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Table of content

EXECUTIVE SUMMARY

The scope of the project is to make research on marketing functions andstrategies adopted by Coca cola beverages Pakistan ltd.(CCBPL). Thesemarketing functions mainly include the marketing mix i-e, Product Strategy,Pricing Strategy, Pricing Tools and Strategies and Promotional activities ofcoca cola. 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 creatingcompetitive advantage adopted by Coca Cola. We will like to add that the

project will provide the readers and listeners very high profile informationabout the marketing strategies as a whole and also about the Coca ColaCompany. In the end we hope that the project will result very beneficial forthe readers.

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ACKNOWLEDGEMENT

First and foremost, we are grateful to ALLAH ALMIGHTYmost beneficent and the most merciful Who made us able to complete our

given project. We would also like to pay tribute to the benefactor ofhumanity 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 andevery moment prays for our success and provide us with every kind of

facilities. We are also deeply thankful to our teacherMr N.A.Jafferi who guideus throughout the semester and give maximum and very productive knowledge about

marketing.

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Introduction

Brand name: Coca-colaCompany name: Coca Cola beverages Pakistan ltd.Parent company: The Coca -Cola Company.Country of origin: United State.Type of product : Soft drink.

Logo/Trade mark:

HISTORY OF COCA COLA:

In May 1886, Georgia pharmacist John Styth Pemberton succeeded in

creating what he intended, a temperance drink. He prepared this syrup

as a medicine and distributed it. John Pemberton concocted the CocaCola formula in a three legged brass kettle in his backyard. The name

was a suggestion given by John Pemberton's bookkeeper Frank

Robinson. Being a bookkeeper, Frank Robinson also had excellent

penmanship. It was he who first scripted "Coca Cola" into the flowing

letters which has become the famous logo of today. The soft drink was

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first sold to the public at the soda fountain in Jacob's Pharmacy in

Atlanta on May 8, 1886. About nine servings of the soft drink were sold

each day. Sales for that first

year added up to a total of about $50. The funny thing was that it cost

John Pemberton over $70 in expenses, so the first year of sales were a

loss. Until 1905, the soft drink marketed as a tonic, contained extracts

of cocaine as well as the caffeine-rich kola nut. In 1887, another Atlanta

pharmacist and businessman, As a Candler bought the formula for Coca

Cola from inventor John Pemberton for $2,300. By the late 1890s, Coca

Cola was one of America's most popular fountain drinks, largely due to

Candler's aggressive marketing of the product. With As a Candler, now

at the helm, the Coca Cola Company increased syrup sales by over

4000% between 1890 and 1900. Advertising was an important factor inJohn Pemberton and As a Candler's success and by the turn of the

century, the drink was sold across the United States and Canada.

Around the same time, the company

began selling syrup to independent bottling companies licensed to sell

the drink. Even today, the US soft drink industry is organized on this

principle.

Until the 1960s, both small town and big city dwellers enjoyed

carbonated beverages at the local soda fountain or ice cream saloon.

Often housed in the drug store, the soda fountain counter served as a

meeting place for people of all ages. Often combined with lunch

counters, the soda fountain declined in popularity as commercial ice

cream, bottled soft drinks, and fast food restaurants became popular. On

April 23, 1985, the trade secret "New Coke" formula was released.

Today, products of the Coca Cola Company are consumed at the rate of

more than one billion drinks per day. Coca-Cola might owe its origins

to the United States, but its popularity has made it truly universal.

Today, you can find Coca-Cola in virtually every part of the world.

HISTORY OF COCA COLA IN PAKISTAN:

The Coca Cola company began operating in Pakistan in 1953 and started

with Coca Cola drink as a sole brand but later increased its product line

and added Sprite, Fanta, Sprite Zero, Vimto, Diet Coke, Kinley water &

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Sprite 3G. The Coke in Pakistan operates through their 8 bottlers from

whom 4 are owned by the company itself under the name of Coca Cola

Beverages Pakistan Ltd (CCBPL) with its plants at Karachi,

Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan

and Lahore and serves more than 75,000 shops / retail outlets.

Coke has attracted customers from allover Pakistan through its

interesting slogans and has

created a wide customer base in youth. Some particular slogans are:

1953 The friendliest drink on Earth

1963 Things go better with Coke

1976 Enjoy Thirst

1993 Always Coca Cola

2001 Life is good2003 Jo chaho ho jaye Coca Cola enjoy

2004 The flight of delight

2005 Gaa lay Delicious taste

2006 Thanda matlab Coca Cola

2007 Khaalay Peelay Jeelay Coca Cola

2008 Aaja Jashan Mana lay

2009 BRRRRRRRRRR

2010 Very chill hai Coke Zindagi

2011 Her beat sa khaly khushia

Mission, Vision & Values

The world is changing all around us. To continue to thrive as a business overthe next ten years and beyond, we must look ahead, understand the trendsand forces that will shape our business in the future and move swiftly to

prepare for what's to come. We must get ready for tomorrow today. That'swhat our 2020 Vision is all about. It creates a long-term destination for our

business and provides us with a "Roadmap" for winning together with ourbottling partners.

Our Mission

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Our Roadmap starts with our mission, which is enduring. It declares ourpurpose as a company and serves as the standard against which we weighour actions and decisions.

To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Our Vision

Our vision serves as the framework for our Roadmap and guides everyaspect of our business by describing what we need to accomplish in order tocontinue achieving sustainable, quality growth.

S.W.O.T ANALYSIS OF COCA-COLA

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working style is highly professional and discipline is maintained atevery level of the organization.

PROPER TIME DELIVERY:

The fixed time of delivery of Coke to retailers, shopkeepers etcpunctuality is maintained which gives Coke an edge over all itscompetitors.

NAME, SYMBOL & BOTTLE SHAPE:

These all are Cokes strengths which gives it an edge over itscompetitors. Coca-Cola bottle shape is so unique and stylish than evenif the name is rubbed off people will still easily identify that its Coca-Cola bottle. Same is the case with its symbol and name which cannot beimitated and are so well known.

ASSETS & SKILLS:

Coke being one of the biggest multi-national companies and by being inbusiness for more than 100 years, have developed huge asset base whichinclude hundreds of manufacturing Plants in more than 150 countries. Italso has skilled and educated labor that is regarded as one of its positive

points. It has also a very comprehensive human resource managementsystem with very good training programs in the country of theemployees and also arranges the training in foreign countries for top

management.

WEAKNESS

Coca cola is a very successful company that has few weaknesses.

LACK OF POPULARITY OF FEW PRODUCTS:

Many drinks that they produce are extremely popular such as coke andsprite are popular in Pakistan while few are unpopular, the demand and

supply of few products like Minute Maid has not pleased theManagement.

LIMITATION OF RESOURCES:

This is the biggest weakness of Coke. In worse situations requests forfinance from the CCI (Coca-Cola International) based in USA isobserved along with aid from the HQ in Lahore. Currently Coke is

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unable to supply as many freezers, coolers, finance sign and electronicbill boards as shopkeepers demand as does Pepsi which is the majorreason why Coke sales falls.

FORMALITY OF RULES & REGULATIONS:The organizational structure of Coke is too formal (being supervised byCCI) so the lengthy processes of decision making and implementationthrough hierarchy system i-e follow order from CEO to downwards)have to be followed and employees in Pakistan even (GM) is notallowed to take decisions to change even smallest of things like(Instruction on bottle) on their own. Many brilliant ideas forimprovement and boost sales remain locked up in employees brain asthey are not allowed to work at their own free will.

OPPORTUNITIES

Opportunities are the external factors for the company which couldbenefit the company if they are capitalized by using the strengths of thebusiness. In the economy of Pakistan Coke is working on the followingopportunities of which it can take Advantage of:

OPEN MARKET:

It has many successful brands that it should continue to exploit and

pursue. Coke currently holds about 36% market share in Pakistan. Pepsileads by holding 54% of market share, 10% to other small beveragese.g. RC- cola, Makka-Cola, Pak-Cola etc. therefore there is a vastopportunity for Coke to capture 70%market share as 54%belongs to Pepsi and 10% to others.

EXPANSION OF INFRASTRUCTURE:

Coca-Cola with International standards can increase its market sharemany folds with little efforts. Increasing the distributing channels and

infrastructure to ensure availability in small towns and areas. Lineextension like Fanta, Coke, and Sprite in different flavors. Launch anew product it can do it successfully as it is a well established companyand has already positioned itself in customers mind (as those who

provide the ultimate taste and quality) so they are bound to try their newproducts as well.

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RESPONSE FROM THE CUSTOMERS:

Until now the consumers have shown interest in the products introducedby Coke and have accepted with open arms the good quality productsbrought by Coke in Pakistan. This shows that Pakistani market is ripe

for other products also and a little market penetration can increase thesales.

THREATSThreats are also external factors which can have a negative impact onthe companys performance. Thesethreats are to avoid by using the Strengths.

COMPETITION:

Competition is an opportunity and a threat at the same time. If Coke,with its capabilities handles its competitors with right strategies thenthis will be an opportunity for the company, but if the competitor is fastto take action and has a knowledge of the weaknesses of Coke it can

pose a great threat for it and itssuccess. Pepsi is giving Coca Cola a great competition in soft drinkindustry all over the globe and is the major Threat to Coke and its

products.

NEW ENTRANTS:

New entrants like Pak Cola that can exploit anti Jewish and anti warsentiments, provoke nationalism sell at low prices and can be a sourceof threat for Coke in future once they fully launch their products inPakistani market so coke management has to look out for them over thetime.

NESTLE PRODUCTS:

Juices, Milo, drinks, etc as well as Shezan products Squashes, Tetrapack juices are also sort of a threat but not the direct threat for Cokebecause they provoke health consciousness and physical fitness.Although Coke has converted its attack on health issues by offeringDiet Coke yet the threat isnt over .However Coca-Cola can effectivelycounter their threats at any time by launching even more products.

TAXES, GOVT LAWS & POLICIES:

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The Coca-Cola management is not happy with the Govt. tax laws andpolicies. Being a Multinational with whole plants in 10 cities it is underheavy tax. Imposition so much so that on single bottle revenue. It has to

pay as much as Rs2.97/-as tax to the government with the consequent

result that Coca-Cola is the first beverage and 2nd highest tax payingcompany in Pakistan. It pays 33% on its total revenues.

POLITICAL & ECONOMICAL INSTABILITY:

The political and economic instability has caused changes in the policiesalmost every year due to frequent the changes in the governments.Another problem which the companies face are the terrorists attacks,strikes and off-days which costs the companies additional costs and haltin the production activities. Thus, it is one of the factors about whichCoke can do very little about.

Strategies

As Coca Cola is very big and established business unit so it also usedifferent strategies for different products.

Growth strategyGrowth strategy is use when company want to gain the more market shareand to grow the business.Coca Cola use this strategy for Sprite 3G,Sprite Zero, Diet Coke and Kinleyas they are question mark products.

Stability strategy

This strategy is use to make a product stable coca cola use this strategy forregular coca cola bottle and sprite.

Retrenchment strategyThis strategy is used for dog product coca cola use it for Fanta.

Product market expansion grid

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MARKET PENETRATION

Market Penetration is the strategy, which every company has to adopt whenit reaches a maximum height of growth. Coca Cola in Pakistan is doingmarket penetration through the selling its products to the business buyer,who are huge multinational organizations like McDonalds, Subway, DunkinDonuts and many more. They are also keeping the local market in focus.

FriChiks , AFC, PFC are examples of the buyers in the local market. Theyare selling the Coca Cola as the only beverage in their restaurants.

MARKET DEVELOPMENT

Market Development is exploring new markets for the products you arealready selling. Many flavors of Coca Cola are not being sold in Pakistan.Coca Cola can develop a new market if they introduce those flavors inPakistan. Many people in Pakistan want a change in the beverage industry,as they are having the same flavors from many years.

DIVERSIFICATION STRATEGY

Diversification strategy is one which every company really wants topractice. There are lots of chances of growth but the risk factor is also there.The company can manufacture products, which are not manufactured by it

before. Coca Cola is only dealing in beverages but it can also manufactureits own snacks item as the company name is known almost all over the

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world. So it can cash the name by producing the items, which are eaten withthe beverages.

NEW PRODUCT DEVELOPMENT

In the Introduction stage, Coca Cola was launched and initially promoted.Efforts were made for creating its awareness in the market, inducing trial ofthe product and securing space in the outlet shelf. When their costs werehigh, sales volume were low, and there was no existing demand forCoca Cola in this stage.

Micro environment

Coca cola has following factor in micro environment.

Customers

The Coca Cola company has Youth as its main customers, the motiveof the company is to increase sales volume among the young generationas Coke is sweeter than Pepsi and liked but now Coke is satisfyingdifferent target markets including people of all ages, races etc. Cokes

products are purchased by almost every class in Pakistan as it does nothave expensive drinks and offered in different volumes. Coke has alsodominated its existence in the Hotel & Restaurant market as it hascustomers like Regent Plaza, Avari Towers, Arizona Grill, CopperKettle etc are maintaining their brand loyalty with Coca Cola.Coca-Cola major and large customers in the market are, food cornes, McDonalds and Pakistan Railways .However, these customers being large and

powerful are in an influential and bargaining position they can demanddiscount or others facilities like (boards sign/freezers/coolers etc.) andimpose a threat to switch to their closest rival and competitor Pepsi. CocaCola products are purchased by all the different classes, but mainly by the

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middle and high-class citizens, because they have more money to spend onluxury items. So all market is coca cola customers.

CUSTOMER ANALYSIS

The Coca Cola Company exists to satisfy the consumers needs. The CocaCola Company has over a large number of brands of drinks designed tosatisfy a very wide range of consumers. They are able to provide drinks formany different target markets including, people of all ages, sexes, races, etc.Coca-Cola products are able to sell to a diverse worldwide population and itssuccess is unmatched. In to days society, people are looking to lead better,healthier lives, Coca Cola seeing this trend has begun to produce, diet drinksthat have the same great taste as their regular drinks while still being low fator low calorie drinks, such as diet coke, or coke zero. Coca Cola productsare purchased by all the different classes, but mainly by the middle and high-

class citizens, because they have more money to spend on luxury items.Coca Cola is a very successful company; due to their success they are ableto spend more money making their factories work more efficiently. Theycan do this by updating the equipment used to produce their drinks.Although people today are becoming more conscious about theirenvironment, Many people make their purchase decisions partially based ona company ethics, or social responsibility. By contributing to stop pollution

both within and outside their factories, they will gain the trust and respect ofthe potential buyers, who care about saving our environment. In gaining

their trust and respect more people will be willing to purchase their products,because the company stands for the same goals that their consumers aretrying to protect. The Coca Cola Company tries to be more environmentallyaware.

COMPETITORS

All over the world Cokes biggest competitor is none other thanPepsi. The competition between the companies has been neck to neckas both of them keep on trying to outplay each other in terms of pricing,

promoting & packaging. As Pakistans economy has suffered fromglobal recession, the competition has

become tougher. In Pakistan Pepsi is leading the market with 52% andCoke is climbing up to the 45% mark.There are many other competitors. These include Nestle and Shezan juiceswho do not pose a threat to Coke as yet but has the potential to do so as it is

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exploiting the natural aspect and health issues more and more to makepeople conscious about physical fitness Coke has launched Diet Coke tocounter the physical fitness demands.

SUPPLIERSSuppliers always play an important role in any companys operation.Suppliers provide resources and raw material that company requires to

produce the goods and services. Coke company suppliers in Pakistanvary with respect to the raw material they provide. Following is a brieflist of different suppliers of coke.Balochistan Glass Limited provides glass bottles of all sizes that areused in bottling.Plato Bag Limited provides pet bottles with the labels. Labels aredesigned by the Packages Ltd.

Saharan Mills Limited provides the quality sugar in hygienic packets.Vanillin Intercool Pakistan provides the machinery such as Visiocoolers and chest coolers for thechilled coco-cola.

Coca-Cola has authorized suppliers and which do not pose a threat to it. Anyhow Coke does have a quality check procedures in its plants to ensure thatthey get the right kind of ingredients from suppliers.

DISTRIBUTER

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 owntransports. 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 isvery difficult for them to cover all area of Pakistan by their own so they haveso many whole sellers and agencies to assure their customers for availabilityof Coca Cola products.

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Segmentation

Dividing a market into distinct groups with distinct needs, characteristics, orbehavior who might require separate products or marketing mixes. In

evaluating different market segments, a firm must look at three factors:

Segment size

Segment growth

Segment structural attractiveness and company objectives and

resources.

SEGMENTATION STRATEGY COCA COLA

Coca cola serves its products using mass marketing technique, whichobviously falls in undifferentiated marketing, and undifferentiated marketingmeans no segmentation, but there are minor factors on which we can say thatthe coke segments its products and then targets the customers somehow.These factors are as follows.

GEOGRAPHIC SEGMENTATION

In Pakistan the coke segments more in urban and suburban areas as compareto rural. 35% population resides in urban areas and 65% population lives inrural areas in Pakistan. Coca Cola is focusing on urban areas as people thereare more inclined towards such beverage while people in rural areas

are more inclined drinking lassi and desi drinks.

DEMOGRAPHIC SEGMENTATION

AGE

Internationally coke has segments the small children introducing tastes likevanilla, lime and cherry, they focus children from 4-12. Coke specificallytarget more young people than older. Pakistan is considered to be a youngcountry i.e. average age of Pakistani population is less than 38 years. Thustargeting young generation can be a beneficial marketing strategy for softdrink companies. In fact this is the case, all the major brands like Coca Cola,Pepsi mainly target younger generation in Pakistan.

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GENDER

Coca Cola targets both genders with its wide variety of drinks. This marketis relatively large and is open to both genders, thereby allowing greater

product diversification.

FAMILY TYPECoca Cola introduces its economy pack, and thats how they focus familyand groups.INCOME

Coca Cola segments different income levels by packaging. Like for smallincome people it has small returnable glass bottle, for middle people it hasnon returnable bottle and for higher income people it has coke tin.

PSYCHOGRAPHICS SEGMENTATION

All psychographics variables the social class, lifestyle, occupation, level ofeducation and personality, Coca Cola segments everyone, but again it istheir packaging which is different for different consumers.SOCIAL CLASS

Coca Cola is a well known brand. People who are brand conscious will notdrink beverages of less known brands and quality such as Amrat cola.They will try to show their status by drinking Coca Cola which is known toall as a quality drink.

BEHAVIORAL SEGMENTATION

OCCASIONS

A very special occasion for the people of Pakistan Ramzan, people emphasison enjoying Coca-Cola at Iftar and then on Eid with friends & family withsuper price off promotion.

BENEFITS SOUGHT

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Sometimes, for the promotion strategy of coke, Coca Cola Companyintroduce prizes in the top cover. So they segment people by benefit sought,i.e. by giving them prizes.

TARGET MARKETING

This is the process of evaluating each market segments attractiveness andselecting one or more segments to enter. After evaluating different segments,the company must now decide which and how many segments it will target,

because buyers have unique needs and wants, a seller could potentially vieweach buyer as a separate target market. Ideally, then, a seller might design aseparate marketing program for each buyer. There are three types ofmarket segments.

Undifferentiated marketing. (Mass Marketing)

Differentiated marketing. (Segmented Marketing)

Concentrated marketing. (Segmented Marketing, small segment)

Coca cola serves its products using mass marketing technique, whichobviously falls in undifferentiated marketing, and undifferentiated marketingmeans no segmentation. So some how all market is coca colatarget market.

POSITIONING

POSITIONING STRATEGY

The way the product is defined by consumers on important attributes, theplace the product occupies in consumer minds relative to competingproducts.Coca cola is focusing more for more strategy as we know it provide us

benefit and satisfaction.

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Here if we talk about more price and more benefits, we can discuss CocaCola and Pepsi. As both are the market leaders and 90% market share ofPakistan beverage industry is secure by them & the rest 10% is secure by therest. And we can also take Coca Cola and Pepsi as challenger for each otheras both of them provides more for same, more for less & same for less. Asthey are giving their customers more benefits for same price and also more

benefits for less price with respect to different packaging sizes.

Others colas like Mecca Cola, Amrat Cola and Mountain Dew are offeringsame for same price and same benefits for more price. They are usingfollowers strategy, as they follow the other market leaders and giving theircustomers same benefits for same price.

MARKETING MIX OF COCA COLA

Marketing decisions generally fall into the following controllable categories:

Product

Price

Place (distribution)

Promotion

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Product

Product is any good or service which has value to satisfy customer needs

and want.

Products of CCBPL

Coke has more than 400 products all over the world. In Pakistan theCoke Family includes:

Coca Cola

. (300 ML Regular bottle, 500 ML

Plastic bottle, 500 ML Can, 1 Literbottle & 2.5 Liter bottle).

Diet Coke.(500 ML Plastic bottle & 1 Liter

bottle)

Sprite Zero.

(500 ML Plastic bottle & 1 Literbottle).

Sprite 3G.(500 ML Plastic bottle & 1 Liter

bottle).

Fanta.(300 ML Regular bottle, 500 MLPlastic bottle, 500 ML Can, 1 Liter

bottle & 2.5 Liter bottle).

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Vimto.(1 Liter Plastic bottle)

Kinley Mineral water .(500 ML Plastic bottle & 1 Liter

bottle).

Minute Maid Juice.

(500 ML Plastic bottle & 1 Literbottle).

Sprite

(300 ML Regular bottle, 500 MLPlastic bottle, 500 ML Can, 1 Liter

bottle & 2.5 Liter bottle).

LEVELS OF COKE AS A PRODUCT

CORE PRODUCT LEVEL

Core benefit is that it fulfills the thirst.ACTUAL PRODUCT LEVEL

Design: Pet bottles, returnable glass bottles, economy packs. Quality:Quality differs with respect to country for example. Coca-Cola Can qualitythat is available in Middle East is certainly different as compared to CokeCan available in Pakistan.

AUGMENTED PRODUCT LEVEL

Straws, bottle openers are unnecessary to give with bottle

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PACKAGING & LABELING OF COCACOLA

Packaging means the activities of designing and producing the container orwrapper for a product.

Traditionally packaging decisions where based primarily on cost andproduction factors, the primary function of the package was to contain andprotect the product the product. In recent time, however humorous factorshave made packaging an important marketing tool. These factors include allacting attention describing the product making the sales. Packaging involvesdesigning and producing the container or wrapper for product. The packagemay include the products primary container a secondary package that isthrown away when the product is about to be used and shipping packagenecessary to store , information appearing the product labeling printedinformation appearing on or with the packaging is also part of packaging.Label ways rouge from toys attached from product to the complex graphicthat identify the product or brand, such as the product the label weight alsodescribed 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 of250 ml, 500 ml pet jar,1000 ml, 1500 ml and 2000 ml bottles as well as 330ml cans.

PRICING

The amount of money charged for a product or service, or sum of thevalues that consumers exchange for the benefits of having or using the

product or services.

As price gives us the profit so this P is very important for business price ofproduct should be that which gives maximum benefit to the company andwhich gives maximum satisfaction to the customer.Following factors Coca Cola kept in mind while determining the pricingstrategy.

Price should be set according to the product demand of public.

Price should be that which gives the company maximum revenue.

Price should not be too low or too high than the price competitor is

charging from their customers otherwise nobody will buy yourproduct.

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Price must be keeping the view of your target market. The price of

Coca Cola, despite being market leader is the same as that of itscompetitor Pepsi Cola.

PRICES OF DIFFERENT PRODUCTS

1.5 liter liter 250 ML

Coca cola Rs.70 Rs.35 Rs.15

Spriteregular/zero

Rs.70 Rs.35 Rs.15

Pulpy orange Rs.110(liter) Rs.45 Nil

Kinley Rs.55 Rs.30 NilFanta Rs.70 Rs.35 Rs.15

Splash juice Nil Nil Rs.15

PRICING STRATEGIES

There are many pricing strategies we are discussing some of them which is follow byCCBPL.

MARKET PENETRATION PRICING POLICY

Prices in beverage industry are determined by the consumer. In an economylike that of Pakistan, consumers tend to switch towards a low priced product.Coca Colas objective is to target every consumer of the country so CocaCola has to set its prices at such a level which no one can offer to itsconsumers. That is why Coca Cola charges the same prices as are beingcharged by its competitors. Otherwise, consumers may go for Pepsi Cola incase of availability of Coca Cola at relatively high priceProduct bundle pricing

Coca cola also do product bundle pricing in which they make a bundle of three to fourbottles and charge less price but they sold three to four bottles in a time.

PRODUCT LINE PRICING STRATEGIES

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It means the number of products that company is offering. For exampleCoke, Diet Coke, Fanta, Sprite etc.

COMPETITION BASED PRICING APPROACHCoca Cola has intense competition with Pepsi so its pricing cant exceed toomuch nor decrease too much as compared to the price of Pepsi Cola. If priceof the Coca Cola exceed too much from the Pepsi then people will shift tothe Pepsi Cola and on the other hand if the price of Coca Cola decreases

people might get the impression that its quality is also low.

PROMOTIONAL PRICING POLICY

Coca Cola has offered promotional prices very frequently. Especially onsome occasion Coca Cola reduces its rates like in Ramzan Coca Cola

reduces its rate unto 5 Rupees on 1.5 liter bottle.

DISCOUNTS

Coca Cola offers various discounts to customers in some occasion like Eidand Ramazan on price it also give discount to those retailers who have themaximum sales of Coca Cola products on daily, monthly and on seasonal

basis. Some of the main discounts given to the retailers are as follows:

QUALITY DISCOUNTFollowing are discounts offered by Coca Cola.1/10 DISCOUNTI.e. one case of Coca Cola is free on buying 10 cases of Coca Cola at onetime.2/20 DISCOUNTI.e. two cases of Coca Cola are free on buying 20 cases of Coca Cola at one

time.SEASONAL DISCOUNTFollowing are discounts offered by Coca Cola. Coca Cola also offersseasonal discounts schemes by reducing price in Ramadan and on Eid. CocaCola also offers trade in allowance for retailers

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3 B F DISCOUNTI.e. sometimes, especially in the off-season duration, in order to increase thesale of Fanta and Sprite, 3-BF discount is given (i.e.) 3 bottles free on

purchasing every case of Fanta and Sprite.

INCENTIVES

Mainly two types of incentives are given by the Coca Cola:

INCENTIVE TO RETAILERS

Coca Cola provide various incentives to retailers on the best sales andachieving the predetermined sales targets. These incentives are in the shapeof:

Deep Freezers

Return Tickets

Free Transportation Services.

SPECIAL EVENT OFFERS

Coca Cola gives special offers to consumers on special occasions likeRamadan and Eid days instead of decreasing the price of the products, somespecial packs like Pakkora Mix, Chat Massala, or Free Drinks with LiterBottles are offered.

PLACE

Place means any spot where buyer and seller interact

Coca cola place its product very efficiently it capture almost every small andbig place and there placement policies are very effective. Coca cola place its

products almost every part of country they manly place their products urbanand suburban areas as compare to rural. 35% population resides in urbanareas and 65% population lives in rural areas in Pakistan. Coca Cola isfocusing on urban areas as people there are more inclined towards such

beverage while people in rural areas are more inclined drinking lassi anddesi drinks.

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GETTING SHELVES

They get or purchase shelves in big departmental stores and display theirproducts 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 theirproducts in eye-catching positions. Normally they keep their freezers nearthe entrance of the stores

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 owntransports. They have almost 450 vehicles to supply their bottles. In this typeof selling company have more profit margin.

INDIRECT SELLING

They have their whole sellers and agencies to cover all area. Because it isvery difficult for them to cover all area of Pakistan by their own so they haveso many whole sellers and agencies to assure their customers for availabilityof Coca Cola products.

PROMOTION

ADVERTISEMENT OF COCA COLA

Long period, paid, planned, formal way of promotion.

The field of advertisement is one area where Coca-Cola has alwaysemphasized. In year 2000 Coca-Cola unveiled the biggest advertising

billboards in the history of Pakistan. Each unveiling was marked by

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entertainment and light shows watched by thousands of people. Similarly inJuly 2000 Coca-Cola launched its first under the crown promotion by thename 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 adoptsis reminder type. The reason behind this fact is that coke is such a productthat is at the maturity level currently so for such a product companies mostlygo for reminder type of advertisement so that they can penetrate more andmore 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 thatPepsi has increased its advertising budget, straight away Coca-Colamanagement plans to do the same so that they can compete in advertisingdepartment as well. So they are following Competitor parity method.

ADVERTISING STRATEGY/MESSAGE

Before creating advertising message the Coca-Cola Company gives lots oftime to the factor that the message must gain customer attention. This is

basically called Clutter Buster means that only that advertisement will leaveimpact on customer mind that has some specialty or uniqueness in it. So wecan say that message strategy is concrete.

ADVERTISEMENT MEDIA

Coca-Cola Company advertises its products mainly coke through electronicmedia that includes Television, Radio and Internet as well. Moreoverleading 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. CocaCola Company use different mediums

Print media

Pos material

TV commercial

Billboards and holdings

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PRINT MEDIA

They often use print media for advertisement. They have aseparate department for print media

.POS MATERIAL

POS material (Point of sale material) this includes: posters and stickers thatare displayed in the stores and in different areas.TV COMMERCIALS

As everybody knows that TV is a most common entertaining medium so TVcommercials are one of the most attractive way of doing advertisement. SoCoca Cola Company does regular TV commercials on different channels.BILLBOARDS AND HOLDINGS

Coca Cola is very much conscious about their billboards and holdings. Theyhave many sites in different locations for their billboards

HOW COKE DETERMINE THE YEARLYBUDGET

Coke determines its yearly budget by the

Sales volume

Profitability

Target volume

SALES VOLUME

Coke determines its yearly budget through the sales volume. They firstconcentrate on the thing is what is the condition of their sales? if thecondition is good of their sales then they definitely increase their productionand sales volume. Otherwise they concentrate on their old strategies.

PROFITABILITY

The second thing through which they determines budget is the profit if theyare getting profits with the high margin, then they definitely want to increasetheir profits in the next coming year. Every organization runs on the basis ofgetting high profits. No organization wants to face Loss in their business. Toget profit is the first priority of the Coke.

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TARGET VOLUME

To run the business every industry has some targets, which they wantto 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. SoCoke Follow the same thing it has also some goals and targets to achieve inthe given time period. When they succeed to achieve that target then theyincrease their target volume in the next year.

SALES PROMOTION ACTIVITIES

SALES PROMOTION ACTIVITIES

Samples

When CCBPL introduce minuet maid juices they give sample to generalpublic so they use sample as tool of promotion.

Price pack

Coca cola often provide to there customers price pack in which actually theygive bundles of bottles at less price

Advertisement specialtyThey do promotion on different goods like on caps, shirts, bags, pen, clocketc.

Public relation

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 thepromotion of their products over a period of time. It has ranged fromtobacco 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 sponsorshipagreement with eight of Pakistan National cricket players. Coca-Colarealizing the fact that cricket is a very strong element by which it can reach it

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consumers & masses invested in the opportunity and launched a massivecampaign on mass media showing all these cricket stars endorsing &complimenting Coca-Cola brand. The Coca-Cola Company developed threeTV commercials & four testimonial ads with the player & ran them on the

national network during various cricket matches. These bold steps taken bythe Coca-Cola marketing unit acclaimed them many acknowledgementsacross the board. This campaign helped Coca-Cola to establish itsassociation with the game & the player.

COCA-COLA CONCERTS

Abrar-ul-haqs distinct style, lyrics & songs have made him an instant hit among themasses in Pakistan. His enormous popularity in the country & abroad is

supported by Coca-Colas commitment towards providing healthy & fun-filled entertainment for the youth of Pakistan. Coca-Cola brought Abrar tohis fans through holding concerts & featuring.COCA-COLA FOOD MELA

With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the people, to a festive food festival comprising of 50 restaurants, spread out all over the bustlingcity s map. The promotion saw the avid families & friends enjoying the delicacies at therestaurants; all resiliently upholding the Coca-Cola identity.

COCA-COLA BASANT FESTIVAL

In February the month of basant the parks & horticulture authority in Lahore nominatedCoca-Cola the official sponsor of the basant festival .Coca-Cola added to thecarnival atmosphere by making the festival free to enter & decorating all main roadsin Lahore with illuminated kites. Coca-Cola also hosted a concert of pop idolAbrar-ul-haq, had children parade & held the Coca-Cola kite flyingchampionship 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 givethe 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 PARTY IN A PARK

Coca-Cola created an experiential musical evening in Lahore, where Abrar-ul-haq performed. This program was recorded and one-hour program shown

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in the national TV for free.10million households saw Coca-Cola Party in a Parkwhile 10 thousand people attended the event.

COCA-COLA PET PROMOTION

In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time inPakistan. Targeting house wives & family home, Coca Cola 1.5 liter Pet

bottle, took the lime light & gained momentum with a campaign promotingthe unique packaging and its numerous consumer benefits .A treat for thefamily, Coca-Colas PET was offered through a price-off promotion thatsaid...Go out & get some

COCA-COLA RAMZAN CAMPAIGN

A very special occasion for the people of Pakistan Ramzan saw another

very special Coca-Cola promotion, marketing the popular 1.5 liter PET bottle & the 1liter bottle with a super price-off promotion. The emphasis on enjoying Coca-Cola at Iftarwith friends & family.

CONCLUSION

We have concluded from this detailed report that despite the factCoca Cola currently occupies the market leadership positionoverall 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 Pepsis market share inPakistan is approximately 54% whereas Coke market share ishovering about 45 %, hence the conclusion is that Coca-Cola mustenhance factors such as relationship marketing, innovation andtechnology especially in Pakistan to attain market leader positionin this region as well.

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Recommendations

Coca Cola should decrease its promotion cost so as to reduce

its retail price for end consumers.

Currently in Pakistan there are only few SKUs of Coke

available, company should enlarge its portfolio by introducingnew SKUs as we see in our neighboring country like cleardrinks ,juices and Energy drinks

. Sale & Marketing team should try to increase the availability of

Coke in rural areas.

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 forexample new diet flavors, in the market to fulfill the local need.

Coca Cola should take steps to increase the natural beauty by

reducing the amount of bill boards or by using appropriatelocations for their bill boards.

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Documents

cb final.doc