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PACKAGE SIZESPACKAGE SIZES

In document Marketing Management (Coca Cola) (Page 43-66)

PACKAGE SIZES

In 1993 the standard industry package was the 250ml returnable glass In 1993 the standard industry package was the 250ml returnable glass bottle. This was being retailed at Rs. 5 CCI introduced 300 ml bottle. This was being retailed at Rs. 5 CCI introduced 300 ml Returnable Gla

Returnable Glass Bottles, ss Bottles, (RGB), w(RGB), while maintaining hile maintaining the price the price at Rs.at Rs.

5.00. The rest of the industry was forced to follow CCI‟s example and 5.00. The rest of the industry was forced to follow CCI‟s example and upgrade to 300 ml from 250 ml. The focus of CCI was to offer upgrade to 300 ml from 250 ml. The focus of CCI was to offer consumers better value for price, and this has remained the cornerstone consumers better value for price, and this has remained the cornerstone of CCI‟s strategy i

of CCI‟s strategy in India.n India.

At

At present, CCI‟s present, CCI‟s brands are brands are available available in a in a host of host of package sizes.package sizes.

These includes 200 ml RGB, 300 ml RGB, 500 ml RGB, 1 Litre RGB, These includes 200 ml RGB, 300 ml RGB, 500 ml RGB, 1 Litre RGB, 1.5 L

1.5 Litre PEitre PET and T and 330 m330 ml Cans. l Cans. The The 200-ml package 200-ml package was was introducedintroduced in March

in March 1996, 1996, and was positiand was positioned to capitaoned to capitalise the potential lise the potential of theof the rural and semi-urban markets of India.

rural and semi-urban markets of India.

Coca-Cola India

Coca-Cola India was the fwas the first soft irst soft drink company drink company in the in the country tocountry to launch cans. Coca-Cola and Fanta marked the beginning of the can launch cans. Coca-Cola and Fanta marked the beginning of the can revolution in India. These brands were launched in cans just before the revolution in India. These brands were launched in cans just before the World Cup Cricket in January 1996. Thum Up and Limca cans were World Cup Cricket in January 1996. Thum Up and Limca cans were introduced in May 1996. These launches brought India on par with introduced in May 1996. These launches brought India on par with international packaging standards in the soft drink industry. For the international packaging standards in the soft drink industry. For the

first time Indian consumers had a convenient, mobile, single serve consumption package.

Consumers benefited from 11 more brand package combinations, led by the successful, first ever launch of 1.5 litres PET bottles and the subsequent introductions of 500 ml and 1Litre RGBs. This came with the superior tamper-evident, leakage-proof Plastic Closures. This was a technological leap over the metal closures then used by the rest of the soft drink industry. All the four national brands, i.e. Coca-Cola, Fanta, ThumsUp and Limca are available in all of the above package sizes.

Latest Development

 Mobile Coke-easier to carry, more than can- around 500 ml

 Mini Coke-Those who cannot consume 300 ml and for those who find 300ml-a bit expensive.

Packaging

Objective

To motivate brand purchase and maximize enjoyment of the consumption experience

To create a distinct identity for Coca-Cola in the mind of the consumer.

Overall

Differentiate brand Coca-Cola by the use of the contour package, icons and unique graphics.

Leverage packaging- as a communication vehicle of core Coca-Cola values.

Gain availability of consumer relevant package types and sizes for usage occasions and channels.

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Opportunity

1. Marketing programmes

2. Product sampling

3. Indian - rural market has a great potential -this sector is  basically “Real Market” for its

products-intense Research should be done and a no. of  strategies should be evolved.

Weakness

1. Distribution system needs to be upgraded as main goal is to make it always available  –  within an arm‟s reach of  desire.

2. Per capita consumption is very low

3. Market regulation

Brand Positioning

Positioning of the different brands in the Indian soft - drink market can be analysed by the way the various brands have been advertised by their companies and the manner in which they are perceived by the consumers. Some of the key positioning based used by some of the leading brands are indicated bellow.

Youthfulness

Pepsi : "Generation Next", "Right Choice" Youthfulness fun with a distinctly American connotation.

Coke : "Eat Cricket" Sleep Cricket, Drink only Coca - Cola"

Suggesting youthful drink.

ThumsUp : "Taste the Thunder", indicates adventure with all its related connotations.

Health

Limca : "With Isotonic Sales" - positioned as a balanced health drink 

Slice : Aims at freshness of fruits and health Fashionable

Fanta : Anything is possible

Campa-Cola : "The taste of the times"

Gold spot : "The Zin Thing" Placed as the “in drink” of the day

Mirinda : Miranda - a-a-a suggests light humour.

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User Status : Most consumers perceive soft drinks as a Thirst -Quencher. A few segments can be defined based on the purpose behind the consumption.

 Normal : The group of consumers who consume soft drinks as a thirst quenching medium

Select : The group of consumers who consume soft drinks as a diluting medium for alcoholic beverages.

 Elite : The group of consumers who prefer soft drinks to water. They also offer soft drinks to guests

Social : This group comprises of individual and institution who serve soft drinks during social functions. This segment has emerged as the most rapidly growing market.

The market strategy of Coca-Cola Revolves around

 Acceptability

 Availability

 Affordability

The emphasis is on these three fronts. Firstly they focus on distribution, their objective is to be within arm’s reach of desire of 

every consumer, meaning than they should continue to implement aggressive distribution strategies so as to former increase their reach to the millions in India.

Secondly, building on acceptability and affordability, they aggressively continue to add value to the entire experience of drinking their products, enabling them to draw ever so closer to their consumer.

Their focus is not on more market numbers but on the fluid intake.

Internationally they consider their growth potential infinite, and India is the epitome of their growth potential infinite, Currently in India, the primary emphasis is to enhance their production and distribution systems to bring them to international levels. This will enable them to provide a choice from their brands to every potential consumer in any part of India.

They are highly consumer driven company, and their objective is to drive volumes through advertisements. For e.g., their volumes increased by 64% in the 1st quarter of 196 as a result of their World cup Cricket initiatives. For the 1999 Cricketing season they launched an

innovative series of advertisements named “Experts”. Their strategy was to further enhance their emotive association with the game of  cricket in general and Cricket fans in particular. This reinforces that whenever and wherever there is Cricket there is Always Coca -Cola.

In 1993 Coca-Cola bought out Parle Exports: This was a sound strategic decision on their part since it enabled them to obtain both, very strong brands and an excellent distribution network.

However, at this point in time, Coca-Cola committed a strategic mistake. It overestimated the brand equity of Coca-Cola. However, in the 16 years that Coke was away. India saw a whole new generation growing up on other Colas. Millions of teenagers (probably a sizeable if not the biggest chunk of the Cola consumers) did not identify with Coca-Cola nor were they enamoured by Coke simply because of it being a global brand. The biggest mistake Coke did was to take the Indian consumer for granted. The company believed that it name alone coupled with global ad campaigns would be sufficient to tempt the Indian consumer to guzzle coke by the gallon. Coca-Cola, in love with the mother brand, neglected the star Indian brand Thums Up.

Moreover, Coke employed its global positioning strategy of targeting at consumers from 8 to 80.

Coke was positioned as a thirst-quenching refreshing ice cold drink for all occasions. It also stuck on to its global strategy of high value advertising. It also used the same international advertising used globally instead of coming out with an Indianized version of the same.

The culture of Coca-Cola keeps a straight face, the jacket and necktie types, remains tight – lipped is more American than Indian.

Coca-Cola was restricted by its Atlanta-centric attitude. Previously all policy decisions had to be approved by Atlanta. The organizational culture was so restrictive that even an advertisement copy had to be sent to Atlanta for their approval. However, post 1997, when Donald Short replaced Richard P. Nicholas III, Coca-Cola India has seen a revolution of sorts. The new CEO of Coca-Cola International, Douglas Ivester has given Short a free hand with his mandate being to do

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Why study Consumer Behavior ?

Understanding consumers and the consumption process brings a no of  benefits, among them the ability to assist managers in their decision making, provide marketing researchers with a knowledge base from which to analyze consumers, help legislators and regulators create laws and regulations concerning the purchase and sale of goods and services, and assist the average consumer in making better purchase decisions. Moreover, studying consumer behavior will enhance your understanding of the psychological, sociological and economic factors that influence all human behaviors.

1. Consumer analysis should be the foundation of marketing management. It assists managers to

:- Design the marketing mix.

Segment the market place.

Position and differentiate products.

Perform an environmental analysis.

Develop market research studies.

2. Consumer behavior should play an important role in the development of public policy.

3. The study of consumer behavior will enable one to be a more effective consumer.

4. Consumer analysis provide 3 types of information

:- Consumer orientation.

Facts about human behavior.

Theories to guide the thinking process.

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there was not much of taste difference between the two brands, for them a Cola remained a Cola.

CONSUMERS REACTION

To know the consumers reaction towards the sales promotional activities undertaken by a company and whether it induces the consumer to switch brands, our survey indicated that 50% of the people are brand loyal, for them the taste of the drink was most important and they were not ready to change to another drink because of Sales promotional activities. Whereas 48% can change preferences if given attractive offers. They perceived these offers to be attractive enough for them to change brand. The rest 2% were undecided as it depended a lot to them as to what the offer was. An attractive offer could make them switch.

MOST ATTRACTIVE SALES PROMOTIONAL ACTIVITIES

Amongst the different sales promotional activities undertaken, most people found Great Savers, Movie campaigns and Event Marketing as most attractive and widely accepted. Great Savers were perceived as convenient, because they are available to the consumer at their doorstep.

Movie campaign and Event marketing were equally preferred as Indians associate themselves most with movies and other forms of  entertainment.

The Point of Purchase material displayed by the retailers influenced the consumer to alter his last minute decisions in favor of Coke.

MAJOR RECENT CAMPAIGNS BY COKE

The Sales Promotion campaigns by Coke were divided into two main segments -- Movie campaigns

Event campaigns.

It was found that in the past 6 months among the Movie campaigns Hum Saath Saath Hai has been Coke's most successful strategy of  promoting Coke. This was mainly due to the fact that the timing of the campaign was appropriate, with people associating Coke with the festive season Diwali and family togetherness which was the highlight of the movie Hum Saath Saath Hai. Next Movie campaign which was most remembered and liked was Taal, as Coke was very prominently displayed during the movie.

Among the events, Coke was most associated with the Coca-Cola Trophy, as cricket is part of an average Indian household. There was a wide coverage of the event and Coke advertised at strategic points on the field.

One must also not forget the huge success of the coke gift packs during the festive season of Diwali which were available in attractive packaging targetting the kids.

EFFECTS OF THE RECENT CAMPAIGNS

Based on our survey of Sales Promotion effectiveness of Coke we found that 69% of the respondents did not switch over to Coke or those who were already consuming did not consume more of it although they were quite popular and attractive.

PERSONALITY MOST ASSOCIATED WITH COKE

The respondents were given six choices to choose from which were as follows :- Karisma Kapoor, Aamir Khan, Twinkle Khanna, Daler Mehndi, Saurav Ganguly and Javagal Srinath. This was to know whether the celebrity endorsements are successful and people identify with them and to see its effect on consumption patterns. Karisma Kapoor being one of the leading actress was the most associated with

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In document Marketing Management (Coca Cola) (Page 43-66)

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