MARKETING

PLAN
SUBMITTED BY: BSBA MARKETING MANAGEMENT 3-D
JOLO, JESSA
HUQUIRE, ROSS-JELL
QUIACHON, JUSTINE

SUBMITTED TO:
MR. JESSIE R. TAMAYO

COCACOLA
BOTTLERS
PHILIPPINES,
INC.

EXECUTIVE SUMMARY

The following marketing plan forms the basis for the products of the Coca-Cola Company.
The analysis allows us to outline the best strategies to follow for the achievements of the
companys strategic goal.
The Coca-Cola Company (TCCC) is engaged in the manufacturing, Distribution and marketing
of non-alcoholic beverage concentrates and syrups.
The company owns the world's most valuable brand: It offers also a portfolio of more than 3,300
products in over 200 countries worldwide.
They primarily produce sparkling beverages, variety of still, and also manufacture finished
beverages.
TCCC owns or licenses nearly 500 brands, including diet and light beverages, waters, enhanced
waters, juice and juice drinks, teas, coffees, energy and sport drinks.
Furthermore, the company has ownership interests in a number of bottling and canning
operations, most of which are independently owned and managed.
Most of TCCC's products are manufactured and sold by bottling partners, who convert them into
finished packaged products for sale to distributors and other customers.
All these products were packaged in cans, glass and plastic bottles, and sold to wholesalers and
retailers.

CHAPTER 1
INTRODUCTION
1.1 THE HISTORY OF COCA-COLA BOTTLERS PHILIPPINES, INC.
Year 1912 marks the beginning of company's products distribution in the Philippines when
American businessman, M.A. Clarke decided to bring out business offshore.
The Coca-Cola made history in the Philippines when the first documented soda fountain was
established in Manila. Later he opened a bottling plant --- the first in the Philippines and the first
ever in ASIA. The famous contour bottle -- a packaging innovation introduced in 1916, started to
become familiar site and slowly become a part at the dinner's table of Filipinos.
As the Philippines leaped into the 1920's, the United States of America sank into the Great
Depression. But Coca-Cola, with the marketing genius of then Coca-Cola president Robert
Woodruff, Helped reinvent that period's marketing, advertising and packaging approaches. And
in 1927, San Miguel Corporation secured the first non-US national Coca-Cola bottling and
distribution franchise.
The company owned 70 percent of the joint venture, which grew to become Coke's sixth largest
operation by then. Coca-Cola Company in the Philippines has not been stagnantly resides long to
San Miguel Corporation's full ownership control. In April 1997, Coca-Cola Bottlers Philippines,
Inc. was merged into the Australian-based Coca-Cola Amatil Ltd After San Miguel exchanged its
70 percent interest in a Philippine-only operation for a 25 percent stake in Coca-Cola Amatil
Ltd., which had operations in 17 countries.
In 2001, San Miguel decided to buy back Coca-Cola business in a transaction involving Php 60
billion that Soriano III sold to Amatil. San Miguel ended up owning 65 percent of CCBPI.
However in 2006, San Miguel has sold its 65 % stake of its Coca-Cola Philippine venture
including its subsidiaries cosmos Bottling Corporation and Philippine Beverage Partners to the
Coca-Cola Company (TCCC) for $590 million. TCCC however ended up only a five-year
business control over CCBPI after Coca-Cola FEMSA acquired 51 percent majority ownership
share.
Today, Coca-Cola Bottlers Philippines, Inc is the premiere soft beverage company in the country,
one of the top ten bottlers of Coca-Cola in the world, and one of the top 20 corporations in the
Philippines in terms of revenue. With subsidiaries Cosmos Bottling Corporation and the
Philippine Beverage Partners, Inc., Coca-Cola Bottlers Philippines, Inc., refreshes some 85
million Filipinos throughout the country.
To date, Coca-Cola in the Philippines operates with enormous manufacturing plants and more
serving sales offices to offers customers the widest selection of beverages.

1.2 THE PRODUCTS OF COCA-COLA BOTTLERS PHILIPPINES, INC.

Coca-Cola is the most popular and biggest-selling soft drinks of TCCC.
The product was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated
water. Coca-Cola was introduced in 1886, patented in 1887, registered as a trademark in 1893,
and by 1895, it was being sold in every state and territory in the US.
TCCC's other popular soft drink brands offered around the globe includes Sprite, Royal, Beat,
Canada Dry, Canning's, Cheers, Cherry Coke, Citra, Diet Barq's, Diet Coke, Fanta, Limca, Vault,
Coca-Cola Zero, and Diet Cherry Coke. For its fountain products in the US, TCCC manufactures
fountain syrups and sells these to authorized fountain wholesalers and retailers.
Outside the US, fountain syrups are manufactured by authorized bottlers from concentrates
procured from the company. These fountain syrups are sold by bottlers to wholesalers or directly
to fountain retailers.
The principal raw materials used by TCCC are nutritive and non-nutritive sweeteners. For
example, in the US, the company uses high fructose corn syrup as a nutritive sweetener, whereas
other countries it uses sucrose. The company uses aspartame, acesulfame potassium, saccharin,
cyclamate and sucralose as non-nutritive sweeteners. For juice and juice-drink products, the
company uses citrus fruit, particularly orange juice concentrate, as a raw material.
TCCC operates its business through six business segments: North America, Eurasia and Africa,
Europe, Latin America, Pacific, and Bottling Investments.
TCCC also reports a non-operating segment: corporate. The company has divided its operations
into9 segments based on geographic operations. And the Pacific business segment encompasses
the company's operations in Korea, China, and the Philippines.
To get closer to the clients and consumers, the company operates as an integral supplier for them
offering a complete beverages portfolio that includes Eight O Clock, Funchum, EOC Immuno
Active, and Real Leaf Fruity, Minute Maid Pulpy, Pop, PowerAde, Samurai, Sarsi, Scheweppers,
Sparkle, Hi-C, Jaz Cola. Lift, Viva and Wilkins. Other than these products of course, the
company offers with the most outstanding brands to include Coca-Cola, Coca-Cola Zero, Sprite,
and Royal.
As of December 2009, TCCC owned and operated 29 principal beverage concentrate and or
syrup manufacturing plants located throughout the world.
In addition, TCCC owns or holds a majority interest in 112 principal beverage bottling and
canning plants located in different regions of the world. These plants are included in the Bottling
Investment operating segment.
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THE COCA-COLA PRODUCTS

1.3 STATUS OF THE INDUSTRY

The growing trends surrounding societal concern, attitudes, and lifestyle are important to
consumers. Filipinos nowadays for instance are becoming more focused on healthy lifestyle. The
awareness of health and wellness issues such as obesity, diabetes, and inactive lifestyle represent
a serious risk to the carbonated drinks sector. The trend is causing the industry's business
environment to change as firms differentiate their products in order to increase sales in a stagnant
market.
San Miguel Corporation in particular is now producing healthy ready-to-drink fruit juices. The
universal Robina on the other hand also manufactures healthier substitute for carbonates via C2
(tea) products.
These are some among factors that carbonated soft drinks consumption is continuously declining
as interfence of the buyer's quest for alternatives are observed.
If a firm was the first to introduce a product, then the advertising campaign should reinforce this
fact. Coca-Cola's "the real thing" does just that, and implies that other colas are just imitations.
According to Ries and Trout's arguments, "the success of a brand is not due to the high level of
marketing acumen of the company itself, but rather, it is due to the fact that the company was
first in the product category". This is another core strategy of Coca-Cola being the first-mover to
maintain its position as market leader of the industry. As positioning really begin with a product,
but the true concept relies on the inculcation of that product in the minds of the consumer. CocaCola being regarded as one of the world's notable brands, the power of a name it carries really
counts.
The report on soft drink industry suggests that sales have not been as brisk as in the past as
consumers shift to healthier (less sugar-laden) alternatives. Rising food and fuel prices have also
weakened consumer demand as people's physiological needs are of most important of course. In
spite of these, the outlook of the Coca-Cola Company remains optimistic. The company will
continue to be a popular segment of the beverage industry since the soft drinks intake has been
always a part of the diet of many Filipinos.
To enhance consumer demand, the company is actively pursuing promotional activities such as
tie-ups with value meals of popular fast-food chains, restaurants, pizza stores, sponsorship of
events, setting up of booths in school/club fairs, provision of free soft drinks in some events,
installation of vending machines, and among others.
The massive multi-media advertising campaigns, price cuts of other SKU's, product introduction,
as well as continuos research and development of the company, all these aggressive efforts in
revising interest in the product are slowly paying off. Accordingly, while sales of the regular soft
drink products have been broadly flat, the demand for the new variants (e.g. sugar free (Cole
Zero), water (Wilkins), Fruit-flavored (Nestea Honey Lemon) have been posting good growth.
And it is likely that these new variants will continue to drive opportunity in the coming years.
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CHAPTER II
MARKETING ENVIRONMENT
2.1 THE MARKET
When it comes to the consumer market, Coca-Cola has a very broad market base. The company
focuses its efforts on many different people. Cokes core business, which has been carbonated
beverage, has been targeting a large audience of soft drink consumers. Throughout history, the
company has targeted many generations of people. The ages of these people has ranged from
young to old. Coke has always been known as a classic, which has appealed to the older
audience.
For the Coca-Cola Company, there is a need for them to focus on certain demographical
characteristics of the population. The characteristics they consider include: age, income, and
family. The other demographic considerations such as, education and ethnically are not as large
of a concern. When we look at age, the company tries to keep their image hip and cool to appeal
to younger generation people. But also target the older generations by keeping the classic CocaCola image. Since age has a large impact on income, it would be expected that this would be an
issue for the company. This is not necessarily true. The products they offer are affordable for
most people, even young teens without a job relying on parents. This brings us to the idea of
targeting different family types. Since age is not necessarily prohibiting family differences
should not hurt.
The sales of their products, but only help it because of the appeal to most people. It does not
matter if you are single, married with no children, or even married with children. Their products
are suited for all people.
In Coca-Cola news they tell us that they are working on efforts to, develop new drinks and to
make juices, coffees, and teas (Coke, 2001) by implementing these changes, they are
targeting parents of children for their juices, older people with coffees, and people who want a
healthier alternative to carbonated beverages, with their teas. While Cokes core business will
remain carbonated beveragesaccording to Mr. Heyer, we dont want to be limited.
Also included in deciding a market for a product are geographical considerations, psychographic
details, situation and behavior/usage. Coke targets people throughout the world and of many
different cultures. Because of this, their scope for geographical area is very broad. Although they
advertise Coke as refreshing beverage, which would be needed more in warmer climates. It
would be unwise of me to assume that advertising is different in other, warmer, climates, but it
would only make sense. They would need to target someone wanting to quench their thirst rather
than just enjoy a beverage.

2.2 THE COMPETITOR'S ANALYSIS

For more than a century, Coke and Pepsi vied for "throat share" of the world's beverage market.
In the domestic beverage market, The Coca-Cola Bottlers Philippines, Inc.'s main competitor is
the PepsiCo. The former painted to occupy the largest market share followed by the later. But the
Cola war is not only for these two players.
PROJECTED COMPETITORS:
1.) Pepsi Cola Products Philippines, Inc. (PCPPI) is 32.9% owned by PepsiCo.
PCCPPI's brands in the market include Pepsi, Diet Pepsi, Pepsi Light, Pepsi Max, 7up, Diet 7up,
Mountain dew, Jazz, Mirinda, and Mug.
2.) Interbev Corporation is a subsidiary of beer company Asia Brewery Inc., which managed to
secure a licensing agreement for virgin Cola, a popular brand in 2004. Virgin Cola comes in four
variants: regular, diet, lemon, and lime. It competes with lower-priced brands in the market like
Pop Cola, RC Cola and Jazz.
3.) Juice Company Zesto Corporation has also entered the soft drinks market via Zesto Cola in
1994. Its product "challenged the market leader in terms of taste, refreshing qualities, and price".
Zesto has since diversified its carbonated drinks line to include Zesto Cola, Zero Cal, Root beer
Light, Twist, Squiz Grape, Dalandan Fruit Soda, Calamansi Fruit Soda, and Pomelo Fruit Soda.
4.) Another player is Asia wide Refreshments Corporation, which is the Philippine's licensed
bottling manufacturer and distributor of US brand RC Cola. The product is among the relatively
low-priced brands in the local market.
To name a few, the substitute for soft drinks primarily includes coffee, traditional tea, and
homemade juices.
Aside from above expected competitors, another leading player who is another threat to CocaCola Company is Nestle, the holding company of the Nestle Group engaged in the business of
manufacturing and marketing branded food and beverages.
Leading player like Nestle have also diverse product ranges to be offered which even intensify
competition more in the market.

2.3 PRICING ANALYSIS

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:
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.
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
Sometimes, Pepsi places its customers into some psychological pricing strategies by reducing a
high priced bottle and consumers think that they save a lot of money from this.
Coca Cola has intense competition with neither 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.

2.4 THE CHANNELS OF DISTRIBUTION

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 550 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

2.5 PROMOTION
The Coca-Cola Company has a lot of promotions some of these are:

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CHAPTER III
ANALYSIS OF ISSUE
3.1 THE SWOT ANALYSIS
STRENGTHS
The success of the soft drinks industry in the country hinges on several strengths (S). For one,
Coca-Cola brands are well-established and have been in the market for several decades now.
The local base licensees also enjoyed strong support from the mother company offshore. Other
than the brands have already developed a loyal customer base, the company established also
extensive facilities and distribution networks all over the country.
Further, the company spent heavily on marketing and multi-media advertising support. Targeted
advertising has been a major strength of the brand that it has the greater control over who sees
ads and when they are seen. While Coca-Cola offers wide array of choices for the consumers,
they also continuously pursue product innovations to cater to changing demands and lifestyle of
the market.
From the use of innovative packaging techniques to social networking, to the use of advance
technology, Coca-Cola has also big distribution network to operate and serve the market from
any major points of the country.
WEAKNESSES
In terms of weaknesses (W), sales have been declining in recent years due to reason potentially
linked to employees who are not executing well their function effectively.
They are just complacent that the products no longer require efficient personal representation as
marketing and advertising propagation are already seen in the multi-media outlets. Also, CocaCola products are relatively high compared to other brands that the present target markets (class
B, C, D) preferred most to one with much lower price.

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OPPORTUNITIES
An opportunity (O) for growth is seen in the introduction of new variants of soft beverages.
Offered for those health-conscious driven individuals. The increasing incidence of eating-out
among Filipino families also present opportunity as it may translate to more orders of carbonated
drinks.
Indeed, the Filipino culture and long traditional practices and gatherings like fiestas, picnics,
reunions, gimmicks, etc have all standing capability to increase strike rate of the product in the
market. Moreover, the growing economy of the country also poses possible chance to increase
the purchasing capability of the consumers.
THREATS
Brought about by much intensified competition in the market, not only within the industry itself
but also coming from other non-carbonated beverage such as bottled water, ready-to-drink teas,
fruit juices, sports and among others.
The shift in consumer preferences towards soft beverages tied to health and wellness also offers
threat to the company.
Scarcity of quality water which is one vital component in producing soft drinks.
As graph exemplified expenditures in global perspective, Coca-Cola advertisement in the
Philippines is undoubtedly striking fast as one among the leaders in terms in terms of
advertisement publicities.
In the Philippines, soft drink industry is relatively disjointed as most of the market share is being
dominated by the top players.
The market has the presence of leading players like Coca-Cola Bottlers, Philippines, Inc.,
PepsiCo, and Nestle.

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CHAPTER IV
OBJECTIVES OF THE MARKETING PLAN

4.1 THE OBJECTIVES OF THE COCA-COLA COMPANY

The Coca Cola Company is successful in selling many of its products, however, there still be aspects that
can be further improved.
The first of these areas is that there are many products that are not as well known as the major brands of
beverages, the well know Coca Cola, Sprite, Nestea, and PowerAde.
One of our objectives is to promote the lesser-known products under Coca-Cola Enterprises to be more
successful.
In the next two years (by 2008), it is plan that an 100% sales increase will occur in such products as, Full
Throttle, Hi-C, and Disneys Hundred Acre Woods. In order to achieve these goals we plan to focus more
attention to the advertising of such products.
The result of this will be an increase in sales for Coca-Cola Enterprises, an increase in Coca Colas
market share, as well as a decrease in sales for other competitors.
A second objective is to reposition Coca-Cola to be a healthier product. This is because consumers today
are looking to lead healthier lives, choosing substitution goods.
Coca Cola has many different drinks, such as Minute Maid, and many different types of fruit juice
beverages. These products contain many vital nutrients, such as Vitamin C. They have also received a
health check from the Heart and Stroke Foundation, which the Coca Cola Company supports financially.
It is planned for such information to be released to the public and by 2008; Coca Cola Enterprises would
be repositioned as a healthier company in the consumers minds.
It is planned that by 2008, a research conducted regarding favourite beverages will reveal that Coca Cola
Enterprises products rank number one among the vast majority of consumers.

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CHAPTER V

MARKETING STRATEGIES

The importance of strategy formulation is coping with competition and submission to the recent
in the market trends.
Customers variation is also critical for the company to be identified in order for them to
determine who their target markets are.
And the company should establish a strategy attuned to that compliance.

5.1 POSITIONING STRATEGY

Brand loyalty refers to a consumers attachment or devotion to a brand (Aaker, 1991). The power
of the company sometimes comes from the power of its brands.
Coca-Colas revolutionary approach to creating a position in a Prospective customers mind
one that reflects a companys own strengths and competitive advantage should at most
emphasized.
Coca-Cola should reinforce the banner of Cola flavour as most superior among other competing
category in terms of taste and preferences.
The expanding carbonated soft drinks market has also been accompanied by an influx of newer
brands that try to cater to different consumer tastes (Sen., 1997).
To address the demand of health conscious markets. Coca-Cola needs to reposition those
products (coke zero, diet coke, teas) to maximize potential gain of this losing slice of market
share.

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5.2 PRICING STRATEGY

Price basically play relative role in consumer demand for soft drinks. Customers are price
sensitive.
Basically the perception of the buyers that when a product is expensive, the quality of a product
is good, and this holds true that even the use of price-quality approach has still banging impact
on the consumers.
This is important to impart a message that Coca-Cola is a company categorically producing
superior brands that deliberately attempt to offer more in terms of quality, service and or
performance.
On the note, because the company is perfectly viable to maintain economies of scale, other nonperforming brands can be offered in a price at par with the existing players to shy them away and
gain dominant control over the market. Setting the price low attracts customers and gain market
share.

5.3 INTRODUCTION OF SUBSTITUTE PRODUCTS

Posed by perceived ominous health threat and other factors, the demand for CSD has been
negatively affected.
Consumption of carbonated soft drinks in the Philippines has been in steady decline over the past
years.
The profusion of these substitute beverages in the market are gaining consumer favor over
CSDs.
Coca-Cola in this respect should vigorously position their substitute brands by making product
known to the public.
Posed by perceived health benefits, these must be displayed at the leading business outlets, sarisari store, convenience store, and retail trade partners to have consumer the preference over
plethora of refreshment beverages in the market.

15

5.4 INCENTIVISING BUSINESS PARTNERS

Market Execution Partners (sari-sari store, convenience store, supermarket, distributions, and
retailers) are regarded as the most important business partners by the company.
For the company to gain loyalty, a TDI (trade deals incentives) should be extended to them.
By offering promotional and discounting strategy, expected ROI (return of investment) can be
generated as both is harmonized in achieving goals (e.g. sales volume target and profits).

5.5 INTENSIFY MARKET SCANNING

The need to identify who and where your potential market is must present a potent consideration
for Coca-Cola to focus on.
Target market, positioning, and segmentation should come into play so that a product is being
offered at the right person and at the right place.
The effective use of Research and Development (R&D) aspect can bring so much to translate the
intention of better identifying the needs and wants of the consumers in a given place.

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TABLE OF CONTENTS

Executive Summary .

CHAPTER I INTRODUCTION
1.1 The history of Coca-Cola Bottlers Philippines, Inc

1.2 The products of Coca-Cola Bottlers Philippines, Inc.

2-3

1.3 Status of the Industry

CHAPTER II MARKETING ENVIRONMENT

2.1 The market of Coca-Cola Bottlers Philippines, Inc

2.2 The Competitions Analysis.

2.3 Pricing Analysis..

2.4 The Channels of Distribution.

2.5 The Promotion

9-10

CHAPTER III ANALYSIS OF ISSUE

3.1 The SWOT Analysis..

11-12

CHAPTER IV OBJECTIVES OF THE MARKETING PLAN

4.1 The Objectives of the Coca-Cola Company.

13

CHAPTER V MARKETING STRATEGY

5.1 Positioning Strategy.

14

5.2 Pricing Strategy

5.3 Introduction of Substitute Product.

15
15

5.4 Incentivising Business Partners...

5.5 Intensify Market Scanning..

16
16

CHAPTER VI PROJECTED INCOME STATEMENT..

17

CHAPTER VII EVALUATION OF MARKETING PLAN

ii

18