Marketing Strategy of Coca Cola in India

3443 WordsAug 16, 201114 Pages
INDIA India has a GDP of over USD 1.236 trillion (2009 estimate), the 12th largest in the world (4th largest in terms of GDP on purchasing power parity basis of USD 3.57 trillion) and per capita income of just USD 1,100 (136th in the world). Even during recessionary period of the last two years, economy has been growing at over 7%, 2nd fastest in the world (after China), that means its average income will double within 10 years. Demographic Trends India’s population stood at 1.157 billion (July 2010 estimate), growing at a rate of 1.407% (2010 estimate) with 64.3% of total population accounting for people between age bracket of 15-64 years and 30.5% below 15 years of age. Sex ratio of total population remains at 1.08 males to one female…show more content…
1) Availability When Coca-Cola entered the rural market, it focused on strengthening its distribution network there. It realized that the centralized distribution system used by the company in the urban areas would not be suitable for rural areas. In the centralized distribution system, the product was transported directly from the bottling plants to retailers. 2) Affordability Coca-Cola conducted a survey of Indian Rural Markets (in an order to frame its marketing strategy) and came out with a conclusion that 300 ml bottles (primarily being sold in urban areas) 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 Rs 10 (15 cents) per bottle was considered too high by rural consumers. For these reasons, Coca-Cola decided to make some changes in the size of its bottles and pricing to win over consumers in the rural market and 200 ml bottles, called ‘Chota Coke’ (small coke) priced at Rs 5 (7 cents). Coca-Cola announced that it would push the 200 ml bottles more in rural areas, as the rural market was very price-sensitive and was sure that it would increase the rate of consumption in rural India (as evident from the fact that rural sales accounted for over 50% of Coca-Cola’s total sales in 2003). 2) Acceptability The initiatives of Coca-Cola’s in distribution and pricing were

More about Marketing Strategy of Coca Cola in India

Open Document