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Coca Cola Pvt. Limited 1

Submitted to

Group MembersUmar Javed 081158Umar Sajjad 081188Khuram Shahzad 083268Shakeel Anjum 083277Kashif Ali 063140Wahab Ahmad 092806Munir Hussain 063138

Institute Of Management Sciences, Lahore

Nasir Hussain

Project Report: Coca Cola Pvt. Limited


MISSION STATEMENT

Mission statement is a statement of organization’s purposes that what it wants to accomplish. In order to achieve mission of increasing market share and maintaining good relations with our customers all over the world, we wish to create value for all the constraints we serve, including our consumers, our bottlers, and our communities. The Coca Cola Company creates value by executing business strategy guided by four key beliefs:

Customer is king; Customer demand drives everything we do.

Brand Coca Cola is the core of our business. We will serve consumers a broad selection of the

nonalcoholic ready-to–drink beverages they want to drink through out the day.

We will be the best marketers in the world.

The ultimate objective of our business strategy is to increase volume, expand our share of worldwide nonalcoholic beverages sale and to maximize our long-term cash flows. We keenly focus on enhancing value for our customers and helping them grow their beverage business. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market or a kiosk owner in an emerging market. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right


products in the right markets at the right time. The basic proposition of our business is simple and solid that is we want to bring refreshment, value, joy and fun to all our consumers. For that we strongly believe to protect our brands, particularly Coke.

ACKNOWLEDGEMENT

A token of special thanks to the following people who had been very friendly, co-operated with us throughout our visit to CCBPL Lahore plant and made it possible for us to learn and gather all the information needed for our project report in as much detail as we could. These are the people who in spite of their busy scheduling took time out to explain to us the procedures and mechanics of work in the organization. Our project report would not have been possible without their friendly and helpful attitude.

Mr. Amir Faisal Hashmi (Human Resources & Industrial Relation Manager)Mobile # 0300-8456707E-mail id: [email protected]


Mr. Eiraj Saleh Daud (Marketing and Sales Manager)0300-8462122E-mail id: [email protected]

Factory Address

23km –Riawand Road Lahore. .Pakistan.Factory Phone: 5320010-4

Table Of Contents

Page #Mission StatementAcknowledgement

INTRODCUTION 7

History of Coca-Cola 7Coke History in Pakistan

8

Target Marketing9


Marketing Mix9

PRODUCT10

Product Range 10Packing 10Product Strategy

10Level Of Coke 11Branding 12Product Line Decisions

12

Price 13Price 13Price strategy 13Trade Promotion

13Different Prices 13

PlaceAvailability 14Distribution Channels

14Direct Selling 14In-Direct Selling

14Market Segmentation

14Coke Segmentation Strategy

15


Geographic Segmentation15

Demographic Segmentation15

Behavior Segmentation16

Promotion 17

Promotion Strategies17

Publicity 18Price Scheme 18Promotion campaign

19

Conclusions and Recommendations 20


Introduction

History of Coca-Cola:

Coca-Cola Enterprises was established in 1986 is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company.The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at adjusted prices of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986.In December 1991; a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion at the year-end. Presently The Coca-Cola Company is the largest soft drink company in the world. Every year 800,000,000 servings of just "Coke" are sold in the U.S alone.


Coke History in Pakistan

“51 Years of dedicated service”

The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite are the brands with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in Pakistan operates through eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan, Multan and Lahore. The remaining two plants, independently owned, are in Rawalpindi and Peshawar. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan employs 1,800 people working constantly for the company. During the last two years, The Coca-Cola Company in Pakistan has invested over $130 million (U.S) and coke has successfully provided 51 years of dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firm has been continuously changing its slogans and that’s a very creative idea to get the attention

of the customers. Here we would like to include some of the popular slogans of coke since the coke journey started.

1886 Drink Coca-Cola 1908 Get the genuine 1923 Enjoy thirst 1934 When it's hard to get started, start with a Coca-Cola 1942 The only thing like Coca-Cola is Coca-Cola itself 1956 The friendliest drink on earth 1963 Things go better with Coke 1993 Always. Coca-Cola 2001 Life is Good


2003 Jo Chaho Ho Jaye Coca Cola Enjoy] 2005 geo coke zindagi 2009 very Brrrrrrrrrrrrrrrrrrrrrrrrr hai coke zindagi

Target Marketing:

This is the process of evaluating each market segment’s attractiveness and selecting 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 view each buyer as a separate target market. Ideally, then, a seller might design a separate marketing program for each buyer. There are three types of market segments.

Undifferentiated marketing. (Mass Marketing) Differentiated marketing. (Segmented Marketing)

Marketing Mix of Coca-Cola Product Price Place Promotion

Product Price Place Promotion

Functionali List price Channel Advertisin


ty

Appearance

Quality

Packaging

Brand

Warranty

Service/Support

Discounts

Allowances

Financing

Leasing options

members

Channel motivation

Market coverage

Locations

Logistics

Service levels

g

Personal selling

Public relations

Message

Media

Budget

Product

Coca-Cola the world’s most popular beverages .The popularity of Coke is to such an extent that

“The most known and spoken word in world after OK is COKE

Product RangeThe total range of Coca Cola Company in Pakistan includes:Coke, SpriteFantaDiet coke

And company offers their products in different bottle sizes these include:

SSRB (standers size returnable bottle)LRB (litter returnable bottle)NRB (no return bottle) or disposable bottlePET 1.5 (1.5 litter plastic bottle)CANS (tin pack 330 ml)

Packing


Coca cola products are available in different packing 24 regular bottle shells6 bottle pack for 1.5 pets 12 bottles in a pack for disposable bottle24 cans in one packet.

Product strategyProduct: Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

Levels of coke as a product

Core product:

Core benefit is that it fulfills the thirst.

Actual product:

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

Product Classifications:

Coke is categorized as a convenience product, because the purchasing rate is very high and this is the product that is bought very frequently.

Individual product decisions Branding:

a) Brand Equity:


As far as coke is concerned brand equity for the customers is very high. People are highly brand loyal.

b) Brand Strategy:

The following is the brand strategy of Coke

Brand

PRODUCT

Existing New

Existing

Line extension

Brand extension

New Multi-Branding

New brands

Line Extension:

Line extension occurs when a company introduces additional items in a given product category under the same brand name. For example if Coke introduces new flavors and package size, it will be considered as line extension.

Brand Extension:

Brand extension means using a successful brand name lets say Coca-Cola and then launching new product for example cherry coke. This was an example of brand extension.

Multi-Branding:


It means introducing additional brands in the same category. For example Coca-Cola not only introduced coke as a brand but also sprite and Fanta.

Diversification:

It means introducing new product with the new brand name. It means diversification but this is something Coca-Cola has not adopted for as yet.

Product Line Decisions:

Product Line Length:

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

Product Line Filling: Product line filling means that earlier when Coca-Cola started it had only one flavor of coke available and that is classic coke but with the passage of time company filled the product line by adding diet coke, diet lemon etc

Price

Price Rs.10/- for 250-ml bottle,

Rs.25/- for tin.Rs.30/- for 1 liter bottle.Rs.40/- for 1.5 liter bottle.

Very economical justifies the ultimate taste and joy provided by the beverage of and on price cuts are provided to customers.

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 changes 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.

Place

Availability Available in all main as well as posh and backward areas in big cities, Available to some extent in posh areas of small citiesAvailable in all restaurants and hotels, colleges, universities, hospitals, bus stops etc.

DISTRIBUTION CHANNELSCoca Cola Company makes two types of selling Direct sellingIndirect selling


Direct Selling

In direct selling they supply their products in shops by using their own transports. They have almost 250 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 FreezersDisplay racksFree empty bottles and shells for bottles

Market segmentation:

Dividing a market into distinct groups with distinct needs, characteristics, or behavior 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.

There is no single way to segment a market. The market has to try different segmentation variables, alone and in combination, to find the best way to view the market structure.

Concentrated marketing. (Segmented Marketing, small segment)

Coke segmentation strategy:


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

Geographic Segmentation:

Internationally:

Coke segments its products country wise and region wise, here the most important thing is the taste and the quality, it varies according to the taste and the income level of the people in that country, i.e. Third world counties are given low quality taste.

Climatic:

In coke marketing, main idea is to serve it cold, so we can say that, they focus more on hot areas of the world, i.e. middle east etc and there sale increase in summer.

Locally: In Pakistan the coke segments more in urban and suburban areas as compare to rural.

Demographic Segmentation:

Age:

Internationally coke has segments the small children introducing tastes like vanilla, lime and cherry, they focus children from 4-12. Coke specifically target more young people than older.

Family type:

Coke introduces its economy pack, and that’s how they focus family and groups.

“A question to ‘Amer pasha’ Country Manager”

Question:


Pepsi is targeting exactly the same market, and music is also a part of their brand image, so where does the differentiation lie in your approach?

Answer:

Pepsi’s brand personality is different, ours is about togetherness, about ‘us’. Coke will always show activities, where people get together to enjoy moments of togetherness with our brand. Our research indicates that youngsters love to get together, and it is when they are enjoying themselves, that will consume coke. For Pakistani youth, socializing with friends and family is ‘core’ behavior in their lives. Coke’s brand personality is also about togetherness.

Income:

Coke segments different income levels by packaging. Like for small income people it has small returnable glass bottle, for middle people it has non returnable bottle and for higher income people it has coke tin.

Psychographics Segmentation:

All psychographics variables the social class, lifestyle, occupation, level of education and personality, coke segments everyone, but again its there packaging which is different for different consumers.

Behavioral Segmentation:Occasions:

Thanks to the Coca-Cola Company the local festival of Basant has become and international event and an identity of the culture of Pakistan. Over the year the annual spring festival of Basant has taken on mega proportions. Previously restricted largely to the walled city, the festivities now flood every nook and corner of Lahore. The credit for making the celebrations available to almost everyone largely goes to The Coca-Cola Company. In 2003, Coke was once again nominated as the official sponsor for the Basant festival bye the parks& horticulture authority, Lahore for the fourth year running. In these four years, the company has played a pioneering role in making the Basant festival


major social and culture event in Pakistan. (“The News” on 50th anniversary of the Coca-Cola in Pakistan.)

Benefits Sought:

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

Promotion:To promote the Coca-Cola, Fanta, and Sprite 3G the company uses the following tactics or ways

Advertisements with catchy slogans

Coca-Cola enjoys Always Coca-Cola. Eat Cricket, sleep cricket, and drink Coca-Cola.

Sponsorship:

Sports e.g. cricket matches and hockey. Events e.g. basant festivals. Concerts. Artist album e.g.Arar-ul-Haq.

PROMOTION STRATEGIESGetting 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.

PUBLICITY Coca Cola Company use different mediums Print mediaPos materialTV 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

Prize schemes:


Coca-Cola glasses. Bicycles. TV (16’, 21’.28’)

Prize cuts from time to time.

Ramadan offer. Eid offer. Buy one get one free. Anniversary offer. Independence Day offered.

Billboard –electronic sign board

In major public areas, liberty bank square. At centre point.etc.

Promotional campaigns of coke:

BASANT:

The Coca-Cola Company sponsors the basant festivals in Lahore, a festival that marks the beginning of spring and attracts visitors from all over the world. Part of the festivals is” Coca-Cola kite flying championship”.


Concerts and charity programs:

The Coca-Cola Company sponsors Pakistani leading pop group and organizes concerts and charity shows throughout the country for teen ages and underprivileged children.

Cricket players for promotion:

The company has signed a sponsorship agreement with eight of Pakistan’s national cricket players for promotional and advertising use.

Conclusion & Recommendations:

CONCLUSIONAfter thorough research, we come to the conclusion that the marketing strategy of Coca Cola is working for them and the product is gaining popularity among youth day by day

RECOMMENDATIONS:Bottle shape

Repositioning of flavored FantaShould be flexible in policies


Prize schemesPrize schemes

Instead of large expensive gifts, prize schemes should constitute of small, inexpensive gifts e.g. Coca-Cola penal case. Coca-Cola pen, key chains, T-shirts, Cups, bottles in each cerate could contain prizes. This would be a much effective scheme to increase sales.

Should be flexible in policies

CCI should allow some degree of freedom in its policies and work procedures and policies according to the environment and conditions of Pakistan without having to ask for permission every time.

BOTTLE SHAPE

They must use same curved bottle shape for all brands

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