STRATEGIC

MANAGEMENT
“Project Deliverable”
Group Members:
Muhammad Haris Siddique (10047)
Muhammad Hammad Khan (10064)
Muhammad Haseeb Asif (10036)
Syed Daniyal Hussain (9829)
Zohaib (9532)

Assigned by:
Sir “Asif Iqbal”

Dated:
20th December 2022
Company:
COCA COLA
 ACKNOWLEDGEMENT:
We feel highly blessed by Almighty Allah who provided us with the knowledge
and creativity to successfully complete this report within time. The greater part of
our devotions drives to our parents for their endure support at each progression of
our life. Their actions toward our future development are constantly immeasurable.

We would also like to thank PAF-KIET with all our gratitude for giving such
opportunities to students to enhance student capabilities in research as well as their
presentation skills. Our experience in compiling this report has been enormous in
the capacity of accumulating practical and valuable knowledge that cannot be
learnt from any book”. We highly admire and acknowledge the efforts of our
Faculty because it wouldn’t have been this far, we would’ve never accomplish
such difficult task. This report owes much of its outcome to our teacher, “Sir Asif
Iqbal” who has always been helpful and corporative in guiding us. It’s due to all
her countless efforts that we were able to complete this report successfully. It
wouldn’t have been possible to complete this business plan in an effective way, her
directions has contributed a lot to establish our ideas in reality. We would also like
to expand our deepest gratitude to all those who have directly and indirectly guided
us in writing this project. This study has got support from a number of persons to
flourish and the involvement was by heart is truly encourage. We thank all the
people for their help directly and indirectly to complete our project.

We are grateful to all these people for their assistance and generosity.

Topic Name:
 “The Strategies used by Coca Cola Pakistan to be the best”

Introduction:
As one of the most valuable brand names worldwide, Coca-Cola has generally
excelled as a business over its long history. Founded in 1886, the Coca-Cola
Company is the world’s largest beverage company. In addition to Coca-Cola and
Diet Coke, it sells other profitable brands including PowerAde, Minute Maid, and
Dasani water. To service global demand, the company has the world’s largest
distribution system, which reaches customers and businesses in nearly every
country on the planet. Until the mid-twentieth century Coca-Cola focused on
expanding market share within the United States. After World War II, however, the
company began to recognize the opportunity in global sales. In the last part of the
twentieth century Coca-Cola extended this global push, taking advantage of
international revenue opportunities and fierce soft drink competition in an effort to
dominate the global soft drink industry. By the late 1990s Coca-Cola had gained
more than 50 percent global market share in the soft drink industry, Coca-Cola
remains largely focused on beverages. The largest portion of Coca-Cola’s net
operating revenues (59 percent in 2012) now come from outside the United States.
As the late Roberto Goizueta, former CEO of Coca-Cola, once said, “Coca-Cola
used to be an American company with a large international business. Now we are a
large international company with a sizable American business.”

Vision:
“The vision is to craft the brands and choice of drinks that people love, to refresh
them in body & spirit. And done in ways that create a more sustainable business
and better shared future that makes a difference in people's lives, communities and
our planet”.

Mission:
Our Roadmap starts with our mission, which is enduring. It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions.

 To refresh the world.

 To inspire moments of optimism and happiness.
 To create value and make a difference.

Corporate Social Responsibility:

We act in ways to create a more sustainable and better shared future. To make a
difference in people's lives, communities and our planet by doing business the right
way.

Primer:
Coca-Cola has approximately 500 products. Its soft drinks are offered globally, and
its product strategy includes a marketing mix. Its beverages like Coca-Cola,
Minute Maid, Diet Coke, Light, Coca-Cola Life, Coca-Cola Zero, Sprite Fanta, and
more are sold in various sizes and packaging.

Coca-Cola Pakistan supplies its products globally, thus its leadership must have
practical abilities and attributes to guarantee that the strategic goals. The
company’s plans include a global marketing strategic plan, modification,
standardization, strategic environment, and positioning. To clarify the objectives, it
suggests expanding the sales staff. To achieve its objectives, the business should
assess customer feedback, consumer satisfaction surveys, turnaround times, and
accuracy rates. The evaluation focuses on examining the leadership and change
challenges that need to be taken into account while putting the suggested strategic
plans into practice.

Coca Cola is using some marking strategy for the next years some are:

 Grown system profitability and capability together with our bottling partners
 Serves customers with creativity and consistency to generate growth across
all channels
 Direct investment to highest potential areas
 Drive efficiency and cost effectiveness everywhere
 MARKETING STRATEGY OF COCA-COLA
PAKISTAN:
Coca-Cola Pakistan has been investing huge amounts of money in its marketing in
Pakistan. Its strategy is to create an essence in the mind of the customers to recall
coca cola as a soft drink on every occasion. The motive of the company is to be
the best among its competitors by providing customers with the best quality by
satisfying their needs and wants. The main purpose of the company is to build a
strong relationship with the customers and the main issue faced by the company is
health. Nowadays customers are more health conscious and they consider that the
high amount of sugar in coca cola it's having a huge impact on their health. Being
one of the best brands in the beverages industry coca cola does care about the
health of its customers. So now we look at the marketing strategies of coca cola
Pakistan.

Promise of Coca Cola

The fundamental proposition of the business is plain, firm & timeless. When we
bring refreshment, joy value & fun to the stakeholders, then we successfully
nurture & protect our brands, mainly Coca-Cola. That is the key to fulfilling the
ultimate duty to provide consistently attractive returns to the holder of the business.

PROMOTION STRATEGIES

Coke studio:

Coke Studio Pakistan is one of the most popular things in Pakistan and the
company also invests a good amount of money in it. Coke Studio itself was a
strong point, what made it more popular was their strategy to take a platform that
they had created on TV to various online mediums

Getting shelves

They take purse shelves in big departmental stores & display their products on the
shelves in style that show the product via very attractive to the customers.

Eye Catching Position

Their salesman positions their freezers & their products in eye- eye-catching.
Usually, the company keeps freezers near the entrance.

Sale Promotion

Even company does sponsorships with various colleges and schools sponsors their
sports & many extra curriculum cacti activities catche market share. Under the
crown scheme (UTC Scheme) Coca cola frequent do this type of scheme & they
offer very attractive prizes in it. Such as once they offer bicycles, caps, cash prizes,
tv sets etc.

ADVERTISEMENT TOOLS:

They use many media platforms:

1. Billboards and holding

2. Music shows
3. POS material
4. TV commercial
5. Print media
6. Social Media
 7. Concerts
8. Campus drives.

They frequently use print media for their advertising. There is a separate
department in Coca Cola Company for print media.

POS Material

Point of sale material that includes: posters & stickers display in the stores & in
different places.

TV Commercials

As everyone knows that TV is a very popular entertaining medium. So Coke

Company does regular TV commercials on different channels.

Billboards and Holdings

Coca cola is more aware about their billboards & holdings. They have lots of sites
in different regions for its billboards

Product strategy: Coca-Cola has approximately 10 products in Pakistan and 250

internationally.

Place Strategy: Coca-Cola has a vast distribution network.

Classic Bottle, Font, and Logo. Coca-Cola organized a global and national level
contest to design the bottle.

Localized Positioning.

Sponsorships.

Social Media.

Some famous slogans of Coke:

“THANDA MATLAB COCA- COLA”

“JO CHAHE HO JAYE COCA-COLA ENJOY”

“SAR UTHA KE PIYO”

DISTRIBUTION CHANNELS STRATEGY:

Coca Cola Company makes two types of selling

 Direct selling
 Indirect selling

Direct Selling

In direct selling they supply their products in shops by using their own transports.
They have almost 450 vehicles to supply their bottles. In this type of selling
company have more profit margin.

Indirect Selling

They have their whole sellers and agencies to cover all area. Because it is very
difficult for them to cover all area of Pakistan by their own so they have so many
whole sellers and agencies to assure their customers for availability of coca cola
products.

QUESTIONNAIRE:

1. What are company’s long term goals?

2. What are the plans of coca cola Pakistan to increase their future growth
3. How coca cola can increase their market volume share
4. What kind of marketing strategies are being implemented
5. What goals does coca cola Pakistan wants to pursue in the coming years
 6. What are the new market threats for the company
7. Does coca cola use diversification strategy if yes then how and why?
8. What are the benefits of using economy of sales in beverage industry
9. How coca cola Pakistan manages to increase their sales despite having a
great competition
10. How do you see Pepsi strategically in business?
11. SWOT analysis of your company?
12. List your products in the BCG matrix?
13. Why Pepsi is having an upper hand in Pakistan?
14. How coca cola does creates competitive advantage in business season?
15. Are there any SBU’s of coca cola in Pakistan?
16. What are the business level strategies of coca cola in Pakistan?
17. Does the company acquire any outsourcing facilities in Pakistan?
18. Does coca cola implement any kind of cost leadership strategy?
19. Is there any future innovation regarding company’s business, product and
branding?

ANSWERS:

Q1:

Ans: The long term goal of Coca-Cola Company Pakistan is to grab the maximum
market share till 2027 they want to achieve almost 50% of the market share in
Pakistan so for achieving that goal they are setting some short term goals so they
can achieve the longer goals and objectives just like they have said the 500 million
unit case target this year to be achieved and in last year in 2020 today 424 million
unit case target so that’s how Coca-Cola Pakistan is trying to achieve the longer
goal by setting some short term goals and planning’s.

Q2:

And: To increase the future growth of Coca-Cola they have planned to launch their
new energy drink in 2023 and they have given a target to their distributors in a unit
case to achieve an increase the sale in a market another thing which the
organization is planning to increase the growth is that they are setting the targets
for their distributor and asking them to fulfill so they will reward them. The
process to increase the future growth of the organization totally dependent upon
their target market and their view of promoting their brands so for that Coca-Cola
has launched many new advertisement billboards and as we all know how they
promote their brand through coke fest coca cola studio cooks in the form of coca
studio so these all type of brandings are done so they can Attract the customers to
buy their product.

Q4:

Ans The local marketing strategy of Coca-Cola is to listen to all the voices around
the country asking for beverage that span the entire spectrum of Test and
accusation what but want for beverage who they are and where they live and how
they work play and how they relax and recharge themselves Coca-Cola is not only
to determine make great drinks but also to contribute to communicate around the
country coca cola is continuously improving their business by giving best quality
taste in the beverage industry which can satisfy customer needs and wants.
Q5:

The goal of Coca-Cola Company is to grab the market share by sponsoring main
event as they did worldwide by being the sponsor of ICC cricket World Cup and
FIFA football World Cup 2022 they are planning to sponsor such event in Pakistan
so they can have a huge market share in Pakistan to power launching new product
promoting the brand and by sponsoring mega events just like doing a coke fest or
being the sponsor of a maybe coming as you can see they can be the sponsor of
Pakistan super league though they are trying hard to promote their brand and grab
the market their main goal is now to achieve the maximum market share.

Q:6

Ans The new market thread for the company in Karachi specially at hotels and
changing taste of the customers the tea hotels in Karachi visually call them chai
Wala they are the main threats for both Coca-Cola and Pepsi as the changing taste
of the customers and the trends the most people are shifting toward the cold coffee
with the changing environment so the new market thread for the company is the
cold coffee trend in the tea so they have to look upon that to remain the best in the
market by getting maximum market share by improving their marketing strategy
by attracting customers more or maybe they can launch a new product so they
again neglect that threat and be on their way to become the brand with the
maximum market share in the beverage industry.

Q:7

Ans Yes Coca-Cola Pakistan use diversification strategy to grab a new market if
needed just like they launched a cold coffee in Islamabad to grab a market of a
coffee as they told us that the main threat for them is team hotels and trending
change of people moving towards a cold coffees and different these kind of things
so that’s where they launch a new product in Islamabad called cold coffee or
maybe they are launching soon in recent past they launched the product name roar
to attract the customers of energy drink they implement the diversification strategy
when they need to and when there is a need of the product or a new market to
target.

Q9:

Ans They managed to increase their sale by setting a target for the distribution to
increase the sale as Coca-Cola Pakistan works under the CCI Coca-Cola
international debt comes under a Turkey as they have said the target to achieve the
500 million unit case this year so they work on their strategies coordinated with
their distributors to increase the sale despite having a great competition so
competition is very vast in the industry but they try to manage this by providing
schemes to their wholesalers to their retailers to their customers or by giving some
kind of benefits to them .So they increased their sale by doing a proper branding
advertisement is sponsoring different artists doing things like coke Studio which
attracts the customers.

Q10:

Ans Pepsi is one of the best competitors of Coca-Cola Pakistan even it is one of the
best competition for Coca-Cola worldwide there is a three types of competition
that exists between two of them so Pepsi strategically is still ahead of Coca-Cola in
Pakistan in market share due to their great competitive advantage in energy drink
and juices so you are strategically investing a numbers in a market share or by
seeing some attraction of our customers towards their energy drink we can say that
Coca-Cola is still behind them in energy drinks.

Q11:

Ans: The following is a SWOT analysis of Coca Cola:

Strengths:

 Strong brand identity.

 High brand valuation
 Dominant market share
 Repositioning portfolio.
 Brand association and customer loyalty
 Unparalleled distribution system

Weaknesses:

 Aggressive competition with Pepsi.

 Health concerns
 Environmentally Destructive Packaging
 Lawsuits
 Overdependence on Third-Party Technology Providers.

Opportunities:

 Introduce new products and reduce added sugar

 Events and Concerts
 Packaged drinking water
 Bring advanced supply chain system
  Diversification.

Threats:

 Water usage controversy

 Tea restaurant and hotels.
 Pollution Lawsuit
 Increasing Health-Consciousness
 Direct and indirect competition.

Q12:

Ans: BCG Matrix of Coca Cola contains the Dogs, Stars, Cash Cows, and the
Question Mark. In the BCG Matrix of Coca Cola, the company’s low growth
products, products that attract sales, high growth products, and products that may
attract sales or may become low growth products in future.
 Star prodcut: Question Mark

DASANI Cappy, coffee & Pulpi orange

Coca Cola

Cash Cow: Dog Product:

COKE ROAR

Qno: 13

Ans: Pepsi is having an upper hand in Pakistan as compared to Coca-Cola there are
three types of competition among both of them the first one is in carbon industry in
which Coca-Cola is way ahead of them but Pepsi is having upper hand in energy
drink as Coca-Cola Pakistan is yet to introduce their energy drink in the market the
third one is in juice industry especially tetra pack juices in Pakistan in which peps
is having an upper hand in these products that’s why they are having upper hand
Pakistan as compared to Coca-Cola and they have a maximum market share and
the more customers are attracted toward them as Coca-Cola is yet to launch their
energy drinks and their juices in a Tetra packs so that’s why Pepsi is still enjoying
those markets as compared to Coca-Cola.

Q14:

One of the most well-known beverage brands in the world is Coca-Cola. Coca-
Cola has consistently maintained its competitiveness and held the top spot in the
beverage market, despite Pepsi Co. being its main rival. Coca Cola sets its rates at
a level that no rival can provide to its customers in order to reach out to every
consumer in the nation. Additionally, Coca-Cola always costs identical pricing as
its rivals. This tactic gives it an edge over rivals in the beverage industry.
Moreover, it has a beverage range of 3300 items and has placed importance on
distinguishing its goods in the beverage market. Drinks are separated into groups
such as diet, fruit juice, energy drinks, tea, and coffee, etc. This strategy aids Coca-
Cola in consistently capturing market share.

Q15:

SBU essentially belongs to the portfolio strategy, in which a corporation runs a

number of goods. Coca-Cola used a variety of promotional and advertising
strategies to increase demand in the market by connecting with daily activities and
behaviors and particularly highlighting value-based advertising. In Pakistan, iced
tea, diet, caffeinated products, orange juices, sparkling and still water and stimulant
drinks are available from coca cola brand. Coca-Cola creates beverages to appeal
to practically every demographic and also created multiple beverage sizes to
accommodate the various market forces.

Q16:

The Coca-Cola Company is able to hold onto its position as the leading brand in
the market because of its differentiation strategy. To produce the premium
beverage products, it uses modern equipment, distinctive marketing strategies,
labelling, and bottle forms. The business monitors its rising operational and
marketing costs in while also creating high-quality items. It places a major focus
on performance levels in order to make its products for the least amount of money
for Low cost leadership strategy. The business also employs a focus strategy in
the areas of price and distinctiveness. It keeps the target market completely in mind
when creating its marketing campaigns and choosing distribution networks in order
to satisfy the potential clients from such audience.

Q17:

Coca-Cola outsources its production. Coca-Cola supplies its Product to outside

units for fill. The filling of Coca-Cola Pakistan's cans, often known as toll filling,
is outsourced. They outsource the filling of third-party 250 ml and 350 ml cans in
Sialkot and Karachi. This is due to the low overall urging for cans and the high
cost of the equipment being used fill them. Coca-Cola just launched a juice called
Cappy, that they are marketing in major cities and outsourcing to a third Party in
Karachi.

Q18:

Cost leadership is the primary basic strategy employed by Coca-Cola which is

particularly successful method for brands to build a following and earn share fast.
It has made sure that its products are accessible and affordable, which has
increased its sales and popularity. This has proven to be a foundation of long-
term competitiveness. In order to boost sales and popularity, it also employs
discounts and marketing initiatives. It aids in increasing sales, creating a sizable
consumer base, and gaining notoriety.

Q19:

A 40% rise in ventures will be handled with a similarly strict approach in the firm's
innovation flow by 2021. Although key sectors will get the majority of the
company's innovative products, employees will resume to use a test-and-learn
strategy in nearby, developing sectors with products like Costa coffee and
excursions into alcoholic beverages with Lemon-Do (Japan) and Topo Chico Hard
Selzer.

Brand Value of Coca Cola:

Diversified and Optimized Brand Portfolio

We have the platforms to take advantage of this long-term growth opportunity

through our diversified portfolio of beverages and brands. Our streamlined
portfolio consists of a broad selection of organic brands, acquired brands, and
partnerships, and presents a strong platform for innovation that will drive interest
and consumption for both new and existing consumers.

Strong Global Value Share:

We are always in pursuit of becoming an increasingly consumer-centric, total

beverage company and we are building on solid foundations from the past. Today,
we have a strong global position in all category clusters in nonalcoholic ready-to-
drink (NARTD) beverages. However, outside of sparkling, our strong global
position is primarily due to a solid presence in only a handful of markets.
Therefore, we have a long runway in the majority of markets to gain leadership
positions outside of sparkling.

Strategic Alliances of Coca Cola;

1. Microsoft.
2. Ghani Glass at Pakistan.
3. Monster beverage Corp.
4. Karachi Eat fest.
 5. FIFA
6. Walt Disney.
7. USAID.
8. Food panda.
9. Cheetays.
10. Serena Hotel.
11. Fly Jinnah.

BUSINESS LEVEL STRATEGIES:

Moreover, its overall main objective is claimed to be growing the company, the
industry, and crafting brands and drinks that people love. In 2021, Coca-Cola set
up a pipeline to assess its level of innovation. The goals of the pipeline included
gaining new drinkers. This number was assessed weekly, significantly increasing
frequent users from its existing customer base and increasing the value of each
transaction significantly.

In general, the corporate goals of Coca-Cola can be summed up as gaining new

customers, gaining market share, improving stakeholder impact, and ensuring the
ability of the organization to remain a market leader. Coca-Cola achieves this by
pursuing a wide range of global strategies.

COCA-COLA BUSINESS STRATEGY

Coca-Cola is a market leader in the carbonated soft drink industry worldwide

1. The strategy of franchising to its global bottling partners has enabled it to

grow quickly.
 2. By partnering with local small bottlers in under-developed markets, it is able
to strategically merge or acquire these small local businesses to expand the
local markets.
3. The marketing activities and strategy of using a standardized brand image
around the world are contributing to its stable status as a household name
worldwide as well.
4. Marketing mix of Coca-Cola: Product: a wide portfolio including classic
Coke, Zero, Fanta and so on; Place: operates in global market, can be found
in shops, restaurants and vending machines; Promotion: across different
media and communication channels, using a series of campaigns; Price:
competitive pricing at the market level.

COST LEADERSHIP:
From time to time, Coca Cola also uses discounts and promotional campaigns to
increase sales and popularity. It is mainly for the affordability of its products
however, that the sales of the brand and its products have remained high.

Intensive Strategy:
Market penetration:
It is one of the key strategies Coca Cola has used to grow its sales. Apart from
keeping prices affordably low, the brand also uses promotional tactics like seasonal
discounts to push sales among its existing customers. It releases new packages and
runs promotional campaigns that are aimed at increasing the sales of its products
worldwide.
Market development:
Coca Cola become a global brand. Coca Cola products are sold in more than 200
countries. The brand has spread globally to nearly every corner of the world.
Apart from the flavor of the coca cola products and there affordable prices, the
credit also goes to the use of marketing and promotions for international growth.
The strategy has been highly effective and helped Coca Cola grab the leadership
position in the beverages industry.

CONCLUSION:
Coca-Cola as the world's leading soda beverage, with the strength of high
resources company and also a very good and well-known brand image will be
accepted at ease almost all over the world. Coca Cola is at keystone of its strategy
because it is instance recognized and allows Coca Cola to build critical mass by
day one. Coca Cola should capitalize on its brand as the brand make certain
promises, such as promise quality, promise value, promise propriety, promise jobs,
promise retail margin, promise make living by selling Coca Cola. Procter &
Gamble is a very triumphant company but nobody knows what Gamble & Procter
is but in case of Coca Cola we know instantly. Coca Cola uses DOMINANT
Corporate-Level Strategy in its business model to be very successful. Therefore,
the strategy of Coca-Cola focuses on covering the full market segmentation,
anywhere Therefore, the strategy of Coca-Cola focuses on covering the full market
segmentation, anywhere. But along with the development of the soda industry,
many competitors both from domestic products to global manufacturers are now
present and reducing Coca-Cola's market share in each country.
Coca Cola Company has a strong competitive position in the market with rapid
growth. It needs to use its internal strengths to develop a market penetration and
market development strategy. This includes focus on Water and Juices products,
and catering to health consciousness of people through introduction of different
coke flavor and maintaining basic coke flavor. Further company should integrate
with other companies, acquisition of potential competitor businesses, innovation in
branding and aggressive marketing strategy can bring long term profitability.