PRAJAKTA RAVETKAR

ROLL NO: 31
SIMS EX-MBA 2009-12
• Company profile
• About the product
• Scope of product
• SWOT of product
• SWOT of Industry
• Market Share & Segmentation
• PEST Analysis
• Porter’s 5 forces analysis
• Activation and promotion
• Conclusion
•On May 8, 1886, Atlanta druggist Dr. John Styth
Pemberton invented "Coca- Cola" syrup using: -
‡
Melted sugar
Water and
‡ Some other ingredients (Specifically
coca
leaf and the Kola nut ).
• Frank M. Robinson, Pemberton's

bookkeeper, was the person who suggested

the name "Coca-Cola"
• First sold for 5 ₵ glass at a soda fountain in
Jacob's Pharmacy in Atlanta by Willis Venable.
• The first year's gross sales were $50 and

advertising costs were $73.96.

• In 1891, Asa Griggs Candler acquires complete

ownership of the Coca-Cola business for $2,300.

• In 1988, the Company entered the markets of

Canada and Mexico.

•In 1906, Cuba and Panama became the first two

countries outside the U.S.to bottle Coca-Cola.

•In 1919,Coca-Cola Company was sold for $25
million to Atlanta banker Ernest Woodruff and a
group of investors.
•In 1920, the Coca-Cola Company established a
manufacturing operation in France, U.S.
• In 1929, 64 bottling operationslocated in 28
countries, spreading refreshment worldwide
•In 1941, the trademark "Coke´ first received
equal prominence in advertising with "Coca-
Cola.“
• In 1942 ” It’s the Real Thing “ was first used in
Coke advertising.
•In 1955, the 10-,12-, and 26-ounce king-size and
family-size bottles were introduced with immediate
success.
•In 1960, Metal cans were introduced first time which
are now available in the market.
• In 1982, the Coca-Cola Company introduced diet
Coke to U.S.
•In April 1985,a new taste Cherry Coke was
introduced.
•In 1986,the year of the Company’s 100th
anniversary, two large U.S. bottlers combined to form
Coca-Cola Enterprises.
•In 1988, an independent worldwide survey confirmed
that Coca-Cola was the best known, most admired
trademark in the world.
•In1996, Atlanta, Georgia. And the Cisneros
Bottling Company, the largest soft-drink bottler
in Venezuela, switched from Pepsi to Coca-Cola.
•The Coca-Cola Company began operating in

Pakistan in 1953.
To have a strong dominant and profitable
business in Pakistan.

SHARED VALUES:
We value and respect our employees
We communicate openly
We have integrity
We are committed to winning
 “To create value for our share holders.”
•Building preference & market leadership for our

brands
• Achieve quality excellence and serve our

customers with quality products

• Maximizing profits
• Developing People
• Optimum utilization of assets
•Respect and trust as the framework of all our
relationships

• Flexibility for our clients, partners and staff

•Innovation in the products, processes, and services we

offer

• Doing the right thing

•Focus on results, without neglecting the quality of the

process
•Vibrant network of people in 200
countries.
•Putting citizenship into action.
•Our actions as local citizens.
•Every day to refresh the marketplace.
•Enrich the workplace.
• Protect the environment .
•Strengthen our communities
•The Symbol of Quality
• Customer & Consumer Satisfaction
• A Responsible Citizen Of The World

Brands of Coca- -cola

There are 323 brands of coca-cola. Out of which
there are 7 brands of coke in Pakistan.
Two brands “Lemon” and “Strawberry” are recently
introduced products of Coca- cola in Pakistan
Coca-cola
•Created in Atlanta, Georgia by Dr. John S.

Pemberton.
• Coca-Cola was registered as a trademark in

1887 and by 1895 Coca-Cola was being sold in

every state and territory in the United States.
Diet Coke /Coca-cola Light
• Diet Coke was introduced in 1982
• No1 Sugar free drink and No 3 Soft drink in the

world
Fanta
•Fanta was acquired by The Coca-Cola

Company in 1960.

•Fanta sells best in Brazil, Germany, Spain,

Japan, Italy and Argentina

Sprite
• Sprite was introduced in February 1, 1960

•Sprite is sold in more than 190 countries

and ranks as the No. 4 soft drink worldwide.
 Strengths
 Demand of coke is more than its competitors
 Maintaining global soft drink industry leadership
 As the target customers of coke is young
generation, so coke has more brand loyal customers.
 Large scale of operations
 Strong supply chain management system
 It allows them to conduct business on a global scale
while at the same time maintain
a local approach. The bottling companies are locally
owned and operated by
independent business people who are authorized to
sell products of the Coca-Cola
Company.
 Weakness
• Coke does not offer any sort of incentive or
discount to its retailers.
•Coke target only young customers
•Coke tin pack is not available in far off rural
areas.
•Less effective campaigns.
•Unable to differentiate itself from Pepsi.
 SWOT Analysis of Coke
Opportunities
• Company may start entering rural areas
• The company may also diversify its
business in some other potential
business. 
• Growing bottled water market.
• Untouched markets.
• Strong brand names and world-wide
identity as a leader in the soft drink
industry.
 SWOT Analysis of Coke
Threats
• Competition from other national,
regional, and global soft drink
Companies.
• Political and economic instability in
many developing regions of the world.
• Sluggish growth of carbonated
beverages
• Dependence on bottling partners
• Intense price competition.
• Intense competition with competitors.
 Strengths
 The soft drinks market in Pakistan enjoyed dynamic growth
over the review period in both volume and current value
terms.

 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 .

 Off-trade sales of carbonates are higher than those of the on-

trade but both achieved strong growth over the review period
 Weakness
 Liquid concentrates and powder concentrates are
both seasonal categories in the market and their
sales peak in the summer in Pakistan.

 Both Rooh Afza and Jam-e-Shirin are traditional

Sandalwood drinks in Pakistan which are highly
regarded by consumers.

 These drinks can be found in every home in

Pakistan, especially in rural areas, throughout the
summer and are the mainstay of liquid concentrates.
 Opportunities
 The government of Pakistan has reduced excise taxes to
encourage soft drinks manufacturers and
importers.

 The government also reduced other applicable taxes to

promise more profits not only for soft drinks
manufacturers already in the market but also to attract
potential soft drinks manufacturers to invest in Pakistan.
 Tax reductions proved extremely beneficial to the soft
drinks market in Pakistan and certainly encouraged and
attracted multinational companies to invest in the country's
soft drinks industry.
 Government also decides to tax beverage industry
depending upon the production .
 Threats
 Increasing health and hygiene awareness among
Pakistanis has greatly increased sales of
fruit/vegetable juice products.
 The government also reduced other applicable taxes
to promise more profits not only for soft drinks
manufacturers already in the market but also to
attract potential soft drinks manufacturers to invest in
Pakistan.
 Both the government and the media have started
health awareness campaigns to make Pakistanis
realize that consumption of fruit/vegetable juice is as
essential as
eating food.
 Increase in the sales of bottled water due to health
and hygiene awareness
 I
•Market Share By Area:
Coca Cola is the world-renowned soft drink and the
company is currently operating through out the world.
The world wide total is about 17.8 billion. The operation
review according to the segments is as follows.
Operation Review
(2002 worldwide unit case volume by operating segment)
NORTH LATIN EUROPE & ASIA AFRICA
AMERICA AMERICA MIDDLE EAST
30% 25% 22% 17% 6%
Market segmentation is the breaking down of a total market into
segments or sub- group. The following are ways in segmenting
consumers product market:
Behavioural: many occasion for purchase as Christmas, Easter,
birthdays and usage status, beneficial sought. Loyalty, this is when
consumer are loyal to a brand.

An organisation cannot satisfy the needs and want of all customers.

To do so may
result in a massive drain in company resources. There are numbers
of segmentation variables that allows an organisation to divide their
market into homogenous group.

Demographic: these are based on target age group (15-35+), sex

(female or male), income and Product size for family consumption.
As people age their needs and want change, some organisation
develops specific products aimed at particular age group. Gender
segmentation is commonly used within the cosmetics, clothing and
magazines industries.

Psychographics: this can be broken down into lifestyle, social class

and personality.
As the lifestyle of consumers change, they might to watch their
POLITICAL ANALYSIS:
•Non-alcoholic beverages fall within the food category under the FDA. The
government plays a role within the operation of manufacturing these products
in terms of regulations. There are potential fines set by the government on
companies if they do not meet a standard of laws.

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

taxation requirements, environmental laws in domestic or foreign jurisdictions.

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

limitation, competitive product and pricing pressures and their ability to gain or
maintain share of sales in the global market.

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

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

•Theirability to penetrate developing and emerging markets, which also

depends on economic and political conditions, and how well they are able to
acquire or form strategic business alliances with local bottlers and make
necessary infrastructure enhancements to production facilities, distribution
networks, sales equipment and technology.
ECONOMIC ANALYSIS:
For example a recession creating increased activity at the lower ends
of product price ranges. Rate of interest rises depressing business and
causing redundancies and lower spending levels.

•Cut down in interest rates which will excite consumer demand

•Companies will expand and increase use of debt as a result of the

low borrowing rates.

•Coca-Cola can borrow money for investing in other

products as the interest rates are low.

•It can use the borrowing on research of new products or

technology. As researching for new products would cost less the
Coca-Cola Company will sell its products for less and the people
will spend as they would get cheap products from Coca-cola.
SOCIAL ANALYSIS:
Many U.S. citizens are practicing healthier lifestyles.
This has affected the non- alcoholic beverage industry
in that many are switching to bottled water and diet
colas instead of beer and other alcoholic beverages.

•Need for bottled water and other more convenient and

healthy
products are in important

•Consumers from the ages of 37 to 55 are also

increasingly concerned with nutrition.
TECGNOLOGICAL ANALYSIS:
Creates opportunities for new products and product
improvements and of course new marketing techniques- the Internet,
e- commerce.
• The effectiveness of company's advertising, marketing and
promotional programs. The new technology of internet and television
which use special effects for advertising through media.

•Introduction of cans and plastic bottles have increased sales for

Coca-Cola as these are easier to carry and you can bin them once they
are used.

•As the technology is getting advanced there has been introduction of

new
machineries all the time. Due to introduction of this machineries the
production of the Coca-Cola company has increased tremendously
then it was few years ago
Rivalry Among Competitive firms
•Rivalry among competing firms is the most powerful of the
five competitive forces. The ongoing war between firms
competing in the same industry for gaining customer share
to increase revenues and profits. The competition is more
intense if firm pursue strategies that gives competitive
advantage over the strategies pursued by rivals.
•Developing new strategies is more easier than retaining the
uniqueness of the strategies to gain competitive edge over
rivals in the industry. Changes in strategy by one firm may
be met with retaliatory countermoves, such as lowering the
prices, enhancing quality, adding features, providing
services, extending warranties and increasing advertising.
•Eg:-Pepsi Vs Coca Cola are competing by increasing
advertising and offering new beverages in the market
Potential Entry of New Competitors
•The several factors that make it very difficult for the
competition to enter the soft drink market
include:

•Bottling Network: Both Coke and PepsiCo have franchisee

agreements with their existing bottler’s who have rights in a
certain geographic area in perpetuity. These agreements
prohibit bottler’s from taking on new competing brands for
similar products. Also with the recent consolidation among
the bottler’s and the backward integration with both Coke
and Pepsi buying significant percent of bottling companies,
it is very difficult for a firm entering to find bottler’s willing
to distribute their product.

•The other approach to try and build their bottling plants

would be very capital-intensive effort
with new efficient plant capital requirements in 1998 being
$75 million.
Potential Entry of New Competitors
•Retailer Shelf Space (Retail Distribution): Retailers enjoy
significant margins of 15-20% on these soft drinks for the
shelf space they offer. These margins are quite significant
for their bottom-line. This makes it tough for the new
entrants to convince retailers to carry/substitute their new
products for Coke and Pepsi.
• Advertising Spend: The advertising and marketing spend
(Case Exhibit 5 & 6) in the industry is in 2000 was around $
2.6 billion (0.40 per case * 6.6 billion cases) mainly by Coke,
Pepsi and their bottler’s. The average advertisement
spending per point of market share in 2000 was 8.3 million
(Exhibit 2). This makes it extremely difficult for an entrant
to compete with the incumbents and gain any visibility.
•Fear of Retaliation: To enter into a market with entrenched
rival behemoths like Pepsi
and Coke is not easy as it could lead to price wars which
affect the new comer.
Bargaining Power of Suppliers
Commodity Ingredients: Most of the raw materials needed to
produce concentrate are basic commodities like Color, flavor,
caffeine or additives, sugar, packaging. Essentially these are
basic commodities. The producers of these products have no
power over the pricing hence the suppliers in this industry are
weak.

Bargaining Power of Consumers: Large

numbers of substitutes like water, beer, coffee, juices etc are
available to the end consumers but this countered by concentrate
providers by huge advertising, brand equity, and making their
product easily available for consumers, which most substitutes
cannot match. Also soft drink companies diversify business by
offering substitutes themselves to shield themselves from
competition.
Rivalry: The Concentrate Producer industry can be classified as a
Duopoly with Pepsi and Coke as the firms competing. The market
share of the rest of the competition is too small to cause any
upheaval of pricing or industry structure. Pepsi and Coke mainly
over the years competed on differentiation and advertising rather
than on pricing except for a period in the 1990’s. This prevented
a huge dent in profits. Pricing wars are however a feature in their
international expansion strategies.
Bargaining Power of Buyers:
The major channels for the Soft Drink industry (Exhibit 6) are food
stores, Fast food fountain, vending, convenience stores and others in
the order of market share. The profitability in each of these segments
clearly illustrate the buyer power and how different buyers pay
different prices based on their power to negotiate.
Food Stores: These buyers in this segment are some what consolidated
with several chain stores and few local supermarkets, since they offer
premium shelf space they command lower prices, the net operating
profit before tax (NOPBT) for concentrate producer’s in this segment is
$0.23/case
Convenience Stores: This segment of buyer’s is extremely fragmented
and hence have to
pay higher prices, NOPBT here is $0.69 /case.

Fountain: This segment of buyer’s are the least profitable because of

their large amount of purchases hey make, It allows them to have
freedom to negotiate. Coke and Pepsi primarily consider this segment
“Paid Sampling” with low margins. NOPBT in this segment is $0.09
/case.
Vending: This channel serves the customer’s directly with absolutely no
power with the
buyer, hence NOPBT of $0.97/case.
 MARKET POSITIONING
Product Range
The total range of Coca Cola company in Pakistan includes:
•Coke.
•Sprite.
•Fanta.
•Diet Coke.

And company offers their products in different bottle sizes these includes:
•SSRB (standers size returnable bottle)
•LRB (litter returnable bottle)
•NRB (no return bottle) or disposable bottle
•PET 1.5 (1.5 litter plastic bottle)
•CANS (tin pack 330 ml)

Packing
Coca cola products are available in different packing
•24 regular bottle shell
•6 bottle pack for 1.5 pets
•12 bottles in a pack for disposable bottle
•24 cans in one pack.
 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.
 PROMOTION STRATEGIES
Getting shelves
They gets or purchase shelves in big departmental stores and display their
products in that shelves in that style which show their product more clear
and more attractive for the consumers.
Eye Catching Position
Salesman of the coca cola company positions their freezers and their
products in eye- catching positions. Normally they keep their freezers near
the entrance of the stores.
Sale Promotion
Company also do 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 do 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.
DISTRIBUTION CHANNELS
Coca Cola Company makes two types of selling
Direct selling & Indirect selling
 PROMOTION STRATEGIES
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
ADVERTISEMENT
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.
 PROMOTION STRATEGIES

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.

POS Material
Pos material mean point of sale material this includes: posters and stickers
display in the
stores and in different areas.
 SALES PROMOTION
ACTIVITIES
•Coca-Cola Cricket
•Coca-Cola Concerts
•Coca-Cola Concerts
•Coca-Cola Basant Festival
•Coca-Cola Party in a Park
•Coca-Cola Basant Festival
•Coca-Cola Shopping Festival
•Coca-Cola Pet Promotion
•Coca-Cola Ramzan Campaign
•Coca-Cola Wonder of the World Promotion
•Coca-Cola & Nokia
•Coca-Cola & Nokia
•Coca-Cola & Mc Donald’s
•Fanta & Sprite Launched
•Diet Coke
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.
•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 sametime, so providing more satisfaction to them company should
introduce ½ liter disposable bottle.