Coca Cola Situational Analysis

coca plant lay weed Situational AnalysisWe squeeze out entirely proudly tell apart for a drunkenness fool like coca-Cola that nobody is unaw ar of it in the faultless globe as it has sure enough be take after a ho drug abusehold name for e genuinely(prenominal) of us. It would be diverting for us to sleep unneurotic or so its origin prior to fare its critical merchandise strategies and ships fellowships belief to make it up to this stage. coca-Cola was discovered, we would rather say invented in 1886, erect out of curiosity to know what the mixture of certain ingredients does. It was John Pemberton, an Atlanta base pharmacist, who created this amazing mixture of fragrant and caramel coloured liquid. He then took that mixture to the neargonst chemists to get it carbonated and the social occasion that came up is now has become a greatest kn accept brand in this world.In the initial stage, Coca-Cola had sold just 9 specs a day for an entire category. But, a cent ury later it has produced nearly 10 billion g aloneons of syrup. After just three age of this invention, an Atlanta based line of merchandiseman Asa Griggs Candler acquired rights of the business and brand in just 1500. He then became the counterbalance official president of Coca-Cola enterprise.As a natural dealsperson Asa Candler started marketing the brand in 1893. He found out various brilliant and innovative ideas of promoting the brand. He started distri preciselying promotional coupons for complimentary taste of the beverage, and fit out distributing pharmacists with clocks, urns, calendars and apothecary scales bearing the Coca-Cola brand. People saw Coca-Cola everywhere, and the aggressive promotion buy the farmed. That was the start it needed and successfully achieved. that the company grown after its expansion to the former(a) parts of US territories and of the world.During its journey from 9 glasses a day to over 9 billion servings a day around the world, Coca-Co la party has struggled grave over time to safeguard the company and the brand. It has outstandingly nidussed on ad as their main outline for expansion. Many brand tags take up changed from time to time like Demand the genuine and acquiesce no Substitute. It was to make guests aware of brands value and confirm them away from buying ministration products of Coca-Cola.Market dealBeing the biggest company in the soft drink effort, Coca Cola enjoys the largest market share. This company controls round 59% of the world market.Global Market ShareThe market of the company is geographically vast and it is commanding it with great success. In 2002, the company grew their carbonated soft-drink business by nearly 250 billion unit cases and generated discharge intensivenesss. Because carbonated soft drinks are the largest growth segment within the non-alcoholic ready-to-drink beverage family unit measured by rule book, that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future day success. Thus they are increasing their market day by day. The transaction income earned by Coca Cola Company discharge be illustrated by the following pie chart.This strategy has worked a lot and it has helped them to become the Worlds leading Soft Drink Company. The global unit sale of the Coca Cola Company is increasing from the last ten years. The data of the global unit sale of the Coca Cola Company can be represented by following chart.So there is optimistic growth in the market of the Coca Cola Company. in that location is a oecumenical volume attach by 4% with strong international growth of 5%. This is only due to the innovative marketing programmers, which has deepened the relationship of the customers and Coca Cola. The financial health and success of their bottling partners is a critical component of The Coca-Cola Companys ability to name and deliver leadi ng brands.In 2002, the company had worked with their bottlers to turn good intentions into reality by improving the system economics. The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. The main source behind this relationship is to continue realizing shared opportunities for growth, with closer coordination of operations including customer relationships, logistics and production.Market Share by AreaCoca Cola is the world-renowned soft drink and the company is before long operating throughout the world. The worldwide total is about 17.8 billion.The operation review jibe to the segments is as follows.Operation ReviewThe volume is to the lowest degree in the Africa and most(prenominal) in the North America. The data about the market share of this company eye socket wise is given in the following table.The above table shows the geographical earning of the Coca Cola Company and from this data w e can find out that the customers of Coca Cola are increasing which is shown by the companys per capita income. building block case equals 24 eight-ounce servings.The column, which shows the non-alcoholic beverages consist of commercially, sold beverages, as estimated by the Company based on acquirable industry sources. The country column is derived fromThe Companys unit case volume while the industry column includes non-alcoholic ready-to-drink beverages only, as estimated by the Company based on operational industry sources.In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billion and the average consumer enjoys close to two servings of our products each month. Through an intense focus on Coca-Cola, innovation and new beverages, the company has achieved volume growth of 10 per cent in 2002. With maturation economies and populations, this region has strong long-term potential, and the company is building an exciting family of beverage brand s in addition to expanding the favoriteity of our middle brands, led by Coca-Cola. In China, for example, sales of Coca-Cola change magnitude 6 per cent. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart.So the company is punctuate more in this area and is trying to develop a strategy, which can add-on the growth of the utilisation of Coca Cola by the great deal of Asia. Among the countries of Asia, Japan has the highest percentage, which is about 29%. Among others, Pakistan, India and Bangladesh are those countries where the average custom is increasing day by day.PRODUCTS at that place are different brands of the Coca Cola Company, which are currently in use through out the world. This company not only deals in the carbonated drinks but alike other drinks. While launching its product, the marketing team considers the culture of the country.Major brands of coca pot shockSpriteFantaDiet hundred coulomb classicThe overall volume of this company is as follows.The commitment of the company is to devote resources to water system only in markets where it expects moolahable growth. This strategy has paid dividends. The company has successfully applied its approach to brands in several differentiate markets, including Ciel in Mexico, Mori No Mizudayori in Japan, Bonaqua in Russia and Kinley in India. Backed by a strong network of bottling partners through out the unify States, Dasani became the nations fastest-growing water brand. In Eurasia, the entire Turkuaz brand team worked together to launch Tur signalizes first purified water brand. This year, Coca-Cola Company overly successfully energized a major piece of its beverage strategy-water. By the end of 2001, its bottled water volume exceeded 570 million unit cases, making it the second biggest contributor to the growth of the company after carbonated soft drinks. troika of the water brands, Dasani, Ciel and Bonaqua each achieved sales of over 100 million unit c ases for the year.In 2001and 2002, the company has in addition made good progress in coffees and teas. Beverage Partners Worldwide, the renewed and strengthened marketing partnership with Nestl S.A., began operations in 2001. This partnership combines Nestls knowledge in life science, research and development with the rightise of Coca Cola Company in brand building and distribution.At the same time, the company grew Georgia coffee in Japan by 3 percent through award-winning marketing in a category that was flat for the year. Also in Japan-where The Coca-Cola Company is the leader in the total tea category, the second-largest category in the non-alcoholic ready-to-drink segment-it launched Marocha Green Tea. With sales of 46 million unit cases for the year, Marocha Green Tea is the fastest-growing product in the fastest-growing category green tea. The popularity of Marocha is too recognized by the industry with a leading trade diary naming Marocha the most popular new food and b everage product of the year.STRATEGIC PLANNINGIn the year 2002, the company had a great success, as the strategy worked which resulted in making Coca Cola Company the worlds leading company. In 2001, company accomplished the crust of its strategy asWorldwide volume increased by 4 percent with strong international growth of 5 percent and unmortgaged signs that our North American business is growing solidly and predictable.Earnings per share grew by 82 percent, as we delivered on our commitment to create volume growth while aggressivelyReturn on reciprocal equity grew from 23 percent in 2000 to 38 percent this year.Return on capital increased from 16 percent in 2000 to 27 percent in 2001.The company has generated sinless cash arise of $3.1 billion, up from $2.8 billion in 2000, a clear indication of its underlying financial strength.The strategy for the future of the company is very straightforward. The marketing strategy for the year 2002 is as follows,Accelerate carbonated soft- drink growth, led by Coca-Cola.Selectively broaden the family of beverage brands to drive expediencyable growth.Grow system utilityability and capability together with our bottling partners.Serve customers with creativity and consistency to generate growth crossways all channels.Direct chargements to highest potential areas across markets.Drive efficiency and cost-effectiveness everywhere.MAJOR COMPETITOR PEPSI INTERNATIONALHISTORYPepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay world(prenominal) the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages International and quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories.Many of PepsiCos brand names a re over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.would entertain the listener with the latest musical selections rendered by violin or piano or both. The new name, Pepsi Cola, is derived from the two of the principle ingredients, Pepsin and Kola Nuts. It was first used on the August 28. At that time, Bradhams advertising praises his drink as Exhilarating, invigorating, aids digestion.1990-2002The advertisement of the Pepsi changes to, You got the right choice baby, Uh-Huh .With the extensive usage of the stars in the ads, the popularity of Pepsi increase. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest marketing ready-to-drink tea brand in the United States. Outside the United States, Pepsi-Cola Companys soft drink operations include the bu siness of Seven-Up International. Pepsi-Cola beverages are available in more than 190 countries and territories.In Asia, they selected Lahore to make their regional site. This was done in 1970. This regional office is monitoring all the operations carried out in South West Asia. As in Pakistan, they only entered beverage industry. They abide eleven bottlers covering whole Pakistan. The plant operating here is Riaz Bottlers (Pvt) LTD. This plant was ceremonious at Lahore in 1974. The total capacity of the plant is 30,000 cases per day. They have four filling lines in the plant operating on the three shift bases. Each shift is of eight hours. They have permanent work force of 750 volume and them employee approximately 1000 people more on temporary basis during pass season.Pepsis ProductsPepsiTeemMirindaPepsi MaxPepsi LemonPepsi BlueMountain Dew7upPROMISE OF COKEThe basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to ou r stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently inviting returns to the owners of our business.TARGET MARKETCokes commercials basically based on young generations, So, the young generation is the target market of Coke because they want to represent Coke with the jejuneness and energy but they also consider about the old people they take then as a co-target market.MAJOR SEGMENTSMajor segments are basically those people who take this drink effortless and those areas where the demands is higher(prenominal) then the other areas. There are so many people who take this drink daily and those people who take weekly and those who take less often are always there as well. So, their basic segments are those people who take this drink systematicly.FACTORS AFFECTING SALESThere are so many factors, which affects the sale of turn. Here we are discussing three major factor s which effects blow.Per capita incomeCompetitorsWeatherPer Capita IncomeFirst we go away discuss about Per capita income. This is major factor that affects the sale of this soft drink. Because which every passing year reckons are becoming very strict and tight in order to purchase issues. So the available incomes of the people are coming down. They spend heavily on rents, utilities, and education and basic necessities and after that when they get special money they think about this soft drink .So the decreasing per capita income effects badly in selling and production of this soft drink.And to get through with this difficulty there is need to increase the take aim of per capita income of Pakistan because it is more lesser than the rest of the countries.CompetitorsCokes major competitor is PEPSI and there is no hesitation to say this because everyone knows that and all the other cold drinks and water, coffee, tea is the competitors.WeatherWeather is the third major factor in effecting the Cokes selling. This is underdeveloped market so the deoxycytidine monophosphates consumption in summers is 60% and in winters is 40%.MAJOR CUSTOMERS NEEDFirst of all the majority dont care that what they are going to have. In other words, they dont care before drinking that whether it is Pepsi or coke. They dont actually differentiate between these two brands in order to their tastes.Consumers basically drink what they get.They believe on WHAT COLD THEY SOLDConsumers availableness in brands is basically works likePush availability pull back consumers demand.For this reason, Coca-Cola has provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market. They provide this infrastructure free of cost just to provide child coke to their customer, which they want to be purchase.Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper control or not, if not then they now change or repair it.STRATEGIES OF QUALITYAfter Micro and macro analysis pit coke is primarily roleEnhance competition momentsWhen people watch cricketThrough commercialization sportswoman timeThough these strategies, there could be better understanding and better connection with the public. These are the key consumption.THREATS FROM COMPETITORSThreats are well planned. footing is the major threat. When bell goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink.Because when the price goes higher people go for the substitute of coke i.e. Pepsi.And when price goes down they think that there is must be roughthing falsely in it.In short it all depends on customers perception.TARGETS THAT WOULD LIKE TO ATTAIN either organization runs on the bases of profit maximization so Coke is also looking for a high profit margin.There are three major ways of making moneyOvernight profitWindfall profitEthical and un-ethical waysOver Night ProfitsThey could be overnight profit that is for the number 1 brand for the year. This could be got my increasing sales volumeWindfall ProfitThere can be windfall profit. They are the purposelesss profit. When the consumption is on boom. So, there is different kind of cabbage.Ethical and Unethical waysProfit can also get through ethical and unethical ways. They believe on this adduceEverything is fare in love and war. nigh profits stays for some time like overnight profits and some just come and go like wind fall profits. And they can also get profit through different approaches.EXPANDING TARGET MARKETIn last 2 years Coke has come back in aggressive manner.Consumer has choiceAttractive brand nameBrand differentiatingConsumer Has Got ChoiceNow the consumer has got choice. Because now they know the name of another big brand, though coke is the second best name but it can get a better position after some timeAttractive Brand NameNow the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word ok. So people can better differentiate brands with each other.Brand specializationNow different companies have got different brand names. So, people can distinguish between brands. twain major brands coke and Pepsi also have brand names.Coca Colas BrandCoca pinhead is US brand. Because they believe in the togetherness, being people together and friends are being together. Coca Cola strongly believes that Pakistani inclination is US not MEPepsis BrandPepsis brand is basically is basically ME branded. They use the temperament of ME. In contrast to Coke they believe on individual struggle.THREATS AND OPPORTUNITIES FOR PRICEOpportunitiesIf Coke is considered a luxury product. Then there is the tax rate system15% sales tax20% chance upon duty27% goes to government03% In making BudgetAfter paying all these taxes coke has to pay electricity charges. We have to spend on distributions. After paying all these e xpenses Cokes margin squeezed and consumers have to pay for increasing tariffs.These are the opportunities through which we can increase the price and can get profits.ThreatsThere are much more threats in increasing prices. Because same problem of substitute. If Coke increase the price lets say 1 rupee. Then people definitely wont go for coke. They have the best substitute of Coke that is Pepsi. So these are the threats in increasing prices. Coke will lose the margin of its profit and can face loss.STRATEGIES OF GETTING GOALS I.E. HIGH PROFITSTo increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows.Volume can be increasedInterest level of consumersTo take part in spanking festivalsHow to increase the volume of consumers?Coke can increase the volume by expanding the industry of coke. Through advertisements, offering different interesting things to attract people towards this pro duct.How to increase the interest level of consumers?Coke is increasing the interest level of consumers by offering different flavors.For example Coke is increasing the number of flavors in Fanta, this is one of the product of coke. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained.How to take part in energetic festivals?Coke is already taking part in the festival like Basant since last 3 years. Coke offers different attractive things in their festival and through this Coke gained high profit and consumption of coke increased on these occasions.And this year in this year 2002 people were anxiously waiting that what interesting thing coke is going to offer.MARKETING STRATEGYOur local marketing strategy enables Coke to listen to all the voices around the world request for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who they are, where they live, how t hey work and play, and how they relax and recharge. Whether youre a student in the United States enjoying a grateful Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, were there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently make our business decisions to improve the quality of life in the communities in which we do business. Its a special thing to have billions of friends around the world, and we never forget it.MARKET POSITIONINGProduct RangeThe total field of Coca Cola company in Pakistan includesCoke.Sprite.Fanta.Diet Coke.And company offers their products in different bottle size of its these includesSSRB (standers size returnable bottle)LRB (litter returnable bottle)NRB (no return bottle) or disposable bottlePET 1.5 (1.5 litter plastic bottle)CANS (tin comport 330 ml)PackingCoca pinhead products are available in different packing24 regular bottle shell6 bottle pack for 1.5 pets12 bottles in a pack for disposable bottle24 cans in one pack.PRICE STRATEGYTrade PromotionCoca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And thats why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more.Seen as soldThey do agreements with a shop keepers and stores to goop sale in that stores. These stores are called as KEY accounts in their local language.And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.Different Price In Different SeasonsSome times Coca Cola Company change their product prices according to the season. Summer is supposed to be a good season for beverage industry in Pakistan.So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle.PROMOTION STRATEGIESGetting shelvesThey gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.Eye Catching PositionSalesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores.Sale PromotionCompany also do sponsorships with different college and schools cafes and sponsors their sports events and other extra curriculum activities for getting market share.UTC SchemeUTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. equivalent once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children. distribution CHANNELSCoca Cola Company makes two types of sellingDirect sellingIndirect sellingDirect SellingIn direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.Indirect SellingThey have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.FACILITATING THE PRODUCT BY INFRASTRUCTUREFor providing their product in good manner company has provided infrastructure these includesVizi coolerFreezersDisplay racksFree empty bottles and shells for bottlesADVERTISEMENTCoca cola company use different mediumsPrint mediaPos satisfying Tv commercialBillboards and holdingsPrint MediaThey often use print media for advertisement. They have a separate department for print media.POS MaterialPos material mean point of sale material this includes posters and stickers display in the stores and in different areas.TV CommercialsAs everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.Billboards And HoldingsCoca cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.EXPECTATIONS FOR THE COMING socio-economic classEvery thing starts from the attitude of consumers behavior. And the basic key to attract the consumers is to throw the money away.And positive look felling with the brand, which they used to have Coke wants to advertise their products heavily in the coming year. And it will take the 10% of their profits. And when we take it as a global level it is $ I billion.Coming year is the challenging year for the industry of Coke. They have to take lots of decisions that how to increase the production and where they have to spend money.For gaining success in coming year they have to have some important things likeLoyal consumers are important for companys success.Workers should be the brand centric not the promotion centric.They should know how much to for the brand activities.They should also know that how much to do with the promotion activities for brand.HOW COKE DETERMINE THE YEARLY BUDGETCoke determines its one-year budget by theSales volumeProfitabilityTarget volumeSales VolumeCoke determines its yearly budget through the sales volume. They first concentrate on the thing is what is the condition of their sales? if the condition is good of their sales then they definitely increase their production and sales volume. Otherwise they concentrate on their old strategies.Prof itabilityThe second thing through which they determines budget is the profit .if they r getting profits with the high margin, then they definitely want to increase their profits in the next coming year. Every organization runs on the basis of getting high profits. No organization wants to face Loss in their business. To get profit is the first priority of the Coke.Target VolumeTo run the business every industry has some targets, which they want to achieve in a specific time utmost. If industry achieves those goals in that period then for the coming year it increases the volume of the target.So Coke Follow the same thing it has also some goals and targets to achieve in the given time period. When they succeed to achieve that target then they increase their target volume in the next year.