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Coca-Cola segmented the Indian soft drink market into urban and rural markets and applied differentiated strategies. In rural markets, it broadened its brand positioning by focusing on functionality as a refreshing drink. In urban markets, it narrowed its positioning and created differentiation by offering unique value. Its pricing strategy launched a smaller, more affordable 200ml bottle. Through local languages in promotions like "Thanda matlab Coca Cola", Coca-Cola reached more masses. These strategies increased Coca-Cola's market penetration from 13% to 25% from 2001 to 2003, with 50% of sales coming from rural markets in 2003. Pepsi entered India earlier through a joint venture and established its brand among Indian youth, unlike Coca-
Coca-Cola segmented the Indian soft drink market into urban and rural markets and applied differentiated strategies. In rural markets, it broadened its brand positioning by focusing on functionality as a refreshing drink. In urban markets, it narrowed its positioning and created differentiation by offering unique value. Its pricing strategy launched a smaller, more affordable 200ml bottle. Through local languages in promotions like "Thanda matlab Coca Cola", Coca-Cola reached more masses. These strategies increased Coca-Cola's market penetration from 13% to 25% from 2001 to 2003, with 50% of sales coming from rural markets in 2003. Pepsi entered India earlier through a joint venture and established its brand among Indian youth, unlike Coca-
Coca-Cola segmented the Indian soft drink market into urban and rural markets and applied differentiated strategies. In rural markets, it broadened its brand positioning by focusing on functionality as a refreshing drink. In urban markets, it narrowed its positioning and created differentiation by offering unique value. Its pricing strategy launched a smaller, more affordable 200ml bottle. Through local languages in promotions like "Thanda matlab Coca Cola", Coca-Cola reached more masses. These strategies increased Coca-Cola's market penetration from 13% to 25% from 2001 to 2003, with 50% of sales coming from rural markets in 2003. Pepsi entered India earlier through a joint venture and established its brand among Indian youth, unlike Coca-
COKES MARKETING STRATEGIES AND COMPETITOR ANALYSIS
Strategy
Think Local Act
Local mantra
Brand Localization
Pricing Strategy
Promotional Strategy
Implementation and rationale
Segmented the Indian market geographically into urban and rural markets and applied differentiated strategies
Rural markets Broadened the brand positioning based on
the insight that soft drink category was undeveloped in this market
Urban markets Narrow the brand positioning and creating
differentiation by offering unique value as the brand development is high in this market
Message of social bonding and aspiration in the metros
Life ho to aisi Message of functionality to the smaller towns and rural areas positioning as a refreshing drink Thanda matlab Coca Cola
Most of the Indian population belonged to the middle class
and Coke wanted to make itself available to this segment. So, they launched an Accessibility campaign and introduced a smaller 200ml bottle(rather than 300ml) at Rs. 5
Unlike in other countries where Coke tried to sell the
American Dream, in India, it concentrated on reaching the masses through a marketing plan using local languages and idiomatic expressions like Thanda matlab Coca Cola
Impact of Marketing Strategies The market penetration of Coke
increased from 13% in 2001 to
25% in 2003 Coke experienced a growth of 37% growth in rural market compared to 24% in urban The rural market accounted for 80% of new customers and is attributed to 50% of its sales in 2003
Competitor Analysis
Pepsi entered India in 1988
through a JV with PAIC and thereby became the early entrant in the category By virtue of the early entry, Pepsi was able to establish its brand among the Indian consumer Pepsi targeted its product at the youth unlike Coke