marketing analysis of coke(coca cola)
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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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