Subject: Introduction to Business

Program: BBA (Hons)

Section: C

Project Topic: Coca-Cola

Submission Date: 25\5\2012

Submitted To: Prof: Shazad Alam

Submitted By: Imran Khan L1S12BBAM2104

Mahir Kamal L1s12bbam2140

Warda Iqbal L1S12BBAM

Salman Hameed L1s12bbam

Maryam Zulfiqar L1S12BBAM2111

Khadija Manzoor L1S12BBAM2121

Syed Aarish Ali L1s12bbam

1. INTRO AND HISTORY: 3

2. COCA COLA CAME IN PAKISTAN: 4

2.1. BASIC INGREDIENTS: 4

2.2. COKE TOTAL PRODUCTS IN PAKISTAN : 5

2.3. SIZE OF BOTELS: 5

3. GENERAL MANAGEMENT MODULE: 6

4. PRODUCTION MODULE: 7

4.1. PRODUCTION FLOW: 7

4.2. SYRUP MIXING: 8

4.3. PRODUCTION LINES: 8

4.4. BOTTLE FILLING: 8

4.5. BOTTLE MAKING: 9

4.6. PUTTING THE EXPIRE DATE: 9

4.7. PACKING THE BOTTLES: 10

5. FINANCIAL MODULE: 11

6. MARKETING MODULE: 13

6.1. CHANNEL ROLE: 13

6.2. PRICE: 13

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6.3. MIX MARKETING: 13

6.4. TARGET MARKETING: 14

7. UPCOMING PRODUCT 14

8. HUMAN RESOURCES: 15

9. SWAT ANALYSIS: 16

9.1. STRENGTH OF THE COMPANY: 16

9.2. WEAKNESS OF THE COMPANY: 17

9.3. OPPORTUNITIES FOR THE COMPANY: 17

9.4. THREAT FOR THE COMPANY: 18

10. RECOMMENDATION: 19

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1. Intro and History:

Coca-Cola is one the largest company of non alcoholic beverages. It

produced several products and sold it in different countries.

According to ISO 9001 they checked Quality

According to ISO 16001 they checked Plant Environment

According to ISO OHSAS 18001 they checked that are their company

workers, Employees, Guards safe and satisfied. If they have any problem with this then

they have a right to go against company and fight for their rights.

The coca cola recipe maker is John Pemberton in a drug store (Eagle drug and

chemical company) in Columbus. First it was the coca cola wine named Pemberton

French wine coca. In 1886 John Pemberton makes coca cola a non- alcoholic based on

the French wine. It first sale was in the Atlanta 8, may 1886. It is firstly sold as the

medicine for one cent because they said carbonated water is good for health. John

Pemberton says that it is the cure of many diseases. Pemberton ran the first

advertisement for the beverage on May 29 of the same year in the Atlanta Journal. In

1888 three coca cola version was by three different businesses. In 1900 coca cola get

aimed so much publicity because of changing formula with New Coke. Coca cola

suffered by boycott by Muslims in 1968 then after that it launched coca cola on July 5,

2005. In 2007 it change in Canada the coca cola classic is change back to coca cola. But

the formula is remained same. Coca cola introduced 7.5 can in 2009.

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2. Coca cola came in Pakistan:

In 1950s Coca-Cola started its operation in Pakistan. In 1996 coke take over operation in

Pakistan. In1996 coca- cola first setup his production plant in Karachi. Now there is total

Six plant in all over the Pakistan (Karachi, Lahore, Multan, Faisalabad, Gujranwala,

and R.Y.K). Lahore has biggest coke Plant in all over Pakistan and also Asia.

11 distribution units are working in Pakistan and provide more than 6000 employment.

L.H.R Coke Plant

2.1.Basic Ingredients:

Carbonated water

Sugar

Phosphoric acid

Caramel color

Natural flavor

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2.2.Coke total products in Pakistan :

Coca cola drink was introduced in Pakistan 1953. It becomes so much poplar

Initially.

Fanta introduced in Pakistan in 1965

Sprite introduced in Pakistan in 1972

Diet coke introduced in Pakistan in 2001.

Fanta Lemon introduced also in 2001

2.3.Size of Botels:

250ml

250ml (Non Refundable)

300ml

1 Liter

1.5Liter

2.25liter

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3. General Management Module:

Coke management cycle in Pakistan:

Coca cola is public limited company. And most its shares are bought by the CCI, Turkey &

TCCC, USA peoples and others are bought by Pakistani’s. And the Pakistan management is

report to the Turkey.

Top Management

‘;\’;\’;\’;\’\’\

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General Manager

John Seward

Director External Affair

Zohair Mehmood

Chief Financial Officer

Muhammad.K.Ahmad

Director Human Resource

Amara Bashir

Director Supply Chain

M. Sohaib Pasha

Director Marketing Sales

Ahmed Imran-Ul-Haq

Chief Information Officer

Shaban Ashraf Butt

Director Legal

Ali Asad Nawaz Malik

Regional Director Central

Usman Butt

Regional Director South

Zafar Abas Jafri

Director Internal Audit

M. Amir Chaudhary

4. Production Module:

4.1.Production flow:

There are total 9 productions lines like bottle making, syrup making, cleaning

process packing etc. there are three main items entered to make syrup.

These are for classic coke:

Water

SugarCarbon die oxide gas

These are for diet coke:

Artificial sugar

Water

Flavor

Carbon die oxide gas

The production lines are working 24

hours in the day. In the first plant cleaning process are held there. The water is

cleaning with very small filters there are no issue with water because they excess

the water from 750m deep turbines. Then they add chlorine for killing germs then

they tested water from the laboratory and then if they need to clean it again then

they again filtered and this water is tested after every 30 minutes.

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4.2.Syrup mixing:

Then add syrup in the water and move it to the other plant through pipes. After

processing with water treatment. There are 5 lines for water cleaning plants. The

area in which syrup is prepared is very sensitive area. Its temperature is almost 85

degree high.

4.3.Production lines:

There are five new production lines started in 2005 in

Pakistan. And they are automatic line just two manual line

of production are available in Pakistan .and all machines

are importing from foreign countries

4.4.Bottle filling:

The syrup is filled in bottles. There are four lines of making

bottles. The first machine fill 12 thousand bottles in one

hour .second machine fills 36 thousand bottles in one

hour. A third machine fills 24 thousand bottles in one hour.

And the last one fills 36 bottles in one hour. Then in the

next there are checking machines that checks the errors in

the bottles. If bottle is not filled properly, not caped

properly, then machines reject these bottles.

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4.5.Bottle making:

For bottle making they purchase the silicon form kantaron company

which is in the Karachi. Then the manufacture machine makes it in

the shape of bottle then they send it to the filling machine. Then

they put logo on it (in ribbon form) then rape them and them to the

warehouse.

4.6.Putting the expire date:

In the next machine the expiry date is putted on the bottles.

The expiry date of coca cola bottles is putted according to its production date and

by the time gone it will automatic updated

1.5 liter 3 month

250ml 4 months

Diet 6 months

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4.7.Packing the bottles:

Then they pack the bottles in pet shape and then other

machines are also available for packing the huge number

of bottle packed in one big pallet. In one pellet there are

120 pet of bottles and each pet has 6 Bottles and after that

they move these pet to their house wares then they are

ready for sale.

We are just visited in Lahore plant. Kinley water is produce

in Rahim Yar khan. Tin pack can are imported from other

countries in Pakistan there is no plant for cans. Minute

maid orange was also imported from china but now form

last three months they are producing this in Pakistan as

well.

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5. Financial Module:

In Pakistan coca-cola company’s financial health is fair enough. Coca-cola

Company is a Public limited company. They didn’t get loans from bank or any firm.

They get finance from their previous share holders. So if they are ready to

purchase their shares then they allotted their shares to them. Over all in coca-cola

company most of the shares holders are Turkish and then America. In Pakistan

coke share holders are 40% and rest of the holders are foreigner. The person who

is the owner of 40% coke share holder is Packages Co Owner “Saeed Babar”

So whenever coke need capital they get finance from their share holders and they

invest their capital in that company as well because Coke is a trustful company.

They also are using their profit money in finance and get more worth for their

product.

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Previous Year Balance Sheet 2011

ASSETS = Liabilities + Owner Equity

Current Asset 25,497 Current Liabilities

48,339 Capital 21,000

Land of other fix Asset

15,000 Retain Earning

10,635

Non Current Asset 39,477

Total Assets 79,974 Total Liabilities

48.339 Total Equity

31,635

Assets = Liabilities + Owner Equity

$ 79,974 = 48,338 + 31,635

Total Liabilities & Owner Equity = 79,947

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6. Marketing Module:

There is a Separate department of marketing. Their work is to

promote their new product through Billboards, Banners, TV

channels, Advertisement charts etc…

6.1.Channel Role:

When the product is ready in factory and ready for sale, the

product go to their ware house, after that went to major supplier who give that

product to wholesalers and big Stores like “ Hyper Star, Metro, Macro” and that

retailer get this product from wholesalers and then product is reached to the

consumer.

6.2.Price:

They are putting all the cost of using raw material, carriage, worker and many

other expenses included with the GST (general sales tax) which is applied by the

government. Then they set the prize at which cost they cell their product in

market and customers are easily afford and but that product.

6.3.Mix Marketing:

Every company have to maintain the 4P’s to get a good response if they are

introducing new product in market then people can buy without thinking because

of the trust which company have to maintain

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Promotion

Product

Prize

Place

Coal-cola is promoting their firm by organizing cricket Mela, Concerts (Coke

Studio), Basant, Eid Festival, Food mela and much more ways.

6.4.Target Marketing:

Target market is compulsory for the peoples to make the focus on people. Coke

are now a day’s focus on youth and children by giving them things like bottle cap

scheme (Open and win exciting prizes), so Young generation is the target market

for coca-cola.

7. Upcoming Product

In Pakistan As we know they are focus on Youth so they are going to introduce

new flavor of Minute maid for youth and for children’s they are introducing

different sort of flavor in Cola like “Vanilla, cherry, lime”

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8. Human resources:

There are 830 workers in Lahore Plant.

There are 6 production plants in a factory 1 head

office and 3 ware houses in Lahore.

They are providing different facilities to their

Employs.

There are two types of workers

Management Employees

Non Management Employees

Management facilities:

They are providing

Free Sampling

Medical Checkup (Family)

Grading Policy

They Get 1.3% Bonus of the Annual Gross profit.

Non Management Facilities

Non Management workers are working under the

UNION. They are providing them

Free Sampling

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Medical (Individual)

They also get double bonus after six month’s

9. Swat Analysis:

Coca cola is the most common and poplar brand in the world. They sold their

products in almost 200 countries and several products. The famous products are

Coke, sprite, Fanta from which coke is so much poplar.

9.1.Strength of the company:

Coca cola tastes, strong believe of quality and its popularity is the strength of the

company. People love coke madly and millions of people are become addict of it.

The product availability is also strength of the company means that product is

highly available in the market. And this makes a huge good impact on the

consumers’ minds. This thing also provides strength to coke financially. That’s

why improving their process day by day to provide more than their expectations.

And also busy to introduce new products.

9.2.Weakness of the company:

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Now a day’s coke big competitor is Pepsi Co. and its

weakness is popularity and d-

istribution of coke products in all area of Pakistan. But

coke has a lot of distribution and popularity in almost all

area of Punjab. And coke don’t have too much po-

pularity and distribution in Sind, N.W.F.P. and

Baluchistan. And Pepsi take the advantage of and set

their programs there. They are doing their best situation.

9.3.Opportunities for the company:

The biggest opportunity for the coke is sponsoring. And coke is doing this very rapidly

i.e. (Coke Studio).Because through this they can grab the customer by advertising

their product. And they can take the market share from which the Pepsi have. As

everyone know that Pakistani’s love cricket and the cricketers are their heroes and

Pepsi take the advantage of it and making cricketers brand ambassador. So coke has

coke has opportunity to chose cricketers as ambassador and make their product all

region of Pakistan.

9.4.Threat for the company:

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Coca cola biggest threat is Pepsi. They want to take all market shares. Right now

Pepsi is beaten but it’s still a substitute for the Customer. I and they also launched

almost same products and the products detail is following.

Coca cola co. Pepsi co. Coke Pepsi

Sprite 7 Up

Fanta Mrinda

Minite maid Slice

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10. Recommendation:

We think that from the current situation that Coke has very long life. If he work

more effectively like he still working. But only problem is the competitor of the

coke like Pepsi. But we don’t know about the future if any other competitor came

in to the market who will know what happened. But if cokes work more like he

still doing he can beat any competitor.

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