Date post: | 14-Jan-2017 |
Category: |
Marketing |
Upload: | abhisek-khatua |
View: | 279 times |
Download: | 7 times |
PRESENTED BY: ABHISEK KHATUA
Presentation on
“Coca-Cola India’s Thirst for the Rural market”
Presentation Outline
o Coca-Cola : The Company Back Groundo Coco-Cola Goes Ruralo Issueso Marketing Strategyo Advertising Strategyo Challengeso Future Prospectso Conclusion: The Better Decision
Coca-Cola : The Company Background
o Carbonated soft drink, sold in more than 200 countries
o Originally intended as patent medicine when it was invented in the
late 19th century by John Pemberton
o Coca-Cola was bought out by businessman Asa Griggs Candler
o Coca-Cola returned to India in 1993.
o Coke’s acquisition of local popular Indian brands including Thums
Up, Limca, Maaza, etc:- a strategic step & success.
Rural Market Scenario
o ‘Rural’- approx. 70% population engaged in agriculture related activity.
o approx. 700 million peopleo 1/3rd of country’s GNPo More than 450 districts, 6,30,000 villages o A typical village retail environment consists of 5-8 kirana
shops, the size of such stores varies depending on the size and population density of village where it serves.
Thanda Goes Ruralo CCI began focusing on the rural market in the early 2000 s’ in order
to increase volumes.
o Targeted at rural, semi urban customers.
o Idea was to position Coca-Cola as a generic brand for cold drinks.
"The rural market is a significant part of our marketing strategy which enables us to help the consumer link with our product.“
- Sanjeev Gupta, Marketing Director - Cola-Cola India, in August 1995.
"We want to be the Hindustan Lever of the Indian beverage business.“
- Sanjeev Gupta, Deputy President - Coca-Cola India in May 2002.
Challenges for Coke
Poor rural infrastructure
Erratic power supply
Different consumption habitsPreference for traditional cold beverages(lassi, lemon Juice)Price of the branded beverages
CCI’s Rural Marketing Strategy
Three A’s – Availability, Affordability and
Acceptability.
The First A – Availability emphasized on the
availability of the product to the consumer.
The Second A – Affordability focused on
product pricing.
The Third A – Acceptability focused on convincing the customer
to buy the product.
AVAILABILITY
Capacity expansion –
25 production
line .
Unique and different
distribution strategy – hub and spoke
distribution.
Coverage of 1,58, 342
villages.
2,00,000 refrigerators to rural retailers.
Re-Design of Distribution Channel
• Decentralized Distribution Model
• Change in Transportation Vehicles to be used
AFFORDABILITY
Introduction of 200ml bottle (chota coke).
Priced at Rs. 5, closed the gap between Coke and basic refreshments.
ACCEPTIBILITY
Put up hoardings in villages and painted the name Coca-Cola on the compounds of the residences in the villages.
Participated in the weekly mandies by setting up temporary retail outlets.
Took part in the annual haats and fairs which was a major source of business activity and entertainment.
ADVERTISING STRATEGYo In 2002, CCI launched a new advertisement campaigno Featuring Bollywood star Aamir Khan.o Tagline – ‘Thanda matlab Coca-Cola’.o Ad 1 - Tapori – connection of coke with thanda was made.o Ad 2 - Hyderabadi shopkeeper – shopkeeper equates the word thanda
with Coca-Cola.o Ad 3 - Punjabi farmer – when one asks for thanda, one
would get coke.o Print Media Ads in different newspaperso It doubled the spend on Doordarshan.
FUTURE PROSPECTS OF COKECCI’s volume
from rural market
increased to approx 30% .
Rural penetration increased to
25%
Target of reaching 0.1 million more
villages
Now Biggest challenge is to increase the market
share
Diversification – nimbu pani, fruit
juice
ISSUES IN COKE
Pesticides Issue and building confidence .
Infrastructure in distribution network.
Competing with local brands
Advertisement spending
Diversification
THE BETTER DECISION
Flat sales in urban markets.
Huge size of
untapped rural
market.
Improvement in
income and
spending power of
rural people.
Better physical
distribution channel.
Increased awareness
due to television
reach.
Thank You