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MARKET ANALYSIS OF COKE

PEST, SWOT, MARKET ENVIRONMENT ANALYSIS

Group Members

Muhammad Ghayas Yousafzai1.

Raja Murad Saqib2.

Muhammad Ali Bhatti3.

BBA &Bsc –A/F

About Coke

Background Coke was established in 1886 by John S. Pemberton in Atlanta,

Georgia.

Bottling business began in 1899. Non-alcoholic beverage November 21, 1986 price of $5.50 a share. Unit sales were 880,000 in 1986. In 1992 unit case sales had climbed to 1.4 billion, and total

revenues were $5 billion In 2009, they sold more than 600 million cases globally

Know the most recognized word on planet after ‘OK’

John S. Pembertson Declaration

Coke ProfileType Soft Drink (Cola)

Manufacturer The Coca- Cola Company

Founder (s) John S. Pemberton

Country of Origin United States

Introduced 1886

Area Served Over 200 countries

Brands More then 500

Flavors Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry.

Employees 92,400

Servings per Day 1.6 Billion

Website www.coca-cola.com

Coca Cola Pakistan

Started operating in Pakistan in 1953.CCBP (Coca Cola Beverages Pakistan Limited).Plants located in Karachi, Hyderabad, Sialkot,

Gujranwala, Faisalabad, Rahimyar Khan, Multan and Lahore.

Two independent plants in Rawalpindi and Peshawar.

Serves 70,000 customers and retail outlets.

Employs 1,800 people in Pakistan.

Mission Statement

Mission StatementTo refresh the world - in mind, body and spirit

To inspire moments of optimism - through our brands and actions

To create value and make a difference everywhere we engage

Vision And Goals1. Maximizing return to shareholders

2. Being a great place to work

3. Bringing to the world a portfolio of beverage brands

4. Nurturing a winning network of partners and building mutual loyalty

5. Being a responsible global citizen that makes a difference

6. Highly effective, and fast-moving organization

What Coke Cares about??

The Six key BeliefsConsumer 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.

To be the best marketers in the world.

Think and act locally.

To lead as a model corporate citizen.

•Leadership

•Passion

•Integrity

Values

•Accountability

•Innovation

•Quality

Coca Cola Values

Major Products Of Coca Cola

Products

Coke (1953)Sprite(1972)

Diet Coke(2001)

Kinley Drinking Water

Fanta(1965)

Minute MaidAnd Juices

PEST Analysis

External environment (Macro) Political FactorsGovernment has control over Coke manufacturing

activities by setting standards of law

Changes in taxation and environmental laws

Political conditions, civil unrest and restrictions on the ability to transfer capital across borders

Arab nations boycotted Coke’s products due to a political dispute and discontented with the company for maintaining distributors in Israel.

Economic Forces

Changes in consumer spending habits

Economic crisis makes consumers to cut down their spending

Inflation

Worse economic situation after 9/11

Social

Culture has a tremendous effect on people’s preferences and perception

Many U.S. citizens are practicing healthier lifestyles.

Organized Racing family in North America, May 10, 2012

Language is one of the aspects of culture that marketers must take care of

Technological Forces

Introduction of new machineries all the time

The new technology of internet and television which use special effects for advertising through media

Speedy delivery –Wakefield factory has technology to produce cans of Coke faster than bullets from a machine gun

External environment (Micro)

External environment (Micro)

SuppliersCoke considers its suppliers as a partner in their

business.

Extensive training – to keep good relations and maintain quality product.

CCBSS(fructose corn syrup)Nutrasweet and Ajinomoto ( Acesulfame potassium)Tate and Lyle (Sucralose)

Marketing Intermediaries

Retailers

Wholesalers

Resellers

To build traffic and strengthen operations.

CustomersCustomer satisfaction is considered as being the

most important and vital things in Coke progress.

Coke dedicates a page on their website for customers

Competitors

Coke’s main rival is PEPSIConstantly developing new products for its

customers

Muhammad Ali Bhatti

Market Summary

Marketing Mix

Product

World’s most favorite brand

FMCG distribution pattern

Wide range of soft drinks

Core product , Augmented Product, Actual product

PromotionTargeting value based advertising.

Allows price discounts and allowances to distributors and retailers

Push strategy and Pull strategy

Most widely recognized word after "OK".  

Marketing Budget

TV Budget

Channel Timing No. of ads Price/mint

PTV home 8am 5 PKR 100,000

9pm 4 PKR 132,226

AAG 8pm 4 PKR 50,000

Geo 10pm 5 PKR 70,000

ARY 9pm 5 PKR 400,000

Total 23 PKR 752,225

Newspaper Budget

News Papers Size Day Prices

Dawn 27x4 Sunday PKR 430,920

The News 27x4 Sunday PKR 1,682,000

Total PKR 2,112,920

Billboards

Coca-Cola will cover each region with 500 sq. ft

The three different rates of billboards are PKR 40000, 70000 and 125000.

The total estimated cost of billboard advertisements will come to PKR2,600,000.

Place

Wide scale distribution.

Coke sets its own distributions directly to stores Supermarket

Available nationwide and worldwide

PriceEach sub-brand of Coke has different pricing

strategy according to the market and its segments

Pricing is done keeping in view the increasing rivalry with Pepsi

Pricing is basically standard for all over the world

SWOT ANALYSIS

InternalStrength Weaknesses

Popularity

Well known

Branding obvious and easily recognized

A lot of finance

Customer loyalty

International Trade

Holding a large part of world culture for a very long time

Brand image, supreme taste quality

Word of mouth

Lack of popularity of many Coca Cola’s brands

Most unknown and rarely seen

Result of low profile or non-existent advertising

Health issues

No Luxury packing

External

Threats Opportunities

Changing health conscious attitude

Legal issues

Health ministers

Competition (Pepsi)

Many successful brands to pursue

Advertise its less popular products

Buy out competition.

More Brand recognition

Marketing Strategy

To listen to all the voices around the world asking for beverages

to contribute to communities around the world through our commitments to education, health, wellness, and diversity.

Determined to make great drinks

Marketing ObjectivesTo increase volume

To Expand worldwide nonalcoholic ready to drink beverages

Improving economic profit

Coke aim is to focus on enhancing value for their customers.

Major Segments

Demographic Segmentation

(Age, Income, Family size)

Behavioral segmentation

Segmentation health wise

Coke segments its market upon their demands

Market DemographicsIn Pakistan Coke’s share is only 36%. POPULATION 176,242,949

(July, 2009 estimated) CHILDREN 37.2%

(65,607,612) ADULTS 62.8%

(110,680,572) CHILDREN EQUITY 60% (14,643,619) ADULT EQUITY 40% (27,802,960)TOTAL TARGET MARKET: 42,446,579

Market PositioningOpen happiness – varieties of advertisements and

taste

Coke spends lots of money to make a different creative slogan for targeted people

Coke controls about 59% of the world market

Positioning statement of Coke To all, who wants best drinks to quench their thurst, by providing the best quality and taste in an affordable price.

Raja Murad Saqib

Product Life Cycle of CokeCoke is in maturity stage but gradually moving

towards the declining stage of the life cycle.

The company must now determine whether they will stop producing Coke, change the soda, seek new markets for the soft drink or if they will maintain their current strategy.

Coke’s sales have increased by 1.02% compared to last year. This percentage has no comparison to the high level of growth Coke enjoyed during its growth stage.

Brand Development Strategy

Coke believes in selling out the best products to its customers to retain them with their products.

The company also invested in various advertisement campaigns often engaging the services of celebrities around the globe.

Brand image

There could be hardly any person around the world that hasn't heard the name Coca Cola ever since it begins as world leading name in cold drinks.

Millions of people around the world are consuming Coke as part of their daily meal.

Brand image is the significant factor affecting Coke’s sale.

Strategies Of Getting Goals

Coke’s main strategies are as follows

• Volume can be increased

• Interest level of consumers

• To take part in festivals and events

• Diversification

• By launching new Flavors

Promotion Strategies

Getting shelves

Eye Catching Position

Advertisement :

Print media

Electronic media

TV commercial

Billboards and holdings

Sales Promotion Activities

Coca-Cola Cricket Coca-Cola Concerts Coca-Cola Food Mela Coca-Cola Basant Festival Coca-Cola GO-RED Coca-Cola Party in a Park Coca-Cola Shopping Festival Coca-Cola Pet Promotion Coca-Cola Ramzan Campaign Coca-Cola Wonder of the World Promotion Coca Cola TV Mazza Coca-Cola & Mc Donald's Fanta & Sprite Launched Coke Studio

Financial Analysis

Growth Rate in Market Share Geographically

Unit case Volume 2010 Vs 2011 Growth rate

2008 Vs 2009 Growth

5 year Annual Growth

Net Op. Revenues

Op. Income

Africa 10% 6% 16% 6%

Eurasia 16% 13% 24% 38%

European Union

3% 2% 14% 16%

Latin America 9% 6% 24% 22%

North America (1%) 1% 11% 1%

Pacific 7% 4% 7% 3%

Bottling Investments

64% N/A 53% 75%

Worldwide 6% 4% 20% 15%

Sales ForecastSales and Income Data in Millions

2007 2008 2009 2010 2011

Net Sales

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

Net Income (Profits)

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

Units sold in Billions

19.8 20.6 21.4 22.7 23.7

Financial ReportThe financial report of Coca Cola Company of the

year 2008 and 2009 along with the percentage change is as follows.

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

2008 2009 %Net op. revenues 31,944 28857 1%Operating income 8,446 7,252 45%Net income 5,874 6,027 82%

Net income per share 1.601 0.882 82%

Net cash provided by op. 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 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%

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