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COCA COLA

INTRODUCTION
Founded in 1 886, the coca - cola company i s the worlds leading manufacturer,
marketer, and distributor of non-alcoholic beverage Concentrates and syrups. The
companys corporate headquarters are in Atlanta, with local operations in over 200
countries around the world.
Although Coca -Cola was first created in the United States, it quickly became
popular wherever it went. Our first international bottling plants opened in 1906 in
Canada, Cuba and Panama, soon followed by many more. Today, Coca -Cola has a
portfolio of more than 3,000 beverages. Coca -Cola has 92,400 employees
worldwide. More than 70 percent of our income comes from outside the U.S., but
the real reason we are a truly global company is that our products meet the varied
taste preferences of consumers everywhere.

VISION STATEMENT
Our vision guides every aspect of our business by describing what we need to
accomplish in order to continue achieving sustainable growth.

People: Be a great place to work where people are inspired to be the best
they can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that


anticipate and satisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers,


together we create mutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build


and support sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of


our overall responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

MISSION STATEMENT
Mission statement is a statement of organizations purposes that what it
wants to accomplish.
In order to achieve mission of increasing market share and maintaining good
relations with our customers all over the world, we wish to create value for
all the constraints we serve, including our consumers, our bottlers, and our
communities. The Coca Cola Company creates value by executing business
strategy guided by four key beliefs:

Customer is king; Customer demand drives everything we do.

Brand Coca Cola is the core of our business.

We will serve consumers a broad selection of the nonalcoholic ready-


to-drink beverages they want to drink throughout the day.

We will be the best marketers in the world.

Everything we do is inspired by our enduring.

Mission:

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.

SHARED VALUES
Our values serve as a compass for our actions and describe how we behave
in the world.

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

OBJECTIVE OF COCA COLA


The company has sales based objective .Everything 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.

1.1 HISTORY OF COCA COLA


Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the
year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a
three-legged brass kettle in his backyard.

He first distributed the product by carrying it in a jug down the street to


Jacobs Pharmacy and customers bought the drink for five cents at the soda
fountain. Carbonated water was teamed with the new syrup, whether by
accident or otherwise, producing a drink that was proclaimed delicious and
refreshing, a theme that continues to echo today wherever Coca-Cola is
enjoyed.

Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the


name and penned Coca-Cola in the unique flowing script that is famous
worldwide even today. He suggested that the two Cs would look well in
advertising. The first newspaper ad for Coca-Cola soon appeared in The
Atlanta Journal, inviting thirsty citizens to try the new and popular soda
fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared
on store awnings, with the suggestions Drink added to inform passersby
that the new beverage was for soda fountain refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first
year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden
kegs. Red has been a distinctive color associated with the soft drink ever
since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on
advertising. Dr. Pemberton never realized the potential of the beverage he
created. He gradually sold portions of his business to various partners and,
just prior to his death in 1888, sold his remaining interest in Coca-Cola to
Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler
proceeded to buy additional rights and acquire complete ownership and
control of the Coca-Cola business. Within four years, his merchandising flair
had helped expand consumption of Coca-Cola to every state and territory
after which he liquidated his pharmaceutical business and focused his full
attention on the soft drink. With his brother, John S. Candler, John
Pembertons former partner Frank Robinson and two other associates, Mr.
Candler formed a Georgia corporation named the Coca-Cola Company. The
trademark Coca-Cola, used in the marketplace since 1886, was registered
in the United States Patent Office on January 31, 1893.
The business continued to grow, and in 1894, the first syrup manufacturing
plant outside Atlanta was opened in Dallas, Texas. Others were opened in
Chicago, Illinois, and Los Angeles, California, the following year. In 1895,
three years after the
Coca-Cola Companys incorporation, Mr. Asa G. Candler announced in his
annual report to share owners that Coca-Cola is now drunk in every state
and territory in the United States.

As demand for Coca-Cola increased, the Company quickly outgrew its


facilities. A new building erected in 1898 was the first headquarters building
devoted exclusively to the production of syrup and the management of the
business. In the year 1919, the Coca-Cola Company was sold to a group of
investors for $25 million. Robert W. Woodruff became the President of the
Company in the year 1923 and his more than sixty years of leadership took
the business to unsurpassed heights of commercial success, making Coca-
Cola one of the most recognized and valued brands around the world.

HISTORY OF BOTTLING
Coca-Cola originated as a soda fountain beverage in 1886 selling for five
cents a glass. Early growth was impressive, but it was only when a strong
bottling system developed that Coca-Cola became the world-famous brand it
is today.

1894 A modest start for a bold idea


In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain
beverage called Coca- Cola impressed the store's owner, Joseph A.
Biedenharn. He began bottling Coca-Cola to sell, using a common glass
bottle called a Hutchinson.
Biedenharn sent a case to Asa Griggs Candler, who owned the Company.
Candler thanked him but took no action. One of his nephews already had
urged that Coca-Cola be bottled, but Candler focused on fountain sales.

1899 The first bottling agreement


Two young attorneys from Chattanooga, Tennessee believed they could build
a business around bottling Coca-Cola. In a meeting with Candler, Benjamin
F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-
Cola across most of the United States (specifically excluding Vicksburg) --
for the sum of one dollar.

1900-1909 Rapid growth


The three pioneer bottlers divided the country into territories and sold
bottling rights to local entrepreneurs. Their efforts were boosted by major
progress in bottling technology, which improved efficiency and product
quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most
of them family owned businesses. Some were open only during hot-weather
months when demand was high.

1916 Birth of the contour bottle


Bottlers worried that the straight-sided bottle for Coca-Cola was easily
confused with imitators. A design from the Root Glass Company of Terre
Haute, Indiana won enthusiastic approval in 1915 and was introduced in
1916. The contour bottle became one of the few packages ever granted
trademark status by the U.S. Patent Office. Today, it's one of the most
recognized icons in the world - even in the dark!

1920s Bottling overtakes fountain sales


As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in
the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a
huge hit after their 1923 introduction. A few years later, open-top metal
coolers became the forerunners of automated vending machines. By the end
of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

1920s and 30s International expansion


Led by longtime Company leader Robert W. Woodruff, chief executive officer
and chairman of the Board, the Company began a major push to establish
bottling operations outside the U.S. Plants were opened in France,
Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and
South Africa. By the time World War II began, Coca-Cola was being bottled
in 44 countries.

1940s Post-war growth


During the war, 64 bottling plants were set up around the world to supply
the troops. This followed an urgent request for bottling equipment and
materials from General Eisenhower's base in North Africa. Many of these
war-time plants were later converted to civilian use, permanently enlarging
the bottling system and accelerating the growth of the Company's worldwide
business.

1950s Packaging innovations


For the first time, consumers had choices of Coca-Cola package size and
type -- the traditional 6.5-ounce contour bottle, or larger servings including
10-, 12- and 26-ounce versions. Cans were also introduced, becoming
generally available in 1960.

1960s New brands introduced:


Following Fanta in the 1950s, Sprite, Minute Maid,Fresca and TaB
joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were
added in the 1970s. The 1980s brought diet Coke and Cherry Coke,
followed by POWERADE and DASANI in the 1990s. Today hundreds of
other brands are offered to meet consumer preferences in local markets
around the world.

1970s and 80s Consolidation to serve customers:


As technology led to a global economy, the retailers who sold Coca-Cola
merged and evolved into international mega-chains. Such customers
required a new approach. In response, many small and medium-size bottlers
consolidated to better serve giant international customers. The Company
encouraged and invested in a number of bottler consolidations to assure that
its largest bottling partners would have capacity to lead the system in
working with global retailers.

1990s New and growing markets:


Political and economic changes opened vast markets that were closed or
underdeveloped for decades. After the fall of the Berlin Wall, the Company
invested heavily to build plants in Eastern Europe. And as the century
closed, more than $1.5 billion was committed to new bottling facilities in
Africa.

21st Century :
The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as people seek
brands that honor local identity and the distinctiveness of local markets. As
was true a century ago, strong locally based relationships between Coca-
Cola bottlers, customers and communities are the foundation on which the
entire business grows.
ADVERTISING HISTORY OF COCA
COLA
Coca-Cola's advertising have a significant impact on American culture, and is
frequently credited with the "invention" of the modern image of Santa Claus
as an old man in red-and-white garments; however, while the company did
in fact start promoting this image in the 1930s in its winter advertising
campaigns, it was already common before that. In fact, Coca-Cola was not
even the first soft drink company to utilize the modern image Santa Claus in
its advertising

White Rock Beverages used Santa in advertisements for its ginger ale in
1923 after first using him to sell mineral water in 1915. Before Santa Claus,
however, Coca-Cola relied on images of smartly dressed young women to
sell its beverages. Coca-Cola's first such advertisement appeared in 1895
and featured a young Bostonian actress named Hilda Clark as its
spokesperson.

In the 1970s, a song from a Coca-Cola commercial called "I'd like to teach
the World to
Sing", produced by Billy Davis, became a popular hit single. Coca-Cola has a
policy of avoiding using children younger than the age of 12 in any of its
advertising. This decision was made as a result of a lawsuit from the
beginning of the 20th century that alleged that Coke's caffeine content was
dangerous to children.

However, in recent times, this has not stopped the company from targeting
young consumers. Coke's advertising is rather pervasive, as one of
Woodruff's stated goals was to ensure that everyone on Earth drank Coca-
Cola as their preferred beverage. This is especially true in southern areas of
the United States, such as Atlanta, where Coke was born.

Some of the memorable Coca-Cola television commercials between 1960


through 1986 were written and produced by former Atlanta radio veteran
Don Naylor (WGST 1936-1950, WAGA 1951-1959) during his career as a
producer for the McCann Erickson advertising agency. Many of these early
television commercials for Coca-Cola featured movie stars, sports heroes,
and popular singers of the day.

During the 1980s, Pepsi-Cola ran a series of television advertisements


showing people participating in taste tests essentially demonstrating that:
"Fifty percent of the participants who said they preferred Coke actually chose
the Pepsi". Statisticians were quick to point out the problematic nature of a
50/50 result; that most likely all this really showed was that in blind tests,
most people simply cannot tell the difference between Pepsi and Coke. Coca-
Cola ran ads to combat Pepsi's ads in an incident sometimes referred to as
the cola wars; one of Coke's ads compared the so-called Pepsi challenge to
two chimpanzees deciding which tennis ball was furrier. Thereafter, Coca-
Cola regained its leadership in the market. Selena was a spokesperson for
Coca-Cola from 1989 till the time of her death. She filmed three
commercials for the company. In 1994 to commemorate her 5 years with the
company, Coca-Cola issued special Selena coke bottles.

In an attempt to broaden its portfolio, Coca-Cola purchased Columbia


Pictures in 1982.
Columbia provided subtle publicity through Coke product placements in
many of its films while under Coke's ownership. However, after a few early
successes, Columbia began to underperform, and was dropped by the
company in 1989. Coca-Cola has gone through a number of different
advertising slogans in its long history, including "The pause that refreshes",
"I'd like to buy the world a Coke", and "Coke is it".

In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty


campaign where consumers earn virtual "points" by entering codes from
special marked packages of Coca-Cola products into a website. These points
can in turn be redeemed for various prizes or sweepstakes entries.

COKE HISTORY IN PAKISTAN


To provide Coca-Cola at arms length

The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta


and Sprite are the brands with whom Coca-Cola is operating in Pakistan. The
Coca-Cola System in Pakistan operates through eight bottlers, four of which
are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The
CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad,
Rahim Yar Khan, Multan and Lahore. The Coca-Cola System in Pakistan
serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan
has nearly 3,000 people working constantly for the company. During the last
two years, The Coca-Cola Company in Pakistan has invested over $130
million (U.S) and coke has successfully provided 56 years of dedicated
service to its customers in Pakistan. Since the beginning of Coke Company
the firm has been continuously changing its slogans and thats a very
creative idea to get the attention of the customers.
Here we would like to include some of the popular slogans of coke since the
coke journey started.

1886 Drink Coca-Cola


1908 Get the genuine
1923 Enjoy thirst
1934 When it's hard to get started, start with a Coca-Cola
1942 The only thing like Coca-Cola is Coca-Cola itself
1956 The friendliest drink on earth
1963 Things go better with Coke
1993 Always Coca-Cola
2001 Life is good
2003 Jo Chaho Ho Jaye Coca Cola Enjoy
2004 Flight of Delight
2005 Galay Delicious Taste
2006 Thanda matlab coca cola
2007 khaly pily jila coca cola
2008 Aja jashan mena ly

TODAY
Today CCBPL is operated directly under the supervision of the Coca-Cola
International based in Atlanta Georgia State___ USA .It owns 8 plants all
around in Pakistan. Coca Cola Company offers the brand range as Coca Cola,
Diet Coke, Fanta, Sprite and Kinley water in Pakistan.

Coca-Cola introduced in Pakistan 1953

Fanta introduced in Pakistan 1965

Sprite was introduced 1972

Diet Coke & Fanta Lemon 2001

1.2 problem definition


There are some problems being faced by a company which affects its
business strategies. It is difficult to know where to begin and isolate the
events which shape the business environment.
Distribution
Coca-Cola Company is facing a problem of distribution, as distributors are
expecting more from coco cola to provide an extra distribution channels
which could help them to spread their products at large .Coca-Cola products
are some were not available in rural area due to inefficient distribution
system.

Investment
Coca-Cola Company is now facing a problem regarding investment, like
investment in distribution system, to make it efficient. They need investment
to encourage retailers to provide space to their products, in the form of
providing coolers. Company is not in a situation to provide it to all its
retailing stores while its competitor PEPSI COLA provides it to its distributors
to promote his products in the market which is their competitive edge to
increase its share in the market. It creates an attraction to its distributors to
take its products more to take incentives of special discounts provided by
the company to its distributors, wholesaler, and retailers. This is a relatively
a long term process to penetrate in the market and gain market share.

Brand Awareness
Having low promotional strategies that most of their customers are unaware
of their brands mostly they mix their brands with Pepsi, they feel that Sprite
and Fanta are the brands of Pepsi but in actual these are the brands of Coca-
Cola Company they are facing these problems due to having low promotional
strategy so that the unaware of its brands.
Single Advertising Platform
They have only one Advertising platform regarding promotion which is
music; on the other hand Pepsi has another very important Advertising
platform which is Cricket. Most of our youngsters are attracted towards it.

Low value of share


Coca-Cola company having a share of about 27% which is lower than its
competitors i.e. Pepsi having market share of 68% involve in more
promotional strategies as compared to Coca-Cola.

Fake Bottling
Fake bottling in Pakistan is one of the major problems being faced by the
company. This problem not only affects the sale volume and profit margins
but also brand value and loyalty of the customers. The profitability which
company gain, ultimately that part of gain goes to fake bottle producers,
who running their business in the name of company.

1.3 Developing the hypothesis


To study the problems in distribution in Pakistan.

To study the problem of investment to increase the distribution


channels.

To create the brand awareness for coca cola in consumers mind.

Because of bottlers franchise, fake bottling is common problem.

To study that how can coca cola improve their advertising platform?

1.4 Purpose of the study


To study the consumers preferences for Coca Cola.

To know the percentage of males and females that are aware about

To know which brands advertisement mostly people have seen.

To know the reason to buy or not to buy cola drinks.

To know why was the advertisement being noticed by the consumer?

To create a top of mind awareness about COCA COLA in providing the


information to consumers.

1.5 Limitations
Some of the respondents refused to fill the questionnaires.

The responses may vary as some people did not want to come up with
real answers.

The people were busy in their own work so they might not have given
actual responses.

Limitation of time.

The survey is conducted only in Karachi; hence the results may vary in
other parts of the cities.

Small sample size.

And like any other research the limitation of personal bias of


respondents limits the scope of the study.

Law and order situation of the city.

Data can be varied in different seasons.

Lack of resources.
Part 2 Research methodology

2.1 Literature review


1-A study of factors responsible for brand preference in fmcg sector
The purpose of this paper is the study of factors responsible for brand
preference in fmcg products, increasing competition, more due to
globalization, is motivating many companies to base their strategies almost
entirely on building brands. Brand preference means to compare the
different brands and opt for the most preferred brand. This brand preference
is influenced by various factors.
According to this study many factors were find out for preferring a brand like
Brand persona
Brand constancy
Brand loftiness
Brand value.
In the identification of factors affecting the brand preference, it was
concluded that brand persona is the most effective factor that affects the
brand preference. This brand persona deals with the personality aspects or
the external attributes of brand, thus it can be said that consumer prefer any
brand by looking at the external attributes of a brand.

-journal of ims vol 5 no.1, jan-june 2008

2-Colour and flavour rule consumer preferences: Study


The intensity of colour and the flavour are the key drivers behind consumer
acceptance of beverages, says a new study involving DANONE. But
packaging and labelling are not as important for winning over consumers,
according to findings published in the journal Food Quality and Preference,
The study involved consumers at different stages of development and
highlights the importance of adopting a sensory marketing approach, said
the researchers from French research organization Adriant, the University of
Rennes 1, DANONE R&D, and Institute Paul Bocuse.
Companies need to continuously innovate to maintain market leadership,
wrote the researchers. When the market is overloaded the challenge
consists in creating innovative products able to attract and satisfy
consumers. This experiment showed the feasibility of the proposed multi-
sensory design method based on mixed qualitative and quantitative
approaches. The study also demonstrates the importance of flavour and
colour selection for new products.
The global flavours market was been valued at some US$18bn in 2006
(Business Insights). Meanwhile, the value of the international colourings
market was estimated at around $1.15bn in 2007 (731m), up 2.5 per cent
from $1.07bn (680m) in 2004, according to Leatherhead Food International
(LFI). Natural colours now make up 31 per cent of the colourings market,
compared with 40 per cent for synthetics, according to LFI.
Bombarding the senses
By choosing to formulate a new beverage, the researchers noted that the
new product would need to be differentiated by improving the sensory
characteristics.
Four factors were identified for the formulation: four colour intensities),
three flavourings, two label types (soft versus hard), and two pack sizes
(standard versus oversize). By using both quantitative (hedonic testing) and
qualitative (focus groups) approaches, the researchers found that the main
factors which drive consumer preference for this concept are colour intensity
and flavouring. Indeed, colour intensity accounted for 43 per cent and
flavour 32 per cent of the consumers overall liking. Pack size and label type
are taken into account by the consumer to a lesser extend, they added.
This methodology of a qualitative screening associated to a conjoint
analysis on relevant sensory attributes has shown good performances to fit
consumers expectation: it has now to be reproduced, as every brand,
concept and product is a unique combination designed for a specific
consumer group, concluded the researchers
Source: Food Quality and Preference
Volume 19, Issue 8, Pages 719-726
By Stephen Daniells, 07-Oct-2008

3- Taste or health: A study on consumer acceptance of cola drinks

This study examined the relative contributions of taste and health


considerations on consumer liking and purchase intent of cola drinks. Eight
types of commercial cola drinks were evaluated by 305 adult consumers who
also completed a brief questionnaire on food habits. Data were analyzed
using factor analysis. Results revealed that purchase intent of cola drinks
was strongly related to degree of liking and to several key sensory attributes
including saltiness, drinks flavor and greasiness. These variables emerged as
the first factor in the analysis, suggesting that consumers perceive these
characteristics as being most important in their choice of cola drinks. Factor
2 described a health dimension and was related to respondents' attitudes
toward fat in the diet. Factor 3 comprised two remaining sensory attributes
(color and crunchiness), which apparently were of minor importance to the
respondents. These data suggest that in spite of current concern about
reducing dietary fat, health remains secondary to taste in the selection of
cola drinks for consumers in this population.
Source-Beverly J. Tepper and Amy C. Trail Journal of Food Science and
Technology, 15 September 1998

4- PAIRED PREFERENCE TESTS USING PLACEBO PAIRS AND


DIFFERENT RESPONSE OPTIONS FOR Cola Drinks, ORANGE JUICES
Preference tests were performed for varieties of cola drinks, orange juices and using three response protocols: the
traditional paired preference test with the "no preference" option, a 9-point hedonic scale and a 6-point hybrid
hedonic/purchase intent scale. The different stimuli to be assessed were
presented in pairs, but putatively identical stimuli were also presented as a
"placebo" pair. Performance on the placebo pair with identical stimuli
provided a measure of the hidden demand characteristics of the test
protocol. The presentation of the different pairs provided a measure of
preference accompanied by such hidden demand effects. Comparison
between the two allowed a better measure of preference per se. The order of
presentation of the identical and different pairs did show occasional slight
evidence of contrast effects. For the placebo "identical" pairs, a majority of
consumers reported false preferences. Liking questions with the hedonic and
hybrid scales elicited fewer false preferences than preference questions with
the paired preference protocol. Yet, the effects tended to be slight. The 6-
point hedonic/purchase intent scale exhibited the fewest false preferences in
the placebo condition, and this was because of its fewer categories rather
than any cognitive strategy change elicited by its different labels.

Source-Davis Womans

Journal of Food Science and Technology, July 31, 2007

5-consumer awareness and consumption pattern of food products


This paper aims to investigate the degree of brand awareness of various
food products in relation to background and education of the household, the
consumption pattern of various food products consumed by respondents in
the light of their areas, income levels and education. a sample of200
respondents comprising 100 form rural area and 100 from urban area were
taken. Data are analyzed with the help of mean. SD,co efficient of variance-
test and f-test.

The finding of this study reveals that there is low degree of brand awareness
in rural areas, whereas there is a moderate degree of brand awareness in
urban India. The highly educated rural and urban respondents have high
degree of brand awareness for many food products, and the less educated
rural and urban respondents have low degree of brand awareness for many
food products.

- Journal of ims vol 3 no.1, jan-june 2007

QUESTIONNAIRE
In order to help me classify your responses in a statistic manner, could you
please fill this information.

Name:
Occupation:
Age:
Gender:

1. Do you drink soft drinks?


o Yes
o No

2. Which soft drink do you prefer more?


o Coca cola
o Pepsi
o Other
o
3. Which one do you prefer the taste of?
o Coca cola
o Pepsi
o Like Equally both
o Other

4. Which one do you consider to be most popular?


o Coca cola
o Pepsi
o Other

5. Which of the soft drink your local shop offers?


o Coca cola
o Pepsi
o Other
o Both

6. Which of the marketing campaign do you like most?


o Coca cola
o Pepsi
o Other
o Both
7. Which one do you find more easily available when ordering in
restaurants?
o Coca cola
o Pepsi
o Other
o Both

8. How often you drink the soft drinks you usually drink?
o Very often
o Frequently
o Occasionally
o Rarely
o Never

9. About soft drinks what do you like the most? (Select as many as
appropriate)
o Taste
o Availability
o Brand name
o Brand ambassador
o Price
o Advertisement
o Other

10. What method of advertising do you think most effective? (Select


as many as appropriate)
o TV
o Radio
o Internet
o Magazine
o Posters
o Other
o Dont know

11. Which of these advertisements you remember the most?


o Coca cola
o Pepsi
o Other
12. What attracted you in the advertisement? (Select as many as
appropriate)
o Creativity
o Brand ambassador
o Idea of delivering the message
o Frequency of add
o Logical reason

13. What do you feel about coca cola?


o Excellent
o Good
o Satisfactory
o Below satisfaction

14. If you have any further comments regarding this subject, please
write them.
___________________________________________________________
___________________________________________________________
________________________________________________________

Thank you so much for your precious time!

Part 3 Analysis of data


3.1 SWOT Analysis
SWOT Analysis is a strategic planning tool used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats inside a company, project, or a
business venture. It involves identifying the internal and external factors
that are favorable/ unfavorable for business to succeed.

STRENGTHS
The soft drinks market in Pakistan enjoyed dynamic growth over the review
period in both volume and current value terms. Carbonates dominate the
market in both the on-trade and off-trade with the lions share of sales.
Carbonates have become part of the culture in Pakistan and multinational
companies have maintained their standards over the years to provide
consumers with high quality carbonated drinks. Off-trade sales of carbonates
are higher than those of the on-trade but both achieved strong growth over
the review period.

Coca Cola is an extremely recognizable company. Popularity is one of its


superior strengths that are virtually incomparable. Coca Cola is known very
well worldwide. It's branding is obvious and easily recognized. Things like,
logos and promos shown on t-shirts, hats, and collectible memorabilia.
Without a doubt, no beverage company compares to Coca Cola's social
popularity status. Some people buy coke, not only because of its taste, but
because it is widely accepted and they feel like they are part of something so
big and unifying. At the other end of the spectrum, certain individuals
choose not to drink coke, based solely on rebelling from the world's idea that
coke is something of such great power. Overwhelming is the best word to
describe Coca Cola's popularity. It is scary to think that its popularity has
been constantly growing over the years and the possibility that there is still
room to grow. If you speak the words Coca Cola, it would definitely be
recognized all around the world. Money is another thing that is strength of
the company. Coca Cola deals with massive amounts of money all year. Like
all businesses, they have had their ups and downs financially, but they have
done well in this compartment and will continue to do well and improve. The
money they are earning is substantially better than most beverage
companies, and with that money, they put back into their own company so
that they can improve. Another strength that is very important to Coca Cola
is customer loyalty. The 80/20 rule comes into effect in this situation. Eighty
percent of their profit comes from 20% of their loyal customers. Many
people/families are extremely loyal to Coca Cola. It would not be rare to
constantly find bottles and cases of a product such as coke in a house. It
seems that some people would drink coke religiously like some people would
drink water and milk. This is an improbable feat. Customers will continually
purchase these products, and will probably do so for a very long time. If two
parents were avid Coca Cola drinkers, this will be passed down do their
children as they grow loyal to the company. With Coca Colas ability to sell
their product all over the world, customers will continue to buy what they
know and what they likeCoca Cola products.

Coca-Cola has been a complex part of Pakistani culture for over a half
century. Being a strongly recognized brand the product's image is loaded
with coolness and refreshment, and this is an image many people have
taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats,
and collectible memorabilia. This extremely recognizable branding is one of
Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a day
around the world Coca-Cola stands as a simple, yet powerful symbol of
quality and enjoyment".
Additionally, Coca-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 Coca-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.
The Coca-Cola Company in Pakistan has the mover advantage, as it was the
first to introduced soft drink. There are 8 plants working in Peshawar,
Karachi, Lahore, Gujrawala, Rawalpindi, Faisalabad, Raheem Yar khan, and
Multan. These big plants have employed more than 1800 employees.
Duopoly of two main beverage companies in Pakistan including Coca-Cola
has been diffused into the local markets.

WEAKNESSES
Liquid concentrates and power concentrates are both seasonal categories in
the market and their sales peak in the summer in Pakistan. Both Rooh Afza
and Jam-e-Shirin are traditional sandalwood drinks in Pakistan which are
highly regarded by consumers. These drinks can be found in every home in
Pakistan, especially in rural areas throughout the summer and are the
mainstay of liquid concentrates.

Coca Cola is a very successful company, with limited weaknesses. However


they do have a variety of weaknesses that need to be addressed if they want
to rise to the next level. Word of mouth is probably a strength and weakness
of every company. While many people have good things to say, there are
many individuals who are against Coca Cola as a company, and the products
in which they produce. Word of mouth unfortunately is something that is
very hard to control. While people will have their opinions, you have to try to
sway their negative views. If bad comments and views are put out to people
who have yet to try Coca Cola products, then that could produce a lost
customer which shows why word of mouth is a weakness. Another aspect
that could be viewed as a weakness is the lack of popularity of many of Coca
Colas drinks.
Many drinks that they produce are extremely popular such as Coke and
Sprite but this company has approximately 400 different drink types. Most
are unknown and rarely seen for available purchase. These drinks do not
probably taste bad, but are rather a result of low profile or nonexistent
advertising. This is a weakness that needs to be looked at when analyzing
their company. Another weakness that has been greatly publicized is the
health issues that surround some of their products. It is known that a
popular product like coke is not very beneficial to your body and your health.
With todays constant shift to health products, some products could possibly
loose customers. This new focus on weight and health could be a problem for
the product that is labeled detrimental to your health.

Although domestic businesses as well as many international markets are


thriving, Coca-Cola has recently reported some "declines in unit case
volumes due to reduced consumer purchasing power Coca-Cola on the
other side has effects on the teeth's which is an issue for health care. It also
has got sugar by which continuous drinking of Coca-Cola may cause health
problems. Being addicted to Coca-Cola also is a health problem, because
drinking of Coca-Cola daily has an effect on your body after few years
(International report of Coca-Cola).
Out of twelve plants, eight are the operational plants while two are
franchised with other group of companies, which is a drawback for coca-cola
in Pakistan as in these two plants the involvement of Coca-Cola International
is not present which effects the overall image of these plants in the local
market about the quality and international standards.
OPPORTUNITIES
The Government of Pakistan has reduced excise taxes to encourage soft
drinks manufacturers and importers. The Government also reduced other
applicable taxes to promise more profit not only for soft drink manufacturers
already in the market but also to attract potential soft drinks manufacturers
to invest in Pakistan. Tax reductions proved extremely beneficial to the soft
drinks market in Pakistan and certainly encouraged and attracted
multinational companies to invest in the countrys soft drinks industry. The
government also decided to tax the beverage industry on capacity of
production rather than on actual production and that brave move
encouraged soft drinks manufacturers to maximize production and reduce
prices.
Coca Cola has a few opportunities in its business. It has many successful
brands that it should continue to exploit and pursue. Coca Cola also has the
opportunity to advertise its less popular products. With a large income it has
the available money to put some of these other beverages on the market.
This could be very beneficial to the company if they could start selling these
other products to the same extent that they do with their main products.
Another opportunity that we have seen being put to use before is the ability
for Coca Cola to buy out their competition. This opportunity rarely presents
itself in the world of business. However, with Coca Colas power and success,
such a task is not impossible. Coca Cola has bought out a countless number
of drink brands. An easy way to turn their profit into your profit is too buy
out their company. Even though this may cost a vast amount of money
initially, in the long run, if all goes to plan, it results in a large profit. Also,
the company will no longer need to worry about this product being part of
the competition. Brand recognition is the significant factor affecting Cokes
competitive position. Coca Cola is known well throughout 90% of the world
population today. Now Coca Cola wants to get there brand name known even
better and possibly get closer and closer to 100%. It is an opportunity that
most companies will ever dream of, and would be a supreme
accomplishment. Coca Cola has an opportunity to continue to widen the gap
between them and their competitors.

Brand recognition is the significant factor affecting Coke's competitive


position. Coca-Cola's brand name is known well throughout 94% of the world
today. In Pakistan it is the well-known brand among the people of all ages
specially the children are more attracted towards the coke.
As Coca-Cola is in business of soft drinks and has more than 450 brands
allover the world, but in Pakistan they have only four brands, so there is a
potential in Pakistani market for other brands too. Pakistani weather is hot
and humid. This causes a tremendous growth in the sales during the
summer season.
Packaging changes have also affected sales and industry positioning, but in
general, the public has tended not to be affected by new products. Coca-
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.
The unique formula (concentrate) is being imported from U.S.A and it is then
processed in the local plants, this resists the copying of formula and
formation of fake formula thus keeping the taste of pure and real Coca-Cola
revitalizing and tempting.

THREATS
Increasing health and hygiene awareness among Pakistanis has greatly
increased sales of fruit/vegetable juice products. Both the government and
the media have started health awareness campaigns to make Pakistanis
realize that consumption of fruit/vegetable juice is as essential as eating
food. Fruit/vegetable juices are doing very well in both urban and rural
areas. On the other hand, health and hygiene awareness has also led to
increased sales of bottled water in Pakistan. Previously bottled water was
targeted on at major cities where consumers are more health-conscious and
aware of the difference between bottled water and tap water. Nowadays,
health conscious rural inhabitants also drink bottled water due to health
concerns.

Despite the fact that Coca Cola dominates its market, it still has to deal with
many threats. Even though Coca Cola and Pepsi control nearly 40% of the
entire beverage market, the changing health-consciousness attitude of the
market could have a serious effect on Coca Cola. This definitely needs to be
viewed as a dominant threat. In todays world, people are constantly trying
to change their eating and drinking habits. This could directly affect the sale
of Coca Colas products. Another possible issue is the legal side of things.
There are always issues with a company of such supreme wealth and
popularity. Somebody is always trying to find fault with the best and take
them down. Coca Cola has to be careful with lawsuits. Health minister could
also be looked at as a threat. Again, some people may try to exploit the
unhealthy side of Coca Colas products and could threaten the status and
success of sales. Other threats are of course the competition. Coca Colas
main competition being Pepsi, sells a very similar drink. Coca Cola needs to
be careful that Pepsi does not grow to be a more successful drink. Other
product such as juices, coffee, and milk are threats. These other beverage
options could take precedent in some peoples minds over Coca Colas
beverages and this could threaten the potential success it presents again.

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
("Cola Wars", 1991).
Even though Coca-Cola and Pepsi control nearly 5% of the entire beverage
market, the changing health-consciousness of the market could have a
serious affect. Of course, both Coke 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 ("Cola Wars",
1991). In Pakistan the consumption of cold beverages is 5% which have to
be stabilized.
Consumer buying power also represents a key threat in the industry. The
rivalry between Pepsi and Coke 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.

3.2 PEST Analysis

POLITICAL FACTORS
The political environment of Pakistan affects the Coca-Cola beverages and
Coca-Cola Export Corporation, to some extent. For instance, the political
instability in Pakistan causes trade and import policies to change rapidly as
the government changes which causes many problems in the import of raw
materials. Trade barriers such as tariffs and duties on the import of syrup
(concentrate) from USA increases the operational cost. A relaxation has been
given by the current government. So the situation for the beverage industry
is getting better day by day for the last couple of years. Also the policies
have been more or less constant and also the emaciation of free trade zones
by the government will help the Coca-Cola to flourish more effectively in
Pakistan.

ECONOMIC FACTORS
The economic condition of Pakistan has not been stable for a long time but
The recent economic indicators suggest that the economy is growing and
macroeconomic issues are getting sold but at the same time there has not
any marked increase in the consumer buying power (inflation). When the
recession occurs the price of bottles are dropped down to increase the sales
and to achieve the targets of the company. So overall economy of Pakistan
directly affects the cost and price of the Coca-Cola Company.

SOCIAL FACTORS
Being a foreign based company Coca-Cola faces opposition by Muslim
activists. The main social issues are:
It faced scandal of humiliating Muslims religion that when the inverted
image of Coca-Cola brand name is being viewed on the mirror it disgraces
the name of Holy city Makkah and Hazrat Muhammad (P.B.U.H). This was a
wrong conception as there was no reality in it and this scandal was flopped
after a short span.
One of the greatest social barriers to Coca-Cola Lahore is the restriction of
coke in the campus premises. Jamiats strike to coke affects the sales and
overall image of coke as a larger number of students from all over the
Pakistan are studying in the University of The Punjab. But on the contrary in
the all parts of the country coke is viewed as the partner in the major events
like Basant and promoter of music thereby making a place in the hearts of
young generation of the society.

TECHNOLOGICAL FACTORS
The making of Coke, Fanta, Diet coke and sprite involves "mixing and
blending, filling and capping ". For this process, concentrate or syrup is
imported from USA and is then mixed in the local plants .Machinery for the
local plants was also imported but now the Coca-Cola company follows Local
content law as most of the spare parts are locally made. The system is
automated and equipment is fully operational and up-to-dated. In
technology Coca-Cola company is far ahead than the several other local
beverage brands of Pakistan. It is a Highly Technical 10 Steps Process. Which
are all done in the local plants using local content law.

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