Marketing Strategies In The Indian Soft Drinks Industries

A Case Study of Coca- Cola Limited

BY-Vishwanath BhandariJyothi NagaralKrishna ShetLaxmikanth ReddyPoornimaVaijanath M

IntroductionThe Indian soft drinks industry has witnessed a radical in the last few year. In India, after the exit of Coke in 1977, Parle and Pure drinks controlled the soft drinks market. Parle introduced Thumps Up in the beginning of 1980s. Until 1991, the domestic market was ruled by Parle, with a 60% market share. But the market scenario change drastically when in 1991, Pepsi Foods Limited(PFL) made an entry in India.

Introduction to Coke

Product line soft-drink:

Coca-cola Sprite Fanta Diet coke Limca Maaza Thums up

Core Brand in India[1]

Coca- Cola was the leading soft drink s brand in India until 1977. After that Government reduce its equity stakes required under F.E.R.A. i.e. Foreign Exchange Regulation Act.After a gap of 16 years , Coca-cola returned India in 1993.Coke has portfolio of more than 3000 beverages which ranges from diet & regular sparkling beverages to still beverages such as 100% fruit juices & fruit drinks , waters, sport drinks, teas & coffee, & milk & soy-based beverages.

1. To study of the major strategies implemented by the soft drink companies.

2. To know about the effect of these strategies.

According to Thompson & Strickland ,” A company’s strategy consists of the combination of competitive moves & business approaches that managers employ to please Customers, compete successfully, & achieve organizational objectives.”

Strategy

Pricing Strategies

In Rural areas, average daily wage is around Rs. 100 , whereas the cost of a bottle of Coke was Rs. 10, affordability was a big issue, it was perceived as a luxury that only a few customer could afford to purchase.Coca- Cola launched the Accessibility campaign. It introduced new 200ml bottle, smaller than traditional 300ml bottles.Coke also cut the price to half i.e. Rs. 5.This pricing strategy closed the gap between Coke & basic refreshments like lemonade & tea. This made soft drinks truly accessible for the first time for rural consumers.To effectively achieve the stable balance between sales

and covering the production costCompany has priced the product same as that of its

major competitor of the market leader

Promotion Top line promotion: T.V ads, banner, celebrity

Bottom line promotion: Promotion schemes, Publicity material, Designs of bottles

Designs of Bottles

Trade Promotion Strategies-These strategies are run for the retailers.

-Retailers are offered trade- schemes like certain number Of bottles free per case, display schemes, target schemes & other benefit like installation of refrigeration facilities,putting up of their walls, upgrading existing refrigeration facilities, filling of their walls, giving them umbrellas & Sunshades.

Soft drinks try to promote their products available wherever people tend to gather like railways stations , bus stops, near large offices & movie halls.

Segmentation

Demographic

Psychographic

Geographic

Target market

Diet coke: weight conscious people. Maaza: kids , juice loving people Sprite: young people Thums-up: confident, mature and uniquely

masculine attitude people Fanta: girls, ladies

Positioning

It consist functional positioning strategy

emphasize on : Price Quality Product feature

Competitors

Suggestions Survey results analysis shows :- 70% of the respondents says that if the product is not

available easily they will shift to the substitutes and it may affect the sales of the company.

The retailers are getting trade promotion schemes from companies they should continue it.

60% of the respondents avail the sales promotion schemes offered to them.

The survey results 96% watch Ad’s. It reveals 78% respondents could correctly recall that “Open Happiness” Ad was of Coke. This is a very high percentage of recall & it shows that Ads are effective. Hence the company may increase advertising expenditure.

Pepsi is the market leaders in soft drink industry in India & 2nd comes th Coke so it must increase it’s sales

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