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About the Case 
 This case is about the initiatives taken by the Cola 
major Coca- Cola in India. 
 This case discusses ...
Timeline :- 
In 1993 
In 1993- 1999 
In 1999 
 Coca-Cola reentered in India 
through a strategic alliance with 
Parle Exp...
Timeline 
In 2000 
In 2001 
 Behr focused on rural 
marketing & decided to 
diversify into the bottled 
water & powered s...
Timeline 
In 2002 
In 2003 
 CCI made an additional 
Investment of Rs. 7 million ( 5 
million from the company & 2 
milli...
Timeline 
In 2003 
 Increment in rural 
distribution by covering 
1,58,342 villages in Aug 2003 & 
in 2001 it was 81,383 ...
Thanda Goes Rural 
 In early 2002, Coca- Cola India launched a new advertisement campaign 
featuring leading bollywood ac...
Thanda Goes Rural 
 The poor rural infrastructure & consumption habits are the 
two major obstacles to crack the rural ma...
CCI’s Rural Marketing Strategy 
The Strategy was based on three “A” 
1. Availability 
2. Affordability 
3. Acceptability
Availability 
• CCI emphasized on the availability of the product to the 
consumer. 
• It focuses on strengthening its dis...
Affordability 
• It focuses on product pricing, In 2001 CCI revealed that 300 
ml bottle were not popular in rural area. 
...
Acceptability 
• It focuses on convincing the customer to buy the product. 
• To reach more rural consumers, CCI increased...
Future Prospects 
• In year 2003, CCI had a target of reaching 0.1 Million more 
villages. 
• In early 2003, CCI announced...
Reasons to Enter into Rural 
marketing 
• Due to the vast size & large demand of the Indian rural 
market, the FMCG compan...
Problems faced to sell the products 
in Rural Market 
 Physical Distribution 
Adversely affect the service & 
the cost of...
SUGGESTIONS :- 
 The CCI (Coca-Cola India) should target the colleges that 
are situated in rural area to increase their ...
Coca Cola india’s thirst for rural market
Coca Cola india’s thirst for rural market
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Coca Cola india’s thirst for rural market

Coca-Cola India’s Thirst for Rural Market

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Coca Cola india’s thirst for rural market

  1. 1. About the Case  This case is about the initiatives taken by the Cola major Coca- Cola in India.  This case discusses the detail of the Distribution, Pricing & Advertising strategies taken up by the CCI (Coca-Cola India) to be successful in Rural India.  The case also Focuses on the Cola War from the Urban market to the Rural Market.
  2. 2. Timeline :- In 1993 In 1993- 1999 In 1999  Coca-Cola reentered in India through a strategic alliance with Parle Exports.  CCI had three CEO’s 1. Jaydev Raja – In 1993 2. Richard Nicholas – In 1995 3. Donald Short- In 1997 • Alex Von Behr Became the CEO. • Company also increased the ad spend on the acquired brands like Thums up, Limca & Maaza.
  3. 3. Timeline In 2000 In 2001  Behr focused on rural marketing & decided to diversify into the bottled water & powered soft drink in association with the Kinley & Sunfil Brands  CCI announced its Maiden profits from its Indian operations.
  4. 4. Timeline In 2002 In 2003  CCI made an additional Investment of Rs. 7 million ( 5 million from the company & 2 million from the company’s bottlers)  CCI added 25 production lines & doubled it glass & PET bottle capacity.
  5. 5. Timeline In 2003  Increment in rural distribution by covering 1,58,342 villages in Aug 2003 & in 2001 it was 81,383 villages
  6. 6. Thanda Goes Rural  In early 2002, Coca- Cola India launched a new advertisement campaign featuring leading bollywood actor -Amir Khan .  The advertisement “Thanda matlab Coca-Cola” was launched to support CCI’s rural market initiatives.  CCI launched three commercials with tagline Thanda matlab Coca- Cola in which Aamir Khan featured as “ Tapori”, “Hyderabadi shopkeeper” & as a “Punjabi farmer”.
  7. 7. Thanda Goes Rural  The poor rural infrastructure & consumption habits are the two major obstacles to crack the rural market.  Shortage of power supply became a problem for CCI in rural marketing because of which people prefer more of “ Lassi” & “Lemon juice”.
  8. 8. CCI’s Rural Marketing Strategy The Strategy was based on three “A” 1. Availability 2. Affordability 3. Acceptability
  9. 9. Availability • CCI emphasized on the availability of the product to the consumer. • It focuses on strengthening its distribution network in Rural market. • CCI realized that its centralized distribution system, which was used for Urban areas will not be suitable for Rural areas. • The company then opted for a Hub and spoke distribution system for rural areas.
  10. 10. Affordability • It focuses on product pricing, In 2001 CCI revealed that 300 ml bottle were not popular in rural area. • The price of Rs. 10/- per bottle was considered to high by rural consumers. Therefore, CCI decided to make some changes in size of its bottle & pricing to win over consumers in rural market. • In 2002 CCI launched 200 ml bottle (chota coke) priced at R.5 to increase the rate of consumption in rural India.
  11. 11. Acceptability • It focuses on convincing the customer to buy the product. • To reach more rural consumers, CCI increased ad- spend by hoardings in villages & painting the name Coca-Cola on the compounds of the residences in the villages. • In 2002 “ Chota Coke ” launched with a commercial featuring bollywood actor “ Aamir Khan ”. • In 2003, CCI strengthen the Coca-Cola brand image by making coke a generic name for “ Thanda ” & launched print advertisement in several regional newspapers.
  12. 12. Future Prospects • In year 2003, CCI had a target of reaching 0.1 Million more villages. • In early 2003, CCI announced that it was dropping plans to venture into the beverage business. • CCI planned to launch juice & milk based beverages such as Nimbu paani, Fruit juice, Cold coffee & Ice tea in collaboration with Nestle.
  13. 13. Reasons to Enter into Rural marketing • Due to the vast size & large demand of the Indian rural market, the FMCG companies have a great opportunities. • Rural population is very large & It has grown richer in 1990’s, with substantial improvements in incomes & spending power. • Tax Exemptions for agriculture income have also contributed to greater rural purchasing power.
  14. 14. Problems faced to sell the products in Rural Market  Physical Distribution Adversely affect the service & the cost of the company  Channel Management  Promotion & Marketing Communication  Difficulty in understanding the social dynamics & attitude variation with in each village
  15. 15. SUGGESTIONS :-  The CCI (Coca-Cola India) should target the colleges that are situated in rural area to increase their market.  The CCI should also conduct some Street theatre as this is deeply rooted in Indian culture. CCI should make those advertisement which are related to Weddings and traditional functions.

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