(Rural penetration of Coca -cola)(Rural penetration of Coca -cola)

Hindustan Coca-Cola Beverages Pvt Hindustan Coca-Cola Beverages Pvt Ltd. NAJIBABAD , BIJNOR, (U.P.)Ltd. NAJIBABAD , BIJNOR, (U.P.)

COCA-COLA ENTERPRISE INC.COCA-COLA ENTERPRISE INC.

Type Private Type Private Founded 1886Founded 1886 Headquarters Atlanta Georgia USAHeadquarters Atlanta Georgia USA Chief Executing Officer John BrockChief Executing Officer John Brock Chief Financial Officer William W DouglasChief Financial Officer William W Douglas Industry BeveragesIndustry Beverages Revenue $19800 billion USDRevenue $19800 billion USD Operating income $1.495 billion USDOperating income $1.495 billion USD Net Income $1.143 billion USDNet Income $1.143 billion USD Employees 73000 (approx) Employees 73000 (approx)

Rural Market Scenario ‘Rural’ – 75% population engaged in agriculture related

activity According to industry estimates 70% of population engaged

in agricultural activity. 700 million people (Aug. 2002) 1/3rd of country’s GNP 450 districts, 6,30,000 villages approx. Rural India is also characterized by growing affluence: agricultural output increasingly to early 215 millions tonnes in 2004 compared to 176 millions in 1991.

The Decision was not surprising…

Flat sales in urban markets. Huge size of untapped rural market. Improvement in income and spending power

of rural people. Better physical distribution channel. Aspirations for urban lifestyle. Increased awareness due to television reach.

CCI’s Rural Mktg. Strategy

Three As Availability: Capacity expansion – 25 prod. lines and doubled bottle capacity. Unique and different distribution strategy – hub & spoke distribution. Coverage of 1,58,342 villages by Aug. 2003 (81,383 in 2001). 2,00,000 refrigerators to rural retailers. Affordability Introduction of 200ml bottle . Priced at Rs. 5, closed the gap between Coke and basic refreshments. Acceptability Mass media marketing. Launched TVCs targeted at rural consumers.

Rural market is more comfortable..

Huge market High growth in terms of sales Change in the life style Increase in the per capita income It can substitute other products

Rural penetration Rural penetration

By the specific survey, which was conducted by By the specific survey, which was conducted by Coca-Cola organization want to know about Coca-Cola organization want to know about the right picture of market of rural bijnor the right picture of market of rural bijnor region? This work study provides extensive region? This work study provides extensive information about the position of company’s information about the position of company’s brand in rural bijnor.brand in rural bijnor.

OBJECTIVES OF STUDYOBJECTIVES OF STUDY To get the retailer’s wants in terms of product selling.To get the retailer’s wants in terms of product selling. To know effectiveness of the marketing strategy & sales promotions in To know effectiveness of the marketing strategy & sales promotions in

market.market. Visicoolers survey in rural market of bijnor region. Visicoolers survey in rural market of bijnor region. Ensuring the visibility of the product.Ensuring the visibility of the product. Ensuring the availability of products in outlets.Ensuring the availability of products in outlets. Analyzing the effect of scheme.Analyzing the effect of scheme. Analyzing the effect of discounts. Analyzing the effect of discounts. Evaluating the competitor’s strength & weakness in rural market.Evaluating the competitor’s strength & weakness in rural market. Retailer’s expectation from company.Retailer’s expectation from company.

TYPES OF OUTLETSTYPES OF OUTLETS

The company has divided their outlets on the The company has divided their outlets on the basis of the following criteria-basis of the following criteria-

VolumeVolume ChannelChannel Income groupIncome group

VOLUMEVOLUME

There are four types of outlets according to the volume of There are four types of outlets according to the volume of sales of the outlet-sales of the outlet-

Diamond - 800>C/s & aboveDiamond - 800>C/s & above Gold - 500-799C/sGold - 500-799C/s Silver - 200-499C/sSilver - 200-499C/s Bronze - <200C/sBronze - <200C/s

CHANNELCHANNEL

GROCERY STOREGROCERY STORE EATING & DRINKING CHANNELEATING & DRINKING CHANNEL 11 EATING & DRINKING CHANNEL 2EATING & DRINKING CHANNEL 2 CONVENIENCE CHANNELCONVENIENCE CHANNEL

INCOME GROUPINCOME GROUP

According to the income group of the area-According to the income group of the area- LowLow MediumMedium HighHigh

MY ROLE IN PROJECT MY ROLE IN PROJECT

Identify OUTLET which sale coke product.Identify OUTLET which sale coke product. The shopkeeper’s demand & agreed FOR The shopkeeper’s demand & agreed FOR

MONOPOLY(SALE EXL COKE PROD)MONOPOLY(SALE EXL COKE PROD) Prime location(Out side or at the enterence) outlets which Prime location(Out side or at the enterence) outlets which

attract more foot fall (costumers) towards the store.attract more foot fall (costumers) towards the store. Ready for all agreement those have Coca-Cola.Ready for all agreement those have Coca-Cola. Mostly coolers put Outside the Soap to attract more Mostly coolers put Outside the Soap to attract more

consumers.consumers.

PRODUCT PROFILEPRODUCT PROFILE

DIFFERENT BRANDS OF COMPANYDIFFERENT BRANDS OF COMPANY

The Coca-Cola Company offers a wide The Coca-Cola Company offers a wide range of products to the customers including range of products to the customers including beverages, fruit, juices and bottled mineral beverages, fruit, juices and bottled mineral water. water.

In the Cola Section:In the Cola Section:

•In the Lemon Section

In the Orange & Apple section:In the Orange & Apple section:

•In the mango section:

In the juice section :In the juice section :

•In the Soda Water and Bottled Mineral Water section:

BRANDS TAGLINEBRANDS TAGLINE

Thumsup - Taste the thunderThumsup - Taste the thunder Cocacola - Open happinessCocacola - Open happiness Sprite - Seedhi baat no Sprite - Seedhi baat no

bakwaas ,clear haibakwaas ,clear hai Limca - Fresh ho jaoLimca - Fresh ho jao Fanta - Go biteFanta - Go bite Maaza - Bina guthli wala aamMaaza - Bina guthli wala aam

BRAND AMBASSDORSBRAND AMBASSDORS

Thumsup -Akshay KumarThumsup -Akshay Kumar Cocacola -Aamir KhanCocacola -Aamir Khan Sprite -Shahrukh KhanSprite -Shahrukh Khan Fanta -Genelia D’souzaFanta -Genelia D’souza Limca -Riya SenLimca -Riya Sen

PACKAGING DETAILSPACKAGING DETAILSPACKPACK MAAZAMAAZA COKECOKE THUMSUPTHUMSUP FANTA FANTA SPRITESPRITE LIMCALIMCA SODASODA

300ML300ML NONO YESYES YESYES YESYES YESYES YESYES YESYES

200ML200ML NONO YESYES YESYES YESYES YESYES YESYES NONO

250ML250ML YESYES NONO NONO NONO NONO NONO NONO

2 LTR2 LTR NONO YESYES YESYES YESYES YESYES YESYES NONO

600ML600ML YESYES YESYES YESYES YESYES YESYES YESYES YESYES

1.2 LTR1.2 LTR1 LTR1 LTR

YESYES NONOYESYES

NONO NONOYESYES

NONO NONOYESYES

NONO

NUMBER OF BOTTLES IN A CASENUMBER OF BOTTLES IN A CASE

PACKPACK NO.OF BOTTLES IN A CASENO.OF BOTTLES IN A CASE

300ML300ML 2424

200ML200ML 2424

250ML250ML 2424

2 LITRES2 LITRES 99

600ML600ML 2424

1.2 LTR1.2 LTR

1 LTR1 LTR

1212

66

ADVERTISINGADVERTISING

BRAND AMBASSDORS & TV BRAND AMBASSDORS & TV COMMERCIALSCOMMERCIALS

BY POSTERSBY POSTERS PRINT ADVERTISINGPRINT ADVERTISING

PROMOTION BY THE COMPANYPROMOTION BY THE COMPANY

Promotional strategy during IPL matches Promotional strategy during IPL matches

Lucky Coupon Dinner with kings XI Punjab

CONT………..CONT………..

Sprite “kholega toh bolega” IPL Season 2Sprite “kholega toh bolega” IPL Season 2

PROMOTION DURING OFF PROMOTION DURING OFF SEASONSEASON

Limca Launches ‘Laptop Ki Barish’ Limca Launches ‘Laptop Ki Barish’ Consumer InitiativeConsumer Initiative

RESEARCH METHODOLOGYRESEARCH METHODOLOGY

The study includes two methods-The study includes two methods- (a) PRIMARY (a) PRIMARY (b)SECONDARY(b)SECONDARY Primary includes the following ways- Primary includes the following ways-

ObservationObservation ExperimentExperiment SurveySurveyHere I include the primary method of surveyHere I include the primary method of survey

Sampling planSampling plan

Sampling unit - Owners of the retail outlets.Sampling unit - Owners of the retail outlets. Sampling size- 250 outletsSampling size- 250 outlets Sampling procedure-Random samplingSampling procedure-Random sampling Sampling method- Retailers surveySampling method- Retailers survey

ANALYSISANALYSIS

SIZE OF VISICOOLERSIZE OF VISICOOLER

1% 7%

82%

8% 2%

20c/s

9c/s

7c/s

4c/s

2c/s

IS the regular supply of coca-colaIS the regular supply of coca-cola

20%

80%

Is good

Some gap

HOW MUCH HAS THE VISIBLE HOW MUCH HAS THE VISIBLE PRODUCT?PRODUCT?

VISIBLE PRODUCT

105

36 30

90

145

214 220

160

0

50

100

150

200

250

BOARD FLANGE RACK TABLE TOP

YES

NO

LEADING BRAND OF LEADING BRAND OF COCACOLACOCACOLA

Brand share

63%2%

14%

6%7%

8%

THUMSUP

COKE

SPRITE

LIMCA

FANTA

MAAZA

CHANNEL OF COKECHANNEL OF COKE

5%

66%

29%

E & D

CONVENIENCE

GROCERY

OUTLET BELONG TO WHICH OUTLET BELONG TO WHICH CLASSCLASS

CLASS OUTLET

92

56

83

19DIAMOND

GOLD

SILVER

BRONZE

Scheme by distributorScheme by distributor

25%

75%

Yes

No

MARKET SHAREMARKET SHARE

MARKET SHARE

71%

29%

COKE

PEPSI

Which scheme preferWhich scheme prefer

0

50

100

1

Promotional Scheme preference

Others

Discount

Daily scheme

Good signage

FINDINGSFINDINGS Price factor (price has increased in compression of 2006-07)Price factor (price has increased in compression of 2006-07) Competition with local drink like- Fruit juice,lemon water, Competition with local drink like- Fruit juice,lemon water,

sharbat & lassi.teasharbat & lassi.tea Competition with local drink brands like- Jayanti,Lijjet, Competition with local drink brands like- Jayanti,Lijjet,

Premji in small areas.Premji in small areas. C/s problems.C/s problems. Irregular supply in small villages.Irregular supply in small villages. Find impurity Coca-Cola visicoolers.Find impurity Coca-Cola visicoolers. I find so many OYC, VISI, D-FREEZE & other company freeze I find so many OYC, VISI, D-FREEZE & other company freeze

in different areas in differ region.in different areas in differ region. Found so many outlets they want visi coolers from Coca-Cola.Found so many outlets they want visi coolers from Coca-Cola. Also found dead & useless coolers.Also found dead & useless coolers. Some retailers complain about the service & repair of coolers.Some retailers complain about the service & repair of coolers.

FACTSFACTS

The most popular flavor is Thumsup in the The most popular flavor is Thumsup in the whole market.whole market.

Cocacola is the market leader and Pepsi is the Cocacola is the market leader and Pepsi is the market challenger.market challenger.

Thumsup has the highest sales from the Coca Thumsup has the highest sales from the Coca cola’s side and from the Pepsi‘s side mountain cola’s side and from the Pepsi‘s side mountain Dew has the highest sales.Dew has the highest sales.

AAquafina has more sales then Kinley in quafina has more sales then Kinley in mineral water segment.mineral water segment.

Cont………..Cont………..

Pepsi provides more schemes then Coca-Cola.Pepsi provides more schemes then Coca-Cola. Sprite has the fastest grownup brand in the Sprite has the fastest grownup brand in the

clear lime segment in the recent years.clear lime segment in the recent years. In the off season when the sale is reduced In the off season when the sale is reduced

retailers want more schemes.retailers want more schemes. Minute maid has not getting good response Minute maid has not getting good response

from the market.from the market.

SUGESSTIONSSUGESSTIONS

Delivery position should be maintained to get good Delivery position should be maintained to get good return from the market.return from the market.

The company must try to make different brands of The company must try to make different brands of Coca-Cola available at every retail outlet whether it Coca-Cola available at every retail outlet whether it is large or small, otherwise the consumer may go for is large or small, otherwise the consumer may go for substitute.substitute.

The company should take steps to replace damaged The company should take steps to replace damaged or unsellable Coca-Cola goods frequently from the or unsellable Coca-Cola goods frequently from the retailers.retailers.

The Company employees should make direct The Company employees should make direct contact with the consumers, contact with the consumers,

Continue…..Continue…..

Distributors should be convinced to pass the incentives to the Distributors should be convinced to pass the incentives to the retailers so that they are motivated to promote this brand.retailers so that they are motivated to promote this brand.

Try to decrease the price of commodity in competition of Try to decrease the price of commodity in competition of

PepsiPepsi..

Thank Thank

You You