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Chapter # 1: Company Background

The document provides background on The Coca-Cola Company, including that it was founded in 1886 in Atlanta, Georgia and is now the world's largest beverage company serving over 200 countries. It discusses the company's mission to refresh people in mind, body and spirit and create value. The document also outlines Coca-Cola's marketing strategy, including segmenting markets based on geography, demographics, and psychographics. It discusses the company's positioning and marketing program, including its products, pricing, placement and distribution strategies.

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0% found this document useful (0 votes)
273 views16 pages

Chapter # 1: Company Background

The document provides background on The Coca-Cola Company, including that it was founded in 1886 in Atlanta, Georgia and is now the world's largest beverage company serving over 200 countries. It discusses the company's mission to refresh people in mind, body and spirit and create value. The document also outlines Coca-Cola's marketing strategy, including segmenting markets based on geography, demographics, and psychographics. It discusses the company's positioning and marketing program, including its products, pricing, placement and distribution strategies.

Uploaded by

assadullah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter # 1

Company Background
The Coca-Cola Company is the worlds largest beverage company serving more than 200
countries with almost 500 brands ranging from the actual Coca-Cola to products such as
Sprite, Fanta, POWERADE, Minute Maid, and many, many more.
The product was originally born in Atlanta, Georgia, in 1886 where Dr. John Smith Pemberton, a
local pharmacist, produced a caramel-colored liquid, and when it was done, carried a jug of the
new product down the street to Jacobs pharmacy. Here, the mixture was combined with
carbonated water and sampled by customers who all agreed this new drink was something
special. So Jacobs pharmacy put it on sale and sold it for 5 cents a glass.
Later Dr. Pembertons partner and bookkeeper Frank Robinson invented the name and the
lettering which has been written the same way ever since.

Name

The Coca Cola Company

Logo
Industries served

Beverages

Geographic areas Worldwide


served
Headquarters
U.S.
Current CEO

Muhtar Kent

Revenue

$ 48.01 billion (2012)

Profit

$ 9.01 billion (2012)

Employees

146,200

Main Competitors PepsiCo Inc., Dr Pepper Snapple Group, Inc.,


Unilever, Groupe Danone, Kraft Foods Inc., Nestl
S.A. and many other companies.

The Coca Cola Company Mission


Our mission is:

To refresh the world in mind, body and spirit

To inspire moments of optimism and happiness through our brands and actions

To create value and make a difference.

The Coca Cola Company Vision


To achieve our mission, we have developed a set of goals, which we will work with our bottlers
to deliver:

Chapter # 2
MARKETING STRATEGY
Our local marketing strategy enables Coke to listen to all the voices
a r o u n d t h e w o r l d asking for beverages that span the entire spectrum of tastes and
occasions. What people want in a beverage is a reflection of which they are, where they live,
how they work and play, and how they relax and recharge. Whether you're a student in the
United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in
Peru asking for a juice drink, or a couple in Korea buying bottled water after a run
together, we're there for you. We are determined not only to make great drinks, but
also to contribute to communities around the world through our commitments to
education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently
shaping our business decisions to improve the quality of life in the communities in which
we do business. It's a special thing to have billions of friends around the world, and we
never forget it.
SEGMENTING AND TARGETING MARKETS
Coca Cola uses "Multisegment" targeting strategy which means that the company has more than
single, well- defined, market segment. It develops a marketing mix for each of the segments.
Coca Cola has more than 400 different products line, total of 3,500 product mix.
Geographic segmentation
Coca Cola has drinks that targets different age groups, ethnic groups, sexes, lifestyles, etc.
Examples: - Oasis- Juice made for the younger working adults, between the ages of 20-30. The
product is available in different flavors (berry, lemon, and orange tangerine). Its mostly popular
in Britain and Ireland.

Coca Cola- the most popular soft drink so far that being sold in most countries in the
world. The large demand for its taste and the trend toward healthier lifestyle influenced
Coca Cola to produce healthier products such as Coca Cola Zero, Diet Coca Cola, and
etc.
Coca Cola Zero- targets teens that don't want calories but want the taste.
Diet Coca Cola- targets adults, between 30-50 who are health conscious but want the
taste.
PowerAde- sport drink, targets athletes between 13-27 ages.

Minute Maide- targets kids and adults from 1 year to 10 and 40 plus. Its convenience to
carry. It targets parents that want their children to drink healthier drinks.

Climate- Coca Colas consumption in the summer is 60% than 40% in the winter; therefore, the
company's sales are higher in the summer. It also focuses in hot area in the world.
Demographic segmentation
Age- 15-25 years old and 40 plus.
Gender- targets both genders with wide variety drinks.
Income- segments different income level. For example, by packaging: for low level
income the company is selling returnable glass bottle; for high level income, the company
is selling coke in tins.
Psychographics segmentation
People who are brand conscious will not drink beverages of less known brands. They will try to
show their status by drinking Coca-Cola.
The level of education is another factor that the company is paying attention to. In an high
percentage education, the company can use advertisements to convey the company massage.
Because Coca Cola is a recognized world brand, people will drink it without hesitate.
Coca Cola designed to satisfy the consumers needs. The company is able to provide drinks for
many different target markets: ages, sexes, and etc. The products are sold to diverse population
all around the world. In our world today, people want to live healthier lives. Coca Cola
recognized this need and begun to produce different beverages that are satisfying those
consumers. Coca Cola products are purchased by different classes, but mainly by middle to high
level class. In addition, many people today make their purchases decisions based on the
companys ethics and, or social responsibility. Coca Cola gains the trust of its consumers by
contributing to the environment in varies ways.

Positioning
Once a business has decided which segments of the market it will compete in, developed a clear
picture of its target market and defined its product, the positioning strategy can be developed.
Positioning is the process of creating, the image the product holds in the mind of consumers,

relative to competing products. Coca Cola and Franklins both make soft drinks; although
Franklins may try to compete they will still be seen as down market from Coca Cola. Positioning
helps customers understand what is unique about the products when compared with the
competition. Coca Cola plan to further create positions that will give their products the greatest
advantage in their target markets. Coca Cola has been positioned based on the process of
positioning by direct comparison and have positioned their products to benefit their target
market. Most people create an image of a product by comparing it to another product, thus
evident through the famous battles between Coca-Cola and Pepsi products.
Demographic: Segmentation according to age, gender, family size.

Prepare the marketing program that delivers superior value (4 P, s)

Product:
Many Products are physical objects that you can own and take home. But the word product
means much more than just physical goods. In marketing, product also refers to services, such as
holidays or a movie, where you enjoy the benefits without owning the result of the service.
Businesses must think about products on three different levels, which are the core product, the
actual product 6 and the augmented product. The core product is what the consumer is actually
buying and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The
actual product is the parts and features, which deliver the core product. Consumers will buy the
coke product because of the high standards and high quality of the Coca Cola products. The
augmented product is the extra consumer benefits and services provided to customers. Since soft
drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a help
line and complaint phone service for customers who are not satisfied with the product or wish to
give feedback on the products.

Price
Price is a very important part of the marketing mix as it can affect both the supply and demand
for Coca Cola. The price of Coca Colas products is one of the most important factors in a
customers decision to buy. Price will often be the difference that will push a customer to buy our
product over another, as long as most things are fairly similar. For this reason pricing policies
need to be designed with consumers and external influences in mind, in order to effectively
achieve a stable balance between sales and covering the production costs. Price strategies are
important to Coca Cola because the price determines the amount of sales and profit per unit sold.
Businesses have to set a price that is attractive to their customers and provides the business with
a good level of profit. Long before a sale was ever made Coca Cola had developed a forecast of
consumer demand at different prices which inevitably determined whether or not the product
came on the market, as well as the allocation of adequate money and resources to produce
promote and distribute the product.
Pricing Strategies and Tactics
The pricing Strategy a business will use will have to focus on achieving the marketing plans
objectives and support the positioning of the product, and take external factors such as economic
conditions and competitors in to account. There are 5 strategies available to business: Market
skimming pricing, Penetration pricing, Loss leaders, Price Points and Discounts. Over the years
Coca Cola has used Penetration Pricing as a way of grabbing a foothold in the market and won a
market share. Its product penetrated the marketplace. Once customer loyalty is established as
seen with Coca Cola it is then able to 7 slowly raise the price of its product. There has been a
fierce pricing rivalry between Coca Cola and Pepsi products as each company competes for
customer recognition and satisfaction. Till now it appears as if Coke has come up on top,
although in order to gain long term profits Coke had to sacrifice short term profits where in some
cases it either went under of just broke even, but as seen it has been all for the best.
Place and Distribution
The place P of the marketing mix refers to distribution of the product- the 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 sells its product. Selecting the most
appropriate distribution channel is important, as the choice will determine sales levels and costs.
The choice for a distribution channel for any business depends on numerous factors, these
include:
How far away the customers are;
The type of product being transported;

The lead times required; and;


The costs associated with transport; There are four types of distribution strategies that Coca Cola
could have chosen from, these are: intensive, selective, exclusive and direct distribution. It is
apparent from the popularity of the Coca Colas product on the market that the business in the
past used the method of intensive distribution as the product is available at every possible outlet.
From supermarkets to service stations to your local corner shop, anywhere you go you will find
the Coca Cola products.
Promotion
In todays competitive environment, having the right product at the right place in the right place
at the right time may still not be enough to be successful. Effective communication with the
target market is essential for the success of the product and business. Promotion is the p of the
marketing mix designed to inform the marketplace about who you are, how good your product is
and where they can buy it. Promotion is also used to persuade the customers to try a new
product, or buy more of an old product. The promotional mix is the combination of personal
selling, advertising, sales promotion and public relations that it uses in its marketing plan. Above
the line promotions refers to mainstream media: Advertising through common media such as
television, radio, transport, and billboards and in newspapers and magazines. Because most of
the target is most likely to be exposed to media such as television, radio and magazines, Coca
Cola has used this as the main form of promotion for extensive range of products. Although
advertising is usually very expensive, it is the most effective way of reminding and exposing
potential customers to Coca Cola Products. Coca Cola also utilizes below the line promotions
such as contests, coupons, and free samples. These activities are an effective way of getting
people to give your product ago.
Market Share
This statistic highlights the market share of leading carbonated beverage companies worldwide
as of 2015. The carbonated soft drink market was dominated by the Coca-Cola Company, which
held a market share of 48.6%. The global market was estimated at 341.6 billion U.S. dollars.

Chapter # 3
Corporate social responsibility (CSR)
Customer Relationship Management
(CRM)

Customer Relationship Management (CRM)


Yet, to truly take advantage of the Coca-Cola Freestyle, the company felt it needed a new portal
for its end customers. Customers, for Coca-Cola, mean the end consumers and distributors and
small store owners. Small businesses that have traditionally relied on hand-written invoices and
phone ordering will be able to log into a self-service website and do their ordering from there.
"This will reduce write-offs and collection costs,"
The site will also offer suggestions on what needs to be ordered, based on past consumption.
"For customers, its driving profitability; now it's truly a partnership," Condra said. "With partners
and distributors, it's about our supply chain. Over time, it's really going to be a response to their
needs. They can go to this one location and have those needs met." Coca-Cola is turning to SAP
for the underlying technology. While the requirements of the site demanded a business-tobusiness approach, the fact that it would eventually reach 3 million end customers, many of
whom are small store owners, demanded a simple business-to-consumer interface.

"For an outlet manager to understand the dynamics would be very difficult, so we've assisted
them in that process," Condra said. "The standard CRM out of the box from an e-commerce
standpoint would have had a lot of steps. We tried to think about the mandatory clicks a customer
has to enter."

Building a customer-focused website


Coca-Cola called in Edison, N.J.-based Fujitsu Consulting to help with the project. The first step
in establishing the site was to form a creative design team made up of two business owners, a
non-SAP Web design expert, a CRM functional e-commerce lead, and an SAP CRM technical
Java lead. They supplemented that with end users that represented everything from a business
owner running five outlets to small "mom and pop" shop owners.
The Web design experts presented their approach in html, and the SAP CRM experts outlined the
gap between what was available within SAP and what needed to be customized. They then
prioritized the development required.
"If the business impact is medium or lower and development time is 20, 30 or even 10 days, we
go back to them," said Sathish Thandale, project manager with Fujitsu. "They always had the
usability as the priority, and the SAP experts always had SAP CRM in their mind."

My SAP Customer Relationship Management--Integrates customerfacing business processes and IT Infrastructure, such as order and help desk management, with
operations planning.

My SAP Supply Chain Management--Allows for the seamless use


of operations and planning data, from packaging and customer service
to the vending machine and store shelf.

Corporate social Responsibility (CSR)


Corporate Social Responsibility projects within Coca Cola Sabco are chosen using a
decentralized model within a broad Group Corporate Responsibility Policy. Each territory, and,
in South Africa, each region chooses the community project they would like to support, but are
called upon to justify their selections within the Group Policy and Governance Processes.
Additionally, the Group Policy requires each operation to invest the equivalent of at least one
percent of its operating profit in community projects.
The following section of the report intends to present some examples of how Coca-Cola Sabco
partners with its communities to provide support in areas where assistance is required. While
Coca-Cola Sabco often provides funding for projects, many of our employees devote their own

time to the initiatives we support and we thank them as well as the many people from the
community organizations we partner with. Their selfless devotion to securing the welfare of
others helps make the world a place that we can be proud to live in.

Health and Wellbeing


The Companys operations conduct intervention programs that address
specific health risks, including HIV/AIDS, malaria and lifestyle diseases such as obesity. In
Nigeria, for example, Coca-Cola Hellenic provides HIV/AIDS education, voluntary counseling,
testing and anti-retroviral medicines together with government, the Global Business Coalition on
HIV/AIDS, Tuberculosis and Malaria, local NGOs and The Coca-Cola Company. Awareness
activities were extended in 2007 to reach 3,000 part-time employees, dealers, suppliers and
contractors. In Ukraine, all supervisors and managers were trained to manage HIV/AIDS in the
workplace during 2007.The Companys Nigerian operations teach employees to prevent and
control malaria at work and at home. During 2007 a further 5,000 insecticide-treated nets were
provided for employees to use at home. Physical activity and nutrition education are the focus of
Company efforts in countries where obesity and lifestyle diseases are rising. New programs have
been launched in Greece, in addition to those in Hungary, Romania and Ireland.

A Fair and Ethical Workplace


As a participant in the UN Global Compact,
Coca-Cola Hellenic upholds internationally recognized labor and human rights standards
and commits to fight corruption. The Companys Human Rights Policy and Equality of
Opportunity Policy (available on the Company website) are integrated into management
training, and policies are widely common Child labor is expressly prohibited, and
appropriate checks are made during recruitment. Approximately 90% of Company
operations have implemented policies, and over 11,000 hours of training have been
conducted to date

Chapter # 4

SWOT & PESTEL ANALYSIS

SWOT ANALYSIS
Coca-Cola Company is one of the leading MNC in the world. It has made a remarkable growth
since it origin and it has got a good potential in spite of various hurdles coming its way. By going
through its SWOT analysis we can know much more about the company.

STRENGTH:
The company has got various strengths, which leads the company be a market leader. Some of
the strengths listed below:

A) Strong product line:


The company has got various fast moving products which are going
great job in the market. These soft drinks not only quench thirst but also refresh everyone it
touches. One of the strong brands of the company is Coca-Cola, which specially doing well in
the Pakistan market. It has captured one of the major shares of the soft drink market.

B.) Advertising:
Advertising plays a major in promoting sales of the product. The company has
got one of the best advertising strategies. Appointing film actors, as the brand ambassadors,
makes a great impact on the mind of the customers. The company should try to launch more and
more advertising and sales campaigns to promote sales to the maximum

WEAKNESS:

As no man in this world is a complete man and so are the companies. Every company has got
weakness so as Coca-Cola Company too. Some of the weaknesses which the company should
overcome are as follows:

A.) Distribution network:


The company has got an average distribution network
this is one of the reason why the company fails to fulfill the demand of the customer at time of
peak seasons. It
must go for some more bottling plants and should opt for better distribution channels to increase
the sales in the best possible manner.

B.) Pricing strategy:


The company has got a pricing strategy as there is no certainty of rising
or fall of price during the peak season. This also hamper the sales of the company as the retailers
and distributor get dilemma whether to place the next order or not as increase or decrease in
price may hamper their profit margin and blockage of the goods

OPPORTUNITIES:
Instead of weakness and threats the company the company has got various opportunities to which
it has to go for. The opportunities for the company are as follows:

A.) Large Market:


As Pakistan is said to be one of the biggest market in the world,
thus the company survive for long and can expands to its length and width. Still there are
thousands of villages which have not been covered by soft drink companies. If the company
targets the rural market it can easily make large profits and thus can also satisfy its aim to benefit
and refresh the whole nation.

B.)Launch of other brands:


Coca- Cola Company has got more than 300 brands
which are running successfully over the world. Thus it can launch some more brands in the
country, after studying the demand and desire of the people and can deep its roots by winning
their minds and hearts.

THREATS:
Some of the threats which the can face:
(A) Competitors:
One of the strong competitors of the company is Pepsi Co. thus it has to formulate such strategies
which make it to remain one step ahead and give a strong competition to the competitors. Some
of the other competitor in the path of growth to the company is the local soft drinks
manufacturers who play an active part at the time of peak season. The other local refreshers like
Amrat, Macca and fruit juice etc. which hampers the sales of the company.

(B) Govt. Policies:


The policies of the government also play a major role for the
company. The company cannot perform well or in its own way by violating the rules of the
government. Thus if the government formulates some policies which creates hindrances in the
working of the company it will prove to be one of the major threats.

PESTEL ANALYSIS
Political Analysis
As far as the above table is concerned it could be seen that there are very little chances of
political variables to effect the cokes production and selling behavior. In the political
variables most of the things are related to Governmental activities. So, they dont leave any
good or bad impact in the Industry of coke.
And there are some exceptional things like: environmental protection laws they some what
effect the industry of Coke. From last two years Government is going to be really very much
conscious about the environment. But after making the adjustments in plants and applying the
proper way of wastage the chances of being affected by the protection laws are going to be
diminished. So it impact good for the Cokes reputation. And the second thing in political
variables which effects Coke is elections & military take over Because in the days of elections
and marshal laws condition the countries production in any field is declined. So it affects
slightly the revolution of Coke.
So political conditions are over all leave neutral effects on cokes industry.

Economical Analysis

It could be seen that economical variables highly affects the Cokes resolution. Economic
factors are those actors who effect the production of any industry. So, Coke is not the out of
question. If the economic conditions of the country is not that strong and Coke increases its
Price in this situation. Then it would impact highly negative. And inflation is also not a good
position for any countrys production point of view. It also impacts highly negative in the Cokes
production.
And as a country concerned like Pakistan where the unemployment rate is very much high, the
Coca-Cola system in Pakistan employs 1,800 people. During the last 2 years, the Coca-Cola
system in Pakistan has involved over $130 million (U.S).When we draw the conclusion of
economic variables. Then we come to know that if economic variables are in the favorable
position of country then they impact good otherwise the impact highly bad

SOCIAL ANALYSIS
The Coca-Cola Company has always believed that education is a powerful force in improving
the quality of life and creating opportunity for people and their families around the world.
The Coca-Cola Company is committed to helping people make their dreams come true. All over
the world, we are involved in innovative programs that give hard-working, Knowledge-hungry
students books, supplies, places to study and scholarships. From youth in Brazil to first
generation scholars, educational programs in local communities are our priority.

Technological Analysis
Of course business innovation leaves highly good impacts in the business of Coke. As coke use
more advance technology in its production process. It will result in increment of their production
throughout the country. As far as the governmental hindrances are concerned the impacts
highly bad on cokes production. Ever year when budget in announced government taxes rates
always shoot up. This approach of government decreases the profit margin of Coke.
As the coke helping in promoting paperless environment .it impacts good, because computers
are the basic need of any person now a days. And though its a big industry thus it is promoting
the trend of paperless environment. And it is giving the way of other industries to come to new
technologies and into a new world of business. Through computers coke can increase the
efficiency of its business and can have up to-date data about their productions.

Legal
In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system initiated a
famine-relief program to help victims and was the first private sector company to assist. The
Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one employee from
each plant, selected through a draw, to be sent on the Holy Pilgrimage to Mecca at the
Companys expense.

ENVIRONMENT
A large part or our relationship with the world around us is our relationship with the physical
world. While we have always sought to be sensitive to the environment, we must use our
significant resources and capabilities to provide active leadership on environmental issues,
particularly those relevant to our business. We want the world we share to be clean and beautiful.
We are always innovating to bring you different delicious beverages. This same spirit of
innovation comes alive in our environment programs. Were committed to preserving our
environment, from use of more than $ 2 billion (U.S) a year in recycling content and suppliers,
and environment Management initiatives, down to very local neighborhood collection and
beautification efforts. Heres a sample of what were doing in different communities around the
world regarding the conservation of water and natural resources, climate changes, waste
environment education. The Coca-Cola system in Pakistan operates through eight bottlers. Four
of which are majority owned by Coca-Cola Beverages Pakistan Limited (CCBPL).

Chapter # 5

Conclusion & Recommendations


RECOMMENDATIONS
After completing our project we have concluded some
recommendation for the coca cola company, which are following.
Coca Cola Company should try to emphasis more on providing
their infrastructure in the market to facilitate their customers.
According to the survey, conducted by the international firm
Pakistani people like little bit sweeter cola drink. So for this coca
cola company should produce their product according to the local
demand.
Marketing team should try to increase the availability of Coke in
rural areas.
They should also focus the old people.
Now young generation has a trend to drink coke 2 regular bottles
at same time, so providing more satisfaction to them company
should introduce liter disposable bottle.

Reference

www.coca-cola.com/
www.coca-cola.com/template1/index.jsp?locale=en_US
www.thecoca-colacompany.com/
www.pakvisit.com/.../jobs%20in%20coca%20cola
%20Pakistan.htmen.wikipedia.org/wiki/The_Coca-Cola_Company
www.thecocacolacompany.com/.../chronicle_birth_refreshing_idea.html
www.likecool.com/Coca_Cola_History--Pic--Gear.htm
www.ideafinder.com/history/inventions/cocacola.htmwww.thecocacolacompany.com/.../av_advertising.html
www.psdeluxe.com/.../100-old-coca-cola-ads-and-posters.html

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