Company background and overview of Coca Cola

Coca-Cola is one of the world famous and largest brands in beverages industry. The company was established Doctor John Pemberton who was a pharmacist in 1886 in Atlanta, Georgia USA. The brand has since become household drink in over 200 countries across the globe. Carbonate drinks are the single largest component in Coca-Cola Company which account for about 78% of the total volume sold in the 2008. The company has over 3000 beverages products and has about 500 brands in its portfolio these includes Coca-Cola/Diet Coke family, Coca-cola enterprise (CCE) wide range of carbonates includes Fanta, Lilt, Sprite and PowerAde, plus the Schweppes brand in the UK according to keynote report.

The ‘Coca-Cola’ brand has been adopted the strategy of global marketing. They are considering the whole world as single market place and uniform marketing strategy was being used Coca-cola for many years, but now the trend is changing and different marketing campaigns are being designed for different regions of the world. . Business decisions are made on a domestic basis to fit in with the culture and needs of the domestic community. In 1919 Coca-Cola decided it was time to go global. The Coca-Cola Company decided to take its operations beyond national boundaries and marketing research was started in central America, china and many other countries of the world. Because of successful and efficient marketing research Coca-cola was able to produce globally in different regions of the world

Coca cola in UK

The carbonate market in the UK is dominated by relatively few companies. These are, In the main, subsidiaries of global conglomerates such as the coca cola company and Pepsi CO. Indeed, Coca-Cola, BSD and own label alone account for well over two thirds of the carbonates market volume in the UK.The purpose sale of BSD, In which PepsiCo already has a 10% share, is likely to make one of the these groups even stronger in the UK market.

Coca -Cola Company’s major brand in the UK and in the world is coke or simply Coca-Cola. Other major brands of the Coca-Cola Company in the UK portfolio include Diet Coca-Cola, Cherry CoCa-Cola,Fanta,Lilt,Sprite,Dr Pepper and Schweppes.Dr Pepper,Wich has been on sale in the UK since 1982,is reported to most popular among the younger and teenagers in the UK.

The company’s operations in the UK are divided between CCE and Coca-Cola Great Britain (CCGB). CCE is the manufacturer and distributor, whereas CCGB owns the brands and is responsible for marketing. The company’s beverages are generally for all consumers. However, there are some brands, which target specific consumers. For example, Coca- Cola’s diet soft drinks are targeted at consumers who are older in age, between the years of 25 and 39. PowerAde sports water target those who are fit, healthy and do sport. Winnie the Pooh sipper cap Juice Drink target children between the ages 5-12.

Coca cola in Nepal

Coca-Cola was first introduced into Nepal in 1973, when it was imported from India, but local production would only begin in 1979, with the establishment of Bottlers Nepal Limited (BNL). Coca-Cola Sabco acquired bottling rights from The Coca-Cola Company for Nepal in 2004.

BNL, which has plants in the capital Kathmandu and Bharatpur, is the only bottler of Coca-Cola products in Nepal.

The Marketing, Sales and Distribution strategy for BNL is titled ‘Refresh the Marketplace’ and includes a robust Consumer Response System to address any consumer concerns, ideas and suggestions.

BNL is also committed to strengthening the community through various programmes, particularly in the health sector, as the country has the lowest per capita public health expenditure in the world. In association with the local community, BNL assists by supporting a Free Health Check-up Clinic at Bharatpur.

The Nepalese enjoy Coca-Cola, Fanta and Sprite

Advertisement

         If we look on advertising perspective of Coca-cola, advertising has created a demand for ‘Coca-Cola’ worldwide. However, advertising has to be in line with the domestic culture. An adapted marketing mix means adjusting the mix with the prevailing culture, geographic, economic and other differences in different countries. Different languages and cultures caused problems.

COCA COLA ADVERTISMENT

Add 1

Bottlers Nepal and Bottlers Nepal (Tarai) on lat week announced the launch of their summer promotion campaign “Coca-Cola Football Maha Utsab” targeting soccer fans across the country. .

According to Bottlers Nepal, consumers need to purchase Coca-Cola, Fanta or Sprite and SMS the 10-digit unique code under the bottle’s crown to 4477.

The scheme is applicable to all 200 ml and 250 ml returnable glass bottles or all sizes of PET bottles from April 1 to May 31, 2010. During the scheme period, consumers will also get a chance to win attractive Coca-Cola t-shirts, caps and free drinks, said Pranaya Sthapit, country marketing manager of Bottlers Nepal.

Coca Cola Advertisement in Rural Area of Nepal

Coca Cola Advertisement in Rural Area of Nepal, Wikimedia Commons

Figure: 1.1

Market Segmentation in Nepal :

The supplier driven Nepalese market generally practiced mass marketing approach with product variations in the past. The socio-economic changes and developments in transport and communication system have made Nepalese marketers conscious of market segmentation. The marketing strategies of global organizations like Coca Cola, Pepsi, Nepal Lever and Standard Chartered Bank have reinforced this consciousness.

The following points describe the practices of market segmentation in Nepal.

1: Non-systematic: Segmentation is generally not based on systematic market research. Past experiences, hunches of management and competitor’s strategy have influenced segmentation.

2: Variables for Segmentation: The variables mostly used for consumer market segmentation are:

Geographic

Demographic

Psychographic

Behavioural

3: Lack of Information: Nepalese marketers lack comprehensive information about consumer characteristics. They tend to regard marketing research as a “wasteful cost”. This has constrained the effective evaluation of market segments in terms of their attractiveness and appropriateness. Risks are not properly assessed.

4: Government Policies: Government policies in Nepal are not very supprotive of marketing. They do not regard businessmen as partners for development. Restrictions of movement of goods and controls have discouraged market segmentation.

5: Lack of Ethical Considerations: Environmental and welfare considerations are generally disregarded for market segmentation in Nepal.

The above points clearly indicate that the concept of market segmentation is at an initial stage in Nepal. However, the importance of market segmentation is likely to increase in the years to come

Positioning

Positioning is the process of creating, the image the product holds in the mind of Consumers, relating to competing products. Coca cola and Pepsi both make soft drinks, Pepsi may try to compete but they will still be seen as down market from

coke.

coke has been positioned based on the process of positioning by direct comparison

And have positioned d their products to benefit their target markets. 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.

Product life cycle:

When referring to each and every product or service ever placed before the consumer i.e. in the long term all the existing products and services are dead. For e.g.:- Replacement of Ford Cortina ( a highly successful car) by Ford Sierra, the replacement of sierra by the Ford

Mondeo and the replacement of the old Mondeo by the new Mondeo in 2001. So every product is born, grows, matures and dies. So in the commercial market place products and services are created, launched and withdrawn in a process known as Product Life Cycle.

To be able to market its product properly, a business must be aware of the product life cycle of its product. The standard product life cycle tends to have five phases: Development, Introduction, Growth, Maturity and Decline. Coca-Cola is currently in the maturity stage, which is evidenced primarily by the fact that they have a large, loyal group of stable customers.

Furthermore, cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determinant of profitability. In foreign markets the product life cycle is in more of a growth trend Coke’s advantage in this area is mainly due to its establishment strong branding and it is now able to use this area of stable profitability to subsidize the domestic Cola Wars. Insert the picture of the product lifecycle.

Future financial objective In uk

Coca-Cola Enterprises, the world’s largest bottler of Coca-Cola products which will soon be focused purely on some of the largest but also most mature soft drinks markets in Western Europe, is optimistic about the long-term growth prospects for this territory. The group aims to achieve in currency neutral terms: revenue growth of 4% to 6%; operating income growth of 6% to 8%; earnings per share growth in a high single-digit range; and return on invested capital improvement of 20 basis points or more per year.

“These metrics reflect the solid growth opportunity that lies ahead in Europe,” says John Brock, chairman and chief executive of Coca-Cola Enterprises. “They exceed our current long-term objectives. We are committed to these financial objectives, and in turn, to creating real value for our shareowners, our customers, and our employees.”

Financial Market share of coca cola in uk.

Coca-Cola has reported strong second-quarter profits, beating market expectations, thanks to rising international sales.

Total profits were $2.37bn (£1.56bn), up 16% from a year ago and narrowly above forecasts of $2.3bn.

The beverage maker’s share price jumped 2.3% in the first 15 minutes of New York trading.

Revenues were up 4.8% to $8.67bn, thanks to rapid sales growth in Latin America, Africa and parts of Asia.

Among the best growth markets were Brazil, where sales volumes were up 13%, and India, up 22% since last year.

The producer of Fanta, Sprite and Vitamin Water also reported a pick-up in growth – albeit at a more sedate 2% pace – in its home market of North America.

In Europe, however, sales were down 1

http://www.bbc.co.uk/news/business-10716077, 21 July 2010 Last updated at 15:42

Competitors Analysis

Coca-Cola Enterprise is the UK subsidiary for the Coca-Cola Company. In 2008 UK

carbonate was valued about £6billin; with which Coca-Cola (GB) hold about 60% value in

both retail and on-trade. Britvic soft drink which is UK subsidiaries of PepsiCo and is the

main competitor was second place in terms of market shares of 15% retail sales according

to mintel. PepsiCo’s flagship brands in soft drinks are Pepsi, Pepsi Max, Diet Pepsi,

Gatorade and Mountain Dew, and the company also owns Tropicana and Dole, the world’s

leaders in fruit juice. GlaxoSmithKline PLC, a giant in healthcare products, is the UK third

largest carbonate drink and is also on a different scale from most drinks companies. The

company specialised in medicines and oral care, as well as three famous drinks brands:

Lucozade, Ribena and Horlicks.

CCE, had a turnover of £1.43bn in the year ending 31st December 2006, up 2.4% on the previous year whereas For the year ending 30th September 2007, Britvic PLC recorded total branded revenues of £716.3m, up by 5.7% on 2006.

According to John Sicher of Beverage Digest (2009), Coca-Cola was the number one brand

with around 42.7% in 2008. PepsiCo was second, with 30.8%, however these market shares

for both Coca-Cola and PepsiCo have slightly decreased from 2007 to 2008. Coca-Cola’s

volume has also decreased 1.0% since 2007, whereas PepsiCo’s volume has increased

0.3%. Strong growth of Coke range in the UK is probably due to the introduction of coke

zero and Diet coke product. Coke Zero is the most significant of KO’s new innovations. This

beverage is marketed as a “calorie-free” version of Coca-Cola Classic, omitting the diet label

in an attempt to appeal to new demographics. This brand alone accounted for nearly one

third of all 2006 growth for beverages bearing the Coca-Cola trademark.

http://ivythesis.typepad.com/term_paper_topics/2009/08/strategic-analysis-coca-cola.html

RECOMMENDATIONS

After 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 a coke 2 regular bottles at same

time, so providing more satisfaction to them company should introduce ½ liter

disposable bottle.

Coac- Cola Market Share

The UK’s Top 10 Soft Drinks by take-home sales value in 2009.

Coca-Cola.

Lucozade (GlaxoSmithKline).

Robinsons (Britvic).

Pepsi (Britvic).

Tropicana (PepsiCo) 

Red Bull.

Ribena (Glaxo SmithKline).

Schweppes (Coca-Cola).

Actimel (Danone).

Volvic (Danone

Source: Nestle

Worldwide

The Top 10 Soft Drinks Companies in 2009 by market share.

Coca-Cola (& bottling partners)

PepsiCo (& bottling partners).

Nestle.

Suntory.

Dr Pepper Snapple.

Red Bull.

Danone.

Kirin.

Asahi Breweries.

Ito En.

Coca-cola is number one for the 11th year

http://www.financenews.co.uk/uncategorized/coca-cola-still-on-top-of-the-world/

(note;i need to search and type on this id)

For 11 straight years, Coca-Cola has retained its spot as No 1 in Interbrand’s annual ranking of the ‘100 Best Global Brands’ followed by IBM, Microsoft, Google and GE.

The 2010 report estimates the Coca-Cola brand value at $70.5 billion, up by two per cent since 2009, said the Interbrand that uses a combination of analysts’ projections, company financial documents and its own qualitative and quantitative analysis to arrive at a net present value.

Top 5 Global brands in 2010

Rank

Company

Brand Value

1

Coca-Cola

$70.452m

2

IBM

$64,727m

3

Microsoft

$60,895m

4

Google

$43,557m

5

GE

$42,808m

The Himalaya Times ,Added At:  2011-02-14 12:18 AM

The market share of Coca Cola and it’s rival Pepsi might be 50-50 in many parts of the world but when it comes to Nepal, the market share structure would be 3:1. The factor which needs to be credited for this data of Coca Cola’s market share cannot be determined that easily. As far as I know, the factors could be, the management and the quality it has maintained. The company with the largest paper work in Nepal had Bottlers Nepal, the sole distributor for Coke in the second spot. This also proves that the management is good and the quality maintenance needs no description at all.

There were ups and downs in Coke. A couple of years or so, the workers went on for a strike all over Nepal in Bottler’s Company resulting the distribution and production into halt. To worsen this case, this halt was in existence in the peak season which was finally solved.

The year 2008 could be different and nothing is predictable. The number one spot could be snatched by Microsoft in this present age of information technology. If only Coca Cola could come up with some beverage for chilling cold with the same brand, who knows they might still be at the number one spot for the next ten years or so.

Friday, January 11, 2008 |

The carbonate market in the UK is dominated by relatively few companies. These are, In the main, subsidiaries of global conglomerates such as the coca cola company and Pepsi CO.Indeed, Coca-Cola, BSD and own label alone account for well over two thirds of the carbonates market volume in the UK.The purpose sale of BSD, In which PepsiCo already has a 10% share, is likely to make one of the these groups even stronger in the UK market.

Financial objectives

On September 7, 2010, CCE announced updated long-term financial objectives, including the following:

Revenue growth of 4 percent to 6 percent;

Operating income growth of 6 percent to 8 percent;

Earnings per share growth in a high single-digit range; and

Return on invested capital improvement of 20 basis points or more per year.

Coca cola market share by area

Area

NORTH AMERICA

LATIN AMERICA

EUROPE &MIDDLE EAST

ASIA

AFRICA

Volume

30%

25%

22%

17%

6%

RANKING

1

2

3

4

5

Figure: 2

Sources: Business plan on coca-cola 8/8/2010

MARKETING STRATEGY

Our local marketing strategy enables Coke to listen to all the voices around the world

asking for beverages that 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.

Processes of Communication in a coca-cola

The process of communication would be as follows: Message conceived – decision made to send message and reasons why. Message encoded – information for notice and what sort of layout is going to be used etc. Communications medium selected – communication method selected, in this case notice. Message decoded – language and knowledge used to send out the right message. Message interpreted – meaning of notice, recipients’ view. Feedback supplied – feedback supplied to sender e.g. opinions, response etc.

Sample of communication process of coca-cola

N

N

Massage . Feedback

Figure: Schramm (1955)

Note:Communication process copy from book

http://books.google.co.uk/books?id=KKp3Hg5vmVsC&pg=PA276&dq=marketing+communication+theory+/coca+cola&hl=en&ei=69phTZj6G9HssgbEqKC2CA&sa=X&oi=book_result&ct=result&resnum=3&ved=0CD4Q6AEwAjgK#v=onepage&q=marketing%20communication%20theory%20%2Fcoca%20cola&f=false

Coca-Cola market share and sub product in Nepal

Bottlers Nepal said it is planning to invest $10m in the next three years to expand its bottling operations and launch a brand of mineral water for the market.

The bottler of Coca-Cola in Nepal will use the funds to modernise its bottling plants in Kathmandu and Bharatpur.

The company, which posted a 20% growth in 2009, said it will start manufacturing the Kinley brand of mineral water following standards prescribed by the World Health Organization (WHO).

Coca-Cola Sabco, one of Coca-Cola Company’s bottling partners, has invested about $45m in the last five years, and annually produces one million bottles of carbonated soft drinks.

Coca-Cola has a 67.8% market share in Nepal’s carbonated soft drinks business, according to global marketing research firm ACNielsen.