Coca Cola India's Thirst for the Rural Market
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FUTURE PROSPECTS Contd..
Though CCI was upbeat on account of its early success in its
drive to capture the rural market, the question was whether the company would be
able to take this success further.
A major media setback occurred in August 2003, when the Delhi-based Center for
Science and Environment announced that it had found high pesticide content in
soft drinks manufactured and sold by both cola majors[15] . Around same time BBC
Radio in its program – ‘Face the Facts'alleged that Coke's plant in Kerala was
making excessive use of groundwater resources in the region and was also
contaminating the groundwater through discharge of toxic elements, thereby
harming the land, water resources and also the food chain in the region.
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Though CCI refuted these allegations, the company reportedly experienced
a considerable decline in sales after August 2003.
With many social and political groups becoming active against the cola
companies in rural areas, it remains to be seen whether CCI will be able
to quench its thirst for the rural market. |
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QUESTIONS FOR DISCUSSION:
1. In the late 1990s, CCI increased its focus on the rural market in India.
Explain the reasons for CCI's move in detail.
2. According to analysts, CCI's ‘Thanda Matlab Coca-Cola'advertisement was a
major hit and made rural consumers connect with the product. Discuss the
importance of advertising in rural marketing. What are the issues in advertising
that a company should focus on while targeting rural consumers? Do you think
there should be differences in advertising for rural consumers and urban
consumers? Justify your stand.
3. Some analysts feel that with the urban market reaching saturation, the Cola
war will now be fought in the rural market. What are the issues that CCI and
Pepsi Co have to focus on to capture the rural market? Who do you think is more
comfortably placed in the rural market?
EXHIBIT I CCI
EXHIBIT II THE RURAL MARKET IN INDIA
EXHIBIT III PEPSICO's RURAL MARKETING INITIATIVES
ADDITIONAL READINGS & REFERENCES
[15] In the light of the
allegations, Government of India constituted a Joint Parliamentary Committee
headed by Sharad Pawar to investigate the issue.
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