Description
Rural Marketing Strategies adopted by Coca Cola. It highlights the features and constraints of rural markets. It describes the history of Coke in India and their rural initiatives.
RURAL MARKETING STRATEGIES OF
COCA COLA
AGENDA
Features and Constraints of Rural Market ? Coke in India ? Coke Rural Initiatives ? Brand Localization ? Rural Market Strategy ` ? Distribution and Advertising Strategy ? Rural Success ? Pepsi vs Coke ? Pesticide issue
?
FEATURES OF RURAL REGIONS
Large no. of consumers ? Density of population ? Majority of the income comes from agriculture ? Infrastructure facilities ? literacy ? Income ? Investment ? Savings
?
CONSTRAINTS OF RURAL MARKETS
Non-availability of retailers ? Scattered settlements ? Poor transportation facility ? Poor communication & mass media facilities ? Lack of product information ? Duplicate products
?
CONSTRAINTS OF RURAL MARKETS (CONT.)
Increase in the cost of distribution ? No warehousing facilities ? Inadequate banking facilities ? Seasonal income ? Inadequate credit facilities ? Low purchasing power
?
COKE IN INDIA
?
?
Leading soft drink brand in India until 1977
Acquisition of local popular Indian brands
?
?
39% volume growth in 2002
Domination of market by Coke & Pepsi
?
76% sales growth of soft-drinks between 1998-2002
COKE RURAL INITIATIVES
?
Competitive pricing Increase in the number of outlets
?
?
Bridging the gap between soft drinks and other local options Doubled the spend on Doordarshan
?
CONTD…
?
Tapping of local forms of entertainment
Huge investments in infrastructure
?
?
Result: 80% of new coke drinkers accounted by rural market
Tremendous growth for coke in rural markets
?
„THANDA? GOES RURAL
?
Advertisement campaign featuring Aamir Khan Generic brand for cold-drinks
?
?
The Accessibility Campaign
Investment in distribution infrastructure
?
BRAND LOCALIZATION STRATEGY
The two Indias:
?
1) India A (Life ho to aisi): Metropolitan areas and large towns 2) India B ( Thanda matlab coca-cola): Smaller towns
?
RURAL MARKETING STRATEGY
?
Availability Affordability
?
?
Awareness
AVAILABILITY
?
Strong distribution network; Central distribution system not feasible for rural areas; All-possible means of transportation used for transporting the stock;
?
?
?
Adopted hub and spoke distribution system;
Changed its distribution model.
?
AFFORDABILITY
?
According to survey conducted by CCI in 2001, 300 ml bottles were not popular; Price of Rs 10 was considered as too high; Significant changes made thereafter to win over the consumers; Chota Coke was introduced in 200 ml bottles and priced at Rs 5.
?
?
?
AWARENESS
?
Extensive marketing in mass media as well as outdoor advertising adopted; Hoardings were put and also name Coca Cola was painted on the compound; Participated in the weekly mandies along with annual haats and fairs.
?
?
DISTRIBUTION STRATEGY
?
Hit list of high potential villages from various districts Appointment of Hubs Offering of full-load supplies Fixed journey plans on a weekly basis
?
?
?
ADVERTISING STRATEGY
?
Communication media used in cities and urban areas would not work in villages Hence Coke decided to concentrate on 47,000 haats (weekly markets) & 25,000 melas (fairs) held annually in various parts of the country. CCI also launched television commercials (TVCs) targeted at rural consumers CCI increased its ad-spend on Doordarshan
?
?
?
CONTD…
?
CCI launched “Chota Coke” in 2002 at Rs.5 It released a commercial showing Aamir Khan with 200 ml bottles to communicate message of the price cut This commercial was shot in a rural setting targeting rural market
?
?
CONTD…
?
2002, CCI launched a new advertisement campaign
Featuring Bollywood star Aamir Khan ? Targeted at rural, semi urban customers ? Aimed to make Coke as a generic brand under name “Thanda”
?
?
Idea was to position Coca-Cola as a generic brand for cold drinks.
CONTD…
?
Thanda Matlab Coca-cola
Three commercials featuring Aamir Khan: 1.Tapori 2.Hyderabadi Shop-keeper 3.Punjabi Farmer
?
COCA COLA PRODUCTS
RURAL SUCCESS
?
Rural Market- an attractive target 37% Growth in 2003 in rural markets Doubling of per capita consumption between 2001-2003
?
?
?
50% of company sales in 2003
PEPSI VS COKE
?
Pepsi- Main competitor & rival
Major regional players in rural market Focus of Pepsi on rural markets Slashing of price of 300ml bottles by Pepsico
?
?
?
PESTICIDE ISSUE
•
High pesticide content in soft drinks manufactured and sold by both cola majors.
?
Social and political groups against coke
A considerable decline in sales after August 2003.
•
doc_507623032.pptx
Rural Marketing Strategies adopted by Coca Cola. It highlights the features and constraints of rural markets. It describes the history of Coke in India and their rural initiatives.
RURAL MARKETING STRATEGIES OF
COCA COLA
AGENDA
Features and Constraints of Rural Market ? Coke in India ? Coke Rural Initiatives ? Brand Localization ? Rural Market Strategy ` ? Distribution and Advertising Strategy ? Rural Success ? Pepsi vs Coke ? Pesticide issue
?
FEATURES OF RURAL REGIONS
Large no. of consumers ? Density of population ? Majority of the income comes from agriculture ? Infrastructure facilities ? literacy ? Income ? Investment ? Savings
?
CONSTRAINTS OF RURAL MARKETS
Non-availability of retailers ? Scattered settlements ? Poor transportation facility ? Poor communication & mass media facilities ? Lack of product information ? Duplicate products
?
CONSTRAINTS OF RURAL MARKETS (CONT.)
Increase in the cost of distribution ? No warehousing facilities ? Inadequate banking facilities ? Seasonal income ? Inadequate credit facilities ? Low purchasing power
?
COKE IN INDIA
?
?
Leading soft drink brand in India until 1977
Acquisition of local popular Indian brands
?
?
39% volume growth in 2002
Domination of market by Coke & Pepsi
?
76% sales growth of soft-drinks between 1998-2002
COKE RURAL INITIATIVES
?
Competitive pricing Increase in the number of outlets
?
?
Bridging the gap between soft drinks and other local options Doubled the spend on Doordarshan
?
CONTD…
?
Tapping of local forms of entertainment
Huge investments in infrastructure
?
?
Result: 80% of new coke drinkers accounted by rural market
Tremendous growth for coke in rural markets
?
„THANDA? GOES RURAL
?
Advertisement campaign featuring Aamir Khan Generic brand for cold-drinks
?
?
The Accessibility Campaign
Investment in distribution infrastructure
?
BRAND LOCALIZATION STRATEGY
The two Indias:
?
1) India A (Life ho to aisi): Metropolitan areas and large towns 2) India B ( Thanda matlab coca-cola): Smaller towns
?
RURAL MARKETING STRATEGY
?
Availability Affordability
?
?
Awareness
AVAILABILITY
?
Strong distribution network; Central distribution system not feasible for rural areas; All-possible means of transportation used for transporting the stock;
?
?
?
Adopted hub and spoke distribution system;
Changed its distribution model.
?
AFFORDABILITY
?
According to survey conducted by CCI in 2001, 300 ml bottles were not popular; Price of Rs 10 was considered as too high; Significant changes made thereafter to win over the consumers; Chota Coke was introduced in 200 ml bottles and priced at Rs 5.
?
?
?
AWARENESS
?
Extensive marketing in mass media as well as outdoor advertising adopted; Hoardings were put and also name Coca Cola was painted on the compound; Participated in the weekly mandies along with annual haats and fairs.
?
?
DISTRIBUTION STRATEGY
?
Hit list of high potential villages from various districts Appointment of Hubs Offering of full-load supplies Fixed journey plans on a weekly basis
?
?
?
ADVERTISING STRATEGY
?
Communication media used in cities and urban areas would not work in villages Hence Coke decided to concentrate on 47,000 haats (weekly markets) & 25,000 melas (fairs) held annually in various parts of the country. CCI also launched television commercials (TVCs) targeted at rural consumers CCI increased its ad-spend on Doordarshan
?
?
?
CONTD…
?
CCI launched “Chota Coke” in 2002 at Rs.5 It released a commercial showing Aamir Khan with 200 ml bottles to communicate message of the price cut This commercial was shot in a rural setting targeting rural market
?
?
CONTD…
?
2002, CCI launched a new advertisement campaign
Featuring Bollywood star Aamir Khan ? Targeted at rural, semi urban customers ? Aimed to make Coke as a generic brand under name “Thanda”
?
?
Idea was to position Coca-Cola as a generic brand for cold drinks.
CONTD…
?
Thanda Matlab Coca-cola
Three commercials featuring Aamir Khan: 1.Tapori 2.Hyderabadi Shop-keeper 3.Punjabi Farmer
?
COCA COLA PRODUCTS
RURAL SUCCESS
?
Rural Market- an attractive target 37% Growth in 2003 in rural markets Doubling of per capita consumption between 2001-2003
?
?
?
50% of company sales in 2003
PEPSI VS COKE
?
Pepsi- Main competitor & rival
Major regional players in rural market Focus of Pepsi on rural markets Slashing of price of 300ml bottles by Pepsico
?
?
?
PESTICIDE ISSUE
•
High pesticide content in soft drinks manufactured and sold by both cola majors.
?
Social and political groups against coke
A considerable decline in sales after August 2003.
•
doc_507623032.pptx