PRINCIPLES of MARKETING

MARKETING ANALYSIS of CCBPL (REPORT)

Submitted To:
Miss Sanam Mahar

Group Members:
Mishal Hussain
Anjlee Matlani
Aaisha Abubakar
Hiba Zahid
(BBA-III, A)
Contents
Profile:......................................................................................................................................... 3
Introduction: ............................................................................................................................ 3
Coca-Cola in Pakistan: ............................................................................................................... 3
Vision Statement: ..................................................................................................................... 4
Mission Statement:................................................................................................................... 4
Vision of 2020: ......................................................................................................................... 4
Values:..................................................................................................................................... 5
Objectives of Coca-Cola:............................................................................................................ 5
Marketing Mix (4ps):..................................................................................................................... 6
Product .................................................................................................................................... 6
Pricing:..................................................................................................................................... 8
Different Pricing Strategies: ................................................................................................... 9
Place: ....................................................................................................................................... 9
Promotion.............................................................................................................................. 10
Advertisement: ................................................................................................................... 10
Sales Promotions:................................................................................................................ 11
Marketing Strategies:.................................................................................................................. 11
Segmenting: ........................................................................................................................... 11
Geographic segmentation .................................................................................................... 11
Demographic segmentation ................................................................................................. 12
Psychographics segmentation .............................................................................................. 12
Targeting................................................................................................................................ 13
Positioning: ............................................................................................................................ 13
Differentiation Strategy:.......................................................................................................... 15
Conclusion .......................................................................................................................... 16
Profile:
Introduction:
The Coca-Cola Company is one of the largest manufacturers, distributors and marketers of
nonalcoholic beverages Coca-Cola was invented in 1886 The Coca-Cola Company offers
nearly 400 brands in over 312countries. Coca-Cola is a carbonated soft drink sold in
stores, restaurants, and vending machines throughout the world. 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.

Coca-Cola in Pakistan:
Coca-Cola began its operations in Pakistan in 1953. Coke, Fanta and Sprite are the brands with
whom Coca-Cola is operating in Pakistan. The Coca-Cola system in Pakistan is operated
through eight bottles, four of which are majority-owned by Coca-Cola beverages Pakistan
Limited (CCBPL). The CCBPL plant is operated in Karachi, Rahim Yar Khan, Sialkot,
Hyderabad, Gujranwala, Multan, Faisalabad and Lahore. The Coca-Cola has nearly 3,000
people that are working constantly for the company. Coca-Cola serves 70,000 retail stores all
over country. During last two years, Company has invested $130 million (US $) and coke has
successfully provided 61 years of dedicated services to its loyal customers in Pakistan. Since
from its inception, company is trying to remain in consumer’s mind and they are changing their
slogan time to time to remain creative and to be in consumer’s mind and their latest Slogan is
“TASTE THE FEELINGS”
Vision Statement:
To achieve our mission, we have developed a set of goals, which we will work with our
bottlers to deliver, our vision guides substantial growth and we look at every aspect that helps
us to grow.
Profit: Maximizing return to shareholders, while being mindful of our overall responsibilities
and get profit in long-term.
People: Being a great place to work, where people are inspired to be the best they can be
Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy
people's desires and needs
Partners: Nurturing a winning network of partners and building mutual loyalty
Planet: Being a responsible global citizen that makes a difference
Productivity: Be a highly effective, lean and fast-moving organization.

Mission Statement:
Mission Statement is the statement of organization’s purposes that what it want to accomplis h.
In order to achieve mission to increase market share and maintain good relation with our
customers all over the world. Create consumer products services and communicatio ns
customer’s service and bottling system strategy process and tools in order to create competitive
advantage and deliver superior value to-Consumers as a superior beverage experience.

 Consumers as an opportunity to grow profit through the use of finished drinks.

 Bottlers as an opportunity to make reasonable to grow profits and value added
 Suppliers as an opportunity to make reasonable when creating real value added in
environment of system wide teamwork, flexible business system and continuo us
improvement.
 Pakistani society in form of contribution to economic and social developme nt.

Vision of 2020:
The world is changing all around us. To ensure our business will continue to thrive over the
next 10 years and beyond, we are looking ahead to understand the trends and forces that will
shape our industry in the future. Our 2020 Vision creates a long-term destination for our
business. It provides us with business goals that outline what we need to accomplish with our
global bottling partners in order to continue winning in the marketplace and achieving
sustainable, quality growth. For each goal, we have a set of guiding principles and strategies
for winning throughout the entire Coca-Cola system.
Values:
Coca-Cola is guided by shared values that both the employees as individuals and the
Company will live by; the values being:

 LEADERSHIP: The courage to shape a better future

 PASSION: Committed in heart and mind
 INTEGRITY: Be real
 ACCOUNTABILITY: If it is to be, it’s up to me
 COLLABORATION: Leverage collective genius
 INNOVATION: Seek, imagine, create, delight
 QUALITY: What we do, we do well

Objectives of Coca-Cola:
The company has objectives based of Sales. Everything is derived from sales that might be
4P’s (Marketing Mix and everything).
Currently main Objectives is:
“Increase the volume of Sales up to the maximum level as much as possible during the
current fiscal year”.
Company made its objectives based on last year performance. Historical trends, current
market position, economic condition, macro environment and micro environment, social
values, market size, growth rate, future expectations and prediction.
The objective is the starting point of the marketing plan. Objectives should seek to answer the
question 'where do we want to go?’ The purposes of objectives include: to enable a company
to control its marketing plan to help to motivate individuals and teams to reach a common
goal. To provide an agreed, consistent focus for all functions of an organization.
All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and
Timed.
Specific - Be precise about what you are going to achieve
Measurable - Quantify you objectives
Achievable - Are you attempting too much?
Realistic - Do you have the resource to make the objective happen (men, money, machines,
and materials, minute)?
Timed - State when you will achieve the objective (within a month? By February 2010?)
 • Market Share Objectives: To gain 60% of the market for soft drink industry by
September 2007.
• Profitability Objectives: To achieve a 20% return on capital employed by August
2007
• Promotional Objectives to increase awareness of the product on the market.
• Objectives for Survival to survive the current market war between competitors.
• Objectives for Growth to increase the size of the worldwide Coca Cola enterprise by
10%.

Marketing Mix (4ps):

The marketing mix is probably the most crucial stage of the marketing planning process. This
is where the marketing tactics for each product are determined. The marketing mix refers to
the combination of the four factors (price, promotion, product, and place) that make up the
core of a business’s marketing strategy. In this step of the marketing planning process,
marketing mix must be designed to satisfy the wants of target markets and achieve the
marketing objectives. The most successful businesses have continually monitored and
changed their marketing mix due to respective internal and external factors and have
monitored the external business environment in order to maximize their marketing mix
components.
Marketing mix includes 4ps that are:

 Product
 Place
 Pricing
 Promotions

Product
The Coca-Cola formula is The Coca-Cola Company's secret recipe for Coca-Cola. As a
publicity marketing strategy started by Robert W. Woodruff, the company presents the
formula as one of the most closely held trade secrets ever and only a few employees know or
have access to. This Coca-Cola formula appears to be the original formula to Coca-Cola. The
company Coca Cola is a multinational and it is not limited to one product. Through the years
they have invented and introduced many products than their main cola drinks. The list of
Coca Cola brands available in Pakistan are as follows
Coca-Cola:

Coca-Cola was created in Atlanta by Dr. John S. Pemberton, it was first offered as a fountain
beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola is part of life's
enjoyable moments with others, because Coca-Cola is the authentic cola sensation that
provides uplifting.

Sprite:

Sprite is the world's leading lemon-lime flavored sparkling beverage and the number 2 Global
brands for TCCC worldwide. With a strong appeal among young adults, millions enjoy its
crisp, clean taste. Sprite is a perfectly clear lemon-lime sparkling beverage with 100% natural
flavors and no caffeine. Functional Benefits: A collision of lemon and lime that delivers a
crisp, clean taste. Emotional Benefits: To spark your true self.

Fanta:
The multi-sensory, fruity flavors of Fanta provide a bubbly, exuberant and playful
consumption experience. Multi-sensory experience that inspires the exuberant spirit in all
of us with fruity, bubbly, and full-color magnified by all five senses; broad appeal across
African-American, Hispanic and Anglo-American ethnic groups.

Diet Alternatives: Diet Coke & Sprite Zero :

Diet coke is a Diet Carbonated Cola. Diet Coke is the perfect refreshment for people who
want no calories, but plenty of taste. Sprite zero is a Zero-calorie lemon-lime carbonated
beverage. Lemon-lime, zero-Calorie Sprite Zero™ offers great taste that helps you keep you
cool.
Minute Maid Juices:

Minute Maid offers the refreshing goodness of 100% juice and a wide variety of
juice drinks in shelf-stable packaging. Flavors available in Pakistan are:

 Minute Maid Pulpy Orange

 Minute Maid Pulpy Tropical
 Minute Maid Pulpy Lemon

Nestea:

Nestea is a brand of iced tea manufactured by Nestlé and distributed by Nestlé Company’s
beverage department in the United States and by Beverage Partners Worldwide, a joint
venture between The Coca-Cola Company and Nestlé, in the rest of the world.

Pricing:
The amount of money charged for a product or service. As price gives us the profit so this P
is very important for business. Price of the product should be that which gives maximum
benefit to the company and maximum benefit to the customer. Coke was a company ruling
the markets before Pepsi entered. Earlier the price of coke was cost based i.e. it was decided
on the cost which was spent on making the product plus the profit and other expenses. But
after the emergence of other companies especially the likes of Pepsi, Coca-Cola started with a
pricing strategy based on the basis of competition.
Following factors Coca Cola kept in mind while determining the pricing strategy

 The price should be set according to the public demand for product
 Price should be that which gives maximum revenue to the company
 Price should not be too high or too low than the price competitor is charging from
their customers, otherwise no one will buy the product
 Price must be keeping in view the company’s target market
 Prices of different Bottles Size of Coca Cola Price of Coca Cola (RS.)

Size of Coca Cola Price of Coca Cola( RS)

Regular Bottle 30
 1.5 Liter Bottle 80
Disposable Bottle 45
Coca Cola Can 45

Different Pricing Strategies:

Competition based pricing approach:
Coca Cola is in intense competition with Pepsi so its pricing can’t exceed too much nor
decrease too much as compare to the price of Pepsi cola. If price of Coca Cola exceeds too
much from Pepsi the people will shift towards Pepsi cola and on the other hand if Coca Cola
decreases its price too much people might get impression that the quality is also low.

Promotional Pricing Policy:

Coca Cola offers promotional prices very frequently. Especially on some occasions like
Ramadan the Coca Cola reduces its price up to 5 or 10 rupees on 1.5 liter bottle.

Marketing Penetration Pricing Policy:

Price in the beverage industry is determined by the consumer. In an economy like Pakistan,
consumers tend to switch towards a low price product. Coca Cola’s objective is to target
every consumer of the country so Coca Cola has to set its price at such a level which no one
can offer to its consumer. That is the reason Coca Cola is charging the price as its competitors
are charging. Otherwise, people may go for Pepsi cola in case the Coca Cola products are
available at a high price.

Place:
The place P of the marketing mix refers to distribution of the product- the ways of getting the
product to the market. The distribution of products starts with the producer and ends with the
consumer. One key element of the “Place/Distribution” aspect is the respective distribution
channels that Coca Cola has elected to transport and sell its product.
Selecting the most appropriate distribution channel is important, as the choice will determine
sales levels and costs. The choice for a distribution channel for any business depends on
numerous factors, these include:
• How far away the customers are
• The type of product being transported
• The lead times require
• The costs associated with transport.
It is apparent from the popularity of the Coca Cola’s product on the market that the business
in the past used the method of intensive distribution as the product is available at every
possible outlet. From supermarkets to service stations to your local corner shop, anywhere
you go you will find the Coca Cola products. Coca cola is the world’s most favorite brand
and is available all over the world. The distribution system of coca cola follows the
FMCG distribution pattern. The effective distribution network of coke has almost destroyed
the small and middle level players in the market. There are different types of distribution
strategies that Coca Cola could have chosen from. These distribution strategies can be
 • Intensive Distribution
• Selective Distribution
• Exclusive Distribution
• Direct Distribution
It is apparent from the popularity of the Coca Cola’s products in the market of Pakistan that
the company is using the intensive distribution as the products are available at every possible
outlet. From supermarkets to service stations to your local corner shop, anywhere you go you
will find the Coca Cola products.

Promotion
In today’s competitive environment, having the right product at the right place in the right
place at the right time may still not be enough to be successful. Effective communication with
the target market is essential for the success of the product and business. Promotion is the p
of the marketing mix designed to inform the marketplace about who you are, how good your
product is and where they can buy it. Promotion is also used to persuade the customers to try
a new product, or buy more of an old product. The promotional mix is the combination of
personal selling, advertising, sales promotion and public relations that it uses in its marketing
plan. Above the line promotions refers to mainstream media: Advertising through common
media such as television, radio, transport, and billboards and in newspapers and magazines.
Because most of the target is most likely to be exposed to media such as television, radio and
magazines, Coca Cola has used this as the main form of promotion for extensive range of
products. Although advertising is usually very expensive, it is the most effective way of
reminding and exposing potential customers to Coca Cola Products. Coca Cola also utilizes
below the line promotions such as contests, coupons, and free samples. These activities are an
effective way of getting people to give your product a go.
In today’s competitive environment, having the right product in the right place at the right
time may still
Not be enough to be successful. Effective communication with the target market is essential
for the success of the product and business. Promotion is the p of mix designed to inform the
marketplace about who you are, how good your product is and where they can buy it.
Promotion is also used to persuade the customers to try a new product, or buy more of an old
product. The promotional mix is the combination of personal selling, advertising, sales
promotion and public relations that it uses in its marketing plan. Coca Cola Company uses the
following promotional activities

 Advertisement
 Sales promotion

Advertisement:
Coca Cola Company advertises its products in Pakistan mainly through electronic media
that include television, Radio and internet as well. More over the leading newspapers of
Pakistan are also targeted by Coca Cola Company for its advertisement. So we can say it
uses not only the electronic media but also use the print media. They often use the following
mediums
  Print media
 TV Commercials
 Billboards

Print Media:
The Coca Cola Company often uses the print media for advertisement of their products. They
have separate department for print media.

TV Commercials:
Now a days TV commercials are becoming the common way of advertisement. The Coca
Cola Company does regular commercials on different TV channels for its products
advertisement.

Billboards:
The Coca Cola Company is very much conscious about their billboards and holdings. They
have so many sites in all over Pakistan for their billboards.

Sales Promotions:
The Coca Cola Company also does sponsorships with colleges, schools and universities’
cafes and sponsors their sports events and other extra curriculum activities for getting the
market share.
Suggestions for Improvement:
As no man in this world is a complete man and so are the companies. No company is perfect
and has space for improvements so as Coca-Cola Company too. Today’s world is a
competitive world and the companies must not forget that customers have different choices, if
the consumers are not satisfied with Coca Cola products they will switch to other
competitor’s products like Pepsi.

Marketing Strategies:
Marketing strategies are as follows:-

Segmenting:
Coca Cola Company is the world’s leading manufacturer, marketer, and distributor of soft
beverages. Coca Cola uses "Multisegment" targeting strategy which means that the company
has more than single, well- defined, market segment. It develops a marketing mix for each of
the segments. Coca Cola has more than 400 different products line, total of 3,500 product
mix.

Geographic segmentation
Coca Cola has drinks that targets different age groups, ethnic groups, sexes, lifestyles, etc.
Examples:
Oasis- Juice made for the younger working adults, between the ages of 20-30. The product is
available in different flavors (berry, lemon, and orange tangerine). It’s mostly popular in
Britain and Ireland. Coca Cola- the most popular soft drink so far that being sold in most
countries in the world. The large demand for its taste and the trend toward healthier lifestyle
influenced Coca Cola to produce healthier products such as Coca Cola Zero, Diet Coca Cola,
and etc.
• Coca Cola Zero- targets teens that don't want calories but want the taste.
• Diet Coca Cola- targets adults, between 30-50 who are health conscious but want the
taste.
• PowerAde- sport drink, targets athletes between 13-27 ages.
• Minute Maida- targets kids and adults from 1 year to 10 and 40 plus. It’s convenience
to carry. It targets parents that want their children to drink healthier drinks.

Climate- Coca Cola’s consumption in the summer is 60% than 40% in the winter; therefore,
the company's sales are higher in the summer. It also focuses in hot area in the world.

Demographic segmentation
• Age- 15-25 years old and 40 plus.
• Gender- targets both genders with wide variety drinks.
• Income- segments different income level. For example, by packaging: for low level
income the company is selling returnable glass bottle; for high level income, the
company is selling coke in tins.

Psychographics segmentation
People who are brand conscious will not drink beverages of less known brands. They will try
to show their status by drinking Coca-Cola. The level of education is another factor that the
company is paying attention to. In a high percentage education, the company can use
advertisements to convey the company massage. Because Coca Cola is a recognized world
brand, people will drink it without hesitate.
Coca Cola designed to satisfy the consumer’s needs. The company is able to provide drinks
for many different target markets: ages, sexes, and etc. The products are sold to diverse
population all around the world. In our world today, people want to live healthier lives. Coca
Cola recognized this need and begun to produce different beverages that are satisfying those
consumers. Coca Cola products are purchased by different classes, but mainly by middle to
high level class. In addition, many people today make their purchases decisions based on the
company’s ethics and, or social responsibility. Coca Cola gains the trust of its consumers by
contributing to the environment in varies ways.

Targeting:
Once the situation analysis is complete, and the marketing objectives determined, attention
turns to the target market. The soft drink market is very large, and the business cannot be “all
things to all people”, so it must choose which market segments have the greatest potential.
The target market is the group of customers on whom the business focuses attention. The
target market is where Coca Cola focuses its marketing efforts as it feels this is where it will
be most productive and successful. The target market for Coca cola is very wide as it satisfies
the needs for many different consumers, ranging from the healthy diet consciousness through
Diet Coke to the average human through its bestselling drink regular Coke. Most Coke
products satisfy all age groups as it is proven that most people of different age groups
consume the Coca Cola product. This market is relatively large and is open to both genders,
thereby allowing greater product diversification. There are four broad ways which Coca Cola
can segment its market, Mass marketing, concentrated marketing, Differentiated marketing,
Niche marketing. The most apparent method used by Coca Cola is with no doubt the
differentiated marketing method as Coke satisfies a range of different markets. Diet coke
satisfies the weight consciousness, regular coke, sprite, Fanta the average human, coffee, iced
tea etc. Each group of beverages satisfy a particular group of people but majority the average
human.

Positioning:
Positioning begins with a product, the concept really is about positioning that product in the
mind of the customer. This approach is needed because consumers
a r e b o mb a r d e d with a c o nt inuo us s tr e a m o f a d ve r t is in g, with a d ve r tis e r
s s p e nd ing s e ve r a lhu nd r e d d o lla r s a nnua ll y p e r c o ns ume r in the U. S .
The c o ns ume r ' s mind r e a c ts to this high-volume of advertising by accepting only
what is consistent with prior knowledge or experience. It is quite diffic ult to change a
consumer's impress io n once it is formed. Consumers cope with infor ma tio n
overload by oversimp lif ying and are likely to shut out anything inconsiste nt with
their knowledge and experience. In an over- communicated environme nt, the
advertiser should present a simplified message and make that message consistent with
what the consumer already believes by focusing on the perceptions of the consume
Coca Cola has strategically positioned itself within the world soft drink market. It faces a
vital question: does it have to keep the same positioning or to adapt according to the 200
countries where the brand sells its products. The brand has understood this principle while
ago: “think global, act local”. Coca is thus willing to keep the same core product which is
coke, but it adapts the offer to local needs. They use strategic positioning in order to have the
same image all around the world, which is a success because it is perceived today as a part of
daily life everywhere. This perception of the brand by the consumer leads to a high degree of
loyalty and makes the purchasing decision more automatic. Coca Cola has been successful by
using Unique Selling preposition as “Live the coke side of life”, related to joy and happiness.
Consumers basically associate this brand with these emotions. When the name of Coke is
mentioned, the first thing that comes into mind is fun and entertainment.
During the past, Coca Cola has launched the low-calorie soft drink products such as the Coke
Zero and Diet Coke. In this case, Coca Cola uses the Coke Zero and Diet Coke to serve the
customers in low-calorie soft drink market segment, while using its original products to serve
the customers in normal soft drink market segment. However, it appears that the taste for
such soft drink may not be accepted by all the customers. Therefore, Coca Cola has
developed the new low-calorie soft drink product, the Coke Life. As Herbison (2015)
described, Coke Life is the low-calorie soft drink product with the very similar taste for the
original Coca Cola, but with 30% less sugar. Coca Cola developed this product as the result
that it knows many of the customers may not like to give up the taste while want to achieve
better health. Therefore, both the sugar free soft drink and the original soft drink may not be
proper fit for the needs of such customers. In this case, Coca Cola want to develop a healthier
soft drink product, with the good taste. The Coke Life could be a very good solution in this
case. With the same formula that Coca Cola uses for its original version of the coke product,
Coke Life has the nearly the same taste (Nasdaq 2014). However, it has 30% less sugar in it,
so this means it also be healthier.

Iacobucci (2014) mentioned that marketers need to find the position of their products in the
market, so that it could best serve the needs of its customers, while gain better
competitiveness. In this case, as the diagram above shows, the Coke Life positions itself as
the good taste soft drink with low calorie. Therefore, it could compete with the normal soft
drink product on the health while competing those sugar free soft drink on the taste. The
perfect balance between the taste and the health could let the company well serve the
customers who want both taste and health. Therefore, this could be the very good example
about how effective marketing positioning strategy could help the company to achieve better
success.

Differentiation Strategy:
A differentiation strategy calls for the development of a product or service that offers unique
attributes that are valued by customers and that customers perceive to be better than or differe nt
from the products of the competition. The value added by the uniqueness of the product may
allow the firm to charge a premium price for it. The firm hopes that the higher price will more
than cover the extra costs incurred in offering the unique product. Because of the product's
unique attributes, if suppliers increase their prices the firm may be able to pass along the costs
to its customers who cannot find substitute products easily.
Coca Cola Company spends round about 20% of their total advertisement budget for
maintaining its differentiation strategy. Similarly coca cola has created its differentiation by
utilizing soft sell approach. Company has successfully positioned itself on the following
standards;
 Corporate reputation for quality and innovation.
 Successful communication of perceived strengths of the product.
 Symbol of fun and enjoy
Why this definition, Coca-Cola has unquestionably chosen a differentiation strategy. This has
always been Coca-Cola’s strategy since the early days of the company’s life as evident by
Woodruff refusing to match Pepsi’s 6 cent 12 ounce bottle. (Pendergrass, 2000) Coca-Cola
hopes to isolate their competition away from the market by creating a strong, brand loyal
customer base. They have dropped in market share lately and thus they need to create stronger
advertisements that will once again provide a sturdy customer base. This strategy is a good
choice for Coca-Cola, however it can be detrimental if they are not careful. A couple more
years of slipping market share may take Coca-Cola into the Stuck-in-the-Middle category of
which it can be very hard to climb out. There is a fine line between being confident in a
company and being content. Coca-Cola better be careful that they do not mistake confidence
with being content as their overwhelming success over the past century could and very well
may lead to ignorance of their current situation. Therefore if Coca-Cola wishes to not only
exist but also prosper in the future, a much stronger concentrated effort toward a differentia tio n
strategy will prove to be highly beneficial.
Conclusion
Coca cola is truly global company with presence in multiple countries. The company’s biggest
competitive strength comes from the strong brand that has been developed over 125 years of
consistent marketing efforts.

Marketing and advertising has been the most important function that has taken Coca-Cola to new
heights. The company has adopted innovating marketing techniques right from the times of its
introduction. Apart from advertising its other marketing strategies are strong enough to make it a
big brand among beverages.