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We are thankful to ALLAH ALMIGHTY, by HIS assistance , we have accomplished our task. We would like to thank all the people who directly or indirectly helped us to achieve this target. We would like to take to thank Mrs.Sajida Nisar, our teacher for the course of Marketing at the Institute of Business Administration, University of the Punjab,for her valuable support and encouragement which she has offered. Her words of wisdom will always be remembered, and we are convinced that the knowledge of marketing that she has imparted would go a long way in making good marketers and helping us all through our professional careers. This report cannot be solely attributed to our efforts but it is indeed the joint effort of many friends and well-wishers. There were times in the course of preparing this report when things were tough and the future seemed dark. It could not have been possible to write it, without the immense help of a few individuals to whom we would like to offer our gratitude. Thanks a lot!
INTRODUCTION
Coca-Cola is a cola (a type of carbonated soft drink) sold in stores, restaurants and vending machines in more than 200 countries. It is produced by The Coca-Cola Company and is often referred to simply as Coke. Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century.
Executive summary
Giant soft drink company Coca Cola has come under intense scrutiny by investors due to its inability to effectively carry out its marketing program. Consequently it is seeking the help of Polianitis Marketing Company Pty Ltd to develop a professional marketing plan which will help the business achieve its objectives more effectively and efficiently, and inevitably regain there iron fist reign on the soft drink industry.
OUR MISSION
Our mission declares our purpose as a company. It serves as the standard against which we weigh our actions and decisions. It is the foundation of our Manifesto. 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.
OUR VISION
Our vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable growth. People: Being a great place to work where people are inspired to be the best they can be. Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Being a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities.
HISTORY
International:
Coca-Cola laid the foundation of the beverage industry when it was formed in May 1886 in Atlanta. However it was not until 1895 that
the idea of selling coke in bottles was introduced. With the passage of time Coca-Cola gained popularity and its product began to get recognized internationally. Thus from its mere beginning in 1886 Coca-Cola has now been transformed into a strong multinational with its product being currently recognized all over the world. Coca-Cola, in fact, has now become one of the most famous and widely consumed brands in the world. It has not only established its footings in the beverage industry but is currently heading the list of the most financially sound companies in the world.
Pakistan:
Although Coca-Cola is not a new name for the local market, Coca-Cola Beverages Pakistan Limited (CCBPL) began its operations on 26 May 1996 in Pakistan. Coca-Cola Beverages Private LTD (CCBPL) is a joint venture between Coca-Cola International, Fraser and Neeves Singapore and Package Ltd. Initially it acquired National Beverages LTD Karachi and later acquired International Beverages LTD Hyderabad .In May 1996 Fraser and Neeves, a Singapore based bottler of Coke, bought off the local bottlers in Karachi.
Market Analysis
The market analysis investigates both the internal and external business environment. It is vital that Coca cola carefully monitor both the internal and external aspects regarding its business as both the
internal and external environment and their respective influences will be decisive traits in relation to Cokes success and survival in the soft drink industry.
must conduct continual appraisals of the businesss operations and readily act upon any factors, which cause inefficiencies in any phase of the production and consumer process.
QUICK FACTS
Established: 1886 Ranking: Own 4 of the world's top 5 nonalcoholic sparkling beverage brands
Associates: 90,500 worldwide Operational Reach: 200+ countries Consumer Servings: (per day): 1.5 billion Beverage Variety: more than 2,800 products
OBJECTIVES
All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and Timed. Specific - Be precise about what you are going to achieve
Measurable - Quantify you objectives Achievable - Are you attempting too much? Realistic - Do you have the resource to make the objective happen Timed - State when you will achieve the objective
COCACOLAS OBJECTIVES
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
can be explaining with the help of following FOUR fictitious business symbols.
STARS :- Stars are high growth business competing in market where they are relatively strong compared with the competition. They have a high point shares and are the ideal businesses.
CASH :- Cash cows are low-growth business with a relatively high point shares. These businesses were stars but now have lost their attractiveness.
QUESTION MARK :- Question marks are businesses with low point share but which may have a high growth rate. This suggests that they have potential but may require huge ever, a competing force extraordinary effort in order to grow point share.
DOGS :- The term dog refer to businesses that have low relative share and low expected growth rate. Dogs may generate enough points to sustain but they are rarely, if ever, a competing force.
NOW ONE BY ONE POSITION OF EVERY PRODUCT OF COCACOLA WILL BE KNOWN WITH THE HELP OF BCG MATRIX. MORE OVER THIS POSITION HAS BEEN DECIDED ON THE BASIS OF THE SURVEY WHICH HAS BEEN CONDUCTED AND RESULT OF WHICH IS ALSO GIVEN IN CHAPTER IV.
POSITION OF COCA-COLA
POSITION OF SPRITE
POSITION OF FANTA
PRODUCT DESCRIPTION
Brand Name: Coca-Cola
Coca-Cola: Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. Created in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886, patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. In 1899, The Coca-Cola Company began franchised bottling operations in the United States. Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal.
Fanta: Available in Europe since the 1940s, Fanta was introduced in the United States in 1960. Consumers around the world, particularly teens, fondly associate Fanta with happiness and special times with friends and family. This positive imagery is driven by the brand's fun, playful personality, which goes hand in hand with its bright color, bold fruit taste and tingly carbonation. Beginning in 2009, the U.S. markets will see Fanta Regular Orange, Fanta Zero Orange, Fanta Apple and Fanta Grapefruit in 100% natural flavors. Available in the following flavors: Aloe Vera Muscat, Apple, Apple Grape, Apple Kiwi, Apple Peach, Apple Vanilla, Apricot, Banana, Banana Fermented Milk, Berry, Berry Blackcurrant, Berry Cherry, Berry Orange, Birch Beer, Bitter Herbal, Bitter Orange, Bitter Water,
Blackcurrant, Blackcurrant Blueberry Raspberry, Blackcurrant Lemon, Blueberry, Blueberry Salacider, Bubble Gum, Cherry, Citron, Citrus Blend, Club Soda, Coconut Pineapple, Cranberry, Cranberry White Grape, Floral Lemon, Fruit Punch, Fruit Punch Orange.
Introduced in 1961, Sprite is the world's leading lemon-lime flavored soft drink. Sprite is sold in more than 190 countries and ranks as the No. 4 soft drink worldwide, with a strong appeal to young people. Millions of people enjoy Sprite because of its crisp, clean taste that really quenches your thirst. But Sprite also has an honest, straightforward attitude that sets it apart from other soft drinks. Sprite encourages you to be true to who you are and to obey your thirst.
Kinley water is a fresh and mineral water and market competitor of Bisleri and Aquafina.
In Minute maid pupply orange cold drink no gas only based on orange juice. It is a non-aerated soft drink and market competitor of Tropicana Twister
Coke in total coke sales = Rs. 2.5 billion (5% of cokes annual sales) Total current unit sales = 14 m @ 18 per unit
Total industry: to increase market share in beverage industry from 40% to 48%.
Cokes Overall Sales: to increase share in cokes annual sales contribution from 5% to 6%.
Sales Objectives:
Rupees Value: To increase annual sales of NRG bottle from Rs. 2.5 billion to Rs. 3 billion.
Unit Sales Objectives: To increase annual unit sales of NRG Coke from 14m units to 17m units @ Rs. 18 per unit.
Product
INGREDIENTS OF COCACOLA
Carbonated Water Sugar Colour (Caramel E150d) Phosphoric Acid Natural Flavourings (it's a coke secret) Flavouring (Caffeine) The product which is non returnable glass bottle containing the 250 mille litters of coke liquid. It is a superior quality product.
Objective
As non returnable glass bottle is already a superior quality product so we will be trying to maintain the over all quality.
Strategy
To continue with the same bottles with following recommended changes,
Packaging: adding to the current packaging sticker a new and on going tag line of JUSHAN MANA LEY or BRRRRRRRR
Bottle cap: change the routine bottle caps and come up with attractive and consumer friendly caps as per consumers convenience.
Price
Objective
The research we have conducted for this project reveals that the price is not an issue for our target market, so we do not go for any changes but we shall definitely try to deliver a superior customer value to our customers at the existing price.
Strategy
We shall go for the current existing price, without increasing or decreasing it i.e. Rs.18. The product shall be designed in such an effective way that it delivers the consumers a superior value than competitors products.
between Coca Cola & Pepsi is a healty one that each corporation has learned to appreciate. Throughout the years Coca Cola has made many pricing decisions but one might say that their ultimate goal has always been to maximize shareholder value. As cola consumption has decreased in the US colas have come to realize the untapped international market. In 2003 both Coke and Pepsi had a solid presence in India and had each introduced a 300mL bottle. In order to grab market share Pepsi began to drop prices (even with summer approaching, which was contrary to policy in America). Shortly thereafter, Coca Cola decided to drop their prices slightly, but focused on the reduced price point of their 200mL container. Coca Cola planned to use the lower price point to penetrate new cities that were especially price sensitive. The carbonated soft drink market in India is nearly 37% of the total beverage market there. This low price strategy was not unfamiliar to Coca Cola. As referenced in the HBR article, Cola Wars Continue: Coke & Pepsi in the TwentyFirst Century, both bottlers utilized a low price strategy in the early 1990s. After annihilating the low price store brands, Coke chose to reposition itself as a "Premium" brand and then raise prices.
Place
Objective
We want to make our product available at different key points like; Schools, universities, airports, railway stations, cinema halls, entertainment parks, high ways, small and large stores, and suburbs of the cities.
Strategy
We will redesign the distribution network and make it more efficient so that it could reach to those areas where there is demand for this product. We will be using push strategy for this product so that it could penetrate the market and cater the potential consumers by giving more incentives and margins to retailers.
Distribution
The place P of the marketing mix refers to distribution of the productthe ways of getting the product to the market.The distribution of products starts with the producer and ends with the consumer. One key element of the Place/Distribution aspect is the respective distribution channels that Coca Cola has elected to transport and sell its product.
Promotion
Objectives
Our objective regarding promotion for none returnable glass bottle is to become firstly into the awareness set of our target and potential customers, than definitely into the consideration set and last but not the least into the usage set of our target market.
Strategy
As we all know that cokes latest BRRRRRR promotional campaign is currently getting a large deal of consumers interest and has created hype amongst the consumers. The TV commercials and the print ads are all showing the bottles in them. So it clearly means that is into the awareness set of the target market as well as that of the potential market which are the buyers of soft drinks, non carbonated drinks, juices and energy drinks. Now the question is about the consideration set strategy and the usage set strategy.
Trade sales promotion method: Trade sales promotion is an incentive given to middle man to buy Goods in large quaint form the producer or manufacturer. The main sales promotion methods are such as: Discount Display and advertising allowance Buy-back allowances Store demonstration free goods free tours etc. 3.Sales promotion method: Sales promotion method is those methods which intended to motivate the sales force to increase sales. These methods 40 support a sales man to perform his job more effectively and sincerely. Bonus to sales force Sales force contests Sales meeting convention and conferences Promotion strategies A promotion strategy is an important element of market strategy. A key ingredient in marketing campaigns consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or trade. Co-operate objective Marketing objective Marketing Strategy Promotion Production Advertising Pricing Sales promotion Distribution Personal selling Publicity
PACKAGING
Packaging, which is not as highly perceived by businesses, is still an important factor to examine in the marketing mix. Packaging protects the product during transportation, while it sits in the shelf and during use by consumers, it promotes the product and distinguishes it from the competition. Packaging can allow the business to design promotional schemes, which can generate extra revenue and advertisements. CocaCola has benefited from packaging the product with incentives and endorsements on the labelling as a promotional strategy to increase its volume of sales and revenue.
Branding
It is often hard to say exactly why we buy one companys product over another. Companies such as Nike and Adidas spend large amounts of money trying to win consumers away from their competitors who make products that are very similar. The popularity of the brand is often the deciding factor. Over the time Coca Cola has spent millions of dollars developing and promoting their brand name, resulting in world wide recognition. 'Coca-Cola' is the most recognised trademark, recognised by 94% of the world's population and is the most widely recognised word after "OK". Coca Colas red and white colours and special writing are all examples of world-wide trademarks. .
Market segmentation
Coca-cola segment its market on the basis of following factors: Geographic Psychographic Demographic Behavioral
Demographic variables
Age
Gender
The second factor that they use to segment their market is gender that whether they will target or focus on male or female.
Psychographic variables
They have segmented the market of coca-cola according to psychographic variables such as:
Social class
Lower class Upper lower Working class Middle class Upper middle Lower upper Upper uppers CC+ C B B+ AA
TARGETING MARKETING
The cocacola company measures the entire market segments attactiveness and decides what marget segments it should target for spirite zero. 1. Specially female who are diet conscious 2. A+,A-,B+ and B are special classes
The main target market for our product is YOUTH which are; University going students Age ranging from 18 years-29 years. Both genders; males and females.
MARKETING POSITIONING
From our research, we have come to know that we will be repositioning our products among our market through More for Same strategy.
They position sprite-zero that this is a cold drink for the people who can challenge norms while remaining in boundries of Pakistan and who take the life less seriously. It has brand personality of CONFIDENCE so the person who is or wants to be confident and daring will prefer the sprite-zero. There is a thin line on which they position there product in the marketing.
Sales Targets
We plan to achieve 25% of our annual sales by generating Rs. 75 million and 4.1 million units of Coke NRG bottles.
Sales Targets
We plan to achieve 35% of our annual sales by generating Rs. 105 million and 5.83 million units of Coke NRG bottles.
Sales Targets
We plan to achieve 30% of our annual sales by generating Rs. 90 million and 5 million units of Coke NRG bottles
Sales Targets
We plan to achieve 20% of our annual sales by generating Rs. 60 million 1.74 million units of Coke NRG bottles.
SWOT Analysis:
SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a technique much used in many general management as well as marketing scenarios. SWOT consists of examining the current activities of the organisation- its Strengths and Weakness- and then using this and external research data to set out the Opportunities and Threats that exist.
STRENGTHS
Strong Mutinational:
Coca-Cola has a brand name that holds its own prestige in the world market. The multinational entity of the Coca-Cola Pakistan gives it an edge upon other competitors. The management of this beverage company comprises of one of the most professional people and the strong financial firmness guarantees it a solid backing to sell its products.
Quality Of Products :
The product quality has improved due to upgraded quality of packaging and the ameliorated liquid in comparison to its competitors. My personal experience is that the product quality and taste is far better than any product of its kind and also the improvement in packaging and the commencement of plastic shells has received a favorable response from the dealers and the loader.
Regular Supply:
The regular supply of the products is another strength of the company. The products are regularly supplied to the dealers through proficient means of delivering and distribution has given Coca-Cola Pakistan an added advantage. Coke trucks supply the products regularly and always have the desired products for the dealers.
Availability Of Products:
In the past Coca-Cola was not available in abundance but now stiff measures has been taken to increase its availability. The increase in the procurement of Coca-Cola has done through new supply and distribution measures and advertising campaigns
WEAKNESSES
Motivational Factors:
The employees lack motivation simply because of the huge communication gap between them and the management. Thus grievances reign high for they feel that their problems and recommendations are not being aired the top management. The workers expect to be adequately satisfied in terms of their salary and compensations
Less Availibity :
The product is not available to the extent that it should be. If Coca-Cola wants to make an impact in the market they will have to do more than they are doing at the present moment.
Lack Of Promotion:
Promotional activities have been greatly neglected in many areas. In an interview with the route officer and a few salesmen it was clear that for areas such as Nazimabad and Liaquatabad no heed has been paid both to the singe and promotional activities. This indeed results in a high degree of difficulty for coke in penetrating the market.
Lack Of Coordination:
In the factory there is a co-ordination lag between the activities of the marketing, sales and repairing departments. The sales department complains that the marketing department does not pay any heed to their problems. The sales department also complains that the
repair of the visicoolers is always delayed. Until or unless Coca-Cola restructures its co-coordinating activities the availability of its product would be always delayed.
OPPORTUNITIES
New Markets:
We know that Coke came to Pakistan in 1996 and since it is working hard to develop its market. We think that Coca-Cola can secure new dealers and buyers of its product as still large part of the country is still devoid of its products. It can promote its products in the younger generation by targeting the new outlets being opened due to improved law & order situation and a growing population.
THREATS
Fake Products:
Fake beverages by the name of coke are being supplied by unknown people. Such activities really hamper the companys name and its brand originality. Above all the fake beverages supplied are almost similar to the taste of the original Coke brand and not everyone can decipher the difference between the original and the fake product. This is in fact a
great threat to Coca-Cola for unworthy people is taking advantage of its brand name and spoiling its good name in the market.
Competitors Schemes:
For the purpose of promoting its product, Coca-Colas competitors have been doing much more than Coke itself is doing. For example Pepsis signage operations have been very successful. In addition to this Pepsi is also giving very liberal credit policies to its dealers, which gives the dealers a greater incentive to buy Pepsi rather than Coke.
Marketing Budget
20 percent of NRG Coke sales (6 billion * 0.02) = Rs. 120 million
Item
Distribution Networking Distributors margin Retailers Margin Product Stalls Cokes overall budget contribution Shop keeper Billboard Consumer promotion Lucky draws Lucky prizes (wrist watches, I pods, cell phone, pen drives etc.)
Unit
15% of MB 15% of MB 30% of MB 30 @ 35000 120*0.06
Expenditure
18 m 18m 36m 1.5m 7.2m
TOTAL
Rs.120 million
SOCIAL RESPONSIBILITY
Coca-Cola, the corporation nourishing the global community with the worlds largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving a new thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nations top soft-drink brand and bottling network. Its no wonder our brands have assumed an iconic status in the minds of the worlds consume.
Our promise
The Coca-Cola Company believes our business has always been based on the trust consumers everywhere place in us-trust that is earned by what we do as a corporate citizen and by our ability to live our values as a commercial enterprise.