Profile: History
Profile: History
Profile: History
Profile
History
International History
Domestic History
Coca cola started its operations in Pakistan in early sixties. The brand became very
popular in a very short span of time and the company broadened its operations to
meet its increasing demands. The coca cola inaugurated their plant in Multan at
Vehari road in 1965. It is still situated at the same place. Initially it was introduced
as a franchise basis. The owners who took the franchise were not focusing on the
quality of coke very much and they were unable to meet the standard of coke
internationally. They were losing the market share against Pepsi. So the coca cola
company now has taken over it in Pakistan. Here we would like to include some of
the popular slogans of coke since the coke journey started.
Today
It owns 10 plants all around in Pakistan.
Karachi.
Lahore.
Gujerwal
Rawelpindi
Peshawar
Hyderabad
Product Lines
Energy drinks
For those with a high-intensity approach to life, Coca Cola’s brands of Energy Drinks
contain ingredients such as ginseng extract, guarana extract, caffeine and B vitamins.
Juices/juice drinks
We bring innovation to the goodness of juice in Coca Cola’s more than 20 juice and juice
drink brands, offering both adults and children nutritious, refreshing and flavorful
beverages.
Soft drinks
Coca Cola’s dozens of soft drink brands provide flavor and refreshment in a variety of
choices. From the original Coca-Cola to most recent introductions, soft drinks from The
Coca-Cola Company are both icons and innovators in the beverage industry.
Sports drinks
Carbohydrates, fluids, and electrolytes team together in Coca Cola’s Sports Drinks,
providing rapid hydration and terrific taste for fitness-seekers at any level
Smooth and essential, our Waters and Water Beverages offer hydration in its purest form.
Other drinks
So much more than soft drinks. Coca Cola’s brands also include milk products, soup, and
more so you can choose a Coca Cola Company product anytime, anywhere for nutrition,
refreshment or other needs.
2. Vision Statement
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.
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.
3. Mission Statement
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.
Mission Analysis
COMPAN CUSTOME PRODUC MARKE CONCERN TECHNOLOG PHILOSPH SELF CONCER CONCERN
Y R T T FOR Y Y CONCEP N FOR FOR
SURRVIVA T PUBLIC EMPLOYEE
L IMMAGE S
COCA
COLA
5. Objectives
To engage Coca-Cola in exploring the viability and options for using their distribution
networks in developing countries to distribute ‘social products’ such as oral rehydration
salts (ORS) and related educational materials on health, hygiene and sanitation.
To support Coca-Cola and its partners in modeling different scenarios which combine
Coca-Cola’s distribution network with local health initiatives in order to achieve the aim.
To establish a core group of enablers and activists to lead on the different aspects of this
campaign.
To monitor the progress of the campaign and ensure that any trials and roll-outs are
effectively monitored and evaluated
Increase the volume of sales up to the maximum level as much as possible during
the current fiscal year.
To continue to be an organization providing the quality products to the valuable
customers.
To select and retain the professional people for the organization.
To project an outstanding corporate image.
To satisfy the customer through extra ordinary service and an excellent service along
with the complete tactical and operational support.
Pricing Strategies
Coca Cola has intense competition with 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.
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. 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.) 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
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. The first, second and third best dealers of the year
are awarded.
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.
Positioning Strategy
Here if we talk about more price and more benefits, we can discuss Coca Cola and Pepsi.
As both are the market leaders and 90% market share of Pakistan beverage industry is
secure by them & the rest 10% is secure by the rest. They are using market Leader
Strategy
Others colas like Mecca Cola, Amrat Cola and Mountain Dew are offering same for same
price and same benefits for more price. They are using followers strategy, as they follow
the other market leaders and giving their customers same benefits for same price. Others
colas like tha bottles (local colas) are offering less benefits for same price and less
benefits for less price. As they have no existence in market and their products have no
position or we can say very badly positioned in consumer minds.
Market Penetration
Coca Cola in Pakistan is doing market penetration through the selling its products to the
business buyer, who are huge multinational organizations like McDonalds, Subway,
Dunkin Donuts and many more. They are also keeping the local market in focus. Fri
Chiks, AFC, PFC are examples of the buyers in the local market. They are selling the
Coca Cola as the only beverage in their restaurants.
Promotion Strategies
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.
Salesman of the coca cola company positions their freezers and their products in eye-
catching positions. Normally they keep their freezers near the entrance of the stores.
Sale Promotion
Company also do sponsorships with different college and school’s cafes and sponsors
their sports events and other extra curriculum activities for getting market share.
UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and they
offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc.
This scheme is very much popular among children.
Advertising Strategies
8. Swot Analysis
Strength Weakness
Opportunities Threats
Score
Strengths
Weaknesses
Opportunities
9. Matrix
BCG Matrix
BCG (BOSTON CONSULTING GROUP) APPROACH
Coke is one of the main product lines of the Coca Cola Company. It is the one
which is giving maximum revenues to it by different products in this line. Here
we have classified some of its major products in the BCG matrix on the basis of
their fame and liking of the people.
Star
Coke Classic is the basic product through which the Coca Cola Company got the
fame. It is one product, which gives the maximum revenue from all over the world.
It is one flavor, which has the maximum consumers all over the world. Coke has
already worked a lot on it by launching new flavors in it, but still it is a product they
can turn as famous as coke Classic. . Whenever the company thinks of launching its
product in a country the first product they launch is coke classic as they know that if
don’t work here then nothing else can.
Cash cows
Fanta and Sprite are the products, which the Coca Cola Company can never think of
stop producing. It is the one which make the coke company a huge success; it was
one product which gives billions of dollars as revenue from world over
Question mark
Products that are still not a big hit as they haven’t consumed much time yet. Sprite
3G, Sprite Zero, Diet Coke and Kinley are the examples of these question marks as
the question marks as they have not taken much time yet to get a hold of market &
not even the large percentage of the people have tasted it. So it needs time to be
fully tested by the company & the company needs to think whether it should
continue the production or should divert to something new.
Dogs
A product that has not worked good or a product which has been a source of loss.
flavored Fanta is one product that was not a big hit. Even it’s not a long period
which flavored Fanta has consumed but still there are signs that it won’t be a
success. So it’s better for the company to get rid of it.
SWOT Matrix
Strategic Alternatives
Acquire KKD and Produce new diet
GLDC drinks that have
healthier sugar
substitutes
2. Strong global presence, located in over 200 0.10 --- --- --- ---
countries.
3. Long history has built excellent brand recognition. 0.06 2 0.12 4 0.24
4. Partnership longevity with established sporting 0.05 --- --- --- ---
events including the Olympics.
5. Industry leader in market capitalization with $112 0.12 4 0.48 3 0.36
billion.
6. Return on Equity yielded 30 percent in 2006. 0.04 4 0.16 3 0.12
Weaknesses
2. A failed $16 billion acquisition of Quaker Oats 0.10 --- --- --- ---
hinders long-term growth.
3. Negative publicity in India because of water
issues, has led to poor brand image and hindered
growth there. 0.03 --- --- --- ---
4. Lack of management willingness to place foreign 0.02 --- --- --- ---
products into American markets.
5. Marketing deficiencies due to turnover in
leadership and a 16 percent decrease in advertising
spending. 0.05 --- --- --- ---
1. Bottled water consumption has increased 11 percent. 0.06 --- --- --- ---
3. Word Economic Forum’s annual Davos, Switzerland 0.02 --- --- --- ---
gathering grants international voice.
4. Less developed countries are in desperate need to 0.02 --- --- --- ---
improve community water supplies.
5. Energy drink sales are expected to increase 7 to 8 0.06 --- --- --- ---
percent in 2007.
6. Disposable income has increased 6.2 percent. 0.05 --- --- --- ---
7. Consumers are striving to drink and eat their way to 0.07 2 0.14 4 0.28
better health than pervious generations.
8. EPS is expected to rise 7 to 8 percent in 2007. 0.07 4 0.28 3 0.21
Threats
2. Multiple lawsuits against the new Enviga beverage 0.04 --- --- --- ---
for calorie burning claims in advertising
3. Smaller, lesser known brands are turning to major 0.06 --- --- --- ---
beer distributors for bottling.
4. Overall carbonated drink sales have been flat due to
links of sugar to obesity and high fructose corn syrup
to heart disease. 0.10 2 0.20 4 0.40
5. Pepsi is more diversified offering beverage and food 0.20 4 0.80 2 0.40
products.
6. High cost of commodities such as sugar, and metals 0.10 --- --- --- ---
used in production of cans.
7. Many smaller companies are fierce competitors 0.08 --- --- --- ---
around the world in their local markets.
SUB TOTAL 1.47 1.44
The QSPM strategies assessed whether acquiring KKD and GLDC (a potato chip and snack food
company) was a better option than producing a new diet soda line made form more healthy sugar
alternatives. Both scores on the QSPM are relatively close and given the financial condition of
KKD and GLDC, it is recommended Coca Cola undertake both strategic alternatives. The Net
Worth of both companies is provided below. It is estimated it would cost $200 million to
research, produce and market the new diet drinks.
11. Conclusion
The Coca Cola Company has a very rich history and spread over the world. Coca Cola Company
has a strong competitive position in the market with rapid growth. It needs to use its internal
strengths to develop a market penetration and market development strategy. This includes focus
on Water and Juices products, and catering to health consciousness of people through
introduction of different coke flavor and maintaining basic coke flavor. Innovation in branding
and aggressive marketing strategy can bring long term profitability. We have concluded from
this detailed report that despite the fact Coca Cola currently occupies the market
leadership position overall but it does not guarantee that the company will sustain its
position in the future as well. In Pakistan as compared to Pepsi, Coca-Cola has less
number of consumers as Pepsi’s market share in Pakistan is approximately 54% where as
Coke market share is hovering about 36%, hence the conclusion is that Coca-Cola must
enhance factors such as relationship marketing, innovation and technology especially in
Pakistan to attain market leader position in this region as well. 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
12. Recommendations
Some recommendations are as follows:
1. The Coca-Cola Company can improve and secure relationships with suppliers.
The most optimal method would be to use backward vertical integration and
purchase a supply
2. Marketing team should try to increase the availability of Coke in rural areas.
3. They should also focus on all age groups not only concentrating on the young generation.
4. Currently in Pakistan there are only two flavor of Coke available, company can
extend their portfolio by introducing new flavors.
5. According to the survey, conducted by the international firm Pakistani people like
less sweet cola drink. So for this Coca-Cola Company should think about bringing
a new product for example new diet flavors, in the market to fulfill the local need.
6. Coca Cola Company should think about producing Coke Can locally as well
because currently coke Cans are only smuggled from abroad and sold at high
price. Company can capitalize on this factor.