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Table of Contents

History
Mission, Vision, Value
Executive Summary
Current Market Share
Market Description
Product Review
Competitive Review
Channel and logistic Review
SWOT Analysis
Objective and Issues
Marketing strategies
Positioning
Price Strategy
Communication strategy
Coke studio
Marketing Organization
Financial Information

History:
Coca-Cola was founded in May 1886 by Dr. John Pemberton. Coca-Cola was first sold to
the public in Atlanta at Jacobs Pharmacy. Only 9 servings of the soft drink were sold
each day. Sales for the first year were only $50. In 1888 Asa Griggs Candler bought the
company and sales increased over 4000%.

Mission statement
To refresh the world in body, mind and spirit.
To inspire moments of optimism through our brands and our actions.
To create value and make a difference everywhere we engage.

Vision statement
People:

being a great place to work where people are inspired to be the best they

can be.

Portfolio:

bringing to the world a portfolio of quality beverage brands that

anticipate and satisfy people's desires and needs.

Partners:

nurturing a winning network of customers and suppliers, together we

create mutual, enduring value.

Planet:

being a responsible citizen that makes a difference by helping build and

support sustainable communities.

Profit:

maximizing long-term return to share owners while being mindful our

overall responsibilities.

Values
Leadership: the courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well

Executive summary:
The Coca-Cola Company is a global business enterprise and one of two main soft drink
sellers. Study of this report helps the reader to know that how Coca-Cola has achieved
its current market position. This report enlightens those factors that company has
adopted during its long journey of 52 years in Pakistan. This report includes the
introduction, micro and macro environment factors affecting coke, segmentation and
positioning strategy and advertising methods that company uses and much more.The
reader of this report can expect that after having complete study he/she can certainly
have a broader view of the operations of Coca-Cola in Pakistan. Like who are the
competitors, what are the problems that company facing in expanding its business etc.
In Pakistan Coca-Cola is very much a local business and company has provided this
region with 51 successful years of service. The dedicated service that company has been
providing has made the company the proud holder of several most widely recognized
brands in the world. This report study gives reader the idea about operation of coke in
Pakistan.

Current Marketing Situation:


Market Position in worldwide:

Market Position in Pakistan:

Market Description:
Coca cola servers its products using mass marketing technique, which obviously falls in
undifferentiated marketing, and undifferentiated marketing means no segmentation,
but there are minor factors on which we can say that the coke segments its products and
then targets the customers somehow. Coke segments its products especially to youth
and also to the small childrens by offering different tastes like vanilla, lime & cherry.

Product Review:
Coke offers following products with relative features.

Coke Classic:

It was introduced in the 1886 by a pharmacist & was sold at a small scale. It was not a
carbonated drink at the time of the launch but further development made it a fizzy
drink & people start taking it as a beverage.

Vanilla Coke:

Smooth taste of vanillas was added to Coke to give a refreshing feeling. Since, it was
Vanilla cokes debut in 2002. Millions of people were curious what coke have brought
for them. It was a refresher & soother for the thirst quenchers. Still, it was not a big
success like Coke Classic.

Cherry Coke:

Cherry coke is one of the favorite colas taste with a blast of cherry. This flavor was
introduced for the cherry lovers so they can have cherry wherever they & whenever
they are. Some things never change, other things get better. Like Cherry Coke.

Caffeine free Coke:

Classic is what you really want to have. Caffeine free coke fits right in with your plan.
Its true refreshment, minimize the caffeine input to your body, & gives a refreshing
effect.

Diet Coke/Coca Cola Light:

Diet Coke was launched in 1982 which was the beginning decade of the fitness craze. A
gala reception at the radio city Hall at N.Y.C celebrated the new drink on the scene. In
just 1 year after its introduction it became the largest selling drink in America. It was
one of the ideal drinks for the very fitness & health cautious people. Further flavors
were added to the portfolio of diet coke which attracted the fitness crazy people to
check the taste of it.

Caffeine free Diet Coke:

In 1983, Caffeine free diet coke was introduced for the people who were facing
problems with the amount of caffeine present in the diet coke. The diet coke was
ecoming more ideal for them as it was with less sweet & no caffeine.

Diet Cherry Coke:

Then the new Diet Cherry Coke was introduced a new low calorie flavor craze began.
Coca Cola company promoted Diet Coke with penguins & celebrities in its
advertisement. They were having the slogans like Just for the Taste of it & The Move
is on the Diet Coke. It was becoming a big hit.

Diet Coke with Lemon:

When in 2001 the Diet Coke with Lemon was offered a new citrus taste sensation
became a hit. It gave the people chance to have the taste of sweet coke with citrus lemon
flavor.

Diet Vanilla Coke:

When in 2002 the Diet coke was celebrating its 20th birthday Diet Vanilla coke was the
product, which company came up with & it was birthday gift of Diet Coke to its
consumers.

Diet Coke with Lime:

2004 was the year when Coca Cola company came up with Diet Coke with Lime, which
brought a juicy new flavor of coke to its consumers.

Fanta:

Available in Europe since the 1940s, Fanta was introduced in the United States in 1960.
Introduced in Pakistan 1965. Which brought a orange juicy new flavor.

Sprite:

Sprite was introduced in Pakistan 1972. Which brought a lemon Freshness Flavor.

Kinley Water:

Kinley is the water which is introduced by the coca cola in many asian countries.

Competitive Review
Direct Competitors:
The direct competitor of Coca-Cola is Pepsi and that of CCBPL is PCI (Pepsi
cola international) there is always ongoing tuff competition between these two arch
rivals with Pepsi leading with 54% market share and Coke gradually growing and
catching up 36% market share in Pakistan. However on global level the situation is
reverse. Both companies often engage in price cut wars, prize scheme wars and
sponsorship wars to win over each other customers. Indirect Competitor

These include Nestle and Shezan juices who do not pose a threat to Coke as yet but has
the potential to do so as it is exploiting the natural aspect and health issues more and
more to make people conscious about physical fitness Coke has launched Diet Coke
to counter the physical fitness demands.

Channel and Logistics Review :


The company operates a franchised distribution system dating from 1889.where The
Coca-Cola Company only produces syrup concentrate which is then sold to various
bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company
owns its anchor bottler in North America, Coca-Cola Refreshments.
Coca Cola Company makes two types of selling:

1)Direct selling:
In direct selling they supply their products in shops by using their own transports.
They have almost 450 vehicles to supply their bottles. In this type of selling company
have more profit margin.

2)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 lots of whole
sellers and agencies to assure their customers for availability of coca cola
products.Other channals are included:
1- Coca-Cola Cricket
2- Coca-Cola Concerts
3- Coca-Cola Food Mela
4- Coca-Cola Basant Festival
5- Coca-Cola GO-RED
6- Coca-Cola Party in a Park
7- Coca-Cola Shopping Festival
8- Coca-Cola Ramzan Campaign
9- Coca Cola TV Mazza
10- Coca-Cola & Mc Donald's

Strengths, Weaknesses, Opportunities, and Threat


Analysis

Strenghts
Single Established Company:
The biggest strength of Coca-Cola is that unlike other beverages, it has established itself
as a single large company CCBPL with 10 plants in all major cities running directly
under supervision of Coca-Cola international. So unlike to bottler system there is no
conflict of decisions and policy. One policy adopted is for al plants throughout the
country. Similarly one decision taken (e.g. price cuts+Rs.2/-) is implemented effectively
and immediately in all plants all over Pakistan without argument. So you will find same
prices, same quality, same schemes in all cities.

Working Structure:
Coca-Colas organizational structure is of International standards, hence there are clear
cut and well defined policies, procedures rules and regulations that have to be followed
under all circumstances, hence working style is highly professional, and discipline is
maintained.

Human Resource:
The biggest strength of Coca-Cola is its Intellectual brain power of highly professional
qualified and dedicated employees who put in all their efforts to satisfy their customers
by providing the ultimate best of Coke.

Proper Time Delivery:


The fixed time of delivery of Coke to retailers, shopkeepers etc punctuality is
maintained which gives Coke an edge over all its competitors

Brand Name, Symbol, and Bottle Shape:


These all are Cokes strengths which give it an edge over its competitors. CocaCola bottle shape is so unique and stylish than even if the name is rubbed off people
will still easily identify that its Coca-Cola bottle. Same is the case with its
symbol and name which cannot be imitated and are so well known. The most
known and spoken word in world after OK is COKE.

Superior Product Quality:


Coca-Cola Company management never compromise on quality even if they have to
spend a little extra in production. Bottle caps are one example. Examine and you will
find that Coca-Cola brand caps (especially on liter bottles) and disposable bottles are
superior in quality than those of others beverages). Quality in taste as well as bottle and
caps and gifts which are offered doesnt vary from city to city but is same throughout
the company.

Diet Coke:
Coca-Colas strength is that they are market leaders who successfully launched. Diet
Coke to cater the needs of overweight and health conscious people and have been
popular to a certain extent, their closest competitor also followed and launched their
own diet beverages brand, but it never proved to be up to the mark and failed.

Weaknesses
Limitation of resources:
This is the biggest weakness of Coke .They heavily depend on finance from the CCI
(Coca-Cola International) based in USA. Consequently they are not able to supply as
many freezers, coolers or finance sign and electronic bill boards as shopkeepers demand
as does Pepsi which is the major reason why they lag behind.

NonAvailability:
Coke is not available in small towns and in rural areas, reason being that the
distribution channel of Coke is not large, is not extended owing to limitations of
resources and lack of proper infrastructure.

Formality of Rules and Regulations:


The organizational structure of Coke is too formal ( being supervised by CCI),so the
lengthy processes of decision making and implementation through hierarchy system (ie follow order from CEO to downwards) have to be followed and employees in
Pakistan even (GM) is not allowed to take decisions to change even smallest of things
like (Instruction on bottle) on their own .So many brilliant ideas to improve and boost
sales remain locked up in employees brain as they are not allowed to work at their own
free will.

Opportunities:
1. Coke currently holds about 36% market share in Pakistan.
2. Pepsi leads by holding 54% of market share 10% to other small beverages e.g. RCcola, Maka-Cola, Pak-Cola etc.
3. So there is vast opportunity for Coke to capture 70% market share.i.e. 54% of
Pepsi and 10% of others.
4. Coca-Cola with International standards can increase its market share many folds
with little efforts.
5. Increasing distributing channels and infrastructure to ensure availability in small
towns and areas.
6. Line extension like Fanta, Coke, and Sprite in different flavors.
7. Launch a new product it can do it successfully as its is well established, Company
and has already positioned itself in customers mind (as those who provide the ultimate
in taste and quality) so they are bound to try their new product as well.

Threats
Major Threat :
Pepsi and its products as it is market leader so time to pose a serious threat to Coke.

Potential Threat
New Entrants:
New entrants like Maka-Cola, Pak Cola that can exploit anti Jewish and anti war
sentiments, provoke nationalism sell at low price and thus can be a source of threat for
Coke in future once they fully launch their product in Pakistani market so Coke
management has to look out for them over time.

Nestle Products:
Like juices, Milo cold coffee ,drinks, etc as well as Shezan products e.g. squashes, tetra
pack juices are also sort of threat but not the direct threat for Coke because they
provoke health consciousness and physical fitness .Although Coke has converted their
attack on health issues by offering Diet Coke yet the threat isnt over .
However Coca-Cola can effectively counter their threat at any time by launching
their own juice.

Taxes (Govt.Laws and Policies):


The Coca-Cola management is not happy with the Govt. tax laws and policies. Being a
multinational with whole plants in 10 cities it is under heavy tax. Imposition so much so
that on single bottle revenue. It has to pay as much as Rs2.97/- as tax to the
government. With the consequent result that Coca-Cola is the first beverage and 2nd
highest tax paying company in Pakistan. It pays 33% on its total revenues.

Objectives and Issues


The company has sales based objective .Every thing else (marketing plan, advertising
plan, production etc.) is derived from this objective. Currently the companys objective
is to :
Increase the volume of sales up to the maximum level as much as possible
during the current fiscal year.
The company sets its objective keeping in view the past performance, Historical trends,
current market position, economic condition, macro environment and micro
environment factors, social values, market size and growth rate ,future expectations and
predictions.

GOALS OF COCA COLA


All CCBPL plants setup their own goal to achieve the objective. The company goal is:
To increase sales volume and gain market leadership in Lahore.

Marketing Strategy
Our local marketing strategy enables Coke to listen to all the voices around the
worldasking for beverages that span the entire spectrum of tastes and occasions. What
peoplewant in a beverage is a reflection of who they are, where they live, how they
work and play,and how they relax and recharge. Whether you're a student in the
United States enjoying arefreshing Coca-Cola, a woman in Italy taking a tea break, a
child in Peru asking for a juicedrink, or a couple in Korea buying bottled water
after a run together, we're there for you.We are determined not only to make
great drinks, but also to contribute to communities around the world
through our commitments to education, health, wellness, and diversity. Coke
strives to be a good neighbor, consistently shaping our business decisions to improve

the quality of life in the communit ies in which we do business. It's a special
thing to have billions of friends around the world, and we never forget it.

Positioning

The way the product is defined by consumers on important attributes, the place the
product occupies in consumer minds relative to competing products. Here if we talk
about more price and more benefits, we can discuss Pepsi and Coke. As both are the
market leaders and 90% market share of Pakistan beverage industry is secure by them
& the rest 10% is secure by the rest. And we can also take Pepsi and Coke as challenger
for each other as both of them provides more for same, more for less & same for less. As
they are giving their customers more benefits for same price and also more benefits for
less price with respect to different packaging sizes. Others colas like Macca Cola, Amrat
Cola and Mountain Dew are offering same for same price and same benefits for more
price. They are using followers strategy, as they follow the other market leaders and
giving their customers same benefits for same price. Others colas like tha bottles (local
colas) are offering less benefits for same price and less benefits for less price. As they
have no existence in market and their products have no position or we can say very
badly positioned in consumer minds.

Product Strategy:

Product: Anything that can be offered to a market for attention, acquisition,


use or consumption that might satisfy a want or need.

Levels of coke as a product


Core product:

Core benefit is that it fulfills the thirst.

Actual product

Design: Pet bottles, returnable glass bottles, economy packs.


Quality: Quality differs with respect to country for example. Coca-Cola Can
quality that is available in Middle East is certainly different as compared to Coke Can
available in Pakistan.

Product Classifications:
Coke is categorized as a convenience product, because the purchasing rate is very high
and this is the product that is bought very frequently.

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 middle man push
their product in the market. And thats why coca cola seen more in the market. And
they have a good sale in the market because according to the expert which product seen
more in the market that sells more.
Seen as sold

They do agreements with a shop keepers and stores to exclusive sale in that stores.
These stores are called as KEY accounts in their local language.
And coke also invest heavy budget on these stores and offers them free samples and
free bottles and some 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 in winter they reduce their prices to maintain their sales and profit. But normally
they reduce the prices of their pet bottles or 1 litter glass bottle.

Distribution:
Coca Cola has developed its distribution network all over the world. It follows two
types of distribution strategy:
-Direct selling:
In this method, Coca Cola supply various products to retailers. These retailers may be
retail stores, restaurants, cinema halls etc. The company uses its own vehicles to deliver
the products. Direct selling brings in only small part of the revenue.
-Indirect selling:
Most of the revenue comes from this channel. Coca Cola gets into partnership with
various distributor agencies. The company supply products to these distributors, who
then make them available to the retailers.
In the traditional model, products are transferred from bottling plants to large
distributors. These distributors then transport the products to retailers or smaller
distributors. Small distributor node is added in case of rural areas or areas with low
density population. The small distributors then supply the product to retailers. Most of
the bottlers are under contract with Coca Cola. At the same time, the Company has
direct contract with big retailers such as Wal-Mart.
Coca Cola Company has introduced an innovative distribution mechanism in African
countries to help the local economy thrive. According to the companys report, Our
unique distribution model allows the Coca Cola system to build relationships with
small enterprises, creating
economic opportunity and wealth creation at the community level in developing
markets. These micro distribution businesses, commonly known as Manual Distribution
Centers (MDCs), are run by local small-scale entrepreneurs who employ local workers
to deliver our products to small retailers in their neighborhoods. They typically reach
consumers in dense urban areas in the developing world where traditional truck
delivery is not feasible.

The creation of MDCs has been going on under the initiative led by UNDP (United
Nations Development Programme). This programme calls on companies to identify the
steps that can be taken to reach Millennium Development Goals (MDGs). This model
ensures availability of Coca Colas product in difficult to reach places while
contributing towards development of the region.

Communication Strategy:

The field of advertisement is one area where Coca-Cola has always emphasized.
In year 2000 Coca-Cola unveiled the biggest advertising billboards in the history of
Pakistan. Each unveiling was marked by entertainment and light shows watched by
thousands of people. Similarly in July 2000 Coca-Cola launched its first under the crown
promotion by the name of Dream Vacations in which the consumers could collect caps
of promotional bottles of Coca-Cola like Sprite, Fanta and Coke.

Advertisement Objective:
Type of advertising with respect to product life cycle that Coca-Cola adopts is reminder
type. The reason behind this fact is that coke is such a product that is at the maturity
level currently so for such a product companies mostly go for reminder type of
advertisement so that they can penetrate more and more and same is the case with
Coke.

Setting of advertising budget:


Coca-Cola sets its advertisement budget on the basis of competitor based budgeting.
Major competitor of coke is Pepsi and as coke realizes that Pepsi has increased its
advertising budget, straight away Coca-Cola management plans to do the same so that
they can compete in advertising department as well.

Advertising Strategy:

Before creating advertising message the Coca-Cola Company gives lots of time
to the factor that the message must gain customer attention. This is basically called
Clutter Buster means that only that advertisement will leave impact on customer mind
that has some specialty or uniqueness in it. For example in India Coke current slogan
Thanda Matlab Coca-Cola has gained reasonable customer attention.
Advertisement Media:
Coca-Cola Company advertises its products mainly coke through electronic media that
includes Television, Radio and Internet as well. Moreover leading newspapers of
Pakistan are also the targeted by coke for advertising. So we can say that coke not only
uses electronic but print media for advertisement as well.

Coke studio:
Is a Pakistani music television series which features live studio music performances by
various artists. The show is produced by the coca-cola company and frequency media.
The concept of the show was borrowed and adapted from the Brazilian show, where
musical performances were held on a concert like platform, which first premiered
on MTV Brazil in March 2007. This format was then devised by the Coca-Cola
Company in Pakistan 2008 and Rohail Hyatt, founder of the first Pakistani pop
band Vital Signs, along with his wife Umber Hyatt were announced as the executive
producers of the show. The first season of Coke Studio began on 7 June 2008 and ended
on 4 August. The second series of Coke Studio included notable differences from the
first series, including the fact that the live audiences were excluded. The second season
began on June 14, 2009 and ended on the Independence Day of Pakistan, August 14.
Coke Studio returned for its third season on June 6, 2010 and ended on August 1 2010
The Fourth season began on May 22, 2011 and ended on July 17, 2011 featuring a total of
five episodes. Coke Studio returned for its fifth series on 13 May 2012, and ended on
July 8 2012. Bohemia , Pashto song

Marketing Organization:

Financial information
Income Statement

Balance Sheet: