Coca-Cola in Rural Market

BY, Sambhaji Bhosale Vinay Nair Ganesh Murthy Omkar Khalap Ashish Dhagalkar

The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.
Coca-Cola India believed that the first brand to offer communication targeted to the smaller towns would own the rural market and went after that objective with a comprehensive strategy. India B included small towns and rural areas, comprising the other 96% of the nations population. This segments primary need was out-of-home thirst-quenching and the soft drink category was undifferentiated in the minds of rural consumers. Additionally, with an average Coke costing Rs. 10 and an average days wages around Rs. 100, Coke was perceived as a luxury that few could afford. "The rural market is a significant part of our marketing strategy which enables us to help the consumer link with our product.
Sanjeev Gupta, Marketing Director Cola-Cola India, in August 1995.

Rural Market Low cost strategy achieving remarkable results

Product
Chota Coke at Rs. 5 Thanda - Cocacola

Channel & Services

Bottling plant Transport that range from trucks, auto rickshaws, cycle rickshaws and hand carts to even camel carts in Rajasthan and mules in the hilly areas, to hubs.

Terminals
Hubs Spokes Retailers Consumers Grocers

Advertising
Mass media Ad-spend on Doordarshan Outdoor Advertising Hoardings Haats Weekly Mandies Melas & fairs

Sales & Promotions

Low price Easily available Word Thanda Slogans like Chota coke at Rs. 5 Cool drink means Coca Cola. new advertisement campaign featuring leading bollywood actor Aamir Khan.

Rural Marketing Strategy Based on Three A's

Availability
Innovative Hub and spoke distribution system Designed marketing strategy with strong and efficient supply chain and logistics to increase the coverage. Rural consumers have mostly homogeneous group with similar needs, economic conditions and problems.

Affordability
Low priced products can be more successful in rural markets because the low purchasing, purchasing powers in rural markets. Low disposable incomes, Most of whom are on daily wages cannot spend much. Decided to make some changes in the size of its bottles and pricing to win over consumers in the rural market. launched 200 ml bottles priced at Rs 5/- came out with CHOTA COKE.

Acceptability
Coca-Cola backed up its pricing and distribution by extensive marketing in the mass media and outdoor advertising. Distribution strategy - To reach out the rural area CCIs design distribution system in Rural area. Advertising Strategy - CCI increased its ad-spend on Doordarshan. CCI came up with a new three commercial featuring Aamir Khan, to further strengthen the CocaCola brand image among rural consumers.