1. HAMDARD UNIVERSITY
Pursuit of Excellence
FINAL REPORT
COCA COLA PAKISTAN
MARKETING MANAGEMENT
HAMDARD UNIVERSITY CITY CAMPUS 1
HAMDARD INSTITUTE OF MANAGEMENT SCIENCES
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2. Name of Group Member
Rehan Ahmed
Sadaf Farooq
Submitted by: Sir Syed Faiz-ul-Ullah Jawad
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3. Acknowledgement
After in-depth study of Marketing Management, we are finally
succeeded to complete the progress report of Marketing Management on Coca
Cola Pakistan
Mr. Sir Syed Faiz-ul-Ullah Jawad being the instructor of this particular
course remained very cooperative and helpful throughout the term to give
guidelines and make rational decisions. We are grateful to him for his kind
supervision.
Each of our group members felt his responsibility to accomplish task of
his part adequately. This collaboration resulted in the successful Marketing
Management progress report on Coca Cola Pakistan.
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4. TABLE OF CONTENT
1. Executive Summary ………………………………………… 06
2. Company Introduction……………………………………… 07
3. Vision Statement…………………………………………….. 08
Mission Statement………………………………………… 08
Shared Values…………………………………………......... 09
Objective of Coca Cola Pakistan…………………………. 10
Goals of Coca Cola………………………………………... 10
Marketing Objectives……………………………………... 10
4. Current Marketing Situation……………………………..…. 13
a) Marketing Description……………………………….. 13
b) Benefits and Product features……………………….. 14
c) Product Review………………………………………... 15
d) Competitive Review…………………………………… 15
5. SWOT Analysis……………………………………………….. 18
6. Marketing Strategy………………………………………….. 21
a) Positioning……………………………………………. 21
b) Product Strategy…………………………………….. 22
c) Pricing Strategy……………………………………… 24
d) Distribution Strategy……………….…………….…. 27
e) Marketing Communication Strategy……………… 28
f) Marketing Research………………………………… 30
7. Action Program……………………………………………… 31
8. Budget………………………………………………………… 31
9. Controls……………………………………………………… 32
10. Bibliography……………………………………………….. 33
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5. Coke
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6. 1. EXECUTIVE SUMMARY
Role of Marketing Department in the improvement process continues to be at
the vanguard of strategy contest not only in this part of the world (Pakistan) but
also in other countries. Most of the specifics about promoting brands have been
renowned in the entire world. The competitive allege for marketing department
are infinite, containing promotions and strategies that make possible for them
to survive in persistently varying environment (Such as technology) of world.
By applying international marketing concepts the company can acquire
multinational status with a reputed brands and the company is globally
recognized for the quality and standard.
Coca-Cola‟s headquarter is in USA and there are more than 200 countries in
which it is acting as a host company. In Pakistan there are 9 plants and over
1800 employees, 8 plants are functional and three plants in Lahore, Gujranwala
and Rahimyar Khan have achieved the Quality system award.
Coca-cola with its 450 brands is claiming to be the world‟s best non-alcoholic
beverage maker and is yet proving his claim by having 63% share in the world
market and they are fulfilling their promise to maintain a standard and proving
to become a quality symbol. And their aim is to serve the nation by making
only non-alcoholic drinks and to give the world a cool and fresh treat.
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7. 3. Company Introduction
The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and
Sprite are the brands with whom Coca-Cola is operating in Pakistan. The Coca-
Cola System in Pakistan operates through eight bottlers, four of which are
majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The
CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad,
Rahim Yar Khan, Multan and Lahore. The Coca-Cola System in Pakistan
serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan has
nearly 3,000 people working constantly for the company. During the last two
years, The Coca-Cola Company in Pakistan has invested over $130 million
(U.S) and coke has successfully provided 56 years of dedicated service to its
customers in Pakistan. Since the beginning of Coke Company the firm has been
continuously changing its slogans and that‟s a very creative idea to get the
attention of the customers.
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. Coca Cola Company offers the brand range as Coca Cola,
Diet Coke, Fanta, and Sprite in Pakistan.
➢ Coca-Cola introduced in Pakistan 1953
➢ Diet Coke 2001
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8. 3. VISION STATEMENT
Our vision guides every aspect of our business by describing what we need to
accomplish in order to continue achieving sustainable growth.
➢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 brands that
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.
MISSION STATEMENT
Mission statement is a statement of organization‟s purposes that what it wants
to accomplish. In order to achieve mission of increasing market share and
maintaining good relations with our customers all over the world, we wish to
create value for all the constraints we serve, including our consumers, our
bottlers, and our communities. The Coca Cola Company creates value by
executing business strategy guided by four key beliefs:
➢Customer is king; Customer demand drives everything we do.
➢Brand Coca Cola is the core of our business.
➢We will serve consumers a broad selection of the nonalcoholic ready-to-
drink beverages they want to drink throughout the day.
➢We will be the best marketers in the world.
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9. Everything we do is inspired by our enduring Mission:
➢To Refresh the World...in body, mind, and spirit.
➢To Inspire Moments of Optimism...through our brands and our actions.
➢To Create Value and Make a Difference...everywhere we engage.
SHARED VALUES
Our 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
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10. OBJECTIVE OF COCA COLA
The company has sales based objective .Everything else (marketing plan,
advertising plan, production etc.) is derived from this objective.
Currently the company„s objective is to
“Increase the volume of sales up to the maximum level as much as possible
during the current fiscal year.”
The company sets its objective keeping in view the past performance,
Historical trends, current market position, economic condition, macro
environment and micro environment factors, social values, market size and
growth rate ,future expectations and predictions.
GOALS OF COCA COLA
All CCBPL plants setup their own goal to achieve the objective.
The company goal is
“To increase sales volume and gain market leadership in Lahore.”
MARKETING OBJECTIVES
The objective is the starting point of the marketing plan. Objectives should
seek to answer the question 'Where do we want to go?'. The purposes of
objectives include:
To enable a company to control its marketing plan.
To help to motivate individuals and teams to reach a common goal.
To provide an agreed, consistent focus for all functions of an
organization.
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11. A) MARKET SHARE OBJECTIVES
To gain 60% of the market for soft drinks industry
B) PROFITABILITY OBJECTIVES
To achieve a 20% return on capital employed by August 2007
C) PROMOTIONAL OBJECTIVES
To increase awareness of the product on the market.
D) OBJECTIVES FOR SURVIVAL
To survive the current market war between competitors.
E) OBJECTIVES FOR GROWTH
To increase the size of the worldwide Coca Cola enterprise by 10%.
PROMISE OF COKE
The basic proposition of our business is simple, solid and timeless. When we
bring refreshment, value, joy and fun to our stakeholders, then we successfully
nurture and protect our brands, particularly Coca-Cola. That is the key to
fulfilling our ultimate obligation to provide consistently attractive returns to the
owners of our business.
TARGET MARKET
Coke‟s commercials basically based on young generations, so, the young
generation is the target market of Coke because they want to represent Coke
with the youth and energy but they also consider about the old people they take
then as a co-target market.
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12. MAJOR SEGMENTS
Major segments are basically those people who take this drink daily and those
areas where the demands are higher than the other areas. There are so many
people who take this drink daily and those people who take weekly and those
who take less often are always there as well. So, their basic segments are those
people who take this drink regularly.
FACTORS EFFECTING SALES
There are so many factors, which affects the sale of coke. Here we are
discussing three major factors which effects coke.
Per capita income
Competitors
Weather
PER CAPITA INCOME
First we will discuss about “Per capita income”. This is major factor that
affects the sale of this soft drink. Because which every passing year budgets are
becoming very strict and tight in order to purchase things. So the disposable
incomes of the people are coming down. They spend heavily on rents, utilities,
and education and basic necessities and after that when they get extra money
they think about this soft drink .So the decreasing per capita income effects
badly in selling and production of this soft drink.
And to get through with this difficulty there is need to increase the level of per
capita income of Pakistan because it is much lesser than the rest of the
countries.
COMPETITORS
Coke‟s major competitor is “PEPSI” and there is no hesitation to say these
because everyone knows that and all the other cold drinks and water, coffee,
tea are the competitors.
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13. WEATHER
Weather is the third major factor in effecting the Coke‟s selling. This is
underdeveloped market so the coke‟s consumption in summers is 60% and in
winters is 40%.
4. CURRENT MARKETING SITUATION
Beverages are a major consumer able item and there is a huge demand and
potential in this market particularly the nonalcoholic ready to drink soft drink.
The nonalcoholic ready to drink beverage has grown year on year and as a
result, the pie is growing bigger every year.
a) 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 internal and external
environment and their respective influences will be decisive traits in relation to
Coke‟s success and survival in the soft drink industry.
INTERNAL BUSINESS ENVIRONMENT
The internal business environment and its influence is that which is to some
extent within the business‟s 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 must conduct continual
appraisals of the business‟s 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 whole economy. 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 Coca Cola‟s products on the market and the reception they receive
from the consumers.
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14. b) BENEFITS AND PRODUCT
FEATURES
BENEFITS
Strive TO OFFER beverages FOR EVERY LIFESTYLE AND
OCCATION WHILE THE PROVIDING QUALITY that consumers trust.
Attributes must be translated into functional and emotional benefits.
FEATURES
Coke is having difference in taste than Pepsi due to having difference in
ingredients.
Coke has maintained global leadership in soft drink industry.
Coke is trying to focus on worldwide expansion of the cola market.
Coke must try to focus on its relationships with bottling subsidiaries.
Coke is facing a major challenge in developing countries that their
regional bottlers may not have the financial resources to continue
expansion.
The brands are trying to create world-wide economic development and
population growth to sustain sales and profits
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15. c) PRODUCT REVIEW
Coca-Cola has, and still, continued to reign in the consumers market stunning
other companies with their artistic and viewer-friendly commercials
Coke is having difference in taste
Coke has maintained global leadership in soft drink industry
Coke is trying to focus on worldwide expansion of the cola market
d) Competitive Review
BUYERS/CUSTOMERS
Coca-Cola has three major and large customers in the market, food street
60,000 cerates /year, MacDonald‟s 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.
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/COMPETITORS
DIRECT 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 over each other customers.
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16. INDIRECT COMPETITORS
These include Nestle and Shezan juices that 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 doesn‟t matter
and they don‟t 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.
Anyhow Coke does have a quality check procedures in its plants to ensure that
they get the right kind of ingredients from suppliers.
NEW ENTRANTS
Coca-Cola is not afraid of competing .it doesn‟t 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.
COMPETITIVE ADVANTAGES
BRAND NAME, SYMBOL, BOTTLE SHAPE.
Brand name, symbol and bottle shape are distinctive features of Coca-Cola
which give it an edge over its competitors. (Even without name people can
easily identify Coke‟s, fanta‟s, and sprite‟s bottle from crowd.) They cannot be
copied or imitated by others.
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17. DIET COKE
Coca-Cola has successfully addressed to the needs of its health conscious
overweight customers with the launch of diet Coke. Its competitor has yet to
come up with and counter diet Coke properly
SNATCHING AWAY CUSTOMERS
In the market Coke has been able to snatch large customers like Food Street,
Pakistan Railways, McDonald‟s, 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.
THREATS AND OPPORTUNITIES FOR PRICE
OPPORTUNITIES
If Coke is considered a luxury product. Then there is the tax rate system
15% - sales tax
20% - excise duty
27% - goes to government
03% - In making Budget
After paying all these taxes coke has to pay electricity charges. We have to
spend on distributions. After paying all these expenses Coke‟s margin squeezed
and consumers have to pay for increasing tariffs.
These are the opportunities through which we can increase the price and can
get profits.
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18. THREATS
There are much more threats in increasing prices. Because same problem of
substitute. If Coke increases the price let‟s say 1 rupee. Then people definitely
won‟t go for coke. They have the best substitute of Coke that is Pepsi. So these
are the threats in increasing prices. Coke will lose the margin of its profit and
can face loss.
5. SWOT ANALYSIS
SWOT Analysis is a strategic planning tool used to evaluate the Strengths,
Weaknesses, Opportunities and Threats inside a company, project, or a
business venture. It involves identifying the internal and external factors that
are favorable/ unfavorable for business to
Succeed.
INDUSTRIAL SWOT ANALYSIS
STRENGTHS
The soft drinks market in Pakistan enjoyed dynamic growth over the review
period in both volume and current value terms. Carbonates dominate the
market in both the on-trade and Off-trade with the lion‟s share of sales.
Carbonates have become part of the culture in Pakistan and multinational
companies have maintained their standards over the years to provide consumers
with high quality carbonated drinks. Off-trade sales of carbonates are higher
than those of the on-trade but both achieved strong growth over the review
period.
WEAKNESSES
Liquid concentrates and power concentrates are both seasonal categories in the
market and their sales peak in the summer in Pakistan. Both Rooh Afza and
Jam-e-Shirin are traditional sandalwood drinks in Pakistan which are highly
regarded by consumers. These drinks can be found in every home in Pakistan,
especially in rural areas throughout the summer and are the mainstay of liquid
concentrates.
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19. OPPORTUNITIES
The Government of Pakistan has reduced excise taxes to encourage soft drinks
manufacturers and importers. The Government also reduced other applicable
taxes to promise more profit not only for soft drink manufacturers already in
the market but also to attract potential soft drinks manufacturers to invest in
Pakistan. Tax reductions proved extremely beneficial to the soft drinks market
in Pakistan and certainly encouraged and attracted multinational companies to
invest in the country‟s soft drinks industry. The government also decided to tax
the beverage industry on capacity of production rather than on actual
production and that brave move encouraged soft drinks manufacturers to
maximize production and reduce prices.
THREATS
Increasing health and hygiene awareness among Pakistanis has greatly
increased sales of fruit/vegetable juice products. Both the government and the
media have started health awareness campaigns to make Pakistanis realize that
consumption of fruit/vegetable juice is as essential as eating food.
Fruit/vegetable juices are doing very well in both urban and rural areas. On the
other hand, health and hygiene awareness has also led to increased sales of
bottled water in Pakistan. Previously bottled water was targeted on at major
cities where consumers are more health-conscious and aware of the difference
between bottled water and tap water. Nowadays, health conscious rural
inhabitants also drink bottled water due to health concerns.
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20. SWOT ANALYSIS OF COCA COLA
INTERNAL
STRENGTHS WEAKNESSES
Popularity Word of mouth
Well Known Lack of popularity of many
Coca Cola‟s brands
Branding obvious and easily Most unknown and rarely seen
recognized
A lot of finance Result of low profile or non-
existent advertising.
Customer loyalty Health issues
International Trade
EXTERNAL
Changing health- Many Successful brands to
consciousness attitude pursue
Legal issues Advertise its less popular
products
Buy out competition
Health ministers
More brand recognition
Competition (Pepsi)
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21. 6. MARKETING STRATEGY
Our local marketing strategy enables Coke to listen to all the voices around the
world asking for beverages that span the entire spectrum of tastes and
occasions. What people want in a beverage is a reflection of which they are,
where they live, how they work and play, and how they relax and recharge.
Whether you're a student in the United States enjoying a refreshing Coca-Cola,
a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a
couple in Korea buying bottled water after a run together, we're there for you.
We are determined not only to make great drinks, but also to contribute to
communities around the world through our commitments to education, health,
wellness, and diversity.
Coke strives to be a good neighbor, consistently shaping our business decisions
to improve the quality of life in the communities in which we do business. It's a
special thing to have billions of friends around the world, and we never forget
it.
a) MARKET POSITIONING
Once a business has decided which segments of the market it will compete in,
developed a clear picture of its target market and defined its product, the
positioning strategy can be developed. Positioning is the process of creating,
the image the product holds in the mind of consumers, relative to competing
products. Coca Cola and Franklins both make soft drinks; although Franklins
may try to compete they will still be seen as down market from Coca Cola.
Positioning helps customers understand what is unique about the products
when compared with the competition. Coca Cola plan to further create
positions that will give their products the greatest advantage in their target
markets. Coca Cola has been positioned based on the process of positioning by
direct comparison and have positioned their products to benefit their target
market. Most people create an image of a product by comparing it to another
product, thus evident through the famous battles between Coca-Cola and Pepsi
products.
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22. b) PRODUCT STRATEGY OF COCA COLA
Product: Anything that can be offered to a market for attention, acquisition,
use or consumption that might satisfy a want or need.
LEVELS OF COKE AS A PRODUCT
CORE PRODUCT
Core benefit is that it fulfills the thirst.
ACTUAL PRODUCT
Design: Pet bottles, returnable glass bottles, economy packs.
Quality: Quality differs with respect to country for example. Coca-Cola
Can quality that is available in Middle East is certainly different as
compared to Coke Can available in Pakistan.
PRODUCT CLASSIFICATIONS
Coke is categorized as a convenience product, because the purchasing rate is
very high and this is the product that is bought very frequently.
BRANDING
BRAND EQUITY
As far as coke is concerned brand equity for the customers is very high. People
are highly brand loyal.
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23. BRAND STRATEGY
The following is the brand strategy of Coke
➢ LINE EXTENSION
Line extension occurs when a company introduces additional items in a given
product category under the same brand name. For example if Coke introduces
new flavors and package size, it will be considered as line extension.
➢ BRAND EXTENSION
Brand extension means using a successful brand name let‟s say Coca-Cola and
then launching new product for example cherry coke. This was an example of
brand extension.
➢ MULTI-BRANDING
It means introducing additional brands in the same category. For example
Coca-Cola not only introduced coke as a brand but also sprite and Fanta.
➢DIVERSIFICATION
It means introducing new product with the new brand name. It means
diversification but this is something Coca-Cola has not adopted for as yet.
PRODUCT LINE DECISIONS
PRODUCT LINE LENGTH
It means the number of products that company is offering. For example Coke,
Diet Coke, Fanta, Sprite etc.
PRODUCT LINE FILLING
Product line filling means that earlier when Coca-Cola started it had only one
flavor of coke available and that is classic coke but with the passage of time
company filled the product line by adding diet coke, diet lemon etc.
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24. c) PRICING STRATEGY
The amount of money charged for a product or service, or sums of the values
that consumers exchange for the benefits of having or using the product or
services. As price gives us the profit so this P is very important for business
price of product should be that which gives maximum benefit to the company
and which gives maximum satisfaction 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 otherwise nobody 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 and consumers
think that they save a lot of money from this.
PRICES OF DIFFERENT BOTTLES
Size of Coca Cola Price of Coca Cola (Rs.)
Regular bottle 12
Non returnable or disposable bottle 25
1.5 liter bottle 60
2.25 liter bottle 70
Coca Cola can 30
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25. COMPETITION BASED PRICING APPROACH
Coca Cola has intense competition with neither Pepsi so its pricing can‟t
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 shift to the Pepsi Cola and on the other hand if the price of Coca
Cola decreases people might get the impression that its quality is also low.
PROMOTIONAL PRICING POLICY
Coca Cola has offered promotional prices very frequently. Especially on some
occasion Coca Cola reduces its rates like in Ramzan Coca Cola reduces its rate
unto 5 Rupees on 1.5 liter bottle.
MARKET PENETRATION PRICING POLICY
Prices in beverage industry are determined by the consumer. In an economy
like that of Pakistan, consumers tend to switch towards a low priced product.
Coca Cola‟s objective is to target every consumer of the country so Coca Cola
has to set its prices at such a level which no one can offer to its consumers.
That is why Coca Cola charges the same prices as are being charged by its
competitors. Otherwise, consumers may go for Pepsi Cola in case of
availability of Coca Cola at relatively high price.
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:
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26. QUALITY DISCOUNT
Following are discounts offered by Coca Cola.
➢ 1/10 DISCOUNT
I.e. one case of Coca Cola is free on buying 10 cases of Coca Cola at one time.
➢ 2/20 DISCOUNT
I.e. two cases of Coca Cola are free on buying 20 cases of Coca Cola at one
time.
SEASONAL DISCOUNT
Following are discounts offered by Coca Cola.
Coca Cola also offers seasonal discounts schemes by reducing price in
Ramadan and on Eid. Coca Cola also offers trade in allowance for retailers.
➢ 3 B – F DISCOUNT
I.e. sometimes, especially in the off-season duration, in order to increase the
sale of Fanta and Sprite, 3-BF discount is given (i.e.) 3 bottles free on
purchasing every case of Fanta and Sprite.
INCENTIVES
Mainly 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.
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27. INCENTIVE TO DEALERS
The first, second and third best dealers of the year are awarded.
CREDIT
There is no credit system in the beverage industry. Every single bottle is sold
on the cash basis.
SPECIAL OFFERS
Coca Cola gives special offers to consumers on special occasions like Ramadan
and Eid days instead of decreasing the price of the products, some special
packs like Pakkora Mix, Chat Massala, or Free Drinks with Liter Bottles are
offered.
d) DISTRIBUTION CHANNELS
Coca Cola Company makes two types of selling
➢Direct selling
➢Indirect selling
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.
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28. 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
E) MARKETING COMMUNICATION
(ADVERTISEMENT) STRATEGY
The 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 by entertainment 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.
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.
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29. 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 India
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.
Coca Cola Company use different mediums
➢Print media
➢Pos material
➢TV commercial
➢Billboards and holdings
PRINT MEDIA
They often use print media for advertisement. They have a separate department
for print media.
POS (POINT OF SALE) MATERIAL
POS material mean point of sale material this includes: posters and stickers that
are displayed in the stores and in different areas.
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30. 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.
F) MARKETING RESEARCH
Coca Cola marketing team focuses not only on the results as well as the tasks
assigned.
They firmly believe if you want to establish a clear image in the minds
of consumers, you first need a clear image in your own mind.
Since the major competitor is Pepsi Co. so Coca Cola Intl has focused
on neutralizing the competition.
Kill the category: If Pepsi Co. launched Crystal Pepsi then Coca Cola
Intl launched Diet Coke.
The Coca Cola marketing team maintained their focus strongly on the
product itself. When they changed bottle shape, many people started
buying bottles instead of the drink itself
The Coca Cola team learnt from everything. Even if a customer said
“no”, they focused on “why” did he say no and then found out ways on
“how” to solve that issue.
Formula for positioning success:
Define
Over deliver
Claim
Succeed
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31. They specified the criteria for each product offered because if you don‟t
specify the criteria for choosing, consumers will develop their own,
which is dangerous.
After thorough research, we come to the conclusion that the marketing strategy
of Coca Cola is working for them and the product is gaining popularity among
youth day-by-day.
7. ACTION PROGRAM
T o achieve the business objectives coca cola adopted the following strategies
Coke Studio- Coke Studio is a musical program sponsored by coca cola
and telecasted on popular channels in Pakistan
Coke Blitz- In coke blitz coca cola company’s employees worked as a
team and visited their retailers and helped them in cleaning of
refrigerators and placed them at easily reachable position.
Sprite Mad about TV- In this promotional activity a media team visited
the universities all over Pakistan in search of talent under the coca cola
company name to promote its product.
Ramadan offer- In month of Ramadan special discounts are given to
increase the sales
8. BUDGET
HOW COKE DETERMINE THE YEARLY BUDGET
Coke determines its yearly budget by the
➢Sales volume
➢Profitability
➢Target volume
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32. SALES VOLUME
Coke determines its yearly budget through the sales volume. They first
concentrate on the thing is “what is the condition of their sales?” if the
condition is good of their sales then they definitely increase their production
and sales volume. Otherwise they concentrate on their old strategies.
PROFITABILITY
The second thing through which they determines budget is the “profit” .if they r
getting profits with the high margin, then they definitely want to increase their
profits in the next coming year. Every organization runs on the basis of getting
high profits. No organization wants to face Loss in their business. To get profit
is the first priority of the Coke.
TARGET VOLUME
To run the business every industry has some targets, which they want to
achieve in a specific time period. If industry achieves those goals in that period
then for the coming year it increases the volume of the target.
So Coke Follow the same thing it has also some goals and targets to achieve in
the given time period. When they succeed to achieve that target then they
increase their target volume in the next year.
9. CONTROLS
Coca Cola Intl. has controlled sales via:
Geographic Market Organization
Opening plant in various countries (in Pakistan they have 10 plants) so
as to reduce taxes.
They have invested $5.6 million in their R&D facility to maintain
Product Quality Control.
Their primary concern right now is penetrating into the Pakistani market
via strong attacking techniques whereby maintaining defense strategy
against Pepsi Co.
The overall strategic control is implemented in all plants and factories
throughout the 200 countries which Coca Cola proudly serves.
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33. 7. BIBLIOGRAPHY
www.scribd.com
www.fliiby.com
www.slideshare.net
www.cocacola.com
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