Market Analysis Coca Cola

Market Analysis Coca Cola

Market Size
Coca Cola is one of the leading beverage companies in Pakistan. It covers the large
market segment. From the facts it is revealed that the market for coca cola as mentioned
in the SW! analysis segment is enco"raging. It is the second largest "sage in Pakistan.
Still it has a great potential in Pakistan market. It foc"sers on it deficiencies and try to
over come it than it #ill definitely gro# more than any other beverage company in
Pakistan. So it has a large margin for gro#th.
$ro#th rate Coca Cola
In Pakistan market the gro#th rate is %%& #hich is a significant rate. Similarly In Asia
region the amo"nt of reven"es #hich company earn is '('% dollar.
Market Share
Coca cola has do"bled its market share in Pakistan) in recent years its market share #as
*+& b"t in %((, its market share increased "p to -+&) on the other hand its competitors
share is going do#n day by day.
Coca Cola is #orld leader in beverages) and is on the #ay to s"ccess in Pakistan and has
crossed the Pepsi last year..
Ma.or factors infl"encing the level of demand of the prod"ct
!here are a lot of factors that affect the demand of the prod"ct. !he list of these factors is
given belo#
/ Price
Price is the ma.or factor that affects the demand of the prod"ct. If the price Is not s"itable
to the cons"mers or c"stomers than they #ill s#itch of the prod"ct.
/ 0"ality
If a company provides the 1"ality services or prod"cts than the demand of the prod"ct
also increases. In the 1"ality of the prod"ct the consistency in the performance of the
prod"ct is very important.
/ S"pply
S"pply and the demand of the prod"ct are the market forces and played the main role in
the prod"ct demand. If the s"pply of the prod"ct decreased than in some cases the
demand of the prod"ct increase as #ell as the price f the prod"ct can also increased.
/ !aste
!aste of prod"ct is the ma.or factor that affects the demand of the prod"ct. 2ike if the
prod"ct is of good taste than the f"t"re demand of the prod"ct #ill increase and vise
versa. If c"stomers don3t find the taste of prod"ct according to their taste) than they #ill
not b"y that prod"ct in f"t"re.
/ 4"mber of "sers
If the n"mber of "sers increase in the market than the demand of the prod"ct also
increases.
/ Income
Income level of the c"stomers had a great impact on the demand of the prod"ct. It
directly relates to the p"rchasing po#er of the c"stomer. If c"stomer has a p"rchasing
po#er than definitely he can b"y the prod"ct #hich he5she demand.
/ Competitors
Competitors are the biggest threat to the demand of prod"ct. If competitors offer the same
prod"cts as the company offers than the c"stomers got more alternatives. So increased
alternatives) increases the bargaining po#er of the c"stomers and they can s#itch of to
more s"itable prod"ct.
Can the market be broken do#n in to segments6
!he coca Cola has a #ide range of cons"mer. !ho"gh its market is very large and almost
all are f its c"stomers regardless of age and gender b"t the yo"ngsters are it3s the largest
most favorable target a"diences. !his is the reason they choose yo"ngster in their
advertisement as #ell.
Company can also largely foc"s on yo"ngsters to set the target market. 7"t their c"rrent
strategy is most s"itable beca"se c"stomers regardless of age factor like Coca Cola as soft
drink.
Prod"ct 2ife Cycle
Prod"cts go thro"gh vario"s steps thro"gho"t their "sef"l lives. !hey are introd"ced)
gro#) mat"re and event"ally decline. In the introd"ction phase of the life cycle) start8"p
e9penses are high and sales are lo#. !his is the stage in #hich the prod"ct in placed in the
market for cons"mer "se. Sales begin to increase and e9penses tend to decrease d"ring
the gro#th phase. !his is the point in #hich the prod"ct becomes more kno#n in the
market and cons"mers begin p"rchasing. :"ring the mat"re phase of the prod"ct life
cycle) the company m"st re8e9amine the prod"ct and determine ne# #ays to make it
marketable. Cons"mers begin to take the prod"ct for granted and no longer necessarily
choose it first. If a ne# prod"ct comes in at this point #ith ne#) more attractive feat"res)
it can force the prod"ct into the decline stage. ;vent"ally sales #ill begin to decline and
the company m"st decide #hether to contin"e #ith prod"ction or to part #ays #ith the
prod"ct.
Coca8Cola has been in the ind"stry since the nineteenth cent"ry) so if they contin"e #ith
the same marketing strategy) then they #ill send themselves irrevocably into the decline
stage. Coca8Cola <Coke= is in mat"rity stage b"t grad"ally moving to#ards the declining
stage of the prod"ct life cycle. Management has to pay special attention to prod"cts
d"ring this stage of the prod"ct life8cycle. !he company m"st no# determine #hether
they #ill stop prod"cing Coca8Cola) change the soda) find ne# "ses for it) seek ne#
markets for the soft drink or if they #ill maintain their c"rrent strategy <Peter) %((+=. At
the moment) the soft drink company is attempting to effectively seek ne# markets.
Coke3s core prod"ct) Coca8Cola) has received many criticisms beca"se of the health
iss"es that arise from its "se of caffeine and high fr"ctose corn syr"p.
Coke kno#s that they m"st begin to ackno#ledge the shift in cons"mer tastes in order to
remain competitive. !hey have done this s"ccessf"lly many times in the past) as can be
seen #ith the introd"ction of their pop"lar :iet Coke brand. Coke m"st break into the
non8carbonated drink market in order to ackno#ledge cons"mer3s ne# interest in healthy
drinks
:"ring the mat"rity stage) prod"cts "s"ally go thro"gh a slo#do#n in sales gro#th.
According to Coca8Cola3s %((* ann"al report) sales have increased by *.(%& compared
to last year. !his percentage has no comparison to the high level of gro#th Coca8Cola
en.oyed d"ring its gro#th stage.
Fl"ct"ation in demand #ith cyclical factors
4othing is in isolation in this #orld. !he brands also have personality and th"s also
affected by the different sit"ations like #eather) occasions) events) economical factors etc.
:emand of the prod"ct doesn3t remain consistent beca"se it e9ists in the real #orld #hich
is grad"ally changing. Coca Cola advertisement has a great affect in its demand. Its
advertisement removes the risk of no "se of brands on different e9treme #eathers like in
#inters. Its ads stim"late its p"rchase regardless of #eather or cyclic factors.
Similarly on different events the b"ying patterns also changes. Company has a great
strategy that they "se those events as their strengths and advertise their prod"ct on right
time #hich res"lts in increase sale.