Coke - Reaping the Benefits of Going Rural*

            


Details

Case Code : CLCB002
Publication date : 2005
Subject : Consumer Behavior
Industry : -
Length : 04 Pages
Price : Rs. 100

To download this case click on the button below, and select the case from the list of available cases:

» Consumer Behavior
Short Case Studies
» Marketing Case Studies**
» Case Studies Collection
» ICMR Courseware
» View Detailed Pricing Info

Key words:

Coca-Cola India, Coke, Pepsi, Chota Coke, Going Rural, Hub and spoke distribution, Distribution Network, Aamir Khan, Urban focused drink and Target consumer segment.

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet, 'Coke: Reaping the Benefits of Going Rural' takes a look at the challenges Coca-Cola India faced with the saturation of its primary market of urban India. The company was left with no choice but to look at developing the rural India market. The caselet describes the ways in which the company developed innovative mechanisms in distribution, promotion, and pricing to attract the rural population and how these strategies proved successful in attracting the rural segment.

Issues:

» How marketers can address the issue of market expansion after saturation in urban areas
» Customizing products and promotions depending on the target segment
» Innovative methods of developing distribution channels

Introduction

Coca-Cola (Coke), one of the most admired companies in the world, re-entered India in 1993. It had been ousted in 1977, due to differences with the then Indian government.

Post 1993, Coke tried to establish itself in the Indian market where Pepsi, which entered India with a joint venture in 1988, had already established its strong hold.

Although the volumes in the soft drink market increased by 76%, from 5670 million bottles in 1998 to 10,000 million bottles in 2002, both the cola giants faced stagnation in sales...

Questions for Discussion:

1. Compare and contrast Coke and Pepsi's rural marketing strategy?

2. Why did rural markets gain importance among cola marketers?

Google