Coca-Cola Company: A Case Study Of Chota Coke
Affordability:
A survey conducted by CCI revealed that 300 ml bottles were not popular with the rural and semi-urban residents where normally two persons used to share a 300 ml bottle. It was also found that individual bottle price of Rs.10 was considered too high by rural consumers. Due to these reasons, CCI decided to make some minor changes in the size of its bottles and pricing to get the nod of consumers in the rural market. So, the company launched 200 ml bottles (namely Chota Coke) priced at Rs.5. CCI announced that it would mostly use the 200 ml bottles in rural areas, as it was very price-sensitive. It was also mostly felt that the 200 ml bottles priced at Rs.5 would increase the rate of consumption in rural market. Reports showed …show more content…
It was reported that in the states of Gujarat and Rajasthan the local cola brands such as Tikli and Choice cost only half the price offered by the Coke Company, which gave them the advantage in getting the major market share before CCI came out with the idea of Chota Coke.
Acceptability:
The initiatives of Coca-Cola Company in distribution and pricing were well supported by the extensive marketing in mass media as well as through outdoor advertising means. The company put up hoardings in villages and started wall paintings in the name Coca Cola on the compounds of the residences in the villages. Further, CCI also participated in the weekly sale by setting up temporary retail outlets, and also took part in the annual fairs. CCI also launched television commercials which targeted at rural consumers. In order to reach more rural consumer exposure, CCI increased its ad- value spent for TVCs in Doordarshan. The company also made it sure that all its rural marketing initiatives were in a way well-supported by TVCs. When CCI launched Chota Coke at an introductory price of Rs.5, it made a commercial featuring actor Aamir Khan to communicate the message of the launch of 200 ml capacity bottles to the rural consumers and also about the price …show more content…
In the first commercial the connection between Coke and Thanda was made, in the second one there was a precise difference, with the shopkeeper asking customers to ask for Thanda in place of Coke, and the third commercial showed that if you ask for Thanda, you would get Coke. All the above three commercials helped in making rural consumers to make bond with Coke and also increased awareness of the brand among the rural consumers. Along with TV Commercials, CCI also launched advertisements in local newspapers. In this way CCI tried to tap India’s rural market.
Conclusion: Coca-Cola India claimed that all its marketing initiatives were very successful and as a result, its rural penetration increased from 9% to 25%. CCI also said that volumes from rural markets had increased to 35%. The company started focusing on adding more villages to its distribution network. CCI had a target of reaching 0.1 million more villages. The concepts of availability, affordability, acceptability have helped the company to gain success in the rural marketing initiatives.
Future Implications/
A survey conducted by CCI revealed that 300 ml bottles were not popular with the rural and semi-urban residents where normally two persons used to share a 300 ml bottle. It was also found that individual bottle price of Rs.10 was considered too high by rural consumers. Due to these reasons, CCI decided to make some minor changes in the size of its bottles and pricing to get the nod of consumers in the rural market. So, the company launched 200 ml bottles (namely Chota Coke) priced at Rs.5. CCI announced that it would mostly use the 200 ml bottles in rural areas, as it was very price-sensitive. It was also mostly felt that the 200 ml bottles priced at Rs.5 would increase the rate of consumption in rural market. Reports showed …show more content…
It was reported that in the states of Gujarat and Rajasthan the local cola brands such as Tikli and Choice cost only half the price offered by the Coke Company, which gave them the advantage in getting the major market share before CCI came out with the idea of Chota Coke.
Acceptability:
The initiatives of Coca-Cola Company in distribution and pricing were well supported by the extensive marketing in mass media as well as through outdoor advertising means. The company put up hoardings in villages and started wall paintings in the name Coca Cola on the compounds of the residences in the villages. Further, CCI also participated in the weekly sale by setting up temporary retail outlets, and also took part in the annual fairs. CCI also launched television commercials which targeted at rural consumers. In order to reach more rural consumer exposure, CCI increased its ad- value spent for TVCs in Doordarshan. The company also made it sure that all its rural marketing initiatives were in a way well-supported by TVCs. When CCI launched Chota Coke at an introductory price of Rs.5, it made a commercial featuring actor Aamir Khan to communicate the message of the launch of 200 ml capacity bottles to the rural consumers and also about the price …show more content…
In the first commercial the connection between Coke and Thanda was made, in the second one there was a precise difference, with the shopkeeper asking customers to ask for Thanda in place of Coke, and the third commercial showed that if you ask for Thanda, you would get Coke. All the above three commercials helped in making rural consumers to make bond with Coke and also increased awareness of the brand among the rural consumers. Along with TV Commercials, CCI also launched advertisements in local newspapers. In this way CCI tried to tap India’s rural market.
Conclusion: Coca-Cola India claimed that all its marketing initiatives were very successful and as a result, its rural penetration increased from 9% to 25%. CCI also said that volumes from rural markets had increased to 35%. The company started focusing on adding more villages to its distribution network. CCI had a target of reaching 0.1 million more villages. The concepts of availability, affordability, acceptability have helped the company to gain success in the rural marketing initiatives.
Future Implications/