EAST WEST UNIVERSITY

Course Title: Strategic Marketing

Course Code: MKT 430

Section: 01

Submitted to:

Dr. Salma Akter

Assistant Professor

Department of Business Administration

East West University

Submitted by:

Sadman Shihab Choudhury

2016-3-10-124

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Contents

Acknowledgement......................................................................................................................................4
Letter of Transmittal:..................................................................................................................................5
Executive summary.....................................................................................................................................6
Methodology..............................................................................................................................................6
Introduction................................................................................................................................................6
Market Segmentation:.............................................................................................................................7
Brand establishment and customer relationship:....................................................................................7
Increasing financial efficiency:.................................................................................................................7
Focusing more on competencies and business models:..........................................................................8
Company overview.....................................................................................................................................8
Present situation.....................................................................................................................................8
Products and services offering:..............................................................................................................11
Competitors:..........................................................................................................................................13
Yearly revenue:......................................................................................................................................15
Company policy related to market driven practice:...............................................................................17
Challenges of a new era:...........................................................................................................................18
Business in COVID-19:............................................................................................................................18
CSR (Corporate social responsibility):....................................................................................................19
Online shifting of coca cola:..................................................................................................................19
Globalization:.........................................................................................................................................20
Recommendations:...................................................................................................................................21
Conclusion:................................................................................................................................................22
References................................................................................................................................................22

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Acknowledgement

It is my concession to thank Dr. Salma Akter Assistant professor of Department of Business

Administration, East West University for rendering us his expertise knowledge and giving the
opportunity of practical experiences through this term paper. Practical Knowledge is
fundamental for the application of theoretical intelligence. Being this in mind the course teacher
assigned to prepare this assignment to the students of the course “Strategic Marketing”. I
cordially thank the honorable teacher to provide us the opportunity to apply class room learning
practice. This term paper bridges the gap between them. I hope these types of term paper will
help me a lot in professional life.

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Letter of Transmittal:

November, 2019

Dr. Salma Akter

Assistant Professor
Department of business studies
East West University

Subject: submission of individual assignment of Coca Cola Bangladesh

Dear madam, with due respect and great pleasure I am submitting my MKT 430 report on
“Coca-Cola Bangladesh” The report is prepared for Business Administration Department and I
respectfully acknowledge my supervisor’s guidance and help. The report attempts to describe the
knowledge that I have gained during the study. Despite several constraints, I gave my full effort
to make this report a meaningful one. However, there may be shortcomings. I would be grateful
if you consider those excusable. I have tried sincerely to comprehend and translate our
knowledge in writing this report. Although I enjoyed the work very much. Moreover, gladly
attend any of your call to clarify on any point if necessary.

Sincerely yours

Sadman Shihab Choudhury (2016-3-10-124)

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Executive summary

This individual term paper is based on the company which operates their business inside
Bangladesh. In my case, I selected Coca-Cola Bangladesh for this assignment. In this term paper
and assignment, I further discuss about Coca-Cola company and how it operates business in
Bangladesh. And in mean time I discuss about their competition and their industry analysis
strategies. This is my second assignment so I am going to do exactly what mam told me to do.
By doing this individual assignment I can practically understand their business and relates to my
text book and the course named MKT 430. It will help me in future.

Methodology

For doing this research I am trying to collect information from various websites. Due to COVID-
19 it is not possible to physically visit the company headquarter and take an interview of their
manager. So, I take help from different websites to further research about this company. I am
mentioning this reference and source at the end of the report.

Introduction

Market driven strategy provides a company-wide perspective. Customers are the main value. The
customers that form the market should be the starting point in business strategy. Every company
should follow market driven strategy. There are 4 main characteristics of market driven strategy.
1. Becoming market oriented 2. determining distinctive capabilities 3. Matching customer
value requirements to capabilities and the last one is delivering superior customer value. Now I
am going to show you the market driven strategies link up with coca cola. And how coca cola
implemented those points in real life.

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Market Segmentation:

market segmentation is implemented for maximum sells benefit for any company. Coca cola
used market segmentation for emerging market, growing market, mature market and finally
declining product market. That’s how coca cola actually growing profit by selling their product
in almost 200 plus countries. See, they are very effective in market segmentation. Coca cola
selling their beverages in most possible lower rates but at mass productivity, so that it is
available in anywhere and in any country. In developing countries, a balance is made between
pricing and sales volume. But in developed countries the focus is more of a profit making. Coca
cola gained world wide value share in every market.

Brand establishment and customer relationship:

People always likes to buy branded product. when people buy branded product, they
immediately feel classy and think about stands out from the crowd from the others. Coca cola did
a very astonishing thing, they invested over 250 million dollars for modern and edgy add
building for the young customers. Example: in every EID or Puja occasion they are building ad
for wishing happy Eid Mubarak. Again, they are showing that in Ramadan, coca is a must drink
for the iftar. That’s how they are investing in edgy advertising to upgrade their brand value. They
even have coca cola cafes in different countries.

Increasing financial efficiency:

Every company wants to maximize their profit, for that achieving financial efficiency is one of
the great works should done by any company. Coca cola implemented a solution name zero
based work. by that they are revising their annual budget from zero and at the end of the year.
And also, coca cola savings from choosing advertising and they cut expenses from in store
advertisements and from the billboards. By doing all of these, coca cola achieving financial
efficiency.

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Focusing more on competencies and business models:

Coca cola has developed a business brand port folio where 500 brads are added. Coca cola are
billions of dollars from the retailers. They are partnered with bottling services to be the king in
the beverage industry. And this bottling partners helps them to achieve many customers response
in the market. In 2015 coca cola took a huge step in north America to gain company owned
independent bottling services so that they can reign the market.

Company overview

Present situation

Coca cola established in 1986 by a chemist. He first developed a syrup then its accidentally
mixed up with carbonated water. That’s how coca cola was born from accidental mixed up. Now
coca cola became the worlds largest soda and beverage company. it is consumed more than 600
million dream per day. The rate of drinking about this number of drinks per day is the highest.
Although coca cola is not living in the past, they are constantly upgrading their services for the
present and future. Although their main competitor Pepsi cola is also constantly upgrading
themselves to be compete with the coca cola. Coca cola is worlds largest producer and distributor
of syrup and beverages. coca cola affecting many types of communities at the same time. Every
day one billion coke sold by coca cola. 10000 average cokes are consumed every second around
the whole world. The company achieved earnings of $4,347,000,000 in 2003. It is present on all
seven continents and is recognized by 94% of the world population. How some simple syrup
company became the world leader !! they are using many sophisticated technologies to be the
world leader and producing millions of bottles and can every day. Their factory is huge !! they
first developed popped cap to the top of the soda can. "The Coca-Cola Company" is now the
largest soft drink company in the world. Every year 800,000,000 servings of just "Coca-Cola"
are sold in the U.S alone.

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Coca cola is the world’s largest beverages company. and they are serving more than 200 plus
countries of the whole world and they have more than 500 brands. Overall, the company
background is written below:

NAME THE COCA-COLA COMPANY

INDUSTRIES SERVED BEVARAGES

GEOGRAPHIC AREAS SERVED WORLDWIDE

HEADQUATER USA

CURRENT CEO James Quincey

REVENUE $33.471B,

PROFIT 2020 34.74B

EMPOLYEES 86,200 (2019)

MAIN COMPETITORS PEPSI COLA, TROPICANA FRUIT

DRINKS, CRAFT FOODS INC, NESTLE
ETC

Missions of coca cola:

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Their mission is to maximize shareowners value overtime. In order to achieve this value coca
cola creating value for the consumers, bottlers and for the communities. They are believing in 6
key believes

1. Consumer demand drives everything They do

2. Brand Coca Cola is the core of their business

3. They will serve consumers a broad selection of the nonalcoholic ready to drink beverages they
want to drink throughout the day

4. They will be the best marketers in the world

5. They will think and act locally.

6. They will lead as a model corporate citizen

Coca cola has more than 16 million of customers around the world and they are serving their
customers directly. Their business strategy and ultimate objective is to maximizing profit and
supporting worldwide nonalcoholic drink. they are also encouraging retailers to grow their
business by beverage business. They have great amount of sales man all around the world. Coca
cola eagerly waiting for to know each customer needs and wants. More than 6 million people in
the world are their potential customer. Their main success point is adding value for the customers
and their product is very much accessible from all around the world even in rural places.

Vision of coca cola company:

The vision of coca cola company is given below:

1. People: Be a great place to work where people are inspired to be the best, they can be

2. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy
people's desires and needs.

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3. Partners: Nurture a winning network of customers and suppliers, together They create mutual,
enduring value

4. Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

5. Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities

6. Productivity: Be a highly effective, lean and fast-moving organization.

Products and services offering:

Coca cola: it is their first product. coca cola comes in variants of sweeteners and variations.
example: diet coke. It is first marketed in 1886

Sprite: Sprite was created in West Germany in 1959 and acquainted in 1961 with United States.
It is accepted that sprite was made as Coca Cola’s reaction to the ubiquity of 7UP possessed by
PepsiCo furthermore, Dr. Pepper Snapple gathering. It is a lemon-lime enhanced soda pop which
by and by positions no.3 around the world also, is accessible in 190 nations. The accomplishment
behind this speedy development is credited to its forceful promoting technique. In the 1990‟s,
Sprite dispatched the „Jokai lobby, which made fun of other delicate drinks and their absence of
credibility. In 2000, spray painting craftsman temper was employed by sprite to make a limited-
edition plan in festival of the thousand years that showed up on 100 million jars appropriated
across Europe.

Fanta: Fanta was dispatched in the year 1960 in U.S and in year 1993 in INDIA, it is the second
most seasoned sub brand by Coca Cola, devoured 130 million times each day around the globe.

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At present, it has put the extraordinary bonus via web-based media with the assistance of devices
like YouTube, Tweeter and Facebook

Minute maid: with 100 different flavors and varieties from orange juice and lemonades to
punches, minute maids uses its finest ingredients to make a super juice

Dasani: introduced in 1999. Dasani is Americas number 1 national water brand. It provides fresh
water.

Diet coke: Diet Coke, also known as Coca-Cola light in some markets, is a sugar- and calorie-
free soft drink. It was first introduced in the United States in 1982, as the first new brand since
1886 to use the Coca-Cola Trademark. Today, Diet Coke/Coca-Cola light is one of the largest
and most successful brands of The Coca-Cola Company, available in more than 150 markets
around the world. They included Caffeine Free Diet Coke, Diet Cherry Coke, Diet Vanilla Coke,
Diet Coke with Lime and Diet Coke with Citrus Zest. Within 2 years of being brought to the
market, Diet Coke became the top diet soft drink in the world.

Smart water: smart water is an electrolyte added super refreshing taste water with added lime on
it. It has added some extra minerals for greater health.

Georgia coffee: Georgia coffee is Japan’s leading coffee brand. And one of the premium coffees
brand.

Ciel: 100 percent water. Hydrate your mind and your body.

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Vitamin water: vitamin water is a mix vitamins and electrolytes inside it. it is very popular in
western countries.

Ayataka: it’s a Japanese green tea brand. Which offers finest green tea in japan

Barqs: barq is a premium root beer company. it offers great taste of a finest route beer.

Simply: simply there are great original fresh juices, beverages and smoothies. Very much popular
in north America

Dogadan: A Turkish tea brand. Providing quality tea since 1975

Innocent: it’s the juice for the kids, made from coconut oil, juice and smoothies. great to taste.
And it has mix feelings of guilty and joy

Competitors:

Global competition: Every business has to face competition in this innovative world and few
competitions can be so challenging that it could result in the devastation of an empire. Although
there are many beverage manufacturers, coca cola faces such serious competition with PepsiCo
which was born 12 years after coca cola. Only coca cola and PepsiCo combined shares around
65-75% market of beverages worldwide and they will continue to be rivals in the years ahead.

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Both, Coca Cola and PepsiCo use different marketing strategies. Coca Cola focuses on covering
maximum no. customers by reaching every nook and corner of the world thereby creating a
monopoly, whereas, PepsiCo focuses on niche` marketing which covers a certain group of
customers and earning maximum sales and profits from it. Coca Cola was more famous among
the older generations, but PepsiCo created its image among the generation X (younger
generation) as they comprise majority of the population.

Similar strategy was used in their sub-brands wherein, gender segmentation was focused.
Thumps up is advertised as a masculine drink and Fanta, having a light taste, is more feminine.
In case of PepsiCo, Mirinda orange flavor is more popular among ladies and children and
Mountain Dew is famous among masculine gender. The following table shows comparison
between advertising expenditure and gross profit of Coca Cola and Pepsi in the years 2013-2015.
It can be observed that Coca Cola, once a beverage market ruler, is now behind PepsiCo in terms
of net profit. However, the net profits of both the lead aggressors has come down in 2015. From
the below figure we can see that coca cola gained 42 percent of market share where Pepsi
acquired 30 percent of market share, other company’s acquired 10 percent of market share where
Dr. Snapple acquired 15 percent of the market share. So, this is the global competition of coca
cola. Which we are seeing in the below figure

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Yearly revenue:

So, we can see from the above chart that coca cola market share is top in 2012 then it decreasing
and decreasing gradually. Then again it gained strength in 2019. Which is very good for the rise
of that company. In 2019, the coca cola’s net operating revenues worldwide amounted to around
37.27 billion U.S. dollars. The coca cola Company is a producer, retailer and marketer of non-
alcoholic beverages and is well-known for its soft drink Coca-Cola. (source, Nov 26,2020)
statististica.net primary reason behind majority of coke share decreases is the recent years
because people especially urban peoples are now becoming more health conscious. And another
reason is increased local brand competition. also, coca cola faces some water scarcity in some of
the areas.

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There are 4 levels of competition also

1. product form competition: Pepsi cola, Rc cola, mojo, thumps up are the product form
competitors of coca cola

2. product category competition: mountain dew, diet coke, diet Pepsi, Rc lemon, lemu are the
main product category competitors of coca cola

3. generic competition: coffees, tea, juices, beer are the generic competitors of coca cola

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4. budget competition: same price category products are also the competitors of regular coca
cola. example: ice cream, chicken fry, fast food, bolaka cinema hall movie ticket is also the
budget competition of coca cola.

Company policy related to market driven practice:

Replacement to alcoholic drinks:

in modern day many people are addicted to harmful alcohol products. And taking drugs, taking
dark high concentrated beer. coca cola tries to reduce this harmful market with their nonalcoholic
beverage drink. Which is good rather than taking alcoholic drink

Use of purified sea water for coca cola drinks: coca cola is highly criticized for using heavy and
tremendous level of ground waters for making their beverages. But in 2015 their research and
development team propose a new technique to collect water. They are building a machine which
can collect sea water and turns it into drinkable water. It’s their new system upgradation.

Development in purified water system: coca cola also installed some machineries to purify water
even more. Their new super water is called Kinley. Kinley used this new technology to provide
super clear water.

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Challenges of a new era:

Business in COVID-19:

“We are prioritizing safety – whether for our system associates or for our customers and
consumers,” said James Quincey, Chairman and CEO. Coca cola they have and they always will
put the people, customers and retailer’s safety first. They are constantly adapting and monitoring
COVID-19 situation and make their strategy based on the monetarization. “We are working with
stakeholders and governments at all levels – federal, state and local – to focus on recovery.” Said
James Quincey.

Here are some ways they are protecting their employees and serving their communities in this
hard time

Protecting employee’s health and well beings: employees health is the highest priority for any
company. coca cola employees highly followed the terms and conditions of COVID-19 in this
situation

Prioritizing Safety in Production and Distribution Facilities: In some locations, delivery drivers
do not leave their trucks, reducing person-to-person interactions. Some manufacturing plants
have implemented split shifts to avoid shift-to-shift contact. They have implemented additional
cleaning and sanitization routines, focusing on high-touch surfaces, and have taken steps to
restrict visitors to our facilities.

Restricting Travel: they restricting travels both for local and international level

Encouraging Remote Working: In line with recommendations to reduce large gatherings and
increase social distancing, The Coca-Cola Company has asked the majority of office-based
employees to work remotely. This includes employees based at the company’s global
headquarters in Atlanta, as well as in locations around the world. 

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Servings customers and consumers online: since the corona virus outbreak. Online order gained
most popularity. Since it provides contactless delivery. Coca cola also serving customers and
consumers in online. 24/7

CSR (Corporate social responsibility):

Corporate social duty which isn't as it were creating farther ranges but moreover lead the doing
charitable work in India and Bangladesh. although profit making isn't an objective behind it.
Organizations are inquired to utilize 2% of their yearly benefit for such exercises and the no. of
companies partaking are expanding at a quick rate. The Coca Cola India Pvt. Ltd. (CCIPL)
company has taken activities like water sustainability, solar vitality ventures, pet reusing (within
the light of the “Swachh Bharat Abhiyan” and “Clean India campaign” of the Govt. of India),
Back My School‟ (“SMS”) campaign pointed at revitalizing country schools etc. In Africa, The
Renew Africa Activity (RAIN) points to progress get to clean water for 2 million individuals in
Africa and is additionally centered on Water, Sanitation and Cleanliness (WASH), Watershed
Assurance and Beneficial Utilize of water. It can be commendable to note how the medium of
promotions has changed over a long time.

Online shifting of coca cola:

3 ways coca cola boosting up online sales and embracing the pandemic flued e-commerce
revolution:

1. enhancing brand presence on the virtual aisle:

The company is investing in high-quality content – photos, videos and product descriptions – to
ensure its brands look as good online as they do in store. “We want to provide a digital shopping
experience that, at minimum, mirrors the physical shopping experience and converts browsers to
buyers,” Bowers Coventry said. “We’re applying the same commercial and shopper discipline to

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the digital path to purchase.” This includes partnering with groceries and retailers to make coca
cola product visible at the top of the online selling page.

2. prioritizing preferred brands and packaging:

Coca-Cola teams are collaborating with retail customers to adjust supply chains and prioritize
delivery and promotion of core brands and SKUs like multipacks as people adjust to stay-at-
home lifestyles. With consumers sticking with established, trusted brands during uncertain times,
the company is working to keep top-selling offerings in stock and scaling back or postponing
planned brand launches. Coca cola heavily focused on digital marketing in this pandemic to
ensure superior customer value and service.

3. Triggering Impulse Purchases on Digital Path to Purchase

The Coca-Cola framework is utilizing personalized offers, food-and-beverage bundles and social
commerce arrangements to provoke motivation buys online, building on profound ability within
the physical shopping environment.

Globalization:

Coca cola is a heavily globalized company. The concept of globalization has been exceptionally
imperative for the Coca-Cola Company because it has empowered the development of their trade
in different nations around the world. As of now, as a result of globalization, the company works
in over 200 nations around the globe serving millions of clients. Partner is characterized as a
individual, a bunch or an association with a coordinate or roundabout interest in a company
which can be influenced by the company’s choices or arrangements (Ebert & Griffin, 2017). The
major partners of Coca-Cola incorporate clients, workers, providers, and community which are
all affected by globalization in both negative and positive ways. Customers are the foremost vital
partners not as it were for the Coca-Cola Company but moreover in any cutting-edge enterprise.

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It is basic that the company must accentuate on the client as they are the establishment upon
which company operation rotates and without them, the firm stand a tall chance of coming up
short (Ebert & Griffin, 2017). Representatives are basic bunch of partners who are the driving
drive behind the company’s operation. The Coca-Cola Company representatives are charged
with the duty to form and provide the company’s items to clients and to guarantee that
customer’s benefit is improved. Workers are partner as they are specifically influenced by the
organization’s choices, arrangements, and execution in terms of productivity or misfortune
(Ebert & Griffin, 2017). From this viewpoint, globalization has driven to the extension of the
worldwide advertise specialty, which suggests that there will be expanded income and benefit.
As a result, employees’ pay rates and compensation are likely to be expanded consequently their
welfare and fulfillment which is likely to move forward their benefit conveyance (Ebert &
Griffin, 2017). It has too driven to the integration of the work advertise hence has given workers
a chance of working in outside nations thus introduction.

Recommendations:

1. Coca Cola Company should try to emphasis more on providing their infrastructure in the
market to facilitate their customers.

2. According to the survey conducted by an international firm, Bangladeshi people like little bit
sweeter cola drink. So, for this coca cola company should produce their product according to the
local demand.

3. Marketing team should try to increase the availability of Coke in rural areas.

4. They should also focus on the old people.

5. As, in Bangladesh, having a good number of demands, Coke Diet and Zero is not that much
available, so they should emphasize on the supply of these two brands.

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Conclusion:

After thorough research, I 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.

References

Forbes, 2020. Coca-Cola's Advertising And Marketing Efforts Are Helping It To Stay On Top. [Online]
Available at: https://www.forbes.com/sites/greatspeculations/2016/09/26/coca-colas-advertising-and-
marketing-efforts-are-helping-it-to-stay-on-top/?sh=6249cc6e28d7
[Accessed 15 12 2020].

statistica, 2020. The Coca-Cola Company's net operating revenues worldwide from 2007 to 2019.
[Online]
Available at: https://www.statista.com/statistics/233371/net-operating-revenues-of-the-coca-cola-
company-worldwide/
[Accessed 15 12 2020].

the coca cola , 2020. coca cola ecommerce revolution. [Online]

Available at: https://www.coca-colacompany.com/news/3-ways-coca-cola-is-embracing-the-pandemic-
fueled-ecommerce-revolution
[Accessed 15 12 2020].

The Coca Cola Company , 2020. coca cola. [Online]

Available at: https://www.coca-colacompany.com/
[Accessed 17 12 2020].

the coca cola, 2020. brands. [Online]

Available at: https://www.coca-colacompany.com/brands
[Accessed 16 12 2020].

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the coca cola, 2020. responding to corona virus outbreak. [Online]
Available at: https://www.coca-colacompany.com/news/how-the-coca-cola-company-is-responding-to-
the-coronavirus-outbreak
[Accessed 16 12 2020].

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