Coca-Cola Beverages Pakistan Limited

Introduction of the company

It is 123 Years old Company and it has 900 + Bottlers internationally and it has Presence around the Globe. They are Servings 1,000,000,000 per Day and are advertised in over 350 Languages around the world. The Coca-Cola Company is a global business leader with more than 500 brands and 3000+ products. They are present in over 200 countries around the world and Serving over six billion consumers. Coca-Cola sells 1.6 billion drinks a day and employees more than 92,400 people all over the world. Coca-Cola is the world’s No.1 soft drink brand. Four of the top five Brands are owned by the Coca-Cola Company: Coca-Cola, Diet Coke, Sprite, Fanta.

Vision

“To be a total beverage company with market leadership in ready-to-drink segment while adding best in class value for all stakeholders.”

Mission Statement

Coca-Cola Pakistan exists to refresh the consumers, inspire moments of optimism through our brands and actions, as well as benefit all stakeholders, which we will do with highest social responsibility, and with uncompromising commitment towards quality of our products and integrity in our operations.”

Values

• Coca cola value and respect our people

• Coca cola communicate openly

• Coca cola have integrity

• Coca cola committed to winning

• Coca cola is accountable

• Coca cola drive quality and innovation.

Goals and Objectives

To engage Coca-Cola in exploring the viability and options for using their distribution networks in developing countries to distribute ‘social products’ such as oral rehydration salts (ORS) and related educational materials on health, hygiene and sanitation.

To help engage an appropriate international NGO, or NGOs, to partner with Coca-Cola at a global level and local levels on this initiative.

To support Coca-Cola and its partners in modelling different scenarios which combine Coca-Cola’s distribution network with local health initiatives in order to achieve our aims.

To support Coca-Cola and its partners in selecting the most promising scenarios as the basis for field trials.

To support the international NGO, or NGOs, to engage local NGOs and local Health Institutions in order to undertake trials linking this idea with local support infrastructure.

To engage and inform as many people as possible, encouraging them to support this campaign, managing expectations and offers of help and promoting constructive debate.

To help gather and make available appropriate research reports and opinion in this area, and ensure that the group and its supporters are well-informed.

To establish a core group of enablers and activists to lead on the different aspects of this campaign.

Time line

1886 – Coca-Cola invented1923 – Woodruff’s initiatives of Personal Training, Better

Service and Quality Products introduced1929 - Foreign Sales Group formed for global expansion1945 - Coca-Cola established as a global brand1953 - Coca Cola was introduced in Pakistan1960s - Fanta, Sprite, and Tab introduced1970s - Focus on marketing1980s - The Coca Cola system stabilized2006 - CCBPL formed after acquisition of all bottling plants

2008 – Mukhtar Kent assumes role of CEO of TCCC

• Coca-Cola company started its operation in Pakistan in 1953, at Karachi.

• Coca-Cola Export Corporation (TCCEC)

• Coca-Cola was market leader till 1987.

• Till 1996, 10 bottling plants were being managed and run by the local partners under a franchise agreement.

• Based on company’s strict policy on product quality and marketing & distribution standards, it was decided to purchase these bottling plants from the local partners.

• Coca-Cola Beverages Pakistan Limited (CCBPL) 1996 - 2006

Brand /product portfolio

Sparkling Beverages

• Coca-Cola

• Diet Coke

• Sprite

• Sprite Zero

• Sprite 3G

• Fanta Orange

• Fanta Citrus

Juices & Still Water

• Kinley Bottled Drinking Water

Minute Maid Pulpy Orange

• Minute Main Splash Mango

• Minute Maid Splash Apple

Structured problems

The problems that are straightforward, familiar and easily defined are called structured problems.

Programmed decision

Repetitive decision that can be handled by a routine approach .

Example : It is a problem for Coca Cola that how to save cost, for this purpose the policy of Coca Cola to cut short expenses .The Manager gave an example that if an employee going abroad on a company trip, they buy business class ticket if available, if not available they try another route instead of buying club class to cut shot expenses as per the policy.

Unstructured problems

Problems that are new and unusual and for which information is ambiguous or incomplete

Non –programmed decision:

The unique decision that requires a custom made solution

Example :

Generator failure is the non-stuructured problem at Coca Cola, they use custom made solution for this problem. They call electrical companies immediately to repair the generator ,as this problem is unusual and unique so we can say this problem is a non-structured problem having non-programmed decision.

Competitors

Pepsi

Pepsi is a strong competitor of Coca Cola and much successful in Pakistan but still Coca Cola has 63% market share

Other competitors

Shezan Gourmet Cola Shandy

Competitive edge

Quality Availability of product Best services Customer satisfaction

Pressure groups affect

One of the pressure groups effect was that the writing of coca cola logo is against ALLAH and MOHAMMAD. It was the advantage for their competitors but it did not effect on the loyal customers of coca cola.

Managerial Heirarch

Head office of coca cola has six departments i.e managerial department, financial department, human resource management who directly reports to MD Mr. Ahsan Rasheed, who is on top

in the managerial hierarchy of coca cola head office. Mr.mohammad amir whome we interviewed is senior

administration exective and Mr.Jawad ali is H.R manager, and Mr.Usman Azhar Sheikh is Marketing manager in Coca Cola

with whom we met also, he also works on channel and regional development of Coca Cola. Every department has a middle

manager.

MD

HR MANAGERS

FRONT LINE MANAGER

WORKERS

MARKETING MANAGER

FRONT LINE MANAGER

WORKERS

FINANCE MANAGER

FRONT LINE MANAGER

WORKERS

PRODUCTION MANAGER

FRONT LINE MANAGER

WORKERS

QUALLITY MANAGER

FRONT LINE MANAGER

WORKERS

ADMIN MANAGER

FRONT LINE MANAGER

WORKERS

Culture

Coca cola is a corporate multinational bottling company, it is a selling organization. Monitoring and Sales remains continue throughout the year. All the organizational work perform fairly

Coca cola has not outcome orientation , top management evaluates everybody and ask everyone that how he achieve his or her goal

Coca cola encourages team work Based on attention to detail Coca cola do not take huge risk Coca cola prefer market research for Innovation then

launch the product Coca cola prefer competition and aggression among

employees, and award the best employees at the end of each month.

Coca cola prefer stability so much, Coca cola is not like PIA which has lost its stability.

Theories

Scientific management

In Coca Cola each job has its own specification and coca cola hires each individual on the base of job description. They

chose the best way to perform the job and they divide work equally between the management and the workers according

to the scientific management theory. Top management encourages their workers and cooperates with them for the

betterment of the organization.

Administrative management

In coca cola managers have authority to take decisions .All the employees are well disciplined. There is unity of command and discipline .

According to coca cola all the employees are selected according to the procedure and the management trains the new employees for the betterment of the organization.

All the departments of coca cola cooperate with each other for the betterment of the organization. The work is divided equally between the MD and the functional departments.

All the departments of the head office give full interest to the organization over there interest. The line of authority is from MD to departmental heads.

Monthly awards promote team sprit.

Strategies

Marketing Strategy

Coca Cola recreate product and make the product available in the market, they use both pull and push strategy for marketing, they also use consumer marketing in which they us neon boards and commercial adds, their adds are the best adds, which won international award.

They use ATL and BTL.Above the line and below the line activities and attract more people, actually their customers are shopkeepers and the people who buy Coca Cola product are shoper for Coca Cola.

They divide the market in 26 channels, identify the outlet nature of business, identify their shoper.

They are identifying new channel and things by the help of different research companies, they decide that what to do in which channel, level of distribution is different as per channel. They give appetizing message in their adds as in this fast life and competition , one second is require to attract people.Coke studio is sponsored by Coca Cola which is the unique idea to attract youth, in which they emerge different singer to sing, it is the mix music of different musicians. They are also sponsoring cricket in the different stadiums of Lahore , which is to attract more people. We are also using uniliver prome , with two Coco Cola bottles we give one knoor cube, ready to cook, free of cost.

Pricing Strategy

According to Coca Cola market leader is the competition, they do not loose market share , today in Pakistan 60% people call drinks as white bottle and black bottle, but we give the shopkeeper a scheme to push our product, in olden days we use to give our product to people free of cost, but today our pricing strategy is based on skimming but we can not go above our competitors.In Pakistan 2400 trucks of drinks daily visit 250,000 shops to distribute the product.

Swot Analysis

Strengths

Coca Cola has international quality standard Availability of product at any time CSS(customer service system is very flexible According to survey Coca Cola has best services Best brand worth in world wide Promotion is very good Special products for diet conscious people

Weaknesses

Coca Cola has bureaucratic culture Has slow processAs now a days we are in the process of

launching a product against red bull but it is taking much time and we are facing different hurdles

Coca Cola has no MPA and MNA, that’s why we pay a lot of tax to government, others save money in this way and use against us.

Opportunities

Per capita consumption is very low We can attract huge market We can take initiatives

Threats

Load shading is one of the huge threat for us, as in maximum load shading we use generator that consume diesel of Rs 600,000 per day

Political instability Inflation

PEST ANALYSIS

The PEST analysis examines changes in a marketplace caused by Political, Economical, Social and Technological factors.

P: Political change, from one party to another in control- for example the rise in private healthcare and privatisations under Conservative governments.

Political Analysis for Coca-Cola

The following are some of the factors that could cause Coca-Cola company's actual results to differ materially from the expected results described in their underlying company's forward statement:-

Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions.

. Their ability to penetrate developing and emerging markets, which also depends on economic and political conditions, and how well they are able to acquire or form strategic business alliances with local bottlers and make necessary infrastructure enhancements to production facilities, distribution networks, sales equipment and technology.

E: Economic change, for example a recession creating increased activity at the lower ends of product price ranges.

Economic Analysis for Coca-Cola

However, because of aggressive action by the Federal Reserve and Congress it will be short and mild. The economy will return to sustained, positive growth in the first half of 2002.

The Federal Reserve is doing all that it can help the economy recover. They have cut the interest rate ten times this year. The rate now lies at a 40-year low of 2%. Lowering the interest rates will ultimately excite consumer demand in the economy. Companies will expand and increase use of debt as a result of the low borrowing rates. Coca-Cola can borrow money for investing in other products as the interest rates are low. It can use the borrowing on research of new products or technology. As researching for new products would cost less the Coca-Cola Company will sell its products for less and the people will spend as they would get cheap products from Coca-cola.

S: Social change involves changing attitudes and lifestyles. The increasing number of women going out to work, for example, led to the need for time-saving products for the home.

Social Analysis for Coca-Cola

Many citizens are practicing healthier lifestyles. This has affected the non-alcoholic beverage industry in that many are switching to bottled water and diet colas. Also, time management has increased and is at approximately 43% of all households.The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life.

Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. There is a large population of the age range known as the baby boomers. Since many are reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages.

T: Technological change - creates opportunities for new products and product improvements and of course new marketing techniques- the Internet, e-commerce.

Technological Analysis for Coca-Cola

Some factors that cause company's actual results to differ materially from the expected results are as follows:

The effectiveness of company's advertising, marketing and promotional programs. The new technology of internet and television which use special effects for advertising through media. They make some products look attractive. This helps in selling of the products. This advertising makes the product attractive. This technology is being used in media to sell their products. Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier to carry and you can bring them once they are used. As the technology is getting advanced there has been introduction of new machineries all the time. Due to introduction of this machineries the production of the Coca-Cola company has increased tremendously then it was few years ago.

Thank you very much