Professional Documents
Culture Documents
MBA-III-E
Submitted by:
Khushnood Hussnain Wasim Afzal Bajwa MBP-11016 MBP-11556
Submitted to:
SIR NADEEM IQBAL RAZA Consumer Behavior
Table of content
Page #
Coca-Cola History
History in Pakistan
Portfolio (Global)
Portfolio (Pakistan)
Sensations
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COCA-COLA HISTORY
In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pembertons 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 first sold to the public at the soda fountain in Jacobs 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 expanses, 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, Asa Candler bought the formula for Coca Cola from inventor John Pemberton for $2,300. By the late 1890s, Coca Cola was one of Americas most popular fountain drinks, largely due to Candlers aggressive marketing of the product. With Asa 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 Asa Candlers 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. Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first distributed in 1888 to help promote the drink. By 1913, the company had redeemed 8.5 million tickets. This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden, Louisiana. In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine Coca. The first sales were at Jacobs Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health. Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. By 1888, three versions of Coca-Cola sold by three separate businesses were on the market. Asa Griggs Candler acquired a stake in Pembertons company in 1887 and incorpor ated it as the Coca Cola Company in 1888. The same year, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pembertons son Charley Pemberton began selling his own version of the product.
John Pemberton declared that the name Coca-Cola belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of the business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret Dozier and Wool folk Walker. However, in 1914, Dozier came forward to claim her signature on the bill of sale had been forged, and subsequent analysis has indicated John Pembertons signature was most likely a forgery as well. In 1892 Candler incorporated a second company, The Coca-Cola Company (the current corporation), and in 1910 Candler had the earliest records of the company burned, further obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the status of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some ingredients. Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall advertisement was painted in the same year as well in Cartersville, Georgia. Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobbleskirt design that is now so familiar. Asa Candler was tentative about bottling the drink, but two entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899 Chattanooga became the site of the first Coca-Cola bottling company.[18] The loosely termed contract proved to be problematic for the company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers.
The Coca-Cola System in Pakistan serves 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 56 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.
Sprite Sprite is a clear soda, lemon-lime flavored, caffeine-free soft drink, produced by The Coca-Cola Company. Sprite is an edgy brand that has a clear point of view about the world which makes it stand out. It cuts through thirst, giving you sudden refreshment and clears your mind to inspire fresh thinking. Originating in Germany, Sprite was introduced to the US in 1961. In the US, it has been the market leader in the lemon-lime soda category since 1989. It is the third most popular soft drink in South Africa (after Coca-Cola and Fanta). Sprite was introduced in Pakistan in1972. The brand is actively involved in youth programs, which are driven through the sport of basketball. There are different variations in Sprite; Sprite Sprite Zero\Diet Sprite Sprite 3G
Fanta Available in Europe since the 1940s, Fanta was introduced in the United States in 1960. Consumers around the world, particularly teens, fondly associate Fanta with happiness and special times with friends and family. This positive imagery is driven by the brand's fun, playful personality, which goes hand in hand with its bright color, bold fruit taste and tingly carbonation Fanta is a sparkling soft drink with a great fruity taste. There are more than 90 flavors of Fanta worldwide. Fanta was introduced in 1965 in Pakistan. Fanta lemon was introduced in 2001.
Minute Maid In 1945, the National Research Corporation (NRC) of Boston, Massachusetts, developed a method of concentrating orange juice into a powder using a high-vacuum evaporation process previously developed for dehydrating medical products for use in the U.S. war effort. Produced by the Coca-Cola Company - the world's leading marketer of premium fruit juices and drinks - there are now more than 100 different flavors and varieties of Minute Maid readily available just about anywhere you find people with a thirst for good living. Minute Maid entered the Pakistani market in 2008. Here they have used the same advertising concept as they have used in India i.e. "where is the pulp?" as both countries market are similar to each other. However, the entry of Minute Maid is seen by many as late as a lot of beverages companies are already there and the market is not really growing. Thus, Minute Market has a lot of competition to deal with Minute Maid Pulpy Orange Minute Maid Pulpy Tropical Minute Maid Pulpy Nimbu/Lemon (Launched in 2012 and discontinued the same year since the taste wasn't much liked by the masses)
Kinley Kinley is a brand of still or carbonated water owned by the Coca-Cola Company and sold in many large European and Asian countries. Its carbonated forms are used for mixers, and also available in a variety of fruit flavors. Kinley water understands the importance and value of life giving force. Kinley water comes with the assurance of safety from the Coca-Cola Company. Coca-Cola introduced Kinley with reverse osmosis along with latest technology.
paying attention to. In a high percentage education, the company can use advertisements to convey the company massage. Because Coca-Cola is a recognized world brand, people will drink it without hesitate.
SENSATIONS
Sensations involve different sensory stimulus to whom we are exposed in daily routine life. Coca-Cola has been using different stimulus incredibly to build its brand equity, brand leverage, recognition and recall. Some of its sensations are as follows; Name & Logo (Vision) When John S. Pemberton created the formula for his new drink in 1886, his partner and bookkeeper, Frank M. Robinson, suggested the name Coca-Cola, thinking that the two Cs would look well in advertising. He wanted to create a unique logo to go with it, and experimented writing the companys name in elaborate Spenserian script, a form of penmanship characteristic of the time. Coca-Cola has been changing its logo through its journey towards worlds best soft drink according to the time and geographic distribution.
. Bottling History (Touch) Texture is a basic sensation that can play a huge role in shaping the consumers behavior. Consumers are more likely to purchase a product they can touch. Thats why the consumers with such behavior are more likely to purchase from a physical outlet rather than shopping online. Coca-Cola is a product which reaches its consumers through a physical channel so it becomes necessary to make this physical purchase process more enjoyable for the consumers. In this perspective Coca-Cola has a unique bottling history. This has played a great role in capturing new customers and shifting old ones into loyal ones.
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Coca-Cola Formula (Taste) The most important sensation that has played an incredible role in the success of Coca-Cola is its unique taste. The Coca-Cola formula is The Coca-Cola Company's secret recipe for Coca-Cola syrup that bottlers combine with carbonated water to create its line of cola soft drinks. As a publicity, marketing, and intellectual property protection strategy started by Robert W. Woodruff, the company presents the formula as a closely held trade secret known only to a few employees. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors. This helps the company to maintain its great taste all over the world. Ingredients used to make this unique formula are Water, Sugar, Carbon di oxide, Caramel Color , Acidulant (Phosphoric Acid) , natural flavors , caffeine. Slogans (Hearing) For the success of a brand the slogans and jingles play a vital role to create the brand recall and recognition. As Coca-Cola is a universal brand, it has been using many slogans all over the world in different times. It changes its slogan according to the events. The slogans it has been using in Pakistan are "Dill Hai To Mango Aur" ("if you have a heart ask for more") (2000s) "Kha Le Pee Le Jee Le" ("eat drink live") "Brrrrrrrrrrr.Coke" "Mil Jul kar Khulein Khushian" ("Open Happiness together") (for Ramadan 2011) "Khulein Khushian"("Open Happiness")
HOW DOES IT MAKE YOU LEARN? Coca-Cola emphasizes on behavioral learning theory in its advertising in Pakistan. It makes an effective use of such advertising to create a distinctive brand image and perceived linkage. The transfer of meaning from unconditional stimulus to conditional stimulus explains why brand name of Coca-Cola exerts such powerful effects on its consumers. The association between its slogan "Khulein Khushian" and drink is so strong that if its brand name is not used in ads, yet I can recognize it. Coca-Cola has made me learn through following principles Repetition Through its ads, Coca-Cola has played a significant role to make me familiar to its product. The repetition of its ads, using the slogans and creating the enjoying environment through friends and family members, it has made me learn to drink coke when enjoying with friends or having dinner with my family.
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Stimulus Generalization Coca-Cola also makes me learn through the use of stimulus generalization. As it has created the association of enjoying with friends and family, I am more likely to adopt its other new products with same stimulus rather than using the new products offered by its competitors in the market. Coca-Cola has made use of Family branding: capitalizing this technique it has made me learn to use Sprite rather than 7up. Product line extension: through the use of this technique it has made me learn to use its Minute Maid juice rather than any other pulpy juice available in the market. As it guarantees its historical great taste habit even in juices.
Licensing: Coca-Cola licensee Brand Alliance launched their new range of branded tees last month in store and online at UK fashion retailer New Look. The line has proved a huge success with Coca-Cola 86 and Fanta vests already sold out! There are a few pieces left but the range is selling fast. The Licensing Company is Coca-Cola's appointed licensing agent in Europe and China.
Similarly it has started the music show Coke Studio in Pakistan. Another example is putting their name on refrigerators and introduction of bottle openers with their name. Stimulus Discrimination: Coca-Cola. A name that is universally more recognized than any other in the world. Thats the power of Coca-Colas brand. Some will say its the flavor, but for millions, its the way Coca -Cola makes them feel. Coca-Cola brand name is the worlds most recognized brand with the largest brand equity. These are the companys assets that no one can ever copy and make it different from other brands. People can easily differentiate it from its competitors.
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Specific attributes: Unforgettable real cola taste Revitalizing As good with any meal As a social drink to be shared with friends I can recall all these attribute easily because it has always been a great quality drink for me that revitalizes me. It is a good drink that I share with my family and friends.
Intrinsic attributes: Its great taste Ability to refresh and quench thirst Its high quality Its value for money These attributes are also easily recalled because these are truly matched with my personal feelings and beliefs. Along with all these attributes, its color, slogans, packaging are all easily recalled to me. And there are no attributes related to Coca-Cola that I cant recall.
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My motivation to get involved My involvement with coke has taken the form of emotions. The reason of my involvement is as following:
Product involvement I am totally involved into coke and the big reason is its great quality taste. It has developed such a unique taste that I cant find in any other drink available in the market, no matter what price I have to pay against it. The thing that can switch me to another drink is if and only if coke changes its taste as it did in 1985. The new one was named as new Coke. People protested against this change in taste. By June 1985, The Coca-Cola Company was getting 1,500 calls a day on its consumer hotline, compared with 400 a day before the taste change. They seemed to hold any CocaCola employee from security officers at Coke headquarters building to their neighbors who worked for Coke personally responsible for the change. In response, the announcement of the return of "old" Coca-Cola was made in July 1985 That July day, the story that the "old" Coca-Cola was returning to store shelves as Coca-Cola classic led two network newscasts and made the front page of virtually every major newspaper. Consumers applauded the decision. In just two days after the announcement of Coca-Cola classic, The Coca-Cola Company received 31,600 telephone calls on the hotline. Coca-Cola was obviously more than just a soft drink. And so it is, now, as it was. The greatest tool for a product involvement that can be used by marketers is Mass customization. Coca-Cola is offering this feature in U.S and U.K through Share a coke: Theyre replacing the iconic Coca-Cola logo on some of their bottles with 250 of Great Britains most popular names, so consumer can share a Coke with their friends, family and loved ones. People can also share a personalized Coca-Cola, Diet Coke and Coke Zero with a friend on Facebook using our Virtual Can app. More info @ http://CokeURL.com/names Coca-Cola Free style: Company has recently introduced its Soda Fountains as Coca-Cola Freestyle Touchscreen Soda Fountains. These fountains have touchscreen and will allow up to 100 different flavors of beverage. Coca-Cola Freestyle Touchscreen Soda Fountains use concentrated flavor cartridges and a Pure Pour mixing technology first developed for delivering dialysis and cancer drugs. Coca-Cola Freestyle Touchscreen Soda Fountains use a fivegallon bag of drink concentrate. Coca-Cola Freestyle Touchscreen Soda Fountains takes 46-ounce cartridges that are RFID tagged so as to match up with the computer program. http://www.coca-colafreestyle.com However these activities are being practiced in U.K and U.S currently but I hope to have them in Pakistan soon. So these customized options motivate me to be highly involved with Coca-Cola.
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Message-Response involvement Coca-Cola uses its Integrated Marketing Communication (IMC) campaigns to catch consumers involvement. But mostly the focus is TVCs commercials because this media has a greater reach to its target customers all over the Pakistan. Another reason is that through TV it can communicate message with sight, sound and motion, to their targeted customers. Coca-Cola has been focusing different events and supporting the communities. Here is the big idea about Coca-Cola brand in which earthquake campaign is the main point of concern and it is given as follows: Come and Join hands with Coca-Cola to re-establish people of Peshawar and of northern areas of Pakistan and make them to rise again Atlanta, Sept. 12, 2013 - In a tour spanning more than 92,000 miles, Coca-Cola and FIFA will take the iconic FIFA World Cup Trophy on its longest journey to date. Announced this month, the route for the highly anticipated 2014 FIFA World Cup Trophy Tour will give more than one million people around the world the chance to experience football's most coveted prize in their own communities. The FIFA World Cup Trophy Tour by Coca-Cola will be the most inclusive, participatory event ever, inviting fans around the world to get up close and personal with the same trophy that is presented by FIFA to the country winning the FIFA World Cup .
In an uplifting Coca-Cola film shows that what unites us is stronger than what sets us apart. High-tech vending machines installed in two popular shopping malls in Lahore, Pakistan and New Delhi, India two cities separated by only 325 miles, but seemingly worlds apart due to decades of political tension invited consumers to put their differences aside and share a simple moment over a Coke.
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The Coca-Cola Company maintains the longest continuous relationship with the Olympic Movement. The company sponsored the 1928 Olympic Games in Amsterdam, and has supported every Olympic Games since. Coca-Cola refreshes Olympic athletes, officials and spectators with its beverages during the Olympic Games. The company has developed a strong tradition of creating programs and events to bring the spirit of the Games to consumers in Olympic host cities and around the world. Coca-Cola also works closely with National Olympic Committees to support athletes and teams in approximately 190 countries. Coca Cola became a charter member of the TOP Program in 1986 under the exclusive product category of non-alcoholic beverages. In 2005, The Coca-Cola Company and the IOC extended their partnership agreement for an unprecedented 12 years until 2020. The CocaCola Company is the worlds leading manufacturer, marketer and distributor of non -alcoholic beverage concentrates and syrups used to produce more than 230 brands of products. The company has local operations in over 200 countries around the world.
Coca-Cola releases bottle made of ice: Coca-Cola has unveiled a unique drink that is perfect for a hot summer's day - a bottle made of ice. The limited-edition container, created in partnership with Ogilvy & Mather Bogota, is shaped liked a regular Coke bottle and has the drinks giant's name etched into the ice. However, so customers aren't left with cold hands, it comes with a red rubber band that slips around the bottle, which can be worn as a bracelet after the ice melts. Coca-Cola makes the ice bottles by pouring water into a silicone mould, freezing them at -13 degrees Farenheit and then filling the mould with Coke. The ice bottles are currently only available in Colombia, but are proving very popular - vendors are selling around 265 an hour.
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Coca-Colas Fan First approach in social communities is a big reason to motivate the consumers to get involved in messages. According to Coca-Cola Facebook 2 Billion photos upload a month - nearly 70 million a day Consumers remind us every day that Coke is THEIR brand
And they are producing GREAT Content - for the LOVE of THEIR Brand
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Enabling Fans to Comment, Upload and consume their own consumer generated brand related content. Strategically targeted messaging in support of our brand objectives. Here are the results of this Fan First approach
MSNBC on 11/30/09
In all these activities the examples of Vigilante Marketing, Interactive mobile marketing and Consumergenerated content are performed. All these advertising activities of Coca-Cola (especially on F.B) motivate me to get involve highly in its advertisings. I also have joined the Coca-Cola F.B page to get all the notifications about new events, innovations and advertising material.
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students for a four year undergraduate degree program at LUMS's School of Science & Engineering. These students, Coca-Cola Scholars, were selected for support purely on merit and belong to less privileged areas of Pakistan Social Responsibility: Coca-Cola Pakistan in collaboration with WWF-Pakistan organised a clean-up drive to clean tourist site of Pakistan, Lake Saif-ul-Mulook. The activity comprised people of all ages and walks of life. More than 80 people volunteered to partake in the clean-up drive of Lake Saif-ul-Malook, which is part of Coca-Cola and WWF's ongoing project titled "Environment Conservation Project, Ayubia" which commenced in 2009, and since then the project has been scaled up every year. Reason to believe campaign: Following their global campaign, Reasons to Believe, Coca -Cola decided to give people reasons to believe in a better Pakistan. The need to spread this message effectively became as important as the message itself. So the company decided to take the digital community on board, organizing a bloggers meet-up on March 11 on boat!. Called The Happiness Cruise, it provided a completely new experience to the participants, away from the noise and distractions of the city. Then a presentation was made on Cokes new campaign, spearheaded by a really touching infomercial, Reasons to Believe in Pakistan. After the presentations, the floor was opened for discussion and with nearly 30 active bloggers, twitterati and other new media activists present, the discussion was fast-paced and animated, with many thoughts and ideas being shared and debated. At the end, the participants took a pledge to support Coke for taking this initiative forward and signed a resolution which stated. Activity was performed on 11th march 2012.
Crazy for good: KARACHI: Coke Pakistan organized the Crazy for Good event to promote their Corporate Social Responsibility (CSR) activities and involvement. The day started with the Coke happy bus taking guests to an unknown location with many fun activities on board. The group then ended up at Tushan beach at a beautiful hut which was decorated with the Coke theme followed by lunch and then joined by Coke's brand team for discussion on their involvement at the CSR wing.
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The discussion highlighted several projects that Coke has been involved with such as the TCF Muzaffargarh venture, collaborating with the WWF on the ANP project and refurbishing government schools with #care foundation. An example of one such project is the Kashf Foundation, which was donated $100,000 to empower women to invest in small businesses and create a sustainable local community. APR Zohair Ali said that Coke has invested around $6 million in social projects in Pakistan.
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At a time when the music scene in Pakistan was breathing its last, The Coca Cola Company introduced Coke Studio in 2008. Coke Studio is a Pakistani music television series, produced by the Coca-Cola Company and Frequency Media, which features live studio-recorded music performances by various artists. Starting in 2008, Coke Studio has been popular throughout the country, receiving critical acclaim and frequently being rebroadcast on numerous television and radio stations. It is one of the most popular music programs in Asia and is a local brand product of Coca-Cola. The program focuses on a fusion of the diverse musical influences in Pakistan, including eastern classical, folk, qawwali, bhangra, Sufi and contemporary hip hop, rockand pop music. The show provides a platform for renowned as well as upcoming and less mainstream artists, of various genres, regions and languages, to collaborate musically in live studio recording sessions. Through this program Coca-Cola is helping to retain our social culture and values in music industry that is badly hurt by the western style loud and rock music adopted by new generation. And it is giving a chance to new generation to listen that truly is ours.
Under the supervision of producer Rohail Hyatt, Coke Studio produced music that made its mark internationally and artists like Meesha Shafi, Arif Lohar, Zeb and Haniya, Saaen Zahoor and Javed Bashir became household names in Pakistan and across the border. The hype of this unique sound in a Bollywood music-driven Indian market inspired a collaboration of Coca Cola India and MTV India. We had conducted research in 2010 which revealed that 25% of all Google searches in India were for Coke Studio Pakistan this was amazing! This is the statement given by the Wasim Basir, the director of integrated marketing communications at Coca Cola India. We can conclude that the Coca-Cola has tried its best to become the part of our cultural values. And it has not only succeeded in doing so but also is sharing our values all over the world through its huge social platforms. I am quite happy to be the part of worlds largest selling and great tast ing drink.
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