RURAL MARKETING OF COCA-COLA

PRESENTED BY AJEET PRATAP SINGH M.B.A (AGRIBUSINESS) 3RD SEMESTER

RURAL MARKETING
is the promotion of a company¶s product in the rural market } By using strategy which are differ from urban market } Rural market is more price sensitive } Rural market preference good quality product } Involves an urban to rural activity } Deals with delivering manufactured goods/services to rural producers
} Rural marketing

RURAL MARKETING } Rural marketing involves delivering manufactured or processed input or services to rural producers or consumers. .

} Urban . } Urban market reached near his saturation point. } It require a large quantity of industrial and urban manufactured products.WHY RURAL MARKETING IS REQUIRE markets have become congested with too many competitors. } Rural market has a great potential for development. } Rural market has the emerging market.

Rs 65000 crore Durables ² Rs 5000 crore Agri-inputs ² Rs 45000 crore Two wheelers & four wheelers ² Rs 8000 crore In 2003-04 LIC sold 55% of its policies in rural india In 2 million BSNL mobil connection 50% are in rural areas 41 million kisan credit has issued 42 million households are avilable for banking service .Aspects which make rural market attractive } } } } } } } 742 million people 200 million households Annual size of rural market FMCG .

} Rural literacy level improve from 36% to 59%. } Most of the villages are connected by roads.Opportunities of the rural market is improving rapidly. } Infrastructure . } Rural telephone density has gone up by 300% in the last 10 years. } More than 90% villages are electrified.

000 25.Marketers use available infrastructure of rural areas offices } Haats (periodic market) } Melas (exhibitions) } Mandis (agri-markets) } Bank branches } Post 1.000 42.000 3.80.000 32.000 .38.

} Escorts rural store.Rural retail stores Haryali store. } TATA/Rallis Kisan Kendras. } M&M Shubh labh store. } DSCL .

Smaller showroom to set up in surburbs and rural areas.Rural marketing strategy of different companies TATA NANO } } } ´Hub and spoke modelµ to market neno in rural areas. Company believes: Majority sales would come from rural india. AIRTEL } } } offering customised services to target the farmers Airtel connection information to farmers Other services which helpful to rura peoples Weather report Farming techniques Rural health initiatives Animal husbandry etc .

. Maruti } } } } . posters etc.Cont««. Launched a PAN INDIA campaign to tap the vast potential of the rural market. Planned to touch 58% of Indian village Promoted the scheme through road shows. Aimed to position itself as the first mover in the village It roped in large number of rural banks to increase the finance penetration. Conducted a 6 month pilot project to increase sales. employees in rural INDIA on purchase of the car. Rolled out special scheme for govt. SANTRO } } } } Launched a marketing initiative ´GHAR GHAR KI PEHCHANµ tor tapping rural market.

Himalaya } } } Launched SBU for expanding into smaller towns Rural share of India·s pharma market rose from 18% to 21% . Looking to launch entry level handsets to cater to the rural consumer. . Nokia } } Nokia outlined initiatives in areas microfinance distribution and value added services mainly targeting the farmers. The districts covered up would rise to 400 from 250.Cont«««.

Coca-Cola India is among the country·s top international investor having invested more then US $3 billion in India. It is the largest manufacturer. Coca-Cola company incorporated by asa Candler in 1892. The Coca-Cola formula is invented by pharmacist john stith pemberton in 1886. packed mineral water and fruit juice. Coca-Cola India produce soft drink. distributor and marketer of non-alcoholic beverage concentrates and syrup in the world. .COCA-COLA } } } } } } } } It is the world·s largest beverage company. It is currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billions each day. It is the best selling soft drink in the most countries.

COCA-COLA INDIA·S BRAND } COCA-COLA } THUMS-UP } SPRITE } FANTA } LIMCA } MINUTE } MAAZA } KINLY MAID PULPY ORANGE .

} Coca-Cola adopt 4p·s marketing strategies for increasing his share in rural market.RURAL MARKETING STRATEGIES OF COCA-COLA marketing concept is a customer centeredµ sense and respondµ philosophy. } Coca-Cola tapped local forms of entertainment like annual haats and fair to increasing it brand image and sell. } Rural .

The quality of 200ml bottle is similar like the 300ml or 1 liter bottle. It target the rural youth who not effort high rate of 500ml or 1 L bottle. high quality and multiple uses is the basic principal of rural product design. Unique taste at low price . Coca-Cola launch 200ml bottle at a low price Rs 8 for rural market.PRICE STRATEGY } } } } } } The rural consumer is very conscious about getting ´value for moneyµ Low price.

Coca-Cola is well known name in the soft drink field. It is very sensitive market compare to the urban market. Rural people well known about the brand name. It make a good image in rural market. They provide quality product at a reasonable price.PRODUCT STRATEGY } } } } } } } Rural market are very sensitive about the quality of the product and popularity of the product. Quality product at reasonable price .

Coca-Cola ad ´thanda matlab Coca-Colaµ caught the attention of the rural consumer. The commercial aimed at making coke a generic name for ´thandaµ Using a renowned celebrity in rural background.PROMOTION STRATEGY } } } } } } } } The challenge is in the rural market to create a communication with rural consumer. The commercial was shot in a rural setting. It ensured that all its rural marketing initiatives were well supported by TVC·s. . In rural market a brand must associate with their culture and personality. Coca-Cola India launched television commercials targeted at rural consumers.

managing logistics and controlling marketing communication are major impediments for entering rural markets. It has evolved a ´hub and spokeµ distribution model for effectively reaching and serving rural markets. Coke is available where even water is not available. The distribution structure involves stock point in feeder towns to service these retail outlets at the village levels. Full load supplies were offered twice weekly against payment by demand draft. coke started out by drawing up a hit list of high potential villages from various districts. To reaching out to rural India.PLACE STRATEGY } } } } } } } } } Planning physical distribution. Coca-Cola is a pioneer company in distribution network. Coca-Cola provides low cost ice boxes to the small distributors in rural areas. Smaller distributors undertook fixed journey plan on a weekly basis. .

} Rural . } Rural people are not much attracted with the brand. } Competition in the rural market.PROBLEMS market share is not increase rapidly } Product is not reach very interior place in the rural India.

Using Chinese product design strategy and raw material. Use a combination of wholesalers and retailers to penetrate every nook and corner of rural market. Using psychological tricky pricing strategies. Avoid the marketing myopia. Be careful on retail margins.SUGGESTIONS } } } } } } } } } } } Innovative product designs and packaging. Develop rural shopping malls. Using effective total quality management. To capture the local sprit in the communication. Using value based pricing strategy. Provide social outlet campaigns. .

Thank you .

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