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Executive Summary This paper focuses on Coca Cola Company's Marketing Planning. It addresses the company's present strategic marketing initiatives for gaining and maintaining clients, as well as the company's future plans. It uses SWOT analysis to analyze the company's environment. In order to describe the competitiveness in Pakistan's beverage business, Porter's Five Forces Model is applied to the situation. To describe the elements of Pakistan's external environment that could potentially have an impact on the beverage sector as a whole, the PEST analysis framework is used. Additionally, an industry and competitive analysis was conducted to get a better idea of where the Coca-Cola firm is located in Pakistan's marketplace.
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Table of Contents Introduction ..................................................................................................................................... 5 Mission ........................................................................................................................................ 6 Values .......................................................................................................................................... 7 SWOT Analysis .............................................................................................................................. 7 Strengths ...................................................................................................................................... 7 Weakness ..................................................................................................................................... 8 Opportunities ............................................................................................................................... 8 Threats ......................................................................................................................................... 8 PEST Analysis ................................................................................................................................ 9 Political Factors ........................................................................................................................... 9 Economic Factors ........................................................................................................................ 9 Social Factors ............................................................................................................................ 10 Technological Factors ............................................................................................................... 10 Competitor Analysis ..................................................................................................................... 10 Differential Advantage .................................................................................................................. 12 Porter`s five forces analysis .......................................................................................................... 14 Existing Rivalry ......................................................................................................................... 14 Threat of New Entrants ............................................................................................................. 14 Threat of Substitute Products .................................................................................................... 15 Supplier Power .......................................................................................................................... 15 Bargaining Power of Buyer ....................................................................................................... 15 Industry Analysis of Beverages Market ........................................................................................ 16 Merger and acquisition .............................................................................................................. 16 Globalization ............................................................................................................................. 16 Target Market ............................................................................................................................ 17 Table One: Target Markets ....................................................................................................... 18 Category ........................................................................................................................................ 18 Rank within category ................................................................................................................ 18 Rank within category ................................................................................................................ 18 Strategic Action Plan .................................................................................................................... 18 Objective Strategies ...................................................................................................................... 19
2 Marketing Communication ........................................................................................................... 20 Marketing Penetration Pricing strategy ..................................................................................... 23 Distribution Channels ................................................................................................................... 24 Significant Focus on Carbonated Drinks ...................................................................................... 25 Financial Position of the Company ............................................................................................... 25 Conclusion .................................................................................................................................... 26 References ................................................................................................................................. 28 Appendixes ................................................................................................................................... 30 Appendix # 1 ............................................................................................................................. 30 Appendix # 2 ............................................................................................................................. 31 Appendix # 3 ............................................................................................................................. 32 Appendix # 4 ............................................................................................................................. 33
Strategic Marketing Report of Coca Cola Introduction While still in his teens, Chandler launched the Coca Cola Company in 1886. It is one of the world's leading firms and has been the number one brand in terms of brand value since 2000. After Apple Inc. and Google Inc., it is now ranked third in terms of brand value. For this research, Coca Cola was chosen because it has a large range of statistics available on it, and since Coca Cola and Pepsi are considered to be the world's most prominent competitors. In practically every corner of the world, Coca-Cola can be found. Manufacturing, selling non-alcoholic beverage syrups and retailing are some of its current activities. Coca-Cola, the company's trademark beverage, was founded by pharmacist Pemberton in Columbus in 1886. He is the current Chairman and CEO of the company, Muhtar Kent. Coca Cola Pakistan Beverages Limited operates Coca Cola in Pakistan, and its products are available in all Pakistani towns, villages, and districts. Coca Cola has 48.6 percent of the worldwide beverage market, according to the latest figures, making it the world's largest beverage company. There is no doubt that Pepsi is a direct rival of Coca Cola with a 20.5 percent stake of the beverage market. Pepsi, on the other hand, is a distant second to Coca Cola in the international market. Pepsi, on the other hand, has a significantly greater market share in Pakistan than Coca Cola. Coke's marketing and supply methods have failed to keep Pepsi ahead in Pakistan. Determining the efficacy of Coca-marketing Cola's tactics together with the impact of external variables on the company's operations is therefore crucial.
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4 Mission For example, a firm's mission statement explains why the company exists. Die Mission of Coke is to refresh the world, generate value and encourage moments of enjoyment. “To refresh the world in mind, body and spirit. To inspire moments of optimism and happiness through our brands and actions” (Coca Cola, 2016, p.1) Values Portfolio, partners, earth, people, and productivity and profit are among the company's most important values. Employees should be motivated to perform at their highest potential. SWOT Analysis To analyses an organization's internal and external environment, the SWOT analysis framework is used. Many organizations across the world utilize it. There is a combination of internal and external environment analysis, which looks at the strengths and weaknesses of the company as well as opportunities and threats. Strengths On the worldwide market, Coca-Cola has one of the strongest brand values. Coca Cola is preferred over Pepsi by a large number of people, both internationally and locally in Pakistan. When it comes to marketing, Coca-Cola has the resources necessary to increase its market share in Pakistan. Coca-global Cola's leadership is well-known across the world. Relationships with strategic partners have been strong at the firm. Wide variety of goods are available from the firm Considering that the revenue comes from different parts of Pakistan, the risk is spread out.
Weakness Unlike in the foreign market, Coca Cola does not have its own bottle production facility in the United States. As a result, strategic partners are heavily relied upon. Sometimes, Coke was not accessible because the Mehran Bottlers in Pakistan were unable to supply enough bottles to the firm. Coke's supply chain management in Pakistan isn't nearly as efficient as Pepsi's. Opportunities It's clear that individuals are dining more frequently at restaurants and other areas where they spend their free time, since Pakistan's quality of living is quickly improving. Hotels and restaurants, where beverage demand is strong, provide Coca Cola the potential to form strategic alliances with Coca Cola. There are numerous Pakistani eateries that provide Coca-Cola products. Through strategic collaborations the supply chain and marketing may be improved even further. It is possible for Coca-Cola to increase its sales by utilizing different marketing channels, such as social media marketing, Threats Coca Cola and Pepsi are both facing a major threat from local producers who are eager to enter the market and take market share from the big brands. Some of the company's direct competitors are now entering the Pakistani market, including Gourmet. As Pakistanis become more health concerned, the consumption of drinks is expected to decline with time. As a result of this, the company's operations may be adversely affected.
6 PEST Analysis An example of PEST analysis may be seen in Appendix 3. You'll learn about the business's effect on the industry's political, economic, social and technological issues. Political Factors When looking at Pakistan's political situation, it's clear that it's not particularly stable. As strikes and other actions occur around the country, they can have a detrimental influence on sales and profitability. Coca- Cola and Pepsi, for example, are sold at schools, universities, hotels, restaurants, and other locations. The company's revenues will be adversely damaged if any part of Pakistan is closed for political reasons. Economic Factors Pakistan's economic situation has deteriorated in recent years. However, because the price of Coca Cola is not high and the demand is constant, the economic element does not have a substantial influence on Coca Cola consumption. Despite the fact that Pakistan's purchasing power parity has declined in recent years, these economic variables do not have a substantial influence on Coca Cola's sales. Social Factors An organization's sales and profitability can be significantly affected by social variables. As an example, many Coca Cola and Pepsi drinkers have switched to healthier goods like Juices as a result of their growing health consciousness. Pakistanis still choose local products and services over foreign ones. The success of local producers like Gourmet can be attributed to this.
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Technological Factors Coca Cola is one of the world's most popular brands. A high-tech company, it is able to produce high- quality items and provide excellent customer service after the sale. On the local and worldwide market, Coca-Cola has been able to keep up with the changing technologies in an effective manner. Competitor Analysis As a first step, a corporation examinesthe current status of the sector, identifies significant factors, and develops a strategy for making money. Daher focuses on the beverage market or soft drink industry rivalry, which is very distinct from other industries. as a result of its market leadership and foresight in the beverage sector, Coca-Cola has the finest brand image in every corner of our planet! PepsiCo is the major or primary competitor of Coca-Cola since their productrangesorvariationsarevirtuallyidentical.Becausebothfirmsareinasimilar competitive environment, their target audiences and target markets are the same, and their goods are comparable as well. As seen in the following table, each company's product line includes a wide variety of brands.
8 Source: Coca Cola (2016)
Differential Advantage COCA COLA is a global market leader and a pioneer in the soft drink business. It is the largest investor in the soft drink sector and has a strong brand image. Due to its unique flavour and appearance, vintage Coca-Cola is most likely to be the most popular product, since people tend to gravitate towards it. Our clients did not appreciate "new coke" when Coca-Cola decided to modify the formula of coke and introduce "new coke." Asaresult,theCoca-ColaClassicwasquicklyrelaunchedinordertomeetthe requirements and desires of the public. Its brand equity is strong, and its innovative items, which are differentiated and well- communicated,continuetogrow.Approximately20percentofCoca-annualCola'sad expenditure is spent on sustaining the company's differentiating strategy and communication systems. A significant opportunity exists for gaining the audience's faith in first-class charged prices to pay the extra manufacturing cost by increasing product quality and originality and therefore increasing pricing to fulfil customer's requests.Coca-Cola has too much financial power in the soft drink business, therefore it spends more money on differentiating methods to maintain its position as the global market leader. It refers to the presentation of a five-force model. While examining new developments in beverage sectors, it is also vital to discover significant aspects that may be used in SWOT analysis to analyses current opportunities and threats.
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Porter`s five forces analysis Existing Rivalry Throughout the world, Coca-Cola is a market leader in the beverage and soft drink sectors. Although Pepsi is a rival to Coca Cola, Pepsi Colas must have market domination in the United States market since Coca Cola Company is so much larger than Pepsi. However, Coca-Cola and PepsiCo dominate the beverage business and no other company can match their global dominance. Coca Cola and Pepsi Co's SWOT analysis shows that their strengths and weaknesses are very comparable. Threat of New Entrants As a result of the high level of competition in the beverage business, new competitors have a difficult time competing with Coca-Cola and PepsiCo. It is difficult for new firms to enter the distribution channel since there are only two companies that distribute internationally. Both companies have made significant investments in production, as well as a robust transportation and distribution network. Defined as a reduction in the cost of manufacturing as a result of huge economies of scale. Threat of Substitute Products Substitutes for Coca Cola include energy drinks, tea and coffee, mineral water, coffee and juices. The Coca-Cola Company has concentrated on these industries in order to grow as a result of its efforts. Consumers prefer bottled water because it is healthier than soft drinks, and energy drinks and juices are becoming increasingly popular due of this trend since they are promoted as being healthier than soft drinks. For this aim, individuals drink coffee or tea instead of soft drinks since they have caffeine in them. Soft drinks are becoming more and more diverse in order to appeal to a wider range of consumers. Quality and innovation are sacrificed as a result of the danger.
Supplier Power Despite being the world's largest beverage corporation, Coca Cola has a limited level of supplier leverage since it owns an interest in numerous bottling components. Supplier negotiating leverage is low since this bottling equipment may be easily manufactured by other firms. Sweetie and water are common raw resources; therefore, suppliers may be easily replaced without any issues... Bargaining Power of Buyer Drinks from Coca Cola Company are widely accessible at grocery stores, cafeterias, and budget shops. These firms sell soft drinks at these stores so that our items can be resold. As a result, the customer must be able to take advantage of substantial discounts. Retailers like supermarkets and big box stores buy a lot of drinks. business allows them to do so for less money. Now that consumers are more aware of the need of eating and drinking healthily, as well as adopting healthier lifestyles, soft drink substitutes are on the rise. When it comes to bottling partners, Coca Cola has very limited negotiating power. The firm relies on bottlers to sell our goods in the market. Industry Analysis of Beverages Market Merger and acquisition This will affect the soft drinks industry trend since when any trend reaches a mature level, it tends to deteriorate. This is a market trend. Because of this, mergers and acquisitions lead to change as a result of a desire to generate more income and expansion, as well as increased economies of scale A lot of firms are considering mergers and acquisitions as a way to increase revenue and market share. PepsiCo's purchase of Quaker oats is a great example of industry analysis in the beverage sector. As a result, PepsiCo enlisted the aid of a consultant to study the energy drink market. A fantastic chance has presented itself because Coca-Cola was the initial entrant in this market and also lost out on dominating the soft drink sector.
Globalization Coke is one of the finest soft drink businesses in the world today, but it wasn't always that way. As the soft drink business continues to develop rapidly, Coca Cola Firm is now the world's largest company by market capitalization. There are more than 84000 suppliers for Coca-Cola, which is expanding globally. The firm works in more than 200 countries. Coca Cola's market share in the beverage sector globally is over 70%. The Coca-Cola Company offers a range of goods, but it is committed to ensuring that all products deliver the same refreshing, sustaining, and quality around the globe. Coca-Cola Company's position in the global beverage market. Target Market Coca-Cola is a globalizing corporation with a well-known brand name. As a result, they have a large number of customers that have a variety of demands that are met. In order to fulfil all age groups, Coca-Cola products are consumed. Hence, the greatest age range to target is 18 to 34 years old, due to the tremendous potential that exists in this age group. These age groupings have a maximum of three members. Secondly, Coca Cola does not target 18-24-year-olds since this age group is not large enough to target and the brand's reputation is already well-known. This means that selecting and merging the top two age groups of customers is the best choice. Table One: Target Markets CategoryA (‘000) B % Users ofD Index Rank within category AxD (VP) Rank within category 18-241738116.012312,197,8633 25-342860526.411423,260,9701 3 Person or more 6534560.310917,122,6051 There are a lot of current customers in this category, which is why this table is characterized by these two age groups together. It's clear that 25–34-year-olds have a lot of potential (3,260,970), therefore 70 percent
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of the volume is primarily targeted because of the big volume. Secondly, the target age group for the 18-24 age group is (2,197,863), which means that thirty is the category weight for the secondary age group. Strategic Action Plan The American Army coined the term "strategic" to describe a plan to accomplish a long-term lucrative aim. In order to attain their long-term planning/goal of fulfilling their organization's lucrative demands, new entrepreneurs employ these terms. To develop strategic objectives and action plans, Coca-Cola is the greatest platform in the world. There are specific actions to be taken in an action plan, which include emphasizing the most important organizational issue and touching on its related goal. And who will achieve this aim according to its timetable? The structure of strategic action is determined by the type of organizational requirements. It's important to note that an organization's broad strategic action plan will describe how it intends to deal with the current problem. Pepsi beats Coca Cola in Pakistan, but vice versa across the world. So, what is the underlying problem, and what measures are necessary to address it? Is there anything that needs to be done about this? According to our findings after a thorough examination of the situation, the most essential factors are effective distribution, product availability, and product visibility. Objective Strategies There may be a goal in the action plan. It is crucial to have a clearly defined goal in order to be able to face the genuine problem and come up with a feasible solution. If the goal is not clearly defined, it will be difficult to achieve the goal. As a result, it should be SMART (specific, measurable, achievable, realistic and timeliness). In a way, it is like riding on the back of a wheel brow to get to the solution. In this marketing strategy, the following bullet points are strategic objectives that must be addressed. Coca- strategic Cola's plans are always limited to three years. As a result, the below-mentioned goal must be completed within three years.
Distributor redefining (Distributor, Wholesaler and retailer). The Pepsi brand has a far stronger presence in Pakistan than Coca Cola. The goods must be readily available and visible in every area of the country. People in Pakistan thought that the flavor of Coca Cola wasn't up to par (We like some more sweet in any drink for instance Pepsi). Coke, like Pepsi, must increase its product line, according to Market Research. Marketing Communication Cokeisunquestionablytheworld'smostpopularbeveragebusiness.InPakistan, however, the situation is completely different. Coke is unable to penetrate the Pakistani market becauseofthelimitationsdescribedinthebulletpointsabove.Byusinga marketing/communicationstrategy,youcanachieveyourgoals.Wishthatthesuggested communication approach will be successful in increasing Coke's market share in Pakistan. Essentially,marketing/ communicationalplansare a techniqueto design and executea promotional strategy to get the right product at the right time at the right price to the right location. Every year, Coca Cola comes up with a new marketing strategy to make it even better than before. If you look at a product's life cycle there are various phases such as the following: In western regions such as the United States and Europe, Coke has reached a maturity stage, yet sales are still in a growth phase. In Asia and other places where Coke is still battling, this is a golden chance for Coke. Coke has a great opportunity to make their communication approach distinctive and clever in the Asian market at this point in time. To be successful in Pakistan, Coke must have an effective distribution strategy. There's an old adage from marketing expert Gray Armstrong that says "the success of any product depends on its availability in every store and SME across the country from Karachi to Khyber." Pepsi's Dew and Sting are examples of Pepsi product extensions that might help Coke enter a growth phase by focusing on marketing and research.
With research and development, they need to narrow their emphasis and increase their product line. For the future, Coke must focus on expanding their reach in consumer health in order to improve the consumer experience with new feelings, hilarious, distinctive, and new fashionable looks and styles. It is important that Coke's advertising approach focuses on billboards with coming soon messages and that the message on the billboard is not a cultural add like other billboards. "Go Coke Pakistan" is a popular TVC ad shown during the World Cup. It is necessary for them to arouse the patriotic feelings of the Pakistani people through patriotic TVCs. Although Coke Studio is Coke's finest approach, internet advertising such as social media is one of the best ways to get your message out to young people (upcoming leader). Coca-Cola uses both the Pull and Push strategies in their sales promotion. Asian folks are eager to be Cricket's friends in the advertising plan. So Coke needs to sponsor/organize different matches, tournaments, and world cup matches, because now is the best moment to capture people's attention at the highest degree of visibility possible right now. In addition, it's a great method to get people to remember your brand. Cricket is the most popular sport in Asia, according to a study, but people in Pakistan and India also enjoy hockey. Make sure, however, that young people in this day and age are equally interested in football matches and its World Cup matchups. Coca-Cola should also sponsor Country's cricket uniform for maximum visibility in the minds of the public. Ever since Coca-Cola was first marketed in 1886, the genius Coca-Cola creator has been the driving force behind its success. Today, Coca-Cola is the world's leading beverage corporation with a presence in over 180 countries. All of Coke's team members, including the co-founder, adhere to three timeless values, which are described here. A.Acceptability: Everyone in the society must be able to accept the product. Using the greatest marketing communication approach (Pull and Push), Coca-brands Cola's should be designed to look like they're a part of every household. In every home's
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refrigerator, this must be readily available. Coca-Cola is a staple in every person's life and is one of the most popular beverages in the country. B.Affordability: The price of a product or service. All of Coca Cola's products are meant to appeal to a global audience. SEC A, B, C, and D were all included in the pricing because of the company's unique customer-driven strategy. The product on sale is the most cost-effective. As far as I'm concerned, it's ideal if the product is cheap for all classes of people, from the poorest to the richest. A product is inexpensive for everyone, whether they are wealthy or poor. Due to its pricing approach, Coke engulfs individuals from every angle, with a product for every one of every class at every price. C.Availability: As a result, product availability at the customer's doorstep is a critical part of strategy. Availability of products is a win-win situation for any company. All brands should be available in shops, restaurants and on the streets of the world. Product penetration in all markets. Product availability is the real winner in this game. Why Pepsi is so popular in Pakistan is because it is readily available in every corner of the country. Take a look at how robust the forward distribution of products is. If Coke responds in the same way, we'll be able to celebrate Coke's triumph in Pakistan. Product availability, price, and acceptance are the only keys to success for any firm. COKE has an enormous worldwide distribution network that has been meticulously planned. The Network is a guarantee of the product's widespread availability. There's a word for it: ubiquitous. Coca Cola is the world's most popular brand and has a unique distribution system. When it comes to bottling, Coca-Cola is the only brand that has its own style. Coke has the broadest and most widespread distribution network. Pepsi Pakistan, a direct and indirect competitor of Coca Cola, has neither increased nor decreased the price of its product in comparison to its direct and indirect competitors. Between Pepsi and Coke, there is a fascinating truth. If Coke raises its price, Pepsi will seize the chance and lure all of Coke's customers to Pepsi's domain owing to this concern. If the price is excessively cheap, it creates a negative impression in
the mind of the consumer. Due to the bull whip effect, Coca-Cola offers distinct advertising strategies for Ramadan and Eid, as well as other holidays and occasions. Marketing Penetration Pricing strategy As the company's most valuable asset, the product is designed to meet the requirements and wishes of consumers. The term refers to the distribution of products in Pakistan. It's no secret that Coca Cola is one of the world's greatest brands. Distribution Channels More essential than developing an effective channel to distribute your company's product or service to the end customer is choosing the right distribution method. Choice of effective distribution might lead to Coke's success in the marketplace. Coke's seeming success can be attributed to a number of different factors. Lead time, transportation and distribution distance from the customer's end, as well as product line extension available at the distribution end, are examples. In order to avoid pandemonium, Coca-Cola uses several distribution techniques. •Intensive Distribution •Selective Distribution Considering Pepsi as a direct competitor to Coca-Cola, it makes use of all distribution channels to communicate its product message to the end consumer In the intensive channel, Coca-Cola must pick every shop and every corner station to ensure that its product is available. Particularly when it comes to FMCG and consumer-friendly products, intensive distribution is a sure-fire approach to achieve success. Because it is a beverage, it must be targeted for intense distribution (mass level of distribution). It is necessary to focus on a certain region restricted distributor when in Selective Distribution Whenever you buy a shopping goods or a car that's in the Centre of the price range, you'll utilize selective. In which we consider and plan before purchasing any product or services. Like a car on the road. However, because to the fact that Coke can easily control and dominate the market, we must focus our efforts on selective distribution. 'Exclusive channels' are distribution channels
where only one company's product is available, and no other product is permitted. It's the same with Mercedes Bens. A excellent illustration of Exclusive distribution. Now a days, Coke uses advertising TVS as a promotional strategy. Coca-Cola uses patriotism in their advertising, such as the TV commercials you see these days. Coke is putting up additional billboards and raising awareness in Pakistan about the new characteristics they've added to their product. As part of trade promotion, Coke supports a variety of music shows and other events. When Coke and Pepsi boost the price of their products in the summer, users grumble that they have to buy costly ones, which may have a negative impact on their brand loyalty. The firm has a pricing strategy in place because there is no guarantee that prices would rise or fall during the busy season. Retailers and distributors are forced to decide whether or not to place the next order since a rise or drop in price might affect their profit margins and cause the items to be blocked. Significant Focus on Carbonated Drinks It is still the Coca Cola Company's primary aim to market carbonated beverages such as Coca Cola, Sprite Fanta, etc. Coca Cola must work on healthier drinks, as the world is shifting towards healthier meals and beverages; it has a limited variety of such goods, such as the Minute Maid Juices range. Financial Position of the Company This is due to the fact that Coca Cola operates in more than 200 countries across the world, where significant sales levels are attained every day, resulting in a very solid financial situation. Investments in marketing are made in Pakistan as well as internationally. Throughout the previous few decades, Coca-Cola has always been active in promoting its brand utilizing Above- the-Line and Below-the-Line strategies. There are several popular Pakistani television series sponsored by Coca Cola like Coke Studio and others. Marketing initiatives of Coca-Cola encourage consumers all the time to switch to Coca Cola. Coke commercials may be shown on television approximately every fifteen minutes. To keep up with customers and consumers, Coca-social Cola's media staff is engaged 24/7. Marketing expenditures will be increased in the
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future, and additional campaigns will be launched to assist the firm acquire and keep consumers from all across Pakistan. Coca Cola's strong financial position implies that it has the capacity to dominate the Pakistani market in the same way it did on the international one. The marketing approach, on the other hand, has to be revised. A strong relationship with strategic partners is needed to ensure Coca-goods Colas are available across the whole country of Pakistan There is just one reason why Coca Cola has surpassed Pepsi in Pakistan: the product is readily available. When Pepsi first arrived in Pakistan, Coca-Cola was nowhere to be seen. Conclusion According to the report's study, Coca Cola has done a fantastic job of acquiring and maintaining clients on the worldwide market by utilizing a variety of marketing tactics. It has become a worldwide emblem of American Product. There are people all around the world who are hooked to the items that Coca Cola produces and sells. To some extent, this explains why, for 13 consecutive years, Coca-Cola has maintained the number one position in terms of brand value When it comes to the Pakistani market, Coca Cola is still lagging behind Pepsi Co. Pepsi's success in Pakistan is due to a variety of factors. Pepsi is more readily accessible in Pakistan than Coca Cola, which is one of the reasons for its popularity. Pepsi has developed excellent ties with important partners, allowing them to ensure that Pepsi products are widely available throughout Pakistan. Also, Pepsi dominated the Pakistani market while Coca Cola hadn't even been released. Coca Cola should thus rethink its methods in order to give Pepsi a run for its money on the Pakistani market, just as it has done on the international market.
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