Project report of Coca cola 88348890 PDF

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Submitted under the partial fulfilment of the requirement for MASTER OF BUSINESS ADMINISTRATION of Uttar Pradesh Technical University, Lucknow

Submitted To:-

Submitted By:-

Mr. Aftab Ahmad (HOD)

Tarique Jamal MBA 3rd sem. 0907270164

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www.GamesWala.com IIMT Management College, Meerut (U.P.) India

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DECLERATION I Tarique Jamal hereby declare that this project report entitled Marketing Strategies Analysis has been completed based on actual study carried out by me during my internship program at Hindustan Coca-Cola Beveragws Private Limited, Patna.

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www.GamesWala.com I am presenting an authentic report of my work to IIMT Management college,Meerut carried out at Hindustan Coca-Cola Beveragws Private Limited, Patna for the partial fulfilment of the requirement of the Master Of Business Administraion degree programme of Uttar Pradesh Technical University, Lucknow.

This research report is original and information, data and fact furnished their in are actual based on study carried out by me.

(Tarique Jamal)

CERTI FI CATEOFORI GI NALI TY This is certify that the Vocational Training Report entitled “Marketing Strategies Analysis”submitted to Hindustan Coca-Cola Beveragws Private Limited,Patna in partial fulfillment of requirement for the award of the degree of Master of Business Administration (MBA), original work carried out by Mr. Tarique Jamaland UPTU Roll No.0907270164 Under my guidance. This vocational report done on (training period June 14, 2010 to Aug 12, 2010) the topic hasn’t been 3 www.GamesWala.com

www.GamesWala.com submitted for any other examination & doesn’t form part of any other course undergone by the candidate. ……………………. Signature of Guide Date - / /

……………………….. Signature of Std. Date - / /

Name & Designation of Guide

Name & Roll no of Std.

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…………………………….. Signature of Training Incharge V.K.Srivastav

ACKNOWLEDGEMENT

After completing my IInd semester curriculum. I went for summer training for 8 weeks duration and it bears inspirit of several person. I have achieve this training in one of the most esteemed organisation of the country Hindustan Coca-Cola Beveragws Private Limited, Patna for their kind permission to undertaken 4 www.GamesWala.com

www.GamesWala.com its study I am grateful to respected Mr. Vijay Kumar Singh (HR Executive,in Coca-Cola Beveragws Private Limited). For there moral support and encouragement throughout my project work. This list will go incomplete without the special reference of the contribution and whole hearted support of manager’s and all other staff and department, which truly reflect their deep insight into the project and the professional touch which is their benchmark. I would like to thanks Mr. Aftab Ahmad(IIMT Management college,Meerut), who helped me a lot during this project. My gratitude will not be completed without thanking my beloved parents who have been a constant source of aspiration & blessing in my pursuit for studies.

PREFACE

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www.GamesWala.com I did my summer training in Hindustan Coca-Cola Beveragws Private Limited, Patna.

I

completed my summer training for 8 weeks. I got training in the study of Marketing Strategies Analysis, Financial department is also being considered.

Hence I am presenting the training report Marketing Strategies Analysis. All the mistakes and problems had been carefully removed with the help of all the managers.

So I am thankful to all the managers of Hindustan Coca-Cola Beverages Private Limited, Patna.

Tarique Jamal MBA (IIIrd Semester)

TABLE OF CONTENTS

CONTENTS 6 www.GamesWala.com

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1. Mission statement 2. Introduction. 3. Coca Cola. a. Coca Cola International. b. History. 4. Management. 5. EXTERNAL MARKETING ENVIRONMENT 6. Market share. 7. Financial report. 8. Dividends and Cash Plan. 9. Products. 10. Market mix of Coca-Cola 11. Strategic planning. 12. Bottlers owned by Coca cola 13. Coca Cola Pakistan. 14. Major Competitors a. Pepsi b. History. c. Financial assets.  Market share.  Financial report.  Products.  Methodology 15. Some basic information regarding marketing of coke a. Target market: b. Major segments: c. Factors effecting sales: d. Major competitors: e. Strategies of quality: f. Threats from competitors: g. Targets that would like to attain: h. Expanding target market i. Threats and opportunities for price: j. Strategies of getting goals i.e. “high profits”: k. Marketing strategy: l. Expectations for the coming year: m. How coke determine the yearly budget: 16. Marketing strategies 17. Pest analysis

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The Mission Statement of the Coca Cola Company Our mission statement is to maximize shareowner value over time. In order to achieve this mission, we must create value for all the constraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. Consumer demand drives everything we do. 2. Brand Coca Cola is the core of our business 3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day. 4. We will be the best marketers in the world. 5. We will think and act locally. 6. We will lead as a model corporate citizen. The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and create economic value added by improving economic profit. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to 8 www.GamesWala.com

www.GamesWala.com consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. There are nearly 6 million people in the world who are potential consumers of our company’s product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time.

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COCA COLA INTERNATIONAL HISTORY: Coca-Cola Enterprises, established in 1886, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton , began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen,

Benjamin F.

Thomas

secured

and

Joseph

B.

Whitehead ,

the

exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, 10 www.GamesWala.com

www.GamesWala.com The Coca-Cola Company merged some of its companyowned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form CocaCola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986. In December 1991, a merger between Coca-Cola Enterprises

and

the

Johnston

Coca-Cola

Bottling

Group, Inc. (Johnston) created a larger, stronger Company,

again

helping

accelerate

bottler

consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion The Coca-Cola Company is the world’s largest beverage 11 www.GamesWala.com

www.GamesWala.com company. They operate in more than 200 countries & markets more than 2800 beverage products. Headquartered at Atlanta, Georgia, they employ approximately 90500 employees all over the world. It is often referred to simply as Coke or (in European and American countries) as Cola or Pop.

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MANAGEMENT: The hierarchy of Coca Cola Company is as follows. 13 www.GamesWala.com

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Chairman Board of governors

Vice Chairman and chief operating officer

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

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MARKET SHARE: SHARE Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market.

GLOBAL MARKET SHARE: The following table can show the worldwide operating segments. (Table) Unit case growth

Nonalcoholic drink 2002

All commercial Beverages

10 year compound annual growth

5-year compound annual growth

Compan y

Industry

Compan y

Industry

Compan y

Industry

Company share

Compan y share

Compan y per capita Income

6%

5%

5%

5%

4%

4%

18%

9%

70

2001 annual growth

2002

This shows that the market of the company is geographically vast and it is controlling it with great success. In 2002, the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage 15 www.GamesWala.com

www.GamesWala.com category measured by volume, that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success. Thus they are increasing their market day by day. The operation income earned by Coca Cola Company can be illustrated by the following pie chart. (Figure)

This strategy has worked a lot and it has helped them to become the World’s leading Soft Drink Company. The global unit sale of the Coca Cola Company is increasing from the last ten years. The data of the global unit sale of the Coca Cola Company can be represented by following chart.

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www.GamesWala.com (Figure)

So there is positive growth in the market of the Coca Cola Company. There is a worldwide volume increase by 4% with strong international growth of 5%. This is only due to the innovative marketing programmers, which has deepened the relationship of the customers and Coca Cola. The financial health and success of their bottling partners is a critical component of The Coca-Cola Company's ability to build and deliver leading brands.

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In 2002, the company had worked with their bottlers to turn good intentions into reality by improving the system economics. The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. The main reason behind this relationship is to continue realizing shared opportunities for growth, with closer coordination of operations including customer relationships, logistics and production.

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EXTERNAL MARKETING ENVIRONMENT (PEST ANALYSIS) Political Analysis for Coca-Cola Non-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of regulations. There are potential fines set by the government on companies if they do not meet a standard of laws. The following are some of the factors that could cause CocaCola company's actual results to differ materially from the expected results described in their underlying company's forward statement: Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions.  Changes in the non-alcoholic business environment. These include, without limitation, competitive product and pricing pressures and their ability to gain or 19 www.GamesWala.com

www.GamesWala.com maintain share of sales in the global market as a result of action by competitors.  Political conditions, especially in international markets, including civil unrest, government changes and restrictions on the ability to transfer capital across borders. Political structure and legal considerations also have impinged on Coco-Cola Company’s strategies. Governments of some Arab nations boycotted Coca-Cola’s products due to a political dispute and discontented with the company for maintaining distributors in Israel.

Economical Analysis Being flexible and willing to change to satisfy consumers’ needs, has enabled Coca-Cola to exploit the economies of scale that was gained by its global marketing and at the same time making its products appeal to local taste, which these have earned the company an enormous profits 20 www.GamesWala.com

www.GamesWala.com quarterly. As Coca-Cola has expanded over the decades or even nearly a century, the company has benefited from the various cultural insights and perspectives of the societies in which business is done. No doubt of the remarkable experience it has, it is still very committed to local markets, to paying attention to what people from different cultures and backgrounds like to drink, and where and how they like to drink it, to remain competitive and to develop more new drinks to satisfy its markets.

Now, the estimated brand equity of Coca-Cola is $84billion, market share of more than 50 percent in beverage industry globally and about 70 percent of its income comes from countries outside United States. Every 10 seconds, 126,000 people in the whole world, choose to reach out for one of The Coca-Cola Company brands, and it is the company’s mission to make that choice exciting and satisfying, every single time. Previously the U.S. economy was strong and nearly every part of it was growing and doing well. However, things changed. Before the attacks on September 11, 2001, the United States was starting to see the economy recover slightly and it is only just recently that they achieved the economic levels. Consumers are now resuming their normal habits, going to the malls, car shopping, and eating out at 21 www.GamesWala.com

www.GamesWala.com restaurants. However, many are still handling their money cautiously. They believe that with lower inflation still to come, consumers will recover their confidence over the next year. As researching for new products would cost less the CocaCola Company will sell its products for less and the people will spend as they would get cheap products from Coca-cola.

Social Analysis for Coca-Cola Foreign environment factors have influenced the CocaCola’s strategies in international marketing. Culture has a tremendous effect on people’s preferences and perception. Language is one of the aspects of culture that marketers must take care of, in term of translating product name, slogans and promotional messages so as not to convey the wrong meaning. Coca-Cola did not look much into this aspect when entering into the markets of countries like China and Taiwan as the literal translation of Coca-Cola in Chinese characters mean, “bite the wax tadpole”. Changes are necessary in international marketing for consumer’s products, as it is important that the products suit one’s taste, preferences and fulfill one’s needs. Coca-Cola has continued changing, improving and developing new drinks to appeal to local tastes. 22 www.GamesWala.com

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After discovering that Coke did not appeal as much to Japanese consumers, Coca-Cola developed over 30 new drinks for the Japanese market, which inclusive of Asian tea, English tea, coffee and fermented-milk drink. In China, Coca-Cola has also begun the similar strategy of introducing beverages developed for the taste buds of local market. It launched a fruit juice drink called Tian Yu Di (Heaven and Earth) specifically for the Chinese market with planning of introducing the market with a Chinese iced tea and soy milk drink. Many U.S. citizens are practicing healthier lifestyles. This has affected the non-alcoholic beverage industry in that many are switching to bottled water and diet colas instead of beer and other alcoholic beverages. Also, time management has increased and is at approximately 43% of all households. The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life. Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. There is a large population of the age range known as the baby boomers. Since many are reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages. 23 www.GamesWala.com

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Technological Analysis for Coca-Cola Some factors that cause company's actual results to differ materially from the expected results are as follows:  The effectiveness of company's advertising, marketing and promotional programs. The new technology of internet and television which use special effects for advertising through media. They make some products look attractive. This helps in selling of the products. This advertising makes the product attractive. This technology is being used in media to sell their products. 24 www.G...