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2. MARKET ANALYSIS OF COKE
PEST, SWOT, MARKET
ENVIRONMENT ANALYSIS
LOGO

3. Group Members
1. Muhammad Ghayas Yousafzai
2. Raja Murad Saqib
3. Muhammad Ali Bhatti
BBA &Bsc –A/F

4. About Coke

5. Background
 Coke was established in 1886 by John S. Pemberton in Atlanta,
Georgia.
 Bottling business began in 1899.
 Non-alcoholic beverage
 November 21, 1986 price of $5.50 a share.
 Unit sales were 880,000 in 1986.
 In 1992 unit case sales had climbed to 1.4 billion, and total
revenues were $5 billion
 In 2009, they sold more than 600 million cases globally
Know the most recognized word on planet after ‘OK’

6. John S. Pembertson Declaration

7. Coke Profile
Type Soft Drink (Cola)
Manufacturer The Coca- Cola Company
Founder (s) John S. Pemberton
Country of Origin United States
Introduced 1886
Area Served Over 200 countries
Brands More then 500
Flavors Cola, Cola Green Tea, Cola Lemon, Cola Lemon
Lime, Cola Lime, Cola Orange and Cola Raspberry.
Employees 92,400
Servings per Day 1.6 Billion
Website www.coca-cola.com

8. Coca Cola Pakistan
 Started operating in Pakistan in 1953.
 CCBP (Coca Cola Beverages Pakistan Limited).
 Plants located in Karachi, Hyderabad, Sialkot,
Gujranwala, Faisalabad, Rahimyar Khan, Multan
and Lahore.
 Two independent plants in Rawalpindi and
Peshawar.
 Serves 70,000 customers and retail outlets.
 Employs 1,800 people in Pakistan.

9. Mission Statement

10. Mission Statement
 To refresh the world - in mind, body and spirit
 To inspire moments of optimism - through our
brands and actions
 To create value and make a difference
everywhere we engage

11. Vision And Goals
1. Maximizing return to shareholders
2. Being a great place to work
4. Bringing to the world a portfolio of beverage
brands
6. Nurturing a winning network of partners and
building mutual loyalty
7. Being a responsible global citizen that makes a
difference
8. Highly effective, and fast-moving organization

12. What Coke Cares about??

13. The Six key Beliefs
 Consumer 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.
 To be the best marketers in the world.
 Think and act locally.
 To lead as a model corporate citizen.

14. Coca Cola Values
Values
•Leadership •Accountability
•Passion •Innovation
•Integrity •Quality

15. Major Products Of Coca Cola
Sprite(1972) Coke (1953)
Fanta Products Diet Coke
(1965) (2001)
Kinley Drinking
Minute Maid Water
And Juices

16. PEST Analysis

17. External environment (Macro)
Political Factors
 Government has control over Coke manufacturing
activities by setting standards of law
 Changes in taxation and environmental laws
 Political conditions, civil unrest and restrictions on
the ability to transfer capital across borders
 Arab nations boycotted Coke’s products due to a
political dispute and discontented with the company
for maintaining distributors in Israel.

18. Economic Forces
 Changes in consumer spending habits
 Economic crisis makes consumers to cut down
their spending
 Inflation
 Worse economic situation after 9/11

19. Social
 Culture has a tremendous effect on people’s
preferences and perception
 Many U.S. citizens are practicing healthier
lifestyles.
 Organized Racing family in North America, May
10, 2012
 Language is one of the aspects of culture that
marketers must take care of

20. Technological Forces
 Introduction of new machineries all the time
 The new technology of internet and television
which use special effects for advertising through
media
 Speedy delivery –Wakefield factory has
technology to produce cans of Coke faster than
bullets from a machine gun

21. External environment (Micro)

22. External environment (Micro)
Suppliers
 Coke considers its suppliers as a partner in their
business.
 Extensive training – to keep good relations and
maintain quality product.
 CCBSS(fructose corn syrup)
 Nutrasweet and Ajinomoto ( Acesulfame potassium)
 Tate and Lyle (Sucralose)

23. Marketing Intermediaries
 Retailers
 Wholesalers
 Resellers
 To build traffic and strengthen operations.

24. Customers
 Customer satisfaction is considered as being the
most important and vital things in Coke progress.
 Coke dedicates a page on their website for
customers
Competitors
 Coke’s main rival is PEPSI
 Constantly developing new products for its
customers

25. Muhammad Ali Bhatti

26. Market Summary

27. Marketing Mix
Product
 World’s most favorite brand
 FMCG distribution pattern
 Wide range of soft drinks
 Core product , Augmented Product, Actual product

28. Promotion
 Targeting value based advertising.
 Allows price discounts and allowances to
distributors and retailers
 Push strategy and Pull strategy
 Most widely recognized word after "OK".

29. Marketing Budget
TV Budget
Channel Timing No. of ads Price/mint
PTV home 8am 5 PKR 100,000
9pm 4 PKR 132,226
AAG 8pm 4 PKR 50,000
Geo 10pm 5 PKR 70,000
ARY 9pm 5 PKR 400,000
Total 23 PKR 752,225

30. Newspaper Budget
News Papers Size Day Prices
Dawn 27x4 Sunday PKR 430,920
The News 27x4 Sunday PKR 1,682,000
Total PKR 2,112,920

31. Billboards
 Coca-Cola will cover each region with 500 sq. ft
 The three different rates of billboards are PKR
40000, 70000 and 125000.
 The total estimated cost of billboard
advertisements will come to PKR2,600,000.

32. Place
 Wide scale distribution.
 Coke sets its own distributions directly to stores
Supermarket
 Available nationwide and worldwide

33. Price
 Each sub-brand of Coke has different pricing
strategy according to the market and its segments
 Pricing is done keeping in view the increasing
rivalry with Pepsi
 Pricing is basically standard for all over the world

34. SWOT ANALYSIS

35. Internal
Strength Weaknesses
 Popularity Word of mouth
 Well known
Lack of popularity of many
 Branding obvious and easily Coca Cola’s brands
recognized
Most unknown and rarely
 A lot of finance seen
 Customer loyalty
Result of low profile or
 International Trade non-existent advertising
 Holding a large part of world Health issues
culture for a very long time
 Brand image, supreme taste quality No Luxury packing

36. External
Threats Opportunities
Changing health Many successful brands
conscious attitude to pursue
Legal issues Advertise its less popular
products
Health ministers
Buy out competition.
Competition (Pepsi)
More Brand recognition

37. Marketing Strategy
 To listen to all the voices around the world asking
for beverages
 to contribute to communities around the world
through our commitments to education, health,
wellness, and diversity.
 Determined to make great drinks

38. Marketing Objectives
 To increase volume
 To Expand worldwide nonalcoholic ready to drink
beverages
 Improving economic profit
 Coke aim is to focus on enhancing value for their
customers.

39. Major Segments
 Demographic Segmentation
(Age, Income, Family size)
 Behavioral segmentation
 Segmentation health wise
 Coke segments its market upon their demands

40. Market Demographics
In Pakistan Coke’s share is only 36%.
 POPULATION 176,242,949
(July, 2009 estimated)
 CHILDREN 37.2%
(65,607,612)
 ADULTS 62.8%
(110,680,572)
 CHILDREN EQUITY 60%
(14,643,619)
 ADULT EQUITY 40%
(27,802,960)
 TOTAL TARGET MARKET: 42,446,579

41. Market Positioning
 Open happiness – varieties of advertisements and
taste
 Coke spends lots of money to make a different
creative slogan for targeted people
 Coke controls about 59% of the world market
 Positioning statement of Coke To all, who wants
best drinks to quench their thurst, by providing the
best quality and taste in an affordable price.

42. Raja Murad Saqib

43. Product Life Cycle of Coke
 Coke is in maturity stage but gradually moving
towards the declining stage of the life cycle.
 The company must now determine whether they
will stop producing Coke, change the soda, seek
new markets for the soft drink or if they will
maintain their current strategy.
 Coke’s sales have increased by 1.02% compared
to last year. This percentage has no comparison to
the high level of growth Coke enjoyed during its
growth stage.

45. Brand Development Strategy
 Coke believes in selling out the best products to
its customers to retain them with their products.
 The company also invested in various
advertisement campaigns often engaging the
services of celebrities around the globe.

46. Brand image
 There could be hardly any person around the
world that hasn't heard the name Coca Cola ever
since it begins as world leading name in cold
drinks.
 Millions of people around the world are
consuming Coke as part of their daily meal.
 Brand image is the significant factor affecting
Coke’s sale.

47. Strategies Of Getting Goals
Coke’s main strategies are as follows
• Volume can be increased
• Interest level of consumers
• To take part in festivals and events
• Diversification
• By launching new Flavors

48. Promotion Strategies
 Getting shelves
 Eye Catching Position
 Advertisement :
Print media
Electronic media
TV commercial
Billboards and holdings

49. Sales Promotion Activities
 Coca-Cola Cricket
 Coca-Cola Concerts
 Coca-Cola Food Mela
 Coca-Cola Basant Festival
 Coca-Cola GO-RED
 Coca-Cola Party in a Park
 Coca-Cola Shopping Festival
 Coca-Cola Pet Promotion
 Coca-Cola Ramzan Campaign
 Coca-Cola Wonder of the World Promotion
 Coca Cola TV Mazza
 Coca-Cola & Mc Donald's
 Fanta & Sprite Launched
 Coke Studio

50. Financial Analysis

51. Growth Rate in Market Share Geographically
Unit case Volume 2010 Vs 2011 Growth rate
2008 Vs 2009 5 year Annual Net Op. Op. Income
Growth Growth Revenues
Africa 10% 6% 16% 6%
Eurasia 16% 13% 24% 38%
European 3% 2% 14% 16%
Union
Latin America 9% 6% 24% 22%
North America (1%) 1% 11% 1%
Pacific 7% 4% 7% 3%
Bottling 64% N/A 53% 75%
Investments
Worldwide 6% 4% 20% 15%

52. Sales Forecast
Sales and 2007 2008 2009 2010 2011
Income
Data in
Millions
$21,742 $23,104 $24,088 $28,857 $31,944
Net Sales
Net $4,847 $4,872 $5,080 $5,981 $5,807
Income
(Profits)
Units sold 19.8 20.6 21.4 22.7 23.7
in Billions

53. Financial Report
 The financial report of Coca Cola Company of the
year 2008 and 2009 along with the percentage
change is as follows.
 (In millions except per share data, ratios and
growth rates)

54. 2008 2009 %
Net op. revenues 31,944 28857 1%
Operating income 8,446 7,252 45%
Net income 5,874 6,027 82%
Net income per share 1.601 0.882 82%
Net cash provided by op. activities 4,110 3,585 15%
Business reinvestment (963) (779) 24%
Dividends paid (1,791) (1,685) 6%
Share repurchase activity (277) (133) 108%
Free cash flow 3,147 2,806 12%
Return on common equity 38.5% 23.1% -
Unit case sales (in billions)
International operations 12.5 11.9 5%
North America operations 5.3 5.2 2%
Worldwide 17.8 17.1 4%

55. LOGO