Case Study Analysis of Brannigan Foods: Strategic Marketing Planning - HBR

8/9/2019 Case Study Analysis of Brannigan Foods: Strategic Marketing Planning - HBR

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By Abdul Moiz, Tooba Iqbal, Delshad Karanjia, Syed Faizan

Abbas.

STRATEGICMARKETINGPLANNING

Submitted to Mr. Ekhlaque Ahmed


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Executie Summar!

The report is about the Coca-Cola Pakistan now knows as Coca-Cola Beverages Pakistan

Limited, the report is about the extensive findings of the company since its inception in Pakistan

which comprises of Business cope, !xternal "nalysis, #nternal "nalysis and development of a

trategic $arketing Plan% #t gives an overview of the Beverage #ndustry in Pakistan and specially

the ready to drink market which ma&or chunk belongs to carbonated soda drink market% The

different method of !xternal and #nternal "nalysis helped us to formulate the action plan' the

report is based on material information as well as some parts are also developed on the basis of

assumption due to non-availability and confidentially of the information%

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Table o# Co$te$t%

&. 'eera"e I$du%tr! i$ Paki%ta$((((((((((((((((((((((((((()*+. CS, I$du%tr! i$ Paki%ta$((((((((((((((((((((((((((((((()-. The Coca/Cola Com0a$!((((((((((((((((((((((((((((((()12. Coca/Cola 'eera"e% Paki%ta$ Limited(((((((((((((((((((()3*. 'u%i$e%% Sco0e(((((((((((((((((((((((((((((((((((((()&4-. Exter$al A$al!%i%((((((((((((((((((((((((((((((((((((()&+1. Market Structure((((((((((((((((((((((((((((((((((((()&+5. Market Si6e((((((((((((((((((((((((((((((((((((((((()&3. Product Li#e C!cle(((((((((((((((((((((((((((((((((((()&*&4.Com0etitio$7Se"me$t Matrix((((((((((((((((((((((((((()&-&&.Exter$al 'u%i$e%% 8actor%(((((((((((((((((((((((((((((()&1&+. Com0etitio$ A$al!%i%((((((((((((((((((((((((((((((((()+&

&.,i%tributio$ Share a$d Com0a$!9% Po%itio$((((((((((((((()++&2.Exter$al Tre$d%((((((((((((((((((((((((((((((((((((()+&*.I$ter$al A$al!%i%(((((((((((((((((((((((((((((((((((()+-&-.S:;T((((((((((((((((((((((((((((((((((((((((((()+-&1.Co$#ro$tatio$ Matrix(((((((((((((((((((((((((((((()+*&5.Relatie Im0orta$ce 8actor%(((((((((((((((((((((((()+1&3.Rati$" A"ai$%t Cu%tomer 'u!i$" Criteria(((((((((((((()+5+4.Im0act o# I%%ue% o$ Strate"ic Pro


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First of all, we’d like to thank ALLAH SWT for giving us the strength to carry on this project

and for blessing us with many great people who have been our greatest support in both personal

and professional life.

We also take this opportunity to express our profound gratitude and deep regards to our course

instructor & mentor r. !khla"ue #hmed for his exemplary guidance, monitoring and constant

encouragement throughout the course of $trategic arketing %lanning.

We’d also like to thank specially r. ilal %arekh former auditor at ''%( and the entire

''%( crew who supported specially s. )shba *aseer +$-.

Letter o# Tra$%mittal

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,ear Mr. Ekhlaque Ahmed

We’d like o in!or" you ha as #er require"en o! ourSM$ %ourse &e &ere required o %o"#lee a re#or and

#resenaion on he 'Srae(i% Markein( $lannin() o! a%or#orae.

Workin( on his #roje% has been *ery insi(h!ul !or our #ra%i%al li!e as &ell as sudies. +our (uidan%e reallyhel#ed us o &ork ou on his re#or. +our !eedba%k &ill!urher enhan%e our %a#abiliies and redu%e he "issin(

areas in he re#or.

Si$cerel!>

Abdul Moi6> Tooba Iqbal> ,el%had Kara$@ia> S!ed 8ai6a$Abba%.&*&&+ &4215 &442* &&5-+

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'eera"e I$du%tr! i$ Paki%ta$

Beverage industry in Pakistan comprises of many different players that contribute to the industry

whether it is tea that isn(t in form of li)uid form or a milk drink out of these two, carbonatedsoda drinks stand on second level which contributes towards the beverage industry and there are

different set of competition is going on within the industry% The overall industry produces various

kinds of &uices, soft drinks, colas, syrups, milk and other beverages, with over *++ units across

Pakistan the amount of cases is estimated to between ++-++ $illion cases with an annual

growth of around .+-. per cent, has the potential to double its si/e in the next 0- years, if the

government1s taxation policies towards this industry are corrected% There are 02 beverage plants

in the country and this is one industry, which is very well organi/ed% 3ob oriented in nature, the

beverage industry employees over ++,+++ people directly and indirectly and also supports many

other up4down stream industries such as crown corks, glass bottles, plastic shells, sugar,

transport, advertising and media, P%!%T bottles, concentrates etc% due to this industry a huge

number of outlets4shops are supported to generate wide-spread economic activity in the country

Sale%

Tea CS, Buice% ;ther

The above chart doesn(t include non-formal products like lassi, satu, 5ooh "f/a etc%

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CS, I$du%tr! i$ Paki%ta$

#t won(t be wrong to say that the ma&or chunk of beverage industry in Pakistan is covered by Tea

followed by Carbonated oft drinks that include PepsiCo covering three different bottlingfranchises in Pakistan whereas the global leader Coca Cola operates directly under the name of

CCBPL 6Coca Cola Beverage Pakistan Limited7 owned by the bottling unit Coca Cola #cecek 8

Turkey, however there are some domestic competitors that rarely even make up the +%9 the

market share% PepsiCo is the leading producer and revenue generator in the field with over .*

plants across Pakistan divided into eight different franchises which include Pakistan Beverages

Pvt% Limited for indh region and Pun&ab Bottlers Pvt% Limited in Pun&ab, these two franchise

cover ma&or part of bottling and sales, in *+.* PepsiCo generated an aggregated revenue of

around 5s% :* Billion making Pepsi the largest food and beverage brand in Pakistan disclosed by

PepsiCo(s "sia region executive $r% ;asim aroo) Tirmi/i, Tribune, *+.*?

ince the inception of the Pakistan foreign investment was never a )uestion and both PepsiCo

and Coca Cola stepped in to cover the huge untouched market which had potential grow@

#n a recent interview $r% 5ia/ullah


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The Coca/Cola Com0a$!

>ounded in .::2, the Coca-Cola Company is the world(s leading manufacturer, vendor, and

distributor of nonalcoholic beverage concentrates and syrups% The company(s corporatehead)uarters is based in "tlanta, with local operations in over *++ countries around the world%

"lthough Coca-Cola was first created in the nited tates, it rapidly became popular wherever it

went% The first international bottling plants opened in .+2 in Canada, Cuba and Panama, soon

followed by many more% Today, Coca-Cola has a portfolio of more than 0,+++ beverages% Coca-

Cola has *,++ employees worldwide% $ore than D+ percent of our income comes from outside

the %%, but the real reason we are a truly global company is that our products meet the varied

taste preferences of consumers everywhere% =Coca Cola Company, *+.?

The company today in "tlanta is now absolutely limited to producing the concentrate, which is

licensed and sold to the partners of Coca-Cola, in the Coke language these partners are often

called Coca-Cola bottlers, these bottlers hold exclusive contracts with the company and are given

rights to produce and distribute in the specific countries and sometimes even in certain regions%

The product is developed by the concentrate which is highly secret and with fresh water and

sweeteners product is ready to reach the customers by certain channels of distribution% These

concentrates are sold for soda fountains to ma&or restaurants and food service providers across

the globe%

The Coca-Cola Company has eventually tried to introduce different type of Cokes over the years

which includes' Caffeine->ree Coca-Cola, Eiet Coke Caffeine->ree, Coca-Cola Cherry, Coca-

Cola Fero, Coca-Cola Ganilla, and special versions with lemon, lime or coffee% #n *+.0, Coke

products could be found in over *++ countries worldwide, with consumers downing more than

.%: billion company beverage servings each day%

Coca-Cola has always been under competitive edge globally, however there are some regions

where its market share is relatively low and PepsiCo have retained its huge market share% ince

the .::+(s both Coca-Cola and Pepsi have been under a cold war to get most sales across the

world and to build a distribution network that every land should be con)uered on this plant%

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Pepsi' *:9

Coca Cola' *9

Hther' 0+9

Global Market Share CSD

#n *+., Iasda) reported that Coca-Cola have won the war after snatching significant market

share of global carbonated soft drink market% =treet"uthority, *+.?

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Coca Cola 'eera"e% Paki%ta$Limited.

Coca-Cola came to Pakistan in .0% #nitially it was a different structure, now it is an altogether

new structure% #n the start the company had franchise bottling system in Pakistan% "s a part of its

drive to enhance the )uality, availability, and image of Coca-Cola products, The Coca-Cola

Company established a new Company in Pakistan in .2, by the name of 6Coca-Cola

Beverages Pakistan Limited7 =CCBPL or Company?% CCBPL is a part of Coca-Cola JKecek

which is sixth largest


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'u%i$e%% Sco0e

#n .0 Coca-Cola entered in Pakistan, after nine years of Pakistan(s inception to provide the

most popular beverage of that era that was Coca-Cola and also to fulfil their mission to refresh

the world and to create value and make difference and after 2+M years the Coca-Cola is ready to

complete its *+*+ vision% Iot only that Coca-Cola had introduced its new offerings in the face of

prite, >anta, $inute $aid,


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is less than 02 which means that most of the population belong to youngers and therefore it(s

easy to target them %

Nowever its seen that all over Pakistan be it young or old seems to be a market for Coca-Cola

and all sort of carbonated soda drinks, &uices and due to concern of water purity even providing bottled water is increasing and nor the customers are gender specific%

Value:

>rom time to time Coca-Cola in Pakistan have carried out improvements and in order to create

shared value that is in the best interest of their valuable customers they abolished franchising

system and instead centrali/ed due to the )uality and availability concerns, not only that Coca-Cola plants across Pakistan are considered one of the most modern bottling plants that provide

)uality beverage, within the span of *++-*+. the foreign investments worth + $illion were

deployed in order to facilitate Coca-Cola system in Pakistan%

Coca-Cola believes in implementing new technologies time to time in order to enhance customer

experience as well as making sure that the product is available%

Future:

Coca-Cola Pakistan has always looked forward to enhance its product line and in due course

Coca-Cola might invest more in order to create plants and enhance availability and visibility of

products%

There are new flavors of $inute $aid in pipeline whereas new flavors of new introduced >anta

might also be introduced looking forward at the maturity of the market% Nowever the flavored

coke introduction might not be possible nor Coca-Cola might bring its snacks or energy drink

units due to low profit margins%

Business e are not in:

Coca-Cola is specifically a beverage company and 9 of the products internationally belong to

beverage divided intro sparkling, still and water category all comprises of no alcohol and the

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,i%tributor%

Ke! Accou$t% Ma%% Trade

remaining part belongs snacks like Task iris etc% Therefore the company isn(t not outside the food

business%

Market Structure

Category CCBPL Pepsi

SparkingCoke S0rite

8a$taPe0%i 1u0Mari$da

Mou$tai$ ,e

StiMi$ute Maid

Ki$le!Slice Aqua


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Market Si6e Pa%t 2 Fear%

PKR / 'illio$%

&naysis(

• i%torical data i$dicate% that %till/beera"e i$du%tr! i% "ai$i$" mome$tum

a$d i% u$der due "roth 0roce%%> %till i$clude% @uice%> %lu%h a$d dri$ki$"

ater.• oeer CS,9% market hae had ex0a$ded %i"$i


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)np't( Still market 0erce$ta"e i% a! le%%

Market Si6e 8uture 2 Fear%

&ss'*ptions(

• The beera"e i$du%tr! a% oerall i% "roi$" at %heer 0ace o# &4/&*D hich

i$clude% all %ort% o# beera"e%.

• The carbo$ated %o#t dri$k i%$9t #ar behi$d a$d there i% 1/5D "roth eer!

!ear ith o$l! to bi" 0la!er% i$ the market the dome%tic cola% are$9t

threat%.

• The beera"e i$du%tr! aait% more "roth a% both Coca/Cola a$d Pe0%iCo

are i$#u%i$" #orei"$ i$e%tme$t%.• I# the taxatio$ 0olicie% are ke0t u$der co$trol u$like the rece$t


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Product Li#e C!cle

Product I$troductio$ Groth Maturit! ,ecli$eSparking+ CC

-okeS#rieFanaDie -okeS#rie 4eroFana -irusS#rie 56

Sparking ,,

Pepsi$e#si>u#

MarindaMounain De&Die $e#siDie >u#Sti ,, CCMinue "adeKinley Sti , PepsiSli%e

Aqua2na

&naysis(

• The %till beera"e i% u$der a "roth %ta"e a$d !ieldi$" "ood %ale% de%0ite

com0etitor% like Ne%tle.• All CS,9% are i$ maturit! %ta"e hoeer the %ale% are i$crea%i$" at a

co$%i%te$t rate a$d ill double u0 ithi$ a decade.

• S0rite G b! Coca/Cola i% u$der a decli$e a#ter bei$" lau$ched tice +44*

Lau$ch> +441 Re/lau$ch> could$9t %ta$d the com0etitio$ o# Mou$tai$ ,e

hich i% doi$" er! ell.

• oeer 8a$ta Citru% i% looki$" more o# a S0rite G re0laceme$t !ieldi$"

more tha$ bud"eted %ale% i$ Ramada$ +4&2.

.

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Com0etitio$ Se"me$t Matrix

&naysis(

• The Se"me$t o# %till market i% a "roi$" %ector a$d i% u$ta00ed.

• :herea% Pe0%i i% ca0itali6e% o$ it> oeer there i% a ma@or i%%ue i% that %till

market re0re%e$t% Aqua


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Exter$al 'u%i$e%% 8actor%

!very company today depends upon two aspects its internal business environment and the other

aspect that is external business environment, the external business environment is usually most powerful constraint that impacts the business and industry at large and sometimes to entire

economy% The changes in the external business environment either produce threats or give

opportunities for the business to excel and Coca-Cola should be well aware of the happenings in

the external environment which could either make or break the business within Pakistan%

>luctuations in the economy, changing legislation and taxation rules, revolving foreign policies,

changes in customer demands, attitude, values and demographic pattern largely influence upon

the profitability of Coca-Colas market in the Pakistan%%%

Competition: The competition globally is divided into three parts in the carbonated soft drinks

industry leading the market is Coca-Cola following Pepsi and other companies like Er% Pepper,

however in Pakistan the completion is only limited two companies, competition is an external

business environment which cannot be avoided but can be controlled

!olitical: #f it can be stated that the political impact in the Pakistan is the biggest external

business factor that could influence a business is the political conditions of this country, Pakistan

suffers from massive turmoil(s in the politics which result in policies that could destroy a specific business% Ahereas specific city based threats for example


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Social an# Culture: Coca-Cola is very careful in the application of its promotional campaigns

and introduction of its products in Pakistan, since the social and cultural environment of Pakistan

is very different as compared to other countries and is very conservative and any reminiscent

advertisements usually face a lot of negative reactions on the part of the consumer and

sometimes results in boycott of Products and ignoring of the brand usually% ocial factors

comprise of consumer itself, its family and groups associated with it and its status% >amily

members definitely affect buying behavior in such a way that if number of children is more in a

family than the elders, then the children choice can matter a lot at the time of soft drink purchase%

Hn other hand, sometimes people prefer to go for the product that demonstrates their eminence in

society at large% That(s the reason it results in impact, company targets younger generation which

had found its place to sociali/e online on social network, therefore to understand patterns online

is easier as compared to reality% The cultural on the other hand also results in an impact, if we

take a look fifty years ago, Pakistan was not about soft-drinks and colas it was more about

homemade beverages such as tea, lassi, satoo, &uices, soup etc% But now it is becoming part of

our cultural no wedding in Pakistan goes without sharing a soft drink today and therefore it has

created and influence on culture and had get along well with cultural norms of Pakistan specially

in the urban areas%

!ersonal: Personal choice impact the buyer decision such as age of the byer, the customer life

cycle stage, personality, attitude, perception, occupation as well as norms% The biggest factor

usually in personal characteristics is the life cycle stages which explain that over the time line the

preference, taste and choice of an individual has been changing with a consistent rate% >or

example@ "t the starting stage the potential customer isn(t aware of a soft drink but will be when

reaches to a new stage of its life and there will be a stage where the consumption will end% #t is

also upon the way of thinking of an individual there are people who never drink these beverages

whereas for some it maybe because of their occupation which gives them purchasing power of

the product an individual with low salary would prefer a regular glass bottle of Coke over a

rupee can% ame goes with health concerns some would prefer a diet drink over a normal highly

carbonated drink

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!s$chological: every person(s buying behavior is further influenced by ma&or psychological

factors such as motivation, perception, and learning and self-benefits% $otivation is basically a

drive that(s sufficiently pressing a person to seek satisfaction of the need% ometimes a person

has no intention to buy a particular product but what happens is that the group of people around

him motivates him motivates% #f a person is highly satisfied with the taste of diet coke4, he may

share his experience with another person and as a result the latter person might get motivated by

his opinion and end up buying diet coke4 #n some cases, consumers have descriptive thoughts

and beliefs about something% #t may change with the passage of time because mostly all the self-

beliefs are secondary and not the core ones%

%ther: Hther factors like the overnment rules, regulations and technological advancements

have had no significant effect on the product and the company%

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Com0etitor A$al!%i%

Customers@ Coca-Cola Bottlers Pakistan have got some of very large buyers throughout Pakistan

that order massive )uantity of cases one of them is $cEonalds Pakistan who have cola fountainsinstalled in every branch which re)uire $illions of unit cases annually &ust like there are

institutions such as Pakistan railways, whereas in the city of lights one of the most popular

restaurant B%B%; tonight exclusively sells Coca-Cola products like these are so many exclusive

institutions, modern trades like Nyper star, #mtia/, $etro etc% Eespite these big customers there

is always a threat to lose them to an ardent competitor like Pepsi which is consistently sniffing

for any sort of loopholes whereas there are other factors such as bargaining power resulted in

further discounted price and lower margins%

Substitutes: There might be no viable competitor other than Pepsi in the carbonated soda drink

industry' however there are some substitutes that take away good share of carbonated soda

drinks% Iestle is one big example of it who have &uices and nectars of two types@ >ruit-a-Gitals

and Ies->ruta, the former one is targeted for a premium market whereas Ies->ruta competes

with the range of &uices like he/an, >roto, lice etc% Hther substitutes also include flavored

milk, ice coffee 4tea and water as well%

Competitors@

Direct Competitors: Eefinitely the direct competition is from the market leader Pepsi in

Pakistan and which heavily en&oys 29 share between Coca-Cola and Pepsi in Pakistan, whereas

Coca-Cola is performing pretty well as compared to last two decades when their market share

was only .9 which has now risen up to 09% There is no local competitor that could become a

threat because over the years many Cola(s tried to get in the market but miserably failed% The

scenario in the global market is almost opposite% Both PC# and CCBPL are engaged in price and

scheme wars, whereas the turf war of sponsorship has fueled over the years%

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n#irect Competitors: There are many indirect competitors such as Iestle, he/an, >roto, and

$ilo etc% however they never have been a threat to the soda companies because of a relatively

different segment, however these companies have ability to pro&ect a serious threat% 5ecently the

raising health issues and concerns related to diabetes and obesity have resulted in people

boycotting the highly carbonated soda drinks with these &uices and dairy products%

Suppliers: Coca-Cola have authori/ed suppliers which work on contract based supply, this part

is divided into two parts one is raw materials that are used for making of beverage and other is

the concentrate that is imported from The Coca-Cola company based in "tlanta therefore there is

no significant threat posed by the suppliers% erious concern is shown toward their material by

their procurement department and expired batches are also pulled away from market directly by

CCBPL, there were some issues before CCBPL was incorporated and there was franchising

system but the )uality is way better as compared to their competitors%

'e (ntrants: Coca-Cola has never been afraid of new entrants in the market' the management

believes that entrants help in developing good competition% The competitors like $ecca-Cola and

"mrat Cola don(t pose such threats and these companies are like visitors that come and go, they

don(t hold threat to either Coca-Cola or Pepsi in Pakistan% Nowever new entrants in shape of

alternative products always pose a threat to cut some hefty share of CE(s%

>ollowing is the list of all direct and indirect competitors@

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,i%tributio$ Share% ? Com0a$!9%Po%itio$%

Anal$sis:

• There always has been issue with Coca-Cola securing retail outlets across Pakistan%• CCBPL tries to fetch exclusive outlets' however they can(t keep up with consistent

stockings%• CCBPL also relies a lot on institutional sales, $cEonalds all over Pakistan is one giant

fast-food chain that purchases cola for their fountains whereas BB; Tonight in


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Exter$al Tre$d%

Anal$sis

• The cola market is highly concentrated towards urban cities and emerging urban cities

same is the case with industries, both of the companies aren(t willing to take this

advantage4risk%• Eue to raising inflation over the decade the company never had drop in price, however

margins were affected with certain tax policies and distributor4channel margins%• Coca-Cola recently have been involved in product customi/ation internationally putting

their drinks into different categories of flavors in Cola, recently Coca-Cola attempted

regular glass bottles of Coca-Cola in Cherry and Lemon flavor for sampling and trial%• $inute $aid is premium offering priced at P


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I$ter$al A$al!%i%

S-./

Strengths

• Coca Cola i% the be%t "lobal bra$d i$ the orld i$ term% o# alue a$d

reco"$itio$. The bra$d %u%tai$% a %imilar reco"$itio$ i$ Paki%ta$• :orld9% lar"e%t market %hare i$ beera"e a$d a$ i$crea%i$" market %hare

locall!.

• Stro$" marketi$" a$d aderti%i$"> ith i$$oatie 0lat#orm% o# co$%umer

e$"a"eme$t %uch a% cu%tomi6ed bottle% a$d Coke Studio.• ;$e o# the mo%t exte$%ie beera"e di%tributio$ cha$$el%> ith ecie$t %ale%

%!%tem that e$%ure% reach a$d al%o huma$ re%ource deelo0me$t.

•

Global cu%tomer lo!alt! a$d local acce%%ibilit! #or the co$%umer• 'ar"ai$i$" 0oer oer %u00lier% due to %tro$" relatio$%hi0% ith bottli$"

com0a$ie%.

• Stro$" i$%titutio$al %ale% a$d accou$t%> #or exam0le lucratie tie u0 ith

Mc,o$ald%> '' To$i"ht> a$d 8at 'ur"er etc.

-eaknesses

• Si"$i


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S-./

Strengths• Coca Cola i% the be%t "lobal bra$d i$ the orld i$ term% o# alue a$d

reco"$itio$. The bra$d %u%tai$% a %imilar reco"$itio$ i$ Paki%ta$• :orld9% lar"e%t market %hare i$ beera"e a$d a$ i$crea%i$" market %hare

locall!.

• Stro$" marketi$" a$d aderti%i$"> ith i$$oatie 0lat#orm% o# co$%umer

e$"a"eme$t %uch a% cu%tomi6ed bottle% a$d Coke Studio.• ;$e o# the mo%t exte$%ie beera"e di%tributio$ cha$$el%> ith ecie$t %ale%

%!%tem that e$%ure% reach a$d al%o huma$ re%ource deelo0me$t.• Global cu%tomer lo!alt! a$d local acce%%ibilit! #or the co$%umer

• 'ar"ai$i$" 0oer oer %u00lier% due to %tro$" relatio$%hi0% ith bottli$"

com0a$ie%.• Stro$" i$%titutio$al %ale% a$d accou$t%> #or exam0le lucratie tie u0 ith

Mc,o$ald%> '' To$i"ht> a$d 8at 'ur"er etc.

-eaknesses

• Si"$i


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Conrontation

Matri

.pport'nities

& 'ottled ater

co$%um0tio$ "roth

+ I$crea%i$" dema$d

#or health! #ood a$dbeera"e

Groi$" beera"e%

co$%um0tio$ i$

emer"i$" market%

rural

2 Groth o#

i$ter$atio$al a$d local

re%taura$t%7#ood chai$%

a$d #ra$chi%e% i$

Paki%ta$

/hreats

& Cha$"e% i$ co$%umer0re#ere$ce%+ Le"al requireme$t% todi%clo%e $e"atie i$#ormatio$

o$ 0roduct label% ,ecrea%i$" "ro%% 0ro


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i$ di%tributio$ Mai$ p'sh or #'rrentportoio in resta'rantin$'stry

Relatie Im0orta$ce o# 8actor%

:a#tor ;'*er

&so'tey

Criti#a

5

Coca Cola9%> i$ Paki%ta$i

market> mo%t critical ta$"e$t to com0ete #or market %hare i% acce%%ibilit!. The

0roduct 0re%e$ce a$d aailabilit! there#ore become ab%olutel! critical.• Price ha% become a %i"$i %0ecial %ea%o$al 0rici$" are all commo$l! u%ed

mecha$i%m% to maximi6e C+C %ale%.

• The beera"e% i$du%tr! relie% heail! o$ bottli$" 0art$er%> "oer$me$t

%ub%idi6atio$> di%tributio$ 0art$er% a$d a ke! co$cer$ #or the com0a$! i$

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order to %u%tai$ it% tre$d o# "ai$i$" market %hare i% b! e$%uri$" the co%t% o#

mai$tai$i$" the%e relatio$%hi0% are $ot olatile or i$co$%i%te$t.)np'tO I$"e$iou% a!% to i$crea%e acce%%ibilit! ca$ create a %u%tai$able

0o%itie im0act o$ ke! co$cer$% 0rice> di%tributio$ a$d co%t%.

Rati$" A"ai$%t Cu%tomer 'u!i$"Criteria

=%&L)/A P)C!/his

B'sinessCo*p &

Non Price Attributes a%ectin -!)D>/&D!

Customer Choice EP."%C/ !L&/!" &'(

. ualiy &4 3 3

1. -arbonaion &4 3 3

5.Brand I"a(e &4 5 3

C.$a%ka(in( ; SK &* 5 5

8.Tase &* 5 3

S! i$ Paki%ta$ both

diere$t 0roduct a$d %erice related #actor% come i$to 0la!.

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• The SKH% aailable a$d 0acka"i$" are im0orta$t co$%ideratio$% he$ it

come% to 0urcha%i$". Coca Cola ha% %ucce%%#ull! ma$a"ed to i$troduce

co$%umer 0re#erred SKH% i$ the local market a$d be the i$itiator i$ thi%

re"ard. Pe0%i9% ta%te i% %li"htl! more clo%e to Paki%ta$i 0re#ere$ce.

• :hat i% critical hoeer i% aailabilit! a$d al%o ho it i% aailable. Co$%umer%

do$9t mi$d 0a!i$" a hi"her amou$t #or a$ ea%! to acce%%> chilled dri$k a$dthi% i% the ke! %ucce%% #actor #or Pe0%i i$ Paki%ta$ due to it% "rou$d leel

exte$%ie 0e$etratio$. Coca ColaQ% %trate"ic i$te$t %hould there#ore reect

the addre%%i$" o# thi% la""i$".)np't( It i% e%%e$tial #or Coca Cola to dier%i#! #rom it% hea! relia$ce o$

i$%titutio$al %ale% i$ Paki%ta$> hich ca$ be better 0o%%ible i# it become% a

bra$d #or the ma%%e%.

Cu%tomer% 'u!i$" Criteria

• Acce%%ibilit! a$d bei$" aailable #or the ma%%e% $eed% #oremo%t atte$tio$.• Co$%i%te$c! i$ ta%te a$d qualit! $eed to be %u%tai$ed a% the! are hel0i$" i$

"ai$ market %hare.

• Serice 0oi$t% $eed to im0roe to i$crea%e bu!er alue.

• ,i%tributio$ cha$$el% a$d acce%% 0oi$t% $eed to be made 0art o# the alue

chai$

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='estion its

Cost eep it 'p

eat

ie

Per

or*a

n#eatin

g "o notseat

&ttri'tes )*portant to C'sto*er)*proe

:ast

Better Ta%te7Carbo$atio

$ualit!

Sa*e Packa"i$"7SKH'ra$d

Ima"e7Commu$ic

atio$

-orse Tem0eratureAailabili

t!

+'( ,'( '(


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Im0act o# I%%ue% o$ Strate"icProighMan'a#t'r

ing Cost

Cu%tomer% HH HHH H

Market %e"me$t% H HH HHH H

Product%7Serice% H H HHH HHH HHH

Strate"ic Ma$a"eme$t H HH HHH HHH HHH

;0eratio$%Productio$7Lo"i%tic%

H HH HHH

Tech$olo"! HHH HHH HHH

,i%tributio$ Cha$$el% HHH HH

Ra Material%> E$er"! H HHH HHH

;r"a$i6atio$ Structure HHH H

HHH Criti#a HH igh )*pa#t H >igh )*pa#t

Learnings(

Like a t!0ical 8MCG com0a$!> 0urcha%i$" 0oer o# the co$%umer i% a er!

%i"$i all co$%umer orie$ted i%%ue% become 0aramou$t #or co$%ideratio$ a$d

require the com0a$! to k$o their co$%umer i$%ide out i$ the rlocal co$text to be

%ucce%%#ul.

)np't(

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• E$%ure 0rice a$d co%t i% cou0led ith alue i$$oatio$ to maximi6e bu!er

utilit!.• Co$%i%te$c! a$d aoida$ce o# di%cre0a$cie% i$ qualit! ca$ a%%ure "ai$i$"

market %hare.

• Co$$ectiit! ith "roi$" market% a$d hou%ehold% throu"h tar"eted

commu$icatio$ ca$ hel0 i$crea%e %ale%.• Strate"ic i$te$t o# im0roi$" acce%%ibilit! a$d di%tributio$ cha$$el% %hould be

reected i$ %!%tem re/0roce%%i$"> deelo0me$t o# 0art$er%hi0% a$d

0e$etratio$ tactic% i$ order to com0ete ith Pe0%i.

• Se"me$tatio$ $eed% to be ali"$ed ith a clear> #uturi%tic ob@ectie to "et the

be%t re%ult%.

Cu%tomer Pro#amil! belo$"i$"%> Cultural a$d erita"e alue%> Pride> Patrioti%m

Personaity( Ele"a$t> %im0le> extroert

Behaiora

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.##asions( Ee$tuall! he$eer the! a$t to> reli"iou% ee$t%> li#e ee$t%> #amil!

time.

%ser stat's( 8a$ bo!% hardcore u%er%> $ormal u%er%> $o$/u%er%

%sage rate( u%uall! hi"her he$ ee$t% arrie like Ramada$> Eid Al Adha> Peak o#

%ummer.

ea$iness stage( i$te$di$" to bu!

&ttit'$e toar$s pro$'#t( Po%itie

.here/: Cold dri$k% %0eciall! carbo$ated %oda dri$k like Coca/Cola i% aailableeer!here a$d cu%tomer% u%uall! i% able to bu! #rom hereer he7%he a$t% ith

oer +44>444 retail outlet% i$ Paki%ta$ the u%er becau%e it a% ali"$ed #rom the %tart o# Pe0%i oeri$"% i$ Paki%ta$

a$d it9% the orld lo$"e%t %0o$%or%hi0 deal betee$ Pe0%i a$d PC'.

Ho$/: Cu%tomer% cho%e Coca/Cola i$ ariou% a!% but due to Paki%ta$ bei$" a

mature cou$tr! i$ term% o# co$%um0tio$ #or carbo$ated %oda dri$k beera"e%> there

i% $o %0eci he$

the 0roduct% o# both Coca/Cola a$d Pe0%i are aailable o$ a %ame %hel# the

com0a$! trie% to ali"$ the 0roduct ith !outh> li#e%t!le> #u$> %0ort% a$d mu%ic

throu"h commu$icatio$ ith both ATL a$d 'TL.

.hy/ Coca/Cola i% a "lobal bra$d a$d a leader i$ the beera"e i$du%tr!> the

0re#ere$ce o# Coca/Cola i$ Paki%ta$ i% diided i$to to 0art%> o$e i% the aailabilit!

0ro%0ect a$d other i% the bra$d ima"e amo$" 0eo0le.

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=alue Chai$

nno)ation in Communication

Coca Cola Pakistan has kept its communication strategy parallel to its global policy and ensuringall communication is aligned and connects with the consumers% !ven if it is not for the masses,

the campaigns are massive, engaging and exciting to be involved in% Coke ads and activations,

not only create product recognition and solidify brand personality, but also increase buyer utility%

They have a product impact on sales%

Sales Force (mpoerment

Coca Cola has managed to get a gaining share in the local market, due to its investment and

strategic focus on developing a strong and well e)uipped sales force% This speciali/ed task forceof Coca Cola does not only support inbound and outbound logistics, but serve as the backbone

for the company(s operations, understanding and executing the consumer(s insights and partners(

concerns%

*ualit$ Assurance

>rom ingredients, to packaging, to the operation technology, the paramount ob&ective in all

aspects remains the upholding of )uality Coca Cola promises as a legendary brand% The local

division of this multinational ensures that all legs of the value delivery process follow the

international standards and give the best, uncompromised product to the consumer% This

sustenance of )uality is reflected in all functions and creates an assurance within the consumers

that they are getting the best in the world%

!ackaging +echnolog$

Coca cola(s packaging technology and rom sharing )uantities to individual units, Coca Cola caters

to all the demands or preferences the consumers may have and are also recyclable and re-usable,

therefore having a sustainable, cost effective impact% These


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Ke! I%%ue%

>ollowing are the key issues that were derived while doing the analysis of Coca-Cola Pakistan%

Market Share: The vision of the Coca-Cola Pakistan suggest that they want to be the market

leader in Pakistan, however they are stuck at the market share of 09 whereas the market of

Pepsi is in Pakistan is around 29, which shows a huge gap between the two Corporates and it

can be said that the market share at this time is the biggest issue for Coca-Cola Beverages

Pakistan Limited in Pakistan which is growing at a slower rate, the company only had .+9market share in :+(s and in around 0 years company have only managed to rack it around 09

in the carbonated soda drink =sparkling market? as of today, there are many reasons that caused

the company to be stuck on this stage% This is also not fulfilling the global vision that is Gision

*+*+ which means that the goal won(t be reached if Pakistan Coca-Cola doesn(t reach this goal%

o this is the highest priority issue for the company currently we have thought be addressed

)uickly as possible%

Distribution: The another high priority and key issue that falls in the ambit of issues that needsto be addressed is the distribution system of the company, Coca-Cola Pakistan have had

consistently suffered distribution blows over the time and before its centrali/ation it was even

more pathetic The company isn(t doing well in terms of distribution of our drinks, the retail

outlets aren(t satisfied with the distributors either, we have struggled for an in-house distribution

in past we cannot currently shift the option and we need to work out on third-party distribution

system% lobally, mostly successful franchise of Coca-Cola currently have a bottling plant plus

in-house distribution system but not in Pakistan not the largest of the competitor PepsiCo does

that in Pakistan% The distribution system that is currently under the ambit hurt in two ways one

with the loss of sales and other with the loss of retail outlets, when some sort of issue occurs the

customer and the retailer is also affected from the distributors end, distributors tend to claim

Coca-Cola need to increase their production capacity in some plants as-well, the other issue it

faced was slow stockings to its retail outlets across Pakistan% $any retail outlets complained that,

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despite being exclusive outlets for Coca-Cola they were out of stock for days and despite

re)uisition the stock wasn(t filled and they had no option to call to Pepsi distributors to give

them stock, due to this many of the exclusive retail outlets went from the hands of Coca-Cola%

Competition ,!(!S-: The biggest issue in the industry of beverage industry is the stiff

competition, although Coca-Cola Pakistan doesn(t have any competitor except Pepsi Pakistan

when it comes to carbonated soft drink industry in a direct competition, however there are

indirect competitions that usually knock doors to take a good share of carbonated soda drinks,

there are aspiring domestic companies in Pakistan that could do damage in future such as !ngro

>oods Limited by introducing a carbonated drink over the decades brands like Aalls, $ilk pack,

>roto, Tapal etc% were unchallenged and today after decades we could reali/e that they all areunder tough competition striving to sustain their growth and margins%

The competition from Pepsi isn(t repent able by Coca-Cola Pakistan and in this scenario if such

competitor enters Coca-Cola will be first to get affected by any such havoc, previously all soda

companies which entered were of small scale, if someone like !ngro enters in such market it

'ot enough pro#ucts: Ahen we talk about the key issues one of them is availability of less

products or introduction of less products in Pakistan, whatever the reason maybe, there are 0+++

products of The Coca-Cola globally and only nine products are there in Pakistan, there are so

many segments that are not targeted, there are so many products that could be introduced,

whenever this )uestion is asked related to introduction of products the reply is same the margins

are the issues and hence the products aren(t introduced whereas on the other hand Pepsi is trying

to capitali/e every segment within the industry with his offerings of &uices and energy drinks%

%ur taste is not as seet as people ant: lobally Coca-Cola is loved because of its low

sweetened taste and in the +(s the taste was changed and due to that there was big chaos and people wanted the same flavor back, whereas in Pakistan the biggest issue is that is the taste

people usually don(t like this taste and this seems a biggest stepping stone, we could do either by

introducing a new coke with a Pakistani sort of taste and re-brand as Coke classic with the same

old taste in this way the product portfolio will be enhanced too%

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Dontime: Hne of the ma&or issue that company faces is the machine downtime issues across

Pakistan specially in Pun&ab based plants due to shortage of electricity and there is no self-

generated electricity plants therefore there is a lot of machine downtime due to that and due to

that product efficiency in cost creates a problem as well as labor is also paid while downtime

which also adds to the unit per cost%

.uice market an# (nerg$ Drinks: There are many segments that Coca-Cola currently lags

behind such as an economy &uice that could match the price of other &uices available in the

market as well as huge market of energy drinks, in the company(s global product portfolio there

are various energy drinks that are suited for different target markets and they could try brining in

the bottom of the line product if they believe economy is the case, with over 0+++ products

globally, Coca-Cola have only bought nine products in Pakistan which is a setback, Pepsi has

capitali/ed in the snacks industry of Pakistan by brining >rito Lays to Pakistan whereas Coca-

Cola

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Marketi$" Pla$

Strategic ntent:

.? To close the gap between market leaders and eventually eliminate the gap and con)uer

the Pakistani beverage industry%*? Eeveloping and reshaping sustainable growth system continuously%

Competiti)e nno)ation:

.? Building a uni)ue and smart distribution and channel system that is effective for all

stakeholders and specially creates value for*? !nhancing efficiency by further automation resulting in increased margins and cost

cutting%

Mission: Coca-Cola Pakistan exists to refresh the consumers, inspire moments of optimism

through our brands and actions as well as benefit all stakeholders, which we will do with highest

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Prici$" Pla$

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I$ a beera"e market here o$l! to com0a$ie% 0oer#ull!> the 0rice remai$%

%ta"$a$t u$til the leader %ome doe% %omethi$". The re"ular bottle 0rice ha%$9t be

%la%hed %i$ce a decade or more> the 0rice% ha% ala!% bee$ i$ated oer the 0eriod

o# time hateer the t!0e o# bottle it ma! o$l! %0ecial di%cou$t come% u0 a$d the

com0etitor u%uall! re0licate%.

H%uall! Coca/Cola doe%$9t %te0% u0 i$ a$! %uch 0romotio$% Coca/Cola i% a #olloer

i$ thi% ca%e.

Coca/Cola Paki%ta$ doe%$9t "oe% belo RS &* maximum o$ it% re"ular +*4ml bottle

hich i% the loe%t 0aid the mar"i$ i% co$ herea% de0o9% are %old #or &*/&- Ru0ee%.

I# the o0eratio$al ecie$c! i% i$crea%e the %ix %i"ma i% achieed a$d bottli$" 0la$t%hae hi"her ca0acit! a$d #urther automatio$ the 0rice ould %i"$i


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Promotio$ Pla$

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Cha$$el Pla$

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Actio$ Pla$

SI

)np't e PgI

Strategy tion Pan

-hen -here

es'ts

&Im0roeAailabilit!

S:;TKe! I%%ue%

+25

Im0roi$"aailabilit!> #a%terre/%tocki$"

+4&2/+4&*Sati%$o/%tock out%.

+

E$ha$ce a$dIm0roe,i%tributio$S!%tem

S:;T,i%tributorStructureStrate"ic

I$te$t

+2++2

Seek ecie$t a$dex0erie$cedi%tributor% re/lau$ch i$/hou%edi%tributio$ %!%tem

+4&*/

Market %hare"roth i$crea%e%>u$ta00ed outlet%coered

'ri$"i$" u0 $e0roduct%

S:;TProduct Pla$Ke! I%%ue%

+*-5

Lau$chi$" @uice0riced equiale$tto Slice a$d $e

8a$ta aor%

+4&2/+4&*

I$crea%i$" market%hare> choice #orco$%umer> bra$d

0o%itio$i$".

2

Ex0a$di$" toRural Market% /;$l! *D %ale%belo$" to ruralarea% o# 0o%%ible&&+.3 Millio$ rural0o0ulatio$>ex0a$di$" a$d"etti$" a 0erce$tould e$coura"emillio$% o# %ale%

S:;T +*

Maki$" di%tributio$%tructure dee0er>tar"eti$"acce%%ible a$dhi"h 0ote$tial ruralmarket% that are i$a %ta"e o#deelo0me$t.

+4&*

;ur i%io$ could be#ul mi$imi6ethe co%t 0er bottle0roductio$ b!%tate o# the artmachi$er!.

18orci$" moreexclu%ie outlet%

,i%tributio$Share

Com0etitorA$al!%i%Exter$al Tre$d%

+++4+

:i$$i$" exclu%ieoutlet% b!marketi$" %u00ort.

+4&* &

More exclu%ieoutlet% mea$ more%ale% a$d more"roth.

5:i$$i$" morei$%titutio$al %ale%

,i%tributio$Share

++

Maki$" co$tractualtie% ith bi"

re%taura$t%>ex0a$di$"i$%titutio$% to$el! lau$chedca#e%> re%taura$t%>%ecuri$" Kolachili#e re%taura$t.

+4&*

I$%titutio$al %ale%

are li#e %u00orti$$i$" im0orta$ti$%titutio$% couldbe a% u%e#ul a%i$$i$" '' To$i"ht.

3Killi$" lo%%maki$" 0roduct

Product Pla$ -Elimi$ati$" S0riteG

& +4&*E$d the dilemma>the 0roduct a%$eer a %ucce%%.

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Case Study Analysis of Brannigan Foods: Strategic Marketing Planning - HBR

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