Marketing Plan Analysis for Coca-Cola: A Strategic Report

This report provides a comprehensive strategic marketing plan analysis of the Coca-Cola Company, focusing on its operations within the Pakistan beverage market. The report begins with an executive summary and introduction, outlining the company's mission, values, and current market position. It then delves into a detailed SWOT analysis, identifying Coca-Cola's strengths, weaknesses, opportunities, and threats. The PEST analysis examines the political, economic, social, and technological factors influencing the beverage sector in Pakistan. A competitor analysis is conducted to assess Coca-Cola's position relative to its rivals, including a discussion of differential advantages. Porter's Five Forces model is applied to evaluate the competitive intensity within the industry. The report also includes an industry analysis of the beverages market, discussing mergers, acquisitions, globalization, and target market strategies. A strategic action plan is presented, including marketing communication strategies, pricing strategies, and distribution channels, with a significant focus on carbonated drinks. The financial position of the company is briefly examined, and the report concludes with a summary of findings and recommendations, supported by references and appendices.

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.

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

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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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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.

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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.

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 examines the 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
product ranges or variations are virtually identical. Because both firms are in a similar
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.

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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."
As a result, the Coca-Cola Classic was quickly relaunched in order to meet the
requirements and desires of the public.
Its brand equity is strong, and its innovative items, which are differentiated and well-
communicated, continue to grow. Approximately 20 percent of Coca-annual Cola's ad
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.

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.