MARKET ANALYSIS OF COKE

2. MARKET ANALYSIS OF COKE PEST, SWOT, MARKET ENVIRONMENT ANALYSIS

3. 1. 2. 3. Muhammad Ali Bhatti Raja MuradSaqib Muhammad Ghayas Yousafzai Group Members BBA &Bsc –A/F

5. Background • Coke was established in 1886 by John S. Pemberton in Columbia, Georgia. • In 1889 Coca Cola formula and brand was established by Asa Candler who also incorporated Coke in 1892. • Bottling business began in 1899. • Non-alcoholic beverage concentrates and syrups throughout the world. Know the most recognized word on planet after ‘OK’

6. John S. Pembertson Declaration

7. Coke Profile

8. Coca Cola Pakistan • Started operating in Pakistan in 1953. • CCBP (Coca Cola Beverages Pakistan Limited). • Plants located in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan, Multan and Lahore. • Two independent plants in Rawalpindi and Peshawar. • Serves 70,000 customers and retail outlets. • Employs 1,800 people in Pakistan.

9. Mission Statement

10. Mission Statement • To refresh the world - in mind, body and spirit • To inspire moments of optimism - through our brands and actions • To create value and make a difference everywhere we engage

11. Vision And Goals • Maximizing return to shareholders • Being a great place to work • Bringing to the world a portfolio of beverage brands • Nurturing a winning network of partners and building mutual loyalty • Being a responsible global citizen that makes a difference • Highly effective, and fast-moving organization

12. What Coke Cares about??

13. The Six key Beliefs • Consumer 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. • To be the best marketers in the world. • Think and act locally. • To lead as a model corporate citizen.

14. Coca Cola Values Values • Leadership • Passion • Integrity • Accountability • Innovation • Quality

15. Major Products Of Coca Cola Coke (1953) Sprite(1972) Products Diet Coke (2001) Fanta (1965) Kinley Drinking Water Minute Maid And Juices

16. PEST Analysis

17. External environment (Macro) Political Factors • Government has control over Coke manufacturing activities by setting standards of law • Changes in taxation and environmental laws • Political conditions, civil unrest and restrictions on the ability to transfer capital across borders • Arab nations boycotted Coke’s products due to a political dispute and discontented with the company for maintaining distributors in Israel.

18. Economic Forces • Changes in consumer spending habits • Economic crisis makes consumers to cut down their spending • Inflation • Worse economic situation after 9/11

19. Social • Culture has a tremendous effect on people’s preferences and perception • Many U.S. citizens are practicing healthier lifestyles. • Language is one of the aspects of culture that marketers must take care of

20. Technological Forces • Introduction of new machineries all the time • The new technology of internet and television which use special effects for advertising through media • Speedy delivery –Wakefield factory has technology to produce cans of Coke faster than bullets from a machine gun

21. External environment (Micro)

22. External environment (Micro) Suppliers • Coke considers its suppliers as a partner in their business. • Extensive training – to keep good relations and maintain quality product. • CCBSS(fructose corn syrup) • Nutrasweet and Ajinomoto ( Acesulfame potassium) • Tate and Lyle (Sucralose)

23. Marketing Intermediaries • Retailers • Wholesalers • Resellers • To build traffic and strengthen operations.

24. Customers • Customer satisfaction is considered as being the most important and vital things in Coke progress. • Coke dedicates a page on their website for customers Competitors • Coke’s main rival is PEPSI • Constantly developing new products for its customers

25. Muhammad Ali Bhatti

26. Market Summary

27. Marketing Mix • Product • World’s most favorite brand • FMCG distribution pattern • Wide range of soft drinks • Core product , Augmented Product, Actual product

28. Promotion • Targeting value based advertising. • Allows price discounts and allowances to distributors and retailers • Push strategy and Pull strategy • Most widely recognized word after "OK".  

29. Marketing Budget

31. Billboards • Coca-Cola will cover each region with 500 sq. ft • The three different rates of billboards are PKR 40000, 70000 and 125000. • The total estimated cost of billboard advertisements will come to PKR2,600,000.

32. Place • Wide scale distribution. • Coke sets its own distributions directly to stores Supermarket • Available nationwide and worldwide

33. Price • Each sub-brand of Coke has different pricing strategy according to the market and its segments • Pricing is done keeping in view the increasing rivalry with Pepsi • Pricing is basically standard for all over the world

34. SWOT ANALYSIS

35. Internal

36. External

37. Marketing Strategy • To listen to all the voices around the world asking for beverages • to contribute to communities around the world through our commitments to education, health, wellness, and diversity. • Determined to make great drinks

38. Marketing Objectives • To increase volume • To Expand worldwide nonalcoholic ready to drink beverages • Improving economic profit • Coke aim is to focus on enhancing value for their customers.

39. Major Segments • Demographic Segmentation (Age, Income, Family size) • Behavioral segmentation • Segmentation health wise • Coke segments its market upon their demands

40. Market Demographics In Pakistan Coke’s share is only 36%. • POPULATION 176,242,949 (July, 2009 estimated) • CHILDREN 37.2% (65,607,612) • ADULTS 62.8% (110,680,572) • CHILDREN EQUITY 60% (14,643,619) • ADULT EQUITY 40% (27,802,960) • TOTAL TARGET MARKET: 42,446,579

41. Market Positioning • Open happiness – varieties of advertisements and taste • Coke spends lots of money to make a different creative slogan for targeted people • Positioning statement of Coke To all, who wants best drinks to quench their thurst, by providing the best quality and taste in an affordable price.

42. Raja MuradSaqib

43. Product Life Cycle of Coke • Coke is in maturity stage but gradually moving towards the declining stage of the life cycle. • The company must now determine whether they will stop producing Coke, change the soda, seek new markets for the soft drink or if they will maintain their current strategy. • Coke’s sales have increased by 1.02% compared to last year. This percentage has no comparison to the high level of growth Coke enjoyed during its growth stage.

45. Brand Development Strategy • Coke believes in selling out the best products to its customers to retain them with their products. • The company also invested in various advertisement campaigns often engaging the services of celebrities around the globe.

46. Brand image • There could be hardly any person around the world that hasn't heard the name Coca Cola ever since it begins as world leading name in cold drinks. • Millions of people around the world are consuming Coke as part of their daily meal. • Brand image is the significant factor affecting Coke’s sale.

47. Strategies Of Getting Goals Coke’s main strategies are as follows • Volume can be increased • Interest level of consumers • To take part in festivals and events • Diversification • By launching new Flavors

48. Promotion Strategies • Getting shelves • Eye Catching Position • Advertisement : Print media Electronic media TV commercial Billboards and holdings

49. Sales Promotion Activities • Coca-Cola Cricket • Coca-Cola Concerts • Coca-Cola Food Mela • Coca-Cola Basant Festival • Coca-Cola GO-RED • Coca-Cola Party in a Park • Coca-Cola Shopping Festival • Coca-Cola Pet Promotion • Coca-Cola Ramzan Campaign • Coca-Cola Wonder of the World Promotion • Coca Cola TV Mazza • Coca-Cola & Mc Donald's • Fanta & Sprite Launched • Coke Studio

50. Financial Analysis