Brief History

Born in Atlanta, Georgia, on May 8, 1886 by Dr. John Stith Pemberton, a local pharmacist Registered as a trademark in 1887 and by 1895 CocaCola was being sold in every state and territory in the United States Today is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups Regarded as the worlds most well known brand

Coca Cola in Pakistan

Came to Pakistan in 1953 with their first plant at Karachi and it all started with a franchised and licensed distribution

In 1996 Coca Cola International acquired all the Cokes manufacturing operations from the licensees in Pakistan and formed CCBPL
Today Coco Cola has the 2nd largest share in the CSD market after Pepsi.

Ownership Structure

Started with a franchised and licensed distribution Coca-Cola Beverages Pakistan Limited (CCBPL) was incorporated in 1996 Joint venture between Coca-Cola International, Fraser and Neeves Singapore and Packages Coca-Cola Company and local partners have a 90 : 10 shareholding pattern

Location of Office/Factory

CCBPL Lahore Plant 23 KM RAIWIND ROAD,LAHORE PAKISTAN

HEAD OFFICE: 5-E-II GULBERG III,LAHORE PAKISTAN

Location of Plants

The CCBPL plants are in Karachi Hyderabad Sialkot Gujranwala Faisalabad Rahimyar Khan Multan Lahore Rawalpindi Peshawar

Introduction of the Brand

Brand Names & Logos Coca Cola Sprite

Fanta

Diet coke

Sprite Zero

Kinley

Introduction of the Brand

Various Sizes
250ml 250 ml (Non Returnable) 300ml (Non Returnable) 500ml (Non Returnable) 1 liter

1.5 liter pet

Goals and Objectives

Corporate Objectives

To become the best and the biggest anchor bottler in the world To Inspire moments of optimism... through our brands and our actions. To create value and make a difference... everywhere we engage To continue to be an organization providing the quality products to the valuable customers. To project an outstanding corporate image.

Marketing Objectives

Sustainable Growth Increase Sale Volume Maintain or Increase Market Share (Both Mind share and Heart share)

Market Segments Strategy

Multi Segment Strategy

Target Market Customer Profile

Demographic segmentation: Age For coke and Sprite Every age group but target group overwhelmingly contains age group between 15-25 For Fanta age group of less than 15 For Diet Coke and Sprite Zero Age group of 30 & above Gender Male, female Occupation Belonging from the every walk of life

Customer Profile

Psychographic Segmentation Social Class: For Coke, Sprite and Fanta Sec A,B,C For Diet Coke and Sprite zero Sec A and B Personality and Behavior: Diet Coke and Sprite zero for more health conscious people

Core Competencies

Assurance of quality
Company operated factories so they can ensure

the quality in every drop of their products.

Competitive Advantage

Most well known brand all over the world

Directly owned by
State of the art manufacturing plant

Brand Life Cycle Analysis

Market Trends Changing life styles More diet consciousness Brand Life Cycle Analysis Coke, Sprite and Fanta are in Maturity stage Diet Coke and Sprite zero are in growth stage Kinley in Introductory stage

Need Analysis

Present specific need of the customer Intrinsic Association with specific class
Extrinsic

Quenching the thirst, refreshing ones self

Gaps in the market

Availability Gap
Brand awareness gap

Brand Management Strategy

Brand Architecture

CSDs

Drinking Water

Cont.

Band Positioning Festivities Fun And Joy Refreshing Branding Objectives To create awareness To build brand preference and increasing market share To increase awareness in semi urban and rural areas Brand Essence

Joy and freshness

Cont..

Brand Personality A 17-18 year old student, very friendly, optimistic, enthusiastic and full of life Brand Promise The Coca-Cola Company exists to benefit and refresh everyone it touches Brand Association Analysis
Freshness

Style
Food Basant

Cont..

Brand Endorsement Coke used Abrar ul Haq for this purpose but they are not using him anymore

Brand Problems
Availability Awareness

The Marketing Mix

Product Analysis Brand name Coca cola

Logo

Packaging (Various sizes)

Coca cola Sprite
250 ml 250 ml (Non 300ml (Non 500ml (Non 1liter Returnable) Returnable) Returnable) 1.5 liter

250 ml

250 ml (Non 300ml (Non 500ml (Non 1liter Returnable) Returnable) Returnable)

1.5 liter

Fanta Diet coke

Sprite zero

250 ml

250 ml (Non 300ml (Non 500ml (Non 1 liter Returnable) Returnable) Returnable)

1.5 liter

250 ml

250 ml (Non 300ml (Non 500ml (Non 1 liter Returnable) Returnable) Returnable)

1.5 liter

250 ml

250 ml (Non 300ml (Non 500ml (Non 1 liter Returnable) Returnable) Returnable)

1.5 liter

Cont.

Product quality statement:

Embodies the most up-to-date, stringent manufacturing practices... because Coca-Cola is a symbol of quality. Focuses on customer and consumer satisfaction... because Coca-Cola is customer and consumer satisfaction. Provides a framework for safety and environmental stewardship... because Coca-Cola is a responsible citizen of the world

Pricing Analysis

Pricing Method:
In Pakistan

the Coca Cola uses competitor indexing method means it locate its prices with respect to their competitor prices.

Pricing Strategy:
Keep the price at par with your competitors

Factory and Retail price Of various offerings

Sr.N Units o 1 2 3 4 5 6 250ml 250ml(non returnable) 500ml(non returnable) 1 liter 1.5 liter pet Tin Pack Retail Price 10 15 20 23 40 25 Whole Price 9 13 19 22 36 18 Sale Factory price 8 12 18 21 35 17

Distribution Channels
In Pakistan, there are 11 territories where the franchised units produce and sell Coca-Cola. Some of these territories are: Lahore Karachi Rawalpindi Peshawar Hyderabad Multan Rahim Yar Khan Out of these 11 territories 8 territories have been purchased by Coca-Cola international now in Pakistan. Now most of them have been operated by the company itself.

Cont
Distribution Channel
Some of the major distributors in Lahore are: Star (Pvt.) Ltd. Shahdara Urban (Pvt.) Ltd. Bhattia Chowk Abbas Enterprises (Pvt.) Ltd. located at Gulberg

On Map

Peshawar Rawalpindi

Lahore
Faaisalabad Multan Rahim Yar Khan

Gujranwala

Karachi

Promotional Analysis
There are Four types of advertisement. Informing This kind of advertising preambles or follows the immediate launch of a new product or service. It is meant to spread the word, educate or inform the clientele about a new product and service and highlight its attributes.

Persuading These kinds of ads are meant to induce brand preference and persuade customers to buy it by highlighting their features as easy availability ad high quality.
Reminding Now Coca Cola is an established name considered as a trend setter. The primary focus of most of the Cokes ads is to just refresh and remind the customers memory about the product.

Cont
Special Occasions They also promote their products on special events in Pakistan like BASANT,EID and Sports events like Cricket. MEDIA The company used almost every media in Pakistan in electronic media PTV,ATV,Cable Channels in print various news papers and professional magazines, pamphlets

Themes Of Ads

Trying to Associate Coke with

Happiness
Liveliness Optimism Positive Attitude Enjoy your life fully

Discounts and free sampling

Quality Discounts

Coca Cola offers 5-10% discount to those customers purchasing one crate, which consist of almost 24 bottles.

Trade Discounts

Discount to wholesalers Retailers

12 15% 8 10%

Cont.

Push and Pull Strategy The company uses mix of the push and pull strategy because it gives the discounts to the wholesalers , retailers and also promote their products through advertisements.
Coca Cola also give price concessions to the

customers like Ramadan offers.

Market Positioning Strategy

Promise and Support Claimed Promise

Fun, joy and freshness

Support
Ensuring the quality in every drop of their product Sponsoring festivles and cultural events, concerts

Communication Strategy

Providing fridges and deep freezers Posters and stickers on the shops

Excessive bill boarding

Posters and Print ads

Posters and Print ads

Posters and Print ads

Posters and Print ads

Posters and Print ads

Posters and Print ads

Sponsorships

Sponsorships

Coke on the road side

Slogans

Slogans
Drink Coca-Cola (1886) Maza Zindage ka Jio Coke zindage (most recent) Thund program (for Sprite)

Coca cola rang day Basant Food is asking for Coca Cola

Customer Relationship Management

Key account executives for exclusive corporate clients

Competitive Analysis

Direct Competition
Pepsi

Indirect Competition
Shandy Mecca Cola

Amrat Cola

Substitutes

Juices Mineral water Shakes Hot beverages Lassi Milk Sharbat

Brand Strength

The Coca-Cola Company is the largest manufacturer, distributor and marketer of non alcoholic beverage concentrates and syrups in the world. More than 400 brands are now sold in more than 200 countries. The companys brand is one of the most recognized in the world (94% of the worlds population recognizes the coca cola trademark and after OK, it is the second most recognized word in the world) and accordingly is the companys major source of competitive advantage

Effective presence in Pakistan

In Pakistan, Coca cola follows non-franchised production and distribution business model. Though distribution is about to be outsourced to a third party, still, the non franchised production brings in added advantages of uniformity of operations, uniform and better working environment, shared and unified knowledge base and better understanding of local demand pressures and trends. The last franchises of Pindi and Peshawar were bought out in March 2006, and since then the company is going through major restructuring, and infrastructure and capacity building.

Results of Operations

CCBPL, founded in 1997, went on a shopping spree of its local operations from the franchisees in 1999. The last of the franchises were bought out in 2006. Owing to the stiff competition from Pepsi, the first few years were troubling times. But concerted efforts towards capacity building and infrastructure development, the last two years have shown positive double digit growth rates in major urban markets (Lahore and Gujranwala). The next three years corporate plan envisages acquisition of market leadership (the total market share of Coke stands at 37% right now, 1% being occupied by local brands like Amrat and Shandy and the rest is that of Pepsi).

Weaknesses Lack of Coherent Branding Strategies

Pepsi has cashed in on the Cricket formula courtesy of the genius of Imran Mustafa, the then CEO of Pepsi. Interflow, the ad agency of Pepsi, has done a good deal of wonders for Pepsi. OME (Orient McKann Erickson), the long time ad agency for Coke, seemed at a loss as to how to counter the branding onslaught of Pepsi. Cokes dissatisfaction with OME has led to the recent switchover from OME to a relatively lesser known name, Ogilvey and Mathers.

Weak Distribution Network

A strong distribution network ensures ample availability in tight demand cycles. Pepsi has for a long time outsourced its distribution to PTN (Perfect Transport Network) and has ensured its presence in every nook and cranny of the country. Recognizing the efficacy of third party distribution, Coke has also decided to outsource its distribution. In Karachi, all the distribution is now done by PTN. The same will be implemented across the country by the mid of 2008.

Opportunities Introduction of New Product Lines

Late it may be, but Coke now envisions to bring out products suited to the changing dietary needs of the urban audiences. Nutraceuticals, like fruit juices and mineral water, are experiencing brisk double figure growth rates. Coca cola introduced its premier mineral water brand, Kinley, in December 2006. the product is going through soft launch phase and its effective advertising and distribution can win it its due share in the every increasing mineral water pie. By July 2007, the company is expected to roll out its fruit juices line. By mid 2008, the company is expected to introduce its coffee and iced tea brands.

Brand is attractive to Global partners

With its strong international portfolio and huge customer base, Coca Cola has been able to attract other globally renowned companies to cross sell and co brand. Coke today has exclusive distribution with food chains like Burger King and Mcdonalds. It now has joint ventures with Nestle and Starbucks. So, in the coming days, we may expect a similar understanding taking place between CCBPL and other MNCs (for cross selling and co brandingan acquisition for local food processing company-Shezan however couldnt be realized because of shezans reluctance to sell only its beverages line).

Threats Stiff Competition

Unlike the global trends, the fizzy drinks growth rate in Pakistan is in double digits. Fruit juices, energy drinks and dilutables (like Tang and Limu Pani) have also found appreciation and recognition in the urban and semi-urban markets.

Market Competition Strategy

Coca- Cola is in an ologopolistic market and where branding plays a great role. In the ologopolistic market the firms dont compete with price, but rather with advertising and other non-price strategies And coca cola has been successful in doing so