Term Project Marketing Strategy
Term Project Marketing Strategy
Term Project Marketing Strategy
Marketing Strategies Of
Coca Cola
PRESENETED TO: MR. SUFIAN AHMAD PRESENTED BY: Sami Ullah Khan 27s-640
TABLE OF CONTENTS CONTENTS 1. 2. 3. 4. Acknowledgement. Mission statement Introduction. Coca Cola. a. Coca Cola International. b. History. 5. Management. 6. Market share. 7. Financial report. 8. Dividends and Cash Plan. 9. Products. 10. Strategic planning. 11. Bottlers owned by Coca cola 12. Coca Cola Pakistan. 13. Major Competitors a. Pepsi b. History. c. Financial assets. Market share. Financial report. Products. Methodology 14. Some basic information regarding marketing of coke a. Target market: b. Major segments: c. Factors effecting sales: d. Major competitors: e. Strategies of quality: f. Threats from competitors: g. Targets that would like to attain: h. Expanding target market i. Threats and opportunities for price: j. Strategies of getting goals i.e. high profits: k. Marketing strategy: l. Expectations for the coming year: m. How coke determine the yearly budget: 15. Marketing strategies 16. Pest analysis
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DEDICATION
This report is dedicated to my beloved parents, Who educated me and enabled me to reach at this level.
ACKNOWLEDGEMENT
We think if any of us honestly reflects on who we are, how we got here, what we think we might do well, and so forth, we discover a debt to others that spans written history. The work of some unknown person makes our lives easier everyday. We believe it's appropriate to acknowledge all of these unknown persons; but it is also necessary to acknowledge those people we know have directly shaped our lives and our work. First of all we would like to thank our teacher Mr. Muhammad Shafique for their guidance through out the semester. Then we would like to thank our friend and brother Mr. Zeeshan Anjum for providing us the information that was required for completion of this project.
INTRODUCTION The Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton. Today, the company is the world's leading manufacturer in the beverage industry, operating globally in more than 200 countries with its head office located in Atlanta, USA. It produces more than 300 beverage brands and over 1.06 billion drinks are consumed per day. In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated its departure. Coca-Cola returned to India in 1990 and over the past nineteen years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. CocaCola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other
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MANAGEMENT:
The hierarchy of Coca Cola Company is as follows.
Vice Presidents
PRODUCTS:
There are different brands of the Coca Cola Company, which are currently in use through out 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.
PEPSI INTERNATIONAL
HISTORY
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of PepsiCola North America, Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.would entertain the listener with the latest musical selections rendered by violin or piano or both. The new name, Pepsi Cola, is derived from the two of the principle ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At that time, Bradhams advertising praises his drink as Exhilarating, invigorating, aids digestion.
1990-2002
The advertisement of the Pepsi changes to, You got the right one baby, Uh-Huh!.With the extensive usage of the stars in the adds, the popularity of Pepsi increase. In 1992 PepsiCola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Outside the United States, Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. PepsiCola beverages are available in more than 190 countries and territories. In Asia, they selected Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the operations carried out in South West Asia. As in Pakistan, they only entered beverage industry. They have eleven bottlers covering whole Pakistan. The plant operating here is Riaz Bottlers (Pvt) LTD. This plant was established at Lahore in 1974. The total capacity of the plant is 30,000 cases per day. They have four filling lines in the plant operating on the three shift bases. Each shift is of eight hours. They have permanent work force of 750 people and they employee approximately 1000 people more on temporary basis during summer season.
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Pepsis Products
Pepsi Teem Mirinda Pepsi Max Pepsi Lemon Pepsi Blue Mountain Dew 7up
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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
Cokes 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.
MAJOR SEGMENTS
Major segments are basically those people who take this drink daily and those areas where the demands is higher then 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.
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
Cokes major competitor is PEPSI and there is no hesitation to say this because every one knows that and all the other cold drinks and water, coffee, tea are the competitors.
Weather
Weather is the third major factor in effecting the Cokes selling. This is underdeveloped market so the cokes consumption in summers is 60% and in winters is 40%.
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MAJOR COMPETITORS
Consumers firstly decide that they are going to have a soft drink. Then they compete brands with each other. Like they compete Coke with Pepsi and Sprite with 7up and team .So the major competitor of Coke is Pepsi. When they motivate to any other brand or on Coke its in instinct basically that based on messages derive certain feelings. 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.
STRATEGIES OF QUALITY
After Micro and macro analysis Brand coke is primarily role 1. Enhance competition moments 2. When people watch cricket 3. Through commercialization 4. Fun time Though these strategies there could be better understanding and better connection with the public. These are the key consumption.
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Windfall Profit
Can be windfall profit. They are the extras profit. When the consumption the consumption is on boom. So, there is different kind of profits.
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. 15
Pepsis Brand
Pepsis brand is basically is basically ME branded. They use the temperament of ME. In contrast to Coke they believe on individual struggle.
Threats
There are much more threats in increasing prices. Because same problem of substitute. If Coke increase the price lets say 1 rupee. Then people definitely wont 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.
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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 who 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.
MARKET POSITIONING
Product Range
The total range of Coca Cola company in Pakistan includes: Coke. Sprite. Fanta. Diet Coke.
And company offers their products in different bottle sizes these includes: SSRB LRB NRB PET 1.5 CANS (standers size returnable bottle) (litter returnable bottle) (no return bottle) or disposable bottle (1.5 litter plastic bottle) (tin pack 330 ml)
Packing
Coca cola products are available in different packing 24 regular bottle shell 17
6 bottle pack for 1.5 pets 12 bottles in a pack for disposable bottle 24 cans in one pack.
PRICE STRATEGY
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 thats 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.
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.
Sale Promotion
Company also do sponsorships with different college and schools 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.
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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ADVERTISEMENT
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 Material
Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas.
TV Commercials
As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.
1. Loyal consumers are important for companys success. 2. Workers should be the brand centric not the promotion centric. 3. They should know how much to for the brand activities. 4. They should also know that how much to do with the promotion activities for brand.
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.
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Coca-Cola Concerts
Abrar-ul-haqs distinct style, lyrics & songs have made him an instant hit among the masses in Pakistan. His enormous popularity in the country & abroad is supported by Coca-Colas commitment towards providing healthy & fun-filled entertainment for the youth of Pakistan. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured throughout the country. The TVC campaign focused on the hectic lifestyle of a pop star who found respite & relief through Coca-Cola in short moments that he had to himself during a concert. Coca-Colas brand positioning of providing deep down refreshment for the body, soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar.
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Coca-Cola GO-RED
Quenching the thirst of motorist, pedestrians & passerbys during Lahores hottest summer season, Coca-Colas GO-RED teams went out into the cities main quadrants to serve & refresh on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement campaign the GO-RED stall, served well to promote the Coca-Cola industry.
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Diet Coke
After the acquisition of the individual local franchise bottling facilities in 1996, the company has successfully launched its first new product, diet coke, for the first time in almost 3 years. The was linked with three fashion shows as Diet Coke is related to fashion & fitness, but the major hit was thematic fashion shows in restaurants, which are the key accounts of the company as this has been never done before in Pakistan.
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35 30 25 20 15 10 5 0 yes no
Out of the 30 people we surveyed, all of them said they had tried Coca-Cola atleast once. This explains the brand awareness of Coca-Cola. 2. Gender
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20 18 16 14 12 10 8 6 4 2 0 male female
3. Age groups
Age Groups
51 & above 36-50 yrs 20-35 yrs 10-19 yrs below 10 yrs 0 5 10 15
no. of people
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As represented in the chart, majority of the respondents were in the age group of 20-35 years, the least of the lot being 2 kids who were also asked to participate in the survey.
no 23%
yes 77%
From the analysis, it was found that majority of 77% (23 people) respondents said they enjoyed drinking CocaCola as against 23% (7 people) who said they preferred other drinks. 5. What brand would you say is more popular among the public? a) Coca-Cola b) Pepsi c) Other
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Others 7%
Pepsi 37%
Coca-Cola 56%
As seen in the chart, out of 30 people, 17 respondents said, in their opinion, Coca-Cola was more popular while 11 respondents said they preferred Pepsi as a popular brand. 6. Do you enjoy Coca-Colas advertisements on TV?
I dont like them not bad they are good but nothing special I really like them 0 2 4 6 8 10 12 14
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The chart represents that a majority of people thought the Advertisements were good enough & they like what they see. 7. Do you think the price for a can of Coca Cola is cheap or expensive?
As seen in the above figure, a majority of 23 people out of the 30 respondents thought that the Coca-Cola Cans are slightly overpriced with a few people also rating it as expensive. 8. If you were to see the Coca-Cola logo somewhere would you recognize it?
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no 0%
yes 100%
It is understood from the fact that the Logo of the Company still has its image in the minds of the people with all the respondents saying they would recognize the Coca-Cola Logo. 9. How often do you buy the product?
everyday few times in a week few times in a month once/few times in a year never 0 5 10 15
As it can be seen in the figure, it was concluded that majority of the respondents bought the product quite
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frequently. This shows the brand loyalty of the customers towards Coca-Cola.
Restaurants
general stores
super markets 0 5 10 15 20
As seen in the above chart, customers usually preferred to buy Coca-cola in restaurants like KFC, Mc Donalds, Sub-Way etc. The second largest option was General stores stocking Coca-Cola.
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CONCLUSION
It was observed that Coca-Cola has been perceived quite positively as it has been projected. People are aware of the Brand & Awareness of Coca-Cola is quite high in the market. When a product is launched, avid Coke drinkers choose this soda over any other competitor simply because it's a Coca-Cola product and they trust it. Although Coke has been into controversies, people still prefer to stay loyal to the Brand with Coca-Cola being termed as a more popular brand than Pepsi. Coca-Cola products would appear, on the shelf, to have the most expensive range of soft drinks common to supermarkets, at almost double the cost of no name brands. This can be for several reasons apart from just to cover the extra costs of promotions, for which no name brands do without. When people buy Coca-Cola they are not just buying the beverage but also the image that goes with it, therefore to have the price higher reiterates the fact that the product is of a better quality than the rest and that the consumer is not cheap. In supermarkets and convenience stores Coca-Cola has their own fridge which contains only their products.
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There is little personal selling, but that is made up for in public relations and corporate image. Coca-Cola sponsors a lot of events including sports and recreational activities.
So
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LIMITATIONS
Time Constraints: A two months time limits us to understand completely the market requirements and all round working perspective of the company.
Position and Authentication Constraints: With no authority or position it was sometimes difficult to convince the customer in front as summer trainee holds no responsibilities in the eyes of corporate.
No Customer Interection:ection It is because the customers of Hindustan CocaCola Beveragws Private Limited are big organisations, these organisations are situated outside Varanashi. So , there is no interection with customers of Hindustan Coca-Cola Beveragws Private Limited.
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SUGGESTIONS In the report we have seen the graph of order booking targets and sales turnover. In the graph of order booking we have seen that the order for our product is increasing year. It means that with the increase of order to target. We have efficiency of the organisation; we have to improve on certain points: Cost efficiency: To get the achievement of cost efficiency we have to keep certain points in our mind they are resale of scraps, inventory management, work
distribution. Profit generation: In the SWOT analysis we have seen there is a great opportunity products, these can be turnkey for
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the company. The company should try to work on export. They should lay more emphasis on export. Improving technology: There is no doubt that the product of company is not good. But from time to time the regular improvement of the technology. It improves the quality of the product as well as save the time. Becoming a global player: With the last dealings we can
conclude that the company had satisfy there maximum customers. After those dealings the company should try to get a good name in India as well as in international market.
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Name: __________________________
1.
2. Gender a) Male b) Female 3. How old are you? a) Below 10 b) 10-19 c) 20-35 d) 36-50 e) 51 & Above 4. Do you enjoy the product? a) Yes b) No c) It's not bad 5. What brand would you say is more popular among the public? d) Coca-Cola e) Pepsi f) Other
a) b) c) d)
I really like them They good but nothing special Not bad I don't enjoy them
7. Do you think the price for a can of Coca Cola is cheap or expensive? a) Cheap b) Slightly over priced c) Expensive 8. If you were to see the Coca Cola logo somewhere would you recognize it? a) Yes b) No 9. How often do you buy the product? a) b) c) d) e) Never Once/few times a year Few times a month Few times a week Everyday
10. Where do you buy Coca-Cola products the most? a) Super Markets b) General stores c) Restaurants (McDonald's, Subway, KFC etc)
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ANNEXURE
The internet is a powerful source of information related to management theories and practices. This annexure has been compiled for the net-savvy reader who would like to surf the net for information on an aspect that is, in some way, related to matter covered in this project work. This compilation is meant to be illustrative rather than comprehensive and there might be many other sources. You must be on the guard as every site listed on the search engines under the title Marketing Strategies Analysis may not be related to my project over my study undergone in BPC Hindustan Coca-Cola Beveragws Private Limited. It may be a site related to general references, articles and slides over management theories on Marketing!
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BIBLIOGRAPHY
Bibliography refers to the sources through which information has been retrieved in my project development: Books & Magzines: Websites: www.google.com www.coca-colaindia.com www.altavista.com Marketing Management Economic Times Annual Report of coca-cola company. By ( Philip Kotler )
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CONCLUSION
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.
RECOMMENDATIONS
After completing our project we have concluded some recommendation for the coca cola company, which are following. Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. According to the survey, conducted by the international firm Pakistani people like little bit sweeter cola drink. So for this coca cola company should produce their product according to the local demand. Marketing team should try to increase the availability of Coke in rural areas. They should also focus the old people. Now young generation has a trend to drink a coke 2 regular bottles at same time, so providing more satisfaction to them company should introduce liter disposable bottle.
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So
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