Project On Coca Cola in Pakistan
Project On Coca Cola in Pakistan
Presented to:
Sir. Aslam Masood
Presented by:
Uzma Farrukh M-13395
SanaGhayyur M-13366
ACKNOWLEDGEMENT
We would also like to pay tribute to the benefactor of humanity ‘HOLY PROPHET’
(P.B.U.H.), Who gave us complete knowledge on every aspect and field of life.
In short of words, to express our modest gratitude and recognition to cuddly and loveable
‘PARENTS’, who at each and every moment prays for our success. We are also deeply thankful to
our ‘TEACHERS’ to have taught us from childhood to still especially ‘SIR. ASLAM MASOOD’,
who taught us ‘Strategic Marketing’.
Thank you all, without you this would have not been possible.
We dedicate this report to our parents and friends in recognition of their worth and to our
teachers who are the guiding force for us and it is their effort and hard work that showed us the
path of success and prosperity which would be there for us for the rest of our life.
Our thanks to all those who have generously contributed their theoretical knowledge to this
report including our teachers. Without their understanding and support, completion of this work
would not have been possible.
We hope people find this report useful and the subject matter adds to their knowledge.
“Keep your dreams alive. Understand to achieve anything requires faith and belief in
yourself, vision, hard work, determination, and dedication. Remember all things are possible for
those who believe.” Merlin Olsen
Project Objective 09
Executive Summary 10
Market Demographics 11
Industry Analysis 11
Vision Statement 17
Mission Statement 18
Shared Values 18
Competitors 41-49
Competitive Advantages 52
Customer Analysis 53
SWOT Analysis 54
Market Segmentation 63
Marketing Mix 68
Promotion Strategy 79
Distribution Channels 80
Advertisement Media 82
Conclusion 89
Recommendations 90
Bibliography 91
The objective of this project is to give overview of Marketing Strategy of ‘Coca Cola’ to
provide a broad selection of the nonalcoholic ready to drink beverages to potential consumers in
Pakistan. Analysis carried out on nonalcoholic ready to drink beverages market in terms of size
and growth, covering different segments present in the market.
It includes introduction of the company and the product, internal and external
environment, market and competitor analysis, and marketing mix.
The scope of the project is to discuss the marketing strategies adopted and applied by
‘Coca Cola’, Pakistan. From the last month or so our group is in the process of a continuous
research on marketing functions and strategies adopted by ‘Coca Cola’. These marketing
functions mainly include the marketing mix i-e, Product Strategy, Pricing Strategy, Pricing Tools
and Strategies and Placement and Distribution Strategies as well as other market strategies.
Moreover the project also discusses the analysis of competition, market growth and trend,
opportunity analysis and strategies for creating competitive advantage adopted by ‘Coca Cola’.
We will like to add that the project will provide the readers and listeners very high profile
information about the marketing strategies as a whole and also about the Coca Cola Company. In
the end we hope that the project will result very profitable for the readers and Coca Cola. Your
feedback in the end either critical or substantial will be very highly appreciated.
INDUSTRY ANALYSIS
Beverages are a major consumer able item and there is a huge demand and potential in
this market particularly the nonalcoholic ready to drink soft drink. The nonalcoholic ready to
drink beverage has grown year on year and as a result, the pie is growing bigger every year.
MARKET ANALYSIS
The market analysis investigates both the internal and external business environment. It is
vital that Coca Cola carefully monitor both the internal and external aspects regarding it’s
business as both the internal and external environment and their respective influences will be
decisive traits in relation to Coke’s success and survival in the soft drink industry.
➢ POLITICAL/LEGAL
These are uncertainties that are extremely variable in the political conditions of
Pakistan. Constant political instability does affect the company in terms of building new
relations with new Governments all the time.
SOCIAL FACTORS: Social factors include consumer’s family, small groups and
status. Family members can affect buying behavior in such a way that if number
of children is more in a family than the elders, then the children choice can matter
a lot at the time of soft drink purchase. On the contrary, sometimes people go for
the product that shows their status in society.
CULTURAL FACTORS: Every group and society has its own culture. Cultural
factors affect coke purchasing massively. Different communities and groups of
people have reshaped Pakistan’s culture. In recent years the Bahar/ Basant festival
in Punjab specially become important part of our culture in which sales of coke go
very high. Soft drink is purchased in bulk for the parties and other occasions.
➢ PERSONAL FACTORS
Buyer’s decision is also influenced by personal characteristics such as buyer’s age
and life cycle stage, occupation, personality and self-concept. Age and lifecycle stage
means that people taste and way of living changes with passage of time. Lets say in
earlier stage of life if a person’s best choice for soft drink was Coke classic but as he
proceeds with his life, way of thinking and style may change. He may not opt for classic
coke anymore and might be more interested in diet coke.
In some cases, consumers have descriptive thoughts and beliefs about something.
It may change with the passage of time because mostly all the self beliefs are secondary
and not the core ones.
➢ OTHER FACTORS
Other factors like the Government rules, regulations and technological
advancements have had no significant effect on the product and the company.
INTRODUCTION
Our vision guides every aspect of our business by describing what we need to accomplish in
order to continue achieving sustainable growth.
➢ People: Be a great place to work where people are inspired to be the best they can be.
➢ Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.
➢ Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
➢ Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
➢ Productivity:
Be a highly effective,
lean and fast-moving
organization.
SHARED VALUES
Our values serve as a compass for our actions and describe how we behave in the world.
“Increase the volume of sales up to the maximum level as much as possible during the
current fiscal year.”
The company sets its objective keeping in view the past performance, Historical trends,
current market position, economic condition, macro environment and micro environment factors,
social values, market size and growth rate ,future expectations and predictions
Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and
penned “Coca-Cola” in the unique flowing script that is famous worldwide even today. He
suggested that “the two Cs would look well in advertising.” The first newspaper ad for Coca-
Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and popular
soda fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store
awnings, with the suggestions “Drink” added to inform passersby that the new beverage was for
soda fountain refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr.
Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a
distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed
$50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage
he created. He gradually sold portions of his business to various partners and, just prior to his
death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from
Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete
his pharmaceutical business and focused his full attention on the soft drink. With his brother,
John S. Candler, John Pemberton’s former partner Frank Robinson and two other associates, Mr.
Candler formed a Georgia corporation named the Coca-Cola
Company. The trademark “Coca-Cola,” used in the marketplace
since 1886, was registered in the United States Patent Office on
January 31, 1893.
As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new
building erected in 1898 was the first headquarters building devoted exclusively to the
production of syrup and the management of the business. In the year 1919, the Coca-Cola
Company was sold to a group of investors for $25 million. Robert W. Woodruff became the
President of the Company in the year 1923 and his more than sixty years of leadership took the
business to unsurpassed heights of commercial success, making Coca-Cola one of the most
recognized and valued brands around the world.
Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him
but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler
focused on fountain sales.
1899 … The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could build a business around
bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead
obtained exclusive rights to bottle Coca-Cola across most of the United States (specifically
excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton,
soon joined their venture.
1900-1909 … Rapid growth
The three pioneer bottlers divided the country into territories and sold bottling
rights to local entrepreneurs. Their efforts were boosted by major progress in
bottling technology, which improved efficiency and product quality. By 1909,
nearly 400 Coca-Cola bottling plants were operating, most of them family-
owned businesses. Some were open only during hot-weather months when
demand was high.
1916 … Birth of the contour bottle
Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused
with imitators. A design from the Root Glass Company of Terre Haute, Indiana
won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle
became one of the few packages ever granted trademark status by the U.S. Patent
Office. Today, it's one of the most recognized icons in the world - even in the dark!
1920s … Bottling overtakes fountain sales
As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S.
Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after
their 1923 introduction. A few years later, open-top metal coolers became the
forerunners of automated vending machines. By the end of the 1920s, bottle sales of
Coca-Cola exceeded fountain sales.
Before Santa Claus, however, Coca-Cola relied on images of smartly dressed young
women to sell its beverages. Coca-Cola's first such advertisement appeared in 1895 and
featured a young Bostonian actress named Hilda Clark as its spokesperson.
In the 1970s, a song from a Coca-Cola commercial called "I'd Like to Teach the World to
Sing", produced by Billy Davis, became a popular hit single.
Coca-Cola has a policy of avoiding using children younger than
the age of 12 in any of its advertising. This decision was made as a
result of a lawsuit from the beginning of the 20th century that
alleged that Coke's caffeine content was dangerous to children.
However, in recent times, this has not stopped the company from
targeting young consumers. Coke's advertising is rather pervasive, as
one of Woodruff's stated goals was to ensure that everyone on Earth
drank Coca-Cola as their preferred beverage. This is especially true in
southern areas of the United States, such as Atlanta, where Coke was
born.
Some of the memorable Coca-Cola television commercials between
1960 through 1986, were written and produced by former Atlanta radio
veteran Don Naylor (WGST 1936-1950, WAGA 1951-1959) during his
career as a producer for the McCann Erickson advertising agency. Many
of these early television commercials for Coca-Cola featured movie
stars, sports heroes, and popular singers of the day.
During the 1980s, Pepsi-Cola ran a series of television advertisements showing people
participating in taste tests essentially demonstrating that: "Fifty percent of the participants who
said they preferred Coke actually chose the Pepsi". Statisticians were quick to point out the
problematic nature of a 50/50 result; that most likely all this really showed was that in blind tests,
most people simply cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to
combat Pepsi's ads in an incident sometimes referred to as the cola wars; one of Coke's ads
compared the so-called Pepsi challenge to two chimpanzees deciding which tennis ball was
furrier. Thereafter, Coca-Cola regained its leadership in the market.
Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed
three commercials for the company. In 1994 to commemorate her 5 years with the company,
Coca-Cola issued special Selena coke bottles.
The Coca-Cola Company began operating 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
operates through eight bottlers, four of which are majority-owned by Coca-Cola Beverages
Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala,
Faisalabad, Rahim Yar Khan, Multan and Lahore. The Coca-Cola System in Pakistan serves
70,000 customers/retail outlets. The Coca-Cola System in Pakistan has nearly 3,000 people
working constantly for the company. During the last two years, The Coca-Cola Company in
Pakistan has invested over $130 million (U.S) and coke has successfully provided 56 years of
dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firm
has been continuously changing its slogans and that’s a very creative idea to get the attention of
the customers.
. Here we would like to include some of the popular slogans of coke since the coke journey
started.
➢ Marketing
➢ Finance
➢ Packaging
➢ Sales
➢ Administration
FINANCE DEPARTMENT
The finance department of the Coca Cola Company is responsible for financial record
keeping. This involves keeping records of money received and paid out. The financial records
will be used to produce the annual reports for the shareholders so that they can see the
company performance. The Finance department is also responsible for the management accounts
of the business like marketing etc. The Coca-Cola Company finance department is also
responsible for making budget of the company and for each department like marketing
department or research and development department. They will also be involved in the planning
process like taking over or any major decision.
PACKAGING DEPARTMENT
The packaging department of Coca-Cola Company is responsible for the packaging of the
products. They have to make the packaging attractive so that that product meets the eyes of the
consumers. Bringing new products package is their responsibility. It works with the companies
bottling partners to produce an attractive combination.
SALES DEPARTMENT
The sales department of the Coca Cola Company is to coordinate the selling program.
They also have to make the distribution methods, etc. Also, decide how much to sell and how
ADMINISTRATION DEPARTMENT
This department is essential for keeping the business going. They act as a help support of
the company, it is not the central purpose the business but every business organization would
need this department. Most businesses rely on administration to be organized. They deal with
enquiries, give messages produce documents and give information to any customer. The
complaints that this department will get would be transferred to the research and development
department to make the product better or fix the problem that the consumer is having. These
departments are the most important department of The Coca-Cola Company because they helps
the company to meets the objectives of The Coca-Cola Company i.e. surviving, customer
satisfaction and make more profits. As I said that the help desk department satisfies the customer
by providing the information they needs and taking the complaints and passing to the research
and development departments who improves the products.
Coca Cola is now one of the largest corporations in the world, with a global workforce of
over 90,000 and revenues of $31.9 billion in revenues in 2008. Over the years, the brand equity
of the Coca-Cola trademark, as well as that of other Coca Cola-produced brands, has established
Coca Cola as a prominent figure in the non-alcoholic beverage industry and allowed the
company to keep both revenues and profits high.
Quarterly Earnings : 1Q2009 In the first quarter of 2009, the Coca-Cola Company
posted revenues of $7.169 billion, a 3% decrease from 1Q 2008 figures; net income fell 10% to
$1,348 billion. Although sales volumes actually rose 7% during the quarter, the Coca-Cola
Company was negatively impacted by the dollar's strengthening against the euro, Brazilian real,
Mexican peso, and South African rand.
2Q2009: In the second quarter of 2009, the Coca-Cola Company posted revenues of
$8.267 billion, an 8.6% decrease from 2Q2008 figures; net income grew 43% to $2.037 billion.
Although the company managed to grow worldwide case volume by 4% (with especially
important increase of 33% in India and 14% in China), adverse fluctuations in the foreign
exchange caused the decrease in revenue. On a currency neutral basis, revenues grew by 4%
during 2Q2009, as pricing remained constant during the year. The growth in net income is
deceptively large, as the 2008 figure includes an $843 million, or $0.40 per share, charge due to
changes in the company's accounting policy of its equity investments in its bottlers. Ignoring this
charge, net income would've fallen by 12%.
So there is a positive growth in the market of Coca Cola Company. There is a worldwide
volume increase with strong international growth. This is only due to the innovative marketing
programmers, which has deepened the relationship of the customers and Coca Cola. The
financial health and success of their bottling partners is a critical component of the Coca Cola
Company’s ability to build and deliver leading brands.
In 2008, the company had worked with their bottlers to turn good intentions into reality
by improving the system economics. The results in 2008 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.
Coca Cola is the world renowned soft drink and the company is currently operating
throughout the world. The world wide total is 23.7 Billions. Review according to the regions is
as follows:
So the volume is least in Eurasia & Africa and the most in Latin America. From this data
we can find out that the customers of Coca Cola are increasing which is shown the company’s
per capita income.
On global level Coca-Cola is the most popular brand and market leader controlling 60%
of market share. In Pakistan Coca Cola is the market follower but still in a very strong and stable
position holding 36% of the local market with a growing and increasing market share every year.
Coca-Cola Zero® has been one of the most successful product launch hes in
Coca Cola’s history. In 2007, Coca Cola’s sold nearly 450 million cases
globally. Put into perspective, that's roughly the same size as Coca Cola’s total
business in the Philippines, one of our top 15 markets. As of September 2008,
Coca-Cola Zero is available in more than 100 countries.
ENERGY DRINKS
JUICES/JUICE DRINKS
SPORTS DRINKS
OTHER DRINKS
Coke is one of the main product lines of the Coca Cola Company. It is the one which is
giving maximum revenues to it by different products in this line. Here we have classified some
of its major products in the BCG matrix on the basis of their fame and liking of the people.
CASH COWS
Fanta and Sprite are the products, which the Coca Cola Company can never think of stop
producing. It is the one which make the coke company a huge success; it was one product which
gives billions of dollars as revenue from world over. Whenever the company thinks of launching
its product in a country the first product they launch is coke classic as they know that if don’t
work here then nothing else can.
QUESTION MARK
Products that are still not a big hit as they haven’t consumed much time yet. Sprite 3G,
Sprite Zero, Diet Coke and Kinley are the examples of these question marks as the question
marks as they have not taken much time yet to get a hold of market & not even the large
percentage of the people have tasted it. So it needs time to be fully tested by the company & the
company needs to think whether it should continue the production or should divert to something
new.
DOGS
A product that has not worked good or a product which has been a source of loss.
flavored Fanta is one product that was not a big hit. Even it’s not a long period which flavored
Fanta has consumed but still there are signs that it won’t be a success. So it’s better for the
company to get rid of it.
The competitors to the products of the company mainly lie in the non-alcoholic beverage
industry consisting of juices and soft drinks.
➢ PepsiCo
➢ Nestle
➢ Cadbury Schweppes
PEPSI
Caleb Brandhum, a North Caroline Pharmacist, structure Pepsi
Cola In2 the 1890’s as cure of dyspepsia (indigestion). In 1902, Bradhum
applied for a trade mark, issued ninety seven share of stock and began
selling Pepsi syrup in earnest. In his first year of business he spends $1900
on advertising a huge sum that he sold only 8000 gallons of syrup. In 1905
Bradhum built Pepsi’s bottling plant. By 1907 he was selling 10,000
gallons a year, two years later; he hired a New York advertising agency.
After passing through many troubles for some period now Pepsi is a
market leader in international arence and is available in 187 Nations
throughout the world.
The main dark cola drink of the company Pepsi version of dark cola which is the major
primary competitor to Coke.
which started the rivalry between these
Companies.
Vault is a carbonated beverage that was Mountain Dew MDX is an energy drink
released by the Coca Cola Company in June manufactured distributed by PepsiCo. Under
2005. Mountain Dew brand in 2005.
PowerAde is a sports drink by Coca Cola Gatorade is a non carbonated sports drink
Company and currently number two in the marketed by Quaker Oats Company, a division
sports drink market worldwide. of Pepsi Co. originally made for athletes but
now often consumed as a snack beverage.
Minute Maid is a product line of beverages Tropicana products are an American company
usually associated with orange juice, but now based in Bradenton, Florida, USA, which is
extends to soft drinks of many kinds. The one of the world’s largest producers and
Minute Maid company is now owned by Coca marketers of orange juice. It has been owned
Cola and is world’ largest marketers of fruit by Pepsi Co. Inc. since 1998
juices and drinks.
Barq’s is a brand of root beer notable for being Mug root beer is a brand name of root beer
the only major North American root bear to made by the Pepsi Company.
contain caffeine. It has been bottled start of 20th
century and is currently sold by Coca Cola
Company.
Kinley is a brand of still or carbonated water Aquafina is non carbonated bottled water
owned by The Coca Cola Company. produced by PepsiCo.
Fanta is a soft drink brand owned by The Coca Mirinda is a brand of soft drink. Mirinda is
Cola Company. It is produced and distributed owned by Pepsi Co.
by Coca Cola Company’s bottlers.
Sprite Ice was the first flavor extension for Pepsi Blue is a soft drink made by Pepsi Co.
Coca Cola Company’s Sprite brand soft drink. and launched in mid 2002.
Maaza is a Coca Cola fruit drink brand Slice is a line of fruit flavored soft drink
marketed in India and Bangladesh. manufactured by PepsiCo and introduced in
1984.
NESTLE
Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk
products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced
into the market by Nestle provides a considerable amount of competition to the products of the
Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is
healthier when compared to fizz drinks. The flavoured milk products also have become
substitutes to the products of the company due to growing health awareness among people.
➢ Mecca Cola
➢ Amrat Cola
➢ RC Cola
➢ Shandy Cola
➢ Qibla Cola
➢ Future Cola
➢ Unilever
BUYERS/CUSTOMERS
Coca-Cola has three major and large customers in the market, food street 60,000
cerates /year, MacDonald’s 40,000 cerates/year and Pakistan Railways who buy 50,000
cerates /year.
However, these three customers being large and powerful are in an influential and bargaining
position they can demand discount or others facilities like (boards sign/freezers/coolers etc.) and
impose a threat to switch to their closest rival and competitor Pepsi.
SUBSTITUTES
Nestle products like juices, coffee, mineral water etc. and Shezan juices are substitutes of
Coke for health conscious people and other fresh juices.
RIVALS/COMPETITORS
DIRECT COMPETITORS
The direct competitor of Coca-Cola is Pepsi and that of CCBPL is PCI (Pepsi cola
international) there is always ongoing tuff competition between these two arch rivals with Pepsi
leading with 54% market share and Coke gradually growing and catching up 36% market share
in Pakistan. However on global level the situation is reverse.
Both companies often engage in price cut wars, prize scheme wars and sponsorship wars
to win over each other customers.
INDIRECT COMPETITORS
These include Nestle and Shezan juices who do not pose a threat to Coke as yet but has
the potential to do so as it is exploiting the natural aspect and health issues more and more to
SUPPLIERS
Coca-Cola has authorized suppliers and which do not pose a threat to it. Any how Coke
does have a quality check procedures in its plants to ensure that they get the right kind of
ingredients from suppliers.
FOR EXAMPLE
If market has low quality carets of bottles by chance, they call their sales mangers to lift
up all the stock from the market then inquired from the quality inspector. They take strict notice
of that .and don not take materials from that company again if that default is due to the ingredient
contains by it.
NEW ENTRANTS
Coca-Cola is not afraid of competing .it doesn’t fear losing its share to Mecca-Cola or
other new entrants. The company management believes that new entrants provoke healthy
competition, which will provide Coke with a challenge to hold on to its loyal customers. Besides
it will take a lot of effort on the part of new entrants like Mecca- Cola, Pak-cola to fully launch
its product in Pakistan and capture or even motivate people to switch on to their new product
from Coke.
DIET COKE
Coca-Cola has successfully addressed to the needs of its health conscious overweight
customers with the launch of diet Coke. Its competitor has yet to come up with and counter diet
Coke properly.
WEAKNESSES
Liquid concentrates and power concentrates are both seasonal categories in the market
and their sales peak in the summer in Pakistan. Both Rooh Afza and Jam-e-Shirin are traditional
sandalwood drinks in Pakistan which are highly regarded by consumers. These drinks can be
found in every home in Pakistan, especially in rural areas throughout the summer and are the
mainstay of liquid concentrates.
OPPORTUNITIES
The Government of Pakistan has reduced excise taxes to encourage soft drinks
manufacturers and importers. The Government also reduced other applicable taxes to promise
more profit not only for soft drink manufacturers already in the market but also to attract
potential soft drinks manufacturers to invest in Pakistan. Tax reductions proved extremely
beneficial to the soft drinks market in Pakistan and certainly encouraged and attracted
multinational companies to invest in the country’s soft drinks industry. The government also
decided to tax the beverage industry on capacity of production rather than on actual production
THREATS
Increasing health and hygiene awareness among Pakistanis has greatly increased sales of
fruit/vegetable juice products. Both the government and the media have started health awareness
campaigns to make Pakistanis realize that consumption of fruit/vegetable juice is as essential as
eating food. Fruit/vegetable juices are doing very well in both urban and rural areas. On the other
hand, health and hygiene awareness has also led to increased sales of bottled water in Pakistan.
Previously bottled water was targeted on at major cities where consumers are more health-
conscious and aware of the difference between bottled water and tap water. Nowadays, health
conscious rural inhabitants also drink bottled water due to health concerns.
Strengths Weaknesses
Threats Opportunities
STRENGTHS
Coca Cola is an extremely recognizable company. Popularity is one of its superior
strengths that are virtually incomparable. Coca Cola is known very well worldwide. It's branding
is obvious and easily recognized. Things like, logos and promos shown on t-shirts, hats, and
collectible memorabilia. Without a doubt, no beverage company compares to Coca Cola's social
popularity status. Some people buy coke, not only because of its taste, but because it is widely
accepted and they feel like they are part of something so big and unifying. At the other end of the
spectrum, certain individuals choose not to drink coke, based solely on rebelling from the world's
idea that coke is something of such great power. Overwhelming is the best word to describe Coca
Cola's popularity. It is scary to think that its popularity has been constantly growing over the
WEAKNESSES
Coca Cola is a very successful company, with limited weaknesses. However they do
have a variety of weaknesses that need to be addressed if they want to rise to the next level. Word
of mouth is probably a strength and weakness of every company. While many people have good
things to say, there are many individuals who are against Coca Cola as a company, and the
products in which they produce. Word of mouth unfortunately is something that is very hard to
control. While people will have their opinions, you have to try to sway their negative views. If
bad comments and views are put out to people who have yet to try Coca Cola products, then that
could produce a lost customer which shows why word of mouth is a weakness. Another aspect
that could be viewed as a weakness is the lack of popularity of many of Coca Cola’s drinks.
Many drinks that they produce are extremely popular such as Coke and Sprite but this company
has approximately 400 different drink types. Most are unknown and rarely seen for available
purchase. These drinks do not probably taste bad, but are rather a result of low profile or
nonexistent advertising. This is a weakness that needs to be looked at when analyzing their
company. Another weakness that has been greatly publicized is the health issues that surround
some of their products. It is known that a popular product like coke is not very beneficial to your
body and your health. With today’s constant shift to health products, some products could
possibly loose customers. This new focus on weight and health could be a problem for the
product that is labelled detrimental to your health.
OPPORTUNITIES
Coca Cola has a few opportunities in its business. It has many successful brands that it
should continue to exploit and pursue. Coca Cola also has the opportunity to advertise its less
popular products. With a large income it has the available money to put some of these other
beverages on the market. This could be very beneficial to the company if they could start selling
these other products to the same extent that they do with their main products. Another
opportunity that we have seen being put to use before is the ability for Coca Cola to buy out their
competition. This opportunity rarely presents itself in the world of business. However, with Coca
Cola’s power and success, such a task is not impossible. Coca Cola has bought out a countless
THREATS
Despite the fact that Coca Cola dominates its market, it still has to deal with many
threats. Even though Coca Cola and Pepsi control nearly 40% of the entire beverage market, the
changing health-consciousness attitude of the market could have a serious effect on Coca Cola.
This definitely needs to be viewed as a dominant threat. In today’s world, people are constantly
trying to change their eating and drinking habits. This could directly affect the sale of Coca
Cola’s products. Another possible issue is the legal side of things. There are always issues with a
company of such supreme wealth and popularity. Somebody is always trying to find fault with
the best and take them down. Coca Cola has to be careful with lawsuits. Health minister could
also be looked at as a threat. Again, some people may try to exploit the unhealthy side of Coca
Cola’s products and could threaten the status and success of sales. Other threats are of course the
competition. Coca Cola’s main competition being Pepsi, sells a very similar drink. Coca Cola
needs to be careful that Pepsi does not grow to be a more successful drink. Other product such as
juices, coffee, and milk are threats. These other beverage options could take precedent in some
people’s minds over Coca Cola’s beverages and this could threaten the potential success it
presents again.
There is no set time period for the PLC and the length of each stage may vary. One
product’s entire life cycle could be over in a few months. Another product could last for years.
Also, the Introduction stage may last much longer than the Growth stage and vice versa.
In this stage the marketing strategies used by Coca Cola were as follows:
➢ Product improvement
➢ New models were developed
➢ It entered new market segments
➢ It enlarged its distribution channels.
DECLINE STAGE
This is the stage in which sales of the product begin to fall. Either everyone that wants to,
has bought the product or new, more innovative products have been created that replaces that
product. The only way to increase sales during this period is to cut the cost of the product.
Coca Cola Company can also identify its expansion through the ANSOFF approach.
MARKET PENETRATION
Market Penetration is the strategy, which every company has to opt when it reaches a
maximum height of growth. Coca Cola in Pakistan is doing market penetration through the
selling its products to the business buyer, who are huge multinational organizations like
McDonalds, Subway, Dunkin Donuts and many more. They are also keeping the local market in
focus. Fri Chiks, AFC, PFC are examples of the buyers in the local market. They are selling the
Coca Cola as the only beverage in their restaurants.
MARKET DEVELOPMENT
Market Development is exploring new markets for the products you are already selling.
Many flavors of Coca Cola are not being sold in Pakistan. Coca Cola can develop a new market
if they introduce those flavors in Pakistan. Many people in Pakistan want a change in the
beverage industry, as they are having the same flavors from many years.
DIVERSIFICATION STRATEGY
Diversification strategy is one which every company really wants to practice. There are
lots of chances of growth but the risk factor is also there. The company can manufacture
products, which are not manufactured by it before. Coca Cola is only dealing in beverages but it
can also manufacture its own snacks item as the company name is known almost all over the
world. So it can cash the name by producing the items, which are eaten with the beverages.
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who
might require separate products or marketing mixes.
➢ Segment size
➢ Segment growth
➢ Segment structural attractiveness and company objectives and resources.
There is no single way to segment a market. The market has to try different segmentation
variables, alone and in combination, to find the best way to view the market structure.
TARGET MARKETING:
This is the process of evaluating each market segment’s attractiveness and selecting one
or more segments to enter.
After evaluating different segments, the company must now decide which and how many
segments it will target, because buyers have unique needs and wants, a seller could potentially
view each buyer as a separate target market. Ideally, then, a seller might design a separate
marketing program for each buyer. There are three types of market segments.
Coca cola serves its products using mass marketing technique, which obviously falls in
undifferentiated marketing, and undifferentiated marketing means no segmentation, but there are
minor factors on which we can say that the coke segments its products and then targets the
customers somehow. These factors are as follows.
GEOGRAPHIC SEGMENTATION
INTERNATIONALLY
Coke segments its products country wise and region wise, here the most important thing
is the taste and the quality, it varies according to the taste and the income level of the people in
that country, and i.e. Third world counties are given low quality taste.
Coca Cola Company tries to satisfy the needs of a whole line of different people. They
have drinks that target different, age groups, ethnic groups, sexes, lifestyles, etc.
CLIMATIC
Weather is the third major factor in effecting the Coke’s selling. In coke marketing, main
idea is to serve it cold, so we can say that, they focus more on hot areas of the world, i.e. middle
east etc and there sale increase in summer. This is underdeveloped market so the coke’s
consumption in summers is 60% and in winters is 40%.. It is a source of refreshment when a
person is thirsty due to the hot weather.
LOCALLY
In Pakistan the coke segments more in urban and suburban areas as compare to rural. 35
% population resides in urban areas and 65% population lives in rural areas in Pakistan. Coca
Cola is focusing on urban areas as people there are more inclined towards such beverage while
people in rural areas are more inclined drinking lassi and desi drinks.
DEMOGRAPHIC SEGMENTATION
GENDER
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 TYPE
Coca Cola introduces its economy pack, and that’s how they focus family and groups.
INCOME
Coca Cola segments different income levels by packaging. Like for small income people
it has small returnable glass bottle, for middle people it has non returnable bottle and for higher
income people it has coke tin.
PSYCHOGRAPHICS SEGMENTATION
All psychographics variables the social class, lifestyle, occupation, level of education and
personality, Coca Cola segments everyone, but again it is their packaging which is different for
different consumers.
SOCIAL CLASS
LEVEL OF EDUCATION
A company has to make promotional strategies keeping in view the customer level. If the
percentage of education is high in a country then through advertisements people can be made
well aware of their product and can convey their message easily. Promotion and education has a
direct relationship.
BEHAVIORAL SEGMENTATION
It is how people perceive a specific product, in short psychological analysis of a product.
Coca Cola all over the world is recognized as a quality drink and therefore people drink it
without any hesitation whenever they are thirsty or otherwise. So marketers of Coca Cola have
made it a drink for all people and for diabetic people they introduced diet Coke.
OCCASIONS
A very special occasion for the people of Pakistan Ramzan, people emphasis on enjoying
Coca-Cola at “Iftar” and then on Eid with friends & family with super price off promotion.
BENEFITS SOUGHT
Sometimes, for the promotion strategy of coke, Coca Cola Company introduce prizes in
the top cover. So they segment people by benefit sought, i.e. by giving them prizes.
CORE PRODUCT
Core benefit is that it fulfills the thirst.
ACTUAL PRODUCT
Design: Pet bottles, returnable glass bottles, economy packs.
Quality: Quality differs with respect to country for example. Coca-Cola Can quality that
is available in Middle East is certainly different as compared to Coke Can available in Pakistan.
PRODUCT CLASSIFICATIONS
Coke is categorized as a convenience product, because the purchasing rate is very high
and this is the product that is bought very frequently.
Brand
Existing New
BRANDING
BRAND EQUITY
As far as coke is concerned brand equity for the customers is very high. People are highly
brand loyal.
BRAND STRATEGY
The following is the brand strategy of Coke
➢ LINE EXTENSION
➢ BRAND EXTENSION
Brand extension means using a successful brand name lets say Coca-Cola and then launching
new product for example cherry coke. This was an example of brand extension.
➢ MULTI-BRANDING
It means introducing additional brands in the same category. For example Coca-Cola not
only introduced coke as a brand but also sprite and Fanta.
➢ DIVERSIFICATION
It means introducing new product with the new brand name. It means diversification but this
is something Coca-Cola has not adopted for as yet.
PRICING STRATEGIES
DISCOUNTS
Coca Cola offers various discounts to those retailers who have the maximum sales of
Coca Cola products on daily, monthly and on seasonal basis. Some of the main discounts given
to the retailers are as follows:
QUALITY DISCOUNT
Following are discounts offered by Coca Cola.
➢ 1/10 DISCOUNT
I.e. one case of Coca Cola is free on buying 10 cases of Coca Cola at one time.
➢ 2/20 DISCOUNT
I.e. two cases of Coca Cola are free on buying 20 cases of Coca Cola at one time.
SEASONAL DISCOUNT
Following are discounts offered by Coca Cola.
Coca Cola also offers seasonal discounts schemes by reducing price in Ramadan and on
Eid. Coca Cola also offers trade in allowance for retailers.
➢ 3 B – F DISCOUNT
I.e. sometimes, especially in the off-season duration, in order to increase the sale of Fanta
and Sprite, 3-BF discount is given (i.e.) 3 bottles free on purchasing every case of Fanta and
Sprite.
INCENTIVES
Mainly two types of incentives are given by the Coca Cola:
CREDIT
There is no credit system in the beverage industry. Every single bottle is sold on the cash
basis.
SPECIAL OFFERS
Coca Cola gives special offers to consumers on special occasions like Ramadan and Eid
days instead of decreasing the price of the products, some special packs like Pakkora Mix, Chat
Massala, or Free Drinks with Liter Bottles are offered.
Price
More
Benefits
Same
Less
Here if we talk about more price and more benefits, we can discuss Coca Cola and Pepsi.
As both are the market leaders and 90% market share of Pakistan beverage industry is secure by
them & the rest 10% is secure by the rest.
And we can also take Coca Cola and Pepsi as challenger for each other as both of them
provides more for same, more for less & same for less. As they are giving their customers more
benefits for same price and also more benefits for less price with respect to different packaging
sizes.
Traditionally packaging decisions where based primarily on cost and production factors,
the primary function of the package was to contain and protect the product the product. In recent
time, however humorous factors have made packaging an important marketing tool. These
factors include all acting attention describing the product making the sales.
Packaging involves designing and producing the container or wrapper for product. The
package may include the product’s primary container a secondary package that is thrown away
when the product is about to be used and shipping package necessary to store , information
appearing the product labeling printed information appearing on or with the packaging is also
part of packaging. Label ways rouge from toys attached from product to the complex graphic that
identify the product or brand, such as the product the label weight also described several things
about the product that made its contents how it is to be used.
Coca-Cola products, almost all of them are available in bottles of 250 ml, 500 ml pet jar,
1000ml, 1500 ml and 2000 ml bottles as well as 330 ml cans.
➢ In strip packaging there is aluminum foil on both the sides. Strip packing is done
for providing stability to those products which are having less productivity.
➢ In facilitating branding and advertising of products.
➢ In serving as a silent salesman. It induces the buyers to make re order.
➢ It has got display value.
➢ It helps the seller to increase his sales and obtained higher prices than he could get
from unpacked good.
➢ Printed literature containing “Instruction to use the product” can be easily passed
on to the consumers by putting in the package.
➢ Packaging given the product a prestige an individually and identity which the
goods sold in loose form do.
GETTING SHELVES
They get or purchase shelves in big departmental stores and display their products in
those shelves in that style which show their product clearer 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.
DIRECT SELLING
In direct selling they supply their products in shops by using their own transports. They
have almost 450 vehicles to supply their bottles. In this type of selling company have more profit
margin.
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.
➢ Vizi cooler
➢ Freezers
➢ Display racks
➢ Free empty bottles and shells for bottles
The field of advertisement is one area where Coca-Cola has always emphasized.
In year 2000 Coca-Cola unveiled the biggest advertising billboards in the history of
Pakistan. Each unveiling was marked by entertainment and light shows watched by thousands of
people. Similarly in July 2000 Coca-Cola launched its first under the crown promotion by the
name of Dream Vacations in which the consumers could collect caps of promotional bottles of
Coca-Cola like Sprite, Fanta and Coke.
ADVERTISEMENT OBJECTIVE
Type of advertising with respect to product life cycle that Coca-Cola adopts is reminder
type. The reason behind this fact is that coke is such a product that is at the maturity level
currently so for such a product companies mostly go for reminder type of advertisement so that
they can penetrate more and more and same is the case with Coke.
ADVERTISING STRATEGY
Before creating advertising message the Coca-Cola Company gives lots of time to the
factor that the message must gain customer attention. This is basically called “Clutter Buster”
means that only that advertisement will leave impact on customer mind that has some specialty
or uniqueness in it. For example in India Coke current slogan “Thanda Matlab Coca-Cola” has
gained reasonable customer attention.
PRINT MEDIA
They often use print media for advertisement. They have a separate department for print
media.
POS MATERIAL
POS material mean point of sale material this includes: posters and stickers that are
displayed in the stores and in different areas.
TV COMMERCIALS
As everybody know that TV is a most common entertaining medium so TV commercials
are one of the most attractive way of doing advertisement. So Coca Cola Company does regular
TV commercials on different channels.
➢ Sales volume
➢ Profitability
➢ Target volume
SALES VOLUME
Coke determines its yearly budget through the sales volume. They first concentrate on the
thing is “what is the condition of their sales?” if the condition is good of their sales then they
definitely increase their production and sales volume. Otherwise they concentrate on their old
strategies.
PROFITABILITY
The second thing through which they determines budget is the “profit” .if they r getting
profits with the high margin, then they definitely want to increase their profits in the next coming
year. Every organization runs on the basis of getting high profits. No organization wants to face
Loss in their business. To get profit is the first priority of the Coke.
TARGET VOLUME
To run the business every industry has some targets, which they want to achieve in a
specific time period. If industry achieves those goals in that period then for the coming year it
increases the volume of the target.
So Coke Follow the same thing it has also some goals and targets to achieve in the given
time period. When they succeed to achieve that target then they increase their target volume in
the next year.
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 signed a sponsorship agreement with eight of Pakistan’s National cricket
players. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it
consumers & masses invested in the opportunity and launched a massive campaign on mass
media showing all these cricket stars endorsing & complimenting Coca-Cola brand. The Coca-
Cola Company developed three TV commercials & four testimonial ads with the player & ran
them on the national net work during various cricket matches. These bold steps taken by the
Coca-Cola marketing unit acclaimed them many acknowledgements across the board. This
campaign helped Coca-Cola to establish its association with the game & the player.
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 entertainment for the youth of Pakistan. Coca-Cola brought Abrar
to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured
throughout the country.
The TVC campaign focused on the hectic lifestyle of a pop star who found respite & relief
through Coca-Cola in short moments that he had to himself during a concert. Coca-Cola’s brand
positioning of providing deep down refreshment for the body, soul & mind were captured accurately in
the TVC & depicted aptly how the drink completes the moment for Abrar.
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
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.
We have concluded from this detailed report that despite the fact Coca Cola currently
occupies the market leadership position overall but it does not guarantee that the company will
sustain its position in the future as well. In Pakistan as compared to Pepsi, Coca-Cola has less
number of consumers as Pepsi’s market share in Pakistan is approximately 54% where as Coke
market share is hovering about 36%, hence the conclusion is that Coca-Cola must enhance
factors such as relationship marketing, innovation and technology especially in Pakistan to attain
market leader position in this region as well.
After completing our project we have come up with following recommendations for the
Coca Cola Company, which are following.
➢ Currently in Pakistan there are only two flavor of Coke available, company can extend
their portfolio by introducing new flavors.
➢ According to the survey, conducted by the international firm Pakistani people like less
sweet cola drink. So for this Coca-Cola Company should think about bringing a new
product for example new diet flavors, in the market to fulfill the local need.
➢ Marketing team should try to increase the availability of Coke in rural areas.
➢ Coca Cola Company should think about producing Coke Can locally as well because
currently coke Cans are only smuggled from abroad and sold at high price. Company can
capitalize on this factor.
www.cocacola.com
www.thecocacolacompany.com
www.wikipedia.com
www.google.com
Local Newspapers
Jamal Hassan