HISTORY OF COCA COLA

Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed. Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and penned Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested that the two Cs would look well in advertising. The first newspaper ad for CocaCola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings, with the suggestions Drink added to inform passersby that the new beverage was for soda fountain refreshment. By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark Coca-

Cola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893. The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Companys incorporation, Mr. Asa G. Candler announced in his annual report to share owners that CocaCola is now drunk in every state and territory in the United States. As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.

VISION STATEMENT
Our 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.

MISSION STATEMENT
Mission statement is a statement of organizations 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.

MARKET POSITION OF COCA COLA WORLDWIDE

10%

Coca Cola 30% 60% Pepsi Others

MARKET POSITION OF COCA COLA IN PAKISTAN

10%

Pepsi Coca Cola 36% 54% Others

On global level Coca-Cola is the most popular brand and market leader controlling 60% of market share. In Pakistan Coca Cola is the market follower but still in a very strong and stable position holding 36% of the local market with a growing and increasing market share every year.

MARKET SEGMENTATION
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. In evaluating different market segments, a firm must look at three factors:

Segment size Segment growth Segment structural attractiveness and company objectives and resources. There is no single way to segment a market. The market has to try different segmentation variables, alone and in combination, to find the best way to view the market structure.

TARGET MARKETING:
This is the process of evaluating each market segments attractiveness and selecting one or more segments to enter. After evaluating different segments, the company must now decide which and how many segments it will target, because buyers have unique needs and wants, a seller could potentially view each buyer as a separate target market. Ideally, then, a seller might design a separate marketing program for each buyer. There are three types of market segments.

Undifferentiated marketing. (Mass Marketing) Differentiated marketing. (Segmented Marketing) Concentrated marketing. (Segmented Marketing, small segment)

SEGMENTATION STRATEGY COCA COLA

Coca cola serves its products using mass marketing technique, which obviously falls in undifferentiated marketing, and undifferentiated marketing means no segmentation, but there are minor factors on which we can say that the coke segments its products and then targets the customers somehow. These factors are as follows.

GEOGRAPHIC SEGMENTATION
INTERNATIONALLY
Coke segments its products country wise and region wise, here the most important thing is the taste and the quality, it varies according to the taste and the income level of the people in that country, and i.e. Third world counties are given low quality taste. Coca Cola Company tries to satisfy the needs of a whole line of different people. They have drinks that target different, age groups, ethnic groups, sexes, lifestyles, etc. There are some of the different brands: Oasis This is a juice made for the younger working adults, 20-30. It is available in berry, lemon and orange tangerine. This drink is most popular in Britain and Ireland. Minute Maid Minute Maid targets kids and adults, ages 1-10 and 40+. This drink is conveniently packaged to take with you on the go anywhere. The health check is part of the reason for the wide target market, parents want their kids to be healthy and so knowing that this product is accepted by such a well known respected company pleases the parents and gives them a sense of relief. Coca Cola The Coca Cola drink is by far there most successful drink. It is very popular among many different nations. It is a soft drink. Because of the huge demand for the coca cola drink, and the trend towards healthier lifestyles coca and begun to produce spin-offs of the coca cola product. They have made drinks such as coca cola zero, coca cola diet, coca cola C2, coca cola with lime etc. By having all these different drinks with the same basic taste they are able to

target a much bigger market. Due to the large success of the drinks coca cola is in demand worldwide. As such the Coca Cola brand is sold in most countries in the world. Coca Coal Zero This drink is specifically targeted at teens that dont want the calories that come with coke but want to same great taste. This Product is sweetened with aspartame. Coca Cola Diet The diet drinks are targeted at adults of ages 30-50, who are health conscious but still love the great taste of coke. This drink is sugar less. Coca Cola with lime The drink is sold in both regular and diet. It is for a wide range a coke lovers who are looking for an extra little punch. Sprite This is a soft drink that has many different target markets. This product has a different taste then coke all together and is not as popular but it is still a very popular drink. Like coke it also has a whole other line of drinks associated with it, such as diet sprite, sprite zero, sprite with a hint of lime. This drink is also sold in many places worldwide. Powerade Powerade is a sports drink. It is designed with a great taste and is also thirst quenching. It is made for athletes of all ages, sexes and sports, but they would target this drink at teens and young adults, ages 13- 27. This drink is sold in many places but mostly over North America. Aquarius Aquarius is a sports drink, enjoyed by people who have healthy lifestyles. It is made for athletes of all ages, sexes and sports, but they would target this drink at teens and young adults, ages 13- 27. This produce is very well known in Europe. Particularly in France, Norway, Spain. But it is still known all over. It became even more successful when it became the official drink of the Olympic games in Barcelona in 1992. Full Throttle This is an energy drink. It is designed for athletes both male and female but particularly males, of ages 14-25. As we can see by looking at a select few of coca colas drinks they have a wide variety of drinks to satisfy everyones needs.

CLIMATIC
Weather is the third major factor in effecting the Cokes selling. In coke marketing, main idea is to serve it cold, so we can say that, they focus more on hot areas of the world, i.e. middle east etc and there sale increase in summer. This is underdeveloped market so the cokes consumption in summers is 60% and in winters is 40%.. It is a source of refreshment when a person is thirsty due to the hot weather.

LOCALLY
In Pakistan the coke segments more in urban and suburban areas as compare to rural. 35 % population resides in urban areas and 65% population lives in rural areas in Pakistan. Coca Cola is focusing on urban areas as people there are more inclined towards such beverage while people in rural areas are more inclined drinking lassi and desi drinks.

DEMOGRAPHIC SEGMENTATION
AGE
Internationally coke has segments the small children introducing tastes like vanilla, lime and cherry, they focus children from 4-12. Coke specifically target more young people than older. Pakistan is considered to be a young country i.e. average age of Pakistani population is less than 38 years. Thus targeting young generation can be a beneficial marketing strategy for soft drink companies. In fact this is the case, all the major brands like Coca Cola, Pepsi mainly target younger generation in Pakistan.

GENDER
Coca Cola targets both genders with its wide variety of drinks. This market is relatively large and is open to both genders, thereby allowing greater product diversification.

FAMILY TYPE
Coca Cola introduces its economy pack, and thats how they focus family and groups.

INCOME
Coca Cola segments different income levels by packaging. Like for small income people it has small returnable glass bottle, for middle people it has non returnable bottle and for higher income people it has coke tin.

PSYCHOGRAPHICS SEGMENTATION
All psychographics variables the social class, lifestyle, occupation, level of education and personality, Coca Cola segments everyone, but again it is their packaging which is different for different consumers.

SOCIAL CLASS
Coca Cola is a well known brand. People who are brand conscious will not drink beverages of less known brands and quality such as Amrat cola. They will try to show their status by drinking Coca Cola which is known to all as a quality drink.

LEVEL OF EDUCATION
A company has to make promotional strategies keeping in view the customer level. If the percentage of education is high in a country then through advertisements people can be made well aware of their product and can convey their message easily. Promotion and education has a direct relationship.

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MARKET DEMOGRAPHICS
POPULATION: GROWTH RATE: BIRTH RATE: DEATH RATE: NET MIGRATION RATE: 0-14 YEARS: 15-64 YEARS: 65 YEARS AND OVER: 176,242,949 (July, 2009 est.) 1.828% 27.74 births/1,000 population 8 deaths/ 1,000 population 1.24 migrant(s) / 1,000 population 37.2% ( male: 33,739,547 / female: 31,868, 065) 58.6% (male: 52, 849, 607 / female: 50, 378, 198) 4.2% (male: 3,475,927/female: 3,931,605)

INDUSTRY ANALYSIS

POPULATION: CHILDREN: ADULTS: CHILDREN EQUITY: ADULT EQUITY: TOTAL TARGET MARKET:

176,242,949 (July, 2009 est.) 37.2% (65,607,612) 62.8% (110,680,572) 60% (14,643,619) 40% (27,802,960) 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 nonalcoholic ready to drink beverage has grown year on year and as a result, the pie is growing bigger every year.

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 its

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business as both the internal and external environment and their respective influences will be decisive traits in relation to Cokes 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 businesss 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 must conduct continual appraisals of the businesss 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 must be aware off. Fluctuations in the economy, changing customer attitudes and values, and demographic patterns heavily influence the success of Coca Colas products on the market and the reception 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 try to take lead in terms of pricing, packaging, promoting and placing. In Pakistan recently a few other beverages are 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.

POLITICAL/LEGAL These are uncertainties that are extremely variable in the political conditions of Pakistan. Constant political instability does affect the company in terms of building new relations with new Governments all the time.

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 SOCIAL AND CULTURAL FACTORS The company has to be very careful in the implementation of its promotional campaigns, since the social cultural environment of Pakistan is very conservative and any suggestive advertisements usually face a lot of negative reactions on the part of the consumer. SOCIAL FACTORS: Social factors include consumers family, small groups and status. Family members can affect buying behavior in such a way that if number of children is more in a family than the elders, then the children choice can matter a lot at the time of soft drink purchase. On the contrary, sometimes people go for the product that shows their status in society. CULTURAL FACTORS: Every group and society has its own culture. Cultural factors affect coke purchasing massively. Different communities and groups of people have reshaped Pakistans culture. In recent years the Bahar/ Basant festival in Punjab specially become important part of our culture in which sales of coke go very high. Soft drink is purchased in bulk for the parties and other occasions. PERSONAL FACTORS Buyers decision is also influenced by personal characteristics such as buyers age and life cycle stage, occupation, personality and self-concept. Age and lifecycle stage means that people taste and way of living changes with passage of time. Lets say in earlier stage of life if a persons best choice for soft drink was Coke classic but as he proceeds with his life, way of thinking and style may change. He may not opt for classic coke anymore and might be more interested in diet coke. Occupation matters a lot when consumer is indulge in buying. If consumer is a student by occupation he will certainly go for returnable bottle of or may be disposable bottle of 25 RS but most probably not for the coke CAN which is high in price. Where as if the consumer is a business executive who is financially strong will prefer more the coke classic can or diet coke can. This change is mainly because of occupation. PSYCHOLOGICAL FACTORS A persons buying behavior is further influenced by major psychological factors such as motivation, perception, learning and self benefits. Motivation is basically a drive thats sufficiently pressing a person to seek satisfaction of the need. Sometimes a person has no intention to buy a particular product but what happens is that the group of people around him motivates him motivates. If a

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person is highly satisfied with the taste of diet coke, he may share his experience with another person and as a result the latter person might get motivated by his opinion and end up buying diet coke In some cases, consumers have descriptive thoughts and beliefs about something. It may change with the passage of time because mostly all the self beliefs are secondary and not the core ones. OTHER FACTORS Other factors like the Government rules, regulations and technological advancements have had no significant effect on the product and the company.

COKE HISTORY IN PAKISTAN

To provide Coca-Cola at arms length The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite are the brands with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in Pakistan operates through eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan and Lahore. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan has nearly 3,000 people working constantly for the company. During the last two years, The Coca-Cola Company in Pakistan has invested over $130 million (U.S) and coke has successfully provided 56 years of dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firm has been continuously changing its slogans and thats a very creative idea to get the attention of the customers. . Here we would like to include some of the popular slogans of coke since the coke journey started. 1886 Drink Coca-Cola 1908 Get the genuine 1923 Enjoy thirst

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1934 When it's hard to get started, start with a Coca-Cola 1942 The only thing like Coca-Cola is Coca-Cola itself 1956 The friendliest drink on earth 1963 Things go better with Coke 1993 Always. Coca-Cola 2001 Life is Good 2003 Jo Chaho Ho Jaye Coca Cola Enjoy 2004 Flight Of Delight 2005 Galay Delicious Taste 2006 Thanda matlab coca cola 2007 khaly pily jila coca cola 2008 Aja jashan mena ly

TODAY
Today CCBPL is operated directly under the supervision of the Coca-Cola International based in Atlanta Georgia State___ USA .It owns 8 plants all around in Pakistan. Coca Cola Company offers the brand range as Coca Cola, Diet Coke, Fanta, Sprite and Kinley water in Pakistan.

Coca-Cola introduced in Pakistan Fanta introduced in Pakistan Sprite was introduced Diet Coke & Fanta Lemon

1953 1965 1972 2001

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MARKET SHARE OF COCA COLA

Coca Cola is now one of the largest corporations in the world, with a global workforce of over 90,000 and revenues of $31.9 billion in revenues in 2008. Over the years, the brand equity of the Coca-Cola trademark, as well as that of other Coca Cola-produced brands, has established Coca Cola as a prominent figure in the non-alcoholic beverage industry and allowed the company to keep both revenues and profits high.

Sales and Income Data in Millions Net Sales Net Income (Profits) Units sold in Billions

2004

2005

2006

2007

2008

$21,742 $4,847 19.8

$23,104 $4,872 20.6

$24,088 $5,080 21.4

$28,857 $5,981 22.7

$31,944 $5,807 23.7

Quarterly Earnings: 1Q2009 In the first quarter of 2009, the Coca-Cola Company posted revenues of $7.169 billion, a 3% decrease from 1Q 2008 figures; net income fell 10% to $1,348 billion. Although sales volumes actually rose 7% during the quarter, the Coca-Cola Company was negatively impacted by the dollar's strengthening against the euro, Brazilian real, Mexican peso, and South African rand. 2Q2009: In the second quarter of 2009, the Coca-Cola Company posted revenues of $8.267 billion, an 8.6% decrease from 2Q2008 figures; net income grew 43% to $2.037 billion. Although the company managed to grow worldwide case volume by 4% (with especially important increase of 33% in India and 14% in China), adverse fluctuations in the foreign exchange caused the decrease in revenue. On a currency neutral basis, revenues grew by 4% during 2Q2009, as pricing remained constant during the year. The growth in net income is deceptively large, as the 2008 figure includes an $843 million, or $0.40 per share, charge due to changes in the company's accounting policy of its equity investments in its bottlers. Ignoring this charge, net income would've fallen by 12%.

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History of Coke in India

Coca-Cola (also known as Coke, a name that was trademarked by The Coca-Cola Company after it was discovered many people called it by that particular name) is a very popular cola (a carbonated soft drink) sold in stores, restaurants and vending machines in more than 200 countries. It is produced by the Coca-Cola Company (NYSE: KO), which is also often referred to as simply Coca-Cola or Coke. Coke is one of the worlds most recognizable and widely sold commercial brands; its major rival is Pepsi. Coke was originally intended as a patent medicine when it was invented in the late 19th century, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century. Although faced with critiques of its health effects and various allegations of wrongdoing by the company, Coca-Cola has remained a popular soft drink to the present day It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time thanks to a belief that carbonated water was good for the health. The first sales were made at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886, and for the first eight months only nine drinks were sold each day. Coca-Cola was sold in bottles for the first time on March 12, 1894, and cans of Coke first appeared in 1955. By 1888, three versions of Coca-Cola sold by three separate businesses were on the market.
On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned a launch of a Diet Coke product sweetened with the artificial sweetener sucralose ("Splenda"), the same sweetener currently used in Pepsi One. The company actually produces concentrate for CocaCola, which is then sold to various Coca-Cola bottlers throughout the world. The bottlers, who hold territorially-exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans and bottles to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the single largest Coca-Cola bottler in North America and Europe. The Coca-Cola Company also sells concentrate for fountain sales to major restaurants and food service distributors.

The Coca-Cola Company has on occasion introduced other cola drinks under the Coke brand name. The most famous of these is Diet Coke, which has become a major diet cola but others exist, such as Cherry Coke, Coke Zero, and Vanilla Coke. The Coca-Cola Company owns and markets other soft drinks that do not carry the Coca-Cola branding, such as Sprite, Fanta, and others. The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to various bottlers throughout the world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sugar (or artificial sweeteners) and fill it into cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. The bottlers are normally also responsible for all advertisement and other sales initiatives within their areas.

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Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. In India, Coca-Cola ranks third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola Company purchased Thums Up in 1993. The products of the company reach consumers and customers around the world through a vast distribution network made up of local bottling companies. These bottlers are located around the world, and most are independent businesses. Using syrups, concentrates and beverage bases produced by the Coca-Cola Company, their global bottling system packages and markets products, then distributes them to more than 14 million retail outlets worldwide. The Coca-Cola Company is committed to assisting its bottlers with the functions of an efficient bottling operation and initiating quality systems to ensure the highest quality products for their consumers.

The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark Office in 1893, followed by "Coke" in 1945. The unique contour bottle, familiar to consumers everywhere, was granted registration as a trademark by the U.S. Patent and Trademark Office in 1977; an honor awarded very few packages. The most valuable assets happen to be the trademarks they possess. For Coca-Cola, the most drunk soft drink on earth is one of the world s best-known and most admired trademarks, recognized by more than 90 percent of the world s population. Interestingly, the world that is touched by the cherished drinks for every moment, the Coca-Cola trademarks happen not only to be their most valuable assets but of the entire earth. The business system of the Company in India directly employs approximately 6,000 people, and indirectly creates employment for many more in related industries through our vast procurement, supply and distribution system. On the distribution front, 10-tonne trucks, open-bay threewheelers that can navigate the narrow alleyways of Indian cities, ensure availability of our brands in every nook and corner of the country. The term soft drink originally applied to carbonated drinks made from concentrates, although it now commonly refers to almost any cold drink that does not contain alcohol.

Hindustan Coca-Cola Beverages Private Limited is an Indian subsidiary of the US based Coca-Cola Company. The company-owned Bottling arm of the Indian Operations, Hindustan Coca-Cola Beverages Private Limited is responsible for the manufacture, sale and distribution of beverages across the country. Coca-Cola India is among the countrys top international investors, having invested more than US$ 1 billion in India within a decade of its presence and further pledged another US$ 100 million in 2003 for its operations. It is the worlds largest selling soft drink since 1886. The Coca-Cola Company returned to India in 1993 after a gap of 16 years giving new Thums up to the Indian Soft Drink Market and took over the ownership of the nation's top soft-drink brands and bottling network. The vast Indian operations comprises 25 wholly company owned bottling operations and another 24 franchisee owned bottling operations and a network of 21 contract packers also manufactures a range of products for the Company.

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Soft Drink Market In India

Until 1990s, domestic players like Parle Group (Thumps Up, Limca, Goldspot) dominated the soft drink market in India. However, with the advent of the MNC players like Pepsi (1991) and Coke (re-entered in 1993 after it was banned in 1977) in the early 1990s, the market control shifted towards them by the late 1990s. The per capita consumption of soft drinks in India is among the lowest in the world - 5 bottles per annum compared to the 300 bottles per annum in the USA. Consumption in the UK stands at 120 bottles per person. According to a survey, 91% of the soft drink consumption in India is in the lower, lower middle and upper middle class section. In 2000, the soft drink market accounted for 6480 million bottles. Though Pepsi led the soft drink market during the mid 1990s, Coca-Cola through its constant acquisition of the major national and international brands such as Gold Spot, Limca, Thumps Up, Canada Dry and Crush during the 1990s and 2000, emerged as the new leader in the soft drink market during 2001 with Pepsi closely following it.

Coca Cola in India:

Coca-Cola is a leading player in the Indian beverage market with a 60 per cent share in the carbonated soft drinks segment, 36 per cent share in fruit drinks segment and 33 per cent share in the packaged water segment. Till date, Coca-Cola has invested over US$ 1 billion in India and employs over 5,000 people. The Coca-Cola system in India comprises 27 wholly owned bottling operations and another 35 franchisee-owned bottling operations. A network of 29 contract-packers also manufactures a range of products for the company. Though Coca Cola's various beverages have more than half the market share but its flagship brand Coca-Cola remains at third position, with an estimated market share of 16.5%, far behind arch rival Pepsi-Cola's 23.5%. On second position is Thums Up, a sweeter local cola that Coke acquired in 1993.

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Culture
Hofstede defines culture as The collective mental programming of the people in the environment. Culture is not characteristic of individuals; it encompasses a number of people who were conditioned by the same education and life experience. Individuals are products of their culture; they are conditioned by their sociocultural environment to act in certain manners. Culture includes the things that have worked in the past. It includes shared beliefs, attitudes, norms, roles and values found among the speakers of a particular language who live during the same historical period in specific geographic region. These shared elements of subjective culture are usually transferred from generation to generation. Hofsede distinguishes four manifestation of culture: symbols, rituals, norms and values. Values: are moral principles. Norms: are ways to behave. Rituals: are the collective activities considered socially essential within a culture. Symbols: are words, gestures, pictures or objects that carry a particular meaning recognized only by those who share same culture.

How coca cola tackle culture differences in India?

India is a vast country, with lot of cultural and geographical diversities. This has resulted in a number of different languages spoken across the country. Coca cola recognised this diversity and they have produced advertisements in more than 6 languages, reflecting India's linguistic diversity (Business line, 1998). Southern states often require markedly different strategies because of the remarkable cultural differences in south India and North India. So Coca cola came up with alternate celebrity endorsements for south India e.g. They used Tamil superstars instead of Bollywood stars and promote Coke accompanying regionally relevant food combos. In addition to these localised efforts Coca cola has also come up with vernacular style print and television ads. Collectively such cultural mediation of marketing, based on greater insights of local specificity, contributed to the doubling of rural penetration from 2001 to 2003 and the pushing of Coke ahead of former leaders Pepsi and Thums Up in rural markets.

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Segmentation and positioning

Coca-Cola's market is distinguished according to geographic location and age. Geographic location pertains to determination of whether the consumer comes from the rural or urban areas. Although, there are more potential consumers in the rural areas, most of Coca-Cola's customer base is located in the urban areas. India A, the designation Coca-Cola gave to the market segment including metropolitan areas and large towns, represented 4% of the country's population. This segment sought social bonding as a need and responded to aspirational messages, celebrating the benefits of their increasing social and economic freedoms. Life ho to aisi, (life as it should be) was the successful and relevant tagline found in Coca-Cola's advertising to this audience. In early 2002, Coca-Cola India launched a new advertisement campaign featuring leading bollywood actor - Aamir Khan. India B The advertisement with the tag line - 'Thanda Matlab Coca-Cola' was targeted at rural and semi-urban consumers. According to company sources, the idea was to position CocaCola as a generic brand for cold drinks. The campaign was launched to support Coca cola India's rural marketing initiatives. CCI began focusing on the rural market in the early 2000s in order to increase volumes.

Branding strategies
Coca-Cola follows an intensive brand-building programme. The company has used some of the following methods to build its brands in India: The company focuses on understanding the Indian consumer, and in using these local insights to build powerful connect for its brands. On the back of an effective advertising strategy, CocaCola has created a brand that stands for affordability and is inalienable to the common man. Given the widespread popularity of cricket and movie stars, the company has roped in a host of cricketers and Indian movie stars to endorse its product. Activating local Indian festivals and occasions through below-the-line promotions. Creating a distinct identity for each of its flagship brands.

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Coca cola Product standardization

Coca cola is globally standardized product. . The Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world, who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors.

Localised Promotional strategy

Though Coca cola uses standardised product globally, their promotional strategy is very much tuned to suit the Indian conditions. In 1998 Coca Cola, as a part of their strategy to tap the rural market came out with thanda matalab Coca Cola campaign. (Cold means Coca Cola).This campaign was immensely successful. This campaign was based on the Northern Indian vernacular use of thanda' (cold) as a generic term for a cold drink. In this manner one can see that the Thanda campaign attempts to embed Coca Cola in local tradition rather than inserting a foreign one. The Thanda print ads show a series of scenes in which Coca Cola is subsumed by Indianess'. The ads are shot to look unconstructed in a way that embraces the local and celebrates the common-man. Drinking Coca Cola is not emphasised but cooling connotations are evident in the complete series. Although the campaign was aimed at rural India, the way that it seems to intentionally undermine the conventional advertising project itself created an additional appeal with urban India. The television ads were different from the print ads. Bollywood superstar Amir khan was features in the series of television ads. In the series of thanda ads Amir khan posed as different regionally inspired characters.

Supporting regional festivals

Coca Cola uses a local advertising company to devise locally relevant campaigns for the abundant number of festivals in different states. These ads are usually in local language. For example sponsoring local festivals like Navaratri (Nine night festival of traditional dance.

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Adaptations in distribution strategy

Adaptation to distribution in diverse conditions includes use of branded rickshaw vans, tricycles and lahris (pushcarts) that can cope with congested Indian urban roads and an extensive network and hub system has been devised for rural delivery.

MARKETING MIX OF COCA COLA

Marketing decisions generally fall into the following controllable categories:

Product Price position Place (distribution) Promotion

PRODUCT STRATEGY OF COCA COLA

Product: Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

LEVELS OF COKE AS A PRODUCT

CORE PRODUCT
Core benefit is that it fulfills the thirst.

ACTUAL PRODUCT
Design: Pet bottles, returnable glass bottles, economy packs. Quality: Quality differs with respect to country for example. Coca-Cola Can quality that is available in Middle East is certainly different as compared to Coke Can available in Pakistan.

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PRODUCT CLASSIFICATIONS
Coke is categorized as a convenience product, because the purchasing rate is very high and this is the product that is bought very frequently.

BRANDING
BRAND EQUITY
As far as coke is concerned brand equity for the customers is very high. People are highly brand loyal.

BRAND STRATEGY
The following is the brand strategy of Coke

LINE EXTENSION
Line extension occurs when a company introduces additional items in a given product category under the same brand name. For example if Coke introduces new flavors and package size, it will be considered as line extension.

BRAND EXTENSION
Brand extension means using a successful brand name lets say Coca-Cola and then launching new product for example cherry coke. This was an example of brand extension.

MULTI-BRANDING
It means introducing additional brands in the same category. For example Coca-Cola not only introduced coke as a brand but also sprite and Fanta.

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 DIVERSIFICATION
It means introducing new product with the new brand name. It means diversification but this is something Coca-Cola has not adopted for as yet.

PRODUCT LINE DECISIONS

PRODUCT LINE LENGTH
It means the number of products that company is offering. For example Coke, Diet Coke, Fanta, Sprite etc.

PRODUCT LINE FILLING

Product line filling means that earlier when Coca-Cola started it had only one flavor of coke available and that is classic coke but with the passage of time company filled the product line by adding diet coke, diet lemon etc.

PRICING STRATEGY OF COCA COLA

The amount of money charged for a product or service, or sum of the values that consumers exchange for the benefits of having or using the product or services. As price gives us the profit so this P is very important for business price of product should be that which gives maximum benefit to the company and which gives maximum satisfaction to the customer. Following factors Coca Cola kept in mind while determining the pricing strategy. Price should be set according to the product demand of public. Price should be that which gives the company maximum revenue. Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy your product.

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 Price must be keeping the view of your target market. The price of Coca Cola, despite being market leader is the same as that of its competitor Pepsi Cola. Sometimes, Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle and consumers think that they save a lot of money from this.

PRICES OF DIFFERENT BOTTLES Size of Coca Cola

Regular bottle Non returnable or disposable bottle 1.5 liter bottle 2.25 liter bottle Coca Cola can

Price of Coca Cola (RS.)

12 25 60 70 30

PRICING STRATEGIES
COMPETITION BASED PRICING APPROACH
Coca Cola has intense competition with Pepsi so its pricing cant exceed too much nor decrease too much as compared to the price of Pepsi Cola. If price of the Coca Cola exceed too much from the Pepsi then people will shift to the Pepsi Cola and on the other hand if the price of Coca Cola decreases people might get the impression that its quality is also low.

PROMOTIONAL PRICING POLICY

Coca Cola has offered promotional prices very frequently. Especially on some occasion Coca Cola reduces its rates like in Ramzan Coca Cola reduces its rate unto 5 Rupees on 1.5 liter bottle.

MARKET PENETRATION PRICING POLICY

Prices in beverage industry are determined by the consumer. In an economy like that of Pakistan, consumers tend to switch towards a low priced product. Coca Colas objective is to target every consumer of the country so Coca Cola has to set its prices at such a level which no one can offer to its consumers. That is why Coca Cola charges the same prices as are being

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charged by its competitors. Otherwise, consumers may go for Pepsi Cola in case of availability of Coca Cola at relatively high price.

DISCOUNTS
Coca Cola offers various discounts to those retailers who have the maximum sales of Coca Cola products on daily, monthly and on seasonal basis. Some of the main discounts given to the retailers are as follows:

QUALITY DISCOUNT
Following are discounts offered by Coca Cola.

1/10 DISCOUNT
I.e. one case of Coca Cola is free on buying 10 cases of Coca Cola at one time.

2/20 DISCOUNT
I.e. two cases of Coca Cola are free on buying 20 cases of Coca Cola at one time.

SEASONAL DISCOUNT
Following are discounts offered by Coca Cola. Coca Cola also offers seasonal discounts schemes by reducing price in Ramadan and on Eid. Coca Cola also offers trade in allowance for retailers.

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 3 B F DISCOUNT
I.e. sometimes, especially in the off-season duration, in order to increase the sale of Fanta and Sprite, 3-BF discount is given (i.e.) 3 bottles free on purchasing every case of Fanta and Sprite.

INCENTIVES
Mainly two types of incentives are given by the Coca Cola:

INCENTIVE TO RETAILERS
Coca Cola provide various incentives to retailers on the best sales and achieving the predetermined sales targets. These incentives are in the shape of: Deep Freezers Return Tickets Free Transportation Services.

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REGION WISE CONSUMPTION OF COCA COLA

Coca Cola is the world renowned soft drink and the company is currently operating throughout the world. The world wide total is 23.7 Billions. Review according to the regions is as follows:

Region wise Consumption of Coca Cola

15% 3.555 billion cases 17% 4.029 billion cases 27% 6.399 billion cases Latin America North America Europe Pacific Eurasia & Africa 17% 4.029 billion cases 24% 5.688 billion cases

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So the volume is least in Eurasia & Africa and the most in Latin America. From this data we can find out that the customers of Coca Cola are increasing which is shown the companys per capita income.

SWOT ANALYSIS OF COCA COLA

Strengths Internal
-Popularity -well known -branding obvious and easily recognized -A lot of finance -customer loyalty -International Trade

Weaknesses
-Word of mouth -lack of popularity of many Coca Colas brands -Most unknown and rarely seen -result of low profile or non-existent advertising -health issues

Threats External
-changing health-consciousness attitude -legal issues -Health ministers -competition (Pepsi)

Opportunities
-many successful brands to pursue -advertise its less popular products -buy out competition. -More Brand recognition

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