KO India Sp1

8/7/2019 KO India Sp1

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FOR THE RURAL MARKET

PR E S E N T E D B Y : G R OU P 2

M AL L IK AR JU NA D 7 0 27M AN PR EE T S I NG H 7 0 28

N E H A A G R A W A L 7 0 9 2S UM AN K UM AR M AN DA L 7 11 1

S U M I T K U M A R JA N G I D 7 1 1 3


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Rural Market Scenario

Rural 75% population engaged

in agriculture related activity.

in agricultural activity.

700 million people (Aug. 2002) 1 3 o coun ry s

450 districts, 6,30,000 villages approx.

Rural India is also characterized by growing affluence:agricultural output increasingly to early 215 millions tonnesin 200 com ared to 1 6 millions in 1 1.


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Key to success in Rural India.

Ph sical Distribution

Channel Mana ement

Promotion and Marketin Communication


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Coke in India

Coca-Cola was the leading soft drink brand in India until 1977 when.

After a 16-year absence, Coca-Cola returned to India in 1993,cementin its resence with a deal that ave Coca-Cola ownershi ofthe nations top soft-drink brands and bottling network.

Cokes acquisition of local popular India brands including Thumsp, mca, aaza, ra e c.: a s ra eg c s ep success.

In spite of growth, annual per capita consumption was only 6

, , . .

With its large population and low consumption, the rural marketre resented a si nificant o ortunit for enetration.


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Thanda goes Rural

2002, CCI launched a new advertisement cam ai n:

Featuring Bollywood star Aamir Khan. Tagline Thanda matlab Coca-Cola

Targete at rura , sem ur an customers.

ea was o pos on oca- o a as a gener c ran orcold drinks.

CCI began focusing on the rural market in the early


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The Decision was not surprising

.

Huge size of untapped rural market.

Improvement in income and spending power of rural

eo le.

Better physical distribution channel.

Aspirations for urban lifestyle.

Increased awareness due to television reach.


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Challenges for Coke

.

Erratic power supply.

Different consumption habits.

re erence or tra t ona co everages ass ,

lemonade).

Price of the branded beverages.


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CCIs Rural Mktg. Strategy

Three As

Availability: Capacity expansion 25 prod. lines and doubled bottle capacity. Uni ue and different distribution strate hub & s oke distribution. Coverage of 1,58,342 villages by Aug. 2003 (81,383 in 2001). 2,00,000 refrigerators to rural retailers.

Introduction of 200ml bottle (chota coke). Priced at Rs. 5, closed the gap between Coke and basic refreshments.

Acceptability Mass media marketing. Launched TVCs targeted at rural consumers.


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CCIs Rural Mktg. Strategy

Coke realized that the communication media used

in urban markets would not work in villagesbecause of low penetration of conventional media.

Way out... Outdoor advertising and hoardings, etc.

Participation in weekly mandies, haats, & fairs.

Increased ad-spend on Doordarshan .


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Thanda matlab Coca-Cola

Commercials showed ro ression in associatin

Coke with Thanda in a rural/semi urban context.

A 1 - Tapor connect on o co e w t t an a wasmade.

Ad 2 - Hyderabadi shopkeeper shopkeeper equatesthe word thanda with Coca-Cola.

Ad 3 - Punjabi farmer when one asks for thanda,.


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Importance of Advertising in Rural Marketing

The low level of education that creates problem in brand

identification. Since they can not read the brand names and price

tags it makes it easier for the clones to launch brands similar in

.

Unscrupulous retailers are taking the benefit and damaging the

perception of the brands before they actually enter in to the ruralmarket.

It helps in acceptability of the product.

. To strengthen the brand image of the product.


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Issues in advertising that a company should focus on while

Understanding the mindset of potential consumers, includingt eir opes, fears, aspirations an appre ensions.

, , ,in relation to the product category for later use in the creative.

u c es ort te ev s on commerc a s o not reg ster we w trural audiences.

Value for money proposition.


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Difference in advertising for Rural consumers and urban

Tricky, clever, gimmicky or even suggestive advertising does not work with .

human presence, go over the heads of rural population.

Television and radio covers some of the areas but still 265 million are beyondthe catch of advertisers through the avai ab e vehic es. Rura customers idea ofconsumption and behavior as a consumer is completely different So themessage has to be in the liking of the rural customer.

Puppet shows in Punjab,

Folk media likeRagini inHaryana for communicating qualities ofViratcement,

Pala andDaskathia in Orissa for promoting tooth pastes of Colgate Palmolive

au.


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Pepsi vs Coke

The main com etitor and

rivalry of coke is Pepsi,but in the rural market other la ers are also therelike campa-cola, choice, tikli etc.

Pepsi also targeted rural marketing

Similar pricing strategy, distribution strategy byPe si


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Future Prospects ofCoke

CCIs volume from rural market increased to 35% in2003.

Biggest challenge is to increase the market share

Diversification nimbu pani, fruit juice


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Issues to focus.

.


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Rural market is more comfortable..

Hu e market

High growth in terms of sales

Change in the life style

Increase in the per capita income

It can substitute other products


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Thank You

KO India Sp1

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