MARKETING APPLICATION AND PRACTICES CASE ON COCA-COLA Group members :1) ROHAN JADHAV C-16 2) SOURABH SURYAWANSHI C-35 3) IZHAR MUSHRIF C-15 4) RAKESH THAWALE C-38 5) SATISH RAJPAL C-30 6) MANAS CHATURVEDI C-21 Q1. Analyze and critique actions taken? As the sale in urban areas becoming flat they determine that There is ample scope in rural marketing. Major obstacles: 1. Poor rural infrastructure and different consumption habit as compare to urban people 2. Rural People prefer traditional beverages such as “Lassi” 3. The major factor or problem is price To tackle this problem CCI followed three marketing strategies: 1. Availability : a. Focused on strengthening distribution network. For that they opted hub and spoke distribution system. Under this system distribution as follows Botteling Plants Hubs Spokes Retailers Consumers b.Transportation modes : They use trucks, Auto rickshaws, cycle-rickshaw, handcarts, to even camel carts in rajas tan. c.Additional Investment of 7 millions to meet rural demands d.Distributed 2 lakhs refrigerators to rural retailers. b. Purchase 5000 new trucks and auto rickshaws for boosting its rural distribution. c. CCI increases coverage of 81383 villages in 2001 to 158342 villages in august 2003. 2. Affordability : a. Rural people are not able to afford 300 ml bottle at Rs 10 therefore they launched 200ml bottles (Chotta coke) price at Rs 5 . b. They felt that 200 ml bottle at Rs 5 increase rate of consumption in rural people. 3. Acceptability : a. They mainly focused on mass media and outdoor advertising. b. CCI put up hoardings in villages and painted the name Coca cola on compound of residence in village. c. They also participated in weekly mandies, annually haats and fairs d. Increase its ads spent on Doordarshan. e. CCI also launched television commercial (TVCs) Targeted at rural consumers f. Advertising casted with Amir Khan for launching chotta coke in 2002 which was shooted in rural areas. g. Most of villagers as well known with Thanda with Lassi or Nimbu Paani. CCI wants that equate Thanda word with Coke product. h. “Thanda Matlab Coca Cola” this tagline was launched ijn September 2003. To prove this tagline they had made 3 ads with Amir. i. Amir as Tapori: in which they want to made perception of customer that Thanda means Coke ii. Amir as Hydrabadi shopkeeper iii. Amir as Punjabi Farmer in which without shop elsewhere somebody has thrust. Then he went for coke as Thanda by default. Q 2) Indicate the appropriate actions. Targetimg the rural market changed the trannsportation system increase the investment by 7 million volume of coke in a bottle was redused to attract more rural people. Price is also get redused at Rs. 5 they distributed 2 lakh refrigerators to rural market as they not chilled it before sailing. They also purchased 5000 new trucks and auto rickshow launching of commertial televisions advertisement with Aamir Khan having tag line “THANDA MATLAB COCA COLA” Q3) Suggest what might have been done differently. Instead of launching chotta coke i.e.200 ml at Rs.5 CCI has to reduce the cost of 300 ml to 6-7 Rs. This strategy will help to growth both in rural and urban areas. They should have offered different schemes for village retailers eg. - CCI has to fix a target for selling and offered gifts to village retailers as rist watch, caps, t- shirts, etc. also coke has to focus on craeting the employment apportunities specially into villiage. This is one of the way to create a good image into the minds of villiage customers. CCI should create a transperent image with the additives of coke from customer point of view. They should follow the Environment Standerds specify by ISO 14001- 2004. It is othing but one way of doing SCR.