COCA-COLA MARKETING PLAN 1

MARKETING PLAN OF COCA-COLA BEVERAGES PAKISTAN

Majid Hussain (1935201)

Muhammad Talha Tariq (1935206)

Ahsan Iqbal (1935189)

Masroor Ahmed Sheikh (1835426)

Prepared under the supervision of

Dr. Hasnain Alam Kazmi

Advisor

SHAHEED ZULFIKAR ALI BHUTTO INSTITUTE OF SCIENCE AND

TECHNOLOGY KARACHI
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TABLE OF CONTENTS

Title Page………………………………………………….………………………………….1

Cover Letter…………………………………………………………………………………..3

Historical Background………………………………………………………………………..4

Marketing Goals & Objectives……………………………………………………………..5

Sales Objectives………………………………………………………………………………

Profit Objectives………………………………………………………………………………

Pricing Objectives…………………………………………………………………………….

Product Objectives…………………………………………………………………………….

Market Analysis……………………………………………………………………………….

Environmental Analysis – Global Business Environment....………………………………

Political and Legal Factors……………………………………………………………………

Demographical Factors………………………………………………………………………..

Environmental Analysis – Local Business Environment………………..………………...

Supplier Analysis………………………………………………………………………………

Social/ Cultural Analysis………………………………………………………………………

Competitor Analysis…..………………………………………………………………………

Consumer Analysis…………………………………….…………………………………….

SWOT Analysis………………..…………………………………………………………….

Marketing Focus…………………………..…………………………………………………

Marketing Mix………………………………………………………………………………...

Financial Information…………………………..……………………………………………

Tables and Graphics…………………………..……………………………………………..

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COVER LETTER

The report is the assessment of the marketing perspective of Coca-Cola Beverages Pakistan.

The study has been prepared to analyze multiple aspects of the company including the

marketing objectives, SWOT and PESTEL analyses and the marketing mix.

The report delivers several aspects of data which will be able to generate the importance of

administering the business of Coca-Cola in Pakistan. Coca-Cola is an international standard

brand that follows regional and geographical based marketing activities in Pakistan. The

beverage sector contributes to the overall growth of the company including the GDP, per

capita income and delivers employment.

The marketing techniques, target audience, advertising campaigns have been considered in

the descriptive report. Maximum effort has been made by the team and order to cover the

paramount of marketing activities of Coca-Cola.

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HISTORICAL BACKGROUND

This story Begins in Atlanta Georgia on May 8, 1886, when a pharmacist referred to as Dr.

John Smith Pemberton first Mixed Coca-Cola in his lower back yard. This formula, which

was made from carbonated water, and other ingredients, used to be brought to the nearby

Jacob’s Pharmacy where it made its debut as a gentle drink the equal day, promoting for

solely 5 cent. His bookkeeper named this drink “Coca-Cola” after the first two components

and the same distinctive script he wrote it in is the equal emblem the use to this day.

In January 1893 Coca-Cola was registered with the U.S. patent Office. Later on in 1915 the

Root Glass organization created the famous contour glass bottle for Coca-Cola in 1915.

In 1917 Coca-Cola was located to be the world’s most recognized trademark with a file of

three million Coke’s sold per day. Unfortunately, John Pemberton fell ill; advert did no

longer stay to see his product’s success. (Coca-Cola Journey, 2014)

Coca-Cola started its business in Pakistan in 1953 soon after the independence and the

beverages are produced in the region reflecting Pakistani lifestyle and tastes. Coca-Cola

beverages are manufactured, processed and sold through the company’s 11 bottling plants

throughout the country under the name Coca-Cola Beverages Pakistan (Pvt) Ltd (CCBPL).

Of the 11 bottling plants, 5 of them are controlled directly by Fraser & Neave Limited

(Singapore).
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MARKETING GOALS & OBJECTIVES

As a result of a fast changing world around Coca-Cola, it has to look ahead and comprehend

the factors that may affect the company in future.

The mission statement of a company or Coca-Cola in this case helps to understand the reason

for its existence. In the case of Coca-Cola it is an organization that focuses on leaving an

upshot wherever it operates. The aims and values of Coca-Cola surround mainly around

making a difference by improving lives and communities and exceeding expectations.

“To refresh the world in mind, body and spirit. To inspire moments of optimism and

happiness through our brands and actions; and to create value and make a difference.” (Coca-

Cola, 2016, p.1)

Coca-Cola believes in not only to survive but also to stay on the top globally and for that

purpose it must have a strong internal culture. The core values of Coca-Cola include

leadership, collaboration, integrity, accountability, passion, diversity and quality. In order to

continue achieving sustainable and quality growth, the company needs to accomplish

following its vision which serves as a structure for its roadmap guiding every aspect of its

business.

“Inspiring each other to be the best we can be by providing a great place to work.” (Coca-

Cola – About)

Sales Objectives

Coca-Cola faces direct competition from Pepsico, not only in Pakistan but globally, and

market share held by both competitors fluctuates from time to time. On a global scale, Coca-

Cola currently has a market share of the beverage industry of around 52% whereas Pepsico
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holds around 18% and the industry considers Coca-Cola as the leader. On the other hand, in

the context of Pakistan, 28% market share is held by Coca-Cola whereas Pepsico holds 70%

of Pakistan’s beverage industry. The remaining 2% is held by other indirect competition such

as Frooto, Nestle, and Gormey etc., which do not produce soda drinks like Coca-Cola and

Pepsi, but are part of the beverage industry.

“But when it comes to regular old cola, Coke is still king.” (CNN Business, “Why Coke is

winning the Cola Wars”, Danielle W. Bronner 2018

It is usually observed that in order to increase the market share, the company should increase

its product selection to attract larger and more diversified set of customers (Ho and Tang,

1998); Coca-Cola followed the strategy the same way by introducing 10 new flavors between

2008 and 2009 and added 18 more flavors to its product range in 2010 (Coca-Cola press

center, 2011). During 2011, Coca-Cola had plans to attract 800 million to a billion new

customers globally by 2020 (Mark C., Marketing Week 2011)in respect of its rigorous

marketing plans. The strategic priorities of Coca-Cola are guided by 6 principles:

1. Soft drinks’ growth acceleration

2. For profitability, broaden their range of beverages brand

3. Build a growth system with bottling partner CCI Pakistan, subsidiary of Coca-Cola İçecek in

order to increase profitability

4. Provide consistency to customers with creativity across all channels

5. Invest directly in high potential areas

6. Usage of cost effective and efficiency driven methods

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Digital/ Content Marketing

Content marketing involves creation and sharing of videos, pictures, blogs and social media

particularly intending to stimulate interests in its products and services instead of explicitly

promoting a brand. Coca-Cola, being one of the most recognizable brands, has been very

active in its social media campaigns and digital marketing and its subscribers are evidence of

such strategy.

On Facebook, Coca-Cola (@CokePakistan) has attracted

more than 107 million subscribers and followers where it

posts every 2-4 days. Active social media campaigns has

helped Coca-Cola further strengthen the brand as it digital

marketing has a higher reach without physical

presence.Another social media platform includes Instagram, where Coca-Cola is followed by

more than 56 thousand fans whereas on Twitter it has 3.3 million followers.

During 2011, Coca-Cola launched the ‘Share a Coke’ campaign for the first time which

involved changing the traditional wrapping around the bottle with a popular name. This

strategy was intended to inspire shared moments of happiness and create a personal

relationship with consumers. In 2016, this campaign was changed to ‘Share a Coke and a

Song’ which included some popular song lyrics printed on the bottle wrapping. The campaign

was extremely popular among the fans as it earned the most liked photo on instagramat that

time when Selena Gomez posted a photo with the drink. It now stands at more than 7 million

likes.
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Marketing Segmentation

Market Segmentation is the exercise of dividing a broad consumer base or market (consisting

of existing and future potential customers) into subordinate groups of consumers (known as

segments) based on shared characteristics.

Coca-Cola has divided its segments in 5 groups namely the 13-25 Age bracket, the invisible

8-13 Age bracket, rural areas, internal migration and the minorities.

The 13-25 Age Bracket

Coca-Cola views this market as the prime market as Pakistan is one of the countries with

rapidly growing population which provides a promising prospects of the country to Coca-

Cola. Research shows that population of Pakistan is growing at a rate of 2.82% annually.

According to Federal Bureau of Statistics Pakistan, the 13-25 age bracket segment makes up

to 30% of the overall population of Pakistan which is a further evidence of rapidly growing

target market.

The Invisible 8-13 Age Bracket

Another segment which is important to Coca-Cola is the 8-13 bracket which cannot be

neglected as it is the segment which will be tomorrow’s 13-25 age bracket in order to focus

on the long term vision of Coca-Cola. This age bracket holds 13% of the total population

statistically and provides an opportunity of long term investment.

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Rural Areas

Coca-Cola often faces competition from traditional

drinks in the rural areas of Pakistan and their availability

threatens the existence of Coca-Cola in those areas. The

substitute drinks like Lassie (traditional drink made from

milk and yoghurt) and Rao (Sugar cane juice) are often

cheaper as well as considered to be more thirst quenching in the summer heat of the plains

compared to Coca-Cola’s carbonated water. Poor infrastructure and communication issues in

rural areas trigger problems for Coca-Cola in delivery and availability as a result of which the

vast majority of the market is still uncovered.

Internal Migration

The rapid urbanization as a result of attractive lifestyle of urban areas for people in rural areas

as well as incomes in urban areas is comparatively higher than that of rural areas has

increased the trend of internal migration from rural to urban areas. This resulted in heavy

population in few large cities of Pakistan like Karachi, Lahore and Faisalabad. Study shows

that 15-20% of the total population of Pakistan belongs to the 5 largest cities of the country.

As a result, an easy access to expanding market is reveled for not only Coca-Cola, but for

every organization. Hence, Coca-Cola is working out a program to grow its products’

availability in these over populated cities of Pakistan.

The Minorities

Another segment that Coca-Cola focuses on is The Minorities with respect to consumer

groups from different religions including Christians, Parsis, Sikhs and Hindus who are more

inclined towards the drinks with high fizz and less sweet taste and this market is experiencing
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slightly higher population growth rate than any other segment. This gives Coca-Cola an

advantage which if materialized, could help expand the production.

Athletes’ and Celebrities’ Endorsements

Endorsements by a celebrity or an athlete could help an organization in making itself more

respected and proving the legitimacy of their products. The

purpose of endorsements is that organizations want to associate

themselves with a particular personality or image. When the target

audience catches sight of the celebrity endorsing a product, they

begin to relate the celebrity with the specific product which results

in consumer appeals and in case of Coca-Cola, it has been able to

attract a wide range of customers.

However, it’s not always that the celebrities that Coca-Cola chooses for endorsements have a

positive impact on the brand image of Coca-Cola as not all celebrities remain to be approving

and favorable to Coca-Cola’s brand image.

For example Paula Abdul, an American singer, writer and television personality who featured

in Coca-Cola advertisement in 2007 was said to have a sexual relationship with one of the

contestants on American Idol, a show that she was a judge on. Another example of such an

incident that damaged Coca-Cola brand image due to a controversy was when Roger

Clemens, an American famous baseball player who featured in Coca-Cola ads during the

1980s was accused of using steroids and anabolic throughout his career as a baseball player

in major leagues.
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Even after such incidents, the brand image of Coca-Cola is not affected much and Coca-Cola

still has a positive image associated with its brand, staying globally popular and attracting

endorsements still.

Sponsorship with Cricket World Cup 2019

Part of Coca-Cola’s exhaustive strategies included Cricket World

Cup 2019 (CWC 19) sponsorship which was a massive

achievement of Coca-Cola in order to bring sports, consumers and

brands together across the globe. The team-up contract was signed

for 5 years till 2023 and included all ICC events including ICC

Men’s World Cup 2019, Men’s and Women’s T20 World Cups

2020, ICC Women’s World Cup 2021 and ICC Men’s World Cup

2023. (ICC Website, 2019)

During the tense matches of ICC Cricket World Cup 2019, Coca-Cola started catching up

with the feelings of the people with different digital contents as well. The contents were well

presented and Coca-Cola looked to reignite the belief of the nation which they had during

1992 World Cup. The campaigns were not only delivered through TV commercials but also

via other channels such as radio, outdoor activities, consumer and trade activation, packaging

along with digital engagements as well as responding and creating real time content.

This did not conclude here and Coca-Cola took full

benefit of the sport as it started rewarding free ICC

World Cup matches’ tickets to the fans with the

strong trade activation plan in order to supplement

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building its equity. Furthermore, “Phir se Game Utha Dain” initiative demonstrated

effectively the technique on how to make a mark in a space wholly owned by the

competitors, along with driving transaction and equity.

Sponsorship with Coke Studio

Coke Studio was initially introduced in Brazil in 2007 where musical

performances are held on a platform like a concert from renowned as well

as emerging artists. In 2008, Coke Studio premiered in Pakistan for the

first time and was an immediate hit. The show promotes Pakistan’s multiculturalism by

inviting singers from various regions and different languages for musical collaboration.

Coke Studio has a huge fan following in Pakistan as well as the neighboring country, India

since its first season in 2008 after which it became an international franchise. India then

launched its own version “Coke Studio @ MTV” after the success of Coke Studio in

Pakistan, and in 2012 “Coke Studio Bel 3arabi” was launched in the Middle East.

Collaborations with other companies

Coca Cola has always been involved in marketing campaigns from time to time including

collaboration with other brands. This is not the end, Coca-Cola has worked with many other

companies for the promotional activities including Nokia, McDonald’s, TV Mazza and more.

Collaborating with Jazz

Coca Cola and Jazz (a telecommunication company in Pakistan serving approximately 60

million customers) joined hands for the activity of “Coke Festival”

in major cities of Pakistan. Coke Fest is an event organized each

year internationally attracting music fans and foodies.

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The two companies also reached an agreement for a

partnership campaign during the Cricket World Cup

2019. The Coca Cola bottles provided customers

chances to win unlimited Jazz 4G internet through the code present at the back of Coca Cola

bottles’ labels (Coca Cola Facebook page). This seemed to be an opportunity for customers to

enjoy the world cup matches conveniently.

Collaborating with Bata

Bata (A Swiss footwear brand and fashion

accessories manufacturer) and Coca Cola

worked together to produce a spin on the Bata

Tennis and Hotshot with an arrangement of

graphic-styled footwear for the spring 2019

collection. Both companies collaborated as both

share the distinctive white and red colors in branding, community and trust. The collection

included a Coca Cola logo in white on red canvas.

This shows how extensive Coca Cola’s marketing and promotional plans are.

Collaborations with NGOs

There are many other companies including NGOs and social activist organizations which

Coca Cola worked with for the promotional activities which include WWF, CERB, TEDx,

LDA & EPD and MGPO, some of them are detailed below.
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Working with Edhi Foundation

Coca-Cola has been organizing a fund raising

campaign along with Edhi Welfare Organisation

(one of the Asia’s largest social welfare

organizations) since 2017. The ‘Edhi for Edhi’ and

“Bottle of change” campaigns aimed to evoke the

values of generosity and kindness for a fund raising effort to be implemented nationwide.

Under the campaign, Coca-Cola asserted that the company will contribute a rupee for every

rupee donation which was a huge initiative.

The campaign included a TV commercial which covered the famous poem “Lab pe aati hai

dua” by Allama Iqbal and was sung in major languages of Pakistan which touched the hearts

of millions of Pakistanis. The campaign was a huge success as it came out during the Holy

month of Ramadan and was not designed for a commercial angle whatsoever, and the cap on

the amount of donations was up to PKR 25 million. Customers all over the country perceived

the effort as an exceptionally generous gesture since Edhi Welfare Organization and Coca-

Colaboth are names of trust.

MARKET ANALYSIS
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Coca-Cola Market size is huge and its market share 30 % of total Pakistani market. Most of

the share is from Punjab regions but there is gap in Baluchistan where the Coca Cola can find

the potential customer. Distribution and Marketing campaign of Coca Cola is less in this

market than other regions so there they need to fill the gap and discover new market and

capture the potential customer in aspect of climate Baluchistan is also a favorable place for

the Coca Cola due to hot weather in summer and also in interior Sindh there is potential

market where they can fill the gap.

Environmental Analysis - Global

Although plastic leftover has established extra high-profile courtesy in the media, it is a

matter we have been working solid to grab for years. Coke has frequently reformatted

packages to make them lighter and easier to reuse and Coke has made investments in

technology that lets us use more recycled content in packages. In 2019, Coke will launch PET

bottles for four water brands in 100% recycled PET, and use 50% recycled PET for both

Coke and Coke Zero in Austria and Switzerland. This is an important trial which coke will

expand in the future. Coke believes that a litter-free world is possible and that our industry

has a key role and a responsibility to help achieve this. As part of our 2025 sustainability

commitments, coke set ambitions to ensure our entire consumer packaging is 100%

recyclable, that use even more recycled PET in our bottles and that help collect more after

use. These commitments support the Coca-Cola System’s World without Waste goal of

helping to collect and recycle a bottle or can for each one coke sell by 2030.

Creating Job Opportunity

Another of coke 2025 sustainability commitments is designed to step up efforts in this area.

Since 2015, coke have been supporting young people in the markets who are not in
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education, employment or training by providing skills, networks and access to mentors to

give them a leg-up to the employment ladder. While they are very proud of what they have

accomplished through their Youth Empowered program, they think they can do even more.

Coke have therefore set themselves a big goal of training one million young people by 2025

through the scheme.

Political environment

Regulatory intervention is increasing in this industry. In the EU, the first Europe-wide

plastics strategy coke introduced in 2018 to achieve 100% recyclable plastic packaging by

2030, reduce the consumption of single-use plastics and promote a circular value chain

through reusable content. At the same time, discussions about taxing added-sugar beverages

are becoming more common as governments look for potential revenue streams and ways to

address public health concerns. The World Health Organization continues to focus on the

importance of a balanced, healthy diet and physical activity in the battle against childhood

obesity and diseases such as diabetes.

Coke has committed to help collect the equivalent of 75% of every can and bottle sell by

2025, use more recycled and renewable materials in packaging and make 100% of consumer

packaging recyclable by 2025. Coke support transparent product labeling to help consumers

make informed choices, and in 2018 introduced new product labels with nutritional

information based on the UK’s ‘traffic light’ scheme. Coke continue to support UNESDA’s

commitment in not selling soft drinks in primary schools and as at the end of 2018, we do not

offer added-sugar beverages in secondary schools across the EU and Switzerland.

Demographic

In demographic segmentation, the market is divided into groups on the basis of variables such

as age, family life cycle, gender, income, occupation, education, religion, race, generation,
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nationality, and social class. Demographic variables are the most popular base of Coca-Cola

Company for distinguishing their customer groups. The reason is that consumer wants,

preferences, and usage rates are often associated with demographic variables. Another is that

demographic variables are easier for Coca-Cola to measure because they can evaluate or

conduct surveys for the demographic segmentation.

Age and Life-Cycle Stage

Coca-Cola Consumer wants and abilities change with age. Age and life cycle can be tricky

variables because there are different needs and wants as accord to the age of a person. The

main sector in which Coca-Cola Company targets is the youth because there is a much need

of refreshment and energizers to cope up with their daily activities.

Gender

Gender is also an issue needed to be given prior by Coca-Cola. Men and women tend to have

different attitudinal and behavioral orientations, based partly on genetic makeup and partly on

socialization practices. Coca-Cola targets both genders with its wide variety of drinks. This

market is relatively large and is open to both genders, thereby allowing greater product

diversification.

Family size

Family size basis is also a base segmentation for Coca-Cola. In our society, we have families

with different family size. So Coca-Cola makes a variation in their served bottle size into

many ways such as 500ml, 1L, 1.5L, 2L pack. People can easily choose a suitable pack based

on their family size.

Income
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Coca-Cola segments different income levels by packaging. For example, for people with a

low level of income, the company has small returnable glass bottle; for the mediocre class it

has non-returnable bottle, and for people with a high level of income it has Coke tin.

Social Class

Social class has a strong influence on preference in food and drinks. Coca-Cola design

products for specific social classes.

Environmental Analysis (Local)

Supplier

Coke considers its supplier as a partner in their business. As coke want its supplier to

maintain the best quality possible because the supplier are linked to its customer value. So

coke provides extensive training to its supplier and also routine inspection in order to build

good relations with its supplier and maintain good quality product.

Following are the supplier of Coca-Cola

1. CCBSS (Provide fructose corn syrup)

2. Nutrasweet and Ajinomoto (Supply Acesulfame potassium)

3. Tate and Lyle (Supply Sucralose)

Culture of Coke

One of its greatest strengths is their values-based culture which is built on six core values.

The first of these is authenticity, which reflects that they have deeply felt values, act with

integrity and do what is right, not just easy. The second is excellence which means that they

strive to amaze, with passion and speed. The third is learning, this means that they listen and

have a natural curiosity to learn. The fourth is caring for our people, at Coca-Cola HBC they

believe in people, invest in them and empower them. The fifth value is performing as one,

they believe in the power of working together contributing in every interaction. And finally,
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the sixth is winning with customers; customers are at the heart of everything they do.

Transforming Company to become a Total Beverage Company requires that build on our

strong existing culture.

Competition

Pepsi PepsiCo is one the biggest companies in the world. It appears amongst the leading 15

companies in the world according to the number of employees hired. The company has

assets worth US$69.667 billion and 263,000 employees.

The company boasts a of large market share, worldwide brand recognition, purchasing

economies of scale and customer loyalty. It weakness includes: smaller market share than

Coca-cola, inability to differentiate products, weaker customer loyalty and brand identity

compared to Coca-cola. The company’s opportunities are its ability to adapt to market trends.

Customer Analysis

Consumers are becoming more health conscious, proactively focusing on balanced nutrition

and active lifestyle. Coke see increased interest in natural, organic and functional offerings

that contain pure ingredients, less sugar or fat and are sourced locally. The demand for

differentiated and customized products creates an opportunity for emerging, premium brands.

In western societies, trends for young adults and those enjoying longer periods of good health

in retirement create the need for more sophisticated product offerings that cater to the

preferences of these consumers.

Coke launched more new products in 2018 than ever before, greatly expanding our portfolio

to satisfy a broader range of beverage needs. Consistent with their strategy, all the innovation

in Sparkling was in zero sugar variants and reformulated recipes in Fanta and Sprite to reduce

sugar content. Coke has reinvigorated the ready-to-drink tea category with the launch of
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FUZETEA, a sustainably sourced tea blended with natural juice. Beyond these large-scale

launches, they are incubating new brands offering naturalness and simplicity in hand-picked

outlets and introducing or re-introducing premium mixers for socializing-out-of-home

occasions.

Strength

Highest brand equity – Coca-Cola one of the most renowned brand with the highest brand

equity.

Extended global reach – It is sold in more than 200 countries with 9 billion servings per

day of Company products. It has introduced more than 500 new products globally. Some of

these are variations of Coca-Cola beverage, like Coco Cola Vanilla and Cherry Coca-Cola.

Its brands are known to touch every lifestyle and demography.

Greatest brand association and customer loyalty – Coca-Cola is considered one of the

most emotionally connected brands. This valuable brand associated with Happiness.

Largest Brand Valuation – Coca-Cola is listed as the 3rd Best Global Brand on Interbrand’s

annual ranking. Having an estimated brand value of $79.96 billion, it has retained the top

position for many years.

Dominant Market Share – Out of Coca-Cola and Pepsi, the only two largest manufacturers

of soft drinks in the beverage segment, Coca-Cola has the largest market share. Coke, Sprite,

Diet Coke, Fanta, Limca, and Maaza are the highest growth drivers for Coca-Cola.

Unparalleled distribution system – Coca-Cola has the most efficient and most extensive

distribution network in the world. The company has nearly 250 bottling partners globally.
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Acquisitions – Coca-Cola acquired AdeS in 2016. AdeS is the largest soy-based beverage

brand in Latin America. Through this acquisition, Coca-Cola expanded its ready-to-drink

beverage portfolio.

Weakness

Aggressive competition with Pepsi – Pepsi is the biggest rival of Coca-Cola. Had it not been

Pepsi, Coca-Cola would have been the clear market leader in the beverage.

Product diversification – Coca-Cola has low product diversification. Where Pepsi has

launched many snacks items like Lays and Kurkure, Coca-Cola is lagging in this segment. It

gives Pepsi leverage over Coca-Cola.

Health concerns –Carbonated drinks are one of the major sources of sugar intake. It results

in two grave health issues – obesity and diabetes. Coca-Cola is the biggest manufacturer of

carbonated beverages. Many health experts have prohibited the use of these soft drinks. It is

a controversial issue for the company. However, Coca-Cola hasn’t devised any health

alternative or solution for this problem yet.

Opportunity

Introduce new products and diversify its segments – Coca-Cola has the opportunity to

introduce new offerings in health and food segments just like Pepsi. It can contribute to their

revenue, and they can branch out from carbonated drinks.

Increase presence in developing nations – Many regions has hot climate with the highest

consumption of cold drinks. Thus increasing presence in this locations can be excellent

Middle east and African countries as example.

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Bring advanced supply chain system – Coca-Cola business is totally dependent on logistics

and supply chain. Transportation costs and fuel prices are always rise. So coming up with

advanced supply chain network can be a opportunity.

Packaged drinking water – Coca-Cola owned several packaged drinking water brand like

Kinley There is great potential for expansion in this segment for Coca-Cola. So there is an

opportunity to expand in healthy drinks in the market to avoid people criticism.

Threats

Water usage controversy – Coca-Cola has faced many criticisms over its water management

issue. Many social and environmental groups have claimed that the company has a vast

consumption of water in water-scarce regions. Besides, people have alleged that Coca-Cola

is polluting water and mixing pesticides in water to clear contaminants.

Packaging controversy – Greenpeace censured Coca-Cola in its published report in 2017 for

its use of single-use plastic bottles. It has also been criticized over its recycling and renewable

sources.

Direct and indirect competition – Although direct competition from Pepsi is clear in the

market, however, there are many other companies which are indirectly competing with Coca-

Cola. Starbucks, Costa Coffee, Tropicana, Lipton juices, and Nescafe, are the indirect

competitors of Coca-Cola which can threaten its market position.

Marketing Focus

Product or Service

The Coca-Cola Company’s products include beverage concentrates and syrup, with

the main product being finished beverages. The business has over 300 brands of beverages
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around the world the main ones being coke, Fanta, lift, Sprite, Fruitopia 100% fruit juice, ad

PowerAde.

The Coca-Cola company packages its beverages into plastic bottles of sizes 2 liters, 1.25

liters 600mL and 300mL.These are also available in aluminum cans of 375mL.Coca-Cola is

the most well know trademark, recognized by 94 percent of the world’s population. The

business is very successful and holds a very good reputation.

The Coca-Cola Company uses marketing strategies to differentiate its product from its

competitors to gain a competitive advantage. Extension/product differentiate in 2002, the

Coca-Cola Company extended the products of coke and developed the new products coke

with lemon and vanilla coke. This extension responded to consumer demands generated sales

and profit. Innovation in 2001 Coca-Cola had innovated and developed the introduction of

purchasing the company’s product from vending machine via SMS messaging In 2002 the

company innovated and came up with a new package idea, the fridge pack, the fridge pack

consist of cans pack two by six. This innovation has increased consumer awareness and

preferences and increased rate of consumption and profitability.

Normally, people of young age are fond of using Coca-Cola because its taste appeals to them

and it is also usable during parties. Moreover, people who belongs to age of young adult also

prefer to use Coca-Cola in order to digest their food. Furthermore, shopkeepers, restaurants

prefer to purchase Coca-Cola in order to increase their revenue. Its logo is visible on all

bottles and cans which makes it different. Its bottles have particular shapes. Moreover, they

have an excellent market share and growth rate. Moreover, its new beverage package which

appeals to sports and fitness audience. It is prepared from sustainable materials and methods.
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Furthermore, they are the first in the market which offer such features and it also gives them

competitive advantage.

 Additionally, they maintain valuable standards in maintaining consistent quality and safety

of their products which covers from production to bottling and product delivery. In addition

to this, they also measure product and package quality in order to ensure the requirement of

company and customers. Moreover, the cost incurred in order to produce 1 liter is around 10p

– 15p. For 300 ml can, it incurs average cost of 70p, 500 ml incurs 90p and £1.00 for 1 liter.

Location

The Coca-Cola Company sells its products to bottling and canning operation, distribution,

fountain wholesalers and some fountain retailers. These then distributes them to retail outlets,

milk bar and comer stores, restaurants, petrol stations and newsagents.

The Coca-Cola Company is usually available at Wholesalers/distributors, Retail/corner

stores, Restaurants, petrol station.

Indirect distribution the Coca-Cola Company uses the intermediaries in its distribution. That

is, the company does not sell its product directly to its consumers. Coca-Cola Company also

uses the intensive distribution strategy. The business’s products are sold in almost every

outlet including retail outlets, small shops, restaurant, petrol stations, newsagents, school,

sports and entertainment versus from vending machine.

Coca-Cola operates in greater than 200 countries around the world. They transport to the

bottlers in different parts of the world which then complete the bottles and ship to the agents.

After this, bottles are transported with the mode of road to the stockiest then distributor and at

the end to the retailers and makes it available at the shelf for the consumers.
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Its shelf life varies from quantity to quantity. Shelf life of 0.5 liter is 150 days and of 1.5 liter

is 6 months. Room temperature would be suitable for storage whereas direct sunlight would

not be suitable for the storage. It is preferable to consume Coca-Cola within its shelf life

because if it is drunk after its shelf life, it may causes severe health risk.

Promotion

Coca-cola uses advertisong as its main sources of increasing consumer awareness.it mainly

uses the television there are many television and advertising on coca-cola products

whichallows the company’s product to reach a large audience. The latest televsion

advertising for Coca-Cola soft drinks was the ‘You know you want it’advertisement is one of

the oldest one which means ‘if you drink it,you get better of life’. The company also uses the

radio as another source of advertisement. This is a cheaper source of appoarch compared to

the television. Recently,the company benefited from its involvement in the world’s celebrated

games such as the Olympics and the FIFA World cup.where millions were watching these

games, the business had substantial advertising and promotions of the company’s

brands.When it comes to cost of advertising over the past three years, the Coca-Cola

Company’s advertising costs personal selling evey years. Moreover, Coca-Cola Company has

a highly trained sales team,which acts as a representative of the company to the retailers, this

strategy helps to maintain service and product loyalty.It has been demonstrated by the

businness to be highly effective.

They invest many dollars in advertising and promotions in order to maintain market position

and competitive advantage against rival. Moreover, they invest handsome portion of budget

on television advertising. Additionally, online media, social media, magazine ads are also a
 COCA-COLA MARKETING PLAN 26
part of Coca-Cola marketing. Likewise, sales promotions at the store are also play a vital role

in driving revenue during some periods.

Similarly, promotion plays a key role; company uses a mixture of ATL, BTL activities in

order to create awareness and promoting their products. Moreover they pay more attention to

TV ads in order to make a good connection with consumers. Their “Taste the feeling”

campaign continuously reminds their customers regarding joy and happiness about the life of

consumers. On the other side, they also sponsor several sport events like, FIFA world cup,

Olympics, Cricket, and NASCAR and so on.

Price

The price competition based pricing Coca-Cola products are usually priced below, above or

equal to its competition prices. Coca-Cola soft drinks 2Liter - $1.68Pepsi soft drinks 2Liter -

$1.87 Coca-Cola soft drinks 375 multiply by 18 $9.98 Pepsi soft drinks 315 multiply by 24 -

$9.98. Discount price COCA-COLA products are often marked down during sale periods and

special occasion. This will generate sales increase profits. Explanation pricing strategy meet

the competition pricing the Coca-Cola products pricing are set around the same level as its

competitors.

Psychological pricing most of the Coca-Cola products use this method of pricing. For

example for a pack of 375mL multiply by 18 cans of Coca-Cola soft drinks it is priced at

$9.98 instead of $10 this pricing strategy makes consumers perceive the product to be

cheaper. They have a good market share and due to the threat of competitors, its prices are

usually high and profit margin is relatively low as it is FMCG.

 COCA-COLA MARKETING PLAN 27
Moreover, they have a good standard in order to ensure product quality. Further, it is very

critical to meet consistency and reliability in order to meet quality, regulatory and company

standards.

Financial Information

Marketing Budget Worldwide

Below the marketing budget is slightly increasing every year as shown in table and average

4.7 billion of budget is allocated every year and we are expecting to allocate marketing

budget for the future year 6.5 billion so here according to our marketing plan we will be

required 6.5 billion budget. So that we can compete with efficient manner.
 COCA-COLA MARKETING PLAN 28
Tables, Graphs, Diagrams and Pictures:
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CNN Business, “Why Coke is winning the Cola Wars”, Danielle W. Bronner 2018

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