Marketing Management Project on Coca Cola-libre

8/10/2019 Marketing Management Project on Coca Cola-libre

1/38

ACKNOWLEDGEMENT

I am very grateful to Allah who blessed me the strength and courageto stand by the difficulties that came in the way and who enabled me

to complete this project effectively.

As plants cannot grow without seeds, birds cannot fly without wings.Similarly knowledge cannot be attained without proper direction andsupervision. We are, therefore, also thankful to our respected teacherMr. Haneef Shehzad, because of whose generous co-operation andhelp, the accomplishment of this Project became possible. I reallythankful to Mr.Haneef Shehzad & IIUI).


2/38

Executive Summary

This project is about to study any one of companies and one of that companys

product according to marketing management perspective. In this project I have

studied the different techniques of marketing that are used by company, from

identifying the needs wants and demands of their product among the people, and

how company developed the customer oriented marketing strategies, that are how

they have done segmentation ,target marketing and positioning of their product.

The strategies of 4ps of marketing by that company on the product and

strategies of maintaining profitable and long term relationship with their potential

customers.

I studied the strategies of social responsibility by the company, how company

promotes the product with in the targeted customers and common people by

promoting the interest of their potential customers.

At the end I have studied the swot and pest analysis of the company and

conclusion and recommendations.


3/38

Table of Contents

Chapter #1 ..................................................................................................................................................... 6

Introduction .................................................................................................................................................. 6

& .................................................................................................................................................................... 6

History ........................................................................................................................................................... 6

Introduction:- ................................................................................................................................................ 1

History:- ......................................................................................................................................................... 1

Mission, Vision & Values:- ............................................................................................................................. 1

Chapter #2 ..................................................................................................................................................... 3

THE MARKETING PROCESS ............................................................................................................................ 3

Need, Want and Demand:- ........................................................................................................................... 3

Customer Driven Market Strategy:- .............................................................................................................. 4Market Segmentation:- ............................................................................................................................. 4

Regional segmentation: ........................................................................................................................ 4

Size ........................................................................................................................................................ 4

Population density ................................................................................................................................ 4

Climate .................................................................................................................................................. 4

Demographic ......................................................................................................................................... 4

Target Market ........................................................................................................................................... 4

Positioning:- .............................................................................................................................................. 5

Product .......................................................................................................................................................... 5

Price .......................................................................................................................................................... 6

Pricing Strategies and Tactics.................................................................................................................... 6

Place and Distribution ............................................................................................................................... 7

Promotion ................................................................................................................................................. 8

Customer Relationship management:- ......................................................................................................... 9

Building a customer-focused website ....................................................................................................... 9My SAP Customer Relationship Management ........................................................................................ 10

My SAP Supply Chain Management ........................................................................................................ 10

Partnership relation management .......................................................................................................... 10

Coca-cola and SAP Partnership ............................................................................................................... 11

Capturing value customers in return (Market share, Customers loyalty):- ................................................ 11
http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066142http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066142


4/38

MARKET SHARE ....................................................................................................................................... 11

MARKET SHARE BY AREA ........................................................................................................................ 11

CHAPTER #3................................................................................................................................................. 16

SOCIAL RESPONSIBILITY .............................................................................................................................. 16

SOCIAL RESPONSIBILITY .............................................................................................................................. 16

Corporate social responsibility ................................................................................................................... 16

Health and Wellbeing ............................................................................................................................. 16

A Fair and Ethical Workplace .................................................................................................................. 17

CHAPTER #4................................................................................................................................................. 18

Swot & ......................................................................................................................................................... 18

Pest analysis ................................................................................................................................................ 18

SWOT ANALYSIS:- ........................................................................................................................................ 18STRENGTH ............................................................................................................................................... 18

WEAKNESS .............................................................................................................................................. 18

OPPORTUNITIES ...................................................................................................................................... 19

THREATS .................................................................................................................................................. 19

PEST ANALYSIS OF COCA-COLA ................................................................................................................... 20

POLITICAL VARIABLES ............................................................................................................................. 20

Conclusion of Political Analysis ............................................................................................................... 21

ECONOMICAL VARIABLES ....................................................................................................................... 21

Conclusion of Economical Analysis ......................................................................................................... 22

SOCIAL VARIABLES .................................................................................................................................. 23

CONCLUSION OF SOCIAL ANALYSIS ........................................................................................................ 23

EDUCATION ............................................................................................................................................. 23

ENVIRONMENT ....................................................................................................................................... 23

COMMUNITY INVOLVEMENT .................................................................................................................. 24

TECHNOLOGICAL VARIABLES .................................................................................................................. 24Conclusion of Technological Analysis ..................................................................................................... 25

CHAPTER#5 ................................................................................................................................................. 27

CONCLUSION & .......................................................................................................................................... 27

RECOMMENDATIONS ................................................................................................................................. 27

RECOMMENDATIONS ................................................................................................................................. 27
http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066168http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066169http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066174http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066175http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066194http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066195http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066195http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066194http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066175http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066174http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066169http://c/Documents%20and%20Settings/Faisal%20Mehmood%20Anjum/My%20Documents/Google%20Talk%20Received%20Files/waqar.docx%23_Toc250066168


5/38

Reference .................................................................................................................................................... 28


6/38

Chapter #1

Introduction

&

History


7/38

Introduction:-

The Coca-Cola Company is the world's largest number 1 beverage company, largest

manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in theworld, and one of the largest corporations in the United States. The company is best known for

its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-

Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola

Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly

400 brands in over 200 countries or territories and serves 1.5 billion servings each day.

The company operates a franchised distribution system dating back to 1889 where The Coca-

Cola Company only produces syrup concentrate which is then sold to various bottlers throughout

the world who hold an exclusive territory.

The Coca-Cola Company is headquartered in Atlanta, Georgia. Its current president and CEO is

Muhtar Kent.

History:-

The Coca-Cola Company was originally established as the J. S. Pemberton Medicine Company,

a co-partnership between Dr. John Stith Pemberton and Ed Holland. The company was formed to

sell three main products: Pemberton's French Wine of Cola (later known as Coca-Cola),

Pemberton's Indian Queen Hair Dye, and Pemberton's Globe Flower Cough Syrup.

Finally in October of 1888, the company received a charter with an authorized capital of

$50,000. The charter became official on January 15, 1889. By this time, the company had

expanded their offerings to include Pemberton's Orange and Lemon Elixir.

Mission, Vision & Values:-Our mission, vision and values outline who we are, what we seek to achieve, and how we want

to achieve it. They


8/38

Provide a clear direction for our Company and help ensure that we are all working toward the

same goals.

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 .

To achieve sustainable growth, we have established a Vision with clear goals:

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

be.

Planet: Being a responsible global citizen that makes a difference.

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

satisfy peoples' desires and needs.

Partners: Nurturing a winning network of partners and building mutual loyalty.

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

responsibilities.

We are guided by shared Values that we will live by as a company and as individuals:

Leadership: The courage to shape a better future Passion: Committed in heart and mind Integrity: Be real Accountability: If it is to be, it's up to me Collaboration: Leverage collective genius Innovation: Seek, imagine, create, delight

Quality: What we do, we do well


9/38

Chapter #2

THE MARKETING PROCESS


10/38

Need, Want and Demand:-The coca-cola company at the beginning sells medicine,

when they analyze the need of the customer toward soft drink,

in that Era when they identify that soft drink is also the want

and demand of people, then they decided to come into soft

drink business, the medicine that they are selling change there

name i.e. Pemberton's French Wine of Cola (later known as

Coca- Cola)

The demand is unprecedented, and we see it every day in our

sales numbers. But it's not especially surprising, as consumers

become aware of the role of calories consumed and calories

burned in the obesity equation.

Now a day major Customers Needs are:

First of all the majority dont care that what they are going to have. In other words, they dont

care before drinking that whether it is Pepsi or coke. They dont actually differentiate

between these two brands in order to their tastes.

Consumers basically drink what they get.

They believe on WHAT COLD THEY SOLD

Consumers availability in brands is basically works like:

Push availability

Pull consumers demand.

For this reason Coca-Cola have 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 chilled coke to their customer, which they want to be purchase.


11/38

4

Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to

check that either it is in proper condition or not, if not then they immediately change or repair it.

Customer Driven Market Strategy:-

Market Segmentation:-

Regional segmentation: By continent, State,

Country or Neighbor hood.

Regional offices

Regions or province or cities

Size: Segmentation according to size of population.

Population

Target market population

Population density: Often classified as urban or rural.

Climate: Segmentation according to weather condition.

Demographic: Segmentation according to age, gender, family size.

Target Market:-

Cokes 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 andenergy but they also consider about the old people they take then as a co-target market.


12/38

Positioning:-

Once a business has decided which segments

of the market it will compete in, developed a clear picture of

its target market and defined its product, the positioningstrategy can be developed. Positioning is the process of

creating, the image the product holds in the mind of

consumers, relative to competing products. Coca Cola and

Franklins both make soft drinks; although Franklins may try to

compete they will still be seen as down market from Coca

Cola.

Positioning helps customers understand what is unique about the products when compared with

the competition. Coca Cola plan to further create positions that will give their products the

greatest advantage in their target markets. Coca Cola has been positioned based on the process of

positioning by direct comparison and have positioned their products to benefit their target

market. Most people create an image of a product by comparing it to another product, thus

evident through the famous battles between Coca-Cola and Pepsi products.

Prepare the marketing program that delivers superior value (4 P, s):-

Product :

Many Products are physical objects that you can own

and take home. But the word product means much more than

just physical goods. In marketing, product also refers to services,such as holidays or a movie, where you enjoy the benefits

without owning the result of the service.

Businesses must think about products on three

different levels, which are the core product, the actual product


13/38

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.

Price :

Price is a very important part of the marketing mix as it can affect both the supply and

demand for Coca Cola. The price of Coca Colas products is one of the most important factors in

a customers decision to buy. Price will often be the difference that will push a customer to buy

our product over another, as long as most things are fairly similar. For this reason pricing

policies need to be designed with consumers and external influences in mind, in order to

effectively achieve a stable balance between sales and covering the production costs.

Price strategies are important to Coca Cola because the price determines the amount of

sales and profit per unit sold. Businesses have to set a price that is attractive to their customers

and provides the business with a good level of profit. Long before a sale was ever made Coca

Cola had developed a forecast of consumer demand at different prices which inevitablydetermined whether or not the product came on the market, as well as the allocation of adequate

money and resources to produce promote and distribute the product.

Pricing Strategies and Tactics:-

The pricing Strategy a business will use will have to focus

on achieving the marketing plans objectives and support the positioning of the product, and take

external factors such as economic conditions and competitors in to account. There are 5strategies available to business: Market skimming pricing, Penetration pricing, Loss leaders,

Price Points and Discounts. Over the years Coca Cola has used Penetration Pricing as a way of

grabbing a foothold in the market and won a market share. Its product penetrated the

marketplace. Once customer loyalty is established as seen with Coca Cola it is then able to


14/38

slowly raise the price of its product. There has been a fierce pricing rivalry between Coca Cola

and Pepsi products as each company competes for customer recognition and satisfaction. Till

now it appears as if Coke has come up on top, although in order to gain long term profits Coke

had to sacrifice short term profits where in some cases it either went under of just broke even,

but as seen it has been all for the best.

Place and Distribution:-

The place P of the marketing mix refers to distribution of the

product- the ways of getting the product to the market. The distribution of products starts with

the producer and ends with the consumer.

One key element of the Place/Distribution aspect is the

respective distribution channels that Coca Cola has elected

to transport and sells its product.

Selecting the most appropriate distribution channel is

important, as the choice will determine sales levels and costs. The choice for a distributionchannel for any business depends on numerous factors, these include:

How far away the customers are;

The type of product being transported;

The lead times required; and;

The costs associated with transport;

There are four types of distribution strategies that Coca Cola could have chosen from, these are:

intensive, selective, exclusive and direct distribution. It is apparent from the popularity of theCoca Colas product on the market that the business in the past used the method of intensive

distribution as the product is available at every possible outlet. From supermarkets to service

stations to your local corner shop, anywhere you go you will find the Coca Cola products.


15/38

Promotion:-

In todays competitive environment, having the

right product at the right place in the right place at the right

time may still not be enough to be successful. Effective

communication with the target market is essential for the

success of the product and business. Promotion is the p of the

marketing mix designed to inform the marketplace about who

you are, how good your product is and where they can buy it.

Promotion is also used to persuade the customers to try a new

product, or buy more of an old product.

The promotional mix is the combination of personal selling, advertising, sales promotion

and public relations that it uses in its marketing plan. Above the line promotions refers to

mainstream media: Advertising through common media such as television, radio, transport, and

billboards and in newspapers and magazines. Because most of the target is most likely to be

exposed to media such as television, radio and magazines, Coca Cola has used this as the main

form of promotion for extensive range of products. Although advertising is usually very

expensive, it is the most effective way ofreminding and exposing potential customers to

Coca Cola Products. Coca Cola also utilizes

below the line promotions such as contests,

coupons, and free samples. These activities are

an effective way of getting people to give your

product a go.


16/38

Develop Relationship with the customer (CRM + PRM):-

Customer Relationship management:-

Serving business and consumer customers

Yet, to truly take advantage of the Coca-Cola Freestyle, the company felt it needed a new portal

for its end customers. Customers, for Coca-Cola, mean the end consumers and distributors and

small store owners. Small businesses that have traditionally relied on hand-written invoices and

phone ordering will be able to log into a self-service website and do their ordering from there.

"This will reduce write-offs and collection costs," Condra said, noting that it would help

eliminate many of the write-offs associated with the hand-written invoices.

The site will also offer suggestions on what needs to be ordered, based on past consumption.

"For customers, its driving profitability; now it's truly a partnership," Condra said. "With

partners and distributors, it's about our supply chain. Over time, it's really going to be a response

to their needs. They can go to this one location and have those needs met."

Coca-Cola is turning to SAP for the underlying technology. While the requirements of the site

demanded a business-to-business approach, the fact that it would eventually reach 3 million end

customers, many of whom are small store owners, demanded a simple business-to-consumer

interface.

"For an outlet manager to understand the dynamics would be very difficult, so we've assisted

them in that process," Condra said. "The standard CRM out of the box from an e-commerce

standpoint would have had a lot of steps. We tried to think about the mandatory clicks a

customer has to enter."

Building a customer-focused website


17/38

1

Coca-Cola called in Edison, N.J.-based Fujitsu Consulting to help with the project. The first step

in establishing the site was to form a creative design team made up of two business owners, a

non-SAP Web design expert, a CRM functional e-commerce lead, and an SAP CRM technical

Java lead. They supplemented that with end users that represented everything from a business

owner running five outlets to small "mom and pop" shop owners.

The Web design experts presented their approach in html, and the SAP CRM experts outlined the

gap between what was available within SAP and what needed to be customized. They then

prioritized the development required.

"If the business impact is medium or lower and development time is 20, 30 or even 10 days, we

go back to them," said Sathish Thandale, project manager with Fujitsu. "They always had the

usability as the priority, and the SAP experts always had SAP CRM in their mind."

My SAP Customer Relationship Management --Integrates customer-facing business

processes and IT Infrastructure, such as order and help desk management, with operations

planning

My SAP Supply Chain Management --Allows for the seamless use of operations and

planning data, from packaging and customer service to the vending machine and store shelf

Partnership relation management:-

The Coca-Cola Company uses the Partnership Model to

structure a discussion of each company's business strategies and the

"drivers" of partnership as the launching point for its strategic

supplier partnership process.

A joint partnership plan is created as a result of this discussion at

the partnership meeting. The plan includes 3-5 annual objectives

and specific initiatives, which are assigned to an owner at each

company. Our partnership management routines ensure that the


18/38

1

initiatives get done and we main tain the momentum generated in the partnership meeting.

Coca-cola and SAP Partnership :-

Coca-Cola Enterprises and SAP have formed a strategic partnership to develop Direct Store

Delivery (DSD) functionality. Coca-Cola joins leading Consumer Products (CP) manufacturers

like Colgate-Palmolive, Kimberly-Clarke, Hershey, and General Mills in partnering with SAP to

develop new functionality, including Trade Promotions Management (TPM), Supply Chain

Planning (SCP), customer analytics, and Product Lifecycle Management (PLM).

Capturing value customers in return (Market share, Customersloyalty):-

MARKET SHARE :

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.

MARKET SHARE BY AREA ::

Coca Cola is the world-

renowned soft drink and the company is currently

operating through out the world. The world wide

total is about 17.8 billion.

The operation review according to the segments is as

follows.

Operation Review

(2002 worldwide unit case volume by operating segment)


19/38

1

NORTH

AMERICA

LATIN

AMERICA

EUROPE &

MIDDLE EAST

ASIA AFRICA

30% 25% 22% 17% 6%

So the volume is least in the Africa and most in the North America. The data

about the market share of this company area wise is given in the following table.

The above table shows the geographical earning of the Coca Cola Company and

from this data; we can find out that the customers of Coca Cola are increasing which is shown by

the companys per capita income. Unit case equals 24 eight -ounce servings. The column, which

shows the non-alcoholic beverages consist of commercially, sold beverages, as estimated by the

Company based on available industry sources. The country column is derived from

The Company's unit case volume while the industry column includes

nonalcoholic ready-to-drink beverages only, as estimated by the Company based on available

industry sources.

NORTH AMERICA

LATIN AMERICA

EUROPE & MIDDLEEAST

ASIA

AFRICA


20/38

1

Country Unit case growth Non-

alcoholi

c

Drinks

All commercial

Beverages

10 year compound

annual growth

5-year compound

annual growth

2002 annual

growth

2002 2002

Compan

y

Industry Compan

y

Industry Compan

y

Industry Compan

y share

Compan

y share

Comp

any

per

capita

Incom

e

North

America

4 5 3 3 2 2 22 15 398

United

States

4 5 3 3 2 2 23 16 419

Latin

America

6 7 6 6 3 4 24 15 205

Argentin

a

7 4 6 2 7 2 20 10 236

Brazil 5 5 3 6 3 5 23 13 144

Chile 9 6 5 3 (2) 3 56 23 336

Mexico 7 10 8 9 2 5 22 18 462

Europe

& Middle

6 3 5 3 2 4 12 6 72


21/38

1

East

Eurasia 17 8 6 5 (14) 1 14 5 39

France 8 3 9 3 7 3 9 5 110

Germany 1 2 (1) 1 (6) 1 14 7 193

Great

Britain

8 2 11 2 8 3 17 6 193

Italy 1 3 4 3 2 2 9 6 104

MiddleEast

12 12 7 5 4 8 8 3 17

Spain 6 4 8 5 4 4 17 12 264

Asia 7 6 6 7 10 7 14 5 23

Africa 7 6 8 3 10 6 34 11 34

In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billion

and the average consumer enjoys close to two servings of our products each month. Through an

intense focus on Coca-Cola, innovation and new beverages, the company has achieved volume

growth of 10 percent in 2002. With developing economies and populations, this region has

strong long-term potential, and the company is building an exciting family of beverage brands in

addition to expanding the popularity of our core brands, led by Coca-Cola. In China, for

example, sales of Coca-Cola increased 6 percent. The total unit case sale of Coca Cola in Asia

can be shown by the following pie chart.

(Figure)


22/38

1

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 thecountries 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.


23/38

CHAPTER #3

SOCIAL RESPONSIBILITY


24/38

1

Corporate social responsibility :: --

Corporate Social Responsibility projects within Coca-

Cola Sabco are chosen using a decentralized modelwithin a broad Group Corporate Responsibility Policy.

Each territory, and, in South Africa, each region

chooses the community project they would like to

support, but are called upon to justify their selections

within the Group Policy and Governance Processes.

Additionally, the Group Policy requires each operation

to invest the equivalent of at least one percent of its

operating profit in community projects.

The following section of the report intends to present some examples of how Coca-Cola Sabco

partners with its communities to provide support in areas where assistance is required. While

Coca-Cola Sabco often provides funding for projects, many of our employees devote their own

time to the initiatives we support and we thank them as well as the many people from the

community organizations we partner with. Their selfless devotion to securing the welfare ofothers helps make the world a place that we can be proud to live in.

Health and Wellbeing

The Companys operations conduct intervention programs that address

specific health risks, including HIV/AIDS, malaria and lifestyle diseases such as obesity. In

Nigeria, for example, Coca-Cola Hellenic provides HIV/AIDS education, voluntary counseling,

testing and anti-retroviral medicines together with government, the Global Business Coalition on

HIV/AIDS, Tuberculosis and Malaria, local NGOs and The Coca-Cola Company. Awareness

activities were extended in 2007 to reach 3,000 part-time employees, dealers, suppliers and

contractors. In Ukraine, all supervisors and managers were trained to manage HIV/AIDS in the

workplace during 2007.The Companys Nigerian operations teach employees to prevent and


25/38

1

control malaria at work and at home. During 2007 a further 5,000 insecticide-treated nets were

provided for employees to use at home. Physical activity and nutrition education are the focus of

Company efforts in countries where obesity and lifestyle diseases are rising. New programs have

been launched in Greece, in addition to those in Hungary, Romania and Ireland.

A Fair and Ethical Workplace

As a participant in the UN Global Compact, Coca-Cola Hellenic

upholds internationally recognized labor and human rights standards and commits to fight

corruption. The Companys Hu man Rights Policy and Equality of Opportunity Policy (available

on the Company website) are integrated into management training, and policies are widely

common Child labor is expressly prohibited, and appropriate checks are made during

recruitment. Approximately 90% of Company operations have implemented policies, and over

11,000 hours of training have been conducted to date.


26/38

CHAPTER #4

Swot &

Pest anal sis


27/38

1

SWOT ANALYSIS:-Coca-Cola Company is one of the leading MNC in the world. It

has made a remarkable growth since it origin and it has got a good potential in spite of various

hurdles coming its way. By going through its SWOT analysis we can know much more about thecompany.

STRENGTH :

The company has got various strengths, which leads the company be a market

leader. Some of the strengths listed below:

A) Strong product line :

The company has got various fast moving products which are going

great job in the market. These soft drinks not only quench thirst but also refresh everyone it

touches. One of the strong brands of the company is Coca-Cola, which specially doing well in

the Pakistan market. It has captured one of the major shares of the soft drink market.

B.) Advertising :

Advertising plays a major in promoting sales of the product. The company hasgot one of the best advertising strategies. Appointing film actors, as the brand ambassadors,

makes a great impact on the mind of the customers. The company should try to launch more and

more advertising and sales campaigns to promote sales to the maximum

WEAKNESS :

As no man in this world is a complete man and so are the companies. Every

company has got weakness so as Coca-Cola Company too. Some of the weaknesses which the

company should overcome are as follows:

A.) Distribution network :

The company has got an average distribution network this is one of

the reason why the company fails to fulfill the demand of the customer at time of peak seasons. It


28/38

1

must go for some more bottling plants and should opt for better distribution channels to increase

the sales in the best possible manner.

B.) Pricing strategy :

The company has got a pricing strategy as there is no certainty of rising or fall

of price during the peak season. This also hamper the sales of the company as the retailers and

distributor get dilemma whether to place the next order or not as increase or decrease in price

may hamper their profit margin and blockage of the goods.

OPPORTUNITIES :

Instead of weakness and threats the company the company has got

various opportunities to which it has to go for. The opportunities for the company are as follows:

A.) Large Market :

As Pakistan is said to be one of the biggest market in the world, thus the

company survive for long and can expands to its length and width. Still there are thousand of

villages which have not been covered by soft drink companies. If the company targets the rural

market it can easily make large profits and thus can also satisfy its aim to benefit and refresh the

whole nation.

B.)Launch of other brands :

Coca- Cola Company has got more than 300 brands which are

running successfully over the world. Thus it can launch some more brands in the country, after

studying the demand and desire of the people and can deep its roots by winning their minds and

hearts.

THREATS :

Some of the threats which the can face:

(A) Competitors :


29/38

2

One of the strong competitors of the company is Pepsi Co. thus it has to

formulate such strategies which make it to remain one step ahead and give a strong competition

to the competitors. Some of the other competitor in the path of growth to the company is the

local soft drinks manufacturers who play an active part at the time of peak season. The other

local refreshers like Amrat, Macca and fruit juice etc. which hampers the sales of the company.

(B) Govt. Policies :

The policies of the government also play a major role for the company.

The company can not perform well or in its own way by violating the rules of the government.

Thus if the government formulates some policies which creates hindrances in the working of the

company it will prove to be one of the major threats.

PEST ANALYSIS OF COCA-COLA :-

There are four variables, which we will discuss in our report, they are

POLITICAL VARIABLES

Political variables Strongly

Effected

Some what

Effected

No

Effect

Some what

Effected

Strongly

Effected

Effects of government

regulations &

deregulations

NE

Effect of environmental

protection laws if any

YES

Import and export

regulations

NE

Effect of political NE


30/38

2

conditions in certain

countries of Coke

Any effect of election,

military take over,Revolution at Coke

YES

Conclusion of Political Analysis :

As far as the above table is concerned it could be seen that there are very little chances of

political variables to effect the cokes production and selling behavior. In the political

variables most of the things are related to Governmental activities. So, they dont leave any

good or bad impact in the Industry of coke.

And there are some exceptional things like: environmental protection laws they some what

effect the industry of Coke. From last two years Government is going to be really very much

conscious about the environment. But after making the adjustments in plants and applying the

proper way of wastage the chances of being affected by the protection laws are going to be

diminished. So it impact good for the Cokes reputation. And the second thing in political

variables which effects Coke is elections & military take over Because in the days of elections

and marshal laws condition the countries production in any field is declined. So it affects

slightly the revolution of Coke.

So political conditions are over all leave neutral effects on cokes industry.

ECONOMICAL VARIABLES

Economical Variables Strongly

Effected

Some what

Effected

No

Effect

Some what

Effected

Strongly

Effected


31/38

2

Do soaring interest rates

make business task any

harder

YES

Any effect due toinflation

YES

Anything done to reduce

unemployment

YES

Any effect of 11 t

September 2001, incident

at Coke in Pakistan

NE

Conclusion of Economical Analysis

It could be seen that economical variables highly

affects the Cokes resolution. Economic factors are those actors who effect the production of any

industry. So, Coke is not the out of question. If the economic conditions of the country is not that

strong and Coke increases its Price in this situation. Then it would impact highly negative. Andinflation is also not a good position for any countrys production point of view. It also impacts

highly negative in the Cokes production.

And as a country concerned like Pakistan where the unem ployment rate

is very much high, the Coca-Cola system in Pakistan employs 1,800 people. During the last 2

years, the Coca-Cola system in Pakistan has involved over $130 million (U.S).When we draw

the conclusion of economic variables. Then we come to know that if economic variables are

in the favorable position of country then they impact good other wise the impact highly bad.


32/38

2

SOCIAL VARIABLES

Social variables Strongly

Effected

Some what

Effected

No

Effect

Some what

Effected

Strongly

Effected

Effects of advertisement of

Coke on Public popularity

YES

How will do Cokes

contribution affect charity

organizations of Pakistan

YES

Has rising consciousness of

natural resources in people

effected your save

environment activities.

YES

CONCLUSION OF SOCIAL ANALYSIS

EDUCATION

The Coca-Cola Company has always believed that education is a powerful force in

improving the quality of life and creating opportunity for people and their families around the

world.

The Coca-Cola Company is committed to helping people make their dreams come true. All over

the world, we are involved in innovative programs that give hard-working, Knowledge-hungry

students books, supplies, places to study and scholarships. From youth in Brazil to first

generation scholars, educational programs in local communities are our priority.

ENVIRONMENT


33/38

2

A large part or our relationship with the world around us is our

relationship with the physical world. While we have always sought to be sensitive to the

environment, we must use our significant resources and capabilities to provide active leadership

on environmental issues, particularly those relevant to our business. We want the world we share

to be clean and beautiful. We are always innovating to bring you different delicious beverages.

This same spirit of innovation comes alive in our environment p rograms. Were committed to

preserving our environment, from use of more than $ 2 billion (U.S) a year in recycling content

and suppliers, and environment Management initiatives, down to very local neighborhood

collection and beautification efforts. Heres a sample of what were doing in different

communities around the world regarding the conservation of water and natural resources, climate

changes, waste environment education.

The Coca-Cola system in Pakistan operates through eight bottlers. Four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL).

COMMUNITY INVOLVEMENT :

In 2000, when eastern Pakistan suffered its worst droughts,

The Coca-Cola system initiated a famine-relief program to help victims and was the first private-

sector company to assist. The Coca-Cola system in Pakistan initiated a voluntary Hajj program

that allows one employee from each plant, selected through a draw, to be sent on the Holy

Pilgrima ge to Mecca at the Companys expense.

TECHNOLOGICAL VARIABLES

Technological

variables

Strongly

Effected

Some

what

Effected

No

Effect

Some

what

Effected

Strongly

Effected

Have business YES


34/38

2

innovations

effectively

promoted your

business

Has the

governments

regulations

ever hindered

in importing

technical

equipment

YES

Does Coke

help in

promoting

paperless

environment

YES

Conclusion of Technological Analysis

Of course business innovation leaves highly good

impacts in the business of Coke. As coke use more advance technology in its production process.

It will result in increment of their production through out the country. As far as the

governmental hindrances are concerned the impacts highly bad on cokes production. Ever

year when budget in announced government taxes rates always shoot up. This approach of

government decreases the profit margin of Coke.

As the coke helping in promoting paperless environment .it impacts good, because computers

are the basic need of any person now a days. A nd though its a big industry thus it is promoting

the trend of paperless environment. And it is giving the way of other industries to come to new


35/38

2

technologies and into a new world of business. Through computers coke can increase the

efficiency of its business and can have up to-date data about their productions.


36/38

CHAPTER#5

CONCLUSION &

RECOMMENDATIONS


37/38

2

RECOMMENDATIONSAfter completing our project we have concluded some recommendation for the coca cola

company, which are following.

Coca Cola Company should try to emphasis more on providing their infrastructure in the

market to facilitate their customers.

According to the survey, conducted by the international firm Pakistani people like little

bit sweeter cola drink. So for this coca cola company should produce their product

according to the local demand.

Marketing team should try to increase the availability of Coke in rural areas. They should also focus the old people. Now young generation has a trend to drink coke 2 regular bottles at same time, so

providing more satisfaction to them company should introduce liter disposable bottle.


38/38

Referencewww. coca -cola .com/

www. coca -cola .com/template1/index.jsp?locale=en_US

www.the coca -cola company.com/

www.pakvisit.com/.../jobs%20in%20 coca %20cola %20Pakistan.htm

en.wikipedia.org/wiki/The_ Coca -Cola _Company

www.the coca -cola company.com/.../chronicle_birth_refreshing_idea.html -

www.likecool.com/ Coca _Cola _History --Pic--Gear.html

www.ideafinder.com/ history /inventions/ cocacola .htm

www.the coca -cola company.com/.../av_ advertising .html

www.psdeluxe.com/.../100-old- coca -cola -ads -and-posters.html
http://www.coca-cola.com/http://www.coca-cola.com/http://www.coca-cola.com/http://www.coca-cola.com/http://www.coca-cola.com/http://www.coca-cola.com/http://www.coca-cola.com/template1/index.jsp?locale=en_UShttp://www.coca-cola.com/template1/index.jsp?locale=en_UShttp://www.coca-cola.com/template1/index.jsp?locale=en_UShttp://www.coca-cola.com/template1/index.jsp?locale=en_UShttp://www.coca-cola.com/template1/index.jsp?locale=en_UShttp://www.coca-cola.com/template1/index.jsp?locale=en_UShttp://www.thecoca-colacompany.com/http://www.thecoca-colacompany.com/http://www.thecoca-colacompany.com/http://www.thecoca-colacompany.com/http://www.thecoca-colacompany.com/http://www.thecoca-colacompany.com/http://www.pakvisit.com/.../jobs%20in%20coca%20cola%20Pakistan.htmhttp://www.pakvisit.com/.../jobs%20in%20coca%20cola%20Pakistan.htmhttp://www.pakvisit.com/.../jobs%20in%20coca%20cola%20Pakistan.htmhttp://www.pakvisit.com/.../jobs%20in%20coca%20cola%20Pakistan.htmhttp://www.pakvisit.com/.../jobs%20in%20coca%20cola%20Pakistan.htmhttp://www.pakvisit.com/.../jobs%20in%20coca%20cola%20Pakistan.htmhttp://www.likecool.com/Coca_Cola_History--Pic--Gear.htmlhttp://www.likecool.com/Coca_Cola_History--Pic--Gear.htmlhttp://www.likecool.com/Coca_Cola_History--Pic--Gear.htmlhttp://www.likecool.com/Coca_Cola_History--Pic--Gear.htmlhttp://www.likecool.com/Coca_Cola_History--Pic--Gear.htmlhttp://www.likecool.com/Coca_Cola_History--Pic--Gear.htmlhttp://www.likecool.com/Coca_Cola_History--Pic--Gear.htmlhttp://www.likecool.com/Coca_Cola_History--Pic--Gear.htmlhttp://www.ideafinder.com/history/inventions/cocacola.htmhttp://www.ideafinder.com/history/inventions/cocacola.htmhttp://www.ideafinder.com/history/inventions/cocacola.htmhttp://www.ideafinder.com/history/inventions/cocacola.htmhttp://www.ideafinder.com/history/inventions/cocacola.htmhttp://www.ideafinder.com/history/inventions/cocacola.htmhttp://www.thecoca-colacompany.com/.../av_advertising.htmlhttp://www.thecoca-colacompany.com/.../av_advertising.htmlhttp://www.thecoca-colacompany.com/.../av_advertising.htmlhttp://www.thecoca-colacompany.com/.../av_advertising.htmlhttp://www.thecoca-colacompany.com/.../av_advertising.htmlhttp://www.thecoca-colacompany.com/.../av_advertising.htmlhttp://www.thecoca-colacompany.com/.../av_advertising.htmlhttp://www.thecoca-colacompany.com/.../av_advertising.htmlhttp://www.thecoca-colacompany.com/.../av_advertising.htmlhttp://www.ideafinder.com/history/inventions/cocacola.htmhttp://www.likecool.com/Coca_Cola_History--Pic--Gear.htmlhttp://www.pakvisit.com/.../jobs%20in%20coca%20cola%20Pakistan.htmhttp://www.thecoca-colacompany.com/http://www.coca-cola.com/template1/index.jsp?locale=en_UShttp://www.coca-cola.com/

Date post:	02-Jun-2018
Category:	Documents
Upload:	hamzaashfaq228
View:	218 times
Download:	0 times