Table of content

EXECUTIVE SUMMARY

The scope of the project is to make research on marketing functions and strategies adopted by Coca cola beverages Pakistan ltd.(CCBPL). These marketing functions mainly include the marketing mix i-e, Product Strategy, Pricing Strategy, Pricing Tools and Strategies and Promotional activities of coca cola. Placement and Distribution Strategies as well as other market strategies. Moreover the project also discusses the analysis of competition, market growth and trend, opportunity analysis and strategies for creating competitive advantage adopted by Coca Cola. We will like to add that the project will provide the readers and listeners very high profile information about the marketing strategies as a whole and also about the Coca Cola Company. In the end we hope that the project will result very beneficial for the readers.
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ACKNOWLEDGEMENT

First and foremost, we are grateful to ALLAH ALMIGHTY most beneficent and the most merciful Who made us able to complete our given project. We would also like to pay tribute to the benefactor of humanity HOLY PROPHET (P.B.U.H.) who gave us complete knowledge on every aspect and field of life. In short of words, to express our modest gratitude and recognition to cuddly and loveable PARENTS who at each and every moment prays for our success and provide us with every kind of facilities. We are also deeply thankful to our teacher Mr N.A.Jafferi who guide us throughout the semester and give maximum and very productive knowledge about marketing.

Introduction
Brand name: Coca-cola Company name: Coca Cola beverages Pakistan ltd. Parent company: The Coca -Cola Company. Country of origin: United State. Type of product : Soft drink. Logo/Trade mark:

HISTORY OF COCA COLA:

In May 1886, Georgia pharmacist John Styth Pemberton succeeded in creating what he intended, a temperance drink. He prepared this syrup as a medicine and distributed it. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank Robinson. Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted "Coca Cola" into the flowing letters which has become the famous logo of today. The soft drink was
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first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886. About nine servings of the soft drink were sold each day. Sales for that first year added up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in expenses, so the first year of sales were a loss. Until 1905, the soft drink marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut. In 1887, another Atlanta pharmacist and businessman, As a Candler bought the formula for Coca Cola from inventor John Pemberton for $2,300. By the late 1890s, Coca Cola was one of America's most popular fountain drinks, largely due to Candler's aggressive marketing of the product. With As a Candler, now at the helm, the Coca Cola Company increased syrup sales by over 4000% between 1890 and 1900. Advertising was an important factor in John Pemberton and As a Candler's success and by the turn of the century, the drink was sold across the United States and Canada. Around the same time, the company began selling syrup to independent bottling companies licensed to sell the drink. Even today, the US soft drink industry is organized on this principle. Until the 1960s, both small town and big city dwellers enjoyed carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the drug store, the soda fountain counter served as a meeting place for people of all ages. Often combined with lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft drinks, and fast food restaurants became popular. On April 23, 1985, the trade secret "New Coke" formula was released. Today, products of the Coca Cola Company are consumed at the rate of more than one billion drinks per day. Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal. Today, you can find Coca-Cola in virtually every part of the world.

HISTORY OF COCA COLA IN PAKISTAN:

The Coca Cola company began operating in Pakistan in 1953 and started with Coca Cola drink as a sole brand but later increased its product line and added Sprite, Fanta, Sprite Zero, Vimto, Diet Coke, Kinley water &
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Sprite 3G. The Coke in Pakistan operates through their 8 bottlers from whom 4 are owned by the company itself under the name of Coca Cola Beverages Pakistan Ltd (CCBPL) with its plants at Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan and Lahore and serves more than 75,000 shops / retail outlets. Coke has attracted customers from allover Pakistan through its interesting slogans and has created a wide customer base in youth. Some particular slogans are: 1953 The friendliest drink on Earth 1963 Things go better with Coke 1976 Enjoy Thirst 1993 Always Coca Cola 2001 Life is good 2003 Jo chaho ho jaye Coca Cola enjoy 2004 The flight of delight 2005 Gaa lay Delicious taste 2006 Thanda matlab Coca Cola 2007 Khaalay Peelay Jeelay Coca Cola 2008 Aaja Jashan Mana lay 2009 BRRRRRRRRRR 2010 Very chill hai Coke Zindagi 2011 Her beat sa khaly khushia

Mission, Vision & Values

The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottling partners. Our Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Our 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.

S.W.O.T ANALYSIS OF COCA-COLA

Being such a big multi-national company, Coke has to follow different types of strategy in every part of the world In order to find out the appropriate strategies for Coke to follow in the future, S.W.O.T. has been made in the following section. This section lists the Strengths, Weaknesses of the company and the Opportunities and Threats which are present in the Pakistani Market.

STRENGHTS
Strengths are basically the powerful side of the company. These are the favorable factors of a company, which might help it to avoid the threats present in the environment and can also be used to improve upon their own weaknesses. POPULARITY: Coca-cola is an extremely recognized company as its popularity is one of its superior strengths that are virtually incomparable. Coke is known very well worldwide as its branding is obvious and easily differentiated on logos shown on t-shirts, caps, hoardings, advertisements & TV programs. BRANDING: Most people buy Coke only because it is widely accepted and they feel like they are part of something so big and unifying. If you speak the word coca cola, it would definitely be recognized all around the world. AVAILABILITY OF FINANCE: Money is a major factor and strength of a company. Coca-cola deals with massive amounts money all year. CUSTOMER LOYALTY: Another factor of strength is very important is customer loyalty. Seventy percent {70%} profit comes from 20%of loyal customer. WORKING STRUCTURE: Coca colas organizational structure is of International standards, hence there are clear cut and well defined policies, procedures, rules and regulations that have to be followed under all circumstances hence the
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working style is highly professional and discipline is maintained at every level of the organization. PROPER TIME DELIVERY: The fixed time of delivery of Coke to retailers, shopkeepers etc punctuality is maintained which gives Coke an edge over all its competitors . NAME, SYMBOL & BOTTLE SHAPE: These all are Cokes strengths which gives it an edge over its competitors. Coca-Cola bottle shape is so unique and stylish than even if the name is rubbed off people will still easily identify that its CocaCola bottle. Same is the case with its symbol and name which cannot be imitated and are so well known. ASSETS & SKILLS: Coke being one of the biggest multi-national companies and by being in business for more than 100 years, have developed huge asset base which include hundreds of manufacturing Plants in more than 150 countries. It also has skilled and educated labor that is regarded as one of its positive points. It has also a very comprehensive human resource management system with very good training programs in the country of the employees and also arranges the training in foreign countries for top management.

WEAKNESS
Coca cola is a very successful company that has few weaknesses. LACK OF POPULARITY OF FEW PRODUCTS: Many drinks that they produce are extremely popular such as coke and sprite are popular in Pakistan while few are unpopular, the demand and supply of few products like Minute Maid has not pleased the Management. LIMITATION OF RESOURCES: This is the biggest weakness of Coke. In worse situations requests for finance from the CCI (Coca-Cola International) based in USA is observed along with aid from the HQ in Lahore. Currently Coke is
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unable to supply as many freezers, coolers, finance sign and electronic bill boards as shopkeepers demand as does Pepsi which is the major reason why Coke sales falls. FORMALITY OF RULES & REGULATIONS: The organizational structure of Coke is too formal (being supervised by CCI) so the lengthy processes of decision making and implementation through hierarchy system i-e follow order from CEO to downwards) have to be followed and employees in Pakistan even (GM) is not allowed to take decisions to change even smallest of things like (Instruction on bottle) on their own. Many brilliant ideas for improvement and boost sales remain locked up in employees brain as they are not allowed to work at their own free will.

OPPORTUNITIES
Opportunities are the external factors for the company which could benefit the company if they are capitalized by using the strengths of the business. In the economy of Pakistan Coke is working on the following opportunities of which it can take Advantage of: OPEN MARKET: It has many successful brands that it should continue to exploit and pursue. Coke currently holds about 36% market share in Pakistan. Pepsi leads by holding 54% of market share, 10% to other small beverages e.g. RC- cola, Makka-Cola, Pak-Cola etc. therefore there is a vast opportunity for Coke to capture 70% market share as 54%belongs to Pepsi and 10% to others. EXPANSION OF INFRASTRUCTURE: Coca-Cola with International standards can increase its market share many folds with little efforts. Increasing the distributing channels and infrastructure to ensure availability in small towns and areas. Line extension like Fanta, Coke, and Sprite in different flavors. Launch a new product it can do it successfully as it is a well established company and has already positioned itself in customers mind (as those who provide the ultimate taste and quality) so they are bound to try their new products as well.
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RESPONSE FROM THE CUSTOMERS: Until now the consumers have shown interest in the products introduced by Coke and have accepted with open arms the good quality products brought by Coke in Pakistan. This shows that Pakistani market is ripe for other products also and a little market penetration can increase the sales.

THREATS
Threats are also external factors which can have a negative impact on the companys performance. These threats are to avoid by using the Strengths. COMPETITION: Competition is an opportunity and a threat at the same time. If Coke, with its capabilities handles its competitors with right strategies then this will be an opportunity for the company, but if the competitor is fast to take action and has a knowledge of the weaknesses of Coke it can pose a great threat for it and its success. Pepsi is giving Coca Cola a great competition in soft drink industry all over the globe and is the major Threat to Coke and its products. NEW ENTRANTS: New entrants like Pak Cola that can exploit anti Jewish and anti war sentiments, provoke nationalism sell at low prices and can be a source of threat for Coke in future once they fully launch their products in Pakistani market so coke management has to look out for them over the time. NESTLE PRODUCTS: Juices, Milo, drinks, etc as well as Shezan products Squashes, Tetra pack juices are also sort of a threat but not the direct threat for Coke because they provoke health consciousness and physical fitness. Although Coke has converted its attack on health issues by offering Diet Coke yet the threat isnt over .However Coca-Cola can effectively counter their threats at any time by launching even more products. TAXES, GOVT LAWS & POLICIES:
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The Coca-Cola management is not happy with the Govt. tax laws and policies. Being a Multinational with whole plants in 10 cities it is under heavy tax. Imposition so much so that on single bottle revenue. It has to pay as much as Rs2.97/-as tax to the government with the consequent result that Coca-Cola is the first beverage and 2nd highest tax paying company in Pakistan. It pays 33% on its total revenues. POLITICAL & ECONOMICAL INSTABILITY: The political and economic instability has caused changes in the policies almost every year due to frequent the changes in the governments. Another problem which the companies face are the terrorists attacks, strikes and off-days which costs the companies additional costs and halt in the production activities. Thus, it is one of the factors about which Coke can do very little about.

Strategies
As Coca Cola is very big and established business unit so it also use different strategies for different products. Growth strategy Growth strategy is use when company want to gain the more market share and to grow the business. Coca Cola use this strategy for Sprite 3G,Sprite Zero, Diet Coke and Kinley as they are question mark products. Stability strategy This strategy is use to make a product stable coca cola use this strategy for regular coca cola bottle and sprite. Retrenchment strategy This strategy is used for dog product coca cola use it for Fanta.

Product market expansion grid

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MARKET PENETRATION Market Penetration is the strategy, which every company has to adopt when it reaches a maximum height of growth. Coca Cola in Pakistan is doing market penetration through the selling its products to the business buyer, who are huge multinational organizations like McDonalds, Subway, Dunkin Donuts and many more. They are also keeping the local market in focus. FriChiks , AFC, PFC are examples of the buyers in the local market. They are selling the Coca Cola as the only beverage in their restaurants. MARKET DEVELOPMENT Market Development is exploring new markets for the products you are already selling. Many flavors of Coca Cola are not being sold in Pakistan. Coca Cola can develop a new market if they introduce those flavors in Pakistan. Many people in Pakistan want a change in the beverage industry, as they are having the same flavors from many years. DIVERSIFICATION STRATEGY Diversification strategy is one which every company really wants to practice. There are lots of chances of growth but the risk factor is also there. The company can manufacture products, which are not manufactured by it before. Coca Cola is only dealing in beverages but it can also manufacture its own snacks item as the company name is known almost all over the
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world. So it can cash the name by producing the items, which are eaten with the beverages. NEW PRODUCT DEVELOPMENT 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.

Micro environment
Coca cola has following factor in micro environment. Customers The Coca Cola company has Youth as its main customers, the motive of the company is to increase sales volume among the young generation as Coke is sweeter than Pepsi and liked but now Coke is satisfying different target markets including people of all ages, races etc. Cokes products are purchased by almost every class in Pakistan as it does not have expensive drinks and offered in different volumes. Coke has also dominated its existence in the Hotel & Restaurant market as it has customers like Regent Plaza, Avari Towers, Arizona Grill, Copper Kettle etc are maintaining their brand loyalty with Coca Cola. Coca-Cola major and large customers in the market are, food cornes, Mc Donalds and Pakistan Railways .However, these customers being large and powerful are in an influential and bargaining position they can demand discount or others facilities like (boards sign/freezers/coolers etc.) and impose a threat to switch to their closest rival and competitor Pepsi. Coca Cola products are purchased by all the different classes, but mainly by the
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middle and high-class citizens, because they have more money to spend on luxury items. So all market is coca cola customers. CUSTOMER ANALYSIS The Coca Cola Company exists to satisfy the consumers needs. The Coca Cola Company has over a large number of brands of drinks designed to satisfy a very wide range of consumers. They are able to provide drinks for many different target markets including, people of all ages, sexes, races, etc. Coca-Cola products are able to sell to a diverse worldwide population and its success is unmatched. In to days society, people are looking to lead better, healthier lives, Coca Cola seeing this trend has begun to produce, diet drinks that have the same great taste as their regular drinks while still being low fat or low calorie drinks, such as diet coke, or coke zero. Coca Cola products are purchased by all the different classes, but mainly by the middle and highclass citizens, because they have more money to spend on luxury items. Coca Cola is a very successful company; due to their success they are able to spend more money making their factories work more efficiently. They can do this by updating the equipment used to produce their drinks. Although people today are becoming more conscious about their environment, Many people make their purchase decisions partially based on a company ethics, or social responsibility. By contributing to stop pollution both within and outside their factories, they will gain the trust and respect of the potential buyers, who care about saving our environment. In gaining their trust and respect more people will be willing to purchase their products, because the company stands for the same goals that their consumers are trying to protect. The Coca Cola Company tries to be more environmentally aware. COMPETITORS All over the world Cokes biggest competitor is none other than Pepsi. The competition between the companies has been neck to neck as both of them keep on trying to outplay each other in terms of pricing, promoting & packaging. As Pakistans economy has suffered from global recession, the competition has become tougher. In Pakistan Pepsi is leading the market with 52% and Coke is climbing up to the 45% mark. There are many other competitors. These include Nestle and Shezan juices who do not pose a threat to Coke as yet but has the potential to do so as it is
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exploiting the natural aspect and health issues more and more to make people conscious about physical fitness Coke has launched Diet Coke to counter the physical fitness demands. SUPPLIERS Suppliers always play an important role in any companys operation. Suppliers provide resources and raw material that company requires to produce the goods and services. Coke company suppliers in Pakistan vary with respect to the raw material they provide. Following is a brief list of different suppliers of coke. Balochistan Glass Limited provides glass bottles of all sizes that are used in bottling. Plato Bag Limited provides pet bottles with the labels. Labels are designed by the Packages Ltd. Saharan Mills Limited provides the quality sugar in hygienic packets. Vanillin Intercool Pakistan provides the machinery such as Visio coolers and chest coolers for the chilled coco-cola. Coca-Cola has authorized suppliers and which do not pose a threat to it. Any how Coke does have a quality check procedures in its plants to ensure that they get the right kind of ingredients from suppliers. DISTRIBUTER Coca Cola Company makes two types of selling

Direct selling Indirect selling

DIRECT SELLING In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin. INDIRECT SELLING They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of Coca Cola products.
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Segmentation
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. In evaluating different market segments, a firm must look at three factors: Segment size Segment growth Segment structural attractiveness and company objectives and resources. SEGMENTATION STRATEGY COCA COLA Coca cola serves its products using mass marketing technique, which obviously falls in undifferentiated marketing, and undifferentiated marketing means no segmentation, but there are minor factors on which we can say that the coke segments its products and then targets the customers somehow. These factors are as follows. GEOGRAPHIC SEGMENTATION In Pakistan the coke segments more in urban and suburban areas as compare to rural. 35% population resides in urban areas and 65% population lives in rural areas in Pakistan. Coca Cola is focusing on urban areas as people there are more inclined towards such beverage while people in rural areas are more inclined drinking lassi and desi drinks.

DEMOGRAPHIC SEGMENTATION AGE Internationally coke has segments the small children introducing tastes like vanilla, lime and cherry, they focus children from 4-12. Coke specifically target more young people than older. Pakistan is considered to be a young country i.e. average age of Pakistani population is less than 38 years. Thus targeting young generation can be a beneficial marketing strategy for soft drink companies. In fact this is the case, all the major brands like Coca Cola, Pepsi mainly target younger generation in Pakistan.
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GENDER Coca Cola targets both genders with its wide variety of drinks. This market is relatively large and is open to both genders, thereby allowing greater product diversification. FAMILY TYPE Coca Cola introduces its economy pack, and thats how they focus family and groups. INCOME Coca Cola segments different income levels by packaging. Like for small income people it has small returnable glass bottle, for middle people it has non returnable bottle and for higher income people it has coke tin. PSYCHOGRAPHICS SEGMENTATION All psychographics variables the social class, lifestyle, occupation, level of education and personality, Coca Cola segments everyone, but again it is their packaging which is different for different consumers. SOCIAL CLASS Coca Cola is a well known brand. People who are brand conscious will not drink beverages of less known brands and quality such as Amrat cola. They will try to show their status by drinking Coca Cola which is known to all as a quality drink.

BEHAVIORAL SEGMENTATION OCCASIONS A very special occasion for the people of Pakistan Ramzan, people emphasis on enjoying Coca-Cola at Iftar and then on Eid with friends & family with super price off promotion. BENEFITS SOUGHT

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Sometimes, for the promotion strategy of coke, Coca Cola Company introduce prizes in the top cover. So they segment people by benefit sought, i.e. by giving them prizes. TARGET MARKETING This is the process of evaluating each market segments attractiveness and selecting one or more segments to enter. After evaluating different segments, the company must now decide which and how many segments it will target, because buyers have unique needs and wants, a seller could potentially view each buyer as a separate target market. Ideally, then, a seller might design a separate marketing program for each buyer. There are three types of market segments.

Undifferentiated marketing. (Mass Marketing) Differentiated marketing. (Segmented Marketing) Concentrated marketing. (Segmented Marketing, small segment)

Coca cola serves its products using mass marketing technique, which obviously falls in undifferentiated marketing, and undifferentiated marketing means no segmentation. So some how all market is coca cola target market.

POSITIONING
POSITIONING STRATEGY The way the product is defined by consumers on important attributes, the place the product occupies in consumer minds relative to competing products. Coca cola is focusing more for more strategy as we know it provide us benefit and satisfaction.

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Here if we talk about more price and more benefits, we can discuss Coca Cola and Pepsi. As both are the market leaders and 90% market share of Pakistan beverage industry is secure by them & the rest 10% is secure by the rest. And we can also take Coca Cola and Pepsi as challenger for each other as both of them provides more for same, more for less & same for less. As they are giving their customers more benefits for same price and also more benefits for less price with respect to different packaging sizes . Others colas like Mecca Cola, Amrat Cola and Mountain Dew are offering same for same price and same benefits for more price. They are using followers strategy, as they follow the other market leaders and giving their customers same benefits for same price.

MARKETING MIX OF COCA COLA

Marketing decisions generally fall into the following controllable categories:

Product Price Place (distribution) Promotion

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Product
Product is any good or service which has value to satisfy customer needs and want. Products of CCBPL Coke has more than 400 products all over the world. In Pakistan the Coke Family includes: Coca Cola . (300 ML Regular bottle, 500 ML Plastic bottle, 500 ML Can, 1 Liter bottle & 2.5 Liter bottle). Diet Coke . (500 ML Plastic bottle & 1 Liter bottle) Sprite Zero . (500 ML Plastic bottle & 1 Liter bottle). Sprite 3G . (500 ML Plastic bottle & 1 Liter bottle). Fanta . (300 ML Regular bottle, 500 ML Plastic bottle, 500 ML Can, 1 Liter bottle & 2.5 Liter bottle).

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Vimto . (1 Liter Plastic bottle)

Kinley Mineral water . (500 ML Plastic bottle & 1 Liter bottle).

Minute Maid Juice . (500 ML Plastic bottle & 1 Liter bottle).

Sprite (300 ML Regular bottle, 500 ML Plastic bottle, 500 ML Can, 1 Liter bottle & 2.5 Liter bottle).

LEVELS OF COKE AS A PRODUCT CORE PRODUCT LEVEL Core benefit is that it fulfills the thirst. ACTUAL PRODUCT LEVEL Design: Pet bottles, returnable glass bottles, economy packs. Quality: Quality differs with respect to country for example. Coca-Cola Can quality that is available in Middle East is certainly different as compared to Coke Can available in Pakistan. AUGMENTED PRODUCT LEVEL Straws, bottle openers are unnecessary to give with bottle
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PACKAGING & LABELING OF COCACOLA Packaging means the activities of designing and producing the container or wrapper for a product. Traditionally packaging decisions where based primarily on cost and production factors, the primary function of the package was to contain and protect the product the product. In recent time, however humorous factors have made packaging an important marketing tool. These factors include all acting attention describing the product making the sales. Packaging involves designing and producing the container or wrapper for product. The package may include the products primary container a secondary package that is thrown away when the product is about to be used and shipping package necessary to store , information appearing the product labeling printed information appearing on or with the packaging is also part of packaging. Label ways rouge from toys attached from product to the complex graphic that identify the product or brand, such as the product the label weight also described several things about the product that made its contents how it is to be used. Coca-Cola products, almost all of them are available in bottles of 250 ml, 500 ml pet jar,1000 ml, 1500 ml and 2000 ml bottles as well as 330 ml cans.

PRICING
The amount of money charged for a product or service, or sum of the values that consumers exchange for the benefits of having or using the product or services. As price gives us the profit so this P is very important for business price of product should be that which gives maximum benefit to the company and which gives maximum satisfaction to the customer. Following factors Coca Cola kept in mind while determining the pricing strategy.

Price should be set according to the product demand of public. Price should be that which gives the company maximum revenue. Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy your product.
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Price must be keeping the view of your target market. The price of Coca Cola, despite being market leader is the same as that of its competitor Pepsi Cola.

PRICES OF DIFFERENT PRODUCTS Coca cola Sprite regular/zero Pulpy orange Kinley Fanta Splash juice 1.5 liter Rs.70 Rs.70 Rs.110(liter) Rs.55 Rs.70 Nil liter Rs.35 Rs.35 Rs.45 Rs.30 Rs.35 Nil 250 ML Rs.15 Rs.15 Nil Nil Rs.15 Rs.15

PRICING STRATEGIES There are many pricing strategies we are discussing some of them which is follow by CCBPL. MARKET PENETRATION PRICING POLICY Prices in beverage industry are determined by the consumer. In an economy like that of Pakistan, consumers tend to switch towards a low priced product. Coca Colas objective is to target every consumer of the country so Coca Cola has to set its prices at such a level which no one can offer to its consumers. That is why Coca Cola charges the same prices as are being charged by its competitors. Otherwise, consumers may go for Pepsi Cola in case of availability of Coca Cola at relatively high price Product bundle pricing Coca cola also do product bundle pricing in which they make a bundle of three to four bottles and charge less price but they sold three to four bottles in a time. PRODUCT LINE PRICING STRATEGIES
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It means the number of products that company is offering. For example Coke, Diet Coke, Fanta, Sprite etc. COMPETITION BASED PRICING APPROACH Coca Cola has intense competition with Pepsi so its pricing cant exceed too much nor decrease too much as compared to the price of Pepsi Cola. If price of the Coca Cola exceed too much from the Pepsi then people will shift to the Pepsi Cola and on the other hand if the price of Coca Cola decreases people might get the impression that its quality is also low. PROMOTIONAL PRICING POLICY Coca Cola has offered promotional prices very frequently. Especially on some occasion Coca Cola reduces its rates like in Ramzan Coca Cola reduces its rate unto 5 Rupees on 1.5 liter bottle. DISCOUNTS Coca Cola offers various discounts to customers in some occasion like Eid and Ramazan on price it also give discount to those retailers who have the maximum sales of Coca Cola products on daily, monthly and on seasonal basis. Some of the main discounts given to the retailers are as follows: QUALITY DISCOUNT Following are discounts offered by Coca Cola. 1/10 DISCOUNT I.e. one case of Coca Cola is free on buying 10 cases of Coca Cola at one time. 2/20 DISCOUNT I.e. two cases of Coca Cola are free on buying 20 cases of Coca Cola at one time. SEASONAL DISCOUNT Following are discounts offered by Coca Cola. Coca Cola also offers seasonal discounts schemes by reducing price in Ramadan and on Eid. Coca Cola also offers trade in allowance for retailers
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3 B F DISCOUNT I.e. sometimes, especially in the off-season duration, in order to increase the sale of Fanta and Sprite, 3-BF discount is given (i.e.) 3 bottles free on purchasing every case of Fanta and Sprite. INCENTIVES Mainly two types of incentives are given by the Coca Cola: INCENTIVE TO RETAILERS Coca Cola provide various incentives to retailers on the best sales and achieving the predetermined sales targets. These incentives are in the shape of:

Deep Freezers Return Tickets Free Transportation Services.

SPECIAL EVENT OFFERS Coca Cola gives special offers to consumers on special occasions like Ramadan and Eid days instead of decreasing the price of the products, some special packs like Pakkora Mix, Chat Massala, or Free Drinks with Liter Bottles are offered. PLACE Place means any spot where buyer and seller interact Coca cola place its product very efficiently it capture almost every small and big place and there placement policies are very effective. Coca cola place its products almost every part of country they manly place their products urban and suburban areas as compare to rural. 35% population resides in urban areas and 65% population lives in rural areas in Pakistan. Coca Cola is focusing on urban areas as people there are more inclined towards such beverage while people in rural areas are more inclined drinking lassi and desi drinks.
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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 DISTRIBUTION CHANNELS Coca Cola Company makes two types of selling

Direct selling Indirect selling

DIRECT SELLING In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin. INDIRECT SELLING They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of Coca Cola products.

PROMOTION
ADVERTISEMENT OF COCA COLA Long period, paid, planned, formal way of promotion. The field of advertisement is one area where Coca-Cola has always emphasized. In year 2000 Coca-Cola unveiled the biggest advertising billboards in the history of Pakistan. Each unveiling was marked by
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entertainment and light shows watched by thousands of people. Similarly in July 2000 Coca-Cola launched its first under the crown promotion by the name of Dream Vacations in which the consumers could collect caps of promotional bottles of Coca-Cola like Sprite, Fanta and Coke. ADVERTISEMENT OBJECTIVE Type of advertising with respect to product life cycle that Coca-Cola adopts is reminder type. The reason behind this fact is that coke is such a product that is at the maturity level currently so for such a product companies mostly go for reminder type of advertisement so that they can penetrate more and more and same is the case with Coke. SETTING OF ADVERTISING BUDGET Coca-Cola sets its advertisement budget on the basis of competitor based budgeting. Major competitor of Coca Cola is Pepsi and as Coke realizes that Pepsi has increased its advertising budget, straight away Coca-Cola management plans to do the same so that they can compete in advertising department as well. So they are following Competitor parity method. ADVERTISING STRATEGY/MESSAGE Before creating advertising message the Coca-Cola Company gives lots of time to the factor that the message must gain customer attention. This is basically called Clutter Buster means that only that advertisement will leave impact on customer mind that has some specialty or uniqueness in it. So we can say that message strategy is concrete. ADVERTISEMENT 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. Coca Cola Company use different mediums

Print media Pos material TV commercial Billboards and holdings

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PRINT MEDIA They often use print media for advertisement. They have a separate department for print media . POS MATERIAL POS material (Point of sale material) this includes: posters and stickers that are displayed in the stores and in different areas. TV COMMERCIALS As everybody knows that TV is a most common entertaining medium so TV commercials are one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels. BILLBOARDS AND HOLDINGS Coca Cola is very much conscious about their billboards and holdings. They have many sites in different locations for their billboards HOW COKE DETERMINE THE YEARLYBUDGET Coke determines its yearly budget by the

Sales volume Profitability Target volume

SALES VOLUME Coke determines its yearly budget through the sales volume. They first concentrate on the thing is what is the condition of their sales? if the condition is good of their sales then they definitely increase their production and sales volume. Otherwise they concentrate on their old strategies. PROFITABILITY The second thing through which they determines budget is the profit if they are getting profits with the high margin, then they definitely want to increase their profits in the next coming year. Every organization runs on the basis of getting high profits. No organization wants to face Loss in their business. To get profit is the first priority of the Coke.

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TARGET VOLUME To run the business every industry has some targets, which they want to achieve in a specific time period. If industry achieves those goals in that period then for the coming year it increases the volume of the target. So Coke Follow the same thing it has also some goals and targets to achieve in the given time period. When they succeed to achieve that target then they increase their target volume in the next year.

SALES PROMOTION ACTIVITIES

SALES PROMOTION ACTIVITIES Samples When CCBPL introduce minuet maid juices they give sample to general public so they use sample as tool of promotion. Price pack Coca cola often provide to there customers price pack in which actually they give bundles of bottles at less price Advertisement specialty They do promotion on different goods like on caps, shirts, bags, pen, clock etc.

Public relation
COCA-COLA CRICKET Cricket the most sought after; watched & played game in Pakistan .the game of cricket has been owned by various brands in the industry for the promotion of their products over a period of time. It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the beverage industry. The competition has become tougher & tougher as the time has progressed. Coca-Cola signed a sponsorship agreement with eight of Pakistan National cricket players. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it
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consumers & masses invested in the opportunity and launched a massive campaign on mass media showing all these cricket stars endorsing & complimenting Coca-Cola brand. The Coca-Cola Company developed three TV commercials & four testimonial ads with the player & ran them on the national network during various cricket matches. These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board. This campaign helped Coca-Cola to establish its association with the game & the player.

COCA-COLA CONCERTS Abrar-ul-haqs distinct style, lyrics & songs have made him an instant hit among the masses in Pakistan. His enormous popularity in the country & abroad is supported by Coca-Colas commitment towards providing healthy & funfilled entertainment for the youth of Pakistan. Coca-Cola brought Abrar to his fans through holding concerts & featuring. COCA-COLA FOOD MELA With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the people , to a festive food festival comprising of 50 restaurants, spread out all over the bustling city s map. The promotion saw the avid families & friends enjoying the delicacies at the restaurants; all resiliently upholding the Coca-Cola identity. COCA-COLA BASANT FESTIVAL In February the month of basant the parks & horticulture authority in Lahore nominated Coca-Cola the official sponsor of the basant festival .Coca-Cola added to the carnival atmosphere by making the festival free to enter & decorating all main roads in Lahore with illuminated kites. Coca-Cola also hosted a concert of pop idol Abrar-ul-haq, had children parade & held the Coca-Cola kite flying championship during the basant festival. Now where there is basant there is Coca-Cola, it has been impossible to envisage basant without Coca-Cola. Coca-Cola give the more refreshing flavor to the colors of basant by adding more life to the festival, giving the consumer a unique experience which they had never tasted before. COCA-COLA PARTY IN A PARK Coca-Cola created an experiential musical evening in Lahore, where Abrarul-haq performed. This program was recorded and one-hour program shown
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in the national TV for free.10million households saw Coca-Cola Party in a Park while 10 thousand people attended the event. COCA-COLA PET PROMOTION In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in Pakistan. Targeting house wives & family home, Coca Cola 1.5 liter Pet bottle, took the lime light & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits .A treat for the family, Coca-Colas PET was offered through a price-off promotion that said... Go out & get some COCA-COLA RAMZAN CAMPAIGN A very special occasion for the people of Pakistan Ramzan saw another very special Coca-Cola promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with a super price-off promotion. The emphasis on enjoying Coca-Cola at Iftar with friends & family.

CONCLUSION We have concluded from this detailed report that despite the fact Coca Cola currently occupies the market leadership position overall but it does not guarantee that the company will sustain its position in the future as well. In Pakistan as compared to Pepsi, Coca-Cola has less number of consumers as Pepsis market share in Pakistan is approximately 54% whereas Coke market share is hovering about 45 %, hence the conclusion is that Coca-Cola must enhance factors such as relationship marketing, innovation and technology especially in Pakistan to attain market leader position in this region as well.

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Recommendations Coca Cola should decrease its promotion cost so as to reduce its retail price for end consumers.

Currently in Pakistan there are only few SKUs of Coke available, company should enlarge its portfolio by introducing new SKUs as we see in our neighboring country like clear drinks ,juices and Energy drinks

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

According to the survey, conducted by the international firm Pakistani people like less sweet cola drink. So for this CocaCola Company should think about bringing a new product for example new diet flavors, in the market to fulfill the local need. Coca Cola should take steps to increase the natural beauty by reducing the amount of bill boards or by using appropriate locations for their bill boards.

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