1

Advance Performance Management Project

University Of Management & Technology.

 2
Advance Performance Management Project

University Of Management & Technology.

 3
Advance Performance Management Project

ACKNOWLEDGEMENT

First and foremost, we are grateful to ‘ALLAH ALMIGHTY’, most beneficent and the
most merciful Who made us able to complete our given project successfully.

We would also like to pay tribute to the benefactor of humanity ‘HOLY PROPHET’
(P.B.U.H.), Who gave us complete knowledge on every aspect and field of life.

In short of words, to express our modest gratitude and recognition to cuddly and loveable
‘PARENTS’, who at each and every moment prays for our success. We are also deeply thankful
to our ‘TEACHERS’ to have taught us from childhood to still especially ‘SIR.M.Gulzar’, who
taught us ‘Advance Performance Management”.

Thank you all, without you this would have not been possible.

University Of Management & Technology.

 4
Advance Performance Management Project

DEDICATION

We dedicate this report to our parents and friends in recognition of their worth and to
our teachers who are the guiding force for us and it is their effort and hard work that showed us
the path of success and prosperity which would be there for us for the rest of our life.

Our thanks to all those who have generously contributed their theoretical knowledge to
this report including our teachers. Without their understanding and support, completion of this
work would not have been possible.

We hope people find this report useful and the subject matter adds to their knowledge.

“Keep your dreams alive. Understand to achieve anything requires faith and belief in
yourself, vision, hard work, determination, and dedication. Remember all things are
possible for those who believe.”

University Of Management & Technology.

 5
Advance Performance Management Project

Table of contents

EXECUTIVE SUMMARY

The scope of the project is to discuss the performance adopted and applied by ‘Coca
Cola’, Pakistan. From the last month or so our group is in the process of a continuous
research on marketing functions and strategies for best performance adopted by ‘Coca Cola’.
These functions mainly include the market satisfaction, financial measures, customer
satisfaction, Pricing Tools and Strategies and Placement and Distribution Strategies as well as
other market strategies.

Moreover the project also discusses the analysis of , market growth and trend,
opportunity analysis and strategies for creating competitive advantage adopted by ‘Coca
Cola’.

We will like to add that the project will provide the readers and listeners very high
profile information about the performance as a whole and also about the Coca Cola
Company. In the end we hope that the project will result very profitable for the readers and
Coca Cola.

INTRODUCTION

Founded in 1886, the coca-cola company is the world’s leading manufacturer,

marketer, and distributor of nonalcoholic beverage concentrates and syrups. The company’s
corporate headquarters are in Atlanta, with local operations in over 200 countries around the
world.

Although Coca-Cola was first created in the United States, it quickly became popular
wherever it went. Our first international bottling plants opened in 1906 in Canada, Cuba and
Panama, soon followed by many more. Today, Coca-Cola has a portfolio of more than 3,000
beverages. Coca-Cola has 92,400 employees worldwide. More than 70 percent of our income
comes from outside the U.S., but the real reason we are a truly global company is that our
products meet the varied taste preferences of consumers everywhere.

“ Know the most recognized word on the planet after “OK”!

University Of Management & Technology.

 6
Advance Performance Management Project

PROJECT OBJECTIVE

The objective of this project is to give overview of performance of ‘Coca Cola’ to

provide a broad selection of the nonalcoholic ready to drink beverages to potential consumers
in Pakistan. Analysis carried out on nonalcoholic ready to drink beverages market in terms of
size and growth, covering different segments present in the market.

It includes introduction of the company and the product, internal and external
environment, market and competitor analysis, and marketing mix.

Vision:
The world is changing all around us. To continue to thrive as a business over the next 10
years and beyond we must look ahead. Understanding the trends and forces that will shape
our business in the future and moving swiftly will prepare us for what's to come.

These are the declarations of our overall mission and goals, and the values that we are guided
by as a company and as individuals.

The Coca-Cola Company Vision:

To achieve our mission, we have developed a set of goals, which we will work with
our bottlers to deliver:

Profit: Maximizing return to shareholders, while being mindful of our overall responsibilities

People: Being a great place to work, where people are inspired to be the best they can be

Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy
people's desires and needs

Partners: Nurturing a winning network of partners and building mutual loyalty

Planet: Being a responsible global citizen that makes a difference

Productivity: Be a highly effective, lean and fast-moving organisation.

University Of Management & Technology.

 7
Advance Performance Management Project

MISSION STATEMENT
Mission statement is a statement of organization’s purposes that what it wants to
accomplish. In order to achieve mission of increasing market share and maintaining good
relations with our customers all over the world, we wish to create value for all the constraints
we serve, including our consumers, our bottlers, and our communities. The Coca Cola
Company creates value by executing business strategy guided by four key beliefs:

 Customer is king; Customer demand drives everything we do.

 Brand Coca Cola is the core of our business.
 We will serve consumers a broad selection of the nonalcoholic ready-to-drink
beverages they want to drink throughout the day.
 We will be the best marketers in the world.

Everything we do is inspired by our enduring Mission:

 To Refresh the World...in body, mind, and spirit.

 To Inspire Moments of Optimism...through our brands and our actions.
 To Create Value and Make a Difference...everywhere we engage.

“The Coca-Cola Company Values”:

Our shared values that we are guided by are:

 Leadership
 Passion
 Integrity
 Accountability
 Collaboration
 Innovation
 Quality

GOALS OF COCA COLA

All CCBPL plants setup their own goal to achieve the objective.

The company goal is

“To increase sales volume and gain market leadership in Lahore.”

University Of Management & Technology.

 8
Advance Performance Management Project

Market satisfaction:
The purpose for segmenting a market is to allow your marketing/sales program to
focus on the subset of prospects that are "most likely" to purchase your offering. If done
properly this will help to insure the highest return for your marketing/sales expenditures.
Depending on whether you are selling your offering to individual consumers or a business,
there are definite differences in what you will consider when defining market segments.

Category of Need
The first thing you can establish is a category of need that your offering satisfies. The
following classifications may help.

For businesses:

Strategic –
your offering is in some way important to the enterprise mission, objectives and
operational oversight. For example, a service that helped evaluate capital investment
opportunities would fall into this domain of influence. The purchase decision for this
category of offering will be made by the prospect's top level executive management.
Operations –
your offering affects the general operating policies and procedures. Examples might
be, an employee insurance plan or a corporate wide communications system. This purchase
decision will be made by the prospect's top level operations management.
Functional –
your offering deals with a specific function within the enterprise such as data
processing, accounting, human resources, plant maintenance, engineering design,
manufacturing, inventory control, etc. This is the most likely domain for a product or service,
but you must recognize that the other domains may also get involved if the purchase of the
product or service becomes a high profile decision. This purchase decision will be made by
the prospect's functional management.

For the individual consumer:

Social Esteem or Pleasure –

your offering satisfies a purely emotional need in the consumer. Examples are a mink
coat or a diamond ring. There are some products that are on the boundary 13 between this
category and the Functional category such as a Rolex watch (a Timex would satisfy the
functional requirement and probably keep time just as well).

Functional - your offering meets a functional requirement of the consumer such as a broom,
breakfast cereal or lawnmower.

University Of Management & Technology.

 9
Advance Performance Management Project

Segmentation of Needs

Then you should establish what the need is and who is most likely to experience that
need. Your segmentation will be determined by a match between the benefits offered by your
offering and the need of the prospect. Some "need" categories for segmentation include:

Reduction in expenses
Prospects might be businesses that are downsizing (right sizing), businesses that have
products in the mature stage of their life cycle or individuals with credit rating problems.
Improved cash flow
Prospects might be businesses that have traditionally low profit margins, businesses
that have traditionally high inventory costs or individuals that live in expensive urban areas.
Improved productivity
Prospects might be businesses that have traditionally low profit margins, businesses
that have recently experienced depressed earnings or individuals with large families.
Improved manufacturing quality
Prospects might be businesses with complex, multi-discipline manufacturing
processes.

Improved service delivery

Prospects might be service businesses in highly competitive markets, product
businesses requiring considerable post-sale support or individuals in remote or rural areas.
Improved employee working conditions/benefits Prospects might be businesses where
potential employees are in short supply. Improvement in market share/competitive position
Prospects might be new entrants to a competitive market.

Need for education

Prospects might be businesses or individuals looking for books on business planning,
or seminars on Total Quality Management.

Involvement with social trends

14 Prospects might be businesses concerned with environmental protection, employee
security, etc.or individuals who believe in say 'no' to drugs, anti-crime, etc.

Specific –
Relating to product/service characteristics.Prospects might be businesses or
individuals interested in safety, security, economy, comfort, speed, quality, durability, etc.

Factors that segment prospects

Having determined the more general segmentation characteristics you can proceed to
a more detailed analysis of the market. There are literally thousands of ways to segment a
market, but the following are some of the more typical segmentation categories.

University Of Management & Technology.

 10
Advance Performance Management Project

For businesses:

Industry by SIC code

This is especially beneficial for vertical market offerings. Size - revenues, employees,
locations In general if your offering is highly sophisticated, requires significant resources or
provides greater value based on volume, then the target should be the larger enterprises. Job
position/responsibilityExamples of offerings might be planning software for managers or
cleaning agents for maintenance managers. Climate-Examples of offerings might be
dehumidifiers in areas near the ocean or snow plows in northern areas.Time related factors-
Some services in this category are vacation related industries in summer and tax planners in
the spring. Language-An example of a language specific service is a Spanish TV channel.
Status in the industry-You might want to target businesses that are the technology leader or
revenue leader or employee satisfaction leader, etc. Accessibility-To minimize promotion and
sales expense you may want to target urban rather than rural or local rather than national
prospects. Future potential-A good example is how Apple Computer supplied products to
schools at all levels to condition students graduating into the marketplace. Ability to make
quick purchase decision-Targeting individual purchasers versus business committees can
significantly reduce marketing expense and increase the probability of a quick close. Access
(or lack of access) to competitive offerings-Cable TV business's significant investment in
their service delivery system has allowed a near monopoly for some time. IBM's service
reputation insured minimal competition during the mainframe days.

Need for customization

Offerings such as police cars, busses for municipalities and specialized computer systems fall
into this category. Product or service application to a business function, Examples are data
processing, accounting, human resources and plant maintenance.

For Individual Consumers:

Physical Size-Offerings might be big men's clothing, golf clubs for shorter players,
etc. Creation of or response to a fad, Examples are hula hoops, Jurassic Park T shirts, pet
rock, physical fitness, etc. Geographic location-Marketers take advantage of location by
selling suntan lotion in Hawaii, fur coats in Alaska, etc. Time related factors-You may be
able to target vacationers in summer, impulse buyers during the holidays or commuters at
7AM. Demographics/culture/religion-Ethnic products would fall into this category. Gender-
Product examples are scarves for women, ties for men, etc. Age-Product examples are toys
for children, jewellery for women, etc.
Social status-This could include country club memberships, philanthropic
contributions, etc. Education-Product and service examples are encyclopaedias, scientific
calculators, learning to read tools and financial counselling.

Avocation-This could include products for hunting, fishing, golf, art work, knitting, etc.
Special Interests-You could target cat lovers, science fiction readers, jazz music collectors,

University Of Management & Technology.

 11
Advance Performance Management Project

etc. Accessibility because the individual is more difficult to reach you may want to segment
by urban versus rural, train commuters, people who read Wall Street Journal, etc. Access (or
lack of access) to competitive offerings Due to high investment capital requirements or
timing of market entry you may be able to capture a significant market share in a specific
geographical area. Examples might be a trash service, emergency medical support, etc.Need
for specific information-Based on features or content of your offering you can target a market
segment. A product might be books on how to start a business or a service might be seminars
on how to quit smoking.

Need for customization-Product/service examples are home decoration, fashion wear,

personal portraits, etc. Need for quality, durability, etc. Product examples are mountain
climbing gear, carpenter's tools, etc. Degree of a product/service ingredient-Segmentation
based on prospect preferences is common. An example is dark chocolate for some tastes,
light chocolate for others.

University Of Management & Technology.

 12
Advance Performance Management Project

SWOT ANALYSIS
SWOT Analysis is a strategic planning tool used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats inside a company, project, or a business venture. It
involves identifying the internal and external factors that are favorable/ unfavorable for
business to succeed.

INDUSTRIAL SWOT ANALYSIS

STRENGTHS
The soft drinks market in Pakistan enjoyed dynamic growth over the review period in
both volume and current value terms. Carbonates dominate the market in both the on-trade
and off-trade with the lion’s share of sales. Carbonates have become part of the culture in
Pakistan and multinational companies have maintained their standards over the years to
provide consumers with high quality carbonated drinks. Off-trade sales of carbonates are
higher than those of the on-trade but both achieved strong growth over the review period.

WEAKNESSES
Liquid concentrates and power concentrates are both seasonal categories in the market
and their sales peak in the summer in Pakistan. Both Rooh Afza and Jam-e-Shirin are
traditional sandalwood drinks in Pakistan which are highly regarded by consumers. These
drinks can be found in every home in Pakistan, especially in rural areas throughout the
summer and are the mainstay of liquid concentrates.

OPPORTUNITIES
The Government of Pakistan has reduced excise taxes to encourage soft drinks
manufacturers and importers. The Government also reduced other applicable taxes to promise
more profit not only for soft drink manufacturers already in the market but also to attract
potential soft drinks manufacturers to invest in Pakistan. Tax reductions proved extremely
beneficial to the soft drinks market in Pakistan and certainly encouraged and attracted
multinational companies to invest in the country’s soft drinks industry. The government also
decided to tax the beverage industry on capacity of production rather than on actual
production and that brave move encouraged soft drinks manufacturers to maximize
production and reduce prices.

University Of Management & Technology.

 13
Advance Performance Management Project

THREATS
Increasing health and hygiene awareness among Pakistanis has greatly increased sales
of fruit/vegetable juice products. Both the government and the media have started health
awareness campaigns to make Pakistanis realize that consumption of fruit/vegetable juice is
as essential as eating food. Fruit/vegetable juices are doing very well in both urban and rural
areas. On the other hand, health and hygiene awareness has also led to increased sales of
bottled water in Pakistan. Previously bottled water was targeted on at major cities where
consumers are more health-conscious and aware of the difference between bottled water and
tap water. Nowadays, health conscious rural inhabitants also drink bottled water due to health
concerns.

Getting Into the Mind of the Consumer:

The easiest way of getting into someone's mind is to be first. It is very easy to
remember who is first, and much more difficult to remember who is second. Even if the
second entrant offers a better product, the first mover has a large advantage that can make up
for other shortcomings. However, all is not lost for products that are not the first. By being
the first to claim a unique position in the mind the consumer, a firm effectively can cut
through the noise level of other products. For example, Miller Lite was not the first light beer,
but it was the first to be positioned as a light beer, complete with a name to support that
position. Similarly, Lowenbrau was the most popular German beer sold in America, but
Beck's Beer successfully carved a unique position using the advertising, "You've tasted the
German beer that's the most popular in America.

Now taste the German beer that's the most popular in Germany." Consumers rank
brands in their minds. If a brand is not number one, then to be successful it somehow must
relate itself to the number one brand. A campaign that pretends that the market leader does
not exist is likely to fail. Avis tried unsuccessfully for years to win customers, pretending that
the number one Hertz did not exist. Finally, it began using the line, After launching the
campaign, Avis quickly became profitable. Whether Avis actually tried harder was not
particularly relevant to their success. Rather, consumers finally were able to relate Avis to
Hertz, which was number one in their minds. Another example is that of the soft-drink 7-Up,
which No. 3 behind Coke and Pepsi was.

By relating itself to Coke and Pepsi as the "Uncola", 7-Up was able to establish itself
in the mind ofthe consumer as a desirable alternative to the standard colas. When there is a
clear market leader in the mind of the consumer, it can be nearly impossible todisplace the
leader, especially in the short-term. On the other hand, a firm usually can find a way to
position itself in relation to the market leader so that it can increase its market share. It
usually is a mistake, however, to challenge the leader head-on and try to displace it.

University Of Management & Technology.

 14
Advance Performance Management Project

Marketing Objectives:

The objective is the starting point of the marketing plan. Objectives should seek to
answer thequestion 'Where do we want to go?'. The purposes of objectives include:
o to enable a company to control its marketing plan.
o to help to motivate individuals and teams to reach a common goal.
o to provide an agreed, consistent focus for all functions of an organization.

All objectives should be SMART i.e. Specific, Measurable, Achievable,

Realistic, and Timed.

Specific - Be precise about what you are going to achieve Measurable - Quantify you
objectives Achievable - Are you attempting too much? Realistic - Do you have the resource
to make the objective happen (men, money, machines, materials, minutes)? Timed - State
when you will achieve the objective (within a month? By February 2010?)

1.Market Share Objectives:

To gain 60% of the market for soft drink industry by September 2007.

2.Profitability Objectives:
To achieve a 20% return on capital employed by August 2007

3. Promotional Objectives
To increase awareness of the product on the market.

4. Objectives for Survival

To survive the current market war between competitors.

5. Objectives for Growth

To increase the size of the worldwide Coca Cola enterprise by 10% .

University Of Management & Technology.

 15
Advance Performance Management Project

Financial Measures:

HOW COKE DETERMINE THE YEARLY

BUDGET
Coke determines its yearly budget by the

 Sales volume
 Profitability
 Target volume

SALES VOLUME
Coke determines its yearly budget through the sales volume. They first concentrate on
the thing is “what is the condition of their sales?” if the condition is good of their sales then
they definitely increase their production and sales volume. Otherwise they concentrate on
their old strategies.

PROFITABILITY
The second thing through which they determines budget is the “profit” .if they r
getting profits with the high margin, then they definitely want to increase their profits in the
next coming year. Every organization runs on the basis of getting high profits. No
organization wants to face Loss in their business. To get profit is the first priority of the
Coke.

TARGET VOLUME
To run the business every industry has some targets, which they want to achieve in a
specific time period. If industry achieves those goals in that period then for the coming year it
increases the volume of the target.
So Coke Follow the same thing it has also some goals and targets to achieve in the
given time period. When they succeed to achieve that target then they increase their target
volume in the next year.

University Of Management & Technology.

 16
Advance Performance Management Project

MARKET SHARE OF COCA COLA

Coca Cola is now one of the largest corporations in the world, with a global
workforce of over 90,000 and revenues of $31.9 billion in revenues in 2008. Over the years,
the brand equity of the Coca-Cola trademark, as well as that of other Coca Cola-produced
brands, has established Coca Cola as a prominent figure in the non-alcoholic beverage
industry and allowed the company to keep both revenues and profits high.

Sales and 2004 2005 2006 2007 2008

Income Data
in Millions

Net Sales $21,742 $23,104 $24,088 $28,857 $31,944

Net Income $4,847 $4,872 $5,080 $5,981 $5,807

(Profits)
Units sold in 19.8 20.6 21.4 22.7 23.7
Billions

Quarterly Earnings : 1Q2009 In the first quarter of 2009, the Coca-Cola Company
posted revenues of $7.169 billion, a 3% decrease from 1Q 2008 figures; net income fell 10%
to $1,348 billion. Although sales volumes actually rose 7% during the quarter, the Coca-Cola
Company was negatively impacted by the dollar's strengthening against the euro, Brazilian
real, Mexican peso, and South African rand.

2Q2009: In the second quarter of 2009, the Coca-Cola Company posted revenues of
$8.267 billion, an 8.6% decrease from 2Q2008 figures; net income grew 43% to $2.037
billion. Although the company managed to grow worldwide case volume by 4% (with
especially important increase of 33% in India and 14% in China), adverse fluctuations in the
foreign exchange caused the decrease in revenue. On a currency neutral basis, revenues grew
by 4% during 2Q2009, as pricing remained constant during the year. The growth in net
income is deceptively large, as the 2008 figure includes an $843 million, or $0.40 per share,
charge due to changes in the company's accounting policy of its equity investments in its
bottlers. Ignoring this charge, net income would've fallen by 12%.

University Of Management & Technology.

 17
Advance Performance Management Project

GLOBAL UNIT SALES OF COCA COLA

The global unit sale of the Coca Cola Company is increasing from last years. The data
of the global unit sale of the Coca Cola Company can be represented by the following chart.

unit sale in billions

25

24 23.7

23 22.7

22
21.4 unit sale in billions
21 20.6

20 19.8

19

18

17
2004 2005 2006 2007 2008

So there is a positive growth in the market of Coca Cola Company. There is a

worldwide volume increase with strong international growth. This is only due to the
innovative marketing 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 Company’s ability to build and deliver leading brands.

In 2008, the company had worked with their bottlers to turn good intentions into
reality by improving the system economics. The results in 2008 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.

University Of Management & Technology.

 18
Advance Performance Management Project

REGION WISE CONSUMPTION

OF COCA COLA

Coca Cola is the world renowned soft drink and the company is currently operating
throughout the world. The world wide total is 23.7 Billions. Review according to the regions
is as follows:

Region wise Consumption of Coca Cola

15%

27%

Latin America
North America
Europe
17% Pacific
Eurasia & Africa

24%
17%

So the volume is least in Eurasia & Africa and the most in Latin America. From this
data we can find out that the customers of Coca Cola are increasing which is shown the
company’s per capita income.

University Of Management & Technology.

 19
Advance Performance Management Project

MARKET POSITION OF COCA COLA

WORLDWIDE

10%

Coca Cola
30% Pepsi
Others
60%

MARKET POSITION OF COCA COLA

IN PAKISTAN

10%

Pepsi
Coca Cola
36% 54% Others

On global level Coca-Cola is the most popular brand and market leader controlling
60% of market share. In Pakistan Coca Cola is the market follower but still in a very strong

University Of Management & Technology.

 20
Advance Performance Management Project

and stable position holding 36% of the local market with a growing and increasing market
share every year.

International financial report:

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 2009
and 2010 along with the percentage change is as follows.

Year Ended December 31,

(In millions except per share data, ratios and growth rates)

2010 2009 Δ%

Net operating revenues 31,944 28857 1%

Operating income 8,446 7,252 45%
Net income 5,874 6,027 82%
Net income per share (basic) 1.601 0.882 82%
Net income per share (diluted) 1.601 0.882 82%
Net cash provided by operating activities 4,110 3,585 15%
Business reinvestment (963) (779) 24%
Dividends paid (1,791) (1,685) 6%
Share repurchase activity (277) (133) 108%
Free cash flow 3,147 2,806 12%
Return on capital 26.6% 16.2% -
Return on common equity 38.5% 23.1% -
Unit case sales (in billions)
International operations 12.5 11.9 5%
North America operations 5.3 5.2 2%
Worldwide 17.8 17.1 4%

2009 basic and diluted net income per share included a non-cash gain of $.02 per share after taxes,
which was recognized on the issuance of stock by Coca-Cola Enterprises Inc., one of the equity
investors of this company.

2010 basic and diluted net income per share includes the following charges :

 $.24 per share after income taxes related to an organizational Realignment.

 $.19 per share after income taxes related to the Company's portion of charges recorded by the
investors of the company.
 $.16 per share after income taxes related to the impairment of certain bottling, manufacturing
and intangible assets.
 $.05 per share after income taxes related to the settlement terms of a discrimination lawsuit.

University Of Management & Technology.

 21
Advance Performance Management Project

Customer satisfaction:

COMPETITIVE ADVANTAGES

BRAND NAME, SYMBOL, BOTTLE SHAPE.

Brand name, symbol and bottle shape are distinctive features of Coca-Cola which
give it an edge over its competitors. (Even without name people can easily identify Coke’s,
fanta’s, and sprite’s bottle from crowd.) They cannot be copied or imitated by others.

DIET COKE
Coca-Cola has successfully addressed to the needs of its health conscious overweight
customers with the launch of diet Coke. Its competitor has yet to come up with and counter
diet Coke properly.

SNATCHING AWAY CUSTOMERS

In the market Coke has been able to snatch large customers like Food Street, Pakistan
Railways, McDonald’s, as well as Sponsorship events (basant, Eid, concerts etc.) from Pepsi
mainly due to its superiority in the following areas.

Cost: It is very economical, justifies performance,

Quality: No quality compromise, get the best all over Pakistan at any cost.
Innovation: new ideas for billboards design, sponsorship, changing their slogans time
to time, according to the needs of the market.

Speed: On time delivery in all over the Pakistan.

University Of Management & Technology.

 22
Advance Performance Management Project

CUSTOMER ANALYSIS
The Coca Cola Company exists to satisfy the consumers’ needs. The Coca Cola Company
has over 400 brands of drinks designed to satisfy a very wide range of consumers. They are able
to provide drinks for many different target markets including, people of all ages, sexes, races, etc.
Coca-Cola products are able to sell to a diverse worldwide population and its success is
unmatched.  
            In today’s society, people are looking to lead better, healthier lives, Coca Cola seeing this
trend has begun to produce, diet drinks that have the same great taste as their regular drinks while
still being low fat or low calorie drinks, such as diet coke, or coke zero.
            Coca Cola products are purchased by all the different classes, but mainly by the middle
and high-class citizens, because they have more money to spend on luxury items. Coca Cola is a
very successful company; due to their success they are able to spend more money making their
factories work more efficiently.  They can do this by updating the equipment used to produce
their drinks.
            Although people today are becoming more conscious about their environment, and the
damage that has been done in prior years. Many people make their purchase decisions partially
based on a company’s ethics, or social responsibility.  By contributing to stop pollution both
within and outside their factories, they will gain the trust and respect of the potential buyers, who
care about saving our environment. In gaining their trust and respect more people will be willing
to purchase their products, because the company stands for the same goals that their consumers
are trying to protect. The Coca Cola Company tries to be more environmentally aware.
Delivery and Process Time:
The Coca Cola Company has always focused wide scale distribution. This is the reason, 94%
of the world’s population knows about Coke. “Coca Cola” is the most recognized word
after OK.

Coca Cola sets its own distributions directly to stores. Stores include a wide variety of
Supermarket, Marts, Convenience Stores, Retail Stores and Departmental Stores. The channel
distribution of Coca Cola Intl is extremely large.

Over time, they have produced many products and thus have increased number of warehouses
for specific products.

Coca Cola Intl has also improved services via setting up a national service network.

University Of Management & Technology.

 23
Advance Performance Management Project

External and internal Efficiency

The market analysis investigates both the internal and external business environment.
It is vital that Coca Cola carefully monitor both the internal and external aspects regarding
it’s business as both the internal and external environment and their respective influences will
be decisive traits in relation to Coke’s success and survival in the soft drink industry.

 INTERNAL BUSINESS ENVIRONMENT

The internal business environment and its influence is that which is to some
extent within the business’s control. The main attributes in the internal environment
include efficiency in the production process, through management skills and effective
communication channels. To effectively control and monitor the internal business
environment, Coke must conduct continual appraisals of the business’s operations and
readily act upon any factors, which cause inefficiencies in any phase of the production
and consumer process.

 EXTERNAL BUSINESS ENVIRONMENT

The External business environment and its influences are usually powerful
forces that can affect a whole industry and, in fact, a whole economy. Changes in the
external environment will create opportunities or threats in the market place Coca cola
must be aware off. Fluctuations in the economy, changing customer attitudes and
values, and demographic patterns heavily influence the success of Coca Cola’s
products on the market and the reception they receive from the consumers.

 COMPETITION
All over world there are two soft drink giants, Coke and Pepsi. The
competition between two companies has always been neck to neck. Both these
companies keep on try to take lead in terms of pricing, packaging, promoting and
placing.
In Pakistan recently a few other beverages are also introduced such as Mecca-Cola,
Shandy Cola and Amrat-Cola but currently these soft drinks are not a threat for coke
due to their very low market share and secondly due to brand loyalty of customers for
coke.

 POLITICAL/LEGAL

These are uncertainties that are extremely variable in the political conditions
of Pakistan. Constant political instability does affect the company in terms of building
new relations with new Governments all the time.

University Of Management & Technology.

 24
Advance Performance Management Project

 SOCIAL AND CULTURAL FACTORS

The company has to be very careful in the implementation of its promotional

campaigns, since the social cultural environment of Pakistan is very conservative and
any suggestive advertisements usually face a lot of negative reactions on the part of
the consumer.

 SOCIAL FACTORS:

Social factors include consumer’s family, small groups and status.

Family members can affect buying behavior in such a way that if number of
children is more in a family than the elders, then the children choice can
matter a lot at the time of soft drink purchase. On the contrary, sometimes
people go for the product that shows their status in society.

 CULTURAL FACTORS:
Every group and society has its own culture. Cultural factors affect
coke purchasing massively. Different communities and groups of people have
reshaped Pakistan’s culture. In recent years the Bahar/ Basant festival in
Punjab specially become important part of our culture in which sales of coke
go very high. Soft drink is purchased in bulk for the parties and other
occasions.

 PERSONAL FACTORS
Buyer’s decision is also influenced by personal characteristics such as buyer’s
age and life cycle stage, occupation, personality and self-concept. Age and lifecycle
stage means that people taste and way of living changes with passage of time. Lets
say in earlier stage of life if a person’s best choice for soft drink was Coke classic but
as he proceeds with his life, way of thinking and style may change. He may not opt
for classic coke anymore and might be more interested in diet coke.
Occupation matters a lot when consumer is indulge in buying. If consumer is a
student by occupation he will certainly go for returnable bottle of or may be
disposable bottle of 25 RS but most probably not for the coke CAN which is high in
price. Where as if the consumer is a business executive who is financially strong will
prefer more the coke classic can or diet coke can. This change is mainly because of
occupation.

University Of Management & Technology.

 25
Advance Performance Management Project

 PSYCHOLOGICAL FACTORS

A person’s buying behavior is further influenced by major psychological

factors such as motivation, perception, learning and self benefits.

Motivation is basically a drive that’s sufficiently pressing a person to seek

satisfaction of the need. Sometimes a person has no intention to buy a particular
product but what happens is that the group of people around him motivates him
motivates. If a person is highly satisfied with the taste of “diet coke”, he may share
his experience with another person and as a result the latter person might get
motivated by his opinion and end up buying “diet coke”

In some cases, consumers have descriptive thoughts and beliefs about

something. It may change with the passage of time because mostly all the self beliefs
are secondary and not the core ones.

 OTHER FACTORS
Other factors like the Government rules, regulations and technological
advancements have had no significant effect on the product and the company.

EXPECTATIONS FOR THE COMING YEAR

Everything starts from the attitude of consumer’s behavior. And the basic key to
attract the consumers is to throw the “money away”.
And positive feeling felling with the brand, which they used to have Coke wants to
advertise their products heavily in the coming year. And it will take the 10% of their profits.
And when we take it as a global level it is $ I billion.
Coming year is the challenging year for the industry of Coke. They have to take lots
of decisions that how to increase the production and where they have to spend money.
For gaining success in coming year they have to have some important things like:

 Loyal consumers are important for company’s success.

 Workers should be the brand centric not the promotion centric.
 They should know how much to for the brand activities.
 They should also know that how much to do with the promotion activities for brand.

University Of Management & Technology.

 26
Advance Performance Management Project

CONCLUSION
We have concluded from this detailed report that despite the fact Coca Cola currently
occupies the market leadership position overall but it does not guarantee that the company
will sustain its position in the future as well. In Pakistan as compared to Pepsi, Coca-Cola has
less number of consumers as Pepsi’s market share in Pakistan is approximately 54% where as
Coke market share is hovering about 36%, hence the conclusion is that Coca-Cola must
enhance factors such as relationship marketing, innovation and technology especially in
Pakistan to attain market leader position in this region as well.

University Of Management & Technology.