Monday, March 19, 2007

Two Indias: In view of Coca Cola(Bharat ke 2 bazaar: Coca Cola ki nazar me)

The MNCs whick working in India are now adopt the slogan of 'Think Globaly, Act Localy'. The big player of the beverage market in world and in India too 'Coca Cola' adopt it as their marketting policy in India to tap the rapidly emerging rural Indian market. Here are the 2 Indias which are being developed by this multinational company:
"India A," the designation Coca-Cola gave to the market segment including metropolitan areas and large towns, represented 4% of the country's population. This segment sought social bonding as a need and responded to aspirational messages, celebrating the benefits of their increasing social and economic freedoms. "Life ho to aisi," (life as it should be) wasthe successful and relevant tagline found in Coca-Cola's advertising to this audience.
India B: "Thanda Matlab Coca-Cola" Coca-Cola India believed that the first brand to offer communication targeted to the smaller towns would own the rural market and went after that objective with a comprehensivestrategy. "India B" included small towns and rural areas, comprising the other 96% of the nation's population. This segment's primary need was out-of-home thirst-quenching and the soft drink category was indifferentiated in the minds of rural consumers. Additionally, withan average Coke costing Rs. 10 and an average day's wages around Rs. 100, Coke was perceived as a luxury that few could afford. 34In an effort to make the price point of Coke within reach of this high-potential market, Coca- Cola launched the Accessibility Campaign, introducing a new 200ml bottle, smaller than the traditional 300ml bottle found in urban markets, and concurrently cutting the price in half, Rs. 5. This pricing strategy closed the gap between Coke and basic refreshments like lemonade and tea, making soft drinks truly accessible for the first time. At the same time, Coke invested in distribution infrastructure to effectively serve a disbursed population anddoubled the number of retail outlets in rural areas from 80,000 in 2001 to 160,000 in 2003,increasing market penetration from 13 to 25%.35Coke's advertising and promotion strategy pulled the marketing plan together using local language and idiomatic expressions. "Thanda," meaning cool/cold is also generic for cold beverages and gave "Thanda Matlab Coca-Cola" delicious multiple meanings. Literally translated to "Coke means refreshment," the phrase directly addressed both the primary needof this segment for cold refreshment while at the same time positioning Coke as a "Thanda" or generic cold beverage just like tea, lassi, or lemonade. As a result of the Thanda campaign, Coca-Cola won Advertiser of the Year and Campaign of the Year in 2003.
His success in Rural India:
Comprising 74% of the country's population, 41% of its middle class, and 58% of its disposable income, the rural market was an attractive target and it delivered results. Coke experienced 37% growth in 2003 in this segment versus the 24% growth seen in urban areas. Driven by the launch of the new Rs. 5 product, per capita consumption doubled between 2001-2003. This market accounted for 80% of India's new Coke drinkers, 30% of 2002 volume, and was expected to account for 50% of the company's sales in 2003.

Monday, March 12, 2007

Now rural India on target of MNCs!

TO expand the market by tapping the countryside, more and more MNCs are foraying into India's rural markets. Among those that have made some headway are Hindustan Lever, Coca-Cola, LG Electronics, Britannia, Standard Life, Philips, Colgate Palmolive and the foreign-invested telecom companies.
The Indian rural market with its vast size and demand base offers a huge opportunity that MNCs cannot afford to ignore. With 128 million households, the rural population is nearly three times the urban.As a result of the growing affluence, fuelled by good monsoons and the increase in agricultural output to 200 million tonnes from 176 million tonnes in 1991, rural India has a large consuming class with 41 per cent of India's middle-class and 58 per cent of the total disposable income.
The importance of the rural market for some FMCG and durable marketers is underlined by the fact that the rural market accounts for close to 70 per cent of toilet-soap users and 38 per cent of all two-wheeler purchased.The rural market accounts for half the total market for TV sets, fans, pressure cookers, bicycles, washing soap, blades, tea, salt and toothpowder, What is more, the rural market for FMCG products is growing much faster than the urban counterpart.
The 4A approach
The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media.
However, the rural consumer is not unlike his urban counterpart in many ways.The more daring MNCs are meeting the consequent challenges of availability, affordability, acceptability and awareness (the so-called 4 As)
The first challenge is to ensure availability of the product or service. India's 627,000 villages are spread over 3.2 million sq km; 700 million Indians may live in rural areas, finding them is not easy. However, given the poor state of roads, it is an even greater challenge to regularly reach products to the far-flung villages. Any serious marketer must strive to reach at least 13,113 villages with a population of more than 5,000. Marketers must trade off the distribution cost with incremental market penetration. Over the years, India's largest MNC, Hindustan Lever, a subsidiary of Unilever, has built a strong distribution system which helps its brands reach the interiors of the rural market. To service remote village, stockists use autorickshaws, bullock-carts and even boats in the backwaters of Kerala. Coca-Cola, which considers rural India as a future growth driver, has evolved a hub and spoke distribution model to reach the villages. 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, smaller distributors in adjoining areas. LG Electronics defines all cities and towns other than the seven metros cities as rural and semi-urban market. To tap these unexplored country markets, LG has set up 45 area offices and 59 rural/remote area offices.
The second challenge is to ensure affordability of the product or service. With low disposable incomes, products need to be affordable to the rural consumer, most of whom are on daily wages. Some companies have addressed the affordability problem by introducing small unit packs. Godrej recently introduced three brands of Cinthol, Fair Glow and Godrej in 50-gm packs, priced at Rs 4-5 meant specifically for Madhya Pradesh, Bihar and Uttar Pradesh — the so-called `Bimaru' States.
Hindustan Lever, among the first MNCs to realise the potential of India's rural market, has launched a variant of its largest selling soap brand, Lifebuoy at Rs 2 for 50 gm. The move is mainly targeted at the rural market. Coca-Cola has addressed the affordability issue by introducing the returnable 200-ml glass bottle priced at Rs 5. The initiative has paid off: Eighty per cent of new drinkers now come from the rural markets. Coca-Cola has also introduced Sunfill, a powdered soft-drink concentrate. The instant and ready-to-mix Sunfill is available in a single-serve sachet of 25 gm priced at Rs 2 and mutiserve sachet of 200 gm priced at Rs 15.
The third challenge is to gain acceptability for the product or service. Therefore, there is a need to offer products that suit the rural market. One company which has reaped rich dividends by doing so is LG Electronics. In 1998, it developed a customised TV for the rural market and christened it Sampoorna. It was a runway hit selling 100,000 sets in the very first year. Because of the lack of electricity and refrigerators in the rural areas, Coca-Cola provides low-cost ice boxes — a tin box for new outlets and thermocol box for seasonal outlets.The insurance companies that have tailor-made products for the rural market have performed well. HDFC Standard LIFE topped private insurers by selling policies worth Rs 3.5 crore in total premia. The company tied up with non-governmental organisations and offered reasonably-priced policies in the nature of group insurance covers. With large parts of rural India inaccessible to conventional advertising media — only 41 per cent rural households have access to TV — building awareness is another challenge. Fortunately, however, the rural consumer has the same likes as the urban consumer — movies and music — and for both the urban and rural consumer, the family is the key unit of identity. However, the rural consumer expressions differ from his urban counterpart. Outing for the former is confined to local fairs and festivals and TV viewing is confined to the state-owned Doordarshan. Consumption of branded products is treated as a special treat or indulgence.Hindustan Lever relies heavily on its own company-organised media. These are promotional events organised by stockists. Godrej Consumer Products, which is trying to push its soap brands into the interior areas, uses radio to reach the local people in their language.
Coca-Cola uses 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.LG Electronics uses vans and road shows to reach rural customers. The company uses local language advertising. Philips India uses wall writing and radio advertising to drive its growth in rural areas.
The key dilemma for MNCs eager to tap the large and fast-growing rural market is whether they can do so without hurting the company's profit margins. Mr Carlo Donati, Chairman and Managing-Director, Nestle, while admitting that his company's product portfolio is essentially designed for urban consumers, cautions companies from plunging headlong into the rural market as capturing rural consumers can be expensive. "Any generalisation" says Mr Donati, "about rural India could be wrong and one should focus on high GDP growth areas, be it urban, semi-urban or rural."

Monday, March 5, 2007

Nayi jang ki or le ja rahi hai ye Ghulami

Namaskar Bahratwasio...

Ek Bhartiya ka apko shat-shat naman....Mai apne is blog se apko Bharat me teji se panw pasar rahi ghulami ki sachchai ko ujagar karne ja raha hu..Hum fir se usi andhe kunye me dhakel diye jane wale hai jahan se nikalne ki liye desh ne ekjoot hokar kai shatabdiyo tak ladai ladi thi. Aajad hokar hamne apne tarike se jina to shuru kiya tha lekin ye samrajyawadi shaktiya bahurashtriya companiyo ke bhesh me fir hamare desh me aayi or Vaishwikaran (Globalisation) ke naam par inhone hume fir se ghulam banane ki sajish rachi. Aaaj hum fir inke changul me fansne ko taiyaar dikh rahe hai. ....Ajadi ke kul 60 salo baad aaj hum usi mor par khare hai jaha se hamne apni ajadi ke liye jang ladni shuru ki thi. Kool do shatabdiyo ki ladai ke baad hamne apni azadi pai thi lekin kuchh hi dashko me hame adhunikata or vikas ke naam par usi changul me fasaya gaya or aaj hum fir se ghulam banne ki kagar par hai. Ham aaj fir vikas ke akro me fans kar unhi ankaro se apna kadam-taal milane ke chakkar me apni aajadi gawane ki sthiti me pahunchane ja rahe hai. Mai apne is blog me apne usi bharat ke bare me sari jankaria dene jaa raha hu jo fir se apni ajadi khone ko hai. Ye wo bharat hai jo fir se apni ajadi ke liye larega. Aisa kuchh aaj bhale hi nahi dikh raha hai lekin jald hi ye ladai samne aa jayegi jab ghulami ki janjire saaf-saaf dikhane lagegi. Shahari Abaadi ko to dusro ke rang me rangne ki aadat hai lekin hamare bharat ke gaon jald hi is ghulami se uktakar apni aajadi ke liye jang shuru karnge. apni us aajadi ke liye jinhe ye bahurashtriiya companiyo wali byawastha unse chhin rahi hai. ye ladai apko jald hi bharat me dekhne ko milega. haa kuch saalo ki hi deri hai...Ummid hai aap sab log chahe wo bharat ke ho ya fir kisi or hi desh ke sab ke sab is changul me fansne ja rahe ho..aap apne vicharo ko yaha tak layiye or asha hai hum jald hi apni awaj buland karenge is aane wale sankat ke khilaaf........Jai Hind...Jai Bharat