-2-

Brand Audit
Of
Coca Cola

The Final Project of Brand Management

 -3-

GROUP NAME:

INNOVATORS

SUBMIT TO:
PROF. AYESHA

SUBMIT BY:
PIRZADA JUNAID AHMED 6117
FURQAN TARIQ 6114
ASIF SAJJAD 6136
IRFAN MURAD 6162
MASOOD MANZAR 6174
HASEEB NASEER
MUHAMMAD RIZWAN 6227
ASAD ALI 6209
 -4-

BACHELORS OF BUSINESS ADMINISTRATION

TABLE OF CONTENTS

Topics Page #
Introduction
Vision of coca cola 12
Mission Statement of coca cola 13
Value of coca cola 13
Objective of coca cola 14
Goal of coca cola 14
History of Coca Cola 15
Coca Cola in Pakistan 16
Today of coca cola 17
Market Conduction 18
Market Position 19
Organizational Hierarchy 20
Board of directors 21
Financial data 23

Business Portfolio and Growth Strategies of Coke

Portfolio 24
Portfolio analysis 27
SWOT analysis 29
Five forces applied on coca cola 32(a,b)
Growth strategy 33

Marketing Environments
Microenvironment 36
Macro environment 40
Competitive environment 44
Rivals \ competitor 44
Competitive advantage 45

Market Segmentation & Positioning Strategy

Market segmentation 48
Coke segmentation strategy 48
Positioning 51

Product Strategy
Level of coke as a product 53
Branding 53
 -5-
Product Line Decisions 54

Advertising
Advertisement Objective 56
Setting of advertising budget 56
Advertising Strategy 56
Advertisement Media 56

Recommendations & Conclusions 58

 -6-

DEDICATION

This report is dedicated

to my beloved parents,
Who educated me and enabled me
to reach at this level.
 -7-

ACKNOWLEDGEMENT

We think if any of us honestly reflects on who we are, how we got here, what we
think we might do well, and so forth, we discover a debt to others that spans
written history. The work of some unknown person makes our lives easier
everyday. We believe it's appropriate to acknowledge all of these unknown
persons; but it is also necessary to acknowledge those people we know have
directly shaped our lives and our work.

First of all we would like to thank our teacher Prof. Ayesha for their guidance
through out the semester.

Then we would like to thank our friend and brother Mr. Zeeshan Anjum for
providing us the information that was required for completion of this project.
 -8-
Executive Summary:

T
he Coca-Cola Company is a global business enterprise and one of
two main soft drink sellers. Study of this report helps the reader to
know that how Coca-Cola has achieved its current market position.
This report enlightens those factors that company has adopted during its
long journey of 52 years in Pakistan. This report includes the introduction,
micro and macro environment factors affecting coke, segmentation and
positioning strategy and advertising methods that company uses and much
more.
The reader of this report can expect that after having complete study
he/she can certainly have a broader view of the operations of Coca-Cola in
Pakistan. Like who are the competitors, what are the problems that
company facing in expanding its business etc. In Pakistan Coca-Cola is
very much a local business and company has provided this region with 51
successful years of service. The dedicated service that company has been
providing has made the company the proud holder of several most widely
recognized brands in the world. This report study gives reader the idea
about operation of coke in Pakistan.
 -9-

Vision of coca cola

To achieve sustainable growth, we have established a Vision with clear goals:

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

• Planet: Being a responsible global citizen that makes a difference.

• Portfolio: Bringing to the world a portfolio of beverage brands that

anticipate and satisfy peoples' desires and needs.

• Partners: Nurturing a winning network of partners and building mutual

loyalty.

Profit: Maximizing return to shareowners while being mindful of our overall

responsibilities
 - 10 -

MISSION STATEMENT OF COCA-COLA:

M
ission statement is a statement of organization’s purposes that
what it wants to accomplish. In order to achieve mission of
increasing market share and maintaining good relations with our
customers all over the world, we wish to create value for all the constraints
we serve, including our consumers, our bottlers, and our communities. The
Coca Cola Company creates value by executing business strategy guided
by four key beliefs:

• Customer is king; Customer demand drives everything we do.

• Brand Coca Cola is the core of our business.
• We will serve consumers a broad selection of the nonalcoholic
ready-to–drink beverages they want to drink through out the day.
• We will be the best marketers in the world.

Everything we do is inspired by our enduring Mission:

• To Refresh the World...in body, mind, and spirit.

• To Inspire Moments of Optimism...through our brands and our actions.
• To Create Value and Make a Difference...everywhere we engage.

VALUE OF COCA COLA

We are guided by shared Values that we will live by as a company and as

individuals:

• Leadership: “The courage to shape a better future”

• Passion: “Committed in heart and mind”
• Integrity: “Be real”
• Accountability: “If it is to be, it's up to me”
• Collaboration: “Leverage collective genius”
• Innovation: “Seek, imagine, create, delight”

Quality: “What we do, we do well”

 - 11 -

OBJECTIVE OF COCA COLA

The company has sales based objective .Every thing else (marketing plan,
advertising plan, production etc.) is derived from this objective.
Currently the company‘s objective is to

“Increase the volume of sales up to the maximum level as much as

possible during the current fiscal year.”

The company sets its objective keeping in view the past

performance, Historical trends, current market position, economic
condition, macro environment and micro environment factors, social
values, market size and growth rate ,future expectations and predictions.

GOALS OF COCA COLA

All CCBPL plants setup their own goal to achieve the objective.
The company goal is

“To increase sales volume and gain market leadership in Lahore.”

 - 12 -

BRAND INNVENTORY
 - 13 -

HISTORY OF COCA-COLA:

C
oca-Cola Enterprises was established in 1986 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 it’s beginning to 1886, when an
Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-
Cola syrup for sale. 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 adjusted prices 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 part of the merger, the senior
management team of Johnston assumed responsibility for
managing the Company, and began a dramatic, successful
restructuring in 1992.Unit case sales had climbed to 1.4 billion,
and total revenues were $5 billion at the year-end. Presently The
Coca-Cola Company is the largest soft drink company in the world. Every
year 800,000,000 servings of just "Coke" are sold in the U.S alone.
 - 14 -
C OKE H ISTORY IN P AKISTAN

“To provide Coca-Cola at arms ‘length”

T
he Coca-Cola Company began operating in Pakistan in 1953. Coke,
Fantail and Sprite are the brands with whom Coca-Cola is operating
in Pakistan. The Coca-Cola System in Pakistan operates through
eight bottlers, four of which are majority-owned by Coca-Cola Beverages
Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad,
Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan and Lahore. The
remaining two plants, independently owned, are in Rawalpindi and
Peshawar. The Coca-Cola System in Pakistan serves 70,000
customers/retail outlets. The Coca-Cola System in Pakistan employs 1,800
people working constantly for the company. During the last two years, The
Coca-Cola Company in Pakistan has invested over $130 million (U.S) and
coke has successfully provided 51 years of dedicated service to its
customers in Pakistan. Since the beginning of Coke Company the firm has
been continuously changing its slogans and that’s a very creative idea to
get the attention Of the customers.

. Here we would like to include some of the popular slogans of coke since
the coke journey started.
• 1886 Drink Coca-Cola
• 1908 Get the genuine
• 1923 Enjoy thirst
• 1934 When it's hard to get started, start with a Coca-Cola
• 1942 The only thing like Coca-Cola is Coca-Cola itself
• 1956 The friendliest drink on earth
• 1963 Things go better with Coke
• 1993 Always. Coca-Cola
• 2001 Life is Good
• 2003 Jo Chaho Ho Jaye Coca Cola Enjoy
• 2004 Flight Of Delight
• 2005 Galay Delicious Taste
• 2006 Thanda matlab coca cola
• 2007 khaly pily jila coca cola
• 2008 Aja jashan mena ly
 - 15 -
Today

Today CCBPL is operated directly under the supervision of the Coca-Cola

International based in Atlanta Georgia State___ USA .It owns 10 plants all
around in Pakistan.

► Karachi.

► Lahore.

► Gujerwala

► Rawelpindi

► Peshawar

► Hyderabad

► Faisalabad

► Sialkot

► Rahimyarkhan

► Multan.

► Sahiwal
 - 16 -
MARKET CONDITION

MARKET POSITION WORLDWIDE :

60%

Coca-cola
Pepsi
Other
30%

10%

MARKET POSITION IN PAKISTAN: -

., 10%

., 36%
Coca-Cola
Pepsi
Others

54%
 - 17 -
MARKET POSITION

World wide on global level Coca-Cola is the most popular brand and market
leader and carry 60% of market share.

In Pakistan due to above reasons Coca –cola is the market follower but still in a
very strong and stable position holding 36% of the local market share with a
growing and increasing market share every year.

Growth rate in market share:

unit case volume 2007 vs. 2006 GROWTH

2007vs 2006 5-Year Net operating

Growth Annual Operating income
Growth Revenues
Africa 10% 6% 16% 6%

Eurasia 16% 13% 24% 38%

European 3% 2% 14% 16%

Union
Latin 9% 6% 24% 22%
America
North (1%) 1% 11% 1%
America

Pacific 7% 4% 7% 3%

Bottling 64% N/A 53% 750%

Investments
Worldwide 6% 4% 20% 15%
 - 18 -

ORGANIZATIONAL HIERARCHY:
Organizational hierarchy of Coke with respect to marketing department is
as
Chairman
Board of Governors

Vice Chairman

Executive Vice Presidents

Vice Presidents

Production Marketing Finance

Manager Manager Manager

Assistant MKT Assistant MKT Assistant MKT

Manager 1 Manager 2 Manager 3

Supervisor Supervisor Supervisor

Salesmen
 - 19 -

Board of Directors
(As of February 21, 2008)

(Back row, left to right)

James B. Williams
Retired Chairman of the Board and Chief Executive Officer,
SunTrust Banks, Inc.

Alexis M. Herman
Chair and Chief Executive Officer, New Ventures, LLC

Sam Nunn
Co-Chairman and Chief Executive Officer, Nuclear Threat Initiative

Donald R. Keough
Nonexecutive Chairman of the Board, Allen & Company Incorporated,
And Nonexecutive Chairman of the Board, Allen & Company LLC

James D. Robinson
General Partner, RRE Ventures

Herbert A. Allen
President and Chief Executive Officer, Allen & Company Incorporated
 - 20 -
Ronald W. Allen
Advisory Director, Former Consultant and Advisory Director, and
Retired Chairman of the Board, President and Chief Executive Officer,
Delta Air Lines, Inc.

Peter V. Ueberroth
Investor and Chairman, Contrarian Group, Inc., and
Nonexecutive Co-Chairman, Pebble Beach Company

(Front row, left to right)

Bary Diller
Chairman of the Board and Chief Executive Officer,
IAC/InterActiveCorp, and Chairman of the Board and
Senior Executive, Expedia, Inc.

Cat hleen P. Black

President, Hearst Magazines
Donald F. McHenry
Distinguished Professor in the Practice of Diplomacy and
International Affairs, Georgetown University

E. Neville Isdell
Chairman of the Board and Chief Executive Officer,
The Coca-Cola Company
Not pictured:

Jacob Walenberg
Chairman of the Board, Investor AB, and Vice Chairman of
Skandinaviska Enskilda Banken AB

1 Audit Committee
2 Committee on Directors and Corporate Governance
3 Compensation Committee
4 Executive Committee
5 Finance Committee
6 Management Development Committee
7 Public Issues & Diversity Review Committee
 - 21 -

BUSINESS PORTFOLIO AND GROWTH

STRATEGIES OF COKE
 - 22 -
PORTFOLIO:

T
he businesses & products that makes up the company constitutes
business portfolio. Coca Cola Company has a vast portfolio & it has a wide
range of products. Here we will be focusing on the different flavors of the
Coke only.

1. Coke Classic:

It was introduced in the 1886 by a pharmacist & was sold at a

small scale. It was not a carbonated drink at the time of the
launch but further development made it a fizzy drink & people
start taking it as a beverage.

2. Vanilla Coke:

Smooth taste of vanillas was added to Coke to give a

refreshing feeling. Since, it was Vanilla coke’s debut in 2002.
Millions of people were curious what coke have brought for
them. It was a refresher & soother for the thirst quenchers.
Still, it was not a big success like Coke Classic.

3. Cherry Coke:

Cherry coke is one of the favorite colas taste with a blast of

cherry. This flavor was introduced for the cherry lovers so they
can have cherry wherever they & whenever they are. Some
things never change, other things get better. Like Cherry Coke.

4. Caffeine free Coke:

Classic is what you really want to have. Caffeine free coke fits
right in with your plan. It’s true refreshment, minimize the
caffeine input to your body, & gives a refreshing effect.
 - 23 -

5. Diet Coke/Coca Cola Light:

Diet Coke was launched in 1982 which was the beginning

decade of the fitness craze. A gala reception at the radio city
Hall at N.Y.C celebrated the new drink on the scene. In just 1
year after its introduction it became the largest selling drink in
America. It was one of the ideal drinks for the very fitness &
health cautious people. Further flavors were added to the
portfolio of diet coke which attracted the fitness crazy people to
check the taste of it.

a. Caffeine free Diet Coke:

In 1983, Caffeine free diet coke was introduced for the people
who were facing problems with the amount of caffeine present
in the diet coke. The diet coke was ecoming more ideal for them
as it was with less sweet & no caffeine.

b. Diet Cherry Coke:

Then the new Diet Cherry Coke was introduced a new low
calorie flavor craze began. Coca Cola company promoted Diet
Coke with penguins & celebrities in its advertisement. They
were having the slogans like “Just for the Taste of it” & “The
Move is on the Diet Coke”. It was becoming a big hit.
c. Diet Coke with Lemon:

When in 2001 the Diet Coke with Lemon was offered a new
citrus taste sensation became a hit. It gave the people chance
to have the taste of sweet coke with citrus lemon flavor.

d. Diet Vanilla Coke:

When in 2002 the Diet coke was celebrating its 20th birthday
Diet Vanilla coke was the product, which company came up
with & it was birthday gift of Diet Coke to its consumers.
 - 24 -

E. diet Coke with Lime:

2004 was the year when Coca Cola company came up with Diet
Coke with Lime, which brought a juicy new flavor of coke to its
consumers.

PORTFOLIO ANALYSIS:

A
tool by which the management identifies & evaluates the various
business that make up the company. Generally there are two approaches
of doing the portfolio analysis & Coca Cola’s portfolio analysis is done with
both the methods & the results are as follows:

1. BCG (BOSTON CONSULTING GROUP) APPROACH:

In the BCG approach, a company classifies all its Bus according to the growth
share matrix.

Coke is one of the main product line of the Coca Cola company. It is the one
which is giving maximum revenues to it by different products in this line. Here we
have classified some of its major products in the BCG matrix on the basis of their
fame & liking of the people.
 - 25 -

 Star:

Coke Classic is the basic product through which the Coca Cola company
got the fame. It is one product, which gives the maximum revenue

from all over the world. It is one flavor, which has the maximum
consumers all over the world. Coke has already worked a lot on it by
launching new flavors in it, but still it is a product they can turn as famous
as coke Classic.

 Cash Cow:

Coke Classic is one product, which the Coca Cola company can never
think of stop producing. It is the one which make the coke company a
huge success, it was one product which gives billions of dollars as
revenue from world over. Whenever the company thinks of launching its
product in a country the first

product they launch is coke classic as they know that if don’t work here
then nothing else can.

 Question Mark:

A product that is still not a big hit as it haven’t consumed much time yet.
All the new flavors of coke are the examples of these question marks. In
the above BCG matrix, Lime Coke & Cherry Coke are the two products
mentioned as the question marks as they have not taken much time yet to
get a hold of market & not even the large percentage of the people have
tasted it. So it needs time to be fully tested by the company & the
company needs to think whether it should continue the production or
should divert to something new.

 Dog:

A product that has not worked good or a product which has been a source
of loss. Vanilla coke is one product that was not a big hit. Even its not a
long period which Vanilla coke has consumed but still there are signs that
it wont be a success. So its better for the company to get rid of it.
- 26 -
 - 27 -

COMMUNICATION,
DISTRIBUTION AND PRICING
STRATEGY
 - 28 -

MARKETING
ENVIRONMENTS
 - 29 -
Marketing Environments:

T
he forces outside marketing that affect marketing management ability to
develop and maintain successful relationships with its target customers.
There are two types of marketing environments that may affect any
company’s operation, Microenvironment and the Macro environment.

Micro environment factors affecting coke:

First we consider the microenvironment factors.

1=Customers:

Recent survey shows that coke is the only product in the world with which more
than 85% of the population is well aware of. All the companies have to keep
updated study of their customers and in case of coke the company has always
maintained excellent customer retention. Value of customers for coke can be
understood by these factors that coke spends lot of efforts (financial and human
resource) on customer research. For example, Coke knows through market
survey that we put 3.2 ice cubes in a glass and one million of US population
drinks coke with breakfast every day. This is how coke has been favorite drink of
customers for centuries.
Coke customers vary massively in terms of age. From kids to youngsters, from
youngsters to elders and from elders to older, coke has always captured high
customer attention from decades. We can divide coke customers in different
categories.

I: Consumer Market:

This is the group of consumer from where coke purchases are at the highest
level because consumer market includes individuals and households.
Households mostly buy coke for daily use in large number and purchasing by
individuals is also the case of repeat purchase. Healthy consumer market is a big
advantage for the company.

II: Reseller Market:

Reseller market of coke is very large all over the world. This is the market, which
buy the product from company and resell it at profit. In Pakistan McDonald is the
biggest example of reseller of coke. McDonald purchases coke from the
company and sell it with each fast food deal served at restaurant. The survey
shows that each branch of McDonald located in Lahore sells approximately 500-
700 liters of coke daily to its customers.
 - 30 -

III: International Market:

International market consists of those buyers who are in other countries. Coke is
worldwide known product and every country where coke is been sold has a
manufacturing unit of its own. Similar is the case in Pakistan. Coke
manufacturing plants are in Karachi, Hyderabad, Sialkot, Gujranwala,
Faisalabad, Rahimyar Khan, Multan and Lahore and these plants are producing
the drink for the local use. So in Pakistan there are no international buyers of
coke.

Characteristics affecting Consumer Behavior:

2=Competitors:

All over world there are two soft drink giants, Coke and Pepsi. The competition
between two companies has always been neck to neck. Both these companies
keep on try to take lead in terms of pricing, packaging, promoting and placing.
Pepsi is a world leader in convenient foods and beverages, with revenues of
about $27 billion and over 143,000 employees. Pepsi brands are available in
nearly 200 countries and territories. As we compare the products of these two
competitors we come to know that Coke has two flavors in Pakistan that is coke
plain and coke diet where as similar is the case with Pepsi as only these two
flavors are available of Pepsi as well. So in this perspective both parties have
equal strength. However competition is at its peak in terms of pricing. So many
times we see that as soon as Pepsi lower downs the price of 1 liter pet bottle or
disposable drink, Coke adjusts its price right away so that they may not loose
their customers. Although both these brands have sufficient amount of buyers all
over the world but still both the companies strive to achieve the market leader
position. Coke even after 99 successful years in US still trying best to be more
innovative. Coke manufacturers spent two years and 4 Million $ on research
before settling on a new formula and finally came up with “sweeter new coke”
and later on with “cherry coke”. Companies make all these efforts to give more
customer value and satisfaction than its competitors.
In Pakistan recently a few other beverages are also introduced such as Mecca-
Cola and Amrat-Cola but currently these soft drinks are not a threat for coke due
to their very low market share and secondly due to brand loyalty of customers for
coke.

3=Intermediaries:

Marketing intermediaries help the company to promote, sell and distribute its
goods to the end users. Intermediaries include resellers, distribution firms and
marketing agencies. When we talk about coke, Coke Company in Pakistan as
 - 31 -
well as abroad has recognized the importance of working with their
intermediaries. For example recently Coke signed ten years deal with US based
company Wendy that it will provide coke to all the fast food chains located in US.
Wendy in this case is a big example of intermediary for coke. In Pakistan other
than various resellers, McDonald is one big party that is reseller of coke. Similarly
there are thousands of private agencies (intermediaries) that are working for
coke to distribute the product to the shopkeepers and retailers all over the
country.
Currently there are 46 distributors working in Lahore. Coke Company uses two
techniques for distribution, direct distribution and indirect distribution. In direct
distribution company uses no agencies or middlemen to distribute the soft drinks
but company has its own system of distribution that include Company’s trucks
and labor as well. The other way is indirect distribution in which company opts for
various distributors that take the product from factory to the retailers and
resellers.
 - 32 -

Market Segmentation &

Positioning Strategy
 - 33 -
Market segmentation:

D ividing a market into distinct groups with distinct needs, characteristics, or

behavior who might require separate products or marketing mixes.
In evaluating different market segments, a firm must look at three factors:

• Segment size
• Segment growth
• Segment structural attractiveness and company objectives and resources.

There is no single way to segment a market. The market has to try

different segmentation variables, alone and in combination, to find the best way
to view the market structure.

Target Marketing:

This is the process of evaluating each market segment’s attractiveness and

selecting one or more segments to enter.
After evaluating different segments, the company must now decide which and
how many segments it will target, because buyers have unique needs and wants,
a seller could potentially view each buyer as a separate target market. Ideally,
then, a seller might design a separate marketing program for each buyer. There
are three types of market segments.

• Undifferentiated marketing. (Mass Marketing)

• Differentiated marketing. (Segmented Marketing)
• Concentrated marketing. (Segmented Marketing, small segment)

Coke segmentation strategy:

Coca cola servers its products using mass marketing technique, which obviously
falls in undifferentiated marketing, and undifferentiated marketing means no
segmentation, but there are minor factors on which we can say that the coke
segments its products and then targets the customers somehow. These factors
are as follows.

Geographic Segmentation:

Internationally:

Coke segments its products country wise and region wise, here the most
important thing is the taste and the quality, it varies according to the taste and the
income level of the people in that country, i.e. Third world counties are given low
quality taste.
 - 34 -
Climatic:

In coke marketing, main idea is to serve it cold, so we can say that, they focus
more on hot areas of the world, i.e. middle east etc and there sale increase in
summer.

Locally:

In Pakistan the coke segments more in urban and suburban areas as compare to
rural.

Demographic Segmentation:

Age:

Internationally coke has segments the small children introducing tastes like
vanilla, lime and cherry, they focus children from 4-12. Coke specifically target
more young people than older.

Family type:

Coke introduces its economy pack, and that’s how they focus family and
groups.

“A question to ‘Amer pasha’ Country Manager”

Question:

Pepsi is targeting exactly the same market, and music is also a part of their
brand image, so where does the differentiation lie in your approach?

Answer:

Pepsi’s brand personality is different, ours is about togetherness, about ‘us’.

Coke will always show activities, where people get together to enjoy moments of
togetherness with our brand. Our research indicates that youngsters love to get
together, and it is when they are enjoying themselves, that will consume coke.
For Pakistani youth, socializing with friends and family is ‘core’ behavior in their
lives. Coke’s brand personality is also about togetherness.

Income:

Coke segments different income levels by packaging. Like for small income
people it has small returnable glass bottle, for middle people it has non
returnable bottle and for higher income people it has coke tin.
 - 35 -

Psychographics Segmentation:

All psychographics variables the social class, lifestyle, occupation, level of

education and personality, coke segments everyone, but again its there
packaging which is different for different consumers.

Behavioral Segmentation

Occasions:

Thanks to the Coca-Cola Company the local festival of Basant has become and
international event and an identity of the culture of Pakistan. Over the year the
annual spring festival of Basant has taken on mega proportions. Previously
restricted largely to the walled city, the festivities now flood every nook and
corner of Lahore. The credit for making the celebrations available to almost
everyone largely goes to The Coca-Cola Company. In 2003, Coke was once
again nominated as the official sponsor for the Basant festival bye the parks&
horticulture authority, Lahore for the fourth year running. In these four years, the
company has played a pioneering role in making the Basant festival a major
social and culture event in Pakistan. (“The News” on 50th anniversary of the
Coca-Cola in Pakistan.)

Benefits Sought:

Sometimes, for the promotion strategy of coke, they introduce prizes in the top
cover. So they segment people by benefit sought, i.e. by giving them prizes.
 - 36 -
Positioning

T
he way the product is defined by consumers on important attributes, the
place the product occupies in consumer minds relative to competing
products.

Price

More Same Less

More

Benefits
Same

Less

Here if we talk about more price and more benefits, we can discuss Pepsi
and Coke. As both are the market leaders and 90% market share of
Pakistan beverage industry is secure by them & the rest 10% is secure by
the rest.
And we can also take Pepsi and Coke as challenger for each other as both
of them provides more for same, more for less & same for less. As they are
giving their customers more benefits for same price and also more benefits
for less price with respect to different packaging sizes.

Others colas like Macca Cola, Amrat Cola and Mountain Dew are offering
same for same price and same benefits for more price. They are using
followers strategy, as they follow the other market leaders and giving their
customers same benefits for same price. Others colas like tha bottles (local
colas) are offering less benefits for same price and less benefits for less
price. As they have no existence in market and their products have no
position or we can say very badly positioned in consumer minds.
 - 37 -

PRODUCT STRATEGY

PRODUCT STRATEGY

P roduct: Anything that can be offered to a market for attention, acquisition,

use or consumption that might satisfy a want or need.

Levels of coke as a product

Core product:

Core benefit is that it fulfills the thirst.

Actual product:

Design: Pet bottles, returnable glass bottles, economy packs.

Quality: Quality differs with respect to country for example. Coca-Cola Can
quality that is available in Middle East is certainly different as compared to Coke
Can available in Pakistan.

Product Classifications:

Coke is categorized as a convenience product, because the purchasing rate is

very high and this is the product that is bought very frequently.

Individual product decisions

 - 38 -

Brand

Existing New

Existin Line extension Brand extension

Product g

New Multi-Branding New brands

Branding:

a) Brand Equity:

As far as coke is concerned brand equity for the customers is very high.
People are highly brand loyal.

b) Brand Strategy:

The following is the brand strategy of Coke

Line Extension:

Line extension occurs when a company introduces additional items in a given

product category under the same brand name. For example if Coke introduces
new flavors and package size, it will be considered as line extension.

Brand Extension:

Brand extension means using a successful brand name lets say Coca-
Cola and then launching new product for example cherry coke. This
was an example of brand extension.

Multi-Branding:

It means introducing additional brands in the same category. For example Coca-
Cola not only introduced coke as a brand but also sprite and Fanta.

Diversification:
 - 39 -
It means introducing new product with the new brand name. It means
diversification but this is something Coca-Cola has not adopted for as yet.

Product Line Decisions:

Product Line Length:

It means the number of products that company is offering. For example Coke,
Diet Coke, Fanta , Sprite.

Product Line Filling:

Product line filling means that earlier when Coca-Cola started it had only one
flavor of coke available and that is classic coke but with the passage of time
company filled the product line by adding diet coke, diet lemon etc.
 - 40 -

Advertising
 - 41 -
Advertising:

T he field of advertisement is one area where Coca-Cola has always

emphasized.
In year 2000 Coca-Cola unveiled the biggest advertising billboards in the history
of Pakistan. Each unveiling was marked by entertainment and light shows
watched by thousands of people. Similarly in July 2000 Coca-Cola launched its
first under the crown promotion by the name of Dream Vacations in which the
consumers could collect caps of promotional bottles of Coca-Cola like Sprite,
Fanta and Coke.

Advertisement Objective:

Type of advertising with respect to product life cycle that Coca-Cola adopts is
reminder type. The reason behind this fact is that coke is such a product that is at
the maturity level currently so for such a product companies mostly go for
reminder type of advertisement so that they can penetrate more and more and
same is the case with Coke.

Setting of advertising budget:

Coca-Cola sets its advertisement budget on the basis of competitor based

budgeting. Major competitor of coke is Pepsi and as coke realizes that Pepsi has
increased its advertising budget, straight away Coca-Cola management plans to
do the same so that they can compete in advertising department as well.

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 “ Clutter Buster” means that only that advertisement will leave impact on
customer mind that has some specialty or uniqueness in it. For example in India
Coke current slogan “ Thanda Matlab Coca-Cola” has gained reasonable
customer attention.

Advertisement Media:

Coca-Cola Company advertises its products mainly coke through electronic

media that includes Television, Radio and Internet as well. Moreover leading
newspapers of Pakistan are also the targeted by coke for advertising. So we can
say that coke not only uses electronic but print media for advertisement as well.
 - 42 -
Coca cola company use different mediums
• Print media
• Other material
• Tv commercial
• Billboards and holdings

Print Media
They often use print media for advertisement. They have a separate
department for print media.

Other Material
Pos material mean point of sale material this includes: posters and stickers
display in the stores and in different areas.

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 consumer’s 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.
 - 43 -
For gaining success in coming year they have to have some important
things like:
1. Loyal consumers are important for company’s 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.

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 that’s 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.
 - 44 -

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.

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.

Suppliers:

Suppliers always play an important role in any company’s operation. Suppliers

provide resources and raw material that company requires to produce the goods
and services. Coke company suppliers in Pakistan vary with respect to the raw
material they provide. Following is a brief list of different suppliers of coke.

• Balochistan Glass Limited provides glass bottles of all sizes that are used
in bottling.
• Plato Bag Limited provides pet bottles with the labels. Labels are designed
by the Packages Ltd.
• Saharan Mills Limited provides the quality sugar in hygienic packets.
• Vanillin Intercool Pakistan provides the machinery such as visicoolers and
chest coolers for the chilled coco-cola.
• Dynamic Equipment and Controls (PVT) Limited provides industrial
refrigeration solutions, dispensing equipments, complete bottle line and
capping machines.
 - 45 -

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
 - 46 -

BRAND EXPLORATORY
 - 47 -
CUSTOMER KNOWLEDGE
Performance

Image

People

Sports

Negative

SOURCE OF BRAND EQUITY

Coca Cola & Cricket:

Pepsi is one of the biggest official sponsors of cricket & is also the official
drink of cricket. Coke is there, giving Pepsi a tough time. Coke has
sponsored eight Pakistani cricket players. Coca Cola is targeting cricket as
it is one the famous & growing all over the world.

Coca Cola & Musical Concerts:

When you think of Pakistani Punjabi bhangra, Abrar-ul-Haq is the first name
you think of. Coca Cola is the official sponsor of Abrar. Coke sponsors
almost all of the concerts of Abrar. In most of the hoardings, billboards & TV
commercials of coke, we see Abrar performing & promoting coke.
Junoon is a known name all over the world. Coke targeted its customer through
music celebrities & ask them to perform in their concerts & commercials. You see
Junoon performing a desire of having a coke is rite in you.

Coca Cola & Food Mela:

This is the century when food industry is at its boom. Coca cola organizes food
melas for the people. In Karachi, coke treated thousands of people by bringing
50 bustling restaurants all together in one area. All those restaurants were
offering coke as the only beverage in the food mela.

Coca Cola & Basant:

Basant is one of the biggest event in Lahore. Coke was the official decorator of
Lahore hired by PHA. Coke has promoted its products so much with relevance to
basant that at basant whenever you want to drink something chilled, the first
 - 48 -
name you think of is Coke. It is there in the mind of the people that “Where there
is Basant there is Coca Cola”.

Coke in Ramzan & Eid:

Eid & Ramazan is one of the holy events of muslims. Coke earns its great
revenues in the month of Ramazan & at the time of Eid. It offers new
packaging or great discount offers also special offers at Eid.

Coca-Cola Cricket
Cricket the most sought after; watched & played game in Pakistan .the game of
cricket has been owned by various brands in the industry for the promotion of
their products over a period of time. It has ranged from tobacco to lubricants to
communication companies to banks to airlines & lately to the beverage industry.
The competition has become tougher & tougher as the time has progressed.

Coca-Cola signed a sponsorship agreement with eight of Pakistan’s National

cricket players. Coca-Cola realizing the fact that cricket is a very strong element
by which it can reach it consumers & masses invested in the opportunity and
launched a massive campaign on mass media showing all these cricket stars
endorsing & complimenting Coca-Cola brand. The Coca-Cola Company
developed three TV commercials & four testimonial ads with the player & ran
them on the national net work during various cricket matches. These bold steps
taken by the Coca-Cola marketing unit acclaimed them many acknowledgements
across the board. This campaign helped Coca-Cola to establish its association
with the game & the player.

Coca-Cola Concerts
Abrar-ul-haq’s distinct style, lyrics & songs have made him an instant hit among
the masses in Pakistan. His enormous popularity in the country & abroad is
supported by Coca-Cola’s commitment towards providing healthy & fun-filled
entertainment for the youth of Pakistan. Coca-Cola brought Abrar to his fans
through holding concerts & featuring Abrar in a much-appreciated TVC & MMT
featured throughout the country.

The TVC campaign focused on the hectic lifestyle of a pop star who found respite
& relief through Coca-Cola in short moments that he had to himself during a
concert. Coca-Cola’s brand positioning of providing deep down refreshment for
the body, soul & mind were captured accurately in the TVC & depicted aptly how
the drink completes the moment for Abrar.
 - 49 -

Coca-Cola Food Mela

With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated
the people of Karachi, to a festive food festival comprising of 50 restaurants,
spread out all over the bustling city’s map. The promotion saw the avid families &
friends enjoying the delicacies at the restaurants; all resiliently upholding the
Coca-Cola identity.

Coca-Cola Basant Festival

In February the month of basant the parks & horticulture authority in Lahore
nominated Coca-Cola the official sponsor of the basant festival .Coca-Cola
added to the carnival atmosphere by making the festival free to enter &
decorating all main roads in Lahore with illuminated kites. Coca-Cola also hosted
a concert of pop idol Abrar-ul-haq, had children’s parade & held the Coca-Cola
kite flying championship during the basant festival. Now “where there is basant
there is Coca-Cola”, it has been impossible to envisage basant without Coca-
Cola. Coca-Cola give the more refreshing flavor to the colors of basant by adding
more life to the festival, giving the consumer a unique experience which they had
never tasted before.

Coca-Cola GO-RED
Quenching the thirst of motorist, pedestrians & passerby’s during Lahore’s
hottest summer season, Coca-Cola’s “GO-RED” teams went out into the cities
main quadrants to “serve & refresh” on the spot with ice-cold Coca-Colas at
discounted prices backed by a heavy FM announcement campaign the “GO-
RED” stall, served well to promote the Coca-Cola industry.

Coca-Cola Party in a Park

In June 2000, Coca-Cola created an experiential musical evening in Lahore,
where Junoon performed. This program was recorded and one-hour program
shown in the national TV for free.10 million households saw Coca-Cola ‘Party in
a Park’ while 10 thousand people attended the event.

Coca-Cola Shopping Festival

Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping
festival, a resounding success with tempting discounts, live music, great prizes &
fire works. Liberty marketing Gulberg was a hive of activity during the weeklong
 - 50 -
shopping extravaganza. The in augural event proved so popular that it is now set
to become an annual fixture.

Coca-Cola Pet Promotion

In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in
Pakistan. Targeting house wives & family home, Coca-Cola’s 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-
Cola’s 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-Cola’s 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 thousand’s 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
 - 51 -
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 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 Donald’s

Coca-Cola & key account of MC Donald’s 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 Donald’s 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.
 - 52 -

RECOMMENDATIONS
& CONCLUSIONS
 - 53 -
Recommendations:

A fter completing our project we have come up with following

recommendations for the coca cola company, which are following.

• Currently In Pakistan there are only two flavor of coke available, company
can extend their portfolio by introducing new flavors.
• According to the survey, conducted by the international firm Pakistani
people like less sweet cola drink. So for this coca-cola company should
think about bringing a new product for example new diet flavors, in the
market to fulfill the local need.
• Marketing team should try to increase the availability of Coke in rural
areas.
• 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 ½ liter disposable bottle.
• Coca Cola Company should think about producing Coke Can locally as
well because currently coke Cans are only smuggled from abroad and
sold at high price. Company can capitalize on this factor.
• Currently two plants of coke are being run under private companies, one is
in Peshawer and other in Rawalpindi. Company should plan to buy these
plants as well so that customers can get equally good quality all over the
country. This will help company to maintain quality control.

CONCLUSION

W
e have concluded from this detailed report that despite the fact Coca-
cola currently occupies the market leadership position overall but it
does not guarantee that the company will sustain its position in the
future as well. In Pakistan as compared to Pepsi, Coca-Cola has less number of
consumers as Pepsi’s market share in Pakistan is approximately 58% where as
coke market share is hovering about 32%, hence the conclusion is that Coca-
Cola must enhance factors such as relationship marketing, innovation and
technology specially in Pakistan to attain market leader position in this region as
well.
- 54 -
 - 55 -

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.

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.

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.
 - 56 -
• 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 ½ liter disposable bottle.