Cocacola company report (1)

STRATEGIC MARKETING Presented to: Sir Aslam Masood Presented by: Strategic Marketing Uzma Farrukh M-13395 SanaGhayyur M-13366 Page MARKETING STRATEGIES OF COCA COLA Strategic Marketing Page “With the name of Allah the most beneficial and the most merciful” ACKNOWLEDGEMENT Strategic Marketing Page First and foremost, we are grateful to ‘ALLAH ALMIGHTY’, most beneficent and the most merciful Who made us able to complete our given project successfully We would also like to pay tribute to the benefactor of humanity ‘HOLY PROPHET’ (P.B.U.H.), Who gave us complete knowledge on every aspect and field of life In short of words, to express our modest gratitude and recognition to cuddly and loveable ‘PARENTS’, who at each and every moment prays for our success We are also deeply thankful to our ‘TEACHERS’ to have taught us from childhood to still especially ‘SIR ASLAM MASOOD’, who taught us ‘Strategic Marketing’ Thank you all, without you this would have not been possible Strategic Marketing Page DEDICATION We dedicate this report to our parents and friends in recognition of their worth and to our teachers who are the guiding force for us and it is their effort and hard work that showed us the path of success and prosperity which would be there for us for the rest of our life Our thanks to all those who have generously contributed their theoretical knowledge to this report including our teachers Without their understanding and support, completion of this work would not have been possible We hope people find this report useful and the subject matter adds to their knowledge “Keep your dreams alive Understand to achieve anything requires faith and belief in yourself, vision, hard work, determination, and dedication Remember all things are possible for those who believe.” Merlin Olsen Strategic Marketing Page TABLE OF CONTENTS Page # Project Objective 09 Executive Summary 10 Market Demographics 11 Industry Analysis 11 Situational Analysis 12-14 Introduction of Coca Cola 15-16 Vision Statement 17 Mission Statement 18 Shared Values 18 Objectives of Coca Cola 19 Goals of Coca Cola 19 History of Coca Cola 20-21 History of Bottling 22-23 Advertising History of Coca Cola 24-25 Coke History in Pakistan 26-27 Organizational Hierarchy of Coca Cola 28 Departments of Coca Cola 29-31 Market Share of Coca Cola 32 Strategic Marketing Page Global Unit Sales of Coca Cola 33 Region wise Consumption of Coca Cola 34 Market Position of Coca Cola Globally 35 Market Position of Coca Cola in Pakistan 35 Brands of Coca Cola 36-38 Portfolio Analysis (BCG Matrix) 39-40 Competitors 41-49 Competitors Analysis 50-51 Competitive Advantages 52 Customer Analysis 53 SWOT Analysis 54 Industrial SWOT Analysis 54-55 SWOT Analysis of Coca Cola 56-58 Product Life Cycle 59-60 Growth Strategy 61-62 Market Segmentation Segmentation Strategy of Coca Cola Marketing Mix 63 64-67 68 Product Strategy 68-70 Pricing Strategy 71-74 Positioning Strategy 75-76 Strategic Marketing Page Packaging strategy 77-78 Promotion Strategy 79 Distribution Channels 80 Advertisement of Coca Cola 81 Advertisement Media 82 Expectations for the Coming Year 83 Sales Promotion Activities 85-88 Conclusion 89 Recommendations 90 Bibliography 91 Strategic Marketing Page PROJECT OBJECTIVE The objective of this project is to give overview of Marketing Strategy of ‘Coca Cola’ to provide a broad selection of the nonalcoholic ready to drink beverages to potential consumers in Pakistan Analysis carried out on nonalcoholic ready to drink beverages market in terms of size and growth, covering different segments present in the market It includes introduction of the company and the product, internal and external environment, market and competitor analysis, and marketing mix Strategic Marketing Page EXECUTIVE SUMMARY The scope of the project is to discuss the marketing strategies adopted and applied by ‘Coca Cola’, Pakistan From the last month or so our group is in the process of a continuous research on marketing functions and strategies adopted by ‘Coca Cola’ These marketing functions mainly include the marketing mix i-e, Product Strategy, Pricing Strategy, Pricing Tools and Strategies and Placement and Distribution Strategies as well as other market strategies Moreover the project also discusses the analysis of competition, market growth and trend, opportunity analysis and strategies for creating competitive advantage adopted by ‘Coca Cola’ We will like to add that the project will provide the readers and listeners very high profile information about the marketing strategies as a whole and also about the Coca Cola Company In the end we hope that the project will result very profitable for the readers and Coca Cola Your feedback in the end either critical or substantial will be very highly appreciated Strategic Marketing Page 10 PACKAGING & LABELING OF COCACOLA Packaging means the activities of designing and producing the container or wrapper for a product Traditionally packaging decisions where based primarily on cost and production factors, the primary function of the package was to contain and protect the product the product In recent time, however humorous factors have made packaging an important marketing tool These factors include all acting attention describing the product making the sales Packaging involves designing and producing the container or wrapper for product The package may include the product’s primary container a secondary package that is thrown away when the product is about to be used and shipping package necessary to store , information appearing the product labeling printed information appearing on or with the packaging is also part of packaging Label ways rouge from toys attached from product to the complex graphic that identify the product or brand, such as the product the label weight also described several things about the product that made its contents how it is to be used Coca-Cola products, almost all of them are available in bottles of 250 ml, 500 ml pet jar, 1000ml, 1500 ml and 2000 ml bottles as well as 330 ml cans The advantages of packaging are as follows ➢ In strip packaging there is aluminum foil on both the sides Strip packing is done for providing stability to those products which are having less productivity ➢ In facilitating branding and advertising of products ➢ In serving as a silent salesman It induces the buyers to make re order ➢ It has got display value ➢ It helps the seller to increase his sales and obtained higher prices than he could get from unpacked good ➢ Printed literature containing “Instruction to use the product” can be easily passed on to the consumers by putting in the package ➢ Packaging given the product a prestige an individually and identity which the goods sold in loose form LABELING OF COCA COLA Strategic Marketing Page 79 Labels may range from simple tags attached to products to complex graphics that are part of the package Labeling is mainly done in order to promote the product through attractive graphic In the “Coca-Cola” company, the labels are provided with bottles Strategic Marketing Page 80 PROMOTION STRATEGIES OF COCA COLA GETTING SHELVES They get or purchase shelves in big departmental stores and display their products in those shelves in that style which show their product clearer and more attractive for the consumers EYE CATCHING POSITION Salesman of the Coca Cola Company positions their freezers and their products in eyecatching positions Normally they keep their freezers near the entrance of the stores SALE PROMOTION Company also sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share UTC SCHEME UTC mean under the crown scheme, coca cola often this type of scheme and they offer very handy prizes in it Like once they offer bicycles, caps, TV sets, cash prizes etc This scheme is very much popular among children Strategic Marketing Page 81 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 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 Strategic Marketing Page 82 ADVERTISEMENT OF COCA COLA The 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 Coca Cola is Pepsi and as Coke realizes that Pepsi has increased its advertising budget, straight away Coca-Cola management plans to 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 Strategic Marketing Page 83 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 Coca Cola Company use different mediums ➢ Print media ➢ Pos material ➢ TV commercial ➢ Billboards and holdings PRINT MEDIA They often use print media for advertisement They have a separate department for print media POS MATERIAL POS material mean point of sale material this includes: posters and stickers that are displayed in the stores and in different areas TV COMMERCIALS As everybody know that TV is a most common entertaining medium so TV commercials are 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 Strategic Marketing Page 84 EXPECTATIONS FOR THE COMING YEAR Everything 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 For gaining success in coming year they have to have some important things like: ➢ Loyal consumers are important for company’s success ➢ Workers should be the brand centric not the promotion centric ➢ They should know how much to for the brand activities ➢ They should also know that how much to with the promotion activities for brand Strategic Marketing Page 85 HOW COKE DETERMINE THE YEARLY BUDGET Coke determines its yearly budget by the ➢ Sales volume ➢ Profitability ➢ Target volume SALES VOLUME Coke determines its yearly budget through the sales volume They first concentrate on the thing is “what is the condition of their sales?” if the condition is good of their sales then they definitely increase their production and sales volume Otherwise they concentrate on their old strategies PROFITABILITY The second thing through which they determines budget is the “profit” if they r getting profits with the high margin, then they definitely want to increase their profits in the next coming year Every organization runs on the basis of getting high profits No organization wants to face Loss in their business To get profit is the first priority of the Coke TARGET VOLUME To run the business every industry has some targets, which they want to achieve in a specific time period If industry achieves those goals in that period then for the coming year it increases the volume of the target So Coke Follow the same thing it has also some goals and targets to achieve in the given time period When they succeed to achieve that target then they increase their target volume in the next year Strategic Marketing Page 86 SALES PROMOTION ACTIVITIES 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 CocaCola 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 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 Strategic Marketing Page 87 COCA-COLA BASANT FESTIVAL In February the month of basant the parks & horticulture authority in Lahore nominated CocaCola 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 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 Strategic Marketing Page 88 COCA-COLA RAMZAN CAMPAIGN A very special occasion for the people of Pakistan Ramzan saw another very special CocaCola’s promotion, marketing the popular 1.5 liter PET bottle & the 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 CocaCola ,Sprite, & Fanta The other highlight of promotion was the “Caught Red Handed” campaign Branded Coca-Cola with ‘caught red handed’ team in them went to Lahore & Karachi for three days, with target that anyone being caught drinking Coca-Cola will be awarded a nokia 3310 mobile phone & if someone is caught talking on a Nokia mobile will win free supply of Coca-Cola Caught red 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 build 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 Strategic Marketing Page 89 FANTA & SPRITE LAUNCHED In November 2000moving on to the Sprite & Fanta brands, the consumers in Pakistan witnessed a soft launch in essence The Coca-Cola Company declared the new “Non-Returnable” bottles of Sprite & Fanta as the “New, On the Go Packs” flaunting the innovative packaging convenience Fanta & Sprite are sure to enjoy considerable success in Pakistan DIET COKE After the acquisition of the individual local franchise bottling facilities in 1996, the company has successfully launched its first new product, diet coke, for the first time in almost years The was linked with three fashion shows as Diet Coke is related to fashion & fitness, but the major hit was thematic fashion shows in restaurants, which are the key accounts of the company as this has been never done before in Pakistan Strategic Marketing Page 90 CONCLUSION We 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 54% where as Coke market share is hovering about 36%, hence the conclusion is that Coca-Cola must enhance factors such as relationship marketing, innovation and technology especially in Pakistan to attain market leader position in this region as well Strategic Marketing Page 91 RECOMMENDATIONS After 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 ➢ 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 Strategic Marketing Page 92 BIBLIOGRAPHY www.cocacola.com www.thecocacolacompany.com www.wikipedia.com www.google.com Principles of Marketing by Philip Kotler Strategic Marketing by David W Cravens Local Newspapers International Herald Tribune Newspaper The Nikkei Weekly magazine, Japan (Winter, 2009) Jamal Hassan Strategic Marketing Page 93 ... departments are the most important department of The Coca-Cola Company because they helps the company to meets the objectives of The Coca-Cola Company i.e surviving, customer satisfaction and make more... Cola Company It is produced and distributed by Coca Cola Company? ??s bottlers Mirinda is a brand of soft drink Mirinda is owned by Pepsi Co Sprite Ice was the first flavor extension for Coca Cola Company? ??s... OBJECTIVE OF COCA COLA The company has sales based objective Everything else (marketing plan, advertising plan, production etc.) is derived from this objective Currently the company? ??s objective is