Coca Cola Company Operations Pakistan Marketing Essay

INRTODUCTION

The Coca-Cola Company started their operations in Pakistan in 1953. Coca-Cola, Sprite and Fanta are the available brands in Pakistan. The System of Coca-Cola in Pakistan operates through eight bottlers, four of that are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are awailable in Karachi, Gujranwala, Multan, Hyderabad, Lahore, Faisalabad, Rahimyar Khan and Sialkot. The other two plants, separately owned, are in Peshawar & Rawalpindi. The Coca-Cola serves 70,000 customers/retail outlets in Pakistan. 1,800 people work system of Coca Cola in Pakistan. With in the last two years, over $130 million (U.S.) were invested by the Pakistan Coca Cola system.

More than 56 years of refreshment period in Pakistan

Coca-Cola was introduced in Pakistan 1953

Fanta was introduced in Pakistan 1965

Sprite was introduced 1972

Diet Coke & Fanta Lemon was introduced 200

Since 1897Coca cola international productions have been sold in Mexico. Now Coco cola controls 60% of the Mexican soda market, further Pepsi with 30%. Further Mexican president Fox’s before becoming a politician he was working as president of the Coca-Cola Corporation of Latin America & Mexico.

After his victory, Coca-Cola started bottling water by the wealthiest aquifer in the Chiapan town of San Cristóbal de las Casas, an ecological reserve controlled by a conservation group Pronatura that receives money from the Coca-Cola Mexico. In 2004, the Coke plant at San Cristóbal de las Casas used 107,332,391 water liters about as much as 200,000 homes use.

In a country where over 12 million general public are without access to drinkable water, Mexican groups have started on a boycott against Coca-Cola basically motivated by Coke’s increasing authority of Mexican water.

So the object of this report is to critically evaluate the strategy and performance of any ONE US, European or Asian company over the last five years in any two emerging markets in different regions of the world. According to that the report describes Coca Cola Companies performance & strategies in US & Asian reigns by using Pakistan & Mexico emerging markets.

FINANCIAL REPORT:

It is owing to the strong finances, the company is still existing the ups & down of the business. The financial report of Coke the year 2000 & 2001along with the percentage change is as below.

2002 basic & diluted net income per share includes a non-cash gain of $.02 per share after taxes that were recognized on the issuance of stock by Coca-Cola Enterprises Inc., one of the equity investors of the company.

Charges are partly balance by a gain of $.05 for each share after income taxes related to the merger of Coca-Cola Beverages plc &Hellenic Bottling Company S.A. & $.04 per share after income taxes linked to benefits from a tax rate reduction in Germany &from positive tax planning strategies.

DIVIDEND AND CASH INVESTMENT PLAN:

The Dividend & Cash Investment Plan authorizes shareowners of record to invest again dividends from Company shares of The Coca-Cola Company. The Plan offers a systematic, economical & convenient method of acquiring extra shares of our common stock. All the shareowners of record are suitable to participate. Shareowners are also may purchase stock through voluntary cash investments of up to $125,000 for year. In year-end, 76 % of the Company’s shareowners of record were participants in the Plan. In 2002, shareowners did invest $36 million in dividends & $31 million in money in the Plan.

COMPANY STATISTICS:

This company’s statistics are inspiring. Since it is operating all over the places in the world because of that the number of employees & the bottling equipments is uppermost among the other companies of bottling. There is a constant raise in every aspect when mach the statistics of 2001 & the statistics of 2002. This is because; Coca Cola Company is increasing its volume day by day. The spreading out of this company that shows the victory of Coca Cola brands, results in the percentage vary in the statistics of the two years. The statistics is as below.

“(EBITDA) -Earnings before interest, taxes, depreciation, & amortization,

&other non-operating items”

Did convert to a standard unit of assess defined as 24 eight-ounce servings or else 192 ounces for each equal case sold by Coca-Cola Enterprises.

PRODUCTS:

The Coca Cola Company produces carbonated drinks as well as other drinks while launching company’s product, the marketing department considers the culture & the sub cultures of the country.

Coca Colas major brands

•Coke

•Diet coke

•Sprite

•Coke classic

•Fanta

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STRATEGIC PLANNING

In 2002, the coca cola company did have a great success, as the strategy did work that resulted in making Company the world’s leading company. In 2001, company did accomplish the top of it’s strategy as;

•global volume enlarged by 4 %with strong international growth of 5% & clear signs that our North American business is growing steadily & expectable.

•Earnings per share did grow by 82 %, as we carried on our commitment to

Create volume growth aggressively.

•Return on common equity grew from 23 %in 2000 to 38 %2001

•Return on capital increased from 16 %in 2000 to 27 %in 2001.

•The free cash flow has bean generated by the company. That’s from $2.8 to $3.1 billion.

In 2000,a clear indication of its underlying financial power. The strategy for the potential of the coca cola company is more straightforward. The marketing strategy for the next year is in this manner,

•The speed up carbonated soft-drink growth, led by Coca-Cola Company.

•Selectively widen the group of beverage brands to drive profitable development.

•Increase system profitability & ability jointly with the companies bottling associates.

•Treat consumers with creativity & steadiness to generate development across all Channels.

•Direct investments to the highest potential regions across markets.

•Cost-effectiveness & Drive efficiency all over the place.

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COCA COLA MEXICO

Within the soft drinks Sprite & Fanta become positively along with the key brand Coca Cola &Diet Coke. In key markets, the company has formed new packaging sizes to satisfy customer demands.

More and more, Mexican domestic families have lunched together at home. The lot of Mexican household drinks 2-1/2or more of soft drinks during that break, while a two liter bottle was the biggest available package. Therefore the company initiated a convenient 2-1/2 liter bottle to choose regions, involving to the sale of nearly 1.5 billion unit cases of Coke in Mexico. The bigger bottle will complete its island wide rollout in 2002.

Since 1897Coca cola international productions have been sold in Mexico. Now Coco cola controls 60% of the Mexican soda market, further Pepsi with 30%. Further Mexican president Fox’s before becoming a politician he was working as president of the Coca-Cola Corporation of Latin America & Mexico.

After his victory, Coca-Cola started bottling water by the wealthiest aquifer in the Chiapan town of San Cristóbal de las Casas, an ecological reserve controlled by a conservation group Pronatura that receives money from the Coca-Cola Mexico. In 2004, the Coke plant at San Cristóbal de las Casas used 107,332,391 water liters about as much as 200,000 homes use.

In a country where over 12 million general public are without access to drinkable water, Mexican groups have started on a boycott against Coca-Cola basically motivated by Coke’s increasing authority of Mexican water.

COCA COLA PAKISTAN

The Coca-Cola Company started their operations in Pakistan in 1953. Coca-Cola, Sprite and Fanta are the available brands in Pakistan. The System of Coca-Cola in Pakistan operates through eight bottlers, four of that are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are awailable in Karachi, Gujranwala, Multan, Hyderabad, Lahore, Faisalabad, Rahimyar Khan and Sialkot. The other two plants, separately owned, are in Peshawar & Rawalpindi. The Coca-Cola serves 70,000 customers/retail outlets in Pakistan. 1,800 people work system of Coca Cola in Pakistan. With in the last two years, over $130 million (U.S.) were invested by the Pakistan Coca Cola system.

More than 56 years of refreshment period in Pakistan

Coca-Cola was introduced in Pakistan 1953

Fanta was introduced in Pakistan 1965

Sprite was introduced 1972

Diet Coke & Fanta Lemon was introduced 200

PROMISE OF COKE

The fundamental proposition of the business is plain, firm & timeless. When we bring refreshment, joy value & fun to the stakeholders, then we successfully nurture & protect our brands, mainly Coca-Cola. That is the key to fulfill ultimate duty to provide consistently attractive returns to the holder of the business.

TARGET MARKET

Coke’s commercials mainly focused on young generations, for the reason that they want to represent Coke with the youth &energy further they think about the matured people they take then as a co-target market.

MAJOR SEGMENTS

Major segments are mainly those who take Coke daily & those areas where the demand is higher then the other areas. A lot of people who take Coke daily &those who take weekly & those who take rarely are always there as well. So, the Pakistan Coca Cola company’s basic segments are those who have this drink often.

FACTORS EFFECTING SALES

There are lots of factors that affect the sale of Coca Cola. Three major factors are being discussed that effect coke.

•Per capita income

•Competitors

•Weather

Per Capita Income

Thaïs’s the major factor that influences the sale of this carbonated soft drink. For the reason that each & every passing year budgets are becoming more strict & tight in order to purchase things. Consequently the disposable revenues of the people are getting lower. They pay out heavily on rents, utilities, & education & basic necessities &thereafter when they erne extra money they think about this carbonated soft drink .thus the get down of per capita income does effect badly in selling & production of this carbonated soft drink. & to go through with this difficulty there is need to increase the level of per capita Income of Pakistan therefore it is lesser than the other the countries.

Competitors

Coca Cola’s main competitor is “PEPSI” % there is no suspect to say this because every body knows that & all the other cold drinks and water, tea, coffee, are the players.

Weather

This is immature market so the Coca Cola’s usage in winters is 40% & in summers is 60%.

MAJOR CUSTOMERS NEED

Most of the consumers don’t care about what they are going to take. They don’t care before drinking that whether it is “Coca Cola” or “Pepsi”. They don’t actually feel more differentiation among these two brands according to the tastes. Buyers normally have what they get. They believe on “WHAT COLD THEY SOLD”

Customer’s availability in brands is normally happens such as:

“Push availability

Pull consumer’s demand”.

According to this reason Coca Cola have supplied their coolers & freezers in to the market. Further have utmost number of freezers & coolers in the market. They supply these infrastructures free of charge just to supply child coke to the customer that they want to be bought.

The mechanics & salesman often go all the shops & to check infrastructure .If there is any problem change or repair it.

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MAJOR COMPETITORS

If consumers want to have soft drink they compete brands with each other. For instance compete Coke with Pepsi &Sprite with 7up & team.

The Coca Cola Company thinks in a different way, they believe that new competitor AMRAT

Cola, RC Cola, & all the other juices, they take even water & tea as their competitors.

STRATEGIES OF QUALITY

After macro & micro analysis Brand “Coca Cola” is mainly role

1. Improve rivalry moments

2. When people do watch cricket

3. throughout commercialization

4. Enjoyable time

Because of these strategies there can be better understanding &better connection with the community. These are the “main consumption”.

THREATS FROM COMPETITORS

All of the Threats are well planned. The key threat is price. When the exact price whether comes down or goes higher that’s effects the consumption of carbonated drink. For the reason that when the price goes higher consumers go for the substitute of “coke” such as Pepsi. & when price goes down they think that there should be some thing wrong in that. In short that all depends on customer’s awareness.

TARGETS THAT WOULD LIKE TO ATTAIN

Survival of every organization is depending on profit. Thus Coke is also searching for a

maximum of profit margin. We could identify three major ways to earn profits.

•Over night profit

•Windfall profit

•Ethical and un-ethical ways

Over Night Profits

This is for the best brand for the year. This can be got increasing sales volume

Windfall Profit

They are the extras earnings. When the consumption is on boom. So, there are different types of profits.

Ethical and Unethical Ways

Profits can earn ethically or unethically. Company believes on this quote “Every thing is fare in love and war”.

Further they can earn profit through diverse approaches.

EXPANDING TARGET MARKET

In last 2 years Coca Cola came back very aggressively.

•Consumer has got choice •Attractive brand name •Brand differentiating

Consumer Has Got Choice

Consumers know the name of other big brand, even though Coca Cola is the 2nd best name but it can get the best place after some period.

Attractive Brand Name

Now buyers know the Name of Coca Cola, since Coke is the name that’s the

populist after the word “ok”. Thus consumers can better differentiate brands with others.

Brand Differentiation

Now different brands are available in the market. Thus, consumers can differentiate between brands. The best players “coke” and “Pepsi” also have some different kinds of brand names either.

Coca Cola’s Brand

Coca Cola think about the togetherness,” being people together and friends are being together”. Coca Cola hardly believes that Pakistani temperament is “us”

Pepsi’s Brand

They use the temperament of “me”. In contrast to Coke they do believe on individual struggle.

OPPORTUNITIES & THREATS FOR PRICE

Opportunities

There are some taxes company must pay such as

20% – excise duty

03% – In making Budge

15% – sales tax

27% – goes to government

Not only for taxes but for electricity chargers, distribution chargers, after paying all of those chargers the price of a coke can increase up & consumer have to pay these as taxes.

These are the opportunities through which we can increase the price and can get profits.

The Coca Cola Company gets those as their opportunities to increase the margin of rates as well as for increases their profits

Threats

There are some threats in increasing prices of products. If for instance, Coke increases for 1 rupee. Then people definitely will not go for Coca Cola they transfer to Pepsi. So these are the threats when coke increases its prices of products.

STRATEGIES OF GETTING GOALS

“HIGH PROFITS”

There are many ways That Coca Cola can increase its profits. Some key ways are as follows.

• increasing volume

•customers interest level

• join with energetic festivals

The way of increasing volume of consumers

Coca Cola can increase the consumer volume by expanding the Coke industry. By using advertisements, attract people towards this product by offering very attractive & interesting things.

The way of increasing the interest level of consumers

Increase the interest level of customers by using different flavors.

For instance Coke is increasing the flavors in “Fanta”, through offering different flavors Coke can enhance the Level of customers & these profits can be increased.

The way of joining energetic festivals

Coca cola is most of the time taking part in the festival such as “Basant” since during last 3 years. Coke erne high income & consumption of Coke is increased on these occasions.

In 2002 consumers were waiting that what interesting program

Coke is going to present.

MARKETING STRATEGY

Coca Cola’s domestic marketing strategy enables Coke to listen all people around the world asking for soft drinks that span the entire occasions & spectrum of tastes. What consumers want in a beverage is a reflection of who they are, how they work & play, where they exist, & how they relax &recharge. We are determined not only to make great drinks, but also to contribute to societies over the world through Coke’s commitment to, health, wellness, education & diversity.

Coke does its best to be a good neighbor, again and again shaping the business decisions to develop the quality of life in the communities in that do business. That’s a special object to have thousands of friends over the world, & they never forget that.

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MARKET POSITIONING

Product Range

The Pakistan total range of Coca Cola products

•Coke.

• Diet Coke.

•Fanta.

• Sprite.

And also company presents its products in different bottle sizes these includes

•PET 1.5 (1.5 litter plastic bottle)

•SSRB (standers size returnable bottle)

•NRB (no return bottle) or disposable bottle

•CANS (tin pack 330 ml)

•LRB (litter returnable bottle)

Packing

There are different kinds of packing available. Such as,

•6 bottle pack for 1.5 pets

•24 cans in one pack.

•12 bottles in a pack for disposable bottle

•24 regular bottle shell

PRICE STRATEGY

Trade Promotion

Coca Cola Company presents incentives to middle men or vendors in way that they gives them free models & free empty bottles, because of that retailers &middle man motivate to push their product in the sell & that’s the reason coca cola seen more in the market and they have a good sale in the market because according to the expert that product seen more in the market that sells more.

“Seen as sold”

The company makes agreements with a shop keepers & stores to special sale in those stores. These stores are mainly called as KEY accounts in local words. & the Coca Cola Company also invest large budget on these stores & gives them free samples & some time cash incentives & free bottles.

Various Price in Different Seasons Some times Coca Cola Company changes their productions prices according to that season. The best season for Pakistan beverage industry is summer. But for winter the scenario in totally posit. Reduce prices to maintain the sales & profit. But in general they decrease the prices of their1 litter glass bottle & pet bottles.

PROMOTION STRATEGIES

Getting shelves

They takes or do purchase shelves in big departmental stores & display their products in that shelves in that style that show product very clear & very attractive for the customers.

Eye Catching Position

Their salesman positions their freezers & their products in eye- catching places. Usually the company keeps freezers near the entrance.

Sale Promotion

Even company does sponsorships with various college & school’s cafes & sponsors their sports & many extra curriculum activities for catching market share.

Under the crown scheme (UTC Scheme)

Coca cola frequent do this type of scheme & they offer very attractive prizes in it. Such as once they offer bicycles, caps, cash prizes, tv sets etc.

DISTRIBUTION CHANNELS

There are two types of selling in Coca Cola Company

Direct selling

Indirect selling

Direct Selling

In direct selling they supply using their own transports. They have approximately 450 vehicles to distribute their bottles. Company earn more profit when they use this type of selling .

Indirect Selling

Company has its whole agencies & sellers to cover all the area. Even it’s so difficult to available the products to customers by their own distribution so they use the whole sellers and agent to distribute products to their consumers.

FACILITATING THE PRODUCT BY

INFRASTRUCTURE

For providing their productions in fine manner company provide infrastructure

Such as:

•Free empty bottles and shells for bottles

•Freezers

•Display racks

•Vizi cooler

ADVERTISEMENT

They use many medias

•Billboards and holdings

•Pos material

•Tv commercial

•Print media

Print Media

They frequently use print media for their advertising. There is a separate department in Coca Cola Company for print media.

POS Material

Point of sale material that includes: posters & stickers display in the stores & in different places.

TV Commercials

As everyone knows that TV is a very popular entertaining medium. So Coke Company does regular TV commercials on different channels.

Billboards and Holdings

Coca cola is more aware about their billboards & holdings. They have lots of sites in different regions for its billboards.

EXPECTATIONS FOR THE COMING YEAR

Every thing happens because of the consumer’s behavior. Company identified if they want to attract consumers they must throw the money away.

& positive felling with the brand, that they used to have Coca Cola wants to advertise its goods heavily in the next coming year. & it’ll take the 10% of their income. & when we do take it as an international level it is $ I billion.

Next year is the challenging year for the Coca Cola industry. They need to take a lot of decisions that how to enhance the production & where they have to spend money.

For success in coming year Coca cola need to have some special things such as:

1. Loyal customers are important for success of the company.

2. Workers need to be the brand focus not the promotion focus.

3. They need to understand how much for the brand purposes.

4. They must know that how much to do the promotion work for brand.

HOW COKE DECIDES THE ANNUAL BUDGET

Coke decides its annual budget by the,

•Sales volume

•Target volume

•Profitability

Sales Volume

Coke decides its annual budget through the volume of sales. They first think on “what’s the condition of its sales?” if the condition is fine of its sales then company certainly increase their production & sales If not they think on their older strategies.

Profitability:

The next thing that they decide budget is the “profit”. If Coke getting

profits with the higher border, then Coke definitely wants to increase their profits in the next

years. Every association runs on the basis of receiving higher profits. No the association

wants to face failure in their business. To erne profit is the first main concern of Coke.

Target Volume:

Each & every industry has some targets to run their business that they want to achieve in an exact time period. If industry reaches those goals in that period then for the next year it increases the amount of the target.

So Coke go after the same thing it has also some objectives & targets to complete in the given time schedule. When they succeed to reach that aim then they enhance their target volume in the future.

SALES PROMOTION ACTIVITIES

Coca-Cola Concerts

Coca-Cola Cricket

Coca-Cola Wonder of the World Promotion

Coca-Cola Food Mela

Coca-Cola Basant Festival

Coca Cola TV Mazza

Coca-Cola GO-RED

Coca-Cola Party in a Park

Coca-Cola Pet Promotion

Coca-Cola Ramzan Campaign

Coca-Cola & Nokia

Coca-Cola & Mc Donald’s

Fanta & Sprite Launched

Diet Coke

Coca-Cola Shopping Festival

CONCLUSION

Coca Cola without any doubt come the heart beat of Mexicans and Pakistanis.

The strategy & performance of Coca Cola is working for them the production is gaining attractive with youth daily in Mexico & Pakistan. After completing the report, concluded some sort of recommendation for the Coca Cola Company, as follows.

•Coca Cola Company should try to highlighting more on supplying their infrastructure in the market to treat their consumers.

•According to a survey, the organization that has dun the survey identified especially Pakistani people like little bit sweeter Coca Cola drink.

• Coca Cola marketing team should try to enhance the availability of Coca Cola products in ruralarias.

•Coca Cola should also focus the middle age & old citizens.

•Nowadays young population has a trend to have coke 2 regular bottles at same time, for providing them more satisfaction, company must sagest ½ liter bottle to the market.

There after by concentrating on that, Coca Cola Company can achieve their potential expected vision inside of the immerging markets.