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Final Project of Strategic Marketing

Submitted By: M.Hasham (2)

Ali Raza (6)
Zubair (19)
Mudasir (39)

Instructor: Sir Farooq

Date : 23 Feb 2018
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Project Description
 Comparison between Multination and
Domestic product

Multinational Product : Coca Cola

Domestic product : Gourmet Cola

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Table of Contents
Introduction page 4

Mission statement page 5

Vision statement page 6

Strategic management page 7

Basic mission of the firm page 7

SWOT analysis page 8

Objectives and goals page 12

Implementation of plan page 13

Evaluation and control of operations page 13

Internationalization process page 13

Pest analysis page 14

Culture page 16

Elements of culture page 16

Culture dimensions page 19

Porter’s Diamond page 21

Problems faced by the company page 22

Conclusion page 22
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ACKNOWLEDGEMENT:

On the road to completion to this project there are many people that we would want to thank. We
are grateful to ALLAH Almighty who gives us potential to cover and hold this project
successfully. We are extremely grateful to our instructor Sir Farooq for rendering her support
and guiding us till the completion of this project. The Special gratitude to all group members for
explaining very interesting and relevant information about the project and for the wonderful
coordination. At the end we are highly obliged to UCP as a whole, which made us capable to
undertake this highly informative and practical research work.

Product of multinational company

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1. Difference Between Domestic and International Business:

International Business:
Trade which occurs between two countries internationally, is called international
business.

Domestic:
Trade refers to the exchange of goods and services for money, which can be undertaken
within the geographical limits of the countries or beyond the boundaries.

2. Company Profile:
The Coca-Cola Company was originally established as the J.S Pemberton Medicine Company, a
co-partnership between Dr. John Stith Pemberton and Ed Holland.
Dr.Jhon Stith Pemberton for the first time produced the syrup for Coca-Cola on May 8, 1886

3. Coca-Cola’s History:
Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S.
Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains.
He created a flavored syrup, took it to his neighborhood pharmacy, where it was mixed with
carbonated water and deemed “excellent” by those who sampled it. Dr. Pemberton’s partner and
bookkeeper, Frank M. Robinson, is credited with naming the beverage “Coca-Cola” as well as
designing the trademarked, distinct script, still used today.
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Did you know? The first servings of Coca-Cola were sold for 5 cents per glass. During the first
year, sales averaged a modest nine servings per day in Atlanta. Today, daily servings
of Coca-Cola beverages are estimated at 1.9 billion globally.
Prior to his death in 1888, just two years after creating what was to become the world’s #1-
selling sparkling beverage, Dr. Pemberton sold portions of his business to various parties, with
the majority of the interest sold to Atlanta businessman, Asa G. Candler. Under Mr. Candler’s
leadership, distribution of Coca-Cola expanded to soda fountains beyond Atlanta. In 1894,
impressed by the growing demand for Coca-Cola and the desire to make the beverage portable,
Joseph Biedenharn installed bottling machinery in the rear of his Mississippi soda fountain,
becoming the first to put Coca-Cola in bottles. Large scale bottling was made possible just five
years later, when in 1899, three enterprising businessmen in Chattanooga, Tennessee secured
exclusive rights to bottle and sell Coca-Cola. The three entrepreneurs purchased the bottling
rights from Asa Candler for just $1. Benjamin Thomas, Joseph Whitehead and John Lupton
developed what became the Coca-Cola worldwide bottling system.
Fast forward to the 1970s when Coca-Cola’s advertising started to reflect a brand connected with
fun, friends and good times. Many fondly remember the 1971 Hilltop Singers performing “I’d
Like to Buy the World a Coke”, or the 1979 “Have a Coke and a Smile” commercial featuring a
young fan giving Pittsburgh Steeler, “Mean Joe Greene”, a refreshing bottle of Coca-Cola. You
can enjoy these and many more advertising campaigns from around the world in the Perfect
Pauses Theater at World of Coca-Cola.

4. Ingredients:

 Carbonated water
 Sugar (sucrose or high-fructose corn syrup (HFCS) depending on country of origin)
 Caffeine
 Phosphoric acid
 Caramel color (E150d)
 Natural flavorings
 A typical can of Coca-Cola (12 fl ounces/355 ml) contains 38 grams of sugar (usually in
the form of HFCS) 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140
calories.] On May 5, 2014, Coca-Cola said it is working to remove a controversial
ingredient, brominated vegetable oil, from all of its drink.
 Carbonated water
 Sugar (sucrose or high-fructose corn syrup (HFCS) depending on country of origin)
 Caffeine
 Phosphoric acid
 Caramel color (E150d)
 Natural flavorings
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A typical can of Coca-Cola (12 fl ounces/355 ml) contains 38 grams of sugar (usually in the
form of HFCS) 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories.] On May 5,
2014, Coca-Cola said it is working to remove a controversial ingredient, brominated vegetable
oil, from all of its drink.
Formula of natural flavorings:
The exact formula of Coca-Cola's natural flavorings (but not its other ingredients, which are
listed on the side of the bottle or can) is a trade secret. The original copy of the formula was held
in SunTrust Bank's main vault in Atlanta for 86 years. Its predecessor, the Trust Company, was
the underwriter for the Coca-Cola Company's initial public offering in 1919. On December 8,
2011, the original secret formula was moved from the vault at SunTrust Banks to a new vault
containing the formula which will be on display for visitors to its World of Coca-Cola museum
in downtown Atlanta.

5. Mission:
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions. The world is
changing all around us. To continue to thrive as a business over the next ten years and beyond,
we must look ahead, understand the trends and forces that will shape our business in the future
and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's
what our 2020 Vision is all about. It creates a long-term destination for our business and
provides us with a "Roadmap" for winning together with our bottling partners.
 To refresh the world…..
 To inspire moments of optimism and happiness
 To create value and make a difference.

6. Vision:
Our vision serves as the framework for our Roadmap and guide every aspect of our business by
describing what we need to accomplish in order to continue achieving sustainable, quality
growth.

6.1. People:
Be a great place to work where people are inspired to be the best they can be.

6.2. Portfolio:
Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s
desires and need.

6.3. Partners:
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Nurture a winning network of quality beverage brands that anticipate and satisfy people desires
and needs.

6.4. Planet:
Be a responsible citizen that makes a difference by helping build and support sustainable
communities.

6.5. Profit:
Maximize long- term return to shareowners while being mindful of our overall responsibilities.

6.6. Productivity:
Be a highly effective, lean and fast-moving organization.

7. Why Go Global?
 2008 Cola-Cola Company
 Generated more than 80% of its revenue from outside United State
 Prerequisites to the success of a……….information system
 Clear understanding of factors such as customer, laws, technological issues,
and local business need and practices

8. Objectives:
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 Coca-Cola’s first objectives is to maximize share owners value over

time.
 Maximize long-time cash flow
 To ensure the strongest and most efficient production, distribution
marketing systems possible

9. Strategy:
We have a set of clear strategic action:
Accelerating our action
 Focus on core business model
 Streamline and simplify
 Drive efficiency through aggressive productivity

Evolving our growth

 Focus on revenue through segmented market roles
 Disciplined brand and growth investment

10. 4ps Analysis

10.1. Product:
Coca Cola product strategy in its marketing mix can be studied by understanding its wide
product range. The following products are offered by Coca Cola globally: Coca Cola, Sprite,
Fanta, Diet Coke, Coca Cola Zero, Coca Cola Life, Dasani, Minute Maid, Ciel, PowerAde,
Simply Orange, Coca Cola Light, Fresca, Glace au Vitamin water, Del Valle, Glace au Smart
water, Mello Yello, Fuze, Fuze Tea, Honest Tea, Osewalla, PowerAde Zero
Coca Cola products are sold in various packaging and sizes. For example, its core product Coke
is sold in 200ml, 500ml, 1ltr, 1.5ltt and 2ltr bottles in cans, glass and plastic bottles. The Coca
Cola logo is clearly made visible on each of these bottles and cans to differentiate itself from
Coke. The Coca Cola bottles also have unique shapes pertaining to the brand. Coca Cola, Sprite
and Fanta have large market shares in their respective segments but their growth is almost
stagnant. Hence they generate huge cash for the company. Minute maid has high market share
and good growth rate.

10.2. Price:
Coca Cola follows a 2nd degree price discrimination strategy in its marketing mix. In the sense
they charge different prices for products in different segments. The beverage market is
considered to be an oligopoly in which there are few sellers and many buyers. Coca Cola and
Pepsi are the dominant players. Coke products are priced similar to that of Pepsi products in that
particular segment. If Coke prices its products too high as compared to Pepsi in a particular
segment, then the consumers might switch especially in developing countries where the
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consumers are price sensitive. Hence both come to an agreement of maintaining price parity in
each segment. However, Coca Cola offers discounts on bulk purchases by sometimes even
bundling the products.

10.3.Place:
Coca Cola being in the market for more than 130 years and operating in more than 200 countries
worldwide, it has developed excessive distribution network. The wide distribution network
highlights the place strategy in Coca Cola marketing mix. The Coca Cola company produces the
beverage using its secret formula and transports it to the bottlers located in various parts of the
globe. The bottle shapes and sizes are predefined by the company. The bottlers then fill the
bottles with the adequate beverage and then ship it to the carrying and forwarding agents. From
there the bottles are transported by road to the stockiest, then to the distributors and finally to the
retailers from where the final consumers buy the products. Most of the times the goods from the
distributor are transported to the wholesalers who distributes these to the retails according to the
demand on regular basis. Coca Cola has an extensive distribution channel and its products are
available in almost all retail outlets and supermarkets across the globe. In India Coca Cola
products are made available across 2.5 million outlets.
Coca Cola products are also distributed to various Hotels and restaurant chains throughout the
world. Coke has also built an extensive reverse supply chain where they collect the leftover glass
bottles from the retailers and convert them into a reusable product thus saving cost and additional
resources.
10.4. Promotion:
Coca Cola sets the bench mark for advertising and branding. The promotional strategy of Coca
Cola focuses on aggressive marketing through ad campaigns using media like TV, online ads,
print media, sponsorships etc. Coca Cola engages in the following major sponsorship events like
American Idol, BET Network, NASCAR, NBA, NCAA, Olympic Games, FIFA world cup etc.
Coca Cola also launches TV advertisements in various national languages across the globe. In
India in March 2016, Coca Cola launched “Taste the Feeling” Campaign which seeks out to
remind its customers about the joyous and happy moments Coke brings to their lives. He was
chosen so as to connect well with the Indian youth. The ads were telecasted frequently across
various channels.
Special incentives are given to the distributors and retailers for pushing Coke products. Also
these retailers are given refrigerators and Coca Cola hoardings for advertising the brand. At
supermarkets, special emphasis is given on the shelf spaces to generate more visibility of its
products. Coca Cola also engages in various CSR activities to help support environmental and
social issues across the globe. Hence, all these points give an overview on Coca Cola marketing
mix.
11. Advertising Strategy:
Before creating advertising message the Coca-cola Company gives lots of time to the factor
that the message must gain customer attention. This is basically called” cluster Buster”
means that only that advertisement will leave impact on customer mind that has some
specially or uniqueness in it.
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For example in India Coke slogan “Thanda Matlab Coca-cola has gained reasonable
customer attention. Marking a significant shift in its marketing strategy, Coca-Cola today
announced that for the first time, all Coke Trademark brands will be united in one global
creative campaign: “Taste the Feeling. “Chief Marketing Officer Marcos de Quinto, who
unveiled the “one brand” approach at a media event in Paris, said the strategy extends the
equity and iconic appeal of the world’s No. 1 beverage brand to Coca-Cola Light/Diet Coca-
Cola, Coca-Cola Zero and Coca-Cola Life. It also underscores the company’s commitment to
choice, offering consumers whichever Coca-Cola suits their taste, lifestyle and diet – with or
without calories, with or without caffeine.“We are reinforcing that Coca-Cola is for
everybody,” de Quinto said. “Coca-Cola is one brand with different variants, all of which
share the same values and visual iconography. People want their Coca-Cola in different
ways, but whichever one they want, they want a Coca-Cola brand with great taste and
refreshment. Taste the Feeling” will bring to life the idea that drinking a Coca-Cola –
any Coca-Cola – is a simple pleasure that makes everyday moments more special. While
Coke’s award-winning “Open Happiness” campaign leaned heavily on what the brand stands
for over the last seven years, “Taste the Feeling” will feature universal storytelling with the
product at the heart to reflect both the functional and emotional aspects of the Coca-
Cola experience

12.Competitors:
Pepsi co, Dr Pepper Snapple group, unsilver, group DANONE, Kraft foods, nestle
Some Local Competitors:
 Pepsi
 Gourmet
 Pakola
 Other Competitors

13.Customers:
Our customers include large international chains of retailers and restaurants and small
independent businesses. We work with them equally to creat mutual benefit. Together with our
bottling partners, We serve our customer through account management teams , providing
services and support tailored to their needs.The Coca Cola Company exists to satisfy the
consumers’ needs. The Coca Cola Company has over 400 brands of drinks designed to satisfy a
very wide range of consumers. They are able to provide drinks for many different target markets
including, people of all ages, sexes, races, etc. Coca-Cola products are able to sell to a diverse
worldwide population and its success is unmatched. In today’s society, people are looking to
lead better, healthier lives, Coca Cola seeing this trend has begun to produce, diet drinks that
have the same great taste as their regular drinks while still being low fat or low calorie drinks,
such as diet coke, or coke zero. They also have many lines of fruit juices for both kids and
adults, such as Disney Hundred Acre Woods for kids, and Odwalla, for adults who want a grown
up taste in a healthy fruit beverage. Coca Cola products are purchased by all the different classes,
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but mainly by the middle and high-class citizens, because they have more money to spend on
luxury items. Coca Cola is a very successful company; due to their success they are able to
spend more moneymaking their factories work more efficiently. They can do this by updating
the equipment used to produce their drinks. Although people today are becoming more conscious
about their environment, and the damage that has been done in prior years. Many people make
their purchase decisions partially based on a company’s ethics, or social responsibility. By
contributing to stop pollution both within and outside their factories, they will gain the trust and
respect of the potential buyers, who care about saving our environment. In gaining their trust and
respect more people will be willing to purchase their products, because the company stands for
the same goals that their consumers are trying to protect. The Coca Cola Company, tries to be
more environmentally aware.

14.Operations Function:
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15.PESTEL Analysis:
15.1. Political factors:
Coca Cola products are at the mercy of the FDA. They must meet regulations, given by the
government, to put products on store shelves.
Changes in established laws may prevent Coca Cola from distributing drinks. Accounting, taxes,
internal marketing’s, and changes in labor laws can affect Coca Cola in this way.

15.2. Economical factors:

Coca Cola products are distributed to hundreds of countries. These countries have different
customs, cultures, tastes, and desires. Coca Cola has changed and updated how it handles its
products by creating new flavors to accommodate these customers.
They have $80+ billion worth of equity. The majority of that comes from the beverage industry.
And their income (roughly 70%) is from countries outside the United States.
But people are looking for healthy alternative drinks. Coca Cola is making minimal efforts to
move in that direction.

15.3. Social factors:

Coca Cola distributes the majority of its products in cultured countries. And they meet the
demands of these customers. In Japan, they created 30 alternative flavors to appeal to Japanese
consumers. In China, they are making similar efforts.
But in America, people focus on their health. They’re swapping sugary drinks for waters and
teas. Because these drinks are better for their health. Coca Cola needs to respond to these needs
by creating a product the healthy American public will respond to.

15.4. Technological factors:

Machinery have helped Coca Cola manufacture products in better and higher quantities. Coca
Cola has factories in Britain with top of the name machinery to ensure fast delivery times and
quality product development.
Coca Cola has used social media technology to connect with audiences. When they launched
their name campaign — putting real names on their bottles — customers lined up to take photos
of bottles with their name on it. These photos trended on social media sites like Facebook,
providing social proof and encouraging Coca Cola sales.

15.5. Environmental factors:

Coca Cola is affected by water accessibility. Water is necessary for soft drink development. But
should something happen, like climate change, the company may be under fire.
This affects their competitor, Pepsi, as well. But since Coca Cola’s products are primarily soft
drinks, with a water accessibility issue, the company will suffer losses.
Coca Cola has to adhere to environmental laws as they manufacture their products. If anything is
amiss, it can affect how they distribute products — or stop production completely.
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Additionally, they can take advantage of humid climates who would enjoy Coca Cola drinks as a
means to cool down. This works well in developing countries where Coca Cola would have very
little “premium” competition.

15.6. Legal factors:

Coca Cola retains all rights related to their business, including past and future products
developed with a patented process.

16.SWOT Analysis of Coca Cola:

16.1. Strengths:

16.1.1. Brand Equity:

Interbrand in 2011 awarded Coca cola with the highest brand equity award. Coca cola
with its vast global presence and unique brand identity is definitely one of the
costliest brands with the highest brand equity.

1. Company valuation :

One of the most valuable companies in the world, Coca cola is valued around 79.2 billion
dollars. This valuation includes the brand value, the numerous factories and assets spread
out across the world and the complete operations cost and profit of Coca cola.

2. Vast global presence :

Coca cola is present in 200 countries across the world. Chances are, any country that you
go to, you will find coca cola present in that market. This vast global presence of coca cola
has also contributed to the building of the mammoth brand name.

3. Largest market share :

There are only 2 Big competitors in the beverage segment – Pepsi and Coca cola. Out of
these 2, coca cola is the clear winner and hence has the largest market share. Amongst all
beverages, Coke, Thums up, Sprite, Diet coke, Fanta, Limca and Maaza are the growth
drivers for Coca Cola.

4. Fantastic marketing strategies :

Coca cola unlike Pepsi always tries to win peoples heart. Where Pepsi’s target is
continuously changing, and is targeted towards youngsters, Coca cola targets people of all
ages. The targeting is also done by celebrities who are well liked – for example – Amitabh
Bacchan, Sachin tendulkar, Aishwarya Rai, Aamir Khan etc
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5. Customer Loyalty :

With such strong products, it is natural that Coca cola has a lot of customer loyalty. The
products mentioned above like Coca cola and Fanta have a huge fan following. People will
prefer these soft drinks over others. Because of the good taste of Coca cola, finding
substitutes becomes difficult for the customer.

6. Distribution network :

Coca cola has the largest distribution network because of the demand in the market for its
products. On the other hand, due to this successful distribution network, Coca cola has
been able to command such a high market presence.

16.2. Weaknesses
1. Competition with Pepsi :

Pepsi is a thorn in the flesh for Coca cola. Coca cola would have been the clear market
leader had it not been for Pepsi. The competition in these two brands is immense and we don’t
think Pepsi will give up so easily.

2. Product Diversification is low :

Where Pepsi has made a smart move and diversified into the snacks segment with products
like Lays and Kurkure, Coca cola is missing from that segment. The segment is also a good
revenue driver for Pepsi and had Coca cola been present in this segment, these products would
have been an additional revenue driver for the company.

3. Absence in health beverages :

If you watch the news, you would know that obesity is a major problem affecting people
nowadays. The business environment is changing and people are taking measures to ensure that
they are not obese. Carbonated beverages are one of the major reasons for fat intake and Coca
cola is the largest manufacturer of Carbonated beverages. The inference is that the consumption
of beverages in developed countries might go down as people will prefer a healthy alternative.
4. Water management :
Coca cola has faced flak in the past due to its water management issues. Several groups have
raised lawsuits in the name of Coca cola because of their vast consumption of water even in
water scarce regions. At the same time, people have also blamed Coca cola for mixing pesticides
in the water to clear contaminants. Thus water management needs to be better for Coca cola.
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16.3. Opportunities:

1. Diversification :
Diversification in the health and food business will improve the offerings of Coca cola to their
customers. This will also ensure that they get better revenue from existing customers by cross
selling their products. The supply chain which is distributing their beverages can also distribute
these snacks thereby sharing the load of Supply chain costs.
2. Developing nations :
Although developed nations have a high presence of Coca cola, these countries are slowly
moving towards healthy beverages. However developing countries are still being introduced to
the delight of carbonated drinks and soft drinks. Countries like India which are developing and
have a hot summer, find the consumption of cold drinks almost doubled during summers. Thus
the higher consumption in developing environment’s can be a good opportunity to capitalize for
Coca cola.
3. Supply chain improvement –:
Supply chain can be a major cost sink hole with the transportation costs always rising. Coca
cola’s complete business is based on transportation and distribution. There will always be
possible improvements in this area. Thus Coca cola should keep strict watch on its Supply chain
and keep improving to bring the cost down.
4. Market the lesser selling products:
In the product portfolio of Coca cola, there are several products which have not found acceptance
in the market. Coca Cola needs to concentrate on the marketing of these products as well. It is
understood that Coca cola has made several expenses to launch these products. Thus, the
marketing and subsequent rise of sale of these products will help revenue of Coca cola.

16.4. Threats:

1. Raw material sourcing:

Water is the only threat to Coca cola. The weakness of Coca cola was the suspected use of
pesticides or vast consumption of water. However, the threat here is that water scarcity is on the
rise. With the climate changing, and regions of various countries facing scarcity of water, sooner
or later someone might raise fingers on beverage companies. Thus, Water sourcing is
an axe which can fall anytime on the head of Coca cola. If water is limited or rationed, Coca cola
can experience a major downfall in their revenue and capacity of distribution. The same can
affect its arch rival Pepsi as well.

2. Indirect competitors:
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Coffee chains like Starbucks, Café coffee day, Costa coffee are on the rise. These chains offer a
healthy competition to Coca colas carbonated drinks. They might not be a big competition for
Coke, but they do give a dent to its beverage market. Similarly, health drinks like Real
and Tropicana as well as energy drinks like Red bull and Gatorade are stealing away the market
share indirectly.

17. Domestic product:

Gourmet cola

18.The beginning:
In the area of Ich'chra, Lahore, GOURMET took start with a small shop. The concept of fresh,
healthy and hygienic food in affordable prices achieved quick popularity among bakery
customers. The bakery products for breakfast were provided in limited areas, but because of the
over whelming support of our customers, GOURMET planned to expand.

19. Planting the idea:

Chaudhary Muhammad Nawaz Chattha, the Founder and Chairman of GOURMET, started his
journey with the unique concept of hygienic and healthy food. He made his own coat of arm for
trademark and that is simply a love for fine food…! We see his journey starts in fact from the
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day he planted the idea of bakery products at Shezan Industry, where he had served his best for
almost eleven years in the same field and got his expertise.

20.Vision:
The vision of GOURMET, throughout these years was to provide a quality food in affordable
prices. That's why where ever the market inflation went GOURMET never broke its rules. The
Vision of Mr. Ch. Muhammad Nawaz was higher than any crisis. Since he belongs to religious
family sincerity and integrity has been his code of conduct. He has strong believe in Allah that
HE is providing whatever he has. His entire Life is an example of it. Although now the care
takers of the GOURMET industries are his sons. But his vision remains unchanged over the
time.

21.Mission:
In this age of rapidly changing life styles consumers are driven to change their eating habits
constantly. GOURMET responds to their desires and extended its existing product line.
GOURMET has built a huge network of retail shops all over Lahore and now stepped towards
Faisalabad. We established International level technology based factories and laboratories for
quality maintenance.

Objectives and Issues

First Year Objectives:

During the initial year of Gourmet Cola we plan to increase sales by 20%.

Second Year Objectives:

Our second year objectives are to increase sales by 50% and to be in the top market

Current Marketing Situation:

The soft drinks market in Pakistan enjoyed dynamic growth over the review period in both
volume and current value terms. Carbonates dominate the market in both the on-trade and off-
trade with the lion's share of sales. Carbonates have become part of the culture in Pakistan and
multinational companies have maintained their standards over the years to provide consumers
with high-quality carbonated drinks. Around 120 million sales of beverages takes place in
Pakistan annually.
Gourmet was founded in 1987, by Mr. Nawaz Chatta, in Lahore and started its operations as a
bakery and confectioner shop. It has diversified into a versatile food company over 25 years and
has since then started manufacturing many of their own food products. Gourmet Cola is one such
venture of Gourmet. Since the emergence of Gourmet bakers, it has shown explosive annual
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growth of more than 25% in its business. Gourmet has limited their outlets to Lahore only, until
recently. Now Gourmet is spreading its company and has opened branches in Gujranwala and
Faisalabad.
Beverages, nowadays, have become a part of every household. Gourmet has kept this demand in
mind and has decided to launch its own beverages line. But the competition in this market is very
intense. Two major beverage companies have taken over the market i.e. Pepsi Cola and Coca
Cola. Both these companies share about 85% of the market share among themselves. Gourmet
Cola must target specific market segments with their range of beverages so as to gain more
consumers

Marketing Strategy
Gourmet Cola's marketing strategy is based on product positioning. Our primary consumer target
market is low to middle class consumers who cannot afford beverages at a high cost on a daily
basis. Our secondary consumer target market consists of mainly youngsters who would want to
get low rice beverages in easy to carry bottles.

Positioning:
Gourmet Cola is being positioned being very low in costs compared to other soft drinks. It
promises to provide quality taste at such low prices. Gourmet Cola is also available in six
different flavors which make it different than other beverages in the market.

Product Strategy:
Gourmet Cola is going to be available in six different flavours. These flavours include Cola,
Malta, Lemon Up, Apple and Ice Cream Soda. As no other beverage company offers these
flavours, Gourmet Cola can attract more consumers. Gourmet Cola is going to be available in
plastic bottle sin sizes ranging from 300ml to 2.25 liters. The logo of Gourmet Cola will follow
the style of the original Gourmet logo, so as to make consumers more comfortable with the
product.

Pricing Strategy:
Gourmet Cola is going to available in low prices with the prices ranging according to the size of
each bottle. Price of the smallest bottle i.e. 300 ml will start from Rs. 25 and will continue to Rs.
60 for 2.25 liters. The price of the 1.5 liter bottle will be Rs.40. these prices are very low
compared to other beverages. The company has implemented these prices to attract more
consumers and to break the stronghold share of Pepsi and Coca Cola in the market.

Distribution Strategy:
Gourmet Cola's distributions strategy for the first year is very selective. Gourmet Cola will only
be available in Gourmet outlets at first. This is to make the consumers more familiar with the
brand. After this Gourmet Cola will be distributed to different cities in departmental stores and
service stations. Gourmet Cola will also be distributed to road side kiosks. These kiosks are very
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convenient for the low income class which we are targeting. We also plan to arrange special
payment terms for retailers that place volume orders.

Marketing Communications Strategy:

Gourmet Cola will advertise its drinks through different means. We will use advertisements as a
basic tool of advertisement. Through advertisements on radios and televisions we will be able to
target out target market. Through the use of posters and paints company trucks, we can advertise
our products. Gourmet outlets are an effective medium at which we can carry out our
advertisements.
Gourmet Cola can also give incentives to outlets which makes good sales. Offering discounts to
retailers will help maintain good relationships with them and will increase sales.
4pcs analysis:
Product
GOURMET took the challenge of making Pakistan’s biggestin-house Beverages Industry and
built under the supervision of International Team.The thirst-quenching drinks of GOURMET are
available in Cola, Malta, Lemon up, Apple and Ice-cream Soda, in six different sizes from 300ml
to 2.25 liter.

Price
Pricing strategies and tactics
In start of the business we focus on two main price strategies which is penetration.
Penetration pricing
In penetration pricing we set low price as compare to our competitors so that we can attract
customers toward our product
Discounts
In this pricing stratigy we give special discount to our customer on special days like Eid,
Ramzan etc

Place Distribution
Gourmet cola will only be available in Punjab at first time
 Pull strategies
A pull strategy is where interest for a specific product or service is created within a
target audience that then demands the product from channel partners. This causes the
product to be "pulled" through the manufacturer's sales channel. Pull strategy is one of
several types of channel strategies.
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 Push strategies
A channel partner term that is used to describe how products and services move through
channel partners to the consumer. A push strategy uses marketing channels, such as
trade promotions, to "push" a product or service through to the sales channel. Push
strategy is one of several types of channel strategies.

Promotion
 Electronic Media
 NEWSPAPERS
 Bill boards & sign Boards
 Patriotism
 Internet Advertising

SWOT Analysis
SWOT Analysis will analyze the internal environment (Strengths and Weaknesses) and the external
environment (Opportunities and Threats) of Gourmet Cola.
The SWOT Analysis of Gourmet Cola is as follows:

Strengths:
Low Price. The greatest strength of Gourmet Cola is its price. Gourmet Cola will be priced Rs.45 per 1.5 liter.
This price is very low compared to its two main competitors; Pepsi and Coca Cola. These companies sell their
drinks at Rs.70 per 1.5 liter.
Variety of flavours available; Cola, Malta, Lemon Up, Apple and Ice Cream Soda.
Variety of sizes. Gourmet Cola will be available in varying sizes; 300ml,0.5 ltr, 1.5 ltr, 2.25 ltr.
Provides quality taste.
Gourmet Cola will be available in consumer friendly plastic bottles.
These drinks will be available at every Gourmet store easily.
Gourmet Cola has the financial backing of Gourmet-Gourmet is one of the strongest brand names in the cities
it operates in.

Weaknesses:
Gourmet has not opened many branches outside Lahore and thus is not known by people who live in cities far
away. Thus Gourmet Cola will not be preferred by them.
Gourmet is not focusing properly on promotion tools such as advertisements. This will affect the sales of their
products.
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Gourmet cola will only be available in plastic bottles. It will not be available in tin packs or glass bottles. This
can result in many youngsters turning away from Gourmet Cola.
Consumers view Gourmet as a bakery and grocery store. Many consumers would hesitate to buy Gourmet
Cola due to this problem.

Opportunities:
The soft drinks market in Pakistan enjoyed dynamic growth over the review period in both volume and current
value terms. Gourmet Cola can take advantage of this growth.
The government of Pakistan has reduced excise taxes to encourage soft drinks manufacturers. Gourmet Cola
can continue to provide their products at a low price.
Gourmet has many cities to capture and through this they can increase the distribution of Gourmet Cola.
Gourmet is a well-known brand and they can use this to their advantage for selling Gourmet Cola to retailers.
More the retailers, more the sales.

Threats:
One of the major threats that Gourmet Cola has to face is in the form of its two competitors; Pepsi and Coca
Cola. These two companies have a very strong hold in the market and breaking their status is going to be very
difficult by Gourmet Cola.
Gourmet needs to market their company in cities where they do not have outlets to make consumers more
aware about their product.
Pepsi and Coca Cola have a huge advertising campaign which needs to be encountered by Gourmet Cola.

Recommendation:
 Distribution channel strong
 Batter taste
 Focus on elite class
 Advertising strong
 Increase product line

I recommended gourmet cola as a value able investment opportunity

Gourmet cola utilize corporate strategies that capitalize off their strengths and work to minimize
their weakness
Gourmet cola has thus far transcended the bounds of common expectation and eagerly look to
the future achive new feats