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Business Communication Final Project

Coca-Cola has been operating in Pakistan since 1953 and has established a wide customer base through innovative marketing campaigns. The document outlines Coca-Cola's mission, vision, organizational structure, and marketing strategies to increase market share against competitors like Pepsi. It aims to satisfy customer needs through a portfolio of beverage brands while nurturing partnerships and contributing to sustainable communities.

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Usama ZEshan
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100% found this document useful (1 vote)
445 views

Business Communication Final Project

Coca-Cola has been operating in Pakistan since 1953 and has established a wide customer base through innovative marketing campaigns. The document outlines Coca-Cola's mission, vision, organizational structure, and marketing strategies to increase market share against competitors like Pepsi. It aims to satisfy customer needs through a portfolio of beverage brands while nurturing partnerships and contributing to sustainable communities.

Uploaded by

Usama ZEshan
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Table of content Page no. 1. Introduction 2. Historical background 3. Vision 4. Goals 5. Organizational structure 6. Marketing strategy 7.

Competitive strategy 8. Products 9. Marketing plan 10. HR plan 11. Financial plan 12. Recommendation 13. Conclusion

Introduction

Brand name: Coca-cola Company name: Coca Cola beverages Pakistan ltd. Parent company: The Coca -Cola Company.
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Country of origin: United State. Type of product : Soft drink. Logo/Trade mark:

HISTORY OF COCA COLA: In May 1886, Georgia pharmacist John Smyth Pemberton succeeded in creating what he intended, a temperance drink. He prepared this syrup as a medicine and distributed it. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank Robinson. Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted "Coca Cola" into the flowing letters which has become the famous logo of today. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886. About nine servings of the soft drink were sold each day. Sales for that first year added up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in expenses, so the first year of sales were a loss. Until 1905, the soft drink marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut. In 1887, another Atlanta pharmacist and businessman, As a Candler bought the formula for Coca Cola from inventor John Pemberton for $2,300. By the late 1890s, Coca Cola was one of America's most popular fountain drinks, largely due to Candler's aggressive marketing of the product. With As a Candler, now at the helm, the Coca Cola Company increased syrup sales by over 4000% between 1890 and 1900. Advertising was an important factor in John Pemberton and As a Candler's success and by the turn of the century, the drink was sold across the United States and Canada. Around the same time, the company began selling syrup to independent bottling companies licensed to sell the drink. Even today, the US soft drink industry is organized on this principle. Until the 1960s, both small town and big city dwellers enjoyed carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the drug store, the soda 2

fountain counter served as a meeting place for people of all ages. Often combined with lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft drinks, and fast food restaurants became popular. On April 23, 1985, the trade secret "New Coke" formula was released. Today, products of the Coca Cola Company are consumed at the rate of more than one billion drinks per day. Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal. Today, you can find Coca-Cola in virtually every part of the world

HISTORY OF COCA COLA IN PAKISTAN:

The Coca Cola company began operating in Pakistan in 1953 and started with Coca Cola drink as a sole brand but later increased its product line and added Sprite, Fanta, Sprite Zero, Vimto, Diet Coke, Kinley water & Sprite 3G. The Coke in Pakistan operates through their 8 bottlers from whom 4 are owned by the company itself under the name of Coca Cola Beverages Pakistan Ltd (CCBPL) with its plants at Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan and Lahore and serves more than 75,000 shops / retail outlets. Coke has attracted customers from allover Pakistan through its interesting slogans and has created a wide customer base in youth. Some particular slogans are:

1953 The friendliest drink on Earth 1963 Things go better with Coke 1976 Enjoy Thirst 1993 Always Coca Cola 2001 Life is good 2003 Jo chaho ho jaye Coca Cola enjoy 2004 The flight of delight 2005 Gaa lay Delicious taste

2006 Thanda matlab Coca Cola 2007 Khaalay Peelay Jeelay Coca Cola 2008 Aaja Jashan Mana lay 2009 BRRRRRRRRRR 2010 Very chill hai Coke Zindagi 2011 Her beat sa khaly khushia

Mission, Vision & Values The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottling partners. Our Mission Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Our Vision Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they can Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate Partners: Nurture a winning network of customers and suppliers, together we Planet: Be a responsible citizen that makes a difference by helping build and Profit: Maximize long-term return to share owners while being mindful of our 5

be.

and satisfy people's desires and needs.

create mutual, enduring value.

support sustainable communities.

overall responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

Our Winning Culture Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality. Live Our Values Our values serve as a compass for our actions and describe how we behave in the world.

Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well

Focus on the Market


Focus on needs of our consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious

Work Smart

Act with urgency Remain responsive to change

Have the courage to change course when needed Remain constructively discontent Work efficiently

Be the Brand

Inspire creativity, passion, optimism and fun

Marketing Objectives

The ultimate objectives of our business strategy are: To increase volume Expand our share of worldwide nonalcoholic ready to drink beverages sale Maximize our long-term cash flows Create economic value added by improving economic profit.

The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customers business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. Aims:

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

Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value.

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

Profit: Maximizing long-term return to share-owners while being mindful of our overall responsibilities.

Organizational structure

CEO
(Chief Executive Officer)

COO
(Chief Operating Officer)

G.M1 Sales

G.M Operation

G.M Financial

G.M Fianance

Business development managers

90 15 ASM 6 RSM 19 DSM Supervisor

Marketing Strategy

Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that can span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It's a special thing to have billions of friends around the world, and we never forget it.

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Competitor strategies
MAJOR COMPETETOR: PEPSI CO.

Pepsi Co is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International. Pepsi-Cola beverages are available in more than 190 countries and territories. In Asia, they selected Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the operations carried out in South West Asia. Pepsi Co. has focused on these marketing principles to attain their higher share of market in Asia: Measuring Satisfaction using various techniques Increasing customer perceived value (CPV) Increasing shareholder wealth. The earnings per share are expected to grow to 116 Rs. In 2010. Maintaining its supply chain management to ensure that the customer gets Pepsi exactly when he requires. Mass Marketing via advertising Pepsi with customer attraction areas e.g. celebrities (Shahrukh Khan, Junaid Jamshed, Adnan Sami), Sports (Cricket), concerts (Haroon etc)
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Price Indiscrimination all over the region Focusing on Brand image Customer retention schemes such as lucky draw, meeting your favorite celebrity etc

Products of coke
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Product Product is any good or service which has value to satisfy customer needs and want.

Coke has more than 400 products all over the world. In Pakistan the Coke Family includes: Coca Cola . (300 ML Regular bottle, 500 ML Plastic bottle, 500 ML Can, 1 Liter bottle & 2.5 Liter bottle).

Diet Coke. (500 ML Plastic bottle & 1 Liter bottle)

Sprite Zero. (500 ML Plastic bottle & 1 Liter bottle).

Sprite 3G. (500 ML Plastic bottle & 1 Liter bottle).

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Fanta. (300 ML Regular bottle, 500 ML Plastic bottle, 500 ML Can, 1 Liter bottle & 2.5 Liter bottle). Vimto. (1 Liter Plastic bottle)

Kinley Mineral water. (500 ML Plastic bottle & 1 Liter bottle).

Minute Maid Juice. (500 ML Plastic bottle & 1 Liter bottle).

Sprite (300 ML Regular bottle, 500 ML Plastic bottle, 500 ML Can, 1 Liter bottle & 2.5 Liter bottle).

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Market Summary
a) Market Growth: According to the 2005 Annual Report, the company sells beverage products in more than 200 countries. The report further states that of the more than 50 billion beverage servings of all types consumed worldwide every day, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion. Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78% of the Company's total gallon sales. Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows: 37% in the United States 43% in Mexico, Brazil, Japan and the People's Republic of China 20% spread throughout the rest of the world In 2010 it was announced that Coca-Cola had become the first brand to top 1 billion in annual UK grocery sales.
b) Market Demographics:

In Pakistan Cokes share is only 36%.

POPULATION:

176,242,949 (July, 2009 estimated)


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CHILDREN: ADULTS: CHILDREN EQUITY: ADULT EQUITY:

37.2% (65,607,612) 62.8% (110,680,572) 60% (14,643,619) 40% (27,802,960)

TOTAL TARGET MARKET: 42,446,579

Coke targets both genders in Pakistan.

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c)

Psychographics Segmentation & Market Trends:

Coke segments different income levels by packaging. Like for people with a low level of income, it has small returnable glass bottle, for the mediocre class it has non returnable bottle (NRT) and for people with a high level of income it has Coke tin. Sometimes, for the promotion strategy of coke, the Coke Company introduces prizes on the top cover. So they segment people by benefit sought, i.e. by giving them prizes. Coke will always show activities, where people get together to enjoy moments of togetherness with our brand. Research analysis indicates that youngsters love to get together, and it is when they are enjoying themselves, that will consume coke. For Pakistani youth, socializing with friends and family is core behavior in their lives. Cokes brand personality is all about togetherness. At times, Coca Cola Intl seeks to promote itself through sponsoring events. Since many years, Basanat festival has somewhat become Coke Festival.
d) Market Needs:

In coke marketing, main idea is to serve it cold, so we can say that, they focus more on hot areas of the world, i.e. middle east etc and there sale increase in summer. The market needs vary with time and Coke Intl. introduces its products over time e.g. Coke Cherry etc.

e) Market Behavior:

The behavior of Pakistani market has always been orientated on WHATS COLD GETS SOLD. People normally focus on buying anything that is cold either Pepsi or Coke. The market behavior in Pakistan has not changed a lot as people are not entirely health conscious but over a few years due to increasing awareness of obesity, people have adopted an alienated behavior

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to soft drinks, which is why Coca Cola Intl. has provided them with the perfect solution i.e. provide a product exactly when it is needed. Yes, we are talking about Diet Coke; introduced in 2001 to meet the growing market needs.

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f) Market Share Growth Rate:


Worldwide on global level Coca-Cola is the most popular brand and market leader and carry 60% of market share. In Pakistan due to above reasons Coca cola is the market follower but still in a very strong and stable position holding 36% of the local market share with a growing and increasing market share every year.

GROWTH RATE IN MARKET SHARE GEOGRAPHICALLY


Unit Case Volume 2008 vs. 2009 Growth Africa Eurasia European Union Latin America North America Pacific Bottling Investments Worldwide 10% 16% 3% 9% (1%) 7% 64% 6% 5-Year Annual Growth 6% 13% 2% 6% 1% 4% N/A 4% 2008 vs. 2009 Growth Rate Net Operating Revenues 16% 24% 14% 24% 11% 7% 53% 20% Operating Income 6% 38% 16% 22% 1% 3% 750% 15%

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g) Market Growth: Coca Cola Company can also identify its expansion through the ANSOFF approach.

Coca Cola in Pakistan is doing market penetration through the selling its products to the business buyer, who are huge multinational organizations like McDonalds, Subway, Dunkin Donuts & many more & they are also keeping the local market in focus. Fri Chicks, AFC etc are examples of the buyers in the local market. They are selling the Coca Cola as the only beverage in their restaurants. Market Development is exploring new markets for the products you are already selling. Many flavors of coca cola are not being sold in Pakistan. Coca cola can develop a new market if they introduce those flavour.

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4. SWOT Analysis:

Strengths Internal
-Popularity

Weaknesses
-Word of mouth

-well known -branding obvious and easily recognized -A lot of finance -customer loyalty -International Trade

-lack of popularity of many Coca Colas brands -Most unknown and rarely seen -result of low profile or non-existent advertising -health issues

Threats External
-changing health-

Opportunities
-many successful

consciousness attitude -legal issues -Health ministers -competition (Pepsi)

brands to pursue -advertise its less popular products -buy out competition. -More Brand recognition

BCG BOSTON CONSULTING GROUP) APPROACH


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In BCG

the

approach, a company classifies all Business according to the growth share matrix. its Coke is one of the

main product lines of the Coca Cola Company. It is the one which is giving maximum revenues to it by different products in this line. Here we have classified some of its major products in the BCG matrix on the basis of their fame and liking of the people.

STAR Coke Classic is the STAR product of coca cola company as relative market share and market growth rate is high. It is basic product through which the Coca Cola Company got the fame. It is one
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product, which gives the maximum revenue from all over the world. It is one flavor, which has the maximum consumers all over the world. Coke has already worked a lot on it by launching new flavors in it, but still it is a product they can turn as famous as coke Classic. CASH COWS Sprite is the cash cow products, as its relative market share is high and market growth rate is low. which the Coca Cola Company can never think of stop producing. Its target market is less but they are earning a lot of money for CCBPL. Whenever the company thinks of launching its product in a country the first product they launch is coke classic as they know that if dont work here then nothing else can. QUESTION MARK Products that are still not a big hit as they have not consumed much time yet. Sprite 3G,Sprite Zero, Diet Coke and Kinley are the examples of these question marks as the question marks as they have not taken much time yet to get a hold of market & not even the large percentage of the people have tasted it. So it needs time to be fully tested by the company & the company needs to think whether it should continue the production or should divert to some thing new.

DOGS A product that has not worked good or a product which has been a source of loss. flavored Fanta is one product that was not a big hit. Even its not a long period which flavored Fanta has consumed but still
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there are signs that it wont be a success. So it is better for the company to get rid of it.

Human Resource Management within Coca Cola Human Resource Management is an essential part for any organization. Moreover, development of this department is the first step, the ground on which the future of the company depends. It is essential for every single business unit and especially for such international company as Coca Cola. It is people, not technology who create the 24

company. Human Resource Management at Coca Cola Company has many advantages. It is the global company and it is impossible to create certain policies or procedures applicable in all divisions of the company, cultural and political differences need to be taken into account. Therefore, the focus of this paper will be on four tasks and duties of Human Resource Management (performance management, compensation, career development, succession planning) based on the United States procedures.

Basically

the

HRM

practices

are

necessary

f or

every

organization. But unfortunately in Pakistan not so much used HRM practices. In multinational companies like coca cola have their own separate department of HRM. According senior executive of HR Waqar Mahmood our HR department consist of 29 people in Gujranwala plant.

Every organization has its own policies and strategies by which they control the functions of their departments. Similarly, we also have own policies and strategies by which we control all the functions of our departments. coca cola HR department is also conducting all the practices of HRM like Job analysis and design of work, recruitment and selection, training and development, performance appraisals, compensation, employee relationships, staff welfare and medical policies and some other things like that. These all practices are conducted by own policies and strategies. HR department not make decisions related of its own department, they also conduct in companys decision.

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Financial plan

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CONCLUSION

We have concluded from this detailed report that despite the fact Coca Cola currently occupies the market leadership position overall but it does not guarantee that the company will sustain its position in the future as well. In Pakistan as compared to Pepsi, Coca-Cola has less number of consumers as Pepsi market share in Pakistan is approximately 54% whereas Coke market share is hovering about 45 %, hence the conclusion is that Coca-Cola must enhance factors such as relationship marketing, innovation and technology especially in Pakistan to attain market leader position in this region as well.

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Recommendations
Coca Cola should decrease its promotion cost so as to reduce its retail price for end consumers.
Currently in Pakistan there are only few SKU's of Coke available, company should enlarge its portfolio by introducing new SKUs as we see in our neighboring country like clear drinks ,juices and Energy drinks

. Sale & Marketing team should try to increase the availability of Coke in rural areas. According to the survey, conducted by the international firm Pakistani people like less sweet cola drink. So for this Coca-Cola Company should think about bringing a new product for example new diet flavors, in the market to fulfill the local need.

Coca Cola should take steps to increase the natural beauty by reducing the amount of bill boards or by using appropriate locations for their bill boards.

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THE END

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