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
Indian market Total 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 Income: low purchasing power Heterogeneous market: language ,culture ,religion infrastructure: transportation, banks , electricity, transition channels,.. Literacy level: 28% increasing. Life style: conservative & tradition bound.(changing due to income , media , education , marketing efforts) Buying behavior
The rural market Recent trends: Steady growth Welcome change in the composition of rural demand 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 ‘Thandamatlab Coca-Cola’, suddenly Pepsi came up with ‘Thanda- ChelagaKya’. 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.
ThandaMatlab 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