coke final project 12

8/2/2019 Coke Final Project 12

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ACKNOWLEDGMENT

We are thankful to ALLAH ALMIGHTY, by HIS assistance , we have

accomplished our task. We would like to thank all the people who directlyor indirectly helped us to achieve this target. We would like to take to

thank Mrs.Sajida Nisar, our teacher for the course of Marketing at

the Institute of Business Administration, University of the

Punjab,for her valuable support and encouragement which she has

offered. Her words of wisdom will always be remembered, and we are

convinced that the knowledge of marketing that she has imparted would

go a long way in making good marketers and helping us all through our

professional careers.This report cannot be solely attributed to our efforts but it is indeed

the joint effort of many friends and well-wishers. There were times in

the course of preparing this report when things were tough and the

future seemed dark. It could not have been possible to write it, without

the immense help of a few individuals to whom we would like to offer our

gratitude.

Thanks a lot!


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INTRODUCTION

Coca-Cola is a cola (a type of carbonatedsoft drink) sold in stores,

restaurants and vending machines in more than 200 countries. It is

produced by The Coca-Cola Company and is often referred to simply as

Coke. Originally intended as a patent medicine when it was invented inthe late 19th century by John Pemberton, Coca-Cola was bought out by

businessman Asa Griggs Candler, whose marketing tactics led Coke to its

dominance of the world soft drink market throughout the 20th century.
http://en.wikipedia.org/wiki/Colahttp://en.wikipedia.org/wiki/Carbonationhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Vending_machinehttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Patent_medicinehttp://en.wikipedia.org/wiki/John_Pembertonhttp://en.wikipedia.org/wiki/Asa_Griggs_Candlerhttp://en.wikipedia.org/wiki/Colahttp://en.wikipedia.org/wiki/Carbonationhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Vending_machinehttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Patent_medicinehttp://en.wikipedia.org/wiki/John_Pembertonhttp://en.wikipedia.org/wiki/Asa_Griggs_Candler


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Executive summary

Giant soft drink company Coca Cola has come under intense scrutiny by

investors due to its inability to effectively carry out its marketing

program. Consequently it is seeking the help of Polianitis Marketing

Company Pty Ltd to develop a professional marketing plan which will helpthe business achieve its objectives more effectively and efficiently, and

inevitably regain there iron fist reign on the soft drink industry.


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MISSION, VISION AND VALUE

our mission, vision and values outline who we are, what we seek to

achieve, and how we want to achieve it. They provide a clear direction

for our Company and help ensure that we are all working toward the

same goals.

OUR MISSION


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Our mission declares our purpose as a company. It serves as the

standard against which we weigh our actions and decisions. It is the

foundation of our Manifesto. To refresh the world in body, mind andspirit. To inspire moments of optimism through our brands and our

actions.To create value and make a difference everywhere we engage.

OUR VISION

Our vision guides every aspect of our business by describing what we

need to accomplish in order to continue achieving sustainable growth.

People: Being a great place to work where people are inspired to be the

best they can be.

Portfolio: Bringing to the world a portfolio of quality beverage brands

that anticipate and satisfy people'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.

HISTORY

International:

Coca-Cola laid the foundation of the beverage

industry when it was formed in May 1886 in

Atlanta. However it was not until 1895 that


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the idea of selling coke in bottles was introduced. With the passage of

time Coca-Cola gained popularity and its product began to get recognized

internationally. Thus from its mere beginning in 1886 Coca-Cola has nowbeen transformed into a strong multinational with its product being

currently recognized all over the world. Coca-Cola, in fact, has now

become one of the most famous and widely consumed brands in the

world. It has not only established its footings in the beverage industry

but is currently heading the list of the most financially sound companies

in the world.

Pakistan:

Although Coca-Cola is not a new name for the local market, Coca-Cola

Beverages Pakistan Limited (CCBPL) began its operations on 26 May 1996

in Pakistan. Coca-Cola Beverages Private LTD (CCBPL) is a joint venture

between Coca-Cola International, Fraser and Neeves Singapore and

Package Ltd. Initially it acquired National Beverages LTD Karachi and

later acquired International Beverages LTD Hyderabad .In May 1996Fraser and Neeves, a Singapore based bottler of Coke, bought off the

local bottlers in Karachi.

Market Analysis

The market analysis investigates both the internal and external

business environment. It is vital that Coca cola carefully monitor both

the internal and external aspects regarding its business as both the


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internal and external environment and their respective influences will be

decisive traits in relation to Cokes success and survival in the soft drink

industry.

Internal Business Environment

The internal business environment and its influence is that which isto some extent within the businesss control. The main attributes in the

internal environment include efficiency in the production process,

through management skills and effective communication channels. To

effectively control and monitor the internal business environment, Coke


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must conduct continual appraisals of the businesss operations and

readily act upon any factors, which cause inefficiencies in any phase of

the production and consumer process.

External Business Environment

The External business environment and its influences are usually

powerful forces that can affect a whole industry and, in fact, a wholeeconomy. Changes in the external environment will create opportunities

or threats in the market place Coca cola must be aware off. Fluctuations

in the economy, changing customer attitudes and values, and

demographic patterns heavily influence the success of Coka Colas

products on the market and the reception they receive from the

consumers.

QUICK FACTS

Established: 1886

Ranking: Own 4 of the world's top 5 nonalcoholic sparkling beverage

brands


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Associates: 90,500 worldwide

Operational Reach: 200+ countries

Consumer Servings: (per day): 1.5 billion

Beverage Variety: more than 2,800 products

OBJECTIVES

All objectives should be SMARTi.e. Specific, Measurable, Achievable,

Realistic, and Timed.

Specific - Be precise about what you are going to achieve


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Measurable - Quantify you objectives

Achievable - Are you attempting too much?

Realistic - Do you have the resource to make the objective happen

Timed - State when you will achieve the objective

COCACOLAS OBJECTIVES

Leadership: The courage to shape a better future

Passion: Committed in heart and mind

Integrity: Be real

Accountability: If it is to be, it's up to me

Collaboration: Leverage collective geniusInnovation: Seek, imagine, create, delight

Quality: What we do, we do well

INTRODUCTION TO BCG MATRIX

The BCG matrix is based on the product life cycle theory that can be

used to determine what priorities should be given to a business unit. This


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can be explaining with the help of following FOUR fictitious business

symbols.

STARS :- Stars are high growth business competing in market

where they are relatively strong compared with the competition. They

have a high point shares and are the ideal businesses.

CASH :- Cash cows are low-growth business with a relatively high

point shares. These businesses were stars but now have lost their

attractiveness.


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QUESTION MARK :- Question marks are businesses with lowpoint share but which may have a high growth rate. This suggests

that they have potential but may require huge ever, a competing force

extraordinary effort in order to grow point share.

DOGS :- The term dog refer to businesses that have low relative

share and low expected growth rate. Dogs may generate enough

points to sustain but they are rarely, if ever, a competing force.

NOW ONE BY ONE POSITION OF EVERY PRODUCT OF COCA-

COLA WILL BE KNOWN WITH THE HELP OF BCG MATRIX.

MORE OVER THIS POSITION HAS BEEN DECIDED ON THE

BASIS OF THE SURVEY WHICH HAS BEEN CONDUCTED AND

RESULT OF WHICH IS ALSO GIVEN IN CHAPTER IV.

POSITION OF COCA-COLA


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POSITION OF SPRITE


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POSITION OF FANTA


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PRODUCT DESCRIPTION

Brand Name: Coca-Cola

Coca-Cola: Coca-Cola is the most popular and biggest-selling soft drinkin history, as well as the best-known product in the world. Created in

Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered

as a fountain beverage by mixing Coca-Cola syrup with carbonated water.

Coca-Cola was introduced in 1886, patented in 1887, registered as a

trademark in 1893 and by 1895 it was being sold in every state and

territory in the United States. In 1899, The Coca-Cola Company began

franchised bottling operations in the United States. Coca-Cola might

owe its origins to the United States, but its popularity has made it trulyuniversal.


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Brand Name: Fanta

Fanta: Available in Europe since the 1940s, Fanta was introduced in the

United States in 1960. Consumers around the world, particularly teens,

fondly associate Fanta with happiness and special times with friends andfamily. This positive imagery is driven by the brand's fun, playful

personality, which goes hand in hand with its bright color, bold fruit

taste and tingly carbonation.

Beginning in 2009, the U.S. markets will see Fanta Regular Orange, Fanta

Zero Orange, Fanta Apple and Fanta Grapefruit in 100% natural flavors.

Available in the following flavors: Aloe Vera Muscat, Apple, Apple

Grape, Apple Kiwi, Apple Peach, Apple Vanilla, Apricot, Banana, Banana

Fermented Milk, Berry, Berry Blackcurrant, Berry Cherry, Berry Orange,

Birch Beer, Bitter Herbal, Bitter Orange, Bitter Water,


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Blackcurrant, Blackcurrant Blueberry Raspberry, Blackcurrant Lemon,

Blueberry, Blueberry Salacider, Bubble Gum, Cherry, Citron, CitrusBlend, Club Soda, Coconut Pineapple, Cranberry, Cranberry White Grape,

Floral Lemon, Fruit Punch, Fruit Punch Orange.


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Brand Name: Sprite

Introduced in 1961, Sprite is the world's leading lemon-lime flavored

soft drink. Sprite is sold in more than 190 countries and ranks as the No.

4 soft drink worldwide, with a strong appeal to young people. Millions of

people enjoy Sprite because of its crisp, clean taste that really quenches

your thirst. But Sprite also has an honest, straightforward attitude that

sets it apart from other soft drinks. Sprite encourages you to be true towho you are and to obey your thirst.


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Brand Name: Kinley water

Kinley water is a fresh and mineral water and market competitor of

Bisleri and Aquafina.


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Brand Name: Minute maid

In Minute maid pupply orange cold drink no gas only based on orangejuice. It is a non-aerated soft drink and market competitor of Tropicana

Twister


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Marketing and Sales Objectives

Current Scenario:

Total beverage industry = Rs. 167 billion

Cokes market share = Rs. 50 billion (35% market share) Total Non returnable glass bottle industry = Rs. 6.25 billion

Cokes beverage market share = Rs. 2.5 billion

Coke in total coke sales = Rs. 2.5 billion (5% of cokes annual sales)

Total current unit sales = 14 m @ 18 per unit

Market Share Objective:

Total beverage industry: to increase market share in total

beverage industry from 0.015% to 0.017%.

Total industry: to increase market share in beverage industry

from 40% to 48%.

Cokes Overall Sales: to increase share in cokes annual salescontribution from 5% to 6%.

Sales Objectives:


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Rupees Value: To increase annual sales of NRG bottle from Rs. 2.5

billion to Rs. 3 billion.

Unit Sales Objectives: To increase annual unit sales of NRG Coke

from 14m units to 17m units @ Rs. 18 per unit.


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Product

INGREDIENTS OF COCACOLA

Carbonated Water

Sugar

Colour (Caramel E150d)

Phosphoric Acid

Natural Flavourings (it's a coke secret)

Flavouring (Caffeine)

The product which is non returnable glass bottle containing the 250 mille

litters of coke liquid. It is a superior quality product.

Objective

As non returnable glass bottle is already a superior quality product so

we will be trying to maintain the over all quality.

Strategy

To continue with the same bottles with following recommended changes, Packaging: adding to the current packaging sticker a new and on going tag

line ofJUSHAN MANA LEYor BRRRRRRRR


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Bottle cap: change the routine bottle caps and come up with attractive

and consumer friendly caps as per consumers convenience.


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Price

Objective

The research we have conducted for this project reveals that the price

is not an issue for our target market, so we do not go for any changes

but we shall definitely try to deliver a superior customer value to our

customers at the existing price.

Strategy

We shall go for the current existing price, without increasing or

decreasing it i.e. Rs.18. The product shall be designed in such an

effective way that it delivers the consumers a superior value than

competitors products.

Coca Cola Pricing Strategy

Like any company who has successfully endured a century of existence,

Coca Cola has had to remain tremendously fluent with their pricing

strategy. They have had the privilege of a worthy competitor constantly

driving them to be smarter, faster, and better.

A quote from Pepsi Co's CEO"The more successful they are, the sharper we have to be. If the

Coca Cola company didn't exist, we'd pray for someone to invent

them."taken from Roger Enrico's "The Other Guy Blinked and Other

Dispatches from the Cola Wars" states it simply. The relationship
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between Coca Cola & Pepsi is a healty one that each corporation has

learned to appreciate.

Throughout the years Coca Cola has made many pricing decisions but onemight 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 200mLcontainer.

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. As referenced in

the HBR article, Cola Wars Continue: Coke & Pepsi in the Twenty-

First Century, both bottlers utilized a low price strategy in the early1990s. After annihilating the low price store brands, Coke chose to

reposition itself as a "Premium" brand and then raise prices.
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Place

ObjectiveWe want to make our product available at different key points like;

Schools, universities, airports, railway stations, cinema halls,

entertainment parks, high ways, small and large stores, and suburbs of

the cities.

Strategy

We will redesign the distribution network and make it more efficient sothat it could reach to those areas where there is demand for this

product. We will be using push strategy for this product so that it could

penetrate the market and cater the potential consumers by giving more

incentives and margins to retailers.

Distribution

The place P of the marketing mix refers to distribution of the product-the ways of getting the product to the market.The distribution of

products starts with the producer and ends with the consumer.

One key element of the Place/Distribution aspect is the respective

distribution channels that Coca Cola has elected to transport and sell its

product.


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Promotion

ObjectivesOur objective regarding promotion for none returnable glass bottle is to

become firstly into the awareness set of our target and potential

customers, than definitely into the consideration set and last but not

the least into the usage set of our target market.

Strategy

As we all know that cokes latest BRRRRRR promotional campaign is

currently getting a large deal of consumers interest and has created

hype amongst the consumers. The TV commercials and the print ads are

all showing the bottles in them. So it clearly means that is into the

awareness set of the target market as well as that of the potential

market which are the buyers of soft drinks, non carbonated drinks,

juices and energy drinks. Now the question is about the considerationset strategy and the usage set strategy.


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Consideration set strategy:

In order to make the product prominent vertical eye catching bottle

holders (hangers) shall be placed up front on the displays or the shelves

of the outlets. Same bottles shall also be available in the coke sponsored

deep freezers, in order to provide the consumer the promised customervalue as very chill hy coke Zindagi.

Usage set strategy:

Now the retailers role will come into seen by using the PRODUCT PUSH

STRATEGY in order to confirm the product trial and make the sale of

the product by pushing it to the consumer. Also the consumers interest

in new Jushan Mana Lypackaging, Chilled Coke and attractive bottle

hangers supported by comparative price and strong brand image of COKE

and also the successful BRRRRRR. Marketing campaign will confirm the

repetitive purchase of the product.


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METHODS OF SALES PROMOTION

Various types of sales promotion methods are being used in organization

in Coca-Cola these following methods are using in sales promotion

technique. Consumer sales promotion methods. Traders, wholesalers,

retailers sales promotion methods. Sales force promotion methods.

Consumer sales promotion methods:- Consumer sales promotion methods

are those methods which are directed at consumers to induce them to

buy the companys product the are some consumer sales promotion

devices.

Free trails. Samples Premium Bonus stamps Cash refund offer


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Trade sales promotion method: Trade sales promotion is an incentive

given to middle man to buy Goods in large quaint form the producer or

manufacturer. The main sales promotion methods are such as: Discount Display and advertising allowance Buy-back allowances Store

demonstration free goods free tours etc. 3.Sales promotion method:

Sales promotion method is those methods which intended to motivate

the sales force to increase sales. These methods 40 support a sales man

to perform his job more effectively and sincerely. Bonus to sales force

Sales force contests Sales meeting convention and conferences

Promotion strategies A promotion strategy is an important element of

market strategy. A key ingredient in marketing campaigns consists of adiverse collection of incentive tools, mostly short term, designed to

stimulate quicker or greater purchase of particular products or services

by consumers or trade. Co-operate objective Marketing objective

Marketing Strategy Promotion Production Advertising Pricing Sales

promotion Distribution Personal selling Publicity


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PACKAGING

Packaging, which is not as highly perceived by businesses, is still an

important factor to examine in the marketing mix. Packaging protects

the product during transportation, while it sits in the shelf and during

use by consumers, it promotes the product and distinguishes it from the

competition. Packaging can allow the business to design promotional

schemes, which can generate extra revenue and advertisements. Coca-

Cola has benefited from packaging the product with incentives and

endorsements on the labelling as a promotional strategy to increase itsvolume of sales and revenue.
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Branding


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It is often hard to say exactly why we buy one companys product over

another. Companies such as Nike and Adidas spend large amounts of

money trying to win consumers away from their competitors who makeproducts that are very similar. The popularity of the brand is often the

deciding factor. Over the time Coca Cola has spent millions of dollars

developing and promoting their brand name, resulting in world wide

recognition. 'Coca-Cola' is the most recognised trademark, recognised by

94% of the world's population and is the most widely recognised word

after "OK". Coca Colas red and white colours and special writing are all

examples of world-wide trademarks.

.


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BRANDING STRATEGY OF COCACOLA

Brand Spotlight: Coca-ColaFrom the Three As to the Three Ps

Coca-Cola used to focus its strategy on the three As: availability,

acceptability, and affordability. While these provided for tremendous

growth, they also led to lowered entry barriers. Today, Coca-Colas

mantra is the three Ps: preference, pervasive penetration, and price-

related value.

The Power of Brand AccessibilityIf you were another soft drink company, you might define your

competitive frame of reference as the cola market or the soft drink

market or even the beverage market. But Coke thinks of its business

and its market share in terms of share of human liquid consumption.

This makes water a competitor. In fact, a Coke executive has said that

he wont be satisfied until there is a Coca-Cola faucet in every home.

Coca-Colas mantra is within an arms reach of desire.


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Market segmentation

Coca-cola segment its market on the basis of following factors:

Geographic

Psychographic

Demographic

Behavioral

Demographic variables

Age

They segment their markets in this pattern

Under -6

6-11

12-19

20-35

36-49

50+


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GenderThe second factor that they use to segment their market is gender that

whether they will target or focus on male or female.

Psychographic variables

They have segmented the market of coca-cola according to

psychographic variables such as:

Social classLower class C-

Upper lower C+Working class C

Middle class B

Upper middle B+

Lower upper A-

Upper uppers A


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TARGETING MARKETING


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The cocacola company measures the entire market segmentsattactiveness and decides what marget segments it should target for

spirite zero.

1. Specially female who are diet conscious

2. A+,A-,B+ and B are special classes

The main target market for our product isYOUTH which are;

University going students

Age ranging from 18 years-29 years.

Both genders; males and females.


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MARKETING POSITIONING

From our research, we have come to know that we will be repositioning

our products among our market through More for Same strategy.

They position sprite-zero that this is a cold drink for the

people who can challenge norms while remaining in boundries

of Pakistan and who take the life less seriously.

It has brand personality of CONFIDENCE so the person

who is or wants to be confident and daring will prefer the

sprite-zero.

There is a thin line on which they position there product in

the marketing.


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Action and Implementation plan

Quarter one (Jan-Mar)

The company will start working and paying attention to the up gradation

of its product distribution networks in order to penetrate into themarket. Distributors for highways motor ways and other suburbs of the

country will be incentive based as well as providing attractive margins to

the retailers. The distributors shall make the maximum distribution

possible throughout the country, especially in our predetermined target

areas. The retailers as well as distributors shall be pushing the product

to the end consumer in ethical means, resulting in the maximum sales.

The companys marketing department in collaboration with production

department will start working on designing and manufacturing of luckycoupons inside the bottle caps.

Sales TargetsWe plan to achieve 25% of our annual sales by generating Rs. 75 million

and 4.1 million units of Coke NRG bottles.


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Quarter Two (April-June)

The product stalls shall start working on their allocated destinations.They will be in operations during the month of April as it is the ideal

seasonal time to sell the Coke NRG bottles. The company will continue to

strengthen its distribution network and will keep on encouraging the

intermediaries by providing them due incentives and margins. The

sponsored Advertising boards for the shop keepers and the retail

outlets will also be distributed during this quarter. In the month of June

the company will launch the price scheme in order to boast the sales by

capitalising summer vocations in next quarter.


and 5.83 million units of Coke NRG bottles.


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Quarter three (July - September)

This is the peak season of the product sale accounting for 35% of annual

sales targets to be achieved this quarter due to the summer season. Thelucky draws of above mentioned scheme will continue on monthly and

fortnightly bases.


and 5 million units of Coke NRG bottles

Quarter four (October - December)

This is the winter quarter and we dont have unrealistic targets for this

quarter so the targets are a little low. A consumer and retailer

questionnaire will be circulated in order to get the due feedback on the

companys market campaign and over all satisfaction based on the

performance and sales targets achieved. In the last quarter evaluation

programme will be conducted in order to measure the effectiveness of

the programme and also the marketing plan formulation road map for

next period.


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1.74 million units of Coke NRG bottles.


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SWOT Analysis:

SWOT stands for Strengths Weakness Opportunities Threats. SWOT

analysis is a technique much used in many general management as well as

marketing scenarios. SWOT consists of examining the current activities

of the organisation- its Strengths and Weakness- and then using this

and external research data to set out the Opportunities and Threats

that exist.


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STRENGTHS

Strong Mutinational:

Coca-Cola has a brand name that holds its own prestige in the

world market. The multinational entity of the Coca-Cola Pakistan gives it

an edge upon other competitors. The management of this beverage

company comprises of one of the most professional people and the

strong financial firmness guarantees it a solid backing to sell its

products.

Eminent Brand Name:

It is rated as the worlds number one cold drink and is famed forits internationally well-known brand name Coca-Cola.

Quality Of Products :

The product quality has improved due to upgraded quality of

packaging and the ameliorated liquid in comparison to its competitors.

My personal experience is that the product quality and taste is far

better than any product of its kind and also the improvement in

packaging and the commencement of plastic shells has received a

favorable response from the dealers and the loader.


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Regular Supply:

The regular supply of the products is another strength of thecompany. The products are regularly supplied to the dealers through

proficient means of delivering and distribution has given Coca-Cola

Pakistan an added advantage. Coke trucks supply the products regularly

and always have the desired products for the dealers.

Availability Of Products:

In the past Coca-Cola was not available in abundance but now stiff

measures has been taken to increase its availability. The increase in the

procurement of Coca-Cola has done through new supply and distribution

measures and advertising campaigns

Aggressiveness In The Market:

Its marketing strategy is very aggressive which aids it in further

and incessant production and distribution of its products. It gives trade

offers to its dealers for storing more and more coke products and the

signage strategies and agglomeration of all the marketing strategies

proves that it has a very aggressive marketing strategy. This will help

Coca-Cola Pakistan in strengthening its integrity in the market.

WEAKNESSES


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Dissatisfaction Among Staff:One of the major weaknesses as in majority of companies is the

lack of co-ordination between the management and the worker. In short

there is a weak point in their Human Resource management. Workers

feel that they are being exploited and are not given the remuneration

that they deserve. The management fault is that they think that the

worker is indefatigable and can work tirelessly. The tough schedule

results into limited rest for them and there are no holidays.

Motivational Factors:The employees lack motivation simply because of the huge

communication gap between them and the management. Thus grievances

reign high for they feel that their problems and recommendations are

not being aired the top management. The workers expect to be

adequately satisfied in terms of their salary and compensations

Centralized Decision Making :

The decision making process in the company is highly centralized

and the workers feel that there exists no proper authority existing in

the firm. The salesmen feel dissatisfied for they are totally powerless

to make any decisions themselves. In dealing with their buyers they have

not the slightest authority to allow them any credit or discount.

Less Availibity :


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The product is not available to the extent that it should be. If

Coca-Cola wants to make an impact in the market they will have to do

more than they are doing at the present moment.

Lack Of Promotion:

Promotional activities have been greatly neglected in many areas. In an

interview with the route officer and a few salesmen it was clear that for

areas such as Nazimabad and Liaquatabad no heed has been paid both to

the singe and promotional activities. This indeed results in a high degree

of difficulty for coke in penetrating the market.

Manual Paper Work:

The huge amount paper work takes a lot of time, which could be

effectively channeled to other important activities. The salesmen have

to do a lot of clerical work i.e. he has to fill a lot of forms (call slips,

route riding forms, cash memos, clearing bills etc.) at the shops and alsoafter arriving back at the factory. At the same time the management

also complains that the paper work leads to a lot of pilferage by the

employees. All such activities cause an overall great reduction in

productivity.

Lack Of Coordination:

In the factory there is a co-ordination lag between the activities

of the marketing, sales and repairing departments. The sales

department complains that the marketing department does not pay any

heed to their problems. The sales department also complains that the


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repair of the visicoolers is always delayed. Until or unless Coca-Cola

restructures its co-coordinating activities the availability of its product

would be always delayed.

OPPORTUNITIES

New Markets:

We know that Coke came to Pakistan in 1996 and since it is working

hard to develop its market. We think that Coca-Cola can secure new

dealers and buyers of its product as still large part of the country is

still devoid of its products. It can promote its products in the younger

generation by targeting the new outlets being opened due to improved

law & order situation and a growing population.

THREATS

Fake Products:Fake beverages by the name of coke are being supplied by unknown

people. Such activities really hamper the companys name and its brand

originality. Above all the fake beverages supplied are almost similar to

the taste of the original Coke brand and not everyone can decipher the

difference between the original and the fake product. This is in fact a


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great threat to Coca-Cola for unworthy people is taking advantage of its

brand name and spoiling its good name in the market.

Competitors Schemes:

For the purpose of promoting its product, Coca-Colas competitors

have been doing much more than Coke itself is doing. For example Pepsis

signage operations have been very successful. In addition to this Pepsi is

also giving very liberal credit policies to its dealers, which gives the

dealers a greater incentive to buy Pepsi rather than Coke.

The Mango Season:

The mango season is a great threat to Coca-Colas operations and

also its sales. According to statistics during the mango season Coca-

Colas sales are reduced by about 25-30%. This is indeed a huge blow to

Coca-Cola especially since it is a fairly new company in the market. Thegreatest affect is on the revenue from the rural areas where mango

drinks take over. However this is one factor that Coke cannot do

anything about for it is not in their hands. If the mango season is to

come then it will and nothing can be done about it.


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Marketing Budget20 percent of NRG Coke sales (6 billion * 0.02) = Rs. 120 million

Item Unit Expenditure

Distribution Networking 15% of MB 18 m

Distributors margin 15% of MB 18m

Retailers Margin 30% of MB 36m

Product Stalls 30 @ 35000 1.5m

Cokes overall budget

contribution

120*0.06 7.2m

Shop keeper Billboard 120 @ 1 lac each 12m

Consumer promotion 27.3

Lucky draws 2m

Lucky prizes 25.3m

(wrist watches, I pods, cell

phone, pen drives etc.)


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TOTAL Rs.120 million

SOCIAL RESPONSIBILITY

Coca-Cola, the corporation nourishing the global community withthe worlds largest selling soft drink concentrates since 1886,

returned to India in 1993 after a 16 year hiatus, giving a new

thumbs up to the Indian soft drink market. In the same year, the

Company took over ownership of the nations top soft-drink brand

and bottling network. Its no wonder our brands have assumed an

iconic status in the minds of the worlds consume.


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in giving an exponential growth to the countrys job listings.

Our promise

The Coca-Cola Company believes our business has always been based on

the trust consumers everywhere place in us-trust that is earned by what

we do as a corporate citizen and by our ability to live our values as a

commercial enterprise.


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There is much in our world to celebrate, refresh, strengthen and

protect.

coke final project 12

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