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A Business Analysis of Coca-Cola Marketing Approach in Pakistan

This marketing analysis offers a comprehensive overview of The Coca-Cola Company's strategies and performance in the dynamic Pakistani market. The examination delves into key aspects such as Coca cola’s marketing segmentation, target market and brand positioning in Pakistan.This report also analyze the strengths weaknesses opportunities and threats for the company and environmental factors influencing it. This report dives into how Coca-Cola can make its marketing better in Pakistan

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Maliha Noor
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100% found this document useful (1 vote)
196 views44 pages

A Business Analysis of Coca-Cola Marketing Approach in Pakistan

This marketing analysis offers a comprehensive overview of The Coca-Cola Company's strategies and performance in the dynamic Pakistani market. The examination delves into key aspects such as Coca cola’s marketing segmentation, target market and brand positioning in Pakistan.This report also analyze the strengths weaknesses opportunities and threats for the company and environmental factors influencing it. This report dives into how Coca-Cola can make its marketing better in Pakistan

Uploaded by

Maliha Noor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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A BUSINESS ANALYSIS OF COCA-

COLA'S MARKETING APPROACH


IN PAKISTAN

Submitted to:
Prof. Usman Yousaf
Submitted by:
Maliha Noor (BSAF22-023)(Team Leader)
Mahnoor Aleem (BSAF22-013)
Sana Waqar (BSAF22-011)
Noor Maryam(BSAF22-054)
Alishba Iqbal(BSAF22-059)
Table of Contents
Executive Summary:...................................................................................................................................... 2
Introduction: ................................................................................................................................................. 3
History: ...................................................................................................................................................... 3
History of The Coca-Cola Company in Pakistan: ....................................................................................... 4
Vision Statement:...................................................................................................................................... 4
Mission statement: ................................................................................................................................... 5
Values ........................................................................................................................................................ 5
Objective ................................................................................................................................................... 5
BCG Growth-Share Matrix: ........................................................................................................................... 6
SWOT analysis: .............................................................................................................................................. 8
Environmental analysis: .............................................................................................................................. 10
Market segmentation & Targeting: ............................................................................................................ 16
GEO-GRAPHIC SEGMENTATION: ............................................................................................................. 17
DEMO-GRAPHIC SEGMENTATION:.......................................................................................................... 18
PSYCHO-GRAPHIC SEGMENTATION: ....................................................................................................... 19
BEHAVIOURAL SEGMENTATION: ............................................................................................................ 19
Brand Positioning: ....................................................................................................................................... 24
Marketing Mix: ............................................................................................................................................ 27
Product:................................................................................................................................................... 28
Price: ....................................................................................................................................................... 29
Place: ....................................................................................................................................................... 29
Promotion: .............................................................................................................................................. 30
Consumer behavior analysis: ...................................................................................................................... 31
Recommendations: ..................................................................................................................................... 38
Diversifying portfolio: Introduce more healthy beverages ..................................................................... 38
Strategic Market Penetration: Improving Marketing mix....................................................................... 38
Develop New Markets: Stepping into Rural Markets ............................................................................. 39
Product Development: Offering new range of beverages ...................................................................... 40
Strategic Partnerships: ............................................................................................................................ 40
Innovative Promotional Strategies ......................................................................................................... 40

1
Conclusion: .................................................................................................................................................. 42
References .................................................................................................................................................. 43

Executive Summary:

This marketing analysis offers a comprehensive overview of The Coca-Cola Company's


strategies and performance in the dynamic Pakistani market. The examination delves into key
aspects such as Coca cola’s marketing segmentation, taget market and brand positioning in
Pakistan.This report also analyze the stregnths weakenesses opportunities and threats for the
company and environmental factors influencing it.

This report dives into how Coca-Cola can make its marketing better in Pakistan. To improve, we
suggest making new flavors that people in Pakistan might really like and showing that Coca-Cola
cares about health by talking more about their healthier drinks. It's also a good idea to work
with famous local people and use social media to talk to young people. We recommend special
deals to make Coca-Cola a good value and making sure it's easy for everyone to buy, even in
small towns. By doing these things and keeping up with what people like, Coca-Cola can make
more people happy and stay a top choice for drinks in Pakistan.

2
Introduction:
The Coca-Cola Company stands as a global beverage giant, famous for its iconic and refreshing
products that have transcended cultural and geographical boundaries. Coca-Cola has evolved
into a symbol of joy, celebration, and togetherness. With a diverse portfolio of beverages, the
company caters to a broad spectrum of consumer preferences, maintaining a strong presence
in markets worldwide. Beyond its renowned flagship product, Coca-Cola, the company
continues to innovate, adapt to changing consumer trends, and contribute to social and
environmental initiatives. Embracing a commitment to refreshment, quality, and corporate
responsibility, Coca-Cola remains an integral part of daily life for millions around the globe.

History:
The Coca-Cola Company, one of the world's most iconic and recognizable brands, traces its origins to the
late 19th century. In 1886, Dr. John Stith Pemberton, a pharmacist in Atlanta, Georgia, concocted a
caramel-colored syrup with the intention of creating a refreshing soda fountain beverage. Frank M.
Robinson, Pemberton's bookkeeper, is credited with suggesting the name "Coca-Cola" and designing the
distinctive script logo. The beverage was initially sold at Jacob's Pharmacy in Atlanta, where it gained
popularity for its unique flavor.

In 1892, Asa Griggs Candler, a businessman with a keen marketing acumen, acquired the Coca-Cola
formula and founded The Coca-Cola Company. Under Candler's leadership, the brand underwent
significant expansion, with Coca-Cola being sold across the United States. In 1916, the company
introduced the iconic contoured bottle, designed to be recognized even in the dark, contributing to the
brand's visual identity.

The 20th century saw Coca-Cola become a global phenomenon. World War II played a pivotal role in
introducing the beverage to servicemen stationed overseas, contributing to its international popularity.

3
The company expanded its product portfolio with innovations like Sprite (1961) and Diet Coke (1982).
Despite the brief introduction of New Coke in 1985, which faced backlash from consumers, Coca-Cola
rebounded with the reintroduction of the original formula as Coca-Cola Classic.

The Coca-Cola Company has continually adapted to changing consumer preferences, expanding into
new markets, and diversifying its product offerings. Today, it stands as a symbol of refreshment and joy,
with a presence in virtually every country around the world.

History of The Coca-Cola Company in Pakistan:


Coca-Cola entered the Pakistani market in 1953, marking the beginning of a long and successful journey
in the country. The brand quickly gained traction, becoming a beverage of choice for many Pakistanis.
Over the years, Coca-Cola has played a significant role in the country's social and cultural landscape.

In Pakistan, Coca-Cola has adapted its strategies to align with local tastes and preferences. The company
has introduced localized marketing campaigns, collaborating with Pakistani artists, musicians, and
celebrities to create connections with the diverse population. The introduction of special editions and
packaging tied to cultural and religious festivals has also been a part of Coca-Cola's strategy in Pakistan.

The company's commitment to corporate social responsibility has been evident in its initiatives in
Pakistan. Coca-Cola has actively engaged in community development projects, focusing on areas such as
education, health, and water conservation. The "Coca-Cola Khushiyon Ka Pakistan" campaign is a
notable example of the company's dedication to spreading happiness and making a positive impact on
society.

Today, Coca-Cola remains deeply ingrained in the Pakistani market, with a product portfolio that caters
to a wide range of consumers. The brand's ability to blend global appeal with local relevance has
contributed to its enduring success in Pakistan.

Vision Statement:

 People: Be a great place to work where people are inspired to be the best they can be.

 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy
people's desires and needs.

4
 Partners: Nurture a winning network of customers and suppliers, together we create mutual,
enduring value.

 Planet: Be a responsible citizen that makes a difference by helping build and support sustainable
communities.

 Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.

 Productivity: Be a highly effective, lean and fast-moving organization.”

Mission statement:

 To refresh the world...

 To inspire moments of optimism and happiness...

 To create value and make a difference.

Values

 Leadership: The courage to shape a better future

 Collaboration: Leverage collective genius

 Integrity: Be real

 Accountability: If it is to be, it's up to me

 Passion: Committed in heart and mind

 Diversity: As inclusive as our brands

 Quality: What we do, we do well

Objective

The coca cola company objective is to be globally known as a business that conducts business
responsibility and ethically and to accelerate sustainable growth to operate in today’s world.

5
BCG Growth-Share Matrix:
BCG (Boston Consulting Group) Matrix also known as Growth-Share Matrix is a Portfolio planning
method that evaluate a company’s SBUs in terms of Market growth and relative market share.

The coca-cola company Portfolio globally ranges from Sparkling soft drinks, water sports, tea and coffee
to juices and dairy products.Soft drinks include Coca cola, Sprite and Fanta. In water, sports, coffee and
tea, it has breads Dasani, Smart Water, Vitmain Water, Topo Chico and powerade. In juices and dairy, It
has Cappy, Minutemaid, Simple, innocent and Ades

However, In Pakistan it offers Coca Cola, Coca Cola Diet, Sprite, Sprite zero, Sprite mint, Fanta ,Dasani
And cappy.

BCG GROWTH-SHARE MATRIX

STARS QUESTION MARKS

 DASANI  SPRITE
HIGH

 MAAZA  FANTA
 KINELY
MARKET GROWTH RATE

CASH COWS DOGS

 COCA COLA
 MINUTEMAID
LOW

 PULPY
 DIET COKE

HIGH LOW
RELATIVE MARKET SHARE

6
1.Stars:

The business unit or product with high market share in a high growth industry are the stars for the
company. They create the brand value for the company. There is high completion for these SBUs and
products. There’s also a threat of new entrants and it is risky to take out investment. The company must
use Maintain and investment strategies for Its stars.

Dasani, maaza and Kinely are the stars of Coca cola. Kinely is popular in European markets while Dasani
is offered in U.S. As the market for healthy drinks and bottled water is expanding, this segment of coca
cola is expected to gain a bigger market share and a better opportunity for further investment.

2.Cash Cows:

The business unit or product with high market share in a low growth industry are the cash cows for the
company. They have no threat for new entrants. There is low competition. There is not need for further
investment. Companies use the harvesting strategies here and invest the money gained from these SBUs
or products into other SBUs and products especially stars.

In the BCG matrix we can see that coca cola is the cash cow as it has high relative market share but low
market growth.

3.Question Marks:

The business units or products with relatively low market share but high market growth are Question
Marks. The aim here is to maintain the position and expand market share to convert it into a star. Here,
Holding the position and investment strategy is implemented.

In the BCG matrix we can see that Fanta and sprite are the question marks for Coca Cola Company. Their
market growth is high but these products have low relative market share .Coca cola must invest in these
products to convert them into stars.

4.Dogs:

The business unit or products that have relative low market share in a low growing market. It is a strss
situation for a company and there are very less chances for its growth. Companies implement divesting
strategy here.

7
In the BCG matrix, we can see that the minutemaid, pulpy and diet coke are its dogs.

SWOT analysis:

Coca-Cola is a multinational beverage corporation that has been in operation for over a century.
Environmental analysis of Coca-Cola Company using SWOT analysis. SWOT analysis means that
strengths, weakness , opportunities and threads. The company has a strong brand identity and is one of
the most recognized brands across the world . Here is a SWOT analysis of Coca-Cola:

1-Strengths:

The strengthens of a company means that what qualities did they have. And which qualities effect their
brand. Here are some qualities:

 Coca-Cola is a highly popular brand with a unique brand identity. Its soft drinks are the most-
selling drinks in history . It has a strong band identity.

 Coca Cola revenue for the twelve months ending September 30, 2023 was $45.030B, a 6.35%
increase year-over-year. The company has a strong presence in the country, with six bottling
plants and over 4,550 employees.

 The soft drinks market in Pakistan enjoyed dynamics growth over the review of the period in
both volume and current value terms. Carbonates dominate the market in both the on trade
and off trade with lion’s share of sales .

 Carbonates become part of the culture in Pakistan and multinational companies have
maintained their standards over the year to provide consumers with high quality carbonated
drinks . Off traded sales of the carbonates are higher than those of the on trade but both
achieved strong growth review period. It shows that the product quality of a company is good.

2-Weaknesses:

 The main weakness of the company that it has a aggressive competition with Pepsi. Pepsi is the
biggest rival of Coca-Cola. Had it not been Pepsi, Coca-Cola would have been the clear market
leader in the beverage .

8
 Liquid concentrate and power concentrate are both seasonal categories in the market and their
sales peak in the summer in Pakistan . Both rooh afzah and jam e shirin are traditional.

 Sandalwood drinks in Pakistan which are highly regarded by the consumers. These drinks can be
found in every home of Pakistan, especially in rural areas throughout the summer and are the
mainstay of liquid concentrates.

 In 2022,Pakistan experienced some challenges as in political unrest, an economics crises , and


destructive floods, a declining currency that affects the company.

3-Opportunity :

 With the growing health consciousness among consumers, there is a rising demand for
healthy beverages. Coca-Cola can leverage this opportunity by introducing more healthy
beverages in its product line .

 The government of Pakistan also reduced other applicable taxes to promise more profit not
only for soft drinks manufactures already in the market but also to attract potential soft
drinks manufactures to invest in Pakistan . The government also decided to tax the
beverage industry on capacity of production rather than on actual production.

 Coca Cola beverages has asked the Federal Board of Revenue to reduce Federal Excise Duty
(FED) on beverages from 20% to 16% in the next year’s budget.

4-Threaths:

 Governments around the world are imposing stricter regulations on the beverage industry. This
could impact Coca-Cola’s operations and profitability

 With the growing health consciousness among consumers, there is a rising concern about the
health effects of soft drinks. This could impact Coca-Cola’s sales and profitability .

 Increasing health and hygienic awareness in Pakistan has greatly increased sales of
fruit/vegetables juice products. Both the government and the media have started health
awareness campaigns to make Pakistans realize that consumption of fruit vegetables juice is as
essential as eating food.

9
 On the other hand , health and hygienic awareness has also led to increased sales of bottle
water in Pakistan . Previously bottled water was Targeted on at major cities where consumers
are more health- conscious and aware of the difference between bottled water and tap water .

 Strength  Weakness
 Brand  Competition
growth  Challenges
 Good quality

 Opportunity  Threats
 Tax  Health
reduction conscious
 Healthy  Regulations
beverage’s

Environmental analysis:

The external environmental of a company tells us about the political, economical , sociological ,
technological , environmental, legal Analysis of a company.

 Political analysis

Government regulations and policies:

These regulations can include food and beverage safety standards, labeling requirements, taxes, and
advertising restrictions. Changes in these policies can affect the company’s operations, profitability, and
market share.

10
Political stability:

The political stability of the countries where Coca-Cola operates directly impacts its business. In unstable
regions, conflicts or tensions can disrupt supply chains, limit market access, or pose risks to the
company’s assets and personnel. Coca-Cola needs to continually monitor and adapt to the changing
political landscapes in its markets to minimize potential risks.

Trade agreements and barriers:

Coca-Cola’s global presence means it is highly dependent on international trade. The company must
navigate trade agreements, tariffs, and import/export regulations to maintain its competitive edge.
Changes in trade policies, such as the imposition of tariffs or the establishment of new trade
agreements, can impact Coca-Cola’s costs, supply chains, and market access.

Lobbying and political contributions:

Like many large corporations, Coca-Cola engages in lobbying activities and political contributions to
influence government policies and regulations in its favor. The effectiveness of these efforts can shape
the business environment and regulatory landscape for Coca-Cola.

 Economics analysis

Economic growth:

The overall economic growth of countries where Coca-Cola operates affects the company’s sales and
profitability. In periods of economic growth, consumer spending tends to increase, leading to higher
demand for products like Coca-Cola. Conversely, during economic downturns, consumers may cut back
on discretionary spending, which can result in decreased sales for the company.

Month volume price

October 21.19m 54.08

October 25.29m 55.64

October. 13.62m 55.24

November 16.64m 56.49

November 13.08m. 57.09

11
November. 12.67m 56.97

November 12.02m 56.66

Inflation and interest rates:

price
57.5
57
56.5
56
55.5
55
54.5
54
53.5
53
52.5
21.19m 25.29m 13.62m 16.64m 13.08m 12.67m 12.02m
October October October November November November November

price

The annual inflation rate in Pakistan accelerated to a four month high of 31.4% in September 2023
from 27.4%

Inflation and interest rates can influence Coca-Cola’s operational costs, borrowing costs, and investment
decisions. High inflation can lead to increased input costs, such as raw materials and labor, affecting
Coca-Cola’s profitability. Similarly, high-interest rates can increase the cost of borrowing, impacting the
company’s capital structure and investment decisions.

Unemployment rates:

Unemployment rates can affect consumer purchasing power and overall demand for Coca-Cola’s
products. High unemployment rates may lead to reduced consumer spending, while low unemployment
rates can increase disposable income and boost demand for the company’s products.

Consumer preferences and trends:

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Economic factors can also influence consumer preferences and trends, affecting the demand for Coca-
Cola’s products in Pakistan. Because every country has its trends.

 Sociocultural analysis

Consumer preferences and tastes:

Coca-Cola needs to understand the preferences and tastes of consumers of Pakistan to ensure its
products appeal to a diverse audience. This includes offering a variety of beverages, such as carbonated
soft drinks, juices, and bottled water, as well as tailoring flavors and formulations to suit local
preferences.

Health consciousness:

Increasing health consciousness among Pakistani consumers has led to a growing demand for healthier
beverage options. This has led Coca-Cola to expand its product portfolio to include low-sugar, sugar-
free, and non-carbonated alternatives, such as diet sodas, bottled water, and sports drinks, to cater to
health-conscious consumers.

Lifestyle trends:

Changing lifestyle trends, such as an increased focus on wellness, sustainability, and social responsibility,
can impact consumer preferences and the demand for Coca-Cola’s products. The company must
continuously adapt its marketing strategies, packaging, and product offerings to align with these trends
and consumer expectations.

Demographics:

Demographic factors, such as age, gender, and population growth, can impact the demand for Coca-
Cola’s products. The company needs to understand and cater to the needs of different demographic
groups to ensure its products remain relevant and appealing.

Cultural and religious considerations:

Coca-Cola operates in diverse markets with varying cultural and religious norms. To maintain a positive
brand image the company should must be know about the Pakistan culture and avoid cultural
insensitivity. This includes adapting marketing campaigns, product packaging, and even formulations to
suit each market’s cultural and religious requirements.

13
 Technological analysis

Automation and Industry 4.0:

Coca-Cola can benefit from adopting advanced automation, robotics, and artificial intelligence
technologies to improve its manufacturing, warehousing, and distribution processes. These technologies
can enhance efficiency, reduce production costs, and respond faster to market demands.

Digital marketing and social media:

The rise of digital marketing channels and social media platforms has transformed the way companies
interact with their customers. Coca-Cola must develop and execute effective digital marketing strategies
to maintain brand visibility, engage customers, and promote its products in a highly competitive market.

E-commerce and online sales:

With the growth of e-commerce, Coca-Cola must adapt its sales and distribution strategies to cater to
the increasing demand for online shopping.

Big data and analytics:

Coca-Cola can leverage big data and analytics to gain insights into consumer preferences, market
trends, and operational performance.. This can help the company make data-driven decisions, and
enhance its supply chain efficiency.The market share in Pakistan is as :

Sustainable technologies: Coca-Cola needs to invest in sustainable technologies to address


environmental concerns and meet consumer expectations for eco-friendly products. This includes
adopting energy-efficient equipment, reducing water consumption, and using sustainable packaging
materials.

 Environmental analysis

Water management:

As a beverage manufacturer, Coca-Cola relies heavily on water as a key resource for its operations. The
company must address water scarcity concerns, reduce water wastage, and improve water efficiency
throughout its supply chain to ensure long-term sustainability and meet environmental regulations.

Waste management and recycling:

14
Coca-Cola produces a significant amount of packaging waste, including plastic bottles, aluminum cans,
and cardboard boxes. The company must invest in waste reduction and recycling initiatives, such as
using more eco-friendly packaging materials, promoting recycling programs, and supporting circular
economy efforts.

Energy consumption and carbon emissions:

Coca-Cola’s manufacturing, transportation, and distribution processes consume energy and contribute
to greenhouse gas emissions. The company must focus on reducing its energy consumption, adopting
renewable energy sources, and implementing strategies to lower its carbon footprint to meet regulatory
requirements and consumer expectations. To make the environment in Pakistan clean there should be
necessary to use the strategies.

Climate change:

Climate change can impact Coca-Cola’s operations and supply chain, from raw material sourcing to
transportation and distribution. Because Pakistan has its own climate and change by the time. The
company needs to assess its vulnerability to climate-related risks, such as extreme weather events or
changes in agricultural productivity, and develop strategies to mitigate these risks.

Biodiversity and habitat conservation:

Coca-Cola must ensure its operations and supply chain do not contribute to habitat destruction or harm
biodiversity. This includes responsibly sourcing raw materials, such as sugar, and supporting sustainable
agriculture practices to minimize environmental impact.

 Legal analysis:

Food and beverage regulations:

Coca-Cola operates in numerous countries, but operating in pakistan its has own set of food and
beverage regulations, including safety standards, labeling requirements, and ingredient restrictions. The
company must comply with these regulations to maintain its licenses and avoid penalties, product
recalls, or damage to its reputation.

Advertising and marketing laws:

Coca-Cola’s advertising and marketing campaigns are subject to various laws and regulations in different
in Pakistan , such as restrictions on targeting specific age groups, using certain claims, or promoting

15
unhealthy lifestyles. The company must ensure that its campaigns adhere to these regulations to avoid
legal issues and potential backlash.

Intellectual property protection:

Coca-Cola must safeguard its intellectual property, including trademarks, patents, and trade secrets, to
maintain its competitive advantage and prevent unauthorized use of its brand, formulas, or proprietary
technologies. This involves registering and enforcing its intellectual property rights in various
jurisdictions.

Labor laws and employment regulations:

Coca-Cola employs a large workforce and employment regulations. This includes fair wages, working
hours, health and safety standards, and non-discrimination policies. Failure to comply with these
regulations can lead to legal disputes, fines, and damage to the company’s reputation.

Antitrust and competition laws:

Coca-Cola operates in a highly competitive market and must adhere to antitrust and competition laws
to ensure fair market practices. This includes avoiding anti-competitive behaviors, such as price-fixing,
market manipulation, or monopolistic practices, which can result in legal actions and penalties.

Market segmentation & Targeting:


The three main steps for a brand are Segmentation, Targeting and Positioning. Without these a brand
can’t survive on a long run. So, its important for the brands to make market segmentation, target the
right consumers and than positioning the brand through different ways.

16
Coca-Cola is a global beverage company that has been successful in its marketing approach by
effectively catering to its target customer.

There are four market segmentations such as geographic, demographic, psychographic and behavioural
segmentation.

GEO-GRAPHIC SEGMENTATION:

Climate:

The Coca-Cola company targets the hottest regions of Pakistan, and their sales are also higher in
summers as compare too in winter.

Locally:

17
Pakistan’s cities and suburbs are the Coca-Cola company’s main focus. Their lack of attention to rural
areas is due to fact that Punjabi beverages, such as sugar-cane juices, are a strong rival to Coca-Cola. The
second major cause is inadequate infrastructure.

Urban population now constitute 35% of the total population of the country. The migrating families not
only have a comparatively higher income but are also eager to adopt to the new city life. This is where
Coca-Cola can jump in and expand its operations.

DEMO-GRAPHIC SEGMENTATION:
Age:

Coca-Cola company is mainly targeting younger than elders from age 13-25 or 25-40 years.

percentage

1 to 12 12 to 25 25 to 40 40 to 60

Family type:

Economy packs were introduced for large gathering with family. Small bottles meant for one or two
people were also introduced. They also concentrate on newly weds who live alone.

The employment profile of the Coca-Cola audience includes students, employees and professional
alikes.

Income:

18
There is a high ratio of middle class families. By observing their ratio, Coca-Cola set its price. So that
everyone can buy it.

 For small income people it has small returnable glass bottle.

 For middle income people it has small non-returnable bottle.

 For higher income people it has coke tin.

Minorities:

They also target ethnic minorities who have immigrated to Pakistan, such as Hindus, Christians, and
Parsies. They also concentrate on foreign consumers who favor Coca-Cola because of its greater fizz.

Religion:

They very concentrate on the religion. So everyone can drink it without any hesitation. They made
bottles alcoholic free.

PSYCHO-GRAPHIC SEGMENTATION:

Social class:

Coca-Cola company primarily targets middle-class and upper-class consumers. Moreover, they also
largest working-class people.

Lifestyle:

The target audience tends to fall into the categories of explorer, aspirer and succeeder.

BEHAVIOURAL SEGMENTATION:

Occasion:

On occasions, sales of Coca-Cola also increase. There must be at least one coke on every occasion like
family friends gathering and on different functions and events.

The credit for making celebrations available for almost everyone largely goes to Coca-Cola company.

19
 Views regarding its products.

 Awareness and knowledge of their products.

 They ought to know how to utilize this product.

User status:

They target consumers based on their user status like regular users, occasional users or non-users.

Most marketers treat the behavioural variables such as excellence starting points for formulating market
segments.

Target market:

Coca-Cola target market is broad and varied, the company tend to focus its marketing efforts on certain
demographic groups, such as young people and families. The typical Coca-Cola consumer demographics
are extremely broad in age, from younger through middle-aged, who can relate to the well-defined
Coca-Cola brand identity that promises a vibe of youthfulness, fun, adventure, and authenticity.

The Coca-Cola target consumer is both male and female, covering almost the entire socio-economic
spectrum, from average to high-income earners.

Market Segmentation Targeting Positioning Percentage

-Thirst-quenching
and refreshing
products

Geographic -Promotes
happiness and
positivity for every
drink

Region Domestic 80%

20
International 20%

Urban 65%
Density
Rural 35%

Demographic

Age 10-40 70%

Gender Males and females 50%

15%
Bachelor,

singles not living at home, newly


Life-cycle stage 20%
married couples
25%
,Full Nest I and II
40%

40%

Average,

Income above average, 30%

high-income earners

30%

25%
Professionals,

Occupation students,
30%
employees

21
45%

Behavioral

55%
Hard-core
Degree of loyalty
soft-core loyals
45%

30%

Refreshment,
25%
satisfaction of habit,
Benefits sought
enjoying the good taste,
25%
spending time with people

20%

User status Regular users 80%

40%

Easygoing,

Personality ambitious, 30%

determined

30%

Psychographic

Working, 50%

Social class middle,

upper classes 30%

22
20%

25%

Explorer,

Lifestyle aspirer, 35%

succeeder

40%

GENDER
Coca-Cola segments
the Pakistani market
with a percentage AGE
ratio of 58% It ranges from the
females and 42% male age of 15-25 and
s. reaches 40.

NATURE
SOCIO-ECONOMIC STATUS
Fun and
Upper lower &
Entertainment-loving.
Lower class

23
Brand Positioning:

Brand positioning is a strategic process of establishing a unique and distinctive position for a brand in
the minds of consumers. It includes determining a target market category, target audience, brand
differentiation, brand personality and brand identity, pricing strategy, and more.

Coca-Cola strategically positioned itself within the world's soft drink market. The brand understood this
principle a while ago: "Think global, act local". They use strategic to have the same image all around the
world. Coca-Cola has been successful by using a Unique Selling Preposition as "Live the
coke side of life".

4 main factors that define a brand position are as follows:

 Brand Features

 Competitor Attributes

 Price

 Consumer perception

Brand Features:

Following are some brand features of Coca-Cola:

 Logo and Visual Identity: Coca-Cola is known for its iconic red and
white logo

 Slogans and Taglines: Coca-Cola changes its taglines and slogans often. Some
of them in Pakistan includes, “Hum Aik Hain”, “Coca-cola khulay to Dil khilay”,
“Maza har lamhay ka, Coca-Cola”, “Shadi aur Hum, Zaalima Coca-Cola pila
dey!”, “Jahan Dil Milen, Wahan Coca-Cola”, “Din ka best part, Coca-Cola k
sath”.

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 Packaging Style: Coca-Cola goods are packaged to be
visually appealing and instantly recognizable.

 Product Range: Coca-Cola provides a wide variety of products, including Coca-Cola Classic, Diet
Coke, Coca-Cola Zero Sugar, and other flavor alternatives.
Regional differences may exist in these items' availability.

Competitor Attributes:

Competitor attributes refer to the characteristics, qualities, and strategic elements that define and
distinguish a company from its competitors in a particular market or industry.

Competitors of Coca-Cola in Pakistan:

 Pepsi Cola

 Gourmet Cola

 Royal Cola

 Amrat Cola

 Big Cola

 Mecca Cola

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Market Share:

Coca-Cola now claims 35% of all cola sales in Pakistan.

Pricing Strategies:

In Pakistan, Coca-Cola's pricing strategies involve consideration of local economic conditions, consumer
purchasing power, and competitor pricing.

The price varies in different countries. Coca-Cola maintains its prices according to upper middle class of
society in Pakistan for lower upper class and upper middle class the prices aur affordable. The price
varies according to its Packaging.

Consumer Perception:

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Consumer perception plays a major role in the perception of the
consumer. Secondly, taste and quality also matters. Advertising plays a
great role in it.

Some examples of Advertising are:

Billboards: Banners and billboards of Coca-Cola are placed all over the
city for advertisement purpose.

Sales promotion: Coca-Cola does its sale promotion through various platforms but in Pakistan, “COKE
STUDIO” is one of the biggest platforms.

Marketing Mix:

Marketing mix also known as the four P’s, is a set of tactical marketing tools blended into an integrated
program that actually engages targeting customers and delivers the intended customer values. It is a set
of marketing tool that firm blends to produce the response it wants in the target market. The marketing
mix consists of everything a firm can do to engage consumer and deliver customer values. The many

PRODUCT PRICE

PLACE
PROMOTION

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possibilities can be collected into four groups of variables-the Four P’s i.e. Product, Price, Place and
promotion.

The coca-cola company effectively blends these marketing tools to create the response it wants in the
target market.

Product:
The product is the goods-and-services combination the company offers to the target market. The Coca-
Cola Company offers a wide range of products to its customers, targeting each segment of the market.

Sparkling:  Fuze Tea


 Gold Peak
 Coca Cola
 peace Tea
 Diet Coke
 Fanta Sprite Juices and dairy:

Hydration  Fair Life


 Innocent
 AHA
 Minute Maid
 Body Armor
 Simply
 Dasani
 Powerade Alcohol:
 Smart Water
 Fresca Mixed
 Topo Chico
 Jack Daniel’s & coca cola
Coffee & Tea  Simply spiked
 Topo Chico Hard Seltz
 Costa Coffee
However, In Pakistan it offers:

 Coca Cola  Fanta


 Coca Cola Diet  Dasani
 Sprite, Sprite zero  cappy.
 Sprite mint

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Price:
Price is the amount of money customer must pay to obtain the product. The Coca-Cola Company sets its
price different for all its marketing segments. Such as the price list of cola-cola company is as follows:

The company's marketing mix is based on a price discrimination strategy. The strategy enables the
business to charge different rates for its goods in different markets. Coca-Cola's different price points
are typically determined by the type of consumption. Therefore, the pricing power depends on a
number of factors, such as location and product usage. Coca-Cola typically offers its products at a lower
price than its rivals when it tries to enter a new market, especially one where consumers are price-
sensitive. By the time it has established itself in the new market, it uses a number of promotional
campaigns to reposition its strategy as a premium brand.

Coca Cola Product Price in Pakistan (Rs.)

Coca Cola Diet 500ml Rs. 90

Coca Cola Soft Drink 1.5 Litre Original Rs. 160

Coca Cola 2.25L Pack of 6 Rs. 1,080

Coca Cola 350ml Original Taste Rs. 59

Coca Cola 2.25 Litre Original Rs. 250

Coke Diet Can Pack 24x300ml Rs. 1,400

Place:
Another component of marketing mix is price. Place includes companies activities to make the product
available to its target consumer. In this case, the place is essentially the channel of distribution that
Coca-Cola uses to get its products to market; the company's products are primarily found in grocery
stores, retail stores, and online stores. When consumers have a choice between several options, the
place utility plays a significant role in helping them make that decision.

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 Retail stores
 Grocery stores
 Online stores: such as Daraz, Amazon etc.
 Movie theatres
 Resturants
 Schools, colleges and universities
 Airports

Promotion:
Since there is fierce competition in the soft drink sector, most businesses invest a significant sum of
money in many commercials and other marketing campaigns. Coca-Cola reported spending $4 billion on
marketing in 2016 and $4.1 billion in 2018.

Additionally, the corporation launched the Taste the Feeling marketing campaign in 2016, which
represents an important change from its prior strategy. Coca-Cola has increased the reach of its
advertisements on multiple social media platforms in addition to television and outdoor efforts. With
digital marketing being one of the more contemporary means of product promotion, the company uses
its social media accounts to interact with customers and to establish connections with fans and
followers.

Customers can watch more over 1,250 promotional videos on its official YouTube account. Coca-Cola
wants to use its social media platforms to improve its business reputation as the competition gets more
fierce.

Digital marketing has undoubtedly had a big impact on modern marketing, but Coca-Cola has also been
constant in its marketing strategy over the years with its promotional efforts. They never stray from
their core philosophy of happiness, which they convey to their clients. The corporation runs a variety of
campaigns, but it never forgets to include the overarching idea from its past into every single one of
them.

Coca-Cola makes investments in sustainability and corporate social responsibility in addition to its core
promotional advertisements in order to create a manufacturing network and supply chain that is
sustainable.

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Consumer behavior analysis:

Consumer behavior analysis refers to the buying behavior that consumer show while buying a product
or service to fulfill their needs and wants.

Consumer always seek satisfaction while purchasing goods. In the whole marketing strategy the
consumer buying behavior is the most the most important strategy. As the ultimate goal of organization
is to target their customers/consumers. Buying behavior studying the various factors like cultural, social,
personal and psychological.

By understanding buying behavior coca cola can tailor their marketing strategies to better meet the
needs and desires of their target audience.

Consumer behavior model:

Consumer behaviors model defines the key elements needed to understand consumer buying behavior.
Consumer
Psychology
Purchase
Motivation
Perception Buying Decision Decision
Learning Process
Marketing Other
Memory
Stimuli stimuli Product choice
Consumer Brand choice
Product & Economic Characteristics Problem Dealer choice
services Technological
recognition Purchase
Price Social Culture
information amount
Distribution culture Social
research Purchase timing
Communication Personal
Evaluation of Payment method
alternative
Purchase
decision
Post-purchase
behavior

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Factors affecting consumer behavior:

Consumer behavior depends upon some factors Like cultural, social, personal and psychological.

Factors

Cultural Social Psychological Personal

 Cultural factors:

Cultural factors influence the buying behavior of consumers.

Cultural factors are subdivided into

 Culture:

Culture refers to the values, width, customs and traditions generally accepted by a society. This refers to
the ideas and behavior of s particular society.

 Subculture:

Subculture refers to a smaller group with a longer culture that shares distinctive characteristics, values,
beliefs and behavior. Subculture is the further division of culture.

 Social Classes:

Social classes are society's relatively permanent and ordered divisions whose members share similar
values, interests and behaviors. Social classes are divided into upper-upper class, lower-upper class,
upper-middle class, middle class, working class, upper-lower class and lower-lower class.

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If we talk about the cultural affect on consumer behavior towards coca cola. Coca cola has become a
part of our culture. The use of coca cola has significantly increased in Pakistan. Especially coca cola has
deeply ingrained. No matter if it’s the occasion of Eid, Wedding ceremony, cultural events, birthday
celebrations, Coca cola is emotionally associated with all these events.

But because we are talking about culture there are also some subcultures in Pakistan who prefer their
cultural drinks rather than the carbonated drinks. People of Pakistan who belong from Sindh, Kpk and
balochistan are sticked to their culture. Moreover, social classes have also an impact on consumer
behavior. People of upper class, upper middle class and middle class more likely to prefer these kind of
drinks, Whereas, lower class and lower middle class do not prefer. Thus, Social classes also affect
consumer buying behavior.

 Social Factors:

A consumer behavior is dependent on social factors such as consumer small groups and social networks,
family, social roles and status.

 Groups and social networks:

Many small groups influence a person's behavior.

Groups having direct influence and to which a person belongs are called membership groups.

Aspirational groups are the groups to which a person wants to belong idealizes that groups. On the
other hand, Reference groups are the groups that are often used as reference. People seek
recommendations from them.

 Family:

Family is the most important consumer buying organization in society and family members are the most
influential primary reference group.

 Social Roles and status:

Person belongs to many groups family, clubs, organizations etc. The person's position in each group is
defined as their role and status. A role is a set of responsibilities a person is expected to perform.

The above Social factors influences the consumer behavior towards coca cola. Family units and its
preferences significantly affect consumer behavior. For example, number of family members may

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influence the quantity and also the intentions of buying the product or not because of the influence of
decision maker when it comes to purchase of beverages like coca cola. Coca cola is a popular and widely
recognized brand. The association with coca cola can contribute to perception or status.

 Psychological Factors:

There are four main psychological process affect consumer behavior include motivation, perception,
learning and memory.

 Motivation:

Motivation is defined as the willingness to do something. Motivation refers to the internal or external
factors that drive and influence our behaviors and actions. It can be described as the desires or reason
behind our actions.

 Perception:

Perception refers to how we interpret and make sense of the information that we receive through our
senses. How the motivated person actually acts is influenced by his or her view or perception of the
situation.

 Learning:

Learning involves changes in an individual's behavior arising from experiencing. Learning is produced
through the interplay of drives, stimuli, cues, responses etc.

 Memory:

All the information and experiences individuals encounter as they go through life can end up in their
long term memory.

Psychological factors influences the buying process significantly. Coca cola through its marketing
strategy motivated people a lot to buy their products. People have created a perception about them
which is plus point. When people purchase coca cola the go through an experience of taste which
remains refresh in their memory.

The slogans of coca cola motivates people to buy it.

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 Personal factors:

A buyer's decision is also influenced by personal characteristics. These include buyer age, occupation,
economic circumstances, personality, self concept and lifestyle.

Consumer behavior towards coca cola is also affected by these factors. The age of buyer matters a lot as
in market segmentation and target market coca cola prioritized the age factor. Coca cola specifically
target a specific age groups. Occupation and economic circumstances influences the buyer's intentions
too. The personality of the person, self concept and his/her lifestyle hold a special place in consumer's
behavior. If a person is not attracted to carbonated drinks he won’t prefer coca cola too. That's how
personal factors affect the consumer behavior towards coca cola.

Buying decision process:

The basic psychological processes play an important role in understanding hoe consumers actually make
their busying decisions.

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Problem
rcognition

Information
search

Evaluation of
alternatives

Purchase
decision

Post purchase
behavior

Problem recognition:

This is when a consumer realizes they have a need or desire for a particular product.

Information search:

The consumer then gathers information about different options to meet their needs. This can involve
researching online, seeking recommendations or comparing products and prices.

Evaluation of alternatives:

After gathering information. The consumer evaluates the differet options available, considering factors
such as quality, price, features and brand reputation.

Purchase decision:

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Once the evaluation is complete, the consumer makes a decision to purchase a specific product or
service.

Post-purchase Evaluation:

After the purchase, the consumer evaluates whether their expectations were met or exceeded. This can
influence future purchasing decisions and their perceptions of the brand.

Following Questions and analytics represent the con (Nakmongkol, 2009)sumer buying behavior.

Q1: "Coca cola is consistent with offered quality."

Strongly Disagree Disagree Not Sure Agree Strongly Agree

14 19 31 43 22

Q2: "Coca is a brand I would enjoy."

Strongly Disagree Disagree Not Sure Agree Strongly Agree

14 21 17 43 34

Q3:" Coca cola is dependable brand."

Strongly Disagree Disagree Not Sure Agree Strongly Agree

27 14 31 38 19

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Recommendations:
Diversifying portfolio: Introduce more healthy beverages

In response to the growing global trend towards healthier lifestyles and the increasing demand for
nutritious beverage options, it is important for Coca-Cola to diversify its product portfolio by introducing
more healthy beverages.

 The Shifting Landscape of Consumer Dietary Consciousness: Consumers are becoming


increasingly conscious of their dietary choices, emphasizing wellness and seeking alternatives to
traditional sugary drinks.
 Growing Market: By expanding its range of healthier options, such as low-calorie, sugar-free, or
functional beverages, Coca-Cola can tap into this growing market segment and align itself with
the evolving preferences of health-conscious consumers.
 Positive Brand Image & Long-Term Customer Loyalty: Introducing innovative and nutritionally
enhanced products not only caters to current consumer trends but also positions the company
strategically for future market dynamics. Embracing a healthier product line not only addresses
changing consumer needs but also demonstrates a commitment to corporate social
responsibility, contributing to a positive brand image and fostering long-term customer loyalty.

Strategic Market Penetration: Improving Marketing mix

Coca-Cola should strategically focus on penetrating the market in Pakistan Coca-Cola has the potential
to solidify its position and capture the loyalty of the diverse and dynamic consumer base in Pakistan.
With a well-established brand presence globally, the company possesses the brand recognition
necessary to make a significant impact in the Pakistani market. By tailoring marketing strategies to
resonate with local preferences and cultural nuances, Coca-Cola can create a more profound connection
with consumers.

 Offering Discounts: To successfully penetrate the Pakistani market, Coca-Cola should


strategically implement promotional tactics, including offering discounts, to create a more
attractive value proposition for consumers. In a price-sensitive market like Pakistan, where

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consumers are keenly aware of their spending, discounts can serve as a powerful incentive to
drive initial trial and repeat purchases.
 Special Promotional Bundles: Additionally, considering the cultural significance of gatherings
and celebrations in Pakistan, Coca-Cola could introduce special promotional bundles or limited-
time offers tailored to festive seasons.
 Expand Distribution Channels: Increase the availability of Coca-Cola products by expanding
distribution channels to reach more rural areas. Focus on enhancing accessibility through local
retailers, convenience stores, and online platforms.

Develop New Markets: Stepping into Rural Markets

To ensure sustainable growth, The Coca-Cola Company should strategically focus on developing new
markets for its existing product portfolio, with particular attention to untapped opportunities in rural
areas.

 Opportunity: While the urban market remains crucial, expanding into rural regions presents a
significant growth avenue. The company's iconic beverages already enjoy widespread
recognition, and penetrating rural markets can capitalize on the aspirational appeal associated
with global brands.
 Increasing market share and economic development: By leveraging its extensive distribution
network and implementing localized campaigns, Coca-Cola can not only increase market share
but also contribute to economic development in rural areas. The potential for long-term success
lies in recognizing and addressing the specific needs and preferences of consumers in these
untapped regions, ensuring that Coca-Cola remains a beverage of choice for a diverse and
expanding demographic across both urban and rural landscapes.
 Tailoring strategies and Affordability: The Coca Cola Company should Tailor its marketing
strategies to resonate with the unique cultural and socio-economic characteristics of rural
communities is essential. Adjust pricing strategies to make Coca-Cola products more affordable
for consumers in rural areas. Implementing cost-effective distribution networks and ensuring
widespread availability through local retailers can enhance accessibility.

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Product Development: Offering new range of beverages

Developing new products for existing markets is a strategic imperative for The Coca-Cola Company to
sustain its market relevance and stimulate growth.

 Maintaining a competitive edge: In addition to meeting changing consumer demands,


introducing new products can also serve as a means to diversify the brand's offerings and
maintain a competitive edge in the market. The beverage industry is dynamic, and consumer
preferences can shift rapidly. By staying proactive in product development, Coca-Cola can
position itself as an industry leader, demonstrating a commitment to innovation and adaptation.
 Increasing Market Share: Whether it's introducing healthier beverage options, exploring unique
flavors, or tapping into specific cultural preferences in Pakistan, the company has the potential
to capture a broader share of the market and enhance overall customer satisfaction.
 Customer Loyalty: By continuously innovating and expanding its product line, Coca-Cola can
reinforce its presence in existing markets, strengthen customer loyalty.

Strategic Partnerships:

Strategic partnerships play a pivotal role in Coca-Cola's efforts to refine its marketing mix in Pakistan. By
collaborating with local celebrities, influencers, and sports teams, Coca-Cola can leverage the power of
endorsements to enhance brand visibility and resonate with diverse consumer segments

 Collaborations with local restaurants and food chains allow Coca-Cola to integrate its products
seamlessly into culinary experiences, offering unique beverage pairings and limited-edition
menu items. Partnerships with e-commerce platforms facilitate greater accessibility, enabling
Coca-Cola to reach consumers in even the most remote areas.
 Optimizing Supply Chain: Forge partnerships with local businesses or distribution networks to
optimize supply chain efficiency and ensure a consistent and widespread presence throughout
the country.

Innovative Promotional Strategies

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In order to elevate its promotional efforts in Pakistan, Coca-Cola can strategically leverage a
combination of digital marketing and localized campaigns.

 Connecting with younger demographic: By intensifying its presence on social media platforms
and collaborating with local influencers, the company can effectively connect with the younger
demographic, which is a significant consumer base.
 Forster Sense of Community: Creating engaging and shareable content that resonates with local
culture and traditions will not only enhance brand visibility but also foster a sense of community
among consumers. Special attention should be given to festivals and events, where Coca-Cola
can run targeted promotions and campaigns that align with the cultural significance of these
occasions.

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Conclusion:

In conclusion, our analysis of Coca-Cola's marketing in Pakistan highlights the importance of adapting to
local preferences and embracing innovative strategies. By focusing on digital marketing, strategic
collaborations, and product diversification, Coca-Cola can better connect with the diverse Pakistani
consumer base. The recommendations emphasize the need for cultural relevance, affordability, and
accessibility in the marketing mix. As Coca-Cola navigates the dynamic landscape of Pakistan's beverage
industry, a commitment to continuous market research and flexibility in approach will be key to
sustaining and growing its market share. The insights provided serve as a guide for Coca-Cola to not only
meet but exceed the expectations of Pakistani consumers, ensuring a refreshing and enduring presence
in the market.

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