final word coke (2)

7/28/2019 Final Word Coke (2)

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PRINCIPLES OF MARKETINGMARKETING MIX OF COCA COLA

SUBMITTED TO:

SIR USMAR GHOURI

SUBMITTED BY:

M. TAHIR 1172

AURANZAIB 3311

DATE: 07-06-2013

HAJVERY UNIVERSITY LAHORE


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TABLE OF CONTENT

1.INTRODUCTION2.MISSION3.VISION4.HISTORY5.MARKITING MIX

a.PRODUCTb.PRICEc.PLACEd.PROMOTION

6.MARKET SEGMENTATION7.COMPETITOR ANALYSIS


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INTRODUCTIONIn 1886, Coca-Cola brought refreshment to patrons of a small Atlanta pharmacy. Now well into its

second century, the Company's goal is to provide magic every time someone drinks one of its more than 500 brands.

Coca-Cola has fans from Boston to Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In

the remotest comers of the globe, you can still find Coca-Cola.

Coca-Cola is committed to local markets, paying attention to what people from different cultures and

backgrounds like to drink, and where and how they want to drink it. With its bottling partners, the Company reaches

out to the local communities it serves, believing that Coca-Cola exists to benefit and refresh everyone it touches.

From the early beginnings when just nine drinks a day were served, Coca-Cola has grown to the

worlds most ubiquitous brand, with more than 1.7 billion beverage servings sold each day. When people choose to reach

for one of The Coca-Cola Company brands, the Company wants that choice to be exciting and satisfying, every single

time.

The world is changing all around us. To continue to thrive as a business over the next ten years andbeyond, we must look ahead, understand the trends and forces that will shape our business in the future and moveswiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about.It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with ourbottling partners.

Our Mission:Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and

serves as the standard against which we weigh our actions and decisions.

To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Our Vision:Our vision serves as the framework for our Roadmap and guides every aspect of our business by

describing what we need to accomplish in order to continue achieving sustainable, quality growth.


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People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brandsthat anticipate and satisfy people's desires

and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

Our Winning Culture:Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020

Vision a reality.

Live Our ValuesOur values serve as a compass for our actions and describe how we behave in the world.

Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity:As inclusive as our brands Quality: What we do, we do well

Focus on the Market: Focus on needs of our consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious

Work Smart: Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently
http://www.coca-colacompany.com/brands/allhttp://www.coca-colacompany.com/stories/diversity-education-traininghttp://www.coca-colacompany.com/brands/allhttp://www.coca-colacompany.com/brands/allhttp://www.coca-colacompany.com/stories/diversity-education-traininghttp://www.coca-colacompany.com/brands/all


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Act Like Owners: Be accountable for our actions and inactions Steward system assets and focus on building value

Reward our people for taking risks and finding better ways to solve problems Learn from our outcomes --what worked and what didnt

Be the Brand: Inspire creativity, passion, optimism and fun

HISTORY OF COCA COLADr. jhon Pemberton invented coca cola as colored syrup in a three-legged brass kettle in his backyard. He first

distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for

five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by ac Coca-Cola was first

introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel

cident or otherwise, producing a drink that was proclaimed delicious and refreshing, a

theme that continues to echo today wherever Coca-Cola is enjoyed.

Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the

name and penned Coca-Cola in the unique flowing script that is famous worldwide even

today. He suggested that the two Cs would look well in advertising. The first newspaper ad

for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new

and popular soda fountain drink. Hand-painted oil cloth signs reading Coca-Cola

appeared on storeawnings, with the suggestions Drink added to inform passersby that the new beverage was for soda

fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold

25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink

ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the

potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his


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death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year

1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola

business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and

territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his

brother, John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr. Candler

formed a Georgia corporation named the Coca-Cola Company. The trademark Coca-Cola, used in the marketplace since

1886, was registered in the United States Patent Office on January 31, 1893.

The business continued to grow, and in 1894, the first syrup

manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were

opened in Chicago, Illinois, and Los Angeles, California, the following year. In

1895, three years after The Coca-Cola Companys incorporation, Mr. Asa G.

Candler announced in his annual report to share owners that Coca-Cola is now

drunk in every state and territory in the United States.

As demand for Coca-Cola increased, the Company quickly

outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the

production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group

of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more

than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of

the most recognized and valued brands around the world.

Plants in Pakistan:Today CCBPL is operated directly under the supervision of the Coca-Cola International based in Atlanta Georgia

State___ USA .It owns 8 plants all around in Pakistan.

Karachi Lahore Gujranwala Rawalpindi


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Coca-Cola the worlds most popular beverages. Consumers buy the coke product because of the high

standards and high quality of the Coca Cola products. The popularity of Coke is to such an extent that

The most known and spoken word in world after OK is COKE.

Brand Name:A brand is a name; term, symbol and / or special design that is intended to

identify the goods or services of one seller or a group of sellers. A brand differentiates

one sellers products from those of competitors.

Coke:Coca-Cola is the most well known trademark. Coca Colas red and white colours and special writing are allexamples of world-wide trademarks. Coca-Cola (often "Coke") is a carbonated cola and the world's most popular soft

drink. For all ages (mostly fun loving people). In Pakistan the Coca-Cola is spending millions rupees in developing and

promoting the Coca-Cola.

Packaging:Packaging protects the product during transportation. Packaging can allow the business to design promotional

schemes, which can generate extra revenue and advertisements.

The Coca-Cola Beverages Pakistan packages its beverages into:

250-ml bottle. 300ml disposable bottles. Tins. 300ml 500-ml Bottle. 1-litre bottle.


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1.5 liter bottle. 2.25 liter Jumbo2. PRICING OF COCA COLA

The amount of money charged for a product or service, or sum of the values that consumersexchange for the benefits of having or using the product or services. As price gives us the profit so this P is very importantfor business price of product should be that which gives maximum benefit to the company and which gives maximumsatisfaction to the customer.

Following factors Coca Cola kept in mind while determining the pricing strategy.

Price should be set according to the product demand of public. Price should be that which gives the company maximum revenue. Price should not be too low or too high than the price competitor is charging from their customers otherwisenobody will buy your product. Price must be keeping the view of your target market.

The price of Coca Cola, despite being market leader is the same as that of its competitor Pepsi Cola.Sometimes, Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle andconsumers think that they save a lot of money from this.

PRICES OF DIFFERENT BOTTLESSize of Coca Cola Price of Coca Cola (RS.)

Regular bottle 250ml 20Disposable bottle 300ml 25Disposable bottle 500ml 40

1.5 liter bottle 702.25 liter bottle 90Coca Cola can 55

PRICING STRATEGIESCompetition Based Pricing Approach:Coca Cola has intense competition with Pepsi so its pricing cant exceed too much nor decrease too

much as compared to the price of Pepsi Cola. If price of the Coca Cola exceed too much from the Pepsi then people will


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shift to the Pepsi Cola and on the other hand if the price of Coca Cola decreases people might get the impression that itsquality is also low.

Discounts:Coca Cola offers various discounts to those retailers who have the maximum sales of Coca Cola

products on daily, monthly and on seasonal basis. Some of the main discounts given to the retailers are as follows:

INCENTIVESMainly two types of incentives are given by the Coca Cola:

INCENTIVE TO RETAILERS:Coca Cola provide various incentives to retailers on the best sales and achieving the predetermined sales targets.

These incentives are in the shape of:

Deep Freezers Return Tickets Free Transportation Services.

INCENTIVE TO DEALERS:The first, second and third best dealers of the year are awarded.

3. PLACE OR DISTRIBUTIONAs a part of its drive to enhance the quality, availability, and image of Coca-Cola products, the Coca-

Cola Company established a new Company in Pakistan in 1996, by the name of Coca-Cola Beverages Pakistan Limited(CCBPL).

CCBL started the process of acquiring and investing in locally franchised bottling operations. Thisprocess was completed in 2006 and, thereafter, all manufacturing and selling rights of Coca-Cola products are now withCoca-Cola Beverages Pakistan Limited.

Coca Cola Company makes two types of selling

Direct selling Indirect selling


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DIRECT SELLING:In direct selling they supply their products in shops by using their own transports. They have almost

450 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

4. POROMOTIONThe field of advertisement is one area where Coca-Cola has always emphasized. In year 2000

Coca-Cola unveiled the biggest advertising billboards in the history of Pakistan. Each unveiling was marked byentertainment and light shows watched by thousands of people. Similarly in July 2000 Coca-Cola launched its first

under the crown promotion by the name of Dream Vacations in which the consumers could collect caps of promotional

bottles of Coca-Cola like Sprite, Fanta and Coke.

Through TV commercials coke becomes a part of life their customers. Coke become the part of their

entertainments, funs and parties. The coke commercials always create a unique impact on their customers. Every time


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they come with a new idea or creativity. Like open happiness campaign was a great success in coke history. Their special

ramdan commercials in Islamic world and now with idea of Good kay lye ho jao crazy they create a unique image in

the mind of their customers.

ADVERTISEMENT OBJECTIVE:Type of advertising with respect to product life cycle that Coca-Cola adopts is reminder type. The

reason behind this fact is that coke is such a product that is at the maturity level currently so for such a product

companies mostly go for reminder type of advertisement so that they can penetrate more and more and same is the case

with Coke.

SETTING OF ADVERTISING BUDGET:Coca-Cola sets its advertisement budget on the basis of competitor based budgeting. Major competitor of

Coca Cola is Pepsi and as Coke realizes that Pepsi has increased its advertising budget, straight away Coca-Cola

management plans to do the same so that they can compete in advertising department as well.

ADVERTISING STRATEGY:Before creating advertising message the Coca-Cola Company gives lots of time to the factor that the

message must gain customer attention. This is basically called Clutter Buster means that only that advertisement will

leave impact on customer mind that has some specialty or uniqueness in it. For example in Pakis Coke current slogan

Thanda Matlab Coca-Cola has gained reasonable customer attention.

ADVERTISEMENT MEDIA:Coca-Cola Company advertises its products mainly coke through electronic media that includes

Television, Radio and Internet as well. Moreover leading newspapers of Pakistan are also the targeted by coke for

advertising. So we can say that coke not only uses electronic but print media for advertisement as well.


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Coca Cola Company use different mediums

Print media Pos material

TV commercial Billboards and holdings Sponsorships Advertising campaigns

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 that are displayed in the stores

and in different areas.

TV COMMERCIALS:As everybody know that TV is a most common entertaining medium so TV commercials are one of the

most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.

BILLBOARDS AND HOLDINGS:Coca Cola is very much conscious about their billboards and holdings. They have so many sites in

different locations for their billboards.

SPONSERSHIPS:Coca cola sponsoring all over the world different events and programs includes sports, cooking

programs, festival events and music programs. In Pakistan the Coke Studio is the most popular music project of the coca

cola company.


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PROMOTION STRATEGIES OF COCA COLA GETTING SHELVES:

They get or purchase shelves in big departmental stores and display their products in those shelves in

that style which show their product clearer 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 schools 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.


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MARKETSEGMENTATION OF COCA COLACoca cola serves 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:

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, and i.e. Third world

counties are given low quality taste.

Coca Cola Company tries to satisfy the needs of a whole line of different people. They have drinks that

target different, age groups, ethnic groups, sexes, lifestyles, etc.

There are some of the different brands:OasisThis is a juice made for the younger working adults, 20-30. It is available in berry, lemon and orange

tangerine. This drink is most popular in Britain and Ireland.Minute MaidMinute Maid targets kids and adults, ages 1-10 and 40+. This drink is conveniently packaged to take withyou on the go anywhere. The health check is part of the reason for the wide target market, parents want their kids to be

healthy and so knowing that this product is accepted by such a well known respected company pleases the parents andgives them a sense of relief.Coca Cola

The Coca Cola drink is by far there most successful drink. It is very popular among many different nations.It is a soft drink. Because of the huge demand for the coca cola drink, and the trend towards healthier lifestyles cocaand begun to produce spin-offs of the coca cola product. They have made drinks such as coca cola zero, coca cola diet,coca cola C2, coca cola with lime etc. By having all these different drinks with the same basic taste they are able totarget a much bigger market. Due to the large success of the drinks coca cola is in demand worldwide. As such the CocaCola brand is sold in most countries in the world.

Coca Coal ZeroThis drink is specifically targeted at teens that dont want the calories that come with coke but want to same

great taste. This Product is sweetened with aspartame.Coca Cola Diet


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The diet drinks are targeted at adults of ages 30-50, who are health conscious but still love the great taste ofcoke. This drink is sugar less.Coca Cola with lime

The drink is sold in both regular and diet. It is for a wide range a coke lovers who are looking for an extralittle punch.

SpriteThis is a soft drink that has many different target markets. This product has a different taste then coke all

together and is not as popular but it is still a very popular drink. Like coke it also has a whole other line of drinksassociated with it, such as diet sprite, sprite zero, sprite with a hint of lime. This drink is also sold in many placesworldwide.Powerade

Powerade is a sports drink. It is designed with a great taste and is also thirst quenching. It is made forathletes of all ages, sexes and sports, but they would target this drink at teens and young adults, ages 13- 27. Thisdrink is sold in many places but mostly over North America.Aquarius

Aquarius is a sports drink, enjoyed by people who have healthy lifestyles. It is made for athletes of all ages,sexes and sports, but they would target this drink at teens and young adults, ages 13- 27. This produce is very wellknown in Europe. Particularly in France, Norway, Spain. But it is still known all over. It became even moresuccessful when it became the official drink of the Olympic games in Barcelona in 1992.Full Throttle

This is an energy drink. It is designed for athletes both male and female but particularly males, of ages 14-25.As we can see by looking at a select few of coca colas drinks they have a wide variety of drinks to satisfy

everyones needs.

CLIMATIC:Weather is the third major factor in effecting the Cokes selling. 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 insummer.This is underdeveloped market so the cokes consumption in summers is 60% and in winters is 40%. . It is asource of refreshment when a person is thirsty due to the hot weather.

LOCALLY:In Pakistan the coke segments more in urban and suburban areas as compare to rural. 35 %

population resides in urban areas and 65% population lives in rural areas in Pakistan. Coca Cola is focusing on urbanareas as people there are more inclined towards such beverage while people in rural areas are more inclined drinking lassiand desi drinks.


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DEMOGRAPHIC SEGMENTATION AGE:

Internationally coke has segments the small children introducing tastes like vanilla, lime andcherry, they focus children from 4-12. Coke specifically target more young people than older.

Pakistan is considered to be a young country i.e. average age of Pakistani population is less than 38

years. Thus targeting young generation can be a beneficial marketing strategy for soft drink companies. In fact this is the

case, all the major brands like Coca Cola, Pepsi mainly target younger generation in Pakistan.

GENDER:Coca Cola targets both genders with its wide variety of drinks. This market is relatively large

and is open to both genders, thereby allowing greater product diversification.

FAMILY TYPE:Coca Cola introduces its economy pack, and thats how they focus family and groups.

INCOME:Coca Cola 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.

PSYCHOGRAPHICS SEGMENTATIONAll psychographics variables the social class, lifestyle, occupation, level of education and personality,

Coca Cola segments everyone, but again it is their packaging which is different for different consumers.

SOCIAL CLASS:Coca Cola is a well known brand. People who are brand conscious will not drink beverages of less

known brands and quality such as Amrat cola. They will try to show their status by drinking Coca Cola which isknown to all as a quality drink.


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LEVEL OF EDUCATION:A company has to make promotional strategies keeping in view the customer level. If the percentage of

education is high in a country then through advertisements people can be made well aware of their product and canconvey their message easily. Promotion and education has a direct relationship.

BEHAVIORAL SEGMENTATION:It is how people perceive a specific product, in short psychological analysis of a product. Coca Cola all over the

world is recognized as a quality drink and therefore people drink it without any hesitation whenever they are thirsty orotherwise. So marketers of Coca Cola have made it a drink for all people and for diabetic people they introduced diet

Coke.

OCCASIONS:A very special occasion for the people of Pakistan Ramzan, people emphasis on enjoying Coca-Cola at

Iftar and then on Eid with friends & family with super price off promotion BENEFITS SOUGHT:

Sometimes, for the promotion strategy of coke, Coca Cola Company introduce prizes in the top cover.So they segment people by benefit sought, i.e. by giving them prizes.

COMPETITOR ANALYSISBUYERS/CUSTOMERS:

Coca-Cola has three major and large customers in the market, food street 60,000 cerates /year,MacDonalds 40,000 cerates/year and Pakistan Railways who buy 50,000 cerates /year.

However, these three customers being large and powerful are in an influential and bargaining position

they can demand discount or others facilities like (boards sign/freezers/coolers etc.) and impose a threat to switch to

their closest rival and competitor Pepsi.


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SUBSTITUTES:Nestle products like juices, coffee, mineral water etc. and Shezan juices are substitutes of Coke for

health conscious people and other fresh juices.

RIVALS/COMPETITORSDIRECT COMPETITORS:

The direct competitor of Coca-Cola is Pepsi and that of CCBPL is PCI (Pepsi cola international) there

is always ongoing tuff competition between these two arch rivals with Pepsi leading with 54% market share and Coke

gradually growing and catching up 36% market share in Pakistan. However on global level the situation is reverse.

Both companies often engage in price cut wars, prize scheme wars and sponsorship wars to win overeach other customers.


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INDIRECT COMPETITORS:These include Nestle and Shezan juices who do not pose a threat to Coke as yet but has the potential to

do so as it is exploiting the natural aspect and health issues more and more to make people conscious about physical

fitness Coke has launched Diet Coke to counter the physical fitness demands.BUFFERING AND SMOOTHING:

For beverages like Coke the buffering and smoothing policies doesnt matter and they dont apply

anymore because Coke remains in demand all the year round in festivals, parties, events, meetings sports etc.

SUPPLIERS:Coca-Cola has authorized suppliers and which do not pose a threat to it. Any how Coke does have a

quality check procedures in its plants to ensure that they get the right kind of ingredients from suppliers.

FOR EXAMPLE:If market has low quality carets of bottles by chance, they call their sales mangers to lift up all the

stock from the market then inquired from the quality inspector. They take strict notice of that .and don not take

materials from that company again if that default is due to the ingredient contains by it.

NEW ENTRANTSCoca-Cola is not afraid of competing .it doesnt fear losing its share to Mecca-Cola or other new

entrants. The company management believes that new entrants provoke healthy competition, which will provide Coke with

a challenge to hold on to its loyal customers. Besides it will take a lot of effort on the part of new entrants like Mecca-

Cola, Pak-cola to fully launch its product in Pakistan and capture or even motivate people to switch on to their new

product from Coke.


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COMPETITIVE ADVANTAGESBRAND NAME, SYMBOL, BOTTLE SHAPE:

Brand name, symbol and bottle shape are distinctive features of Coca-Cola which give it an edge overits competitors. (Even without name people can easily identify Cokes, fantas, and sprites bottle from crowd.) Theycannot be copied or imitated by others.

DIET COKE:Coca-Cola has successfully addressed to the needs of its health conscious overweight customers with the launch

of dietCoke. Its competitor has yet to come up with and counter dietCoke properly.

SNATCHING AWAY CUSTOMERS:In the marketCokehas been able to snatch large customers like Food Street, Pakistan Railways, McDonalds, as

well as Sponsorship events (basant, Eid, concerts etc.) from Pepsi mainly due to its superiority in the following areas.

Cost: It is very economical, justifies performance,Quality: No quality compromise, get the best all over Pakistan at any cost.Innovation: new ideas for billboards design, sponsorship, changing their slogans time to time, according to the

needs of the market.

Speed: On time delivery in all over the Pakistan.

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