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COCA-COLA Beverages Pakistan Limited

Research and Analysis on Management of

COCA-COLA PAKISTAN

Submited to: Mr. Imran Akbar Saifi

Submitted by:

Hassan Nasser 104632-058

Hafiz Ghulam Jillani 104732-010

Moeen Alam 104732-011

Abdul Wahid Bhutta 104732-012

Umar Bin Abbas 104732-014

University of Management & Technology

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Acknowledgment
Firstly I am very much great full to my Allah Almighty and our Prophet Muhammad (P.B.U.H),
who made us to complete our work on given time and whose sayings always motivated us to
work hard to achieve our goals.

Then I will love to express our humble thanks and appreciation to our loveable Parents, who at each
and every moment prays for our success. We are also deeply thankful to our Teachers to have taught
us from childhood to still especially Mr. Imran Akbar Saifi, who taught us Dynamics of
Management and had given us his experiences and the golden rules of management so that we will
be able to cope with upcoming situations regarding management in our life.

Thank you all, without you this would have not been possible.

Our thanks to all those who have generously contributed their theoretical knowledge to this report.
Without their understanding and support, completion of this work would not have been possible.

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Executive Summary
Founded in 1886, the Coca-Cola Company is the world’s leading manufacturer, marketer, and
distributor of non-alcoholic beverage concentrates and syrups. Today, Coca-Cola has a portfolio
of more than 3,300+ beverages. Coca-Cola has 92,800 employees worldwide. Now today Coca-
Cola is serving 1.6billions people daily.

In Pakistan Coca-Cola started his business with the name of Coca-Cola Beverages Pakistan
Ltd. (CCBPL) manufactures and distributes beverages. The Coca-Cola Company began
operating in Pakistan in 1953; Coke, Fanta, Sprite, Diet coke, Pulpy Orange and kinely water 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 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. Today, products of the Coca Cola Company are consumed at the rate of more than one
billion drinks per day.

Every organization is made up of different departments, each of these departments help Coca
Cola achieve their objectives. As Coca Cola is a large multinational company, the amounts of
departments are huge. There are 6 functional departments within Coca Cola, these are:

The Coca Cola marketing department develops core strategies for company brands to ensure that
all communication is consistent in every market. With this cohesive effort, the Coca-Cola system
maximizes its resources for market leadership and profitable growth. The marketing departments
are responsible for marketing the products and advertising the products and promoting the
products. If all these departments perform their duty firmly then the objectives of The Coca-Cola
Company will meets.

The finance department of the Coca Cola Company is responsible for financial record keeping.
The Coca-Cola Company finance department is also responsible for making budget of the
company and for each department like marketing department or research and development
department.

The packaging department of Coca-Cola Company is responsible for the packaging of the
products. Bringing new products package is their responsibility. The sales department of the
Coca Cola Company is to coordinate the selling program. The Coca-Cola Company research
department has done a lot of research and recently they have launched many new products like
Diet coke with lemon, Fanta Tropical, Minute maids, Fanta raspberry, Fanta blue berry etc.

On global level Coca-Cola is the most popular brand and market leader controlling 60% of
market share. Coca-Cola is the company which provides high quality beverages and water in

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market. The strategy that Coca-Cola has is the growth strategy. As the market share of Coca-
Cola is less than their main competitor Pepsi.
The Coca-Cola Pakistan had their employees in good manners. The Coca-Cola Pakistan gives
high salaries and bonuses to its employees then other organization

Coca-Cola Pakistan gives fair promotion system towards its employees. After a certain time
company promote his employees. The employees in Coca-Cola are controlled on the basis of
rules and regulations.

The market analysis investigates both the internal and external business environment.
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 Cola’s products on the market
and the reception they receive from the consumers.

Customers are the 1stpriority of any organization so as for Coca-Cola. If Coca-Cola is satisfied by
the products their mind and need don’t change much about the product of the company

The direct and the only competitor of Coca-Cola in Pakistan is only PEPSI. There are no other
companies which are in competition with Coca-Cola.

The suppliers of Coca-Cola are highly professional and they will never do such things that will
influence the work of the company.

So Pakistan’s economic condition is not affecting Coca-Cola very much.

Coca-Cola is in different countries and they recognize the values of local culture. For example
Coca-Cola is giving aid to earthquake in NWFP

Today as Coca-Cola is leading in its food products globally. Strategy of Coca-Cola is neither
differentiation. Because the price of Coca-Cola brands are relation high then the others brands
expect Pepsi.
Coca-Cola doesn’t lie in differentiation strategy because they don’t offer new brands regularly.
The strategy of coca cola in Pakistan is also concentration growth strategy. The technology of
Coca-Cola Company is routine. The work specialization in Coca-Cola is high.
Departmentalization in Coca-Cola is high. Centralization is in Coca-Cola. There is clear chain of
command in coca cola. Span of control in coca cola is narrow. There is high formalization in
coca cola. The culture that exists in coca cola is Bureaucratic culture. The management style of
coca cola is bureaucratic and to some extent participative. In coca cola managers deals
employees according to rules and regulations. All over world there are two soft drink giants,
Coke and Pepsi. Coca-Cola is not afraid of competing .it doesn’t fear losing its share to Mecca-
Cola or other new entrants. Cultural factors affect coke purchasing massively. Coke is one of the
main product lines of the Coca Cola Company. Coke Classic is the basic product through which
the Coca Cola Company got the fame. Fanta and Sprite are the products, which the Coca Cola

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Company can never think of stop producing. Coca-Cola has successfully addressed to the needs
of its health conscious overweight customers with the launch of diet Coke.

Coca Cola is an extremely recognizable company. Coca Cola is known very well

worldwide. Without a doubt, no beverage company compares to Coca Cola's social popularity
status. Overwhelming is the best word to describe Coca Cola's popularity. If you speak the words
“Coca Cola”, it would definitely be recognized all around the world. Coca Cola deals with
massive amounts of money all year. Many people/families are extremely loyal to Coca Cola. It
seems that some people would drink coke religiously like some people would drink water and
milk. With Coca Cola’s ability to sell their product all over the world, customers will continue to
buy what they know and what they like…Coca Cola products.

Coca Cola is a very successful company, with limited weaknesses. While many people have
good things to say, there are many individuals who are against Coca Cola as a company, and the
products in which they produce. With today’s constant shift to health products, some products
could possibly loose customers. Coca Cola has a few opportunities in its business. Coca Cola
also has the opportunity to advertise its less popular products. Coca Cola has bought out a
countless number of drink brands. Brand recognition is the significant factor affecting Cokes
competitive position. Coca Cola is known well throughout 90% of the world population today.
Despite the fact that Coca Cola dominates its market, it still has to deal with many threats. Even
though Coca Cola and Pepsi control nearly 40% of the entire beverage market, the changing
health-consciousness attitude of the market could have a serious effect on Coca Cola. Coca Cola
has to be careful with lawsuits. Again, some people may try to exploit the unhealthy side of Coca
Cola’s products and could threaten the status and success of sales. Coca Cola’s main competition
being Pepsi, sells a very similar drink. A company can identify their growth through the product-
market expansion grid.
Coca Cola in Pakistan is doing market penetration through the selling its products to the business
buyer, who are huge multinational organizations like McDonalds, Subway, Dunkin Donuts and
many more.
Market Development is exploring new markets for the products you are already selling. Many
flavors of Coca Cola are not being sold in Pakistan. Coca Cola can develop a new market if they
introduce those flavors in Pakistan. Coca Cola Company can do product development by
introducing the new flavors in Pakistan which are not sold anywhere in the world by the coke
company.

The company can manufacture products, which are not manufactured by it before.
Salesman of the Coca Cola Company positions their freezers and their products in eye-catching
positions. Loyal consumers are important for company’s success.
In Pakistan as compared to Pepsi, Coca-Cola has less number of consumers as Pepsi’s market
share in Pakistan is approximately 54% where as Coke market share is hovering about 36%,
hence the conclusion is that Coca-Cola must enhance factors such as relationship marketing,
innovation and technology especially in Pakistan to attain market leader position in this region as
well.

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So for this Coca-Cola Company should think about bringing a new product for example new diet
flavors, in the market to fulfill the local need.

Contents
Acknowledgment.........................................................................................................................................2
Executive Summary.....................................................................................................................................3
Introduction.................................................................................................................................................8
History of Coca-Cola.................................................................................................................................10
Vision Statement.......................................................................................................................................11
Mission Statement.....................................................................................................................................11
Our Mission...............................................................................................................................................11
Our Values................................................................................................................................................12
Objective...................................................................................................................................................12
Goal...........................................................................................................................................................12
Organizational Hierarchy of Coca-Cola....................................................................................................13
Strategic business units of Coca-Cola........................................................................................................14
MARKETING DEPARTMENT............................................................................................................14
FINANCE DEPARTMENT..................................................................................................................14
PACKAGING DEPARTMENT............................................................................................................15
SALES DEPARTMENT.......................................................................................................................15
RESEARCH AND DEVELOPMENT DEPARTMENT.......................................................................15
Product line of Coca-Cola.........................................................................................................................16
Market Position of Coca-Cola...................................................................................................................16
Strategies...................................................................................................................................................16
Leading......................................................................................................................................................17
High Salary Package..............................................................................................................................17
Fair Promotion system...........................................................................................................................17
Further Training....................................................................................................................................17
Controlling................................................................................................................................................18
Analysis.....................................................................................................................................................19
Situational Analysis...............................................................................................................................19
Market Analysis....................................................................................................................................19

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INTERNAL BUSINESS ENVIRONMENT......................................................................................19

EXTERNAL BUSINESS ENVIRONMENT.....................................................................................19
Environmental Analysis........................................................................................................................19
Specific Environment:.......................................................................................................................19
General Environment:........................................................................................................................20
Strategy Analysis...................................................................................................................................20
Technology Analysis.............................................................................................................................21
Structure Analysis.................................................................................................................................21
Work specialization:..........................................................................................................................21
Departmentalization:.........................................................................................................................21
Centralization:...................................................................................................................................21
Chain of command:...........................................................................................................................21
Span of control:.................................................................................................................................21
Formalization:...................................................................................................................................21
Culture Analysis....................................................................................................................................21
Management Style Analysis..................................................................................................................22
CUSTOMER ANALYSIS.....................................................................................................................22
COMPETITION........................................................................................................................................23
NEW ENTRANTS................................................................................................................................23
POLITICAL/LEGAL................................................................................................................................23
SOCIAL AND CULTURAL FACTORS..................................................................................................23
SOCIAL FACTORS..............................................................................................................................23
CULTURAL FACTORS.......................................................................................................................23
PERSONAL FACTORS............................................................................................................................24
PSYCHOLOGICAL FACTORS...............................................................................................................24
OTHER FACTORS...................................................................................................................................24
BCG (Boston Consulting Group) Approach..............................................................................................25
STAR.....................................................................................................................................................25
CASH COWS........................................................................................................................................25
QUESTION MARK..............................................................................................................................25
DOGS....................................................................................................................................................25
Competitive advantages.............................................................................................................................26

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BRAND NAME, SYMBOL, BOTTLE SHAPE....................................................................................26

DIET COKE..........................................................................................................................................26
SNATCHING AWAY CUSTOMERS......................................................................................................26
Cost:......................................................................................................................................................26
Quality:..................................................................................................................................................26
Innovation:............................................................................................................................................26
Speed:....................................................................................................................................................26
SWOT ANALYSIS...................................................................................................................................27
Internal..................................................................................................................................................27
Strengths............................................................................................................................................27
Weaknesses.......................................................................................................................................27
External.................................................................................................................................................27
Opportunities.....................................................................................................................................27
Threats...............................................................................................................................................27
Internal..................................................................................................................................................28
Strengths............................................................................................................................................28
Weaknesses.......................................................................................................................................28
External.................................................................................................................................................29
Opportunities.....................................................................................................................................29
Threats...............................................................................................................................................29
GROWTH STRATEGY............................................................................................................................30
MARKET PENETRATION..................................................................................................................30
MARKET DEVELOPMENT................................................................................................................30
Product Development............................................................................................................................30
DIVERSIFICATION STRATEGY.......................................................................................................30
PROMOTION STRATEGIES OF COCA COLA.....................................................................................31
GETTING SHELVES...........................................................................................................................31
EYE CATCHING POSITION...............................................................................................................31
SALE PROMOTION............................................................................................................................31
UTC SCHEME......................................................................................................................................31
EXPECTATIONS FOR THE COMING YEAR.......................................................................................32
CONCLUSION.........................................................................................................................................33

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RECOMMENDATIONS...........................................................................................................................33

Introduction
Founded in 1886, the Coca-Cola Company is the world’s leading manufacturer, marketer, and
distributor of non-alcoholic beverage concentrates and syrups. The company’s corporate
headquarters are in Atlanta, with local operations in over 200 countries around the world.

Although Coca-Cola was first created in the United States, it quickly became popular wherever it
went. Today, Coca-Cola has a portfolio of more than 3,300+ beverages. Coca-Cola has 92,800
employees worldwide. The real reason we are a truly global company is that our products meet
the varied taste preferences of consumers everywhere. Now today Coca-Cola serving 1.6billions
people daily.

Coca-Cola started his business with the name of Coca-Cola Beverages Pakistan Ltd. (CCBPL)
manufactures and distributes beverages. The company was incorporated in 1953 and is based in
Karachi, Pakistan.

The Coca-Cola Company began operating in Pakistan in 1953; 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 that’s a very creative idea to get the attention of
the customers.

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History of Coca-Cola
In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta,
Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his
backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank Robinson.

Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted
"Coca Cola" into the flowing letters which has become the famous logo of today. The soft drink
was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886.

About nine servings of the soft drink were sold each day. Sales for that first year added up to a
total of about $50. The funny thing was that it cost John Pemberton over $70 in expanses, so the
first year of sales were a loss.

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 Pemberton’s 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.

On April 23, 1985, the trade secret "New Coke" formula was released. Today, products of the
Coca Cola Company are consumed at the rate of more than one billion drinks per day.

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 1953

 Fanta introduced in Pakistan 1965
 Sprite was introduced 1972
 Diet Coke & Fanta Lemon 2001
 Kinley Mineral Water 2005
 Minute Made Pulpy Orange 2008

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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
The world is changing all around us. To continue to thrive as a business over the next ten years
and beyond, we must look ahead, understand the trends and forces that will shape our business in
the future and move swiftly to prepare for what's to come. We must get ready for tomorrow
today. That's what our 2020 Vision is all about. It creates a long-term destination for our
business and provides us with a "Roadmap" for winning together with our bottling partners.

Our Mission
Our mission declares our purpose as a company. It serves as the standard against which
we weigh our actions and decisions. It is the foundation of our Manifesto.

 To refresh the world in body, mind and spirit.

 To inspire moments of optimism through our brands and our actions.
 To create value and make a difference everywhere we engage.

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Our Values
Our values serve as a compass for our actions and describe how we behave in the world.

 Leadership: The courage to shape a better future

 Collaboration: Leverage collective genius
 Integrity: Be real
 Accountability: If it is to be, it's up to me
 Passion: Committed in heart and mind
 Diversity: As inclusive as our brands
 Quality: What we do, we do well

Objective
The company has sales based objective. Everything else (management plans, marketing plan,
advertising plan, production etc.) is derived from this objective.

Currently the company‘s objective is to

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

The company sets its objective keeping in view the past performance, Historical trends, current
market position, economic condition, macro environment and micro environment factors, social
values, market size and growth rate ,future expectations and predictions

Goal
All CCBPL plants setup their own goal to achieve the objective.

The company goal is

“To increase sales volume and gain market leadership in Pakistan.”

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Organizational Hierarchy of Coca-Cola

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Strategic business units of Coca-Cola

Every organization is made up of different departments, each of these departments help
Coca Cola achieve their objectives. As Coca Cola is a large multinational company, the amounts
of departments are huge. Each country has their own Head Office and departments. Coca Cola is
geographically split into five geographic operating segments, also known as strategic business
units (SBU's). The six SBU's are North America, Africa, Asia, Europe, Middle East and finally
Latin America. If all departments perform in the correct way then that will continue the success
of Coca Cola.
There are 6 functional departments within Coca Cola, these are:

 Marketing
 Finance
 Packaging
 Sales
 Research and development
 Administration

MARKETING DEPARTMENT
The Coca Cola marketing department develops core strategies for company brands to ensure
that all communication is consistent in every market. With this cohesive effort, the Coca-Cola
system maximizes its resources for market leadership and profitable growth. The marketing
departments are responsible for marketing the products and advertising the products and
promoting the products. If all these departments perform their duty firmly then the objectives
of The Coca-Cola Company will meets.

FINANCE DEPARTMENT
The finance department of the Coca Cola Company is responsible for financial record keeping.
This involves keeping records of money received and paid out. The financial records will be
used to produce the annual reports for the shareholders so that they can see the
company performance. The Finance department is also responsible for the management
accounts of the business like marketing etc. The Coca-Cola Company finance department is
also responsible for making budget of the company and for each department like marketing
department or research and development department. They will also be involved in the
planning process like taking over or any major decision.

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PACKAGING DEPARTMENT
The packaging department of Coca-Cola Company is responsible for the packaging of the
products. They have to make the packaging attractive so that that product meets the eyes of the
consumers. Bringing new products package is their responsibility. It works with the companies
bottling partners to produce an attractive combination.

SALES DEPARTMENT
The sales department of the Coca Cola Company is to coordinate the selling program. They
also have to make the distribution methods, etc. Also, decide how much to sell and how much
to store in the warehouse and to choose the transporting method which is the most cost
efficient and the quickest way.

RESEARCH AND DEVELOPMENT DEPARTMENT

This department has their budget given by the finance department and their responsibility is to
investigate new products. They work closely with marketing by looking at marketing research
findings. They have to bring new products in the market for the change because the consumer
cannot stick with the same old products. If necessary then they also have to improve the
quality of the products. The Coca-Cola Company research department has done a lot of
research and recently they have launched many new products like Diet coke with lemon, Fanta
Tropical, Minute maids, Fanta raspberry, Fanta blue berry etc.

ADMINISTRATION DEPARTMENT
This department is essential for keeping the business going. They act as a help support of the
company, it is not the central purpose the business but every business organization would need
this department. Most businesses rely on administration to be organized. They deal with
enquiries, give messages produce documents and give information to any customer. The
complaints that this department will get would be transferred to the research and development
department to make the product better or fix the problem that the consumer is having. These
departments are the most important department of The Coca-Cola Company because they
helps the company to meets the objectives of The Coca-Cola Company i.e. surviving, customer
satisfaction and make more profits. As I said that the help desk department satisfies the
customer by providing the information they needs and taking the complaints and passing to the
research and development departments who improves the products.

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Product line of Coca-Cola

Following are the products currently offered by coca-cola in Pakistan:

 Coca-Cola
 Sprite
 Fanta
 Fanta Lemon
 Kinley (Mineral Water)
 Minute Made Pulpy Orange

10%
Market Position of Coca-Cola
On global level Coca-Cola is the most
popular brand and market leader controlling
60% of market share. In Pakistan Coca Cola is
Pepsi
Coca Cola the market follower but still in a very strong
36% 54% Others and stable position holding 36% of the local
market with a growing and increasing market
share every year.

Strategies
Coca-Cola is the company which provides high quality beverages, water and soft in market. The
strategy that Coca-Cola has is the growth strategy. They want to increase their market share and
want to capture more customers. As the market share of Coca-Cola is less than their main
competitor Pepsi.
Coca-Cola is also famous for its attractive slogans some of which since the coke journey started
are as follows
 1886 Drink Coca-Cola
 1908 Get the genuine
 1923 Enjoy thirst
 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

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 2004 Flight Of Delight

 2005 Galay Delicious Taste
 2006 Thanda matlab coca cola
 2007 khaly pily jila coca cola
 2008 Aja jashan mena ly

Leading
The Coca-Cola Pakistan had their employees in good manners. The hierarchal structure is clearly
defined and everybody knows that who report to whom. Leaders are also aligned with the
common workers and give them passion of work.

For make their worker passionate they take steps

High Salary Package

The Coca-Cola Pakistan gives high salaries and bonuses to its employees then other organization

Fair Promotion system

Coca-Cola Pakistan gives fair promotion system towards its employees. After a certain time
company promote his employees.

Further Training
Coca-Cola also sends his employees in other countries for attending workshop or seminars for
improving their professional skills and give knowledge of international business.

Controlling
The employees in Coca-Cola are controlled on the basis of rules and regulations. Employees
often views controlling negatively. By its very nature, controlling often leads to management
expecting employee behavior to change. No matter how positive the changes may be for the
organization, employees may still view them negatively.

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Analysis
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 it’s business as
both the internal and external environment and their respective influences will be decisive traits
in relation to Coke’s success and survival in the soft drink industry.

INTERNAL BUSINESS ENVIRONMENT

The internal business environment and its influence is that which is to some extent within the
business’s control. The main attributes in the internal environment include efficiency in the
production process, through management skills and effective communication channels. To
effectively control and monitor the internal business environment, Coke must conduct continual
appraisals of the business’s operations and readily act upon any factors, which cause
inefficiencies in any phase of the production and consumer process.

EXTERNAL BUSINESS ENVIRONMENT

The External business environment and its influences are usually powerful forces that can affect
a whole industry and, in fact, a whole economy. Changes in the external environment will create
opportunities or threats in the market place Coca cola must be aware off. Fluctuations in the
economy, changing customer attitudes and values, and demographic patterns heavily influence
the success of Coca Cola’s products on the market and the reception they receive from the
consumers.

Environmental Analysis

Specific Environment:

Customer
Customers are the 1stpriority of any organization so as for Coca-Cola. If Coca-Cola is satisfied by
the products their mind and need don’t change mush about the product of the company

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Competitors
Competition is very important factor in the environment. The competitors play an important role
in the good or bad business of an organization. The direct and the only competitor of Coca-Cola
in Pakistan is only PEPSI. There are no other companies which are in competition with Coca-
Cola.

Suppliers
Suppliers are the forces in the environment which also play an important role in making
the environment of the company. Whole business activity depends upon suppliers. The suppliers
of Coca-Cola highly professional and they will never do such things that will influence the work
of the company.

General Environment:
Economic conditions
Pakistan is facing worst economic conditions, high inflation rates, and high fluctuation in stock
market. But coca cola is in fact dealing with necessity based product; it is also giving job security
to its employees. So Pakistan’s economic condition is not effecting Coca-Cola very much.
Socio-cultural conditions
Coca-Cola is in different countries and they recognize the values of local culture. Coca-Cola
always tries to build its image in its circuit they know how to change according to their social
demands. For example Coca-Cola is giving aid to earthquake in NWFP

Global conditions
Today as Coca-Cola is leading in its food products globally. So nestle has to understand the
people in every country according to their tastes and needs.

Strategy Analysis
Strategy of Coca-Cola is neither differentiation. The strategy coke lies in between low cost and
differentiation strategy; focus strategy. Because the price of Coca-Cola brands are relation high
then the others brands expect Pepsi.
So its strategy can’t be low cost in terms of differentiation strategy. Coca-Cola doesn’t lie in
differentiation strategy because they don’t offer new brands regularly. They offer new brands
once in decade. The strategy lie in between low cost and differentiation i.e. focus strategy. They
are different in their brand and image. There advantage is that they have a strong distribution
network then Pepsi. The strategy of coca cola in Pakistan is also is also concentration growth
strategy. Because its neither low cost nor differentiation. They want to acquire more market
share and want to lead the market.

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Technology Analysis
The technology of Coca-Cola Company is routine. There is no change in the technology. There
may be minimum change but not a big change. They are working in a routine.

Structure Analysis

Work specialization:
The work specialization in Coca-Cola is high. The work is assigned to the related and specialized
persons. There is no flexibility in work specialization.

Departmentalization:
Departmentalization in Coca-Cola is high. There are separate departments for each type of work.

Centralization:
Centralization is in Coca-Cola. Decisions are made at top level and are transferred to lower
management. Only the top management is involved in decision making.

Chain of command:
There is clear chain of command in coca cola. Each person is responsible to report to only one
person.

Span of control:
Span of control in coca cola is narrow. There are less no of employees under a manager that he
can control effectively and efficiently.

Formalization:
There is high formalization in coca cola. The employee’s behavior is guided by rules and
regulations.

So the structure of coca cola is mechanistic. The organization is tightly controlled.

Culture Analysis
Organizational culture is made up of the attitudes, values, beliefs and behaviors of its employees.
It reflects the demonstrated values and principles of the workplace, permeating everything an
organization does.

The culture that exists in coca cola is Bureaucratic culture. Bureaucratic culture is one which is
governed by rules and regulations. Every action of the employees is followed by rules and
regulations. Clan culture is primary focus on the involvement and participation of the
organization’s members.

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Because there are rules and regulations to follow but yet employees are appreciated to
participate.

Management Style Analysis

The management style of coca cola is bureaucratic and to some extent participative. Bureaucratic
style is followed by rules and regulations and participative style is one which supports
participation. In coca cola managers deals employees according to rules and regulations. Work is
to be done according to the given path. But to some extent participative style is also there
because employees are listened and are allowed to give their opinion in situations.

CUSTOMER ANALYSIS
The Coca Cola Company exists to satisfy the consumers’ needs. The Coca Cola Company has
over 400 brands of drinks designed to satisfy a very wide range of consumers. They are able to
provide drinks for many different target markets including, people of all ages, sexes, races, etc.
Coca-Cola products are able to sell to a diverse worldwide population and its success is
unmatched.  
In today’s society, people are looking to lead better, healthier lives, Coca Cola seeing this trend
has begun to produce, diet drinks that have the same great taste as their regular drinks while still
being low fat or low calorie drinks, such as diet coke, or coke zero.
Coca Cola products are purchased by all the different classes, but mainly by the middle and high-
class citizens, because they have more money to spend on luxury items. Coca Cola is a very
successful company; due to their success they are able to spend more money making their
factories work more efficiently.  They can do this by updating the equipment used to produce
their drinks.
Although people today are becoming more conscious about their environment, and the damage
that has been done in prior years. Many people make their purchase decisions partially based on a
company’s ethics, or social responsibility.  By contributing to stop pollution both within and
outside their factories, they will gain the trust and respect of the potential buyers, who care about
saving our environment. In gaining their trust and respect more people will be willing to purchase
their products, because the company stands for the same goals that their consumers are trying to
protect. The Coca Cola Company tries to be more environmentally aware.

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COMPETITION
All over world there are two soft drink giants, Coke and Pepsi. The competition between two
companies has always been neck to neck. Both these companies keep on trying to take lead in
terms of pricing, packaging, promoting and placing.

NEW ENTRANTS
Coca-Cola is not afraid of competing .it doesn’t fear losing its share to Mecca-Cola or other new
entrants. The company management believes that new entrants provoke healthy competition,
which will provide Coke with a challenge to hold on to its loyal customers. Besides it will take a
lot of effort on the part of new entrants like Mecca- Cola, Pak-cola to fully launch its product in
Pakistan and capture or even motivate people to switch on to their new product from 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.

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 consumer’s 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 Pakistan’s 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.

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PERSONAL FACTORS
Buyer’s decision is also influenced by personal characteristics such as buyer’s 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. Let’s say in earlier stage of life if a person’s 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 person’s buying behavior is further influenced by major psychological factors such as
motivation, perception, learning and self benefits.

Motivation is basically a drive that’s 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 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.

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BCG (Boston Consulting Group) Approach

Coke is one of the main product lines of the Coca
Cola Company. It is the one which is giving maximum
revenues to it by different products in this line. Here we
have classified some of its major products in the BCG
matrix on the basis of their fame and liking of the people.

STAR
Coke Classic is the basic product through which the Coca
Cola Company got the fame. It is one product, which
gives the maximum revenue from all over the world. It is
one flavor, which has the maximum consumers all over
the world. Coke has already worked a lot on it by
launching new flavors in it, but still it is a product they
can turn as famous as coke Classic.

CASH COWS
Fanta and Sprite are the products, which the Coca Cola Company can never think of stop
producing. It is the one which make the coke company a huge success; it was one product which
gives billions of dollars as revenue from world over. Whenever the company thinks of launching
its product in a country the first product they launch is coke classic as they know that if don’t
work here then nothing else can.

QUESTION MARK
Products that are still not a big hit as they haven’t consumed much time yet. Sprite 3G,
Sprite Zero, Diet Coke and Kinley are the examples of these question marks as the question
marks as they have not taken much time yet to get a hold of market & not even the large
percentage of the people have tasted it. So it needs time to be fully tested by the company & the
company needs to think whether it should continue the production or should divert to something
new.

DOGS
A product which is not been working good or a product which has been a source of loss.
Fanta is one product that was not a big hit. Even it’s not a long period which flavored Fanta has
consumed but still there are signs that it won’t be a success. So it’s better for the company to get
rid of it.

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Competitive advantages

BRAND NAME, SYMBOL, BOTTLE SHAPE.

Brand name, symbol and bottle shape are distinctive features of Coca-Cola which give it an edge
over its competitors. (Even without name people can easily identify Coke’s, fanta’s, and sprite’s
bottle from crowd.) They cannot be copied or imitated by others.

DIET COKE
Coca-Cola has successfully addressed to the needs of its health conscious overweight
customers with the launch of diet Coke. Its competitor has yet to come up with and counter diet
Coke properly.

SNATCHING AWAY CUSTOMERS

In the market Coke has been able to snatch large customers like Food Street, Pakistan
Railways, McDonald’s, as well as Sponsorship events (basant, Eid, concerts etc.) from Pepsi
mainly due to its superiority in the following areas.

Cost: It is very economical, justifies performance,

Quality: No quality compromise, get the best all over Pakistan at any cost.

Innovation: new ideas for billboards design, sponsorship, changing their slogans time to time,
according to the needs of the market.

Speed: On time delivery in all over the Pakistan.

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SWOT ANALYSIS
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats inside a company, project, or a business venture. It involves
identifying the internal and external factors that are favorable/ unfavorable for business to
succeed.

Internal

Strengths
 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 Cola’s brands
 Most unknown and rarely seen
 Result of low profile or non-existent advertising
 Health issues

External

Opportunities
 Many successful brands to pursue
 Advertise its less popular products
 Buy out competition.
 More Brand recognition

Threats
 Changing health-consciousness attitude
 Legal issues
 Health ministers
 Competition (Pepsi)

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Internal

Strengths
Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths that
are virtually incomparable. Coca Cola is known very well worldwide. It's branding is obvious
and easily recognized. Things like, logos and promos shown on t-shirts, hats, and collectible
memorabilia. Without a doubt, no beverage company compares to Coca Cola's social popularity
status. Some people buy coke, not only because of its taste, but because it is widely accepted and
they feel like they are part of something so big and unifying. At the other end of the spectrum,
certain individuals choose not to drink coke, based solely on rebelling from the world's idea that
coke is something of such great power. Overwhelming is the best word to describe Coca Cola's
popularity. It is scary to think that its popularity has been constantly growing over the years and
the possibility that there is still room to grow. If you speak the words “Coca Cola”, it would
definitely be recognized all around the world. Money is another thing that is strength of the
company. Coca Cola deals with massive amounts of money all year. Like all businesses, they
have had their ups and downs financially, but they have done well in this compartment and will
continue to do well and improve. The money they are earning is substantially better than most
beverage companies, and with that money, they put back into their own company so that they can
improve. Another strength that is very important to Coca Cola is customer loyalty. The 80/20
rule comes into effect in this situation. Eighty percent of their profit comes from 20% of their
loyal customers. Many people/families are extremely loyal to Coca Cola. It would not be rare to
constantly find bottles and cases of a product such as coke in a house. It seems that some people
would drink coke religiously like some people would drink water and milk. This is an
improbable feat. Customers will continually purchase these products, and will probably do so for
a very long time. If two parents were avid Coca Cola drinkers, this will be passed down do their
children as they grow loyal to the company. With Coca Cola’s ability to sell their product all
over the world, customers will continue to buy what they know and what they like…Coca Cola
products.

Weaknesses
Coca Cola is a very successful company, with limited weaknesses. However they do have a
variety of weaknesses that need to be addressed if they want to rise to the next level. Word of
mouth is probably a strength and weakness of every company. While many people have good
things to say, there are many individuals who are against Coca Cola as a company, and the
products in which they produce. Word of mouth unfortunately is something that is very hard to
control. While people will have their opinions, you have to try to sway their negative views. If
bad comments and views are put out to people who have yet to try Coca Cola products, then that
could produce a lost customer which shows why word of mouth is a weakness. Another aspect
that could be viewed as a weakness is the lack of popularity of many of Coca Cola’s drinks.
Many drinks that they produce are extremely popular such as Coke and Sprite but this company
has approximately 400 different drink types. Most are unknown and rarely seen for available
purchase. These drinks do not probably taste bad, but are rather a result of low profile or
nonexistent advertising. This is a weakness that needs to be looked at when analyzing their
company. Another weakness that has been greatly publicized is the health issues that surround
some of their products. It is known that a popular product like coke is not very beneficial to your

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body and your health. With today’s constant shift to health products, some products could
possibly loose customers. This new focus on weight and health could be a problem for the
product that is labelled detrimental to your health.

External

Opportunities
Coca Cola has a few opportunities in its business. It has many successful brands that it should
continue to exploit and pursue. Coca Cola also has the opportunity to advertise its less popular
products. With a large income it has the available money to put some of these other beverages on
the market. This could be very beneficial to the company if they could start selling these other
products to the same extent that they do with their main products. Another opportunity that we
have seen being put to use before is the ability for Coca Cola to buy out their competition. This
opportunity rarely presents itself in the world of business. However, with Coca Cola’s power and
success, such a task is not impossible. Coca Cola has bought out a countless number of drink
brands. An easy way to turn their profit into your profit is too buy out their company. Even
though this may cost a vast amount of money initially, in the long run, if all goes to plan, it
results in a large profit. Also, the company will no longer need to worry about this product being
part of the competition. Brand recognition is the significant factor affecting Cokes competitive
position. Coca Cola is known well throughout 90% of the world population today. Now Coca
Cola wants to get there brand name known even better and possibly get closer and closer to
100%. It is an opportunity that most companies will ever dream of, and would be a supreme
accomplishment. Coca Cola has an opportunity to continue to widen the gap between them and
their competitors.

Threats
Despite the fact that Coca Cola dominates its market, it still has to deal with many threats. Even
though Coca Cola and Pepsi control nearly 40% of the entire beverage market, the changing
health-consciousness attitude of the market could have a serious effect on Coca Cola. This
definitely needs to be viewed as a dominant threat. In today’s world, people are constantly trying
to change their eating and drinking habits. This could directly affect the sale of Coca Cola’s
products. Another possible issue is the legal side of things. There are always issues with a
company of such supreme wealth and popularity. Somebody is always trying to find fault with
the best and take them down. Coca Cola has to be careful with lawsuits. Health minister could
also be looked at as a threat. Again, some people may try to exploit the unhealthy side of Coca
Cola’s products and could threaten the status and success of sales. Other threats are of course the
competition. Coca Cola’s main competition being Pepsi, sells a very similar drink. Coca Cola
needs to be careful that Pepsi does not grow to be a more successful drink. Other product such as
juices, coffee, and milk are threats. These other beverage options could take precedent in some
people’s minds over Coca Cola’s beverages and this could threaten the potential success it
presents again.  

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GROWTH STRATEGY
Growth is the main objective of every organization. They look forward for expanding & growing
in different markets & making a variety in their product line. A company can identify their
growth through the product-market expansion grid.

MARKET PENETRATION
Market Penetration is the strategy, which every company has to opt when it reaches a maximum
height of growth. Coca Cola in Pakistan is doing market penetration through the selling its
products to the business buyer, who are huge multinational organizations like McDonalds,
Subway, Dunkin Donuts and many more. They are also keeping the local market in focus. Fri
Chiks, AFC, PFC are examples of the buyers in the local market. They are selling the Coca Cola
as the only beverage in their restaurants.

MARKET DEVELOPMENT
Market Development is exploring new markets for the products you are already selling. Many
flavors of Coca Cola are not being sold in Pakistan. Coca Cola can develop a new market if they
introduce those flavors in Pakistan. Many people in Pakistan want a change in the beverage
industry, as they are having the same flavors from many years.

Product Development
A company takes a risk when it does Product Development, there is a chance that it loses its
customers or there will be a crowd of people demanding their product. Coca Cola Company can
do product development by introducing the new flavors in Pakistan which are not sold anywhere
in the world by the coke company. The company has to put large effort in that, as it has to
conduct all market research & feasibilities for it. But there is also an opportunity for them as they
know the market of Pakistan, that what the people here can afford & what taste they want.

DIVERSIFICATION STRATEGY
Diversification strategy is one which every company really wants to practice. There are lots of
chances of growth but the risk factor is also there. The company can manufacture products,
which are not manufactured by it before. Coca Cola is only dealing in beverages but it can also
manufacture its own snacks item as the company name is known almost all over the world. So it
can cash the name by producing the items, which are eaten with the beverages.

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PROMOTION STRATEGIES OF COCA COLA

GETTING SHELVES
They get or purchase shelves in big departmental stores and display their products in those
shelves in that style which show their product clearer and more attractive for the consumers.

EYE CATCHING POSITION

Salesman 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 PROMOTION
Company also do sponsorships with different college and school’s cafes and sponsors their
sports events and other extra curriculum activities for getting market share.

UTC SCHEME
UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very
handy prizes in it. Like once they offer bicycles, caps, TV sets, cash prizes etc. This scheme is
very much popular among children.

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EXPECTATIONS FOR THE COMING YEAR

Everything starts from the attitude of consumer’s behavior. And the basic key to attract the
consumers is to throw the “money away”.
And positive feeling 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 $ 1 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 like:

 Loyal consumers are important for company’s 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.

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CONCLUSION
We have concluded from this detailed report that despite the fact Coca Cola currently occupies
the market leadership position overall but it does not guarantee that the company will sustain its
position in the future as well. In Pakistan as compared to Pepsi, Coca-Cola has less number of
consumers as Pepsi’s market share in Pakistan is approximately 54% where as Coke market
share is hovering about 36%, hence the conclusion is that Coca-Cola must enhance factors such
as relationship marketing, innovation and technology especially in Pakistan to attain market
leader position in this region as well. The culture and management in Coca- Cola is totally
bureaucratic.

RECOMMENDATIONS
After completing our project we have come up with following recommendations for the Coca
Cola Company, which are following.

 Currently in Pakistan there are only two flavor of Coke available, company can extend
their portfolio by introducing new flavors.
 According to the survey, conducted by the international firm Pakistani people like less
sweet cola drink. So for this Coca-Cola Company should think about bringing a new
product for example new diet flavors, in the market to fulfill the local need.
 Marketing team should try to increase the availability of Coke in rural areas.
 Coca Cola Company should think about producing Coke Can locally as well because
currently coke Cans are only smuggled from abroad and sold at high price. Company can
capitalize on this factor.

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References

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c=94566&p=irol-financials

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colacompany.com/careers/how_we_operate.html

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colacompany.com/contactus/myths_rumors/middle_east_vegetarians.html

Retrieved on January 2, 2010 from http://www.scribd.com/doc/18320689/Project-on-Coca-Cola-

Pakistan

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colacompany.com/investors/annual_other_reports.html

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in-Pakistan

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http://dept.sfcollege.edu/business/susan.crosson/Spring2010/Annual

%20Reports/BDA.COCACOLA.pdf

Dynamics of Management