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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.
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:
Mission:
SHARED VALUES
Our values serve as a compass for our actions and describe how we behave
in the world.
Integrity: Be real
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.
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.
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.
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.
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.
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.
To study that how can coca cola improve their advertising platform?
To know the percentage of males and females that are aware about
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.
Lack of resources.
Part 2 Research methodology
Source-Davis Womans
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.
QUESTIONNAIRE
In order to help me classify your responses in a statistic manner, could you
please fill this information.
Name:
Occupation:
Age:
Gender:
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
14. If you have any further comments regarding this subject, please
write them.
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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 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.
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.
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.