Professional Documents
Culture Documents
Administration S.M.U.D.E
Submitted To:-
Submitted By:-
DHIRAJ KUMAR
BBA 6th sem.
521117796
DECLERATION
I DHIRAJ KUMAR hereby declare that this project report entitled Marketing Strategies
Analysis has been completed based on actual study carried out by me during my internship program
at Hindustan Coca-Cola Beveragws Private Limited, Patna.
This research report is original and information, data and fact furnished their in are actual
based on study carried out by me.
DHIRAJ KUMAR
ACKNOWLEDGEMENT
After completing my 5th semester curriculum. I went for training for 8 weeks duration and it
bears inspirit of several person.
I have achieve this training in one of the most esteemed organisation of the country
Hindustan Coca-Cola Beveragws Private Limited, Patna for their kind permission to undertaken
its study I am grateful to respected Mr. Vijay Kumar Singh (HR Executive,in Coca-Cola Beveragws
Private Limited). For their moral support and encouragement throughout my project work.
This list will go incomplete without the special reference of the contribution and whole
hearted support of managers and all other staff and department, which truly reflect their deep insight
into the project and the professional touch which is their benchmark.
I would like to thanks Dr. Manoj Mishara who helped me a lot during this project.
My gratitude will not be completed without thanking my beloved parents who have been a
constant source of aspiration & blessing in my pursuit for studies.
PREFACE
3
completed my raining for 8 weeks. I got training in the study of Marketing Strategies Analysis,
Financial department is also being considered.
Hence I am presenting the training report Marketing Strategies Analysis. All the mistakes and
problems had been carefully removed with the help of all the managers.
So I am thankful to all the managers of Hindustan Coca-Cola Beverages Private Limited, Patna.
DHIRAJ KUMAR
BBA (6th Semester)
TABLE OF CONTENTS
4
CONTENTS
1. Mission statement
2. Introduction.
3. Coca Cola.
a. Coca Cola International.
b. History.
4. Management.
5. EXTERNAL MARKETING ENVIRONMENT
6. Market share.
7. Financial report.
8. Dividends and Cash Plan.
9. Products.
10. Market mix of Coca-Cola
11. Strategic planning.
12. Bottlers owned by Coca cola
13. Coca Cola Pakistan.
14. Major Competitors
a. Pepsi
b. History.
c. Financial assets.
Market share.
Financial report.
Products.
Methodology
15. Some basic information regarding marketing of coke
a. Target market:
b. Major segments:
c. Factors effecting sales:
d. Major competitors:
e. Strategies of quality:
f. Threats from competitors:
g. Targets that would like to attain:
h. Expanding target market
i. Threats and opportunities for price:
j. Strategies of getting goals i.e. high profits:
k. Marketing strategy:
l. Expectations for the coming year:
m. How coke determine the yearly budget:
16. Marketing strategies
17. Pest analysis
HISTORY:
Coca-Cola Enterprises, established in 1886, is a young company by
the standards of the Coca-Cola system. Yet each of its franchises has
a strong heritage in the traditions of Coca-Cola that is the foundation
for this Company.
The Coca-Cola Company traces its beginning to 1886, when an
Atlanta pharmacist, Dr. John Pemberton , began to produce Coca-Cola
syrup for sale in fountain drinks. However the bottling business began
in 1899 when two Chattanooga businessmen, Benjamin F. Thomas
and Joseph B. Whitehead , secured the exclusive rights to bottle and
sell Coca-Cola for most of the United States from The Coca-Cola
Company.
The Coca-Cola bottling system continued to operate as independent,
local businesses until the early 1980s when bottling franchises began
to consolidate. In 1986, The Coca-Cola Company merged some of its
company-owned operations with two large ownership groups that were
for sale, the John T. Lupton franchises and BCI Holding Corporation's
bottling holdings, to form Coca-Cola Enterprises Inc. The Company
offered its stock to the public on November 21, 1986, at a splitadjusted price of $5.50 a share. On an annual basis, total unit case
sales were 880,000 in 1986.
In December 1991, a merger between Coca-Cola Enterprises and the
Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger,
stronger Company, again helping accelerate bottler consolidation. As
7
MANAGEMENT:
The hierarchy of Coca Cola Company is as follows.
Chairman
Board of governors
Vice Presidents
10
MARKET SHARE:
SHARE
Being the biggest company in the soft drink industry, Coca
Cola enjoys the largest market share. This company
controls about 59% of the world market.
Nonalcoholic
drink
2002
All commercial
Beverages
10 year
compound annual
growth
5-year compound
annual growth
2002
Compan
y
Industry
Compan
y
Industry
Compan
y
Industry
Company
share
Compan
y share
Compan
y per
capita
Income
6%
5%
5%
5%
4%
4%
18%
9%
70
This shows that the market of the company is geographically vast and it is
controlling it with great success. In 2002, the company grew their carbonated
soft-drink business by nearly 250 million unit cases and generated record
volumes. Because carbonated soft drinks are the largest growth segment
within the nonalcoholic ready-to-drink beverage category measured by
volume, that is why they are focusing more on this and they are continually
increasing the pace because they know that accelerating this pace is crucial to
their future success. Thus they are increasing their market day by day. The
operation income earned by Coca Cola Company can be illustrated by the
following pie chart.
11
(Figure)
This strategy has worked a lot and it has helped them to become the Worlds
leading Soft Drink Company. The global unit sale of the Coca Cola Company
is increasing from the last ten years. The data of the global unit sale of the
Coca Cola Company can be represented by following chart.
(Figure)
So there is positive growth in the market of the Coca Cola Company. There is
a worldwide volume increase by 4% with strong international growth of 5%.
This is only due to the innovative marketing programmers, which has
deepened the relationship of the customers and Coca Cola. The financial
health and success of their bottling partners is a critical component of The
Coca-Cola Company's ability to build and deliver leading brands.
12
In 2002, the company had worked with their bottlers to turn good intentions
into reality by improving the system economics. The results in 2002 reflect this
steadily improving and mutually constructive relationship between the
Company and their bottling partners. The main reason behind this relationship
is to continue realizing shared opportunities for growth, with closer
coordination of operations including customer relationships, logistics and
production.
13
14
Economical Analysis
Being flexible and willing to change to satisfy consumers needs, has enabled
Coca-Cola to exploit the economies of scale that was gained by its global
marketing and at the same time making its products appeal to local taste,
which these have earned the company an enormous profits quarterly.
As Coca-Cola has expanded over the decades or even nearly a century, the
company has benefited from the various cultural insights and perspectives of
the societies in which business is done. No doubt of the remarkable
experience it has, it is still very committed to local markets, to paying attention
to what people from different cultures and backgrounds like to drink, and
where and how they like to drink it, to remain competitive and to develop more
new drinks to satisfy its markets.
17
18
LATIN
AMERICA
EUROPE &
MIDDLE EAST
ASIA
AFRICA
30%
25%
22%
17%
6%
NORTH AMERICA
LATIN AMERICA
EUROPE & MIDDLE
EAST
ASIA
AFRICA
So the volume is least in the Africa and most in the North America. The data
about the market share of this company area wise is given in the following
table.
The above table shows the geographical earning of the Coca Cola Company
and from this data; we can find out that the customers of Coca Cola are
increasing which is shown by the companys per capita income. Unit case
equals 24 eight-ounce servings. The column, which shows the non-alcoholic
beverages consist of commercially, sold beverages, as estimated by the
19
10 year
compound
annual growth
Comp Indust
any
ry
North
Americ
a
United
States
Latin
Americ
a
Argenti
na
Brazil
Chile
Mexico
Europe
& Middl
e East
Eurasia
5-year
compound
annual growth
Comp Indust
any
ry
2002 annual
growth
Nonalcoho
lic
Drinks
2002
All commercial
Beverages
2002
22
15
Compa
ny per
capita
Income
398
23
16
419
24
15
205
20
10
236
5
9
7
6
5
6
10
3
3
5
8
5
6
3
9
3
3
(2)
2
2
5
3
5
4
23
56
22
12
13
23
18
6
144
336
462
72
17
(14)
14
39
20
Comp
any
Indust
ry
Comp
any
share
Comp
any
share
France
Germa
ny
Great
Britain
Italy
Middle
East
Spain
Asia
Africa
8
1
3
2
9
(1)
3
1
7
(6)
3
1
9
14
5
7
110
193
11
17
193
1
12
3
12
4
7
3
5
2
4
2
8
9
8
6
3
104
17
6
7
7
4
6
6
8
6
8
5
7
3
4
10
10
4
7
6
17
14
34
12
5
11
264
23
34
FINANCIAL REPORT:
This company is financially very strong. It is due to the strong finances, the
company is still surviving the ups and down of the business world. The
financial report of Coca Cola Company of the year 2001 and 2000 along with
the percentage change is as follows.
(Table)
Year Ended December 31,
(In millions except per share data, ratios and growth rates)
22
2002
2001
Percentag
e change
20,092
5,352
3,969
1.601
1.601
19,889
3,691
2,177
0.882
0.882
1%
45%
82%
82%
82%
4,110
(963)
(1,791)
(277)
3,147
26.6%
38.5%
3,585
(779)
(1,685)
(133)
2,806
16.2%
23.1%
15%
24%
6%
108%
12%
-
12.5
5.3
17.8
11.9
5.2
17.1
5%
2%
4%
2002 basic and diluted net income per share includes a non-cash gain of $.02
per share after taxes, which was recognized on the issuance of stock by
Coca-Cola Enterprises Inc., one of the equity investors of this company.
2002 basic and diluted net income per share includes the following charges:
$.24 per share after income taxes related to an organizational
Realignment.
$.19 per share after income taxes related to the Company's portion of
charges recorded by the investors of the company.
$.16 per share after income taxes related to the impairment of certain
bottling, manufacturing and intangible assets.
$.05 per share after income taxes related to the settlement terms of a
discrimination lawsuit.
$.01 per share after income taxes related to incremental marketing
expenses in Central Europe.
These charges are partially offset by a gain of $.05 per share after income
taxes related to the merger of Coca-Cola Beverages plc and Hellenic Bottling
Company S.A. and $.04 per share after income taxes related to benefits from
a tax rate reduction in Germany and from favorable tax planning strategies.
23
COMPANY STATISTICS:
The statistics of this company is impressive. Since it is operating through out
the world that is why the number of employees and the bottling equipments is
highest among the other bottling companies. There is a constant increase in
every aspect when we compare the statistics of 2001 and the statistics of
2002. This is because; Coca Cola Company is increasing its volume day by
day. The expansion of this company, which shows the success of Coca Cola
brands, results in the percentage change in the statistics of the two years. The
statistics is as follows.
(Table)
Equivalent cases
Bottle and cans
Fountain
Employees
Vehicles
Cold drink equipments
Facilities
Production only
Distribution
Combination
Total
Percent of North America population coverage
Number of States of Operation
Bottle and can equivalent case package distribution
Cans
Non-refillable bottles
Refillable bottles
Capital structure
Net debt to total capital ratio
EBITDA interest coverage
Weighted average cost of debt
Key Statistics
Constant territory bottle and can volume
growth
Bottle and can net revenues per case change
24
2002
2001
4.2 billion
87%
13%
72,000
54,000
2.4 million
3.8 billion
87%
13%
67,000
52,000
2.3 million
25
385
53
463
80%
46
25
361
50
436
72%
46
44%
52%
4%
45%
51%
4%
63%
3
6.3%
59%
3
6.8%
3%
Flat
2%
$1.95
(18)%
$0.97
6%
83%
$2.39
9%
$1.18
8%
74%
25
PRODUCTS:
There are different brands of the Coca Cola Company, which are currently in
use throughout the world. This company not only deals in the carbonated
drinks but also other drinks. While launching its product, the marketing team
considers the culture of the country.
Major brands of coca cola
Coke
Sprite
Fanta
Diet coke
Coke classic
26
At the same time, the company grew Georgia coffee in Japan by 3 percent
through award-winning marketing in a category that was flat for the year. Also
in Japanwhere The Coca-Cola Company is the leader in the total tea
category, the second-largest category in the non-alcoholic ready-to-drink
segmentit launched Marocha Green Tea. With sales of 46 million unit cases
for the year, Marocha Green Tea is the fastest-growing product in the fastestgrowing category: green tea. The popularity of Marocha is also recognized by
the industry with a leading trade journal naming Marocha the most popular
new food and beverage product of the year.
Know the most recognized word on the planet after OK!
28
Among the soft drinks Fanta and Sprite become successful along with the
major brand Coca Cola and Diet Coke. In key markets, the company has
created new packaging sizes to satisfy consumer demands.
Increasingly, Mexican families have lunch together at home. The average
Mexican household drinks two-and-a-half liters or more of soft drinks during
that break, while a two-liter bottle was the largest available package. So the
company introduced a convenient 2- liter bottle to select regions,
contributing to the sale of nearly 1.5 billion unit cases of Coca-Cola in Mexico
this year. This larger bottle will complete its nationwide rollout in 2002. In
China, Coca-Cola is an integral part of holiday celebrations and the family gettogethers that accompany such events. Through an intense focus on CocaCola, innovation and new beverages, it has achieved volume growth of 10
percent in 2001. In China, sales of Coca-Cola increased by 6 percent. In the
United States, recognizing that consumers often enjoy their diet Coke with a
slice of lemon, the company "bottled" the concept. The resultdiet Coke with
lemoncontributed to volume growth of 4 percent for the number-one diet.
Soft drink in North America: diet Coke. The company increased its two largest
bottle sizes during the 2001 holidays, and festival packaging helped drive a 6
percent volume increase for Coca-Cola. The packaging innovations do not just
involve resizing. The company has also responded to consumers' changing
fashion styles with new bottles.
With brands such as Minute Maid, Hi-C, Simply Orange and Disney juices and
juice drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo
in
Africa.
This year, the company re-launched its global sports-drink business, investing
in new products, packaging, positioning and marketing. The results speak for
themselves: its global sports drinks, led by Powerade and Aquarius, grew by
13 percent in 2002, nearly double the growth rate of the worldwide sportsdrink category. Revitalized in the United States, the company introduced
Powerade in nearly every major Western European market, including Great
Britain, Germany and Spain, as well as in Mexico and Latin America. The
company launched 27 products in 2001.
The commitment of the company to packaging innovation also resulted in new
initiatives for our fountain business, a channel through which many consumers
enjoy Coca-Cola. In the United States, the company developed Fountain, a
29
total beverage dispensing system that is more flexible and more reliable. Two
years of research resulted in a dispensing system that provides exceptional
beverage quality, easy to upgrade technology, brand and graphic
customization and improved reliability.
30
32
33
2. Price:
Like any company who has successfully endured a century of existence,
Coca- Cola has had to remain tremendously fluent with their pricing
strategy. They have had the privilege of a worthy competitor constantly
driving them to be smarter, faster, and better. A quote from Pepsi Co's
34
CEO "The more successful they are, the sharper we have to be. If the
Coca-Cola Company didn't exist, we'd pray for someone to invent them."
states it simply. The relationship between Coca-Cola & Pepsi is a
healthy one that each corporation has learned to appreciate.
Throughout the years Coca-Cola has made many pricing decisions but
one might say that their ultimate goal has always been to maximize
shareholder value. As cola consumption has decreased in the US colas
have come to realize the untapped international market. In 2003 both
Coke and Pepsi had a solid presence in India and had each introduced
a 300mL bottle. In order to grab market share Pepsi began to drop
prices (even with summer approaching, which was contrary to policy in
America). Shortly thereafter, Coca-Cola decided to drop their prices
slightly, but focused on the reduced price point of their 200mL container.
Coca- Cola planned to use the lower price point to penetrate new cities
that were especially price sensitive. The carbonated soft drink market in
India is nearly 37% of the total beverage market there.
This low price strategy was not unfamiliar to Coca-Cola. Both Coke &
Pepsi utilized a low price strategy in the early 1990s. After annihilating
the low price store brands, Coke chose to reposition itself as a
"Premium" brand and then raise prices.
Coca-Cola products would appear, on the shelf, to have the most
expensive range of soft drinks common to supermarkets, at almost
double the cost of no name brands. This can be for several reasons
apart from just to cover the extra costs of promotions, for which no name
brands do without. It creates consumer perceptions and values. When
people buy Coca-Cola they are not just buying the beverage but also the
image that goes with it, therefore to have the price higher reiterates the
fact that the product is of a better quality than the rest and that the
consumer is not cheap. This is known as value-based pricing and is
used by many other industries in attracting consumers.
In India, the average income of a rural worker is Rs.500 a month. Coca
Cola launched a 200 ml bottle for just Rs.5, an affordable amount on the
pockets of the rural audience.
35
3. Place:
Coca-Cola entered foreign markets in various ways. The most common
modes of entry are direct exporting, licensing and franchising.
Besides beverages and their special syrups, Coca-Cola also directly
exports its merchandise to overseas distributors and companies. Other
than exporting, the company markets internationally by licensing bottlers
around the world and supplying them with the syrup needed to produce
the product.
There are different types of franchising. The type that is used by CocaCola Company is manufacturer-sponsored wholesaler franchise system.
It is very comparable to licensing but the only difference is that the
finished products are sold to the retailers in local market.
Coca Cola has managed their companys marketing and sales strategy
within channels. Have you ever considered the significance of the Coke
vending machine to the success and profitability of the Coca Cola
company? This channel is direct to consumer and vending machines
often have little to no competition and no trade or price promotions.
The Coke Company operates three primary delivery systems for its
business channels:
Bulk delivery for the channels of large Supermarkets, Mass
Merchandisers and Club stores;
For smaller channels Coke does advanced sale delivery for
convenience stores, drug stores, small supermarkets and onpremise fountain accounts.
Full service delivery for its full service vending customers.
Key Channel Listing
36
Supermarkets
Convenience Stores
Fast Food
Petroleum Retailers
Chain Drug Stores
Hotels/Motels/Resorts
Mass Merchandisers
U.S. DOD Military Resale retail commands: AAFES, NAVRESSO
and DECA
Vending
In 2006, the Company began changing its delivery method for its route
delivery system. Historically, the Company loaded its trucks at a
warehouse with products the route delivery employee would deliver. The
delivery employee was responsible for pulling the required products off a
side load truck at each customer location to fill the customer's order.
Coke began using a new CooLift delivery system in 2006 in a portion
of the Company's territory which involves pre-building orders in the
warehouse on a small pallet the delivery employee can roll off a truck
directly into the customer's location. The CooLift delivery system
involves the use of a rear loading truck rather than a conventional side
loading truck. Coke will continue to rollout this program over the next
several years since they expect such significant savings and more
efficient deliverys. This is a huge investment for Coke.
The company works through independent bottlers of Coke. They work in
coordination with the Coke company which produces the 'secret formula
concentrate' and ships to the distributors and bottlers for final processing
and packaging prior to shipment to the stores.
Coca-Cola floods all possible retailing stores in satisfying the third part,
place. In supermarkets and convenient stores, Coca-Cola products are
always easy to identify, and usually make up the greater proportion of
options to buy. This increases their market exposure through effective
use of the retailers. For a FMCG it is important that they can be found
and purchased easily. With many automatic Can machines located in
37
many sports stadiums and shopping malls, you don't even need to go to
a store to buy a drink. This greatly enhances the speed of purchase.
The company produces concentrate, which is then sold to various
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 in cans and bottles to retail stores and vending
machines. Such bottlers include Coca-Cola Enterprises, which is the
largest single Coca-Cola bottler in North America and Western Europe
and food service distributors.
STRATEGIC PLANNING
In the year 2002, the company had a great success, as the strategy worked
which resulted in making Coca Cola Company the worlds leading company. In
2001, company accomplished the crust of its strategy as
Worldwide volume increased by 4 percent with strong international
growth of 5 percent and clear signs that our North American business is
growing solidly and predictable.
Earnings per share grew by 82 percent, as we delivered on our
commitment to create volume growth while aggressively
Return on common equity grew from 23 percent in 2000 to 38 percent
this year.
Return on capital increased from 16 percent in 2000 to 27 percent in
2001.
The company has generated free cash flow of $3.1 billion, up from $2.8
billion in 2000, a clear indication of its underlying financial strength.
The strategy for the future of the company is very straightforward. The
marketing strategy for the year 2002 is as follows,
Accelerate carbonated soft-drink growth, led by Coca-Cola.
Selectively broaden the family of beverage brands to drive profitable
growth.
39
MAJOR COMPETITOR
PEPSI INTERNATIONAL
HISTORY
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.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is
relatively young. PepsiCo was founded in 1965 through the merger of PepsiCola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with
The Quaker Oats Company, including Gatorade, in 2001.would entertain the
listener with the latest musical selections rendered by violin or piano or both.
The new name, Pepsi Cola, is derived from the two of the principle
ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At that
time, Bradhams advertising praises his drink as Exhilarating, invigorating,
aids digestion.
1990-2002
40
The advertisement of the Pepsi changes to, You got the right one baby, UhHuh!.With the extensive usage of the stars in the adds, the popularity of
Pepsi increase. In 1992 Pepsi-Cola formed a partnership with Thomas J.
Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the
United States. Outside the United States, Pepsi-Cola Company's soft drink
operations include the business of Seven-Up International. Pepsi-Cola
beverages are available in more than 190 countries and territories.
In Asia, they selected Lahore to make their regional office. This was done in
1970. This regional office is monitoring all the operations carried out in South
West Asia. As in Pakistan, they only entered beverage industry. They have
eleven bottlers covering whole Pakistan. The plant operating here is Riaz
Bottlers (Pvt) LTD. This plant was established at Lahore in 1974. The total
capacity of the plant is 30,000 cases per day. They have four filling lines in the
plant operating on the three shift bases. Each shift is of eight hours. They
have permanent work force of 750 people and they employee approximately
1000 people more on temporary basis during summer season.
Pepsis Products
Pepsi
Teem
Mirinda
Pepsi Max
Pepsi Lemon
Pepsi Blue
Mountain Dew
7up
41
42
PROMISE OF COKE
The basic proposition of our business is simple, solid and timeless. When we
bring refreshment, value, joy and fun to our stakeholders, then we
successfully nurture and protect our brands, particularly Coca-Cola. That is
the key to fulfilling our ultimate obligation to provide consistently attractive
returns
to
the
owners
of
our
business.
TARGET MARKET
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.
MAJOR SEGMENTS
Major segments are basically those people who take this drink daily and those
areas where the demands is higher then the other areas. There are so many
people who take this drink daily and those people who take weekly and those
who take less often are always there as well. So, their basic segments are
those people who take this drink regularly.
FACTORS EFFECTING SALES
There are so many factors, which affects the sale of coke. Here we are
discussing three major factors which effects coke.
Per capita income
Competitors
Weather
Per Capita Income
First we will discuss about Per capita income. This is major factor that
affects the sale of this soft drink. Because which every passing year budgets
are becoming very strict and tight in order to purchase things. So the
43
disposable incomes of the people are coming down. They spend heavily on
rents, utilities, and education and basic necessities and after that when they
get extra money they think about this soft drink .So the decreasing per capita
income effects badly in selling and production of this soft drink.
And to get through with this difficulty there is need to increase the level of per
capita income of Pakistan because it is much lesser than the rest of the
countries.
Competitors
Cokes major competitor is PEPSI and there is no hesitation to say this
because every one knows that and all the other cold drinks and water, coffee,
tea are the competitors.
Weather
Weather is the third major factor in effecting the Cokes selling. This is
underdeveloped market so the cokes consumption in summers is 60% and in
winters is 40%.
They provide this infrastructure free of cost just to provide child coke to their
customer, which they want to be purchase.
Their salesman and mechanics regularly visit all the shops where coke has its
infrastructure to check that either it is in proper condition or not, if not then
they immediately change or repair it.
MAJOR COMPETITORS
Consumers firstly decide that they are going to have a soft drink. Then they
compete brands with each other. Like they compete Coke with Pepsi and
Sprite with 7up and team .So the major competitor of Coke is Pepsi.
When they motivate to any other brand or on Coke its in instinct basically that
based on messages derive certain feelings.
But Coca Cola thinks in a different way, they believe that RC Cola, new
coming AMRAT Cola, and all juices, even they take water and tea as their
competitors.
STRATEGIES OF QUALITY
After Micro and macro analysis Brand coke is primarily role
1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
Though these strategies there could be better understanding and better
connection with the public. These are the key consumption.
THREATS FROM COMPETITORS
Threats are well planned. Price is the major threat. When price goes certain
beyond the exact price whether come down or go higher its effects the
consumption of soft drink.
Because when the price go higher people go for the substitute of coke i.e.
Pepsi.
And when price goes down they think that there is must be some thing wrong
in it.
In short it all depends on customers perception.
45
Opportunities
If Coke is considered a luxury product. Then there is the tax rate system
15% - sales tax
20% - excise duty
27% - goes to government
03% - In making Budget
After paying all these taxes coke has to pay electricity charges. We have to
spend on distributions. After paying all these expenses Cokes margin
squeezed and consumers have to pay for increasing tariffs.
These are the opportunities through which we can increase the price and can
get profits.
Threats
There are much more threats in increasing prices. Because same problem of
substitute. If Coke increase the price lets say 1 rupee. Then people definitely
wont go for coke. They have the best substitute of Coke that is Pepsi. So
these are the threats in increasing prices. Coke will lose the margin of its profit
and can face loss.
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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 CocaCola, 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.
MARKET POSITIONING
Product Range
The total range of Coca Cola company in Pakistan includes:
Coke.
Sprite.
Fanta.
Diet Coke.
And company offers their products in different bottle sizes these includes:
SSRB
LRB
NRB
PET 1.5
CANS
Packing
Coca cola products are available in different packing
24 regular bottle shell
6 bottle pack for 1.5 pets
12 bottles in a pack for disposable bottle
PRICE STRATEGY
Trade Promotion
Coca cola company gives incentives to middle men or retailers in way a that
they offer them free samples and free empty bottles, by this these retailers
and middle man push their product in the market. And thats why coca cola
seen more in the market. And they have a good sale in the market because
according to the expert which product seen more in the market that sells
more.
Seen as sold
They do agreements with a shop keepers and stores to exclusive sale in that
stores. These stores are called as KEY accounts in their local language.
And coke also invest heavy budget on these stores and offers them free
samples and free bottles and some time cash incentives.
Different Price In Different Seasons
Some times Coca Cola Company change their product prices according to the
season. Summer is supposed to be a good season for beverage industry in
Pakistan.
So in winter they reduce their prices to maintain their sales and profit. But
normally they reduce the prices of their pet bottles or 1 litter glass bottle.
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PROMOTION STRATEGIES
Getting shelves
They gets or purchase shelves in big departmental stores and display their
products in that shelves in that style which show their product more clear and
more attractive for the consumers.
Eye Catching Position
Salesman of the coca cola company positions their freezers and their products
in eye-catching positions. Normally they keep their freezers near the entrance
of the stores.
Sale Promotion
Company also do sponsorships with different college and schools cafes and
sponsors their sports events and other extra curriculum activities for getting
market share.
UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme
and they offer very handy prizes in it. Like once they offer bicycles, caps, tv
sets, cash prizes etc. This scheme is very much popular among children.
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.
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Indirect Selling
They have their whole sellers and agencies to cover all area. Because it is
very difficult for them to cover all area of Pakistan by their own so they have
so many whole sellers and agencies to assure their customers for availability
of coca cola products.
FACILITATING THE PRODUCT BY INFRASTRUCTURE
For providing their product in good manner company has provided
infrastructure these includes:
Vizi cooler
Freezers
Display racks
Free empty bottles and shells for bottles
ADVERTISEMENT
Coca cola company use different mediums
Print media
Pos material
Tv commercial
Billboards and holdings
Print Media
They often use print media for advertisement. They have a separate
department for print media.
POS Material
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Pos material mean point of sale material this includes: posters and stickers
display in the stores and in different areas.
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TV Commercials
As everybody know that TV is a most common entertaining medium so TV
commercials is 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 so many sites in different locations for their billboards.
EXPECTATIONS FOR THE COMING YEAR
Every thing starts from the attitude of consumers behavior. And the basic key
to attract the consumers is to throw the money away.
And positive feeling felling with the brand, which they used to have Coke
wants to advertise their products heavily in the coming year. And it will take
the 10% of their profits. And when we take it as a global level it is $ I billion.
Coming year is the challenging year for the industry of Coke. They have to
take lots of decisions that how to increase the production and where they have
to spend money.
For gaining success in coming year they have to have some important things
like:
1. Loyal consumers are important for companys success.
2. Workers should be the brand centric not the promotion centric.
3. They should know how much to for the brand activities.
4. They should also know that how much to do with the promotion activities
for brand.
HOW COKE DETERMINE THE YEARLY BUDGET
Coke determines its yearly budget by the
Sales volume
Profitability
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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 r
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.
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.
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In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in
Pakistan. Targeting house wives & family home, Coca-Colas 1.5 liter Pet
bottle, took the limelight & 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-Colas 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.
Coca-Cola Wonder of the World Promotion
In July 2000, Coca-Cola set the stage of the grand UTC promotion. Coca-Cola
went ahead with the idea of giving consumer chances to win fabulous, magical
dream vacation to numerous wonder destination throughout the world on
every purchase of a 250 ml RGB bottle of Coca-Cola, Sprite, & Fanta.The
promotion gave consumers a chance to win free drink, a trip to PARIS,
HOLLYWOOD, NEWYORK, SINGAPORE & CAIRO along with airfare & four
nights free stay in these dream lands. The promotion saw avid consumer
collecting Coca-Cola Crown caps & sparked a keen response from the
public , rendering an outstanding testimonial campaign in the second phase,
highlighting the winners over whelmed in the magical delight of their favorite
beverage Coca-Cola.
Coca-Cola & Nokia
In August 2001, the new under-the-crown promotion Nikla Kiya?(What have
u won) was launched in collaboration with Chimera Nokia.The promotion gave
consumer a chance to win thousands of Coca-Cola branded Nokia 3310
cellular phones on every purchase of 750ml RGB bottle of Coca-Cola ,Sprite,
& Fanta.The other highlight of promotion was the Caught Red Handed
campaign. Branded Coca-Cola with caught red handed team in them went to
Lahore & Karachi for three days, with target that anyone being caught drinking
Coca-Cola will be awarded a nokia 3310 mobile phone & if someone is caught
talking on a nokia mobile will win free supply of Coca-Cola. Caught red
59
handed become a huge success among the masses as it was one to one
interaction between the Coca-Cola brand & the consumers. This activity
helped billed confidence and brand loyalty among core consumers.
Coca Cola TV Mazza
The coca cola new campaign is coca cola tv mazza, it is a utc scheme in
which people are getting television sets of different sizes. These days this
scheme is very popular among the people.
Coca-Cola & Mc Donalds
Coca-Cola & key account of MC Donalds launched the we go together joint
promotion to reinstate amongst consumers a real sense of the affinity that,
both shares globally. The promotion kicked off with pos material (Danglers,
Bunting etc) displayed at all MC Donalds restaurants along with a special
offer for coke & fries.
Fanta & Sprite Launched
In November 2000moving on to the Sprite & Fanta brands, the consumers in
Pakistan witnessed a soft launch in essence. The Coca-Cola Company
declared the new Non-Returnable bottles of Sprite & Fanta as the New, On
the Go Packs flaunting the innovative packaging convenience. Fanta & Sprite
are sure to enjoy considerable success in Pakistan.
Diet Coke
After the acquisition of the individual local franchise bottling facilities in 1996,
the company has successfully launched its first new product, diet coke, for the
first time in almost 3 years. The was linked with three fashion shows as Diet
Coke is related to fashion & fitness, but the major hit was thematic fashion
shows in restaurants, which are the key accounts of the company as this has
been never done before in Pakistan.
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SWOT ANALYSIS
Strengths:
Coca-Cola has been a complex part of American culture for over a
century. The product's image is loaded with over-romanticizing, and this
is an image many people have taken deeply to heart. The Coca-Cola
image is displayed on T-shirts, hats, and collectible memorabilia. This
extremely recognizable branding is one of Coca-Cola's greatest
strengths.
Additionally, Coca-Cola's bottling system is one of their greatest
strengths. It allows them to conduct business on a global scale while at
the same time maintain a local approach. The bottling companies are
locally owned and operated by independent business people who are
authorized to sell products of the Coca-Cola Company. Because Coke
does not have outright ownership of its bottling network, its main source
of revenue is the sale of concentrate to its bottlers.
A company like Coca-Cola has much internal and external strength, but
when launching a product of this sort, they begin to run into many
internal and external weaknesses as well. As far as internal strengths
go, Coca-Cola itself is a strong company to say the least. Not only are
they a $23 billion company, but in 200 nations, Coke sells about 400
drink brands, including four of the top five sellers right now. They own
36% of the largest Coke bottler in the world, Coca-Cola Enterprises,
which staffs facilities all over the world.
Although Coke has never produced an organic product, they do own
Odwalla, which is a natural juice company. This product would not be
marketed as an Odwalla brand, but Odwalla's knowledge of natural juice
making will be a great strength for Coca-Cola.
Organic products are on the rise, with 70% of Americans having
purchased something organic at least once. While organics are
becoming more and more popular, there still are not many well-known
organic companies; therefore, Coca-Cola will not have much
competition.
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real threat. The soft drink industry is very strong, but consumers are not
necessarily married to it. Possible substitutes that continuously put pressure
on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate.
Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage
market, the changing health-consciousness of the market could have a
serious affect. Of course, both Coke and Pepsi have already diversified into
these markets, allowing them to have further significant market shares and
offset any losses incurred due to fluctuations in the market.
Consumer buying power also represents a key threat in the industry. The
rivalry between Pepsi and Coke has produced a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or face losing market share to the competition.
Furthermore, consumers can easily switch to other beverages with little cost
or consequence
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CONCLUSION
After thorough research, we come to the conclusion that the marketing
strategy of Coca Cola is working for them and the product is gaining popularity
among youth day by day.
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RECOMMENDATIONS
After completing our project we have concluded some recommendation for the
coca cola company, which are following.
Coca Cola Company should try to emphasis more on providing their
infrastructure in the market to facilitate their customers.
According to the survey, conducted by the international firm Pakistani
people like little bit sweeter cola drink. So for this coca cola company
should produce their product according to the local demand.
Marketing team should try to increase the availability of Coke in rural
areas.
They should also focus the old people.
Now young generation has a trend to drink a coke 2 regular bottles at
same time, so providing more satisfaction to them company should
introduce liter disposable bottle.
Some
what
Effected
Effects of
No
Effect
NE
65
Some
what
Effected
Strongly
Effected
government
regulations &
deregulations
Effect of
environmental
protection laws if
any
Import and export
regulations
Effect of political
conditions in
certain countries of
Coke
Any effect of
election, military
take over,
Revolution at Coke
YES
NE
NE
YES
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ECONOMICAL VARIABLES
Economical
Variables
Do soaring interest
rates make business
task any harder
Any effect due to
inflation
Anything done to
reduce
unemployment
Any effect of 11th
September 2001,
incident at Coke in
Pakistan
Strongly
Effected
Some
what
Effected
No
Effect
Some
what
Effected
Strongly
Effected
YES
YES
YES
NE
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SOCIAL VARIABLES
Social variables
Strongly
Effected
Effects of
advertisement of
Coke on Public
popularity
How will do Cokes
contribution affect
charity organizations
of Pakistan
Has rising
consciousness of
natural resources in
people effected your
save environment
activities.
YES
Some
what
Effected
No
Effect
Some
what
Effected
Strongly
Effected
YES
YES
Strongly
Effected
Have business
innovations
effectively
promoted your
business
Has the
governments
regulations ever
hindered in
YES
Some
what
Effected
No
Effect
Some
what
Effected
Strongly
Effected
YES
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importing technical
equipment
Does Coke help in
promoting
paperless
environment
YES
Coca-Cola has always had a close consumer and supplier relationship with its
customers. Its entertaining and colorful advertisements have always and will
always rock the media. Pakistani rock stars, sportmen and actors have played
a very vital role in making Coca-Cola such a popular beverage.
DATA ANALYSIS
1. Have you ever tried the product (Coca-Cola)?
Out of the 30 people we surveyed, all of them said they had tried CocaCola atleast once. This explains the brand awareness of Coca-Cola.
2. Gender
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3. Age groups
From the analysis, it was found that majority of 77% (23 people)
respondents said they enjoyed drinking Coca-Cola as against 23% (7
people) who said they preferred other drinks.
5. What brand would you say is more popular among the public?
a) Coca-Cola
b) Pepsi
c) Other
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It is understood from the fact that the Logo of the Company still has
its image in the minds of the people with all the respondents saying
they would recognize the Coca-Cola Logo.
9. How often do you buy the product?
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As seen in the above chart, customers usually preferred to buy Cocacola in restaurants like KFC, Mc Donalds, Sub-Way etc. The second
largest option was General stores stocking Coca-Cola.
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CONCLUSION
It was observed that Coca-Cola has been perceived quite positively as it
has been projected. People are aware of the Brand & Awareness of
Coca-Cola is quite high in the market. When a product is launched, avid
Coke drinkers choose this soda over any other competitor simply
because it's a Coca-Cola product and they trust it.
Although Coke has been into controversies, people still prefer to stay
loyal to the Brand with Coca-Cola being termed as a more popular brand
than Pepsi.
Coca-Cola products would appear, on the shelf, to have the most
expensive range of soft drinks common to supermarkets, at almost
double the cost of no name brands. This can be for several reasons
apart from just to cover the extra costs of promotions, for which no name
brands do without. When people buy Coca-Cola they are not just buying
the beverage but also the image that goes with it, therefore to have the
price higher reiterates the fact that the product is of a better quality than
the rest and that the consumer is not cheap.
In supermarkets and convenience stores Coca-Cola has their own fridge
which contains only their products. There is little personal selling, but
that is made up for in public relations and corporate image. Coca-Cola
sponsors a lot of events including sports and recreational activities.
So
Jo chaho ho jaye coca-cola enjoy
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LIMITATIONS
Time Constraints:
A two months time limits us to understand completely the
market requirements and all round working perspective of the company.
Position and Authentication Constraints:
With no authority or position it was
sometimes difficult to convince the customer in front as summer trainee holds no
responsibilities in the eyes of corporate.
No Customer Interection:ection
It is because the customers of
Hindustan Coca-Cola Beveragws Private Limited are big organisations, these
organisations are situated outside Varanashi. So , there is no interection with
customers of Hindustan Coca-Cola Beveragws Private Limited.
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SUGGESTIONS
In the report we have seen the graph of order booking targets and sales
turnover. In the graph of order booking we have seen that the order for our
product is increasing year. It means that with the increase of order to target.
We have efficiency of the organisation; we have to improve on certain points:
Cost efficiency:
To get the achievement of cost efficiency we have to
keep certain points in our mind they are resale of scraps, inventory
management, work distribution.
Profit generation:
In the SWOT analysis we have seen there is a great
opportunity products, these can be turnkey for the company. The
company should try to work on export. They should lay more emphasis
on export.
Improving technology:
There is no doubt that the product of company is
not good.
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Name: __________________________
d) Coca-Cola
e) Pepsi
f) Other
7. Do you think the price for a can of Coca Cola is cheap or expensive?
a) Cheap
b) Slightly over priced
c) Expensive
8. If you were to see the Coca Cola logo somewhere would you recognize it?
a) Yes
b) No
9. How often do you buy the product?
a)
b)
c)
d)
e)
Never
Once/few times a year
Few times a month
Few times a week
Everyday
ANNEXURE
The internet is a powerful source of information related to management theories
and practices. This annexure has been compiled for the net-savvy reader who would
like to surf the net for information on an aspect that is, in some way, related to matter
covered in this project work. This compilation is meant to be illustrative rather than
comprehensive and there might be many other sources. You must be on the guard as
every site listed on the search engines under the title Marketing Strategies Analysis
may not be related to my project over my study undergone in BPC Hindustan CocaCola Beveragws Private Limited. It may be a site related to general references,
articles and slides over management theories on Marketing!
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BIBLIOGRAPHY
Bibliography refers to the sources through which information has been
retrieved in my project development:
Books & Magzines:
Marketing Management
By ( Philip Kotler )
Economic Times
Annual Report of coca-cola company.
Websites:
www.google.com
www.coca-colaindia.com
www.altavista.com
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