Market Analysis Coca Cola

Market Analysis Coca Cola

Market Size

Coca Cola is one of the leading beverage companies in Pakistan. It covers the large

market segment. From the facts it is revealed that the market for coca cola as mentioned

in the SW! analysis segment is enco"raging. It is the second largest "sage in Pakistan.Still it has a great potential in Pakistan market. It foc"sers on it deficiencies and try to

over come it than it #ill definitely gro# more than any other beverage company in

Pakistan. So it has a large margin for gro#th.

$ro#th rate Coca Cola

In Pakistan market the gro#th rate is %%& #hich is a significant rate. Similarly In Asiaregion the amo"nt of reven"es #hich company earn is '('% dollar.

Market Share

Coca cola has do"bled its market share in Pakistan) in recent years its market share #as

*+& b"t in %((, its market share increased "p to -+&) on the other hand its competitorsshare is going do#n day by day.

Coca Cola is #orld leader in beverages) and is on the #ay to s"ccess in Pakistan and has

crossed the Pepsi last year..

Maor factors infl"encing the level of demand of the prod"ct

!here are a lot of factors that affect the demand of the prod"ct. !he list of these factors isgiven belo#

/ Price

Price is the maor factor that affects the demand of the prod"ct. If the price Is not s"itable

to the cons"mers or c"stomers than they #ill s#itch of the prod"ct.

/ 0"ality

If a company provides the 1"ality services or prod"cts than the demand of the prod"ct

also increases. In the 1"ality of the prod"ct the consistency in the performance of the

 prod"ct is very important.

/ S"pply

 

S"pply and the demand of the prod"ct are the market forces and played the main role in

the prod"ct demand. If the s"pply of the prod"ct decreased than in some cases the

demand of the prod"ct increase as #ell as the price f the prod"ct can also increased.

/ !aste

!aste of prod"ct is the maor factor that affects the demand of the prod"ct. 2ike if the

 prod"ct is of good taste than the f"t"re demand of the prod"ct #ill increase and vise

versa. If c"stomers don3t find the taste of prod"ct according to their taste) than they #illnot b"y that prod"ct in f"t"re.

/ 4"mber of "sers

If the n"mber of "sers increase in the market than the demand of the prod"ct also

increases.

/ Income

Income level of the c"stomers had a great impact on the demand of the prod"ct. Itdirectly relates to the p"rchasing po#er of the c"stomer. If c"stomer has a p"rchasing

 po#er than definitely he can b"y the prod"ct #hich he5she demand.

/ Competitors

Competitors are the biggest threat to the demand of prod"ct. If competitors offer the same prod"cts as the company offers than the c"stomers got more alternatives. So increased

alternatives) increases the bargaining po#er of the c"stomers and they can s#itch of to

more s"itable prod"ct.

Can the market be broken do#n in to segments6

!he coca Cola has a #ide range of cons"mer. !ho"gh its market is very large and almost

all are f its c"stomers regardless of age and gender b"t the yo"ngsters are it3s the largest

most favorable target a"diences. !his is the reason they choose yo"ngster in their

advertisement as #ell.

Company can also largely foc"s on yo"ngsters to set the target market. 7"t their c"rrent

strategy is most s"itable beca"se c"stomers regardless of age factor like Coca Cola as soft

drink.

Prod"ct 2ife Cycle

Prod"cts go thro"gh vario"s steps thro"gho"t their "sef"l lives. !hey are introd"ced)gro#) mat"re and event"ally decline. In the introd"ction phase of the life cycle) start8"p

e9penses are high and sales are lo#. !his is the stage in #hich the prod"ct in placed in the

market for cons"mer "se. Sales begin to increase and e9penses tend to decrease d"ring

 

the gro#th phase. !his is the point in #hich the prod"ct becomes more kno#n in the

market and cons"mers begin p"rchasing. :"ring the mat"re phase of the prod"ct life

cycle) the company m"st re8e9amine the prod"ct and determine ne# #ays to make itmarketable. Cons"mers begin to take the prod"ct for granted and no longer necessarily

choose it first. If a ne# prod"ct comes in at this point #ith ne#) more attractive feat"res)

it can force the prod"ct into the decline stage. ;vent"ally sales #ill begin to decline andthe company m"st decide #hether to contin"e #ith prod"ction or to part #ays #ith the

 prod"ct.

Coca8Cola has been in the ind"stry since the nineteenth cent"ry) so if they contin"e #ith

the same marketing strategy) then they #ill send themselves irrevocably into the declinestage. Coca8Cola <Coke= is in mat"rity stage b"t grad"ally moving to#ards the declining

stage of the prod"ct life cycle. Management has to pay special attention to prod"cts

d"ring this stage of the prod"ct life8cycle. !he company m"st no# determine #hetherthey #ill stop prod"cing Coca8Cola) change the soda) find ne# "ses for it) seek ne#

markets for the soft drink or if they #ill maintain their c"rrent strategy <Peter) %((+=. At

the moment) the soft drink company is attempting to effectively seek ne# markets.Coke3s core prod"ct) Coca8Cola) has received many criticisms beca"se of the health

iss"es that arise from its "se of caffeine and high fr"ctose corn syr"p.

Coke kno#s that they m"st begin to ackno#ledge the shift in cons"mer tastes in order to

remain competitive. !hey have done this s"ccessf"lly many times in the past) as can beseen #ith the introd"ction of their pop"lar :iet Coke brand. Coke m"st break into the

non8carbonated drink market in order to ackno#ledge cons"mer3s ne# interest in healthy

drinks

:"ring the mat"rity stage) prod"cts "s"ally go thro"gh a slo#do#n in sales gro#th.According to Coca8Cola3s %((* ann"al report) sales have increased by *.(%& compared

to last year. !his percentage has no comparison to the high level of gro#th Coca8Cola

enoyed d"ring its gro#th stage.

Fl"ct"ation in demand #ith cyclical factors

 4othing is in isolation in this #orld. !he brands also have personality and th"s alsoaffected by the different sit"ations like #eather) occasions) events) economical factors etc.

:emand of the prod"ct doesn3t remain consistent beca"se it e9ists in the real #orld #hich

is grad"ally changing. Coca Cola advertisement has a great affect in its demand. Itsadvertisement removes the risk of no "se of brands on different e9treme #eathers like in

#inters. Its ads stim"late its p"rchase regardless of #eather or cyclic factors.

Similarly on different events the b"ying patterns also changes. Company has a great

strategy that they "se those events as their strengths and advertise their prod"ct on righttime #hich res"lts in increase sale.