Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
MARKETING
PLANNING
1/13/2015
Executive Summary
The report is about the Coca-Cola Pakistan now knows as Coca-Cola Beverages Pakistan
Limited, the report is about the extensive findings of the company since its inception in Pakistan
which comprises of Business Scope, External Analysis, Internal Analysis and development of a
Strategic Marketing Plan. It gives an overview of the Beverage Industry in Pakistan and specially
the ready to drink market which major chunk belongs to carbonated soda drink market. The
different method of External and Internal Analysis helped us to formulate the action plan; the
report is based on material information as well as some parts are also developed on the basis of
assumption due to non-availability and confidentially of the information.
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Table of Contents
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Acknowledgement
First of all, wed like to thank ALLAH SWT for giving us the strength to carry on this project
and for blessing us with many great people who have been our greatest support in both personal
and professional life.
We also take this opportunity to express our profound gratitude and deep regards to our course
instructor & mentor Mr. Ekhlaque Ahmed for his exemplary guidance, monitoring and constant
encouragement throughout the course of Strategic Marketing Planning.
Wed also like to thank specially Mr. Bilal Parekh former auditor at CCBPL and the entire
CCBPL crew who supported specially Ms. Ushba Taseer (RSM).
3|Page
Letter of Transmittal
4|Page
10478
10045
11862
Sales
Tea
CSD
Juices
Other
The above chart doesnt include non-formal products like lassi, satu, Rooh Afza etc.
5|Page
Coca Cola
35%
Pepsi
65%
6|Page
7|Page
Pepsi
28%
Coca Cola
42%
In 2014, Nasdaq reported that Coca-Cola have won the war after snatching significant market
share of global carbonated soft drink market. (StreetAuthority, 2014)
8|Page
The Coca-Cola System in Pakistan serves over 200,000 customers/retail outlets. The Coca-Cola
System in Pakistan employs over 3.000 people working continuously for the company and over
8,000 indirectly associated with the company. CCBPL has 7 plants and 15 warehouses
throughout the country and serves a population of more than 170 million with a production
capacity of 120 million physical cases. CCBPL is a significant player in the growth of Pakistans
economy since it is one of the countrys top foreign direct investments in FMCG (Fast Moving
Consumer Goods) business and is one of the major tax paying beverages companies of Pakistan.
Coca-Cola Beverages Pakistan Limited after taking all over operations of all plants that were
partly owned by franchises implemented a distribution system which is still under
implementation and is being further extended.
Coca-Cola in Pakistan is consistently taking away Pepsis market share, by 1980s the market
share of Pepsi was above 80% which is now down to 65% according to report based in American
newspaper and currently Coca-Cola makes consumption of 15 bottlers per capita every year and
is set to be increasing. (Wright, 2010)
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Business Scope
In 1953 Coca-Cola entered in Pakistan, after nine years of Pakistans inception to provide the
most popular beverage of that era that was Coca-Cola and also to fulfil their mission to refresh
the world and to create value and make difference and after 60+ years the Coca-Cola is ready to
complete its 2020 vision. Not only that Coca-Cola had introduced its new offerings in the face of
Sprite, Fanta, Minute Maid, Kinley and believes to bring more of its brands in Pakistan.
Regions:
Coca-Cola Beverages Pakistan Limited currently distributes to most of the urban cities and many
rural areas via its new distribution system implemented for the first time after being centralized
less than one roof, however rural market isnt the target market despite major chunk of
population relies on rural areas, and Coca-Cola internationally serves 200 countries with their
3000 products.
CCBPL have predefined 11 territories across Pakistan which includes; Karachi, Lahore,
Hyderabad, Multan, Rawalpindi, Peshawar, Rahim Yar Khan Etc.
Functions & Applications:
Coca-Cola Pakistan serves the beverage industry in Pakistan and it follows its mission to refresh
the world and to inspire the moments of happiness and optimism, Coca-Cola always have tried to
provide the quality beverage to its customers with consistent quality improvements
Customers & Users:
In Pakistan there are very few numbers of Coca-Cola products introduced and therefore some
products that are made for specific age groups arent launched in Pakistan due to it being not
fully mature market nor there is much awareness or demand, flavors of lime, vanilla and cherry
are available in many different countries that are specifically targeted towards children aged 416. However Pakistan being a very young country where the average age of Pakistani population
is less than 36 which means that most of the population belong to youngers and therefore its
easy to target them .
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However its seen that all over Pakistan be it young or old seems to be a market for Coca-Cola
and all sort of carbonated soda drinks, juices and due to concern of water purity even providing
bottled water is increasing and nor the customers are gender specific.
Value:
From time to time Coca-Cola in Pakistan have carried out improvements and in order to create
shared value that is in the best interest of their valuable customers they abolished franchising
system and instead centralized due to the quality and availability concerns, not only that CocaCola plants across Pakistan are considered one of the most modern bottling plants that provide
quality beverage, within the span of 2004-2014 the foreign investments worth $450 Million were
deployed in order to facilitate Coca-Cola system in Pakistan.
Coca-Cola believes in implementing new technologies time to time in order to enhance customer
experience as well as making sure that the product is available.
Future:
Coca-Cola Pakistan has always looked forward to enhance its product line and in due course
Coca-Cola might invest more in order to create plants and enhance availability and visibility of
products.
There are new flavors of Minute Maid in pipeline whereas new flavors of new introduced Fanta
might also be introduced looking forward at the maturity of the market. However the flavored
coke introduction might not be possible nor Coca-Cola might bring its snacks or energy drink
units due to low profit margins.
Business we are not in:
Coca-Cola is specifically a beverage company and 95% of the products internationally belong to
beverage divided intro sparkling, still and water category all comprises of no alcohol and the
remaining part belongs snacks like Task iris etc. Therefore the company isnt not outside the
food business.
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Market Structure
Category
Sparkling
CCBPL
Coke Sprite
Fanta
Pepsi
Pepsi 7up Marinda
Mountain Dew
Minute Maid
Kinley
Slice Aquafina
Energy Drink
Sting
Snacks
Frito Lays
Still
End Users
End Consumers
(Children, Teens,
Adults)
Application
Discounted Price
Products
Purchaser
proprietor/procure
ment dept.
Mass Trade
Key
Accounts
Distributors
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CCBPL
PKR - Billions
Analysis:
Historical data indicates that still-beverage industry is gaining momentum and is under due
growth process, still includes juices, slush and drinking water.
However CSDs market have had expanded significantly over a decade.
Consistent foreign investment by both PepsiCo and Coca-Cola amounted to over 1.5 Billion USD
within this decade which also resulted in better plants, distribution and marketing budget.
The major chunk of still beverages belongs to the mineral water specially Aquafina by PepsiCo
and Kinley by Coca-Cola, however low priced tetra packed juice by PepsiCo Slice have
significant lead over Minute Maid by Coca-Cola which is priced as twice as Slice.
The diet carbonated soft drinks have had significant increase over a decade due to health
concerns.
The introduction of both slim cans priced at Rs. 25/- are also growing at a powerful rate
contributing to the entire CSD market.
The Non-returnable glass bottles 1L were finally discontinued by Coca-Cola in the end of 2013
that increased capacity for Pet bottles instead.
The industry saw 64% increase in half a decade of cases sold
Assumptions:
The beverage industry as overall is growing at sheer pace of 10-15% which includes all sorts of
beverages.
The carbonated soft drink isnt far behind and there is 7-8% growth every year with only two big
players in the market the domestic colas arent threats.
The beverage industry awaits more growth as both Coca-Cola and PepsiCo are infusing foreign
investments.
If the taxation policies are kept under control unlike the recent fiasco of bottling tax which
almost became reason for the closure of Pakola, whereas if the corporate tax and general sales
tax remain same or goes below a certain extent the growth shall continue.
The still industry could do better if certain new products are introduced that directly compete
with Nestle Fruit-A-Vitals and other juice boxes.
The increasing population is also increasing the growth of these beverages.
Beverages are now being associated with lifestyle therefore its usage will further extend.
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Introduction
Growth
Maturity
Decline
Analysis:
The still beverage is under a growth stage and yielding good sales despite competitors like
Nestle.
All CSDs are in maturity stage however the sales are increasing at a consistent rate and will
double up within a decade.
Sprite 3G by Coca-Cola is under a decline after being launched twice (2005 Launch, 2007 Relaunch), couldnt stand the competition of Mountain Dew which is doing very well.
However Fanta Citrus is looking more of a Sprite 3G replacement yielding more than budgeted
sales in Ramadan 2014.
.
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Analysis:
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Social and Culture: Coca-Cola is very careful in the application of its promotional campaigns
and introduction of its products in Pakistan, since the social and cultural environment of Pakistan
is very different as compared to other countries and is very conservative and any reminiscent
advertisements usually face a lot of negative reactions on the part of the consumer and
sometimes results in boycott of Products and ignoring of the brand usually. Social factors
comprise of consumer itself, its family and groups associated with it and its status. Family
members definitely 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 other hand, sometimes people prefer to go for the product that demonstrates their eminence in
society at large. Thats the reason it results in impact, company targets younger generation which
had found its place to socialize online on social network, therefore to understand patterns online
is easier as compared to reality. The cultural on the other hand also results in an impact, if we
take a look fifty years ago, Pakistan was not about soft-drinks and colas it was more about
homemade beverages such as tea, lassi, satoo, juices, soup etc. But now it is becoming part of
our cultural no wedding in Pakistan goes without sharing a soft drink today and therefore it has
created and influence on culture and had get along well with cultural norms of Pakistan specially
in the urban areas.
Personal: Personal choice impact the buyer decision such as age of the byer, the customer life
cycle stage, personality, attitude, perception, occupation as well as norms. The biggest factor
usually in personal characteristics is the life cycle stages which explain that over the time line the
preference, taste and choice of an individual has been changing with a consistent rate. For
example: At the starting stage the potential customer isnt aware of a soft drink but will be when
reaches to a new stage of its life and there will be a stage where the consumption will end. It is
also upon the way of thinking of an individual there are people who never drink these beverages
whereas for some it maybe because of their occupation which gives them purchasing power of
the product an individual with low salary would prefer a regular glass bottle of Coke over a 45
rupee can. Same goes with health concerns some would prefer a diet drink over a normal highly
carbonated drink
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Competitor Analysis
Customers: Coca-Cola Bottlers Pakistan have got some of very large buyers throughout Pakistan
that order massive quantity of cases one of them is McDonalds Pakistan who have cola fountains
installed in every branch which require Millions of unit cases annually just like there are
institutions such as Pakistan railways, whereas in the city of lights one of the most popular
restaurant B.B.Q tonight exclusively sells Coca-Cola products like these are so many exclusive
institutions, modern trades like Hyper star, Imtiaz, Metro etc. Despite these big customers there
is always a threat to lose them to an ardent competitor like Pepsi which is consistently sniffing
for any sort of loopholes whereas there are other factors such as bargaining power resulted in
further discounted price and lower margins.
Substitutes: There might be no viable competitor other than Pepsi in the carbonated soda drink
industry; however there are some substitutes that take away good share of carbonated soda
drinks. Nestle is one big example of it who have juices and nectars of two types: Fruit-a-Vitals
and Nes-Fruta, the former one is targeted for a premium market whereas Nes-Fruta competes
with the range of juices like Shezan, Froto, Slice etc. Other substitutes also include flavored
milk, ice coffee /tea and water as well.
Competitors:
Direct Competitors: Definitely the direct competition is from the market leader Pepsi in
Pakistan and which heavily enjoys 65% share between Coca-Cola and Pepsi in Pakistan, whereas
Coca-Cola is performing pretty well as compared to last two decades when their market share
was only 15% which has now risen up to 35%. There is no local competitor that could become a
threat because over the years many Colas tried to get in the market but miserably failed. The
scenario in the global market is almost opposite. Both PCI and CCBPL are engaged in price and
scheme wars, whereas the turf war of sponsorship has fueled over the years.
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Indirect Competitors: There are many indirect competitors such as Nestle, Shezan, Froto, and
Milo etc. however they never have been a threat to the soda companies because of a relatively
different segment, however these companies have ability to project a serious threat. Recently the
raising health issues and concerns related to diabetes and obesity have resulted in people
boycotting the highly carbonated soda drinks with these juices and dairy products.
Suppliers: Coca-Cola have authorized suppliers which work on contract based supply, this part
is divided into two parts one is raw materials that are used for making of beverage and other is
the concentrate that is imported from The Coca-Cola company based in Atlanta therefore there is
no significant threat posed by the suppliers. Serious concern is shown toward their material by
their procurement department and expired batches are also pulled away from market directly by
CCBPL, there were some issues before CCBPL was incorporated and there was franchising
system but the quality is way better as compared to their competitors.
New Entrants: Coca-Cola has never been afraid of new entrants in the market; the management
believes that entrants help in developing good competition. The competitors like Mecca-Cola
and Amrat Cola dont pose such threats and these companies are like visitors that come and go,
they dont hold threat to either Coca-Cola or Pepsi in Pakistan. However new entrants in shape
of alternative products always pose a threat to cut some hefty share of CSDs.
Following is the list of all direct and indirect competitors:
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Analysis:
There always has been issue with Coca-Cola securing retail outlets across Pakistan.
CCBPL tries to fetch exclusive outlets; however they cant keep up with consistent
stockings.
CCBPL also relies a lot on institutional sales, McDonalds all over Pakistan is one giant
fast-food chain that purchases cola for their fountains whereas BBQ Tonight in Karachi is
one of their biggest institutions of Karachi itself both are exclusive.
Modern trade includes all large scale super markets that came some years ago but are
gaining huge share in distribution system in beverage industry.
Key accounts include large retailers like depots, super stores and outlets that have
relatively high sales for example Naheed Superstore in Karachi for CCBPL.
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External Trends
Analysis
The cola market is highly concentrated towards urban cities and emerging urban cities
same is the case with industries, both of the companies arent willing to take this
advantage/risk.
Due to raising inflation over the decade the company never had drop in price, however
margins were affected with certain tax policies and distributor/channel margins.
Minute Maid is premium offering priced at 45 PKR Regular Pet which is a success and
growing at a pace of recording sales of 5.2 Million unit cases in its 3rd year of
introduction.
The communication is playing vital role at todays age especially in the form of Internet
and social media, both companies have established such social media brand pages to
communicate their offerings without any major cost as compared to traditional marketing.
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In this very fast moving consumer drinks distribution networks and channels usually acts
as game changers, both of these companies believe in continual improvements in this
field.
The technological trends are enhancing the plant production and efficiency and are being
adapted by both.
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Internal Analysis
SWOT
Strengths
Coca Cola is the best global brand in the world in terms of value and recognition. The brand
sustains a similar recognition in Pakistan
Worlds largest market share in beverage and an increasing market share locally.
Strong marketing and advertising, with innovative platforms of consumer engagement such as
customized bottles and Coke Studio.
One of the most extensive beverage distribution channels, with efficient sales system that
ensures reach and also human resource development.
Global customer loyalty and local accessibility for the consumer
Bargaining power over suppliers due to strong relationships with bottling companies.
Strong institutional sales and accounts, for example lucrative tie up with McDonalds, BBQ
Tonight, and Fat Burger etc.
Weaknesses
Opportunities
Threats
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SWOT
Strengths
Coca Cola is the best global brand in the world in terms of value and recognition. The brand
sustains a similar recognition in Pakistan
Worlds largest market share in beverage and an increasing market share locally.
Strong marketing and advertising, with innovative platforms of consumer engagement such as
customized bottles and Coke Studio.
One of the most extensive beverage distribution channels, with efficient sales system that
ensures reach and also human resource development.
Global customer loyalty and local accessibility for the consumer
Bargaining power over suppliers due to strong relationships with bottling companies.
Strong institutional sales and accounts, for example lucrative tie up with McDonalds, BBQ
Tonight, and Fat Burger etc.
Weaknesses
Opportunities
Threats
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Confrontation
Matrix
Strengths
1) The brand sustains a strong
recognition in Pakistan.
2) A gaining market share
locally.
3) Strong marketing and
advertising.
4) One of the most extensive
beverage distribution channels,
with efficient sales system
5) Local accessibility for the
consumer
6) Strong relationships with
bottling companies.
7) Strong institutional sales and
accounts
8) Strong financial muscle from
global sales/parent company
Weaknesses
1) Significant focus on
carbonated drinks.
2) Undiversified product
portfolio locally.
3) Brand failures
4) Extensive competition in
distribution
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Opportunities
Threats
1) Bottled water
consumption growth
2) Increasing demand for
healthy food and beverage
3) Growing beverages
consumption in emerging
markets (rural)
4) Growth of international
and local restaurants/food
chains and franchises in
Pakistan
S1, S2: T1
Sustain consumer recognition and
market share with reinforcement
S4, S6: O2
Utilize strategic assets to
increase market share in still
and juices category
S7:O4
Increase sales via institutional
tie-ups
W1, W2: O3
Explore other markets with
current product focus
W2,W3, W4: O4, O3
Increase focus on existing
products such as Kinley and
Minute Maid, push for current
portfolio in restaurant industry.
Absolutely
Critical
Very
Important
Quite
Important
Nice to
Have
Not
significant
Dont
Want it
Price
Product Innovation
Yes
Yes
Product Quality
Availability of stocks and
Outlet Coverage
Yes
Yes
Customer service/support
Yes
Marketing/Communication
Yes
Suggested Definitions:
Absolutely Crucial:
Very Important:
Quite Important:
Nice to Have:
Not Significant:
Dont want it:
Overrides most other considerations, wouldnt consider supplier who doesnt perform on
this factor.
One of the first things we ask for, but we may be prepared to negotiate on it.
A negotiable item, but one when we attach considerable weight to.
It could make the difference in a division, but is normally taken into account last.
Not normally taken into account at all.
Would prefer a product without this feature
Synopsis:
As one of the key players in the beverages market, Coca Colas, in Pakistani market, most critical
tangent to compete for market share is accessibility. The product presence and availability
therefore become absolutely critical.
Price has become a significant factor to compete on as beverage purchasing in Pakistan is not
only done on the basis of share of throat but also share of wallet. Cut downs, special seasonal
pricing are all commonly used mechanisms to maximize C2C sales.
The beverages industry relies heavily on bottling partners, government subsidization,
distribution partners and a key concern for the company in order to sustain its trend of gaining
market share is by ensuring the costs of maintaining these relationships are not volatile or
inconsistent.
Input: Ingenious ways to increase accessibility can create a sustainable positive impact on key
concerns; price, distribution and costs.
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This Business
Comp A
9
9
8
8
8
9
9
9
8
9
10
30
8
5
7
8
100%
55
59
Same
Same
45-50/L
45-50/L
35-40/L
35-40/L
Non Price
Attributes affecting
Customer Choice
PRODUCT RELATED
1. Quality
2. Carbonation
3.Brand Image
4.Packaging / SKU
5.Taste
WEIGHTAGE
%
60%
10
10
10
15
15
SERVICE RELATED
1.Temperature (Chilled or Un-chilled)
2.Availability
TOTAL
Has quality gone up/down (+/-)In past 4
years
40%
Rating Scale: 1 10
1 = Very Weak
10 = Very Strong
Learnings:
The choice of Coca Colas prime products, carbonated soft drinks, is made with an interesting
blend of factors at play. Whereas taste preference and brand loyalty are the strongest
contributors globally, in Pakistan both different product and service related factors come into
play.
The SKUs available and packaging are important considerations when it comes to purchasing.
Coca Cola has successfully managed to introduce consumer preferred SKUs in the local market
and be the initiator in this regard. Pepsis taste is slightly more close to Pakistani preference.
What is critical however is availability and also how it is available. Consumers dont mind paying
a higher amount for an easy to access, chilled drink and this is the key success factor for Pepsi in
Pakistan due to its ground level extensive penetration. Coca Colas strategic intent should
therefore reflect the addressing of this lagging.
Input: It is essential for Coca Cola to diversify from its heavy reliance on institutional sales in
Pakistan, which can be better possible if it becomes a brand for the masses.
29 | P a g e
Keep it up
Better
Taste/Carbonation
Same
Packaging/SKU
Worse
Temperature
Do not
sweat
10%
Quality
Brand
Image/Communication
Availability
20%
30%
Accessibility and being available for the masses needs foremost attention.
Consistency in taste and quality need to be sustained as they are helping in gain market share.
Service points need to improve to increase buyer value.
Distribution channels and access points need to be made part of the value chain
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Product
Innovation
Company
Credit
Policy
Customers
$ Price
Consumer
Purchasing
Power
High
Manufacturing
Cost
++
+++
++
+++
Market segments
Products/Services
+++
+++
+++
Strategic Management
++
+++
+++
+++
Operations (Production/Logistics)
++
+++
+++
+++
+++
Technology
+++
Distribution Channels
Raw Materials, Energy
Organization Structure
+++ Critical
++
+++
+++
+++
+
+ High Impact
Learnings:
Like a typical FMCG company, purchasing power of the consumer is a very significant aspect which
needs to be addressed in most of the possible issues. For Coca Cola, all consumer oriented issues
become paramount for consideration and require the company to know their consumer inside out in the
rlocal context to be successful.
Input:
Ensure price and cost is coupled with value innovation to maximize buyer utility.
Consistency and avoidance of discrepancies in quality can assure gaining market share.
Connectivity with growing markets and households through targeted communication can help
increase sales.
Strategic intent of improving accessibility and distribution channels should be reflected in
system re-processing, development of partnerships and penetration tactics in order to compete
with Pepsi.
Segmentation needs to be aligned with a clear, futuristic objective to get the best results.
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Customer Profile
Demographics
Age: 5 70+
Gender: Male and Female both
Family: Cohesion families
Occupation: Usually associated to any occupation.
Religion: Muslims, Hindus and Christians etc.
Nationality: Pakistani
Psychographic
Social Class: lower, middle, middle-upper and upper-upper
Life style: Trendy, quality conscious, trying to differentiate themselves from others, family belongings,
Cultural and Heritage values, Pride, Patriotism
Personality: Elegant, simple, extrovert
Behavioral
Occasions: Eventually whenever they want to, religious events, life events, family time.
User status: Fan boys (hardcore users), normal users, non-users
Usage rate: usually higher when events arrive like Ramadan, Eid Al Adha, Peak of summer.
Readiness stage: intending to buy
Attitude towards product: Positive
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Where?: Cold drinks specially carbonated soda drink like Coca-Cola is available everywhere and
customers usually is able to buy from wherever he/she wants with over 200,000 retail outlets in
Pakistan the user finds maximum visibility of the product be it a short dhaba at truck adda or be it a five
star restaurant in Marriot.
When? :Whenever they realize the need of consuming one, however usually many customers buy at the
start of the month specially economy packs in their pre-month utility and food products, whereas many
buy on an occurrence of an event the most common is, any guest coming at home, the Coca-Cola is now
being aligned with Cricket, its been seen that the sales use to hike during Cricket tournaments in the
case of Pepsi, because it was aligned from the start of Pepsi offerings in Pakistan and its the world
longest sponsorship deal between Pepsi and PCB.
How?: Customers chose Coca-Cola in various ways but due to Pakistan being a mature country in terms
of consumption for carbonated soda drink beverages, there is no specific preference. Its dependent
upon the availability of the products, when the products of both Coca-Cola and Pepsi are available on a
same shelf the company tries to align the product with youth, lifestyle, fun, sports and music through
communication with both ATL and BTL.
Why? Coca-Cola is a global brand and a leader in the beverage industry, the preference of Coca-Cola in
Pakistan is divided into two parts, one is the availability prospect and other is the brand image among
people.
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Value Chain
Innovation in Communication
Coca Cola Pakistan has kept its communication strategy parallel to its global policy and ensuring
all communication is aligned and connects with the consumers. Even if it is not for the masses,
the campaigns are massive, engaging and exciting to be involved in. Coke ads and activations,
not only create product recognition and solidify brand personality, but also increase buyer utility.
They have a product impact on sales.
Sales Force Empowerment
Coca Cola has managed to get a gaining share in the local market, due to its investment and
strategic focus on developing a strong and well equipped sales force. This specialized task force
of Coca Cola does not only support inbound and outbound logistics, but serve as the backbone
for the companys operations, understanding and executing the consumers insights and partners
concerns.
Quality Assurance
From ingredients, to packaging, to the operation technology, the paramount objective in all
aspects remains the upholding of quality Coca Cola promises as a legendary brand. The local
division of this multinational ensures that all legs of the value delivery process follow the
international standards and give the best, uncompromised product to the consumer. This
sustenance of quality is reflected in all functions and creates an assurance within the consumers
that they are getting the best in the world.
Packaging Technology
Coca colas packaging technology and SKU variety is not only a core strength but also addresses
various needs of the consumer base. From sharing quantities to individual units, Coca Cola caters
to all the demands or preferences the consumers may have and are also recyclable and re-usable,
therefore having a sustainable, cost effective impact. These SKUs also help target various
income groups and provide value for money to consumers, in turn enabling increasing buyer
utility. This technology promises higher margins and increase in sales, as apparent from the
recent customized bottles campaign
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Key Issues
Following are the key issues that were derived while doing the analysis of Coca-Cola Pakistan.
Market Share: The vision of the Coca-Cola Pakistan suggest that they want to be the market
leader in Pakistan, however they are stuck at the market share of 35% whereas the market of
Pepsi is in Pakistan is around 65%, which shows a huge gap between the two Corporates and it
can be said that the market share at this time is the biggest issue for Coca-Cola Beverages
Pakistan Limited in Pakistan which is growing at a slower rate, the company only had 10%
market share in 80s and in around 34 years company have only managed to rack it around 35%
in the carbonated soda drink (sparkling market) as of today, there are many reasons that caused
the company to be stuck on this stage. This is also not fulfilling the global vision that is Vision
2020 which means that the goal wont be reached if Pakistan Coca-Cola doesnt reach this goal.
So this is the highest priority issue for the company currently we have thought be addressed
quickly as possible.
Distribution: The another high priority and key issue that falls in the ambit of issues that needs
to be addressed is the distribution system of the company, Coca-Cola Pakistan have had
consistently suffered distribution blows over the time and before its centralization it was even
more pathetic The company isnt doing well in terms of distribution of our drinks, the retail
outlets arent satisfied with the distributors either, we have struggled for an in-house distribution
in past we cannot currently shift the option and we need to work out on third-party distribution
system. Globally, mostly successful franchise of Coca-Cola currently have a bottling plant plus
in-house distribution system but not in Pakistan not the largest of the competitor PepsiCo does
that in Pakistan. The distribution system that is currently under the ambit hurt in two ways one
with the loss of sales and other with the loss of retail outlets, when some sort of issue occurs the
customer and the retailer is also affected from the distributors end, distributors tend to claim
Coca-Cola need to increase their production capacity in some plants as-well, the other issue it
faced was slow stockings to its retail outlets across Pakistan. Many retail outlets complained that,
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despite being exclusive outlets for Coca-Cola they were out of stock for days and despite
requisition the stock wasnt filled and they had no option to call to Pepsi distributors to give
them stock, due to this many of the exclusive retail outlets went from the hands of Coca-Cola.
Competition (PEPSI): The biggest issue in the industry of beverage industry is the stiff
competition, although Coca-Cola Pakistan doesnt have any competitor except Pepsi Pakistan
when it comes to carbonated soft drink industry in a direct competition, however there are
indirect competitions that usually knock doors to take a good share of carbonated soda drinks,
there are aspiring domestic companies in Pakistan that could do damage in future such as Engro
Foods Limited by introducing a carbonated drink over the decades brands like Walls, Milk pack,
Froto, Tapal etc. were unchallenged and today after decades we could realize that they all are
under tough competition striving to sustain their growth and margins.
The competition from Pepsi isnt repent able by Coca-Cola Pakistan and in this scenario if such
competitor enters Coca-Cola will be first to get affected by any such havoc, previously all soda
companies which entered were of small scale, if someone like Engro enters in such market it
Not enough products: When we talk about the key issues one of them is availability of less
products or introduction of less products in Pakistan, whatever the reason maybe, there are 3000
products of The Coca-Cola globally and only nine products are there in Pakistan, there are so
many segments that are not targeted, there are so many products that could be introduced,
whenever this question is asked related to introduction of products the reply is same the margins
are the issues and hence the products arent introduced whereas on the other hand Pepsi is trying
to capitalize every segment within the industry with his offerings of juices and energy drinks.
Our taste is not as sweet as people want: Globally Coca-Cola is loved because of its low
sweetened taste and in the 90s the taste was changed and due to that there was big chaos and
people wanted the same flavor back, whereas in Pakistan the biggest issue is that is the taste
people usually dont like this taste and this seems a biggest stepping stone, we could do either by
introducing a new coke with a Pakistani sort of taste and re-brand as Coke classic with the same
old taste in this way the product portfolio will be enhanced too.
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Downtime: One of the major issue that company faces is the machine downtime issues across
Pakistan specially in Punjab based plants due to shortage of electricity and there is no selfgenerated electricity plants therefore there is a lot of machine downtime due to that and due to
that product efficiency in cost creates a problem as well as labor is also paid while downtime
which also adds to the unit per cost.
Juice market and Energy Drinks: There are many segments that Coca-Cola currently lags
behind such as an economy juice that could match the price of other juices available in the
market as well as huge market of energy drinks, in the companys global product portfolio there
are various energy drinks that are suited for different target markets and they could try brining in
the bottom of the line product if they believe economy is the case, with over 3000 products
globally, Coca-Cola have only bought nine products in Pakistan which is a setback, Pepsi has
capitalized in the snacks industry of Pakistan by brining Frito Lays to Pakistan whereas CocaCola
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Marketing Plan
Strategic Intent:
1) To close the gap between market leaders and eventually eliminate the gap and conquer
the Pakistani beverage industry.
2) Developing and reshaping sustainable growth system continuously.
Competitive Innovation:
1) Building a unique and smart distribution and channel system that is effective for all
stakeholders and specially creates value for
2) Enhancing efficiency by further automation resulting in increased margins and cost
cutting.
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Mission: Coca-Cola Pakistan exists to refresh the consumers, inspire moments of optimism
through our brands and actions as well as benefit all stakeholders, which we will do with highest
social responsibility and with uncompromising commitment towards quality of our products and
integrity in our operations
Vision: To become a market leader in ready to drink segment while adding best-in-class value to
all stakeholders.
Objectives:
1) People and Organizational Leadership: Build a highly capable organization and be the
employer of choice
2) Commercial Leadership: Profitably deliver superior value to consumers & customers at
the optimal cost to serve
3) Supply Chain: To be the best in class consumer demand fulfillment organization that
exceeds customer expectations highest in quality, lowest in cost, in a sustainable, socially
responsible manner
4) Operational Excellence: Create a culture of Operational Excellence to support continuous
improvement of our business process and systems
5) Sustainability: Ensure the long term viability of our business by being proactive and
innovative in protecting the environment and be recognized as one of the most
responsible corporate citizens by all stakeholders
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Product Plan
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Pricing Plan
In a beverage market where only two companies powerfully, the price remains stagnant until the leader
some does something. The regular bottle price hasnt be slashed since a decade or more, the prices has
always been inflated over the period of time whatever the type of bottle it may only special discount
comes up and the competitor usually replicates.
Usually Coca-Cola doesnt steps up in any such promotions; Coca-Cola is a follower in this case.
Coca-Cola Pakistan doesnt goes below RS 15 maximum on its regular 250ml bottle which is the lowest
paid the margin is confidential and is likely to between RS 7 which means the cost is around RS8-9.
Above are the margins on which the cases are sold to retail outlets, key accounts, institutions, modern
trade and depos on various rates. A regular bottle of Coca-Cola/Sprite/Fanta all sell on same rates with
specific rates were crate, retail outlets the price sold is around 17-18 Rupees, whereas depos are sold
for 15-16 Rupees.
If the operational efficiency is increase the six sigma is achieved and bottling plants have higher capacity
and further automation the price would significantly fall by some cents but would impact big on the
sales of Coca-Cola.
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Promotion Plan
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Channel Plan
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Action Plan
S
#
Input
Pg.#
SWOT
Key Issues
24
38
Improving availability,
faster re-stocking
24
22
34
25
36
38
25
Making distribution
structure deeper,
targeting accessible and
high potential rural
markets that are in a
stage of development.
Increase production
capacity
Competitive
Innovation
Market Growth
34
14
Forcing more
exclusive outlets
Distribution
Share
Competitor
Analysis
External Trends
22
20
23
Winning exclusive
outlets by marketing
support.
Improve Availability
Bringing up new
products
SWOT
Distributor
Structure
Strategic Intent
SWOT
Product Plan
Key Issues
Expanding to Rural
Markets - Only 5%
Ref
SWOT
Winning more
institutional sales
Distribution
Share
22
Product Plan
36
Eliminating Sprite 3G
10
Cash in Cash to
Retailers
Dis. Share.
Competitor
Analysis
22
20
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When &
Where
Results
2014-2015
2015-
2014-2015
Increasing market
share, choice for
consumer, brand
positioning.
2015
2015-2016
2015 Q1
2015
Q1 2015
2014-
Works Cited
Coca Cola Company, 2014. [Online]
Available at: http://www.coca-colacompany.com/careers/student-zone
[Accessed 15 November 2014].
Farooq Tirmizi, Tribune, 2012. Tribune. [Online]
Available at: http://tribune.com.pk/story/493197/food-and-beverages-pakistan-among-pepsicos-top10-non-us-markets/
[Accessed 2014].
Khan, A. S., 2014. DAWN. [Online]
Available at: http://www.dawn.com/news/1092090
[Accessed 2014].
StreetAuthority, 2014. NASDAQ. [Online]
Available at: http://www.nasdaq.com/article/coke-vs-pepsi-by-the-numbers-cm337909
Wright, T., 2010. WSJ. [Online]
Available at: http://online.wsj.com/articles/SB10001424052748704720004575377190499667312
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