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MARKETING PLAN OF COKE DIET IN BANGLADESH

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Marketing Management
Course Code: 511

Submitted To:

Dr.Belayet Hossain
Professor
Department of Marketing
University Of Dhaka

Submitted By:

Md.Riazul karim khan

Section-B; Roll-016
MBA 13th Batch,
Department of Marketing
University Of Dhaka

Submission Date:

19th February, 2012

Department of Marketing
University Of Dhaka
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Group Members……………………….AUDACIOUS

Name Roll

Shahidul Islam 004

Riazul Karim Khan 016

Ashim Kumar Dey 034

Shafiqul Islam 058

Shipon Kumer Das 108

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The following marketing plan forms the basis for the introduction of an innovative new

product by the Coca-Cola Company. The analysis allows us to outline the best strategies to

follow for the achievement of the company’s strategic goals. “COKE DIET” will be marketed

as a unique functional drink while striving to reinforce the company’s status as the leader

in innovation and successful product launches. It will focus on the niche market of

beverage tire that are unable to have beverages with sugar mostly the health conscious

consumer will be focused for its marketing planning. Success will be reflected by a sizeable

capture of market shares within this market, while strategically carrying the company up to

the top spot as the market leader in the functional drinks segment of soft drinks.
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Table of contents…………

Table of contents

COMPONENTS Page No.

Executive Summary

Table of Contents

Organizational History 1

Mission Statement 5

Coca-Cola company in Bangladesh 7

Situation Analysis
Industry Analysis 10
SWOT Analysis 11

Environmental Analysis
Macro Environment 13
Micro Environmental 13

Market Segmentation, Targeting & Positioning

Market Segmentation 14
Targeting & Positioning 15

Using 4P's of Marketing

Product 16
Price 17
Place 17
Promotion 18

Conclusion 19
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The Coca-Cola Company started out as an insignificant one man business and over the

last one hundred and ten years it has grown into one of the largest companies in the world.

The first operator of the company was Dr. John Pemberton and the current operator is

Roberto Goizueta.

Coca-Cola was invented by Dr. John Pemberton, an Atlanta pharmacist. He concocted the

formula in a three legged brass kettle in his backyard on May 8, 1886. He mixed a

combination of lime, cinnamon, coca leaves, and the seeds

of a Brazilian shrub to make the fabulous beverage.

Coca-Cola debuted in Atlanta's largest pharmacy,

Jacob's Pharmacy, as a five cent .non-carbonated beverage.

Later on, the carbonated. water was added to the syrup to

make the beverage that we know today as Coca-Cola.

Coca-Cola was originally used as a nerve and brain tonic

and a medical elixir. Coca-Cola was named by Frank Robinson, one of Pemberton's close

friends; he also penned the famous Coca-Cola logo in unique script. Dr. John Pemberton sold
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a portion of the Coca-Cola Company to Asa Candler, after Pemberton's death the

remainder was sold to Candler.

Pemberton was forced to sell because he was in a state of poor health and was in debt. He

had paid $76.96 for advertising, but he only made $50.00 in profits. Candler acquired the

whole company for $2,300 (freshkizzz,sep,2004). Coca-Cola was the world’s largest

manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups,

with more than 400 widely recognized beverage brands in its portfolio. With the bubbles

making the difference, Coca-Cola was registered as a trademark in 1887 and by 1895, was

being sold in every state and territory in the United States. In 1899, it franchised its bottling

operations in the U.S., growing quickly to reach 370 franchisees by 1910. Headquartered in
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Atlanta with divisions and local operations in over 200 countries worldwide. Coke’s first

international bottling plants opened in 1906 in Canada, Cuba, and Panama. By the end of

the 1920’s Coca-Cola was bottled in twenty-seven countries throughout the world and

available in fifty-one more. Coca-Cola continued working for over 80 years on Woodruff’s

goal: to make Coke available wherever and whenever consumers wanted it, “in arm’s reach

of desire.”The Second World War proved to be the stimulus Coca-Cola needed to build

effective capabilities around the world and achieve dominant global market share. From the

beginning, Coke understood the importance of branding and the creation of a distinct

personality.18 Its catchy, well-liked slogans19 (“It’s the real thing” (1942, 1969), “Things go

better with Coke” (1963), “Coke is it” (1982), “Can’t beat the Feeling” (1987), and a 1992

return to “Can’t beat the real thing”) 20 linked that personality to the core values of each

generation and established Coke as the authentic, relevant, and trusted refreshment of

choice across the decades and around the globe. In 2002, the company has launched new

brand product including Diet Lemon Coke, Vanilla Coke and large varieties of fruit taste Fanta

including lime, grape, strawberry and passion fruit in Australia. The company has also

acquired many new international water brands such as Danone Waters, Sparklettes,

Alhambra and Evian brands in US. They also continued collaboration with the Walt Disney

Company to market children's soft drinks. Coca-Cola Company Limited has invested a huge

amount in marketing campaign to support their brands. The aims for these campaigns are to

enhance the consumer awareness and consumer preference for a certain brand. As a result,
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Coca-Cola Co. has maintained a long-term growth in profitable volume and large market

share in the worldwide non-alcoholic beverage market.

In 1985, the Coca-Cola Company made what has been

known as one of the biggest marketing blunder.The Coca-

Cola Company stumbled onto the new formula in efforts to

produce diet Coke. They put forth 4 million dollars of

research to come up with the new formula. The decision to

change their formula and pull the old Coke off the market

came about because taste tests showed a distinct preference

for the new formula.The new formula was asweeter

variation with lesstang,it was also slightly smoother(Demott

54). Now-a-days Coca-Cola Company has 1,39,600 employees worldwide. They’ve

more than 3500+ beverages worldwide based on 500 brand names. And they’ve 125 years

of glorious operational history. Around the world this company serves 1.7 billion customers

per day. (www.thecoca-colacompany.com)

The Coca-Cola Company is centered around three objectives:

To stay at the forefront as the market leader in innovative product introductions and

successful product launches;

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To strengthen and satisfy the needs of the more adventurous Generation Y consumers

with a new eye-catching and functional product;

To become the market leader in the functional drinks segment with increased market

shares.

The Mission Statement of the Coca Cola

Company

Our mission statement is to maximize shareowner value over time. In order to achieve

this mission, we must create value for all the constraints we serve, including our

consumers, our customers, our bottlers, and our communities.

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The Coca Cola Company creates value by executing comprehensive business strategy

guided by six key beliefs:

1. Consumer demand drives everything we do.

2. Brand Coca Cola is the core of our business

3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink

beverages they want to drink throughout the day.

4. We will be the best marketers in the world.

5. We will think and act locally.

6. We will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand our

share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-

term cash flows, and create economic value added by improving economic profit.

The Coca Cola system has more than 16 million customers around the world that sells or

serves our products directly to consumers. We keenly focus on enhancing value for these

customers and helping them grow their beverage businesses. We strive to understand each
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customer’s business and needs, whether that customer is a sophisticated retailer in a

developed market a kiosk owner in an emerging market.

There are nearly 6 million people in the world who are potential consumers of our

company’s product. Ultimately, our success in achieving our mission depends on our ability

to satisfy more of their beverage consumption demands and our ability to add value for

customers. We achieve this when we place the right products in the right markets at the

right time.

The Coca-Cola Company in Bangladesh

In Bangladesh Coca-Cola Company is controlled by CCFL (Coca-Cola Fareast Ltd), Atlanta

USA. Coca-Cola was first introducing at 1963 in Tejgoan Industrial area under East Pakistan

organization in Bangladesh. At 1972 Bangladesh

government took over the company under ministry of

industry.In 1972 government handover it to the “Mukety

Jodda Kallan trust” as an abounded property form

ministry of industry. At 1972 Coca-Cola Company

had a 50 bottle per mint (BPM) plant. Area was the company approximately 1 acre. At 1985
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Coca-Cola Company established 470 Chiriakhana Road by implementing new 250

bottles per mint (BPM) plant. Because of market expunction and increase consumer demand

Coca-Cola Company introduce another 500 bottle per mint (BPM) plant with existing

production line. At percent its total production poIr is 750 BPM (bottle per mint).Now its

total factory area 7.25 acre approximately. Tabani beverage produces 175 ml, 250 ml, 50

ml and 1000 ml glass bottle. They supply Coca-Cola soft drinks to Dhaka and Rajshahi

divisions.

There are another franchisee of Coca-Cola Company is Abul Monem company ltd. In

1982 Abul Monem started their operation after they acquired the plant of K. Rahman &

Company. In 1987 the company made an aggressive move to expand their market. They

installed new H & K bottling line along with and installed capacity of 450 BPM at Comilla.

Furthermore the company established another plant Chittagong. The state of the art bottling

plant with an installed capacity 600 BPM is the most modern plant in the country and is

equipped with the straight-line-technology from KHS German. Abul Monem produces the

PET Bottles, CANS and GLASS Bottles of a newly introduced product. Now-a- Days Abul

Monem company is operating the major portion of Coca-Cola Company in Bangladesh.

They are promotion the product of the Coca-Cola Company around the whole country.

Tabany beverage and Abul Monem company introduces the new way of advertising in this

country for promoting their product. They’ve introduces the shopping cart or van in this
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country which gives the customer the opportunity to have their soft drinks from anywhere in

the country. They also provided refrigerator in different shop in Bangladesh to promote their

product.

Recently in 2011 Coca-Cola Company establishes its corporate office at Gulshan in

Dhaka. From this year they are monitoring the supply system and the promotion by their

own and in collaboration with Pran Group.

Product Information

In Bangladesh Coca-Cola Company is operating with its soft drinks. The product of this

company is:

The Coca-Cola (Classic)

Sprite

Fanta

New introduction in product line will be:

COKE DIET
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INDUSTRY ANALYSIS

In Bangladeshi beverage market it is in the top position. It is gaining its renowned world

reputation. From last couple of years for lacking of distribution it had to face so bad position.

Recently they gave the distribution to another giant company in Bangladesh PRAN Group. In

Bangladeshi industry of beverage they face two another competition. One is PEPSI , which is

distributed by Transcom Beverage Bangladesh Ltd. Another is RC Cola, which is distributed

by Partex Beverage Group. Recently they are facing another competitor MOJO from Akij

Beverage Ltd. This industry is so many complexes with lots of other beverage like juice,

energy drinks, water and lemonade. Recently for assessing a giant distributor they are in the

facility of using their supply chain, so that it is now in the position of just-in-hand as it was in

past. Now in days they are in the situation in market leader again.
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SWOT ANALYSIS

Strengths
Brand strength
Effective stride in new markets
Results of operations
Strong existing distribution channels
Opportunities
New product introductions
Brand is attractive to global partners
A profitable niche market
Weaknesses
Reliant upon line extensions
Reliant upon particular carbonated drinks
Entrance into difficult non-core categories
Saturation of carbonated soft drink
segment
Threats
Strong competition
Potential health issues
Free trade
The number of target people

The brand value is creating a vast opportunity of coca-cola in worldwide. The unique taste of

refreshment and the feeling of coke happiness create a positive emotion in the mind of

target customer. The competition from RC Cola was in the leading position in last couple of

years. They had a high market share due to the weakness of distribution from coca-cola last

years. A marketer challenger MOJO has invented by focusing the market without the coca-

cola distribution. Now the PEPSI is in the position of challenger. Coke must take necessary

steps to capture new market and update its management and distribution time to time. It
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need to capture new market segment which can be achieved by some nicer. Coke Diet can

be introducing in Bangladesh as a new product line to gain an extra facility.

ENVIRONMENT ANALYSIS

Every business has some limitations or facilities which it gains from its environment. In

Bangladesh the market is highly competitive. Here the organization like coca-cola has unique

features which provide it's a huge facility. But in this country it is not operating directly

rather it is operating with the help of some local distributors. Some times for the lacking of

that distributor coke need to face on huge loss. They were in hiding position due to their

lacking of distribution in last couple of years.

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MICRO ENVIRONMENT

The company, suppliers, marketing intermediary, competitors, public, and customers are the

elements of micro environment. In Bangladesh coke has another giant competitor PEPSI.

Without these it has some other competitor RC Cola, MOJO, BUBBLE UP, Jomjom Cola. These

are in the point of direct competition. Some energy drinks and bottle water are also in its

competition situation. The market is highly competitive with distribution and pricing. So a

slight pricing change or an excellence in distribution creates a lot of changes in the market

share. For being too profitable coke need to make its market strategy and strategic planning

efficiently. Marketing intermediaries like PRAN Group is one of the giant is in now duty for

solving all kinds of distribution.

MACRO ENVIRONMENT

Demographic environment, technological, economic, natural, political and social, cultural

environment are the elements of macro environment. In Bangladesh for demographic reason

here so many health conscious consumerare situated. They need some drinks to get refresh

but all are not suitable for them due to using sugar. COKE DIET is the best solution for them.

Economic condition of the people of this country is in the position to buy this product like

they are purchasing COKE CLASSIC. So here a huge market lies to be served and company can

earn a lot from targeting those segments.

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MARKET SEGMENTATION, TARGETING AND

POSITIONING
MARKET SEGMENTATION

Segmentation variables and breakdowns for COKE DIET in BANGLADESH

MAIN DIMENSIONS VARIABLES BREAKDOWNS
Region BANGLADESH, SOUTH ASIA
Area size 1,47,570Sq km
Density Urban, suburban

Age All works of life, mostly 20-50

Gender Male and Female
Occupation All levels of people, mostly graduation
Education Elementary 4th grade, High school, CEGEP and University
Race All
Home Renting apartment/condo, living with parents
ownership (Highly discretionary in personal spending)
Personality Brand conscious, HEALTH CONSCIOUS, anchored in popular
culture, inclined for differentiation and sophistication, very
tolerant towards multiculturalism and internationalism (open-
minded), quick maturation with modern products
Lifestyle Most of them dependent on own earnings, students also,
highly influenced by peer groups, active life, importance of
school, work and social life
Benefits COMMUNICATION BENEFITS
sought -Nutritional information
-Informational text on history of product
FUNCTIONAL BENEFITS
-Healthier than soft drinks
-Convenient, easy to take out
PERCEPTUAL BENEFITS
-Quality/Premium price
-Social standing/good-looking
Usage rate Seasonal (peak in summer), daily-basis, weekly basis
User status Non-user, regular user (current user through existing bar-
shops)
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MARKET TARGETING AND POSITIONING

This is a good niche market were we can invest with this product. So that it can create a good

impression to the customer and also creates a huge profit for company too. We need to

identify the people first from the segment which one segment we want to serve. Then we

need to focus on company mission statement. By focusing on the vision and the motive to

capturing the market share we need to come up with the solution made by the promotional

strategies. Personal presentation will be the best promotional activities here to solve the

problem of informing the customer about the product.

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USING 4P'S OF MARKETING

PRODUCT

The product is coca-cola diet is focused in this marketing planning. The coca-cola company

has more than 400 products in world wide. They are just in the market leader in the global

village. Coke is going to introduce in Bangladesh to create a market share from the deprive

people of Bangladesh. They are running here with product

The Coca-Cola (Classic)

Sprite

Fanta

New introduction is…….

DIET COKE
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PRICE

The pricing is the most important challenging in terms of marketing a new product.

Competition also creates a huge change in the pricing decision. The leader also need to

make the pricing based on the market demand and competitor's competitive strength. To

make a product more and more profitable each and every company needs to come up with

the solution with pricing effectively. Without an effective pricing they can't be profitable.

For Diet Coke the price must be in a position that everyone

can purchase it. Mainly for the beverage the price penetration strategy is taken everywhere.

PLACE

The whole country will be the market. There would be no demographic bindings so that each

and every people needs this can buy and have a good refreshment. It will also make the best

use of the production, distribution and market share capturing.

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PROMOTION

Coca-cola takes a lot of advertising activities all over the world in every year. They've lots of

billboards. They also use television media for their advertisement. In Bangladesh they mainly

advertise in newspaper and television. For promoting their product they also use on shop

advertisement. They provide the refrigerator to the shop and also make ensure the space in

shelves for decorating their product .

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Based on the aforementioned analysis, COKE DIET appears to be a

profitable and innovative product with a strong outlook for market

share presence and segment growth opportunity. Upon implementation

of the marketing plan, the Coca-Cola Company will regain increased market

shares and claim its targeted situational position of market leader in the functional drinks segment

as well as keeping its long-standing consumer recognition for innovative and successful product

launches in diversified markets.