REPORE OF COCACOLA.docx

8/10/2019 REPORE OF COCACOLA.docx

1/31

i

ACKNOWLEDGEMENT

I am very grateful to Allah who blessed me the strength and courage to stand by the difficulties that

came in the way and who enabled me to complete this project effectively.As plants cannot grow

without seeds, birds cannot fly without wings.Similarly knowledge cannot be attained without

proper direction and supervision. We are, therefore, also thankful to our respected teacher Mr.

Haneef Shehzad, because of whose generous co-operation and help, the accomplishment of this

Project became possible.

I really thankful to Mr.Haneef Shehzad & IIUI).

Executive Summary

This

project is about to study any one of companies and one of that companys

product according to marketing management perspective. In this project I havestudied the different

techniques of marketing that are used by company, fromidentifying the needs wants and demands


2/31

of their product among the people, andhow company developed the customer oriented marketing

strategies, that are howthey have done segmentation ,target marketing and positioning of their

product.

The strategies of 4ps of marketing by that company on the product and

strategies of maintaining profitable and long term relationship with their potentialcustomers.I

studied the strategies of social responsibility by the company, how company promotes the product

with in the targeted customers and common people by promoting the interest of their potential

customers.At the end I have studied the swot and pest analysis of the company andconclusion and

recommendations.


3/31

Table of Contents

Chapter #1 Introduction COCOCOLA COMPANY

History

ACHIEVEMENT AND AWARDED OF COMPANY

1Mission, Vision & Values:- .. 1Chapter #2 . 3THE MARKETING PROCESS ....=

3Need, Want and Demand:- .

3Customer Driven Market Strategy:- .

4Market Segmentation:-

............................................................................................................................. 4Regional

segmentation: ........................................................................................................................ 4Size

........................................................................................................................................................

4Population density ................................................................................................................................

4Climate ..................................................................................................................................................

4Demographic .........................................................................................................................................

4Target Market .......................................................................................................................................

4Positioning:-

.............................................................................................................................................. 5Product

..........................................................................................................................................................

5Price

..........................................................................................................................................................

6Pricing Strategies and

Tactics.................................................................................................................... 6Place and

Distribution ...............................................................................................................................


4/31

7Promotion

.................................................................................................................................................

8Customer Relationship management:-

......................................................................................................... 9Building a customer-focused

website ....................................................................................................... 9My SAP Customer

Relationship Management ........................................................................................ 10My SAP Supply

Chain Management ........................................................................................................ 10Partnership

relation management .......................................................................................................... 10Coca-cola

and SAP Partnership ...............................................................................................................

11Capturing value customers in return (Market share, Customers loyalty):-

................................................ 11

MARKET SHARE .......................................................................................................................................

11MARKET SHARE BY AREA

........................................................................................................................ 11CHAPTER #3

Fair and Ethical Workplace ..................................................................................................................

17CHAPTER

#4................................................................................................................................................. 18Swot

& .........................................................................................................................................................

18Pest analysis

................................................................................................................................................ 18SWOT

ANALYSIS:- ........................................................................................................................................


5/31

18STRENGTH

...............................................................................................................................................

18WEAKNESS

..............................................................................................................................................

18OPPORTUNITIES

...................................................................................................................................... 19THREATS

.................................................................................................................................................. 19PEST

ANALYSIS OF COCA-COLA ...................................................................................................................

20POLITICAL VARIABLES

............................................................................................................................. 20Conclusion of

Political Analysis ...............................................................................................................

21ECONOMICAL VARIABLES

....................................................................................................................... 21Conclusion of

Economical Analysis ......................................................................................................... 22SOCIAL

VARIABLES ..................................................................................................................................

23CONCLUSION OF SOCIAL ANALYSIS

........................................................................................................ 23EDUCATION

.............................................................................................................................................

23ENVIRONMENT

....................................................................................................................................... 23COMMUNITY

INVOLVEMENT ..................................................................................................................

24TECHNOLOGICAL VARIABLES

.................................................................................................................. 24Conclusion of

Technological Analysis ..................................................................................................... 25CHAPTER#5

.................................................................................................................................................

27CONCLUSION &


6/31


7/31

The company operates a franchised distribution system dating back to 1889 where The Coca-Cola

Company only produces syrup concentrate which is then sold to various bottlers throughoutthe

world who hold an exclusive territory.The Coca-Cola Company is headquartered in Atlanta, Georgia.

Its current president and CEO isMuhtar Kent.

History:-

The Coca-Cola Company was originally established as the J. S. Pemberton Medicine Company,a co-

partnership between Dr. John Stith Pemberton and Ed Holland. The company was formed tosell

three main products: Pemberton's French Wine of Cola (later known as Coca-Cola),Pemberton's

Indian Queen Hair Dye, and Pemberton's Globe Flower Cough Syrup.Finally in October of 1888, the

company received a charter with an authorized capital of $50,000. The charter became official on

January 15, 1889. By this time, the company hadexpanded their offerings to include Pemberton's

Orange and Lemon Elixir.

Mission, Vision & Values:-

Our mission, vision and values outline who we are, what we seek to achieve, and how we wantto

achieve it. They


8/31

Chapter #2

THE MARKETING PROCESS

3

Need, Want and Demand:-

The coca-cola company at the beginning sells medicine,when they analyze the need of the customer

toward soft drink,in that Era when they identify that soft drink is also the wantand demand of

people, then they decided to come into softdrink business, the medicine that they are selling change

therename i.e.

Pemberton's French Wine of Cola (later known as

Coca-

Cola)


9/31

The demand is unprecedented, and we see it every day in our sales numbers. But it's not especially

surprising, as consumers become aware of the role of calories consumed and calories burned in the

obesity equation. Now a day major Customers Needs are:First

of all the majority dont care that what they are going to have. In other words, they dont

care

before drinking that whether it is Pepsi or coke. They dont actually differentiate

between these two brands in order to their tastes.Consumers basically drink what they get.They

believe on

WHAT COLD THEY SOLD

Consumers availability in brands is

basically works like:Push availability

Pull consumers demand.

For this reason Coca-Cola have provided their coolers and freezers in the market. They

havemaximum number of coolers and freezers in the market. They provide this infrastructure free of

cost just to provide chilled coke to their customer, which they want to be purchase.

\


10/31

4

Their salesman and mechanics regularly visit all the shops where coke has its infrastructure tocheck

that either it is in proper condition or not, if not then they immediately change or repair it.

Customer Driven Market Strategy:-

Market Segmentation:-Regional segmentation:

By continent, State,Country or Neighbor hood.Regional officesRegions or province or cities

Size:

Segmentation according to size of population.PopulationTarget market population

Population density:

Often classified as urban or rural.

Climate:

Segmentation according to weather condition.


11/31

Demographic:

Segmentation according to age, gender, family size.

Target Market:-

Cokes commercials basically based on young generations,

so, the younggeneration is the target market of Coke because they want to represent Coke with the

youth andenergy but they also consider about the old people they take then as a co-target market.

5

Positioning:-

Once a business has decided which segmentsof the market it will compete in, developed a clear

picture of its target market and defined its product, the positioningstrategy can be developed.

Positioning is the process of creating, the image the product holds in the mind of consumers, relative

to competing products. Coca Cola andFranklins both make soft drinks; although Franklins may try

tocompete they will still be seen as down market from CocaCola.Positioning helps customers

understand what is unique about the products when compared withthe competition. Coca Cola plan

to further create positions that will give their products thegreatest advantage in their target

markets. Coca Cola has been positioned based on the process of positioning by direct comparison

and have positioned their products to benefit their targetmarket. Most people create an image of a


12/31

product by comparing it to another product, thusevident through the famous battles between Coca-

Cola and Pepsi products.

Prepare the marketing program that delivers superior value (4 P, s):-

Product

:

Many Products are physical objects that you can ownand take home. But the word product means

much more than just physical goods. In marketing, product also refers to services,such as holidays or

a movie, where you enjoy the benefitswithout owning the result of the service.Businesses must

think about products on threedifferent levels, which are the core product, the actual product

6

and the augmented product. The core product is what the consumer is actually buying and the

benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The actual productis

the parts and features, which deliver the core product. Consumers will buy the coke product

because of the high standards and high quality of the Coca Cola products. The augmented product is

the extra consumer benefits and services provided to customers. Since soft drinks are aconsumable

good, the augmented level is very limited. But Coca Cola do offer a help line andcomplaint phone

service for customers who are not satisfied with the product or wish to givefeedback on the

products.


13/31

Price

:

Price is a very important part of the marketing mix as it can affect both the supply and

demand for Coca Cola. The price of Coca Colas products is one of the most important factors ina

customers decision to buy. Price will often be the difference that will push a customer to buy

our product over another, as long as most things are fairly similar. For this reason pricing policies

need to be designed with consumers and external influences in mind, in order toeffectively achieve a

stable balance between sales and covering the production costs.Price strategies are important to

Coca Cola because the price determines the amount of sales and profit per unit sold. Businesses

have to set a price that is attractive to their customersand provides the business with a good level of

profit. Long before a sale was ever made CocaCola had developed a forecast of consumer demand at

different prices which inevitablydetermined whether or not the product came on the market, as well

as the allocation of adequatemoney and resources to produce promote and distribute the product.

Pricing Strategies and Tactics:-

The pricing Strategy a business will use will have to focus

on achieving the marketing plans objectives and support the positioning of the product, and take

external factors such as economic conditions and competitors in to account. There are 5strategies

available to business: Market skimming pricing, Penetration pricing, Loss leaders,Price Points and

Discounts. Over the years Coca Cola has used Penetration Pricing as a way of grabbing a foothold in

the market and won a market share. Its product penetrated themarketplace. Once customer loyalty

is established as seen with Coca Cola it is then able to


14/31

7

slowly raise the price of its product. There has been a fierce pricing rivalry between Coca Colaand

Pepsi products as each company competes for customer recognition and satisfaction. Tillnow it

appears as if Coke has come up on top, although in order to gain long term profits Cokehad to

sacrifice short term profits where in some cases it either went under of just broke even, but as seen

it has been all for the best.

Place and Distribution:-

The place P of the marketing mix refers to distribution of the product- the ways of getting the

product to the market. The distribution of products starts withthe producer and ends with the

consumer.

One key element of the Place/Distribution aspect is the

respective distribution channels that Coca Cola has electedto transport and sells its

product.Selecting the most appropriate distribution channel isimportant, as the choice will

determine sales levels and costs. The choice for a distributionchannel for any business depends on

numerous factors, these include:

How far away the customers are;

The type of product being transported;


15/31

The lead times required; and;

The costs associated with transport;There are four types of distribution strategies that Coca Cola

could have chosen from, these are:intensive, selective, exclusive and direct distribution. It is

apparent from the popularity of the

Coca Colas product on the market that the business in the past used the method of intensive

distribution as the product is available at every possible outlet. From supermarkets to

servicestations to your local corner shop, anywhere you go you will find the Coca Cola products.

8

Promotion:-

In todays competitive

environment, having theright product at the right place in the right place at the righttime may still

not be enough to be successful. Effectivecommunication with the target market is essential for

thesuccess of the product and business. Promotion is the p of themarketing mix designed to inform

the marketplace about whoyou are, how good your product is and where they can buy it.Promotion

is also used to persuade the customers to try a new product, or buy more of an old product.The

promotional mix is the combination of personal selling, advertising, sales promotionand public

relations that it uses in its marketing plan. Above the line promotions refers tomainstream media:


16/31

Advertising through common media such as television, radio, transport, and billboards and in

newspapers and magazines. Because most of the target is most likely to beexposed to media such as

television, radio and magazines, Coca Cola has used this as the mainform of promotion for extensive

range of products. Although advertising is usually veryexpensive, it is the most effective way of

reminding and exposing potential customers toCoca Cola Products. Coca Cola also utilizes below the

line promotions such as contests,coupons, and free samples. These activities arean effective way of

getting people to give your product a go.

9

Develop Relationship with the customer (CRM + PRM):-

Customer Relationship management:-

Serving business and consumer customers

Yet, to truly take advantage of the Coca-Cola Freestyle, the company felt it needed a new portalfor

its end customers. Customers, for Coca-Cola, mean the end consumers and distributors andsmall

store owners. Small businesses that have traditionally relied on hand-written invoices and phone

ordering will be able to log into a self-service website and do their ordering from there."This will

reduce write-offs and collection costs," Condra said, noting that it would helpeliminate many of the

write-offs associated with the hand-written invoices.The site will also offer suggestions on what

needs to be ordered, based on past consumption."For customers, its driving profitability; now it's

truly a partnership," Condra said. "With partners and distributors, it's about our supply chain. Over


17/31

time, it's really going to be a responseto their needs. They can go to this one location and have those

needs met."Coca-Cola is turning to SAP for the underlying technology. While the requirements of the

sitedemanded a business-to-business approach, the fact that it would eventually reach 3 million

endcustomers, many of whom are small store owners, demanded a simple business-to-consumer

interface."For an outlet manager to understand the dynamics would be very difficult, so we've

assistedthem in that process," Condra said. "The standard CRM out of the box from an e-

commercestandpoint would have had a lot of steps. We tried to think about the mandatory clicks

acustomer has to enter."

Building a customer-focused website

10

Coca-Cola called in Edison, N.J.-based Fujitsu Consulting to help with the project. The first stepin

establishing the site was to form a creative design team made up of two business owners, anon-SAP

Web design expert, a CRM functional e-commerce lead, and an SAP CRM technicalJava lead. They

supplemented that with end users that represented everything from a businessowner running five

outlets to small "mom and pop" shop owners.The Web design experts presented their approach in

html, and the SAP CRM experts outlined thegap between what was available within SAP and what

needed to be customized. They then prioritized the development required."If the business impact is

medium or lower and development time is 20, 30 or even 10 days, wego back to them," said Sathish

Thandale, project manager with Fujitsu. "They always had theusability as the priority, and the SAP

experts always had SAP CRM in their mind."


18/31


19/31

Coca-Cola Enterprises and

SAP

have formed a strategic partnership to develop Direct StoreDelivery (DSD) functionality. Coca-Cola

joins leading Consumer Products (CP) manufacturerslike Colgate-Palmolive, Kimberly-Clarke,

Hershey, and General Mills in partnering with SAP todevelop new functionality, including Trade

Promotions Management (TPM), Supply ChainPlanning (SCP), customer analytics, and Product

Lifecycle Management (PLM).

Capturing value customers in return (Market share, Customersloyalty):-

MARKET SHARE

:

Being the biggest company in the soft drink industry, Coca Cola enjoys thelargest market share. This

company controls about 59% of the world market.

MARKET SHARE BY AREA

::

Coca Cola is the world-renowned soft drink and the company is currentlyoperating through out the

world. The world widetotal is about 17.8 billion.The operation review according to the segments is

asfollows.

Operation Review

(2002 worldwide unit case volume by operating segment)


20/31

12

NORTHAMERICALATINAMERICAEUROPE &MIDDLE EASTASIA AFRICA30% 25% 22% 17% 6%So the

volume is least in the Africa and most in the North America. The dataabout the market share of this

company area wise is given in the following table.The above table shows the geographical earning of

the Coca Cola Company andfrom this data; we can find out that the customers of Coca Cola are

increasing which is shown by

the companys per capita income. Unit case equals 24 eight

-ounce servings.

The column, whichshows the non-alcoholic beverages consist of commercially, sold beverages, as

estimated by theCompany based on available industry sources. The country column is derived

fromThe Company's unit case volume while the industry column includesnonalcoholic ready-to-drink

beverages only, as estimated by the Company based on availableindustry sources.

NORTH AMERICALATIN AMERICAEUROPE & MIDDLEEASTASIAAFRICA

13

Country Unit case growth Non-alcoholicDrinksAll commercialBeverages10 year compoundannual

growth5-year compoundannual growth2002 annualgrowth2002 2002CompanyIndustry

CompanyIndustry CompanyIndustry Company shareCompany shareCompany per capitaIncome


21/31

NorthAmerica

4 5 3 3 2 2 22 15 398

UnitedStates

4 5 3 3 2 2 23 16 419

LatinAmerica

6 7 6 6 3 4 24 15 205

Argentina

7 4 6 2 7 2 20 10 236

Brazil

5 5 3 6 3 5 23 13 144

Chile

9 6 5 3 (2) 3 56 23 336

Mexico

7 10 8 9 2 5 22 18 462

Europe& Middle

6 3 5 3 2 4 12 6 72


22/31

14

EastEurasia

17 8 6 5 (14) 1 14 5 39

France

8 3 9 3 7 3 9 5 110

Germany

1 2 (1) 1 (6) 1 14 7 193

GreatBritain

8 2 11 2 8 3 17 6 193

Italy

1 3 4 3 2 2 9 6 104

MiddleEast

12 12 7 5 4 8 8 3 17

Spain

6 4 8 5 4 4 17 12 264

Asia

7 6 6 7 10 7 14 5 23

Africa

7 6 8 3 10 6 34 11 34


23/31

In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billionand the

average consumer enjoys close to two servings of our products each month. Through anintense

focus on Coca-Cola, innovation and new beverages, the company has achieved volumegrowth of 10

percent in 2002. With developing economies and populations, this region hasstrong long-term

potential, and the company is building an exciting family of beverage brands inaddition to expanding

the popularity of our core brands, led by Coca-Cola. In China, for example, sales of Coca-Cola

increased 6 percent. The total unit case sale of Coca Cola in Asiacan be shown by the following pie

chart.(Figure)

15

So the company is emphasizing more in this area and is trying to develop a strategy, which

canincrease the growth of the consumption of Coca Cola by the people of Asia. Among thecountries

of Asia, Japan has the highest percentage, which is about 29%. Among others,Pakistan, India and

Bangladesh are those countries where the average consumption is increasingday by day.

CHAPTER #3

SOCIAL RESPONSIBILITY


24/31

16

Corporate social responsibility

::--

Corporate Social Responsibility projects within Coca-Cola Sabco are chosen using a decentralized

modelwithin a broad Group Corporate Responsibility Policy.Each territory, and, in South Africa, each

regionchooses the community project they would like tosupport, but are called upon to justify their

selectionswithin the Group Policy and Governance Processes.Additionally, the Group Policy requires

each operationto invest the equivalent of at least one percent of itsoperating profit in community

projects.The following section of the report intends to present some examples of how Coca-Cola

Sabco partners with its communities to provide support in areas where assistance is required.

WhileCoca-Cola Sabco often provides funding for projects, many of our employees devote their

owntime to the initiatives we support and we thank them as well as the many people from

thecommunity organizations we partner with. Their selfless devotion to securing the welfare of

others helps make the world a place that we can be proud to live in.

Health and Wellbeing

The Companys operations conduct intervention

programs that addressspecific health risks, including HIV/AIDS, malaria and lifestyle diseases such as

obesity. In Nigeria, for example, Coca-Cola Hellenic provides HIV/AIDS education, voluntary

counseling ,testing and anti-retroviral medicines together with government, the Global Business

Coalition onHIV/AIDS, Tuberculosis and Malaria, local NGOs and The Coca-Cola Company. Awareness

activities were extended in 2007 to reach 3,000 part-time employees, dealers, suppliers and


25/31

contractors. In Ukraine, all supervisors and managers were trained to manage HIV/AIDS in

theworkplace

during 2007.The Companys Nigerian operations teach employees to prevent

and

control malaria at work and at home. During 2007 a further 5,000 insecticide-treated nets were

provided for employees to use at home. Physical activity and nutrition education are the focus of

Company efforts in countries where obesity and lifestyle diseases are rising. New programs have

been launched in Greece, in addition to those in Hungary, Romania and Ireland.

A Fair and Ethical Workplace

As a participant in the UN Global Compact, Coca-Cola Hellenicupholds internationally recognized

labor and human rights standards and commits to fightcorruption.

The Companys Hu

man Rights Policy and Equality of Opportunity Policy (availableon the Company website) are

integrated into management training, and policies are widelycommon Child labor is expressly

prohibited, and appropriate checks are made duringrecruitment. Approximately 90% of Company

operations have implemented policies, and over 11,000 hours of training have been conducted to

date.

\


26/31

25

innovationseffectively promoted your businessHas the

governments

regulationsever hinderedin importingtechnicalequipmentYESDoes Cokehelp in promoting

paperlessenvironmentYES

Conclusion of Technological Analysis

Of course

business innovation

leaves highly goodimpacts in the business of Coke. As coke use more advance technology in its

production process.It will result in increment of their production through out the country. As far as

the

governmental hindrances

are concerned the impacts highly bad on cokes production. Ever

year when budget in announced government taxes rates always shoot up. This approach of

government decreases the profit margin of Coke.As the coke helping in promoting

paperless environment

.it impacts good, because computersare the basic need of any person now a days. A


27/31

nd though its a big industry thus

it is promotingthe trend of paperless environment. And it is giving the way of other industries to

come to new

26

technologies and into a new world of business. Through computers coke can increase theefficiency

of its business and can have up

to-date data about their productions.

CHAPTER#5

CONCLUSION &

RECOMMENDATIONS


28/31

27

RECOMMENDATIONS

After completing our project we have concluded some recommendation for the coca colacompany,

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 productaccording 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 coke 2 regular bottles at same time, so providing more

satisfaction to them company should introduce liter disposable bottle.

28


29/31

Reference

www.cocacola.com/ www.coca cola.com/template1/index.jsp?locale=en_www.the

cocacolacompany.com/

www.pakvisit.com/.../jobs%20in%20

coca

%20

cola

%20Pakistan.htm

en.wikipedia.org/wiki/The_

Coca

-

Cola

_Company www.the

coca

-

cola

company.com/.../chronicle_birth_refreshing_idea.html -

www.likecool.com/


30/31

Coca

_

Cola

_

History

--Pic--Gear.html

www.ideafinder.com/

history

/inventions/

cocacola

.htm

www.the

coca

-

cola

company.com/.../av_

advertising


31/31

.html

www.psdeluxe.com/.../100-old-

coca

-

cola

-

ads

-and-posters.html

REPORE OF COCACOLA.docx

Documents

Transcript of REPORE OF COCACOLA.docx