Post on 22-Apr-2015
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MARKETING PLAN OF COKE DIET IN BANGLADESH
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Marketing Management
Course Code: 511
Submitted To:
Dr.Belayet Hossain
Professor
Department of Marketing
University Of Dhaka
Submitted By:
Md.Riazul karim khan
Section-B; Roll-016
MBA 13th Batch,
Department of Marketing
University Of Dhaka
Submission Date:
19th February, 2012
Department of Marketing
University Of Dhaka
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Group Members……………………….AUDACIOUS
Name Roll
Shahidul Islam 004
Riazul Karim Khan 016
Ashim Kumar Dey 034
Shafiqul Islam 058
Shipon Kumer Das 108
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The following marketing plan forms the basis for the introduction of an innovative new
product by the Coca-Cola Company. The analysis allows us to outline the best strategies to
follow for the achievement of the company’s strategic goals. “COKE DIET” will be marketed
as a unique functional drink while striving to reinforce the company’s status as the leader
in innovation and successful product launches. It will focus on the niche market of
beverage tire that are unable to have beverages with sugar mostly the health conscious
consumer will be focused for its marketing planning. Success will be reflected by a sizeable
capture of market shares within this market, while strategically carrying the company up to
the top spot as the market leader in the functional drinks segment of soft drinks.
Table of contents…………
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Table of contents
COMPONENTS Page No.
Executive Summary
Table of Contents
Organizational History
Mission Statement
Coca-Cola company in Bangladesh
Situation AnalysisIndustry AnalysisSWOT Analysis
Environmental AnalysisMacro EnvironmentMicro Environmental
Market Segmentation, Targeting & PositioningMarket SegmentationTargeting & Positioning
Using 4P's of MarketingProductPricePlacePromotion
Conclusion
1
5
7
1011
1313
1415
16171718
19
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The Coca-Cola Company started out as an insignificant one man business and over the last
one hundred and ten years it has grown into one of the largest companies in the world. The
first operator of the company was Dr. John Pemberton and the current operator is Roberto
Goizueta.
Coca-Cola was invented by Dr. John Pemberton, an Atlanta pharmacist. He concocted the
formula in a three legged brass kettle in his backyard on May 8, 1886. He mixed a
combination of lime, cinnamon, coca leaves, and the seeds
of a Brazilian shrub to make the fabulous beverage.
Coca-Cola debuted in Atlanta's largest pharmacy,
Jacob's Pharmacy, as a five cent .non-carbonated beverage.
Later on, the carbonated. water was added to the syrup to
make the beverage that we know today as Coca-Cola.
Coca-Cola was originally used as a nerve and brain tonic
and a medical elixir. Coca-Cola was named by Frank Robinson, one of Pemberton's close
friends; he also penned the famous Coca-Cola logo in unique script. Dr. John Pemberton sold
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a portion of the Coca-Cola Company to Asa Candler, after Pemberton's death the
remainder was sold to Candler.
Pemberton was forced to sell because he was in a state of poor health and was in debt. He
had paid $76.96 for advertising, but he only made $50.00 in profits. Candler acquired the
whole company for $2,300 (freshkizzz,sep, 2004 ). Coca-Cola was the world’s largest
manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups,
with more than 400 widely recognized beverage brands in its portfolio. With the bubbles
making the difference, Coca-Cola was registered as a trademark in 1887 and by 1895, was
being sold in every state and territory in the United States. In 1899, it franchised its bottling
operations in the U.S., growing quickly to reach 370 franchisees by 1910. Headquartered in
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Atlanta with divisions and local operations in over 200 countries worldwide. Coke’s first
international bottling plants opened in 1906 in Canada, Cuba, and Panama. By the end of
the 1920’s Coca-Cola was bottled in twenty-seven countries throughout the world and
available in fifty-one more. Coca-Cola continued working for over 80 years on Woodruff’s
goal: to make Coke available wherever and whenever consumers wanted it, “in arm’s reach
of desire.”The Second World War proved to be the stimulus Coca-Cola needed to build
effective capabilities around the world and achieve dominant global market share. From the
beginning, Coke understood the importance of branding and the creation of a distinct
personality.18 Its catchy, well-liked slogans19 (“It’s the real thing” (1942, 1969), “Things
go better with Coke” (1963), “Coke is it” (1982), “Can’t beat the Feeling” (1987), and a
1992 return to “Can’t beat the real thing”) 20 linked that personality to the core values of
each generation and established Coke as the authentic, relevant, and trusted refreshment of
choice across the decades and around the globe. In 2002, the company has launched new
brand product including Diet Lemon Coke, Vanilla Coke and large varieties of fruit taste Fanta
including lime, grape, strawberry and passion fruit in Australia. The company has also
acquired many new international water brands such as Danone Waters, Sparklettes,
Alhambra and Evian brands in US. They also continued collaboration with the Walt Disney
Company to market children's soft drinks. Coca-Cola Company Limited has invested a huge
amount in marketing campaign to support their brands. The aims for these campaigns are to
enhance the consumer awareness and consumer preference for a certain brand. As a result,
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Coca-Cola Co. has maintained a long-term growth in profitable volume and large market
share in the worldwide non-alcoholic beverage market.
In 1985, the Coca-Cola Company made what has been
known as one of the biggest marketing blunder.The Coca-
Cola Company stumbled onto the new formula in efforts to
produce diet Coke. They put forth 4 million dollars of
research to come up with the new formula. The decision to
change their formula and pull the old Coke off the market
came about because taste tests showed a distinct preference
for the new formula.The new formula was asweeter
variation with lesstang,it was also slightly smoother(Demott
54). Now-a-days Coca-Cola Company has 1,39,600 employees worldwide. They’ve
more than 3500+ beverages worldwide based on 500 brand names. And they’ve 125
years of glorious operational history. Around the world this company serves 1.7 billion
customers per day. (www.thecoca-colacompany.com)
The Coca-Cola Company is centered around three objectives:
To stay at the forefront as the market leader in innovative product introductions and
successful product launches;
To strengthen and satisfy the needs of the more adventurous Generation Y consumers
with a new eye-catching and functional product;
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To become the market leader in the functional drinks segment with increased market
shares.
The Mission Statement of the Coca Cola Company
Our mission statement is to maximize shareowner value over time. In order to achieve
this mission, we must create value for all the constraints we serve, including our
consumers, our customers, our bottlers, and our communities.
The Coca Cola Company creates value by executing comprehensive business strategy
guided by six key beliefs:
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1. Consumer demand drives everything we do.
2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink
beverages they want to drink throughout the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We will lead as a model corporate citizen.
The ultimate objectives of our business strategy are to increase volume, expand our
share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-
term cash flows, and 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
customer’s business and needs, whether that customer is a sophisticated retailer in a
developed market a kiosk owner in an emerging market.
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There are nearly 6 million people in the world who are potential consumers of our
company’s product. Ultimately, our success in achieving our mission depends on our ability
to satisfy more of their beverage consumption demands and our ability to add value for
customers. We achieve this when we place the right products in the right markets at the
right time.
The Coca-Cola Company in Bangladesh
In Bangladesh Coca-Cola Company is controlled by CCFL (Coca-Cola Fareast Ltd), Atlanta
USA. Coca-Cola was first introducing at 1963 in Tejgoan Industrial area under East Pakistan
organization in Bangladesh. At 1972 Bangladesh
government took over the company under ministry of
industry.In 1972 government handover it to the “Mukety
Jodda Kallan trust” as an abounded property form
ministry of industry. At 1972 Coca-Cola
Company had a 50 bottle per mint (BPM) plant. Area was the company approximately 1
acre. At 1985 Coca-Cola Company established 470 Chiriakhana Road by implementing
new 250 bottles per mint (BPM) plant. Because of market expunction and increase
consumer demand Coca-Cola Company introduce another 500 bottle per mint (BPM)
plant with existing production line. At percent its total production poIr is 750 BPM (bottle
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per mint).Now its total factory area 7.25 acre approximately. Tabani beverage produces
175 ml, 250 ml, 50 ml and 1000 ml glass bottle. They supply Coca-Cola soft drinks to
Dhaka and Rajshahi divisions.
There are another franchisee of Coca-Cola Company is Abul Monem company ltd. In
1982 Abul Monem started their operation after they acquired the plant of K. Rahman &
Company. In 1987 the company made an aggressive move to expand their market. They
installed new H & K bottling line along with and installed capacity of 450 BPM at Comilla.
Furthermore the company established another plant Chittagong. The state of the art bottling
plant with an installed capacity 600 BPM is the most modern plant in the country and is
equipped with the straight-line-technology from KHS German. Abul Monem produces the
PET Bottles, CANS and GLASS Bottles of a newly introduced product. Now-a- Days Abul
Monem company is operating the major portion of Coca-Cola Company in Bangladesh.
They are promotion the product of the Coca-Cola Company around the whole country.
Tabany beverage and Abul Monem company introduces the new way of advertising in this
country for promoting their product. They’ve introduces the shopping cart or van in this
country which gives the customer the opportunity to have their soft drinks from anywhere in
the country. They also provided refrigerator in different shop in Bangladesh to promote their
product.
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Recently in 2011 Coca-Cola Company establishes its corporate office at Gulshan in
Dhaka. From this year they are monitoring the supply system and the promotion by their
own and in collaboration with Pran Group.
Product Information
In Bangladesh Coca-Cola Company is operating with its soft drinks. The product of this
company is:
The Coca-Cola (Classic)
Sprite
Fanta
New introduction in product line will be:
COKE DIET
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INDUSTRY ANALYSIS
In Bangladeshi beverage market it is in the top position. It is gaining its renowned world
reputation. From last couple of years for lacking of distribution it had to face so bad position.
Recently they gave the distribution to another giant company in Bangladesh PRAN Group. In
Bangladeshi industry of beverage they face two another competition. One is PEPSI , which is
distributed by Transcom Beverage Bangladesh Ltd. Another is RC Cola, which is distributed
by Partex Beverage Group. Recently they are facing another competitor MOJO from Akij
Beverage Ltd. This industry is so many complexes with lots of other beverage like juice,
energy drinks, water and lemonade. Recently for assessing a giant distributor they are in the
facility of using their supply chain, so that it is now in the position of just-in-hand as it was in
past. Now in days they are in the situation in market leader again.
SWOT ANALYSIS
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Strengths WeaknessesBrand strengthEffective stride in new marketsResults of operationsStrong existing distribution channels
Reliant upon line extensionsReliant upon particular carbonated drinksEntrance into difficult non-core categoriesSaturation of carbonated soft drink segment
Opportunities ThreatsNew product introductionsBrand is attractive to global partnersA profitable niche market
Strong competitionPotential health issuesFree tradeThe number of target people
The brand value is creating a vast opportunity of coca-cola in worldwide. The unique taste of
refreshment and the feeling of coke happiness create a positive emotion in the mind of
target customer. The competition from RC Cola was in the leading position in last couple of
years. They had a high market share due to the weakness of distribution from coca-cola last
years. A marketer challenger MOJO has invented by focusing the market without the coca-
cola distribution. Now the PEPSI is in the position of challenger. Coke must take necessary
steps to capture new market and update its management and distribution time to time. It
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need to capture new market segment which can be achieved by some nicer. Coke Diet can
be introducing in Bangladesh as a new product line to gain an extra facility.
ENVIRONMENT ANALYSIS
Every business has some limitations or facilities which it gains from its environment. In
Bangladesh the market is highly competitive. Here the organization like coca-cola has unique
features which provide it's a huge facility. But in this country it is not operating directly
rather it is operating with the help of some local distributors. Some times for the lacking of
that distributor coke need to face on huge loss. They were in hiding position due to their
lacking of distribution in last couple of years.
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MICRO ENVIRONMENT
The company, suppliers, marketing intermediary, competitors, public, and customers are the
elements of micro environment. In Bangladesh coke has another giant competitor PEPSI.
Without these it has some other competitor RC Cola, MOJO, BUBBLE UP, Jomjom Cola. These
are in the point of direct competition. Some energy drinks and bottle water are also in its
competition situation. The market is highly competitive with distribution and pricing. So a
slight pricing change or an excellence in distribution creates a lot of changes in the market
share. For being too profitable coke need to make its market strategy and strategic planning
efficiently. Marketing intermediaries like PRAN Group is one of the giant is in now duty for
solving all kinds of distribution.
MACRO ENVIRONMENT
Demographic environment, technological, economic, natural, political and social, cultural
environment are the elements of macro environment. In Bangladesh for demographic reason
here so many health conscious consumerare situated. They need some drinks to get refresh
but all are not suitable for them due to using sugar. COKE DIET is the best solution for them.
Economic condition of the people of this country is in the position to buy this product like
they are purchasing COKE CLASSIC. So here a huge market lies to be served and company can
earn a lot from targeting those segments.
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MARKET SEGMENTATION, TARGETING AND POSITIONINGMARKET SEGMENTATION
Segmentation variables and breakdowns for COKE DIET in BANGLADESHMAIN DIMENSIONS VARIABLES BREAKDOWNS
Region BANGLADESH, SOUTH ASIAArea size 1,47,570Sq kmDensity Urban, suburban
Age All works of life, mostly 20-50Gender Male and FemaleOccupation All levels of people, mostly graduation Education Elementary 4th grade, High school, CEGEP and UniversityRace AllHome ownership
Renting apartment/condo, living with parents(Highly discretionary in personal spending)
Personality Brand conscious, HEALTH CONSCIOUS, anchored in popular culture, inclined for differentiation and sophistication, very tolerant towards multiculturalism and internationalism (open-minded), quick maturation with modern products
Lifestyle Most of them dependent on own earnings, students also, highly influenced by peer groups, active life, importance of school, work and social life
Benefits sought
COMMUNICATION BENEFITS-Nutritional information-Informational text on history of productFUNCTIONAL BENEFITS-Healthier than soft drinks-Convenient, easy to take outPERCEPTUAL BENEFITS-Quality/Premium price-Social standing/good-looking
Usage rate Seasonal (peak in summer), daily-basis, weekly basisUser status Non-user, regular user (current user through existing bar-
shops)
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MARKET TARGETING AND POSITIONING
This is a good niche market were we can invest with this product. So that it can create a good
impression to the customer and also creates a huge profit for company too. We need to
identify the people first from the segment which one segment we want to serve. Then we
need to focus on company mission statement. By focusing on the vision and the motive to
capturing the market share we need to come up with the solution made by the promotional
strategies. Personal presentation will be the best promotional activities here to solve the
problem of informing the customer about the product.
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USING 4P'S OF MARKETING
PRODUCT
The product is coca-cola diet is focused in this marketing planning. The coca-cola company
has more than 400 products in world wide. They are just in the market leader in the global
village. Coke is going to introduce in Bangladesh to create a market share from the deprive
people of Bangladesh. They are running here with product
The Coca-Cola (Classic)
Sprite
Fanta
New introduction is…….
DIET COKE
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PRICE
The pricing is the most important challenging in terms of marketing a new product.
Competition also creates a huge change in the pricing decision. The leader also need to
make the pricing based on the market demand and competitor's competitive strength. To
make a product more and more profitable each and every company needs to come up with
the solution with pricing effectively. Without an effective pricing they can't be profitable.
For Diet Coke the price must be in a position that everyone
can purchase it. Mainly for the beverage the price penetration strategy is taken everywhere.
PLACE
The whole country will be the market. There would be no demographic bindings so that each
and every people needs this can buy and have a good refreshment. It will also make the best
use of the production, distribution and market share capturing.
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PROMOTION
Coca-cola takes a lot of advertising activities all over the world in every year. They've lots of
billboards. They also use television media for their advertisement. In Bangladesh they mainly
advertise in newspaper and television. For promoting their product they also use on shop
advertisement. They provide the refrigerator to the shop and also make ensure the space in
shelves for decorating their product .
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Based on the aforementioned analysis, COKE DIET appears to be a
profitable and innovative product with a strong outlook for
market share presence and segment growth opportunity. Upon
implementation of the marketing plan, the Coca-Cola Company will regain
increased market shares and claim its targeted situational position of market leader in the functional
drinks segment as well as keeping its long-standing consumer recognition for innovative and
successful product launches in diversified markets.