Swot Analysis and PESTLE of Coca Cola PDF

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Swot Analysis and PESTLE of Coca Cola in Pakistan...

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Part A SWOT Environmental research is a vital aspect of the preparation phase for strategic management. Many are suggesting the SWOT concept (Strengths, Limitations, Opportunities, Threats) as an empirical method that can be used to classify important variables both from internal and external environment of the company (Wright, & Pickton,1998). SWOT analyzes were praised for their usability and practicality. Usually, business forecasting is defined as something that should be reasonable, careful, systematic and successive. It’s not the case, in reality. It is an activity that is best defined as a little more casual, sporadic, gradual and unreasonable (Taylor, 1982). Now SWOT analyses will be applied to the chosen brand that is Coca Cola Pakistan. This Coca Cola Pakistan SWOT review shows how the corporation running one of the most famous brands ever used its strategic advantages to become the second-largest producer of beverages in Pakistan and also in the world. Strength: Coca Cola is well renowned brand with incredible identity. It's a brand that not only in Pakistan but millions around the world call home. At least one of their items will come across you in over 200 countries. In Pakistan, they have coke, variants of coke, sprite, variants of sprite, Fanta and Dasani water. They have strong customer recall and loyalty due to their well-known name around the world. Coca Cola's has a unique and refreshing taste that make it difficult to replace and easy to recognize it and get addicted to it. As they launched new campaign of placing name of customers on their bottles, they saw an increase in sales. Tempting consumers to get the Coca Cola product, taking photos with the bottles and uploading the images on social media sites. Economies of scale are another strength. Scale economies let the company to expand its fixed cost over lot of brands and billions of servings, making every drink as low priced as possible.

Another strength is the wide audience range. The distribution network of the Coca-Cola corporation allows the chain to serve more customers than any of its rivals might meet. They have the potential to make substantial strategic funds to boost its marketplace share in the Pakistan’s market. There strategic management and leadership is known all around the world. The brand maintains a close relationship with strategic partners (Timmer, 2015). Weaknesses: The biggest competition to Coca Cola is Pepsi. But like Pepsi Coca Cola don’t have branched away from Soda-only business model yet, they still have to create a meal or snack. So, in this world of competition, this reason put them one step back from the Pepsi as Pepsi has snack products like Lays chips and other food products under their brand name. Another weakness that came to the surface only a few years back is that people got concerned about being overweight or getting a diabetes. Carbonated drinks can cause both of these issues if consumed too much. Coca Cola, one of the biggest names in the producer of carbonated beverages, can lead to epidemic of being overweight or in order words obesity. They haven’t been able to find a safer option yet. Another weakness is that Coca Cola Pakistan doesn’t produce bottles in the Pakistan as they do not have its own production system for bottles as it does on the foreign market. Hence the dependence on the strategic allies is high. There were few times when Coca Cola products weren’t on available in the market, which was due to Mehran Bottles inability to provide Coca Cola Pakistan with bottle supplies. The Coca Cola’s supply chain management is not as effective as Pepsi Co's supply chain in Pakistan (Ismail, Hussain, & Shah, 2013). Opportunities: Coca Cola Pakistan can produce new products and diversify their products from the beverage e industry. They have brand recognition, manufacturing, assessment and customers to back them up. Untouched Niche product areas that aren’t touched by competitors that is Pepsi can be found for manufacturing of new goods, mainly in health-related food products. So, they can branch out of the beverage category.

In most of the big food chains of Pakistan Pepsi and its products are served. As Pakistani’s standard of living is rapidly improving, you see full restaurants and café, people dine out in restaurants on daily basis and seen at other places to spend their free time. So, in Pakistan they have excellent chance to create alliance strategically with the restaurants and cafes where calls for drinks is high. So, there product’s presence can be seen at as many places as possible. Threat The main challenge that Coca Cola Pakistan face are that Pakistani local producers are intent on joining the marketplace and gaining market segment. Local brands like Gourmet are being launched in market of Pakistan which can be seen as direct competitors of Coca Cola Pakistan. It can also be seen that people of Pakistan are also becoming health conscious so consumption of sodas will decrease over time. Soft drink promotions are rising in the international market, which could theoretically affect the company's operations. Coca Cola invested it time resources and money on the soda industry to become the giant it is. Yet they neglect expanding into other food-related branches, allowing Pepsi to easily dominate certain other markets. PESTLE: The PESTLE analysis that is also known as the PEST analysis, is a term in the principle of marketing. Companies use this analysis to observe the world environment in which they intend to launch a new product or business (Aithal, 2016). PESTLE words stand for Political, Economic, Social, Technological, Legal and Environmental factors. This analysis shows a full view of the entire environment from all angles that one should evaluate or keep track of when starting a new business or even for current business if wanted to launch new products/services. Coca Cola is a big name of soft drinks industry that has consumer all around the world. To deliver their customers with their drinks, they meet strict rules, comply with consumer demands and use the best available technology.

Political Factor: By Analyzing Pakistan's political situation, it is obvious that political state of Pakistan is not stable. In various parts of the country strikes and other political events take place that a negative effect on the company's revenue and profitability. For example; Coca Cola and Pepsi are sold to every institute and companies i.e. colleges, universities, cafes, restaurant and other locations. Should any area of Pakistan be closed for political reasons, the company's profits would be negatively impacted. It’s a consumer law that individuals working in the company must know the ingredients of the product they are selling. Many chemicals like aspartame, ascorbic acid, etc are commonly used in carbonated drinks despite the fact that carbonated drinks are made of carbonated water and sugar. Coca Cola Pakistan imports its special composition to add in drinks that they don’t reveal to anyone so at this point they are vulnerable to laws. Economic Factor: Products of Coca Cola are distributed in hundreds of countries all over the world. Every country has its own different cultures, different traditions, different preferences, different taste and different needs. Coca Cola has enhanced and adapted its way of producing its beverages by introducing new flavors to match every country’s taste. Pakistan's economic conditions in recent years aren't very pleasing. However, as Coca Cola's products are not highly priced, demand is very steady and stable, so Coca Cola's sale is not much affected to a significant level by the economic factor. Buying power parity of Pakistan has diminished in recent times, but Coca Cola Pakistan sales aren’t substantially affected by these economic aspects due to its low prices. Coca Cola Pakistan claims to create more jobs. They act very responsible brand by paying their taxes, paying suppliers on time, hiring local people and engaging in welfare projects. Social Factor: External Social factors have a high influence on a brand's income and profitability. For example; due to easily accessible information in this age of internet people have become more health

conscious that has shifted many customers of Coca Cola customers to move from carbonated soda drinks to healthy juices and smoothies. Also, many people in Pakistan also prefer to buy local products and services as opposed to foreign brands. So therefore, local brand such as Gourmet was effective in some parts of the country especially in internal Punjab. Coke is a customer-focused organization, always taking action for its customers ' welfare. It also supports the vulnerable and the awareness that seeks people with fewer resources by supplying them with books, scholarships and job opportunities. It has introduced a program in Gujranwala and Rahim Yar Khan where children are given basic education. Technological Factor: It is a known fact that Coca Cola is one of the biggest brands of the world. It has the highest level of technology required to produce high quality goods, as well as providing after-sales services. With the increasing technology, Coca Cola has been able to adapt successfully to both the local and foreign markets. Pakistan is rapidly becoming technology and internet savvy; the majority has access to the internet and social media platforms now. Coca Cola utilized digital media platforms to connect with the public. When their highly engaging campaign was launched that was placing their customers names on their bottles, consumers took picture with the bottles that have their name on it. Such images trended on digital media platforms such as Twitter, offering social evidence and promoting sales of Coca Cola. Legal Factor: Coca Cola has all the legal right to every product produced using a proprietary process. The only problem that they can face is also mentioned above that they don’t relieve their special composition to their workers which is against consumer law. Environmental Factor: Quality of water has an influence on Coca Cola. Water is main product that is required production of soft drinks. If anything happens, like climate change then the organization can be under threat. Pakistan is facing a shortage of water, especially during the summer season. It also

has an impact on its competitor, Pepsi. But because Coca Cola's products are chiefly soft drinks, the brand will suffer more losses with a water availability problem. Buying Persona A buyer persona is a evaluation that is based on research that portray a target customer. Buyer personas profile tells who are your potential clients, the problem they face, their daily routines and how they make decisions. Different buyers have different behavior and their behavior is crucial for a company, for example, if consumer of your product ask other people opinions before making a purchase, each individual involved in that choice is a different individual. They will have different valuation criteria for your product, and you will need different approaches to meet those demands. Buying the persona model for Coca Cola Pakistan: Who Coca Cola occupies a big chunk of market space all around the world and the same is the case in Pakistan’s Market. Coca Cola has its customers in all age groups. Pakistan has the summer season for more than 6 months, so everybody is looking for something to drink when they are on the go, in their offices, at their workplaces or even in their homes to satisfy their thirst with something tasty, cold and budget-friendly. What As mentioned above its mostly summer season in Pakistan so People buying Coca Cola products in Pakistan's primary goal is to satisfy their thirst anywhere at an affordable price and the secondary goal would be the good refreshing taste. Where Potential customers of Coca Cola in Pakistan are online on all social media platforms like the rest of the world due to rapid technological advancement from the last few years in Pakistan and when not, online they are mostly at their workplaces or in their educational institutions.

Content People of Pakistan are more emotional than practical. For Pakistanis, their family and their religion are above everything else. So, therefore, they are attracted to those campaigns, advertisement or posts which triggers these two points. Also, they are big fans of cricket everything related to cricket automatically gets their attention. Channels The trend of using Instagram and Facebook is more than any other social media platform in Pakistan. Everyone is seen on their mobile screen logged in in one of these apps. Also, people watch Pakistani television series on their TVs on a daily basis. Trust Touchpoints Making relevant posts on Facebook, Instagram and advertisement for TVs related to the current situation of the country can make your customers trust you more. For example, a few weeks back PSL cricket tournament was going on in Pakistan, Coca Cola Pakistan started posting content with the high scoring player in the post or started engaging with its audience by posting content like who’s going to win the match today? on their Instagram, every other day and Pakistanis being crazy cricket fans start engaging underneath the post or started sharing posts. Pain Touchpoints Coca-Cola around the world has different tastes according to the area they are selling their products in. Coca-Cola products that are sold in Pakistan have high sugar content than the rest of the world because Pakistanis like it that way. So, if they reduce the sugar content people will start objecting. Customer, Consumer or Influencer In the case of Coca Cola, both customers and consumers would be the same person. A person buys a Coke gets a satisfying feeling and recommends it to his friends and family. “They Say” I don’t need to try another cola when I have Coca-Cola.

“We Say” According to the current situation of coronavirus around the world, Coca Cola Pakistan can say “The drink you love we deliver with safety and care” Keywords Keywords that buyer persona can relate to Coca-Cola brand are soft drinks, diet coke, caffeine, energy drink, cola coke. The Buying Journey The customer journey is the full amount of experiences that consumers encounter as they connect with your business and brand. The customer journey records the entire experience of being a customer, rather than looking at only a portion of purchase or interaction. The buying journey is a diagram that illustrate the customer’s step that he goes through while engaging with the brand whether it’s a brand, a product, online experience, retail experience or any combination (Richardson,2010). Understanding customer touchpoints and channels: The first level of mapping the customer buying journey is to understand the customer's touchpoints and channels. Coca Cola has its selling channels widespread throughout Pakistan. A consumer can buy a product of Coca Cola from any store big or small near their houses. They are also available at the cafeterias of offices, educational institutes and even in hospitals. Coca Cola Pakistan has its own website through which a customer can order Coca Cola products at their doorstep by just placing an online order on the website. Facebook and Instagram of Coca Cola Pakistan also link back to their website if the customer wants to order from there. Buyer Journey Activities Then comes the step where a customer does activity in order to get a product. In the case of Coca Cola, a customer will get a feeling of thirst he will be well aware of the Coca Cola products because of their excellent marketing strategies. Then he will discover Coke in a store near wherever he is. He will buy it, drink it and because of refreshing taste and the low price he will develop a bond with the product and in the end will become a loyal customer of the brand.

Mapping the Journey: Mapping the journey of your customer is recommended by various business scholars. BD Temkin recommend every business to map their customer buying journey in order to better understand their customer psyche and needs (Temkin, 2010). Now mapping the customer journey: Customer

Awareness

Discover

Purchase

Considering

Order online

Use

Bond

journey map website

the option of ordering Store TV

Saw

advertisement

advertisement

online Found

at Purchased

stores

from store

s Social media

Post

good

reviews Web forums Word

of

Express

mouth

positive views

Home

Drink

PART B SMART: SMART stands for a collection of goals that are Specific, Measurable, Accessible at an appropriate cost, realistic and Time-bound. A SMART strategy for Coca Cola Pakistan

Specific: To gain at least 50% market share of the soft drink industry in Pakistan in a year because Coca Cola’s market share that is 35% in Pakistan is less than Pepsi that is 65%. Measurable: Check for outcomes of your defined objective that should be atleast 5% at the end of three months. Start advertising on all platforms. Attainable: Coca Cola has a low market share in Pakistan but in the world, it occupies 80% this shows that they have resources to achieve the goal, they just need a good marketing strategy. Realistic: The objective define is realistic because resources are available, people have awareness of the brand. So the brand just needs a strategy. Timely: Goal should be achieved within a year. Strategy Statement The strategy statement is made up of objective, scope and competitive advantage. Objective: The Objective for Coca Cola Pakistan is to get a 50% market share of the soft drink industry in a year and give Pepsi a tough competition. Scope: Coca Cola Pakistan will emphasize expanding its business branch outside the beverage industry and will bring out more products to get more market share. Competitive advantage: Strong brand image is a competitive advantage of Coca Cola. Coca Cola occupies 80% of the world’s market share. Every child has known at least one product of Coca Cola. Another competitive advantage is that Coca Cola Pakistan comes up with a captivating advertisement that emotionally hit their audience that makes them consume products of Coca Cola. Digital Strategies: The power of computer and internet in today’s age is more than anything (Bughin, Catlin & Hirt, 2018). A brand can touch those far ends of the world now due to web technology that use to seem impossible at on time. To target Millennials digital mediums that are Facebook, Instagram, Twitter and Youtube etc. are the best ways because every millennial has his/her head in their smartphones all the time and they are watching everything (Smith,2012).

1. As the world is under the breakout of Corona Virus Pakistan is also one of the affected by the virus and is under lockdown. Coca Cola should start home deliveries from all digital platforms not only from the website for the convenience of their customer so they can easily order. Also, they should start giving free masks and sanitizers with each order or each bottle to make their consumer feel that Coca Cola is with them in this time of need. 2. Another strategy that they can adopt is that they can start a campaign of lucky draw. To enter lucky draw consumers should purchase a bottle took a photo with the bottle and upload on the pages of social media platforms of Coca Cola Pakistan. Whoever gets the most like or share they will enter the lucky draw. A winner would get free tickets for foreign trips. 3. Another strategy that they can make is starting a campaign in which ask your consumers on Facebook, Instagram and Youtube to record a 30 secs creative video for the advertisement of Coca Cola and email them to Coca Cola Pakistan and the best 3 videos will be uploaded on their social media platforms and Television. And also, the winner will get paychecks and free Coca-Cola products for a year. Traditional Strategy: In Pakistan, most of the restaurant local or big food chance serve Pepsi very few serve Coca Cola products. Coc...