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1.0 Executive Summary

Giant soft drink company Coca Cola has come under intense scrutiny by investors due to its

inability to effectively carry out its marketing program. Consequently it is seeking the help of

Polianitis Marketing Company Pty Ltd to develop a professional marketing plan which will

help the business achieve it‟s objectives more effectively and efficiently, and inevitably

regain there iron fist reign on the soft drink industry.

When establishing a re-birthed marketing plan every aspect of the marketing plan must be

critically examined and thoroughly researched. This consists of examining market research,

auditing business and current situation (situation analysis) and carefully scrutinising the soft

drink industry and possibilities for Coca Cola in the market. Once Coca Cola have carefully

analysed the internal and external business environment and critically examined the industry

in general the most suitable marketing strategies will be selected and these strategies will be

administered by effectively and continually monitoring external threats and opportunities and

revising internal efficiency procedures.

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2.0 Situation Analysis

The founders of Coca Cola have developed their marketing plan using the following format.

2.1 Market Summary The market analysis investigates both the internal and external business environment. It is

vital that Coca cola carefully monitor both the internal and external aspects regarding it‟s

business as both the internal and external environment and their respective influences will be

decisive traits in relation to Coke‟s success and survival in the soft drink industry.

Internal Business Environment

The internal business environment and its influence is that which is to some extent within

the business‟s control. The main attributes in the internal environment include efficiency

in the production process, through management skills and effective communication

channels. To effectively control and monitor the internal business environment, Coke

must conduct continual appraisals of the business‟s operations and readily act upon any

factors, which cause inefficiencies in any phase of the production and consumer process.

External Business Environment

The External business environment and its influences are usually powerful forces that can

affect a whole industry and, in fact, a whole economy. Changes in the external

environment will create opportunities or threats in the market place Coca cola must be

aware off. Fluctuations in the economy, changing customer attitudes and values, and

demographic

Target Market

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.

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2.1.1 Market Demographics Coca Cola Company is the world‟s leading manufacturer, marketer, and distributor of soft

beverages. Coca Cola uses "Multisegment" targeting strategy which means that the company

has more than single, well- defined, market segment. It develops a marketing mix for each of

the segments. Coca Cola has more than 400 different products line, total of 3,500 product

mix.

Geographic Segmentation:

Internationally: Coke segments its products country wise and region wise.

The most important things is the taste and quality.

It varies according to the taste and income level of the people in that country.

I.e.: third world countries are given low quality and taste.

Climatic: In coke marketing, main idea is to serve it cold, so we that they focus on hot areas

of the world.i.e.: middle east etc and their sale increase in summer.

Localy: In pakistan the coke segments more in urban and suburban areas as compare to rural

areas.

Demographic:

Age:. Coke segments the small children introducing tastes like vanilla, lime and cherry. They

focus children from 4-12.

Coke specifically target more young than older.

Family type:. Coke introduces its economy pack and that‟s how the focus family and groups.

Income:. Coke segments different income levels by packing.

For small income people it has small returnable glass bottle.

For middle people it has small non-returnable bottle.

For higher income people it has Coke Tin.

Psychographic:

All psychographics variables the social class, lifestyle, occupation, level of education

and personality Coke segments everyone.

But again it‟s there packaging which is different for different consumers.

Behavioral:

Occasion:. Coca-Cola segments different occasions which are celebrated in the country.

Basant has become an international event identity of the culture of pakistan.

The crdit for making celebrations available for almost everyone largely goes to Coca-

Cola Company.

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Table.1.0 Target Market Forecast

Market Forecast

2014 2015 2016 2017 2018

Activity Number

+

Reve

nue

++

Number Reve

nue

Number Reve

nue

Number Reve

nue

Number Reven

ue

1.Training of

individuals

7,500 at

$ 10,000

11.5 8,000 at

$

10,000

15 8,500 at

$ 10,000

18.5 9,000 at

$ 10,500

22.5 9,500 at

$ 11,000

30

2.Consultancy 100 at $

60,000

3.5 150 at $

60,000

5.5 190 at $

70,000

6.5 240 at $

80,000

8.5 310 at $

90,000

10.5

3.Web-based

learning

program

- - - - 190 at

3,000

0.5 500 at

3,000

0.7 700 at

3,000

0.9

Total 7,600 15 8,150 20.5 8,880 25.5 9,740 31.7 10,510 41.4

+ In mandays

++$ million

Table 1.0 provide target market forecast both in terms of number and revenue for the

major activities envisaged for 2014-18

2.1.2 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.

2.1.3 Market Trends 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‟ behaviour 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”.

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

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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.

2.2 SWOT Analysis The flowing SWOT Analysis captures the key strengths and weaknesses of Coca Cola and

identifies the opportunity and threats.

2.2.1 Strengths The best global brand in the world in terms of value. According to Interbrand, The

Coca Cola Company is the most valued ($77,839 billion) brand in the world.

World‟s largest market share in beverage. Coca Cola holds the largest beverage

market share in the world (about 40%).

Strong marketing and advertising. Coca Cola‟ advertising expenses accounted for

more than $3 billion in 2012 and increased firm‟s sales and brand recognition.

Most extensive beverage distribution channel. Coca Cola serves more than 200

countries and more than 1.7 billion servings a day.

Customer loyalty. The firm enjoys having one of the most loyal consumer groups.

Bargaining power over suppliers. The Coca Cola Company is the largest beverage

producer in the world and exerts significant power over its suppliers to receive the

lowest price available from them.

Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on CSR

programs, such as recycling/packaging, energy conservation/climate change, active

healthy living, water stewardship and many others, which boosts company‟s social

image and result in competitive advantage over competitors.

2.2.2 Weaknesses

Significant focus on carbonated drinks. The business is still focusing on selling

Coke, Fanta, Sprite and other carbonated drinks. This strategy works in short term as

consumption of carbonated drinks will grow in emerging economies but it will prove

weak as the world is fighting obesity and is moving towards consuming healthier food

and drinks.

Undiversified product portfolio. Unlike most company‟s competitors, Coca Cola is

still focusing only on selling beverage, which puts the firm at disadvantage. The

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overall consumption of soft drinks is stagnating and Coca Cola Company will find it

hard to penetrate to other markets (selling food or snacks) when it will have to sustain

current level of growth.

High debt level due to acquisitions. Nearly $8 billion of debt acquired from CCE‟s

acquisition significantly increased Coca Cola's debt level, interest rates and borrowing

costs.

Negative publicity. The firm is often criticized for high water consumption in water

scarce regions and using harmful ingredients to produce its drinks.

Brand failures or many brands with insignificant amount of revenues. Coca Cola

currently sells more than 500 brands but only few of the brands result in more than $1

billion sales. Plus, the firm‟s success of introducing new drinks is weak. Many of its

introduction result in failures, for example, C2 drink.

2.2.3 Opportunities

Bottled water consumption growth. Consumption of bottled water is expected to

grow both in US and the rest of the world.

Increasing demand for healthy food and beverages. Due to many programs to fight

obesity, demand for healthy food and beverages has increased drastically. The Coca

Cola Company has an opportunity to further expand its product range with drinks that

have low amount of sugar and calories.

Growing beverages consumption in emerging markets. Consumption of soft drinks

is still significantly growing in emerging markets, especially BRIC countries, where

Coca Cola could increase and maintain its beverages market share.

Growth through acquisitions. Coca Cola will find it hard to keep current growth

levels and will find it hard to penetrate new markets with its existing product

portfolio. All this can be done more easily through acquiring other companies.

2.2.4 Threats

Changes in consumer tastes. Consumers around the world become more health

conscious and reduce their consumption of carbonated drinks, drinks that have large

amounts of sugar, calories and fat. This is the most serious threat as Coca Cola is

mainly serving carbonated drinks.

Water scarcity. Water is becoming scarcer around the world and increases both in

cost and criticism for Coca Cola over the large amounts of water used in production.

Strong dollar. More than 60% of The Coca Cola Company income is from outside

US. Due to strong dollar performance against other currencies firm‟s overall income

may fall.

Legal requirements to disclose negative information on product labels. Some

Coca Cola‟s carbonated drinks have adverse health consequences. For this reason,

many governments consider to pass legislation that requires disclosing such

information on product labels. Products containing such information may be

perceived negatively and lose its customers.

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Decreasing gross profit and net profit margins. Coca Cola‟s gross profit and net

profit margin was decreasing over the past few years and may continue to decrease

due to higher water and other raw material costs.

Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over

market share in BRIC countries, especially India.

Saturated carbonated drinks market. The business significantly relies on the

carbonated drinks sales, which is a threat for the Coca Cola as the market of

carbonated drinks is not growing or even declining in the world.

2.3 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

2.4 Product/ Service Offering Regulars:

Coke Classic

Vanilla Coke

Cherry Coke

Caffeine free Coke

Fanta

Sprite

Sprite Ice

Sprite Duo

Coca Cola Black

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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

2.5 Key Success Factors 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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2.6 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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3.0 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.

3.1 Mission “Our mission statement is to maximize shareowner value over time”

In order to achieve this mission, they must create value for all the constraints they serve,

including their consumers, their customers, their bottlers, and thir communities. The Coca

Cola Company creates value by executing comprehensive business strategy guided by six key

beliefs:

1. Consumer demand drives everything they do.

2. Brand Coca Cola is the core of their business

3. They will serve consumers a broad selection of the nonalcoholic ready-to–drink

beverages they want to drink throughout the day.

4. They will be the best marketers in the world.

5. They will think and act locally.

6. They will lead as a model corporate citizen.

Everything we do is inspired by their 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.

3.2 Marketing Objectives The objective is the starting point of the marketing plan. Objectives should seek to answer the

question „Where do we want to go?‟. The purposes of objectives include:

to enable a company to control its marketing plan.

to help to motivate individuals and teams to reach a common goal.

to provide an agreed, consistent focus for all functions of an organization.

All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and

Timed.

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Specific – Be precise about what you are going to achieve

Measurable – Quantify you objectives

Achievable – Are you attempting too much?

Realistic – Do you have the resource to make the objective happen (men, money,

machines, materials, minutes)?

Timed – State when you will achieve the objective (within a month? By February 2010?)

1.Market Share Objectives:

To gain 60% of the market for soft drink industry by September 2007.

2.Profitability Objectives:

To achieve a 20% return on capital employed by August 2007

3. Promotional Objectives

To increase awareness of the product on the market.

4. Objectives for Survival

To survive the current market war between competitors.

5. Objectives for Growth

To increase the size of the worldwide Coca Cola enterprise by 10% .

3.3 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 $45,000,000,00 by the end of year 2013. The

sales level for year 2012 was $39,944,000,00.

3.4 Target Market Once the situation analysis is complete, and the marketing objectives determined, attention

turns to the target market. The soft drink market is very large, and the business cannot be “all

things to all people”, so it must choose which market segments have the greatest potential.

The target market is the group of customers on whom the business focuses attention. The

target market is where Coca Cola focuses its marketing efforts as it feels this is where it will

be most productive and successful. The target market for Coca cola is very wide as it satisfy‟s

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.

There are four broad ways which Coca Cola can segment its market:

Mass marketing

Concentrated marketing

Differentiated marketing

Niche marketing

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The most apparent method used by Coca Cola is with no doubt the differentiated marketing

method as Coke satisfy‟s a range of different markets. Diet coke satisfy‟s the weight

consciousness, regular coke, sprite, fanta the average human, coffee, iced tea etc. Each group

of beverages satisfy a particular group of people but majority the average human.

3.5 Positioning Coca Cola Position its products as refreshing and thirst quenching. The product are said to

bring joy, as apparent from Coca Cola's latest tagline - Little drops of Joy. The products are

associated with having a good time with friends and family and enjoying everyday life. The

products are also marketed as consistent and of high quality.

3.6 Strategies 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.

3.7 Marketing Program Coca Cola's marketing Program or Mix is comprised of these following approaches to

pricing, distribution, advertising and promotion, and customer service.

Pricing. Coca Cola's pricing scheme is that the product cost is 45% of the total retail price.

Distribution. Coca Cola's food should be distributed through a take out model where

customers can call in their order plus come to the restaurant to pick it up, come into any

restaurant free coke campaign will enable the , place the take out order as well as wait for it

to be completed, or come in and dine at the restaurant.

Advertising and Promotion. The most successful advertising should be banner ads and inserts

in the Register Guard as well as a PR campaign of informational articles plus reviews in

addition inside the Register Guard.

Customer Service. Obsessive customer attention is the mantra. Coca Cola's philosophy is

that whatever needs to be done to make the customer happy have to occur, even at the

expense of short-term profits. In the long term, this investment should pay off by means of a

fiercely loyal customer base that is extremely vocal to their friends by means of referrals.

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3.8 Marketing Research During the initial phases of the marketing plan development, several focus groups were held

to gain insight into a variety of patrons of drinks. These focus groups provided useful insight

into the decisions, as well as decision making processes, of consumers.

An additional source of souk research that is dynamic is a feedback mechanism based on a

suggestion card system. The suggestion card system has several statements that patrons are

asked to rate in terms of a given scale. There are in addition several open ended questions

that allow the customer to freely offer constructive criticism or praise. Coca Cola's should

work hard to implement reasonable suggestions in order to improve their service offerings as

well as show their commitment to the customer that their suggestions are valued.

The last source of souk research is competitive analysis/appreciation. Coca Cola's should

continually patronize local drinks for two reasons. The first is for competitive analysis,

providing Coca Cola's by means of timely information regarding other drink's service

offering. The second reason is that local trade owners particularly drink owners, are often

part of an informal fraternal organization where they support each other's trade.

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4.0 Financials This section should offer a financial overview of Coca Cola's as it relates to the marketing

activities.

Table 1.2 Income and Operating Forecast ( In million Dollar ) Year

Description 2014 2015 2016 2017 2018

1.0 Income 15.0 20.5 25.5 31.7 41.4

2.0 Operating Expense

2.1 Salary and wages 08.0 11.0 13.0 16.0 19.0

2.2 Library and others

facilities

03.0 04.0 05.0 05.5 07.0

2.3 Utility, transport,

etc.

01.0 01.5 02.0 02.5 04.0

Sub- total 12.0 16.5 20.0 24.0 30.0

Operating Profit 03.0 04.0 05.5 7.7 11.4

Coca Cola plans to invest about $30 million in loan, building furnishing, and other

accessories. This will be funded equally through promoters‟ contribute and loan from two

bank. Initial working capital of $ 1.0 million will be also be provided by the promoters. It will

be registered as a section 25 company.

The income and operating expense expenses forecast is provided in Table 1.2

The operating margin will help in paying the interest and instalment on the loan with a very

small surplus left after depreciation in the initial two year. The founders retain the flexible to

reduce the salary and wages burden, as almost 70% of the budgeted for them.

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5.0 Controls 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.

5.1 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

5.2 Marketing Organization Kevin Lewis, the owner, is primarily responsible for marketing activities. This is in addition

to his other responsibilities, plus does depend on some outside resources for graphic design

work, and creativity.

5.3 Contingency Planning

Difficulties and risks:

Problems generating visibility.

Overly aggressive as well as debilitating actions by competitors.

An entry into the Eugene souk of an already existing, company.

Worst case risks might include:

Determining that the trade cannot support itself on an ongoing basis.

Having to liquidate equipment or intellectual property to cover liabilities.

The concept and product image of Coca Cola should attract 3 dissimilar customer profiles;

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The student -- further and further young people have developed healthy eating and fizzy

drinking habits. Some in addition go through a "health food phase" while in college.

The health conscious person of any age or sex -- this includes anyone on a restricted or

prescribed diet or those who have committed to a healthy diet.

Curious and open-minded -- "if one tries it, one should like it." Through marketing, publicity,

plus word-of-mouth, people should seek out a novel experience and learn that nutritious food

can be tasty, fun, convenient, as well as inexpensive.