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DECLARATION

I hereby declare that I have submitted an original piece of work. The secondary research work has been properly cited and acknowledged.

Zoya Ishaq ____________ Name of student

June 25, 2011 _____________ Date DEDICATION _________________ Signature

I dedicate this report to my grandfather Malik Anwar-ul-Haq who passed away on October 6, 2010. He was my source of encouragement, motivation and inspiration. He was a best friend, a companion, a teacher, a father and a man with a dignified character and an impressive personality. Bareabu, this is for you to thank you for all your effort, time, love and support in making me who I am today and to tell you that you will always be remembered.

ACKNOWLEDGEMENT

First and foremost, I am extremely grateful to Allah Almighty for showering His blessings on me continuously and helping me at every stage of life and providing me with the ability to complete this report successfully. I would like to thank my parents for their trust and belief in me always. They make me who I am today with their unconditional love. My humble gratitude and word of appreciation is also for Ms Saira Farooqi, Head of the BBA Department at Kinnaird, and Ms Manal Talat for providing me with the courage to make a name as a student of BBA for 4 years. They have been a motherly figure for me and I can just not thank them enough for framing me into a personality that I possess today. Last but not the least, I express my thanks to my advisors, Ms Farhat Iqbal Awan, Ms Anum Zafar and Ms Maryam Rehmat, without whom this report would not have been completed and compiled. They have worked very hard on this with me.

PREFACE

The study mainly focuses on how Coca Cola has performed over the past years internationally and especially in Pakistan. The main purpose of this project is to teach us as to how Coca-Cola has done over the many decades since its beginning, what problems its faces and what recommendations are possible from my research analysis. The scope of the project is to discuss the marketing strategies adopted and applied by Coca Cola, Pakistan. The primary concern is how and what type of advertising tools and techniques Coca-Cola has used throughout the years since this company bases its sales on advertising and placement. The primary purpose of the report is to find out which company is leading the market i.e what are the market shares of the beverage companies and what are the tactics used by the leader which makes them able to control and influence the market. My purpose was also to share maximum information about the products of Cola Cola that are now glued to our daily life consumptions. I have gathered a sound knowledge over the matter and have found this study to be extremely useful to me in my learning experience.

Kinnaird Postgraduate Programs

93, Jail Road Lahore 54000 Pakistan Telephone 042-7569536 April 14, 2011 Coca Cola Beverages Pakistan Limited Lahore Subject: Research Work for Final Dissertation

Dear Sir/Madam, The Bachelor in Business Administration class has a course requirement for their complete organization analysis that entails project research. It is requested that you allow Zoya Ishaq of BBA 8 to spend time and conduct research in your Organization. Your time and help in this connection is appreciated.

Thank you.

Ms Saira Farooqi Head of Business Studies

TABLE OF CONTENTS
EXECUTIVE SUMMARY INTRODUCTION Rational of Study Research Objectives Problem Identification Hypothesis Research Plan Methodology INTRODUCTION TO COCA COLA Mission Vision Shared Values Objectives History Success Story 8 10 11 11 12 12 14 14 16 17 17 18 19 21 22

History in Pakistan ORGANIZATIONAL STRUCTURE SWOT ANALYSIS ORGANIZATIONAL ANAYLYSIS ORGANIZING STAFFING LEADING CONTROLLING COMPETITOR ANALYSIS MARKETING SWOT/PEST/BCG ANALYSIS RESEARCH FINDINGS & DATA ANALYSIS SUGGESTIONS & RECOMMENDATIONS APPENDIX

24 27 34 38 45 55 58 62 65 95 104 109 155 156

Executive Summary

This report has been compiled as a research project for the final year of BBA at Kinnaird College for Women Lahore. The report is basically a detailed analysis of Coca Cola Beverages Pakistan Limited and the general beverage industry of the country. The study in this report mainly focuses on how Coca Cola has performed over the past years internationally and especially in Pakistan. The main purpose of this project is to teach us as to how Coca-Cola has done over the many decades since its beginning, what problems its faces and what recommendations are possible from the research analysis conducted. The report gives us a brief introduction about The Coca Cola Company, CCBPL, its vision, mission, aims and objectives. The report highlights the companys SWOT and PEST Analysis and also brings forward the BCG Matrix analysis. The organizational structure presented in this report along with staffing, leading and controlling details gives a complete managerial understanding of the brand. The marketing mix helps discover all aspects under the 4 Ps: Product, Price, Placement and Promotion. Coca Cola is celebrating 125 years of existence this year. In this report, Coca Colas global market share and performance have been studied. Its performance in Pakistan has been taken under focus and problems have been identified and solutions recommended. Coca Cola is the leading beverage brand in the world and owns more than 60% of the global beverage market. In Asian countries, its market share is only 17% while in Pakistan, out of the total beverage market only 36% accounts for Coca Colas market share. Hence, this report gives an in-depth information about the process adopted by Coca Cola, where it lacks and how it can improve.

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CHAPTER 1

Introduction

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1.1 RATIONAL OF STUDY The topic of my research project is The lesser market share of Coca Cola in Pakistan. The purpose behind this report is to find out the actual existing problems behind the lesser market share of Coca Cola International in the overall beverage industry of the country and to provide the best possible solutions and recommendation to cater to this problem. Coca-cola with its 450 brands is claiming to be the worlds best non-alcoholic beverage maker and is yet proving his claim by having 63% share in the world market and they are fulfilling their promise to maintain a standard and proving to become a quality symbol. And their aim is to serve the nation by making only non-alcoholic drinks and to give the world a cool and fresh treat. In Asian countries, Coca Cola has a share of almost 17% which is far lower than its share in all other regions. In Pakistan especially, Coca Cola is trumped by PepsiCo as Pepsi owns a market share of more than 60% of the Pakistani beverage industry. The problems behind this lower market share lie in the distribution system, international investment, brand awareness, advertising efforts, fake bottling and consumer cultural tastes. In order to divert my efforts towards understanding the problems faced by Coca Cola and to give appropriate recommendations to these, both primary and secondary information was utilized. The primary information has been taken directly from the Coca Cola office in Lahore. Surveys, questionnaires and interviews have been conducted to study consumer preferences. Secondary information has been congregated through different marketing books, internet sites of Coca-Cola Company, articles and generals related to advertisement and promotion.

1.2 RESEARCH OBJECTIVES

To identify the marketing strategies of Coca Cola To identify the impacts of marketing strategies of Coca Cola on its consumers
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To explore the market share of Coca Cola internationally and nationally To explore customer preferences while selecting a particular beverage brand To identify the problems faced by Coca Cola in Pakistan To analyze Coca Colas competitors in detail and understand their marketing strategies and market trends To determine solutions to the derived problems

1.3 PROBLEM IDENTIFICATION

The problem being faced by Coca Cola in Pakistan is the lesser market share in the country in comparison to its ultimate rival PepsiCo International. Coca Cola invades more than 65% of the global beverage industry market share. It generates the second lowest market share of 17% of the total from Asian countries. In Pakistan, the market share compared to other countries is extremely low. The market share in Pakistan is 32% of the total market share as compared to 60% of that of PepsiCo while 8% is allotted to other local and less intense competitors. There are many reasons behind this lower market share as mentioned in detail in this research report. Hence, the problem definition would be:
The less market share of Coca Cola in Pakistan.

1.4 HYPOTHESIS STATEMENT In order to determine the reasons for the less market share of Coca Cola, I have made certain tentative hypothesis which may be the root cause of the lower level. These reasons will be statistically examined later to reach the actual reasons. These include: High Price (pricing strategy)
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Inefficient and Ineffective Advertising (promotional strategy)

Intense Competition (strong competitor strategies) Non-availability (Placement strategy) Consumer Preferences Keeping in view these reasons I made the following hypothesis for my study:
Table 1: Hypothesis Statement

Sr. No.

HYPOTHESIS STATEMENT

Null Hypothesis
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: The less market share is not due to price of Coca Cola

Alternate Hypothesis

The less market share is due to price of Coca Cola

Null Hypothesis

: The less market share is not due to poor advertising of Coca Cola

Alternate Hypothesis

The less market share is due to poor advertising of Coca Cola

Null Hypothesis

: The less market share is not due to the competitors of Coca Cola

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Alternate Hypothesis

The less market share is due to the competitors of Coca Cola

Null Hypothesis

: The less market share is not due to non-availability of Coca Cola

Alternate Hypothesis

The less market share is due to non-availability of Coca Cola

Null Hypothesis

: The less market share is not due to consumer preference for Coca Cola

Alternate Hypothesis

: The less market share is due to consumer preference for Coca Cola

1.5 RESEARCH PLAN In this project, firstly, I will be discussing the beverage industry globally and of Pakistan generally, specifically focusing on Coca Cola. I will be giving a brief history of Coca Cola, its mission and vision statement followed by P&Gs corporate values and objectives. Next, I would be discussing Coca Colas organizational structure, managerial functions, departmental functions, staffing procedures, leading functions, controlling functions etc so that one can have a
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better feel of the company, be aware of its operations and can easily relate with it for a better understanding of the subject matter of this report which is related to Coca Cola. I will also bring forward the marketing strategies of Coca Cola for its operations in Pakistan. Following this, various analyses will be provided like competitors comparative analysis, SWOT analysis and PEST analysis. Lastly, I will be discussing the research problem in detail with the statistics I have obtained from an impartial survey conducted by me. In the end I will give suggestions and recommendations according to the conclusions derived from the results of the statistics.

1.6 METHODOLGY The data used in compiling this report is primary as well as secondary. The most important source of information is the data collected by me during the research process. A survey was conducted to check the consumer response towards beverages generally, consumer preferences and reasons for preference and specifically determines consumers response towards Coca Colas price, advertising, promotion, placement and quality and then the results were analyzed and recommendations are suggested. 1.6.1 Target Population: The target population for the survey includes all those who use washing detergents. 1.6.2 Sample Size:

The sample size of the survey was 100 potential consumers and /or consumers. 1.6.3 Sampling Technique:

The sampling technique used was random sampling. 1.6.4 Data Used:

1.6.4.1 Primary data:

Information acquired via questions asked from the staff

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 Survey conducted My personal observations

1.6.2.1 Secondary data: Manuals/Annual Report

Internet 1.6.2 Analysis Techniques:

The two analysis techniques used by me during this research project are:

Descriptive statistics (frequency tables, graphs, charts etc) Inferential statistics ( chi-square testing)

Chi-square: A chi-square test (also chi squared test or 2 test) is any statistical hypothesis test in which the sampling distribution of the test statistic is a chi-square distribution when the null hypothesis is true, or any in which this is asymptotically true, meaning that the sampling distribution (if the null hypothesis is true) can be made to approximate a chi-square distribution as closely as desired by making the sample size large enough. So I will be applying Chi-square test to test my hypothesis.

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CHAPTER 2

Introduction To Coca-Cola
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2.1 MISSION In order to achieve mission of increasing market share and maintaining good relations with our customers all over the world, we wish to create value for all the constraints we serve, including our consumers, our bottlers, and our communities. The Coca Cola Company creates value by executing business strategy guided by four key beliefs: The customer is the king; Customer demand drives everything we do. Brand Coca Cola is the core of our business. We will serve consumers a broad selection of the nonalcoholic ready-to-drink beverages they want to drink throughout the day. We will be the best marketers in the world. Everything we do is inspired by our enduring Mission:
To Refresh the World...in body, mind, and spirit. To Inspire Moments of Optimism...through our brands and our actions. To Create Value and Make a Difference...everywhere we engage.

The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and create economic value added by improving economic profit. 2.2 VISION 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.

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

Productivity: Be a highly effective, lean and fast-moving organization. 2.3 SHARED VALUES

Our values serve as a compass for our actions and describe how we behave in the world.

Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well Focus on needs of our consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious

Focus on the Market

Work Smart
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Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently

Act Like Owners Be accountable for our actions and inactions Steward system assets and focus on building value Reward our people for taking risks and finding better ways to solve problems Learn from our outcomes -- what worked and what didnt

Be the Brand Inspire creativity, passion, optimism and fun 2.4 OBJECTIVES OF COCA COLA INTERNATIONAL Profit: Profit maximizing is the aim of each and every firm regardless of how large or small it is because profits are the return which one gets in return of operations. Even Coca-Cola has large profit in Billions but still even it acquires hundred per cent market shares it will seek increased profit margins. Moreover maximizing return to shareowners is also a key aspect the company has to keep in mind because if shareholders are not satisfied by the performance or return they get they will stop investing in the firm. Keeping the above mentioned points the company also has to be mindful of the overall responsibilities. People: By people here it means the employees. Employees are said human resource in business terms no doubt employee are back bone of the company because they are the one who play a vital role in making companys a success story. Coca-Cola is a great place to work where people are inspired to be the best they can be, with high motivational techniques used in order to get the best from them. Competitive wages and salaries are key feature of Cokes human resource

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department because the company believes that if employees are not with you, certainly you will lose out and suffer. Portfolio: Here the company focuses in the companys image as a whole which means bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples desires and needs. Consumers get what they want at the price and quantity which satisfy them. Coca-Cola believes that in order to achieve new heights and succeed it is necessary to provide a range of products to consumers which make them feel special and pleased. Partners: Partners with regard to supply especially and link with external parties for example ad agencies, security agency, banks and insurance. Coca-Cola aims at nurturing a winning network of partners and building mutual loyalty so that there is no hurdle in its success and growth. The company takes all external parties along with it and satisfy them the best they can. Planet: Coca-Cola has long been an active partner when it comes to improvement, restoration and protection of environment. The polar bear campaign of the company is itself a success story in every aspect. Coca-Cola wants to be a responsible global citizen that makes a difference and that its steps lead to beneficial effects on the economy, public and environment with nothing being negatively impacted by its actions.

AIM OF COCA COLA To Refresh the World... in body, mind, and spirit, to Inspire Moments of Optimism... through our brands and our actions and to create Value and Make a Difference... everywhere we engage.
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2.5 OBJECTIVES OF COCA COLA PAKISTAN The company has sales based objective .Everything else (marketing plan, advertising plan, production etc.) is derived from this objective. Currently the companys objective is to Increase the volume of sales up to the maximum level as much as possible during the current fiscal year. The company sets its objective keeping in view the past performance, Historical trends, current market position, economic condition, macro environment and micro environment factors, social values, market size and growth rate ,future expectations and predictions 2.6 HISTORY OF COCA COLA Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed. Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and penned Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested that the two Cs would look well in advertising. The first newspaper ad for CocaCola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular
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soda fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings, with the suggestions Drink added to inform passersby that the new beverage was for soda fountain refreshment. By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark CocaCola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893. The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Companys incorporation, Mr. Asa G. Candler announced in his annual report to share owners that CocaCola is now drunk in every state and territory in the United States. As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the
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production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world. 2.7 SUCCESS STORY OF COCA COLA 1886-1892 : It was 1886, and in New York Harbor, workers were constructing the Statue of Liberty. Eight hundred miles away, another great American symbol was about to be unveiled. Like many people who change history, John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity. One afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was done, he carried it a few doors down to Jacobs' Pharmacy. Here, the mixture was combined with carbonated water and sampled by customers who all agreed -- this new drink was something special, So Jacobs' pharmacy put it on sale for five cents a glass. Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola, and wrote it out in his distinct. 1893-1904: Asa G. Candler, a natural born salesman, transformed Coca-Cola from an invention into a business. He knew there were thirsty people out there, and Candler found brilliant and innovative ways to introduce them to this exciting new refreshment. 1905-1918: Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none too pleased about the proliferation of copycat beverages taking advantage of its success. This was a great product, and a great brand. Both needed to be protected. Advertising focused on the authenticity of Coca-Cola, urging consumers to "Demand the genuine" and "Accept no substitute." 1919-1940: Perhaps no person had more impact on The Coca-Cola Company than Robert Woodruff. In 1923, four years after his father Ernest purchased the Company from Asa Candler, Woodruff became the Company president. While Candler had introduced the U.S. to Coca-Cola, Woodruff would spend more than 60 years as Company leader introducing the beverage to the world beyond.

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1941-1959: Woodruffs vision that Coca-Cola be placed within "arm's reach of desire," was coming true -- from 1940s until 1960, the number of countries with bottling operations nearly doubled. 1960-1981: After 70 years of success with one brand, Coca-Cola, the Company decided to expand with new flavors: Fanta, originally developed in the 1940s and introduced in the 1950s; Sprite followed in 1961, with TAB in 1963 and Fresca in 1966. In 1960, The Coca-Cola Company acquired The Minute Maid Company, adding an entirely new line of business, juices to the Company. 1982-1989: The 1980s, the era of legwarmers, headbands and the fitness craze, and a time of much change and innovation at The Coca-Cola Company. In 1981, Roberto C. Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola Company. Goizueta, who fled Castro's Cuba in 1961, completely overhauled the Company with a strategy he called "intelligent risk taking." 1990-1999: The 1990s were a time of continued growth for The Coca-Cola Company. The Company's long association with sports was strengthened during this decade, with ongoing support of the Olympic Games. 1993 saw the introduction of the popular "Always Coca-Cola" advertising campaign, and the world met the lovable Coca-Cola Polar Bear for the first time. 2000-Now: Now well into its second century, the Company's goal is to provide magic every time someone drinks one of its more than 400 brands. Coca-Cola has fans from Boston to Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest comers of the globe, you can still find Coca-Cola.

2.8 COCA COLA HISTORY IN PAKISTAN To provide Coca-Cola at arms length Coca-Cola Company started its operation in Pakistan in 1953, at Karachi. Coca-Cola was market leader till 1987. Till 1996, 10 bottling plants were being managed and run by the local partners under a franchise agreement. Based on companys strict policy on product quality and marketing

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& distribution standards, it was decided to purchase these bottling plants from the local partners. Coca-Cola Beverages Pakistan Limited (CCBPL) was incorporated in 1996. Coca-Cola Beverages Private LTD (CCBPL) is a joint venture between Coca-Cola International, Fraser and Neeves Singapore and Packages Ltd. Initially it acquired National Beverages LTD Karachi and later acquired International Beverages LTD Hyderabad .In May 1996, Fraser and Neeves, a Singapore based bottler of Coke, bought off the local bottlers in Karachi. Not long after it went on to acquire the bottling plants in Hyderabad as well. Objective was the acquisition of bottling plants from the local bottlers (i.e. Riaz bottlers) for and manages them to bring them upto CocaCola international quality and marketing standards and brings modern management practices in beverage field. CCBPL initial Paid-Up Capital stands at PKR. 3.5 Billion, with Coca-Cola Company and local partners having a 90: 10 shareholding pattern. The Coca-Cola System in Pakistan operates through eight bottlers, four of which are majorityowned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan and Lahore. The CocaCola System in Pakistan serves more than 70,000 customers/retail outlets. The Coca-Cola System in Pakistan has nearly 3,000 people working constantly for the company. During the last two years, The Coca-Cola Company in Pakistan has invested over $130 million (U.S) and coke has successfully provided 58 years of dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firm has been continuously changing its slogans and thats a very creative idea to get the attention of the customers. Since then coke has made an impressive impact on the local market by increasing its availability as well as its volume share. CCBPL has decided to expand its operations in Pakistan by buying other bottlers all over Pakistan. 1953 Brand Coca-Cola was Introduced 1961 Concentrate Plant was established 1965 Fanta flavor was Introduced 1972 Sprite Brand was Introduced
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2001 Diet Coke was Introduced 2005 Sprite Zero was launched 2007 Sprite 3G was launched 2007Kinley was launched 2008 Minute Maid was launched

At present, according to the sale Coca-Cola is at second position in Pakistan and the market leader is Pepsi. But overall in the world, Coca-Cola is the market leader with maximum market share. The head office of South West Asia region is in Lahore. Location and Market Coca Cola plant is located at: 23 Km Raiwind Road, Lahore Head Office: 5-E-Ii Gulberg III, Lahore Coca Cola is a multinational company and has its operations worldwide. Coca Cola Beverages Pakistan Ltd. Lahore In Lahore the franchise unit was established in 1964, with the wish or struggle to make it easy to distribute Coke in different areas and to make it No. 1 position in the market, and with the hope that it will play a great role in increasing the production and to make it popular in all over the country Business Areas In Pakistan, there are 11 territories where the franchised units produce and sell Coca-Cola. Some of these territories are: 1. Lahore 2. Karachi 3. Rawalpindi (warehouse
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4. Peshawar 5. Hyderabad 6. Multan

7. Rahim Yar Khan

8. Faisalabad 9. Gujranwala

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CHAPTER 3

Organization al Structure
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3.1 ORGANIZATIONAL HIERARCHY OF COCA COLA 3.2 ORGANIZATIONAL CHART (overall) per plant

3.3 ORGANIZATIONAL CHART CCBPL PLANT

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3.4 ORGANIZATIONAL CHART HR\IR DEPARTMENT

3.5 ORGANIZATIONAL CHART ACCOUNTS DEPARTMENT

3.6 ORGANIZATIONAL CHART MAINTENANCE DEPARTMENT

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3.7 ORGANIZATIONAL CHART SALES & MARKETING DEPARTMENT

3.8 ORGANIZATIONAL QUALITY CONTROL DEPARTMENT

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3.9 ORGANIZATIONAL CHART DISTRIBUTION & LOGISTIC DEPARTMENT

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CHAPTER 4

SWOT Analysis
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SWOT ANALYSIS STRENGTHS Coca-Cola has been operating successfully for over a century and has been ruling hearts of cola lovers. It is largely liked by consumers because of its strong, refreshing taste and above all its availability. It is easily accessible and within reach of consumers at large. Another strength of Coca-Cola is that its price. The price set by company is within reach of the customer and they can consume the quantity they want with less burden on their packets this is why the consumer base of cola drinkers have reached new heights ever rising . Packaging is a feature that adds value to Coca-Cola. It is available in all sizes for example 500ml, 2 liters, 2.5 liters so that one can enjoy the drink fully in the size which suits one. Coca-Cola is known world-wide and operates in more than 200 countries and with a great chunk of market share internationally, this gives Coca-Cola an edge over others when they launch a new product. Consumers feel secure consuming the products which are under banner of Coca-Cola and it is a result of a lot of hard work the company has done in order to create positive and valuable market image and goodwill. Another strength of Coca-Cola is the uniquely designed bottle which has distinctive features, like easy to carry. Coca-Cola always has strong advertising campaigns which put long lasting impacts on customers loyalty. Strong financial position of the company makes it easier for it to spend money on every department of the organization. Increasing annual per-capital consumption of Coca-Cola products is giving rise to the brand value. WEAKNESSES By weaknesses it is meant the missing elements which make the company vulnerable to changes. Even though Coca-Cola is one of the top most recognized brands throughout the world but still there are some factors where Coca-Cola has to work in order to eliminate shortcomings. One of the weaknesses is the distribution network. When operating in small countries and new places strong distribution is more than important so that the target consumer gets the product in the shape he or she expects. But when taking transportation in to consideration PepsiCo is way
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ahead of Coca-Cola. Need of the hour is to find some good distributors or Coca-Cola is highly financed company it can start its own distribution so that it does not lose out on customers cause of false or late deliveries. In countries like Pakistan where sweetness counts Coca-Cola has to work really hard. In Pakistan, Pepsi wins over Coca-Cola because people prefer a sweeter drink. Coca-Cola really has to work on flavor so that it may not lose customers in markets like Pakistan where cola drink is consumed in large quantities. OPPORTUNITIES A true global brand, CocaCola offers its products in over 200 countries and produces 4 of the top 5 soft drink brands. Coca-Cola Classic is the worlds most well-known product and the bestselling soft drink in history with consumption of 1.3 Billion servings per day. The companys long-term lead in the beverage industry presents a challenge. As it has become a favorite of the masses, the classic imagery of Coca-Cola is losing the battle for the youth market to drinks perceived as trendier and having more of an edge, such as Dr. Pepper and Mountain Dew. Blind taste tests conducted by Beyond Advertising and reported in other studies indicate most people cannot accurately identify a cola brand based on taste. Pepsi and other soft drinks have been preferred by the younger generation primarily based on attitude, not on taste. In this context, Coca-Cola does have an opportunity to increase consumption of its flagship brand. When it comes to opportunities Coca-Cola has significant growth opportunities. The reason for this opportunity is that Coca-Cola has the potential to bring out new ideas and implement in a way that it catches attention of new customers and make old customers loyal customers. With a large consumer base Cokes growth in sales and market share is growing at a good rate. Another potential opportunity which Coke enjoys is that it has capital in billions to expand. Expansion here means finding new markets, more research for capturing markets and to increase the number of countries it operates in. Coca-Cola has always been known for being innovators and the one that bring change. By taking this opportunity properly into hand Coke can easily float new ideas and make positive impacts on its existing market share and further differentiate the company's products to sustain a competitive advantage and become market leaders. Coca-Cola is
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highly trusted in the consumers circles Coke can easily through some new products in the market such as Coca-Cola in different flavors because the trust Coca-Cola enjoys is the edge which will lead to increased sales and profits. It will further increase the product and business life cycle of Coca-Cola. Music is a big opportunity for Coca Cola. Coke Studio has shown a significant increase in the marketing share (up to 10%) as it has covered masses, both rural and urban, in Pakistan. THREATS A major threat which Coca-Cola faces is from Pepsi which is increasing its product range day by day and catching consumers. But it can be tackled by making the right moves, most likely making new ads and campaigns at grass root level. PepsiCo may merge with other small companies to eliminate Coca-Cola, for this Cole must try to come from above on the small players and try to capture them instead of making Pepsi stronger. PepsiCo and other competitors may develop marketing strategies to eliminate The Coca-Cola Company but Coca-Cola is known for its innovative trends it must bring some new ideas as an answer to competitor and gain competitor edge if the pressure put by competitors is not properly handled there may be an economic downturn in the business life cycle of Coca-Cola. A research revealed that Coke has not been as aggressive as its competition in the use of visual icons, language or sounds that resonate with youth. A fresh, more youth-relevant image can win Coca-Colas additional market share. The market segment has been criticized for rising obesity among children. There is a possibility of beverage demand reduction and Coca-Cola as a beverage is concerned about it. Moreover negative publicity on sugar/calories products, Awareness about obesity amongst youngsters, triggered by the consumption of non-diet carbonated soft drinks. The ever increasing regulation against soft-drink distributors like water shortage and it is Cokes main ingredient that could affect its production negatively.

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CHAPTER 5

Organization al Analysis
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Coca-Cola vision statement: We will become the best and the biggest anchor bottler in the world

CCBPL has a very flat hierarchy, consisting of just three layers. Thus, the top management handles most of the goals setting and planning activities. The objectives of this company can be classified as:

5.1 STRATEGIC GOALS: The strategic goals are considered when company is thinking of the long-term objectives but at coca cola strategic objectives and goals are set up for three years. These strategic goals are decide by the top management with consultation by the parent company head quartered at Singapore. However, they are reviewed every year in the annual meeting to make sure that they are in line with the changing environment. They are: 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.

5.2 TACTICAL GOALS: The top management of the company on an annual basis devises these goals together with the consultation of the lower level employees. Then each departmental director is given these annual
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tasks that then subdivide it on the quarterly or monthly basis to have a proper check to ensure that these objectives are achieved, mainly through marketing, is the job of the director of each division. For this year, these goals are: To increase the revenues by 20% as compared to last year. To increase the total retail customers by around 10%. To increase the market share by 5%. To reactivate the discontinued customers by 30%.

5.3 OPERATIONAL GOALS: Operational goals are decided by the top management in consultation with the lower level employees. They are following the concept of management by objectives (MBO). Each employee is assigned its goals and is told what is expected of him and then he is evaluated on the basis of certain rules and regulations followed evenly by the company. For example: a sales man is given following tasks, duties and certain targets: Each salesman has to oversee around 100-125 outlets. The frequency of visits to each outlet depends upon the sales of that particular outlet. Normally, a salesman has to visit a single outlet thrice a week i.e. every alternate day. This means that a salesman visits at least 20-30 outlets per day. The salesman has three basic functions to perform. To find new customers, To retain existing ones, To bring back the discontinued accounts.

Each salesman has to bring in at least three new accounts every month. These may either be new customers or the reactivation of the discontinued accounts.

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Sales manager is made responsible for the performance and achievement of operational goals and is assigned to set certain milestones for the salesman so as to give him proper feedback, which definitely helps the salesman achievement of the above-mentioned goals.

5.4 DECISION-MAKING The decision-making process in CCBPL is centralized. The model used is classical, whereby the top management takes their time while making decisions and explore and evaluate all the possible alternatives before choosing the rationally economic and feasible solution. Programmed decisions are made only by the top management with no consultation what so ever with the line managers while the daily and routine decisions are made by the line managers at the middle level with the prior permission or approval from the general manager. Decisions, which are normally taken at the top management, are related to The package positioning Trade discounts Advertisements Price reductions Distribution While recruiting new employees, the top management approves the vacancies and asks the Human Capital Department to conduct the written test and this test normally is conducted for the employees at the lower level. Then prospective applicants are short listed through the interview process. Then the Business and operations manager or general manager personally interviews the employees and then makes the final decision about the selection himself.

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Hence, the style of decision-making followed by the CCBPL model, is AII. That is, the decisions are made on the basis of the inputs provided by the lower level employees and the managers at the middle management level. Top management asks for the suggestions and ideas of his subordinates and then takes the final decision himself. However, the remaining decisions, which are mainly related to the daily operations, are made by the respective managers who are eventually made responsible for the results. The management is very much cooperative and encourage its employees to come up with new ideas related to their duties and the work they do so as to increase the overall efficiency of the organization and eventually increasing the profits. 5.5 POLICIES & GUIDELINES Acceptable Use Policy Anti-Bribery Policy Code of Business Conduct for Suppliers to The Coca-Cola Company Competition Law Guidelines Competitive Intelligence Policy Delegation of Authority Director Appointee Guidelines Guidelines for Handling Code of Business Conduct Matters Information Protection Policy Insider Trading Policy Privacy Policy Travel & Entertainment Policy Workplace Rights Policy

5.6 CODE OF CONDUCT Act with Integrity

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Be Honest Follow the law Comply with the code Be accountable

Managers should at all times model appropriate conduct. As a manager:

Ensure that the people you supervise understand their responsibilities under the Code and other Company policies.

Take opportunities to discuss the Code and reinforce the importance of ethics and compliance with employees Create an environment where employees feel comfortable raising concerns.

Consider conduct in relation to the Code and other Company policies when evaluating employees. Never encourage or direct employees to achieve business results at the expense of ethical conduct or compliance with the Code or the law. Always act to stop violations of the Code or the law by those you supervise

For financial and business reports: Always record and classify transactions in the proper accounting period and in the appropriate account and department. Do not delay or accelerate the recording of revenue or expenses to meet budgetary goals. Estimates and accruals must be supported by appropriate documentation and be based on your best judgment. Ensure that all reports to regulatory authorities are full, fair, accurate, timely and understandable. Never falsify any document. Do not distort the true nature of any transaction.
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Never enable another persons efforts to evade taxes or subvert local currency laws. For this reason, payments generally should be made only to the person or firm that actually provided the goods or services. Payments should be made in the suppliers home country, where it does business, or where the goods were sold or services provided, unless the supplier legitimately has assigned payment or sold its accounts receivable to another entity. Exceptions must be approved by the Ethics & Compliance Office. Privacy: The Company respects the privacy of all its employees, business partners and consumers. We must handle personal data responsibly and in compliance with all applicable privacy laws. Employees who handle the personal data of others must: Act in accordance with applicable law; Act in accordance with any relevant contractual obligations; Collect, use and process such information only for legitimate business purposes; Limit access to the information to those who have a legitimate business purpose for seeing the information; and Take care to prevent unauthorized disclosure.

Gifts, Meals and Entertainment: Do not accept gifts, meals or entertainment, or any other favor from customers or suppliers if doing so might compromise, or appear to compromise, your ability to make objective business decisions in the best interest of the company.

Corporate Social Responsibility:

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CCBPLs corporate commitment is incorporated into an internal policy that ensures : Their products are safe and healthy for the consumer. Their products and operations do not negatively affect the environment. Treating their workers and applicants with equality and that their suppliers also meet certain social and environmental standards. CCBPL is affiliated to different NGOS.

They have a School Adoption Program all over the country where they provide facilities to those schools whom nobody owns and takes care of them. They are planning to install water recycling plants under Give it Back program, at their each territory. The refrigerators that they use or provide to stores or bodegas are environmentally friendly, which minimizes their carbon footprint.

CHAPTER 6

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Organizing

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6.1 DEPARTMENTS OF COCA COLA Every organization is made up of different departments, each of these departments help Coca Cola achieve their objectives. As Coca Cola is a large multinational company, the amounts of departments are huge. Each country has their own Head Office and departments. Coca Cola is geographically split into five geographic operating segments, also known as strategic business units (SBU's). The six SBU's are North America, Africa, Asia, Europe, Middle East and finally Latin America. If all departments perform in the correct way then that will continue the success of Coca Cola. There main functional departments within Coca Cola are: Marketing Finance Packaging Sales Research and development Administration Distribution and Logistics Department

Marketing Department The Coca Cola marketing department develops core strategies for company brands to ensure that all communication is consistent in every market. With this cohesive effort, the Coca-Cola system maximizes its resources for market leadership and profitable growth. The marketing departments are responsible for marketing the products and advertising the products and promoting the products. If all these departments perform their duty firmly then the objectives of The Coca-Cola Company will meet. Finance Department
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The finance department of the Coca Cola Company is responsible for financial record keeping. This involves keeping records of money received and paid out. The financial records will be used to produce the annual reports for the shareholders so that they can see the company performance. The Finance department is also responsible for the management accounts of the business like marketing etc. The Coca-Cola Company finance department is also responsible for making budget of the company and for each department like marketing department or research and development department. They will also be involved in the planning process like taking over or any major decision. Packaging Department The packaging department of Coca-Cola Company is responsible for the packaging of the products. They have to make the packaging attractive so that that product meets the eyes of the consumers. Bringing new products package is their responsibility. It works with the companies bottling partners to produce an attractive combination. Sales Department The sales department of the Coca Cola Company is to coordinate the selling program. They also have to make the distribution methods, etc. Also, decide how much to sell and how much to store in the warehouse and to choose the transporting method which is the most cost efficient and the quickest way. Research & Development Department This department has their budget given by the finance department and their responsibility is to investigate new products. They work closely with marketing by looking at marketing research findings. They have to bring new products in the market for the change because the consumer cannot stick with the same old products. If necessary then they also have to improve the quality of the products. The Coca-Cola Company research department has done a lot of research and recently they have launched many new products like Diet coke with lemon, Fanta Tropical, Minute maids, Fanta raspberry, Fanta blue berry etc.
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Administration Department This department is essential for keeping the business going. They act as a help support of the company, it is not the central purpose the business but every business organization would need this department. Most businesses rely on administration to be organized. They deal with enquiries, give messages produce documents and give information to any customer. The complaints that this department will get would be transferred to the research and development department to make the product better or fix the problem that the consumer is having. These departments are the most important department of The Coca-Cola Company because they helps the company to meets the objectives of The Coca-Cola Company i.e. surviving, customer satisfaction and make more profits. As I said that the help desk department satisfies the customer by providing the information they needs and taking the complaints and passing to the research and development departments who improves the products. Distribution and Logistic D&L department is basically the combination of two departments these are logistic and shipping department. The whole transports and vehicles are arranged and maintained by logistic department. The shipping department is responsible for the maintenance of inventory of empty bottles. This department improves the goodwill and efficiency of the organization. All the employees working here are responsible for all shipping activities e.g. monitoring of timely vehicle loading, unloading, vehicle checking, emptying feeding to production, stock receiving from the production, dispatches to distributors and sales centre, stock counting and reconciliation. They also coordinate with the excise department on hourly basis. The D&L department has to coordinate with the production and marketing department also because lots of its functions were depending upon these two departments. The data entry of all transactions is essential and most important task of this department so they have the complete
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record that where which resource is utilized and what company is gaining from it. The distribution and logistics department manger ensures the effective accomplishment of all tasks and coordinate and manage all the activities. The CCBPL has divided its marketing and sales department as follows:

Marketing and Sales

Post Mix dept

Collar injunction treatment

Key Accounts

Post Mix Department This department is responsible for providing the post mix machines to different and famous hotels. It is difficult to deliver its product to different regions then it gives post mix machines for making bottle of different flavour so whenever customer wants Coca Cola products, they are prepared from it and served to consumers instantly. Collar Injunction Treatment The second sub department which comes under the marketing department that is CIT. The employees of this department are responsible for providing refrigerators to different outlets. The reason of providing the fridges to different retail outlet is providing cool and refreshing
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bottles to the customer so they really enjoy drinking coke whether in summer or winter. The CCBPL responsibility does not end after providing the refrigerators to shops or to retailers but it also take the responsibility of repairing and maintenance of the fridges. Key Accounts The third and last is key accounts. The employees of this department are responsible for targeting new markets and advertisement for the promotion of the product and making people aware about the coca-cola bottles. 6.2 LEVELS OF MANAGEMENT We can subdivide the company management into the following three main levels. TOP MANAGEMENT It consists of Chairman, HR & Admin Manager, Senior Manager Finance & Accounts, Senior Marketing Manager and General Manager. The Top management formulates policies and makes decisions about the company activities for achieving the objectives. General Manager implements these policies and decisions in the factory. The General Manager's authority consists of the following. * * * Makes decisions within the scope of his own authority. Assigns tasks to subordinates in their areas. Expects and requires satisfactory performance form subordinates. MIDDLE MANAGEMENT This level of management consists of Assistant Manager, Labor Officer, Security Officer and Time Officer. This type of management receives orders from General Manager and implements them through the co-operation of lower management. While the main responsibility of middle management is to control and direct the operations with the consent of General Manager to get
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work done. It involves in standardized production, supplies, good working conditions and definition of standard performance and reporting of flow of work. LOWER MANAGEMENT This department is headed by Assistant Manager and supervisor. Assistant Manager controls all the activities of the factory according to the rules and regulations receive from General Manager. While he performs the following main function: a) To maintain good relations with outside public. b) Good relations between Govt. and Factory. c) Good relations with general public.

Risk Management The Company has a system for assessing and monitoring its potential business and financial risks. The components of this risk management system are designed to help enable us to anticipate risks and to manage them carefully in the pursuit of our business goals. The principles, guidelines, processes and responsibilities of our internal control system have been defined and established to help ensure prompt and accurate accounting of all business transactions and to continuously provide reliable information about the Companys financial position for internal and external use. However, the components of the internal control and risk management system do not eliminate risk entirely and, thus, cannot prevent loss or fraud in all cases. We intend to rapidly adjust the risk management and monitoring procedures of all businesses acquired during the fiscal year, so that they conform to coca-cola standards. Management Commitment

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The management of Coca-Cola Pakistan(CCBPL) is committed towards ensuring the effectiveness and continual improvement of management system through: Establishing those policies which are appropriate to the purpose and the corporate principles of the company; Establishing measurable Objectives at all relevant functional levels; Creating awareness among employees about the relevance and importance of their activities towards the achievement of companys goals and applicable statutory and regularity requirements; Establishing measures that are aligned with the interests of the stakeholders; Creating a customer focused environment whereby their needs and expectations govern the actions of the organization;
Instituting mechanism for taking customers feed back; handling of complaints on priority

basis and taking corrective and (which required) preventive actions; Provisioning of the necessary resources to implement; maintain and improve the Management System and to facilitate the enhancement of customers satisfaction; Conducting periodic and timely management reviews to ensure the continuing suitability adequacy and effectiveness and to assess the opportunities for improvement in the Management System; Role Of Executive Management Committee in Policy Formulation The Executive Management Committee comprising the CEO, the CFO COO, and the Executive Directors of the operating divisions meets regularly to review the results of operations, to formulate strategic plans of marketing, production, investments, to finalize annual and seasonal budgets and to take active and preventive measures for mitigation of risks and for seizing business opportunities. The committee places before Board Of Directors all such matters which are required to be approved by it under the law as well as other matters of importance.

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Managing Director & Chief Executive Officer(CEO)

The managing Director & Chief Executive Officer has the overall responsibility for

implementing policies and company objectives and for ensuring their achievement. He is authorized by the Board of Directors to delegate powers to selected functionaries for the achievement of operational and strategic achievement of these goals. He defines the objectives and ascertains their implementation through an established Management system which he constantly monitors. He assumes the overall responsibility for the quality of the products and services which are manufactured and marketed by the company. Executive Committee The Executive Committee comprises of managing Director & Chief Officer, Chief Financial Officer and all the Executive Directors. This committee meets on at least quarterly basis to address issues in relation to the achievement of the companys objectives and implementation of company policies. Chief Financial Officer Chief Financial Officer is responsible; For ensuring that the company remains profitable; For ensuring there is positive cash flow in the company; To deploy and monitor the resources required for the achievement of above targets How Work Is Done In The CCBPL The departments of the organization like marketing, production, planning, buying, and distribution department work together to fulfill the demand and to procuring the raw material that is required for production.

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Marketing department receive orders from the customers and necessary information which beneficial for the organization. From marketing this data going to planning department and planning department determine the total demand and required raw Material for the demand. Planning department is the center point of whole process. Planning say to buying to purchase raw material with considering the lead-time Than buying department thinking about purchasing the raw material and contact With suppliers and choose certified suppliers and check the quality the raw material and purchase the raw material if it is satisfy with all specification. Planning department also say to production department to produce required products at time, about categories and lot size which should fulfill the demand and time when products are required. Then production department get the required raw material from the buying department which have been already purchased that material .Now Production department start the work and manufacture all products as soon as required. Planning department also say to distribution department to place the shipments and timing of that shipment. Distribution dept. gets the finished goods from the production and ship the products at mention places and get the receive approval from the Customer. In this way all process continues and works in the sequence. Efficiency of the organization depends upon all departments of the organization. Specifically planning, marketing, distribution, buying and production departments play more important role to increase the efficiency of the organization. WORKING Planning Department Marketing Production Buying Distribution Department Department Department Department Chart 10:

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6.3 ORGANIZATIONAL STRUCTURE Implementation

This organization is functional based organization. Coca-Cola uses a broad span of control.

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CHAPTER 7

Staffing

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Recruitment is normally done on the required positions and not on the standby basis. Recruitment starts whenever a supervisor or sales manager needs a salesperson and it is first approved by the general manager before sending it to the human resources department. All the vacancies are first internally advertised so that all the employees who fulfill the requirements can avail this opportunity. If there arent any suitable persons for a particular job then human resource department search its data bank and if there is no suitable person then at last it is advertised in the newspaper but it is rarely the case at coca Cola for the sales man. Selection is based on different criterion for different positions. Education requirements are the first and the most important and are the first part of the screening of the personnel. After the screening stage, applicant is called for the aptitude test. For a salesman job simple arithmetic and general knowledge is tested. Know how of English is also necessary in some cases. After passing the aptitude test applicant is asked to appear for an interview. This interview is normally carried out by the sales and human resource department. Purpose of this interview is to confirm the data and claims, which the applicant has produced and made. If the applicant is selected, he is asked for four sureties or any other references, which he can make and sometimes, human resource department also like to confirm from their Ex-Employers about the conduct and the reason for leaving of the applicant. Selection:
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The selection process will vary depending on the position applying for, as one process cant fit all the different roles at CCBPL. However, in most cases a combination of any of the following tools will be used: Interview Group exercises Presentations Psychometric tests Role plays/Situational Exercises Interview

Training: At Coca cola on the job training is given the utmost importance. At first a sales man is given information about the product, sales environment and company policies and procedures. Ethical behavior is emphasized most so as not to create any sort of bad habits which can cause great problems for the company. Normally a new sales man is supposed to work under another salesman to learn the basics of selling techniques and the overall environment in which he will be working. A salesman is then allowed to work under the salesman but he is asked to perform all the operations by his own. These include filling out the route card, dealing with the customers, communicating with to loader, cash management, setting the visi cooler and the next days order to be loaded. After doing all this if has any problems in learning then he is guided by salesman, market developer, and sales manager if required. Apart from this on the job training, the company also has some in-house training facilities. The company has a sales hall in which all the sales personnel are given some tips regarding the changes in the selling environment and how to improve efficiency and efficacy. These tips are normally given by the general manager. Coca Cola also arranges some type of seminars, workshops and modules related to the sales management, Forecasting of the daily sales, merchandising, selling skills, supervisory techniques and other areas related to the sales.
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Coca Cola does not have any library and special trainers but they do have the separate space for the training and they also use some sort of videos to elaborate and show the examples of effective selling skills and techniques. To maintain the professional employees company has a policy of promotion from within. Promotions are based on the performance, which is measured very objectively. Apart from this the company pays its employees more than the industry wages. Not only the wages and salary but different other benefits are also given to employees to motivate and retain them in the organization. The company also has an effective incentive plan. Internships: The company offers a number of internship programs for undergraduate and graduate students.

CHAPTER 8

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Leading

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8.1 LEADERSHIP STYLE Coca-Cola gives great importance to its General Managers, because they hold a top position in the organization. They are required to take major administrative and general decisions and also these managers are responsible for leading and motivating their subordinates and staff people. Increasing business with a coordinated approach by helping each other in its operations. Encouraging the employees to give new ideas so as to increase the customer satisfaction. Due to the presence of delegation and participation the Democratic Leadership Style is used since managers have to run the organization by involving their workforce and considering them as an important part of the organization. Sales and Marketing Departments make the use of team work to keep the interest of their fellow employees developed. Juniors are not considered inferiors rather they are given a good dosage of experience and help that they start working on their own without the words of their managers. Performance awards are also there for lower level employees so that they perform at their best and work at least to get the awards. 8.2 EMPLOYEE COMPENSATION & BENEFITS The compensation objective is to improve performance of employees and convey a message to employees that company is loyal with employees. We give following compensation and benefits:

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Basic salary Bonus Medical facility Pick and drop Social security Cell phone Balance Annual Leaves Designation Supervisor Above Supervisor Below supervisor then Allowed leaves 26 leaves per annum 26 leaves per annum 24 leaves per annum

8.3 MOTIVATION As mentioned earlier promotions are given on performance in CCBPL, so the employees gets motivated to work hard and achieve that level of performance so that they may prosper within the organization. Also amount of wages is relatively higher than a normal industry wage that creates a major difference not only the old employees work faithfully but the new ones are motivated to become part of such a good organization whose main priority is lower level employees. Managers give their teams timely feedback on their teams performance and keep them motivated by helping them personally without any rules and restrictions also those who want to come forward are given a shoulder, a step to make their dream come true. Further more to recognize and appreciate the good work by the employees, trophies, cash prices and excellence awards are also given. Every month the list of top ten performances given by the employees is issued by EXCOM, to recognize and laud the efforts and boost their morals for good work. Stress Management There is no formal implementation of stress management policies in CCBPL. But because they want maximum output from their employees, so they provide them different entertainment and
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recreational activities which include trips, tours, occasional parties and gatherings are also held where people come with their families. Every month, in the each territory, the birthday party is arranged where all the employees having different designations including office boy, kitchen staff are invited to cut the cake and celebrate their birthday with the whole staff.

8.4 COMMUNICATION Open culture is the basis of communication in the organization. Employees are consulted by the top management for the decision process and the chain moves on. Managers also cop up with their teams and their offices are open 24/7 for those who want to remove any confusion. Sometimes even the Grape Vine structure is used too so that the management can get the feedback of the employees about their working, which helps managers a lot in making further decisions. 8.5 CORPORATE CULTURE Top Management takes great care of the Organizational Rules & Regulations which ought to be followed by every personnel of the company. Every employee is made well aware of the norms and values of the organization and formal set of rules is strictly followed so that some people may not benefit from the name of company and turn it into a dirty fish in front of the world.

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CHAPTER 9

Controlling

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Control is done through the evaluation, which is based on the very objective basis. Certain criteria are fixed in advance and if these criteria are not met then the employees are asked and evaluated for the reasons and corrective actions are taken by the respective managers. Different departments have different criteria and different reporting and controlling systems. The reporting, evaluation and control system of sales departments is follows: Sales Persons Reporting system: Every sales person directly reports to market developer of his area. A sales person is supposed to give him a daily report of his activities and he is free to ask for any kind of assistance from the market developer. Every salesperson is given an attendance punch card, which records his arrival and departure time. He is also given a route call card, which he is supposed to fill out. This card includes all the details about the visits of the outlets, time spent on these outlets, sales made on these outlets, time spent on these outlets, sales made on these outlets, time during travelling, names of the loaders and salespersons time in and time out of the vehicle. Apart from this a sales person is also given a form to fill up for the next days order to be loaded in the truck. This basically tells about the total sales of the salesman according to the brand and the size of the product. This basically is used by the human resources department to evaluate the performance and calculating the total salary of the salesman.
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Sales Persons Evaluation System: Every salespersons evaluation is done on quarterly basis. Evaluation helps the company to promote the people to the higher levels of the organization. This evaluation also motivates salespeople to work hard and get the promotion or at least the monetary rewards, which are given not only to the best salesman but the best market developer and the best sales manager of the year. Performance is evaluated on the basis of performance development plan. Performance is measured on the basis of achievement of the targets, which are set and communicated at the very beginning of the year to each sales manager, each quarter to every market developer and every month to each salesperson. This performance development plan evaluates the sales people on the basis of call slips, Route call, Call completion, Effective and productive call, attendance, growth in sales, market development and the punctuality of the salesman.

TOTAL QUALITY MANAGEMENT (TQM) Passion for Quality Marketplace Workplace Environment Community

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CHAPTER 10

Competitor Comparative Analysis

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10.1 BEVERAGE INDUSTRY IN PAKISTAN In Pakistan, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers. The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows: Non-alcoholic and sports beverages Natural and synthetic beverages In-home consumption and out of home on premises consumption. Age wise segmentation i.e. beverages for kids, for adults and for senior citizens Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption. If the behavioral patterns of consumers in Pakistan are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable.

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Four strong strategic elements to increase consumption of the products of the beverage industry in Pakistan are: The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages. Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category. Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume. The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy. Market Share of Companies in CSD

Advertising Budgets: The graph below shows the advertising budget of the top five players in the carbonated soft drinks market. The amount is in billions with Pepsi leading.
Figure 1

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Figure 2

10.2 PEPSI "We have absolute clarity about what we do WE SELL HIGH QUALITY FOOD AND BEVERAGE PRODUCTS. Our success will ensure: customers will build their business, employees build their futures, and shareholders build their wealth." History of Pepsi History of Pepsi starts when; Caleb Bradham, who was a young pharmacist, started experimenting with different soft drinks in 1893. He had a soda fountain in his drugstore where he used to serve his customers refreshing drinks. He was famous for his self-created beverage which was called Brads drink that was made of carbonated water, sugar, vanilla,
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Figure 3

rare oils, pepsin and cola nuts. This drink was later renamed Pepsi Cola. He then bought the trade name Pepsi Cola. This new name was trademarked in 1903. In 1898, Pepsi Cola received it first logo. Caleb then applied for a trademark with the U.S. Patent Office, Washington D.C and formed the first Pepsi-Cola Company in 1902. New Bern Weekly Journal printed the first PepsiCola advertisement. Bradham then shifted his operations into a rented warehouse. Pepsis theme line then was Exhilarating, Invigorating, Aids Digestion. Taglines of Pepsi 19391950: "Twice as Much for a Nickel" 1950: "More Bounce to the Ounce" 19501957: "Any Weather is Pepsi Weather" 19571958: "Say Pepsi, Please" 19581960: "Be Sociable, Have a Pepsi" 19611964: "Now Its Pepsi for Those Who Think Young" (jingle sung by Joanie Sommers) 19641967: "Come Alive, You're in the Pepsi Generation" (jingle sung by Joanie Sommers) 19671969: "(Taste that beats the others cold) Pepsi Pours It On". 19691975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give" 19751977: "Have a Pepsi Day" 19771980: "Join the Pepsi People (Feeling Free)" 19801981: "Catch That Pepsi Spirit" (David Lucas, composer) 19811983: "Pepsi's got your taste for life" 1983: "Its cheaper than Coke!" 19831984: "Pepsi Now! Take the Challenge!"

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19841991: "Pepsi. The Choice of a New Generation" (commercial with Michael Jackson and The Jacksons, featuring the Pepsi version of "Billie Jean", "Bad" and "Black or White". "Black of White"'s was promoting the Dangerous World Tour.) 19841988: "Diet Pepsi. The Choice of a New Generation" 19881989: "Diet Pepsi. The Taste That's Generations Ahead" 19891990: "Diet Pepsi. The Right One" 19891992: "Diet Pepsi. The Taste That Beats Diet Coke" 19861987: "We've Got the Taste" (commercial with Tina Turner) 19871990: "Pepsi's Cool" (commercial with Michael Jackson, featuring Pepsi version of Bad) 19901991: "You got the right one Baby UH HUH" (sung by Ray Charles for Diet Pepsi) 19901991: "Yehi hai right choice Baby UH HUH" (India) 19911992: "Gotta Have It"/"Chill Out" 19921993: "Be Young, Have Fun, Drink Pepsi" 19931994: "Right Now" (Van Halen song for the Crystal Pepsi advertisement) 19941995: "Double Dutch Bus" (Pepsi song sung by Brad Bentz) 1995: "Nothing Else is a Pepsi" 19951996: "Drink Pepsi. Get Stuff." Pepsi Stuff campaign 19961997: "Pepsi: There's nothing official about it" (During the Wills World Cup (cricket) held in India/Pakistan/Sri Lanka) 19971998: "Generation Next" (with the Spice Girls) 19981999: "Its the cola" (100th anniversary commercial) 19992000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercial with Britney Spears/commercial with Mary J. Blige) 19992006: "Yeh Dil Maange More!" (India)
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2003: "Its the Cola"/"Dare for More" (Pepsi Commercial) 20062007: "Why You Doggin' Me"/"Taste the one that's forever young" (Mary J. Blige) 20072008: "More Happy"/"Taste the once that's forever young" (Michael Alexander) 2000present: "pepsi ye pyaas heh bari" ((Urdu) meaning "There is a lot of thrist" (Pakistan)) 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake) 2008: "epsi is #1" v commercial (Luke Rosin) 2008present: "Something For Everyone" 2009present: "Refresh Everything"/"Every Generation Refreshes the World" 2009present: "Yeh hai youngistaan meri jaan" (Hindi) 2009present: "My Pepsi My Way"(India) 2009present: "Refresca tu Mundo" (Spanish - meaning "Refresh your world") (Spanish Spoken countries in Latin America) 2010present: "Every Pepsi Refreshes The World" 2010present "Pepsi. Sarap Magbago." (Philippines - meaning "Its nice to change") 20102011 "Badal Do Zamana" (Urdu - meaning "Change The World" by CALL)(Pakistan) 2010present: "Pode ser bom, pode ser muito bom, pode ser Pepsi" (Can be good, can be very good, can be Pepsi) - Brazil 2011present: "Change the game" (Bangladesh, India for the 2011 Cricket World Cup) 2011present "Dunya Hai Dil Walon Ki" (Pakistan-meaning World is For Lovers by Ali Zafar) Advertising Techniques Banners Hoardings Pamphlets Leaflets
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TV Commercials Radio Commercials Paintings of Trucks Shop Decorations Fridge / Deep Freezers to shops Match Sponsorships TV Programs Sponsorship Print Ads in Newspapers Celebrity Sponsorship etc. Corporate Responsibility

Pepsi Co, allocates the budget according to the marketing plan on different activities for example cricket tournament, concerts, charity shows etc. There has been an increase in advertising budget since the cola war and increased number of competitor. Budget is further spent on areas according to priority in marketing plan. For example Pepsis new music marketing with the name of Pepsify has been launched. This year a greater chunk of marketing budget has been allocated to it. Advertising Budget For Total Market Place Spending Allocated in Rs.: 2007 2006 2005 2.9 Billion 2.7Billion 2.8 Billion

For Advertising Allocated in Rs.: 2007 1.9 Billion

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Figure 4

2006 2005

1.7Billion 1.8 Billion

There has been a 13% increase in the advertising cost of Pepsi, as the competition level is rising in the local as well as international market.

Pepsis advertising through the years

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10.2 COCA COLA 'Remind Coca-Cola is the real thing' but their motto now has changed to 'To benefit and refresh everyone who is touched by our business.' Also Coca-Cola would hope to provide the best quality drink for everyone, all the employees working for them being at their top and fullest. Advertising Slogans of Coca-Cola: 1886 1900 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1919 1920 1922 1923 Drink Coca-Cola Deliciously refreshing Coca-Cola is a delightful, palatable, healthful beverage Drink a bottle of carbonated Coca-Cola The drink of quality Cooling... refreshing... delicious Sparkling - harmless as water, and crisp as frost Delicious, wholesome, refreshing Whenever you see an arrow think of Coca-Cola It's time to drink Coca-Cola Demand the genuine - refuse substitutes The best beverage under the sun Pure and wholesome The standard beverage It's fun to be thirsty when you can get a Coca-Cola The taste is the test of the Coca-Cola quality Coca-Cola is a perfect answer to thirst that no imitation can satisfy The hit that saves the day Quenching thirst everywhere Refresh yourself

1924 1925

Pause and refresh yourself The sociable drink

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1926 1927 1928 1929 1930 1932 1933 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944

Stop at the red sign and refresh yourself Pure and wholesome A pure drink of natural flavors The pause that refreshes Meet me at the soda fountain Ice-cold sunshine Don't wear a tired, thirsty face The drink that keeps you feeling right What refreshment ought to be America's favorite moment Anytime is the right time to pause and refresh Coca-Cola goes along Bring in your thirst and go away without it A stop that belongs on your daily timetable The only thing like Coca-Cola is Coca-Cola itself That extra something How about a Coke

1945 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963

Whenever you hear "Have a Coke," you hear the voice of America Coke knows no season Delicious and refreshing Coca-Cola....Along the highway to anywhere Help yourself to refreshment Good food and Coca-Cola just naturally go together Coke follows thirst everywhere Dependable as sunrise For people on the go Almost everyone appreciates the best Feel the difference Sign of good taste Refreshment the whole world prefers Cold, crisp taste that deeply satisfies Relax with Coke Coke and food - refreshing new feeling Enjoy that refreshing new feeling A chore's best friend
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1964 1965 1966 1970 1971 1975 1976 1979 1982 1985 1986 1989 1990 1993 2001 2003 2005 2006 2007 2008 2009 2010 2011

You'll go better refreshed Something more than a soft drink Coke...after Coke...after Coke It's the real thing I'd like to buy the world a Coke Look up America Coke adds life Have a Coke and a Smile Coke is it! We've got a Taste for You (Coca-Cola and Coca-Cola classic) Catch the wave (Coca-Cola) Can't Beat the Feeling Can't Beat the Real Thing Always, Coca-Cola Life Tastes Good Real Make It Real The Coke Side of Life Live On The Coke Side Of Life Unity on the Coke side of Life Open Happiness Twist The Cap To Refreshness Life begins here Advertising Techniques

Banners Hoardings
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Pamphlets TV Commercials Radio Commercials Paintings of Trucks Shop Decorations Fridge / Deep Freezers to shops TV Programs Sponsorships Print Ads in Newspapers. Corporate Responsibility

Today Coca-Cola Company offers more than 450 brands that comprise over 2,800 beverage products in more than 200 countries. From diet and regular sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks, waters, sports and energy drinks, teas and coffees.

Figure 5

In Rs. 2007 2006 2005 2.8 Billion 2.6 Billion 2.5 Billion

-- Due to previously held cola wars the advertising budget is kept the one that matches Pepsis as these two companies have always competed with each other on the grounds of marketing and advertising.

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Coca-Colas Pictorial Advertising through the years

10.3 SHANDY COLA

History of Shandy Cola Shandy Cola was established in 1995 and in a short span of 12 years has acquired a prominent position in the Beverage industry in general
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especially amongst local industry. Shandy is equipped with latest fully automatic plant of international standard. Shandy cola is presently available in 300ml, one liter and 1 liter, PET bottle packing. & 2 liter sizes will be launched soon to cater for the needs of small and large family segments. Shandy is the pioneer in introducing 250 & 270ml bottle in PET to make soft drinks more accessible. Introduction of PET bottles reduced many other product handling related hassles, since PET is unbreakable, free from minor brim damages, light in weight and does not need return of empty bottles Distributors, Dealers, Retailers, company itself and most important the consumer has benefited from PET in terms of economy, time and unnecessary double loading/unloading. Shandy with its strength of operating on most modern Plant, best Marketing and Distribution practices and being customer focused company is expanding taking strides. Our major strength lies in our Human Resource. Our internal customers (employees) are partners to Shady cola and their enthusiastic support for the organization is the USP for Shandy Cola. Shandy cola was readily accepted by the consumers, specially the younger generation where Shandy is being sold extensively at educational institutions. Our regular dealers/retailers include most of good Retail outlets and Retail Chains like Gourmet and Butt Sweets. Advertising Techniques Print Ads -Magazine -Newspaper Event Sponsoring Advertising Budget Shandy Colas budget is Rs.20 Lacs. According to the marketing wing the budget is enough because the company is still catering to some small markets.
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10.4 RC COLA History of RC Cola It's been 100+ years since Claude Hatcher, a young graduate pharmacist in Columbus, Georgia, began creating soft drinks in the basement of his family's wholesale grocery business in 1905. Little did he know at the time, that his humble experiments would grow into a great soft drink company that's still driven today by the same innovative, entrepreneurial spirit. For a virtual tour of Royal Crown's rich history, scroll the page down. Birth of a Business The Companys first cola product was Chero-Cola. Other early products included Royal Crown Ginger Ale, Royal Crown Strawberry, and Royal Crown Root Beer. Sales grew and in 1912, the Company began to sell syrups and flavor concentrates to franchised bottlers, which gave birth to the Royal Crown franchise system. Today its a worldwide force of Royal Crown bottlers, distributors, and of course, consumers that stretches around the globe. RC Cola Brands: RC Cola Diet RC Cola Cherry RC Cola RC Edge Cola Diet Rite Cola RCQ Royal Crown Draft Cola Kick RC Colas Taglines through the years

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1939-Royal Crown is Tops in Taste 1941-Best by taste test 1956-Better Taste Calls for RC! 1959-RC - the fresher refresher 1962-Royal Crown is made fresher to taste fresher 1963-Go fresher with RC: "Overnight - Americas Number One" 1964-Go fresher - Go RC! 1965-Who's drinking all that Diet Rite - America's No. 1 Low Calorie Soda 1967-scape - Come on over to RC Cola the one with the mad, mad taste 1967-Diet Rite tastes so good... even non-dieters drink it 1970-We cool off hot towns 1972-The one you loved is back 1974-RC - its just right for you 1975-Me and my RC 1975-No, No, Yes, Yes 1977-Say yes to Diet Rite Cola: One big delicious Yes! 1980-Here's to fun 1981-Taste the one that won 1984-Cola lovin' woman, Cola lovin' man Everybody!

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1984-Everybody's Gotta Diet Rite 1985-ome people go out of their way for the taste of RC 1988 -Decide for yourself 1989-New look, same great taste 1990-Take the RC Challenge 1994-Shake things up 1998-Be Free, Drink RC 2011-Taste changes, good taste doesnt RC Cola in Pakistan RC cola was a very famous drink in Pakistan. It was well known since the time of its arrival in the sub- continent which was the 70s. RC cola faded away by the early 90s. Reasons for failure in Pakistan: Pepsi Cola and Coca Cola stormed into the market. Advertising was minimal in Pakistan as compared to its competition. RC Cola was being sued by different organizations internationally so it lowered its investment in the sub-continent. RC finally stopped production somewhere in the early 90s.

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RC Cola has been planned to be relaunched in Pakistan in 2010 with its operations in Karachi. The target market is the youth. Advertising Techniques Media TV Commercials Print ads (magazines, newspapers) Broachers Event Sponsoring Truck Painting Pamphlets Leaflets Bill boards Advertising Budget The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. Advertising Budget amounts to Rs.84, 692, 00

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10.4 AMRAT COLA History Amrat cola was launched in 2003, since then it has made great leaps towards success. Amrat beverage International (ABI) stands as one of the first large scale national beverage organization. The idea behind the establishment of ABI was to acquire self-efficiency in the beverage industry and to provide the nation with quality carbonated soft drink. Measures taken in the direction yielded into an extra-ordinary appreciation by the nation and the management was highly encouraged to give the idea of a comprehensive and concrete realization. And today ABI is a twinkling star in the galaxy of national organizations. ABI, in fact, is an offspring of Pakistan Mineral Water Bottling Plant (Pvt) Limited (PMW) the establishment of which dates back to 14-12-1986. Nature of the business of the company has been the production and bottling of Mineral Water and Carbonated Soft Drink in PET Bottles and Aluminum Cans. The company set up the most sophisticated and hi-tech equipment for producing and filling CSDs and Mineral Water in PET Containers and Cans. With the passage of time the impetus to the production of CSDs superseded all productions and thus ABI came into existence in 2003 and today PMW is working under the umbrella of ABI in the capacity of a subsidiary of ABI along with other franchisees network spread nationwide. Advertising Budget Rs. 71, 30,000

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There has been a significant rise in the budget major reasons being the increasing demands and exploration of new markets (in towns, small cities) where Amrat is very popular now.

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Advertising Techniques

TV Commercial Radio Commercial Cinema Commercial

Cable TV Commercial Print Ads (Newspapers) Banners Leaflets Brochure Hoarding Poll Streamers Occasional Ads (Ramazn+Basant+Eids+Matches etc.) Corporate Social Responsibility (Public Service messages+ Tree plantation + Polio Movement etc.) Shop Decoration

Distributor's awards Free Sample 3 plus one scheme

1. 5 GOURMET BEVERAGES

Gourmet Bakers and Sweets is the largest food retail chain of Pakistan. It is based in Lahore, the second largest city of Pakistan known for its traditional foods and passion for eating. With their 4 processing units and 73 sales outlets plus 3 outlets are under construction they try to reach out to a huge population for their food needs. The company has shown an explosive annual growth of more than 25 % in its business since 1987, when Mr. Muhammad Nawaz Chatha started this unique business with only one sale outlet. With his commitment and strenuous effort to provide the consumers with best quality
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food products in a convenient and unmatched displaying manner, Gourmet has become a success story of business growth in Pakistan. At moment we have more than 1700 employees working in the organization. Gourmet has been in the food industry of Lahore for the last 21 years and is dominant in its industry because of having more market share than its competitors. Soon they will start a new product line of fruit juices in the next two months for which a better offering is needed in order to gain more share by attracting customers. For Example Nestle, Shezan, Haleeb, Coca Cola are Gourmets direct competitors in the field of fruit juices and beverages who have already captured a reasonable market share by serving all the classes of customers (high to low). Indirect competitors are those offering bottled water, soft drinks, tea, coffee & red drinks. They are more focused on drinks also because of health conscious to use natural products and increase our immunity against diseases. Gourmet has invested 600 million on its beverages plant. Their main financer/banker is Citibank. Apart from investment they have total of 73 outlets out of which 5 outlets are on rental basis and 68 outlets are owned by them. And from this huge investment they are expecting return on investment (ROI) from 10-15 %. The only reason why Lahoris consume Gourmet beverages is the fact that they are far more economical and cater to the price needs of the general public.

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10/6 COCA COLA V/S PEPSI PRODUCTS Both the companies Coca Cola and Pepsi have a number of products. Many of these products are innovations but there are also many products which are brought out just as a competitive product for other companies. Some of these products that are brought in the market by both the companies to compete against each other are as follows:

Table 2: Coca Cola products v/s Pepsi products

COCA COLA

PEPSI

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The main dark cola drink of the company which started the rivalry between these Companies.

Pepsi version of dark cola which is the major primary competitor to Coke.

Sprite 3G is a carbonated beverage that was released by the Coca Cola Company in June 2005.

Mountain Dew MDX is an energy drink manufactured distributed by PepsiCo. Under Mountain Dew brand in 2005.

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Sprite is a clear, lemon lime flavored, non caffeinated soft drink, produced by Coca Cola Company.It was introduced in the U.S in 1961.

7 up is a brand of a lemon-lime flavored soft drink.

Minute Maid is a product line of beverages usually associated with orange juice, but now extends to soft drinks of many kinds. The Minute Maid company is now owned by Coca Cola and is world largest marketers of fruit juices and drinks.

Tropicana products are an American company based in Bradenton, Florida, USA, which is one of the worlds largest producers and marketers of orange juice. It has been owned by Pepsi Co. Inc. since 1998

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Nestea is brand of iced tea manufactured and distributed by the Nestle companys beverage department in the U.S. and by Coca Cola in several European countries, Brazil and Venezuela.

Lipton Original iced tea is a ready to drink iced tea brand sold by Lipton through a worldwide partnership with Pepsi.

Diet Coke or Diet Coca Cola is a sugar-free soft drink produced and distributed by Coca Cola Company, was introduced in U.S. in 1982

Diet Pepsi is a low calorie carbonated cola. It was introduced in 1964 as a variant of Pepsi Cola with no sugar.

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Kinley is a brand of still or carbonated water owned by The Coca Cola Company.

Aquafina is non carbonated bottled water produced by PepsiCo.

Fanta is a soft drink brand owned by The Coca Cola Company. It is produced and distributed by Coca Cola Companys bottlers.

Mirinda is a brand of soft drink. Mirinda is owned by Pepsi Co.

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Maaza is a Coca Cola fruit drink brand marketed in India and Bangladesh.

Slice is a line of fruit flavored soft drink manufactured by PepsiCo and introduced in 1984.

Both Coca Cola and Pepsi offer the same prices of their products.

LOGO : COCA COLA V/S PEPSI There seem to be two types of people in the world. You either a Coke fan or a Pepsi fan. Simplicity: The idea behind cokes logo is very simple, yet in the details it could be perceived as complex. The script font used is very sophisticated and traditional giving the brand that ageless feel as it should, its had minimal change throughout the 125 year history. However when comparing it to the Pepsi logo, there is a clear winner. Regardless of how many updates Pepsi has made to there logo, their current design is clean, simple and modern. Memorable: With all the different identities pepsi has gone through, its hard to think of any of them as memorable. Timeless: Pepsis logo has proved fail in this category for years. They cant seem to find themselves, and just when you think they got it. They change. This is a complete opposite of Coke. For the past 125 years, Coke has done a wonderful job making only minimal changes to keep up with the times, and stay current. The logo has essentially stayed intact since the 1900s, which is a true testament to the word timeless.

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Creative: The Coke brand is very versatile. It can be placed anywhere. The logo branches out to different varieties and often is often accompanied by a simple red bottle, or on top of a bottle cap. Pepsi, is completely different. They are a heavy hitter in terms of graphics, using a variety of effects, however it is very ineffective.
Table 3: Coca Cola v/s Pepsi

Factors
Earnings Cash flow Book value Market capital Profit Brands Revenue Net income Sales growth

Coca-cola
5.01% 11.04% 11.94% 465.48 million 10.80% 8 in Pakistan 1.46 billion 9.09 million 1.9%

Pepsi
3.34% 4.37% 9.87% 95.39 billion 11.90% 7 in Pakistan 8.26 billion 5.14 billion 9.6%

CHAPTER 11

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Coca Cola Marketing

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11.1 GLOBAL UNIT SALES OF COCA COLA

Figure 6

11.2 REGION WISE CONSUMPTION OF COCA COLA

Figure 7

11.3 MARKET POSITION OF COCA COLA WORLDWIDE

Figure 8

11.4 MARKET POSITION OF COCA COLA IN PAKISTAN

Figure 9

On global level Coca-Cola is the most popular brand and market leader controlling 60% of market share. In Pakistan Coca Cola is the market follower but still in a very strong and stable position holding 32% of the local market with a growing and increasing market share every year. 11.5 TARGET AUDIENCE OF COCA COLA: All age groups Youth especially
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Upper and Middle Class 11.6 PRODUCT LIFE CYCLE OF COCA COLA

Figure 10

INTRODUCTION STAGE OF COCA COLA. In the Introduction stage, Coca Cola was launched and initially promoted. Efforts were made for creating its awareness in the market, inducing trial of the product and securing space in the outlet shelf. When their costs were high, sales volume were low, and there was no existing demand for Coca Cola in this stage. GROWTH STAGE OF COCA COLA In the growth stage Coca Cola experienced rapid increase in sales volume and its competition began to increase. People got more awareness about Coca Cola and the increase in the competition leads it to decrease prices. In this stage the marketing strategies used by Coca Cola were as follows: Product improvement New models were developed
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It entered new market segments It enlarged its distribution channels.

MATURITY STAGE OF COCA COLA Coca Cola is in the Maturity stage from years now. The marginal costs of Coca Cola are low in this stage, sales volume is at the peak and most of the market is covered. There is increase in competitors which are entering in the market. Coca Colas brand differentiation and features diversification is emphasized to maintain and increase market share. DECLINE STAGE This is the stage in which sales of the product begin to fall. Either everyone that wants to, has bought the product or new, more innovative products have been created that replaces that product. The only way to increase sales during this period is to cut the cost of the product.

11.7 MARKETING MIX OF COCA COLA Marketing decisions generally fall into the following controllable categories: Product Price
Placement (distribution)

Promotion
PRODUCT

Coca Cola Beverages Pakistan has a very narrow product range. It has the following brands in Pakistan. Carbonated soft drinks
Coca Cola 102

 Diet Coke

Sprite
Sprite Zero Sprite 3G Fanta Fanta Citurs

These products are sold in the market in different sizes of bottles. These sizes are available for all its products. 250 ml
250 ml (Non Returnable) 300 ml (Non Returnable) 500 ml (Non Returnable)

1 liter 1.5 liter pet Juices Minute Maid Splash These products are sold in the market in different sizes of bottles. These sizes are available for all its products. 250 ml RGB
400 ml (Non Returnable)

1.25 liter pet Water products Kinley These products are sold in the market in different sizes of bottles. These sizes are available for all its products.
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 500 ml 1.5 Liter pet 20 Liter

PRICING The price of Coca Cola, despite being market leader is the same as that of its competitor Pepsi Cola. Sometimes, Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle and consumers think that they save a lot of money from this.
Table 4 : Retail Prices

QUANTITY (ML) 250(REGULAR) 250 ( NON RETURNABLE) 500 HALF LITER (330) CANE (1500) PET (2250) JUMBO PACK (500) KINLEY WATER (1500) KINLEY WATER MINUTE MAID PULPY ORANGE

CONSUMER PRICES (RUPEES) 13 20 25 30 65 80 15 25 45

PLACEMENT Placement means distribute the products among all channels. CCBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way

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that the demand of customers is fulfilled at the right place and the right time when it is needed by them. Factory............Warehouse............Dealers......Customers Factory.............Agencies................Customers Factory.Outstation..Customers Types of Channels: Coke has two channels of distribution i.e.: DIRECT CHANNEL INDIRECT CHANNEL Distribution Process:

Figure 11

Total Channels: There are around 26 channels where products are distributed. i.e.: Vendors Bakeries Pan shops Restaurants Caf General stores Departmental stores Super stores etc.

Current Logo:

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PROMOTION

Getting Shelves: They get or purchase shelves in big departmental stores and display their products in those shelves in that style which show their product clearer and more attractive for the consumers. Eye Catching Position: 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 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. 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. Facilitating the product by infrastructure:

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For providing their product in good manner company has provided infrastructure these includes:
Vizi cooler

Freezers Display racks Free empty bottles and shells for bottles

Advertising Media: Coca-Cola Company advertises its products mainly coke through electronic media that includes Television, Radio and Internet as well. Moreover leading newspapers of Pakistan are also the targeted by coke for advertising. So we can say that coke not only uses electronic but print media for advertisement as well. Coca Cola Company use different mediums Print media
Pos material

TV commercial Billboards and holdings Sales Promotion Activities:

Coca Cola Cricket Coca Cola Concerts Coca Cola Food Mela Coca Cola Basant Festival Coca Cola Go-Red Coca Cola Party in a Park Coca Cola Shopping Festival Coca Cola Pet Promotion
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Coca Cola Ramzan Campaigne Coca Cola Wonder of the World Promotion Coca Cola & Nokia Coca Cola TV Mazza Coca Cola & Mc Donalds The Big Idea to help flood victims Coca-Cola largest ever photo-mosaic Pakistani flag Coca Cola Scholarship Program Coke Studio

CHAPTER 12

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SWOT/ PEST/ BCG Analysis

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12.1 SWOT ANALYSIS STRENGTHS Excellent brand image Financially strong Wide infrastructure Technological strength Excellent quality Customer loyalty Popularity

WEAKNESSES Weak distribution network Less brands Less availability Lack of promotion Health issues

OPPORTUNITIES Increase Quality Awareness Among The Customers Billion Cases Markets Emerging Market

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THREATS Fake brands Local Brands Competitor Pepsi

12.2 PEST ANALYSIS POLITICAL FACTORS The political environment of Pakistan affects the coca-cola beverages and Coca-Cola Export Corporation, to some extent. For instance, the political instability in Pakistan causes trade and import policies to change rapidly as the government changes which causes many problems in the import of raw materials. Trade barriers such as tariffs and duties on the import of syrup (concentrate) from USA increases the operational cost. A relaxation has been given by the current government. So the situation for the beverage industry is getting better day by day for the last couple of years. Also the policies have been more or less constant and also the emaciation of free trade zones by the government will help the Coca-cola to flourish more effectively in Pakistan. ECONOMIC FACTORS The economic condition of Pakistan has not been stable for a long time but the recent economic indicators suggest that the economy is growing and macroeconomic issues are getting sold but at the same time there has not any marked increase in the consumer buying power (inflation). When the recession occurs the price of bottles are dropped down to increase the sales and to

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achieve the targets of the company. So overall economy of Pakistan directly affects the cost and price of the Coca-Cola Company. SOCIAL FACTORS Being a foreign based company Coca-cola faces opposition by Muslim activists. The main social issues are: It faced scandal of humiliating Muslims religion that when the inverted image of Coca-Cola brand name is being viewed on the mirror it disgraces the name of Holy city Makkah and Hazrat Muhammad (P.B.U.H). This was a wrong conception as there was no reality in it and this scandal was flopped after a short span. One of the greatest social barriers to coca-cola Lahore is the restriction of coke in the campus premises. Jamiats strike to coke affects the sales and overall image of coke as a larger number of students from all over the Pakistan are studying in the University of The Punjab. But on the contrary in the all parts of the country coke is viewed as the partner in the major events like Basant and promoter of music thereby making a place in the hearts of young generation of the society. TECHNOLOGICAL FACTORS The making of Coke, Fanta, Diet coke and sprite involves "mixing and blending, filling and capping ". For this process, concentrate or syrup is imported from USA and is then mixed in the local plants .Machinery for the local plants was also imported but now the coca-cola company follows Local content law as most of the spare parts are locally made. The system is automated and equipment is fully operational and up-to-dated. In technology Coca-cola company is far ahead than the several other local beverage brands of Pakistan. It is a Highly Technical 10 Steps Process. Which are all done in the local plants using local content law.

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12.3 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. 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. Whenever the company thinks of launching
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its product in a country the first product they launch is coke classic as they know that if dont work here then nothing else can. QUESTION MARKS Products that are still not a big hit as they havent 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 its not a long period which flavored Fanta has consumed but still there are signs that it wont be a success. So its better for the company to get rid of it.

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CHAPTER 13

Research Findings &

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Data Analysis

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Question # 1:
What is your gender? Cumulative Frequency Valid Male Female Total 31 89 120 Percent 25.8 74.2 100.0 Valid Percent 25.8 74.2 100.0 Percent 25.8 100.0

Interpretation: In the sample, almost 26% of the sample population is that of males while the remaining 74% is of females.

Question # 2:

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What is your age? Cumulative Frequency Valid 17 and less 18 - 25 26 - 35 36 - 45 46 and above Total 9 104 4 1 2 120 Percent 7.5 86.7 3.3 .8 1.7 100.0 Valid Percent 7.5 86.7 3.3 .8 1.7 100.0 Percent 7.5 94.2 97.5 98.3 100.0

Interpretation: The sample shows that around 87% of the youth between ages 18 to 25 consume soft drinks and beverages. 7% and more belong to those under age 17. 3% out of 120 people belong to the age group of 26 35 and consume beverages while the remaining 2% is of those above age 46. The

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youth is always the most responsive and is present in majority in the country. It is energetic and accepts changes easily. Coca Cola should target the youth especially.

Question # 3:

What is your monthly household income? Cumulative Frequency Valid Rs.10,000 Rs. 25,000 Rs.25,000 Rs. 40,000 Rs. 40,000 - Rs. 55,000 Rs. 55,000 - Rs, 70,000 Rs. 70,000 and more Total 13 6 21 21 59 120 Percent 10.8 5.0 17.5 17.5 49.2 100.0 Valid Percent 10.8 5.0 17.5 17.5 49.2 100.0 Percent 10.8 15.8 33.3 50.8 100.0

Interpretation: The sample shows that almost 50% of the sample population had a monthly income of Rs. 70,000 and more. 17% had a monthly income between Rs. 40,000 and Rs. 55,000, and also Rs. 55,000 and Rs, 70,000. 5% of the sample number
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had an income between Rs 25,000 and 40,000 while the remaining 11% had an income of less than Rs. 25,000.

Question # 4:

How often do you consume soft drinks? Cumulative Frequency Valid Daily Once a week Twice a week Thrice a week More than thrice a week Total 47 29 16 10 18 120 Percent 39.2 24.2 13.3 8.3 15.0 100.0 Valid Percent 39.2 24.2 13.3 8.3 15.0 100.0 Percent 39.2 63.3 76.7 85.0 100.0

Interpretation: The sample shows that almost 40% of the sample population consumes soft drinks on a daily basis. 24% consume soft drinks once, 15% more than thrice, 14% twice while 8% thrice a week at least. It is clear that the soft drink industry is a strong industry as most of the people drink one soft drink daily at least in the targeted areas.

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Question # 5:
How much money do you spend on soft drinks monthly? Cumulative Frequency Valid Rs. 100 Rs. 300 Rs. 300 - Rs. 500 Rs. 500 Rs. 700 Rs. 700 - Rs. 900 Rs. 900 - more Total 36 26 19 7 32 120 Percent 30.0 21.7 15.8 5.8 26.7 100.0 Valid Percent 30.0 21.7 15.8 5.8 26.7 100.0 Percent 30.0 51.7 67.5 73.3 100.0

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Interpretation: From the sample of 120 people, the above pie chart depicts that 30% of the people spend Rs.100 Rs.300 at least on soft drinks monthly. 27% spend more than Rs. 900, 21% spend between Rs. 300 Rs. 500, and 16% spend between Rs.500 Rs. 700 while only 5% spend between Rs. 700 Rs. 900. It is clear that either people spend too much or too less on soft drinks.

Question # 6:

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Which of the following brand do you prefer? Cumulative Frequency Valid Coca Cola Pepsi Gourmet Cola Total 82 32 6 120 Percent 68.3 26.7 5.0 100.0 Valid Percent 68.3 26.7 5.0 100.0 Percent 68.3 95.0 100.0

Interpretation: The options given in the questionnaire was a list of 6 brands from which one had to be selected. The sample results show that only 5% prefer a local brand such as Gourmet Cola over Coca Cola
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or Pepsi. The competition is directly between Coca Cola and Pepsi, 68% and 27% respectively. However, it is imperative to denote here that more than 80% of the surveyed people belong to the age group of 18 to 25. Thus, this percentage figure also depicts the brand preference of the youth. It is evident that 68% of the youth prefers Coca Cola over Pepsi.

Question # 7:
Of the following brands, which do you prefer more precisely? Cumulative Frequency Valid Coca Cola Pepsi Total 87 33 120 Percent 72.5 27.5 100.0 Valid Percent 72.5 27.5 100.0 Percent 72.5 100.0

Interpretation: When asked to be specific about their brand preference between Coca Cola and Pepsi, 72.5% chose Coca Cola while 27.5% chose Pepsi. However, it is imperative to denote here that more than 80% of the surveyed people belong to the age group of 18 to 25. Thus, this percentage figure also depicts the brand preference of the youth. It is evident that 72% of the youth prefers Coca Cola over Pepsi.

Question # 8:

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Which soft drink brand of Coca Cola do you prefer? Cumulative Frequency Valid Coca Cola Classic Diet Coke Sprite Fanta Sprite 3G Total 73 13 23 9 2 120 Percent 60.8 10.8 19.2 7.5 1.7 100.0 Valid Percent 60.8 10.8 19.2 7.5 1.7 100.0 Percent 60.8 71.7 90.8 98.3 100.0

Interpretation: Almost 61% of the people who filled the questionnaire prefer Coca Cola Classic among the Coca Cola soft drink brands. 19% like Sprite, 11% like Diet Coke, 7% like Fanta while only 2% like Sprite 3G. Thus Coca Cola should lay more focus on Coca Cola Classic, Diet Coke and Sprite as the demand for them is the highest.

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Question # 9:

Which mineral water brand do you prefer? Cumulative Frequency Valid Kinley Aquafina Nestle Sufi Gourmet water Total 7 13 90 3 7 120 Percent 5.8 10.8 75.0 2.5 5.8 100.0 Valid Percent 5.8 10.8 75.0 2.5 5.8 100.0 Percent 5.8 16.7 91.7 94.2 100.0

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Interpretation: The options given in the questionnaire was a list of 5 mineral water brands from which one had to be selected. The survey results show that Nestle invades 75% of the market. 11% people prefer Aquafina. Kinley and Gourmet water are preferred by an equal 5% each while Sufi water is a preference in only 2%. Hence it is evident that Kinley water of Coca Cola is not a top favorite water brand.

Question # 10:
Which juice brand do you prefer? Cumulative Frequency Valid Minute Maid Nestle Fruita Vitals Shezan All-Pure Country Cool Fresher Total 30 69 6 4 11 120 Percent 25.0 57.5 5.0 3.3 9.2 100.0 Valid Percent 25.0 57.5 5.0 3.3 9.2 100.0 Percent 25.0 82.5 87.5 90.8 100.0

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Interpretation: The options given in the questionnaire was a list of 5 juice brands from which one had to be selected. The survey results show that Nestle Fruita Vitals invades 58% of the market. 25% people prefer Minute Maid. Fresher is preferred by 9%. 5% people prefer Shezan All-Pure and a small 4% like Country Cool. The results depict that Minute Maid can be explored as it has good market potential.

Question # 11:

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To what extent are you satisfied with the prices of Coca Cola? Cumulative Frequency Valid Extremely Satisfied Satisfied Neither Satisfied nor dissatisfied Dissatisfied Extremely dissatisfied Total 21 3 120 17.5 2.5 100.0 17.5 2.5 100.0 97.5 100.0 9 43 44 Percent 7.5 35.8 36.7 Valid Percent 7.5 35.8 36.7 Percent 7.5 43.3 80.0

Interpretation: 36% people are extremely satisfied while 36% are generally satisfied with the prices of Coca Cola, which means a total of 72% are satisfied. A fairly considerate percentage of 17% is neither satisfied nor dissatisfied. Only a total of 10% is dissatisfied or extremely dissatisfied. This means that Coca Cola can continue with the current pricing strategy.

Question # 12:
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The advertising of Coca Cola is very good. Cumulative Frequency Valid Strongly Agree Agree Neither agree nor disagree Disagree Strongly disagree Total 30 69 15 5 1 120 Percent 25.0 57.5 12.5 4.2 .8 100.0 Valid Percent 25.0 57.5 12.5 4.2 .8 100.0 Percent 25.0 82.5 95.0 99.2 100.0

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Interpretation: The survey results show that 25% of the people strongly agree to the statement while 58% agree. Only, in totality 6% are do not agree. This means that people like the advertising of Coca Cola.

Question # 13:

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The advertising of Coca Cola is on print media, radio and internet. Cumulative Frequency Valid Strongly agree agree Neither agree nor disagree Disagree Total 26 59 26 9 120 Percent 21.7 49.2 21.7 7.5 100.0 Valid Percent 21.7 49.2 21.7 7.5 100.0 Percent 21.7 70.8 92.5 100.0

Interpretation: Only 8% of the people disagree with this statement. 21% are indecisive. This means that Coca Colas advertising is generally remembered on print media, radio and internet by a maximum number of people: 50% who strongly agree while 21% agree to this statement.
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Question # 14:
The adverisements of Pepsi are more popular than Coca Cola. Cumulative Frequency Valid Strongly agree Agree Neither agree nor disagree Disagree Strongly Disagree Total 14 35 43 25 3 120 Percent 11.7 29.2 35.8 20.8 2.5 100.0 Valid Percent 11.7 29.2 35.8 20.8 2.5 100.0 Percent 11.7 40.8 76.7 97.5 100.0

Interpretation: The survey results show that only 12% people strongly agree with this statement, 29% agree, 36% are neutral, 21% disagree and 2% strongly disagree. Coca Cola has clear competition from Pepsi and most people cannot tell who has more popular advertisements.

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Question # 15:

Coke Studio is a good marketing strategy of Coca Cola. Cumulative Frequency Valid Strongly Agree Agree Neither agree nor disagree Disagree Total 78 35 5 2 120 Percent 65.0 29.2 4.2 1.7 100.0 Valid Percent 65.0 29.2 4.2 1.7 100.0 Percent 65.0 94.2 98.3 100.0

Interpretation: Only 2% of the sample population disagree with the statement which means that Coke Studio is an excellent marketing strategy of Coca Cola and the company should pursue it.
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Question # 16:

Sprite - University of Freshology is a good marketing strategy of Coca Cola Cumulative Frequency Valid Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree Total 42 47 17 8 6 120 Percent 35.0 39.2 14.2 6.7 5.0 100.0 Valid Percent 35.0 39.2 14.2 6.7 5.0 100.0 Percent 35.0 74.2 88.3 95.0 100.0

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Implementation: 35% of the people strongly agree while 39% agree that the University of Freshology marketing strategy is good. Only 5% strongly disagree and 7% disagree. Since, most of the surveyed people belong to the youth. It can be said that this approach has appealed to the youth. Coca Cola must come up with more cool and fresher lessons under this strategy.

Question # 17:

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Coca Cola and its products are available easily. Cumulative Frequency Valid Strongly agree Agree Neither agree nor disagree Disagree Total 64 45 6 5 120 Percent 53.3 37.5 5.0 4.2 100.0 Valid Percent 53.3 37.5 5.0 4.2 100.0 Percent 53.3 90.8 95.8 100.0

Implementation: Only 4% of the people disagree with the statement. This means that Coca Cola is generally available easily.

Question # 18:

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Coca Cola and/or its products are more easily available than Pepsi. Cumulative Frequency Valid Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Total 16 31 53 14 6 120 Percent 13.3 25.8 44.2 11.7 5.0 100.0 Valid Percent 13.3 25.8 44.2 11.7 5.0 100.0 Percent 13.3 39.2 83.3 95.0 100.0

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Interpretation: Most of the people agree with this statement. 13% strongly disagree, 12% disagree while 5% are indecisive. Coca Cola faces immense competition from Pepsi and this survey result is also an evidence of it.

Question #19:

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Where do you buy Coca Cola and its products most from? Cumulative Frequency Valid College/University/School General Stores Super markets Restaurants Total 46 46 20 8 120 Percent 38.3 38.3 16.7 6.7 100.0 Valid Percent 38.3 38.3 16.7 6.7 100.0 Percent 38.3 76.7 93.3 100.0

Interpretation: Coca Cola and its products are bought the most from schools, colleges, universities and general stores as shown from the survey results. Only 16% are bought from super markets and 7% from restaurants. Coca Cola should therefore pay more attention to the placement of its products at areas where it is bought the most.
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Question # 20:

You consume Coca Cola and/or its products because of its Cumulative Frequency Valid Taste Brand Image Packaging Advertisements Price Total 96 19 1 3 1 120 Percent 80.0 15.8 .8 2.5 .8 100.0 Valid Percent 80.0 15.8 .8 2.5 .8 100.0 Percent 80.0 95.8 96.7 99.2 100.0

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Interpretation: 80% of the people consume Coca Cola for its good taste. People prefer it because it is less sweet than its competitor Pepsis. Brand Image accounts for 16% of why people drink Coca Cola and its products. Advertisements have a minute role of 2% while 1% accounts for packaging and price each. Coca Cola should pay more importance to advertisements to attract more people.

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HYPOTHESIS TESTING THROUGH CHI-SQUARE TEST Hypothesis: 1 Null Hypothesis: The less market share is not due to price of Coca Cola Alternate Hypothesis: The less market share is due to price of Coca Cola H = O=E H1 = O =E Significance level: 5% Test Statistics:
To what extent are you satisfied with the prices of Coca Cola? Observed N Extremely Satisfied Satisfied Neutral Dissatisfied Extremely Dissatisfied Total 9 43 44 21 3 120 Expected N 36.0 48.0 6.0 24.0 6.0 Residual -27.0 -5.0 38.0 -3.0 -3.0

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Test Statistics To what extent are you satisfied with the prices of Coca Cola? Chi-Square df Asymp. Sig. 263.313a 4 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 6.0.

Interpretation: Since P-value (.000) is less than significance level (.05), there is evidence against the null hypothesis and the null hypothesis is rejected which says that the less market share is not due to price of Coca Cola. The alternate hypothesis is accepted that the less market share is due to price of Coca Cola.

Hypothesis: 2 Null Hypothesis : The less market share is not due to poor advertising of Coca Cola. Alternate Hypothesis: The less market share is due to poor advertising of Coca Cola. H = O=E H1 = O =E Significance level: 5% Test Statistics:

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The advertising of Coca Cola is very good. Observed N Strongly agree Agree Neutral Disagree Strongly disagree Total 30 69 15 5 1 120 Expected N 42.0 36.0 12.0 18.0 12.0 Residual -12.0 33.0 3.0 -13.0 -11.0

Test Statistics The advertising of Coca Cola is very good. Chi-Square df Asymp. Sig. a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 12.0. 53.901a 4 .000

Interpretation: Since P-value (.000) is less than significance level (.05), there is evidence against the null hypothesis and the null hypothesis is rejected which says that the less market share is not due to poor advertising of Coca Cola. The alternate hypothesis is accepted that the less market share is due to poor advertising of Coca Cola.

Hypothesis: 3 Null Hypothesis : The less market share is not due to competitors of Coca Cola.
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Alternate Hypothesis: The less market share is due to competitors of Coca Cola. H = O=E H1 = O =E Significance level: 5% Test Statistics:
Which of the following brand do you prefer? Observed N Coca Cola Pepsi Gourmet Total 82 32 6 120 Expected N 48.0 48.0 24.0 Residual 34.0 -16.0 -18.0

Test Statistics Which of the following brand do you prefer? Chi-Square df Asymp. Sig. 42.917a 2 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 24.0.

Interpretation: Since P-value (.000) is less than significance level (.05), there is evidence against the null hypothesis and the null hypothesis is rejected which says that the less market share is not due to competitors of Coca Cola. The alternate hypothesis is accepted that the less market share is due to competitors of Coca Cola.

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Hypothesis: 4 Null Hypothesis : The less market share is not due to non-availability of Coca Cola. Alternate Hypothesis: The less market share is due to non-availability of Coca Cola. H = O=E H1 = O =E Significance level: 5% Test Statistics:
Coca Cola and its products are available easily. Observed N Strongly Agree Agree Neutral Disagree Total 64 45 6 5 120 Expected N 48.0 36.0 18.0 18.0 Residual 16.0 9.0 -12.0 -13.0

Test Statistics Coca Cola and its products are available easily. Chi-Square df Asymp. Sig. 24.972a 3 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 18.0.

Interpretation: Since P-value (.000) is less than significance level (.05), there is evidence against the null hypothesis and the null hypothesis is rejected which says that the less market share is not due to

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non-availability of Coca Cola. The alternate hypothesis is accepted that the less market share is due to non-availability of Coca Cola.

Hypothesis: 5 Null Hypothesis : The less market share is not due to consumer preference for Coca Cola. Alternate Hypothesis: The less market share is due to consumer preference for Coca Cola. H = O=E H1 = O =E Significance level: 5% Test Statistics:

You consume Coca Cola and/or its products because of its Observed N Taste Brand Image Packaging Advertisement Price Total 96 19 1 3 1 120 Test Statistics You consume Coca Cola and/or its products because of its Chi-Square 82.944a Expected N 48.0 36.0 12.0 12.0 12.0 Residual 48.0 -17.0 -11.0 -9.0 -11.0

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You consume Coca Cola and/or its products because of its Observed N Taste Brand Image Packaging Advertisement Price df Asymp. Sig. 96 19 1 3 1 Expected N 48.0 36.0 12.0 12.0 12.0 Residual 48.0 -17.0 -11.0 -9.0 -11.0 4 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 12.0.

Interpretation: Since P-value (.000) is less than significance level (.05), there is evidence against the null hypothesis and the null hypothesis is rejected which says that the less market share is not due to consumer preference for Coca Cola. The alternate hypothesis is accepted that the less market share is due to consumer preference for Coca Cola.

CONCLUSION: The 5 hypothesis tests above prove that the following are the factors behind the lesser market share of Coca Cola in Pakistan: Price Poor Advertising Competitors Non-availability Consumer Preference
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The high level of inflation and increasing economic crisis makes it impossible for the public to meet their everyday demand for basic necessities like food, shelter and clothing. Paying for a luxury becomes a heavy burden on them and so people avoid buying Coca Cola as much as their purchasing power keeps shrinking persistently. Also, the advertising and promotional technique are far less as compared to its competitor Pepsi. Competition is the basic reason behind the less market share. Pepsi trumps Coca Cola in the country. There is lack of availability of Coca Cola in majority areas, especially the rural areas. Pepsi is more famous and recognized in the urban and sub-urban areas of the country. Coca Cola is easily accessed in only the metropolitan cities majorly. Another factor that adds to the lesser market share is the consumer preference. In Pakistan, people generally prefer more sweeter edible items and Pepsi and other colas are far sweeter than Coca Cola. Not just this, certain religious taboos were also prevalent in the past that are still existing somewhere in the society. If Coca Cola caters well to the above mentioned issues, its sales would boost a lot and its market share will automatically increase to the desired level.

CHAPTER 14

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Suggestions & Recommend ations

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The Coca Cola Beverages Pakistan Limited should extend its brand portfolio in Pakistan by launching more brands as there are internationally. The Coca Cola marketing strategy must be focused more on the youth as the youth consumes soft drinks more than any other age. The Coke Studio marketing approach was extremely successful and Coca Cola must continue with adopting music as its advertising tool. It should also implement on a TV show to cater to new rising talent in the country and cater to the rural population as well.

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.

The marketing, distribution and logistics teams should try to increase the availability of Coke in rural areas. The company should focus on locally produced cans as the cans are currently imported and sold at high prices. Increased promotional and placement strategies need to be implemented upon to attract more rural population. The company must hire famous celebrities as brand ambassadors like Pepsi does. More innovative and attractive discount schemes should be planned to boost up sales and attract more audience. Coca Cola must launch its own Pakistani host website.

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Appendix

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REFERENCES

www.thecoca-colacompany.com www.knowledgeinn.com Mr. Shahzad Kaleem Brand Manager, CCBPL 0301-8416959

Mr. Bilal Mustafa Marketing Manager, CCBPL 0321-4020420

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The aim of this survey is to evaluate the causes behind the lower market share of Coca Cola as compared to its rival in Pakistan. Your response to the questions will be very valuable and help me determine the issue more effectively. During the questionnaire, if in any manner you feel offended, I sincerely apologize for the inconvenience of the matter I have caused. 1. What is your gender? a) Male b) Female 1. What is your age? a) 17 and less b) 18 25 c) 26 35 d) 36 45 e) 46 and above
1. What is your monthly household income? a) Rs.10,000 Rs. 25,000 b) Rs. 25,000 Rs. 40,000 c) Rs. 40,000 Rs.55,000 d) Rs. 55,000 Rs. 70,000 e) Rs. 70,000 and above 1. How often do you consume soft drinks? a. Daily b. Once a week c. Twice a week

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d. Thrice a week e. More than 3 times a week

1. How much money do you spend on soft drinks monthly?

a. Rs. 100 Rs. 300 b. Rs. 300 Rs. 500 c. Rs. 500 Rs. 700 d. Rs. 700 Rs. 900 e. Rs. 900 more

1. Which of the following brands do you prefer? a. Coca Cola b. Pepsi c. RC Cola
d. Shandy Cola e. Amrat Cola

f. Gourmet Cola 1. Of the following brands, which do you prefer more precisely? a. Coca Cola b. Pepsi 1. Which soft drink brand of Coca Cola do you prefer? a. Coca Cola Classic b. Diet Coke c. Sprite d. Fanta
e. Sprite 157

f. Sprite 3G 1. Which mineral water brand do you prefer? a. Kinley b. Aquafina c. Nestle d. Sufi e. Gourmet water 1. Which juice brand do you prefer? a. Minute Maid
b. Nestle Fruita Vitals c. Shezan All Pure

d. Country Cool e. Fresher 1. To what extent are you satisfied with the prices of Coca Cola? a. Extremely satisfied b. Satisfied c. Neither satisfied nor dissatisfied d. Dissatisfied e. Extremely dissatisfied 1. The advertising of Coca Cola is very good. a. Strongly agree b. Agree c. Neither agree nor disagree d. Disagree e. Strongly disagree
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1. The advertising of Coca Cola is on print media, radio and internet.

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly disagree 1. The advertisements of Pepsi are more popular than Coca Cola. a. Strongly agree b. Agree c. Neither agree nor disagree d. Disagree e. Strongly disagree 1. Coke Studio is a good marketing strategy of Coca Cola. a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly disagree
1. Sprite - University of Freshology is a good marketing strategy of Coca Cola.

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly disagree

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1. Coca Cola and its products are available easily. a. Strongly agree b. Agree c. Neither agree nor disagree d. Disagree e. Strongly disagree 1. Coca cola and/or its products are more easily available than Pepsi. a. Strongly agree b. Agree c. Neither agree nor disagree d. Strongly disagree e. Disagree

1. Where do you buy Coca Cola and its products most from? a. College/university/school canteen b. General stores c. Super markets d. Restaurants 1. You consume Coca Cola and/or its products because of its: a. Taste b. Brand Image c. Packaging d. Advertisements e. Price

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