Introduction:

Coca-Cola is an American multinational beverage company and the oldest multinational

company in Bangladesh. Coca-Cola recently offers more than 500 brands and 200 countries.
Coca-Cola produce as franchise system business in Bangladesh. Coca-Cola International
Beverages Pvt. Ltd. And Gazi Shams Uddin, Chief Operating Officer (Beverages Unit), Abdul
Monem Limited along with other senior officials from Coca-Cola .

Abdul Monem Ltd. (AML) is the only official bottler of Coca-Cola, Sprite, Fanta Orange and
Fanta Lemon in Bangladesh authorized by the Coca Cola International headquarter located in
Atlanta, USA. Through three bottling plants located in Dhaka, Comilla and Chittagong and with
a devoted distribution channel spread all around the country, AML has well established its strong
and dominant presence in beverage industry of Bangladesh. Coca-Cola gives 1700 people
working facility in Bangladesh.

The Coca-Cola company is the worlds largest beverage company and is the leading producer
and marketer of soft drinks. However Coca-Cola is not the sort of company to live in its past
glories instead it looks to the future as a challenge and constantly seeks new markets and ways of
increasing its market share in areas where it currently has a strong presence. It is the worlds
largest producer and distributer of syrups and concentrates for soft drinks.

As we all know, the Coca is todays one of the biggest corporation that offers different
refreshment in form of a soft-drink. But aside from their historical success, the Coca Cola
Company is still a typical business that is affected and at the same time affecting the different
type of communities.

For generations, the simple pleasure of drinking Coca-Cola has been associated with special
times, special places and timeless moments but also with the satisfying experience of everyday
life. That is the magic of Coke. Coca-Cola, the brandis the heart of our company. It has always
been and always will be. Coca-Cola, Fanta and Sprite create the magic to provide consumers

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with special moments. Consumers of all ages want great tasting beverages that also provide
nutrients for healthy growth and to make them feel their best.
There are two important things. The company have to do
1. Enhance the Coca-Cola trademark
2. Satisfy the Customer needs and expectations
The Customer is always right

Coca-Cola committed to

Building preference & market leadership for our brands.

Achieve quality excellence and serve our customers with quality products. Maximizing
profits
Developing People
Optimum utilization of assets

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 General environment Analysis of
Coca-Cola
The Coca Cola Company and other organizations have their own weaknesses
and strengths that can both affect the future performance of their respective
business in the external environment. Analyzing the external environment in
Bangladesh constraints is an advantage for the companies since they can
identify the possible factors that tend to leave an impact on their business.
These six external environment factors are discuss below

Political/Legal Environment:

The changes in laws and regulation, such as accounting standards, taxation

requirements and environmental laws and foreign jurisdictions might affect
the book of the company as well as their entry in this country. Other than
that, the changes in the nature of business as non-alcoholic beverages can
gain competitive product and pricing pressures and the ability to improve or
maintain the share in sales in global market as a result of action by
competitors.

The legal factors include discrimination law, customer law, antitrust law,
employment law and health and safety law. In Coca-Cola the business is
subjected to various laws and regulation in the numerous countries in which
they do the business, the laws include competition, product safety,
advertising and labelling, container deposits, environment protection, and
labor practices.

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In Bangladesh, the products of the company is subjected to various acts like
Drug and Cosmetic Act, Occupation Safety and Health Act, various
environment related acts and regulations, the production, distribution, sale
and advertising of all the products are subjected to various laws and
regulations. Changes in these laws could result in increased costs and capital
expenditures, which affects the company profitability and also the
production and distribution of the products.

Changes in laws and regulations, including changes in accounting standards, taxation

requirements, and environmental laws in domestic or foreign jurisdictions.

Changes in the non-alcoholic business environment. These include, without limitation,

competitive product and pricing pressures and their ability to gain or maintain share
of sales in the global market as a result of action by competitors.

Political conditions, especially in international markets, including civil unrest,

government changes and restrictions on the ability to transfer capital across borders.

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The political conditions of the country are also basis of the study, especially
in internal markets and other governmental changes that affects their ability
to penetrate the developing and emerging markets that involves the political
and economic conditions. However, Coca-Cola continuously monitoring the
policies and regulations set by the government.

Coca-Cola is the leading soft drink brand in Bangladesh. However, the

primary barrier for Coca-
Colas entry into the Bangladeshi market was its political environment.
Despite the liberalization of the economy in and introduction of the New
Industrial Policy to eliminate barriers such as bureaucracy and regulation,
there was still a lot of protectionism. When Coca Cola had decided to enter in
Bangladesh to distribute the products, Coca-Cola was monitoring the policies
and regulations of this country. For the example, when entering Muslim
country like Bangladesh,
Coca-Cola followed the regulation by adding Halal stamp in each of Coca-
Colas products. In this case, Coca Cola has no political issues in the matter
of producing their product in Bangladesh.

The courts of competent jurisdiction at Dhaka shall have exclusive jurisdiction to

determine any and all disputes arising out of, or in connection with, the Promotion.
Participation in the Promotion is unauthorized in any jurisdiction that does not give effect
to all provisions of these Terms, including without limitation, this clause.
Further all issues and questions concerning the construction, validity, interpretation and
enforceability of these Terms, or the rights and obligations of the Participants and
partners of Promotion shall in accordance with the laws of the Republic of Bangladesh.

Coca Cola has to make sure that they have written price, manufacturing date, expiry date,
batch no, nutritional facts are written on the packed product. Ministry of Labor makes
the laws for proper employment in the country.

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They have stipulated norms on employing people from the country and getting
expatriates in the company as well. Coca Cola has made sure that female employees are
treated with respect and given equal importance at the work place. Every field of work
has got its own wage, these are to meet the norms and laws set by the labor ministry of
Bangladesh. When employing anyone, Coca Cola doesnt discriminate on social, regional
or any racists basis.

Economic Environment:

The economic factors analyze the potential areas where the firm can grow and expand. It
includes the economic growth of the country, interest rates, exchange rates, inflation
rates, wage rates and unemployment rate in the country.

14 November 2014 Inflation continued its descent in October, coming down to 6.6
percent. In recent days Coca-Colas inflation grows 7.5%. In Bangladesh 45%-55%
charges for their disposal income as corporate rule and charges 25% as individual rule.
Economic environment examines the local, national and world economy impact which is
also includes the issue of recession and inflation rates. The non-alcoholic beverage
industry like Bangladesh has high sales in countries outside the U.S because here alcohol
is strongly prohibited from religious perspective.

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According to the Standard and Poor's Industry surveys, "For major soft drink
companies, there has been economic improvement in many major
international markets, These markets will continue to play a major role in the
success and stable growth for a majority of the non-alcoholic beverage
industry like Bangladesh. There is a low growth in the market for carbonated
or soft drinks, especially in Coca Colas main market.

The company first analyzes the economic condition of the country before
venturing into that country. When there is an economic growth in the
country, the purchasing power among people increasing. It gives the
company or the marketer a good chance to market the product. Coca-Cola, in
the past identified this correctly and rightly started its distribution across
Bangladesh.
Interest rates are the rate which is imposed on the company for the money
they have borrowed from government. When there is an increase in the
interest rates, it may determine the company in further investment as the
cost for borrowing is higher. Coca-Cola uses derivative financial instruments
to cope up with the fluctuating interest rates. Inflation and wage rate go
hand in hand, when there is an increase in the inflation the employee
demand for a higher wage rate to cope up with the cost of living.

This comes as additional cost for the company which cannot be reflected in
the price of the final product as the competition and risk in this segment is
higher. This is a threat in the external environment faced by the company.
From the above explanation it is clearly seen that the economic factors
involves a major impact in the behavior of the company during various
economic situations.

Social-Cultural Environment:

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Social factors are mainly the culture aspects and attitude, health
consciousness among people, population growth with age distribution,
emphasis on safety. The company cannot change the social factors but the
company has to adjust itself to the changing the society. The company
adapts various management strategies to adapt these social trends.

Coca-Cola which is a company, is directly related to the customer, so social

changes are the most important factors to consider. Each and every country
has a unique culture and attitude among the people. It is very important to
know about the culture before marketing in a particular country. Coca-Cola
has about 3300+ products in their stable, when entering into a country it
does not introduce all the products. When they started their business in
Bangladesh, it introduces minimum number of products according to the
culture of the country and the attitude of the people.

Consumers and government are becoming increasingly aware of the public

health consequences, mainly obesity which is the second social factor in the
soft drinks industry. It inspired the company to venture into the areas of Diet
coke and zero calorie soft drinks. The problem of obesity is taken seriously
among the youngsters of who like to maintain a good physique. Hence coke
introduced dietary products for those youngsters of Bangladesh who can
enjoy coke with zero calories. In one of the study it is said that Consumer
from the age groups 37 to 55 are also increasingly concerned with nutrition.
Since many are aware, they are concerned with the longevity of their lives.
This will affect the demand of the company in the existing product and also is
an opportunity to venture into new health and energy drinks industry.

Population growth rate and the age distribution is another social factor to be
considered. It is very important because non-alcoholic markets have most of
its share from the children and youngsters. Adults used to celebrate mostly
with alcohol. The age distribution of the country becomes important for the
success of the product in this country.

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Initially, it struggled to find acceptance as there were already other brands.
Coca-Cola had earlier focused more on the American way of life in their
advertising campaigns, which the Bangladeshi consumers could not identify
with. Also, they did not focus on competition from other alternatives.

However, things were brought under control when they gave more attention
on their marketing mix. With the lowering of their prices by almost 15-20%,
more investment in market research and focusing on the target group of 18-
24 year olds of our country, they were able to increase their market share
and build brand loyalty.

Coca Cola today, has made significant investments to build its business in
Bangladesh. It has also generated employment for lots of people in related
industry through its procurement, supply and distribution cycles in our
country.

The soft drink industry today is growing steadily due to the economy,
strengthened middle class and low per capita consumption. With the
increase in health consciousness among the urban consumers, the company
has introduced newer products such as Diet Coke, which contain lesser
calories than ordinary Coca-Cola. This is also responsible for the company
shifting focus from carbonated drinks to Fruit Drinks / Juices and bottled
water.

The rural market had also been identified by Coca-Cola as an attractive

target, with almost 70% of our countrys population.

Technological Environment:

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Technology plays a varied role in the soft drinks industry. The manufacturing
and distribution of the products in our country is relatively a Low-Tech
business, although the creation of a new product with the perfect blend and
taste is a science (an art in itself).

Technological contributions are most important in packaging in our country

and all over the world. The company rely on their bottling partners for a
significant portion of their business. Nearly 83% of Bangladeshi unit case
volume is manufactured and distributed by their bottling partners in whom
the company does not have controlling power. Hence it is necessary for the
company to maintain a cordial relation with their bottling partners. If the
company do not give simple support in pricing, marketing and advertising
then the bottling industry while increase their short term profits, may
become detrimental to the company.

The advancement in technology in the company has led to: Introduction of

new ways for the availability of Coca-Cola, it introduced general vending
machines in Bangladesh and all over the world. In products it led to the
development of new products in our country like Cherry Coke, Diet Coke etc.
in our country. The technical advancement in the bottling industries include,
introduction of recyclable and non-refillable bottles, introduction of cans
which are trendy, stylish and popular among the youngsters of our country.

Technology is the main focus of the analysis where the introduction and the
emerging technological techniques are valued. This creates opportunities for
new products and product improvements in our country in terms of
marketing and production. As the technology advances, new products are
introduced into the Bangladeshi market. The advancement in technology has
led to the creation of cherry coke but consumers still prefers the traditional
taste of the original coke in our country and all over the world.

Global Environment:

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Coca Cola has earned a title of environment friendly company and Coca Cola
Bangladesh too has followed in the footsteps. Coca-Colas Corporate is an
initiative that prioritizes many global issues; one of them being water
conservation. They support many community based rainwater harvesting
projects and help lending conservation education. Globalization is a way of
eliminating different countries continent and economy so as to make it easier
to trade and transections within and between other countries. Increase in
economic can be seen to be on the major benefit gain from globalization.

Coca Cola applies sales promotion marketing in various formats. Instances of

sales promotion applied by the company include but not limited to the offer
of a free cooler bag if a customer commits to a specific amount of a
minimum purchase, offer of a seasonal Christmas, EID, PUJA that comprises
Coca-Cola Buy 2 for the Price of 1 sales promotion during football seasons
and others. Moreover, many restaurant in Bangladesh chains such as KFC,
BFC, PIZZA HUT and Subway around the globe offer Coca Cola free of charge
as a part of their own sales promotion campaign.
Package with a uniform taste of product across the country, this became
some of the foundation strategy of the company. Coca-Cola company focus
and meet those request a brand name Coca-Cola and Red and White bottle
attractive packaging system. The road to success has never been smooth
and easy. For Coca-Cola Company the phrase seems perfectly matched, the
Company faced a lot of challenges in some countries as it was trying to
globalize. Some countries prohibited the use of Coca-Cola products with the
assertion that the products are health threatening and cheering obesity,
which are two major concern for people nowadays.
Other countries suits the Company for being selective in providing healthcare
to their workers. Another major challenged faced by the Company of the
beverages market by other strong Companies such as Pepsi.

Coca Cola Company should try to emphasis more on providing their

infrastructure in the market to facilitate their customers.

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From our analysis, we have found some challenges that Coca-Cola Company
is facing here in Bangladesh. The Challenges are as follows-

In rural areas especially in remote areas, Coke is not available but

there is a demand.

In Bangladesh, Coke Diet and Zero is not that much available. They are
having production and problem.

Demographic Environment:

Deferent ages have their different requirement. Demography is the study of

the human population of size, density, age, gender, race, occupation in
Bangladesh. The demographic environment is of major interest to marketers
because it involves people, and people make up markets. Within Coca Cola
several different demographic factors are relevant to their market sector.

The company should target the age group that consumes most of its brand
and customizes the promotional and marketing strategies that suits their
behaviors. Age is a factor that is relevant as the organization has to obey by
certain laws and regulations for example by advertising to children, it is
considered unconventional and morally wrong. Coca-Cola have stated that
they will not advertise their products to children and will not show them on
children TV channels as they contain high quantity of sugar and are
unhealthy.

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Coca-Cola produce different product for different region. Thus, marketers
need to form more precise age-specific segments within each group. Defining
people by their birth date may be less effective than segmenting them by
their lifestyle, life stage, or the common value they seek in the product they
buy. So Coca-Cola as a soft drink it target the youth and old people while the
other products under Coca-Cola.

According to the survey conducted by an international firm, Bangladeshi 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 on the old people.
Now young generation has a trend to drink a coke 2 regular bottle at same time, so providing
more satisfaction to them company should introduce liter disposable bottle.
As, in Bangladesh, having a good number of demand, Coke Diet and Zero is not that much
available, so they should emphasize on the supply of these two brands.

SWOT Analysis of Coca-Cola

SWOT Analysis:

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The alphabets in the word SWOT sands for Strength, Weakness, Opportunity and Threats. In
SWOT analysis, we basically going to discuss about the strength, weakness, opportunity and
threats of Coca-Cola Company. So, here goes the SWOT analysis of Coca Cola Company.

Strength:
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.

14 | Coca-Cola
 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.

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 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.

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 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.

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.

Threats:

16 | Coca-Cola
 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.
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.

Conclusion

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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.
References:

Reference:

Text book: Management, Stephen P Robbins & Mary Coulter.

Prentice- Hall of India (10th edition).

http://www.coca-colacompany.com/
http://en.wikipedia.org/wiki/The_Coca-Cola_Company
http://ivythesis.typepad.com/term_paper_topics/2009/12/pestle-
analysis-on-cocacola.html
http://annasurname.hubpages.com/hub/PEST-Analysis-Coca-Cola
http://smallbecomesgiant.wordpress.com/2013/04/04/pest-analysis-of-
coca-colacompany/
http://www.strategicmanagementinsight.com/swot-analyses/coca-cola-
swotanalysis.html

The End
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