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.