Brand Analiysis of Coca Cola 3

8/8/2019 Brand Analiysis of Coca Cola 3

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MUHAMMAD WAQAS RANA .

E-MAIL ADDRESS: [email protected]

Mobile No . 0321-7029616

Introduction

Coca-Cola was invented in May 1886 by Dr John S. Pemberton. It wasinitially sold via a soda fountain and turned over dollars 50 in its first year - a far cry from

the one billion drink products now sold each day by the Coca-Cola Company.

Headquartered in Atlanta, Coca-Cola sells more than 230 differently branded

drinks in nearly 200 countries. It employs 31,000 people across its five main geographic

areas. In the UK, Coca-Cola sells more than pounds 2 million-worth of drinks every day,

three times that of its nearest rival Pepsi.

History

Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company,

a drugstore in Columbus, Georgia by John Pemberton, originally as a coca

wine calledPemberton's French Wine Coca. He may have been inspired by the

formidable success ofVin Mariani, a European coca wine.

In 1886, when Atlanta and Fulton County passed prohibition legislation,

Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of

French Wine Coca. The first sales were at Jacob's Pharmacy inAtlanta, Georgia, on May

8, 1886. It was initially sold as a patent medicine for five cents

[

a glass at soda fountains,which were popular in the United States at the time due to the belief thatcarbonated

water was good for the health. Pemberton claimed Coca-Cola cured many diseases,

including morphine addiction, dyspepsia, neurasthenia, headache, and impotence.

Pemberton ran the first advertisement for the beverage on May 29 of the same year in

theAtlanta Journal.

By 1888, three versions of Coca-Cola sold by three separate businesses

were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in

1887 and incorporated it as theCoca Cola Companyin 1888. The same year, while

suffering from an ongoing addiction to morphine, Pemberton sold the rights a secondtime to four more businessmen:J.C. Mayfield, A.O. Murphy, C.O. Mulley and E.H. Blood

worth. Meanwhile, Pemberton's alcoholic sonCharley Pemberton began selling his own

version of the products

John Pemberton declared that the name "Coca-Cola" belonged to Charley,

but the other two manufacturers could continue to use theformula. So, in the summer


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of 1888, Candler sold his beverage under the names Yum Yum andCoke. After both

failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in

order to force his two competitors out of the business. Candler purchasedexclusive

rights to the formula from John Pemberton, Margaret Dozier and Wool folk Walker.

However, in 1914, Dozier came forward to claim her signature on the bill of sale had

been forged, and subsequent analysis has indicated John Pemberton's signature was most

likely a forgery as well.

Mission of coca cola

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

Coca cola Visioncoca cola 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.

y People: Be a great place to work where people are inspired to be the best theycan be.

y Portfolio: Bring to the world a portfolio of quality beverage brands thatanticipate and satisfy people's desires and needs.

y Partners: Nurture a winning network of customers and suppliers, together wecreate mutual, enduring value.

y Planet: Be a responsible citizen that makes a difference by helping build andsupport sustainable communities.

y Profit: Maximize long-term return to shareowners while being mindful of ouroverall responsibilities.

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

Our Winning CultureOur Winning Culture defines the attitudes and behaviors that will be required

of us to make our 2020 Visi on a reality.


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Coca cola chart

Type Soft drink (cola)

manufacturer The coca cola

company

Founder Johns.pemberton

Country of origin United statesIntroduced 1886

Area served Over 200 countries

Color Caramel E-150d

Flavors Cola, cola green tea,

cola lemon, colalemon lime, diet

coke

Related products Pepsi,RC cola , zem

zem cola, Mecca

cola, virgin cola,

sandy cola

employees 92,800

Servings per day 1.6 billion


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M

arket position of coca cola inPakistan.

On global kevel Coca-cola is the most popular brand and market leader

controlling 60% of market share. In Pakistan Coca Cola is the market follower but still in

a very strong and stable position holding 36% of the local market with a growing and

increasing market share every year.

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 and many more . They are also keeping the localmarket 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 flavors in Pakistan.

Psychographics Segmentation andMarket tends.

it has small returnable glass bottle, for the mediocre class it has Coke tin, some-

time for the promotion Coke Segments different income levels by packaging, Like for

people with a low level of income , 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.

Research analysis indicates that youngsters love to get together and it is when they

are enjoying them selves that will consume Coke.

For Pakistani youth, socializing with friends and family is core behavior in their

lives. At time Coca Cola in the seeks to promote its self through sponsoring events, Since

many years basant festival has somewhat Becomecoke Festival


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Market Behavior.

The behaviors of Pakistani market has always been oriented on what cold gets sold

People normally focus on buying any thing that is cold either Pepsi or Coke.

The market behaviors in Pakistan has not changed a lot as people are not entirely health

sensuous but over a few years due to increasing awareness of obesity. People have

adopted an alienated behaviors to soft drinks which is why Coca Cola inch, has provided

them with the perfect solution i-e provided a product exactly when it is needed yes we

are talking about Diet coke

Coke:Introduced in 2001 to meet the growing market needs

Growth rate Coca Cola.

In Pakistan market the growth rate is 22% which is a significant rate. Similarly In

Asia region the amount of revenues which company earn is 5052 dollar.

Market Share.

Coca cola has doubled its market share in Pakistan, in recent years its market share

was 16% but in 2007 its market share increased up to 36%, on the other hand its

competitors share is going down day by day.

Coca Cola is world leader in beverages, and is on the way to success in Pakistan and

has crossed the Pepsi last year..

Major factors influencing the level of demand of the product

There are a lot of factors that affect the demand of the product. The list of these

factors is given below

Price:-

Price is the major factor that affects the demand of the product. If the price Is not suitable

to the consumers or customers than they will switch of the product.

Quality :-


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If a company provides the quality services or products than the demand of the

product also increases. In the quality of the product the consistency in the performance

of the product is very important.

Supply:-

Supply and the demand of the product are the market forces and played the

main role in the product demand. If the supply of the product decreased than in some

cases the demand of the product increase as well as the price f the product can also

increased.

Taste:-

Taste of product is the major factor that affects the demand of the product.

Like if the product is of good taste than the future demand of the product will increase

and vise versa. If customers dont find the taste of product according to their taste, thanthey will not buy that product in future.

Number of users:-

If the number of users increase in the market than the demand of the product

also increases.

Income:-

Income level of the customers had a great impact on the demand of the

product. It directly relates to the purchasing power of the customer. If customer has a

purchasing power than definitely he can buy the product which he/she demand.

Competitors:-

Competitors are the biggest threat to the demand of product. If competitors

offer the same products as the company offers than the customers got more

alternatives. So increased alternatives, increases the bargaining power of the customers

and they can switch of to more suitable product.

Can the market be broken down in to segments?

The coca Cola has a wide range of consumer. Though its market is very largeand almost all are f its customers regardless of age and gender but the youngsters are

its the largest most favorable target audiences. This is the reason they choose

youngster in their advertisement as well.


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Company can also largely focus on youngsters to set the target market. But

their current strategy is most suitable because customers regardless of age factor like

Coca Cola as soft drink.

Market AnalysisThe market analysis investigates both the internal and external business

environment. It is vital that Coca cola carefully monitor both the internal and external

aspects regarding its business as both the internal and external environment and their

respective influences will be decisive traits in relation to Coca s success and survival in

the soft drink industry.

Internal Business EnvironmentThe internal business environment and its influence is that which is to some

extent within the business control. The main attributes in the internal environment

include efficiency in the production process, through management skills and

effective communication channels. To effectively control and monitor the internal

business environment.

External Business EnvironmentThe External business environment and its influence are usually powerful

forces that can affect a whole industry and, in fact, a whole economy. Changes in the

external environment will create opportunities or threats in the market place Cocacola must be aware off.

Snatching away customers

In the market Coke has been able to snatch large customer like Food, Street,

Pakistan Railways McDonalds as well as Sponsorship events from Pepsi mainly due

to its superiority in the following areas.

Cost:

It is very economical, justifies performance,

Quality:

No quality compromise, get the best all over Pakistan at any cost

Innovation:


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New ideas for billboards design, sponsorship, changing their slogans time to time.

According to the needs of the market.

Speed:On time delivery in all over the Pakistan.

Advertisement OfCoke

The Coca-Cola Companyis the world's biggest drinks company, controlling more than half

the global market in carbonated soft drinks as well as a substantial chunk of the non-

carbonated segment. It owns four of the world's five best-selling soft drinks. Its principal

brand is of course Coca-Cola itself, the world's best-known and most valuable brand. Butthe company also sells almost 500 other beverage brands ranging from variants like Diet

Coke and sister products such as Fanta and Sprite to a vast range of carbonated and non-

carbonated juice-based drinks, bottled waters, iced teas and coffees. Increasingly Coca-

Cola has found that its sheer size works against it. Competition authorities now watch

the company's every move, while market saturation and economic downturns in both

emerging and mature markets caused sales growth to stall for more than a decade.

Since 2006, though, the company's performance has begun to sparkle once again.

Advertising Age estimated global measured advertising expenditure of $2.44bn in 2009,

making Coca-Cola the world's #6 advertisers. Coca-Cola is a heavy user of sponsorship, from

the soccer and rugby World Cups to the Olympic Games, which has been sponsored by the brand

since 1928.See also:


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SWOT Analysis

INTRODUCTION:-

SWOT Analysis is basically stood for strength weakness opportunity

and threats. The beneficial company is necessary based on SWOT analysis.

Strength Weakness Opportunity Threats

Strength :-

The company is in the conditions of strength. When the internal and externalenvironments are favorable for the business.

The examples of cola cola are following.

y Coca-cola is the worlds valuable brand and has strong brand loyalty.y Coca-cola is the dominated market leader of the global soft drink industry rights

through the 20th

century.y Coca-cola has a large number of shares in the market.y The company has strong financial position and profit through out the history its

average of ROA(return on equity) for the last five year is 37.08% andits

ROC(return of capital)is 33.6%

y Coca-cola has large number of loyal customers and brand equity all over theworld.

y Coca Cola Logo is very famous among the people.Weakness :-

The company in the condition of weakness when the internal andexternal

environments are not favorer in the business.The following examples are written down.

y New cock formula leading to a black lash. Which result in bad image of coke.y The company is facing high burden of external debts for the year in2002.long

term debts of the company was 2700 million dollars.

y Coca-cola has taken less aggressive market stand-in In todays changingeconomics surroundings.


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y In November 2009, because of a dispute over wholesale price of coca-cola goods,cost blocked the replenishment of their shelves with diet coke and coke.

y Lack of innovation.Opportunities:-

All those works which are helps to company for increasing tree profit and

goodwill are known as opportunities.

y The advertisement are the great opportunity for coca-colay Consumer prefers to drink new smaller beverage products that are not sold on a

mass scale.

y One of the biggest opportunities is to diversify into the non-carbonated drinksuch as coffee, water, juice and etc.

y The company can offer the hygienic products due to increasing number of healthconscious consumers.

y The economic conditions are improving globally after economic meltdown 2007to 2010

y Diversify into complementary food products which will ultimately increase thedrink consumption.

y Coca-cola should increase its partnership with fast food Chinese. Threats:-

All those thing which can effected the business directly is called threats

OR

All those things which can made bad effect on every business are known as

threats.

Note:

These effects are not better for any business.

Some examples are written bellow

y There are problem with coca-cola to raise its price by an edge that inflationpermit it to keep pace with inflation.

y Pepsi is the strong competitor which competes with advertising anddifferentiation.

y Many smaller players are furious competitors which are also creating thecompetition severe

y The prices of raw material such as sugar and metals use in manufacturing ofcans are increasing rapidly.

y Carbonated drink revenues have been decreasing due to association of sugar toobesity and lofty fructose lump syrup to heart disease.


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Brand Analiysis of Coca Cola 3

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