 60% and in winters is 40%.
Page
17
MAJOR COMPETITORS
Consumers firstly decide that they are going to have a soft drink. Then they compete
brands with each other. Like they compete Coke with Pepsi and Sprite with 7up and
team .So the major competitor of Coke is Pepsi.
When they motivate to any other brand or on Coke its in instinct basically that based on
messages derive certain feelings.
But Coca Cola thinks in a different way, they believe that RC Cola, new coming AMRAT
Cola, and all juices, even they take water and tea as their competitors.
STRATEGIES OF QUALITY
After Micro and macro analysis Brand coke is primarily role
1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
Though these strategies there could be better understanding and better connection with the
public. These are the key consumption.
Page
18
Windfall Profit
Can be windfall profit. They are the extras profit. When the consumption the consumption is
on boom. So, there is different kind of profits.
Brand Differentiation
Now different companies have got different brand names. So, people can distinguish
between brands. Two major brands coke and Pepsi also have brand names.
Page
19
Pepsis Brand
Pepsis brand is basically is basically ME branded. They use the temperament of ME. In
contrast to Coke they believe on individual struggle.
Threats
There are much more threats in increasing prices. Because same problem of substitute. If
Coke increase the price lets say 1 rupee. Then people definitely wont go for coke. They
have the best substitute of Coke that is Pepsi. So these are the threats in increasing prices.
Coke will lose the margin of its profit and can face loss.
Page
20
Page
21
MARKETING STRATEGY
Our local marketing strategy enables Coke to listen to all the voices around the world
asking for beverages that span the entire spectrum of tastes and occasions. What people
want in a beverage is a reflection of who they are, where they live, how they work and play,
and how they relax and recharge. Whether you're a student in the United States enjoying a
refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice
drink, or a couple in Korea buying bottled water after a run together, we're there for you.
We are determined not only to make great drinks, but also to contribute to communities
around the world through our commitments to education, health, wellness, and diversity.
MARKET POSITIONING
Product Range
The total range of Coca Cola company in Pakistan includes:
Coke.
Sprite.
Fanta.
Diet Coke.
And company offers their products in different bottle sizes these includes:
SSRB
LRB
NRB
PET 1.5
CANS
Packing
Coca cola products are available in different packing
24 regular bottle shell
6 bottle pack for 1.5 pets
12 bottles in a pack for disposable bottle
24 cans in one pack.
Page
22
PRICE STRATEGY
Trade Promotion
Coca cola company gives incentives to middle men or retailers in way a that they offer
them free samples and free empty bottles, by this these retailers and middle man push their
product in the market. And thats why coca cola seen more in the market. And they have a
good sale in the market because according to the expert which product seen more in the
market that sells more.
Seen as sold
They do agreements with a shop keepers and stores to exclusive sale in that stores. These
stores are called as KEY accounts in their local language.
And coke also invest heavy budget on these stores and offers them free samples and free
bottles and some time cash incentives.
Page
23
PROMOTION STRATEGIES
Getting shelves
They gets or purchase shelves in big departmental stores and display their products in that
shelves in that style which show their product more clear and more attractive for the
consumers.
Sale Promotion
Company also do sponsorships with different college and schools cafes and sponsors their
sports events and other extra curriculum activities for getting market share.
UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and they offer
very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This
scheme is very much popular among children.
DISTRIBUTION CHANNELS
Coca Cola Company makes two types of selling
Direct selling
Indirect selling
Direct Selling
In direct selling 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.
Page
24
Indirect Selling
They have their whole sellers and agencies to cover all area. Because it is very difficult for
them to cover all area of Pakistan by their own so they have so many whole sellers and
agencies to assure their customers for availability of coca cola products.
ADVERTISEMENT
Coca cola company use different mediums
Print media
Pos material
Tv commercial
Billboards and holdings
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.
Page
25
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.
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.
Page
26
Coca-Cola Concerts
Abrar-ul-haqs 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-Colas 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-Colas
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.
Page
27
Page
28
Diet Coke
After the acquisition of the individual local franchise bottling facilities in 1996, the company
has successfully launched its first new product, diet coke, for the first time in almost 3
years. The was linked with three fashion shows as Diet Coke is related to fashion & fitness,
but the major hit was thematic fashion shows in restaurants, which are the key accounts of
the company as this has been never done before in Pakistan.
Page
29
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.
RECOMMENDATIONS
After completing our project we have concluded 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 Pakistani 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 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 liter
disposable bottle.
Page
30
Page
31
CONCLUSION:
Coca-Cola no doubt come the heart beat of Pakistanis. Coca-Cola is one of the leaders in
sponsoring the most important, thrilling events. E.g. Cricket matches, concerts and many
other social occasions. Event at the present they are organizing a Basant festival for which
they busily organizing stuff.
So
Jo chaho ho jaye
coca- cola enjoy
Page
32
WEBLIOGRAPHY AND
BIBLIOGRAPHY
http://isearch.babylon.com/?
s=web&babsrc=HP_iclro&q=marketing+management+author+michal+vaz+mcom&star
t=40
http://kimptonconsulting.com/services/business-plans.html?
gclid=CJ_vxbWt5LICFcp56wodvksAvA
http://www.planware.org/strategicplan.htm
http://www.thecoca-colacompany.com/ourcompany/index.html
http://deutch4macys.blogspot.in/2011/02/strategic-planning.html
1. Strategy Safari: A Guided Tour Through The Wilds of Strategic
Management by (Henry Mintzberg )
2. 13. Developing Business Strategies by David A. Aaker
Page
33