Coca Cola In Rural India Essay

5460 words - 22 pages

Coca Cola. The world's Largest Brand. Ranks as the 6th largest company on the Fortune 100 list. Has more nations on its marketing chart then the United Nations member countries. Has a daily consumption of about a million litres in the world. And yet it had to dismantle its entire marketing strategy and regenerate it. Why? To penetrate the enigma called Rural India.Market OverviewRural India has a considerable depth of volume as far as beverages are concerned.Drinks Available:Milk BasedMilkTeaCoffeeCurd MilkSkimmed CurdSattu.Mattha.Milk Shakes. (E.g. Mango Shakes)Water Based (Non - Concentrate -- Non - Carbonated )Sherbets with a variety of Flavours like rose, lemon, khus.Purified Rose water.Variety of Freshly Prepared Juices.Branded Juices (E.g. Mazza)Water Based (Concentrate Based - Non Carbonated)Flavours of Saccharine spiked water. E.g. Kalla Khatta, Aqua etc.Concentrate drinks like Rasna,Energy Drinks like Glucon - D.Water Based (Concentrate Based - Carbonated)Carbonated Colas (Black coloured Colas E.g. Coke)Carbonated Flavours (Orange, Milky, Blue E.g. Fanta, Limca)Carbonated Plain (Clear E.g. Sprite)Alcohol Based DrinksFurnace made (Local Production)Branded Indian MadeBranded ImportedMarket SizeTotal sales of soft drinks in India amounted to Rs111 billion and almost 3,272 million litres in 2002, with growth of around 7% in current value and 17% in volume terms in that year. Out of this revenue 30 % came from the rural markets and semi urban areas.The broad break up of sales between the three kinds of Soft Drinks as on 2002 was:The rest was accounted for by squashes and syrups.The consumption of these items generally shoots up during summer, when the temperatures in hinterland sometimes even cross 40 degrees Celsius. The first choice of most rural folk is Milk Based and Water Based (Non Concentrate and Non Carbonated) drinks. Yet the trend of consuming concentrated soft drinks is fast picking up. But still it is at an embryonic stage. Whereas the current per capita consumption of carbonated soft drinks at national level is 7.2 litres a year (which is also low when compared to US rate of 230 litres a year) the rural average per capita consumption of carbonated soft drinks stands at 2.8 litres a year.The market for carbonated soft drinks is scattered across the geographical limits of the country. Today there are around 1.78 lakh villages where soft drinks are available and are sold in various ways. The basic chain of Manufacturer, distributor, retailer to consumer is still followed. Various Methods of transportation and stocking are in use right from underground water filled shallow storage tanks with some reasonable openings, anti thermal materials like thermacol and refrigerators - wherever electricity is available. But the basic problem that marketers face is the poor infrastructure and the difficulty to put across the right message.Market CharacteristicsThe market preference is highly regional based. While cola drinks have main markets in...

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