GLOCALISATION:

Glocalisation connects the growing global

Understanding the local values and essence with international perspective market with localized life

Established: 1886 The Coca-Cola Company (NYSE: KO) is the worlds largest beverage company Operational Reach: 200+ countries Net worth US$ - 72.921 billion (2010) Owns 4 of the worlds top 5 nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Sprite and Fanta Consumer Servings (per day): more than 1.7+ billion

The size of the non-alcoholic beverages market in India is likely to reach the Rs. 11,000 crore-mark by 2015,according to industry body Assocham 700 million Indians 627,000 villages Study on buying behavior of rural consumer indicates that the rural retailers influences 35% of purchase occasions. Therefore sheer product availability can affect decision of brand choice The Indian rural market is expected to grow more than tenfold to become a USD$100 billion opportunity for retail spending in the next 15 years, The Nielsen Company has found Rural purchasing power has grown faster than urban in the last six quarters

COKE due to flat sales in urban areas shifted its focus to the huge untapped market in rural india. In 2002 The advertisement with the tag line - 'Thanda Matlab Coca-Cola' was targeted at rural and semi-urban consumers. According to company sources, the idea was to position CocaCola as a generic brand for cold drinks.
CCI's rural marketing strategy was based on three A's - Availability, Affordability and Acceptability. The first 'A' - Availability emphasized on the availability of the product to the customer; Second 'A' - Affordability focused on product pricing, Third 'A'- Acceptability focused on convincing the customer to buy the product.

Erratic power supply

Lack of motor able roads and basic infrastructure People in Rural areas had a preference for traditional cold beverages like lassi or lime juice

Price also a major factor for rural

Also a major challenge is the communication reach

Availability: due to large infrastructure gaps coca cola company(CCI)

had to totally revamp there distribution model for rural markets. focused on strengthening its distribution network there. The company opted for a hub and spoke distribution system rather than a centralized systems. stock was transported from the bottling plants to hubs and then from hubs, the stock was transported to spokes which were situated in small towns For transporting stock from spokes to village retailers the company utilized auto rickshaws ,cycles, vans, bullock carts, even camels carts in rajasthan, and boats in the back waters of kerala. To ensure full loads, the company depot supplies, twice a week, large distributors which who act as hubs. These distributors appoint and supply, once a week

Coca-Cola used a combination of TV, cinema and radio to reach 53.6 per cent of rural households. It doubled its spend on advertising on Doordarshan, which alone reached 41 per cent of rural households. It has also used banners, posters and tapped all the local forms of entertainment. Since price is a key issue in the rural areas, Coca-Cola advertising stressed its `magical' price point of Rs 5 per bottle in all media It also actively participated in various melas and festivals.

Since many rural indians are daily wage earners ,affordability was a major issue, coke successfully captured the rural market with the help of the CHOTA COKE INITIATIVE. 80% of the new cola drinkers are from the rural market. Acceptability and financial benefit to the retailer was also addressed by CCI it provided low-cost ice-boxes - a tin box for new outlets and thermocol box for seasonal outlets. The parivartan program Training small town retailers-Cokes strategy involves training retailers (around 6,000 of them) in a program launched by the Coca-Cola University on how to mange stocks etc. Now, it has stepped up distribution of its 200-ml (priced at Rs 7 and Rs 8 )

EKO COOL:
Sales of soft drinks have long been stymied by erratic power supply, but an environment-friendly innovation developed by Coca-Cola India 'eKOCool', a chest cooler, developed internally by the Indian arm of CCI, operates exclusively through solar energy, with no other electricity source required to operate it . Coca-Cola India plans to offer an entire range of its chilled soft drink products to markets deep in the hinterland, even where there is no electricity and eko cool will make it possible.

Just Like Home-made Lemonade A lemon drink with no added preservative or colour, Minute Maid Nimbu Fresh offers a refreshing drinking experience as close to homemade Nimbu Paani as possible in a packaged format. Nostalgia in a bottle, Minute Maid Nimbu Fresh offers 'Ghar Ki Yaadon Ka Ras' (memories of home-made lemonade) in every sip.

At the end of the day, it should be a balance between the local and global...We have to have the global brands like Sprite and Fanta, which is a big brand here (in India) at the same time we see tremendous opportunities for local brands," he said.In India Coca-Cola sells brands such as Thums Up, Limca, Mazaa, Minute Maid, Nimbu Fresh which caters to the local taste.
Executive Vice-President Joseph Tripodi

COCA-COLA has identified rural India as its target market for Sunfill, the recently launched powdered soft drink concentrate
The idea behind the launch of Sunfill, was to initiate those who have not been able to afford bottled carbonated drinks, into soft drinks. The Sunfill initiative along with the marketing campaign that will accompany the launch will effectively target a potential market of 200 million new customers. Mr Jaspal Singh
Operations Director Hindustan Coca-Cola Beverages

The instant and ready-to-mix Sunfill is available in a single-serve sachet of 25 gms and a multi-serve sachet of 200 gms priced at Rs 2 and Rs 15, respectively thus targeting the rural market were price is a issue for daily wage earners in rural india.

The consumer isn't a moron. She is your wife. David Ogilvy