Description
Description of rural marketing initiatives taken by Coca cola India. It master the stratgies in following topics features and constraints of rural market, brand localization strategy, distribution strategy of coca cola, challenges in the rural market.
RURAL MARKETING
COCA COLA
19 Mar 2012
FLOW OF PRESENTATION
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
?
2
FEATURES OF RURAL REGIONS
Majority of the income comes from agriculture ? Infrastructure facilities ? Literacy ? Income ? Investment ? Savings
?
3
CONSTRAINTS OF RURAL MARKETS
Non-availability of retailers ? Scattered settlements ? Poor transportation facility ? Poor communication & mass media facilities ? Lack of product information ? Duplicate products ? Lack of Refrigeration Facilities ? Power Outage
?
4
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
?
5
ABOUT COCA COLA
?
Coca-Cola was created in 1886 by John Pemberton, a pharmacist sold the syrup as a potion for mental and physical disorders Coca-Cola was bought out by businessman Asa Griggs Candler Today leader in the world soft-drink market with over 500 beverage brands sold in 200 countries Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand
?
?
?
COCA COLA IN INDIA
1956 Coca-Cola came to India in the year
1977 Leading Soft drink but govt. policies necessitated its departure
1993 Coca-Cola Company reentered India
1999 Bought Thums up, Limca,Gold Spot, Citra
2002 76% sales growth by 2002
2011 Leads the Indian market
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): -includes small towns and rural areas, comprising the other 96% of the nation’s population -where both the soft drink category and individual brands were undeveloped -the task was to broaden the brand positioning
?
COKE RURAL INITIATIVES
?
Tremendous growth potential for coke in rural markets Using local language and idiomatic expressions
?
?
Competitive pricing
?Think local, act local? mantra
?
?
Bridging the gap between soft drinks and traditional refreshments
CONTD…
?
Tapping of local forms of entertainment Increase in the number of outlets Spends a lot on Doordarshan and Radio Huge investments in infrastructure
?
?
?
?
Result: 80% of new coke drinkers accounted by rural market
RURAL MARKETING STRATEGY
?
Availability Affordability
?
?
Awareness
11
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.
12
?
DISTRIBUTION STRATEGY
Moved from a centralized distribution model to a hub-andspoke approach ? Hit list of high potential villages from various districts ? Appointment of Hubs ? Offering of full-load supplies ? Fixed journey plans on a weekly basis
?
13
DISTRIBUTION STRATEGY CONTD.
14
AFFORDABILITY
?
According to survey conducted by CCI in 2001, 300 ml bottles were not popular Price of Rs 10 was considered as too high Chota Coke was introduced in 200 ml bottles and priced at Rs 5.
?
?
15
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.
?
?
16
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
17
?
?
?
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 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
18
COCA COLA PRODUCTS
19
RURAL SUCCESS
?
More than half of company sales are from rural and semi-urban areas 37% Growth in 2003 in rural markets Doubling of per capita consumption between 2001-2003
?
?
?
Currently market leader in soft drink segment in rural markets
20
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
21
CHALLENGES - ELECTRICITY SHORTAGE
eKOCool – Solar Powered Refrigerator ? Rural areas that suffer from power cuts ? The cooler can hold 48 bottles of 300ml. ? Beverages for 4-5 hours are chilled enough for consumption ? in Uttar Pradesh, shops with coolers that operate with brine solution so its products can stay chilled up to 12 hours without electricity ? In other places, it has trade agreements with local ice makers
?
22
CHALLENGES – ENVIRONMENTAL DAMAGE
?
Coke Uses Underground water for production
Coca-Cola India has become a net zero user of groundwater by the end of 2009. ? 3R policy for water management and conservation:
?
Reduce
?
Recycle
Replenish
Drip Irrigation Project—Public-Private-People Partnership
23
CHALLENGES – 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
?
?
24
25
doc_562038054.pptx
Description of rural marketing initiatives taken by Coca cola India. It master the stratgies in following topics features and constraints of rural market, brand localization strategy, distribution strategy of coca cola, challenges in the rural market.
RURAL MARKETING
COCA COLA
19 Mar 2012
FLOW OF PRESENTATION
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
?
2
FEATURES OF RURAL REGIONS
Majority of the income comes from agriculture ? Infrastructure facilities ? Literacy ? Income ? Investment ? Savings
?
3
CONSTRAINTS OF RURAL MARKETS
Non-availability of retailers ? Scattered settlements ? Poor transportation facility ? Poor communication & mass media facilities ? Lack of product information ? Duplicate products ? Lack of Refrigeration Facilities ? Power Outage
?
4
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
?
5
ABOUT COCA COLA
?
Coca-Cola was created in 1886 by John Pemberton, a pharmacist sold the syrup as a potion for mental and physical disorders Coca-Cola was bought out by businessman Asa Griggs Candler Today leader in the world soft-drink market with over 500 beverage brands sold in 200 countries Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand
?
?
?
COCA COLA IN INDIA
1956 Coca-Cola came to India in the year
1977 Leading Soft drink but govt. policies necessitated its departure
1993 Coca-Cola Company reentered India
1999 Bought Thums up, Limca,Gold Spot, Citra
2002 76% sales growth by 2002
2011 Leads the Indian market
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): -includes small towns and rural areas, comprising the other 96% of the nation’s population -where both the soft drink category and individual brands were undeveloped -the task was to broaden the brand positioning
?
COKE RURAL INITIATIVES
?
Tremendous growth potential for coke in rural markets Using local language and idiomatic expressions
?
?
Competitive pricing
?Think local, act local? mantra
?
?
Bridging the gap between soft drinks and traditional refreshments
CONTD…
?
Tapping of local forms of entertainment Increase in the number of outlets Spends a lot on Doordarshan and Radio Huge investments in infrastructure
?
?
?
?
Result: 80% of new coke drinkers accounted by rural market
RURAL MARKETING STRATEGY
?
Availability Affordability
?
?
Awareness
11
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.
12
?
DISTRIBUTION STRATEGY
Moved from a centralized distribution model to a hub-andspoke approach ? Hit list of high potential villages from various districts ? Appointment of Hubs ? Offering of full-load supplies ? Fixed journey plans on a weekly basis
?
13
DISTRIBUTION STRATEGY CONTD.
14
AFFORDABILITY
?
According to survey conducted by CCI in 2001, 300 ml bottles were not popular Price of Rs 10 was considered as too high Chota Coke was introduced in 200 ml bottles and priced at Rs 5.
?
?
15
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.
?
?
16
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
17
?
?
?
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 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
18
COCA COLA PRODUCTS
19
RURAL SUCCESS
?
More than half of company sales are from rural and semi-urban areas 37% Growth in 2003 in rural markets Doubling of per capita consumption between 2001-2003
?
?
?
Currently market leader in soft drink segment in rural markets
20
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
21
CHALLENGES - ELECTRICITY SHORTAGE
eKOCool – Solar Powered Refrigerator ? Rural areas that suffer from power cuts ? The cooler can hold 48 bottles of 300ml. ? Beverages for 4-5 hours are chilled enough for consumption ? in Uttar Pradesh, shops with coolers that operate with brine solution so its products can stay chilled up to 12 hours without electricity ? In other places, it has trade agreements with local ice makers
?
22
CHALLENGES – ENVIRONMENTAL DAMAGE
?
Coke Uses Underground water for production
Coca-Cola India has become a net zero user of groundwater by the end of 2009. ? 3R policy for water management and conservation:
?
Reduce
?
Recycle
Replenish
Drip Irrigation Project—Public-Private-People Partnership
23
CHALLENGES – 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
?
?
24
25
doc_562038054.pptx