MARKET ANALYSIS OF COKE PEST, SWOT, MARKET ENVIRONMENT ANALYSIS

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Group Members

1.

2.

3.

Muhammad Ghayas Yousafzai Raja Murad Saqib Muhammad Ali Bhatti

BBA &Bsc –A/F

Background

 Coke was established in 1886 by John S. Pemberton in Columbia, Georgia.

 In 1889 Coca Cola formula and brand was established by Asa Candler who also incorporated Coke in 1892.

 Bottling business began in 1899.  Non-alcoholic beverage concentrates and syrups throughout the world.

Know the most recognized word on planet after ‘OK’

John S. Pembertson Declaration

Type

Manufacturer Founder (s) Country of Origin Introduced Area Served Brands Flavors Employees Servings per Day Website

Coke Profile

Soft Drink (Cola)

The Coca- Cola Company John S. Pemberton United States 1886 Over 200 countries More then 500 Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry.

92,400 1.6 Billion www.coca-cola.com

Coca Cola Pakistan

 Started operating in Pakistan in 1953.

 CCBP (Coca Cola Beverages Pakistan Limited).

 Plants located in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan, Multan and Lahore.

 Two independent plants in Rawalpindi and Peshawar.

 Serves 70,000 customers and retail outlets.

 Employs 1,800 people in Pakistan.

Mission Statement

Mission Statement

 To refresh the world - in mind, body and spirit  To inspire moments of optimism - through our brands and actions  To create value and make a difference everywhere we engage

Vision And Goals

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Maximizing return to shareholders Being a great place to work 3.

Bringing to the world a portfolio of beverage brands 4.

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Nurturing a winning network of partners and building mutual loyalty Being a responsible global citizen that makes a difference Highly effective, and fast-moving organization

What Coke Cares about

??

The Six key Beliefs

 Consumer demand drives everything we do.

 Brand Coca Cola is the core of our business  We will serve consumers a broad selection of the nonalcoholic ready-to –drink beverages.

 To be the best marketers in the world.

 Think and act locally.

 To lead as a model corporate citizen.

Coca Cola Values Values

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Leadership

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Passion

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Integrity

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Accountability

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Innovation

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Quality

Major Products Of Coca Cola

Sprite(1972) Coke (1953) Fanta (1965) Minute Maid And Juices Products Diet Coke (2001) Kinley Drinking Water

PEST Analysis

External environment (Macro) Political Factors

 Government has control over Coke manufacturing activities by setting standards of law  Changes in taxation and environmental laws  Political conditions, civil unrest and restrictions on the ability to transfer capital across borders  Arab nations boycotted Coke’s products due to a political dispute and discontented with the company for maintaining distributors in Israel.

Economic Forces

 Changes in consumer spending habits  Economic crisis makes consumers to cut down their spending  Inflation  Worse economic situation after 9/11

Social

 Culture has a tremendous effect on people’s preferences and perception  Many U.S. citizens are practicing healthier lifestyles.  Language is one of the aspects of culture that marketers must take care of

Technological Forces

 Introduction of new machineries all the time  The new technology of internet and television which use special effects for advertising through media  Speedy delivery –Wakefield factory has technology to produce cans of Coke faster than bullets from a machine gun

External environment (Micro)

External environment (Micro)

Suppliers

 Coke considers its suppliers as a partner in their business.  Extensive training

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to keep good relations and maintain quality product.

 CCBSS(fructose corn syrup)  Nutrasweet and Ajinomoto ( Acesulfame potassium)  Tate and Lyle (Sucralose)

Marketing Intermediaries

 Retailers  Wholesalers  Resellers  To build traffic and strengthen operations.

Customers

 Customer satisfaction is considered as being the most important and vital things in Coke progress.

 Coke dedicates a page on their website for customers

Competitors

 Coke’s main rival is PEPSI  Constantly customers developing new products for its

Muhammad Ali Bhatti

Market Summary

Marketing Mix



Product

 World’s most favorite brand  FMCG distribution pattern  Wide range of soft drinks  Core product , Augmented Product, Actual product

Promotion

 Targeting value based advertising.  Allows price discounts and allowances to distributors and retailers  Push strategy and Pull strategy  Most widely recognized word after "OK".

Channel

PTV home AAG Geo ARY Total

Marketing Budget

TV Budget Timing No. of ads

8am 5

Price/mint

PKR 100,000 9pm 8pm 10pm 9pm 4 4 5 5 23 PKR 132,226 PKR 50,000 PKR 70,000 PKR 400,000 PKR 752,225

News Papers

Newspaper Budget

Size Day Dawn 27x4 Sunday Prices PKR 430,920 The News 27x4 Sunday PKR 1,682,000 Total PKR 2,112,920

Billboards

 Coca-Cola will cover each region with 500 sq. ft  The three different rates of billboards are PKR 40000, 70000 and 125000.

 The total estimated cost of billboard advertisements will come to PKR2,600,000.

Place

 Wide scale distribution.

 Coke sets its own distributions directly to stores Supermarket  Available nationwide and worldwide

Price

 Each sub-brand of Coke has different pricing strategy according to the market and its segments  Pricing is done keeping in view the increasing rivalry with Pepsi  Pricing is basically standard for all over the world

SWOT ANALYSIS

Internal

 Popularity  Well known

Strength Weaknesses

 Word of mouth  Branding recognized obvious and easily  Lack of popularity of many Coca Cola’s brands  A lot of finance  Customer loyalty  Most unknown and rarely seen  International Trade  Result of low profile or non-existent advertising  Holding a large part of world culture for a very long time  Health issues  Brand image, supreme taste quality  No Luxury packing

Threats

External

Opportunities

 Changing health conscious attitude  Legal issues  Health ministers  Competition (Pepsi)  Many successful brands to pursue  Advertise its less popular products  Buy out competition.  More Brand recognition

Marketing Strategy

 To listen to all the voices around the world asking for beverages  to contribute to communities around the world through our commitments to education, health, wellness, and diversity.  Determined to make great drinks

Marketing Objectives

 To increase volume  To Expand worldwide nonalcoholic ready to drink beverages  Improving economic profit  Coke aim is to focus on enhancing value for their customers.

Major Segments

 Demographic Segmentation (Age, Income, Family size)  Behavioral segmentation  Segmentation health wise  Coke segments its market upon their demands

Market Demographics

In Pakistan Coke’s share is only 36%.

 POPULATION (July, 2009 estimated)  CHILDREN (65,607,612)  ADULTS (110,680,572)  CHILDREN EQUITY (14,643,619)  ADULT EQUITY (27,802,960) 

TOTAL TARGET MARKET: 176,242,949 37.2% 62.8% 60% 40% 42,446,579

Market Positioning

 Open happiness – varieties of advertisements and taste  Coke spends lots of money to make a different creative slogan for targeted people  Positioning statement of Coke To all, who wants best drinks to quench their thurst, by providing the best quality and taste in an affordable price.

Raja Murad Saqib

Product Life Cycle of Coke

 Coke is in maturity stage but gradually moving towards the declining stage of the life cycle.  The company must now determine whether they will stop producing Coke, change the soda, seek new markets for the soft drink or if they will maintain their current strategy.

 Coke’s sales have increased by 1.02% compared to last year. This percentage has no comparison to the high level of growth Coke enjoyed during its growth stage.

Brand Development Strategy

 Coke believes in selling out the best products to its customers to retain them with their products.  The company also invested in various advertisement campaigns often engaging the services of celebrities around the globe.

Brand image

 There could be hardly any person around the world that hasn't heard the name Coca Cola ever since it begins as world leading name in cold drinks.

 Millions of people around the world are consuming Coke as part of their daily meal.

 Brand image is the significant factor affecting Coke’s sale.

Strategies Of Getting Goals

Coke’s main strategies are as follows • Volume can be increased • Interest level of consumers • To take part in festivals and events • Diversification • By launching new Flavors

Promotion Strategies

 Getting shelves  Eye Catching Position  Advertisement : Print media Electronic media TV commercial Billboards and holdings

Sales Promotion Activities

              Coca-Cola Cricket Coca-Cola Concerts Coca-Cola Food Mela Coca-Cola Basant Festival Coca-Cola GO-RED Coca-Cola Party in a Park Coca-Cola Shopping Festival Coca-Cola Pet Promotion Coca-Cola Ramzan Campaign Coca-Cola Wonder of the World Promotion Coca Cola TV Mazza Coca-Cola & Mc Donald's Fanta & Sprite Launched Coke Studio

Financial Analysis

Growth Rate in Market Share Geographically

Africa Eurasia European Union Latin America North America Pacific Bottling Investments Worldwide

Unit case Volume

2008 Vs 2009 Growth 10% 5 year Annual Growth 6% 16% 3% 13% 2% 9% (1%) 7% 64% 6% 6% 1% 4% N/A 4%

2010 Vs 2011 Growth rate

Net Op. Revenues 16% 24% 14% Op. Income 6% 38% 16% 24% 11% 7% 53% 20% 22% 1% 3% 75% 15%

Sales Forecast

Sales and Income Data in Millions 2007

$21,742

Net Sales 2008

$23,104

2009

$24,088

2010

$28,857

2011

$31,944

Net Income (Profits) Units sold in Billions

$4,847 19.8

$4,872 $5,080 20.6

21.4

$5,981 $5,807 22.7

23.7

Financial Report

 The financial report of Coca Cola Company of the year 2008 and 2009 along with the percentage change is as follows.  (In millions except per share data, ratios and growth rates)

Net op. revenues Operating income Net income Net income per share Net cash provided by op. activities 2008

31,944 8,446 5,874 1.60

1 4,110

2009

28857 7,252 6,027 0.88

2 3,585

Business reinvestment Dividends paid Share repurchase activity Free cash flow Return on common equity

(963) (1,791) (277) 3,147 38.5% (779) (1,685) (133) 2,806 23.1%

Unit case sales (in billions) International operations

12.5

11.9

North America operations

5.3

5.2

Worldwide

17.8

17.1

%

1% 45% 82% 82% 15% 24% 6% 108% 12% 5% 2% 4%

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