coca cola

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Ashutosh Mishra Galgotias Business School

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RURAL MARKET SCENERIO ‘ Rural’- 75% population engaged in agriculture related activity. According to industry estimates, in 2002, 70% of population engaged in agricultural activity :-  700 million people 1/3rd of country’s GNP 450 districts, 6,30,000 villages  A typical village retail environment consists of 4-5 kirana shops, the size of such stores varies depending on the size and population density of village where it serves .

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KEY TO SUCCESS IN RURAL MARKET PHYSICAL DISTRIBUTION CHANNEL MANAGEMENT PROMOTION MANAGEMENT

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It bought down the average price of its product From Rs 10 to Rs 5, there by bridging the gap Between soft drink and other local option like tea Butter or milk. It also tapped local forms of entertainment like Annual haats and fairs and made huge investment In infrasture for distribution and marketing . COKE INIATIVE IN RURAL MARKET

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CHALLENGES FOR COCA COLA POOR RURAL INFRASTURE ERRATIC POWER SUPPLY DIFFERENT CONSUMPTION HABBIT PREFRENCE OF LASSI OR THANDAI

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AVAILABILITY CCI realized that this distribution system would not work in rural markets, as taking stock directly from bottling plants to retail stores would be very costly due to the long distances to be covered The company instead opted for a hub and spoke distribution system under the hub and spoke distribution system, stock was transported from the bottling plants to hubs and then from hubs, the stock was transported to spokes which were situated in small towns

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AFFORDABILITY A survey conducted by CCI in 2001 revealed that 300 ml bottles were not popular with rural and semi-urban residents where two persons often shared a 300 ml bottle. It was also found that the price of Rs10/- per bottle was considered too high by rural consumers. For these reasons, CCI decided to make some changes in the size of its bottles and pricing to win over consumers in the rural market.

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ACCEPATABILITY CCI in distribution and pricing were supported by extensive marketing in the mass media as well as through outdoor advertising. The company put up hoardings in villages and painted the name Coca Cola on the compounds of the residences in the villages

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AWARNESS CCI also participated in the weekly mandies by setting up temporary retail outlets, and also took part in the annual haats 11 and fairs - major sources of business activity and entertainment in rural . CCI also launched television commercials (TVCs) targeted at rural consumers. In order to reach more rural consumers, CCI increased its ad-spend on Doordarshan. the company ensured that all its rural marketing initiatives were well-supported by TVCs.

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PRODUCT soft drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a help line and complaint phone service for customers who are not satisfied with the product or wish to give feedback on the products PRICE The price of Coca Cola’s products is one of the most important factors in a customer’s decision to buy Rs 5 was offer in rural market PROMOTION Coca Cola has used this as the main form of promotion for extensive range of products. Coca Cola also utilizes below the line promotions such as contests, coupons, and free samples PLACE A spect is the respective distribution channels that Coca Cola has elected to transport and sells its product. Selecting the most appropriate distribution channel is important, as the choice will determine sales levels and costs.

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SEGMENTATION GEOGRAPHICAL RURAL MARKET CLIMATE TEMPERATUR HOT HUMIDITY DEMOGRAPHIC MASS POPULATION

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TARGETING

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POSITIONING LOW PRICE SOFT DRINK MATCH STANDARD WITH URBAN ITS AVAILABLE EVERY SHOP QUEST YOUR THRUST

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RECOMMENDATION

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