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1.0 Executive Summary

Giant soft drink company Coca Cola has come under intense scrutiny by investors due to its
inability to effectively carry out its marketing program. Consequently it is seeking the help of
Polianitis Marketing Company Pty Ltd to develop a professional marketing plan which will
help the business achieve its objectives more effectively and efficiently, and inevitably
regain there iron fist reign on the soft drink industry.
When establishing a re-birthed marketing plan every aspect of the marketing plan must be
critically examined and thoroughly researched. This consists of examining market research,
auditing business and current situation (situation analysis) and carefully scrutinising the soft
drink industry and possibilities for Coca Cola in the market. Once Coca Cola have carefully
analysed the internal and external business environment and critically examined the industry
in general the most suitable marketing strategies will be selected and these strategies will be
administered by effectively and continually monitoring external threats and opportunities and
revising internal efficiency procedures.





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2.0 Situation Analysis

The founders of Coca Cola have developed their marketing plan using the following format.

2.1 Market Summary
The market analysis investigates both the internal and external business environment. It is
vital that Coca cola carefully monitor both the internal and external aspects regarding its
business as both the internal and external environment and their respective influences will be
decisive traits in relation to Cokes success and survival in the soft drink industry.

Internal Business Environment
The internal business environment and its influence is that which is to some extent within
the businesss control. The main attributes in the internal environment include efficiency
in the production process, through management skills and effective communication
channels. To effectively control and monitor the internal business environment, Coke
must conduct continual appraisals of the businesss operations and readily act upon any
factors, which cause inefficiencies in any phase of the production and consumer process.

External Business Environment
The External business environment and its influences are usually powerful forces that can
affect a whole industry and, in fact, a whole economy. Changes in the external
environment will create opportunities or threats in the market place Coca cola must be
aware off. Fluctuations in the economy, changing customer attitudes and values, and
demographic

Target Market
The target market for Coca cola is very wide as it satisfies the needs for many different
consumers, ranging from the healthy diet consciousness through Diet Coke to the average
human through its best selling drink regular Coke. Most Coke products satisfy all age groups
as it is proven that most people of different age groups consume the Coca Cola product. This
market is relatively large and is open to both genders, thereby allowing greater product
diversification.
Cokes commercials basically based on young generations, so, the young generation is the
target market of Coke because they want to represent Coke with the youth and energy but
they also consider about the old people they take then as a co-target market.









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2.1.1 Market Demographics
Coca Cola Company is the worlds leading manufacturer, marketer, and distributor of soft
beverages. Coca Cola uses "Multisegment" targeting strategy which means that the company
has more than single, well- defined, market segment. It develops a marketing mix for each of
the segments. Coca Cola has more than 400 different products line, total of 3,500 product
mix.

Geographic Segmentation:
Internationally: Coke segments its products country wise and region wise.
The most important things is the taste and quality.
It varies according to the taste and income level of the people in that country.
I.e.: third world countries are given low quality and taste.
Climatic: In coke marketing, main idea is to serve it cold, so we that they focus on hot areas
of the world.i.e.: middle east etc and their sale increase in summer.
Localy: In pakistan the coke segments more in urban and suburban areas as compare to rural
areas.


Demographic:
Age:. Coke segments the small children introducing tastes like vanilla, lime and cherry. They
focus children from 4-12.
Coke specifically target more young than older.
Family type:. Coke introduces its economy pack and thats how the focus family and groups.
Income:. Coke segments different income levels by packing.
For small income people it has small returnable glass bottle.
For middle people it has small non-returnable bottle.
For higher income people it has Coke Tin.


Psychographic:
All psychographics variables the social class, lifestyle, occupation, level of education
and personality Coke segments everyone.
But again its there packaging which is different for different consumers.


Behavioral:
Occasion:. Coca-Cola segments different occasions which are celebrated in the country.
Basant has become an international event identity of the culture of pakistan.
The crdit for making celebrations available for almost everyone largely goes to Coca-
Cola Company.





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Table.1.0 Target Market Forecast

Market Forecast
2014 2015 2016 2017 2018
Activity Number
+
Reve
nue
++
Number Reve
nue
Number Reve
nue
Number Reve
nue
Number Reven
ue
1.Training of
individuals
7,500 at
$ 10,000
11.5 8,000 at
$
10,000
15 8,500 at
$ 10,000
18.5 9,000 at
$ 10,500
22.5 9,500 at
$ 11,000
30
2.Consultancy 100 at $
60,000
3.5 150 at $
60,000
5.5 190 at $
70,000
6.5 240 at $
80,000
8.5 310 at $
90,000
10.5
3.Web-based
learning
program
- - - - 190 at
3,000
0.5 500 at
3,000
0.7 700 at
3,000
0.9
Total 7,600 15 8,150 20.5 8,880 25.5 9,740 31.7 10,510 41.4
+ In mandays
++$ million

Table 1.0 provide target market forecast both in terms of number and revenue for the
major activities envisaged for 2014-18

2.1.2 Market Needs
In coke marketing, main idea is to serve it cold, so we can say that, they focus more on hot
areas of the world, i.e. middle east etc and there sale increase in summer.
The market needs vary with time and Coke Intl. introduces its products over time e.g. Coke
Cherry etc.

2.1.3 Market Trends
Coke will always show activities, where people get together to enjoy moments of
togetherness with our brand. Research analysis indicates that youngsters love to get together,
and it is when they are enjoying themselves, that will consume coke. For Pakistani youth,
socializing with friends and family is core behaviour in their lives. Cokes brand
personality is all about togetherness.
At times, Coca Cola Intl seeks to promote itself through sponsoring events. Since many
years, Basanat festival has somewhat become Coke Festival.

2.1.4 Market Growth
Coca Cola Company can also identify its expansion through the ANSOFF approach.







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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 & many more & they are also keeping the local market in focus. Fri Chicks, AFC etc
are examples of the buyers in the local market. They are selling the Coca Cola as the only
beverage in their restaurants.
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.


2.2 SWOT Analysis
The flowing SWOT Analysis captures the key strengths and weaknesses of Coca Cola and
identifies the opportunity and threats.

2.2.1 Strengths
The best global brand in the world in terms of value. According to Interbrand, The
Coca Cola Company is the most valued ($77,839 billion) brand in the world.
Worlds largest market share in beverage. Coca Cola holds the largest beverage
market share in the world (about 40%).
Strong marketing and advertising. Coca Cola advertising expenses accounted for
more than $3 billion in 2012 and increased firms sales and brand recognition.
Most extensive beverage distribution channel. Coca Cola serves more than 200
countries and more than 1.7 billion servings a day.
Customer loyalty. The firm enjoys having one of the most loyal consumer groups.
Bargaining power over suppliers. The Coca Cola Company is the largest beverage
producer in the world and exerts significant power over its suppliers to receive the
lowest price available from them.
Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on CSR
programs, such as recycling/packaging, energy conservation/climate change, active
healthy living, water stewardship and many others, which boosts companys social
image and result in competitive advantage over competitors.



2.2.2 Weaknesses
Significant focus on carbonated drinks. The business is still focusing on selling
Coke, Fanta, Sprite and other carbonated drinks. This strategy works in short term as
consumption of carbonated drinks will grow in emerging economies but it will prove
weak as the world is fighting obesity and is moving towards consuming healthier food
and drinks.
Undiversified product portfolio. Unlike most companys competitors, Coca Cola is
still focusing only on selling beverage, which puts the firm at disadvantage. The


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overall consumption of soft drinks is stagnating and Coca Cola Company will find it
hard to penetrate to other markets (selling food or snacks) when it will have to sustain
current level of growth.
High debt level due to acquisitions. Nearly $8 billion of debt acquired from CCEs
acquisition significantly increased Coca Cola's debt level, interest rates and borrowing
costs.
Negative publicity. The firm is often criticized for high water consumption in water
scarce regions and using harmful ingredients to produce its drinks.
Brand failures or many brands with insignificant amount of revenues. Coca Cola
currently sells more than 500 brands but only few of the brands result in more than $1
billion sales. Plus, the firms success of introducing new drinks is weak. Many of its
introduction result in failures, for example, C2 drink.

2.2.3 Opportunities
Bottled water consumption growth. Consumption of bottled water is expected to
grow both in US and the rest of the world.
Increasing demand for healthy food and beverages. Due to many programs to fight
obesity, demand for healthy food and beverages has increased drastically. The Coca
Cola Company has an opportunity to further expand its product range with drinks that
have low amount of sugar and calories.
Growing beverages consumption in emerging markets. Consumption of soft drinks
is still significantly growing in emerging markets, especially BRIC countries, where
Coca Cola could increase and maintain its beverages market share.
Growth through acquisitions. Coca Cola will find it hard to keep current growth
levels and will find it hard to penetrate new markets with its existing product
portfolio. All this can be done more easily through acquiring other companies.

2.2.4 Threats
Changes in consumer tastes. Consumers around the world become more health
conscious and reduce their consumption of carbonated drinks, drinks that have large
amounts of sugar, calories and fat. This is the most serious threat as Coca Cola is
mainly serving carbonated drinks.
Water scarcity. Water is becoming scarcer around the world and increases both in
cost and criticism for Coca Cola over the large amounts of water used in production.
Strong dollar. More than 60% of The Coca Cola Company income is from outside
US. Due to strong dollar performance against other currencies firms overall income
may fall.
Legal requirements to disclose negative information on product labels. Some
Coca Colas carbonated drinks have adverse health consequences. For this reason,
many governments consider to pass legislation that requires disclosing such
information on product labels. Products containing such information may be
perceived negatively and lose its customers.


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Decreasing gross profit and net profit margins. Coca Colas gross profit and net
profit margin was decreasing over the past few years and may continue to decrease
due to higher water and other raw material costs.
Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over
market share in BRIC countries, especially India.
Saturated carbonated drinks market. The business significantly relies on the
carbonated drinks sales, which is a threat for the Coca Cola as the market of
carbonated drinks is not growing or even declining in the world.

2.3 Competition
The major competition faced by Coca Cola International is Pepsi Co. PepsiCo is a world
leader in convenient foods and beverages, with revenues of about $27 billion and over
143,000 employees. The company consists of the snack businesses of Frito-Lay North
America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America,
Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods
North America, manufacturer and marketer of ready-to-eat cereals and other food products.
PepsiCo brands are available in nearly 200 countries and territories.

Major Pepsi Co. products include:
Pepsi
Teem
Mirinda
Pepsi Max
Pepsi Lemon
Pepsi Blue
Mountain Dew
7up




2.4 Product/ Service Offering
Regulars:
Coke Classic
Vanilla Coke
Cherry Coke
Caffeine free Coke
Fanta
Sprite
Sprite Ice
Sprite Duo
Coca Cola Black


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Limca
Caffeine free Diet Coke
Diet Cherry Coke
Diet Coke with Lemon
Diet Vanilla Coke
Sports Drinks:
PowerAde
Nestea
Aquarius
Vitamin Energy
Juices/Water:
Minute Maid
Maaza
Kinley
Energy Drinks:
Full Throttle
Barqs
Tab
Burn

2.5 Key Success Factors
Coca Cola marketing team focuses not only on the results as well as the tasks assigned.
They firmly believe if you want to establish a clear image in the minds of
consumers, you first need a clear image in your own mind.
Since the major competitor is Pepsi Co. so Coca Cola Intl has focused on
neutralizing the competition.
Kill the category: If Pepsi Co. launched Crystal Pepsi then Coca Cola Intl
launched Diet Coke.
The Coca Cola marketing team maintained their focus strongly on the product
itself. When they changed bottle shape, many people started buying bottles
instead of the drink itself
The Coca Cola team learnt from everything. Even if a customer said no, they
focused on why did he say no and then found out ways on how to solve that
issue.
Formula for positioning success :
Define
Over deliver
Claim
Succeed
They specified the criteria for each product offered because if you dont specify
the criteria for choosing, consumers will develop their own, which is dangerous.



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2.6 Critical Issues
A common criticism of Coke based on its allegedly toxic acidity levels has been found to be
baseless by researchers; lawsuits based on these notions have been dismissed by several
American courts for this reason. Although numerous court cases have been filed against The
Coca-Cola Company since the 1920s, alleging that the acidity of the drink is dangerous, no
evidence corroborating this claim has been found. Under normal conditions, scientific
evidence indicates Coca-Cola's acidity causes no immediate harm.
Coca-Cola has been criticized for alleged adverse health effects, its aggressive marketing to
children exploitative labor practices, high levels of pesticides in its products, building plants
in Nazi Germany which employed slave labor, environmental destruction, monopolistic
business practices, and hiring paramilitary units to murder trade union leaders. In October
2009, in an effort to improve their image, Coca-Cola partnered with the American Academy
of Family Physicians, providing a $500,000 grant to help promote healthy-lifestyle education;
the partnership spawned sharp criticism of both Coca-Cola and the AAFP by physicians and
nutritionists.




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3.0 Marketing Strategy
Our local marketing strategy enables Coke to listen to all the voices around the world asking
for beverages that can span the entire spectrum of tastes and occasions. What people want in
a beverage is a reflection of who they are, where they live, how they work and play, and how
they relax and recharge. Whether you're a student in the United States enjoying a refreshing
Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a
couple in Korea buying bottled water after a run together, we're there for you. We are
determined not only to make great drinks, but also to contribute to communities around the
world through our commitments to education, health, wellness, and diversity. Coke strives to
be a good neighbor, consistently shaping our business decisions to improve the quality of life
in the communities in which we do business. It's a special thing to have billions of friends
around the world, and we never forget it.

3.1 Mission
Our mission statement is to maximize shareowner value over time

In order to achieve this mission, they must create value for all the constraints they serve,
including their consumers, their customers, their bottlers, and thir communities. The Coca
Cola Company creates value by executing comprehensive business strategy guided by six key
beliefs:

1. Consumer demand drives everything they do.
2. Brand Coca Cola is the core of their business
3. They will serve consumers a broad selection of the nonalcoholic ready-todrink
beverages they want to drink throughout the day.
4. They will be the best marketers in the world.
5. They will think and act locally.
6. They will lead as a model corporate citizen.
Everything we do is inspired by their 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.

3.2 Marketing Objectives
The objective is the starting point of the marketing plan. Objectives should seek to answer the
question Where do we want to go?. The purposes of objectives include:
to enable a company to control its marketing plan.
to help to motivate individuals and teams to reach a common goal.
to provide an agreed, consistent focus for all functions of an organization.
All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and
Timed.


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Specific Be precise about what you are going to achieve
Measurable Quantify you objectives
Achievable Are you attempting too much?
Realistic Do you have the resource to make the objective happen (men, money,
machines, materials, minutes)?
Timed State when you will achieve the objective (within a month? By February 2010?)
1.Market Share Objectives:
To gain 60% of the market for soft drink industry by September 2007.
2.Profitability Objectives:
To achieve a 20% return on capital employed by August 2007
3. Promotional Objectives
To increase awareness of the product on the market.
4. Objectives for Survival
To survive the current market war between competitors.
5. Objectives for Growth
To increase the size of the worldwide Coca Cola enterprise by 10% .

3.3 Financial Objectives
All Coca Cola Intl. plants setup their own goal to achieve the objective.
The company goal is:
To increase sales volume and gain market leadership in Lahore.
The company aims to achieve sales level of $45,000,000,00 by the end of year 2013. The
sales level for year 2012 was $39,944,000,00.


3.4 Target Market
Once the situation analysis is complete, and the marketing objectives determined, attention
turns to the target market. The soft drink market is very large, and the business cannot be all
things to all people, so it must choose which market segments have the greatest potential.
The target market is the group of customers on whom the business focuses attention. The
target market is where Coca Cola focuses its marketing efforts as it feels this is where it will
be most productive and successful. The target market for Coca cola is very wide as it satisfys
the needs for many different consumers, ranging from the healthy diet consciousness through
Diet Coke to the average human through its best selling drink regular Coke. Most Coke
products satisfy all age groups as it is proven that most people of different age groups
consume the Coca Cola product. This market is relatively large and is open to both genders,
thereby allowing greater product diversification.
There are four broad ways which Coca Cola can segment its market:
Mass marketing
Concentrated marketing
Differentiated marketing
Niche marketing


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The most apparent method used by Coca Cola is with no doubt the differentiated marketing
method as Coke satisfys a range of different markets. Diet coke satisfys the weight
consciousness, regular coke, sprite, fanta the average human, coffee, iced tea etc. Each group
of beverages satisfy a particular group of people but majority the average human.

3.5 Positioning
Coca Cola Position its products as refreshing and thirst quenching. The product are said to
bring joy, as apparent from Coca Cola's latest tagline - Little drops of Joy. The products are
associated with having a good time with friends and family and enjoying everyday life. The
products are also marketed as consistent and of high quality.

3.6 Strategies
The strategy for the future of the company is very straightforward. The marketing strategy for
the year 2010 is as follows:
Accelerate carbonated soft-drink growth, led by Coca-Cola.
Selectively broaden the family of beverage brands to drive profitable growth.
Grow system profitability and capability together with our bottling partners.
Serve customers with creativity and consistency to generate growth across all
channels.
Direct investments to highest potential areas across markets.
Drive efficiency and cost-effectiveness everywhere.

3.7 Marketing Program
Coca Cola's marketing Program or Mix is comprised of these following approaches to
pricing, distribution, advertising and promotion, and customer service.
Pricing. Coca Cola's pricing scheme is that the product cost is 45% of the total retail price.
Distribution. Coca Cola's food should be distributed through a take out model where
customers can call in their order plus come to the restaurant to pick it up, come into any
restaurant free coke campaign will enable the , place the take out order as well as wait for it
to be completed, or come in and dine at the restaurant.
Advertising and Promotion. The most successful advertising should be banner ads and inserts
in the Register Guard as well as a PR campaign of informational articles plus reviews in
addition inside the Register Guard.
Customer Service. Obsessive customer attention is the mantra. Coca Cola's philosophy is
that whatever needs to be done to make the customer happy have to occur, even at the
expense of short-term profits. In the long term, this investment should pay off by means of a
fiercely loyal customer base that is extremely vocal to their friends by means of referrals.







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3.8 Marketing Research
During the initial phases of the marketing plan development, several focus groups were held
to gain insight into a variety of patrons of drinks. These focus groups provided useful insight
into the decisions, as well as decision making processes, of consumers.
An additional source of souk research that is dynamic is a feedback mechanism based on a
suggestion card system. The suggestion card system has several statements that patrons are
asked to rate in terms of a given scale. There are in addition several open ended questions
that allow the customer to freely offer constructive criticism or praise. Coca Cola's should
work hard to implement reasonable suggestions in order to improve their service offerings as
well as show their commitment to the customer that their suggestions are valued.
The last source of souk research is competitive analysis/appreciation. Coca Cola's should
continually patronize local drinks for two reasons. The first is for competitive analysis,
providing Coca Cola's by means of timely information regarding other drink's service
offering. The second reason is that local trade owners particularly drink owners, are often
part of an informal fraternal organization where they support each other's trade.



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4.0 Financials
This section should offer a financial overview of Coca Cola's as it relates to the marketing
activities.

Table 1.2 Income and Operating Forecast ( In million Dollar )
Year
Description 2014 2015 2016 2017 2018
1.0 Income 15.0 20.5 25.5 31.7 41.4
2.0 Operating Expense
2.1 Salary and wages 08.0 11.0 13.0 16.0 19.0
2.2 Library and others
facilities
03.0 04.0 05.0 05.5 07.0
2.3 Utility, transport,
etc.
01.0 01.5 02.0 02.5 04.0
Sub- total 12.0 16.5 20.0 24.0 30.0
Operating Profit 03.0 04.0 05.5 7.7 11.4


Coca Cola plans to invest about $30 million in loan, building furnishing, and other
accessories. This will be funded equally through promoters contribute and loan from two
bank. Initial working capital of $ 1.0 million will be also be provided by the promoters. It will
be registered as a section 25 company.
The income and operating expense expenses forecast is provided in Table 1.2
The operating margin will help in paying the interest and instalment on the loan with a very
small surplus left after depreciation in the initial two year. The founders retain the flexible to
reduce the salary and wages burden, as almost 70% of the budgeted for them.





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5.0 Controls
Coca Cola Intl. has controlled sales via:
Geographic Market Organization
Opening plant in various countries (in Pakistan they have 10 plants) so as to reduce
taxes.
They have invested $5.6 million in their R&D facility to maintain Product Quality
Control.
Their primary concern right now is penetrating into the Pakistani market via strong
attacking techniques whereby maintaining defense strategy against Pepsi Co.
The overall strategic control is implemented in all plants and factories throughout
the 200 countries which Coca Cola proudly serves.

5.1 Implementation
Currently, Coca Cola Intl. issuing the following techniques to increase shareholders wealth,
maximize customer satisfaction and satisfy the market:
Value Positioning
Value Pricing
Promotional Pricing
Differentiation
o Image
o Product
o Channel Personnel
Market Strategy
o Niche Marketing
o Mass Marketing

5.2 Marketing Organization
Kevin Lewis, the owner, is primarily responsible for marketing activities. This is in addition
to his other responsibilities, plus does depend on some outside resources for graphic design
work, and creativity.

5.3 Contingency Planning
Difficulties and risks:
Problems generating visibility.
Overly aggressive as well as debilitating actions by competitors.
An entry into the Eugene souk of an already existing, company.
Worst case risks might include:
Determining that the trade cannot support itself on an ongoing basis.
Having to liquidate equipment or intellectual property to cover liabilities.
The concept and product image of Coca Cola should attract 3 dissimilar customer profiles;


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The student -- further and further young people have developed healthy eating and fizzy
drinking habits. Some in addition go through a "health food phase" while in college.
The health conscious person of any age or sex -- this includes anyone on a restricted or
prescribed diet or those who have committed to a healthy diet.
Curious and open-minded -- "if one tries it, one should like it." Through marketing, publicity,
plus word-of-mouth, people should seek out a novel experience and learn that nutritious food
can be tasty, fun, convenient, as well as inexpensive.