marketing assignment.docx

8/11/2019 marketing assignment.docx

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Marketing Theory and Practice

Assignment no 1

Prepared By

Awais Ali Arshad MBT-FA11-157

Prepared By

Feburary 25th2013

Submitted to

Bilal Javed
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PEST analysis

INTRODUCTION:-

PEST analysis is concerned with the environmental influences on a business.The PEST stands for the Political, Economic, Social and Technological issues that could affect

the strategic development of a business.

Identifying PEST influences is a useful way of summarizing the external environment in which a

business works.

Definitions and importance in different perspectives

The constituents of PEST can be considered as macro-environmental factors and its usefulness

lies in the assumption that the success of a particular organisation or management solution

cannot be understood without having the information relevant to the specific businessenvironment (Buchanan and Gibb, 1998).

Business environment could be defined as all relevant physical and social factors outside an

organization that are considered into decision-making process (Duncan, 1972).

According to Ward and Rivani (2005) PEST analysis assumes that specific external and indirect

circumstances that characterize the business environment are able to influence organizational

capacity to produce value. Hence, PEST analysis provides a satellite view to assess the

external environment (Ward and Rivani, 2005).

PEST analysis Use

PEST has been conventionally used in two different ways: first, to analyze the position of a

particular organization (e.g. Vrontis and Vignali, 2001) or industry sector (e.g. McManus et al.,

2007: 19-36) within a particular business environment; second, to analyze the viability of general

management solutions in a business environment (e.g. ESCWA, 2005).

Coca cola

Our Vision

To become a market leader in ready to drink segment while adding best-in-class value to all stakeholders

OurMission

Coca-Cola Pakistan exists to refresh the consumers, inspire moments of optimism through our brands a

actions as well as benefit all stakeholders, which we will do with highest social responsibility and w

uncompromising commitment towards quality of our products and integrity in our operations


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Our Values

Our Core Values underlie everything we do. We live by them for two reasons; they are good and righ

themselves, worthy of adherence even at the risk of loss of profit-making opportunities, and

epitomize our Companys integrity, which we believe will produce value for our stakeholders over

long term.

Accountability We act with high sense of responsibility and hold ourselves acountable.

Passion We put our hearts and mind into what we do.

Integrity We are open, honest, ethical and we trust and respect each other

Teamwork We collaborate for our collective success

POLITICAL FACTORS

POLITICAL FACTORS, ARE HOW AND TO WHAT DEGREE

AGOVERNMENTINTERFERENCE IN HIS ECONOMY. SPECIFICALLY, POLITICAL

FACTORS INCLUDE AREAS SUCH AS

TAX POLICY

Pakistan

Income Tax Rate 20%

Pakistan

Corporate Tax Rate 35%

Pakistan

Sales Tax / VAT Rate 16%

Coca cola hired local resident tax manager to cope up with Pakistani taxation policy.

BASIT AHMAD Tax Manager at Coca-Cola Pakistan & Afghanistan Region Office. Coca cola

increased its prices accordingly to shift burden of taxes.

LABOR LAW

An essential ingredient in every one of our products is our profound commitment to human

rights and workplace rights. Respecting human rights and protecting workplace rights is

fundamental to our culture and imperative for a sustainable business. In our Company and across
http://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Tax_policyhttp://en.wikipedia.org/wiki/Labour_lawhttp://en.wikipedia.org/wiki/Labour_lawhttp://en.wikipedia.org/wiki/Tax_policyhttp://en.wikipedia.org/wiki/Government


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our system, we are working to make sure all people are treated with dignity and respect. .We also

Implement the United Nations Guiding Principles on Business and Human Rights while

following Pakistani rules which are

Factories Act 1934

Punjab Factories Rules 1978

Industrial and Commercial Employment Ordinance 1968

Provincial Employees Social Security Ordinance 1965

Employees Old Age benefits Act 1976

Payment of wages Act 1936

Minimum Wages Ordinance 1961

WP Minimum wages for unskilled worker Ordinance 1969

Worker Children Education Ordinance 1972

Worker Welfare Fund Ordinance 1971 (Benefits Under Law)

Workman Compensation Act 1923

Employment of Children Act 1991

Company Profit (Worker Participation Act 1968)

Industrial Relation Act 2010

West Pakistan Maternity Benefit Ordinance 1958

Bonded labor System (Abolition) Act 1991

An essential ingredient in every one of our products is our profound commitment to human

rights and workplace rights. Respecting human rights and protecting workplace rights is

fundamental to our culture and imperative for a sustainable business. In our Company and acrossour system, we are working to make sure all people are treated with dignity and respect.

But on the other side

Coca-Cola: foul play in Multan by world cup sponsor

Greets new union with death threats, abduction, extortion and dismissals

TRADE RESTRICTIONS

THERE ARE NO TRADE RESTRICTIONS IN PAKISTAN

TARIFFS

1. Here are customs tariffs on import of Waters, including mineral waters and aerated

waters, containing added sugar or other sweetening matter or flavoured, and other

non-alcoholic beverages, not including fruit or vegetable juices,
http://en.wikipedia.org/wiki/Trade_restrictionhttp://en.wikipedia.org/wiki/Tariffshttp://en.wikipedia.org/wiki/Tariffshttp://en.wikipedia.org/wiki/Trade_restriction


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Customs duty = 35%

Sales Tax = 16%

Add Sales Tax = 3%

Income Tax = 5%

In some sort of beverages & drinks you also need to pay

Federal Excise duty = 12% (If retail price is mentioned on Goods)

Or

Federal Excise duty = 40% (If retail price is not mentioned on Goods)

POLITICAL STABILITY

For the first time in history of Pakistan PPP have completed its tenure but now in Baluchistan,

queta , Peshawer and leari are those areas where government is unstable and elections are

expected to be held in Pakistan.

Now there is care take Government in Pakistan. Pakistan inching toward political uncertainty

ECONOMIC FACTORS

Here thecoca cola analyze the economy of Pakistan and know how the

economic factors are influence on company the factors may be include of

Economic growth,

The Gross Domestic Product (GDP) in Pakistan expanded 3.67 percent in the fiscal year 2011-12

from the previous year. GDP Growth Rate in Pakistan is reported by the Pakistan Bureau of

Statistics. Historically, from 1952 until 2012, Pakistan GDP Growth Rate averaged 5.0 Percent

reaching an all time high of 10.2 Percent in the fiscal year of 1953-54 and a record low of -1.8

Percent in the fiscal year of 1951-52. Pakistan is one of the poorest and least developed countries

in Asia. Pakistan has a growing semi-industrialized economy that relies on manufacturing,

agriculture and remittances. Although since 2005 the GDP has been growing an average 5

percent a year, it is not enough to keep up with fast population growth. To make things even

worst, political instability, widespread corruption and lack of law enforcement hamper private

investment and foreign aid.PAKISTAN INTEREST RATE

The benchmark interest rate in Pakistan was last recorded at 9.50 percent. Interest Rate in

Pakistan is reported by the State Bank of Pakistan. Historically, from 1992 until 2013, Pakistan

Interest Rate averaged 12.75 Percent reaching an all time high of 20 Percent in October of 1996

and a record low of 7.50 Percent in November of 2002. In Pakistan, interest rates decisions are
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taken by the State Bank of Pakistan. The official interest rate is the discount rate. This page

includes a chart with historical data for Pakistan Interest Rate .this thing affected

Exchange rates

1 US Dollar equals98.20 Pakistani Rupee

PAKISTAN INFLATION RATE

The inflation rate in Pakistan was recorded at 8.10 percent in January of 2013. Inflation Rate in

Pakistan is reported by the Pakistan Bureau of Statistics. Historically, from 1957 until 2013,

Pakistan Inflation Rate averaged 8.04 Percent reaching an all time high of 37.81 Percent in

December of 1973 and a record low of -10.32 Percent in February of 1959. In Pakistan, most

important categories in the consumer price index are food and non-alcoholic beverages (35

percent of total weight); housing, water, electricity, gas and fuels (29 percent); clothing and

footwear (8 percent) and transport (7 percent). The index also includes furnishings and

household equipment (4 percent), education (4 percent), communication (3 percent) and health (2

percent). The remaining 8 percent is composed by: recreation and culture, restaurants and hotels,

alcoholic beverages and tobacco and other goods and services. This page includes a chart with

historical data for Pakistan Inflation Rate.

Pricing strategy

Pakistan inflation rate is affecting the consumer purchasing power of consumers.

This pricing strategy makes consumers perceive the products to be affordable. They have had theprivilege of a worthy competitor constantly driving them to be smarter, faster, and better. Coca

Cola planned to use the lower price point to penetrate new cities that were especially price

sensitive. The carbonated soft drink market in Pakistan is nearly 57% of the total beverage

market there.

Position support Pricing

Coca Cola has been doing continuous focus on its price related positioned. With the help of

experience of over the years coca cola has finally emerged with the best marketing strategy of its

time and successfully maintained its position as an affordable enjoyment .

Consumer protection

Consumer Rights Commission of Pakistan (CRCP) is a rights-based civil initiative registered

under the Trust Act, 1882. Established in 1998, CRCP is an independent, non-profit, and non-

governmental organization. It largely works through local fund-raising and engaging volunteers.

It is not supported by any industry or commercial sector. It is the first national consumer

organization in the country, which approaches the issue of consumer protection in
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comprehensive and holistic terms. Its vision and strategies have significant cross linkages with

both market practices and issues of governance

Coca cola is following and meeting all international and Pakistani consumer rights.

SOCIOCULTURAL FACTORS.

IN THE SOCIOCULTURAL FACTORS THE COCA COLACOMPANY WILL ANALYZE

THE SOCIAL FACTORS INCLUDE THE

HEALTH CONSCIOUSNESS

RESULTS

A total of 393 patients were surveyed. The majority were young married men, in either private or

government service (Table-I). Respondents preference for consumption or otherwise, of fats and

oils, sweets, spicy foods, salt, fruits and vegetables, tea, coffee, cola drinks and alcohol are listed

(Table-2).

Table-1: Demographic Profile of the Study Population (n=393)

PARAMETER NUMBER (%)

SEX:

Males

Females

254 (65)

139 (35)

Mean Age in Years SD 32.912.13

Marital Status:

Single

Married

Others

(Divorced/widowed)

144 (37)

245 (62)

4 (1.0)

Educational Status:

Illiterate

Primary

Secondary

Matriculation

13 (3.0)

18 (5.0)

38 (10)

65 (16)


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Intermediate

Graduate

Post-graduate

Diploma

102 (26)

117 (30)

35 (9.0)

5 (01)

Occupational status:

Private service

Government service

Self employed

Unemployed

Student

Laborer

Othersincluding

housewives

124 (32)

25 (6.0)

36 (9.0)

12 (3.0)

76 (19)

35 (9)

85 (22)

Table-2: Respondents attitude towardsconsumption of food and drink items (n=393)

Food/Drink ItemPrefer to consume Avoid consumption

Do not

prefer/avoid

Number % Number % Number %

Fats & Oils 103 26 63 16 227 58

Sweets 84 22 72 18 237 60

Spicy food 86 22 56 14 251 64

Salt 110 28 27 7 256 65

Fruits &

vegetables239 61 16 4 138 35

Tea 319 81 70 18 4 1

Coffee 117 30 271 69 5 1

Cola drinks 253 64 134 34 6 2


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Alcohol 13 3 371 94 9 3

Respondents practices with regard to hand washing, brushing of teeth, preventive

dental check-up, duration of sleep, water consumption and eating of fish are listed (Table-

3) Respondents status with regard to chewing of tobacco and betel nuts is listed (Table -4).

DISCUSSION

The demographic profile of the study population shows, that the majority of the

respondents were well educated and better placed socio-economically, then the rest of the

population in general. This is a limitation in the study since the more affluent and better

educated people use the facility.

Table-3: Respondents status of healthy practices (n=393 )


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Table4: Respondents status of chewing tobacco and betel nuts (n=393)

Status of Tobacco/betel nut

chewing

Number %

Tobacco chewing

Yes

No

69

324

17

83

Betel nut chewing

Yes

No

79

314

20

80

Total 393 100

Waris Qidwai, Danish Saleheen, Sadia Saleem, Marie Andrades, Syed Iqbal Azam

Community Health Sciences, Family Medicine Division, The Aga Khan University, Karachi, Pakistan

POPULATION GROWTH RATE,

Population growth rate: 1.551% (2012 est.)

Definition:The average annual percent change in the population, resulting from a surplus (or

deficit) of births over deaths and the balance of migrants entering and leaving a country. The rate

may be positive or negative. The growth rate is a factor in determining how great a burden would

be imposed on a country by the changing needs of its people for infrastructure (e.g., schools,

hospitals, housing, roads), resources (e.g., food, water, electricity), and jobs. Rapid population

growth can be seen as threatening by neighboring countries.

Source:CIA World Factbook - Unless otherwise noted, information in this page is accurate as of

July 26, 2012

Population

190,291,129 (July 2011 est.)
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Age structure

0-14 years: 35.4% (male 34,093,853/female 32,278,462)

15-64 years: 60.4% (male 58,401,016/female 54,671,873)

65 years and over:4.2% (male 3,739,647/female 4,157,870) (2011 est.)

Median age

total: 21.6 years

male: 21.5 years

female:21.6 years (2011 est.)

Population growth rate

1.551% (2011 est.)

Birth rate

24.3 births/1,000 population (2011 est.)

Death rate

6.8 deaths/1,000 population (July 2011 est.)

Net migration rate

-2 migrant(s)/1,000 population (2011 est.)

Urbanization

urban population: 36% of total population (2010)

rate of urbanization:3.1% annual rate of change (2010-15 est.)

Major cities - population

Karachi 13.125 million; Lahore 7.132 million; Faisalabad 2.849 million; Rawalpindi 2.026million; ISLAMABAD (capital) 832,000 (2009)

Sex ratio

at birth: 1.05 male(s)/female

under 15 years: 1.06 male(s)/female


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15-64 years: 1.07 male(s)/female

65 years and over: 0.89 male(s)/female

total population:1.06 male(s)/female (2011 est.)

Infant mortality rate

total: 61.27 deaths/1,000 live births

male: 64.51 deaths/1,000 live births

female:57.88 deaths/1,000 live births (2011 est.)

Life expectancy at birth

total population: 66.35 years

male: 64.52 years

female:68.28 years (2011 est.)

CAREER ATTITUDES


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New expected investment of Coca Cola pakistan

It was an announcement made so quietly that it did not even make the headlines: having

already invested $172 million in Pakistan this past year, The Coca Cola Company one of

the worlds largest beverage companies is planning on investing another $248 million in

the country over the next two years.

It may have something to do with the fact that Pakistanis are estimated to have spentapproximately Rs110 billion ($1.3 billion) on carbonated beverages in 2011, according to an

analysis by The Express Tribunebased on figures compiled from industry sources. Coca Cola

currently enjoys a 30% market share, second only to arch-rival PepsiCo.

We see great potential in Pakistans future, which is why the company is investing significantly

in upgrading infrastructure and adding value to allied industries, said Rizwan Khan, general

manager for The Coca Cola Company in Pakistan and Afghanistan.


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The money will be spent on two new bottling plants, one each in Karachi and Multan, as well as

investing in more coolers, which will be distributed amongst retailers to help with the companys

retail sales efforts. Company officials were quick to point out that the investment is not simply

the recycling of profits and cash flows from existing operations in Pakistan, but green-field

foreign direct investment that will flow into the country over the next two years.

The expansion plans come as rising demand makes it difficult for Coca Cola to keep pace with

its existing production capacity in Karachi and Punjab. The new plants will follow the

establishment of a Coca Cola facility, already completed in 2011, which manufactures Coke

cans. Previously, Coca Cola used to import cans from its factories in other countries.

Coca Cola

Consumers become more health conscious then company lunch new product to

address consumer needs, such as diet coke and coca cola zero.

Workplace Diversity

Diversity is at the heart of our business. We strive to create a work environment that provides all

our associates equal access to information, development and opportunity. By building an

inclusive workplace environment, we seek to leverage our global team of associates, which is

rich in diverse people, talent and ideas. We see diversity as more than just policies and practices.

It is an integral part of who we are as a company, how we operate and how we see our future.

Social responsibility in coca coal

Fahad Qadir, Director Public Affairs, Communications for Pakistan, Afghanistan Region

Coca-Cola

Muhammad Yasir is

Daily Times Business Reporter

Fahad Qadir has been with

Coca-Cola for nearly five years. He leads the ongoing stakeholder engagement with the

government, media, non-governmental organisations (NGOs) and others. He also manages the

corporate and brand personal relation (PR) strategy and Coca-Cola's corporate social

responsibility (CSR) programme.

As a result of his advocacy for socio-economic development of local communities in Pakistan,

Coca-Cola has initiated various projects to support environment conservation, education andrehabilitation of physically challenged.

Qadir is leading key PR projects for Coca-Cola's Eurasia and Africa Group, comprising 92

countries. He is a member of International Government Relations Network of the company and

leads Partners for a New Beginning (PNB) projects in Pakistan.

Prior to Coca-Cola, Qadir worked for Lahore University of Management Sciences and Din

Media Group.


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In honorary capacity, he advises NGOs like Lahore Businessmen Association of Rehabilitation

of Disabled and CARE. He was also a key member of American Business Forum's founding

committee.

Technological:-

Government spending on research

Pakistan spending less than two percent of budget on re

KARACHI (May 24 2007): Pakistan is among 162 countries in the world for contributing less than two percent of the

on research, which is the major reason for deterioration in economics and techn

Research and development expenditure (% of GDP) in Pakistan

The Research and development expenditure (% of GDP) in Pakistan was 0.46 in 2009, according to a W

Bank report, published in 2010. Expenditures for research and development are current and c

expenditures (both public and private) on creative work undertaken systematically to increase know

including knowledge of humanity, culture, and society, and the use of knowledge for new applications. covers basic research, applied research, and experimental development.This page includes a historica

chart, news and forecasts for Research and development expenditure (% of GDP) in Pakistan.

Energy use and cost

Demand for CNG has grown 40% annually, while domestic CNG production has increased only

according to government figures cited in media reports.

The combined output of the Sui northern and southern gas pipeline companies, the countrys only producers, is 1,900 to 2,000 m cubic feet (MMCF) per day while consumption is 2,800 MMCF, said

Arbab, deputy chief engineer of Sui Northern Gas Pipelines Ltd. (SNGPL).

Electricity shortfall

The electricity shortfall in the country has risen to 5,800MWs. According to PEPCO sources, pre

7,500MWs of electricity were being generated while the demand had soared to 13,300MW.

Energy resource of coca cola

Coca-Cola announces participation in MARCON 2012

KARACHI: Coca-Cola Beverages Pakistan Ltd (CCBPL) announced the successful conclusion of

participation in the MARCON 2012 and the expansion of CCBPLs Corporate Social Responsibility (

programmes in Pak

The CCBPL involved in the Resettling The Indus (RTI) project. Zohair Mahmood, Director of CCB


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external affairs, highlighted the importance of the project and the people of Sindh and Punjab whose h

were being rebuilt.

9. Internet!

Pakistan has highest growth rate of internet users in region

With over 20 million internet users in Pakistan, the country now also has 1.79 million broad

users, with an addition of 65,000 in the month of December, 2011 alone. Pakistans growth r

internet users is second highest in SAARC countries in accordance with its population, as it standing a

percent as compared with 28.3 percent of Maldives.

of HFC users is 37, According to the latest stats issued by Pakistan Telecommunication Authority (PTAnumber of DSL subscribers has risen to 792,397, while the number WiMAX internet users has grow

459,790. The number 491 and 7,215 users were recorded as FTTH subscribers in December.

So coca cola is using internet marketing and social sites awareness like on facebook, tweeter etc

References

http://www.defence.pk/forums/social-issues-current-events/69796-coca-cola-pakistans-worker-

exploitation-harassment.html#ixzz2MAioFDvI

http://www.dailytimes.com.pk/default.asp?page=2012%5C03%5C30%5Cstory_30-3-

2012_pg5_10

http://www.viewpointonline.net/fulls...&y=2010&m=july

ww.coca cola Pakistan.com

http://world-politicsreview.blogspot.com/2013/01/pakistan-inches-toward-political.html
http://tribune.com.pk/story/283253/internet-users-in-pakistan-cross-20-million-mark/http://propakistani.pk/2012/03/16/broadband-subscribers-in-pakistan-reach-1-79-million/http://propakistani.pk/2012/03/16/broadband-subscribers-in-pakistan-reach-1-79-million/http://www.defence.pk/forums/social-issues-current-events/69796-coca-cola-pakistans-worker-exploitation-harassment.html#ixzz2MAioFDvIhttp://www.defence.pk/forums/social-issues-current-events/69796-coca-cola-pakistans-worker-exploitation-harassment.html#ixzz2MAioFDvIhttp://www.dailytimes.com.pk/default.asp?page=2012%5C03%5C30%5Cstory_30-3-2012_pg5_10http://www.dailytimes.com.pk/default.asp?page=2012%5C03%5C30%5Cstory_30-3-2012_pg5_10http://www.viewpointonline.net/fullstory.php?t=Coca-Cola:%20foul%20play%20in%20Multan%20by%20world%20cup%20sponsor%20&f=full-15-july-2.php&y=2010&m=julyhttp://world-politicsreview.blogspot.com/2013/01/pakistan-inches-toward-political.htmlhttp://world-politicsreview.blogspot.com/2013/01/pakistan-inches-toward-political.htmlhttp://www.viewpointonline.net/fullstory.php?t=Coca-Cola:%20foul%20play%20in%20Multan%20by%20world%20cup%20sponsor%20&f=full-15-july-2.php&y=2010&m=julyhttp://www.dailytimes.com.pk/default.asp?page=2012%5C03%5C30%5Cstory_30-3-2012_pg5_10http://www.dailytimes.com.pk/default.asp?page=2012%5C03%5C30%5Cstory_30-3-2012_pg5_10http://www.defence.pk/forums/social-issues-current-events/69796-coca-cola-pakistans-worker-exploitation-harassment.html#ixzz2MAioFDvIhttp://www.defence.pk/forums/social-issues-current-events/69796-coca-cola-pakistans-worker-exploitation-harassment.html#ixzz2MAioFDvIhttp://propakistani.pk/2012/03/16/broadband-subscribers-in-pakistan-reach-1-79-million/http://propakistani.pk/2012/03/16/broadband-subscribers-in-pakistan-reach-1-79-million/http://tribune.com.pk/story/283253/internet-users-in-pakistan-cross-20-million-mark/


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http://www.defence.pk/forums/economy-development/5497-pakistan-spending-less-than-two-

percent-budget-research.html#ixzz2M5OFMIzD

http://www.defence.pk/forums/economy-development/5497-pakistan-spending-less-than-two-

percent-budget-research.html#ixzz2M5O73cXr
http://www.defence.pk/forums/economy-development/5497-pakistan-spending-less-than-two-percent-budget-research.html#ixzz2M5OFMIzDhttp://www.defence.pk/forums/economy-development/5497-pakistan-spending-less-than-two-percent-budget-research.html#ixzz2M5OFMIzDhttp://www.defence.pk/forums/economy-development/5497-pakistan-spending-less-than-two-percent-budget-research.html#ixzz2M5O73cXrhttp://www.defence.pk/forums/economy-development/5497-pakistan-spending-less-than-two-percent-budget-research.html#ixzz2M5O73cXrhttp://www.defence.pk/forums/economy-development/5497-pakistan-spending-less-than-two-percent-budget-research.html#ixzz2M5O73cXrhttp://www.defence.pk/forums/economy-development/5497-pakistan-spending-less-than-two-percent-budget-research.html#ixzz2M5O73cXrhttp://www.defence.pk/forums/economy-development/5497-pakistan-spending-less-than-two-percent-budget-research.html#ixzz2M5OFMIzDhttp://www.defence.pk/forums/economy-development/5497-pakistan-spending-less-than-two-percent-budget-research.html#ixzz2M5OFMIzD

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