8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 1/18

COCA COLA IN INDIAN RURALS

COURSE: COSUMER BEHAVIOUR

KOUROSH SHARIFIRAD

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 2/18

Coca cola profile

established in 1886 by John Pembertonin Atlanta,

Georgia

the world¶s largest manufacturer

The world¶s best brand

sells 1.5 billion products from more than 450

different brands in more than 200 countries per day

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 3/18

2009 Rank 2008 Rank Brand Country of Origin Sector

2009BrandValue($m)

Change inBrandValue

1 1UnitedStates Beverages 68,734 3%

2 2 UnitedStates

ComputerServices 60,211 2%

3 3 UnitedStates

ComputerSoftware 56,647 -4%

4 4 UnitedStates Diversified 47,777 -10%

5 5 Finland ConsumerElectronics 34,864 -3%

6 8 UnitedStates

Restaurants 32,275 4%

7 10 UnitedStates

InternetServices 31,980 25%

8 6 Japan Automotive 31,330 -8%

9 7 UnitedStates

ComputerHardware 30,636 -2%

10 9 UnitedStates Media 28,447 -3%

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 4/18

Indian marketTotal Population :1,166,079,217 (July 2009 estimated. CIA) 1,028.7 million (2001 Census final

figures).

R ural Population :72.2%

742,490,639 (2001 Census)

Urban Population :27.8%

286,119,689 (2001 Census)Age structure:

0±14 years: 30.8%, male: 188,208,196, female: 171,356,024

15±64 years: 64.3%, male: 386,432,921, female: 364,215,759

65+ years: 4.9%, male: 27,258,259, female: 30,031,289 (2007 est.)

Median age:25.1 years

Population growth rate :1.548% (2009 est.)

India's GDP is US$1.237 trillion.

India's nominal per capita income US$1,068 is ranked 128th in the world.

S peaking in 26 lanuages

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 5/18

Target market: The rural market

The rural consumer

a) Income: low purchasing power

b) Heterogeneous market: language ,culture ,religion

c) infrastructure: transportation, banks , electricity, transition

channels,..

d) Literacy level: 28% increasing.

e) Life style: conservative & tradition bound.(changing due toincome , media , education , marketing efforts)

f) Buying behavior

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 6/18

The rural market

Recent trends:

a) Steady growth

b) Welcome change in the composition of rural

demand

c) R ural demand is more seasona l

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 7/18

Coke in India

India gained its independence in 1947 under Mahatma Ghandi and his principles of non-violence and self-reliance.Coca-Cola was the leading soft drink brand in India until 1977Coca-Cola returned to India in 1993

Coke s acquisition of local popular Indian brands including Thums Up (the mosttrusted brand in India), Limca, Maaza, Citra and Gold Spot

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 8/18

competitors

The main competitor and rivalry of Coke is PepsiCoke launched Thanda matlab Coca-Cola , suddenly Pepsicame up with Thanda- Chelaga Kya .

Like Coca cola, PepsiCo launched 200 ml bottles priced at Rs.5.Pepsi-Co slashed the price of its 300 ml bottles to Rs 6/- toboost volumes in urban areas.

The Coca-Cola Company purchased Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% market-share in India.

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 9/18

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 10/18

Coca cola , rural marketing strategy

AvailabilityAffordability

Acceptability

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 11/18

Availability(place)Developing distribution systemthe company utilized auto rickshaws and cycles.company used large trucks for transporting stock frombottling plants to hubs and medium commercial vehiclestransported the stock from the hubs to spokes.large distributors (Hubs) and also( Spokes)were appointed

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 12/18

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 13/18

Affordability(price & product)

300 ml bottles were not popularrural market was very price-sensitive.It was Rs10 (10%of average day s wage of Rs 100)launched 200 ml bottles (Chota- Coke) priced at Rs 5.Sale amount doubled.

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 14/18

Acceptability

extensive marketing in themass media .

outdoor advertising.Put up billboards.painted the name Coca Cola

on the compounds of theresidences in the villages.took part in the annual haats and fairs.

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 15/18

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 16/18

Thanda Matlab Coca-Cola ("Cold means Coca-Cola!")

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 17/18

recommendationsDistributing new product as free in celebrations andfairs.(promote)Focusing on the new preferencesEstablishing local TV channel to promote products

Doing social actions like support extending education, andgranting scholarship.Changing mind of senior peopleHolding magic shows to promote products

8/9/2019 Coca cola in india (rural areas)

http://slidepdf.com/reader/full/coca-cola-in-india-rural-areas 18/18