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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
http://www.amazon.com/exec/obidos/tg/detail/-/0553266322/qid=1118804912/sr=8-2/ref=sr_8_xs_ap_i2_xgl14/002-5119321-2147212?v=glance&s=books&n=507846http://www.amazon.com/exec/obidos/tg/detail/-/0553266322/qid=1118804912/sr=8-2/ref=sr_8_xs_ap_i2_xgl14/002-5119321-2147212?v=glance&s=books&n=507846http://www.amazon.com/exec/obidos/tg/detail/-/0553266322/qid=1118804912/sr=8-2/ref=sr_8_xs_ap_i2_xgl14/002-5119321-2147212?v=glance&s=books&n=507846http://www.amazon.com/exec/obidos/tg/detail/-/0553266322/qid=1118804912/sr=8-2/ref=sr_8_xs_ap_i2_xgl14/002-5119321-2147212?v=glance&s=books&n=507846 -
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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.
Sales TargetsWe plan to achieve 35% of our annual sales by generating Rs. 105 million
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.
Sales TargetsWe plan to achieve 30% of our annual sales by generating Rs. 90 million
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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Sales TargetsWe plan to achieve 20% of our annual sales by generating Rs. 60 million
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.