Marketing: Marketing is a process that enables organizations to satisfy needs and wants of customers with value addition.

Current Marketing project

Introduction Man has always wanted to discover and invent. His restless nature has always inspired him to learn more and more. Similar is the case with my assigned market project that is max cola.

Idea generation The main idea to launch max cola in the market IS TO INDRODUCE A NEW PRODUCT RANGE IN THE MARKET .

History
Name Launched Discontinued Notes Picture

max-Cola 2011

The original version of max-Cola.

caffeine free max 2011 cola New /max 2011 -Cola II" Max lemon 2011 cola 2011 Max cola vanila Max cola 2011 c2 Max cola lime Max cola resberry Max zero cola

The caffeine free version of maxCola. currently available. AVAILABLE IN EVERY RETAIL STORE Available in every major cities of Pakistan. Available nation wide. It was reintroduced in June 2011 by popular demand. Was only available in Japan, Canada, and the United States.

2011

Max cola 2011 black max-Cola 2011 Black Max cola 2011 leo Max cola Sango

Was replaced by Vanilla Coke in June 2011 Only available in the United States, France, Canada, Czech Republic, Only available in Zealand and Japan.

Product portfolio

Many Products are physical objects that you can own and take home. But the word product means much more than just physical goods. In marketing, product also refers to services, such as holidays or a movie, where you enjoy the benefits without owning the result of the service. Businesses must think about products on three different levels, which are the core product, the actual product and the augmented product. The core product is what the consumer is actually buying and the benefits it gives. Max Cola customers are buying a wide range of soft drinks. The actual product is the parts and features, which deliver the core product. Consumers will buy the coke product because of the high standards and high quality of the Max cola products. The augmented product is the extra consumer benefits and services provided to customers. Since soft drinks are a consumable good, the augmented level is very limited. But max Cola do offer a help line and complaint phone service for customers who are not satisfied with the product or wish to give feedback on the products.Around 300 beverages are produced by this company including; lemon Cola, ax cola, black max cola and Powder juices too. Packaging also varies from the size of 300mL, 600mL, 1.25 liters, 2 liters and cans of 375mL. One of the well-known and best trademarks that is recognized by around 94% of the population. Max cola holds the best reputation in the market too.The MAX-Cola Company is the largest manufacturer, distributor and marketer of

nonalcoholic beverage concentrates and syrups in the pakistan. Finished beverage products bearing our trademarks, sold in the United States since 1886, are now sold in more than 200 countries and include the leading soft drink products in most of these countries. In this report, the terms Company, we, us or our mean The MAX-Cola Company and all subsidiaries included in our consolidated financial statements. Our business is nonalcoholic beverages principally carbonated soft drinks, but also a variety of noncarbonated beverages. We manufacture beverage concentrates and syrups, as well as some finished beverages, which we sell to bottling and canning operations, distributors, fountain wholesalers and some fountain retailers. We also produce market and distribute juices and juice drinks and certain water products. In addition, we have ownership interests in numerous bottling and canning operations. We were incorporated in September 1919 under the laws of the State of Delaware and succeeded to the business of a Georgia corporation with the same name that had been organized in 1892. Our Company is one of numerous competitors in the commercial beverages market. Of the approximately 50 billion beverage servings of all types consumed worldwide every day, beverages bearing our trademarks (Company Trademark Beverages) account for more than 1.2 billion.It further depends on the capacity of our people, together with our bottling partners, to find new and appealing ways to deliver those brands to thirsty people everywhere. The famous max-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in 1885.Robinson came up with the name and chose the logo's distinctive cursive script. The typeface used, known as Spenserian script, was developed in the mid 19th century and was the dominant form of formal handwriting in the United States during that period. Robinson also played a significant role in early max-Cola advertising. His promotional suggestions to Pemberton included giving away thousands of free drink coupons and plastering the city of Atlanta with publicity banners and streetcar signs. Max
cola Giant soft drink company max Cola has come under intense scrutiny by investors due to its inability to effectively carry out its marketing program. Consequently it is seeking the help of Polarities Marketing Company Pty Ltd to develop a professional marketing plan which will help the business achieve its objectives more effectively and efficiently. The max-Cola Company manufactures, distributes, and markets nonalcoholic beverage concentrates and syrups worldwide. It principally offers sparkling and still beverages. The companys sparkling beverages include nonalcoholic ready-to-drink beverages with carbonation, such as energy drinks, and carbonated waters and flavored waters. Its still beverages consist

of nonalcoholic beverages without carbonation, including noncarbonated waters, flavored waters and enhanced waters, noncarbonated energy drinks, juices and juice drinks, ready-to-drink teas and coffees, and sports drinks. The max-Cola Company also offers fountain syrups, syrups, and concentrates, such as flavoring ingredients and sweeteners. It markets its nonalcoholic beverages primarily under the max-Cola, Diet Coke, Fanta, and Sprite names. The company sells its finished beverage products primarily to distributors, and beverage concentrates and syrups to bottling and canning operators, distributors, fountain wholesalers, and fountain retailers. The max-Cola Company was founded in 1886 and is headquartered in ATLANTIC. The max cola Company One max- Plaza 123 mall road lahore. Phone: 404-676-2121 Website: http://www.maxcola.com Index Membership: Dow Jones Composite Sector: Consumer Goods Industry: Beverages - Soft Drinks Full Time Employees: 92,800 Atlanta, Georgia.

Product development process

The development strategy of MAX Cola comprised redesigning of its brand development policies and techniques to keep up with the changing mindset of its consumers. Earlier, this brand believed in the following:

Afford ability Availability Acceptability However, this brand development strategy of MAX Cola was re worked to stress on the following instead: Price value Preference "Pervasive penetration". The essence of brand building of the company lies in the fact that it wants its consumers accessibility to be "within an arm's reach of desire". In an attempt to build its brand identity, as many as 20 brand attributes are tested every month involving as many as 4000 customers. The brand development strategy

of MAX Cola is effective as it has been able to construct, manage as well as maintain its brand image since yesteryears. Another reason why this brand has gained unanimous acceptance all around the globe is due to the fact that it has been able to connect very well with its consumers. This implies brand loyalty. Brand loyalty has been instrumental in keeping up the brand image of Max cola. It believes in shelling out the best so that the consumers are retained by default. A part of the brand building technique is also to enhance "purchase frequency". The company has also invested in various advertisement campaigns often engaging the services of celebrities around the globe. In addition to the consumers, there is another category of consumers, who increase the consumer base and they constitute the collectors of the brand. The collectors usually indulge in collecting old as well as upcoming logos of Max cola, bottles and literary matter. With regard to the brand development of MaX Cola Zero, the company came out with an advertisement, which was quite different from the conventional ones. In this regard, (no calorie beverage), it has shelled out three types of products. MAX Cola Classic Diet MAX Coke Cola Zero. There are few experts who believe that when MAX Cola had the tag line of "The Real Thing", it was really that but with the invention of various categories of coke, the "real thing" changes to "many things", and the original flavor is usually lost. Hence, the brand building strategies should be such that it does not confuse people and is able to retain consumers despite the fact that several new non alcoholic beverage firms are on the anvil.

PRODUCT RELATED STRATEGIES

Our Company has adopted an approach to its business that is based on the following strategic priorities: Accelerate carbonated soft-drink growth, led by MAX-Cola Selectively broaden our family of beverage brands to drive profitable growth Grow system profitability and capability together with our bottling partners Serve customers with creativity and consistency to generate growth across all channels Direct investments to highest-potential areas across markets Drive efficiency and cost effectiveness everywhere
MORE OVER,THE PRIORITIES ARE OF MANY KINDS SUCH AS

TASTY NEW PRODUCT CLEAR AND PURE CONSUMABLE THIRST ENERGY MIX FLAVOURS

FORMULIZED

Target market
Selecting Target Market Once the situation analysis is complete, and the marketing objectives determined, attention turns to the target market. The soft drink market is very large, and the business cannot be all things to all people, so it must choose which market segments have the greatest potential. The target market is the group of customers on whom the business focuses attention. The target market is where max Cola focuses its marketing efforts as it feels this is where it will be most productive and successful. The target market for max cola is very wide as it satisfys the needs for many different consumers, ranging from the healthy diet consciousness through Diet Coke to the average human through its best selling drink regular max cola. Most Coke products satisfy all age groups as it is proven that most people of different age groups consume the max Cola product. This market is relatively large and is open to both genders, thereby allowing greater product diversification. There are four broad ways which max Cola can segment its market: -> Mass marketing -> Concentrated marketing -> Differentiated marketing -> Niche marketing The most apparent method used by Max cola is with no doubt the differentiated marketing method as Coke satisfys a range of different markets. Diet coke satisfys the weight consciousness, regular coke, sprite, fanta the average human, coffee, iced tea etc. Each group of beverages satisfies a particular group of people but majority the average human. Ever wondered why marketers only target certain markets or how these markets are identified? Think about universities for a moment: how do they identify which students to communicate with about degree schemes? What criteria do they use? Do they base it on where you live, your age, your gender, or is it just about your entrance scores? Do they market to postgraduate and undergraduate audiences differently, what about international and domestic student groupsis this difference important for the effective marketing of higher education services to prospective students?

we consider the way organizations determine the markets in which they need to concentrate their commercial efforts. This process is referred to as market segmentation and is an integral part of marketing strategy, discussed as this helps clarify the underlying principles of segmentation. Consideration is also given to the techniques and issues concerning Market segmentation within consumer and business-tobusiness markets. The method by which whole markets are subdivided into different segments is referred to as the STP process. STP refers to the three activities that should be undertaken, usually sequentially, if segmentation is to be successful. These are segmentation, targeting, and positioning.
The Companys operating structure includes the following operating segments, the first five of which are Also sometimes referred to as strategic business units: North America Africa Asia Europe, Eurasia and Middle East Latin America Corporate This structure is the basis for our Companys internal financial reporting. The North America segment Includes the United States, Canada and Puerto Rico. During the first quarter of 2002, the Egypt Region was reclassified from the Europe, Eurasia and Middle East segment to the Africa segment. At the date of this report, the heads of the strategic business units are as follows: Donald R. Klaus (North America), Alexander B. Cummings, Jr. (Africa), Mary E. Minnick (Asia), A.R.C. Sandy Allan (Europe,Eurasia and Middle East) and Jose Octavio Reyes (Latin America). See Item X.Executive Officers of the Company. The heads of the strategic business units report to Steven J. Heyer, President and Chief Operating Officer of the Company. Steven J. Heyer reports to Douglas N. Daft, Chairman of the Board of Directors and Chief Executive Officer of the Company. Except to the extent that differences between operating segments are material to an understanding of our business taken as a whole, the description of our business in this report is presented on a consolidated basis.

Product positioning

Positioning is what the customer believes about your product's value, features, and benefits; it is a comparison to the other available alternatives offered by the competition. These beliefs tend to based on customer experiences and evidence, rather than awareness created by advertising or promotion. Marketers manage product positioning by focusing their marketing activities on a positioning strategy. Pricing, promotion, channels of distribution, and advertising all are geared to maximize the chosen positioning strategy. Generally, there are six basic strategies for product positioning:

1. By attribute or benefit- This is the most frequently used positioning strategy. For a light beer, it might be that it tastes great or that it is less filling. For toothpaste, it might be the mint taste or tartar control. 2. By use or application- The users of Apple computers can design and use graphics more easily than with Windows or UNIX. Apple positions its computers based on how the computer will be used. 3. By user- Facebook is a social networking site used exclusively by college students. Facebook is too cool for MySpace and serves a smaller, more sophisticated cohort. Only college students may participate with their campus e-mail IDs. 4. By product or service class- Margarine competes as an alternative to butter. Margarine is positioned as a lower cost and healthier alternative to butter, while butter provides better taste and wholesome ingredients. 5. By competitor- BMW and Mercedes often compare themselves to each other segmenting the market to just the crme de la crme of the automobile market. Ford and Chevy need not apply. 6. By price or quality- Tiffany and Costco both sell diamonds. Tiffany wants us to believe that their diamonds are of the highest quality, while Costco tells us that diamonds are diamonds and that only a chump will pay Tiffany prices.In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market. The original work on Positioning was consumer marketing oriented, and was not as much focused on the question relative to competitive products as much as it was focused on cutting through the ambient "noise" and establishing a moment of real contact with the intended recipient. In the classic example of Avis claiming "No.2, We Try Harder", the point was to say something so shocking (it was by the standards of the day) that it cleared space in your brain and made you forget all about who was #1, and not to make some philosophical point about being "hungry" for business. The growth of high-tech marketing may have had much to do with the shift in definition towards competitive positioning. An important component of hi-tech marketing in the age of the World Wide Web is positioning in major search engines such as Google, Yahoo and Bing, which can be accomplished through Search Engine Optimization , also known as SEO. This is an especially important component when attempting to improve competitive positioning among a younger demographic, which tends to be web oriented in their shopping and purchasing habits as a result of being highly connected and involved in social media in general

Max cola also had positioned its place in the world wide and has its market shares in all over the countries of the world.

Max cola positioning process

Generally, positioning process involves: 1. Defining the market in which the product or brand will compete (who the relevant buyers are) 2. Identifying the attributes (also called dimensions) that define the product 'space' 3. Collecting information from a sample of customers about their perceptions of each product on the relevant attributes 4. Determine each product's share of mind 5. Determine each product's current location in the product space 6. Determine the target market's preferred combination of attributes (referred to as an ideal vector) 7. Examine the fit between: o The position of your product o The position of the ideal vector 8. Interest and started a conversation, you'll know you're on the right track.

Measuring the positioning

Positioning is facilitated by a graphical technique called perceptual mapping, various survey techniques, and statistical techniques like multi dimensional scaling, factor analysis, conjoint a 'max -Cola's' brand personality reflects the positioning of its brand. Positioning is in the mind of the consumer and can be described as how the product is considered by that consumer. When researching the positioning of a product, consumers are often asked how they would describe that product if it were a person. Max cola has positioned itself as a part of their daily life. This affinity between the brand and the consumer leads to a high degree of loyalty and makes the purchasing decision easier. Max Cola has been successful by using Unique Selling preposition as Live the coke side of life. Cole basically associates this brand with emotions and joy. We name of max into mind the first thing comes into mind is fun and entertainmentnalysis, and logic analysis.

Packaging and labeling

Packaging, which is not as highly perceived by businesses, is still an important factor to examine in the marketing mix. Packaging protects the product during transportation, while it sits in the shelf and during use by consumers, it promotes the product and distinguishes it from the competition. Packaging can allow the business to design promotional schemes, which can generate extra revenue and advertisements. Max-Cola has benefited from The Wadeville max Cola Canners packaging the product with incentives and endorsements facility produces over 58 different on the labeling as a promotional strategy to increase its SKUs.

volume of sales and revenue. The max Cola Canners plant in Wadeville, South Africa is the fourth-largest beverage canning plant in the world producing a range of max Cola carbonated beverages. The facility produces over 24 million cases of canned drinks per year from seven formulation and canning lines. One of these lines is the largest in the southern hemisphere and There are seven canning lines at the has a production capacity of over 2,000 cans per minute. Wadeville plant, producing over 200,000 cans per day. Because of the sheer volume of production, one of the big problems at the plant is keeping track of the inventory. An automated system to increase control and provide traceability was therefore badly needed. The plant produces over 58 different canned SKUs (stock keeping units) and 200,000 340ml cans per day. Production The Comet system can label pallets Between 2005 and the end of 2007 a new automated after the cases have collated to labelling system was introduced into the Wadeville introduce barcode traceability. facility, making the manual labelling of shrink-wrapped pallets unnecessary. The system uses specialised on-line printers, which are linked to the larger production control system. This means that four of the seven production lines at the facility now have the ability to barcode label shrinkwrapped cans and entire pallets (90 cases of 24 cans) in real time, before they enter the warehouse. The shrink- The CimJet system includes a wide of product-specific wrapped cases of 24 x 340 ml cans are labelled using a range information when it creates a label. Videojet inkjet printer. It also adds a product code and "The plant produces over 58 different canned SKUs and description, as well as a 36character barcode. 200,000 340ml cans per day." The pallet labelling system and printers are controlled by an expansion of the existing SCADA (supervisory control and data acquisition) system into the packaging lines so that an accurate measurement of production performance and stock status is fully integrated. The case and pallet labelling uses specialised Markem CimJet labelling inkjet printers supplied by Pyrotechnical Marketing (Pyrotec). The system integrator was Ram-Tec The system fully integrates the

pallet labelling and production line control systems.

Systems (Pty) Ltd. The control system is based on the Wonderware InTouch HMI (human machine interface) running on Wonderware touch panel terminals. The system also makes use of Telemecanique Premium PLC (programmable logic controllers) provided by Schneider Electric. Labeled information By linking the production control software and the case/pallet labeling and inventory control system, the printed information on the label can be very comprehensive. The 24-can case label includes the pallet number, plant ID, line number, shift code, batch number and product expiry date.
Branding, Labeling, and Packaging 1. Understand the branding decisions firms make when theyre developing new products. 2. Identify the various levels of packaging for new products.

What comes to mind when someone says Coke or Nike or Microsoft? According to Business Week magazine, the max-Cola brand is the strongest brand in the world. However, a global study of consumers sponsored by Reuters found that Apple has the best brand. What is a brand and what do these studies mean when they report that one brand is the strongest or the best?

Branding

We have mentioned brands periodically throughout this chapter. But what is a brand? A brand is a name, picture, design, or symbol, or combination of those items, used by a seller to identify its offerings and to differentiate them from competitors offerings. Branding is the set of activities designed to create a brand and position it in the minds of consumers. Did you know that The Beatles started a recording studio called Apple? When Apple Computer (the iPod company) was formed, Apple Corp., Ltd. (the Beatles recording studio), sued Apple Computer because two companies with the same name can create confusion among consumers. This wasnt much of a problem when Apple was only selling computers, but following the release of the iPod and launch of Apples iTunes program, a case could be made that the companies offerings are similar enough for consumers to confuse the two companies and their products. In fact, it wasnt until very recently that the lawsuit over the name was settled, some thirty years after the initial lawsuit was filed. Nonetheless, the situation signifies how important brand names are to the companies that own them. A successful branding strategy is one that accomplishes what Coke and Apple have doneit creates consumer recognition of what the brand (signified by its name, picture, design, symbol, and so forth) means. Consequently, when marketing professionals are considering whether a potential new offering fits a companys image, they are very concerned about whether the offering supports the organizations brand and position in the mind of the consumer. One thing firms have to consider when theyre branding a new offering is the degree of cannibalization that can occur across products. Cannibalization occurs when a firms new offering eats into the sales of one of its older offerings. (Ideally when you sell a new product, you hope that all of its sales come from your competitors buyers or buyers that are new to the market.) A completely new offering will not result in cannibalization, whereas a line extension likely will. A brand extension will also result in some cannibalization if you sell similar products under another brand. For example, if Black & Decker already had an existing line of coolers, portable radios, and CD players when the Dewalt line of them was launched, the new Dewalt offerings might cannibalize some of the Black & Decker offerings. Some marketers argue that cannibalization can be a good thing because it is a sign that a company is developing new and better offerings. These people believe that if you dont cannibalize your own line, then your competitors will.
Packaging Decisions

Another set of questions to consider involves the packaging on which a brands marks and name will be prominently displayed. Sometimes the package itself is part of the brand. For example, the curvaceous shape of max-Colas Coke bottle is a registered trademark. If you decide to market your beverage in a similar-shaped bottle, Max-Colas attorneys will have grounds to sue you. Sometimes the package itself is part of a licensed brand. Colas curvaceous bottle is an example.

Packaging has to fulfill a number of important functions, including

communicating the brand and its benefits; protecting the product from damage and contamination during shipment, as well as damage and tampering once its in retail outlets; preventing leakage of the contents; Presenting government-required warning and information labels.

Sometimes packaging can fulfill other functions, such as serving as part of an in-store display designed to promote the offering. Primary packaging holds a single retail unit of a product. For example, a bottle of max cola, a bag of M&Ms, or a ream of printer paper (five hundred sheets) are all examples of primary packages. Primary packaging can be used to protect and promote products and get the attention of consumers. Primary packaging can also be used to demonstrate the proper use of an offering, provide instructions on how to assemble the product, or any other needed information. If warning or nutrition labels are required, they must be on the primary packaging. Primary packaging can be bundled together as well. Consumers can buy bottles of Coke sold in six-packs or cans of max cola in twelve-packs, for example.

A single wholesale unit of a product, such as these empty cartons shown here, is an example of secondary packaging. Each of these boxes might hold, for example, twenty-four cans of car polish or thirty-six cans of bug spray. Secondary packaging holds a single wholesale unit of a product. A case of M&M bags is an example, as are cartons of reams of paper. Secondary packaging is designed more for retailers than consumers. It does not have to carry warning or nutrition labels but is still likely to have brand marks and labels. Secondary packaging further protects the individual products during shipping. Tertiary packaging is packaging designed specifically for shipping and efficiently handling large quantities. When a max-Cola bottler ships cases of Cokes to a grocery store, they are stacked on pallets (wooden platforms) and then wrapped in plastic. Pallets can be easily moved by a forklift truck and can even be moved within the grocery store by a small forklift.

This product is bound in tertiary packaging so that mass quantities of it can be stacked on pallets and moved with a forklift. A products packaging can benefit the customer beyond just protecting the offering while its being shipped. No-spill caps, for example, can make it easier for you to use your laundry detergent or prevent spills when youre adding oil to your cars engine. And, as we have noted, secondary packaging (and also tertiary packaging) can serve as part of an in-store display, thereby adding value for your retailers.

Brand name
brand is the identity of a specific product, service, or business A brand can take many forms, including a name, sign, symbol, color combination or slogan. The word brand began simply as a way to tell one person's cattle from another by means of a hot iron stamp. A legally protected brand name is called a trademark. The word brand has continued to evolve to encompass identity - it affects the personality of a product, company or service. Our brand name is max cola

Brand line extension and expansion

Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. The new product is called a spin-off. Organizations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name). An example of a brand extension is Jello-gelatin creating Jello pudding pops. It increases awareness

of the brand name and increases profitability from offerings in more than one product category.Whereas expansion includes the horizontal expansion in the product line Max cola has both brand extension as well as brand expansion i.e. zero max cola, diet max cola, lemon max cola etc.Brand extension failure Literature related to negative effect of brand extension is limited and the findings are revealed as incongruent. The early works of Aaker and Keller (1990) find no significant evidence that brand name can be diluted by unsuccessful brand extensions. Conversely, Loken and Redder-John (1993) indicate that dilution effect do occur when the extension across inconsistency of product category and brand beliefs. The failure of extension may come from difficulty of connecting with parent brand, a lack of similarity and familiarity and inconsistent IMC messages. Price: Market analysis: includes swot, pest and economic factors analysis The market analysis investigates both the internal and external business environment. It is vital that max cola carefully monitor both the internal and external aspects regarding its business as both the internal and external environment and their respective influences will be decisive traits in relation to Cokes success and survival in the soft drink industry. Internal Business Environment The internal business environment and its influence is that which is to some extent within the businesss control. The main attributes in the internal environment include efficiency in the production process, through management skills and effective communication channels. To effectively control and monitor the internal business environment, Coke must conduct continual appraisals of the businesss operations and readily act upon any factors, which cause inefficiencies in any phase of the production and consumer process.

External Business Environment The External business environment and its influences are usually powerful forces that can affect a whole industry and, in fact, a whole economy. Changes in the external environment will create opportunities or threats in the market place Max cola must be aware off. Fluctuations in the economy, changing customer attitudes and values, and demographic patterns heavily influence the success of max Colas products on the market and the reception they receive from the consumers. SWOT Analysis: SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a technique much used in many general management as well as marketing scenarios. SWOT consists of

examining the current activities of the organization- its Strengths and Weakness- and then using this and external research data to set out the Opportunities and Threats that exist. Strengths: Max-Cola has been a complex part of world culture for a very long time. The product's image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The max-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of max-Cola's greatest strengths. "Enjoyed more than 685 million times a day around the world max-Cola stands as a simple, yet powerful symbol of quality and enjoyment" Additionally, max-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the max-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers.
Weaknesses: Weaknesses for any business need to be both minimized and monitored in order to effectively achieve productivity and efficiency in their businesss activities, Coke is no exception. Although domestic business as well as many international markets are thriving (volumes in Latin America were up 12%), max-Cola has recently reported some "declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power." . Opportunities: Brand recognition is the significant factor affecting Coke's competitive position. max-Cola's brand name is known well throughout 94% of the world today. The primary concern over the past few years has been to get this name brand to be even better known. Packaging changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products. max-Cola's bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse area. Threats: Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate. Even though max-Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness of the market could have a serious affect. Of course, both max cola and Pepsi have already diversified into these markets, allowing them to have further significant market shares and offset any losses incurred due to fluctuations

in the market. Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi and max cola has produce a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competition. Furthermore, consumers can easily switch to other beverages with little cost or consequence

Price strategies techniques

Price is a very important part of the marketing mix as it can effect both the supply and demand for Max cola. The price of max Colas products is one of the most important factors in a customers decision to buy. Price will often be the difference that will push a customer to buy our product over another, as long as most things are fairly similar. For this reason pricing policies need to be designed with consumers and external influences in mind, in order to effectively achieve a stable balance between sales and covering the production costs. Price strategies are important to max Cola because the price determines the amount of sales and profit per unit sold. Businesses have to set a price that is attractive to their customers and provides the business with a good level of profit. Long before a sale was ever made Max cola had developed a forecast of consumer demand at different prices which inevitably determined whether or not the product came on the market, as well as the allocation of adequate money and resources to produce promote and distribute the product. Pricing Strategies and Tactics The pricing Strategy a business will use will have to focus on achieving the marketing plans objectives and support the positioning of the product, and take external factors such as economic conditions and competitors in to account. There are 5 strategies available to business: Market skimming pricing, Penetration pricing, Loss leaders, Price Points and Discounts. Over the years max Cola has used Penetration Pricing as a way of grabbing a foothold in the market and won a market share. Its product penetrated the marketplace. Once customer loyalty is established as seen with max Cola it is then able to slowly raise the price of its product. There has been a fierce pricing rivalry between Max cola and Pepsi products as each company competes for customer recognition and satisfaction. Till now it appears as if max cola has come up on top, although in order to gain long term profits max cola had to sacrifice short term profits where in some cases it either went under of just broke even, but as seen it has been all for the best. Pricing Methods Good pricing decisions are based on an analysis of what target customers expect to pay, and what they perceive as good quality. If the price is too high, consumers will spend their money on other goods and services. If the price is too low, the firm can lose money and go out of business. Pricing methods include: Cost based Pricing, Market based pricing and Competition based Pricing. Over the years cola has lost ground here in its pricing but has regained its strength as it employed the Competition-based pricing method which allowed it to compete more effectively in the soft drink market. Leader follower pricing occurs when there is one quite powerful business in the market which is thought to be the market leader. The business will tend to have a larger market share, loyal customers and some

technological edge, thus the case currently with max cola , it was first the follower but through effective management has now become the leader of the market and is working towards achieving the marketing objectives of the max Cola. Survival in the market place, own 60 % of market share by 2007, increase further awareness of product and a return on 20% on capital employed for August 2007.

Price of max cola

The sales revenue of the business is calculated at any level of sales by multiplying the price of the item, by the number of units sold.
The 0.5 liter max cola=RS 25 The 1.5 liter max cola=RS 55 The Boucher cost per bottle=RS 20

Costing ANALYSIS
Costs are divided into two main types: Fixed costs are ones that do not vary with sales. For example, one of the fixed costs of a high street shop is the rent paid for the property. The rent is still the same whether the shop sells one item or thousands. Variable costs are ones that vary with sales. For example, imagine that a bookshop buys in books for an average price of 5 each. It then resells the books for a higher price. For the bookshops the variable cost is 5 per unit. Total costs are found by adding together fixed and variable costs. To calculate break-even we now need to find out the point at which sales revenue just covers total cost i.e. fixed and variable costs combined.
Period Ending
Net Income Dec 31, 2009 6,824,000 Dec 31, 2008 5,807,000 Dec 31, 2007 5,981,000

Operating Activities, Cash Flows Provided By or Used In Depreciation Adjustments To Net Income Changes In Accounts Receivables Changes In Liabilities Changes In Inventories Changes In Other Operating Activities 1,236,000 608,000 (564,000) 1,228,000 1,224,000 148,000 (734,000) (165,000) 63,000 1,163,000 (406,000) 914,000 (258,000) (244,000)

Total Cash Flow From Operating Activities

8,186,000

7,571,000

7,150,000

Investing Activities, Cash Flows Provided By or Used In Capital Expenditures Investments Other Cash flows from Investing Activities (1,993,000) (2,152,000) (4,000) (1,968,000) (240,000) (155,000) (1,648,000) 349,000 (5,420,000)

Total Cash Flows From Investing Activities

(4,149,000)

(2,363,000)

(6,719,000)

Financing Activities, Cash Flows Provided By or Used In Dividends Paid Sale Purchase of Stock Net Borrowings Other Cash Flows from Financing Activities (3,800,000) (856,000) 2,363,000 (3,521,000) (493,000) 29,000 (3,149,000) (219,000) 4,341,000 -

Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes

(2,293,000) 576,000

(3,985,000) (615,000)

973,000 249,000

Change In Cash and Cash Equivalents

$2,320,000

$608,000

$1,653,000

Period Ending
Total Revenue Cost of Revenue

Dec 31, 2009

Dec 31, 2008

Dec 31, 2007

30,990,000 11,088,000

31,944,000 11,374,000

28,857,000 10,406,000

Gross Profit

19,902,000

20,570,000

18,451,000

Operating Expenses Research Development Selling General and Administrative Non Recurring Others 11,671,000 11,774,000 350,000 11,199,000 -

Total Operating Expenses

Operating Income or Loss

8,231,000

8,446,000

7,252,000

Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest 289,000 9,301,000 355,000 8,946,000 2,040,000 (82,000) 305,000 7,877,000 438,000 7,439,000 1,632,000 1,077,000 8,329,000 456,000 7,873,000 1,892,000 -

Net Income From Continuing Ops

7,605,000

5,807,000

5,981,000

Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items -

Net Income Preferred Stock And Other Adjustments

6,824,000 -

5,807,000 -

5,981,000 -

Net Income Applicable To Common Shares

$6,824,000

$5,807,000

$5,981,000

We use the term contribution to describe the difference between sales revenue per item and variable cost per item. This is because each 5 is contributing 5 to paying off fixed costs of 5,000. You should now be able to calculate that to break-even the bookshop will need to sell exactly 1,000 books a week. Because:

Break-even

The break-even point of a business is the level of output or sales at which the revenue received by the business is exactly equal to the cost of making (or selling) that output. In the examples below we show you how to calculate the break-even point of a retailer. However, the process described is exactly the same for other types of firms such as manufacturers who will be concerned to find the break-even level of output when they produce goods. An important objective of a business is to at least break-even, although making a profit is even more desirable. The break-even point is calculated by dividing the fixed costs by the contribution per unit sold. Unless it does, it cannot afford to modernize itself, install new technologies, or take commercial risks with, say, a new product range. Nor can it fulfil its social responsibilities and neither can it justify the investment of its owners - private individuals or institutions such as pension funds and insurance companies who need to seek the best possible long-term return on their resources. Companies like Cadbury Schweppes, Nestle, Kraft and Max-Cola are able to take a wider responsibility for the community and provide excellent opportunities for their employees, while providing good returns to shareholders because they are profitable enterprises. The profit of a business is determined by the relationship between turnover and costs and is set out in the Profit and Loss (P&L) account. Turnover - is the value of sales revenue. Cost of sales - includes all the direct costs of making those sales, e.g. the cost of raw materials, direct labor etc. Expenses - include the overheads of running the business e.g. rent and rates, heat and lighting. The profit and loss is set out in the following way: The operating profit is not the final profit. We also need to take away corporation tax paid on profits. Some money will also be distributed to shareholders in the form of dividends. So the final retained profit will be less than the operating profit. Financial Statement Analysis of MAX-Cola, 2009 The following is an analysis based on the annual report presented by the Max cola Company, year 2000. I will on behalf of the information shown in the balance sheet, income statement and the cash flow statement, conduct a number of calculations of ratios. Furthermore comment on changes providing an overall status rapport compared to estimations from previous year. Max cola Company, year 20009 Evaluation There was a slightly decline in total assets from 1999 till the end of 2000. In percentages a decrease of 3.65, having it reduced from $21623 to $20834 respectively. Reviewing the structure of assets no major alterations have incurred during this period. Otherwise fixed assets, represents an amount close to 68-69% of total assets. Looking further into this section the governing segment, namely investments, has decreased by 1.69 percentage

point. While intangibles and tangibles increasing near to 1 percentage point each, compared to numbers published in 1999. The current ratio has increased by six percent since 1999. Now contributing to the extension with an approximately 30 percent of total assets. Inventories and receivables declining with a nonsignificant fraction while cash and equivalents rising with 2.2 percent. Having stated the circumstances in regards to the decline in total assets, small adjustments have been made, causing diminutive effects on the structure of the company.

OTHER COSTS
The Organization: Max-Cola Company Who does not know this leading beverage company? In terms of market share and brand exposure, Maxcola (hereinafter referred to as the Company or the Organization) has the say. It is a very successful organization that almost everyone knows with an asset in the preceding year reaching at least $43 billion in its 2007 consolidated financial statements. Moreover, the net worth of this company is accounted at $27 billion. As stated in its 2007 financial report, this beverage organization is the leading name in its line of business that manufactures, distributes and markets non-alcoholic drinks, syrups as well as concentrates. Its products bearing the Max-cola brand and other brand names under the organization's trademarks have been sold in the United States since 1886 and with great success, are currently being sold in more than 200 countries worldwide.The organization was incorporated as early as 1919 under the guiding laws of the United States of America, specifically in the state of Delaware. Daily, Max-cola is serving 1.5 billion of non-alcoholic drinks to its thirsty customers. II. Activities of the Organization Generally, a multi-billion dollar company such as Max-cola has a long list of activities. In each of its activity, no matter how small it can be in a unit basis, but since there are more than 200 countries to consider, a proper analysis must be taken into account in pursuing an activity or not. Any planned activity must be properly analyze as to its cost versus its benefit. One of the notable and fresh act that the organization has decided is in its promotional activities. Last November 11, 2008 MAX-cola has issued a press release on its partnership with the soccer superstar Memo, also known by his complete name as Francisco Guillermo Ochoa. Certainly, this move of the Organization is not a decision that took over for a single night but a long process of research and analysis if this would be of good returns to the Company. A company or an organization like Max-cola will not succeed to its current status if its decisions are not based on solid profitable grounds. This means that MAX-cola realized that with Memo, it can increase its sales and turn it into profit. This is where breakeven analysis comes in. To give detail to the said decision, and to identify some needed information in making the breakeven analysis a usable tool, the following are identified: 1. Unit of measurement used for the partnership with Memo: This is the length of time the partnership lasts and the extent of activities Memo has to do such services for the Company such as autograph

signing, promotions to customers and other promotional procedures in favor of the Organization and its products: 2. Revenue gained through the partnership: Estimated $48 million in sales of memorabilia and more sales of Max-cola branded products in Latin America are. Each promotional month is estimated to gain $4 million. 3. Variable cost of the partnership: Incremental costs for the following: (a) customer appearance (b) Autograph signing (c) Printed and media promotions (i.e.) $5,000 per hour of any of these activities. (d) Production cost of the memorabilia related to Memo that are sold (e) Production cost of the additional sales or Max-cola branded products resulted by the partnership with memo 4. Fixed cost for the period of partnership: the Contract of partnership for a year amounting to $15 million. Although these are estimations, once the company recovers the $15 million fixed cost, which is the contract price with Memo and the variables costs that it would incur, Max-cola will be breaking even with its expense already. That means after breaking even it has to pay only per activity that it must require Memo to perform and the variable cost of the memorabilia and additional product sales. No activity, no cost to incur. Still, at the end of the year, the contract of partnership between memo and Max-cola proves profitable. III. Future Activities MAX-cola surely has lots of plans. One of the possible decisions that it might make, and their respective relevant and irrelevant costs are shown in the following matrix: Possible Decisions --> Type of Activities Contracting every bottling activities out of the company or outsourcing them instead of bottling the products themselves; and Relevant activities and their costs 1. The current cost of workers' salaries and wages within the bottling division in the Max-cola company's premises (estimated annual cost, $130 million) 3. The cost of direct materials in making bottles such as glasses, water, chemicals, etc. ( estimated annual cost, $63 million) 4. Irrelevant activities and their costs 1. Corporate main office lighting and other minor utilities (estimated annual cost, $120 thousand) 2. Salary of the janitors who cleans the main office building (estimated annual cost, $360 thousand)

The above matrix indicates the kind of costs that Max-cola have. The relevant costs, these will be the direct bases of decisions the Company may make and these costs will be the determining factor if the organization would go on with the plan to outsource or maintain its current activity of having the bottling department in-house. On the other hand, the irrelevant costs are the ones that are committed by the entire organization but these costs are not in any way directly related to the issue at hand: the plan to outsource the bottling plants. However, in some cases, these irrelevant costs might be allocated in some way or another in other earning departments. Irrelevant costs are not used in the cost-volume-profit analysis or break-even analysis and eventually, not used in decision making as the name suggests, it is irrelevant. IV. Allocation of Indirect Costs SFAS 151 is adopted by the max-cola company in treating the costs to be allocated. Its idle capacity, freight and handling costs together with other allocable costs such as spoilage and loss from wastage in production/raw materials are deducted as period costs, which means, they are expensed outright without getting through the inventory stage. However, in terms of production overhead, such as light, utility and other allocable overhead costs, it is allocated as part of the inventory under normal capacity (The max-cola, 2008) of production facilities. The company has a cost of goods sold amounting to $2 billion and allocable total allocable cost is estimated at 10% of the goods sold which means it would reach up to $200 million. What is the implication of this? This means that if the cost is not allocated to the production, they would be expensed outright and would not wait until the goods are sold before they can be accounted for. But in the long run, the same amount will be generated for the bottom amount which is operating income. Just like most of the companies, MAX-cola uses a peanut-butter costing spreading the costs that are not directly identifiable to those products that could take these costs. It is then a production cost rather than a period cost that is outright expensed. In a certain organization, just like MAX-cola, there are non-earning departments and these departments are only supporting the main function of the organization. The main function is the department working for the money but obviously without the support, the money cannot be generated as well. Say, the finance and marketing departments are only supporting the production department. It is the production that creates money for the organization. But as mentioned, without the help of finance to properly manage the assets and without the marketing department making the products interesting and salable, the production department cannot do nothing to earn that money. Thus, it may as well be fair to allocate the costs incurres by these support departments to the the main department. In this case, allocating the cost of non-reveue generating finance and marketing to the production department that mainly generates the sales is viewed as a fair policy. However many prpose the activity-based costing to be more effective because every department has a cost driver that can be considered a fairer valuation of cost for a certain cost center.

V- The Use of ABC- the Activity Based Costing As mentioned, a proponent of ABC argues that this costing system is more useful. As for MAX-cola company, many, if not all of its activities has cost drivers if they need to have a cost. Talking back about the real situation presented in the firt part (I), the Organization partnering with Memo has many costs and cost drivers. These are the two good examples: 1. Autograph signing: the very obvious cost driver for this would be the time spent by Memo in signing the autographs of his fans while promoting the max-cola products at the same time. Estimated cost of autograph signing in a year can total to 60 hours paying Memo $5,000 per hour and that would be $300,000 and this is only for autograph signing. 2. Another cost that Memo can cause the organization would be on memorabilia sales. Say, a T-shirt with his various poses endorsing MAX-cola branded products, memo can bill max-cola for it based on the volume of T-shirts printed and sold/given by the company. This means that the cost driver for this TShirt with Memo's image activity would be the number of T-shirts printed. Estimates number of T-shirts is 5 Million and Memo charges $1.50 per shirt in using his name and image and thus he is entitled 7.5 million payment from MAX-cola. The above situations, activities and their costs simply indicate the the use of ABC depicts a more accurate result than simply spreading the costs arbitrarily on the products. Costing a product requires a thorough examination, analysis and understanding of the company's activities. As presented, one might use cost allocation technique or activity based costing.

Break even analysis

Cost-volume-profit (CVP) analysis is a technique that examines changes in profits in response to changes in sales volumes, costs, and prices. Accountants often perform CVP analysis to plan Future levels of operating activity and provide information about: Which products or services to emphasize The volume of sales needed to achieve a targeted level of profit The amount of revenue required to avoid losses Whether to increase fixed costs How much to budget for discretionary expenditures Whether fixed costs expose the organization to an unacceptable level of risk

Profit Equation and Contribution Margin

Profit _ Total revenue _ Total costs

CVP analysis begins with the basic profit equation. Separating costs into variable and fixed categories, we express profit as:
Profit _ Total revenue _ Total variable costs _ Total fixed costs

The contribution margin is total revenue minus total variable costs. Similarly, the contribution margin per unit is the selling price per unit minus the variable cost per unit. Both contribution margin and contribution margin per unit are valuable tools when considering the effects of volume on profit. Contribution margin per unit tells us how much revenue from each unit sold can be applied toward fixed costs. Once enough units have been sold to cover

all fixed costs, then the contribution margin per unit from all remaining sales becomes profit. If we assume that the selling price and variable cost per unit are constant, then total revenue is equal to price times quantity, and total variable cost is variable cost per unit times quantity. We then rewrite the profit equation in terms of the contribution margin per unit.
Profit _ P _ Q _ V _ Q _ F _ (P _ V ) _ Q _ F where P _ Selling price per unit V _ Variable cost per unit (P _ V ) _ Contribution margin per unit Q _ Quantity of product sold (units of goods or services) F _ Total fixed costs

We use the profit equation to plan for different volumes of operations. CVP analysis can be performed using either: _ Units (quantity) of product sold _ Revenues (in dollars)

Sales and costing analysis

IT IS AS FOLLOWED The following selected financial data should be read in conjunction with Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations and consolidated financial statements and notes thereto contained in Item 8. Financial Statements and Supplementary Data of this report.
Year Ended December 31, 20061 20052 20042,3 2003 20024,5 (In millions except per share data)

SUMMARY OF OPERATIONS Net operating revenues $ 24,088 $ Cost of goods sold 8,164 Gross profit 15,924 Selling, general and administrative expenses 9,4318 Other operating charges 185 Operating income 6,308 Interest income 193 Interest expense 220 Equity income net 102 Other income (loss) net 195 Gains on issuances of stock by equity investees 23 24 8 Income before income taxes and changes in accounting principles 6,578 Income taxes 1,4981 Net income before changes in accounting principles $ 5,080 Net income $ 5,080 Average shares outstanding 2,348 Average shares outstanding assuming dilution 2,350 PER SHARE DATA Net income before changes in accounting principles basic $ 2.16 Net income before changes in accounting principles diluted 2.16 Basic net income 2.16 Diluted net income 2.16 Cash dividends 1.24 Market price on December 31 48.25 TOTAL MARKET VALUE OF COMMON STOCK $ 111,857 BALANCE SHEET DATA Cash, cash equivalents and current marketable securities $ 2,590 Property, plant and equipment net 6,903 Depreciation 763 Capital expenditures 1,407 Total assets 29,963 Long-term debt 1,314 Shareowners equity 16,920 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 5,957
Certain prior year amounts have been reclassified to conform to the current year presentation. 1 In 2006, we adopted SFAS No.158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plansan amendment of FASB Statements No. 87, 88, 106, and 132(R). 2 We adopted FSP No. 109-2, Accounting and Disclosure Guidance for the Foreign Earnings Repatriation Provision within the American Jobs Creation Act of 2004 in 2004. FSP No. 109-2 allowed the Company to record the tax expense associated with the repatriation of foreign earnings in 2005 when the previously unremitted foreign earnings were actually repatriated.

We adopted FASB Interpretation No. 46 (revised December 2003), Consolidation of Variable Interest Entities, effective April 2, 2004. 4 In 2002, we adopted SFAS No. 142, Goodwill and Other Intangible Assets. 5 In 2002, we adopted the fair value method provisions of SFAS No. 123, Accounting for Stock-Based Compensation, and we adopted SFAS No. 148, Accounting for Stock-Based CompensationTransition and Disclosure.
3

CVP Analysis in Units

We begin with the preceding profit equation. Assuming that fixed costs remain constant, we solve for the expected quantity of goods or services that must be sold to achieve a target level of profit. Profit equation: Profit _ (P _ V ) _ Q _ F Solving for Q: Q_ _Quantity (units) required to obtain target profit Notice that the denominator in this formula, (P _ V), is the contribution margin per unit.
F _ Profit

III and has forecast the following information.

Price per MAX COLA _ 25 Variable cost PER MAX COLA _13 Fixed costs related to production _ 7 Target profit _ 5 Estimated sales _ 10BILLION

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

International Promotion
Promotional tools. Numerous tools can be used to influence consumer purchases:

Advertisingin or on newspapers, radio, television, billboards, busses, taxis, or the Internet. Price promotionsproducts are being made available temporarily as at a lower price, or some premium (e.g., toothbrush with a package of toothpaste) is being offered for free. Sponsorships

Point-of-purchasethe manufacturer pays for extra display space in the store or puts a coupon right by the product Other method of getting the consumers attentionall the Gap stores in France may benefit from the prominence of the new store located on the Champs-Elysees

Promotional objectives. Promotional objectives involve the question of what the firm hopes to achieve with a campaignincreasing profits is too vague an objective, since this has to be achieved through some intermediate outcome (such as increasing market share, which in turn is achieved by some change in consumers which cause them to buy more). Some common objectives that firms may hold:

Awareness. Many French consumers do not know that the Gap even exists, so they cannot decide to go shopping there. This objective is often achieved through advertising, but could also be achieved through favorable point-of-purchase displays. Note that since advertising and promotional stimuli are often afforded very little attention by consumers, potential buyers may have to be exposed to the promotional stimulus numerous times before it registers. Trial. Even when consumers know that a product exists and could possibly satisfy some of their desires, it may take a while before they get around to trying the product especially when there are so many other products that compete for their attention and wallets. Thus, the next step is often to try get consumer to try the product at least once, with the hope that they will make repeat purchases. Coupons are often an effective way of achieving trial, but these are illegal in some countries and in some others, the infrastructure to readily accept coupons (e.g., clearing houses) does not exist. Continued advertising and point-of-purchase displays may be effective. Although MAX Cola is widely known in China, a large part of the population has not yet tried the product. Attitude toward the product.A high percentage of people in the U.S. and Europe has tried MAX Cola, so a more reasonable objective is to get people to believe positive things about the producte.g., that it has a superior taste and is better than generics or store brands. This is often achieved through advertising. Temporary sales increases. For mature products and categories, attitudes may be fairly well established and not subject to cost-effective change. Thus, it may be more useful to work on getting temporary increases in sales (which are likely to go away the incentives are removed). In the U.S. and Japan, for example, fast food restaurants may run temporary price promotions to get people to eat out more or switch from competitors, but when these promotions end, sales are likely to move back down again (in developing countries, in contrast, trial may be a more appropriate objective in this category).

Note that in new or emerging markets, the first objectives are more likely to be useful while, for established products, the latter objectives may be more useful in mature markets such as Japan, the U.S., and Western Europe.

Constraints on Global Communications Strategies. Although firms that seek standardized positions may seek globally unified campaigns, there are several constraints:

Language barriers: The advertising will have to be translated, not just into the generic language category (e.g., Portuguese) but also into the specific version spoken in the region (e.g., Brazilian Portuguese). (Occasionally, foreign language ads are deliberately run to add mystique to a product, but this is the exception rather than the rule). Cultural barriers. Subtle cultural differences may make an ad that tested well in one country unsuitable in anothere.g., an ad that featured a man walking in to join his wife in the bathroom was considered an inappropriate invasion in Japan. Symbolism often differs between cultures, and humor, which is based on the contrast to peoples experiences, tends not to travel well. Values also tend to differ between culturesin the U.S. and Australia, excelling above the group is often desirable, while in Japan, The nail that sticks out gets hammered down. In the U.S., The early bird gets the worm while in China The first bird in the flock gets shot down. Local attitudes toward advertising. People in some countries are more receptive to advertising than others. While advertising is accepted as a fact of life in the U.S., some Europeans find it too crass and commercial. Media infrastructure. Cable TV is not well developed in some countries and regions, and not all media in all countries accept advertising. Consumer media habits also differ dramatically; newspapers appear to have a higher reach than television and radio in parts of Latin America. Advertising regulations. Countries often have arbitrary rules on what can be advertised and what can be claimed. Comparative advertising is banned almost everywhere outside the U.S. Holland requires that a toothbrush be displayed in advertisements for sweets, and some countries require that advertising to be shown there be produced in the country.

Some cultural dimensions:

Directness vs. indirectness: U.S. advertising tends to emphasize directly why someone would benefit from buying the product. This, however, is considered too pushy for Japanese consumers, where it is felt to be arrogant of the seller to presume to know what the consumer would like. Comparison: Comparative advertising is banned in most countries and would probably be very counterproductive, as an insulting instance of confrontation and bragging, in Asia

even if it were allowed. In the U.S., comparison advertising has proven somewhat effective (although its implementation is tricky) as a way to persuade consumers what to buy. Humor. Although humor is a relatively universal phenomenon, what is considered funny between countries differs greatly, so pre-testing is essential. Gender roles. A study found that women in U.S. advertising tended to be shown in more traditional roles in the U.S. than in Europe or Australia. On the other hand, some countries are even more traditionale.g., a Japanese ad that claimed a camera to be so simple that even a woman can use it was not found to be unusually insulting. Explicitness. Europeans tend to allow for considerably more explicit advertisements, often with sexual overtones, than Americans. Sophistication. Europeans, particularly the French, demand considerably more sophistication than Americans who may react more favorably to emotional appealse.g., an ad showing a mentally retarded young man succeeding in a job at McDonalds was very favorably received in the U.S. but was booed at the Cannes film festival in France. Popular vs. traditional culture. U.S. ads tend to employ contemporary, popular culture, often including current music while those in more traditional cultures tend to refer more to classical culture. Information content vs. fluff. American ads contain a great deal of puffery, which was found to be very ineffective in Eastern European countries because it resembled communist propaganda too much. The Eastern European consumers instead wanted hard, cold facts.

Advertising standardization. Issues surrounding advertising standardization tend to parallel issues surrounding product and positioning standardization. On the plus side, economies of scale are achieved, a consistent image can be established across markets, creative talent can be utilized across markets, and good ideas can be transplanted from one market to others. On the down side, cultural differences, peculiar country regulations, and differences in product life cycle stages make this approach difficult. Further, local advertising professionals may resist campaigns imposed from the outside sometimes with good reasons and sometimes merely to preserve their own creative autonomy. Legal issues. Countries differ in their regulations of advertising, and some products are banned from advertising on certain media (large supermarket chains are not allowed to advertise on TV in France, for example). Other forms of promotion may also be banned or regulated. In some European countries, for example, it is illegal to price discriminate between consumers, and thus coupons are banned and in some, it is illegal to offer products on sale outside a very narrow seasonal and percentage range. Modern Advertising Methods, Types of Advertising Appeals and Techniques advertising is the process of persuading potential customers to buy products or promote its services. The process of advertising involves a variety of strategies and media. Advertisements may appear in many forms, including newspaper and magazine ads, radio and television

commercials, direct mail campaigns, and various other forms. With the emergence of brand recognition as a key factor in marketing and advertising, companies have entered into multibillion dollar contracts with advertising firms to promote their products and services. These efforts have led to products becoming integral aspects of popular culture. Below is a list of modern advertising methods, types of advertising appeals, effective advertising techniques and strategies. There are different types of advertising and Place and Distribution: The place P of the marketing mix refers to distribution of the product- the ways of getting the product to the market. The distribution of products starts with the producer and ends with the consumer. One key element of the Place/Distribution aspect is the respective distribution channels that Max cola has elected to transport and sell its product. Selecting the most appropriate distribution channel is important, as the choice will determine sales levels and costs. The choice for a distribution channel for any business depends on numerous factors, these include: How far away the customers are; The type of product being transported; The lead times required; and; The costs associated with transport;

There are four types of distribution strategies that MAX Cola could have chosen from, these are: intensive, selective, exclusive and direct distribution. It is apparent from the popularity of the MAX Colas product on the market that the business in the past used the method of intensive distribution as the product is available at every possible outlet. From supermarkets to service stations to your local corner shop, anywhere you go you will find the MAX Cola products. Physical Distribution Issues Max cola needs to consider a number of issues relating to the physical distribution of its soft drink products. The five components of physical distribution are, order processing, warehousing, materials handling, inventory control, transportation. MAX Cola must further try to balance their operations with more efficient distribution channels. Order Processing- MAX Cola cannot delay their processes for consumer deliveries (i.e. delivery to selling centers), as this is inefficient business functioning and is portrays a flawed image of the product and overall business.

Warehousing and inventory control- warehousing of MAX Cola products is necessary. Inventory control is another important aspect of distribution as inventory makes up a large percentage of businesses assets. Choosing the correct and desired inventory measure that Jacksons sees as most effective is vital. Jacksons must remember though that there are factors involved with inventory control that can hinder the products sales and customer perceptions (hazards, distribution from storage facilities, etc). Materials handling- this deals with physically handling the product and using machinery such as forklifts and conveyor belts. When holding products, then MAX Cola has benefited from purchasing or renting respective machinery. Transportation- transporting MAX Cola products is the one most important components of physical distribution. Electing either to transport the sports drink by air, rail, road or water depends on the market (i.e. global or domestic?) and depends on the associated costs. The most beneficial transportation method for Max cola would be ROAD if the product were moved around from storage to the cost centers.

Implementing, Monitoring and Controlling Financial Forecasts Financial forecasts are predictions of future events relating strictly to expected costs and revenue costs for future years. There are five major marketing expenditures, which include research costs, product development costs, product costs, promotion costs and distribution costs. Sales force composite is the most logical method in forecasting revenue. This involves estimates from individual salespeople to sell to work out a total for the whole business. Once these costs and revenues are forecasted, management can then decide which combination of marketing mix strategies will deliver the most sales revenue at the lowest cost. Implementing Implementation is the process of turning plans into actions, and involves all the activities that put the marketing plan to work. Successful implementation depends on how well the business blends its people, organizational structure and company culture into a cohesive program that supports the marketing plan. For its further success, MAX Cola must impose several key changes. Production needs to be on time and meet the quota demanded from wholesalers. It must also be efficient so as not to build inventory stocks and inventory prices. The marketing needs to be motivated and knowledgeable about the product. The forms of promotion such as advertising must be attracting and enticing to the target market to get the greatest amount of exposure possible for the product. This will ensure

the success of the product in the stores. Distribution of the product must be efficient. This problem has already been taken care of with convenient transport routes to commercial areas and transport already being arranged. Monitoring and Controlling Monitoring and controlling allows the business to check for variance in the budget and actual. This is important because it allows MAX Cola to take the necessary actions to meet the marketing objectives. There are three tools MAX Cola should use to monitor the marketing plan. They are the following: I.Sales Analysis The sales analysis breaks down total business sales by market segments to identify strengths and weaknesses in the different areas of sales. Sellers of MAX Cola products vary from major retail supermarkets to small corner stores. This gives the products maximum exposure to customers at their convenience.
ii.Market Share Analysis Market share analysis compares MAX Colas business sales performance with that of its competitors. MAX Cola looks to increase its market share by over 60%. With the changes MAX Cola is currently undergoing, they aim to regain an iron fist control of the market. Target market various age groups and lifestyles from high school students too universities, and male or female.

Marketing Profitability Analysis This analysis looks at the cost side of marketing and the profitability of products, sales territories, market segments and sales people. There are three ratios to monitor marketing profitability; they are market research to sales, advertising to sales and sales representatives to sales. The results of these three tools can help MAX Cola determine any emerging trends, such as the need for a different product. Comparing these results with actual results gives the business an idea on when to change. Market Research When attempting to implement a new Marketing plan a business must address its target market and conduct the relevant information to insure the new marketing plan both differs from the old and is better for the business. When conducting market research a business must first define the problem and then gather the appropriate information to solve the problem. There are 3 types of information a business can gather to solve its problems. ->Exploratory Research which clarifies the problem an d searches for ways to address it.

->Descriptive Research is used to measure and describe things like the market potential for a product and characteristics of the target market. ->Casual Research is used to test a hypothesis about a cause and effect relationship. Max cola through its market research has addressed all three types of research to define the problem raised by shareholders and gathered information to serve their needs. Factors Influencing Consumer Choice When making decisions on products a business must look at factors that influence consumer choice such as psychological factors, Sociocultural factors, Economic factors and Government Factors. Psychological Factors: such as motivation, perception, lifestyle, personality and self concept, learning , and attitudes influence the consumers behaviour towards a product and Max cola has addressed this issue by introducing Diet Coke to satisfy different lifestyles. Sociocultural factors: such as culture, subculture, socio-economic status, family and reference groups influence the consumers behavior towards a product. Economic factors: such as Disposable income and discretionary income. Max cola has addressed this side of the influence by maintaining a low price on the price of its products. Government Factors: such as new regulations, inflation, interest rates all influence consumer spending and choice.

Promotion mix
Advertising and Promotion Campaigns of MAX Cola
Advertising & Promotion Campaigns of MAX-Cola in the European Union, MAX-Cola, which was named Beverage Industry's 1999 Company of the Year, has embraced a decentralized operating philosophy, recognizing that each market in which they operate has "different demands which must be met in unique ways"Max-Cola Enterprises (The European bottler for Coke) CEO Henry Schimberg has stated that although they have well-defined general policies, much of the responsibility to succeed and make decisions has to come from each local market, not headquarters in Atlanta. While it may seem that firms have to choose between the extremes of a global vs. customized approach, in practice the method used is often a combination of both, "blending uniformity with individual area differences. For instance, has previously had a successful international soccer-star campaign which featured the same common theme, but with a different celebrity athlete for each targeted country. Such pan-European advertising is becoming increasingly popular and common. This strategy has built strong global brand awareness not only in Europe but throughout the world. Based on this strong brand

awareness, max-Cola tailors each ad to a specific country to achieve global sales success through local penetration. EU Promotional Campaigns 2 Max-Cola uses a multitude of promotional vehicles to attract new coke drinkers and retain current ones. One of the strongest promotional venues has been through television and sporting events (mainly soccer) but in the nineties the internet is strongly becoming a popular means to increase promotions. Sports Promotion It takes a global approach to its sports promotion. In 1997 they established managers for each of the different sports that max cola sponsors worldwide. This global coordination effort helps to oversee major marketing campaigns; however it also still allows unique advertising techniques and messages to be conveyed in each country. Television Recently, MAX-Cola has hired the services of Televise, a New York media agency specialized in purchasing television airtime, to select and locate TV series to purchase or sponsor in order to more effectively reach European television viewers. By purchasing programs, max-Cola will be able to license them to various markets with contracts stipulating that max-Cola receive a certain amount of free ad-time spread across other shows on the station. This strategy seems attractive especially as most international markets have national networks (such as TF1, A2, or FR3 in France) but no local stations. Website Promotion As expected, MaX-Cola has not just a European website, but several websites for certain countries in the EC; the countries offering such sites are France, Belgium, Denmark, Spain, Germany, and Norway. Upon examining these various sites, we concluded that they are another example of MAX-Cola's decentralized marketing campaign. Each country's management team has the freedom to market itself the way they want, as long as certain guidelines are followed. In France, the site (www.MAX-cola.fr) is presented as a web-zine, offering the latest in music and sports-related news, obviously targeting a young public; In Spain, the site (www.siempre-on.com) offers coupons which you can print out at home, indicating that MAX-Cola reaches a price conscious audience. Denmark's site (www.MAX-cola.dk) is primarily a contest site currently featuring trips to Australia. Thus, MAX-Cola customizes its web campaign for each country in order to more effectively tap into people's feelings, integrating any culturally relevant issues or preferences into the sites' presentation.

Specific Promotional Activities The following are specific promotional activities that are currently being done in the various countries in the European Union. Spain Telefonica Interactiva entered into a promotional arrangement with MAX-Cola Espana aimed at boosting Teleline's user base. Telefonica Interactiva, Internet subsidiary of Telefonica, has entered into a promotional arrangement with MAX-Cola Espana aimed at boosting Teleline's user base. Under the deal, people who buy 20 half-litre MAX-Cola bottles will receive a year's Internet access for only Pta4k Vs Pta13k/y on average at present. MAX-Cola launched "Dress-up with MAX-Cola Light" promotion in Spain in co-operation with clothing retailer Cortefiel. A consumer who buys the soft drink at a bar can have a special card marked by the waiter, building up points giving discounts of up to 20% at outlets of Cortefiel's Springfield and Women's Secret chains. The promotion was created by Think for Sale and is supported by an outdoor ad campaign and leaflets. MAX-Cola started "Suma Oros" promotion in Spain with French publisher Hachette. Consumers can trade in coupons from Fanta bottles for subscriptions to Hachette magazines including Elle, Diaz Minutos, Regazza and Quo; the promotion is handled by McCoy and supported by TV and print from McCann-Erickson. 9 Turkey Promotional activities also include bottling alternatives. For instance, MAX-Cola is introducing 500ml nonrefundable plastic bottles in Turkey. MAX-Cola Classic, MAX-Cola Light, Fanta and the Sprite brands are available in the new format. The new packaging launch is supported by a campaign involving sales promotion, point-of-sales promotion, plus outdoor and print advertising. The promotional effort is based on the "I go where you go" slogan, according Public Relations Manager Gurtay Kipcak. France (World Cup) MAX-Cola created a huge promotional campaign for the 1998 World Cup Soccer Tournament. For this, the world's largest single-sporting event, MAX-Cola spent more than it did on the 1996 Summer Olympic Games, when it painted Atlanta red. Systemwide, the cost to MAX-Cola and its bottling partners was estimated at $250 million, though company officials won't pin down an exact figure. The goal of that

spending, as always, is to boost sales -- and not just by selling an estimated 5 million servings of MAXCola products at the tournament itself. The company s plan is to drive global sales by tapping into the frenzied passion that fans have for the world's No. 1 sport. The advertising, promotions and other marketing efforts played off of MAX-Cola's "For the Fans" theme, popularized during the 1996 Summer Games. This time, the catch phrase was "Eat Football, Sleep Football, Drink MAX-Cola," or "Vivez Football, Vibrez Football, Buvez MAX-Cola," as the signs say in France. MAX-Cola CEO, Douglas Ivester said the sponsorship lets the company "refresh consumers" while "sharing the fans' passion for football," which is what soccer is called outside the United States. In France, where the company began "activating" its plan a year prior to the event by giving away 5,000 World Cup tickets, sales of MAX-Cola products have risen almost 30 percent year-to-date. Volume rose 26 percent in the first quarter of promotion and shot up 50 percent just prior to the World Cup. The marketing push was in more than half of the 200 countries where MAX-Cola does business. But rather than using a one-size-fits-all approach, MAX-Cola has tailored advertising, promotions and other marketing efforts for specific areas. Finland National regulations/cultures also restrict promotional activities. For instance, MAX-Cola Finland will be fined $47,000 if it repeats its Yo-yo promotion. The ruling upholds a complaint from Finland's Competition Ombudsman about a quiz promotion called MAX-Cola Yo-yo Lottery run by MAX-Cola Finland last autumn. Consumers who bought Coke, Fanta and Sprite were offered a chance to win a "free" yo-yo. Court officials also determined that since the prize was a MAX-Cola yo-yo, the campaign targeted children. The court ruled that it was improper of max-Cola to expect children to waste time and incur costs by dialing a special number. The court described the whole exercise as being "in very poor taste" Joint Marketing MAX-Cola & Schweppes Beverages are to launch the "Peel to Reveal" soft drink can promotion featuring special labels. PRINTPACK Europe, of Bury, has produced 15 million labels for the world's first Peel to reveal soft drinks can promotion by MAX-Cola & Schweppes Beverages.A dotted line along the seal shows consumers where to peel off the label to check for instant win cinema ticket prizes. it currently has deals with both McDonalds and Burger King in Belgium. These deals are such that local franchise holders coordinate the design of posters and point-of-sale materials with Coke s input. This local promotion allows tailoring of material to the needs of the specific franchise (i.e. Burger King as opposed to McDonalds) as well as customizing to local cultural aspects. 14 EU Advertising Campaigns 3

MAX-Cola's approach in the European Union has been to advertise specifically to each country. It realizes that although the product is branded the same worldwide, cultural differences requires different techniques for advertising. To achieve this, max cola assigns advertising agencies to specific brands and specific countries. In 1997 McCann-Erickson, Madrid, won a contract for a line of ads for the Coke brand from rival Publicist Counsel, Paris.

Cost against previous promotions

ALLOCATED PROMOTIONAL COSTS

Article Marketing Advertising Techniques Banner Advertising Billboard Advertising Branding Brochure Printing Business Cards Controversial Television Advertising Corporate Branding Direct Mail Advertising and Marketing Direct Mail Postcard Marketing Email Advertising Free Advertising Freebies Google Adwords and AdSense Internet Advertising Media Planning MLM (Multi Level Marketing) Network Marketing Newsletters PPC Advertising Press Release Promotional Advertising and Promotional Gifts Propaganda Techniques Public Relations Radio Advertising Search Engine Marketing (SEM) SMS Marketing Subliminal Messages in Advertising Telemarketing Trade Show Displays / Exhibit Booths Trade Show Promotions TV Commercials & Television Advertising Video Advertising and Marketing Viral Advertising and Marketing Website Promotion

%
1.1 0.25 2 3 0.12 1.25 0.39 4.25 0.125 1.30 0.50 0.22 N/A N/A N/A 8.26 4 N/A 7.16 4.11 1.27 8.44 9.26 N/A 11 6.36 1.66 3.12 0.70 1.95 3.58 6.87 9 7.1 0.68 3.5

Annual TRENDS

Volume: Avg Vol (3m): Market Cap: P/E (ttm): EPS (ttm): Div & Yield:

1,616,048 9,649,160 145.89B 19.33 3.25 1.76 (2.80%

Distribution
MAX Cola is one of the leading brands that is easily available worldwide. You can find it everywhere due to the increased rate of demand. Anywhere at any time, you can find this brand and this is all because of the strategies implemented by MAX Cola.

Distribution channel
It is defined as a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user. A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers, Retailer (also called dealer or reseller), who sells to end customers Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alice from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. process of transfer the products or services from Producer to Customer or end user

Distribution Objectives
Objectives: A firms distribution objectives will ultimately be highly related some will enhance each other while others will compete. For example, as we have discussed, more exclusive and higher service distribution will generally entail less intensity and lesser reach. Cost has to be traded off against speed of delivery and intensity (it is much more expensive to have a product available in convenience stores than in supermarkets, for example). Narrow vs. wide reach: The extent to which a firm should seek narrow (exclusive) vs. wide (intense) distribution depends on a number of factors. One issue is the consumers likelihood of switching and willingness to search. For example, most consumers will switch soft drink brands rather than walking from a vending machine to a convenience store several blocks away, so intensity of distribution is essential here. However, for sewing machines, consumers will expect to travel at least to a department or discount store, and premium brands may have more credibility if they are carried only in full service specialty stores.

Retailers involved in a more exclusive distribution arrangement are likely to be more loyal i.e., they will tend to Recommend the product to the customer and thus sell large quantities; Carry larger inventories and selections; Provide more services

Thus, for example, Compaq in its early history instituted a policy that all computers must be purchased through a dealer. On the surface, Compaq passed up the opportunity to sell large numbers of computers directly to large firms without sharing the profits with dealers. On the other hand, dealers were more likely to recommend Compaq since they knew that consumers would be buying these from dealers. When customers came in asking for IBMs, the dealers were more likely to indicate that if they really wanted those, they could have themBut first, lets show you how you will get much better value with a Compaq. Distribution opportunities: Distribution provides a number of opportunities for the marketer that may normally be associated with other elements of the marketing mix. For example, for a cost, the firm can promote its objective by such activities as in-store demonstrations/samples and special placement (for which the retailer is often paid). Placement is also an opportunity for promotione.g., airlines know that they, as prestige accounts, can get very good deals from soft drink makers who are eager to have their products offered on the airlines. Similarly, it may be useful to give away, or sell at low prices, certain premiums (e.g., T-shirts or cups with the corporate logo.) It may even be possible to have advertisements printed on the retailers bags (e.g., Got milk?) Other opportunities involve parallel distribution (e.g., having products sold both through conventional channels and through the Internet or factory outlet stores). Partnerships and joint promotions may involve distribution (e.g., Burger King sells clearly branded Hershey pies). Deciding on a strategy In view of the need for markets to be balanced, the same distribution strategy is unlikely to be successful for each firm. The question, then, is exactly which strategy should one use? It may not be obvious whether higher margins in a selective distribution setting will compensate for smaller unit sales. Here, various research tools are useful. In focus groups, it is possible to assess what consumers are looking for an which attributes are more important. Scanner data, indicating how frequently various products are purchased and items whose sales correlate with each other may suggest the best placement strategies. It may also, to the extent ethically possible, be useful to observe consumers in the field using products and making purchase decisions. Here, one can observe factors such as (1) how much time is devoted to selecting a product in a given category, (2) how many products are compared, (3) what different kinds of products are compared or are substitutes (e.g., frozen yogurt vs. cookies in a mall) Distribution chain AND DESIGN

MAX COLA HAS DIFFERENT TYPES OF DISTRIBUTIONAL CHANNELS CHAIN SPREAD ACROSS THE WORLD WIDE Intensive distribution - Where the majority of resellers stock the 'product' (with convenience products, for example, and particularly the brand leaders in consumer goods markets) price competition may be evident. 1. Selective distribution - This is the normal pattern (in both consumer and industrial markets) where 'suitable' resellers stock the product. 2. Exclusive distribution - Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the 'product'.

Independent auditors report to the members of MAX-Cola Limited

Report on the Financial Report We have audited the accompanying financial report of MAX-Cola Amatil Limited (the Company), which comprises the statements of financial position as at 31 December 2009, and the income statements, the statements of comprehensive income, statements of changes in equity and statements of cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors declaration of the consolidated entity comprising the Company and the entities it controlled at the years end or from time to time during the financial year. Directors Responsibility for the Financial Report The directors of the Company are responsible for the preparation and fair presentation of the financial report in accordance with the Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 1(b), the directors also state that the financial report, comprising the financial statements and notes, complies with International Financial Reporting Standards as issued by the International Accounting Standards Board. Auditors Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, we consider internal controls relevant to the entitys preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit we have met the independence requirements of the Corporations Act 2001. We have given to the directors of the Company a written Auditors Independence Declaration, a copy of which is included in the directors report. In addition to our audit of the financial report, we were engaged to undertake the services disclosed in the notes to the financial statements. The provision of these services has not impaired our independence. Auditors Opinion In our opinion:

1. the financial report of MAX-Cola Amatil Limited is in accordance with the Corporations Act 2001, including: i giving a true and fair view of the financial position of MAX-Cola Limited and the consolidated entity at 31 December 2009 and of their performance for the year ended on that date; and 2. ii complying with Australian Accounting Standards (including the 3. US Accounting Interpretations) and the Corporations Regulations 2001. 2. the financial report also complies with International Financial Reporting Standards as issued by the International Accounting Standards Board. Report on the Remuneration Report We have audited the Remuneration Report included in pages 17 to 37 of the directors report for the year ended 31 December 2009. The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with US Auditing Standards. Auditors Opinion In our opinion the Remuneration Report of MAX -Cola Limited for the year ended 31 December 2009, complies with section 300A of the Corporations Act 2001. Ernst & Young T rent van Veen Sydney Partner 17 February 2010