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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
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