Professional Documents
Culture Documents
Minor Project 3rd Semester
Minor Project 3rd Semester
MARKETING STRATEGY
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Marketing Strategies Of
Coca Cola
PRESENETED TO:
Bhushan manchanda
PRESENTED BY:
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TABLE OF CONTENTS
CONTENTS
1. Acknowledgement.
2. Mission statement
3. Introduction.
4. Coca Cola.
a. Coca Cola International.
b. History.
5. Management.
6. Market share.
7. Financial report.
8. Dividends and Cash Plan.
9. Products.
10. Strategic planning.
11. Bottlers owned by Coca cola
12. Coca Cola Pakistan.
13. Major Competitors
a. Pepsi
b. History.
c. Financial assets.
• Market share.
• Financial report.
• 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:
j. Strategies of getting goals i.e. “high profits”:
k. Marketing strategy:
l. Expectations for the coming year:
m. How coke determine the yearly budget:
15. Marketing strategies
16. Pest analysis
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The Mission Statement of the Coca Cola Company
Our mission statement is to maximize shareowner value
over time.
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COCA COLA INTERNATIONAL
HISTORY:
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.
MANAGEMENT:
The hierarchy of Coca Cola Company is as follows.
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Chairman
Board of governors
Vice Presidents
MARKET SHARE:
SHARE
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.
(Table)
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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. The operation income earned by Coca Cola
Company can be illustrated by the following pie chart.
(Figure)
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(Figure)
12
10
6
unit sale in billions
4
0
1971 1981 1991 2002
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In 2002, the company had worked with their bottlers to turn
good intentions into reality by improving the system
economics. The results in 2002 reflect this steadily improving
and mutually constructive relationship between the Company
and their bottling partners. The main reason behind this
relationship is to continue realizing shared opportunities for
growth, with closer coordination of operations including
customer relationships, logistics and production.
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NORTH AMERICA
LATIN AMERICA
AFRICA
(Table)
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Country Unit case growth Non- All commercial
alcoholi Beverages
c
Drinks
10 year 5-year compound 2002 annual 2002 2002
compound annual annual growth growth
growth
Compan Industry Compan Industry Compan Industry Compan Compan Company
y y y y share y share per capita
Income
North 4 5 3 3 2 2 22 15 398
America
United 4 5 3 3 2 2 23 16 419
States
Latin 6 7 6 6 3 4 24 15 205
America
Argentin 7 4 6 2 7 2 20 10 236
a
Brazil 5 5 3 6 3 5 23 13 144
Chile 9 6 5 3 (2) 3 56 23 336
Mexico 7 10 8 9 2 5 22 18 462
Europe 6 3 5 3 2 4 12 6 72
& Middle
East
Eurasia 17 8 6 5 (14) 1 14 5 39
France 8 3 9 3 7 3 9 5 110
German 1 2 (1) 1 (6) 1 14 7 193
y
Great 8 2 11 2 8 3 17 6 193
Britain
Italy 1 3 4 3 2 2 9 6 104
Middle 12 12 7 5 4 8 8 3 17
East
Spain 6 4 8 5 4 4 17 12 264
Asia 7 6 6 7 10 7 14 5 23
Africa 7 6 8 3 10 6 34 11 34
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FINANCIAL REPORT:
This company is financially very strong. It is due to the
strong finances, the company is still surviving the ups and
down of the business world. The financial report of Coca
Cola Company of the year 2001 and 2000 along with the
percentage change is as follows.
(Table)
2002 basic and diluted net income per share includes a non-
cash gain of $.02 per share after taxes, which was
recognized on the issuance of stock by Coca-Cola
Enterprises Inc., one of the equity investors of this company.
2002 basic and diluted net income per share includes the
following charges:
• $.24 per share after income taxes related to an
organizational Realignment.
• $.19 per share after income taxes related to the
Company's portion of charges recorded by the investors
of the company.
• $.16 per share after income taxes related to the
impairment of certain bottling, manufacturing and
intangible assets.
• $.05 per share after income taxes related to the
settlement terms of a discrimination lawsuit.
• $.01 per share after income taxes related to incremental
marketing expenses in Central Europe.
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The Dividend and Cash Investment Plan permits
shareowners of record to reinvest dividends from Company
stock in shares of The Coca-Cola Company. The Plan
provides a convenient, economical and systematic method
of acquiring additional shares of our common stock. All
shareowners of record are eligible to participate.
Shareowners also may purchase Company stock through
voluntary cash investments of up to $125,000 per year.
At year-end, 76 percent of the Company's shareowners of
record were participants in the Plan. In 2002, shareowners
invested $36 million in dividends and $31 million in cash in
the Plan.
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COMPANY STATISTICS:
2002ª 2001
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.
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The over all volume of this company is as follows.
(Figure)
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Know the most recognized word on
the planet after “OK”!
STRATEGIC PLANNING
In the year 2002, the company had a great success, as the
strategy worked which resulted in making Coca Cola
Company the world’s leading company. In 2001, company
accomplished the crust of it’s strategy as
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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.
MAJOR COMPETITOR
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 Pepsi-Cola 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.
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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, Bradham’s 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
Pepsi-Cola 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. Pepsi-Cola 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
30
hours. They have permanent work force of 750 people and
they employee approximately 1000 people more on
temporary basis during summer season.
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Pepsi’s Products
• Pepsi
• Teem
• Mirinda
• Pepsi Max
• Pepsi Lemon
• Pepsi Blue
• Mountain Dew
• 7up
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COCA COLA PAKISTAN
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PROMISE OF COKE
TARGET MARKET
Coke’s 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.
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There are so many factors, which affects the sale of coke.
Here we are discussing three major factors which effects
coke.
• Per capita income
• Competitors
• Weather
Per Capita Income
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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
Weather
First of all the majority don’t care that what they are going to
have. In other words, they don’t care before drinking that
whether it is “Pepsi” or “coke”. They don’t actually
differentiate between these two brands in order to their
tastes.
Consumers basically drink what they get.
They believe on “WHAT COLD THEY SOLD”
Consumer’s availability in brands is basically works like:
Push availability
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Pull consumer’s demand.
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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 it’s 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”.
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Over Night Profits
They could be over night profit that is for the number 1 brand
for the year. This could be got my increasing sales volume
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.
Profit can also get through ethical and unethical ways. They
believe on this quote
“ Every thing is fare in love and war”.
Some profits stays for some time like “over night profits” and
some just come and go like “wind fall profits”. And they can
also get profit through different approaches.
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Now the consumer has got choice. Because now they know
the name of another big brand, though coke is the 2nd best
name but it can get a better position after some time
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.
Pepsi’s Brand
Pepsi’s brand is basically is basically “ME” branded. They
use the temperament of “ME”. In contrast to Coke they
believe on individual struggle.
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Opportunities
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STRATEGIES OF GETTING GOALS I.E. “HIGH
PROFITS”
To increase the price is the least thing, which Coke can
adopt. There are so many ways through which Coke can
increase the profits. Some major ways are as follows.
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festival and through this Coke gained high profit and
consumption of coke increased on these occasions.
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.
Coke strives to be a good neighbor, consistently shaping our
business decisions to improve the quality of life in the
communities in which we do business. It's a special thing to
have billions of friends around the world, and we never
forget it.
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MARKET POSITIONING
Product Range
The total range of Coca Cola company in Pakistan includes:
• Coke.
• Sprite.
• Fanta.
• Diet Coke.
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
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• 24 cans in one pack.
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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 that’s 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”
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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
school’s 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
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Direct Selling
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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
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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.
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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.
And positive feeling felling with the brand, which they used to
have Coke wants to advertise their products heavily in the
coming year. And it will take the 10% of their profits. And
when we take it as a global level it is $ I billion.
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2. Workers should be the brand centric not the promotion
centric.
3. They should know how much to for the brand activities.
4. They should also know that how much to do with the
promotion activities for brand.
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Sales Volume
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.
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SALES PROMOTION ACTIVITIES
Coca-Cola Cricket
Cricket the most sought after; watched & played game in
Pakistan .the game of cricket has been owned by various
brands in the industry for the promotion of their products
over a period of time. It has ranged from tobacco to
lubricants to communication companies to banks to airlines
& lately to the beverage industry. The competition has
become tougher & tougher as the time has progressed.
Coca-Cola Concerts
Abrar-ul-haq’s 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-
Cola’s commitment towards providing healthy & fun-filled
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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.
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Coca-Cola Basant Festival
Coca-Cola GO-RED
Quenching the thirst of motorist, pedestrians & passerby’s
during Lahore’s hottest summer season, Coca-Cola’s “GO-
RED” teams went out into the cities main quadrants to “serve
& refresh” on the spot with ice-cold Coca-Colas at
discounted prices backed by a heavy FM announcement
campaign the “GO-RED” stall, served well to promote the
Coca-Cola industry.
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Coca-Cola Ramzan Campaign
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.
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CONCLUSION
RECOMMENDATIONS
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PEST ANALYSIS OF COCA-COLA
There are four variables, which we will discuss in our report, they are:
POLITICAL VARIABLES
ECONOMICAL VARIABLES
SOCIAL VARIABLES
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EDUCATION
The Coca-Cola Company has always believed that
education is a powerful force in improving the quality of life
and creating opportunity for people and their families around
the world.
The Coca-Cola Company is committed to helping people
make their dreams come true. All over the world, we are
involved in innovative programs that give hard-working,
Knowledge-hungry students books, supplies, places to study
and scholarships. From youth in Brazil to first generation
scholars, educational programs in local communities are our
priority.
ENVIRONMENT
A large part or our relationship with the world around us is
our relationship with the physical world. While we have
always sought to be sensitive to the environment, we must
use our significant resources and capabilities to provide
active leadership on environmental issues, particularly those
relevant to our business. We want the world we share to be
clean and beautiful. We are always innovating to bring you
different delicious beverages. This same spirit of innovation
comes alive in our environment programs. We’re committed
to preserving our environment, from use of more than $ 2
billion (U.S) a year in recycling content and suppliers, and
environment
COMMUNITY INVOLVEMENT:
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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…
cola enjoy ”
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