Академический Документы
Профессиональный Документы
Культура Документы
REPORT ON
PREFACE
This marketing report is all about the coca-cola company and its products. In this document Microsoft word is used. Writing the report has greatly enhanced our knowledge and has proved to be a learning experience as it has enabled us to view the subject from a different respective .We have researched our topic thoroughly and written the report to the best of our quality. This report is all about coca-cola beverages Pakistan Ltd. The coca-cola company is pioneer in setting up modern soft drink industry in Pakistan. But still coca cola Company is not the leader in market because it has lower market share than Pepsi through this report we have searched that how much people are more attracted or consume coca-cola.
TABLE OF CONTENTS
INTRODUCTION OBJECTIVES AND MISSION STATEMENTS MARKETING MIX ATTRIBUTES AND FEATURES DISTRIBUTION CHANNEL MARKET SHARE GROWTH RATE COMPETITORS PRODUCT LIFE CYCLE FUTURE RECOMMENDATIONS
INTRODUCTION
The coca-cola company is the global soft-drink industry leader, with world headquarters in Atlanta, Georgia. The company and its subsidiaries employ nearly 30,000 people around the world. Syrups, concentrates and beverage bases of coca-cola, the companys flagship brand, and over 160 other company soft-drink brands are manufactured and sold by the coca-cola company and its subsidiaries in nearly 200 countries around the world. In fact, approximately 70 percent of company volume and 80 percent of company profit come from outside the United States. By contract with the coca-cola company or its local subsidiaries, local businesses are authorized to bottle and sell company soft drinks within certain territorial boundaries and under conditions that ensure the highest standards of quality and uniformity. The coca-cola company has a commitment, more than a century old, to social responsibility through philanthropy and good citizenship. The companys reputation for good corporate citizenship results from charitable donations, employee volunteerism, technical assistance and other demonstrations of support in thousands of communitys world wide.
Coca Cola bottlers set up their plants at several places, after feeling the benefits of this modern approach to production and marketing. The employment and income generated by the Coca Cola system extents to 1000 of people of whom the Coca Cola Bottlers and distributions directly employ 8000. They also provide better standard of living for around 80000 people mainly small shopkeepers who earn an average from the sale of the Companys brands, alone an average per capita income. With the establishment and development of the Coca Cola bottling organization, new and increasingly sophisticated techniques of management, marketing and technical skills have introduced to a large number of small industries.
The worlds most effective and pervasive distribution system. Satisfied customers, who make a good profit selling our products.
Our strong global leadership in the beverage industry in particular and in the business world in general.
MARKETING MIX
The most important strategies that a company follows to stay in the business is called the Marketing Mix. It has got everything that a firm can do to influence the demand for its product. It consists of four Ps that are: Product Price Place Promotion
PRODUCT
The best way to hold customers is to constantly figure out how to give them more for less.
(Philip Kotler) The products of the Coca Cola Company include a wide range of nonalcoholic beverages. In Pakistan, the Companys range of trade marked beverages brands include Coca Cola, Diet Coke, Sprite and Fanta. They consider the consistent high quality of their beverage to be one of their business primary assets. In each country where they produce their beverages, the Coca Cola system adheres not only the national laws on food processing and labeling, but also to their own strict standards for exceptional quality.
In everything they do. From the selection of ingredients to the production of their beverages, they use their delivery to the market place; they use their specialized quality marketing system. The Coca Cola Quality System, to ensure that they are offering consumers only the highest quality products. They monitor their success through their customers and consumer feedback and their in-trade monitoring programs and this information enables is to continuously improve their already demanding systems. The product line length of a product mix refers to the total number of items in the mix. Coca colas product line consists of the following number of items:
COKE DIET COKE Disposable bottles; bottles; Coke cans; 1.5 liter bottles; bottles; 1 liter bottles; bottles; 300 ml bottles and ml bottles and 250 ml bottles bottles
FANTA Disposable bottles; Fanta cans; 1.5 liter bottles; 1 liter bottles; 300 ml bottles and 250 ml bottles
PLACE
Today you have to run faster to stay in the same place
(Philip Kolter) In 1996, the beverage giant began its bottling plant acquisition by purchasing its Karachi Bottling plant. Moving forward other bottling plants were acquired including Hyderabad in 1997, Gujranwala/ Sialkot in 1998, Faisalabad in 1999 and finally the Rahim Yar Khan, Multan and Lahore bottling plants in 2000. it is not worthy that significant volume growth has been registered at all of these since their inception. The second authorized bottling partner Khattak group operates two plants namely Makk Beverage Pvt Ltd and Sahi Beverage Pvt Ltd in Rawalpindi with 55 and 63 distributors respectively. The general managers of these plants are Mr. Zufiqar Hussain. The company has thus far invested over $100 million in Pakistan. In the year 2000 the Coca Cola Company surged with the marketing activities to re-ignite its beverage and brand identities. The Coca Cola beverage are produced and sold in Pakistan by the companys authorized two local bottling partners at 8 bottling plants. In addition, sales and distribution center have been established in all major cities of Pakistan. Cola is easily available in every store in Pakistan and in almost every city whether small or big . IslamabadPakistan is the second largest market of Coca-Cola after Turkey in the Eurasia and the Middle East Division spread over 23 countries and lot of scope is there for its expansion. This was stated here on Friday by the Coca-Cola Public Affairs and Communication Director Gurtay Kipcak and Windy R. Sherman of The Albright Group in a panel Interview with Pakistan Observer. The Panelists included Mahmood Hussain and Abu Talha. They said Coca-Cola is in Pakistan for the last 53 years and our business had been steadily growing. They said for all practical purposes Coca-Cola had become a Pakistani company with its business growing day by day. For the last two years it had shown remarkable growth rate and the growth had been registered in double digits.
10
PROMOTION
If you want a place in the e sun, youve got to put up with a few blisters.
(Abigail Van Buren) Sales promotion Coke has not remained behind doing its sales promotion. In general stores it uses coke cartoons to attract customers. Coca cola has followed all the main kinds of sales promotion strategies. For e.g. Consumer promotion:- it increased the sales during 1990`s a lot so that people would see coca cola in every store and have an intention to buy it . Trade promotion: - it has always kept on introducing new products to keep the retailers busy and keep all the shelves packed with its product. For e.g. the introduction of Diet coke, Fanta lemon, Sprite and many new products. Price promotion: - coca cola has always used price promoting strategies. It always reduces the price of its products. And offers them at discounted rate at special occasions like Christmas etc. Advertising:Promotion can also be done through advertising .And coca cola also uses this strategy to attract more and more customers to itself. It uses a lot of ads for its promotion it has always the most expensive stars for its promotion like the tennis star Andre football star David Beckham and it also uses a lot of cricketers in countries like Pakistan and India where there is craze for these things .You can easily see billboards filed with coca cola ads. It never feels shy spending a lot of money on advertising because it always pays off.
PRICE
11
ATTRIBUTES AND FEATURES: Coca cola is a refreshing soft drink .the basic features of coca cola are Caramel Color Phosphoric Acid Natural Flavors Caffeine Carbonated Water High fructose corn syrup
140 0g 50 mg 0% 2%
39 g 13 %
12
Sugar
39 g
Protein
0g
0%
Coca cola has the following main attributes: Refreshing: - Coke is considered to be a very refreshing soft drink and is a drink loved by todays generation. Not only the teenagers love it but it is also famous among the elders, who get amazed by its sensational taste. Non alcoholic: - Coca cola is non alcoholic drink therefore it is easy for everyone to use it because in certain religions, like Islam there is restriction on drinking alcoholic drinks. Size availability: - Coca cola is available in every size. From a litter bottle to cans and the small easy to carry bottles. Cola has created convenience for different consumers keeping in mind all the problems or difficulties that a customer could face using the product. Product line :- Coca cola has introduced many new product extensions and launched many new products like , fanta , diet coke etc.
13
DISRIBUTION CHANNEL
Coca Cola Company uses 3 different ways of distribution. 1. 2. 3. direct distribution indirect distribution intermediaries
Direct distribution 67% of the companys total distribution is done by direct distribution that is company uses its own transport and reach the retailers and the retailers sell them at the actual suggested price by the company. Indirect distribution 17% of the indirect distribution is done by the wholesaler whose final consumers are their own customers and there is no fix territory in the whole seller. Marketing intermediaries The final and third way of distribution which Coca Cola Company has adopted is marketing intermediaries through like McDonalds-sell products of Coca Cola to their customers and promotes their name as well.
14
Institutional sales are covered by the key accounts manager. These institutes are given some extra benefits and very good service but the company does not provide any customized product to these key institutes other than the fountain fresh. Company differentiates it on the basis of service from the ordinary accounts.
15
MARKET SHARE
The share of CCBPL is 35% of the total beverage industry. Out of this, Coca colas share is 22% of the total beverage industry. Coke contributes around 65% of the total sales of CCBPL.
Pepsi 54%
16
GROWTH RATE
Coca Cola was first produced in Pakistan, in 1953, followed by Fanta in 1965, Sprite in 1972, Diet Coke and Fanta Lemon in 2001. In 1996, the beverage giant began its bottling plant acquisition by purchasing its Karachi Bottling plant. Moving forward other bottling plants were acquired including Hyderabad in 1997, Gujranwala/ Sialkot in 1998, Faisalabad in 1999 and finally the Rahim Yar Khan, Multan and Lahore bottling plants in 2000. It is not worthy that significant volume growth has been registered at all of these since their inception. The second authorized bottling partner Khattak group operates two plants namely Makk Beverage Pvt Ltd and Sahi Beverage Pvt Ltd in Rawalpindi with 55 and 63 distributors respectively. The general managers of these plants are Mr. Zufiqar Hussain. The company has thus far invested over $100 million in Pakistan. In the year 2000 the Coca Cola Company surged with the marketing activities to re-ignite its beverage and brand identities. The Coca Cola beverage are produced and sold in Pakistan by the companys authorized two local bottling partners at 8 bottling plants. In addition, sales and distribution center have been established in all major cities of Pakistan.
17
COMPETITIVE STRATEGIES
Brand recognition is the significant factor affecting Cokes competitive position. Coca-Colas brand name is known well throughout 90% of the world today. The primary concern over the past few years has been to get this name brand to be even better known. Packaging changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products.
The primary competitor of the Coca-Cola Company is Pepsi. Pepsi and Coca-Cola make up anywhere from 75% to 90% of the market wherever they operate. Since the industry follows FDA regulations, much legislation have been passed to control the companys actions. The most commonly known is that Coca-Cola use to instill a small amount of cocaine in their drinks in order to enhance flavor as well as create an addiction. Pepsi Co, and The Coca-Cola Company are two of the largest and oldest archrivals in the carbonated soft-drink industry. The war between the soda giants, also known as the "Cola Wars", initiated in the 1960s when Coca-Cola's dominance was being increasingly challenged by Pepsi-Cola. The competitive environment between the rivals was intense and well publicized, forcing both companies to continuously establish and 18
implement strategic changes as a means to create a competitive advantage. The rivalry fostered and stimulated continuing growth in an industry in which many predicted in the early 1970s to be on the verge of maturity. Reasons for the prediction came from the fact that further growth of per capita consumption of soft drinks are limited to how much people are able to consume on a daily basis. Furthermore, both Pepsi and Coke offered a limited number of products that "looked the same, tasted the same, and bubble into foam the same" (252); thus, questioning whether further substantial growth in sales was possible. Rather than succumbing to the impending maturation of their domestic market, the two industry leaders, fostered by the competitive intensity, launched new strategies, such as product modifications, new forms of pricing and promotion, and fundamental changes in its distribution system, that have led to rapid and continued expansion of both company's domestic sales. By forecasting and responding to changes in the economic, political, social, and technological environments, Pepsi and Coke have successfully innovated in marketing, distribution, and product development. The soda rivalry also initiated both companies to seek international markets and diversification strategies in order to increase their sales growth. Rather than targeting every market, Pepsi focused on the demographic environment. Pepsi foresaw the mass appeal of the youth generation for soft drinks and in 1961 divulged the successful slogan Now, Its Pepsi, for Those Who Think Young. The campaign was such a success that Pepsis sales growth outperformed that Coca-Cola. Marketing strategies began to take broader dimensions as the soft drink industry continued to expand and became more complex. In 1976, Pepsi introduced the Pepsi Challenge in its campaigns, a moved that directly challenged Coca-Colas longstanding dominance. Coca-Cola responded to the challenge by price discounting. Pepsi campaign shifted the company from the bargain brand image to a contender of Coca-Colas quality image, while Coca-Cola changed to a bargain strategy. Pepsi aggressively responded with its own price cuts and Coca-Cola in turned matched the company.
As far as attacking competition is concerned in Pakistan, coca cola is a follower of Pepsi. Pepsi in its early growth stages adopted a strategy that is to enhance the market coverage they started to target he youth through sponsoring music and cricket, being two the most favorable interests of the youth. In reference to targeting the youth through music coke is now 19
sponsoring singer like Abrar-ul-Haque and internationally recognized band like Junoon.
20
2.
Introduction Stage
Before Coca Cola came into Pakistan in 1953 the country had no national soft drink industry. A couple of regional companies did exist but with few exceptions, soft drinks were merely produced locally by hundreds of small often one-man unit. Operations of these units and the quality of the products were to say the least, questionable. The treated tap water was used widely product standards varied greatly , quality control was almost non existent, bottling and bottle washing facilities were often primitive, cooling facilities for bottled products were almost irregular and seldom extended beyond a five mile radius of the production unit. Coca-Cola Company was incorporated in 1953 as a successor to the business of a company with the same name that had been organized in 1892 at Atlanta. It not only brought new flavors but also enabling Pakistan to share with the rest of the world an old and trusted soft drink. It brought a totally new concept of hygienic and modern production, quality control, distribution and marketing techniques.
3.
Growth Stage
One of the greatest strength of Coca Cola enables to conduct business on a global scale while maintaining its focus on individual local territories.
21
Bottlers use in depth understanding of the local business environment to offer brands and services to meet the unique local needs ensuring the highest standards of produce quality and uniformity. Bottlers serve as strategic business partners to the company on every major continent and leaders in global bottling system. The Coca Cola Company and bottlers take advantage of virtually limitless worldwide growth opportunities.
4.
Maturity Stage
Till 1985 Coke was market leader. In 1987 Coca Cola faced slowdown in sales as it loses its concentration towards the bottling system and brand system. In 1986- Pepsi Cola revamped all its strategies especially the Bottling system. Pepsi started targeting the sport fans and gradually captured the sports market. Pepsi was also sure that young generation is fond of Music so it also doing music marketing. Through these strategies it started living in the hearts of new generation specially the teenagers and early 20s. In 1994-1995 Coca Cola realized its main cause of downfall and in order to gain it position back it modified the product by introducing 300ml to inspire more usage. It also modified the marketing mix by cutting down its prices and introducing a scheme of saving Rs.50 with McDonalds Combo Meal offer.
22
RECOMMENDATIONS
Since its inception the Coca Cola Company falls into the category of broad beverage market. It has got a large number of potential and actual buyers. So far they are segmenting all sorts of consumers from youngest to the oldest. In my opinion they should rather emphasize more towards the teenagers as these people will be the brand loyal of the future. Coca Cola Company has set a different framework for each segment there fore it should not mix all of them and must maintain the difference among each segment. While targeting the customers they must adopt such a targeting strategy that will apply on both the new users and current users. In order to increase its market share coke can go for flank attack by targeting any of the institutions like CBM, AMI or Preston in Karachi and NCA in Lahore. They can take over their cafeterias and sponsor them on the contract basis. Contract like coke would repaint the cafes and return for a certain years as per contract these institutes will use coke as their official drink. In many far flung areas of Landhi, Orangi and many others, the companys market developers rarely pay a visit. This not only affect companys sales but also image. Therefore more market developers be selected and properly spread to target these neglected areas.
23
FUTURE
As indistinguishable as the product itself, Cokes marketing strategies have been no different. Relying on colorful images, lively words, beautiful people, interesting bottle designs, and contagious jingles, Coke propelled its respective products into the American and international mainstream. The changing faces of Cokes management, however, facilitated the brand image according to its own style and what it saw as an advantageous competitive approach. This style and approach is what makes Coca-Cola distinguishable. All these things are intended to remind people to purchase Coca Cola. Thus we concluded that in future coca cola sales will increase but it has to face direct competition from Pepsi. As compared to Pepsi, coca colas sales are declining day by day. To maintain its position in the consumer market it has to follow some powerful strategies.
24