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 Sector 2009 Bran Change in
Origin d Value ($ Brand Val
United m) ue
1 1 Beverages 68,734 3%
States

United Computer
2 2 60,211 2%
States Services

United Computer
3 3 56,647 -4%
States Software

United
4 4 Diversified 47,777 -10%
States

Consumer
5 5 Finland 34,864 -3%
Electronics

United Restaurant
6 8 32,275 4%
States s

United Internet
7 10 31,980 25%
States Services

8 6 Japan Automotive 31,330 -8%

United Computer
9 7 30,636 -2%
States Hardware
United
10 9 Media 28,447 -3%
States
 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

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