ContentsPROJECT OBJECTIVE..................................................................................................................2

INTRODUCTION...........................................................................................................................2

VISION STATEMENT...................................................................................................................2

MISSION STATEMENT................................................................................................................2

COMPETITIVE COMPANY OBJECTIVE...................................................................................2

HISTORY AND INFORMATION.............................................................................................2

FANTA........................................................................................................................................2

Basic Information........................................................................................................................2

MARKET INFORMATION...........................................................................................................2

MARKET DEMOGRAPHICS....................................................................................................2

INDUSTRY ANALYSIS............................................................................................................2

SITUATIONAL ANALYSIS......................................................................................................2

MARKET ANALYSIS....................................................................................................................2

INTERNAL BUSINESS ENVIRONMENT...............................................................................2

EXTERNAL BUSINESS ENVIRONMENT..............................................................................2

COMPETITION..............................................................................................................................2

PRODUCT LIFE CYCLE...............................................................................................................2

PLACE IN THE BCG MATRIX.....................................................................................................2

SWOT ANALYSIS.........................................................................................................................2

STRENGTHS..............................................................................................................................2

WEAKNESSES...........................................................................................................................2

OPPORTUNITIES......................................................................................................................2

THREATS...................................................................................................................................2

MARKET SEGMENTATION AND TARGET MARKETS..........................................................2

EXCLUSIVE CUSTOMER:.......................................................................................................2

PREFERRED CUSTOMER:.......................................................................................................2

MIXED CUSTOMER:................................................................................................................2

MARKETS......................................................................................................................................2

Horecas:.......................................................................................................................................2

TIER 1.....................................................................................................................................2

TIER 2.....................................................................................................................................2

TIER 3.....................................................................................................................................2

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TIER 4:....................................................................................................................................2

IMTs:...........................................................................................................................................2

LMTs:..........................................................................................................................................2

OTHERS:.....................................................................................................................................2

Strategies for the Discussed Segregated Markets (Placement):..................................................2

Promotion Strategy:.........................................................................................................................2

Pricing Strategy:..............................................................................................................................2

Positioning and Consumer Perception:............................................................................................2

Competitive Strategies:....................................................................................................................2

Competitor Analysis:...................................................................................................................2

CONCLUSION................................................................................................................................2

SUGGESTIONS..............................................................................................................................2

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PROJECT OBJECTIVE

The objective of this project is to give overview of Marketing Strategy of ‘Fanta’ to provide a low carbonated drink and a thirst quincher to potential consumers in Pakistan. It includes introduction of the company(Coca Cola) and the product, internal and external environment, market and competitor analysis, and marketing mix.

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INTRODUCTION

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VISION STATEMENT

Their vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable 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.

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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.

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COMPETITIVE COMPANY OBJECTIVE

The company has sales based objective .Everything else (marketing plan, advertising plan, production etc.) is derived from this objective. Currently the company‘s objective is to

“Increase the volume of sales up to the maximum level as much as possible during the current fiscal year.”

The company sets its objective keeping in view the past performance, Historical trends, current market position, economic condition, macro environment and micro environment factors, social values, market size and growth rate, future expectations and predictions, the projected growth for every years sale is based on the comparison of the last years sale and they believe in increasing the sale to 10% every year.

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HISTORY AND INFORMATION

Founded i n 1886 , t he coca -co l a company i s t he wor ld ’ s l e ad ing manufac tu r e r , ma rke t e r , and d i s t r i bu to r o f CSDs . The company’ s co rpo ra t e headqua r t e r s a r e i n A t l an t a , w i th l oca l ope ra t i ons i n ove r 200 coun t r i e s a round t he wor ld .

A l though Coca -Co la was f i r s t c r ea t ed i n t he Un i t ed S t a t e s , i t qu i ck ly became popu l a r whe reve r i t wen t . The i r f i r s t i n t e rna t i ona l bo t t l i ng p l an t s opened i n 1906 i n Canada , Cuba and Panama , soon fo l l owed by many more . Today , Coca -Co la ha s a po r t fo l i o o f more t han 3 ,000 beve rages . Coca -Co la ha s 92 ,400 emp loyees wor ldwide . More t han 70 pe rcen t o f ou r i ncome comes f rom ou t s i de t he U .S . , bu t t he r e a l r e a son we a r e a t r u ly g loba l company i s t ha t ou r p roduc t s mee t t he va r i ed t a s t e p r e f e r ences o f consumer s eve rywhe re .

FANTA

Fanta is a global brand of fruit-flavored fizzy juice soft drinks from the Coca-Cola Company. There are over 90 flavors worldwide, but most of them are only available in certain countries.

Fanta has its origins in Germany, when a trading ban was placed on that nation by the Allies during World War II. The Coca-Cola Company therefore was not able to import the syrup needed to produce Coca-Cola in Germany. As a result, Max Keith, the man in charge of Coca-Cola’s operations in Germany during the second World War, decided to create a new product for the German market created using only ingredients available in Germany at the time, including whey and pomace – the “leftovers of leftovers”, as Keith later recalled. The name was the result of a brief brainstorming session, which started with Keith exhorting his team to “use their imagination”(“Phantasie” in German), to which one of his salesmen, Joe Knipp, immediately retorted “Fanta”.

New Fanta Orange and Grape cans, showing both sides.

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Fanta is known for its upbeat advertising; in the United States, it showcases The Fantanas, a casted group of spokesmodels each of which promotes an individual Fanta lavor. In mid-2009, Fanta began its search for a member to become the fourth Fantana.

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Basic Information

Type Soft Drink Manufacturer The Coca- Cola CompanyFounder(s) Max Keith

Country of Origin GermanyIntroduced After World War IIIntroduced in Pakistan 1965

Area served Over 200 countriesColor OrrangeFlavors 90 flavors Orange

Zero Orange, Raspberry, Orange & Mango, Orange & Passionfruit,

Watermelon, Apple, Orange Spider, Chocolate Orange Spider,

Strawberry Spider, Passionfruit, Grape, Wildberry, Lemon, Blue

Lemonade, Tropical, Sour Apple (2005), Sour Watermelon (2005),

Pineapple, Lime, Strawberry

Simmilar Products Pepsi, Irn Bru, RC Cola, Cola Turka, Zam Zam Cola, Mecca Cola, Virgin Cola, Parsi Cola, Qibla Cola, Evoca Cola, Corsica Cola, Breizh Cola, Afri Cola

Employees 92,400Servings per Day 1.6 BillionWebsite www.coca-cola.com

SKU’S of Fanta 250ML RGB

250ML NR

1000ML GLASS BOTTLE

500ML PET

1500ML PET

2250 PET

BIB (BAG IN BOXES)

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MARKET INFORMATION

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MARKET DEMOGRAPHICS

POPULATION: 169,750,000 (2009 est.) GROWTH RATE: 1.6% BIRTH RATE: 31 births/1,000 population DEATH RATE: 8 deaths/ 1,000 population NET MIGRATION RATE: 1.24 migrant(s) / 1,000 population 0-14 YEARS: 37.2% ( male: 33,739,547 / female: 31,868, 065) 15-64 YEARS: 54.9% (male: 52, 849, 607 / female: 50, 378, 198) 65 YEARS AND OVER: 4.2% (male: 3,475,927/female: 3,931,605)

INDUSTRY ANALYSIS

POPULATION: 176,242,949 (July, 2009 est.) 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

SITUATIONAL ANALYSIS

Beverages are a major consumer able item and there is a huge demand and potential in this market particularly the nonalcoholic ready to drink soft drink. The less carbonated ready to drink beverage has grown year on year and as a result, the pie is growing bigger every year.

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MARKET ANALYSIS

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 Fanta’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 with regards to Fanta 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 in regards to Fanta must be aware off. Fluctuations in the economy, changing customer attitudes and values, and demographic patterns heavily influence the success of Fanta’s products on the market and the over whelming appraisal 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 trying to take lead in terms of pricing, packaging, promoting and placing.

In Pakistan recently a few other beverages were 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. These brands are offering softdrinks to the market gap (customers) with less purchasing power.

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PRODUCT LIFE CYCLE

Fanta has passed the introduction stage, the parent company Coca Cola is constantly working and implementing new strategies to keep it at the growth stage, either by new launching new flavors or changing the packaging and aggressive advertisement and ATL and BTL activities or new SKU in the product to prolong and make the market growth consistent.

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Introduction

Growth

Maturity

PLACE IN THE BCG MATRIX

Fanta is the 3rd main core brand in terms of volume share and brand image under the roof of Coca Cola family. Fanta is the product, which the Coca Cola Company can never think of stop producing. It is one which makes the coca cola company a huge success; it is one product which generates billions of dollars of revenue world over, this is the reason that the market critiques put the product in the Cash Cow Category in the BCG matrix as it is one of the main cash generating products of the parent company Coca Cola.

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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.

STRENGTHSThe CSD market in Pakistan enjoyed dynamic growth over the period of time since they

have been launched in terms of both volume and market share as compared to all its generic competitors. CSDs dominate the market with a great substantial share in sales. CSDs have become part of the culture in Pakistan and multinational companies have maintained their standards over the years to provide consumers with high quality CSDs. CSD has now become the part of the daily meals. In such a culture having a brand like Fanta which is less carbonated and less injurious to health is the main strength of Fanta, with a natural taste of fruit like orange people take it as the best thirst quencher as compared to the other CSDs. The huge assortment of exotic fruity flavors is a great strength to the parent company.

WEAKNESSESThe major weakness of Fanta is that it is popular in the youth only, the older people are

mostly interested in the traditional drinks, and recognized brands like Coca Cola and Pepsi. The parent company of Fanta is spending less on the trade promotional activities as compared to the competitor Pepsi.

OPPORTUNITIESThere are major opportunities in the market in the new potential restaurants opening in

Pakistan. The parent company should promote the brand in all the new restaurants which are working with a high image in the market. There is an increase in the trend of dinning out, few years back it was not common the Pakistani culture. As the new local restaurants are also emerging it is creating a new potential market which should be targeted to improve the sale of Fanta.

THREATSThe number of increasing substitutes and the rapidly changing strategies of the

competitor is a major threat which could be minimized by a deep knowledge of the market.

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MARKET SEGMENTATION AND TARGET

MARKETS

When we talk about the market segmentation and target markets, Fanta is produced and sold for all classes and demographics. The aim of the company is to cater all the classes but they are specifically targeting the middle class, the upper middle, the lower upper, the upper, the upper upper, and the elites. But no doubt the brand is launched to cater all the classes for that they have different SKU’s with different prices.

EXCLUSIVE CUSTOMER: These are the customers who are under an agreement with Coca Cola Company to keep

only their products, this has helped a lot to increase the sales and market share of Fanta. The business customer makes an agreement by which if he keeps any other brand (Pepsi) instead of the range of brands of Coca Cola Company he could be dragged into legislations. These are the customers who are provided with the best availability and supply of its brands.

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MARKET

EXCLUSIVE CUSTOMER

S

MIX CUSTOMER

S

PREFFERED CUSTOMER

S

PREFERRED CUSTOMER:

These are the customers who are also under an agreement by the Coca Cola company according to which they are bound to keep the Coca Cola brands in large quantity as compared to the others. E.g. 20 % for the other brands and 80 % of coca cola brands.

MIXED CUSTOMER:

These customers are free to keep all the brands. They are not asked to keep only Coca Colas brands.

MARKETS

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Market

Horecas

Tier 1

Tier 2

Tier 3

Tier 4

IMT LMT Others

Horecas:These are business related to the food industry. Now the parent company has divided the

horecas into four tiers.

TIER 1These are the horecas with high image and high volume. Restaurants that

have a prestigious image lie in this category and have a high volume of sales, in such restaurants the sales of CSDs is high e.g. Hardees, Freddy’s Café etc. lay in this category.

TIER 2These are horecas with high image and low volume. These restaurants have

a prestigious image in the eyes of masses but the volume of sales is less. In such restaurants the sales of CSDs is low. Restaurants such as subway lie in this category.

TIER 3These are markets that have a low image in the mind of customer but have a

large volume of sales because of its conventional food items, in such restaurants the sales of CSDs is high. Examples of such restaurants could be Bhaya Tikka, Resturants at Laxmi Chawk, Lahore Broast, and other low category restaurants.

TIER 4:These are the horecas with low image and low volume share in the market.

The newly opened unrecognized restaurants could be an example of this category.

IMTs:These are the International Modern trade markets like Makro, Metro,

Hyperstar, these are the potential and high sales markets and the parent company is has got good trade offers for such business to business customers which is elevating the sales graph of Fanta tremendously.

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LMTs: Like IMTs, LMTs are local modern trade markets which are being operated

by the local players and are available in a large number in the country. These markets are well catered as they have established brand names.

OTHERS:The other markets are the small grocery stores, petro marts and institutions

such as hospitals and educational institutions, which together build up a very big market all over the country.

Strategies for the Discussed Segregated Markets (Placement):

Aggressive market and promotional strategies are designed in such market. When we talk about horecas parent company has offerings like some wave offs and discounts on a specific number of sales, company have also made agreements with such customer. Fanta is promoted in restaurants by creating an impulse which is created by putting streamers and engaging some ATL and BTL activities in such restaurants depending upon in which tier they fall in. The company may give good discount rates to the Tier one customers and on other hand offer the Tier three customer hording for their restaurant and or inertial renovations.

When we talk about the LMTs and IMTs, the company emphasizes on providing them with coolers, streamers, and gondolas, these business to business customers are provided by good discount rates as compared to distributers which help the company to increase the sale and the availability of Fanta. The Gondolas create an impulse in the final customer to buy Fanta. Than we have other markets which are being catered, the strategy for such market is to make the product that is Fanta in the reach of customer’s eyes, for this coolers and chillers are provided to the retailers. The main thing which they seriously emphasize is that the product should be available at every next outlet in the town and it should be chilled enough. Their shops are being decorated and the concept of SOVI (Share of visible inventory) is followed. In this concept the display of the inventory is divided into two types:Primary Display:

Coolers are considered as the primary display and the sales personals are directed to ensure the Brand Pack Order in coolers which says that the all the brands of the company are to be arranged according to the directions of the company. This is very important for the brand like Fanta as it is best sold in its 250Ml SKU, and its clear visibility is the key to its sales.

Secondary Display:Shelves and gondolas are the secondary displays considered by Coca Cola Company, in

this regard they believe that if the 1.5 Ltr Pet is displayed in the front shelves than this will create an impulse in the customer to purchase it. A channel wise picture of success is made in which all the interior of the shops and the displays are renovated and are made attractive to the customers which increases the sales. In this regard the Fanta Streamers are placed to attract the customers.

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Promotion Strategy:

Certain ATL and BTL activities are arranged in the promotional campaigns. The marketing department of Fanta believes in the agrresive BTL and ATL activities. BTL activities like lucky draws in malls and small game shows are hosted all over the country to gain the attention of the customer. Heavy TV campaigns and Visual and print media campaigns are also undergone for the promotion of the brand.

OBBPPO (Occasion Based Brand Pack Price Order):This is the main weapon of the Coca Cola company, they launch promotional schemes in

the form of celebrations on different occasions like basant, eid or any important festivals launched by their key customers like Freddy’s Night.

P ricing Strategy:

250ml RGB 13Rs/-500ml Pet 30Rs/-1500ml Pet 70Rs/-2250ml Pet 85Rs/-

The pricing strategy is not aggressive the parent company Coca Cola sets the prices according to the competitors price maintain the position of the brand Fanta not only but more than the level of the position of Marinda in the mind of customer. According to the recent survey the increase in prices due to the consistently increasing inflation has dented the sales of Fanta a lot but on a positive size a balance has been made by an increase in the sale of 250ml RGB.

Positioning and Consumer Perception:

The brand Fanta has been positioned for the youngsters who are diet conscious and believe that carbonated drinks are injurious to health for them the brand has a big reason of pushing the customers to purchase and consume it by saying and proving that its nominally carbonated. The if we see the 300ml Tin packs they are basically targeting the elite class, which brings a perception in customers mind that the brand is special this perception gives the customer a sense of being superior and this creates an impulse in him to purchase and consume the brand.

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Competitive Strategies:

According to the officials of the company, the company never initiates any trade promotions but it imitates the competitor’s promotions. If there are any new sales promotion in the market by the competitor the sales person only has to inform the marketing department and then the high ranked officials have to decide whether to go with the competitors offerings or not which they mostly agree to comply with. The future plans are mostly dependent on the customer’s future moves as the officials believe that designing and working on the strategies without the information of competitor’s game play is simply wastage of money. Though they have some future plans which are highly confidential and they officials were not willing to share with us.

RED Department:Red (Right Execution Daily) these are the auditors of who visit different markets in a

casual way like ordinary public. The people of this department inform the marketing department about the displays and the competitor’s displays and keep the organization updated about the future and the prevailing moves of the competitor. This department is also liable to do the SWOT and PEST analysis of the organization.

Competitor Analysis:As we all know that Fanta is at a neck to neck competition with Marinda, there are many

strategies which are being followed by the parent company of Marinda i.e. Pepsi Co. following are some strategies followed by the competitors.

Competitors:

Pepsi Co (Marinda) Gormet Cola(Orrange) Amrat Cola(Orrange) Mecca Cola(Orrange) Shandy Cola(Orrange)

Free Sampling:Pepsi Co has a tradition to give free samples to the main customers. Now the question

arises why free sampling? There is a third party international organization (Neilson) which evaluates the sales of

both Pepsi and Coca Cola Company. Now as mentioned above Pepsi gives free samples to all its key outlets which are basically the audit points of Neilson to show an artificial improvement in

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sales. The Parent Company of Fanta believes that unnecessary free sampling will give rise to negotiations in pricing which could lead the company to brink of losses.

Trade Promotions:As discussed above the parent company never initiates any trade promotions, but they try

to keep up with the competition by imitating the trade offers of the competitor, for this they have people working in the competing organization who inform them earlier than the launch of new strategy. Especially the RED department is responsible for all the market research and to keep an eye on the competitors strategies.

Substitute:The price and promotion of Fanta is totally related to the its direct competitor that is

Marinda the substitutes like juices are not weighted in this regard, according to the officials of Coca Cola Company, Fanta is a CSD which entirely different from Nestle or Shezan juices so they think that it has no competition with such substitutes.

Threat of New Entrants:On a question regarding new entrants and smaller competitive companies, we got to

know that they believe that they smaller competitors have basically filled the gap between the lower class and lower middle class. The people who wanted to have CSDs but getting a Coke Brand was not affordable for them, they can now get Gourmet Orange at a cheaper price. But they take each and every competitor serious and hard, they have a critical knowledge of even the smallest competitor all the time.

Current Advertisement & Promotional Scenario:There is almost no advertisement for Fanta in Pakistan by Coca Cola, which has dented

the sales of Fanta a lot, even when there is a potential market of Fanta in Pakistan, lack of trade offers in the prevailing year is making the brand week day by day.

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CONCLUSION

Travel where you will, anywhere in the world, and you will encounter Coca-Cola -- on clothes, in signs, on packaging, in art -- everywhere.

JUDITH EVANS

There is no place in this world where you cannot find Coca Cola, Fanta being the main core brand is recognized everywhere unlike Pakistan in some countries like Germany it is a top selling CSD brand. There is a potential market in Pakistan which should not be ignored. And there is a famous quote by Bill Gates,

I believe that if you show people the problems and you show them the solutions they will be moved to act.

The problem is the increase of obesity because of highly carbonated drinks, and the solution is a less carbonated drink with a great taste, which could create a great impulse in the consumers and result in the formation of a huge market.

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SUGGESTIONS

In the whole project we have been emphasizing on the emerging market for Fanta. The people are seeking for less carbonated CSDs and Fanta should work on its brand awareness, Coca Cola Company should make heavy advertisement campaigns for Fanta. As the officials have said that they are not into any kind of initiating trade promotions what we believe is that it is necessary for them to look into some better trade promotions than the competitors. More over the packaging of the product should be made attractive and according to the main content that is less carbonated which could attract the youth target market in the best way.

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