Case Study on COCA-COLA

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Contents Acknowledgement Executive summary Challenge..................................................... 1 New product category.........................................1 Product line extension.......................................1 Incremental Improvement......................................2 Introduction to the company...................................2 Birth of Coca Cola.........................................2 Asa Candler................................................3 Death of the Soda Fountain - Rise of the Bottling Industry. 3 New Coke...................................................3 Situation Analysis............................................ 4 Company Analysis.............................................4 Mission Statement..........................................4 Vision Statement...........................................4 Market Share...............................................4 Customer Analysis............................................5 Consumer Decision Process:.................................5 Competitors..................................................6 Economic Effect Analysis...................................7 Political Effect Analysis..................................9 Technological Factors:....................................10 Social and Cultural Analysis..............................10 SWOT Analysis Of Coca Cola..................................11 Strengths.................................................11 Weaknesses................................................11 Opportunities.............................................12 Threats...................................................13 Market Segmentation.......................................... 14

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Marketing Case Study on Coca-Cola

Transcript of Case Study on COCA-COLA

Page 1: Case Study on COCA-COLA

Contents

Acknowledgement

Executive summary

Challenge....................................................................................1

New product category................................................................................1

Product line extension................................................................................1

Incremental Improvement..........................................................................2

Introduction to the company........................................................2

Birth of Coca Cola.........................................................................................................2

Asa Candler.....................................................................................................................3

Death of the Soda Fountain - Rise of the Bottling Industry...........................3

New Coke.........................................................................................................................3

Situation Analysis.......................................................................4

Company Analysis...................................................................................4

Mission Statement........................................................................................................4

Vision Statement...........................................................................................................4

Market Share..................................................................................................................4

Customer Analysis....................................................................5

Consumer Decision Process:.....................................................................................5

Competitors.............................................................................6

Economic Effect Analysis.................................................................................7

Political Effect Analysis....................................................................................9

Technological Factors:....................................................................................10

Social and Cultural Analysis.............................................................................10

SWOT Analysis Of Coca Cola...............................................................11

Strengths.......................................................................................................................11

Weaknesses..................................................................................................................11

Opportunities................................................................................................................12

Threats...........................................................................................................................13

Market Segmentation................................................................14

Behavioral base........................................................................................14

Cognitive base..........................................................................................14

Selected Market Strategy..........................................................14

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Product.....................................................................................................14

Branding.........................................................................................................................15

Product line...................................................................................................................16

Packaging......................................................................................................................16

Price.........................................................................................................17

Prices of different bottles:........................................................................................17

Discounts.......................................................................................................................18

Placement/Distribution Channel...............................................................18

Indirect distribution....................................................................................................18

Direct distribution.......................................................................................................18

Promotions...............................................................................................19

Conclusion................................................................................20

Suggestions..............................................................................21

Bibliography..............................................................................22

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Acknowledgement

Working with this report has been very interesting. We are forever

indebted to all those who gave us valuable suggestions, stimulating

ideas, constructive comments and encouragements throughout this

report writing.

We are indebted to our respected teacher Mr. Sanjeeb Shrestha

who’s indispensable and intricate comments on various aspects

conjoined with motivation made us come forth holding such a project.

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Executive summary

Purpose of this project is to study the strategies which Coca cola is

doing in Nepali market for its product Coca cola. Coca cola

International is a world renowned brand. It is a very well organized

multinational company, which operates almost all over the world. In

Nepal It also has proved itself to be the No.1 soft drink.

Now days Coca cola is recognized as Nepalis National drink .Coca

cola's greatest rival is Pepsi Cola. Coca Cola has an international

recognized brand. Coke’s basic strength is its brand name. But Coca

cola with its aggressive marketing planning and quick diversification

in creating and promoting new ideas and product packaging, is

successfully maintaining is No.1 position in Nepal. Coca cola is

operating in Nepal, through its more than 12 bottlers all over Nepal.

These bottlers are Coca cola's strength. Coca cola has given franchise

to these bottlers. Bottlers, produce, distribute and help in promoting

the brand.

We also did analysis of the soft drink industry in Nepal and

worldwide. The soft drinks set to become world's leading beverage

sector. Global consumption of soft drinks is rising by 5% a year.

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Challenge

Coca cola is doing new product development on frequent interval of

times. The purpose of which is to refresh the brand. By new products

and innovative ideas consumers can easily be attracted. In following

ways Coca cola is doing new product development.

New product category

Coca cola which is mainly a company of soft drinks after establishing

a brand in Nepal. Coca cola came into several new product category.

Fanta, Sprite and Aquapure, fast food restaurants are the examples

of new product category.

Product line extension

Mountain dew is the most recent addition in the product line of soft

drinks which is very popular especially among the youngsters.

However Coca cola launch its several variants with a minor difference

on frequent interval of time. There have been many Coca cola

variants produced over the years, including, Coca Cola

raspberry,Coca Cola zero,Coca Cola M5, Coca Cola black cherry

vanilla, Coca Cola black, Coca Cola citrus,Coca Cola light sango, Coca

Cola orange, Coca Cola diet etc.

Line Filling

Coca cola claims that they are doing mass marketing but there was

an unfilled gap in the consumers. The diabetic patient can’t use the

regular Coca cola because of the sugar. So Coca cola had introduced

diet Coca cola to fill the gap in their drinks as of then onwards even

diabetic people became their consumers.

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Incremental Improvement

Coca cola jumbo is an example of incremental improvement made by

Coca cola. It was 2.25 liter bottle introduced few years ago in Nepal.

The purpose of this packing is to offer the Coca cola to a family for

one or two time meals. Price of this pack is also kept low so that is

can be affordable easily by the consumers.

Introduction to the company

Coca cola International is a world renowned brand. It is a very well

organized multinational company, which operates almost all over the

world. They produce, one of best carbonated drinks in the world.

Coca cola is a symbol of hygiene, quality and service, all over the

world. Coca cola is producing Cola for more than 100 years and it has

dominated the world market for a long time. Its head office is in

Atlanta.

History of coca cola

In May, 1886, Coca Cola was invented by Doctor John Pemberton a

pharmacist from Atlanta, Georgia. 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.

Birth of Coca Cola

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.

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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 expanses, 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.

Asa Candler

In 1887, another Atlanta pharmacist and businessman, Asa 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 Asa 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 Asa

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.

Death of the Soda Fountain - Rise of the Bottling Industry

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 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.

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New Coke

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 Nepal

The market in Nepal is surely dominated by Coca cola. It has proven

itself to be the No.1 soft drink in Nepal. Coca cola is the choice soft

drink of every one. It is consumed by all age groups because of its

distinctive taste. Compared with other Cola in the market, it is a bit

sweeter and it contributes greatly to its liking by all. Consumer’s

survey results explain the same outcome and Coca cola has been

declared as the most wanted soft drink of Nepal.

Situation Analysis

Company Analysis

Mission Statement

“To be the world's premier consumer Products Company focused on

convenient foods and beverages. We seek to produce healthy

financial rewards to investors as we provide opportunities for growth

and enrichment to our employees, our business partners and the

communities in which we operate. And in everything we do, we strive

for honesty, fairness and integrity.”

Vision Statement

“To be the world's best beverage company”. Being the best

means providing outstanding quality, service, cleanliness and value,

so that their every customer is contented and happy with their

products.”

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“To increase the value of their shareholder’s investment through

sales growth, cost control and wise investment of resources.”

Market Share

Coca-Cola, imported from India, was first introduced into Nepal in

1973, with local production of Coca-Cola beginning in 1979. Bottlers

Nepal Limited (BNL) is the only bottler of Coca-Cola products in

Nepal, and has two bottling plants; namely Kathmandu (Bottlers

Nepal Limited – BNL) and Bharatpur (Bottlers Nepal (Terai) Limited,)

which is 160 km from Kathmandu, its capital. Coca Cola enjoys 67.8

percent share in Nepal´s carbonated soft drinks market, according to

ACNeilsen, a global marketing research firm. The multinational brand

valued at $70 billion has presence in 200 countries.

Customer Analysis

There are three types of customers

1. Consumer

2. Business

3. Government

Coca cola main focus is the consumers which are the end users. Coca

cola has to make its marketing strategies keeping in view the

consumer buying behavior. To forecast the behavior of the consumer

is a business problem. Physical aspect of the consumer can be

satisfied but it is difficult to satisfy the consumer psychologically.

Consumer buying behavior is affected by certain factors like Cultural

factors, Social factors, Personal factors and Psychological factors. So

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the producer should keep these factors in Mind while promoting their

product so that they can acquire the customer and increase their

market share.

There are different consumers in a society whose behavior is not the

same. Every consumer has a different perception of different

products. Some consumers are impressed by one quality of the

product which may be in the view of other consumer not that

impressive. So to deal with different consumers in a society one

should know about the consumer buying behavior process which may

help in making a true picture of their product in the mind of the

consumers.

Consumer Decision Process:

Consumer decision process or consumer buying behavior is explained

in some steps which are discussed below:

Need Identification

The consumer is thirsty and he wants to quench his thirst.

Information Search

He will search as to what will satisfy his thirst the most.

Evaluation of Alternatives

He will now evaluate from the wide range of beverages available to

him that which one of them is suitable to him in terms of quality,

taste and is pocket friendly.

Selection

After evaluating the product he will select a product.

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Purchase

The consumer will buy the selected product.

Post-Purchase Experience:

It is the experience that the consumer gets after using the product.

He will use the product again if he feels that his satisfaction after use

is more or equal to the price of the product.

After looking at above mentioned example, we can get an

understanding that a product should be so desirable that whenever a

person identifies his need, he selects our product among various

substitute products and he feel satisfies so that he retains the use of

that product.

Competitors

Company who directly target your customers.

The marketing concept states that to be successful, a company must

provide greater customer value and satisfaction than its competitors

do.

The Coca-Cola Company's main rival in the soft drink industry, is

usually second to Coke in sales, and outsells Coca-Cola in some

markets. RC Cola, now owned by the Dr Pepper Snapple Group, the

third largest soft drink manufacturer, is also widely available. There

are different types of competitor in the market. Some of them in

which our product lies are discussed below:

Close Competitor

Coca cola and Pepsi are close competitors. It means that both have

direct competition in the market, their products are close substitutes

for one another. Both the products can influence the market share of

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one another through effective strategies made to cope up with their

competitors. In Nepal Coca cola is the market leader and Pepsi Cola is

its competitor. The Coca cola makes defense strategies so that it can

maintain its position in the market. While is a challenger and it makes

attack strategies so that it can become the market leader.

Economic Effect Analysis

Income and Income per Capita

If the income level or per capita income of the people increases, it

will have a positive effect on the consumption of Coca cola.

Inflation

If the country faces inflationary trend in the market, the price of

the Coca cola will ultimately increase which will lower its demand.

Consumption Behavior

Nepal is a consumption oriented society. Due to demonstration

effect the people are more inclined towards consumption than

saving. So the people of Nepal spent heavily on food items. Hence

Coca cola has a good market share in the present circumstances.

Income Distribution

It means how much is in the hands of rich and poor class. If there

is balanced distribution of income in the country, the consumption

of the people will increase hence increasing the sales of beverages

as well.

Payment Mod

As the use of plastic money is increasing the consumption pattern

of the people are increasing. Although it will have a low affect on

the consumption of Coca cola.

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Employment Opportunities

As employment opportunities increase the living standard of the

people increase and the people consume more.

Aggregate Demand

In case of Coca cola, aggregate demand of the product increases

in the season of summer as the hot weather makes the consumers

want to drink more.

Aggregate Supply

In summer season to cope up with the increasing demand they

have to increase the aggregate supply of their product.

Economic Policies

Some of the economic policies which can affect the market of

Coca cola are discussed below:

Fiscal Policy

It is the policy of taxes. If heavy tax is levied on Coca cola then its

price will rise having negative effect on its consumption.

Monetary Policy

Monetary policy is made to restrict or increase the supply of

money in the market. If policies are made to restrict the flow of

money in the market, inflation can be controlled hence increasing

the real income of the people which will ultimately affect the

consumption of Coca cola.

Price Policy

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If price of Coca cola is increased its demand will decrease and vice

versa.

Income Policy

If income of the people will increase their purchasing power will

increase and hence increasing the market share of Coca Cola.

Political Effect Analysis

Political Stability:

Whenever the government is considered to be stable, the business

will flourish. If there is political stability in the country the policies

and strategies made by Coca cola can be consistent to be

implemented. Foreign companies are also keen to invest in those

countries which are politically stable where they have no fear of

decline in their market share or shut down due to sudden change

of government.

Mixed Economy

In mixed economy government and private sector both plays their

role in developing the economy of the country. Investment by

foreign companies like Coca cola is more likely to flourish in mixed

economy.

Laws Formulation

Government has given copy rights to Coca cola so that another

company cannot sell their product by the name of Coca cola. The

countries where laws are formulated, the strategies and activities

of the company are different.

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Technological Factors:

Research and Development

Through research and development quality of the product can be

improved or better techniques or machinery can be developed

which can increase the production. When technology is advance

the supply of the product increase hence the company

experiences growth in their business.

Social and Cultural Analysis

Psychographic

It is a combination of demographic and psychological factors.

Psychological attributes mean how you perceive things. The

company will focus on the behavior of consumers and make

different changes in their product quantity or quality and in

promoting their product so that they can attract the customers.

Keeping in view that the behavior of different consumers is not

alike they have to make their marketing strategies in accordance

with their requirements so that they are convinced to buy the

product.

Social Status

Coca cola is a well renowned brand. People who are brand

conscious will not drink beverages of lesser known brands. They

will try to show their status by drinking Coca cola which is known

to all as a quality drink.

Media

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It is a very important factor for marketing. Media these days is a

very effective way of inspiring people to buy a specific product. A

good promotion can boast up sales to a great extent.

SWOT Analysis Of Coca Cola

SWOT Analysis, which is based on thorough review of the business

(corporation, product category competition, customers and products),

identities and evaluates the internal strengths and weakness of the

companies well as its external threats and opportunities. The

marketing mix is driven by the results of the SWOT analysis.

Strengths

The best global brand in the world in terms of value.

According to Interbrand, The Coca Cola Company is the most

valued ($77,839 billion) brand in the world.

World’s largest market share in beverage. Coca Cola

holds the largest beverage market share in the world (about

40%).

Strong marketing and advertising. Coca Cola’ advertising

expenses accounted for more than $3 billion in 2012 and

increased firm’s sales and brand recognition.

Most extensive beverage distribution channel. Coca Cola

serves more than 200 countries and more than 1.7 billion

servings a day.

Customer loyalty. The firm enjoys having one of the most

loyal consumer groups.

Bargaining power over suppliers. The Coca Cola Company

is the largest beverage producer in the world and exerts

significant power over its suppliers to receive the lowest price

available from them.

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Corporate Social Responsibility (CSR). Coca Cola is

increasingly focusing on CSR programs, such as

recycling/packaging, energy conservation/climate change,

active healthy living, water stewardship and many others,

which boosts company’ social image and result in competitive

advantage over competitors.

Weaknesses

Significant focus on carbonated drinks. The Coca Cola

Company is still focusing on selling Coke, Fanta, Sprite and

other carbonated drinks. This strategy works in short term as

consumption of carbonated drinks will grow in emerging

economies but it will prove weak as the world is fighting obesity

and is moving towards consuming healthier food and drinks.

Undiversified product portfolio. Unlike most company’s

competitors, Coca Cola is still focusing only on selling

beverage, which puts the firm at disadvantage. The overall

consumption of soft drinks is stagnating and Coca Cola

Company will find it hard to penetrate to other markets (selling

food or snacks) when it will have to sustain current level of

growth.

High debt level due to acquisitions. Nearly $8 billion of

debt acquired from CCE’s acquisition significantly increased

Coca Cola's debt level, interest rates and borrowing costs.

Negative publicity. The firm is often criticized for high water

consumption in water scarce regions and using harmful

ingredients to produce its drinks.

Brand failures or many brands with insignificant amount

of revenues. Coca Cola currently sells more than 500 brands

but only few of the brands result in more than $1 billion sales.

Plus, the firm’s success of introducing new drinks is weak. Many

of its introduction result in failures, for example, C2 drink.

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Opportunities

Bottled water consumption growth. Consumption of bottled

water is expected to grow both in US and the rest of the world.

Increasing demand for healthy food and beverages. Due

to many programs to fight obesity, demand for healthy food

and beverages has increased drastically. The Coca Cola

Company has an opportunity to further expand its product

range with drinks that have low amount of sugar and calories.

Growing beverages consumption in emerging markets.

Consumption of soft drinks is still significantly growing in

emerging markets, especially BRIC countries, where Coca Cola

could increase and maintain its beverages market share.

Growth through acquisitions. Coca Cola will find it hard to

keep current growth levels and will find it hard to penetrate

new markets with its existing product portfolio. All this can be

done more easily through acquiring other companies.

Threats

Changes in consumer tastes. Consumers around the world

become more health conscious and reduce their consumption

of carbonated drinks, drinks that have large amounts of sugar,

calories and fat. This is the most serious threat as Coca Cola is

mainly serving carbonated drinks.

Water scarcity. Water is becoming scarcer around the world

and increases both in cost and criticism for Coca Cola over the

large amounts of water used in production.

Strong dollar. More than 60% of The Coca Cola Company

income is from outside US. Due to strong dollar performance

against other currencies firm’s overall income may fall.

Legal requirements to disclose negative information on

product labels. Some Coca Cola’s carbonated drinks have

adverse health consequences. For this reason, many

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governments consider to pass legislation that requires

disclosing such information on product labels. Products

containing such information may be perceived negatively and

lose its customers.

Decreasing gross profit and net profit margins. Coca

Cola’s gross profit and net profit margin was decreasing over

the past few years and may continue to decrease due to higher

water and other raw material costs.

Competition from PepsiCo. PepsiCo is fiercely competing

with Coca Cola over market share in BRIC countries, especially

India.

Saturated carbonated drinks market. The company

significantly relies on the carbonated drinks sales, which is a

threat for the Coca Cola as the market of carbonated drinks is

not growing or even declining in the world.

Market Segmentation

It means that you divide the target market in to different groups.

Market consists of buyers and buyers differ in one or more ways.

They may differ in wants, resources, locations and buying practices.

Through market segmentation companies divide large,

heterogeneous markets into smaller segments that can be reached

more efficiently and effectively with products and services that match

their unique needs.

Segmentation is done on basis of the previously mentioned external

factors and the following:

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Behavioral base

It is how people perceive a specific product, in short psychological

analysis of a product. Coca cola all over the world is recognized as a

quality drink and therefore people drink it without any hesitation

whenever they are thirsty or otherwise. So marketers of Coca cola

have made it a drink for all people and for diabetic people they

introduced diet Coca cola.

Cognitive base

It pushes and pulls the consumer. If the outlook of Coca cola bottle is

desirable and it attracts the consumer, he will buy it even if he isn’t

thirsty.

Selected Market Strategy

Product

The soft drinks market in Nepal enjoys dynamic growth in both

volume and value terms. Carbonated drinks have become part of the

culture in Nepal and multinational companies have maintained

standards over the years to provide the nation with high-quality

drinks. Rural areas of Nepal have driven sales of carbonated drinks to

new heights as more than 60 percent of the population resides in

rural areas and young consumers are more attracted to advertising.

Coca cola is the most popular and leader brand in the Nepali market

and is consumed by children and adults alike. Coca cola is a

responsible corporate brand of Nepal and have contributed a lot to

the economy.

In marketing, a product is anything that can be offered to a market

that might satisfy a want or need. Until unless the product of the

company is not strong in the market it cannot survive in the longer

run.

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Coca cola has a product line comprised up of carbohydrate drinks,

Lays and many other products in Nepal. Coca cola’s product line

satisfies consumer needs because Coca cola produces different types

of soft drinks for different consumers.

Branding

Consumer view a brand name as an important part of the product

and branding can add value to the product. A name, term, sign,

symbol or design or a combination of these intended to identify the

goods and services of one seller or group of seller and to differentiate

them from their competitor

Logo

Logo is what establishes a brand name in the consumer mind. It is

the brands identify, signature, image and more often it is a logo that

makes of breaks a product logo plays a very effective role to improve

the product or brand.

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Product line

SODA WATER JUICES

Coca cola Aquapure

Minute Maid

Fanta Aquarius

Sprite

Coca-Cola

Zero

Packaging

“Packaging is a part of product planning in which a firm researchers,

designs, and produces its packaging.”

The physical container may be a cardboard, metal, plastic or wooden

box; a cellophane, wax paper, or cloth wrapper; a glass, aluminum, or

plastic jar or can; a paper bag; styro foam; some other material; or a

combination of these products frequently have more than one

physical container.

But packaging depends upon the product nature as well as structure

means either it is liquid, semi liquid or solid.

In case of Coca cola Cola, they take the packaging designs by

considering what is better for company and what is better or

convenient for the transportation.

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For protecting the syrup, Coca cola Cola uses the glass as well as

plastic bottles of different quantity.

Price

The amounts of money charged for a product or service, or sum of

the values that consumers exchange for the benefits of having or

using the product or services. As price gives us the profit so this P is

very important for business price of product should be that which

gives maximum benefit to the company and which gives maximum

satisfaction to the customer.

Following factors Coca cola kept in mind while determining the

pricing strategy.

Price should be set according to the product demand of public.

Price should be that which gives the company maximum revenue.

Price should not be too low or too high than the price competitor is

charging from their customers otherwise nobody will buy your

product.

Price must be keeping the view of your target market.

The price of Coca Cola, despite being market leader is the same as

that of its competitor Pepsi.

Sometimes, Coca cola places its customers into some psychological

pricing strategies by reducing a high priced bottle and consumers

think that they save a lot of money from this.

Prices of different bottles:

Regular bottle = rupees 20

Non Returnable/disposable= rupees 55

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1.5 Liter Bottle= rupees 125

2.25 Liter Bottle= rupees 145

Discounts

Coca Cola offers various discounts to those retailers who have the

maximum sales of Coca cola products on daily, monthly and on

seasonal basis.

Seasonal Discount:

Following are discounts offered by Coca cola.

Coca cola also offers seasonal discounts schemes by reducing price in

Dashain and Tihar. Coca cola also offers trade in allowance for

retailers.

Placement/Distribution Channel

The Coca cola uses the following two channels for the distribution of

their products.

Indirect distribution

Indirect distribution involves agency holders e.g. Bottlers Nepal

Limited (BNL). 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.

Direct distribution

The factory vehicles operate on direct routes in Kathmandu and other

cities selling non-returnable bottles Litter, Pet and Can.

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Promotions

In Nepal Coca cola is the most liked soft drink especially by young

generation so the Coca cola company has devised such marketing

strategy which attracted them. For this reason they started

monitoring the habits of the generation. What they saw was that the

students were crazy about football and usually liked to idealize them

so in order to increase their sales the Coca cola Company paid high

amounts of money to the footballer to act as their spokes men.

Coca cola Cola Company has also become official sponsors of Nepal

cricket and has sponsored a number of series.

Also Coca cola has donated a lot to the earth quake victims and has

launched a number of prize schemes to attract new customers

As a result of this marketing strategy Coca cola has become the

largest seller of soft drinks in Nepal and is slowly forming a monopoly

in drinks market.

Frequency of the Coca cola ads varies from time to time. When the

season is on Coca cola do heavy advertisement especially in Dashain

and Tihar but this advertisement not remain consist. We can hardly

see the ads of Coca cola now as there is winter season.

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Conclusion

Coca cola is a well renowned company and it has maintained its

position well by understanding the client psychology, by ensuring

quality, by introducing ingenuity in products, by enlarging its product

base, by keeping economic factors in view and by intense and jazzy

advertisements.

Whenever and where ever there is a spotlight event, Coca cola must

figure in, like the one day international cricket matches between

India and Nepal many other such occasions. The key word for success

in the Marketing World is to “remain in the spotlight” and that is what

Coca cola is doing.

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Suggestions

The marketing world is full of surprises. Who could imagine that Coca

Cola would be overtaken by Pepsi? If Pepsi could be overrun by Coca

cola, it would be no wonder that Coca cola might be overtaken by

some other beverage. The need then is to combine quality with

ingenuity. Along with that, the reputation of the company has to be

kept robust.

Today we live in a fast moving world where novelty and newness

count a lot. One cannot rest on one’s laurels. Fresh efforts, newness

of approach must remain the cardinal principles of a well

orchestrated marketing strategy and the campaign must be

relentless. A continuous bombardment in advertisement would

convince the clients that Coca cola is a part of their lives. In order to

live with style, Coca cola ought to be an essential ingredient of one’s

life.

The Coca cola is at its maturity stage and the sales of company are

not growing very rapidly. Company is doing a lot of promotional

activities to let the product remain in the market. It holds a large

share of the market and whenever the sales state declining, the

company can improve it by different promotional activities.

Marketers of Coca cola can try to improve sales by improving one or

more marketing mix elements. They can cut prices to attract new

users and competitor’s customers. They can also launch a better

advertising campaign or use aggressive sales promotion to improve

the sales. Thus, Coca cola is at its maturity stage.

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Bibliography

The following are the reference material where the information is

collected.

Online References:

i) http://en.wikipedia.org/wiki/Coca_cola

ii) http://www.ekantipur.com/the-kathmandu-post/

2010/04/01/Business/Coca-Cola-promotion--campaign-

launched/206780/

iii) http://www.bluechiplist.com/coca-cola/

iv) http://www.ktm2day.com/2010/05/01/coca-cola-set-to-

expand-market-in-nepal/

v) http://www.studymode.com/essays/Coca-Cola-Nepal-

1149300.html

vi) http://www.ukessays.com/essays/marketing/coca-cola-and-

their-internation-marketing-strategies-marketing-essay.php

vii) http://www.cocacolasabco.com/Territory.aspx/Show/Nepal

Other References:

viii) Frederick Allen. Secret Formula: How Brilliant Marketing and Relentless Salesmanship Made Coca-Cola the Best-Known Product in the World. New York: HarperCollins. 1994. 500pp.

ix) Michael Blanding. The Coke Machine: The Dirty Truth Behind the World's Favorite Soft Drink. Penguin. 2010. 375pp.

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x) Mike Cheatham. "Your Friendly Neighbor": The Story of Georgia's Coca-Cola Bottling Families. Mercer University Press. 1999. 187pp.

xi) Elizabeth Candler Graham; Ralph Roberts. The Real Ones: Four Generations of the First Family of Coca-Cola. Barricade Books. 1992. 344pp.

xii) David Greising. I'd Like the World to Buy a Coke: The Life and Leadership of Roberto Goizueta. Somerset, NJ: John Wiley & Sons. 1998. 334pp.

xiii) Constance L. Hays. The Real Thing: Truth and Power at the Coca-Cola Company. Random House. 2004. 398pp.

xiv) E. Neville Isdell; with David Beasley. Inside Coca-Cola: A CEO's Life Story of Building the World's Most Popular Brand. Macmillan. 2011. 272pp.

xv) Ely Jacques Kahn. Big Drink: The Story of Coca-Cola. Random House. 1960. 174pp.

xvi) Kathryn W. Kemp. God's Capitalist: Asa Candler of Coca-Cola. Mercer University

Press. 2002. 312pp.

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