Submitted by:

MITHUN HATI
+3 Final Years,
Accounting Honours
Roll no:-30618040
Regd. No:- 4879/06

Under the Guidance of

Mr.Prasanna Kumar Sahoo
Lecturer in Commerce
Bank (A) College, Banki

SESSION :2006-09

CONTENTS
1. Acknowledgement.
2. Mission statement
3. Introduction.
4. Coca Cola.
5. Management.
6. Market share.
7. Financial report.
8. Dividends and Cash Plan.
9. Products.
10. Strategic planning.
11. Bottlers owned by Coca cola
12. Coca Cola Pakistan.
13. Major Competitors
14. Some basic information regarding marketing of coke
a. Target market:
b. Major segments:
c. Factors effecting sales:
d. Major competitors:
e. Strategies of quality:
f. Threats from competitors:
g. Targets that would like to attain:
h. Expanding target market
i. Threats and opportunities for price:
j. Strategies of getting goals i.e. “high profits”:
k. Marketing strategy:
l. Expectations for the coming year:
m. How coke determine the yearly budget:
15. Marketing strategies
16. Pest analysis
We think if any of us honestly reflects on who we are, how we got here, what
we think we might do well, and so forth, we discover a debt to others that
spans written history. The work of some unknown person makes our lives
easier everyday. We believe it's appropriate to acknowledge all of these
unknown persons; but it is also necessary to acknowledge those people we
know have directly shaped our lives and our work.

First of all we would like to thank our Lecturer Samir Kumar Mohapatra for
their guidance through out the semester.

Then we would like to thank our friend and brother for providing us the
information that was required for completion of this project.

Alok Ranjan Subudhi

Roll no:-30619002
Regd. No:- 4970/06
Group: V

The Mission Statement of the Coca Cola

Company
Our mission statement is to maximize shareowner value over time.
In order to achieve this mission, we must create value for all the constraints we serve,
including our consumers, our customers, our bottlers, and our communities. The Coca
Cola Company creates value by executing comprehensive business strategy guided by
six key beliefs:

1. Consumer demand drives everything we do.

2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the nonalcoholic ready-to–
drink beverages they want to drink through out the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand
our share of worldwide nonalcoholic ready to drink beverages sales, maximize our
long-term cash flows, and create economic value added by improving economic
profit.

The Coca Cola system has more than 16 million customers around the world that sells or
serves our products directly to consumers. We keenly focus on enhancing value for
these customers and helping them grow their beverage businesses. We strive to
understand each customer’s business and needs, whether that customer is a
sophisticated retailer in a developed market a kiosk owner in an emerging market.

There are nearly 6 million people in the world who are potential consumers of our
company’s product. 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.
 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
MANAGEMENT:
The hierarchy of Coca Cola Company is as follows.

MARKET SHARE:
SHARE
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest
market share. This company controls about 59% of the world market.

GLOBAL MARKET SHARE:

The following table can show the worldwide operating segments.

(Table)

Unit case growth Non- All commercial

alcoholic Beverages
drink
10 year 5-year compound 2001 annual 2002 2002
compound annual annual growth growth
growth
Compan Industry Compan Industry Compan Industry Company Compan Compan
y y y share y share y per
capita
Income
6% 5% 5% 5% 4% 4% 18% 9% 70

This shows that the market of the company is geographically vast and it is controlling it
with great success. In 2002, the company grew their carbonated soft-drink business by
nearly 250 million unit cases and generated record volumes. Because carbonated soft
drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage
category measured by volume, that is why they are focusing more on this and they are
continually increasing the pace because they know that accelerating this pace is crucial
to their future success. Thus they are increasing their market day by day. The operation
income earned by Coca Cola Company can be illustrated by the following pie chart.

This strategy has worked a lot and it has helped them to become the World’s leading
Soft Drink Company. The global unit sale of the Coca Cola Company is increasing from
the last ten years. The data of the global unit sale of the Coca Cola Company can be
represented by following chart.

So there is positive growth in the market of the Coca Cola Company. There is a
worldwide volume increase by 4% with strong international growth of 5%. This is only
due to the innovative marketing programmers, which has deepened the relationship of
the customers and Coca Cola. The financial health and success of their bottling partners
is a critical component of The Coca-Cola Company's ability to build and deliver leading
brands.

In 2002, the company had worked with their bottlers to turn good intentions into reality by
improving the system economics. The results in 2002 reflect this steadily improving and
mutually constructive relationship between the Company and their bottling partners. The
main reason behind this relationship is to continue realizing shared opportunities for
growth, with closer coordination of operations including customer relationships, logistics
and production.

MARKET SHARE BY AREA:

Coca Cola is the world-renowned soft drink and the company is currently operating
through out the world. The world wide total is about 17.8 billion.
The operation review according to the segments is as follows.

Operation Review

(2002 worldwide unit case volume by operating segment)

NORTH LATIN EUROPE & ASIA AFRICA

AMERICA AMERICA MIDDLE EAST

30% 25% 22% 17% 6%

NORTH AMERICA

LATIN AMERICA

EUROPE & MIDDLE

EAST
ASIA

AFRICA

So the volume is least in the Africa and most in the North America. The data about the
market share of this company area wise is given in the following table.

The above table shows the geographical earning of the Coca Cola Company and from
this data; we can find out that the customers of Coca Cola are increasing which is shown
by the company’s per capita income. Unit case equals 24 eight-ounce servings. The
column, which shows the non-alcoholic beverages consist of commercially, sold
beverages, as estimated by the Company based on available industry sources. The
country column is derived from

The Company's unit case volume while the industry column includes nonalcoholic ready-
to-drink beverages only, as estimated by the Company based on available industry
sources.

(Table)
Country Unit case growth Non- All commercial
alcoholi Beverages
c
Drinks
10 year 5-year compound 2002 annual 2002 2002
compound annual annual growth growth
growth
Compan Industry Compan Industry Compan Industry Compan Compan Company
y y y y share y share per capita
Income
North 4 5 3 3 2 2 22 15 398
America
United 4 5 3 3 2 2 23 16 419
States
Latin 6 7 6 6 3 4 24 15 205
America
Argentin 7 4 6 2 7 2 20 10 236
a
Brazil 5 5 3 6 3 5 23 13 144
Chile 9 6 5 3 (2) 3 56 23 336
Mexico 7 10 8 9 2 5 22 18 462
Europe 6 3 5 3 2 4 12 6 72
& Middle
East
Eurasia 17 8 6 5 (14) 1 14 5 39
France 8 3 9 3 7 3 9 5 110
German 1 2 (1) 1 (6) 1 14 7 193
y
Great 8 2 11 2 8 3 17 6 193
Britain
Italy 1 3 4 3 2 2 9 6 104
Middle 12 12 7 5 4 8 8 3 17
East
Spain 6 4 8 5 4 4 17 12 264
Asia 7 6 6 7 10 7 14 5 23
Africa 7 6 8 3 10 6 34 11 34

In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2
billion and the average consumer enjoys close to two servings of our products each
month. Through an intense focus on Coca-Cola, innovation and new beverages, the
company has achieved volume growth of 10 percent in 2002. With developing
economies and

populations, this region has strong long-term potential, and the company is building an
exciting family of beverage brands in addition to expanding the popularity of our core
brands, led by Coca-Cola. In China, for example, sales of Coca-Cola increased 6
percent. The total unit case sale of Coca Cola in Asia can be shown by the following pie
chart.

(Figure)
So the company is emphasizing more in this area and is trying to develop a strategy,
which can increase the growth of the consumption of Coca Cola by the people of Asia.
Among the countries of Asia, Japan has the highest percentage, which is about 29%.
Among others, Pakistan, India and Bangladesh are those countries where the average
consumption is increasing day by day.

FINANCIAL REPORT:
This company is financially very strong. It is due to the strong finances, the company is
still surviving the ups and down of the business world. The financial report of Coca Cola
Company of the year 2001 and 2000 along with the percentage change is as follows.

(Table)

Year Ended December 31,

(In millions except per share data, ratios and growth rates)

2008 2007 Percentage

change

Net operating revenues 20,092 19,889 1%

Operating income 5,352 3,691 45%
Net income 3,969 2,177 82%
Net income per share (basic) 1.601 0.882 82%
Net income per share (diluted) 1.601 0.882 82%
Net cash provided by operating activities 4,110 3,585 15%
Business reinvestment (963) (779) 24%
Dividends paid (1,791) (1,685) 6%
Share repurchase activity (277) (133) 108%
Free cash flow 3,147 2,806 12%
Return on capital 26.6% 16.2% -
Return on common equity 38.5% 23.1% -
Unit case sales (in billions)
International operations 12.5 11.9 5%
North America operations 5.3 5.2 2%
Worldwide 17.8 17.1 4%

DIVIDEND AND CASH INVESTMENT PLAN:

The Dividend and Cash Investment Plan permits shareowners of record to reinvest
dividends from Company stock in shares of The Coca-Cola Company. The Plan provides
a convenient, economical and systematic method of acquiring additional shares of our
common stock. All shareowners of record are eligible to participate. Shareowners also
may purchase Company stock through voluntary cash investments of up to $125,000 per
year.
At year-end, 76 percent of the Company's shareowners of record were participants in the
Plan. In 2002, shareowners invested $36 million in dividends and $31 million in cash in
the Plan.

PRODUCTS:
There are different brands of the Coca Cola Company, which are currently in use
through out the world. This company not only deals in the carbonated drinks but also
other drinks. While launching its product, the marketing team considers the culture of the
country.

Major brands of coca cola

• Coke
• Sprite
• Fanta
• Diet coke
• Coke classic
The over all volume of this company is as follows.
(Figure)

The commitment of the company is to devote resources to water only in markets where it
expects profitable growth. This strategy has paid dividends. The company has
successfully applied it’s approach to brands in several key markets, including Ciel in
Mexico, Mori No Mizudayori in Japan, Bonaqua in Russia and Kinley in India. Backed by
a strong network of bottling partners through out the United States, Dasani became the
nation's fastest-growing water brand. In Eurasia, the entire Turkuaz brand team worked
together to launch Turkey's first purified water brand. This year, Coca-Cola Company
also successfully energized a major piece of its beverage strategy—water. By the end of
2001, it’s bottled water volume exceeded 570 million unit cases, making it the second
biggest contributor to the growth of the company after carbonated soft drinks. Three of
the water brands, Dasani, Ciel and Bonaqua each achieved sales of over 100 million unit
cases for the year.

At the same time, the company grew Georgia coffee in Japan by 3 percent through
award-winning marketing in a category that was flat for the year. Also in Japan—where
The Coca-Cola Company is the leader in the total tea category, the second-largest
category in the non-alcoholic ready-to-drink segment—it launched Marocha Green Tea.
With sales of 46 million unit cases for the year, Marocha Green Tea is the fastest-
growing product in the fastest-growing category: green tea. The popularity of Marocha is
also recognized by the industry with a leading trade journal naming Marocha the most
popular new food and beverage product of the year.
 Know the most recognized word on
the planet after “OK”!

Among the soft drinks Fanta and Sprite become successful along with the major brand
Coca Cola and Diet Coke. In key markets, the company has created new packaging
sizes to satisfy consumer demands.

Increasingly, Mexican families have lunch together at home. The average Mexican
household drinks two-and-a-half liters or more of soft drinks during that break, while a
two-liter bottle was the largest available package. So the company introduced a
convenient 2-½ liter bottle to select regions, contributing to the sale of nearly 1.5 billion
unit cases of Coca-Cola in Mexico this year. This larger bottle will complete its
nationwide rollout in 2002. In China, Coca-Cola is an integral part of holiday celebrations
and the family get-togethers that accompany such events. Through an intense focus on
Coca-Cola, innovation and new beverages, it has achieved volume growth of 10 percent
in 2001. In China, sales of Coca-Cola increased by 6 percent. In the United States,
recognizing that consumers often enjoy their diet Coke with a slice of lemon, the
company "bottled" the concept. The result—diet Coke with lemon—contributed to
volume growth of 4 percent for the number-one diet.

Soft drink in North America: diet Coke. The company increased its two largest bottle
sizes during the 2001 holidays, and festival packaging helped drive a 6 percent volume
increase for Coca-Cola. The packaging innovations do not just involve resizing. The
company has also responded to consumers' changing fashion styles with new bottles.

With brands such as Minute Maid, Hi-C, Simply Orange and Disney juices and
juice drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo in Africa.

The commitment of the company to packaging innovation also resulted in new initiatives
for our fountain business, a channel through which many consumers enjoy Coca-Cola. In
the United States, the company developed Fountain, a total beverage dispensing
system that is more flexible and more reliable. Two years of research resulted in a
dispensing system that provides exceptional beverage quality, easy to upgrade
technology, brand and graphic customization and improved reliability.

STRATEGIC PLANNING
In the year 2002, the company had a great success, as the strategy worked which
resulted in making Coca Cola Company the world’s leading company. In 2001, company
accomplished the crust of it’s strategy as

• Worldwide volume increased by 4 percent with strong international growth of 5

percent and clear signs that our North American business is growing solidly and
predictable.
• Earnings per share grew by 82 percent, as we delivered on our commitment to
create volume growth while aggressively
• Return on common equity grew from 23 percent in 2000 to 38 percent this year.
• Return on capital increased from 16 percent in 2000 to 27 percent in 2001.
• The company has generated free cash flow of $3.1 billion, up from $2.8 billion in
2000, a clear indication of its underlying financial strength.

The strategy for the future of the company is very straightforward. The marketing
strategy for the year 2002 is as follows,

• Accelerate carbonated soft-drink growth, led by Coca-Cola.

• Selectively broaden the family of beverage brands to drive profitable growth.
• Grow system profitability and capability together with our bottling partners.
• Serve customers with creativity and consistency to generate growth across all
channels.
• Direct investments to highest potential areas across markets.
• Drive efficiency and cost-effectiveness everywhere.

MAJOR COMPETITOR
PEPSI INTERNATIONAL

HISTORY
PepsiCo is a world leader in convenient foods and beverages, with revenues of about
$27 billion and over 143,000 employees. The company consists of the snack businesses
of Frito-Lay North America and Frito-Lay International; the beverage businesses of
Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages
International; and Quaker Foods North America, manufacturer and marketer of ready-to-
eat cereals and other food products. PepsiCo brands are available in nearly 200
countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively
young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company,
including Gatorade, in 2001.would entertain the listener with the latest musical selections
rendered by violin or piano or both. The new name, “Pepsi Cola”, is derived from the two
of the principle ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At
that time, Bradham’s advertising praises his drink as “Exhilarating, invigorating, aids
digestion”.
approximately 1000 people more on temporary basis during summer season.

Pepsi’s Products

• Pepsi

• Teem

• Mirinda

• Pepsi Max

• Pepsi Lemon

• Pepsi Blue

• Mountain Dew

• 7up

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.)

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.
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.

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.

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

Coca-Cola Ramzan Campaign

A very special occasion for the people of Pakistan Ramzan saw another very special
Coca-Cola’s promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with
a super price-off promotion. The emphasis on enjoying Coca-Cola at “Iftar” with friends &
family.

Coca-Cola Wonder of the World Promotion

In July 2000, Coca-Cola set the stage of the grand UTC promotion. Coca-Cola went
ahead with the idea of giving consumer chances to win fabulous, magical “dream
vacation” to numerous “wonder destination” throughout the world on every purchase of a
250 ml RGB bottle of Coca-Cola, Sprite, & Fanta.The promotion gave consumers a
chance to win free drink, a trip to PARIS, HOLLYWOOD, NEWYORK, SINGAPORE &
CAIRO along with airfare & four nights free stay in these dream lands. The promotion
saw avid consumer collecting Coca-Cola ‘Crown caps’ & sparked a keen response from
the public , rendering an outstanding testimonial campaign in the second phase,
highlighting the winners over whelmed in the magical delight of their favorite beverage
Coca-Cola.

Coca-Cola & Nokia

In August 2001, the new under-the-crown promotion “Nikla Kiya?”(What have u won)
was launched in collaboration with Chimera Nokia.The promotion gave consumer a
chance to win thousand’s of Coca-Cola branded Nokia 3310 cellular phones on every
purchase of 750ml RGB bottle of Coca-Cola ,Sprite, & Fanta.The other highlight of
promotion was the “Caught Red Handed” campaign. Branded Coca-Cola with ‘caught
red handed’ team in them went to Lahore & Karachi for three days, with target that
anyone being caught drinking Coca-Cola will be awarded a nokia 3310 mobile phone & if
someone is caught talking on a nokia mobile will win free supply of Coca-Cola. Caught
red handed become a huge success among the masses as it was one to one interaction
between the Coca-Cola brand & the consumers. This activity helped billed confidence
and brand loyalty among core consumers.
Coca Cola TV Mazza
The coca cola new campaign is coca cola tv mazza, it is a utc scheme in which people
are getting television sets of different sizes. These days this scheme is very popular
among the people.

Coca-Cola & Mc Donald’s

Coca-Cola & key account of MC Donald’s launched the “we go together” joint promotion
to reinstate amongst consumers a real sense of the affinity that, both shares globally.
The promotion kicked off with pos material (Danglers, Bunting etc) displayed at all MC
Donald’s restaurants along with a special offer for coke & fries.

Fanta & Sprite Launched

In November 2000moving on to the Sprite & Fanta brands, the consumers in Pakistan
witnessed a soft launch in essence. The Coca-Cola Company declared the new “Non-
Returnable” bottles of Sprite & Fanta as the “New, On the Go Packs” flaunting the
innovative packaging convenience. Fanta & Sprite are sure to enjoy considerable
success in Pakistan.

Diet Coke
After the acquisition of the individual local franchise bottling facilities in 1996, the
company has successfully launched its first new product, diet coke, for the first time in
almost 3 years. The was linked with three fashion shows as Diet Coke is related to
fashion & fitness, but the major hit was thematic fashion shows in restaurants, which are
the key accounts of the company as this has been never done before in Pakistan.

CONCLUSION

After 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

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 a coke 2 regular bottles at same
time, so providing more satisfaction to them company should introduce ½
liter disposable bottle.

PEST ANALYSIS OF COCA-COLA

There are four variables, which we will discuss in our report, they are:

POLITICAL VARIABLES

Political variables Strongly Some what No Some what Strongly

Effected Effected Effect Effected Effected
++ + +− − −−
Effects of government NE
regulations &
deregulations
Effect of environmental YES
protection laws if any
Import and export NE
regulations
Effect of political NE
conditions in certain
countries of Coke
Any effect of election, YES
military take over,
Revolution at Coke
Conclusion Of 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 coke’s production and selling
behavior.
In the “political variables” most of the things are related to Governmental
activities. So, they don’t 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 Coke’s reputation. And the second thing in political variables which
effects Coke is “elections & military take over” Because in the days of elections
and marshal law’s 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 coke’s industry.

ECONOMICAL VARIABLES

Economical Variables Strongly Some what No Some what Strongly

Effected Effected Effect Effected Effected
++ + + − − −−
Do soaring interest rates YES
make business task any
harder
Any effect due to YES
inflation
Anything done to reduce YES
unemployment
Any effect of 11th NE
September 2001,
incident at Coke in
Pakistan

Conclusion Of Economical Analysis

It could be seen that “economical variables” highly affects the Coke’s 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 country’s production point of view. It also
impacts highly negative in the Coke’s 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 other
wise the impact highly bad.

SOCIAL VARIABLES

Social variables Strongly Some what No Some what Strongly

Effected Effected Effect Effected Effected
++ + +− − −−
Effects of advertisement of YES
Coke on Public popularity
How will do Coke’s YES
contribution affect charity
organizations of Pakistan
Has rising consciousness YES
of natural resources in
people effected your “save
environment activities.

CONCLUSION OF SOCIAL ANALYSIS

EDUCATION
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.

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.
We’re 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. Here’s a sample of what we’re 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).

COMMUNITY INVOLVEMENT:
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 Company’s expense.

TECHNOLOGICAL VARIABLES

Technological Strongly Some what No Some what Strongly

variables Effected Effected Effect Effected Effected
++ + + − − −−
Have business YES
innovations effectively
promoted your
business
Has the government’s YES
regulations ever
hindered in importing
technical equipment
Does Coke help in YES
promoting paperless
environment

Conclusion Of 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 resulted in increment
of their production through out the country.

As far as the “governmental hindrances” are concerned the impacts highly bad on coke’s
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 it’s a big industry
so 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.

OVER ALL RESULTS OF PEST ANANYSIS

After our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited), we
came up with the very interesting report of facts and figures. Coca-Cola is no doubt one
of the most popular beverage company and its product COKE is one of most consumed
cola drink. They spend billion of dollars on their advertisement, promotions and
recreational campaign.

Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough time.
Coca-Cola is a 27% shareholder in the Pakistan market and they don’t want to stop
here!! Its target market is to achieve a much higher %age. Coca-Cola has about 2000
employees at Pakistani plants. Lahore plant of Coca-Cola is one of the beautiful plant in
Asia, Situated on Raiwand Road.

Coca-Cola has always had a close consumer and supplier relationship with its
customers. Its entertaining and colorful advertisements have always and will always rock
the media. Pakistani rock stars, sportmen and actors have played a very vital role in
making Coca-Cola such a popular beverage.

CONCLUSION:
Coca-Cola no doubt come the heart beat of Pakistanis. Coca-Cola is one of the leaders
in sponsoring the most important, thrilling events. E.g. Cricket matches, concerts and
many other social occasions. Event at the present they are organizing a Basant festival
for which they busily organizing stuff.