MARKETINGPLANINCOCA-COLAIn partial fulfillment of the requirements in Marketing Management (MKT306) with the degree of Bachelor of Science in Business Administration Major in Marketing Management.

SUBMITTED BY:JOLO, JESSAHUQUIRE, ROSS-JELLQUIACHON, JUSTINE

SUBMITTED TO:MR. JESSIE R. TAMAYO

COCA-COLABOTTLERSPHILIPPINESINC.

EXECUTIVE SUMMARY

The following marketing plan forms the basis for the products of the Coca-Cola Company. The analysis allows us to outline the best strategies to follow for the achievements of the companys strategic goal.

The Coca-Cola Company (TCCC) is engaged in the manufacturing, Distribution and marketing of non-alcoholic beverage concentrates and syrups. The company owns the world's most valuable brand: It offers also a portfolio of more than 3,300 products in over 200 countries worldwide.

They primarily produce sparkling beverages, variety of still, and also manufacture finished beverages. TCCC owns or licenses nearly 500 brands, including diet and light beverages, waters, enhanced waters, juice and juice drinks, teas, coffees, energy and sport drinks. Furthermore, the company has ownership interests in a number of bottling and canning operations, most of which are independently owned and managed.

Most of TCCC's products are manufactured and sold by bottling partners, who convert them into finished packaged products for sale to distributors and other customers.All these products were packaged in cans, glass and plastic bottles, and sold to wholesalers and retailers.

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CHAPTER IINTRODUCTION

11.1 THE HISTORY OF COCA-COLA BOTTLERS PHILIPPINES, INC.

Year 1912 marks the beginning of company's products distribution in the Philippines when American businessman, M.A. Clarke decided to bring out business offshore.The Coca-Cola made history in the Philippines when the first documented soda fountain was established in Manila. Later he opened a bottling plant --- the first in the Philippines and the first ever in ASIA. The famous contour bottle -- a packaging innovation introduced in 1916, started to become familiar site and slowly become a part at the dinner's table of Filipinos.

As the Philippines leaped into the 1920's, the United States of America sank into the Great Depression. But Coca-Cola, with the marketing genius of then Coca-Cola president Robert Woodruff, Helped reinvent that period's marketing, advertising and packaging approaches. And in 1927, San Miguel Corporation secured the first non-US national Coca-Cola bottling and distribution franchise.

The company owned 70 percent of the joint venture, which grew to become Coke's sixth largest operation by then. Coca-Cola Company in the Philippines has not been stagnantly resides long to San Miguel Corporation's full ownership control. In April 1997, Coca-Cola Bottlers Philippines, Inc. was merged into the Australian-based Coca-Cola Amatil Ltd After San Miguel exchanged its 70 percent interest in a Philippine-only operation for a 25 percent stake in Coca-Cola Amatil Ltd., which had operations in 17 countries. 2In 2001, San Miguel decided to buy back Coca-Cola business in a transaction involving Php 60 billion that Soriano III sold to Amatil. San Miguel ended up owning 65 percent of CCBPI. However in 2006, San Miguel has sold its 65 % stake of its Coca-Cola Philippine venture including its subsidiaries cosmos Bottling Corporation and Philippine Beverage Partners to the Coca-Cola Company (TCCC) for $590 million. TCCC however ended up only a five-year business control over CCBPI after Coca-Cola FEMSA acquired 51 percent majority ownership share.

Today, Coca-Cola Bottlers Philippines, Inc is the premiere soft beverage company in the country, one of the top ten bottlers of Coca-Cola in the world, and one of the top 20 corporations in the Philippines in terms of revenue. With subsidiaries Cosmos Bottling Corporation and the Philippine Beverage Partners, Inc., Coca-Cola Bottlers Philippines, Inc., refreshes some 85 million Filipinos throughout the country.

To date, Coca-Cola in the Philippines operates with enormous manufacturing plants and more serving sales offices to offers customers the widest selection of beverages.

3A. THE RISE AND FALL OF COCA COLA

Some Coca-Cola executives had quietly been arguing for a reintroduction of the old formula as early as May. By June, when soft drink sales usually start to rise, the numbers showed the new formula was leveling among consumers. Executives feared social peer pressure was now affecting their bottom line. Some consumers began trying to obtain "old" Coke from overseas, where the new formula had not yet been introduced, as domestic stocks of the old drink were exhausted.] Over the course of the month, Coca-Cola's chemists also quietly reduced the acidity level of the new drink, hoping to assuage complaints about the flavor and allow its sweetness to be better perceived (ads pointing to this change were prepared, but never used). In addition to the noisier public protests, boycotts, and bottles being emptied into the streets of Southern cities, the company had more serious reasons to be concerned. Its bottlers, and not just the ones still suing the company over syrup pricing policies, were expressing concern. While they had given Goizueta a standing ovation when he announced the change at an April 22 bottlers' meeting at Atlanta's Woodruff Arts Center, glad the company had finally taken some initiative in the face of Pepsi's advances,[21] they were less enthusiastic about the taste. Most of them saw great difficulty having to promote and sell a drink that had long been marketed as "The Real Thing", constant and unchanging; now that it had been changed.

4The 20 bottlers still suing Coca-Cola made much of the change in their legal arguments. Coca-Cola had argued in its defense when the suit was originally filed that the formula's uniqueness and difference from Diet Coke justified different pricing policies from the latter but if the new formula was simply an HFCS-sweetened Diet Coke, Coca-Cola could not argue the formula was unique. Bottlers, particularly in the South, were also tired of facing personal opprobrium over the change. Many reported that some acquaintances had stopped speaking to them, or had expressed displeasure in other emotionally hurtful ways. On June 23, several of the bottlers took these complaints to Coca-Cola executives in a private meeting. With the company now fearing boycotts not only from its consumers but its bottlers, talks about reintroducing the old formula moved from "if" to "when".Finally the board of Coca-Cola changed their minds and decided to bring back the old Coke. Company president Donald Keough revealed years later in the 2002 documentary The People vs. Coke that they realized this was the only right thing to do when they visited a small restaurant in Monaco and the owner of the restaurant proudly said that they had "the real thing, it's a real Coke," offering them a bottle of old Coke. Coca-Cola executives announced the return of the original formula on July 11, less than three months after New Coke's introduction. ABC News' Peter Jennings interrupted General Hospital to share the news with viewers. On the floor of the U.S. Senate, David Pryor called the reintroduction "a meaningful moment in U.S. history" The company hotline received 31,600 calls in the two days after the announcement. 5The new product continued to be sold and retained the name Coca-Cola (until 1992, when it was officially renamed Coca-Cola II), so the old product was named Coca-Cola Classic, also called Coke Classic, later just Coke and for a short period of time it was referred to by the public as Old Coke. Many who tasted the reintroduced formula were not convinced that the first batches really were the same formula that had supposedly been retired that spring. This was true for some regions because Coca-Cola Classic differed from the original formula in that all bottlers who hadn't already done so were using high fructose corn syrup instead of cane sugar to sweeten the drink.[41]"There is a twist to this story which will please every humanist and will probably keep Harvard professors puzzled for years," said Keough at a press conference. "The simple fact is that all the time and money and skill poured into consumer research on the new Coca-Cola could not measure or reveal the deep and abiding emotional attachment to original Coca-Cola felt by so many people."The company gave Gay Mullins, founder of the organization Old Cola Drinkers of America (which had lobbied Coca-Cola to either reintroduce the old formula or sell it to someone else) the first case of Coke Classic.]By the end of the year, Coke Classic was substantially outselling both New Coke and Pepsi. Six months after the rollout, Coke's sales had increased at more than twice the rate of Pepsi's.

5New Coke's sales dwindled to a three percent share of the market, although it was doing quite well in Los Angeles and some other key markets. Later research, however, suggested that it was not the reintroduction of Classic Coke, but instead the less-heralded rollout of Cherry Coke (now called Coca-Cola Cherry), that can be credited with the company's success that year.[ Coke spent a considerable amount of time trying to figure out where it had made a mistake, ultimately concluding that it had underestimated the public reaction of the portion of the customer base that would be alienated by the switch. This would not emerge for several years afterward, however, and in the meantime the public simply concluded that the company had, as Keough suggested, failed to consider the public's attachment to the idea of what Coke's old formula represented. While that has become conventional wisdom in the ensuing years, some analysts have suggested otherwise.This populist version of the story served Coke's interests, however, as the whole episode did more to position and define Coca-Cola as a brand embodying values distinct from Pepsi than any deliberate effort to do so probably could have done. Allowing itself to be portrayed as a somewhat clueless large corporation forced to back off a big change by overwhelming public pressure flattered customers (as Keough put it, "We love any retreat which has us rushing toward our best customers with the product they love the most.") Bottles and cans continued to bear the "Coca-Cola Classic" title until 2009 when the company announced that it would discontinue the use of "Classic" to avoid confusion with the younger generation. 6While in the short term the fiasco led Bill Cosby to end his advertising for Coke, saying his commercials that praised the superiority of the new formula had hurt his credibility, no one at Coca-Cola was fired or otherwise held responsible for what is still widely perceived as a misstep, for the simple reason that it ultimately wasn't. When Goizueta died in 1997, the company's share price was at a level well above what it was when he had taken over 16 years earlier and its position as market leader even more firmly established. At the time Roger Enrico, then head of Pepsi's American operations, likened New Coke to the Edsel. Later, when he was himself PepsiCo's CEO, he modified his assessment of the situation, saying that had people been fired or demoted over New Coke, it would have sent a message that risk-taking was strongly discouraged at the company. In the late 1990s, Zyman summed up the New Coke experience thus: Yes, it infuriated the public, cost a ton of money and lasted only 77 days before we reintroduced Coca-Cola Classic. Still, New Coke was a success because it revitalized the brand and reattached the public to Coke. New Coke continued to do what it had originally been designed to do: win taste tests. In 1987, The Wall Street Journal surveyed 100 randomly selected cola drinkers, the majority of whom indicated a preference for Pepsi, with Classic Coke accounting for the remainder save two New Coke loyalists. When this group was given a chance to try all three in a blind test, New Coke slightly edged out Pepsi yet many drinkers reacted angrily to finding they had chosen a brand other than their favorite. Goizueta never once regretted the decision, even throwing an anniversary party for New Coke in 1995, and continued to drink it until his death in 1997. 7B. THE BIOGRAPHY OF THE COCA-COLA FOUNDER

John S. Pemberton

BackgroundPemberton was born July 8, 1831, in Knoxville,Crawford County, Georgia. His father was James Clifford Pemberton, brother of Confederate GeneralJohn Clifford Pemberton. Pemberton was raised inRome, Georgia. He entered the Reform Medical College of Georgia inMacon, and in 1850, at the age of nineteen, he was licensed to practice pharmacy. Shortly thereafter, he met Ann Eliza Clifford Lewis ofColumbus, Georgia, known to her friends as "Cliff," who had been a student at the Wesleyan College in Macon. In 1853, he married Miss Lewis in Columbus. Their only child, Charles Ney Pemberton, was born in 1854. They lived in thePemberton Housein Columbus.8Invention of Coca-Cola In April 1865 while serving as lieutenant colonel of the Confederate Army's 12th Cavalry Regiment, Georgia State Guard, Pemberton was wounded in theBattle of Columbus, Georgia. He was slashed across the chest by a saber, and like many wounded veterans, he became addictedto themorphineused to ease the pain.He was a pharmacist and as such searched for a cure for his addiction. In 1866, in Columbus, Georgia, he started working on painkillers that would serve as opium-free alternatives to morphine. His first was "Dr. Tuggle's Compound Syrup of Globe Flower (cephalanthus oxidentalis).He next began experimenting withcocaandcoca wines, eventually creating his own version ofVin Mariani, containingkola nutanddamiana, which he calledPemberton's French Wine Coca.According toCoca-Colahistorian, Phil Mooney, Pemberton's world-famous soda was "created inColumbus, Georgia and carried toAtlanta." With public concern about the drug addiction,depressionandalcoholismamong war veterans, and "neurasthenia", as well as among "highly-strung" Southern women,[ Pemberton's medicine was advertised as particularly beneficial for "ladies, and all those whose sedentary employment causes nervous prostration"In 1886, whenAtlantaandFulton Countyenactedtemperancelegislation, Pemberton found himself forced to produce a non-alcoholic alternative to his French Wine Coca.Pemberton relied on Atlanta druggist Willis Venable to test and help him perfect the recipe for the beverage, which he formulated by trial and error. 9 With Venable's assistance, Pemberton worked out a set of directions for its preparation that eventually included blending the base syrup with carbonated water by accident when trying to make another glass. Pemberton decided then to sell it as a fountain drink rather than a medicine.Frank Mason Robinsoncame up with the name "Coca-Cola" for thealliterativesound, which was popular among other wine medicines of the time. Although the name quite clearly refers to the two main ingredients, the controversy over itscocainecontent would later promptThe Coca-Cola Companyto state that the name was "meaningless but fanciful." Robinson also hand wrote theSpencerian scripton the bottles and ads. Pemberton made many health claims for his product, touting it as a "valuable brain tonic" that would cure headaches, relieve exhaustion and calm nerves, and marketed it as "delicious, refreshing, pure joy, exhilarating," and "invigorating."Pemberton sells the businessSoon after Coca-Cola hit the market, Pemberton fell ill and nearly bankrupt. Sick and desperate, he began selling rights to his formula to his business partners in Atlanta. Part of his motivation to sell actually derived from his expensive continuing morphine addiction. Pemberton had a hunch that his formula "some day will be a national drink," so he attempted to retain a share of the ownership to leave to his son.But Pemberton's son wanted the money. So in 1888 Pemberton and his son sold the remaining portion of the patent toAs a Candler.

10Death

Grave of John Pemberton in Columbus, GeorgiaJohn Pemberton died at age 57 in August 1888, poor, sick, addicted to morphine, and a victim of stomach cancer. His body was returned toColumbus, Georgia, where he was laid to rest at Linwood Cemetery. His grave marker is engraved with symbols showing hisConfederatemilitary service and his pride in being aFreemason. His son continued to sell an alternative to his father's formula, but only six years later Charles Pemberton died, an opium user himself.]John Pemberton in popular cultureIn 2010, theCoca-ColaCompany paid tribute to Pemberton as a key character within an advertising campaign called "Secret Formula". Centered on the secret ingredients of Coca-Cola, imagery related to Pemberton was used to make people more aware of Coke's history and mythology. In 2013, Pemberton was portrayed byBill Haderin the "Atlanta" episode ofComedy Central'sDrunk History, created by Derek Waters. 11 1.2 THE PRODUCTS OF COCA-COLA AND ITS DESCRIPTION

Coca-Cola is the most popular and biggest-selling soft drinks of TCCC.The product was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886, patented in 1887, registered as a trademark in 1893, and by 1895, it was being sold in every state and territory in the US.

TCCC's other popular soft drink brands offered around the globe includes Sprite, Royal, Beat, Canada Dry, Canning's, Cheers, Cherry Coke, Citra, Diet Barq's, Diet Coke, Fanta, Limca, Vault, Coca-Cola Zero, and Diet Cherry Coke. For its fountain products in the US, TCCC manufactures fountain syrups and sells these to authorized fountain wholesalers and retailers.

Outside the US, fountain syrups are manufactured by authorized bottlers from concentrates procured from the company. These fountain syrups are sold by bottlers to wholesalers or directly to fountain retailers.

The principal raw materials used by TCCC are nutritive and non-nutritive sweeteners. For example, in the US, the company uses high fructose corn syrup as a nutritive sweetener, whereas other countries it uses sucrose. The company uses aspartame, acesulfame potassium, saccharin, cyclamate and sucralose as non-nutritive sweeteners.

12For juice and juice-drink products, the company uses citrus fruit, particularly orange juice concentrate, as a raw material.

TCCC operates its business through six business segments: North America, Eurasia and Africa, Europe, Latin America, Pacific, and Bottling Investments.

TCCC also reports a non-operating segment: corporate. The company has divided its operations into9 segments based on geographic operations. And the Pacific business segment encompasses the company's operations in Korea, China, and the Philippines.

To get closer to the clients and consumers, the company operates as an integral supplier for them offering a complete beverages portfolio that includes Eight O Clock, Funchum, EOC Immuno Active, and Real Leaf Fruity, Minute Maid Pulpy, Pop, PowerAde, Samurai, Sarsi, Scheweppers, Sparkle, Hi-C, Jaz Cola. Lift, Viva and Wilkins. Other than these products of course, the company offers with the most outstanding brands to include Coca-Cola, Coca-Cola Zero, Sprite, and Royal. As of December 2009, TCCC owned and operated 29 principal beverage concentrate and or syrup manufacturing plants located throughout the world.

In addition, TCCC owns or holds a majority interest in 112 principal beverage bottling and canning plants located in different regions of the world. These plants are included in the Bottling Investment operating segment. 13

A. SOFT DRINKS PRODUCTS

Coca-Cola

Coca-Cola was created in Atlanta by Dr. John S. Pemberton, it was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water.

Coca-Cola Life TM

Coca-Cola Life is a reduced-calorie cola sweetened with cane sugar and stevia leaf extract. Coca-Cola Life has 35% fewer calories than leading colas **

**Calories per 8-oz. Coca-Cola Life TM. 60 calories, Leading Colas: 100 calories**Calories per 12-oz. Coca-Cola Life TM. 90 calories, leading Colas: 140-150 calories

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Coca-Cola Zero

Coca-Cola Zero offers real Coca-Cola taste and zero calories.

Diet Coke

Diet Coke is the perfect refreshment for people who want no calories, but plenty of taste. Launched in 1982, Diet Coke is now the #1 sugar-free beverage brands and the #2 beverage brand in the United States.

Coca-Cola Vanilla Zero

Coca-Cola Vanilla Zero offers real cola taste with vanilla flavor and zero calories.15Sprite

Sprite is the world's leading lemon-lime flavored sparkling beverage and the #2 Global brands for TCCC worldwide. With a strong appeal among young adults, millions enjoy its crisp, clean taste.

Barqs Root Beer

Barq's delivers root beer flavor; its the way root beer is supposed to taste: bold, full of flavor, with a kick. Barqs has bite! .

Sprite Zero

Lemon-lime, zero-calorie Sprite Zero offers great taste that helps you keep your cool16Caffeine Free Coca-Cola

Caffeine Free Coca-Cola offers the great taste of Coca-Cola without the caffeine.

Diet Barq's Root Beer

Diet Barq's is a no-calorie option that delivers root beer flavor.

Caffeine Free Diet Coke

Caffeine Free Diet Coke provides the beautifully balanced adult cola taste of Diet Coke, minus caffeine. Perfect for afternoon and evening consumption occasions.

17Coca-Cola Cherry Zero

Coca-Cola Cherry Zero offers real cola taste with cherry flavor and zero calories.

Coca-Cola Cherry

Coca-Cola Cherry offers the great taste of Coca-Cola with a sweet, smooth cherry flavor.Coca-Cola Vanilla

Coca-Cola Vanilla is the flavored carbonated beverage that provides a refreshingly smooth balance of vanilla flavor and great tasting Coca-Cola.

18Diet Coke Cherry

Diet Coke Cherry Flavor enlivens the taste buds by providing the great adult taste of Diet Coke, with a hint of cherry flavor.

Diet Coke with Lime

Diet Coke with Lime Flavor enlivens the taste buds by providing the great adult taste of Diet Coke, with a hint of lime flavor.

Fanta

The multi-sensory, fruity flavors of Fanta provide a bubbly, exuberant and playful consumption experience.

19Fanta Zero

Fanta Zero offers the bold, fruity taste of Fanta with zero calories and provides a bubbly, exuberant & playful consumption experience.

FRESCA

FRESCA offers distinctive, citrus grapefruit taste for sophisticated adults.

Mello Yello

Mello Yello has a uniquely smooth citrus taste and heritage, and is The Original Smooth.

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Mello Yello Zero

Mello Yello Zero has a uniquely smooth citrus taste, zero calories and is The Original Smooth.

Pibb Xtra

Pibb Xtra provides an intensely flavored, refreshing spicy cherry alternative to regular cola.

Pibb Zero

Pibb Zero offers a bold Spicy Cherry flavor without the calories.

21B. COFFEE PRODUCTS

Gold Peak Coffee

Our philosophy is simple: bring the most delicious, flavorful coffee to everyone we can. The smooth and rich flavors of Gold Peak Coffee are first found in the high quality Arabica beans we use. This species is grown in altitudes of 3,000 - 6,000 feet. Then we take special care in how we harvest, dry, sort, roast, package and dispense our coffee so that no Arabica bean unlocks its potential before you take that first sip. Try a cup of Gold Peak Coffee and discover the taste that brings you home.

Illy issimo

From the masters of Italian espresso, enjoy the pure pleasure of illy issimo coffee anytime, anywhere. The 100% natural Arabica coffee and finest ingredients offer the quintessential Italian espresso experience.

22C. TEA PRODUCTS

FUZE Freshly Brewed Iced Tea

FUZE Freshly Brewed Iced Tea is a line of teas that blend fruit flavors and some helpful nutrients for a reinvented beverage experience.

FUZE Refreshments Juice Drinks and Teas

FUZE Refreshments is a line of great-tasting juice drinks and teas that blend fruit flavors and some helpful nutrients for a reinvented beverage experience.

HONEST Tea

23HONEST Tea, the nation's top-selling organic bottled tea, delivers great-tasting, refreshing beverages that are Just a Tad Sweet. Each premium HONEST Tea beverage is freshly brewed using organic, Fair Trade CerfitiedTM tea leaves and comes in at 100 calories or less per bottle. HONEST Tea is Certified Organic, OU Kosher, Just a Tad Sweet and available at retailers nationwide.

Gold Peak

GOLD PEAK TEA HOME BREWED TASTE YOULL LOVE AT FIRST SIP

Minute Maid Smoothies

Made with real fruit juices and/or fruit puree, Minute Maid Smoothies are a cool treat that consumers of all ages love. These frozen treats are growing in popularity and appearing on menus everywhere. Smoothies are an exciting and great tasting addition to beverage portfolio.

24D. SPORTS DRINK PRODUCTS

POWERADE with ION4

POWERADE is formulated with ION4 to help replenish four electrolytes lost in sweat. The formulation launched in 2009 to replace the former POWERADE product lineup.

POWERADEZERO

POWERADE ZERO is the great-tasting zero calorie sports drink formulated with Vitamins B3, B6 & B12 to aid in the metabolism of the bodys stored energy.

POWERADE ZERO Drops

POWERADE ZERO Drops is the perfect on-the-go solution for athletes. Just add POWERADE ZERO Drops to water and turn it into POWERADE ZERO25E. WATER DRINK PRODUCTS

DASANI DROPS

DASANI DROPS is your tantalizing ticket to taste. A departure into deliciousness where youll find the flavor you crave that turns H2O into H2OMG. DASANI DROPS is the delicious drop that enlivens the moment

DASANI

DASANI offers a pure and crisp clean taste in a redesigned bottle that consumers can feel good about. Plant Bottle packaging isThe Coca-Cola Companys latest innovation in packaging that uses renewable materials in a plastic bottle that is up to 30% made from plants and is still 100% recyclable. We are proud to offer Plant Bottle packaging for all DASANI packages nationwide, showcasing our leadership in the bottled water category.

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DASANI Sparkling

DASANI Sparkling is a flavored, unsweetened, zero calorie, Sparkling water beverage that launched in February 2014 with 4 flavors Lime, Lemon, Apple and Berry.

DASANI Flavors

DASANI Flavors is designed to make a difference with better designed formulas and better designed packaging that is stylish, has a premium look, and improved flavor and zero calories.

27F. JUICE DRINKS PRODUCTS

Bright & Early

Bright & Early flavored drinks are a great way to start your morning, with delicious flavors such as grape, apple, and orange each providing a full day's supply of vitamin C per 8-oz. serving

Simply Juice Drinks

Simply Juice Drinks offer premium, not-from-concentrate products that appeal to consumers seeking a refreshing and delicious taste experience.

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FUZE Slenderize

FUZE slenderize is a great tasting and refreshing low calorie fruit flavored beverage infused with some helpful nutrients.

FUZE Taste Blends

FUZE Taste Blends are a great tasting and refreshing low calorie fruit flavored beverage with a touch of milk for that delicious smoothie sensation and infused.

29Hi-C

The explosive fruit taste of Hi-C, with 100% vitamin C per serving, can be enjoyed anytime, anywhere.

Minute Maid (Box Products)

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of combined retail volume sales in 20111. Minute Maid juice box products, featuring 100% juice and juice drinks in single-serve portion sizes for children, providing the nutrition mom is seeking and the great taste and fun that kids want.

30Honest Kids Multi-Serve

Honest Kids, the nations top-selling organic SS youth juice drink1, delivers great-tasting, lower-sugar* refreshment now in a larger, at-home package. Sweetened only with fruit juice, each variety contains 1/3 less sugar than the leading kids juice drinks in multi-serve packaging* and 100% daily value Vitamin C. Honest Kids is Certified Organic, OU Kosher, Gluten-Free and is available at retailers nationwide.

HONEST Ade

HONEST Ade organic thirst quenchers deliver great-tasting, Just a Tad Sweet refreshment. Each is 100 calories or less per bottle and just a tad sweet. HONEST Ade is certified organic, OU Kosher, caffeine-free, and is available at retailers nationwide.

31Minute Maid Coolers

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of combined retail volume sales in 20111. Minute Maid Coolers provide the nutrition mom is seeking and the great taste and fun that kids want.

Minute Maid Fruit Falls

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of combined retail volume sales in 20111. Minute Maid Fruit Falls is a naturally flavored water beverage with only 5 calories per pouch. Minute Maid Fruit Falls provide the nutrition mom is seeking and the great taste and fun that kids want.

32Minute Maid Just 10

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of combined retail volume sales in 20111. Minute Maid Just 10 Fruit Punch is a low calorie juice drink with only 10 calories per pouch. Minute Maid Just 10 provides the nutrition mom is seeking and the great taste and fun that kids want.

Minute Maid Kids+ Orange Juice

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of combined retail volume sales in 20111. Minute Maid Kids+ Orange Juice provides superior nutritional fortification with Vitamins A, B1, C, , D, E & Calcium in a flavor that kids love. The calcium and vitamin D combination helps support growing bones, and antioxidant vitamins A, C and E help to maintain a normal, healthy immune system. Kids will love the pulp-free taste!

33Minute Maid Lemonade

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of combined retail volume sales in 20111. Classics never go out of style. Made with the goodness of real lemons2, Minute Maid Lemonade is the quintessential refreshing beverage with the great taste of a simpler time.

Minute Maid Light Lemonade

Minute Maid is the No. 1 fruit and vegetable juice brand in the world in terms of combined retail volume sales in 20111. Minute Maid Light TM Lemonade offers the great-tasting juice flavor people expect from Minute Maid, but with fewer calories.

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Minute Maid Orange Juice

With more than 100 different flavors and varieties, Minute Maid is the largest brand in the Coca-Cola juice portfolio and is available in more than 70 countries worldwide.

Minute Maid Orchards Best

Minute Maid Orchards Best offers the refreshing goodness of 100% juice and a wide variety of juice drinks in shelf-stable packaging.

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Odwalla Proteins

Odwalla offers a variety of delicious protein shakes that are supercharged with protein, essential amino acids, vitamins, and other nutrients. The portfolio includes both dairy and vegan protein options.

Odwalla 100% Juices

Odwalla 100% Juices are made from the finest quality fruits and vegetables nature has to offer.

36Odwalla Smoothies

Odwalla Smoothies are delicious blends of juice and fruit purees with beneficial nutrients.

Simply Apple

Simply Apple is a premium, not-from-concentrate, 100% pure pressed apple juice that appeals to consumers seeking a fresh taste experience.

37Simply Cranberry Cocktail

Simply Cranberry Cocktail is a premium, not-from-concentrate juice drink product that appeals to consumers seeking a fresh taste experience.

SimplyGrapefruit

Simply Grapefruit is a premium, not-from-concentrate, 100% juice that appeals to consumers seeking a fresh taste.

38SimplyLemonade

Simply Lemonade offers premium, not-from-concentrate juice drink products that appeal to consumers seeking a fresh taste experience.

Simply Limeade

Simply Limeade premium, not-from-concentrate juice drink product that appeals to consumers seeking a fresh taste experience.

Simply Orange

Simply Orange offers premium, not-from-concentrate, 100% juice products that appeal to consumers seeking a fresh-squeezed taste experience.

391.3 STATUS OF THE INDUSTRY

The growing trends surrounding societal concern, attitudes, and lifestyle are important to consumers. Filipinos nowadays for instance are becoming more focused on healthy lifestyle. The awareness of health and wellness issues such as obesity, diabetes, and inactive lifestyle represent a serious risk to the carbonated drinks sector. The trend is causing the industry's business environment to change as firms differentiate their products in order to increase sales in a stagnant market.

San Miguel Corporation in particular is now producing healthy ready-to-drink fruit juices. The universal Robina on the other hand also manufactures healthier substitute for carbonates via C2 (tea) products. These are some among factors that carbonated soft drinks consumption is continuously declining as interfence of the buyer's quest for alternatives are observed.

If a firm was the first to introduce a product, then the advertising campaign should reinforce this fact. Coca-Cola's "the real thing" does just that, and implies that other colas are just imitations. According to Ries and Trout's arguments, "the success of a brand is not due to the high level of marketing acumen of the company itself, but rather, it is due to the fact that the company was first in the product category".

40This is another core strategy of Coca-Cola being the first-mover to maintain its position as market leader of the industry. As positioning really begin with a product, but the true concept relies on the inculcation of that product in the minds of the consumer. Coca-Cola being regarded as one of the world's notable brands, the power of a name it carries really counts.The report on soft drink industry suggests that sales have not been as brisk as in the past as consumers shift to healthier (less sugar-laden) alternatives. Rising food and fuel prices have also weakened consumer demand as people's physiological needs are of most important of course. In spite of these, the outlook of the Coca-Cola Company remains optimistic. The company will continue to be a popular segment of the beverage industry since the soft drinks intake has been always a part of the diet of many Filipinos.To enhance consumer demand, the company is actively pursuing promotional activities such as tie-ups with value meals of popular fast-food chains, restaurants, pizza stores, sponsorship of events, setting up of booths in school/club fairs, provision of free soft drinks in some events, installation of vending machines, and among others.The massive multi-media advertising campaigns, price cuts of other SKU's, product introduction, as well as continuos research and development of the company, all these aggressive efforts in revising interest in the product are slowly paying off.Accordingly, while sales of the regular soft drink products have been broadly flat, the demand for the new variants (e.g. sugar free (Cole Zero), water (Wilkins), Fruit-flavored (Nestea Honey Lemon) have been posting good growth. And it is likely that these new variants will continue to drive opportunity in the coming years.41

CHAPTER II MARKETING ENVIRONMENT

422.1 THE MARKET

When it comes to the consumer market, Coca-Cola has a very broad market base. The company focuses its efforts on many different people. Cokes core business, which has been carbonated beverage, has been targeting a large audience of soft drink consumers. Throughout history, the company has targeted many generations of people. The ages of these people has ranged from young to old. Coke has always been known as a classic, which has appealed to the older audience.

For the Coca-Cola Company, there is a need for them to focus on certain demographical characteristics of the population. The characteristics they consider include: age, income, and family. The other demographic considerations such as, education and ethnically are not as large of a concern. When we look at age, the company tries to keep their image hip and cool to appeal to younger generation people. But also target the older generations by keeping the classic Coca-Cola image. Since age has a large impact on income, it would be expected that this would be an issue for the company. This is not necessarily true. The products they offer are affordable for most people, even young teens without a job relying on parents. This brings us to the idea of targeting different family types. Since age is not necessarily prohibiting family differences should not hurt.

43The sales of their products, but only help it because of the appeal to most people. It does not matter if you are single, married with no children, or even married with children. Their products are suited for all people.

In Coca-Cola news they tell us that they are working on efforts to, develop new drinks and to make juices, coffees, and teas (Coke, 2001) by implementing these changes, they are targeting parents of children for their juices, older people with coffees, and people who want a healthier alternative to carbonated beverages, with their teas. While Cokes core business will remain carbonated beveragesaccording to Mr. Heyer, we dont want to be limited.

Also included in deciding a market for a product are geographical considerations, psychographic details, situation and behavior/usage. Coke targets people throughout the world and of many different cultures. Because of this, their scope for geographical area is very broad. Although they advertise Coke as refreshing beverage, which would be needed more in warmer climates. It would be unwise of me to assume that advertising is different in other, warmer, climates, but it would only make sense. They would need to target someone wanting to quench their thirst rather than just enjoy a beverage.

442.2 THE COMPETITOR'S ANALYSIS

For more than a century, Coke and Pepsi vied for "throat share" of the world's beverage market. In the domestic beverage market, The Coca-Cola Bottlers Philippines, Inc.'s main competitor is the PepsiCo. The former painted to occupy the largest market share followed by the later. But the Cola war is not only for these two players.

PROJECTED COMPETITORS:

1. Pepsi Cola Products Philippines, Inc. (PCPPI) is 32.9% owned by PepsiCo.PCCPPI's brands in the market include Pepsi, Diet Pepsi, Pepsi Light, Pepsi Max, 7up, Diet 7up, Mountain dew, Jazz, Mirinda, and Mug.

2. Interdev Corporation is a subsidiary of beer company Asia Brewery Inc., which managed to secure a licensing agreement for virgin Cola, a popular brand in 2004. Virgin Cola comes in four variants: regular, diet, lemon, and lime. It competes with lower-priced brands in the market like Pop Cola, RC Cola and Jazz.

3.) Juice Company Zesto Corporation has also entered the soft drinks market via Zesto Cola in 1994. Its product "challenged the market leader in terms of taste, refreshing qualities, and price".

45Zesto has since diversified its carbonated drinks line to include Zesto Cola, Zero Cal, Root beer Light, Twist, Squiz Grape, Dalandan Fruit Soda, Calamansi Fruit Soda, and Pomelo Fruit Soda.

4.) Another player is Asia wide Refreshments Corporation, which is the Philippine's licensed bottling manufacturer and distributor of US brand RC Cola. The product is among the relatively low-priced brands in the local market.

To name a few, the substitute for soft drinks primarily includes coffee, traditional tea, and homemade juices.

Aside from above expected competitors, another leading player who is another threat to Coca-Cola Company is Nestle, the holding company of the Nestle Group engaged in the business of manufacturing and marketing branded food and beverages.

Leading player like Nestle have also diverse product ranges to be offered which even intensify competition more in the market.

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2.3 PRICING ANALYSIS

The amount of money charged for a product or service, or sum of the values that Consumers exchange for the benefits of having or using the product or services.

As price gives us the profit so this P is very important for business price of product should be that which gives maximum benefit to the company and which gives maximum satisfaction to the customer.

Following factors Coca Cola kept in mind while determining the pricing:

Price should be set according to the product demand of public.

Price should be that which gives the company maximum revenue.

Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy your product.

Price must be keeping the view of your target market.

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The price of Coca Cola, despite being market leader is the same as that of its competitorSometimes, Pepsi places its customers into some psychological pricing strategies by reducing a high priced bottle and consumers think that they save a lot of money from this.

Coca Cola has intense competition with neither Pepsi so its pricing cant exceed too much nor decrease too much as compared to the price of Pepsi Cola.

If price of the Coca Cola exceed too much from the Pepsi then people will shift to the Pepsi Cola and on the other hand if the price of Coca Cola decreases people might get the impression that its quality is also low.

48A. THE PRICE LIST OF COCA-COLA PRODUCTS

PRODUCTS SUGGESTED RETAIL PRICE (SRP)Coke SaktoP7.00Coke, Sprite, Royal Mismo P11.00Minute Maid Fresh 250 mlP12.00Minute Maid Fresh 800 mlP25.00Sprite, Royal 8ozP8.00Royal asstd GR/OR/LEMP8.00Coke, Sprite, Royal 12ozP12.00Coke, Sprite 400 mlP15.00Coke, Sprite, Royal, Sparkle KASALOP18.00Coke, Coke Zero, Sprite, Royal 1.5LP50.00Coke, Sprite, Royal in cansP25.00PowerAde Sports 500 mlP24.00Samurai 240 mlP10.00Real Leaf Frutcy 480 mlP19.00Viva Mineral 500 mlP11.00Wilkins Pure 500 mlP11.00Wilkins Pure 1LP22.00

492.4 THE CHANNELS OF DISTRIBUTION

Coca Cola Company makes two types of selling

Direct selling

Indirect selling

DIRECT SELLING

In direct selling they supply their products in shops by using their own transports. They have almost 550 vehicles to supply their bottles. In this type of selling company have more profit margin.

INDIRECT SELLING

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

502.5 THE COCA-COLA PROMOTIONS

The Coca-Cola Company has a lot of promotions some of these are:CHRISTMAS CARAVAN PACKSOUVENIR51TIE- UP WITH MCDONALDS

RAFFLE PROMO

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SHARE A COKE

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CHAPTER III ANALYSIS OF ISSUE54

3.1 THE SWOT ANALYSIS

STRENGTHS

The success of the soft drinks industry in the country hinges on several strengths (S). For one, Coca-Cola brands are well-established and have been in the market for several decades now.

The local base licensees also enjoyed strong support from the mother company offshore. Other than the brands have already developed a loyal customer base, the company established also extensive facilities and distribution networks all over the country.

Further, the company spent heavily on marketing and multi-media advertising support. Targeted advertising has been a major strength of the brand that it has the greater control over who sees ads and when they are seen. While Coca-Cola offers wide array of choices for the consumers, they also continuously pursue product innovations to cater to changing demands and lifestyle of the market.

From the use of innovative packaging techniques to social networking, to the use of advance technology, Coca-Cola has also big distribution network to operate and serve the market from any major points of the country.

55WEAKNESSES

In terms of weaknesses (W), sales have been declining in recent years due to reason potentially linked to employees who are not executing well their function effectively.

They are just complacent that the products no longer require efficient personal representation as marketing and advertising propagation are already seen in the multi-media outlets. Also, Coca-Cola products are relatively high compared to other brands that the present target markets (class B, C, D) preferred most to one with much lower price.

OPPORTUNITIES

An opportunity (O) for growth is seen in the introduction of new variants of soft beverages. Offered for those health-conscious driven individuals. The increasing incidence of eating-out among Filipino families also present opportunity as It may translate to more orders of carbonated drinks.

Indeed, the Filipino culture and long traditional practices and gatherings like fiestas, picnics, reunions, gimmicks, etc have all standing capability to increase strike rate of the product in the market. Moreover, the growing economy of the country also poses possible chance to increase the purchasing capability of the consumers.56

THREATS

Brought about by much intensified competition in the market, not only within the industry itself but also coming from other non-carbonated beverage such as bottled water, ready-to-drink teas, fruit juices, sports and among others.

The shift in consumer preferences towards soft beverages tied to health and wellness also offers threat to the company.

Scarcity of quality water, which is one vital component in producing soft drinks.

As graph exemplified expenditures in global perspective, Coca-Cola advertisement in the Philippines is undoubtedly striking fast as one among the leaders in terms in terms of advertisement publicities.

In the Philippines, soft drink industry is relatively disjointed as most of the market share is being dominated by the top players.

The market has the presence of leading players like Coca-Cola Bottlers, Philippines, Inc., PepsiCo, and Nestle.

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CHAPTER IV OBJECTIVES OF THE MARKETING PLAN

584.1 THE OBJECTIVES OF THE COCA-COLA COMPANY

The Coca Cola Company is successful in selling many of its products, however, there still be aspects that can be further improved. The first of these areas is that there are many products that are not as well known as the major brands of beverages, the well know Coca Cola, Sprite, Nestea, and PowerAde. One of our objectives is to promote the lesser-known products under Coca-Cola Enterprises to be more successful.In the next two years (by 2008), it is plan that an 100% sales increase will occur in such products as, Full Throttle, Hi-C, and Disneys Hundred Acre Woods. In order to achieve these goals we plan to focus more attention to the advertising of such products.The result of this will be an increase in sales for Coca-Cola Enterprises, an increase in Coca Colas market share, as well as a decrease in sales for other competitors. A second objective is to reposition Coca-Cola to be a healthier product. This is because consumers today are looking to lead healthier lives, choosing substitution goods. Cola has many different drinks, such as Minute Maid, and many different types of fruit juice beverages. These products contain many vital nutrients, such as Vitamin C. They have also received a health check from the Heart and Stroke Foundation, which the Coca Cola Company supports financially. It is planned for such information to be released to the public and by 2008; Coca Cola Enterprises would be repositioned as a healthier company in the consumers minds. It is planned that by 2008, a research conducted regarding favourite beverages will reveal that Coca Cola Enterprises products rank number one among the vast majority of consumers.59

CHAPTER VMARKETING STRATEGIES

60MARKETING STRATEGIESThe importance of strategy formulation is coping with competition and submission to the recent in the market trends.Customers variation is also critical for the company to be identified in order for them to determine who their target markets are. And the company should establish a strategy attuned to that compliance.

5.1 POSITIONING STRATEGY

Brand loyalty refers to a consumers attachment or devotion to a brand (Aaker, 1991). The power of the company sometimes comes from the power of its brands.Coca-Colas revolutionary approach to creating a position in a Prospective customers mind one that reflects a companys own strengths and competitive advantage should at most emphasized. Coca-Cola should reinforce the banner of Cola flavour as most superior among other competing category in terms of taste and preferences.The expanding carbonated soft drinks market has also been accompanied by an influx of newer brands that try to cater to different consumer tastes (Sen., 1997).To address the demand of health conscious markets. Coca-Cola needs to reposition those products (coke zero, diet coke, teas) to maximize potential gain of this losing slice of market share.

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5.2 PRICING STRATEGY

Price basically play relative role in consumer demand for soft drinks. Customers are price sensitive.

Basically the perception of the buyers that when a product is expensive, the quality of a product is good, and this holds true that even the use of price-quality approach has still banging impact on the consumers.

This is important to impart a message that Coca-Cola is a company categorically producing superior brands that deliberately attempt to offer more in terms of quality, service and or performance.

On the note, because the company is perfectly viable to maintain economies of scale, other non-performing brands can be offered in a price at par with the existing players to shy them away and gain dominant control over the market. Setting the price low attracts customers and gain market share.

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5.3 INTRODUCTION OF SUBSTITUTE PRODUCTS

Posed by perceived ominous health threat and other factors, the demand for CSD has been negatively affected.

Consumption of carbonated soft drinks in the Philippines has been in steady decline over the past years.

The profusion of these substitute beverages in the market are gaining consumer favor over CSDs.

Coca-Cola in this respect should vigorously position their substitute brands by making product known to the public.

Posed by perceived health benefits, these must be displayed at the leading business outlets, sari-sari store, convenience store, and retail trade partners to have consumer the preference over plethora of refreshment beverages in the market.

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5.4 INCENTIVISING BUSINESS PARTNERS

Market Execution Partners (sari-sari store, convenience store, supermarket, distributions, and retailers) are regarded as the most important business partners by the company.

For the company to gain loyalty, a TDI (trade deals incentives) should be extended to them.

By offering promotional and discounting strategy, expected ROI (return of investment) can be generated as both is harmonized in achieving goals (e.g. sales volume target and profits).

645.5 INTENSIFY MARKET SCANNING

The need to identify who and where your potential market is must present a potent consideration for Coca-Cola to focus on.

Target market, positioning, and segmentation should come into play so that a product is being offered at the right person and at the right place.

The effective use of Research and Development (R&D) aspect can bring so much to translate the intention of better identifying the needs and wants of the consumers in a given place.

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TABLE OF CONTENTS

Executive Summary. iCHAPTER I INTRODUCTION 11.1 The history of Coca-Cola Bottlers Philippines, Inc . 2-3 A. The Rise and fall of Coca-Cola Company 4-7 B. The Biography of the Coca-Cola Founder8-111.2 The products of Coca-Cola and its description.12-13 A. Soft Drinks Products..14-21 B. Coffee Products... 22 C. Tea Products...23-24 D. Sports Drink Products 25 E. Water Drink Products.26-27 F. Juice Drink Products..28-391.3 Status of the Industry 40-41

CHAPTER II MARKETING ENVIRONMENT 422.1 The market of Coca-Cola Bottlers Philippines, Inc .43-442.2 The Competitions Analysis..45-462.3 The Pricing Analysis 47-48 A. The Price List of Coca-Cola Products.. 49ii

2.4 The Channels of Distribution. 502.5 The Coca-Cola Promotions. 51-53

CHAPTER III ANALYSIS OF ISSUE 543.1 The SWOT Analysis.. 55-57

CHAPTER IV OBJECTIVES OF THE MARKETING PLAN 584.1 The Objectives of the Coca-Cola Company . 59

CHAPTER V MARKETING STRATEGY 605.1 Positioning Strategy. 61

5.2Pricing Strategy 62

5.3 Introduction of Substitute Product. 63

5.4 Incentivizing Business Partners... 64

5.5 Intensify Market Scanning.. 65

iii

CHAPTER VI PROJECTED INCOME STATEMENT.. 66-67

CHAPTER VII EVALUATION OF MARKETING PLAN 68-69

APPENDIXES

ivClassified - Internal useClassified - Internal use