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1
DECLERATION
I Mrityunjay Rai hereby that this project report entitled Marketing Strategies
Analysis has been completed based on actual study carried out by me during my
Najafgarh, Delhi.
This research report is original and information, data and fact furnished their in
(Mrityunjay Rai)
2
CERTIFICATE OF ORIGINALITY
This is certify that the Vocational Training Report entitled “Marketing Strategies
Analysis”submitted to Hindustan Coca-Cola Beverages Private
Limited,Najafgarh,Delhi in partial fulfillment of requirement for the award of the
degree of Bachelor of Business Administration original work carried out by
Mrityunjay Rai and Roll No.9922578 Under my guidance.
This vocational report done on (training period June 6, 2010 to july 20, 2010) the
topic hasn’t been submitted for any other examination & doesn’t form part of any
other course undergone by the candidate.
9922578
ACKNOWLEDGEMENT
3
After completing my IVth semester curriculum. I went for summer training for 6
I have achieve this training in one of the most esteemed organisation of the
their kind permission to undertaken its study I am grateful to respected Mr. A.K. Sen
(HR Executive,in Coca-Cola Beveragws Private Limited). For there moral support
This list will go incomplete without the special reference of the contribution
and whole hearted support of manager’s and all other staff and department, which
truly reflect their deep insight into the project and the professional touch which is their
benchmark.
have been a constant source of aspiration & blessing in my pursuit for studies.
PREFACE
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I did my summer training in Hindustan Coca-Cola Beverages Private Limited,
considered.
Hence I am presenting the training report Marketing Strategies Analysis. All the
mistakes and problems had been carefully removed with the help of all the managers.
Limited, najafgarh
Mrityunjay Rai
TABLE OF CONTENTS
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CONTENTS
1. Mission Statement
2. Coca Cola.
a. Coca Cola International.
b. History.
3. Management.
4. Market share.
7. Financial report.
8. Company Statistics.
9. Products.
a. Pepsi.
b. History.
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a. Target market:
b. Major segments:
d. Major competitors:
e. Strategies of quality:
k. Marketing strategy:
19. Recommendation.
21. Conclusion.
22. Limitation.
23. Suggestion.
24. Questionniare.
25. Annexure.
26. Bibliography.
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.
In order to achieve this mission, we must create value for all the constraints
we serve, including our consumers, our customers, our bottlers, and our
communities. The Coca Cola Company creates value by executing
comprehensive business strategy guided by six key beliefs:
The Coca Cola system has more than 16 million customers around the world
that sells or serves our products directly to consumers. We keenly focus on
enhancing value for these customers and helping them grow their beverage
businesses. We strive to understand each customer’s business and needs,
whether that customer is a sophisticated retailer in a developed market a kiosk
owner in an emerging market.
There are nearly 6 million people in the world who are potential consumers of
our company’s product. Ultimately, our success in achieving our mission
depends on our ability to satisfy more of their beverage consumption demands
and our ability to add value for customers. We achieve this when we place the
right products in the right markets at the right time.
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COCA COLA INTERNATIONAL
HISTORY:
Coca-Cola Enterprises, established in 1886, is a young company by
the standards of the Coca-Cola system. Yet each of its franchises has
a strong heritage in the traditions of Coca-Cola that is the foundation
for this Company.
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In December 1991, a merger between Coca-Cola Enterprises and the
Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger,
stronger Company, again helping accelerate bottler consolidation. As
part of the merger, the senior management team of Johnston
assumed responsibility for managing the Company, and began a
dramatic, successful restructuring in 1992.Unit case sales had
climbed to 1.4 billion, and total revenues were $5 billion
Pop.
10
11
MANAGEMENT:
Chairman
Board of
governors
Vice Chairman and
chief operating
officer
Executive Vice
Presidents
Senior Vice
Presidents
Vice Presidents
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MARKET SHARE:
SHARE
Being the biggest company in the soft drink industry, Coca Cola enjoys the
largest market share. This company controls about 59% of the world market.
(Table)
6% 5% 5% 5% 4% 4% 18% 9% 70
This shows that the market of the company is geographically vast and it is
controlling it with great success. In 2002, the company grew their carbonated
soft-drink business by nearly 250 million unit cases and generated record
volumes. Because carbonated soft drinks are the largest growth segment
within the nonalcoholic ready-to-drink beverage category measured by
volume, that is why they are focusing more on this and they are continually
increasing the pace because they know that accelerating this pace is crucial to
their future success. Thus they are increasing their market day by day.
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The operation income earned by Coca Cola Company can be illustrated by
the following pie chart.
(Figure)
This strategy has worked a lot and it has helped them to become the World’s
leading Soft Drink Company. The global unit sale of the Coca Cola Company
is increasing from the last ten years. The data of the global unit sale of the
Coca Cola Company can be represented by following chart.
(Figure)
12
10
6
unit sale in billions
4
0
1971 1981 1991 2002
14
So there is positive growth in the market of the Coca Cola Company. There is
a worldwide volume increase by 4% with strong international growth of 5%.
This is only due to the innovative marketing programmers, which has
deepened the relationship of the customers and Coca Cola. The financial
health and success of their bottling partners is a critical component of The
Coca-Cola Company's ability to build and deliver leading brands.
In 2002, the company had worked with their bottlers to turn good intentions
into reality by improving the system economics.
The results in 2002 reflect this steadily improving and mutually constructive
relationship between the Company and their bottling partners. The main
reason behind this relationship is to continue realizing shared opportunities for
growth, with closer coordination of operations including customer
relationships, logistics and production.
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EXTERNAL MARKETING ENVIRONMENT (PEST ANALYSIS)
Non-alcoholic beverages fall within the food category under the FDA. The
government plays a role within the operation of manufacturing these products
in terms of regulations. There are potential fines set by the government on
companies if they do not meet a standard of laws.
The following are some of the factors that could cause Coca-Cola company's
actual results to differ materially from the expected results described in their
underlying company's forward statement:-
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Economical Analysis
Being flexible and willing to change to satisfy consumers’ needs, has enabled
Coca-Cola to exploit the economies of scale that was gained by its global
marketing and at the same time making its products appeal to local taste,
which these have earned the company an enormous profits quarterly.
As Coca-Cola has expanded over the decades or even nearly a century, the
company has benefited from the various cultural insights and perspectives of
the societies in which business is done. No doubt of the remarkable
experience it has, it is still very committed to local markets, to paying attention
to what people from different cultures and backgrounds like to drink, and
where and how they like to drink it, to remain competitive and to develop more
new drinks to satisfy its markets.
Previously the U.S. economy was strong and nearly every part of it was
growing and doing well. However, things changed. Before the attacks on
September 11, 2001, the United States was starting to see the economy
recover slightly and it is only just recently that they achieved the economic
levels. Consumers are now resuming their normal habits, going to the malls,
car shopping, and eating out at restaurants. However, many are still handling
their money cautiously. They believe that with lower inflation still to come,
consumers will recover their confidence over the next year. As researching for
new products would cost less the Coca-Cola Company will sell its products for
less and the people will spend as they would get cheap products from Coca-
cola.
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Social Analysis for Coca-Cola
After discovering that Coke did not appeal as much to Japanese consumers,
Coca-Cola developed over 30 new drinks for the Japanese market, which
inclusive of Asian tea, English tea, coffee and fermented-milk drink.
planning of introducing the market with a Chinese iced tea and soy milk drink.
Many U.S. citizens are practicing healthier lifestyles. This has affected the
non-alcoholic beverage industry in that many are switching to bottled water
and diet colas instead of beer and other alcoholic beverages. Also, time
management has increased and is at approximately 43% of all households.
The need for bottled water and other more convenient and healthy products
are in important in the average day-to-day life.
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Consumers from the ages of 37 to 55 are also increasingly concerned with
nutrition. There is a large population of the age range known as the baby
boomers. Since many are reaching an older age in life they are becoming
more concerned with increasing their longevity. This will continue to affect the
non-alcoholic beverage industry by increasing the demand overall and in the
healthier beverages.
Some factors that cause company's actual results to differ materially from the
expected results are as follows:
• Introduction of cans and plastic bottles have increased sales for Coca-
Cola as these are easier to carry and you can bin them once they are
used.
• Coca-Cola has six factories in Britain which use the most state-of the-art
drinks technology to ensure top product quality and speedy delivery.
Europe's largest soft drinks factory was opened by CCE in Wakefield,
Yorkshire in 1990. The Wakefield factory has the technology to produce
cans of Coca-Cola faster than bullets from a machine gun
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MARKET SHARE BY AREA:
Coca Cola is the world-renowned soft drink and the company is currently
operating through out the world. The world wide total is about 17.8 billion.
The operation review according to the segments is as follows.
Operation Review
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NORTH AMERICA
LATIN AMERICA
AFRICA
So the volume is least in the Africa and most in the North America. The data
about the market share of this company area wise is given in the following
table.
The above table shows the geographical earning of the Coca Cola Company
and from this data; we can find out that the customers of Coca Cola are
increasing which is shown by the company’s per capita income.
Unit case equals 24 eight-ounce servings. The column, which shows the non-
alcoholic beverages consist of commercially, sold beverages, as estimated by
the Company based on available industry sources. The country column is
derived from
The Company's unit case volume while the industry column includes
nonalcoholic ready-to-drink beverages only, as estimated by the Company
based on available industry sources.
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(Table)
Country Unit case growth Non- All commercial
alcoho Beverages
lic
Drinks
10 year 5-year 2002 annual 2002 2002
compound compound growth
annual growth annual growth
Comp Indust Comp Indust Comp Indust Comp Comp Compa
any ry any ry any ry any any ny per
share share capita
Income
North 4 5 3 3 2 2 22 15 398
Americ
a
United 4 5 3 3 2 2 23 16 419
States
Latin 6 7 6 6 3 4 24 15 205
Americ
a
Argenti 7 4 6 2 7 2 20 10 236
na
Brazil 5 5 3 6 3 5 23 13 144
Chile 9 6 5 3 (2) 3 56 23 336
Mexico 7 10 8 9 2 5 22 18 462
Europe 6 3 5 3 2 4 12 6 72
& Middl
e East
Eurasia 17 8 6 5 (14) 1 14 5 39
France 8 3 9 3 7 3 9 5 110
Germa 1 2 (1) 1 (6) 1 14 7 193
ny
Great 8 2 11 2 8 3 17 6 193
Britain
Italy 1 3 4 3 2 2 9 6 104
Middle 12 12 7 5 4 8 8 3 17
East
Spain 6 4 8 5 4 4 17 12 264
Asia 7 6 6 7 10 7 14 5 23
Africa 7 6 8 3 10 6 34 11 34
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In Asian population, which is the satisfied customer of Coca Cola, is
approximately 3.2 billion and the average consumer enjoys close to two
servings of our products each month. Through an intense focus on Coca-Cola,
innovation and new beverages, the company has achieved volume growth of
10 percent in 2002. With developing economies and
populations, this region has strong long-term potential, and the company is
building an exciting family of beverage brands in addition to expanding the
popularity of our core brands, led by Coca-Cola. In China, for example, sales
of Coca-Cola increased 6 percent. The total unit case sale of Coca Cola in
Asia can be shown by the following pie chart.
(Figure)
FINANCIAL REPORT:
This company is financially very strong. It is due to the strong finances, the
company is still surviving the ups and down of the business world. The
financial report of Coca Cola Company of the year 2001 and 2000 along with
the percentage change is as follows.
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(Table)
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2002 basic and diluted net income per share includes a non-cash gain of $.02
per share after taxes, which was recognized on the issuance of stock by
Coca-Cola Enterprises Inc., one of the equity investors of this company.
2002 basic and diluted net income per share includes the following charges:
• $.24 per share after income taxes related to an organizational
Realignment.
• $.19 per share after income taxes related to the Company's portion of
charges recorded by the investors of the company.
• $.16 per share after income taxes related to the impairment of certain
bottling, manufacturing and intangible assets.
• $.05 per share after income taxes related to the settlement terms of a
discrimination lawsuit.
• $.01 per share after income taxes related to incremental marketing
expenses in Central Europe.
These charges are partially offset by a gain of $.05 per share after income
taxes related to the merger of Coca-Cola Beverages plc and Hellenic Bottling
Company S.A. and $.04 per share after income taxes related to benefits from
a tax rate reduction in Germany and from favorable tax planning strategies.
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COMPANY STATISTICS;
(Table)
2002ª 2001
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Bottle and can cost of sales per physical case 1 ½%
change
Reported EBITDA (in billions) $1.95 $2.39
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PRODUCTS:
There are different brands of the Coca Cola Company, which are currently in
use through out the world. This company not only deals in the carbonated
drinks but also other drinks. While launching its product, the marketing team
considers the culture of the country.
• Coke
• Sprite
• Fanta
• Diet coke
• Coke classic
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The over all volume of this company is as follows.
(Figure)
In 2001and 2002, the company has also made good progress in coffees and
teas. Beverage Partners Worldwide, the renewed and strengthened marketing
partnership with Nestlé S.A., began operations in 2001. This partnership
combines Nestlé's knowledge in life science, research and development with
the expertise of Coca Cola Company in brand building and distribution.
At the same time, the company grew Georgia coffee in Japan by 3 percent
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through award-winning marketing in a category that was flat for the year. Also
in Japan—where The Coca-Cola Company is the leader in the total tea
category, the second-largest category in the non-alcoholic ready-to-drink
segment—it launched Marocha Green Tea. With sales of 46 million unit cases
for the year, Marocha Green Tea is the fastest-growing product in the fastest-
growing category: green tea. The popularity of Marocha is also recognized by
the industry with a leading trade journal naming Marocha the most popular
new food and beverage product of the year.
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Among the soft drinks Fanta and Sprite become successful along with the
major brand Coca Cola and Diet Coke. In key markets, the company has
created new packaging sizes to satisfy consumer demands.
Soft drink in North America: diet Coke. The company increased its two largest
bottle sizes during the 2001 holidays, and festival packaging helped drive a 6
percent volume increase for Coca-Cola. The packaging innovations do not just
involve resizing. The company has also responded to consumers' changing
fashion styles with new bottles.
With brands such as Minute Maid, Hi-C, Simply Orange and Disney juices and
juice drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo
in Africa.
This year, the company re-launched its global sports-drink business, investing
in new products, packaging, positioning and marketing. The results speak for
themselves: it’s global sports drinks, led by Powerade and Aquarius, grew by
13 percent in 2002, nearly double the growth rate of the worldwide sports-
drink category.
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MARKETING MIX OF COCA-COLA
Firstly, we will look at how Coca-Cola has used their marketing mix. The
marketing mix is divided up into 4 parts; product, price, promotions and place.
1. Product:
The product (Coca-Cola soft drink) includes not just the liquid inside but
also the packaging. On the product-service continuum we see that a
soft drink provides little service, apart from the convenience. Soft drinks
satisfy the need of thirst. However, people are always different, some
want more and others want less. Therefore Coca-Cola has made
allowances for that by providing many sizes. We also have particular
tastes, and again they have provided several options. So, although
thirst is what is needed to be satisfied and that is the core benefit, we
are receiving other benefits in the taste and size. Coca-Cola has
developed several different flavours and sizes as mentioned above, but
also several brands such as Sprite, Lift, Fanta and Diet Coke which
increase the product line length, thus making full use of the market to
maximize sales.
The quality of the soft drink is needed to be regularly high. Sealed caps
ensure that none of the "fizz" is lost. The bottles are light, with flexible
packaging, so they won't crack or leak, and are not too heavy to casually
walk around with. The cans are also light and safe.
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The product range of Coca-Cola includes:
• Coca-Cola,
• Coca-Cola classic,
• caffeine free Coca-Cola,
• diet Coke
• caffeine free diet Coke,
• diet Coke with lemon
• Vanilla Coke,
• diet Vanilla Coke,
• Cherry Coke,
• diet Cherry Coke,
• Fanta brand soft drinks,
• Sprite,
• diet Sprite
• Sprite Remix
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Product Lifecycle of Coke:
The markets where Coke is a dominant player are United States of America,
Europe and Asia, Africa. There is a vast difference in terms of above given
phases for example, in U.S.A & Europe it has reached maturity stage where it
can’t expand its market more but if we consider Asia, it is still in the growth
phase.
2. Price:
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Throughout the years Coca-Cola has made many pricing decisions but
one might say that their ultimate goal has always been to maximize
shareholder value. As cola consumption has decreased in the US colas
have come to realize the untapped international market. In 2003 both
Coke and Pepsi had a solid presence in India and had each introduced
a 300mL bottle. In order to grab market share Pepsi began to drop
prices (even with summer approaching, which was contrary to policy in
America). Shortly thereafter, Coca-Cola decided to drop their prices
slightly, but focused on the reduced price point of their 200mL container.
Coca- Cola planned to use the lower price point to penetrate new cities
that were especially price sensitive. The carbonated soft drink market in
India is nearly 37% of the total beverage market there.
This low price strategy was not unfamiliar to Coca-Cola. Both Coke &
Pepsi utilized a low price strategy in the early 1990s. After annihilating
the low price store brands, Coke chose to reposition itself as a
"Premium" brand and then raise prices.
3. Place:
There are different types of franchising. The type that is used by Coca-
Cola Company is manufacturer-sponsored wholesaler franchise system.
It is very comparable to licensing but the only difference is that the
finished products are sold to the retailers in local market.
Coca Cola has managed their company’s marketing and sales strategy
within channels. Have you ever considered the significance of the Coke
vending machine to the success and profitability of the Coca Cola
company? This channel is direct to consumer and vending machines
often have little to no competition and no trade or price promotions.
The Coke Company operates three primary delivery systems for its
business channels:
• Supermarkets
• Convenience Stores
• Fast Food
• Petroleum Retailers
• Chain Drug Stores
• Hotels/Motels/Resorts
• Mass Merchandisers
• U.S. DOD Military Resale retail commands: AAFES, NAVRESSO
and DECA
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In 2006, the Company began changing its delivery method for its route
delivery system. Historically, the Company loaded its trucks at a
warehouse with products the route delivery employee would deliver. The
delivery employee was responsible for pulling the required products off a
side load truck at each customer location to fill the customer's order.
Coke began using a new CooLift® delivery system in 2006 in a portion
of the Company's territory which involves pre-building orders in the
warehouse on a small pallet the delivery employee can roll off a truck
directly into the customer's location. The CooLift® delivery system
involves the use of a rear loading truck rather than a conventional side
loading truck. Coke will continue to rollout this program over the next
several years since they expect such significant savings and more
efficient deliverys. This is a huge investment for Coke.
Coca-Cola floods all possible retailing stores in satisfying the third part,
place. In supermarkets and convenient stores, Coca-Cola products are
always easy to identify, and usually make up the greater proportion of
options to buy. This increases their market exposure through effective
use of the retailers. For a FMCG it is important that they can be found
and purchased easily. With many automatic Can machines located in
many sports stadiums and shopping malls, you don't even need to go to
a store to buy a drink. This greatly enhances the speed of purchase.
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The Coca-Cola Company only produces a syrup concentrate, which it
sells to various bottlers throughout the world who hold Coca-Cola
franchises for one or more geographical areas. The bottlers produce the
final drink by mixing the syrup with filtered water and sugar (or artificial
sweeteners) and then carbonate it before filling it into cans and bottles,
which the bottlers then sell and distribute to retail stores, vending
machines, restaurants and food service distributors.
STRATEGIC PLANNING
In the year 2002, the company had a great success, as the strategy worked
which resulted in making Coca Cola Company the world’s leading company.
In 2001, company accomplished the crust of it’s strategy as
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• Worldwide volume increased by 4 percent with strong international
growth of 5 percent and clear signs that our North American business is
growing solidly and predictable.
• Earnings per share grew by 82 percent, as we delivered on our
commitment to create volume growth while aggressively
• Return on common equity grew from 23 percent in 2000 to 38 percent
this year.
• Return on capital increased from 16 percent in 2000 to 27 percent in
2001.
• The company has generated free cash flow of $3.1 billion, up from $2.8
billion in 2000, a clear indication of its underlying financial strength.
The strategy for the future of the company is very straightforward. The
marketing strategy for the year 2002 is as follows,
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MAJOR COMPETITOR
PEPSI INTERNATIONAL
HISTORY
1990-2002
The advertisement of the Pepsi changes to, “You got the right one baby, Uh-
Huh!”.With the extensive usage of the stars in the adds, the popularity of
Pepsi increase. In 1992 Pepsi-Cola formed a partnership with Thomas J.
Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the
United States. Outside the United States, Pepsi-Cola Company's soft drink
operations include the business of Seven-Up International. Pepsi-Cola
beverages are available in more than 190 countries and territories.
In Asia, they selected Lahore to make their regional office. This was done in
1970. This regional office is monitoring all the operations carried out in South
West Asia. As in Pakistan, they only entered beverage industry. They have
eleven bottlers covering whole Pakistan. The plant operating here is Riaz
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Bottlers (Pvt) LTD. This plant was established at Lahore in 1974. The total
capacity of the plant is 30,000 cases per day.
Pepsi’s Products
• Pepsi
• Teem
• Mirinda
• Pepsi Max
• Pepsi Lemon
• Pepsi Blue
• Mountain Dew
• 7up
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COCA COLA PAKISTAN
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COCA COLA PAKISTAN
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PROMISE OF COKE
The basic proposition of our business is simple, solid and timeless. When we
bring refreshment, value, joy and fun to our stakeholders, then we
successfully nurture and protect our brands, particularly Coca-Cola. That is
the key to fulfilling our ultimate obligation to provide consistently attractive
returns to the owners of our business.
TARGET MARKET
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MAJOR SEGMENTS
Major segments are basically those people who take this drink daily and those
areas where the demands is higher then the other areas. There are so many
people who take this drink daily and those people who take weekly and those
who take less often are always there as well. So, their basic segments are
those people who take this drink regularly.
There are so many factors, which affects the sale of coke. Here we are
discussing three major factors which effects coke.
• Per capita income
• Competitors
• Weather
First we will discuss about “ Per capita income”. This is major factor that
affects the sale of this soft drink. Because which every passing year budgets
are becoming very strict and tight in order to purchase things. So the
disposable incomes of the people are coming down. They spend heavily on
rents, utilities, and education and basic necessities and after that when they
get extra money they think about this soft drink .So the decreasing per capita
income effects badly in selling and production of this soft drink.
And to get through with this difficulty there is need to increase the level of per
capita income of Pakistan because it is much lesser than the rest of the
countries.
Competitors
Weather is the third major factor in effecting the Coke’s selling. This is
underdeveloped market so the coke’s consumption in summers is 60% and in
winters is 40%.
First of all the majority don’t care that what they are going to have. In other
words, they don’t care before drinking that whether it is “Pepsi” or “coke”. They
don’t actually differentiate between these two brands in order to their tastes.
Consumers basically drink what they get.
They believe on “WHAT COLD THEY SOLD”
Consumer’s availability in brands is basically works like:
Push availability
Pull consumer’s demand.
MAJOR COMPETITORS
Consumers firstly decide that they are going to have a soft drink. Then they
compete brands with each other. Like they compete Coke with Pepsi and
Sprite with 7up and team .So the major competitor of Coke is Pepsi.
When they motivate to any other brand or on Coke it’s in instinct basically that
based on messages derive certain feelings.
But Coca Cola thinks in a different way, they believe that RC Cola, new
coming AMRAT Cola, and all juices, even they take water and tea as their
competitors.
STRATEGIES OF QUALITY
Threats are well planned. Price is the major threat. When price goes certain
beyond the exact price whether come down or go higher its effects the
consumption of soft drink.
Because when the price go higher people go for the substitute of “coke” i.e.
Pepsi.
And when price goes down they think that there is must be some thing wrong
in it.
In short it all depends on customer’s perception.
They could be over night profit that is for the number 1 brand for the year. This
could be got my increasing sales volume
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Windfall Profit
Can be windfall profit. They are the extras profit. When the consumption the
consumption is on boom. So, there is different kind of profits.
Profit can also get through ethical and unethical ways. They believe on this
quote
“ Every thing is fare in love and war”.
Some profits stays for some time like “over night profits” and some just come
and go like “wind fall profits”. And they can also get profit through different
approaches.
Now the consumer has got choice. Because now they know the name of
another big brand, though coke is the 2nd best name but it can get a better
position after some time
Now the consumers know the Name of Coke, because Coke is the name,
which is the most popular after the word “ok”. So people can better
differentiate brands with each other.
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Brand Differentiation
Now different companies have got different brand names. So, people can
distinguish between brands. Two major brands “coke” and “Pepsi” also have
brand names.
Coca cola is “US” brand. Because they believe in the togetherness, being
people together and friends are being together. Coca Cola strongly believes
that Pakistani temperament is “US” not “ME”
Pepsi’s Brand
Opportunities
If Coke is considered a luxury product. Then there is the tax rate system
15% - sales tax
20% - excise duty
27% - goes to government
03% - In making Budget
After paying all these taxes coke has to pay electricity charges. We have to
spend on distributions. After paying all these expenses Coke’s margin
squeezed and consumers have to pay for increasing tariffs.
These are the opportunities through which we can increase the price and can
get profits.
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STRATEGIES OF GETTING GOALS I.E. “HIGH PROFITS”
To increase the price is the least thing, which Coke can adopt. There are so
many ways through which Coke can increase the profits. Some major ways
are as follows.
Coke can increase the volume by expanding the industry of coke. Through
advertisements, offering different interesting things to attract people towards
this product.
Coke is already taking part in the festival like “Basant” since last 3 years. Coke
offers different attractive things in their festival and through this Coke gained
high profit and consumption of coke increased on these occasions.
And this year in this year 2002 people were anxiously waiting that what
interesting thing coke is going to offer.
MARKETING STRATEGY
Our local marketing strategy enables Coke to listen to all the voices around
the world asking for beverages that span the entire spectrum of tastes and
occasions. What people want in a beverage is a reflection of who they are,
where they live, how they work and play, and how they relax and recharge.
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Whether you're a student in the United States enjoying a refreshing Coca-
Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice
drink, or a couple in Korea buying bottled water after a run together, we're
there for you. We are 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
communities in which we do business. It's a special thing to have billions of
friends around the world, and we never forget it.
MARKET POSITIONING
Product Range
And company offers their products in different bottle sizes these includes:
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Packing
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 that’s 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.
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.
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PROMOTION STRATEGIES
Getting shelves
They gets or purchase shelves in big departmental stores and display their
products in that shelves in that style which show their product more clear and
more attractive for the consumers.
Salesman of the coca cola company positions their freezers and their products
in eye-catching positions. Normally they keep their freezers near the entrance
of the stores.
Sale Promotion
Company also do sponsorships with different college and school’s cafes and
sponsors their sports events and other extra curriculum activities for getting
market share.
UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme
and they offer very handy prizes in it. Like once they offer bicycles, caps, tv
sets, cash prizes etc. This scheme is very much popular among children.
DISTRIBUTION CHANNELS
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.
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Indirect Selling
They have their whole sellers and agencies to cover all area. Because it is
very difficult for them to cover all area of Pakistan by their own so they have
so many whole sellers and agencies to assure their customers for availability
of coca cola products.
ADVERTISEMENT
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TV Commercials
Coca cola is very much conscious about their billboards and holdings. They
have so many sites in different locations for their billboards.
Every thing starts from the attitude of consumer’s behavior. And the basic key
to attract the consumers is to throw the “money away”.
And positive feeling felling with the brand, which they used to have Coke
wants to advertise their products heavily in the coming year. And it will take
the 10% of their profits. And when we take it as a global level it is $ I billion.
Coming year is the challenging year for the industry of Coke. They have to
take lots of decisions that how to increase the production and where they have
to spend money.
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For gaining success in coming year they have to have some important things
like:
1. Loyal consumers are important for company’s success.
4. They should also know that how much to do with the promotion activities
for brand.
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Sales Volume
Coke determines its yearly budget through the sales volume. They first
concentrate on the thing is “what is the condition of their sales?” if the
condition is good of their sales then they definitely increase their production
and sales volume. Otherwise they concentrate on their old strategies.
Profitability:
The second thing through which they determines budget is the “profit” .if they r
getting profits with the high margin, then they definitely want to increase their
profits in the next coming year. Every organization runs on the basis of getting
high profits.
No organization wants to face Loss in their business. To get profit is the first
priority of the Coke.
Target Volume:
To run the business every industry has some targets, which they want to
achieve in a specific time period. If industry achieves those goals in that
period then for the coming year it increases the volume of the target.
So Coke Follow the same thing it has also some goals and targets to achieve
in the given time period. When they succeed to achieve that target then they
increase their target volume in the next year.
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SALES PROMOTION ACTIVITIES
Coca-Cola Cricket
Cricket the most sought after; watched & played game in Pakistan .the game
of cricket has been owned by various brands in the industry for the promotion
of their products over a period of time. It has ranged from tobacco to lubricants
to communication companies to banks to airlines & lately to the beverage
industry.
The competition has become tougher & tougher as the time has progressed.
These bold steps taken by the Coca-Cola marketing unit acclaimed them
many acknowledgements across the board. This campaign helped Coca-Cola
to establish its association with the game & the player.
Coca-Cola Concerts
Abrar-ul-haq’s distinct style, lyrics & songs have made him an instant hit
among the masses in Pakistan. His enormous popularity in the country &
abroad is supported by Coca-Cola’s commitment towards providing healthy &
fun-filled entertainment for the youth of Pakistan. Coca-Cola brought Abrar to
his fans through holding concerts & featuring Abrar in a much-appreciated
TVC & MMT featured throughout the country.
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The TVC campaign focused on the hectic lifestyle of a pop star who found
respite & relief through Coca-Cola in short moments that he had to himself
during a concert. Coca-Cola’s brand positioning of providing deep down
refreshment for the body, soul & mind were captured accurately in the TVC &
depicted aptly how the drink completes the moment for Abrar.
With a splash of food, fun & prizes to be won, the Coca-Cola food mela
treated the people of Karachi, to a festive food festival comprising of 50
restaurants, spread out all over the bustling city’s map. The promotion saw the
avid families & friends enjoying the delicacies at the restaurants; all resiliently
upholding the Coca-Cola identity.
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Coca-Cola Basant Festival
In February the month of basant the parks & horticulture authority in Lahore
nominated Coca-Cola the official sponsor of the basant festival .Coca-Cola
added to the carnival atmosphere by making the festival free to enter &
decorating all main roads in Lahore with illuminated kites. Coca-Cola also
hosted a concert of pop idol Abrar-ul-haq, had children’s parade & held the
Coca-Cola kite flying championship during the basant festival. Now “where
there is basant there is Coca-Cola”, it has been impossible to envisage basant
without Coca-Cola. Coca-Cola give the more refreshing flavor to the colors of
basant by adding more life to the festival, giving the consumer a unique
experience which they had never tasted before.
Coca-Cola GO-RED
A very special occasion for the people of Pakistan Ramzan saw another very
special Coca-Cola’s promotion, marketing the popular 1.5 liter PET bottle &
the 1 liter bottle with a super price-off promotion. The emphasis on enjoying
Coca-Cola at “Iftar” with friends & family.
In July 2000, Coca-Cola set the stage of the grand UTC promotion. Coca-Cola
went ahead with the idea of giving consumer chances to win fabulous, magical
“dream vacation” to numerous “wonder destination” throughout the world on
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every purchase of a 250 ml RGB bottle of Coca-Cola, Sprite, & Fanta.The
promotion gave consumers a chance to win free drink, a trip to PARIS,
HOLLYWOOD, NEWYORK, SINGAPORE & CAIRO along with airfare & four
nights free stay in these dream lands. The promotion saw avid consumer
collecting Coca-Cola ‘Crown caps’ & sparked a keen response from the public
, rendering an outstanding testimonial campaign in the second phase,
highlighting the winners over whelmed in the magical delight of their favorite
beverage Coca-Cola.
The coca cola new campaign is coca cola tv mazza, it is a utc scheme in
which people are getting television sets of different sizes. These days this
scheme is very popular among the people.
Coca-Cola & key account of MC Donald’s launched the “we go together” joint
promotion to reinstate amongst consumers a real sense of the affinity that,
both shares globally. The promotion kicked off with pos material (Danglers,
Bunting etc) displayed at all MC Donald’s restaurants along with a special
offer for coke & fries.
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SWOT ANALYSIS
Strengths:
A company like Coca-Cola has much internal and external strength, but
when launching a product of this sort, they begin to run into many
internal and external weaknesses as well. As far as internal strengths
go, Coca-Cola itself is a strong company to say the least. Not only are
they a $23 billion company, but in 200 nations, Coke sells about 400
drink brands, including four of the top five sellers right now. They own
36% of the largest Coke bottler in the world, Coca-Cola Enterprises,
which staffs facilities all over the world.
Weaknesses:
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.
Opportunities:
Threats:
Even though Coca-Cola and Pepsi control nearly 40% 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.
Consumer buying power also represents a key threat in the industry. The
rivalry between Pepsi and Coke has produced 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
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CONCLUSION
RECOMMENDATIONS
After completing our project we have concluded some recommendation for the
coca cola company, which are following.
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Conclusion Of Political Analysis:
As far as the above table is concerned it could be seen that there are very
little chances of “political variables” to effect the coke’s production and selling
behavior.
In the “political variables” most of the things are related to Governmental
activities. So, they don’t leave any good or bad impact in the Industry of coke.
So “political conditions” are over all leave neutral effects on coke’s industry.
ECONOMICAL VARIABLES
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Conclusion Of Economical Analysis
SOCIAL VARIABLES
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contribution affect
charity organizations
of Pakistan
Has rising YES
consciousness of
natural resources in
people effected your
“save environment
activities.
EDUCATION
ENVIRONMENT
A large part or our relationship with the world around us is our relationship
with the physical world. While we have always sought to be sensitive to the
environment, we must use our significant resources and capabilities to provide
active leadership on environmental issues, particularly those relevant to our
business. We want the world we share to be clean and beautiful. We are
always innovating to bring you different delicious beverages. This same spirit
of innovation comes alive in our environment programs. We’re committed to
preserving our environment, from use of more than $ 2 billion (U.S) a year in
recycling content and suppliers, and environment
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Management initiatives, down to very local neighborhood collection and
beautification efforts. Here’s a sample of what we’re doing in different
communities around the world regarding the conservation of water and natural
resources, climate changes, waste environment education.
The Coca-Cola system in Pakistan operates through eight bottlers. Four of
which are majority-owned by Coca-Cola Beverages Pakistan Limited
(CCBPL).
COMMUNITY INVOLVEMENT:
In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola
system initiated a famine-relief program to help victims and was the first
private-sector company to assist.
TECHNOLOGICAL VARIABLES
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equipment
As far as the “governmental hindrances” are concerned the impacts highly bad
on coke’s production. Ever year when budget in announced government taxes
rates always shoot up. This approach of government decreases the profit
margin of Coke.
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DATA ANALYSIS
35
30
25
20
15
10
0
yes no
Out of the 30 people we surveyed, all of them said they had tried Coca-
Cola atleast once. This explains the brand awareness of Coca-Cola.
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2. Gender
20
18
16
14
12
10
8
6
4
2
0
male female
3. Age groups
Age Groups
51 & above
36-50 yrs
20-35 yrs
10-19 yrs
below 10 yrs
0 5 10 15
no. of people
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4. Do you enjoy the product (Coca-Cola)?
no
23%
yes
77%
From the analysis, it was found that majority of 77% (23 people)
respondents said they enjoyed drinking Coca-Cola as against 23% (7
people) who said they preferred other drinks.
a) Coca-Cola
b) Pepsi
c) Other
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Others
7%
Pepsi
37% Coca-Cola
56%
not bad
0 2 4 6 8 10 12 14
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7. Do you think the price for a can of Coca Cola is cheap or
expensive?
expensive
slightly
overpriced
cheap
0 5 10 15 20 25
77
8. If you were to see the Coca-Cola logo somewhere would
you recognize it?
no
0%
yes
100%
It is understood from the fact that the Logo of the Company still has
its image in the minds of the people with all the respondents saying
they would recognize the “Coca-Cola” Logo.
everyday
never
0 5 10 15
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As it can be seen in the figure, it was concluded that majority of the
respondents bought the product quite frequently. This shows the brand
loyalty of the customers towards Coca-Cola.
Restaurants
general stores
super markets
0 5 10 15 20
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CONCLUSION
• Although Coke has been into controversies, people still prefer to stay
loyal to the Brand with Coca-Cola being termed as a more popular brand
than Pepsi.
So…
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LIMITATIONS
• Time Constraints:
• No Customer Interection:ection
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SUGGESTIONS
In the report we have seen the graph of order booking targets and sales
turnover. In the graph of order booking we have seen that the order for our
product is increasing year. It means that with the increase of order to target.
• Cost efficiency:
keep certain points in our mind they are resale of scraps, inventory
• Profit generation:
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company should try to work on export. They should lay more emphasis
on export.
• Improving technology:
not good.
international market.
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Name: __________________________
a) Yes
b) No
2. Gender
a) Male
b) Female
a) Yes
b) No
c) It's not bad
5. What brand would you say is more popular among the public?
d) Coca-Cola
e) Pepsi
f) Other
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6. Do you enjoy Coca Colas advertisements on TV?
a) Cheap
b) Slightly over priced
c) Expensive
8. If you were to see the Coca Cola logo somewhere would you
recognize it?
a) Yes
b) No
a) Never
b) Once/few times a year
c) Few times a month
d) Few times a week
e) Everyday
a) Super Markets
b) General stores
c) Restaurants (McDonald's, Subway, KFC etc)
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ANNEXURE
and practices. This annexure has been compiled for the net-savvy reader who would
like to surf the net for information on an aspect that is, in some way, related to matter
covered in this project work. This compilation is meant to be illustrative rather than
comprehensive and there might be many other sources. You must be on the guard as
every site listed on the search engines under the title ‘Marketing Strategies Analysis’
may not be related to my project over my study undergone in BPC Hindustan Coca-
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BIBLIOGRAPHY
• Economic Times
Websites:
• www.google.com
• www.coca-colaindia.com
• www.altavista.com
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