anjalicutek
Anjali Khurana
Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of more than 200 countries.[1] It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). 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.
The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and western Europe. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee.
In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or sodium benzoate, the controversial additive used in Diet Coke and linked to DNA damage in yeast cells and hyperactivity in children. The company has stated that it plans to remove E211 from its other products, including Sprite and Oasis, as soon as a satisfactory alternative is found.[2]
PROMISE OF COKE
The basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business.
TARGET MARKET
Coke’s commercials basically based on young generations, So, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market.
MAJOR SEGMENTS
Major segments are basically those people who take this drink daily and those areas where the demands is higher then the other areas. There are so many people who take this drink daily and those people who take weekly and those who take less often are always there as well. So, their basic segments are those people who take this drink regularly.
FACTORS EFFECTING SALES
There are so many factors, which affects the sale of coke. Here we are discussing three major factors which effects coke.
• Per capita income
• Competitors
• Weather
Per Capita Income
First we will discuss about “ Per capita income”. This is major factor that affects the sale of this soft drink. Because which every passing year budgets are becoming very strict and tight in order to purchase things. So the disposable incomes of the people are coming down. They spend heavily on rents, utilities, and education and basic necessities and after that when they get extra money they think about this soft drink .So the decreasing per capita income effects badly in selling and production of this soft drink.
And to get through with this difficulty there is need to increase the level of per capita income of Pakistan because it is much lesser than the rest of the countries.
Competitors
Coke’s major competitor is “PEPSI” and there is no hesitation to say this because every one knows that and all the other cold drinks and water, coffee, tea are the competitors.
Weather
Weather is the third major factor in effecting the Coke’s selling. This is underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%.
MAJOR CUSTOMERS NEED
First of all the majority don’t care that what they are going to have. In other words, they don’t care before drinking that whether it is “Pepsi” or “coke”. They don’t actually differentiate between these two brands in order to their tastes.
Consumers basically drink what they get.
They believe on “WHAT COLD THEY SOLD”
Consumer’s availability in brands is basically works like:
Push availability
Pull consumer’s demand.
For this reason Coca-Cola have provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market. They provide this infrastructure free of cost just to provide child coke to their customer, which they want to be purchase.
Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not, if not then they immediately change or repair it.
MAJOR COMPETITORS
Consumers firstly decide that they are going to have a soft drink. Then they compete brands with each other. Like they compete Coke with Pepsi and Sprite with 7up and team .So the major competitor of Coke is Pepsi.
When they motivate to any other brand or on Coke it’s in instinct basically that based on messages derive certain feelings.
But Coca Cola thinks in a different way, they believe that RC Cola, new coming AMRAT Cola, and all juices, even they take water and tea as their competitors.
STRATEGIES OF QUALITY
After Micro and macro analysis Brand “coke” is primarily role
1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
Though these strategies there could be better understanding and better connection with the public. These are the “key consumption”.
THREATS FROM COMPETITORS
Threats are well planned. Price is the major threat. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink.
Because when the price go higher people go for the substitute of “coke” i.e. Pepsi.
And when price goes down they think that there is must be some thing wrong in it.
In short it all depends on customer’s perception.
TARGETS THAT WOULD LIKE TO ATTAIN
Every organization runs on the bases of profit maximization so Coke is also looking for a high profit margin.
There are three major ways of making money
• Over night profit
• Windfall profit
• Ethical and un-ethical ways
Over Night Profits
They could be over night profit that is for the number 1 brand for the year. This could be got my increasing sales volume
Windfall Profit
Can be windfall profit. They are the extras profit. When the consumption the consumption is on boom. So, there is different kind of profits.
Ethical And Unethical Ways
Profit can also get through ethical and unethical ways. They believe on this quote
“ Every thing is fare in love and war”.
Some profits stays for some time like “over night profits” and some just come and go like “wind fall profits”. And they can also get profit through different approaches.
EXPANDING TARGET MARKET
In last 2 years Coke has come back in aggressive manner.
• Consumer has choice
• Attractive brand name
• Brand differentiating
Consumer Has Got Choice
Now the consumer has got choice. Because now they know the name of another big brand, though coke is the 2nd best name but it can get a better position after some time
Attractive Brand Name
Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word “ok”. So people can better differentiate brands with each other.
Brand Differentiation
Now different companies have got different brand names. So, people can distinguish between brands. Two major brands “coke” and “Pepsi” also have brand names.
Coca Cola’s Brand
Coca cola is “US” brand. Because they believe in the togetherness, being people together and friends are being together. Coca Cola strongly believes that Pakistani temperament is “US” not “ME”
Pepsi’s Brand
Pepsi’s brand is basically is basically “ME” branded. They use the temperament of “ME”. In contrast to Coke they believe on individual struggle.
THREATS AND OPPORTUNITIES FOR PRICE
Opportunities
If Coke is considered a luxury product. Then there is the tax rate system
15% - sales tax
20% - excise duty
27% - goes to government
03% - In making Budget
After paying all these taxes coke has to pay electricity charges. We have to spend on distributions. After paying all these expenses Coke’s margin squeezed and consumers have to pay for increasing tariffs.
These are the opportunities through which we can increase the price and can get profits.
Threats
There are much more threats in increasing prices. Because same problem of substitute. If Coke increase the price lets say 1 rupee. Then people definitely won’t go for coke. They have the best substitute of Coke that is Pepsi. So these are the threats in increasing prices. Coke will lose the margin of its profit and can face loss.
STRATEGIES OF GETTING GOALS I.E. “HIGH PROFITS”
To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows.
• Volume can be increased
• Interest level of consumers
• To take part in energetic festivals
How to increase the volume of consumers?
Coke can increase the volume by expanding the industry of coke. Through advertisements, offering different interesting things to attract people towards this product.
How to increase the interest level of consumers?
Coke is increasing the interest level of consumers by offering different flavors.
For example Coke is increasing the number of flavors in “Fanta”, this is one of the product of coke. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained.
How to take part in energetic festivals?
Coke is already taking part in the festival like “Basant” since last 3 years. Coke offers different attractive things in their festival and through this Coke gained high profit and consumption of coke increased on these occasions.
And this year in this year 2002 people were anxiously waiting that what interesting thing coke is going to offer.
MARKETING STRATEGY
Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who 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.
MARKET POSITIONING
Product Range
The total range of Coca Cola company in Pakistan includes:
• Coke.
• Sprite.
• Fanta.
• Diet Coke.
And company offers their products in different bottle sizes these includes:
• SSRB (standers size returnable bottle)
• LRB (litter returnable bottle)
• NRB (no return bottle) or disposable bottle
• PET 1.5 (1.5 litter plastic bottle)
• CANS (tin pack 330 ml)
Packing
Coca cola products are available in different packing
• 24 regular bottle shell
• 6 bottle pack for 1.5 pets
• 12 bottles in a pack for disposable bottle
• 24 cans in one pack.
PRICE STRATEGY
Trade Promotion
Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And that’s why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more.
“Seen as sold”
They do agreements with a shop keepers and stores to exclusive sale in that stores. These stores are called as KEY accounts in their local language.
And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.
Different Price In Different Seasons
Some times Coca Cola Company change their product prices according to the season. Summer is supposed to be a good season for beverage industry in Pakistan.
So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle.
PROMOTION STRATEGIES
Getting shelves
They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.
Eye Catching Position
Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores.
Sale Promotion
Company also do sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share.
UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children.
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 own transports. 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 is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.
FACILITATING THE PRODUCT BY INFRASTRUCTURE
For providing their product in good manner company has provided infrastructure these includes:
• Vizi cooler
• Freezers
• Display racks
• Free empty bottles and shells for bottles
ADVERTISEMENT
Coca cola company use different mediums
• Print media
• Pos material
• Tv commercial
• Billboards and holdings
Print Media
They often use print media for advertisement. They have a separate department for print media.
POS Material
Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas.
TV Commercials
As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.
Billboards And Holdings
Coca cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.
EXPECTATIONS FOR THE COMING YEAR
Every thing starts from the attitude of consumer’s behavior. And the basic key to attract the consumers is to throw the “money away”.
And positive feeling felling with the brand, which they used to have Coke wants to advertise their products heavily in the coming year. And it will take the 10% of their profits. And when we take it as a global level it is $ I billion.
Coming year is the challenging year for the industry of Coke. They have to take lots of decisions that how to increase the production and where they have to spend money.
For gaining success in coming year they have to have some important things like:
1. Loyal consumers are important for company’s success.
2. Workers should be the brand centric not the promotion centric.
3. They should know how much to for the brand activities.
4. They should also know that how much to do with the promotion activities for brand.
HOW COKE DETERMINE THE YEARLY BUDGET
Coke determines its yearly budget by the
• Sales volume
• Profitability
• Target volume
Sales Volume
Coke determines its yearly budget through the sales volume. They first concentrate on the thing is “what is the condition of their sales?” if the condition is good of their sales then they definitely increase their production and sales volume. Otherwise they concentrate on their old strategies.
Profitability:
The second thing through which they determines budget is the “profit” .if they r getting profits with the high margin, then they definitely want to increase their profits in the next coming year. Every organization runs on the basis of getting high profits. No organization wants to face Loss in their business. To get profit is the first priority of the Coke.
Target Volume:
To run the business every industry has some targets, which they want to 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.
So Coke Follow the same thing it has also some goals and targets to achieve in the given time period. When they succeed to achieve that target then they increase their target volume in the next year.
SALES PROMOTION ACTIVITIES
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 the promotion of their products over a period of time. It has ranged from tobacco 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 sponsorship agreement with eight of Pakistan’s National cricket players. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it consumers & masses invested in the opportunity and launched a massive campaign on mass media showing all these cricket stars endorsing & complimenting Coca-Cola brand. The Coca-Cola Company developed three TV commercials & four testimonial ads with the player & ran them on the national net work during various cricket matches. These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board. This campaign helped Coca-Cola to establish its association with the game & the player.
Coca-Cola Concerts
Abrar-ul-haq’s distinct style, lyrics & songs have made him an instant hit among the masses in Pakistan. His enormous popularity in the country & abroad is supported by Coca-Cola’s commitment towards providing healthy & fun-filled entertainment for the youth of Pakistan. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured throughout the country.
The TVC campaign focused on the hectic lifestyle of a pop star who found respite & relief through Coca-Cola in short moments that he had to himself during a concert. Coca-Cola’s brand positioning of providing deep down refreshment for the body, soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar.
Coca-Cola Food Mela
With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the people of Karachi, to a festive food festival comprising of 50 restaurants, spread out all over the bustling city’s map. The promotion saw the avid families & friends enjoying the delicacies at the restaurants; all resiliently upholding the Coca-Cola identity.
Coca-Cola Basant Festival
In February the month of basant the parks & horticulture authority in Lahore nominated Coca-Cola the official sponsor of the basant festival .Coca-Cola added to the carnival atmosphere by making the festival free to enter & decorating all main roads in Lahore with illuminated kites. Coca-Cola also hosted a concert of pop idol Abrar-ul-haq, had children’s parade & held the Coca-Cola kite flying championship 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 give the 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 GO-RED
Quenching the thirst of motorist, pedestrians & passerby’s during Lahore’s hottest summer season, Coca-Cola’s “GO-RED” teams went out into the cities main quadrants to “serve & refresh” on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement campaign the “GO-RED” stall, served well to promote the Coca-Cola industry.
Coca-Cola Party in a Park
In June 2000, Coca-Cola created an experiential musical evening in Lahore, where Junoon performed. This program was recorded and one-hour program shown in the national TV for free.10 million households saw Coca-Cola ‘Party in a Park’ while 10 thousand people attended the event.
Coca-Cola Shopping Festival
Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping festival, a resounding success with tempting discounts, live music, great prizes & fire works. Liberty marketing Gulberg was a hive of activity during the weeklong shopping extravaganza. The in augural event proved so popular that it is now set to become an annual fixture.
Coca-Cola Pet Promotion
In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in Pakistan. Targeting house wives & family home, Coca-Cola’s 1.5 liter Pet bottle, took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits .A treat for the family, Coca-Cola’s PET was offered through a “price-off” promotion that said……….Go out & get some
The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and western Europe. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee.
In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or sodium benzoate, the controversial additive used in Diet Coke and linked to DNA damage in yeast cells and hyperactivity in children. The company has stated that it plans to remove E211 from its other products, including Sprite and Oasis, as soon as a satisfactory alternative is found.[2]
PROMISE OF COKE
The basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business.
TARGET MARKET
Coke’s commercials basically based on young generations, So, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market.
MAJOR SEGMENTS
Major segments are basically those people who take this drink daily and those areas where the demands is higher then the other areas. There are so many people who take this drink daily and those people who take weekly and those who take less often are always there as well. So, their basic segments are those people who take this drink regularly.
FACTORS EFFECTING SALES
There are so many factors, which affects the sale of coke. Here we are discussing three major factors which effects coke.
• Per capita income
• Competitors
• Weather
Per Capita Income
First we will discuss about “ Per capita income”. This is major factor that affects the sale of this soft drink. Because which every passing year budgets are becoming very strict and tight in order to purchase things. So the disposable incomes of the people are coming down. They spend heavily on rents, utilities, and education and basic necessities and after that when they get extra money they think about this soft drink .So the decreasing per capita income effects badly in selling and production of this soft drink.
And to get through with this difficulty there is need to increase the level of per capita income of Pakistan because it is much lesser than the rest of the countries.
Competitors
Coke’s major competitor is “PEPSI” and there is no hesitation to say this because every one knows that and all the other cold drinks and water, coffee, tea are the competitors.
Weather
Weather is the third major factor in effecting the Coke’s selling. This is underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%.
MAJOR CUSTOMERS NEED
First of all the majority don’t care that what they are going to have. In other words, they don’t care before drinking that whether it is “Pepsi” or “coke”. They don’t actually differentiate between these two brands in order to their tastes.
Consumers basically drink what they get.
They believe on “WHAT COLD THEY SOLD”
Consumer’s availability in brands is basically works like:
Push availability
Pull consumer’s demand.
For this reason Coca-Cola have provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market. They provide this infrastructure free of cost just to provide child coke to their customer, which they want to be purchase.
Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not, if not then they immediately change or repair it.
MAJOR COMPETITORS
Consumers firstly decide that they are going to have a soft drink. Then they compete brands with each other. Like they compete Coke with Pepsi and Sprite with 7up and team .So the major competitor of Coke is Pepsi.
When they motivate to any other brand or on Coke it’s in instinct basically that based on messages derive certain feelings.
But Coca Cola thinks in a different way, they believe that RC Cola, new coming AMRAT Cola, and all juices, even they take water and tea as their competitors.
STRATEGIES OF QUALITY
After Micro and macro analysis Brand “coke” is primarily role
1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
Though these strategies there could be better understanding and better connection with the public. These are the “key consumption”.
THREATS FROM COMPETITORS
Threats are well planned. Price is the major threat. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink.
Because when the price go higher people go for the substitute of “coke” i.e. Pepsi.
And when price goes down they think that there is must be some thing wrong in it.
In short it all depends on customer’s perception.
TARGETS THAT WOULD LIKE TO ATTAIN
Every organization runs on the bases of profit maximization so Coke is also looking for a high profit margin.
There are three major ways of making money
• Over night profit
• Windfall profit
• Ethical and un-ethical ways
Over Night Profits
They could be over night profit that is for the number 1 brand for the year. This could be got my increasing sales volume
Windfall Profit
Can be windfall profit. They are the extras profit. When the consumption the consumption is on boom. So, there is different kind of profits.
Ethical And Unethical Ways
Profit can also get through ethical and unethical ways. They believe on this quote
“ Every thing is fare in love and war”.
Some profits stays for some time like “over night profits” and some just come and go like “wind fall profits”. And they can also get profit through different approaches.
EXPANDING TARGET MARKET
In last 2 years Coke has come back in aggressive manner.
• Consumer has choice
• Attractive brand name
• Brand differentiating
Consumer Has Got Choice
Now the consumer has got choice. Because now they know the name of another big brand, though coke is the 2nd best name but it can get a better position after some time
Attractive Brand Name
Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word “ok”. So people can better differentiate brands with each other.
Brand Differentiation
Now different companies have got different brand names. So, people can distinguish between brands. Two major brands “coke” and “Pepsi” also have brand names.
Coca Cola’s Brand
Coca cola is “US” brand. Because they believe in the togetherness, being people together and friends are being together. Coca Cola strongly believes that Pakistani temperament is “US” not “ME”
Pepsi’s Brand
Pepsi’s brand is basically is basically “ME” branded. They use the temperament of “ME”. In contrast to Coke they believe on individual struggle.
THREATS AND OPPORTUNITIES FOR PRICE
Opportunities
If Coke is considered a luxury product. Then there is the tax rate system
15% - sales tax
20% - excise duty
27% - goes to government
03% - In making Budget
After paying all these taxes coke has to pay electricity charges. We have to spend on distributions. After paying all these expenses Coke’s margin squeezed and consumers have to pay for increasing tariffs.
These are the opportunities through which we can increase the price and can get profits.
Threats
There are much more threats in increasing prices. Because same problem of substitute. If Coke increase the price lets say 1 rupee. Then people definitely won’t go for coke. They have the best substitute of Coke that is Pepsi. So these are the threats in increasing prices. Coke will lose the margin of its profit and can face loss.
STRATEGIES OF GETTING GOALS I.E. “HIGH PROFITS”
To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows.
• Volume can be increased
• Interest level of consumers
• To take part in energetic festivals
How to increase the volume of consumers?
Coke can increase the volume by expanding the industry of coke. Through advertisements, offering different interesting things to attract people towards this product.
How to increase the interest level of consumers?
Coke is increasing the interest level of consumers by offering different flavors.
For example Coke is increasing the number of flavors in “Fanta”, this is one of the product of coke. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained.
How to take part in energetic festivals?
Coke is already taking part in the festival like “Basant” since last 3 years. Coke offers different attractive things in their festival and through this Coke gained high profit and consumption of coke increased on these occasions.
And this year in this year 2002 people were anxiously waiting that what interesting thing coke is going to offer.
MARKETING STRATEGY
Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who 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.
MARKET POSITIONING
Product Range
The total range of Coca Cola company in Pakistan includes:
• Coke.
• Sprite.
• Fanta.
• Diet Coke.
And company offers their products in different bottle sizes these includes:
• SSRB (standers size returnable bottle)
• LRB (litter returnable bottle)
• NRB (no return bottle) or disposable bottle
• PET 1.5 (1.5 litter plastic bottle)
• CANS (tin pack 330 ml)
Packing
Coca cola products are available in different packing
• 24 regular bottle shell
• 6 bottle pack for 1.5 pets
• 12 bottles in a pack for disposable bottle
• 24 cans in one pack.
PRICE STRATEGY
Trade Promotion
Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And that’s why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more.
“Seen as sold”
They do agreements with a shop keepers and stores to exclusive sale in that stores. These stores are called as KEY accounts in their local language.
And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.
Different Price In Different Seasons
Some times Coca Cola Company change their product prices according to the season. Summer is supposed to be a good season for beverage industry in Pakistan.
So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle.
PROMOTION STRATEGIES
Getting shelves
They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.
Eye Catching Position
Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores.
Sale Promotion
Company also do sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share.
UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children.
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 own transports. 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 is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.
FACILITATING THE PRODUCT BY INFRASTRUCTURE
For providing their product in good manner company has provided infrastructure these includes:
• Vizi cooler
• Freezers
• Display racks
• Free empty bottles and shells for bottles
ADVERTISEMENT
Coca cola company use different mediums
• Print media
• Pos material
• Tv commercial
• Billboards and holdings
Print Media
They often use print media for advertisement. They have a separate department for print media.
POS Material
Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas.
TV Commercials
As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.
Billboards And Holdings
Coca cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.
EXPECTATIONS FOR THE COMING YEAR
Every thing starts from the attitude of consumer’s behavior. And the basic key to attract the consumers is to throw the “money away”.
And positive feeling felling with the brand, which they used to have Coke wants to advertise their products heavily in the coming year. And it will take the 10% of their profits. And when we take it as a global level it is $ I billion.
Coming year is the challenging year for the industry of Coke. They have to take lots of decisions that how to increase the production and where they have to spend money.
For gaining success in coming year they have to have some important things like:
1. Loyal consumers are important for company’s success.
2. Workers should be the brand centric not the promotion centric.
3. They should know how much to for the brand activities.
4. They should also know that how much to do with the promotion activities for brand.
HOW COKE DETERMINE THE YEARLY BUDGET
Coke determines its yearly budget by the
• Sales volume
• Profitability
• Target volume
Sales Volume
Coke determines its yearly budget through the sales volume. They first concentrate on the thing is “what is the condition of their sales?” if the condition is good of their sales then they definitely increase their production and sales volume. Otherwise they concentrate on their old strategies.
Profitability:
The second thing through which they determines budget is the “profit” .if they r getting profits with the high margin, then they definitely want to increase their profits in the next coming year. Every organization runs on the basis of getting high profits. No organization wants to face Loss in their business. To get profit is the first priority of the Coke.
Target Volume:
To run the business every industry has some targets, which they want to 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.
So Coke Follow the same thing it has also some goals and targets to achieve in the given time period. When they succeed to achieve that target then they increase their target volume in the next year.
SALES PROMOTION ACTIVITIES
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 the promotion of their products over a period of time. It has ranged from tobacco 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 sponsorship agreement with eight of Pakistan’s National cricket players. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it consumers & masses invested in the opportunity and launched a massive campaign on mass media showing all these cricket stars endorsing & complimenting Coca-Cola brand. The Coca-Cola Company developed three TV commercials & four testimonial ads with the player & ran them on the national net work during various cricket matches. These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board. This campaign helped Coca-Cola to establish its association with the game & the player.
Coca-Cola Concerts
Abrar-ul-haq’s distinct style, lyrics & songs have made him an instant hit among the masses in Pakistan. His enormous popularity in the country & abroad is supported by Coca-Cola’s commitment towards providing healthy & fun-filled entertainment for the youth of Pakistan. Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured throughout the country.
The TVC campaign focused on the hectic lifestyle of a pop star who found respite & relief through Coca-Cola in short moments that he had to himself during a concert. Coca-Cola’s brand positioning of providing deep down refreshment for the body, soul & mind were captured accurately in the TVC & depicted aptly how the drink completes the moment for Abrar.
Coca-Cola Food Mela
With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the people of Karachi, to a festive food festival comprising of 50 restaurants, spread out all over the bustling city’s map. The promotion saw the avid families & friends enjoying the delicacies at the restaurants; all resiliently upholding the Coca-Cola identity.
Coca-Cola Basant Festival
In February the month of basant the parks & horticulture authority in Lahore nominated Coca-Cola the official sponsor of the basant festival .Coca-Cola added to the carnival atmosphere by making the festival free to enter & decorating all main roads in Lahore with illuminated kites. Coca-Cola also hosted a concert of pop idol Abrar-ul-haq, had children’s parade & held the Coca-Cola kite flying championship 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 give the 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 GO-RED
Quenching the thirst of motorist, pedestrians & passerby’s during Lahore’s hottest summer season, Coca-Cola’s “GO-RED” teams went out into the cities main quadrants to “serve & refresh” on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement campaign the “GO-RED” stall, served well to promote the Coca-Cola industry.
Coca-Cola Party in a Park
In June 2000, Coca-Cola created an experiential musical evening in Lahore, where Junoon performed. This program was recorded and one-hour program shown in the national TV for free.10 million households saw Coca-Cola ‘Party in a Park’ while 10 thousand people attended the event.
Coca-Cola Shopping Festival
Coca-Cola hosted “The Coca-Cola Shopping Festival” Lahore’s first shopping festival, a resounding success with tempting discounts, live music, great prizes & fire works. Liberty marketing Gulberg was a hive of activity during the weeklong shopping extravaganza. The in augural event proved so popular that it is now set to become an annual fixture.
Coca-Cola Pet Promotion
In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in Pakistan. Targeting house wives & family home, Coca-Cola’s 1.5 liter Pet bottle, took the limelight & gained momentum with a campaign promoting the unique packaging and its numerous consumer benefits .A treat for the family, Coca-Cola’s PET was offered through a “price-off” promotion that said……….Go out & get some