Download Coca Cola Pvt. Limited

Coca Cola Pvt. Limited
Project Report:
Coca Cola Pvt. Limited
Group Members
Umar Javed
Umar Sajjad
Khuram Shahzad
Shakeel Anjum
Kashif Ali
Wahab Ahmad
Munir Hussain
081158
081188
083268
083277
063140
092806
063138
Institute Of Management Sciences, Lahore
Nasir Hussain
Submitted to
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Coca Cola Pvt. Limited
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MISSION STATEMENT
Mission statement is a statement of organization’s 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:
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Customer is king; Customer demand drives everything we do.
Brand Coca Cola is the core of our business.
We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages
they want to drink through out the day.
We will be the best marketers in the world.
The ultimate objective of our business strategy is to increase volume, expand our share of
worldwide nonalcoholic beverages sale and to maximize our long-term cash flows. We keenly
focus on enhancing value for our customers and helping them grow their beverage business. We
strive to understand each customer’s business and needs, whether that customer is a
sophisticated retailer in a developed market or a kiosk owner in an emerging market.
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. The basic proposition of our business is
simple and solid that is we want to bring refreshment, value, joy and fun to all our consumers. For
that we strongly believe to protect our brands, particularly Coke.
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ACKNOWLEDGEMENT
A token of special thanks to the following people who had been very friendly, co-operated with us
throughout our visit to CCBPL Lahore plant and made it possible for us to learn and gather all the
information needed for our project report in as much detail as we could. These are the people who in
spite of their busy scheduling took time out to explain to us the procedures and mechanics of work in
the organization. Our project report would not have been possible without their friendly and helpful
attitude.
Mr. Amir Faisal Hashmi
(Human Resources & Industrial Relation Manager)
Mobile # 0300-8456707
E-mail id: [email protected]
Mr. Eiraj Saleh Daud
(Marketing and Sales Manager)
0300-8462122
E-mail id: [email protected]
Factory Address
23km –Riawand Road
Lahore. .
Pakistan.
Factory Phone: 5320010-4
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Table Of Contents
Page #
Mission Statement
Acknowledgement
INTRODCUTION
History of Coca-Cola
Coke History in Pakistan
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Target Marketing
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Marketing Mix
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PRODUCT
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Product Range
Packing
Product Strategy
Level Of Coke
Branding
Product Line Decisions
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Price
Price
Price strategy
Trade Promotion
Different Prices
Place
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Availability
Distribution Channels
Direct Selling
In-Direct Selling
Market Segmentation
Coke Segmentation Strategy
Geographic Segmentation
Demographic Segmentation
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Behavior Segmentation
Promotion
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Promotion Strategies
Publicity
Price Scheme
Promotion campaign
Conclusions and Recommendations
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Introduction
History of Coca-Cola:
Coca-Cola Enterprises was established in 1986 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.
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. 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.
The Coca-Cola bottling system continued to operate as independent, local businesses
until the early 1980s when bottling franchises began to consolidate. In 1986, The
Coca-Cola Company merged some of its company -owned operations with two large
ownership groups that were for sale, the John T. Lupton franchises and BCI Holding
Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company
offered its stock to the public on November 21, 1986, at adjusted prices of $5.50 a
share. On an annual basis, total unit case sales were 880,000 in 1986.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 at the year-end. Presently The Coca-Cola Company is the largest soft drink
company in the world. Every year 800,000,000 servings of just "Coke" are sold in the U.S alone.
Coke History in Pakistan
“51 Years of dedicated service”
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The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite are the brands
with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in Pakistan operates through
eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL).
The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan,
Multan and Lahore. The remaining two plants, independently owned, are in Rawalpindi and
Peshawar. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola
System in Pakistan employs 1,800 people working constantly for the company. During the last two
years, The Coca-Cola Company in Pakistan has invested over $130 million (U.S) and coke has
successfully provided 51 years of dedicated service to its customers in Pakistan. Since the beginning of
Coke Company the firm has been continuously changing its slogans and that’s a very creative idea to
get the attention
of the customers. Here we would like to include some of the popular slogans of coke since the coke
journey started.
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1886 Drink Coca-Cola
1908 Get the genuine
1923 Enjoy thirst
1934 When it's hard to get started, start with a Coca-Cola
1942 The only thing like Coca-Cola is Coca-Cola itself
1956 The friendliest drink on earth
1963 Things go better with Coke
1993 Always. Coca-Cola
2001 Life is Good
2003 Jo Chaho Ho Jaye Coca Cola Enjoy]
2005 geo coke zindagi
2009 very Brrrrrrrrrrrrrrrrrrrrrrrrr hai coke zindagi
Target Marketing:
This is the process of evaluating each market segment’s attractiveness and selecting one or more
segments to enter.
After evaluating different segments, the company must now decide which and how many segments it
will target, because buyers have unique needs and wants, a seller could potentially view each buyer as
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a separate target market. Ideally, then, a seller might design a separate marketing program for each
buyer. There are three types of market segments.
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Undifferentiated marketing. (Mass Marketing)
Differentiated marketing.
(Segmented Marketing)
Marketing Mix of Coca-Cola
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Product
Price
Place
Promotion
Product
Price
Place
Promotion
Functionality
List price
Channel members
Advertising
Appearance
Discounts
Channel motivation Personal selling
Quality
Allowances
Market coverage
Public relations
Packaging
Financing
Locations
Message
Brand
Leasing options Logistics
Warranty
Service levels
Media
Budget
Service/Support
Product
Coca-Cola the world’s most popular beverages .The popularity of Coke is to such an extent that
“The most known and spoken word in world after OK is COKE
Product Range
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The total range of Coca Cola Company in Pakistan includes:
Coke,
Sprite
Fanta
Diet coke
And company offers their products in different bottle sizes these include:
SSRB
LRB
NRB
PET 1.5
CANS
(standers size returnable bottle)
(litter returnable bottle)
(no return bottle) or disposable bottle
(1.5 litter plastic bottle)
(tin pack 330 ml)
Packing
Coca cola products are available in different packing
24 regular bottle shells
6 bottle pack for 1.5 pets
12 bottles in a pack for disposable bottle
24 cans in one packet.
Product strategy
Product: Anything that can be offered to a market for attention, acquisition, use or consumption that
might satisfy a want or need.
Levels of coke as a product
Core product:
Core benefit is that it fulfills the thirst.
Actual product:
Design: Pet bottles, returnable glass bottles, economy packs.
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Quality: Quality differs with respect to country for example. Coca-Cola Can quality that is available
in Middle East is certainly different as compared to Coke Can available in Pakistan.
Product Classifications:
Coke is categorized as a convenience product, because the purchasing rate is very high and this is the
product that is bought very frequently.
Individual product decisions
Branding:
a) Brand Equity:
As far as coke is concerned brand equity for the customers is very high. People are highly
brand loyal.
b) Brand Strategy:
The following is the brand strategy of Coke
Brand
Existing
New
Existing
Line extension
Brand extension
New
Multi-Branding
New brands
PRODUCT
Line Extension:
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Line extension occurs when a company introduces additional items in a given product category under
the same brand name. For example if Coke introduces new flavors and package size, it will be
considered as line extension.
Brand Extension:
Brand extension means using a successful brand name lets say Coca-Cola and then launching new
product for example cherry coke. This was an example of brand extension.
Multi-Branding:
It means introducing additional brands in the same category. For example Coca-Cola not only
introduced coke as a brand but also sprite and Fanta.
Diversification:
It means introducing new product with the new brand name. It means diversification but this is
something Coca-Cola has not adopted for as yet.
Product Line Decisions:
Product Line Length:
It means the number of products that company is offering. For example Coke, Diet Coke, Fanta ,
Sprite.
Product Line Filling:
Product line filling means that earlier when Coca-Cola started it had only one flavor of coke available
and that is classic coke but with the passage of time company filled the product line by adding diet
coke, diet lemon etc
Price
Price
Rs.10/- for 250-ml bottle,
Rs.25/- for tin.
Rs.30/- for 1 liter bottle.
Rs.40/- for 1.5 liter bottle.
Very economical justifies the ultimate taste and joy provided by the beverage of and on price cuts are
provided to customers.
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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.
Different Price in Different Seasons
Some times Coca Cola Company changes 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.
Place
Availability
Available in all main as well as posh and backward areas in big cities, Available to some extent in
posh areas of small cities
Available in all restaurants and hotels, colleges, universities, hospitals, bus stops etc.
DISTRIBUTION CHANNELS
Coca Cola Company makes two types of selling
Direct selling
Indirect selling
Direct Selling
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In direct selling they supply their products in shops by using their own transports. They have
almost 250 vehicles to supply their bottles. In this type of selling company have more profit
margin.
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.
FACILITATING THE PRODUCT BY INFRASTRUCTURE
For providing their product in good manner company has provided infrastructure these includes:
Vizi cooler
Freezers
Display racks
Free empty bottles and shells for bottles
Market segmentation:
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might
require separate products or marketing mixes.
In evaluating different market segments, a firm must look at three factors:
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Segment size
Segment growth
Segment structural attractiveness and company objectives and resources.
There is no single way to segment a market. The market has to try different segmentation
variables, alone and in combination, to find the best way to view the market structure.
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Concentrated marketing.
(Segmented Marketing, small segment)
Coke segmentation strategy:
Coca cola servers its products using mass marketing technique, which obviously falls in
undifferentiated marketing, and undifferentiated marketing means no segmentation, but there are
minor factors on which we can say that the coke segments its products and then targets the customers
somehow. These factors are as follows.
Geographic Segmentation:
Internationally:
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Coke segments its products country wise and region wise, here the most important thing is the taste
and the quality, it varies according to the taste and the income level of the people in that country, i.e.
Third world counties are given low quality taste.
Climatic:
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.
Locally:
In Pakistan the coke segments more in urban and suburban areas as compare to rural.
Demographic Segmentation:
Age:
Internationally coke has segments the small children introducing tastes like vanilla, lime and cherry,
they focus children from 4-12. Coke specifically target more young people than older.
Family type:
Coke introduces its economy pack, and that’s how they focus family and groups.
“A question to ‘Amer pasha’ Country Manager”
Question:
Pepsi is targeting exactly the same market, and music is also a part of their brand image, so where does
the differentiation lie in your approach?
Answer:
Pepsi’s brand personality is different, ours is about togetherness, about ‘us’. Coke will always show
activities, where people get together to enjoy moments of togetherness with our brand. Our research
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 also about togetherness.
Income:
Coke segments different income levels by packaging. Like for small income people it has small
returnable glass bottle, for middle people it has non returnable bottle and for higher income people it
has coke tin.
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Psychographics Segmentation:
All psychographics variables the social class, lifestyle, occupation, level of education and personality,
coke segments everyone, but again its there packaging which is different for different consumers.
Behavioral Segmentation:
Occasions:
Thanks to the Coca-Cola Company the local festival of Basant has become and international event and
an identity of the culture of Pakistan. Over the year the annual spring festival of Basant has taken on
mega proportions. Previously restricted largely to the walled city, the festivities now flood every nook
and corner of Lahore. The credit for making the celebrations available to almost everyone largely goes
to The Coca-Cola Company. In 2003, Coke was once again nominated as the official sponsor for the
Basant festival bye the parks& horticulture authority, Lahore for the fourth year running. In these
four years, the company has played a pioneering role in making the Basant festival
major social and culture event in Pakistan. (“The News” on 50th anniversary of the Coca-Cola in
Pakistan.)
Benefits Sought:
Sometimes, for the promotion strategy of coke, they introduce prizes in the top cover. So they segment
people by benefit sought, i.e. by giving them prizes.
Promotion:
To promote the Coca-Cola, Fanta, and Sprite 3G the company uses the following tactics or ways
Advertisements with catchy slogans
 Coca-Cola enjoys
 Always Coca-Cola.
 Eat Cricket, sleep cricket, and drink Coca-Cola.
Sponsorship:
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Sports e.g. cricket matches and hockey.
Events e.g. basant festivals.
Concerts.
Artist album e.g.Arar-ul-Haq.
Coca Cola Pvt. Limited
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.
Eye Catching Position
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.
PUBLICITY
Coca Cola Company use different mediums
Print media
Pos material
TV commercial
Billboards and holdings
Print Media
They often use print media for advertisement. They have a separate department for print media.
Pos Material
Pos material mean point of sale material this includes: posters and stickers display in the stores
and in different areas.
TV Commercials
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As everybody know that TV is a most common entertaining medium so tv commercials is one of the
most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on
different channels
Prize schemes:
 Coca-Cola glasses.
 Bicycles.
 TV (16’, 21’.28’)
Prize cuts from time to time.
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Ramadan offer.
Eid offer.
Buy one get one free.
Anniversary offer.
Independence Day offered.
Billboard –electronic sign board
 In major public areas, liberty bank square.
 At centre point.etc.
Promotional campaigns of coke:
 BASANT:
The Coca-Cola Company sponsors the basant festivals in Lahore, a festival that marks the beginning
of spring and attracts visitors from all over the world. Part of the festivals is” Coca-Cola kite flying
championship”.
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 Concerts and charity programs:
The Coca-Cola Company sponsors Pakistani leading pop group and organizes concerts and charity
shows throughout the country for teen ages and underprivileged children.
 Cricket players for promotion:
The company has signed a sponsorship agreement with eight of Pakistan’s national cricket players for
promotional and advertising use.
Conclusion & Recommendations:
CONCLUSION
After thorough research, we come to the conclusion that the marketing strategy of Coca Cola is
working for them and the product is gaining popularity among youth day by day
RECOMMENDATIONS:
Bottle shape
Repositioning of flavored Fanta
Should be flexible in policies
Prize schemes
Prize schemes
Instead of large expensive gifts, prize schemes should constitute of small, inexpensive gifts e.g. CocaCola penal case. Coca-Cola pen, key chains, T-shirts, Cups, bottles in each cerate could contain prizes.
This would be a much effective scheme to increase sales.
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Should be flexible in policies
CCI should allow some degree of freedom in its policies and work procedures and policies according to
the environment and conditions of Pakistan without having to ask for permission every time.
BOTTLE SHAPE
They must use same curved bottle shape for all brands