Project

Principles of Marketing

Submitted b

Submitted by: AbuBakar Khan

Roll#: 09-023

Nazim Ali

09-024
Roll#:

BBA (M) 3rdt Semester

Submitted to: Sir Asad Abbas Jaffery
 COCA COLA INTERNATIONAL
HISTORY:
Coca-Cola Enterprises, 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 in fountain drinks.
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 a split-adjusted price 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
Operating Segments Exiting product categories:
Operating Segment:

Eurasia & Africa

Europe
Latin America
North America
Pacific
Bottling Investments
Corporate

Products:
Concentrates: Flavoring Ingredients, sweeteners, powder for purified water products such as Dasani.
Syrups: Beverage produced by combining concentrates and depending on the product sweeteners
and added water.
Fountain Syrups: Syrups that we sold to retailers e.g. restaurants & convenience store, which use
dispensing equipment to mix syrups. With sparkling or still water at the time of purchased to
produce finished beverages that are served in cups or glasses for immediate consumption.
Sparkling beverages: Non-Alcoholic ready-to-drink beverages with carbonated, including
carbonated energy drinks and carbonated waters and flavored waters and flavored waters.
Still beverages: Non-Alcoholic beverages without carbonation, including non-carbonated waters,
flavored waters, and enhanced waters, non-carbonated energy drinks, juices and juices drinks, ready-
to-drink teas and sports drinks.
Company Trademark Beverages: Beverages bearing our Trade marks and certain other beverage
products bearing trademarks licensed to us by third parties for which we provide marketing support
and from the sale of which we derive economic benefit.
Trademark Coca-Cola Beverages or “Trademark Coca-Cola”:
Beverages bearing the trademark Coca-Cola or any trademark that includes Coca-Cola or Coke(that
is, Coca-Cola, Diet Coke and Coca-Cola Zero and all their variations and line extensions, including
Coca-Cola light, Coke Zero, Diet Coke with lemon, cherry Coke, etc) Fanta, Sprite, Simply, Fanta
Orange, Fanta Zero Orange and Sprite Light, Simply, Simply Orange, Simply Apple and Simply
Grape fruit.
Cola-Cola Beverages Products Includes:
Coca-Cola,
Caffeine free Coca-Cola,
Cherry Coke,
Diet Coke (sold as Coca-Cola Light in many countries other than the United States),
Caffeine free Diet Coke,
Diet Coke Sweetened with Splenda,
Diet Coke with Lime,
Diet Cherry Coke,
Coca-Cola Zero (sold as Coke Zero in some countries),
Fanta,
Sprite,
Diet Sprite/
Sprite Zero (sold as Sprite Light in many countries other than the United States),
Pibb Xtra,
Mello Yello,
Tab,
Fresca
and
Barq’s sparkling beverages,
Powerade,
Aquarius,
Sokenbicha,
Ciel,
Bonaqa/Bonaqua,
Dasani,
Dasani flavored waters,
Georgia ready-to-drink coffees (sold primarily in Japan),
Lift,
Thums Up,
Kinley,
Eight O’Clock,
Qoo,
Mother,
Vault,
NOS,
Full Throttle

and other products developed for specific countries.

Competition:
Competitors;
 PepsiCo, Inc.( primary competitor )
 Nestle
 Dr Pepper Snapple Group, Inc.
 Groupe Danone
 Kraft Foods Inc.
 Uniliver.

Competitive factors impacting our business include, but are not limited to, pricing, advertising, sales
promotion program, product innovation, increased efficiency in production techniques, the
introduction of new packing, new vending and dispensing equipments and brand and trademark
development and protection.
Our competitive strength include leading brands with a high level of consumer acceptance; a
worldwide network of bottlers and distributions of company products; sophisticated marketing
capabilities; and a talented group of dedicated associates. Our competitive challenges include strong
competition in all geographic regions and in many countries, a concentrated retail sector with
powerful buyers able to freely choose among company products, products of competitive beverages
suppliers and individual retailers’ own store or private label beverage brands.
 COCA COLA PAKISTAN
The Coca-Cola Company began operating in Pakistan in 1953. Coca-Cola, Fanta and Sprite are the
brands 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. During the last two years, The Coca-Cola System in Pakistan has invested
over $130 million (U.S.)

49 years of refreshment in Pakistan

Coca-Cola introduced in Pakistan 1953
Fanta introduced in Pakistan 1965
Sprite was introduced 1972
Diet Coke & Fanta Lemon 2001
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.

Risk Factors:
1 .Obesity and other health concerns may reduce demand for some of our products.

2. Water scarcity and poor quality could negatively impact the Coca-Cola system’s production costs
and capacity.

3. Changes in the nonalcoholic beverages business environment could impact our financial results.

4. The recent global credit crisis and its effects on credit and equity market conditions may adversely
affect our financial performance.

5. Increased competition could hurt our business.

6. If we are unable to expand our operations in developing and emerging markets, our growth rate
could be negatively affected.

7. Fluctuations in foreign currency exchange rates could affect our financial results.

8. If interest rates increase, our net income could be negatively affected.

9. We rely on our bottling partners for a significant portion of our business. If we are unable to
maintain good relationships with our bottling partners, our business could suffer.
10. If our bottling partners’ financial condition deteriorates, our business and financial results could
be affected.

11. Significant additional labeling or warning requirements may inhibit sales of affected products.

13. Adverse weather conditions could reduce the demand for our products.

14. If we are unable to maintain our brand image and corporate reputation, our business may suffer.

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.

New Product Development:

Coca-cola wants to use their surplus capital for a new market offering. for this purpose Coca-Cola
has followed the New Product Development steps. A New Product is lifeblood for an organization.
When the old product become weak organization have to introduce New Products.
Idea Generation:
Bond Energy Drink-customers
Flavored Milk-customer
Bottles-BOD
Nectars, strawberry
Idea Screening:
R-W-W---------Real-Win-Worth
1-Real:
is it real?
From the above Idea the most realist product, according to our Financial, Human and
Technical resource, are Bond Energy Drink, Flavored Milk, Bottles and Nectars.
real need and desire for the Product?
Customers may enjoy Bond Energy Drink, Flavored Milk and Nectars.
Bottles are not a real concern of the customer.
really satisfies the customer needs:
 Bond Energy Drink and Flavored milk could satisfy the customer needs and want but
Nectars’ Market is already saturated.
2-Win:
Our competitors already have launched Bond Energy Drink and Flavored Milk, can we give more
satisfaction to the customer. The Answer is YES because of brand images and quality product is
better than our competitors.
Do we have resources?
Yes; our Co. has the ability to be success.
3-Worth:
is it worth doing?
Bond Energy Drink and Flavored milk of our Co. can do something that greatly worth our
Co.
Does the product set the Company’s overall growth strategy?
Our Co. has capital that is unused and also human and technical Resources also available capture
the market immediately and earned Profit. Management has decided that Flavored Milk will be our
final product to be produced.

Concept Development and Testing:

What the consumer wants?
 Something to drink from our company.
 Which satisfy their wants and desires;
-health
 By which they can enjoy their lifestyle

How the product shall be successful and profitable:

 Due to goodwill and good image of our products in the mind of the customers, we can
capture the market by satisfying their needs and desires.
Concept Testing:
To test our product “Flavored Milk”, we have decided to make sample products and give freely at
different markets and public places and then takes comments from them about our product.
Market Strategy Development:
st
1 part:

1-Target Market:
 children
 young boys and girls
 elders men & women

2-Planned Value Proposition:

 more vitamins and calcium
 new pack opening style is unique than others.

3-Sales, Market shares and Profit goals for the first few years:
 First the company will sold 2,500,000 packs of Flavored Milk at no profit no loss basis.
 In 2nd year Company will sold 4,000,000 packs at 2.5 million profit.

2nd part:
Pricing:
Competition Base;
Price of our product, Flavored Milk, will be always Rs.2 less then our competitors, most prominent
competitor, i-e Nestle.
Distribution:
Product will be distributed to the customers by the distribution Channel we already have.

Marketing Budgets;
Rs.1.5 million budgets for marketing purpose for first year.

3rd part:

Long run Analysis;

Long run sales;

In near future Sales must be reached up to 1 million. For which our resources shall be utilized
effectively to achieve this goal.

Long run Profit;

Profit shall not be less than 45 million.

Business Analysis:
Sales should not be less then 4,500,000, because our cost is about 2,000,000 and to recover our
overall Operating Expenses, Marketing Expense and Administrative Expense we have to make sales
of 4,500,000.
Product Development:

Research & Development has developed samples of Flavored Milk to check, is the in market
offering is matched with the product concept in real sense? Successfully the product concept is turn
into physical product, and now it is [Flavored milk] is ready to be market for initial test.
Test Marketing:
The sample Flavored Milk made to test the market is now ready to offer in market for Testing.
Standard Test Marketing;
The Flavored Milk is distributed in different cities, Lahore, Karachi, Faisalabad, Multan, Peshawar,
Quetta, Gilgit, Mumbai, Calcutta, Goa, Washington, California, Georgia, etc
Controlled Test Market;
Also to test the market Coca-cola has engaged same advertising firms ACNielsen Scantrack,
Information Research Inc.(IRI), and Karakorum Advertising Company.
Simulated Test Markets:
Many samples of Flavored Milk have given to different retailer shops to test the customers’ reaction
about our product. For this purpose Coca-Cola has tested at different market at different cities.
 Commercialization:
To launch the Product in market, a proper time and place should be decided; the management and
marketing manager has decided to launch the product at the time of NEW YEAR and at every
retailer shop where our former products are available.

Promotion:
Advertising
:
Coca-Cola has decided to promote flavored milk, to advertise by;
 Television,
 Print media,
 Billboards,
 Radio,
Direct Marketing:
Coca-Cola has decided to create interest of general public by different channels, e.g. By telling the
Benefit of milk in daily life.