Presentation1 coca

COCA COLA IN INDIAN RURALS

• COURSE: COSUMER BEHAVIOUR• KOUROSH SHARIFIRAD

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

2009 Rank 2008 Rank Brand Country of Origin

Sector 2009 Brand Value ($m)

Change in Brand Value

1 1United States

Beverages 68,734 3%

2 2United States

Computer Services

60,211 2%

3 3United States

Computer Software

56,647 -4%

4 4United States

Diversified 47,777 -10%

5 5 FinlandConsumer Electronics

34,864 -3%

6 8United States

Restaurants

32,275 4%

7 10United States

Internet Services

31,980 25%

8 6 Japan Automotive 31,330 -8%

9 7United States

Computer Hardware

30,636 -2%

10 9United States

Media 28,447 -3%

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

figures).

Rural 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.

Speaking in 26 lanuages

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 to

income , media , education , marketing efforts)

f) Buying behavior

The rural market

Recent trends:

a) Steady growth

b) Welcome change in the composition of rural

demand

c) Rural demand is more seasonal

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 1977• Coca-Cola returned to India in 1993• Coke’s acquisition of local popular Indian brands including Thums Up (the most

trusted brand in India), Limca, Maaza, Citra and Gold Spot

competitors

• The main competitor and rivalry of Coke is Pepsi• Coke launched ‘Thanda matlab Coca-Cola’, suddenly Pepsi

came 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/- to

boost 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.

Coca cola , rural marketing strategy

• Availability • Affordability• Acceptability

Availability(place)

• Developing distribution system• the company utilized auto rickshaws and cycles.• company used large trucks for transporting stock from

bottling plants to hubs and medium commercial vehicles transported the stock from the hubs to spokes.

• large distributors (Hubs) and also( Spokes)were appointed

Affordability(price & product)

• 300 ml bottles were not popular• rural 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.

Acceptability

• extensive marketing in the mass media .• outdoor advertising.• Put up billboards.• painted the name Coca Cola on the compounds of the• residences in the villages.• took part in the annual haats and fairs.

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

recommendations• Distributing new product as free in celebrations and fairs.

(promote)• Focusing on the new preferences• Establishing local TV channel to promote products• Doing social actions like support extending education, and

granting scholarship.• Changing mind of senior people • Holding magic shows to promote products