MARKET ANALYSIS OF COKE
PEST, SWOT, MARKET
ENVIRONMENT
ANALYSIS
LOGO
Group Members
1.
Muhammad Ghayas Yousafzai
2.
Raja Murad Saqib
3.
Muhammad Ali Bhatti
BBA &Bsc –A/F
Background
 Coke was established in 1886 by John S. Pemberton in
Columbia, Georgia.
 In 1889 Coca Cola formula and brand was established by Asa
Candler who also incorporated Coke in 1892.
 Bottling business began in 1899.
 Non-alcoholic beverage concentrates and syrups throughout
the world.
Know the most recognized word on planet after ‘OK’
John S. Pembertson Declaration
Coke Profile
Type
Manufacturer
Founder (s)
Country of Origin
Introduced
Area Served
Soft Drink (Cola)
The Coca- Cola Company
John S. Pemberton
United States
1886
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
Servings per Day
Website
92,400
1.6 Billion
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 Statement
To 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 Goals
1. 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 Beliefs
Consumer 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.
Coca Cola Values
Values
•Leadership
•Accountability
•Passion
•Innovation
•Integrity
•Quality
Major Products Of Coca Cola
Coke (1953)
Sprite(1972)
Fanta
(1965)
Minute Maid
And Juices
Products
Diet Coke
(2001)
Kinley Drinking
Water
PEST Analysis
External environment (Macro)
Political Factors
Government 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.
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)
Suppliers
Coke 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.
Customers
Customer 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 PEPSI
Constantly 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
Promotion
Targeting 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
23
PKR 752,225
Total
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
Price
Each 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
Internal
Strength
Weaknesses
 Popularity
Word of mouth
 Well known
 Branding obvious
recognized
 A lot of finance
 Customer loyalty
 International Trade
and
Lack of popularity of many
easily Coca Cola’s brands
Most unknown and rarely
seen
Result of low profile or
non-existent advertising
 Holding a large part of world Health issues
culture for a very long time
 Brand image, supreme taste quality No Luxury packing
External
Threats
Opportunities
Changing health
conscious
attitude
Many successful brands
to pursue
Legal issues
Advertise its less popular
products
Health ministers
Buy out competition.
Competition (Pepsi)
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 Objectives
To 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 Demographics
In Pakistan Coke’s share is only 36%.
 POPULATION
176,242,949
(July, 2009 estimated)
 CHILDREN
37.2%
(65,607,612)
 ADULTS
62.8%
(110,680,572)
 CHILDREN EQUITY
60%
(14,643,619)
 ADULT EQUITY
40%
(27,802,960)
TOTAL TARGET MARKET:
42,446,579
Market Positioning
Open happiness – varieties of advertisements and
taste
Coke spends lots of money to make a different
creative slogan for targeted people
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 Coke
Coke 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
2008 Vs 2009
Growth
2010 Vs 2011 Growth rate
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 Forecast
Sales and
Income
Data in
Millions
2007
2008
2009
2010
2011
$21,742
$23,104
$24,088
$28,857
$31,944
$4,847
$4,872
$5,080
$5,981
$5,807
19.8
20.6
21.4
22.7
23.7
Net Sales
Net
Income
(Profits)
Units sold
in Billions
Financial Report
The 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
Net op. revenues
2009
%
31,944
8,446
5,874
28857
7,252
6,027
1%
45%
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%
(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%
-
Operating income
Net income
Dividends paid
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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