Professional Documents
Culture Documents
History
1985 - July 10, eighty-seven days after the new Coke was introduced, the old
Coke was brought back in addition to the new one. This was greatly due
to dropping market share and consumer protest. The market share fell from
a high of 15 percent to a low of 1.4 percent. This was said to be a classic
marketing retreat. Coca-Cola executives admitted that they had goofed by
taking the old Coke off the market. The Coca-Cola company's eight
hundred number received eighteen thousand calls of gratitude. One caller
said they felt like a lost friend had returned home. The comeback of old
Coke drove stock prices to the highest level in twelve years. This was said
to be the only way to regain the lead on the cola wars.
1988 - Coca-Cola was the first independent operator in the Soviet Union.
1993 - Coca-Cola exceeds 10 Billion cases sold worldwide.
1993 - Advertising slogan -"Always Coca-Cola".
1995 - Coke was consumed aboard the Space Shuttle Discovery -- marking the
third trip into space for Coca-Cola and the first for Diet Coke.
1996 - The Summer Olympics will be held in Atlanta, Georgia, the home of
Coca-Cola.
For more than 65 years, Coca-Cola has been a sponsor of the Olympics.
One great earmark that the Coca-Cola Company has is helping the people of
Atlanta. They accomplish this through scholarships, hotlines, donations and
NIRANJANA MAJITHIA DEGREE COLLEGE OF COMMERCE Page 5
contributions. Another large accomplishment that the Coca-Cola has, is being the
first company to make and use recycled plastic bottles. One way to see all of the
achievements of the Coca-Cola company is to visit the World of Coke in Atlanta.
It houses a collection of memorabilia, samples of the products, exhibits, and many
other exciting items. All of what has been said is the basis of what Coca-Cola was
built on. Without societies help, Coca-Cola could not have become over a 50
billion dollar business. Keep on consuming the world's favorite soft drink, Coca-
Cola.
Until the 1960s, both small town and big city dwellers enjoyed carbonated
beverages at the local soda fountain or ice cream saloon. Often housed in the drug
store, the soda fountain counter served as a meeting place for people of all ages.
Often combined with lunch counters, the soda fountain declined in popularity as
commercial ice cream, bottled soft drinks, and fast food restaurants came to the
fore.
What's in a Coke???
• Carbonated Water
• High Fructose Corn Syrup
• Caramel Color
• Phosphoric Acid
• Natural Flavors
• Caffeine
PRODUCTS:
There are different brands of the Coca Cola Company, which
are currently in use throughout the world. This company not
only deals in the carbonated drinks but also other drinks. While launching its
product, the marketing team considers the culture of the country.
• Coke
• Sprite
• Fanta
NIRANJANA MAJITHIA DEGREE COLLEGE OF COMMERCE Page 9
• Diet coke
• Coke classic
Ingredients
• Carbonated water
• Sugar (sucrose or fructose depending on country of origin)
• Caffeine
• Phosphoric acid v. Caramel (E150d)
• Natural flavourings
A can of Coca-Cola (330 millilitres (12 imp fl oz; 11 US fl oz)) contains 35 grams
(1.2 oz), or 7-8 teaspoons, of sugar.
Logo design
The famous Coca-Cola logo was created by John Pemberton's
bookkeeper, Frank Mason Robinson, in 1885. Robinson came up
with the name and chose the logo's distinctive cursive script. The
typeface used, known as Spencerian script, was developed in the
mid 19th century and was the dominant form of formal handwriting
in the United States during that period.
Root how he could transform the shape of the pod into a bottle. Chapman Root
gave Dean his approval.
Chapman Root approved the prototype bottle and a design patent was issued on the
bottle in November, 1915. The prototype never made it to production since its
middle diameter was larger than its base, making it unstable on conveyor belts.
Dean resolved this issue by decreasing the bottle's middle diameter. During the
1916 bottler's convention, Dean's contour bottle was chosen over other entries and
was on the market the same year. By 1920, the contour bottle became the standard
As a reward for his efforts, Dean was offered a choice between a $500 bonus or a
lifetime job at the Root Glass Company. He chose the lifetime job and kept it until
the Owens-Illinois Glass Company bought out the Root Glass Company in the
mid-1930s. Dean went on to work in other Midwestern glass factories.
In 1997, Coca-Cola also introduced a "contour can," similar in shape to its famous
bottle, on a few test markets, including Terre Haute, Indiana. The new can has
never been widely released.
A new slim and tall can began to appear in Australia as of December 20, 2006,
which costs an average of AU$2. The cans have a distinct resemblance to energy
drinks that are popular with teenagers. It is unknown if the design is of limited
edition or may soon replace the current 355 mL cans that have been used in the
past (the new slim cans are 300 mL, making the volume-to-cost ratio even smaller).
In 2008, in some parts of the world, the plastic bottles for all Coke varieties
(including the larger 1.25- and 2-liter bottles) was changed to include a new plastic
screw cap and a contoured bottle shape designed to evoke the old glass bottles.
What's in ?
Coca-Cola Classic
%
Amount
RDA Ingredients
Calories 140 • Carbonated Water
Nutritional Information
• Red 48
Sprite
The caffeine free versions of the above are identical, minus the caffeine.
PRICE STRATEGY
Price strategies are important to Coca Cola because the price determines the
amount of sales and profit per unit sold. Businesses have to set a price that is
attractive to their customers and provides the business with a good level of profit.
Long before a sale was ever made Coca Cola had developed a forecast of consumer
demand at different prices which inevitably determined whether or not the product
came on the market, as well as the allocation of adequate money and resources to
produce, promote and distribute the product.
Pricing methods include: Cost based Pricing, Market based pricing and
Competition based Pricing. Over the years Coca has lost ground here in it’s pricing
but has regained it’s strength as it employed the Competition-based pricing method
which allowed it to compete more effectively in the soft drink market. Leader
follower pricing occurs when there is one quite powerful business in the market
which is thought to be the market leader. The business will tend to have a larger
market share, loyal customers and some technological edge, thus the case currently
with Coke, it was first the follower but through effective management has now
become the leader of the market and is working towards achieving the marketing
objectives of the Coca Cola. Survival in the market place, own 60 % of market
share by 2007, increase further awareness of product and a return on 20% on
capital employed for August 2007.
Trade Promotion
Coca cola company gives incentives to middle men or retailers in way a that they
offer them free samples and free empty bottles, by this these retailers and middle
man push their product in the market. And that’s why coca cola seen more in the
market. And they have a good sale in the market because according to the expert
which product seen more in the market that sells more.
“Seen as sold”
They do agreements with a shop keepers and stores to exclusive sale in that stores.
These stores are called as KEY accounts in their local language.
And coke also invest heavy budget on these stores and offers them free samples
and free bottles and some time cash incentives.
In today’s competitive environment , having the right product at the right place in
the right place at the right time may still not be enough to be successful. Effective
communication with the target market is essential for the success of the product
and business. Promotion is the p of the marketing mix designed to inform the
marketplace about who you are, how good your product is and where they can buy
it. Promotion is also used to persuade the customers to try a new product, or buy
more of an old product.
Getting shelves
They gets or purchase shelves in big departmental stores and display their products
in that shelves in that style which show their product more clear and more
attractive for the consumers.
UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and
they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash
prizes etc. This scheme is very much popular among children.
The place P of the marketing mix refers to distribution of the product- the
ways of getting the product to the market.The distribution of products starts with
the producer and ends with the consumer.
Selecting the most appropriate distribution channel is important, as the choice will
determine sales levels and costs. The choice for a distribution channel for any
business depends on numerous factors, these include:
There are four types of distribution strategies that Coca Cola could have chosen
from, these are: intensive, selective, exclusive and direct distribution. It is apparent
from the popularity of the Coca Cola’s product on the market that the business in
the past used the method of intensive distribution as the product is available at
every possible outlet. From supermarkets to service stations to your local corner
shop, anywhere you go you will find the Coca Cola products.
Order Processing- Coca Cola cannot delay their processes for consumer deliveries
(i.e. delivery to selling centers), as this is inefficient business functioning and is
portrays a flawed image of the product and overall business.
Materials handling- this deals with physically handling the product and using
machinery such as forklifts and conveyor belts. When holding products, then Coca
Cola has benefited from purchasing or renting respective machinery.
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.
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:
Branding
It is often hard to say exactly why we buy one company’s product over
another. Companies such as Nike and Adidas spend large amounts of money trying
to win consumers away from their competitors who make products that are very
similar. The popularity of the brand is often the deciding factor. Over the time
Coca Cola has spent millions of dollars developing and promoting their brand
name, resulting in world wide recognition. 'Coca-Cola' is the most recognised
trademark, recognised by 94% of the world's population and is the most widely
recognised word after "OK". Coca Cola’s red and white colours and special writing
are all examples of world-wide trademarks.
Situation Analysis
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 it’s 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.
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
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 Coka Cola’s
products on the market and the reception they receive from the consumers.
When referring to each and every product or service ever placed before the
consumer i.e. in the long term all the existing products and services are dead. For
e.g.:- Replacement of Ford Cortina ( a highly successful car) by Ford Sierra, the
replacement of sierra by the Ford Mondeo and the replacement of the old Mondeo
by the new Mondeo in 2001. So every product is born, grows, matures and dies. So
in the commercial market place products and services are created, launched and
withdrawn in a process known as Product Life Cycle.
The marketing mix is probably the most crucial stage of the marketing
planning process. This is where the marketing tactics for each product are
determined. The marketing mix refers to the combination of the four factors(price,
promotion, product, place) that make up the core of a business’s marketing
strategy. In this step of the marketing planning process, marketing mix must be
designed to satisfy the wants of target markets and achieve the marketing
objectives. The most successful businesses have continually monitored and
changed their marketing mix due to respective internal and external factors and
have monitored the external business environment in order to maximise their
marketing mix components.
Sales force composite is the most logical method in forecasting revenue. This
involves estimates from individual salespeople to sell to work out a total for the
Implementing
Implementation is the process of turning plans into actions, and involves all the
activities that put the marketing plan to work. Successful implementation depends
on how well the business blends its people, organisational structure and company
culture into a cohesive program that supports the marketing plan.
For its further success, Coca Cola must impose several key changes. Production
needs to be on time and meet the quota demanded from wholesalers. It must also
be efficient so as not to build inventory stocks and inventory prices. The marketing
needs to be motivated and knowledgeable about the product. The forms of
promotion such as advertising must be attracting and enticing to the target market
to get the greatest amount of exposure possible for the product. This will ensure the
success of the product in the stores. Distribution of the product must be efficient.
This problem has already been taken care of with convenient transport routes to
commercial areas and transport already being arranged.
Monitoring and controlling allows the business to check for variance in the budget
and actual. This is important because it allows Coca Cola to take the necessary
actions to meet the marketing objectives. There are three tools Coca Cola should
use to monitor the marketing plan. They are the following:
i. Sales Analysis
Market share analysis compares Coca Cola’s business sales performance with that
of its competitors. Coca Cola looks to increase its market share by over 60%. With
the changes Coca Cola is currently undergoing, they aim to regain an iron fist
control of the market. Target market various age groups and lifestyles from high
school students too universities, and male or female.
This analysis looks at the cost side of marketing and the profitability of products,
sales territories, market segments and sales people. There are three ratios to
monitor marketing profitability; they are market research to sales, advertising to
sales and sales representatives to sales. The results of these three tools can help
Coca Cola determine any emerging trends, such as the need for a different product.
Comparing these results with actual results gives the business an idea on when to
change.
Market Research
When attempting to implement a new Marketing plan a business must address its
target market and conduct the relevant information to insure the new marketing
plan both differs from the old and is better for the business. When conducting
market research a business must first define the problem and then gather the
NIRANJANA MAJITHIA DEGREE COLLEGE OF COMMERCE Page 32
appropriate information to solve the problem. There are 3 types of information a
business can gather to solve its problems.
• Descriptive Research is used to measure and describe things like the market
potential for a product and characteristics of the target market.
Coca Cola through its market research has addressed all three types of research
to define the problem raised by shareholders and gathered information to serve
their needs.
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
The soft drink market is very large, and the business cannot be “all things to all
people”, so it must choose which market segments have the greatest potential. The
target market is the group of customers on whom the business focuses attention.
The target market is where Coca Cola focuses its marketing efforts as it feels this is
where it will be most productive and successful. The target market for Coca cola is
very wide as it satisfy’s the needs for many different consumers, ranging from the
healthy diet consciousness through Diet Coke to the average human through its
best selling drink regular Coke. Most Coke products satisfy all age groups as it is
proven that most people of different age groups consume the Coca Cola product.
This market is relatively large and is open to both genders, thereby allowing
greater product diversification.
There are four broad ways which Coca Cola can segment its market:
The most apparent method used by Coca Cola is with no doubt the differentiated
marketing method as Coke satisfy’s a range of different markets. Diet coke
satisfy’s the weight consciousness, regular coke, sprite, fanta the average human,
coffee, iced tea etc. Each group of beverages satisfy a particular group of people
but majority the average human.
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.
Push availability
For this reason Coca-Cola have provided their coolers and freezers in the market.
They have maximum number of coolers and freezers in the market. They provide
this infrastructure free of cost just to provide child coke to their customer, which
they want to be purchase.
Their salesman and mechanics regularly visit all the shops where coke has its
infrastructure to check that either it is in proper condition or not, if not then they
immediately change or repair it.
But Coca Cola thinks in a different way, they believe that RC Cola, new coming
AMRAT Cola, and all juices, even they take water and tea as their competitors.
Brand Differentiation
Now different companies have got different brand names. So, people can
distinguish between brands. Two major brands “coke” and “Pepsi” also have brand
names.
Pepsi’s Brand
Coke can increase the volume by expanding the industry of coke. Through
advertisements, offering different interesting things to attract people towards this
product.
When making decisions on products a business must look at factors that influence
consumer choice such as psychological factors, Sociocultural factors, Economic
factors and Government Factors.
Economic factors: such as Disposable income and discretionary income. Coca Cola
has addressed this side of the influence by maintaining a low price on the price of
its products.
Government Factors: such as new regulations, inflation, interest rates all influence
consumer spending and choice.
Coke is already taking part in the festival like “Basant”. Coke offers different
attractive things in their festival and through this Coke gained high profit and
consumption of coke increased on these occasions.
Realistic - Do you have the resource to make the objective happen (men, money,
machines, materials, minutes)?
Timed - State when you will achieve the objective (within a month? By February
2010?)
To gain 60% of the market for soft drink industry by September 2007.
NIRANJANA MAJITHIA DEGREE COLLEGE OF COMMERCE Page 42
2.Profitability Objectives:
3. Promotional Objectives
Strengths:
Coca-Cola has been a complex part of world culture for a very long time. The
product's image is loaded with over-romanticizing, and this is an image many
people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts,
hats, and collectible memorabilia. This extremely recognizable branding is one of
Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a day around
the world Coca-Cola stands as a simple, yet powerful symbol of quality and
enjoyment" (Allen, 1995).
Weaknesses:
Weaknesses for any business need to be both minimised and monitored in order to
effectively achieve productivity and efficiency in their business’s activities, Coke
is no exception. Although domestic business as well as many international markets
are thriving (volumes in Latin America were up 12%), Coca-Cola has recently
reported some "declines in unit case volumes in Indonesia and Thailand due to
reduced consumer purchasing power." According to an article in Fortune
magazine, "In Japan, unit case sales fell 3% in the second quarter [of 1998]...scary
because while Japan generates around 5% of worldwide volume, it contributes
three times as much to profits. Latin America, Southeast Asia, and Japan account
for about 35% of Coke's volume and none of these markets are performing to
expectation.
Coca-Cola on the other side has effects on the teeth which is an issue for health
care. It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems. Being addicted to Coca-Cola also is a health problem, because
drinking of Coca-Cola daily has an effect on your body after few years.
Threats:
Currently, the threat of new viable competitors in the carbonated soft drink
industry is not very substantial. The threat of substitutes, however, is a very real
threat. The soft drink industry is very strong, but consumers are not necessarily
married to it. Possible substitutes that continuously put pressure on both Pepsi and
Coke include tea, coffee, juices, milk, and hot chocolate. Even though Coca-Cola
and Pepsi control nearly 40% of the entire beverage market, the changing health-
consciousness of the market could have a serious affect. Of course, both Coke and
Pepsi have already diversified into these markets, allowing them to have further
significant market shares and offset any losses incurred due to fluctuations in the
market. Consumer buying power also represents a key threat in the industry. The
rivalry between Pepsi and Coke has produce a very slow moving industry in which
management must continuously respond to the changing attitudes and demands of
their consumers or face losing market share to the competition. Furthermore,
consumers can easily switch to other beverages with little cost or consequence.
POLITICAL VARIABLES
Effects of government NE
regulations & deregulations
And there are some exceptional things like: “environmental protection laws” they
some what effect the industry of Coke. From last two years Government is going to
be really very much conscious about the environment. But after making the
adjustments in plants and applying the proper way of wastage the chances of being
affected by the “protection laws” are going to be diminished. So it impact good for
the Coke’s reputation. And the second thing in political variables which effects
Coke is “elections & military take over” Because in the days of elections and
marshal law’s condition the countries production in any field is declined. So it
affects slightly the revolution of Coke.
So “political conditions” are over all leave neutral effects on coke’s industry.
SOCIAL VARIABLES
ENVIRONMENT
A large part or our relationship with the world around us is our relationship with
the physical world. While we have always sought to be sensitive to the
environment, we must use our significant resources and capabilities to provide
active leadership on environmental issues, particularly those relevant to our
business. We want the world we share to be clean and beautiful. We are always
innovating to bring you different delicious beverages. This same spirit of
innovation comes alive in our environment programs. We’re committed to
preserving our environment, from use of more than $ 2 billion (U.S) a year in
recycling content and suppliers, and environment
COMMUNITY INVOLVEMENT:
In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system
initiated a famine-relief program to help victims and was the first private-sector
company to assist. The Coca-Cola system in Pakistan initiated a voluntary Hajj
program that allows one employee from each plant, selected through a draw, to be
sent on the Holy Pilgrimage to Mecca at the Company’s expense.
NIRANJANA MAJITHIA DEGREE COLLEGE OF COMMERCE Page 51
TECHNOLOGICAL VARIABLES
Technological variables Strongly Some what No Some what Strongly
Effected Effect Effected
Effected Effected
++ +− −−
+ −
Of course business innovation leaves highly good impacts in the business of Coke.
As coke use more advance technology in its production process. It will resulted in
increment of their production through out the country.
As far as the “governmental hindrances” are concerned the impacts highly bad on
coke’s production. Ever year when budget in announced government taxes rates
always shoot up. This approach of government decreases the profit margin of
Coke.
Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough
time. Coca-Cola is a 27% shareholder in the Pakistan market and they don’t want
to stop here!! Its target market is to achieve a much higher %age. Coca-Cola has
about 2000 employees at Pakistani plants. Lahore plant of Coca-Cola is one of the
beautiful plant in Asia, Situated on Raiwand Road.
Coca-Cola has always had a close consumer and supplier relationship with its
customers. Its entertaining and colorful advertisements have always and will
always rock the media. Pakistani rock stars, sportmen and actors have played a
very vital role in making Coca-Cola such a popular beverage.
Our Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions.
• 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.
• Work efficiently
Coca-Cola no doubt come the heart beat of Pakistanis. Coca-Cola is one of the
leaders in sponsoring the most important, thrilling events. E.g. Cricket matches,
concerts and many other social occasions. Event at the present they are organizing
a Basant festival for which they busily organizing stuff.
So…
enjoy ”