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Marketing Plan

Presented by:

Abiha Hamid BBA-FA08-025

Noor ul Ain Afzal BBA-FA08-031

Sumaira Hafeez BBA-FA08-034

Zara Ahmed BBA-FA08-039

Iqra Khalid BBA-FA08-067

Presented to:

Ms. Samreen Awais

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ACKNOWLWDGEMENT

First and fore mostly we would like to thank Almighty Allah who blessed us with knowledge,

understanding and ability to do this project.

We have discovered that the work of some unknown persons makes our lives easier every day. 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 teacher Ms. Samreen Awais for her guidance throughout the

semester.

We thank Assistant Manager Coca Cola Faisalabad Division, Mr. Mehboob Sultan, under whose kind

supervision we got our required material. We are also very thankful to the Mr. Muhammad

Nadeem, Head of Division Pepsi Co. Faisalabad.

DEDICATION

This project is dedicated to our parents who have enabled us to stand on our own feet and have

guided us in all matters of life.

May Allah bless them!

Ameen

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TABLE OF CONTENTS

Contents: Page No.

1) Executive Summary 6

2) Introduction 7

3) Situation Analysis 10

a) External 10

i) Customer 10

ii) Competitor Analysis 11

b) Internal 12

i) Company 12

ii) Context 12

4) Market Summary 13

a) Market Growth 13

b) Market Demographics 13

c) Psychographics Segmentation & Market Trends 14

d) Market Needs 14

e) Market Behavior 14

f) Market Share Growth Rate 15

g) Market Growth 16

5) SWOT Analysis 17

a) Strengths 18

b) Weaknesses 19

c) Opportunities 19

d) Threats 19

6) Competition 21

7) Product Offering 22

8) Keys to Success 23

9) Critical Issues 24

10) Marketing Strategy 25

11) Mission 26

12) Marketing Objectives 27

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13) Financial Objectives 28

14) Target Markets 28

15) Stretegies 28

16) Positioning 29

17) Marketing Mix 30

a) Product 30

b) Promotion 30

c) Place 31

d) Price 32

18) Financial Analysis 33

19) Break Even Sales 34

20) Sales Forecast35

21) Implementation& Control 36

22) Recommendations 37

23) Appendixes 38

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1. Executive Summary

We are the students of BBA studies in The University of Faisalabad and we have established this

marketing plan after critically examining and thoroughly researching over it. It consists of examining

market research, auditing situation analysis and carefully scrutinizing the soft drink industry and

possibilities for Coca Cola in the market. We have carefully analyzed the internal and external

business environments and critically examined the industry in general, considering all external

threats and opportunities.

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2. Introduction

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.

Type Soft Drink (Cola)

Manufacturer The Coca- Cola Company

Founder (s) John S. Pemberton

Country of Origin United States

Introduced 1886

Area Served Over 200 countries

Color Caramel E-150d

Flavors Cola, Cola Green Tea, Cola Lemon, Cola Lemon

Lime, Cola Lime, Cola Orange and Cola

Raspberry.

Employees 92,400

Servings per Day 1.6 Billion

Website www.coca-cola.com

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MAJOR PRODUCTS OF COCA COLA INTERNATIONAL

Product Name Image

Coke

Sprite

Fanta

Diet Coke

Minute Maid

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Minute Maid Juices

Kinley Drinking Water

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3. Situation Analysis

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.

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.

In Asian population, which is the satisfied customer of Coca Cola, is approximately 4.2 billion and the

average consumer enjoys close to four servings of our products each month. Through an intense

focus on Coca-Cola, innovation and new beverages, the company has achieved volume growth of 22

percent in 2009.

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.

a) External Factors

i) Customers:

Customer satisfaction is considered as being the most important and vital things in Coca Cola’s

progress.

The company expects to increase volume worldwide by 7 percent with strong international growth

of 8.2 percent by 2010. It focuses on:

Customer Database

Getting new potential customers, side by side retaining old ones.

Giving customers more than just a soft drink.

Brand loyalty.

Marketing is a science, not an art. Give consumers more reasons to sue your product.

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ii) Competitor Analysis:

MAJOR COMPETETOR: PEPSI CO.

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.

Pepsi-Cola beverages are available in more than 190 countries and territories. In Asia, they selected

Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the

operations carried out in South West Asia.

Pepsi Co. has focused on these marketing principles to attain their higher share of market in Asia:

Measuring Satisfaction using various techniques

Increasing customer perceived value (CPV)

Increasing shareholder wealth. The earnings per share are expected to grow to 116 Rs. In

2010.

Maintaining its supply chain management to ensure that the customer gets Pepsi exactly

when he requires.

Mass Marketing via advertising Pepsi with customer attraction areas e.g. celebrities

(Shahrukh Khan, Junaid Jamshed, Adnan Sami), Sports (Cricket), concerts (Haroon etc)

Price Indiscrimination all over the region

Focusing on Brand image

Customer retention schemes such as lucky draw, meeting your favorite celebrity etc

Adding social and ethical benefits to every bottle they sell.

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b) Internal Factors: i) Company:

The Coca Cola Company has always focused on portraying a simple yet strong brand image. Their motto was:

Know the most recognized word on the planet after “OK”!

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.

Major Products (Asia):

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

ii) Context:

Any company can only exceed its sales and profits if it has an excellent marketing strategy and if it is bringing innovation in its resources with every passing day.

The company has generated free cash flow of $14.1 billion, up from $11.8 billion in 2008, a clear indication of its underlying financial strength. This increase is contributed to Coca Cola’s changing marketing strategy. They have focused on increasing sales in Asia as a foremost ingredient since the last few years as coca cola did not have a large market share previously. They have competed well against Pepsi Co. in getting a reasonable market share.

4. Market Summary a) Market Growth:

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According to the 2005 Annual Report, the company sells beverage products in more than 200

countries. The report further states that of the more than 50 billion beverage servings of all types

consumed worldwide every day, beverages bearing the trademarks owned by or licensed to Coca-

Cola account for approximately 1.5 billion. Of these, beverages bearing the trademark "Coca-Cola"

or "Coke" accounted for approximately 78% of the Company's total gallon sales.

Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:

37% in the United States

43% in Mexico, Brazil, Japan and the People's Republic of China

20% spread throughout the rest of the world

In 2010 it was announced that Coca-Cola had become the first brand to top £1 billion in annual UK

grocery sales.

b) Market Demographics:

In Pakistan Coke’s share is only 36%.

POPULATION: 176,242,949 (July, 2009 estimated)

CHILDREN: 37.2% (65,607,612)

ADULTS: 62.8% (110,680,572)

CHILDREN EQUITY: 60% (14,643,619)

ADULT EQUITY: 40% (27,802,960)

TOTAL TARGET MARKET: 42,446,579

Coke targets both genders in Pakistan.

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c) Psychographics Segmentation & Market Trends :

Coke segments different income levels by packaging. Like for people with a low level of income, it

has small returnable glass bottle, for the mediocre class it has non returnable bottle (NRT) and for

people with a high level of income it has Coke tin.

Sometimes, for the promotion strategy of coke, the Coke Company introduces prizes on the top

cover. So they segment people by benefit sought, i.e. by giving them prizes.

Coke will always show activities, where people get together to enjoy moments of togetherness with

our brand. Research analysis 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 all about togetherness.

At times, Coca Cola Intl seeks to promote itself through sponsoring events. Since many years,

Basanat festival has somewhat become “Coke Festival”.

d) Market Needs:

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.

The market needs vary with time and Coke Intl. introduces its products over time e.g. Coke Cherry

etc.

e) Market Behavior:

The behavior of Pakistani market has always been orientated on “WHATS COLD GETS SOLD”. People

normally focus on buying anything that is cold either Pepsi or Coke. The market behavior in Pakistan

has not changed a lot as people are not entirely health conscious but over a few years due to

increasing awareness of obesity, people have adopted an alienated behavior to soft drinks, which is

why Coca Cola Intl. has provided them with the perfect solution i.e. provide a product exactly when

it is needed. Yes, we are talking about Diet Coke; introduced in 2001 to meet the growing market

needs.

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f) Market Share Growth Rate:

Worldwide on global level Coca-Cola is the most popular brand and market leader and carry 60% of

market share.

In Pakistan due to above reasons Coca –cola is the market follower but still in a very strong and

stable position holding 36% of the local market share with a growing and increasing market share

every year.

GROWTH RATE IN MARKET SHARE GEOGRAPHICALLY

Unit Case Volume 2008 vs. 2009 Growth Rate

2008 vs. 2009Growth

5-YearAnnual Growth

Net OperatingRevenues

OperatingIncome

Africa 10% 6% 16% 6%

Eurasia 16% 13% 24% 38%

European Union 3% 2% 14% 16%

Latin America 9% 6% 24% 22%

North America (1%) 1% 11% 1%

Pacific 7% 4% 7% 3%

Bottling Investments 64% N/A 53% 750%

Worldwide 6% 4% 20% 15%

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g) Market Growth:

Coca Cola Company can also identify its expansion through the ANSOFF approach.

Coca Cola in Pakistan is doing market penetration through the selling its products to the

business buyer, who are huge multinational organizations like McDonalds, Subway, Dunkin

Donuts & many more & they are also keeping the local market in focus. Fri Chicks, AFC etc

are examples of the buyers in the local market. They are selling the Coca Cola as the only

beverage in their restaurants.

Market Development is exploring new markets for the products you are already selling.

Many flavors of coca cola are not being sold in Pakistan. Coca cola can develop a new market

if they introduce those flavors in Pakistan.

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5. SWOT Analysis:

 

Strengths Weaknesses

Internal -Popularity

-well known

-branding obvious and

easily recognized

-A lot of finance

-customer loyalty

-International Trade

-Word of mouth

-lack of popularity of many

Coca Cola’s brands

-Most unknown and rarely

seen

-result of low profile or non-

existent advertising

-health issues

 

  Threats Opportunities

External -changing health-

consciousness attitude

-legal issues

-Health ministers

-competition (Pepsi)

-many successful brands to

pursue

-advertise its less popular

products

-buy out competition.

-More Brand recognition

SWOT analysis is a technique much used in much general management as well as marketing

scenarios. SWOT consists of examining the current activities of the organization- its Strengths and

Weakness- and then using this and external research data to set out the Opportunities and Threats

that exist.

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a) Strengths:

Coca-Cola has been holding a large part of world culture for a very long time. Coca cola has focused

on brand image and brand loyalty along with providing supreme taste and quality. The Coca-Cola

image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable

branding is one of Coca-Cola's greatest strengths.

"Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet

powerful symbol of quality and enjoyment" (Allen, 1995).

Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct

business on a global scale while at the same time maintain a local approach. The bottling companies

are locally owned and operated by independent business people who are authorized to sell products

of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network,

its main source of revenue is the sale of concentrate to its bottlers.

In Pakistan, people 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 “WHATS COLD GETS SOLD”

Consumer’s availability in brands is basically works like:

Push availability.

Pull consumer’s demand.

For this reason Coca-Cola Intl has 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.

b) Weaknesses:

Coca-Cola has had some "declines in unit case volumes in the South East Asia due to reduced

consumer purchasing power”.

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Coca-Cola contains caffeine and caramel which can adverse effects on the teeth (if prolonged) which

is an issue for health care. It also has got sugar by which continuous drinking of Coca-Cola may cause

health problems. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-

Cola daily has an effect on your body after few years.

Another weakness which may be considered regionally is its sugar content. Pepsi Co. makes its sales

only because Pepsi is so far, having a larger market share only because it is more sugary and Asian

people focus on sugary drinks.

c) Opportunities:

Brand recognition is an important factor in affecting Coke's competitive position. Coca-Cola's brand

name is known well throughout 94% of the world today. The main concern of Coca Cola Marketing

Strategies has been just to improvise its system and make it even more recognizable. The bottling

system of Coca Cola allows the company to take advantage of its growth opportunities. The coke

team has been working strenuously in Pakistan gaining supporters via Mass marketing and

Promotional tools.

d) Threats:

The main threat is Price. A small increase in price, let’s say just 1 rupee will have a drastic effect on

sales. Only because people will go for the next available substitute i.e. Pepsi so price change is a

major factor in affecting Sales of coca cola and in marginal profits. Coca Cola can face major losses if

it goes for a sudden increase or decrease in price.

Contradiction: Some analysts assume that new competitors can also have an effect on Coke Sales.

But actually, new comers have some what a very less contribution because Soft Drink industry is in

itself a very vast and strong industry. New competitors can never make their way up to Coke’s level

in a even 10 years to come.

A possible threat may be the increasing health awareness. People have recently become more

conscious about health issues. 60% of the world’s population does not drink carbonated drinks (due

to poverty and /or health issues).

Another threat is the increasing rivalry between Pepsi and Coke. This has somewhat changed

customer perceived value and now both competitors have to respond to an ever increasing demand

and attributes of consumers.

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6. Competition

The major competition faced by Coca Cola International is Pepsi Co. 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.

Major Pepsi Co. products include:

Pepsi

Teem

Mirinda

Pepsi Max

Pepsi Lemon

Pepsi Blue

Mountain Dew

7up

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7. Product Offering

Regulars:

Coke Classic Vanilla Coke Cherry Coke Caffeine free Coke Fanta Sprite Sprite Ice Sprite Duo Coca Cola Black Limca Caffeine free Diet Coke Diet Cherry Coke Diet Coke with Lemon Diet Vanilla Coke

Sports Drinks:

PowerAde Nestea Aquarius Vitamin Energy

Juices/Water:

Minute Maid Maaza Kinley

Energy Drinks:

Full Throttle Barq’s Tab Burn

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8. Keys to Success

Coca Cola marketing team focuses not only on the results as well as the tasks assigned.

They firmly believe if you want to establish a clear image in the minds of consumers,

you first need a clear image in your own mind.

Since the major competitor is Pepsi Co. so Coca Cola Intl has focused on neutralizing

the competition.

Kill the category: If Pepsi Co. launched Crystal Pepsi then Coca Cola Intl launched Diet

Coke.

The Coca Cola marketing team maintained their focus strongly on the product itself.

When they changed bottle shape, many people started buying bottles instead of the

drink itself

The Coca Cola team learnt from everything. Even if a customer said “no”, they focused

on “why” did he say no and then found out ways on “how” to solve that issue.

Formula for positioning success :

Define

Over deliver

Claim

Succeed

They specified the criteria for each product offered because if you don’t specify the

criteria for choosing, consumers will develop their own, which is dangerous.

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9. Critical Issues

A common criticism of Coke based on its allegedly toxic acidity levels has been found to be baseless

by researchers; lawsuits based on these notions have been dismissed by several American courts for

this reason. Although numerous court cases have been filed against The Coca-Cola Company since

the 1920s, alleging that the acidity of the drink is dangerous, no evidence corroborating this claim

has been found. Under normal conditions, scientific evidence indicates Coca-Cola's acidity causes no

immediate harm.

Coca-Cola has been criticized for alleged adverse health effects, its aggressive marketing to children

exploitative labor practices, high levels of pesticides in its products, building plants in Nazi

Germany which employed slave labor, environmental destruction, monopolistic business practices,

and hiring paramilitary units to murder trade union leaders. In October 2009, in an effort to improve

their image, Coca-Cola partnered with the American Academy of Family Physicians, providing a

$500,000 grant to help promote healthy-lifestyle education; the partnership spawned sharp criticism

of both Coca-Cola and the AAFP by physicians and nutritionists.

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10. Marketing Strategy

Our local marketing strategy enables Coke to listen to all the voices around the world asking for

beverages that can 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.

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11. Mission

“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 throughout 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.

Everything we do is inspired by our enduring Mission:

To Refresh the World...in body, mind, and spirit.

To Inspire Moments of Optimism...through our brands and our actions.

To Create Value and Make a Difference...everywhere we engage.

7.

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12. Marketing Objectives

The ultimate objectives of our business strategy are:

To increase volume

Expand our share of worldwide nonalcoholic ready to drink beverages sale

Maximize our long-term cash flows

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.

Aims:

People: Being a great place to work where people are inspired to be the best they can

be.

Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate

and satisfy people's desires and needs.

Partners: Nurturing a winning network of customers and suppliers, together we create

mutual, enduring value.

Planet: Being a responsible citizen that makes a difference by helping build and support

sustainable communities.

Profit: Maximizing long-term return to shareowners while being mindful of our overall

responsibilities.

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13. Financial Objectives

All Coca Cola Intl. plants setup their own goal to achieve the objective.

The company goal is:

“To increase sales volume and gain market leadership in Lahore.”

The company aims to achieve sales level of $35,000,000,00 by the end of year 2010. The sales level for year 2009 was $31,944,000,00.

14. Target Markets

The target market for Coca cola is very wide as it satisfies the needs for many different consumers,

ranging from the healthy diet consciousness through Diet Coke to the average human through its

best selling drink regular Coke. Most Coke products satisfy all age groups as it is proven that most

people of different age groups consume the Coca Cola product. This market is relatively large and is

open to both genders, thereby allowing greater product diversification.

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.

15. Strategy

The strategy for the future of the company is very straightforward. The marketing strategy for the

year 2010 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.

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16. Positioning

Product Range:

The total range of Coca Cola Intl. in Pakistan includes:

► Coke.

► Sprite.

► Fanta.

► Diet Coke.

Bottle Sizes:

The company offers their products in different bottle sizes which include:

SSRB Standard Size Returnable Bottle

LRB Litter Returnable Bottle

NRB No Return Bottle or Disposable Bottle

PET 1.5 Liter Plastic Bottle

CANS Tin Pack 330 ml

Packing:

Coca cola products are available in different packaging:

24 Regular Bottle Shell.

6 Bottle Pack for 1.5 PETs.

12 Bottles in a pack for Disposable Bottle.

24 Cans in one crate.

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17. Marketing Mix

The marketing mix is probably the most crucial stage of the marketing planning process. The

marketing mix refers to the combination of the four factors (price, promotion, product, and place)

that make up the core of a business’s marketing strategy.

a) Product:

Businesses must think about products on three different levels, which are the core product, the

actual product and the augmented product. The core product is what the consumer is actually

buying and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The

actual product is the parts and features, which deliver the core product. Consumers will buy the

coke product because of the high standards and high quality of the Coca Cola products. The

augmented product is the extra consumer benefits and services provided to customers. Since soft

drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a help line

and complaint phone service for customers who are not satisfied with the product or wish to give

feedback on the products.

b) Promotion:

Over the time Coca Cola has spent millions of dollars developing and promoting their brand name,

resulting in worldwide recognition. 'Coca-Cola' is the most recognized trademark, recognized by 94%

of the world's population and is the most widely recognized word after "OK". Coca Cola’s red and

white colors and special writing are all examples of world-wide trademarks.

There are a number of branding strategies:

Generic brand strategy

Individual brand strategy

Family brand strategy

Manufacturer’s brand strategy

Private brand strategy

Hybrid brand strategy

Coca Cola utilizes the Individual brand strategy as Coca Cola’s major products are given their own

brand names e.g. Fanta, Sprite, Coca Cola etc although they may be presented as different lines they

operate under the name of Coca Cola.

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c) Place:

The Coca Cola Company has always focused wide scale distribution. This is the reason, 94% of the

world’s population knows about Coke. “Coca Cola” is the most recognized word after OK.

Coca Cola sets its own distributions directly to stores. Stores include a wide variety of Supermarket,

Marts, Convenience Stores, Retail Stores and Departmental Stores. The channel distribution of Coca

Cola Intl is extremely large.

Over time, they have produced many products and thus have increased number of warehouses for

specific products.

Coca Cola Intl has also improved services via setting up a national service network.

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d) Price

Since Coca Cola Intl faces a major threat from its competitor Pepsi Co., so naturally the Pricing is

done keeping in view the increasing rivalry with Pepsi. Pricing is basically standard for all over the

world. Price changes occur seldom after a longer period of time say, a year etc. Mostly prices are

devoid of governmental and/or political laws and regulations but in Pakistan, due to an ever

increasing rate of Inflation, prices have increased in a short span of time.

JO CHAHO HO JAYE,

COCA COLA ENJOY!!!

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18. Financial AnalysisFinancial Analysis

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 2008 and 2009 along with the percentage change is as follows.

Year Ended December 31,

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

2009 2008 Δ%

Net operating revenues 31,944 28857 1%Operating income 8,446 7,252 45%Net income 5,874 6,027 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%

2008 basic and diluted net income per share included a non-cash gain of $.02 per share after taxes, which was recognized on the issuance of stock by Coca-Cola Enterprises Inc., one of the equity investors of this company.

2009 basic and diluted net income per share includes the following charges:

$.24 per share after income taxes related to an organizational Realignment. $.19 per share after income taxes related to the Company's portion of charges recorded by

the investors of the company. $.16 per share after income taxes related to the impairment of certain bottling,

manufacturing and intangible assets. $.05 per share after income taxes related to the settlement terms of a discrimination

lawsuit.

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19. Break Even

Break Even is calculated as follows:

Break Even = Total ¿Cost ¿

(1−TotalVariableCosts

Total Sales)

For Coca Cola Intl. the break even calculated for the Year 2009 was:

Break Even = $11,088,000,00

Source: http://www.thecoca-colacompany.com/ourcompany/company_reports.html

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20. Sales Forecast

Sales and Income Data in Millions

2005 2006 2007 2008 2009

Net Sales $21,742 $23,104 $24,088 $28,857 $31,944

Net Income (Profits)

$4,847 $4,872 $5,080 $5,981 $5,807

Units sold in Billions

19.8 20.6 21.4 22.7 23.7

2005 2006 2007 2008 20090

5

10

15

20

25

30

35

20.723.1

24.8

28.8

31.9

Unit Sale in Billions

Unit sale in Billions

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21- Implementation & Control

Implementation:

Currently, Coca Cola Intl. issuing the following techniques to increase shareholders wealth,

maximize customer satisfaction and satisfy the market:

Value Positioning

Value Pricing

Promotional Pricing

Differentiation

o Image

o Product

o Channel Personnel

Market Strategy

o Niche Marketing

o Mass Marketing

Control:

Coca Cola Intl. has controlled sales via:

Geographic Market Organization

Opening plant in various countries (in Pakistan they have 10 plants) so as to reduce taxes.

They have invested $5.6 million in their R&D facility to maintain Product Quality Control.

Their primary concern right now is penetrating into the Pakistani market via strong

attacking techniques whereby maintaining defense strategy against Pepsi Co.

The overall strategic control is implemented in all plants and factories throughout the 200

countries which Coca Cola proudly serves.

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21. Recommendations

After completing our project we have come up with following recommendations for the Coca

Cola Company, which are following:

Currently in Pakistan there are only two flavor of Coke available, company can extend their

portfolio by introducing new flavors.

According to the survey conducted by an international firm Pakistani people like less sweet

cola drink. So the Coca-Cola Company should think about bringing innovations in their

products for example new diet flavors or maybe more juices so as to fulfill the need of local

market.

Marketing team should try to increase the availability of Coke in rural areas.

Coca Cola Company should think about producing Coke Can locally. Because currently coke

Cans are only smuggled from abroad and sold at high prices. The Coca Cola Company can

capitalize on this factor.

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22. Appendixes

www.cocacola.com www.thecocacolacompany.com www.wikipedia.com Principles of Marketing by Philip Kotler Strategic Marketing by David W. Cravens Local Newspapers: Dawn, The Nation and The News International Herald Tribune Newspaper The Nikkei Weekly magazine, Japan (Winter, 2009)

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