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-609600-152400<br />Marketing Plan<br />Presented by:<br />Abiha HamidBBA-FA08-025<br
/>Noor ul Ain AfzalBBA-FA08-031<br />Sumaira HafeezBBA-FA08-034<br />Zara AhmedBBA-FA08-039<br
/>Iqra KhalidBBA-FA08-067<br />Presented to:<br />Ms. Samreen Awais<br />ACKNOWLWDGEMENT<br
/>First and fore mostly we would like to thank Almighty Allah who blessed us with knowledge, understanding
and ability to do this project.<br />We have discovered that the work of some unknown persons makes our
lives easier every day. We believe it&apos;s appropriate to acknowledge all of these unknown persons; but
it is also necessary to acknowledge those people we know have directly shaped our lives and our work.<br
/>First of all we would like to thank our teacher Ms. Samreen Awais for her guidance throughout the
semester.<br />We thank Assistant Manager Coca Cola Faisalabad Division, Mr. Mehboob Sultan, under
whose kind supervision we got our required material. We are also very thankful to the Mr. Muhammad
Nadeem, Head of Division Pepsi Co. Faisalabad.<br />DEDICATION<br />This project is dedicated to our
parents who have enabled us to stand on our own feet and have guided us in all matters of life.<br />May
Allah bless them!<br />Ameen<br />TABLE OF CONTENTS<br />Contents:Page No.<br />
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Executive Summary 6
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Introduction 7
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Situation Analysis 10
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External 10
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Customer 10
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Competitor Analysis 11
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Internal 12
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Company12
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Context 12
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Market Summary 13
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Market Growth 13
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Market Demographics 13
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Psychographics Segmentation & Market Trends 14
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Market Needs 14
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Market Behavior 14
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Market Share Growth Rate 15
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Market Growth 16
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SWOT Analysis 17
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Strengths18
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Weaknesses19
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Opportunities19
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Threats19
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Competition21
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Product Offering22
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Keys to Success23
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Critical Issues24
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Marketing Strategy25
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Mission26
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Marketing Objectives27
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Financial Objectives28
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Target Markets28
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Stretegies 28
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Positioning29
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Marketing Mix30
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Product30
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Promotion30
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Place31
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Price32
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Financial Analysis33
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Break Even Sales34
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Sales Forecast35
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Implementation& Control 36
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Recommendations37
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Appendixes38
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Executive Summary
We are the students of BBA studies in The University of Faisalabad and we have established this marketing
plan after critically examining and thoroughly researching over it. It consists of examining market research,
auditing situation analysis and carefully scrutinizing the soft drink industry and possibilities for Coca Cola in
the market. We have carefully analyzed the internal and external business environments and critically
examined the industry in general, considering all external threats and opportunities.<br />
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Introduction
The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton,
began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899
when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the
exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company.<br
/>2343150127000TypeSoft Drink (Cola)ManufacturerThe Coca- Cola CompanyFounder (s)John S.
PembertonCountry of OriginUnited StatesIntroduced1886Area ServedOver 200 countriesColorCaramel E150dFlavorsCola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola
Raspberry.Employees92,400Servings per Day1.6 BillionWebsitewww.coca-cola.com<br />MAJOR
PRODUCTS OF COCA COLA INTERNATIONAL<br />Product NameImageCoke Sprite Fanta Diet Coke
Minute Maid Minute Maid Juices Kinley Drinking Water <br />
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Situation Analysis
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. <br />In 2002, the company grew their carbonated softdrink 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.<br />In Asian population, which is the
satisfied customer of Coca Cola, is approximately 4.2 billion and the average consumer enjoys close to four
servings of our products each month. Through an intense focus on Coca-Cola, innovation and new
beverages, the company has achieved volume growth of 22 percent in 2009.<br />So the company is
emphasizing more in this area and is trying to develop a strategy, which can increase the growth of the
consumption of Coca Cola by the people of Asia. Among the countries of Asia, Japan has the highest
percentage, which is about 29%. Among others, Pakistan, India and Bangladesh are those countries where
the average consumption is increasing day by day.<br />
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External Factors
Customers:
Customer satisfaction is considered as being the most important and vital things in Coca Cola’s progress.<br
/>The company expects to increase volume worldwide by 7 percent with strong international growth of 8.2
percent by 2010. It focuses on:<br />
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Customer Database
Getting new potential customers, side by side retaining old ones.
Giving customers more than just a soft drink.
Brand loyalty.
Marketing is a science, not an art. Give consumers more reasons to sue your product.<br />
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Competitor Analysis:
2495550308610MAJOR COMPETETOR: PEPSI CO.
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over
143,000 employees. The company consists of the snack businesses of Frito-Lay North America and FritoLay International.<br />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.<br />Pepsi Co. has focused on these marketing
principles to attain their higher share of market in Asia:<br />
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Measuring Satisfaction using various techniques
Increasing customer perceived value (CPV)
Increasing shareholder wealth. The earnings per share are expected to grow to 116
Rs. In 2010.
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Maintaining its supply chain management to ensure that the customer gets Pepsi
exactly when he requires.
Mass Marketing via advertising Pepsi with customer attraction areas e.g. celebrities
(Shahrukh Khan, Junaid Jamshed, Adnan Sami), Sports (Cricket), concerts (Haroon etc)
Price Indiscrimination all over the region
Focusing on Brand image
Customer retention schemes such as lucky draw, meeting your favorite celebrity etc
Adding social and ethical benefits to every bottle they sell.
Internal Factors:
Company:
The Coca Cola Company has always focused on portraying a simple yet strong brand image. Their motto
was:<br />Know the most recognized word on the planet after “OK”!<br />3608070986790In 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.<br />Major Products (Asia):<br />
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Coca-Cola introduced in Pakistan 1953
Fanta introduced in Pakistan 1965
Sprite was introduced 1972
Diet Coke & Fanta Lemon 2001
Context:
Any company can only exceed its sales and profits if it has an excellent marketing strategy and if it is
bringing innovation in its resources with every passing day.<br />The company has generated free cash flow
of $14.1 billion, up from $11.8 billion in 2008, a clear indication of its underlying financial strength. This
increase is contributed to Coca Cola’s changing marketing strategy. They have focused on increasing sales
in Asia as a foremost ingredient since the last few years as coca cola did not have a large market share
previously. They have competed well against Pepsi Co. in getting a reasonable market share.<br />
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Market Summary
Market Growth:
According to the 2005 Annual Report, the company sells beverage products in more than 200 countries. The
report further states that of the more than 50 billion beverage servings of all types consumed worldwide
every day, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately
1.5 billion. Of these, beverages bearing the trademark " Coca-Cola" or " Coke" accounted for approximately
78% of the Company&apos;s total gallon sales.<br />Also according to the 2007 Annual Report, Coca-Cola
had gallon sales distributed as follows:<br />37% in the United States<br />43% in Mexico, Brazil, Japan
and the People&apos;s Republic of China<br />20% spread throughout the rest of the world<br />In 2010 it
was announced that Coca-Cola had become the first brand to top £1 billion in annual UK grocery sales.<br
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Market Demographics:
In Pakistan Coke’s share is only 36%.<br />
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POPULATION:176,242,949 (July, 2009 estimated)
CHILDREN:37.2% (65,607,612)
ADULTS:62.8% (110,680,572)
CHILDREN EQUITY:60% (14,643,619)
ADULT EQUITY:40% (27,802,960)
TOTAL TARGET MARKET:42,446,579
Coke targets both genders in Pakistan.<br />
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Psychographics Segmentation & Market Trends:
Coke segments different income levels by packaging. Like for people with a low level of income, it has small
returnable glass bottle, for the mediocre class it has non returnable bottle (NRT) and for people with a high
level of income it has Coke tin.<br />Sometimes, for the promotion strategy of coke, the Coke Company
introduces prizes on the top cover. So they segment people by benefit sought, i.e. by giving them prizes.<br
/>Coke will always show activities, where people get together to enjoy moments of togetherness with our
brand. Research analysis indicates that youngsters love to get together, and it is when they are enjoying
themselves, that will consume coke. For Pakistani youth, socializing with friends and family is ‘core’ behavior
in their lives. Coke’s brand personality is all about togetherness.<br />At times, Coca Cola Intl seeks to
promote itself through sponsoring events. Since many years, Basanat festival has somewhat become “Coke
Festival”. <br />
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Market Needs:
In coke marketing, main idea is to serve it cold, so we can say that, they focus more on hot areas of the
world, i.e. middle east etc and there sale increase in summer.<br />The market needs vary with time and
Coke Intl. introduces its products over time e.g. Coke Cherry etc.<br />
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Market Behavior:
The behavior of Pakistani market has always been orientated on “WHATS COLD GETS SOLD”. People
normally focus on buying anything that is cold either Pepsi or Coke. The market behavior in Pakistan has not
changed a lot as people are not entirely health conscious but over a few years due to increasing awareness
of obesity, people have adopted an alienated behavior to soft drinks, which is why Coca Cola Intl. has
provided them with the perfect solution i.e. provide a product exactly when it is needed. Yes, we are talking
about Diet Coke; introduced in 2001 to meet the growing market needs.<br />
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Market Share Growth Rate:
Worldwide on global level Coca-Cola is the most popular brand and market leader and carry 60% of market
share.<br />In Pakistan due to above reasons Coca –cola is the market follower but still in a very strong and
stable position holding 36% of the local market share with a growing and increasing market share every
year.<br />GROWTH RATE IN MARKET SHARE GEOGRAPHICALLY<br />Unit Case Volume2008 vs.
2009 Growth Rate2008 vs. 2009Growth5-YearAnnual GrowthNet
OperatingRevenuesOperatingIncomeAfrica10%6%16%6%Eurasia16%13%24%38%European
Union3%2%14%16%Latin America9%6%24%22%North America(1%)1%11%1%Pacific7%4%7%3%Bottling
Investments64%N/A53%750%Worldwide6%4%20%15%<br />
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Market Growth:
Coca Cola Company can also identify its expansion through the ANSOFF approach.
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Coca Cola in Pakistan is doing market penetration through the selling its products to
the business buyer, who are huge multinational organizations like McDonalds, Subway, Dunkin
Donuts & many more & they are also keeping the local market in focus. Fri Chicks, AFC etc are
examples of the buyers in the local market. They are selling the Coca Cola as the only beverage in
their restaurants.
Market Development is exploring new markets for the products you are already selling.
Many flavors of coca cola are not being sold in Pakistan. Coca cola can develop a new market if they
introduce those flavors in Pakistan.
SWOT Analysis:
StrengthsWeaknessesInternal-Popularity-well known-branding obvious and easily recognized-A lot of
finance-customer loyalty-International Trade-Word of mouth -lack of popularity of many Coca Cola’s brands -
Most unknown and rarely seen -result of low profile or non-existent advertising -health issues
ThreatsOpportunitiesExternal-changing health-consciousness attitude -legal issues -Health ministerscompetition (Pepsi)-many successful brands to pursue-advertise its less popular products-buy out
competition. -More Brand recognition <br />SWOT analysis is a technique much used in much general
management as well as marketing scenarios. SWOT consists of examining the current activities of the
organization- its Strengths and Weakness- and then using this and external research data to set out the
Opportunities and Threats that exist.<br />
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Strengths:
Coca-Cola has been holding a large part of world culture for a very long time. Coca cola has focused on
brand image and brand loyalty along with providing supreme taste and quality. The Coca-Cola image is
displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of
Coca-Cola&apos;s greatest strengths. <br />" Enjoyed more than 685 million times a day around the world
Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment" (Allen, 1995). <br
/>Additionally, Coca-Cola&apos;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. <br /> In Pakistan, people 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.<br />Consumers basically drink what they get.<br />They believe on “WHATS COLD
GETS SOLD”<br />Consumer’s availability in brands is basically works like:<br />
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Push availability.
Pull consumer’s demand.
For this reason Coca-Cola Intl has provided their coolers and freezers in the market. They have maximum
number of coolers and freezers in the market. They provide this infrastructure free of cost just to provide
child coke to their customer, which they want to be purchase.<br />
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Weaknesses:
Coca-Cola has had some " declines in unit case volumes in the South East Asia due to reduced consumer
purchasing power”.<br />Coca-Cola contains caffeine and caramel which can adverse effects on the teeth (if
prolonged) which is an issue for health care. It also has got sugar by which continuous drinking of CocaCola 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.<br />Another weakness which may be
considered regionally is its sugar content. Pepsi Co. makes its sales only because Pepsi is so far, having a
larger market share only because it is more sugary and Asian people focus on sugary drinks.<br />
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Opportunities:
Brand recognition is an important factor in affecting Coke&apos;s competitive position. Coca-Cola&apos;s
brand name is known well throughout 94% of the world today. The main concern of Coca Cola Marketing
Strategies has been just to improvise its system and make it even more recognizable. The bottling system of
Coca Cola allows the company to take advantage of its growth opportunities. The coke team has been
working strenuously in Pakistan gaining supporters via Mass marketing and Promotional tools.<br />
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Threats:
The main threat is Price. A small increase in price, let’s say just 1 rupee will have a drastic effect on sales.
Only because people will go for the next available substitute i.e. Pepsi so price change is a major factor in
affecting Sales of coca cola and in marginal profits. Coca Cola can face major losses if it goes for a sudden
increase or decrease in price.<br />Contradiction: Some analysts assume that new competitors can also
have an effect on Coke Sales. But actually, new comers have some what a very less contribution because
Soft Drink industry is in itself a very vast and strong industry. New competitors can never make their way up
to Coke’s level in a even 10 years to come.<br />A possible threat may be the increasing health awareness.
People have recently become more conscious about health issues. 60% of the world’s population does not
drink carbonated drinks (due to poverty and /or health issues).<br />Another threat is the increasing rivalry
between Pepsi and Coke. This has somewhat changed customer perceived value and now both competitors
have to respond to an ever increasing demand and attributes of consumers.<br />
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Competition
The major competition faced by Coca Cola International is Pepsi Co. PepsiCo is a world leader in
convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The
company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the
beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo
Beverages International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat
cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories.<br
/>2419350328930<br />Major Pepsi Co. products include:<br />
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Pepsi
Teem
Mirinda
Pepsi Max
Pepsi Lemon
Pepsi Blue
Mountain Dew
7up
Product Offering
Regulars:<br />
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Coke Classic
Vanilla Coke
Cherry Coke
Caffeine free Coke
Fanta
Sprite
Sprite Ice
Sprite Duo
Coca Cola Black
Limca
Caffeine free Diet Coke
Diet Cherry Coke
Diet Coke with Lemon
Diet Vanilla Coke
Sports Drinks:<br />
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PowerAde
Nestea
Aquarius
Vitamin Energy
Juices/Water:<br />
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Minute Maid
Maaza
Kinley
Energy Drinks:<br />
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Full Throttle
Barq’s
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Tab
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Keys to Success
Coca Cola marketing team focuses not only on the results as well as the tasks assigned.<br />
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They firmly believe if you want to establish a clear image in the minds of consumers,
you first need a clear image in your own mind.
Since the major competitor is Pepsi Co. so Coca Cola Intl has focused on neutralizing
the competition.
Kill the category: If Pepsi Co. launched Crystal Pepsi then Coca Cola Intl launched Diet
Coke.
The Coca Cola marketing team maintained their focus strongly on the product itself.
When they changed bottle shape, many people started buying bottles instead of the drink itself
The Coca Cola team learnt from everything. Even if a customer said “no”, they focused
on “why” did he say no and then found out ways on “how” to solve that issue.
Formula for positioning success :
Define
Over deliver
Claim
Succeed
They specified the criteria for each product offered because if you don’t specify the
criteria for choosing, consumers will develop their own, which is dangerous.
Critical Issues
A common criticism of Coke based on its allegedly toxic acidity levels has been found to be baseless by
researchers; lawsuits based on these notions have been dismissed by several American courts for this
reason. Although numerous court cases have been filed against The Coca-Cola Company since the 1920s,
alleging that the acidity of the drink is dangerous, no evidence corroborating this claim has been found.
Under normal conditions, scientific evidence indicates Coca-Cola&apos;s acidity causes no immediate
harm.<br />Coca-Cola has been criticized for alleged adverse health effects, its aggressive marketing to
children exploitative labor practices, high levels of pesticides in its products, building plants in Nazi
Germany which employed slave labor, environmental destruction, monopolistic business practices, and
hiring paramilitary units to murder trade union leaders. In October 2009, in an effort to improve their image,
Coca-Cola partnered with the American Academy of Family Physicians, providing a $500,000 grant to help
promote healthy-lifestyle education; the partnership spawned sharp criticism of both Coca-Cola and the
AAFP by physicians and nutritionists.<br />
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Marketing Strategy
Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages
that can 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. Whether
you&apos;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&apos;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&apos;s a special thing to have billions of friends around the
world, and we never forget it.<br />-1228301654024<br />
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Mission
“Our mission statement is to maximize shareowner value over time”<br />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:<br />Consumer demand drives everything we do.<br />Brand Coca Cola
is the core of our business <br />
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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.
We will think and act locally.
We will lead as a model corporate citizen.
Everything we do is inspired by our enduring Mission: <br />
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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.
Marketing Objectives
The ultimate objectives of our business strategy are:<br />
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To increase volume
Expand our share of worldwide nonalcoholic ready to drink beverages sale
Maximize our long-term cash flows
Create economic value added by improving economic profit.
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. <br
/>Aims:<br />
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People: Being a great place to work where people are inspired to be the best they can
be.
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Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and
satisfy people&apos;s desires and needs.
Partners: Nurturing a winning network of customers and suppliers, together we create
mutual, enduring value.
Planet: Being a responsible citizen that makes a difference by helping build and
support sustainable communities.
Profit: Maximizing long-term return to shareowners while being mindful of our overall
responsibilities.
Financial Objectives
All Coca Cola Intl. plants setup their own goal to achieve the objective.<br />The company goal is:<br />“To
increase sales volume and gain market leadership in Lahore.”<br />The company aims to achieve sales
level of $35,000,000,00 by the end of year 2010. The sales level for year 2009 was $31,944,000,00.<br />
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Target Markets
The target market for Coca cola is very wide as it satisfies the needs for many different consumers, ranging
from the healthy diet consciousness through Diet Coke to the average human through its best selling drink
regular Coke. Most Coke products satisfy all age groups as it is proven that most people of different age
groups consume the Coca Cola product. This market is relatively large and is open to both genders, thereby
allowing greater product diversification.<br />Coke’s commercials basically based on young generations, so,
the young generation is the target market of Coke because they want to represent Coke with the youth and
energy but they also consider about the old people they take then as a co-target market.<br />
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Strategy
The strategy for the future of the company is very straightforward. The marketing strategy for the year 2010
is as follows:<br />
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Accelerate carbonated soft-drink growth, led by Coca-Cola.
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Selectively broaden the family of beverage brands to drive profitable growth.
Grow system profitability and capability together with our bottling partners.
Serve customers with creativity and consistency to generate growth across all
channels.
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Direct investments to highest potential areas across markets.
Drive efficiency and cost-effectiveness everywhere.
Positioning
Product Range:<br />The total range of Coca Cola Intl. in Pakistan includes:<br />
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Coke.
Sprite.
Fanta.
Diet Coke.
Bottle Sizes:<br />The company offers their products in different bottle sizes which include:<br />
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SSRB Standard Size Returnable Bottle
LRB Litter Returnable Bottle
NRBNo Return Bottle or Disposable Bottle
PET 1.5 Liter Plastic Bottle
CANS Tin Pack 330 ml
Packing:<br />Coca cola products are available in different packaging: <br />
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24 Regular Bottle Shell.
6 Bottle Pack for 1.5 PETs.
12 Bottles in a pack for Disposable Bottle.
24 Cans in one crate.
Marketing Mix
The marketing mix is probably the most crucial stage of the marketing planning process. The marketing mix
refers to the combination of the four factors (price, promotion, product, and place) that make up the core of a
business’s marketing strategy.<br />
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Product:
Businesses must think about products on three different levels, which are the core product, the actual
product and the augmented product. The core product is what the consumer is actually buying and the
benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The actual product is the parts
and features, which deliver the core product. Consumers will buy the coke product because of the high
standards and high quality of the Coca Cola products. The augmented product is the extra consumer
benefits and services provided to customers. Since soft drinks are a consumable good, the augmented level
is very limited. But Coca Cola do offer a help line and complaint phone service for customers who are not
satisfied with the product or wish to give feedback on the products.<br />
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Promotion:
Over the time Coca Cola has spent millions of dollars developing and promoting their brand name, resulting
in worldwide recognition. &apos;Coca-Cola&apos; is the most recognized trademark, recognized by 94% of
the world&apos;s population and is the most widely recognized word after " OK" . Coca Cola’s red and white
colors and special writing are all examples of world-wide trademarks.<br />There are a number of branding
strategies:<br />
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Generic brand strategy
Individual brand strategy
Family brand strategy
Manufacturer’s brand strategy
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Private brand strategy
Hybrid brand strategy
Coca Cola utilizes the Individual brand strategy as Coca Cola’s major products are given their own brand
names e.g. Fanta, Sprite, Coca Cola etc although they may be presented as different lines they operate
under the name of Coca Cola. <br />
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Place:
The Coca Cola Company has always focused wide scale distribution. This is the reason, 94% of the world’s
population knows about Coke. “Coca Cola” is the most recognized word after OK.<br />Coca Cola sets its
own distributions directly to stores. Stores include a wide variety of Supermarket, Marts, Convenience
Stores, Retail Stores and Departmental Stores. The channel distribution of Coca Cola Intl is extremely
large.<br />Over time, they have produced many products and thus have increased number of warehouses
for specific products.<br />Coca Cola Intl has also improved services via setting up a national service
network.<br />960745298441<br />
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Price
Since Coca Cola Intl faces a major threat from its competitor Pepsi Co., so naturally the Pricing is done
keeping in view the increasing rivalry with Pepsi. Pricing is basically standard for all over the world. Price
changes occur seldom after a longer period of time say, a year etc. Mostly prices are devoid of
governmental and/or political laws and regulations but in Pakistan, due to an ever increasing rate of Inflation,
prices have increased in a short span of time.<br />9334503517900JO CHAHO HO JAYE, COCA COLA
ENJOY!!!<br />
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Financial Analysis
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 2008 and 2009
along with the percentage change is as follows. <br />Year Ended December 31,<br />(In millions except
per share data, ratios and growth rates)<br />20092008Δ%Net operating
revenues31,944288571%Operating income8,4467,25245%Net income5,8746,02782%Net income per share
(basic)1.6010.88282%Net income per share (diluted)1.6010.88282%Net cash provided by operating
activities4,1103,58515%Business reinvestment(963)(779)24%Dividends paid(1,791)(1,685)6%Share
repurchase activity(277)(133)108%Free cash flow3,1472,80612%Return on capital26.6%16.2%-Return on
common equity38.5%23.1%-Unit case sales (in billions) International operations12.511.95% North America
operations5.35.22% Worldwide17.817.14%<br />2008 basic and diluted net income per share included a
non-cash gain of $.02 per share after taxes, which was recognized on the issuance of stock by Coca-Cola
Enterprises Inc., one of the equity investors of this company.<br />2009 basic and diluted net income per
share includes the following charges: <br />
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$.24 per share after income taxes related to an organizational Realignment.
$.19 per share after income taxes related to the Company&apos;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.
Break Even
Break Even is calculated as follows:<br />Break Even = Total Fixed Cost(1-Total Variable CostsTotal
Sales)<br />For Coca Cola Intl. the break even calculated for the Year 2009 was:<br />Break Even =
$11,088,000,00<br />Source: http://www.thecoca-colacompany.com/ourcompany/company_reports.html<br
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Sales Forecast
Sales and Income Data in Millions20052006200720082009Net
Sales$21,742$23,104$24,088$28,857$31,944Net Income (Profits)$4,847$4,872$5,080$5,981$5,807Units
sold in Billions19.820.621.422.723.7<br />
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21- Implementation & Control
Implementation:
Currently, Coca Cola Intl. issuing the following techniques to increase shareholders
wealth, maximize customer satisfaction and satisfy the market:
Value Positioning
Value Pricing
Promotional Pricing
Differentiation
Image
Product
Channel Personnel
Market Strategy
Niche Marketing
Mass Marketing
Control:<br />Coca Cola Intl. has controlled sales via:<br />
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Geographic Market Organization
Opening plant in various countries (in Pakistan they have 10 plants) so as to reduce
taxes.
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They have invested $5.6 million in their R&D facility to maintain Product Quality
Control.
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Their primary concern right now is penetrating into the Pakistani market via strong
attacking techniques whereby maintaining defense strategy against Pepsi Co.
The overall strategic control is implemented in all plants and factories throughout the
200 countries which Coca Cola proudly serves.
Recommendations
After completing our project we have come up with following recommendations for the Coca Cola Company,
which are following:<br />
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Currently in Pakistan there are only two flavor of Coke available, company can extend
their portfolio by introducing new flavors.
According to the survey conducted by an international firm Pakistani people like less
sweet cola drink. So the Coca-Cola Company should think about bringing innovations in their products
for example new diet flavors or maybe more juices so as to fulfill the need of local market.
Marketing team should try to increase the availability of Coke in rural areas.
Coca Cola Company should think about producing Coke Can locally. Because currently
coke Cans are only smuggled from abroad and sold at high prices. The Coca Cola Company can
capitalize on this factor.
Appendixes
www.cocacola.com
www.thecocacolacompany.com
www.wikipedia.com
Principles of Marketing by Philip Kotler
Strategic Marketing by David W. Cravens
Local Newspapers: Dawn, The Nation and The News
International Herald Tribune Newspaper
The Nikkei Weekly magazine, Japan (Winter, 2009)