coca cola rural market

8/8/2019 Coca Cola Rural Market

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COCA COLA



y µRural¶- approx 70% population engaged in agriculture related activity.

y approx 700 million people

1/3rd of country¶s GNP

More than 450 districts, 6,30,000 villages

y A typical village retail environment consists of 5-8 k irana shops, thesize of such stores varies depending on the size and population density of village w here it serv es.



Coca-Cola (coke)

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and v ending machines internationally. The Coca-Cola Company claims that the be v erage is sold in more than 200 countries. and it is often ref erred to simply as Coke (a registered trademark of The Coca-Cola Company in the UnitedStates since March 27, 1944). Originally intended as patent medicine w hen it w as inv ented in the late 19th century by John Pem berton, Coca-Cola w as bought out by businessman A sa Griggs Candler



y A fter a 16-y ear absence, Coca-Cola returned to India in 1993,cementing its presence w ith a deal that gav e Coca-Cola o w nership of the nation¶s top soft-drink brands and bottling net w ork .

y Coke¶s acquisition of local popular India brands including Thums Up, Limca, Maaza, Citra etc:- a strategic step & success.



In 2002, CCI launched a new ad v ertisement campaign:-

Featuring Bolly w ood star A amir Khan.

Tagline ± µThanda matlab Coca-Cola¶.

Targeted at rural, semi urban customers.

Idea w as to position Coca-Cola as a generic brand for cold drink s.

CCI began focusing on the rural market in the early 2000s in order to increase volumes.

Rs.5, this pricing strategy closed the gap bet ween Coke and basic refreshments like lemonade and tea, mak ing soft drink s truly accessiblefor the first time.



THE BETTER DECISION

Flat sales in urban

markets.

Huge size of untapped

rural market.

Improv ement in income

and spending po wer of

rural people.

Better physical

distribution channel.

Increaseda w areness

due to tele vision

reach.



CCI¶s R UR AL MA RKETING STR A TEGY

CCI¶s rural marketing strategy w as based on three A ¶s ± A vailability, A ffordability and A cceptability.

The First A ± A vailability emphasized on the availability of

the product to the consumer.

The Second A ± A ffordability focused on product pricing.

The Third A ± A cceptability

focused on convincing thecustomer to buy the product.



AVAILABILIT Y

Capacity expansion ±

25 production line .

Unique anddiff erent

distribution strategy ± hub

and spokedistribution.

Cov erage of

1,58, 342 villages.

2,00,000refrigerators

to rural retailers.



AVAILABILIT Y

CCI realized that the centralized

distribution

system used by thecompany in theurban areas w ouldnot be suitable for rural areas so the y

adopted HUB AND SPOKE

DISTR IBUTIONstrategy.



A FFOR DABILIT Y

Introduction of 200ml bottle

(chota coke).

Priced at Rs. , closed the ga betw een oke

and basic refreshments.



ACCEPTIBILIT Y

The company put up hoardings in villages and painted the name Coca-

Cola on the compounds of theresidences in the villages.

CCI also participated in the week ly mandies by setting up temporary

retail outlets, and also took part in the annual haats and fairs w hich w as a major source of business

activity and entertainment.



ADV ERTISING STR A TEGY

Commercials sho wed progression in associating

µCoke¶ w ith µThanda¶ in a rural/semi urban context.

Ad 1 - Tapori ± connection of coke w ith thanda w as

made.

Ad 2 - Hy derabadi shopkeeper ± shopkeeper equates

the w ord thanda w ith Coca-Cola.

Ad 3 - Punjabi farmer ± w hen one ask s for thanda, one w ould get coke.



FUTURE PR OSPECTS OF COKE

CCI¶s volumefrom rural

market increasedto approx 30% .

Focus on rural penetration

Target of reaching 0.1 million more

villages

Biggest challenge is to

increase themarket share

Div ersification ± nim bu pani,

fruit juice



SEGMENT A TION

Psychographic Segmentation

Socioeconomic Class: Middle and Upper

Lif estyle : Status seekers

Behavioral Segmentation

Occasions: R egular and Special

Benefits:

y Econom y

y V alue for the mone y

y R efreshment



PERCEPTUAL MAPPING

High R efreshment

Econom y Expensiv e

Lo w R efreshment



CB NEEDS

22

Physiological Needs

(Food, water, air, shelter, sex)

Safety and Security Needs

(Protection, order, stability)

Social Needs

(affection, friendship, belonging)

Maslow¶s Hierarchy of Needs

Ego Needs

(Prestige, status, self esteem)

Self-Actualization

(Self-fulfillment)



TR AIT THEOR Y

Highly dogmatic

Other-DirectedSocial

Character

Social Self-Image



POSITIONING

Ù Positioning A gainst Competition

Ù Positioning Based on a Specific Benefit

coca cola rural market

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