Marketing Management
Marketing Management
REPORT OF MARKETING MANAGEMENT ON COCA-COLA SUBMITTED BY MUHAMMAD USMAN SHAUKAT MBA (3rd SMESTER) SUBMITTED TO MAAM MARIA KANWAL
The Coca Cola system has more than .& million customers around the world that sells or serves our products directly to consumers. 'e eenly focus on enhancing value for these customers and helping them grow their beverage businesses. 'e strive to understand each customer/s business and needs, whether that customer is a sophisticated retailer in a developed mar et a ios owner in an emerging mar et. There are nearly 6 million people in the world who are potential consumers of our companys product. ltimately! our success in achie"ing our mission depends on our a#ility to satisfy more of their #e"erage consumption demands and our a#ility to add "alue for customers. $e achie"e this when we place the right products in the right markets at the right time.
Our Vision %ur "ision ser"es as the framework for our Roadmap and guides e"ery aspect of our #usiness #y descri#ing what we need to accomplish in order to continue achie"ing sustaina#le! &uality growth.
People: %e a great place to wor where people are inspired to be the best they can be. Portfolio: %ring to the world a portfolio of 0uality beverage brands that anticipate and satisfy people1s desires and needs. 2artners! 3urture a winning networ of customers and suppliers, together we create mutual, enduring value. Planet: %e a responsible citizen that ma es a difference by helping build and support sustainable communities. Profit: 4aximize long(term return to shareowners while being mindful of our overall responsibilities. Productivity: organization. %e a highly effective, lean and fast(moving
Live Our Values %ur "alues ser"e as a compass for our actions and descri#e how we #eha"e in the world.
Leadership: The courage to shape a better future Collaboration: 5everage collective genius Integrity: %e real
Accountability: If it is to be, it1s up to me Passion: Committed in heart and mind Diversity: 6s inclusive as our brands Quality: 'hat we do, we do well
7ocus on needs of our consumers, customers and franchise partners 8et out into the mar et and listen, observe and learn 2ossess a world view 7ocus on execution in the mar etplace every day %e insatiably curious
Be the Brand
began to consolidate. In .,+&, The Coca(Cola Company merged some of its company(owned operations with two large ownership groups that were for sale, the >ohn T. 5upton franchises and %CI :olding Corporation1s bottling holdings, to form Coca(Cola 9nterprises Inc. The Company offered its stoc to the public on 3ovember A., .,+&, at a split(ad-usted price of B$.$@ a share. On an annual basis, total unit case sales were ++@,@@@ in .,+&. In =ecember .,,., a merger between Coca(Cola 9nterprises and the >ohnston Coca(Cola %ottling 8roup, Inc. C>ohnstonD created a larger, stronger Company, again helping accelerate bottler consolidation. 6s part of the merger, the senior management team of >ohnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in .,,A.?nit case sales had climbed to ..# billion, and total revenues were B$ billion
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The hierarchy of Coca Cola Company is as follows.
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%eing the biggest company in the soft drin industry, Coca Cola en-oys the largest mar et share. This company controls about $,G of the world mar et.
Income Chart
The operation income earned by Coca Cola Company can be illustrated by the following pie chart.
C7igureD
The global unit sale of the Coca Cola Company is increasing from the last ten years. There is positive growth in the mar et of the Coca Cola Company.
There is a worldwide volume increase by #G with strong international growth of $G. This is only due to the innovative mar eting programmers, which has deepened the relationship of the customers and Coca Cola. The financial health and success of their bottling partners is a critical component of The Coca(Cola Company1s ability to build and deliver leading brands. In A@@,, the company had wor ed with their bottlers to turn good intentions into reality by improving the system economics. The results in A@@, reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. The main reason behind this relationship is to continue realizing shared opportunities for growth, with closer coordination of operations including customer relationships, logistics and production.
.*G
&G
;o the volume is least in the 6frica and most in the 3orth 6merica. The data about the mar et share of this company area wise is given in the following table.
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This company is financially very strong. It is due to the strong finances, the company is still surviving the ups and down of the business world. The financial report of Coca Cola Company of the year A@@+ and A@@* along with the percentage change is as follows.
CTableD
'ear (nded December ) * +In millions e,cept per share data* ratios and gro&th rates.//! .//" Percentage change "$ '%$ #2$ #2$ #2$ "%$
3et operating revenues Operating income 3et income 3et income per share CbasicD 3et income per share CdilutedD 3et cash provided by operating activities
%usiness reinvestment =ividends paid ;hare repurchase activity 7ree cash flow Return on capital Return on common e0uity ?nit case sales Cin billionsD International operations 3orth 6merica operations 'orldwide
(!&3) (" (!") (2(() 3 "'( 2&)&$ 3#)%$ "2)% %)3 "()#
(((!) (" &#%) ("33) 2 #0& "&)2$ 23)"$ "")! %)2 "()"
A@@, basic and diluted net income per share includes a non(cash gain of B.@A per share after taxes, which was recognized on the issuance of stoc by Coca(Cola 9nterprises Inc., one of the e0uity investors of this company.
A@@, basic and diluted net income per share includes the following charges! B.A# per share after income taxes related to an organizational Realignment. B.., per share after income taxes related to the Company1s portion of charges recorded by the investors of the company. B..& per share after income taxes related to the impairment of certain bottling, manufacturing and intangible assets. B.@$ per share after income taxes related to the settlement terms of a discrimination lawsuit. B.@. per share after income taxes related to incremental mar eting expenses in Central 9urope. These charges are partially offset by a gain of B.@$ per share after income taxes related to the merger of Coca(Cola %everages plc and :ellenic %ottling Company ;.6. and B.@# per share after income taxes related to benefits from a tax rate reduction in 8ermany and from favorable tax planning strategies.
2RO=?CT;!
There are different brands of the Coca Cola Company, which are currently in use through out the world. This company not only deals in the carbonated drin s but also other drin s. 'hile launching its product, the mar eting team considers the culture of the country.
The commitment of the company is to devote resources to water only in mar ets where it expects profitable growth. This strategy has paid dividends. The company has successfully applied it/s approach to brands in several ey mar ets, including Ciel in 4exico, 4ori 3o 4izudayori in >apan, Bonaqua in Russia and Einley in India. %ac ed by a strong networ of bottling partners through out the ?nited ;tates. Three of the water brands, =asani, Ciel and %ona0ua each achieved sales of over .@@ million unit cases for the year. In A@@+ and A@@,, the company has also made good progress in coffees and teas. %everage 2artners 'orldwide, the renewed and strengthened mar eting partnership with 3estlJ ;.6., began operations in A@@+. This partnership combines 3estlJ1s nowledge in life science, research and development with the expertise of Coca Cola Company in brand building and distribution.
6mong the soft drin s 0anta and Sprite become successful along with the ma-or brand Coca Cola and Diet Co1e. In ey mar ets, the company has created new pac aging sizes to satisfy consumer demands.
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In the year A@@,, the company had a great success, as the strategy wor ed which resulted in ma ing Coca Cola Company the world/s leading company. In A@@+, company accomplished the crust of it/s strategy as 'orldwide volume increased by # percent with strong international growth of $ percent and clear signs that our 3orth 6merican business is growing solidly and predictable. 9arnings per share grew by +A percent, as we delivered on our commitment to create volume growth while aggressively Return on common e0uity grew from A" percent in A@@* to "+ percent this year. Return on capital increased from .& percent in A@@* to A* percent in A@@+. The company has generated free cash flow of B".. billion, up from BA.+ billion in A@@*, a clear indication of its underlying financial strength.
The strategy for the future of the company is very straightforward. The mar1eting strategy for the year .//! is as follows, 6ccelerate carbonated soft(drin growth, led by Coca(Cola. ;electively broaden the family of beverage brands to drive profitable growth. 8row system profitability and capability together with our bottling partners. ;erve customers with creativity and consistency to generate growth across all channels. =irect investments to highest potential areas across mar ets. =rive efficiency and cost(effectiveness everywhere.
2epsi/s 2roducts
2epsi Teem 4irinda 2epsi 4ax 2epsi 5emon 2epsi %lue 4ountain =ew *up
Rawalpindi and 2eshawar. The Coca(Cola ;ystem in 2a istan serves *@,@@@ customersIretail outlets. The Coca(Cola ;ystem in 2a istan employs .,+@@ people. =uring the last two years, The Coca(Cola ;ystem in 2a istan has invested over B."@ million C?.;.
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The basic proposition of our business is simple, solid and timeless. 'hen we bring refreshment, value, -oy and fun to our sta eholders, then we successfully nurture and protect our brands, particularly Coca(Cola. That is the ey to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business.
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Co e/s commercials basically based on young generations, ;o, the young generation is the target mar et of Co e because they want to represent Co e with the youth and energy but they also consider about the old people they ta e then as a co(target mar et.
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4a-or segments are basically those people who ta e this drin daily and those areas where the demand is higher then the other areas. There are so many people who ta e this drin daily and those people who ta e wee ly and those who ta e less often are always there as well. ;o, their basic segments are those people who ta e this drin regularly.
get extra money they thin about this soft drin .;o the decreasing per capita income effects badly in selling and production of this soft drin . 6nd to
get through with this difficulty there is need to increase the level of per capita income of 2a istan because it is much lesser than the rest of the countries.
Competitors
Co e/s ma-or competitor is K292;IL and there is no hesitation to say these because every one nows that and all the other cold drin s and water, coffee, tea are the competitors.
'eather
'eather is the third ma-or factor in effecting the Co e/s selling. This is underdeveloped mar et so the co e/s consumption in summers is &@G and in winters is #@G.
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Consumers firstly decide that they are going to have a soft drin . Then they compete brands with each other. 5i e they compete Co e with 2epsi and ;prite with *up and team .;o the ma-or competitor of Co e is 2epsi.
'hen they motivate to any other brand or on Co e it/s in instinct basically that based on messages derive certain feelings. %ut Coca Cola thin s in a different way, they believe that RC Cola, new coming 64R6T Cola, and all -uices, even they ta e water and tea as their competitors.
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6fter 4icro and macro analysis %rand Kco eL is primarily role .. 9nhance competition moments A. 'hen people watch cric et ". Through commercialization #. 7un time Though these strategies there could be better understanding and better connection with the public. These are the K ey consumptionL.
'indfall 2rofit
Can be windfall profit. They are the extras profit. 'hen the consumption the consumption is on boom. ;o, there is different ind of profits.
3ow the consumers now the 3ame of Co e, because Co e is the name, which is the most popular after the word Ko L. ;o people can better differentiate brands with each other.
%rand =ifferentiation
3ow different companies have got different brand names. ;o, people can distinguish between brands. Two ma-or brands Kco eL and K2epsiL also have brand names.
2epsi/s %rand
2epsi/s brand is basically is basically K49L branded. They use the temperament of K49L. In contrast to Co e they believe on individual struggle.
Threats
There are much more threats in increasing prices. %ecause same problem of substitute. If Co e increase the price lets say . rupee. Then people definitely won/t go for co e. They have the best substitute of Co e that is 2epsi. ;o these are the threats in increasing prices. Co e will lose the margin of its profit and can face loss.
;wot 6nalysis!
Strengths:
1. Effective advertising campaign 2. Youth sensitivity marketing 3. Collaboration ith other companies !. "orld#s largest beverage company $. %avorite drink
"eaknesses:
1. &ot all products are available in all divisions 2. Cost instability 3. &o performance in snack division
'hreats:
1. 'rend to ard healthy eating and drinking 2. (egulations regarding arning labels 3. )ossible entrants in the industry !. )arting of &estle and Coca*Cola
+pportunities:
1. ,se of digital marketing platform 2. -ncreasing investment 3. CS. divesting in the beverage industry
6nd this year in this year A@@, people were anxiously waiting that what interesting thing co e is going to offer.
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Our local mar eting strategy enables Co e to listen to all the voices around the world as ing for beverages that span the entire spectrum of tastes and occasions. 'hat people want in a beverage is a reflection of who they are, where they live, how they wor and play, and how they relax and recharge. 'hether you1re a student in the ?nited ;tates en-oying a refreshing Coca(Cola, a woman in Italy ta ing a tea brea , a child in 2eru as ing for a -uice drin , or a couple in Eorea buying bottled water after a run together, we1re there for you. 'e are determined not only to ma e great drin s, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Co e strives to be a good neighbor, consistently shaping our business decisions to improve the 0uality of life in the communities in which we do business. It1s a special thing to have billions of friends around the world, and we never forget it.
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2roduct Range
The total range of Coca Cola company in 2a istan includes! Co e. ;prite. 7anta. =iet Co e. 6nd company offers their products in different bottle sizes these includes! ;;R% 5R% 3R% 29T ..$ C63; Cstanders size returnable bottleD Clitter returnable bottleD Cno return bottleD or disposable bottle C..$ litter plastic bottleD Ctin pac ""@ mlD
2ac ing
Coca cola products are available in different pac ing A# regular bottle shell & bottle pac for ..$ pets .A bottles in a pac for disposable bottle A# cans in one pac .
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Trade 2romotion
Coca Cola Company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the mar et. 6nd that/s why coca cola seen more in the mar et. 6nd they have a good sale in the mar et because according to the expert which product seen more in the mar et that sells more. K;een as soldL They do agreements with a shop eepers and stores to exclusive sale in that stores. These stores are called as E9< accounts in their local language. 6nd co e also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.
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8etting shelves
They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.
;ale 2romotion
Company also do sponsorships with different college and school/s cafes and sponsors their sports events and other extra curriculum activities for getting mar et share.
?TC ;cheme
?TC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. 5i e once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children.
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Coca Cola Company ma es two types of selling =irect selling Indirect selling
=irect ;elling
In direct selling they supply their products in shops by using their own transports. They have almost #$@ vehicles to supply their bottles. In this type of selling company have more profit margin.
Indirect ;elling
They have their whole sellers and agencies to cover all area. %ecause it is very difficult for them to cover all area of 2a istan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.
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Coca cola company use different mediums 2rint media 2os material Tv commercial %illboards and holdings
2rint 4edia
They often use print media for advertisement. They have a separate department for print media.
2O; 4aterial
2os material mean point of sale material this includes! posters and stic ers display in the stores and in different areas.
TF Commercials
6s everybody now that TF is a most common entertaining medium so TF commercials is one of the most attractive way of doing advertisement. ;o Coca Cola Company does regular TF commercials on different channels.
Coca(Cola Concerts
6brar(ul(ha0/s distinct style, lyrics H songs have made him an instant hit among the masses in 2a istan. :is enormous popularity in the country H abroad is supported by Coca(Cola/s commitment towards providing healthy H fun(filled entertainment for the youth of 2a istan. Coca(Cola brought 6brar to his fans through holding concerts H featuring 6brar in a much(appreciated TFC H 44T featured throughout the country. The TFC campaign focused on the hectic lifestyle of a pop star who found respite H relief through Coca(Cola in short moments that he had to himself during a concert. Coca(Cola/s brand positioning of providing deep down refreshment for the body, soul H mind were captured accurately in the TFC H depicted aptly how the drin completes the moment for 6brar.
Coca(Cola 8O(R9=
Ouenching the thirst of motorist, pedestrians H passerby/s during 5ahore/s hottest summer season, Coca(Cola/s K8O(R9=L teams went out into the cities main 0uadrants to Kserve H refreshL on the spot with ice(cold Coca(Colas at discounted prices bac ed by a heavy 74 announcement campaign the K8O(R9=L stall, served well to promote the Coca(Cola industry.
too the limelight H gained momentum with a campaign promoting the uni0ue pac aging and its numerous consumer benefits .6 treat for the family, Coca(Cola/s 29T was offered through a Kprice(offL promotion that saidSSS. 5o out 6 get some
Coca(Cola H 3o ia
In 6ugust A@@., the new under(the(crown promotion K 7i1la 8iyaQLC'hat have u wonD was launched in collaboration with Chimera 3o ia.The promotion gave consumer a chance to win thousand/s of Coca(Cola branded 3o ia "".@ cellular phones on every purchase of *$@ml R8% bottle of Coca(Cola ,;prite, H 7anta.The other highlight of promotion was the 9Caught %ed :anded; campaign. %randed Coca(Cola with Rcaught red handed/ team in them went to 5ahore H Earachi for three days, with target that anyone being caught drin ing Coca(Cola will be awarded a no ia "".@ mobile phone H if someone is caught tal ing on a no ia mobile will win free supply of Coca(Cola. Caught red handed become a huge success among the masses as it was one to one interaction between the Coca(Cola brand H the consumers. This activity helped billed confidence and brand loyalty among core consumers.
The coca cola new campaign is coca cola tv mazza, it is a utc scheme in which people are getting television sets of different sizes. These days this scheme is very popular among the people.
Coca(Cola H 4c =onald/s
Coca(Cola H ey account of 4C =onald/s launched the K &e go togetherL -oint promotion to reinstate amongst consumers a real sense of the affinity that, both shares globally. The promotion ic ed off with pos material C=anglers, %unting etcD displayed at all 4C =onald/s restaurants along with a special offer for co e H fries.
=iet Co e
6fter the ac0uisition of the individual local franchise bottling facilities in .,,&, the company has successfully launched its first new product, diet co e, for the first time in almost " years. The was lin ed with three fashion shows as =iet Co e is related to fashion H fitness, but the ma-or hit was thematic fashion shows in restaurants, which are the ey accounts of the company as this has been never done before in 2a istan.
CO3C5?;IO3
6fter thorough research, we come to the conclusion that the mar eting strategy of Coca Cola is wor ing for them and the product is gaining popularity among youth day by day. Coca(Cola no doubt come the heart
beat of 2a istanis. Coca(Cola is one of the leaders in sponsoring the most important, thrilling events. 9.g. Cric et matches, concerts and many other social occasions. 9vent at the present they are organizing a Basant festival for which they busily organizing stuff<