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Marketing plan for coca cola company Free essay! Download now

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Marketing plan for coca cola company

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Marketing plan for coca cola company  essay previewMarketing plan for coca cola company  essay previewMarketing plan for coca cola company  essay preview


Marketing plan for coca cola company



The Coca - Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca - Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca - Cola for most of the United States from The Coca - Cola Company.
2343150127000TypeSoft Drink ( Cola )ManufacturerThe Coca - Cola CompanyFounder (s)John S. PembertonCountry of OriginUnited StatesIntroduced1886Area ServedOver 200 countriesColorCaramel E-150dFlavors Cola , Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry.Employees92,400Servings per Day1.6 BillionWebsitewww. coca - cola .com
Product NameImageCoke Sprite Fanta Diet Coke Minute Maid Minute Maid Juices Kinley Drinking Water

Situation Analysis

Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market.
In 2002, the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume, that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success.
In Asian population, which is the satisfied customer of Coca Cola , is approximately 4.2 billion and the average consumer enjoys close to four servings of our products each month. Through an intense focus on Coca - Cola , innovation and new beverages, the company has achieved volume growth of 22 percent in 2009.
So the company is emphasizing more in this area and is trying to develop a strategy , which can increase the growth of the consumption of Coca Cola by the people of Asia. Among the countries 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 increasing day by day.

External Factors


Customer satisfaction is considered as being the most important and vital things in Coca Cola ’s progress.
The company expects to increase volume worldwide by 7 percent with strong international growth of 8.2 percent by 2010. It focuses on:

Customer Database

Getting new potential customers, side by side retaining old ones.

Giving customers more than just a soft drink.

Brand loyalty.

Marketing is a science, not an art. Give consumers more reasons to sue your product.

Competitor Analysis:


PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International.
Pepsi- Cola beverages are available in more than 190 countries and territories. In Asia, they selected Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the operations carried out in South West Asia.
Pepsi Co. has focused on these marketing principles to attain their higher share of market in Asia:

Measuring Satisfaction using various techniques

Increasing customer perceived value (CPV)

Increasing shareholder wealth. The earnings per share are expected to grow to 116 Rs. In 2010.

Maintaining its supply chain management to ensure that the customer gets Pepsi exactly when he requires.

Mass Marketing via advertising Pepsi with customer attraction areas e.g. celebrities (Shahrukh Khan, Junaid Jamshed, Adnan Sami), Sports (Cricket), concerts (Haroon etc)

Price Indiscrimination all over the region

Focusing on Brand image

Customer retention schemes such as lucky draw, meeting your favorite celebrity etc

Adding social and ethical benefits to every bottle they sell.

Internal Factors:


The Coca Cola Company has always focused on portraying a simple yet strong brand image. Their motto was:
Know the most recognized word on the planet after “OK”!
3608070986790In December 1991, a merger between Coca - Cola Enterprises and the Johnston Coca - Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion.
Major Products (Asia):

Coca - Cola introduced in Pakistan 1953

Fanta introduced in Pakistan 1965

Sprite was introduced 1972

Diet Coke & Fanta Lemon 2001


Any company can only exceed its sales and profits if it has an excellent marketing strategy and if it is bringing innovation in its resources with every passing day.
The company has generated free cash flow of $14.1 billion, up from $11.8 billion in 2008, a clear indication of its underlying financial strength. This increase is contributed to Coca Cola ’s changing marketing strategy . They have focused on increasing sales in Asia as a foremost ingredient since the last few years as coca cola did not have a large market share previously. They have competed well against Pepsi Co. in getting a reasonable market share.

Market Summary

Market Growth:

According to the 2005 Annual Report, the company sells beverage products in more than 200 countries. The report further states that of the more than 50 billion beverage servings of all types consumed worldwide every day, beverages bearing the trademarks owned by or licensed to Coca - Cola account for approximately 1.5 billion. Of these, beverages bearing the trademark " Coca - Cola " or " Coke" accounted for approximately 78% of the Company's total gallon sales.
Also according to the 2007 Annual Report, Coca - Cola had gallon sales distributed as follows:
37% in the United States
43% in Mexico, Brazil, Japan and the People's Republic of China
20% spread throughout the rest of the world
In 2010 it was announced that Coca - Cola had become the first brand to top £1 billion in annual UK grocery sales.

Market Demographics:

In Pakistan Coke’s share is only 36%.

POPULATION:176,242,949 (July, 2009 estimated)

CHILDREN:37.2% (65,607,612)

ADULTS:62.8% (110,680,572)

CHILDREN EQUITY:60% (14,643,619)

ADULT EQUITY:40% (27,802,960)


Coke targets both genders in Pakistan.

Psychographics Segmentation & Market Trends:

Coke segments different income levels by packaging. Like for people with a low level of income, it has small returnable glass bottle, for the mediocre class it has non returnable bottle (NRT) and for people with a high level of income it has Coke tin.
Sometimes, for the promotion 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.
Coke will always show activities, where people get together to enjoy moments of togetherness with our brand. Research analysis indicates that youngsters love to get together, and it is when they are enjoying themselves, that will consume coke. For Pakistani youth, socializing with friends and family is ‘core’ behavior in their lives. Coke’s brand personality is all about togetherness.
At times, Coca Cola Intl seeks to promote itself through sponsoring events. Since many years, Basanat festival has somewhat become “Coke Festival”.

Market Needs:

In coke marketing , main idea is to serve it cold, so we can say that, they focus more on hot areas of the world, i.e. middle east etc and there sale increase in summer.
The market needs vary with time and Coke Intl. introduces its products over time e.g. Coke Cherry etc.

Market Behavior:

The behavior of Pakistani market has always been orientated on “WHATS COLD GETS SOLD”. People normally focus on buying anything that is cold either Pepsi or Coke. The market behavior in Pakistan has not changed a lot as people are not entirely health conscious but over a few years due to increasing awareness of obesity, people have adopted an alienated behavior to soft drinks, which is why Coca Cola Intl. has provided them with the perfect solution i.e. provide a product exactly when it is needed. Yes, we are talking about Diet Coke; introduced in 2001 to meet the growing market needs.

Market Share Growth Rate:

Worldwide on global level Coca - Cola is the most popular brand and market leader and carry 60% of market share.
In Pakistan due to above reasons Coca – cola is the market follower but still in a very strong and stable position holding 36% of the local market share with a growing and increasing market share every year.
Unit Case Volume2008 vs. 2009 Growth Rate2008 vs. 2009Growth5-YearAnnual GrowthNet OperatingRevenuesOperatingIncomeAfrica10%6%16%6%Eurasia16%13%24%38%European Union3%2%14%16%Latin America9%6%24%22%North America(1%)1%11%1%Pacific7%4%7%3%Bottling Investments64%N/A53%750%Worldwide6%4%20%15%

Market Growth:

Coca Cola Company can also identify its expansion through the ANSOFF approach.


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 & many more & they are also keeping the local market 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.

SWOT Analysis:

StrengthsWeaknessesInternal-Popularity-well known-branding obvious and easily recognized-A lot of finance-customer loyalty-International Trade-Word of mouth -lack of popularity of many Coca Cola ’s brands -Most unknown and rarely seen -result of low profile or non-existent advertising -health issues ThreatsOpportunitiesExternal-changing health-consciousness attitude -legal issues -Health ministers-competition (Pepsi)-many successful brands to pursue-advertise its less popular products-buy out competition. -More Brand recognition
SWOT analysis is a technique much used in much general management as well as marketing scenarios. SWOT consists of examining the current activities of the organization- its Strengths and Weakness- and then using this and external research data to set out the Opportunities and Threats that exist.


Coca - Cola has been holding a large part of world culture for a very long time. Coca cola has focused on brand image and brand loyalty along with providing supreme taste and quality. The Coca - Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca - Cola 's greatest strengths.
" Enjoyed more than 685 million times a day around the world Coca - Cola stands as a simple, yet powerful symbol of quality and enjoyment" (Allen, 1995).
Additionally, Coca - Cola 's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca - Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers.
In Pakistan, people don’t care before drinking that whether it is “Pepsi” or “Coke”. They don’t actually differentiate between these two brands in order to their tastes.
Consumers basically drink what they get.
They believe on “WHATS COLD GETS SOLD”
Consumer’s availability in brands is basically works like:


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