SUBJECT

PRINCIPALS OF
MANAGEMENT

1
 PROJECT
ON
Coca Cola

PRESENETED TO:
Miss. Fatima Rehman Khan

PRESENTED BY:

The Storm Group

Majid Ali
M.Imtaiz
Habib Ahmad
Sarfraz Hussian
Abid javed
Azeem Azam
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 TABLE OF CONTENTS

CONTENTS

1. Acknowledgement.
2. Mission statement
3. Introduction.
4. Coca Cola.
a. Coca Cola International.
b. History.
5. Management.
6. Market share.
7. Financial report.
8. Dividends and Cash Plan.
9. Products.
10. Strategic planning.
11. Bottlers owned by Coca cola
12. Coca Cola Pakistan.
13. Major Competitors
a. Pepsi
b. History.
c. Financial assets.
• Market share.
• Financial report.
• Products.
• Methodology
14. Some basic information regarding marketing of coke
a. Target market:
b. Major segments:
c. Factors effecting sales:
d. Major competitors:
e. Strategies of quality:
f. Threats from competitors:
g. Targets that would like to attain:
h. Expanding target market
i. Threats and opportunities for price:
j. Strategies of getting goals i.e. “high profits”:
k. Marketing strategy:
l. Expectations for the coming year:
m. How coke determine the yearly budget:
15. Marketing strategies
16. Pest analysis

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 DEDICATION

This report is dedicated

to our beloved parents,
Who educated me and enabled me
to reach at this level.

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 ACKNOWLEDGEMENT

We think if any of us honestly reflects on who we are, how we got here, what we think we
might do well, and so forth, we discover a debt to others that spans written history. The
work of some unknown person makes our lives easier everyday. We believe it's appropriate
to acknowledge all of these unknown persons; but it is also necessary to acknowledge
those people we know have directly shaped our lives and our work.

First of all we would like to thank our teacher Miss. Fatima Rehman Khan for their
guidance through out the semester.

Then we would like to thank our CCBPL Management for providing us the information that
was required for completion of this project.

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6
The Mission Statement of the Coca Cola Company
Our mission statement is to maximize shareowner value over time.

In order to achieve this mission, we must create value for all the constraints we serve,
including our consumers, our customers, our bottlers, and our communities. The Coca Cola
Company creates value by executing comprehensive business strategy guided by six key
beliefs:

1. Consumer demand drives everything we do.

2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink
beverages they want to drink through out the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand our
share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-
term cash flows, and create economic value added by improving economic profit.

The Coca Cola system has more than 16 million customers around the world that sells or
serves our products directly to consumers. We keenly focus on enhancing value for these
customers and helping them grow their beverage businesses. We strive to understand
each customer’s business and needs, whether that customer is a sophisticated retailer in a
developed market a kiosk owner in an emerging market.

There are nearly 6 million people in the world who are potential consumers of our
company’s product. Ultimately, our success in achieving our mission depends on our ability
to satisfy more of their beverage consumption demands and our ability to add value for
customers. We achieve this when we place the right products in the right markets at the
right time.

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 Vision & Values
The world is changing all around us. To continue to thrive as a business over the next ten years and
beyond, we must look ahead, understand the trends and forces that will shape our business in the
future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's
what our 2020 Vision is all about. It creates a long-term destination for our business and provides us
with a "Roadmap" for winning together with our bottling partners
Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business by
describing what we need to accomplish in order to continue achieving sustainable, quality growth.
• People: Be a great place to work where people are inspired to be the best they can be.
• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy
people's desires and needs.
• Partners: Nurture a winning network of customers and suppliers, together we create mutual,
enduring value.
• Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
• Productivity: Be a highly effective, lean and fast-moving organization.
Our Winning Culture
Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020
Vision a reality.

Live Our Values

Our values serve as a compass for our actions and describe how we behave in the world.
• Leadership: The courage to shape a better future
• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, it's up to me
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands
• Quality: What we do, we do well

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Focus on the Market
• Focus on needs of our consumers, customers and franchise partners
• Get out into the market and listen, observe and learn
• Possess a world view
• Focus on execution in the marketplace every day
• Be insatiably curious
Work Smart
• Act with urgency
• Remain responsive to change
• Have the courage to change course when needed
• Remain constructively discontent
• Work efficiently
Act Like Owners
• Be accountable for our actions and inactions
• Steward system assets and focus on building value
• Reward our people for taking risks and finding better ways to solve problems
• Learn from our outcomes -- what worked and what didn’t
Be the Brand
• Inspire creativity, passion, optimism and fun

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 COCA COLA INTERNATIONAL
Introduction and History
Coca-Cola Enterprises, established in 1986, is a young company by the
standards of the Coca-Cola system. Yet each of its franchises has a strong
heritage in the traditions of Coca-Cola that is the foundation for this 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.

The Coca-Cola bottling system continued to operate as independent, local

businesses until the early 1980s when bottling franchises began to consolidate.
In 1986, The Coca-Cola Company merged some of its company-owned
operations with two large ownership groups that were for sale, the John T.
Lupton franchises and BCI Holding Corporation's bottling holdings, to form
Coca-Cola Enterprises Inc. The Company offered its stock to the public on
November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual
basis, total unit case sales were 880,000 in 1986.

In 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

Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending
machines of more than 200 countries.[1] It is produced by The Coca-Cola Company of
Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The
Coca-Cola Company in the United States since March 27, 1944). Originally intended as
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a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-
Cola was bought out by businessman As a Griggs Candler, whose marketing tactics led
Coke to its dominance of the world soft-drink market throughout the 20th century.

The company produces concentrate, which is then sold to licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially exclusive contracts with the
company, produce finished product in cans and bottles from the concentrate in combination
with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-
Cola to retail stores and vending machines. Such bottlers include Coca, which is the largest
single Coca-Cola bottler in North America and western Europe. The Coca-Cola Company
also sells concentrate for soda fountains to major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke
brand name. The most common of these is Diet Coke, with others including Caffeine-Free
Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola
Vanilla, and special editions with lemon, lime or coffee.

In response to consumer insistence on a more natural product, the company is in the

process of phasing out E211, or sodium benzoate, the controversial additive used in Diet
Coke and linked to DNA damage in yeast cells and hyperactivity in children. The company
has stated that it plans to remove E211 from its other products, including Sprite and Oasis,
as soon as a satisfactory alternative is found.[2]
History

This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden,
Louisiana.
The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical
Company, a drugstore in Columbus, Georgia by John Pemberton, originally as a
coca called Pemberton's French Wine Coca.[3][4] He may have been inspired by the
formidable success of Vin Mariani, a European coca wine.[5]

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In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton
responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine
Coca.[6]The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886.[7] It
was initially sold as a patent medicine for five cents[8] a glass at soda fountains, which were
popular in the United States at the time due to the belief that carbonated water was good
for the health.[9] Pemberton claimed Coca-Cola cured many diseases,
including morphine addiction, dyspepsia, neurasthenia, headache, and impotence.
Pemberton ran the first advertisement for the beverage on May 29 of the same year in
the Atlanta Journal.[10]

By 1888, three versions of Coca-Cola — sold by three separate businesses — were on the
market’s acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca
Cola Company in 1888.[11] The same year, while suffering from an ongoing addiction
to morphine,[12]Pemberton sold the rights a second time to four more businessmen: J.C.
Mayfield, A.O. Murphy, C.O. Mullahy and E.H. Blood worth. Meanwhile, Pemberton's
alcoholic[13] son Charley Pembertonbegan selling his own version of the product.[14]

John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other
two manufacturers could continue to use the formula. So, in the summer of 1888, Candler
sold his beverage under the names Yum Yum and Koke. After both failed to catch on,
Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his two
competitors out of the business. Candler purchased exclusive rights to the formula from
John Pemberton, Margaret Dozier and Wool folk Walker. However, in 1914, Dozier came
forward to claim her signature on the bill of sale had been forged, and subsequent analysis
has indicated John Pemberton's signature was most likely a forgery as well.[15]

In 1892 Candler incorporated a second company, The Coca-Cola Company (the current
corporation), and in 1910 Candler had the earliest records of the company burned, further
obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the
status of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias, after
the company made minor changes in the sourcing of some ingredients.[16]

Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall
advertisement was painted in the same year as well in Cartersville, Georgia.[17] Cans of
Coke first appeared in 1955.[18] The first bottling of Coca-Cola occurred
in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was
Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the
much later hobble-skirt design that is now so familiar. As a Candler was tentative about
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bottling the drink, but two entrepreneurs from Chattanooga, Tennessee, Benjamin F.
Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler
signed a contract giving them control of the procedure for only one dollar. Candler never
collected his dollar, but in 1899 Chattanooga became the site of the first Coca-Cola bottling
company.[19] The loosely termed contract proved to be problematic for the company for
decades to come. Legal matters were not helped by the decision of the bottlers to
subcontract to other companies, effectively becoming parent bottlers.[20]

Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small
quantities, as an over-the-counter remedy for nausea or mildly upset stomach.
New Coke
Main article: New Coke

Coca-Cola sign in Colorado City, Texas

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the
drink with "New Coke". Follow-up taste tests revealed that most consumers preferred the
taste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared
for the public’s nostalgia for the old drink, leading to a backlash. The company gave in to
protests and returned to a variation of the old formula, under the name Coca-Cola Classic
on July 10, 1985.
21st Century

On February 7, 2005, the Coca-Cola Company announced that in the second quarter of
2005 they planned to launch a Diet Coke product sweetened with the artificial sucralose,
the same sweetener currently used in Pepsi One.[21][22] On March 21, 2005, it announced
another diet product, Coca-Cola Zero, sweetened partly with a blend of aspartame
and acesulfame potassium.[23] In 2007, Coca-Cola began to sell a new "healthy soda": Diet
Coke with vitamins B6, B12, magnesium, niacin, and zinc, marketed as "Diet Coke Plus."

On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the
first time since the Arab League boycotted the company in 1968.[24]
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In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola."
The word "Classic" was truncated because "New Coke" was no longer in production,
eliminating the need to differentiate between the two.[25] The formula remained unchanged.

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce
bottles sold in parts of the southeastern United States.[26] The change is part of a larger
strategy to rejuvenate the product's image.[26]

In November 2009, due to a dispute over wholesale prices of Coca-Cola

products, Costco stopped restocking its shelves with Coke and Diet Coke.[27]

MANAGEMENT:
The hierarchy of Coca Cola Company is as follows.

Chairman
Board of governors

Vice Chairman and chief operating officer

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

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PRODUCTS:
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 drinks but also other drinks.
While launching its product, the marketing team considers the culture of the country.

Major brands of coca cola

• Coke
• Sprite
• Fanta
• Diet coke
• Coke classic

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Among the soft drinks Fanta and Sprite become successful along with the major brand
Coca Cola and Diet Coke. In key markets, the company has created new packaging sizes
to satisfy consumer demands.

Increasingly, Mexican families have lunch together at home. The average Mexican
household drinks two-and-a-half liters or more of soft drinks during that break, while a two-
liter bottle was the largest available package. So the company introduced a convenient 2-½
liter bottle to select regions, contributing to the sale of nearly 1.5 billion unit cases of Coca-
Cola in Mexico this year. This larger bottle will complete its nationwide rollout in 2002. In
China, Coca-Cola is an integral part of holiday celebrations and the family get-togethers
that accompany such events. Through an intense focus on Coca-Cola, innovation and new
beverages, it has achieved volume growth of 10 percent in 2001. In China, sales of Coca-
Cola increased by 6 percent. In the United States, recognizing that consumers often enjoy
their diet Coke with a slice of lemon, the company "bottled" the concept. The result—diet
Coke with lemon—contributed to volume growth of 4 percent for the number-one diet.

Soft drink in North America: diet Coke. The company increased its two largest bottle sizes
during the 2001 holidays, and festival packaging helped drive a 6 percent volume increase
for Coca-Cola. The packaging innovations do not just involve resizing. The company has
also responded to consumers' changing fashion styles with new bottles.

With brands such as Minute Maid, Hi-C, Simply Orange and Disney juices and juice
drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo in Africa.

This year, the company re-launched its global sports-drink business, investing in new
products, packaging, positioning and marketing. The results speak for themselves: it’s
global sports drinks, led by Powerade and Aquarius, grew by 13 percent in 2002, nearly
double the growth rate of the worldwide sports-drink category. Revitalized in the United
States, the company introduced Powerade in nearly every major Western European
market, including Great Britain, Germany and Spain, as well as in Mexico and Latin
America. The company launched 27 products in 2001.

The commitment of the company to packaging innovation also resulted in new initiatives for
our fountain business, a channel through which many consumers enjoy Coca-Cola. In the
United States, the company developed Fountain, a total beverage dispensing system that
is more flexible and more reliable. Two years of research resulted in a dispensing system
that provides exceptional beverage quality, easy to upgrade technology, brand and graphic
customization and improved reliabilit

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MAJOR COMPETITOR
PEPSI INTERNATIONAL

HISTORY
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; the beverage businesses of Pepsi-
Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages
International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat
cereals and other food products. PepsiCo brands are available in nearly 200 countries and
territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively
young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company,
including Gatorade, in 2001.would entertain the listener with the latest musical selections
rendered by violin or piano or both. The new name, “Pepsi Cola”, is derived from the two of
the principle ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At that
time, Bradham’s advertising praises his drink as “Exhilarating, invigorating, aids digestion”.

1990-2002
The advertisement of the Pepsi changes to, “You got the right one baby, Uh-Huh!”.With the
extensive usage of the stars in the adds, the popularity of Pepsi increase. In 1992 Pepsi-
Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling
ready-to-drink tea brand in the United States. Outside the United States, Pepsi-Cola
Company's soft drink operations include the business of Seven-Up 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. As in
Pakistan, they only entered beverage industry. They have eleven bottlers covering whole
Pakistan. The plant operating here is Riaz Bottlers (Pvt) LTD. This plant was established at
Lahore in 1974. The total capacity of the plant is 30,000 cases per day. They have four
filling lines in the plant operating on the three shift bases. Each shift is of eight hours. They
have permanent work force of 750 people and they employee approximately 1000 people
more on temporary basis during summer season.

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Pepsi’s Products

• Pepsi

• Teem

• Mirinda

• Pepsi Max

• Pepsi Lemon

• Pepsi Blue

• Mountain Dew

• 7up

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COCA COLA PAKISTAN
The Coca-Cola Company began operating in Pakistan in 1953. Coca-Cola, Fanta and
Sprite are the brands in Pakistan. The Coca-Cola System in Pakistan operates through
eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited
(CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad,
Rahimyar Khan, Multan and Lahore. The remaining two plants, independently owned, are
in Rawalpindi and Peshawar. The Coca-Cola System in Pakistan serves 70,000
customers/retail outlets. The Coca-Cola System in Pakistan employs 1,800 people. During
the last two years, The Coca-Cola System in Pakistan has invested over $130 million (U.S.)

49 years of refreshment in Pakistan

Coca-Cola introduced in Pakistan 1953
Fanta introduced in Pakistan 1965
Sprite was introduced 1972
Diet Coke & Fanta Lemon 2001

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PROMISE OF COKE
The basic proposition of our business is simple, solid and timeless. When we bring
refreshment, value, joy and fun to our stakeholders, then we successfully nurture and
protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation
to provide consistently attractive returns to the owners of our business.

TARGET MARKET
Coke’s commercials basically based on young generations, So, the young generation is the
target market of Coke because they want to represent Coke with the youth and energy but
they also consider about the old people they take then as a co-target market.

MAJOR SEGMENTS
Major segments are basically those people who take this drink daily and those areas where
the demands is higher then the other areas. There are so many people who take this drink
daily and those people who take weekly and those who take less often are always there as
well. So, their basic segments are those people who take this drink regularly.

FACTORS EFFECTING SALES

There are so many factors, which affects the sale of coke. Here we are discussing three
major factors which effects coke.

• Per capita income

• Competitors

• Weather

Per Capita Income

First we will discuss about “ Per capita income”. This is major factor that affects the sale of
this soft drink. Because which every passing year budgets are becoming very strict and
tight in order to purchase things. So the disposable incomes of the people are coming
down. They spend heavily on rents, utilities, and education and basic necessities and after
that when they get extra money they think about this soft drink .So the decreasing per
capita income effects badly in selling and production of this soft drink.

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 And to get through with this difficulty there is need to increase the level of per capita
income of Pakistan because it is much lesser than the rest of the countries.

Competitors
Coke’s major competitor is “PEPSI” and there is no hesitation to say this because every
one knows that and all the other cold drinks and water, coffee, tea are the competitors.

Weather

Weather is the third major factor in effecting the Coke’s selling. This is underdeveloped
market so the coke’s consumption in summers is 60% and in winters is 40%.

MAJOR CUSTOMERS NEED

First of all the majority don’t care that what they are going to have. In other words, they
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 “WHAT COLD THEY SOLD”
Consumer’s availability in brands is basically works like:
Push availability
Pull consumer’s demand.

For this reason Coca-Cola have provided their coolers and freezers in the market. They
have maximum number of coolers and freezers in the market. They provide this
infrastructure free of cost just to provide child coke to their customer, which they want to be
purchase.
Their salesman and mechanics regularly visit all the shops where coke has its
infrastructure to check that either it is in proper condition or not, if not then they immediately
change or repair it.

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MAJOR COMPETITORS
Consumers firstly decide that they are going to have a soft drink. Then they compete
brands with each other. Like they compete Coke with Pepsi and Sprite with 7up and
team .So the major competitor of Coke is Pepsi.
When they motivate to any other brand or on Coke it’s in instinct basically that based on
messages derive certain feelings.
But Coca Cola thinks in a different way, they believe that RC Cola, new coming AMRAT
Cola, and all juices, even they take water and tea as their competitors.

STRATEGIES OF QUALITY
After Micro and macro analysis Brand “coke” is primarily role
1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
Though these strategies there could be better understanding and better connection with the
public. These are the “key consumption”.

THREATS FROM COMPETITORS

Threats are well planned. Price is the major threat. When price goes certain beyond the
exact price whether come down or go higher its effects the consumption of soft drink.
Because when the price go higher people go for the substitute of “coke” i.e. Pepsi.
And when price goes down they think that there is must be some thing wrong in it.
In short it all depends on customer’s perception.

TARGETS THAT WOULD LIKE TO ATTAIN

Every organization runs on the bases of profit maximization so Coke is also looking for a
high profit margin.

There are three major ways of making money

• Over night profit

• Windfall profit
• Ethical and un-ethical ways

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Over Night Profits
They could be over night profit that is for the number 1 brand for the year. This could be got
my increasing sales volume

Windfall Profit
Can be windfall profit. They are the extras profit. When the consumption the consumption is
on boom. So, there is different kind of profits.

Ethical And Unethical Ways

Profit can also get through ethical and unethical ways. They believe on this quote
“ Every thing is fare in love and war”.

Some profits stays for some time like “over night profits” and some just come and go like
“wind fall profits”. And they can also get profit through different approaches.

EXPANDING TARGET MARKET

In last 2 years Coke has come back in aggressive manner.

• Consumer has choice

• Attractive brand name
• Brand differentiating

Consumer Has Got Choice

Now the consumer has got choice. Because now they know the name of another big brand,
though coke is the 2nd best name but it can get a better position after some time

Attractive Brand Name

Now the consumers know the Name of Coke, because Coke is the name, which is the most
popular after the word “ok”. So people can better differentiate brands with each other.

Brand Differentiation
Now different companies have got different brand names. So, people can distinguish
between brands. Two major brands “coke” and “Pepsi” also have brand names.

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Coca Cola’s Brand
Coca cola is “US” brand. Because they believe in the togetherness, being people together
and friends are being together. Coca Cola strongly believes that Pakistani temperament is
“US” not “ME”

Pepsi’s Brand
Pepsi’s brand is basically is basically “ME” branded. They use the temperament of “ME”. In
contrast to Coke they believe on individual struggle.

THREATS AND OPPORTUNITIES FOR PRICE

Opportunities
If Coke is considered a luxury product. Then there is the tax rate system
15% - sales tax
20% - excise duty
27% - goes to government
03% - In making Budget

After paying all these taxes coke has to pay electricity charges. We have to spend on
distributions. After paying all these expenses Coke’s margin squeezed and consumers
have to pay for increasing tariffs.
These are the opportunities through which we can increase the price and can get profits.

Threats
There are much more threats in increasing prices. Because same problem of substitute. If
Coke increase the price lets say 1 rupee. Then people definitely won’t go for coke. They
have the best substitute of Coke that is Pepsi. So these are the threats in increasing prices.
Coke will lose the margin of its profit and can face loss.

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STRATEGIES OF GETTING GOALS I.E. “HIGH
PROFITS”
To increase the price is the least thing, which Coke can adopt. There are so many ways
through which Coke can increase the profits. Some major ways are as follows.

• Volume can be increased

• Interest level of consumers
• To take part in energetic festivals

How to increase the volume of consumers?

Coke can increase the volume by expanding the industry of coke. Through advertisements,
offering different interesting things to attract people towards this product.

How to increase the interest level of consumers?

Coke is increasing the interest level of consumers by offering different flavors.
For example Coke is increasing the number of flavors in “Fanta”, this is one of the product
of coke. Through offering different flavors Coke can increase the Level of consumers and
through this profits can be gained.

How to take part in energetic festivals?

Coke is already taking part in the festival like “Basant” since last 3 years. Coke offers
different attractive things in their festival and through this Coke gained high profit and
consumption of coke increased on these occasions.

And this year in this year 2002 people were anxiously waiting that what interesting thing
coke is going to offer.

25
Fanta & Sprite Launched
In November 2000moving on to the Sprite & Fanta brands, the consumers in Pakistan
witnessed a soft launch in essence. The Coca-Cola Company declared the new “Non-
Returnable” bottles of Sprite & Fanta as the “New, On the Go Packs” flaunting the
innovative packaging convenience. Fanta & Sprite are sure to enjoy considerable success
in Pakistan.

Diet Coke
After the acquisition of the individual local franchise bottling facilities in 1996, the company
has successfully launched its first new product, diet coke, for the first time in almost 3
years. The was linked with three fashion shows as Diet Coke is related to fashion & fitness,
but the major hit was thematic fashion shows in restaurants, which are the key accounts of
the company as this has been never done before in Pakistan.

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PEST ANALYSIS OF COCA-COLA
There are four variables, which we will discuss in our report, they are:

POLITICAL VARIABLES

Political variables Strongly Some what No Some what Strongly

Effected Effected Effect Effected Effected
++ + +− − −−
Effects of government NE
regulations &
deregulations
Effect of environmental YES
protection laws if any
Import and export NE
regulations
Effect of political NE
conditions in certain
countries of Coke
Any effect of election, YES
military take over,
Revolution at Coke

Conclusion Of Political Analysis:

As far as the above table is concerned it could be seen that there are very little
chances of “political variables” to effect the coke’s production and selling behavior.
In the “political variables” most of the things are related to Governmental activities.
So, they don’t leave any good or bad impact in the Industry of coke.

And there are some exceptional things like: “environmental protection laws” they
some what effect the industry of Coke. From last two years Government is going to
be really very much conscious about the environment. But after making the
adjustments in plants and applying the proper way of wastage the chances of being
affected by the “protection laws” are going to be diminished. So it impact good for
the Coke’s reputation. And the second thing in political variables which effects Coke
is “elections & military take over” Because in the days of elections and marshal
law’s condition the countries production in any field is declined. So it affects slightly
the revolution of Coke.

So “political conditions” are over all leave neutral effects on coke’s industry.

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 ECONOMICAL VARIABLES

Economical Variables Strongly Some what No Some what Strongly

Effected Effected Effect Effected Effected
++ + + − − −−
Do soaring interest rates YES
make business task any
harder
Any effect due to YES
inflation
Anything done to reduce YES
unemployment
Any effect of 11th NE
September 2001,
incident at Coke in
Pakistan

Conclusion Of Economical Analysis

It could be seen that “economical variables” highly affects the Coke’s resolution. Economic
factors are those actors who effect the production of any industry. So, Coke is not the out of
question. If the economic conditions of the country is not that strong and Coke increases its
Price in this situation. Then it would impact highly negative. And inflation is also not a good
position for any country’s production point of view. It also impacts highly negative in the
Coke’s production.

And as a country concerned like “Pakistan” where the unemployment rate is very much
high. The Coca-Cola system in Pakistan employs 1,800 people. During the last 2 years, the
Coca-Cola system in Pakistan has involved over $130 million (U.S).
When we draw the conclusion of “economic variables”. Then we come to know that if
economic variables are in the favorable position of country then they impact good other
wise the impact highly bad.

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 SOCIAL VARIABLES

Social variables Strongly Some what No Some what Strongly

Effected Effected Effect Effected Effected
++ + + − − −−
Effects of advertisement of YES
Coke on Public popularity
How will do Coke’s YES
contribution affect charity
organizations of Pakistan
Has rising consciousness YES
of natural resources in
people effected your “save
environment activities.

CONCLUSION OF SOCIAL ANALYSIS

EDUCATION
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families around the
world.
The Coca-Cola Company is committed to helping people make their dreams come true. All
over the world, we are involved in innovative programs that give hard-working, Knowledge-
hungry students books, supplies, places to study and scholarships. From youth in Brazil to
first generation scholars, educational programs in local communities are our priority.

ENVIRONMENT
A large part or our relationship with the world around us is our relationship with the physical
world. While we have always sought to be sensitive to the environment, we must use our
significant resources and capabilities to provide active leadership on environmental issues,
particularly those relevant to our business. We want the world we share to be clean and
beautiful. We are always innovating to bring you different delicious beverages. This same
spirit of innovation comes alive in our environment programs. We’re committed to
preserving our environment, from use of more than $ 2 billion (U.S) a year in recycling
content and suppliers, and environment

Management initiatives, down to very local neighborhood collection and beautification

efforts. Here’s a sample of what we’re doing in different communities around the world
regarding the conservation of water and natural resources, climate changes, waste
environment education.

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The Coca-Cola system in Pakistan operates through eight bottlers. Four of which are
majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL).

COMMUNITY INVOLVEMENT:
In 2000, when eastern Pakistan suffered its worst droughts, The Coca-Cola system initiated
a famine-relief program to help victims and was the first private-sector company to assist.
The Coca-Cola system in Pakistan initiated a voluntary Hajj program that allows one
employee from each plant, selected through a draw, to be sent on the Holy Pilgrimage to
Mecca at the Company’s expense.

TECHNOLOGICAL VARIABLES

Technological Strongly Some what No Some what Strongly

variables Effected Effected Effect Effected Effected
++ + + − − −−
Have business YES
innovations effectively
promoted your
business
Has the government’s YES
regulations ever
hindered in importing
technical equipment
Does Coke help in YES
promoting paperless
environment

Conclusion Of Technological Analysis

Of course business innovation leaves highly good impacts in the business of Coke. As coke
use more advance technology in its production process. It will resulted in increment of their
production through out the country.

As far as the “governmental hindrances” are concerned the impacts highly bad on coke’s
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
computers are the basic need of any person now a days. And though it’s a big industry so it
is promoting the trend of paperless environment. And it is giving the way of other industries
to come to new technologies and into a new world of business. Through computers coke
can increase the efficiency of its business and can have up –to-date data about their
productions.

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OVER ALL RESULTS OF PEST ANANYSIS
After our studies and analysis of CCBPL (Coca-Cola Beverages Private Limited), we came
up with the very interesting report of facts and figures. Coca-Cola is no doubt one of the
most popular beverage company and its product COKE is one of most consumed cola
drink. They spend billion of dollars on their advertisement, promotions and recreational
campaign.

Coca-Cola is a close competitor of Pepsi and it certainly gives its rival a tough time. Coca-
Cola is a 27% shareholder in the Pakistan market and they don’t want to stop here!! Its
target market is to achieve a much higher %age. Coca-Cola has about 2000 employees at
Pakistani plants. Lahore plant of Coca-Cola is one of the beautiful plant in Asia, Situated on
Raiwand Road.

Coca-Cola has always had a close consumer and supplier relationship with its customers.
Its entertaining and colorful advertisements have always and will always rock the media.
Pakistani rock stars, sportmen and actors have played a very vital role in making Coca-
Cola such a popular beverage.

SWOT Analysis of coca-cola

Strengths Weaknesses
Internal -Popularity -Word of mouth
-well known -lack of popularity of many Coca
-branding obvious and easily Cola’s brands
recognized -Most unknown and rarely seen
-A lot of finance -result of low profile or non-existent
-customer loyalty advertising
-International Trade -health issues

Threats Opportunities
External -changing health-consciousness -many successful brands to pursue
attitude -advertise its less popular products
-legal issues -buy out competition.
-Health ministers -More Brand recognition
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 -competition (Pepsi)

Strengths- Coca Cola is an extremely recognizable company. Popularity is one of its

superior strengths that is virtually incomparable. Coca Cola is known very well
worldwide. It's branding is obvious and easily recognized. Things like, logos and promos
shown on t-shirts, hats, and collectible memorabilia. Without a doubt, no beverage company
compares to Coca Cola's social popularity status. Some people buy coke, not only because
of its taste, but because it is widely accepted and they feel like they are part of something so
big and unifying. At the other end of the spectrum, certain individuals choose not to drink
coke, based solely on rebelling from the world's idea that coke is something of such great
power. Overwhelming is the best word to describe Coca Cola's popularity. It is scary to think
that its popularity has been constantly growing over the years and the possibility that there
is still room to grow. If you speak the words “Coca Cola”, it would definitely be recognized all
around the world. Money is another thing that is strength of the company. Coca Cola deals
with massive amounts of money all year. Like all businesses, they have had their ups and
downs financially, but they have done well in this compartment and will continue to do well
and improve. The money they are earning is substantially better than most beverage
companies, and with that money, they put back into their own company so that they can
improve. Another strength that is very important to Coca Cola is customer loyalty. The 80/20
rule comes into effect in this situation. Eighty percent of their profit comes from 20% of their
loyal customers. Many people/families are extremely loyal to Coca Cola. It would not be rare
to constantly find bottles and cases of a product such as coke in a house. It seems that
some people would drink coke religiously like some people would drink water and milk. This
is an improbable feat. Customers will continually purchase these products, and will probably
do so for a very long time. If two parents were avid Coca Cola drinkers, this will be passed
down do their children as they grow loyal to the company. With Coca Cola’s ability to sell
their product all over the world, customers will continue to buy what they know and what
they like…Coca Cola products.

Weaknesses- Coca Cola is a very successful company, with limited weaknesses.

However they do have a variety of weaknesses that need to be addressed if they want to
rise to the next level. Word of mouth is probably a strength and weakness of every
company. While many people have good things to say, there are many individuals who are
against Coca Cola as a company, and the products in which they produce. Word of mouth
unfortunately is something that is very hard to control. While people will have their opinions,
you have to try to sway their negative views. If bad comments and views are put out to
people who have yet to try Coca Cola products, then that could produce a lost customer
which shows why word of mouth is a weakness. Another aspect that could be viewed as a
weakness is the lack of popularity of many of Coca Cola’s drinks. Many drinks that they
produce are extremely popular such as Coke and Sprite but this company has
approximately 400 different drink types. Most are unknown and rarely seen for available
purchase. These drinks do not probably taste bad, but are rather a result of low profile or
non existent advertising. This is a weakness that needs to be looked at when analyzing their
company. Another weakness that has been greatly publicized is the health issues that
surround some of their products. It is known that a popular product like coke is not very
beneficial to your body and your health. With today’s constant shift to health products, some

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products could possibly loose customers. This new focus on weight and health could be a
problem for the product that are labeled detrimental to you health.

Opportunities- Coca Cola has a few opportunities in its business. It has many successful
brands that it should continue to exploit and pursue. Coca Cola also has the opportunity to
advertise its less popular products. With a large income it has the available money to put
some of these other beverages on the market. This could be very beneficial to the company
if they could start selling these other products to the same extent that they do with their
main products. Another opportunity that we have seen being put to use before is the ability
for Coca Cola to buy out their competition. This opportunity rarely presents itself in the world
of business. However, with Coca Cola’s power and success, such a task is not impossible.
Coca Cola has bought out a countless number of drink brands. An easy way to turn their
profit into your profit is too buy out their company. Even though this may cost a vast amount
of money initially, in the long run, if all goes to plan, it results in a large profit. Also, the
company will no longer need to worry about this product being part of the competition.
Brand recognition is the significant factor affecting Cokes competitive position. Coca Cola is
known well throughout 90% of the world population today. Now Coca Cola wants to get
there brand name known even better and possibly get closer and closer to 100%. It is an
opportunity that most companies will ever dream of, and would be a supreme
accomplishment. Coca Cola has an opportunity to continue to widen the gap between them
and their competitors.

Threats- Despite the fact that Coca Cola dominates its market, it still has to deal with many
threats. Even though Coca Cola and Pepsi control nearly 40% of the entire beverage
market, the changing health-consciousness attitude of the market could have a serious
effect on Coca Cola. This definitely needs to be viewed as a dominant threat. In today’s
world, people are constantly trying to change their eating and drinking habits. This could
directly affect the sale of Coca Cola’s products. Another possible issue is the legal side of
things. There are always issues with a company of such supreme wealth and popularity.
Somebody is always trying to find fault with the best and take them down. Coca Cola has to
be careful with lawsuits. Health minister could also be looked at as a threat. Again, some
people may try to exploit the unhealthy side of Coca Cola’s products and could threaten the
status and success of sales. Other threats are of course the competition. Coca Cola’s main
competition being Pepsi, sells a very similar drink. Coca Cola needs to be careful that Pepsi
does not grow to be a more successful drink. Other product such as juices, coffee, and milk
are threats. These other beverage options could take precedent in some people’s minds
over Coca Cola’s beverages and this could threaten the potential success it presents
again.

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CONCLUSION:
Coca-Cola no doubt come the heart beat of Pakistanis. Coca-Cola is one of the leaders in
sponsoring the most important, thrilling events. E.g. Cricket matches, concerts and many
other social occasions. Event at the present they are organizing a Basant festival for which
they busily organizing stuff.

So…

“ Jo chaho ho jaye coca-

cola enjoy ”

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