Coca Cola Rural

1. in Rural इंडिया

2. RURAL INDIA
 Geographical Area : 3,287,263 sq.kms
 Population : over 1.21 billion people (2011 census)
 About 68% of India’s population lives in rural areas.
 Rural population has grown by 12% in last decade.
 Rural market, accounts for 40% of Indian economy (Semi Urban – 25).
 Rural India has huge, heterogeneous and growing consumer market, which contributes more than 50%
to India’s total consumer market size.

3. About The Case

4. 1993
1993 - 1999
1999
2000
2001

5. 2002
2003

6. A humiliating loss of 400 Million USD in the 2000 and a flat 2001 made Coca
Cola India (CCI) rethink and reinvent its strategies in India. The flat sales in
the urban areas made it clear for the CCI that they would have to shift focus to
the untapped rural markets.

7. Thanda Goes Rural

8. Thanda Goes Rural

9. Coca-cola’s Rural marketing strategy
Coca-cola’s rural marketing strategy is based on 3A’s
1.) Affordability
2.) Acceptability
3.) Availability

10. 1.) Affordability
An average rural worker in India earns Rs. 100 a day whereas the price of a
300ml coke bottle was Rs.10. due to which it was considered as a leisurely
expense.
In order to overcome this barrier, In 2002 coke came up with a 200ml bottle
costing Rs.5 only., an affordable amount on the pockets of the rural audience.

12. 2.) Acceptability
The advertisement with the tag line - 'Thanda Matlab Coca-Cola ' was targeted at rural
and semi-urban consumers. The series of Amir Khan Ads on hill station acting like a
nepali and those in a Punjabi Yaara da “Tashan” were a great success and an important
aspect focusing on acceptability. Except TV ads, CCI also concentrated on 47,000 hatts
(weekly markets) and 25,000 melas ( fairs ) held annually in various parts of the country.

14. 3.) Availability
 Rural India meant reaching 6,27,000 villages spread over 32,87,263 square kms
 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.
 However, CCI realized that this distribution system would not work in rural markets, as
taking stock directly from bottling plants to retail stores would be very costly due to the
long distances to be covered.

15.  CCI started making a hit list of the potential villages from various districts.
To ensure full loads, large distributors (Hubs) were appointed, and they were supplied from the
company's depot in large towns and cities.
On their part, the hubs appointed smaller distributors (Spokes) in adjoining areas.
The distributors also hired rickshaws that travelled to villages daily.
3.) Availability

17. Advertising Strategies

18. 1. TV Commercials
Between march-september
2003, CCI came up with
different commercials featuring
Amir Khan. In these Ads he
played a character that the
target audience could easily
associate with.

19. 2.Wall Paintings

20. 3.Hoardings

21. Results
• 37% Growth in Rural Market in the year 2013
Conclusion
CCI’s success on India’s vast, rural markets is a lesson on how to
grow an untapped market. It is an indication that if an MNC does its
home work right and gets the right distribution mix, then it need not
restrict itself to India’s urban middle class.