TERM PROJECT MARKETING STRATEGY 1

Marketing Strategies Of Coca Cola PRESENETED TO: MR. SUFIAN AHMAD PRESENTED BY: Sami Ullah Khan 27s-640 2

TABLE OF CONTENTS CONTENTS 1. 2. 3. 4. Acknowledgement. Mission statement Introd uction. Coca Cola. a. Coca Cola International. b. History. 5. Management. 6. Mar ket share. 7. Financial report. 8. Dividends and Cash Plan. 9. Products. 10. Str ategic planning. 11. Bottlers owned by Coca cola 12. Coca Cola Pakistan. 13. Maj or Competitors a. Pepsi b. History. c. Financial assets. Market share. Financial report. Products. Methodology 14. Some basic information regarding marketing of coke a. Target market: b. Major segments: c. Factors effecting sales: d. Major competitors: e. Strategies of quality: f. Threats from competitors: g. Targets t hat would like to attain: h. Expanding target market i. Threats and opportunitie s for price: j. Strategies of getting goals i.e. high profits: k. Marketing strate gy: l. Expectations for the coming year: m. How coke determine the yearly budget : 15. Marketing strategies 16. Pest analysis . 3

DEDICATION This report is dedicated to my beloved parents, Who educated me and enabled me t o reach at this level. 4

ACKNOWLEDGEMENT We think if any of us honestly reflects on who we are, how we got here, what we think we might do well, and so forth, we discover a debt to others that spans wr itten history. The work of some unknown person makes our lives easier everyday. We believe it's appropriate to acknowledge all of these unknown persons; but it is also necessary to acknowledge those people we know have directly shaped our l ives and our work. First of all we would like to thank our teacher Mr. Muhammad Shafique for their guidance through out the semester. Then we would like to than k our friend and brother Mr. Zeeshan Anjum for providing us the information that was required for completion of this project. 5

The Mission Statement of the Coca Cola Company Our mission statement is to maximize shareowner value over time. In order to ach ieve this mission, we must create value for all the constraints we serve, includ ing our consumers, our customers, our bottlers, and our communities. The Coca Co la Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. Consumer demand drives everything we do. 2. Brand Coca Cola is the core of our business 3. We will serve consumers a broad selection of the nonalcoholic ready-todrink beverages they want to drink through out the day. 4. W e will be the best marketers in the world. 5. We will think and act locally. 6. We will lead as a model corporate citizen. The ultimate objectives of our busine ss strategy are to increase volume, expand our share of worldwide nonalcoholic r eady to drink beverages sales, maximize our longterm cash flows, and create econ omic value added by improving economic profit. The Coca Cola system has more tha n 16 million customers around the world that sells or serves our products direct ly to consumers. We keenly focus on enhancing value for these customers and help ing them grow their beverage businesses. We strive to understand each customers b usiness and needs, whether that customer is a sophisticated retailer in a develo ped market a kiosk owner in an emerging market. There are nearly 6 million peopl e in the world who are potential consumers of our companys product. Ultimately, o ur success in achieving our mission depends on our ability to satisfy more of th eir beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time. 7

COCA COLA INTERNATIONAL HISTORY: Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. The Coca-Cola Company traces its beginning to 1886, when an Atlanta pharmacist, Dr. John Pember ton , began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Th omas and Joseph B. Whitehead , secured the exclusive rights to bottle and sell C oca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Co la Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corpora tion's bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split-adjusted price of $5.5 0 a share. On an annual basis, total unit case sales were 880,000 in 1986. In De cember 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola B ottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dr amatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 bill ion, and total revenues were $5 billion 8

MANAGEMENT: The hierarchy of Coca Cola Company is as follows. Chairman Board of governors Vice Chairman and chief operating officer Executive Vice Presidents Senior Vice Presidents Vice Presidents MARKET SHARE: SHARE Being the biggest company in the soft drink industry, Coca Cola enjoys the large st market share. This company controls about 59% of the world market. GLOBAL MARKET SHARE: The following table can show the worldwide operating segments. (Table) Unit case growth 10 year compound annual growth Compan y Industry 5-year compound annual growth Compan y Industry 2001 annual growth Compan y Industry Nonalcoholic drink 2002 Company share All commercial Beverages 2002 Compan y share Compan y per capita Income 6% 5% 5% 5% 4% 4% 18% 9% 70 9

This shows that the market of the company is geographically vast and it is contr olling it with great success. In 2002, the company grew their carbonated soft-dr ink business by nearly 250 million unit cases and generated record volumes. Beca use carbonated soft drinks are the largest growth segment within the nonalcoholi c ready-to-drink beverage category measured by volume, that is why they are focu sing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success. Thus they are i ncreasing their market day by day. The operation income earned by Coca Cola Comp any can be illustrated by the following pie chart. (Figure) This strategy has worked a lot and it has helped them to become the Worlds leadin g Soft Drink Company. The global unit sale of the Coca Cola Company is increasin g from the last ten years. The data of the global unit sale of the Coca Cola Com pany can be represented by following chart. (Figure) 12 10 8 6 4 2 0 1971 1981 1991 2002 unit sale in billions So there is positive growth in the market of the Coca Cola Company. There is a w orldwide volume increase by 4% with strong international growth of 5%. This is o nly due to the innovative marketing programmers, which has deepened the relation ship of the customers and Coca Cola. The financial health and success of their b ottling partners is a critical component of The Coca-Cola Company's ability to b uild and deliver leading brands. 10

In 2002, the company had worked with their bottlers to turn good intentions into reality by improving the system economics. The results in 2002 reflect this ste adily improving and mutually constructive relationship between the Company and t heir bottling partners. The main reason behind this relationship is to continue realizing shared opportunities for growth, with closer coordination of operation s including customer relationships, logistics and production. MARKET SHARE BY AREA: Coca Cola is the world-renowned soft drink and the company is currently operatin g through out the world. The world wide total is about 17.8 billion. The operati on review according to the segments is as follows. Operation Review (2002 worldw ide unit case volume by operating segment) NORTH AMERICA 30% LATIN AMERICA 25% E UROPE & MIDDLE EAST 22% ASIA 17% AFRICA 6% NORTH AMERICA LATIN AMERICA EUROPE & MIDDLE EAST ASIA AFRICA So the volume is least in the Africa and most in the North America. The data abo ut the market share of this company area wise is given in the following table. T he above table shows the geographical earning of the Coca Cola Company and from this data; we can find out that the customers of Coca Cola are increasing which is shown by the companys per capita income. Unit case equals 24 eight-ounce servi ngs. The column, which shows the non-alcoholic beverages consist of commercially , sold beverages, as estimated by the Company based on available industry source s. The country column is derived from 11

The Company's unit case volume while the industry column includes nonalcoholic r eady-todrink beverages only, as estimated by the Company based on available indu stry sources. (Table) Country Unit case growth Nonalcoholi c Drinks 2002 Compan y share All commercial Beverages 10 year 5-year compound compound annual annual growth growth Compan y Industry Compan y Industry 2002 annual growth Compan y Industry 2002 Compan y share Company per capita Income North America United States Latin America Argentin a Brazil Chile Mexico Europe & Middle East Eurasia France German y Great Britain Italy Middle East Spain Asia Africa 4 4 6 7 5 9 7 6 5 5 7 4 5 6 10 3 3 3 6 6 3 5 8 5 3 3 6 2 6 3 9 3 2 2 3 7 3 (2) 2 2 2 2 4 2 5 3 5 4 22 23 24 20 23 56 22 12 15 16 15 10 13 23 18 6 398 419 205 236 144 336 462 72 17 8 1 8 1 12 6 7 7 8 3 2 2 3 12 4 6 6 6 9 (1) 11 4 7 8 6 8 5 3 1 2 3 5 5 7 3 (14) 7 (6) 8 2 4 4 10 10 1 3 1 3 2 8 4 7 6 14 9 14 17 9 8 17 14 34 5 5 7 6 6 3 12 5 11 39 110 193 193 104 17 264 23 34 12

In Asian population, which is the satisfied customer of Coca Cola, is approximat ely 3.2 billion and the average consumer enjoys close to two servings of our pro ducts each month. Through an intense focus on Coca-Cola, innovation and new beve rages, the company has achieved volume growth of 10 percent in 2002. With develo ping economies and populations, this region has strong long-term potential, and the company is building an exciting family of beverage brands in addition to exp anding the popularity of our core brands, led by Coca-Cola. In China, for exampl e, sales of Coca-Cola increased 6 percent. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart. (Figure) So the company is emphasizing more in this area and is trying to develop a strat egy, which can increase the growth of the consumption of Coca Cola by the people of Asia. Among the countries of Asia, Japan has the highest percentage, which i s about 29%. Among others, Pakistan, India and Bangladesh are those countries wh ere the average consumption is increasing day by day. 13

FINANCIAL REPORT: This company is financially very strong. It is due to the strong finances, the c ompany is still surviving the ups and down of the business world. The financial report of Coca Cola Company of the year 2001 and 2000 along with the percentage change is as follows. (Table) Year Ended December 31, (In millions except per sh are data, ratios and growth rates) 2002 Net operating revenues Operating income Net income Net income per share (basic) Net income per share (diluted) Net cash provided by operating activities Business reinvestment Dividends paid Share repu rchase activity Free cash flow Return on capital Return on common equity Unit ca se sales (in billions) International operations North America operations Worldwi de 20,092 5,352 3,969 1.601 1.601 4,110 (963) (1,791) (277) 3,147 26.6% 38.5% 12 .5 5.3 17.8 2001 19,889 3,691 2,177 0.882 0.882 3,585 (779) (1,685) (133) 2,806 16.2% 23.1% 11.9 5.2 17.1 Percentage change 1% 45% 82% 82% 82% 15% 24% 6% 108% 1 2% 5% 2% 4% 2002 basic and diluted net income per share includes a non-cash gain of $.02 per share after taxes, which was recognized on the issuance of stock by Coca-Cola E nterprises Inc., one of the equity investors of this company. 2002 basic and dil uted net income per share includes the following charges: $.24 per share after i ncome taxes related to an organizational Realignment. $.19 per share after incom e taxes related to the Company's portion of charges recorded by the investors of the company. $.16 per share after income taxes related to the impairment of cer tain bottling, manufacturing and intangible assets. $.05 per share after income taxes related to the settlement terms of a discrimination lawsuit. $.01 per shar e after income taxes related to incremental marketing expenses in Central Europe . 14

These charges are partially offset by a gain of $.05 per share after income taxe s related to the merger of Coca-Cola Beverages plc and Hellenic Bottling Company S.A. and $.04 per share after income taxes related to benefits from a tax rate reduction in Germany and from favorable tax planning strategies. DIVIDEND AND CASH INVESTMENT PLAN: The Dividend and Cash Investment Plan permits shareowners of record to reinvest dividends from Company stock in shares of The Coca-Cola Company. The Plan provid es a convenient, economical and systematic method of acquiring additional shares of our common stock. All shareowners of record are eligible to participate. Sha reowners also may purchase Company stock through voluntary cash investments of u p to $125,000 per year. At year-end, 76 percent of the Company's shareowners of record were participants in the Plan. In 2002, shareowners invested $36 million in dividends and $31 million in cash in the Plan. 15

COMPANY STATISTICS: The statistics of this company is impressive. Since it is operating through out the world that is why the number of employees and the bottling equipments is hig hest among the other bottling companies. There is a constant increase in every a spect when we compare the statistics of 2001 and the statistics of 2002. This is because; Coca Cola Company is increasing its volume day by day. The expansion o f this company, which shows the success of Coca Cola brands, results in the perc entage change in the statistics of the two years. The statistics is as follows. (Table) 2002 Equivalent cases Bottle and cans Fountain Employees Vehicles Cold dr ink equipments Facilities Production only Distribution Combination Total Percent of North America population coverage Number of States of Operation Bottle and c an equivalent case package distribution Cans Non-refillable bottles Refillable b ottles Capital structure Net debt to total capital ratio EBITDA interest coverag e Weighted average cost of debt Key Statistics Constant territory bottle and can volume growth Bottle and can net revenues per case change Bottle and can cost o f sales per physical case change Reported EBITDA (in billions) Reported EBITDA c hange Capital expenditures( in billions) %-age of net operating revenues Coverag e of North American Can/bottle volume 4.2 billion 87% 13% 72,000 54,000 2.4 mill ion 25 385 53 463 80% 46 44% 52% 4% 63% 3 6.3% 3% Flat 1 $1.95 (18)% $0.97 6% 83 % 2001 3.8 billion 87% 13% 67,000 52,000 2.3 million 25 361 50 436 72% 46 45% 51 % 4% 59% 3 6.8% % 2% % $2.39 9% $1.18 8% 74% 16

EBITDA is the Earnings before interest, taxes, depreciation, and amortization, a nd other non-operating items. Net Debt is the Long-term debt plus current portio n of long-term debt less cash and marketable securities. Equivalent Case or Unit Case is the physical case and fountain gallons converted to a standard unit of measure defined as 24 eight-ounce servings or 192 ounces per equivalent case sol d by Coca-Cola Enterprises. PRODUCTS: There are different brands of the Coca Cola Company, which are currently in use through out the world. This company not only deals in the carbonated drinks but also other drinks. While launching its product, the marketing team considers the culture of the country. Major brands of coca cola Coke Sprite Fanta Diet coke Coke classic 17

The over all volume of this company is as follows. (Figure) The commitment of the company is to devote resources to water only in markets wh ere it expects profitable growth. This strategy has paid dividends. The company has successfully applied its approach to brands in several key markets, including Ciel in Mexico, Mori No Mizudayori in Japan, Bonaqua in Russia and Kinley in In dia. Backed by a strong network of bottling partners through out the United Stat es, Dasani became the nation's fastest-growing water brand. In Eurasia, the enti re Turkuaz brand team worked together to launch Turkey's first purified water br and. This year, Coca-Cola Company also successfully energized a major piece of i ts beverage strategywater. By the end of 2001, its bottled water volume exceeded 5 70 million unit cases, making it the second biggest contributor to the growth of the company after carbonated soft drinks. Three of the water brands, Dasani, Ci el and Bonaqua each achieved sales of over 100 million unit cases for the year. In 2001and 2002, the company has also made good progress in coffees and teas. Be verage Partners Worldwide, the renewed and strengthened marketing partnership wi th Nestl S.A., began operations in 2001. This partnership combines Nestl's knowled ge in life science, research and development with the expertise of Coca Cola Com pany in brand building and distribution. At the same time, the company grew Geor gia coffee in Japan by 3 percent through awardwinning marketing in a category th at was flat for the year. Also in Japanwhere The CocaCola Company is the leader i n the total tea category, the second-largest category in the non-alcoholic ready -to-drink segmentit launched Marocha Green Tea. With sales of 46 million unit cas es for the year, Marocha Green Tea is the fastest-growing product in the fastest -growing category: green tea. The popularity of Marocha is also recognized by th e industry with a leading trade journal naming Marocha the most popular new food and beverage product of the year. 18

Know the most recognized word on the planet after OK! 19

Among the soft drinks Fanta and Sprite become successful along with the major br and Coca Cola and Diet Coke. In key markets, the company has created new packagi ng sizes to satisfy consumer demands. Increasingly, Mexican families have lunch together at home. The average Mexican household drinks two-and-a-half liters or more of soft drinks during that break, while a twoliter bottle was the largest a vailable package. So the company introduced a convenient 2- liter bottle to selec t regions, contributing to the sale of nearly 1.5 billion unit cases of CocaCola in Mexico this year. This larger bottle will complete its nationwide rollout in 2002. In China, Coca-Cola is an integral part of holiday celebrations and the f amily get-togethers that accompany such events. Through an intense focus on Coca -Cola, innovation and new beverages, it has achieved volume growth of 10 percent in 2001. In China, sales of CocaCola increased by 6 percent. In the United Stat es, recognizing that consumers often enjoy their diet Coke with a slice of lemon , the company "bottled" the concept. The resultdiet Coke with lemoncontributed to volume growth of 4 percent for the number-one diet. Soft drink in North America: diet Coke. The company increased its two largest bottle sizes during the 2001 h olidays, and festival packaging helped drive a 6 percent volume increase for Coc a-Cola. The packaging innovations do not just involve resizing. The company has also responded to consumers' changing fashion styles with new bottles. With bran ds such as Minute Maid, Hi-C, Simply Orange and Disney juices and juice drinks i n the United States, Qoo in Asia, Kapo in Latin America and Bibo in Africa. This year, the company re-launched its global sports-drink business, investing in ne w products, packaging, positioning and marketing. The results speak for themselv es: its global sports drinks, led by Powerade and Aquarius, grew by 13 percent in 2002, nearly double the growth rate of the worldwide sports-drink category. Rev italized in the United States, the company introduced Powerade in nearly every m ajor Western European market, including Great Britain, Germany and Spain, as wel l as in Mexico and Latin America. The company launched 27 products in 2001. The commitment of the company to packaging innovation also resulted in new initiativ es for our fountain business, a channel through which many consumers enjoy CocaCola. In the United States, the company developed Fountain, a total beverage dis pensing system that is more flexible and more reliable. Two years of research re sulted in a dispensing system that provides exceptional beverage quality, easy t o upgrade technology, brand and graphic customization and improved reliability. 20

STRATEGIC PLANNING In the year 2002, the company had a great success, as the strategy worked which resulted in making Coca Cola Company the worlds leading company. In 2001, company accomplished the crust of its strategy as Worldwide volume increased by 4 percen t with strong international growth of 5 percent and clear signs that our North A merican business is growing solidly and predictable. Earnings per share grew by 82 percent, as we delivered on our commitment to create volume growth while aggr essively Return on common equity grew from 23 percent in 2000 to 38 percent this year. Return on capital increased from 16 percent in 2000 to 27 percent in 2001 . The company has generated free cash flow of $3.1 billion, up from $2.8 billion in 2000, a clear indication of its underlying financial strength. The strategy for the future of the company is very straightforward. The marketing strategy fo r the year 2002 is as follows, Accelerate carbonated soft-drink growth, led by C oca-Cola. Selectively broaden the family of beverage brands to drive profitable growth. Grow system profitability and capability together with our bottling part ners. Serve customers with creativity and consistency to generate growth across all channels. Direct investments to highest potential areas across markets. Driv e efficiency and cost-effectiveness everywhere. MAJOR COMPETITOR 21

PEPSI INTERNATIONAL HISTORY PepsiCo is a world leader in convenient foods and beverages, with revenues of ab out $27 billion and over 143,000 employees. The company consists of the snack bu sinesses of Frito-Lay North America and Frito-Lay International; the beverage bu sinesses of PepsiCola North America, Gatorade/Tropicana North America and PepsiC o Beverages International; and Quaker Foods North America, manufacturer and mark eter of ready-to-eat cereals and other food products. PepsiCo brands are availab le in nearly 200 countries and territories. Many of PepsiCo's brand names are ov er 100-years-old, but the corporation is relatively young. PepsiCo was founded i n 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 20 01.would entertain the listener with the latest musical selections rendered by v iolin or piano or both. The new name, Pepsi Cola, is derived from the two of the p rinciple ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At that time, Bradhams advertising praises his drink as Exhilarating, invigorating , aids digestion. 1990-2002 The advertisement of the Pepsi changes to, You got the right one baby, Uh-Huh!.Wit h the extensive usage of the stars in the adds, the popularity of Pepsi increase . In 1992 PepsiCola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Outside th e United States, Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. PepsiCola beverages are available in more than 190 c ountries and territories. In Asia, they selected Lahore to make their regional o ffice. This was done in 1970. This regional office is monitoring all the operati ons carried out in South West Asia. As in Pakistan, they only entered beverage i ndustry. They have eleven bottlers covering whole Pakistan. The plant operating here is Riaz Bottlers (Pvt) LTD. This plant was established at Lahore in 1974. T he total capacity of the plant is 30,000 cases per day. They have four filling l ines in the plant operating on the three shift bases. Each shift is of eight hou rs. They have permanent work force of 750 people and they employee approximately 1000 people more on temporary basis during summer season. 22

Pepsis Products Pepsi Teem Mirinda Pepsi Max Pepsi Lemon Pepsi Blue Mountain Dew 7up 23

COCA COLA PAKISTAN The Coca-Cola Company began operating in Pakistan in 1953. Coca-Cola, Fanta and Sprite are the brands in Pakistan. The Coca-Cola System in Pakistan operates thr ough eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pak istan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujr anwala, Faisalabad, Rahimyar Khan, Multan and Lahore. The remaining two plants, independently owned, are in Rawalpindi and Peshawar. The Coca-Cola System in Pak istan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan e mploys 1,800 people. During the last two years, The Coca-Cola System in Pakistan has invested over $130 million (U.S.) 49 years of refreshment in Pakistan Coca-Cola introduced in Pakistan 1953 Fanta introduced in Pakistan Sprite was in troduced Diet Coke & Fanta Lemon 1965 1972 2001 24

PROMISE OF COKE The basic proposition of our business is simple, solid and timeless. When we bri ng refreshment, value, joy and fun to our stakeholders, then we successfully nur ture and protect our brands, particularly Coca-Cola. That is the key to fulfilli ng our ultimate obligation to provide consistently attractive returns to the own ers of our business. TARGET MARKET Cokes commercials basically based on young generations, So, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-ta rget market. MAJOR SEGMENTS Major segments are basically those people who take this drink daily and those ar eas where the demands is higher then the other areas. There are so many people w ho take this drink daily and those people who take weekly and those who take les s often are always there as well. So, their basic segments are those people who take this drink regularly. FACTORS EFFECTING SALES There are so many factors, which affects the sale of coke. Here we are discussin g three major factors which effects coke. Per capita income Competitors Weather Per Capita Income First we will discuss about Per capita income. This is major factor that affects the sale of this soft drink. Because which every passing year budgets are becomi ng very strict and tight in order to purchase things. So the disposable incomes of the people are coming down. They spend heavily on rents, utilities, and educa tion and basic necessities and after that when they get extra money they think a bout this soft drink .So the decreasing per capita income effects badly in selli ng and production of this soft drink. 25

And to get through with this difficulty there is need to increase the level of p er capita income of Pakistan because it is much lesser than the rest of the coun tries. Competitors Cokes major competitor is PEPSI and there is no hesitation to say this because ever y one knows that and all the other cold drinks and water, coffee, tea are the co mpetitors. Weather Weather is the third major factor in effecting the Cokes selling. This is underde veloped market so the cokes consumption in summers is 60% and in winters is 40%. MAJOR CUSTOMERS NEED First of all the majority dont care that what they are going to have. In other wo rds, they dont care before drinking that whether it is Pepsi or coke. They dont actual ly differentiate between these two brands in order to their tastes. Consumers ba sically drink what they get. They believe on WHAT COLD THEY SOLD Consumers availabi lity in brands is basically works like: Push availability Pull consumers demand. For this reason Coca-Cola have provided their coolers and freezers in the market . They have maximum number of coolers and freezers in the market. They provide t his infrastructure free of cost just to provide child coke to their customer, wh ich they want to be purchase. Their salesman and mechanics regularly visit all t he shops where coke has its infrastructure to check that either it is in proper condition or not, if not then they immediately change or repair it. 26

MAJOR COMPETITORS Consumers firstly decide that they are going to have a soft drink. Then they com pete brands with each other. Like they compete Coke with Pepsi and Sprite with 7 up and team .So the major competitor of Coke is Pepsi. When they motivate to any other brand or on Coke its in instinct basically that based on messages derive c ertain feelings. But Coca Cola thinks in a different way, they believe that RC C ola, new coming AMRAT Cola, and all juices, even they take water and tea as thei r competitors. STRATEGIES OF QUALITY After Micro and macro analysis Brand coke is primarily role 1. Enhance competition moments 2. When people watch cricket 3. Through commercialization 4. Fun time T hough these strategies there could be better understanding and better connection with the public. These are the key consumption. THREATS FROM COMPETITORS Threats are well planned. Price is the major threat. When price goes certain bey ond the exact price whether come down or go higher its effects the consumption o f soft drink. Because when the price go higher people go for the substitute of co ke i.e. Pepsi. And when price goes down they think that there is must be some thi ng wrong in it. In short it all depends on customers perception. TARGETS THAT WOULD LIKE TO ATTAIN Every organization runs on the bases of profit maximization so Coke is also look ing for a high profit margin. There are three major ways of making money Over ni ght profit Windfall profit Ethical and un-ethical ways 27

Over Night Profits They could be over night profit that is for the number 1 brand for the year. Thi s could be got my increasing sales volume Windfall Profit Can be windfall profit. They are the extras profit. When the consumption the con sumption is on boom. So, there is different kind of profits. Ethical And Unethical Ways Profit can also get through ethical and unethical ways. They believe on this quo te Every thing is fare in love and war. Some profits stays for some time like over night profits and some just come and go like wind fall profits. And they can also get profit through different approaches. EXPANDING TARGET MARKET In last 2 years Coke has come back in aggressive manner. Consumer has choice Att ractive brand name Brand differentiating Consumer Has Got Choice Now the consumer has got choice. Because now they know the name of another big b rand, though coke is the 2nd best name but it can get a better position after so me time Attractive Brand Name Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word ok. So people can better differentiate brands with eac h other. Brand Differentiation Now different companies have got different brand names. So, people can distingui sh between brands. Two major brands coke and Pepsi also have brand names. 28

Coca Colas Brand Coca cola is US brand. Because they believe in the togetherness, being people toge ther and friends are being together. Coca Cola strongly believes that Pakistani temperament is US not ME Pepsis Brand Pepsis brand is basically is basically ME branded. They use the temperament of ME. In contrast to Coke they believe on individual struggle. THREATS AND OPPORTUNITIES FOR PRICE Opportunities If Coke is considered a luxury product. Then there is the tax rate system 15% sales tax 20% - excise duty 27% - goes to government 03% - In making Budget Afte r paying all these taxes coke has to pay electricity charges. We have to spend o n distributions. After paying all these expenses Cokes margin squeezed and consum ers have to pay for increasing tariffs. These are the opportunities through whic h we can increase the price and can get profits. Threats There are much more threats in increasing prices. Because same problem of substi tute. If Coke increase the price lets say 1 rupee. Then people definitely wont go for coke. They have the best substitute of Coke that is Pepsi. So these are the threats in increasing prices. Coke will lose the margin of its profit and can f ace loss. 29

STRATEGIES OF GETTING GOALS I.E. HIGH PROFITS To increase the price is the least thing, which Coke can adopt. There are so man y ways through which Coke can increase the profits. Some major ways are as follo ws. Volume can be increased Interest level of consumers To take part in energeti c festivals How to increase the volume of consumers? Coke can increase the volume by expanding the industry of coke. Through advertis ements, offering different interesting things to attract people towards this pro duct. How to increase the interest level of consumers? Coke is increasing the interest level of consumers by offering different flavors . For example Coke is increasing the number of flavors in Fanta, this is one of th e product of coke. Through offering different flavors Coke can increase the Leve l of consumers and through this profits can be gained. How to take part in energetic festivals? Coke is already taking part in the festival like Basant since last 3 years. Coke o ffers different attractive things in their festival and through this Coke gained high profit and consumption of coke increased on these occasions. And this year in this year 2002 people were anxiously waiting that what interesting thing cok e is going to offer. MARKETING STRATEGY Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasion s. What people want in a beverage is a reflection of who they are, where they li ve, how they work and play, and how they relax and recharge. Whether you're a st udent in the United States enjoying a refreshing Coca-Cola, a woman in Italy tak ing a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determine d not only to make great drinks, but also to contribute to communities around th e world through our commitments to education, health, wellness, and diversity. 3 0

Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It's a special thing to have billions of friends around the world, and we never forge t it. 31

MARKET POSITIONING Product Range The total range of Coca Cola company in Pakistan includes: Coke. Sprite. Fanta. Diet Coke. And company offers their products in different bottle sizes these includes: SSRB LRB NRB PET 1.5 CANS (standers size returnable bottle) (litter returnable bottl e) (no return bottle) or disposable bottle (1.5 litter plastic bottle) (tin pack 330 ml) Packing Coca cola products are available in different packing 24 regular bottle shell 6 bottle pack for 1.5 pets 12 bottles in a pack for disposable bottle 24 cans in o ne pack. 32

PRICE STRATEGY Trade Promotion Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and mid dle man push their product in the market. And thats why coca cola seen more in th e market. And they have a good sale in the market because according to the exper t which product seen more in the market that sells more. Seen as sold They do agre ements with a shop keepers and stores to exclusive sale in that stores. These st ores are called as KEY accounts in their local language. And coke also invest he avy budget on these stores and offers them free samples and free bottles and som e time cash incentives. Different Price In Different Seasons Some times Coca Cola Company change their product prices according to the season . Summer is supposed to be a good season for beverage industry in Pakistan. So i n winter they reduce their prices to maintain their sales and profit. But normal ly they reduce the prices of their pet bottles or 1 litter glass bottle. 33

PROMOTION STRATEGIES Getting shelves They gets or purchase shelves in big departmental stores and display their produ cts in that shelves in that style which show their product more clear and more a ttractive for the consumers. Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eyecatching positions. Normally they keep their freezers near the entrance of t he stores. Sale Promotion Company also do sponsorships with different college and schools cafes and sponsor s their sports events and other extra curriculum activities for getting market s hare. UTC Scheme UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, ca sh prizes etc. This scheme is very much popular among children. DISTRIBUTION CHANNELS Coca Cola Company makes two types of selling Direct selling Indirect selling Direct Selling In direct selling they supply their products in shops by using their own transpo rts. They have almost 450 vehicles to supply their bottles. In this type of sell ing company have more profit margin. 34

Indirect Selling They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so m any whole sellers and agencies to assure their customers for availability of coc a cola products. FACILITATING THE PRODUCT BY INFRASTRUCTURE For providing their product in good manner company has provided infrastructure t hese includes: Vizi cooler Freezers Display racks Free empty bottles and shells for bottles ADVERTISEMENT Coca cola company use different mediums Print media Pos material Tv commercial B illboards and holdings Print Media They often use print media for advertisement. They have a separate department fo r print media. POS Material Pos material mean point of sale material this includes: posters and stickers dis play in the stores and in different areas. 35

TV Commercials As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels. Billboards And Holdings Coca cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards. EXPECTATIONS FOR THE COMING YEAR Every thing starts from the attitude of consumers behavior. And the basic key to attract the consumers is to throw the money away. And positive feeling felling wit h the brand, which they used to have Coke wants to advertise their products heav ily in the coming year. And it will take the 10% of their profits. And when we t ake it as a global level it is $ I billion. Coming year is the challenging year for the industry of Coke. They have to take lots of decisions that how to increa se the production and where they have to spend money. For gaining success in com ing year they have to have some important things like: 1. Loyal consumers are im portant for companys success. 2. Workers should be the brand centric not the prom otion centric. 3. They should know how much to for the brand activities. 4. They should also know that how much to do with the promotion activities for brand. HOW COKE DETERMINE THE YEARLY BUDGET Coke determines its yearly budget by the Sales volume Profitability Target volum e 36

Sales Volume Coke determines its yearly budget through the sales volume. They first concentra te on the thing is what is the condition of their sales? if the condition is good of their sales then they definitely increase their production and sales volume. Otherwise they concentrate on their old strategies. Profitability: The second thing through which they determines budget is the profit .if they r get ting profits with the high margin, then they definitely want to increase their p rofits in the next coming year. Every organization runs on the basis of getting high profits. No organization wants to face Loss in their business. To get profi t is the first priority of the Coke. Target Volume: To run the business every industry has some targets, which they want to achieve in a specific time period. If industry achieves those goals in that period then for the coming year it increases the volume of the target. So Coke Follow the sa me thing it has also some goals and targets to achieve in the given time period. When they succeed to achieve that target then they increase their target volume in the next year. 37

SALES PROMOTION ACTIVITIES Coca-Cola Cricket Cricket the most sought after; watched & played game in Pakistan .the game of cr icket has been owned by various brands in the industry for the promotion of thei r products over a period of time. It has ranged from tobacco to lubricants to co mmunication companies to banks to airlines & lately to the beverage industry. Th e competition has become tougher & tougher as the time has progressed. Coca-Cola signed a sponsorship agreement with eight of Pakistans National cricket players. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it consumers & masses invested in the opportunity and launched a massi ve campaign on mass media showing all these cricket stars endorsing & compliment ing CocaCola brand. The Coca-Cola Company developed three TV commercials & four testimonial ads with the player & ran them on the national net work during vario us cricket matches. These bold steps taken by the Coca-Cola marketing unit accla imed them many acknowledgements across the board. This campaign helped Coca-Cola to establish its association with the game & the player. Coca-Cola Concerts Abrar-ul-haqs distinct style, lyrics & songs have made him an instant hit among t he masses in Pakistan. His enormous popularity in the country & abroad is suppor ted by Coca-Colas commitment towards providing healthy & fun-filled entertainment for the youth of Pakistan. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured throughout t he country. The TVC campaign focused on the hectic lifestyle of a pop star who f ound respite & relief through Coca-Cola in short moments that he had to himself during a concert. Coca-Colas brand positioning of providing deep down refreshment for the body, soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar. Coca-Cola Food Mela With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated t he people of Karachi, to a festive food festival comprising of 50 restaurants, s pread out all over the bustling citys map. The promotion saw the avid families & friends enjoying the delicacies at the restaurants; all resiliently upholding th e Coca-Cola identity. 38

Coca-Cola Basant Festival In February the month of basant the parks & horticulture authority in Lahore nom inated Coca-Cola the official sponsor of the basant festival .Coca-Cola added to the carnival atmosphere by making the festival free to enter & decorating all m ain roads in Lahore with illuminated kites. Coca-Cola also hosted a concert of p op idol Abrar-ul-haq, had childrens parade & held the Coca-Cola kite flying champ ionship during the basant festival. Now where there is basant there is Coca-Cola, it has been impossible to envisage basant without Coca-Cola. Coca-Cola give the more refreshing flavor to the colors of basant by adding more life to the festiv al, giving the consumer a unique experience which they had never tasted before. Coca-Cola GO-RED Quenching the thirst of motorist, pedestrians & passerbys during Lahores hottest s ummer season, Coca-Colas GO-RED teams went out into the cities main quadrants to ser ve & refresh on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement campaign the GO-RED stall, served well to promote the Coca -Cola industry. Coca-Cola Party in a Park In June 2000, Coca-Cola created an experiential musical evening in Lahore, where Junoon performed. This program was recorded and one-hour program shown in the n ational TV for free.10 million households saw Coca-Cola Party in a Park while 10 t housand people attended the event. Coca-Cola Shopping Festival Coca-Cola hosted The Coca-Cola Shopping Festival Lahores first shopping festival, a resounding success with tempting discounts, live music, great prizes & fire wor ks. Liberty marketing Gulberg was a hive of activity during the weeklong shoppin g extravaganza. The in augural event proved so popular that it is now set to bec ome an annual fixture. Coca-Cola Pet Promotion In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in P akistan. Targeting house wives & family home, Coca-Colas 1.5 liter Pet bottle, to ok the limelight & gained momentum with a campaign promoting the unique packagin g and its numerous consumer benefits .A treat for the family, Coca-Colas PET was offered through a price-off promotion that said.Go out & get some 39

Coca-Cola Ramzan Campaign A very special occasion for the people of Pakistan Ramzan saw another very speci al CocaColas promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with a super price-off promotion. The emphasis on enjoying Coca-Cola at If tar with friends & family. Coca-Cola Wonder of the World Promotion In July 2000, Coca-Cola set the stage of the grand UTC promotion. Coca-Cola went ahead with the idea of giving consumer chances to win fabulous, magical dream va cation to numerous wonder destination throughout the world on every purchase of a 2 50 ml RGB bottle of Coca-Cola, Sprite, & Fanta.The promotion gave consumers a ch ance to win free drink, a trip to PARIS, HOLLYWOOD, NEWYORK, SINGAPORE & CAIRO a long with airfare & four nights free stay in these dream lands. The promotion sa w avid consumer collecting Coca-Cola Crown caps & sparked a keen response from the public , rendering an outstanding testimonial campaign in the second phase, hig hlighting the winners over whelmed in the magical delight of their favorite beve rage Coca-Cola. Coca-Cola & Nokia In August 2001, the new under-the-crown promotion Nikla Kiya?(What have u won) was launched in collaboration with Chimera Nokia.The promotion gave consumer a chan ce to win thousands of Coca-Cola branded Nokia 3310 cellular phones on every purc hase of 750ml RGB bottle of Coca-Cola ,Sprite, & Fanta.The other highlight of pr omotion was the Caught Red Handed campaign. Branded Coca-Cola with caught red hande d team in them went to Lahore & Karachi for three days, with target that anyone b eing caught drinking Coca-Cola will be awarded a nokia 3310 mobile phone & if so meone is caught talking on a nokia mobile will win free supply of Coca-Cola. Cau ght red handed become a huge success among the masses as it was one to one inter action between the Coca-Cola brand & the consumers. This activity helped billed confidence and brand loyalty among core consumers. Coca Cola TV Mazza The coca cola new campaign is coca cola tv mazza, it is a utc scheme in which pe ople are getting television sets of different sizes. These days this scheme is v ery popular among the people. Coca-Cola & Mc Donalds Coca-Cola & key account of MC Donalds launched the we go together joint promotion t o reinstate amongst consumers a real sense of the affinity that, both shares glo bally. The promotion kicked off with pos material (Danglers, Bunting etc) displa yed at all MC Donalds restaurants along with a special offer for coke & fries. 40

Fanta & Sprite Launched In November 2000moving on to n witnessed a soft launch in eturnable bottles of Sprite ative packaging convenience. ss in Pakistan.

the Sprite & Fanta brands, the consumers in Pakista essence. The Coca-Cola Company declared the new NonR & Fanta as the New, On the Go Packs flaunting the innov Fanta & Sprite are sure to enjoy considerable succe

Diet Coke After the acquisition of the individual local franchise bottling facilities in 1 996, the company has successfully launched its first new product, diet coke, for the first time in almost 3 years. The was linked with three fashion shows as Di et Coke is related to fashion & fitness, but the major hit was thematic fashion shows in restaurants, which are the key accounts of the company as this has been never done before in Pakistan. 41

CONCLUSION After thorough research, we come to the conclusion that the marketing strategy o f Coca Cola is working for them and the product is gaining popularity among yout h day by day. RECOMMENDATIONS After completing our project we have concluded some recommendation for the coca cola company, which are following. Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. According to the survey, conducted by the international firm Pakistani people li ke little bit sweeter cola drink. So for this coca cola company should produce t heir product according to the local demand. Marketing team should try to increas e the availability of Coke in rural areas. They should also focus the old people . Now young generation has a trend to drink a coke 2 regular bottles at same tim e, so providing more satisfaction to them company should introduce liter disposa ble bottle. 42

PEST ANALYSIS OF COCA-COLA There are four variables, which we will discuss in our report, they are: POLITICAL VARIABLES Political variables Effects of government regulations & deregulations Effect of environmental protection laws if any Import and export regulations Effect of pol itical conditions in certain countries of Coke Any effect of election, military take over, Revolution at Coke Strongly Effected ++ Some what Effected + No Effec t + NE Some what Effected Strongly Effected YES NE NE YES Conclusion Of Political Analysis: As far as the above table is concerned it could be seen that there are very litt le chances of political variables to effect the cokes production and selling behavi or. In the political variables most of the things are related to Governmental acti vities. So, they dont leave any good or bad impact in the Industry of coke. And t here are some exceptional things like: environmental protection laws they some wha t effect the industry of Coke. From last two years Government is going to be rea lly very much conscious about the environment. But after making the adjustments in plants and applying the proper way of wastage the chances of being affected b y the protection laws are going to be diminished. So it impact good for the Cokes r eputation. And the second thing in political variables which effects Coke is elec tions & military take over Because in the days of elections and marshal laws condi tion the countries production in any field is declined. So it affects slightly t he revolution of Coke. So political conditions are over all leave neutral effects on cokes industry. 43

ECONOMICAL VARIABLES Economical Variables Do soaring interest rates make business task any harder Any effect due to inflation Anything done to reduce unemployment Any effect of 11th September 2001, incident at Coke in Pakistan Strongly Effected ++ Some what Eff ected + No Effect + Some what Effected Strongly Effected YES YES YES NE Conclusion Of Economical Analysis It could be seen that economical variables highly affects the Cokes resolution. Eco nomic factors are those actors who effect the production of any industry. So, Co ke is not the out of question. If the economic conditions of the country is not that strong and Coke increases its Price in this situation. Then it would impact highly negative. And inflation is also not a good position for any countrys prod uction point of view. It also impacts highly negative in the Cokes production. An d as a country concerned like Pakistan where the unemployment rate is very much hi gh. The Coca-Cola system in Pakistan employs 1,800 people. During the last 2 yea rs, the Coca-Cola system in Pakistan has involved over $130 million (U.S). When we draw the conclusion of economic variables. Then we come to know that if economi c variables are in the favorable position of country then they impact good other wise the impact highly bad. 44

SOCIAL VARIABLES Social variables Effects of advertisement of Coke on Public popularity How will do Cokes contribution affect charity organizations of Pakistan Has rising conscio usness of natural resources in people effected your save environment activities. Strongly Effected ++ YES YES YES Some what Effected + No Effect + Some what Effe cted Strongly Effected CONCLUSION OF SOCIAL ANALYSIS EDUCATION The Coca-Cola Company has always believed that education is a powerful force in improving the quality of life and creating opportunity for people and their fami lies around the world. The Coca-Cola Company is committed to helping people make their dreams come true. All over the world, we are involved in innovative progr ams that give hard-working, Knowledgehungry students books, supplies, places to study and scholarships. From youth in Brazil to first generation scholars, educa tional programs in local communities are our priority. ENVIRONMENT A large part or our relationship with the world around us is our relationship wi th the physical world. While we have always sought to be sensitive to the enviro nment, we must use our significant resources and capabilities to provide active leadership on environmental issues, particularly those relevant to our business. We want the world we share to be clean and beautiful. We are always innovating to bring you different delicious beverages. This same spirit of innovation comes alive in our environment programs. Were committed to preserving our environment, from use of more than $ 2 billion (U.S) a year in recycling content and supplie rs, and environment Management initiatives, down to very local neighborhood coll ection and beautification efforts. Heres a sample of what were doing in different communities around the world regarding the conservation of water and natural res ources, climate changes, waste environment education. 45

The Coca-Cola system in Pakistan operates through eight bottlers. Four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). COMMUNITY INVOLVEMENT: In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system initiated a famine-relief program to help victims and was the first private-sec tor company to assist. The Coca-Cola system in Pakistan initiated a voluntary Ha jj program that allows one employee from each plant, selected through a draw, to be sent on the Holy Pilgrimage to Mecca at the Companys expense. TECHNOLOGICAL VARIABLES Technological variables Have business innovations effectively promoted your busi ness Has the governments regulations ever hindered in importing technical equipme nt Does Coke help in promoting paperless environment Strongly Effected ++ YES So me what Effected + No Effect + Some what Effected Strongly Effected YES YES Conclusion Of Technological Analysis Of course business innovation leaves highly good impacts in the business of Coke . As coke use more advance technology in its production process. It will resulte d in increment of their production through out the country. As far as the governm ental hindrances are concerned the impacts highly bad on cokes production. Ever ye ar when budget in announced government taxes rates always shoot up. This approac h of government decreases the profit margin of Coke. As the coke helping in prom oting paperless environment .it impacts good, because computers are the basic need of any person now a days. And though its a big industry so it is promoting the t rend of paperless environment. And it is giving the way of other industries to c ome to new technologies and into a new world of business. Through computers coke can increase the efficiency of its business and can have up to-date data about t heir productions. 46

OVER ALL RESULTS OF PEST ANANYSIS After our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited), w e came up with the very interesting report of facts and figures. Coca-Cola is no doubt one of the most popular beverage company and its product COKE is one of m ost consumed cola drink. They spend billion of dollars on their advertisement, p romotions and recreational campaign. Coca-Cola is a close competitor of Pepsi an d it certainly gives its rival a tough time. CocaCola is a 27% shareholder in th e Pakistan market and they dont want to stop here!! Its target market is to achie ve a much higher %age. Coca-Cola has about 2000 employees at Pakistani plants. L ahore plant of Coca-Cola is one of the beautiful plant in Asia, Situated on Raiw and Road. Coca-Cola has always had a close consumer and supplier relationship wi th its customers. Its entertaining and colorful advertisements have always and w ill always rock the media. Pakistani rock stars, sportmen and actors have played a very vital role in making CocaCola such a popular beverage. 47

CONCLUSION: Coca-Cola no doubt come the heart beat of Pakistanis. Coca-Cola is one of the le aders in sponsoring the most important, thrilling events. E.g. Cricket matches, concerts and many other social occasions. Event at the present they are organizi ng a Basant festival for which they busily organizing stuff. So Jo chaho ho jaye cocacola enjoy 48