marketing plan of coca cola (mkt-302)
TRANSCRIPT
Assignment
Marketing Plan On
(Product Coca-Cola)
Prepared by
Md. Mosaddek HossenId # 0220012
Tanima TrinaId#0220063
Sohel MahmudId # 0220013
Sabrina ChawdhuryId # : 0000000
Group- LeoMarketing Management
Sec-1
Submitted to
Mr. Rumman HassanLecturer
School of BusinessIndependent University, Bangladesh
25th April, 2006
25 April, 2006
Mr. Rumman Hassan
Course Instructor
Marketing Management
School of business
IUB,
Dhaka-1212
Sub: Letter of transmittal
Dear Sir,
It’s our great pleasure to submit you this report on Market plan of Coca-cola. We have got a great
experience while working on this report.
We would like to leave this report to your kind consideration for any unintentional mistake that
may accuser while doing this report. We are always at your service if you want to ask us any
thing about this report and it will be a great pleasure to work with you again in future.
Sincerely yours
Md. Mosaddek HossenId # 0220012
Tanima TrinaId#0220063
Sohel MahmudId # 0220013
Sabrina ChawdhuryId # :
Group- Leo
Table of Contents
2
Page number
Acknowledgement --------------------------------------------------------------------- 5Executive Summary ------------------------------------------------------------------- 6Introduction ---------------------------------------------------------------------------- 7
Beginning of the project -------------------------------------------------------- 7Preface --------------------------------------------------------------------------- 7
Company Overview ------------------------------------------------------------------- 7-8History --------------------------------------------------------------------------- 7Coca-Cola Company in Bangladesh ----------------------------------------- 8
Mission Statement --------------------------------------------------------------------- 8Motto of Coca-Cola: --------------------------------------------------------------------
9Strategic Goals ------------------------------------------------------------------------- 9
Short term ------------------------------------------------------------------------ 9Long term ------------------------------------------------------------------------ 9
Situational Analysis -------------------------------------------------------------------- 10-14Product Definition --------------------------------------------------------------- 10Brand Name of Coca-Cola -------------------------------------------------------
10External Factors ----------------------------------------------------------------- 11-12
Demographic -------------------------------------------------------------- 11Social Factors ------------------------------------------------------------- 11Political Influence --------------------------------------------------------- 12Competitors --------------------------------------------------------------- 12Government --------------------------------------------------------------- 12
Internal Factor ------------------------------------------------------------------- 13-14Human Resource Management --------------------------------------------- 13Technology ---------------------------------------------------------------- 13Management Levels -------------------------------------------------------- 13Financing Capacity -------------------------------------------------------- 14Marketing Department ----------------------------------------------------- 14
Brand Building Efforts --------------------------------------------------------------- 14-15
Relationship Building Effort -------------------------------------------------- 14
Building Values ------------------------------------------------------------------- 14Target Market --------------------------------------------------------------------------- 15Consumption Rate ---------------------------------------------------------------------- 15Strategic Group Map of competitors in the beverage industry --------------- 16SWOT Analysis ------------------------------------------------------------------------- 17
Critical Success Factors --------------------------------------------------------------- 17-21Strength -------------------------------------------------------------------------- 17-18
Patent --------------------------------------------------------------------- 17
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Own production plant ----------------------------------------------------- 17-18Research & Development ------------------------------------------------- 18High market share -------------------------------------------------------- 18Brand image -------------------------------------------------------------- 18
Weakness ------------------------------------------------------------------------- 18-19Don’t sell on account ------------------------------------------------------ 18Less motivation down stream ---------------------------------------------- 19Insufficient advertisement ------------------------------------------------- 19Not skillful village distributor --------------------------------------------- 19Overconfidence in their product ------------------------------------------- 19
Opportunity ---------------------------------------------------------------------- 20High growth rate ---------------------------------------------------------- 20Huge local market -------------------------------------------------------- 20Acceptance of Pet bottles -------------------------------------------------- 20Good relationship with the distribution channel --------------------------- 20Good relation with the Government --------------------------------------- 20
Threats --------------------------------------------------------------------------- 21Other existing company --------------------------------------------------- 21Good taste of competitors ------------------------------------------------- 21Political instability -------------------------------------------------------- 21Better professional promotion of competitor ------------------------------- 21
Maslow’s Hierarchy of Needs -------------------------------------------------------- 22Marketing Mix -------------------------------------------------------------------------- 22-26
Product -------------------------------------------------------------------------- 22Price ------------------------------------------------------------------------------ 23Distribution Channel ------------------------------------------------------------ 24Promotion ----------------------------------------------------------------------- 24-26
Promotional activities of Coca-Cola --------------------------------------- 24Sales Promotion ----------------------------------------------------------- 25Advertising ---------------------------------------------------------------- 25Public Relation ------------------------------------------------------------ 26
Strategy Alternatives ------------------------------------------------------------------ 26Strategy Recommendations ---------------------------------------------------------- 26Brand Element Choice Criteria ----------------------------------------------------- 27-28
Exorability ----------------------------------------------------------------------- 27Meaningfulness ------------------------------------------------------------------ 27Transferability --------------------------------------------------------------------- 28Adaptability ----------------------------------------------------------------------- 28Protect ability --------------------------------------------------------------------- 28
Marketing research -------------------------------------------------------------------- 29General objective ------------------------------------------------------------------ 29Specific research ------------------------------------------------------------------- 29Data collection ------------------------------------------------------------------ 29
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Bibliography: ------------------------------------------------------------------------- 29
Acknowledgement
First of all, we would like to thank our lecturer Mr. Rumman Hassan; we are grateful to him
for his cooperation in preparing this report. His proper guidance & helpful attitude help us to
make this report.
We like to thank Mr. M. A. Majed manager (statistics) of Tabani Beverage Company limited
from whom we collected all the information. We offer special thanks to Mr. Shah Suja of Abdul
Monem Ltd who really helped us by giving some information, which is required for our project.
We also like to thanks Mr. Mustafir rahman who is a student of IUB & at the same time he is a
distributor of coca-cola in Maymanshig districts who helps us to provide information.
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Executive Summary
More than a billion times everyday, thirsty people around the world reach for beverages for
refreshment. All around the world, drinking beverage is like an entertainment for people. Soft
drinks are considered as consumer products. All round the world we can see a different marketing
phase used by the beverage producing companies but in Bangladesh it is a little different. The
companies do not directly sell their products to the end consumers. Companies such as Soft
Drinks (Coca-Cola, Pepsi, RC-Cola, Uro-Cola, Virgin, etc), Mineral waters (Fresh, Mum,
ACME and etc), Juices (Pran, Danish, Sezan, etc) are dependents on the distribution channels for
making their products reach the final consumers. As the companies are not making the people
aware about their beverage through directly selling it to them, they use other media and means to
make its customers know about their products. They use the advertisements as one of the most
important promotional tools. Along with advertisement they also use other promotional tools.
We have done a study on Coca-Cola Company with the aim to learn about the different
marketing prospects in Bangladesh and our selected product is Coca- Cola. Like always the
company is doing quite well although at the current moment RC-Cola is dominating the market a
little more than Coca-Cola. Still Coca-Cola has more market share than its competitors.
Coca-Cola has an effective marketing and advertising campaign. As the company does not
have that skillful village distributor they cannot reach out to a lot of people. There are lots of
recommendations which are provided for the improvement of the functionality in the marketing
sector The company’s investment in local communities in over 200 countries totals billions of
dollars in jobs, facilities, marketing, purchase of local goods and services and most importantly
the local business partnership.
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Introduction
Beginning of the project
We are students of MKT-302 “Marketing Management”. Our faculty Mr. Rumman Hassan,
Lecturer, School of Business, Independent University, Bangladesh has assigned to us this report
writing as a part of our course study. We are sincerely thankful to him for assigning or group such
type of a project work in a group of four members.
Preface
In the past we had only two foreign companies in the production of beverages. One is Coca-
Cola Company and the other Pepsi. In the recent years there is a change that we all can see.
Some newer companies have entered into this market. Still Coca-Cola is holding on to its
position in terms of its market share and market position. Like always it has got the same
tremendous response from the people in Bangladesh. Previously it used to dominate a little more
than what it does today. After the introduction of RC-Cola, a sister concern of Partex group they
have seen a little down fall in their market share. As people are getting more choice many of
Coca-Cola’s customers have diverted to RC-Cola beverages. Still with the company’s ever
attracting advertise they have been able to hold on to most of its customers. They also serve to
their customers the best quality beverage.
Company Overview
History
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The first company that conducted its operation in the soft drink industry was Coca-Cola.
They brought a new revolution in the history of the world. Coca-Cola was established in
May 1886 when a pharmacist Dr. John Styth PEMBERTON first produced syrup in a three-
legged brass pot in Atlanta, Georgia backyard. Coca-Cola first bottled in 1894. Large scale
bottling was only possible in 1899. They marketed and distributed the product in specific
territories.
Coca-Cola Company in Bangladesh
Even before our independence of Bangladesh the Coca-Cola Company has started its
operation in Bangladesh. Coca-Cola started its operation under a franchise agreement. In
Bangladesh there are two franchisees conducting operation on behalf of Coca-Cola Company.
One is Tabani Beverages Company Ltd and the other Abul Monem Ltd.
Tabani Beverage was established in 1963 at 257, Tejgaon, Dhaka. It had a rated capacity of
50 BPM on and acre land area. After independence, in 1972, the plant was handed over to
Bangladesh. Freedom fighter welfare trust under the ministry of industry with the increase of
gradual market demand in 1985 transferred and newly installed the plant with an increased
capacity of 250 BPM at Mirpur on seven acre land area. In 1993 a new plant with 500 BPM
capacities was established just beside the previous plant. Now the total production line capacity
of the company is app. 830 BPM. Tabani beverage produces 175 ml, 250 ml, 50 ml and 1000 ml
glass bottle. They supply Coca-Cola drinks to Dhaka and Rajshahi divisions.
Other than Tabani beverage the other franchisee of Coca-Cola Company is Abul Monem
company ltd. In 1982 Abul Monem started their operation after they acquired the plant of K.
Rahman & Company. In 1987 the company made an aggressive move to expand their market.
They installed new H & K bottling line along with and installed capacity of 450 BPM at Comilla.
Furthermore they company established another plant Chittagong. The state of the art bottling
plant with an installed capacity 600 BPM is the most modern plant in the country and is equipped
with the straight-line-technology from KHS German. Abul Monem produces the PET Bottles,
CANS and GLASS Bottles of a newly introduced product.
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Mission Statement
Respect for labor and a human right is the fundamental to Coca-Cola Company’s
principles for conducting business around the world. We treat our employees in more that 200
countries in which we do business in fairness, dignity with respect. Or bottling partners and we
operate in accordance with local laws and contribute to the communities. Ultimately, a
company’s identity is measured by how it connects with people and with the world around it.
That is why The Coca-Cola Company’s mission is articulated as a promise.
The Coca-Cola Company exists to
Benefit and refresh everyone it touches.
All of our success, both past and future, is a product of this promise. Our growth hinges upon
our ability to build and nature relationship-with consumers, customers, bottling partners,
suppliers, government agencies, communities, employees and share holders. Further, as we help
to build thriving communities all around the world, we seek to ensure a healthy and sustainable
marketplace for our beverages-today, and far into the future.
Motto of Coca-Cola:
Through out the history of the world’s most popular soft drink, advertising for Coca-Cola
has followed the trends of time. Coca-Cola’s advertising slogans are memorable and create
lasting impressions. Since the first slogan was introduced in 1886 ‘Delicious and refreshing’. The
overall theme has been refreshment- one of the pleasant things in life, distinctive and available
nearly everywhere. Motto followed the lead to make Coca-Cola the best known soft drink in
the world.
Today, motto for Coca-Cola and the company’s other products are carefully aimed
towards individual tastes while understanding the universal appeal of refreshment. And very
appropriately, the company has globally launched its new motto Theme –“Enjoy Coca-
Cola”.
‘Coca-Cola motto’, the world’s best-known consumer product demands the talents of
professionals in many different areas. The mottos that has used till now are:
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“Dil thanda to duniya thanda”
Strategic Goals
Short term
To create Quality, Service, Cleanliness and Value in their current product”
Long term
To acquire the position as a market leader of the beverage industry in Bangladesh by producing & serving high-quality and high value-added soft drink.
Situational Analysis
Product Definition
Coca-Cola is consumer product because final consumer for personal consumption buys
it. It also falls under the category of Convenience product, which requires very little planning,
Little Comparison, low customer involvement, low price. It widespread distribution at convenient
place makes it easier for the consumer to purchase the product.
Coca-Cola has different sizes. They have 1 liter glass bottle as well pet bottle. Coca-
Cola also has 175 ml and 250ml glass bottles. In addition, they also have 1.5 liter of pet bottle
and in the recent past they introduced into the market 2 liter pet bottle coke. It has also 250ml of
can coke.
Brand Name of Coca-Cola
Coca-Cola Has become one of the most popular and widely known Brand product in
the world It has high brand equity, and because of its high brand loyalty, name awareness,
Perceived quality, strong brand association and other assets such as patent trademark and channel
relationship. The Coca-Cola brand is value at $ 70 billion.
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Here we are dealing with tow most important situational factors- External & Internal factors.
Some important determinants for this situation analysis are as follows:
Table 1: situational factors
External Factors
Demographic
Demographic is the study of people’s vital statistics such as their age, race, ethnicity and
location. It is an uncontrollable factor in the external environment. Demographic is very
important for marketing managers. After survey we find that teenagers are the prime consumer of
Coca-Cola products, rather than the people at the age group of 60. Coca-Cola does not
have an effective and fast distribution channel in the villages of Bangladesh. Their competitors
have an upper hand in this zone. From the demographic point of view we have done a survey on
the population who consume more Coca-Cola.
Age Limit Percentage of Consumer
Below 10 10
11-15 20
16-20 23
21-25 18
EXTERNAL FACTORS INTERNAL FACTORS
1. Demographics
2. Social Factors
3. Political Influence
4. Competitors
5. Government
1. Human Resource Management
2. Financial Capacity
3. Technology
4. Management Level
5. Marketing Department
11
26-35 14
36-45 11
45 and above 04
TOTAL 100
Table 2: Source [Tabani beverage Ltd]
Social Factors
The most difficult external factors for marketing managers to forecast control or incorporate
into marketing plans is the social factor. Social factors include our attitudes, values and lifestyle.
According to the company’s mission statement or other statements it is clear that they do not use
any such ingredients (e.g. Alcohol), which, contradict to our perception, values of Islamic
religion or any other norms, and believes.
Political Influence
In Bangladesh hartal is a part of our life. Like all other third world counties we have political
problems too. The marketing manager of Coca-Cola Company generally sells Coca-Cola
8,000 cases (1 case = 24 bottles) per day but during hartal time the company faces a great loss as
they cannot transport their products to the market. Other than hartals they seem to have lesser
problems regarding the political condition of Bangladesh.
Competitors
Pepsi is a very powerful brand name and is one of the biggest competitors of Coca-Cola.
They compete with Coca-Cola throughout the world and it is no different in Bangladesh. At
the current moment RC- Cola is a very big brand name in Bangladesh and is the greatest rival for
Coca-Cola in Bangladesh. Mountain Dew is a new brand and is a threat for Coca-Cola.
RC beverages with the brand image that Partex holds in this country RC beverage easily became
a big competitor for Coca-Cola. RC’s market share is increasing which in not a good sign for
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Coca-Cola. Mineral water such as Mum, Fresh, ACME also a competitor of Coca-Cola.
Different kinds of Juice also compete with soft drinks.
Government
Coca-Cola has been in business in Bangladesh for a long time but still today there is no
record of the company being in any conflict with the government. Coca-Cola always tries to
follow the government rules and regulation and they always pays the government the taxes and
tariffs while bringing in their raw materials from their Parent Company.
Internal Factor
Human Resource Management
Human resource management refers to the system that influences employee’s behavior,
attitudes and performance. The roles of the Human Resource in Coca-Cola Company are as
follows:
Change Agents
Choose a Strategic Partner
Expert Administration Body
Recruit Skilled and Efficient Employees
Technology
Like all other companies, for Coca-Cola, technology is the most important factor. Coca-
Cola uses very high-tech machines for its production. In 1993 a new plant with 500 BPM
capacities was established just beside the previous plant. Now the total production line capacity
of the company is app. 830 BPM. In 1987 the Abul Monem Company installed new H & K
bottling line along with and installed capacity of 450 BPM. The state of the art bottling plant with
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an installed capacity 600 BPM is the most modern plant in the country and is equipped with the
straight-line-technology from KHS German.
Management Levels
Coca-Cola Company has three management levels:
Strategic level: The Production Procedure, HRM, Store, Finance, Quality
Control is all under his control.
Technical Level: They are responsible for the administration, production, sales &
distribution of Coca-Cola products. Under production department they have
quality managers; under brand manager they have brand officer and marketing
officer.
Operational manager: They are responsible for the distribution of the products and
are responsible for al operational activities.
Financing Capacity
From the financial report of 2002 and 2003 we can conclude that the company has a very good
and sound financial capacity. Coca-Cola has a very high level of income. Moreover they are
successfully conducting their business all over the world.
Marketing Department
All their distribution & sales promotion falls under this department. Coca-Cola Company
has the marketing intelligence. They do a survey in all over the market situation and then they
decide what step they should take. During the off seasons the marketing managers takes some
promotional activities and uses few strategies to maintain their economic growth rate. The
promotional strategies they use are like giving gifts, coupons, scratch cards etc.
Brand Building Efforts
Relationship Building Effort
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As the world's largest bottler of liquid, nonalcoholic refreshment, we operate in markets with
dramatically different consumer preferences, product delivery systems, economic conditions, and
marketplace opportunities.
Despite these variables, Coca-Cola Enterprises meets the needs of local customers and
communities throughout its diverse territories with a strong commitment to local, community-
based marketing and superior marketplace execution. These concepts, combined with our firm
belief in a decentralized operating structure that places responsibility and accountability as close
as possible to the customer, clearly distinguishes Coca-Cola Enterprises from other bottlers.
Building Values
The people of Coca-Cola Enterprises are the heart and soul of our business, building
relationships with our customers and our consumers in the communities we serve. By putting
people first, we hope to create value for everyone touched by our Company.
We strive for an atmosphere in which all employees are comfortable being themselves - offering
ideas, making suggestions, expressing views, and appreciating our shared and unshared
differences - regardless of their age, race, gender, nationality, ethnicity, religion or sexual
orientation.
Target Market
From the above table we can see that Coca-Cola Company’s main target audience is the
teenage people (16-20). They aim their advertisement mostly at them. Then they target the age
group of 11-15. They are also quite a significant consumer of Coca-Cola products. They
hardly target the aged people. Their target is between the ranges of 11-35 years old population.
Consumption Rate
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Strategic gap
Strategic gap
Figure 1: Consumption rate of Coca-Cola & other brands
No matter how hot or "cool" the flavor feud becomes this summer; Coke won't be sweating it
too much. Coca-Cola up 30 Tk to 40 Tk, the world's largest beverage maker, is still
comfortably perched in its slot as the local market leader, according to Beverage Digest.
Currently market share of product Coca-Cola is 23%. Comparing to other beverages Coca-
Cola is the market leader product brand.
Strategic Group Map of competitors in the beverage industry
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Rev
enu
e
Market share
Figure 2: Strategic Group Map of competitors in the beverage industry
Products in adversely affected strategic groups may try to shift to a more favorably situated
group. Here in beverage industry entry barrier is low that’s why too much product are available.
Currently Coca-Cola, Pepsi, RC-cola, Virgin cola stands in same strategic group. Here
Coca-Cola is the leading product of the beverage market industry in both market share and
revenue generation. Pepsi has 2nd largest market share but its revenue generation is less than RC-
cola. RC-cola has low market share comparing Coca-Cola and Pepsi but revenue generation
is high. In Beverage industry upper 10, RC orange are the worst revenue generation product.
Mum mineral water has demand but that’s market share is also low comparing to Coca-Cola.
In this figure u see strategic gap. No company wants of reached their product in that position
because it is not possible low market share with high volume of revenue. On the other hand no
company wants for a product with high market share but low revenue generation.
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SWOT Analysis
Strengths
1. Patent
2. Own production plant
3. Research & Development
4. High market share
5. Brand image
Weaknesses
1. Do not sell on account
2. Less motivation down stream
3. Insufficient advertisement
4. Not skillful distributor
5. Over confidence on their product
Opportunities
1. High growth rate
2. Huge local market
3. Acceptance of pet bottles is higher than
4. bottles
5. Good relation with distribution channel
6. Good relation Govt.
Threats
1. Other existing company
2. Good taste of competitor
3. Political stability
4. Better professional promotion of other
5. competitor
Table 3: SWOT Analysis
Critical Success Factors
Strength
Patent
Patent is most important and powerful strength of Coca-Cola Company. It’s an intangible
asset for the company. Coca-Cola Company is a very well established group not only in
Bangladesh but also all through out the world. They have a strong brand image all over the world
and the same follows in Bangladesh. First half of the Coca-Cola Company is trade marked as
“Coca”, so nobody can use this name. Patent is their powerful strength because its carries their
image as one of the most reputed producers of beverage in the whole world.
Own production plant:
Coca-Cola Company has their own production plant in Bangladesh-Tabani Beverage
established their own production plant with the capacity of 250 BPM, and beside that they newly
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installed higher capacity of 500 BPM. So they don’t need to depend on others. They only import
the Syrup from the patent company & produce it for production. Another franchisee, Abdul
Monem Company Ltd. started bottling line with the capacity of 450 BPM. Furthermore, they
installed the most modern bottling plant capacity of 600 BPM from KHS German.
Research & Development:
They have well-established research & development department where they research over
their existing product concentration & try to develop it. They also do researching on different
taste of their products. They have highly qualified employees for their research & development
dept.
High market share:
They are the most prominent manufacturers among all the beverage company in Bangladesh.
They have higher market share than their competitors. Coca-Cola captures a market share of
26% where as the other products of Coca-Cola Company has very little share compared to it.
Their greatest rival in Bangladesh is RC-Cola, which has a market share of only 19%. This shows
that Coca-Cola Company has a high market share.
Brand image:
They have the most dominant brand name all over the world; they made their image for their
brand name “Coca-Cola”. Whenever people think about soft drinks, the first name that comes
into their mind is Coke. This shows how popular they are and how strong is their brand image.
Weakness
Don’t sell on account:
Coca-Cola Company doesn’t sell on account, whereas other companies like selling on
account to their dealers. For not selling on account their profit margin tends to go down. Also,
they are loosing their dealers and distributors. Other companies are attracting those distributors
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and as distribution channel is the only way that the company can use to reach its final consumers
they are facing serious problems.
Less motivation down stream:
They are very steady flow motivators for their product. They motivate but not so strictly, mean
not maintaining the time period……… [Need more]
Insufficient advertisement:
In our country, Coca-Cola does not have enough advertisement promotion. Thus their
competitors are professionally more advanced than them. Their customers are not properly
informed. They think that their brand name would always do the trick for them. Due to less
advertisement promotion they are behind their competitor. We hardly can find any advertisement
of Coca-Cola in villages. So, many of the customers of that parts of Bangladesh are not
having Coca-Cola.
Not skillful village distributor:
Coca-Cola does not have a good and skillful village distributor. Coca-Cola products
can hardly be seen in village areas. Their advertisements are also hardly seen in those areas. The
distributors are not promoting Coca-Cola products in villages, which their competitors are.
Their distributors do not have outlets or any other such facilities, which could be promotional for
the company’s products.
Overconfidence in their product:
Just from the point mentioned above we can know that the company has overconfidence over
their product. As they are the first beverage producers in the world and has a very strong brand
image and patent, the company thinks that they will be able to sell their products without too any
promotional activities. Coca-Cola does not have too much advertisement and are also not
willing to sell their products on account to their dealers. As such they do not have that good
distribution channel outside Dhaka city. They think people would buy their products because of
its brand name.
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Opportunity
High growth rate:
From its very inception in Bangladesh, Coca-Cola has a very potential market in our
country because of its international reputation, quality and high acceptance among people of all
ages. Coca-Cola does not have that good distribution channel outside Dhaka but now they are
trying to get hold of better distributors and thus the village people can have access to their
products. So it can be seen that in the near future they can have even a greater market share than
today.
Huge local market:
The selling activities of Coca-Cola are very high in the local market than other existing
company. They capture the whole market by giving the best quality to their customer and dealing
professionally.
Acceptance of Pet bottles:
Coca-Cola launched attractive pet bottles, which is accepted by the entire customer, as it
is portable and people are willing to buy these pet bottles rather than the bottles. So their effort to
launch pet bottles is successful.
Good relationship with the distribution channel:
Coca-Cola Company and its distributor have a very good relationship with each other.
They supply their product according to their needs. They promote their distribution channel
through discount & allowances. They serve their dealers on time.
Good relation with the Government:
Good relationship with the Govt. is very important for any company to run its business.
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Threats
Other existing company:
The other rising companies are becoming threat for Coca-Cola. Opening of one company
decreases 1% market share each year. Today RC Cola is a very reputed beverage producer and
with their attractive advertisements and distribution channels they are at this moment in a better
position then Coca-Cola and it is a big threat to them. Not only RC Cola but Pepsi, Virgin
and euro lemon are also in this business. This means that consumers have more options to choose.
Good taste of competitors:
The other beverage company’s product is also coming up with the different taste like;
mountain dew, URO cola with lemon, Fizz- UP, Pepsi has but Coca-Cola Company does not
have any product like that in our country. So that it’s been a great threat for Coca-Cola.
Political instability:
Like all other companies Coca-Cola also faces a lot of problems regarding the political
situation of our country. The political instability creates a lot of problems in the production of
goods. Due to hartals, the transportation of their products is affected a lot.
Better professional promotion of competitor:
Competitors are becoming very professional with their advertising. RC Cola has designed a
very attractive advertisement. They are using all well-known models like Nobel and Reshmi, who
is an Indian model, for heir advertisements. Not only RC-Cola but also other beverage producers
are using models and jingles for their advertisements. Coca-Cola on the other hand does not
have that many advertisements an as such is being threatened by its competitors. There is a
possibility that their competitors would capture greater market share through advertisements.
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Maslow’s Hierarchy of Needs
In 1943, Abraham Maslow first published his famous “Hierarchy of Needs” to explain what
energizes and directs human behavior. It is no accident that very successful brands, such as
Coke, appeal too many of Maslow’s deficiency and growth needs and that these needs are linked
to powerful emotions:
Physiological Needs (Coca-Cola quenches thirst and hunger. It is”
delicious”& “refreshing.”)
Safety/Security Needs (Coca-Cola is safe to drink worldwide. It
is unchanging: “Classic Coca-Cola.”)
Belongingness Needs (You are part of a large group of people who
love Coca-Cola.)
Esteem Needs (Coca-Cola is recognized as a premium soft drink
worldwide. It also call to mind memories of “special times and places.”)
Aesthetic Needs (All Coke ads and designs have a sense of order and
beauty.)
Self-actualization Needs (On the Coca-Cola web site, there are
many stories on how
Coca-Cola has deeply affected people’s lives)
Marketing Mix
Product
Our selected product is Coca-Cola. Coca-Cola has different sizes. They have 1 liter
glass bottle as well pet bottle. Coca-Cola also has 175 ml and 250ml glass bottles. In addition,
they also have 1.5 liter of pet bottle and in the recent past they introduced into the market 2 liter
pet bottle Coca-Cola. It has also 250ml of can Coca-Cola.
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What's in a Coca-cola???Carbonated Water
High Fructose Corn Syrup
Caramel Color
Phosphoric Acid
Natural Flavors
Caffeine
Price
The retail price of the beverage products are given below:
Product Item Quantity per pack Price
Coca-Cola
250 ml. 500 ml1000 ml. (Pet)1500 ml2250 ml
12.00 Tk20.00 Tk40.00 Tk50.00 Tk65.00 Tk
Sprite
250 ml. 500 ml1000 ml. (Pet)1500 ml2250 ml
12.00 Tk20.00 Tk40.00 Tk50.00 Tk65.00 Tk
Fanta 250 ml. 12.00 Tk
RC- cola
250 ml. 500 ml1000 ml. (Pet)1500 ml
10.00 Tk18.00 Tk35.00 Tk45.00 Tk
Pepsi
250 ml. 500 ml1000 ml. (Pet)1500 ml2250 ml
12.00 Tk20.00 Tk40.00 Tk50.00 Tk65.00 Tk
7 up 250 ml. 500 ml
12.00 Tk20.00 Tk
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1000 ml. (Pet)1500 ml2250 ml
40.00 Tk50.00 Tk65.00 Tk
Mum500 ml1000 ml
10.00 Tk20.00 Tk
Sezan juice 250 ml 15.00 Tk
Pran juice 250 ml 12.00 Tk
Table 4: Source [Tabani beverage Ltd]
Distribution Channel
Figure 3: Distribution Channel
The company will establish an extensive distribution channel for all brand of coca-cola
company to make it available throughout the country. It will build six distribution centers (Agent)
in the six divisions of Bangladesh: Dhaka, Chittagong, Sylhet, Rajshahi, Khulna, and Barishal.
From these distribution centers, they will supply the coca-cola & other brands to different
districts dealers. From dealers, the sales representatives will supply retail shops (small and mega)
on the basis of their demand. The small traders will purchase Coca-Cola directly from the dealers.
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Manufacture Agent Dealers Retailer
Consumer
Promotion
Promotional activities of Coca-Cola
Promotion means activities that communicate the merits of the product and persuade target
customers to buy it. According to Coca-Cola promotion is one of the major tools of
marketing. A good way of promoting a product not only helps to influence and motivate people to
buy it but also give a good impression about a company and it products.
Sales Promotion
Sales promotion includes marketing activities-other than personal selling, advertising, and public
relations- that stimulates consumers, trade and dealer effectiveness. Sales promotion can be
aimed at end consumers, trade customers, or company’s employees. Coca-Cola offers all of
these sales promotions every year for various purposes. Coca-Cola s sales promotion tools
include free samples.
Sales promotion is generally a short run tool used to stimulate immediate increase in demand.
Frequently Coca-Cola uses sales promotion to improve the effectiveness of their promotion mix
ingredients, especially advertising. Research shows that sales promotion complements advertising
by yielding faster sales responses.
Advertising
Advertising is a form of impersonal, one-way mass communication paid for the sponsor. Many
different media may transmit it. Examples include television, radio, newspapers, magazines,
books, billboards etc. Coca-Cola does advertise by these media as well. The Coca-
Cola advertising usually follows a campaign process that consists of five phases:
Determining the advertising objectives
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Setting the campaign budget
Determining the message to be transmitted to the target market
Selecting the message vehicle and
Evaluating the campaign
Advertising is one of the most important promotional tools among the promotion mix of a
company, which is used in order to convey their message along with visual effect. Coca-
Cola is number one global brand in soft drinks items. So it also uses media advertising in order
to capture full market coverage through out the world. In case of any sort of advertising campaign
or slogan i.e. the central theme of ad is the most important part advertisement along with its
storyboard. In fact, ad campaign communicates the product message to its target customers.
Public Relation
Concerned about the public images, Coca-Cola often spend large sum of money to build a
positive consumer image. Public relations are the marketing function that:-
Evaluates public attitudes
Identifies the policies and procedures of the company and
Executes a program of action to earn public understanding and acceptance.
A solid public relations program can generate favorable publicity also. Thus Coca-Cola now
spends huge money in the game field such as football and cricket, Sponsoring for charity shows
etc. Organizing the ‘Asian Test Cricket Championship’, Coca-Cola Companies of Bangladesh
paid Tk4, 000,000 approximate only for the final match of this tournament.
Strategy Alternatives
Maintain existing strategies
Consolidate resources to focus on the soft drink market and divest of other
businesses such as fruit drinks
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Leverage brand equity and financial resources to accelerate global market
penetration with a view toward long-term profits
Strategy Recommendations
Focus on global market expansion
Leverage brand equity and financial resources to dominate the global market
Consider divesting of fruit drink lines and then reallocating resources to
dominate the global soft drink market
Brand Element Choice Criteria
Exorability
Brand Element Criterion
Brand Name Coca-Cola can be easily recalled and recognized
Slogans “Coca-Cola Enjoy” “Always Coca-Cola” “Pio Saar Uthake”
“Thanda Matlab Coca-Cola” “Dil Thanda to Dunia Thanda”
“Thandar naam Coca-Cola” can be chosen to enhance brand recall
and recognition
Jingles Jingle can be also memorable
Package Attractive color with different packaging which contain all the
information to make the package memorable one
Logos & Symbol Unique logo and style of it by using red and white color that creates
attraction to it’s consumers mind
Table 5: Source [Tabani beverage Ltd]
Meaningfulness
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Brand Element Criterion
Brand Name Name of Coca-Cola has come from coco leaves and cola nut.
Slogan Its slogan has excellent meaning which can convey a message to
build association
Jingle Its jingle carries distinctive message to its customer
Package Its packaging color convey the meaning of joy and pleasure
Logo & Symbol Its logo & symbol is unique and different from its competitor
Table 6: Source [Tabani beverage Ltd]
Transferability
Brand Element Criterion
Brand Name Coca-Cola is globally accepted Brand
Slogan Its Slogan is easily acceptable through out the world
Jingle Jingle is transferable according to the culture of the host country
Package Packaging color and style is attractive through out the world
Logo & Symbol Logo and Symbol is attractive
Table 7: Source [Tabani beverage Ltd]
Adaptability
Brand Elements Criterion
Brand Name Brand name is flexible and can be easier to changed or
developed overtime
Slogans The slogan is easily modifiable when necessary
Jingles Jingles are adapted while operating globally
Package Packaging can be redesigned according to situational demand
Logo & Symbol Logo & symbol can be easily recognized
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Table 8: Source [Tabani beverage Ltd]
Protect ability
Brand Elements Criterion
Brand Name The name Coke is legally protected.
Slogans Its slogan is also legally protected.
Jingles Its jingles are unique, so no body can copy that.
Package All TMs & copy rights are owned by Coca-Cola company
Logo & Symbol They got the IP right.
Table 9: Source [Tabani beverage Ltd]
Marketing research
General objective:
The general objective of this report is to identify the steps and methodology of professional
business reports.
Specific research:
The specific objective of this report is to know their performance & position related to their
competitor. This helps to find out the relation with the distribution channel and also with their
customer. Its helps to prepare a real business report in future
Data collection:
We used to methods to collect the data:
Secondary data: We have collected the data from catalog and brochure of the
coca-cola company. External data that we have collected from Internet are
given on the net.
Primary data: Primary data are directly collected from the face-to-face
interview.
Bibliography:
Mission statement is made with the help of the given data and from the
Internet source.
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Executive summary is written from the catalog.
Financial data is downloaded from Internet.
Situation analysis is written from the face-to-face interview (noted) &
catalog.
SWOT analysis is given from the face-to-face interview.
Slogan is collected from the TV.
Coca cola logo is downloaded from the Internet.
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