For beverage giant Coca-Cola, understanding customer behaviour at various retail outlets is key to improving sales. The Atlanta-based company — which counts Eurasia and Africa among key emerging regions, which include markets such as India among 92 other countries — recently conducted a study on the sales subject in this region and found some interesting consumer insights. In a conversation with Viveat Susan Pinto, Carlos Olmos, group director, customer leadership, Coca-Cola, Eurasia & Africa, highlights the key take-outs of the study and their implications for Coke. Edited excerpts:
What did the study show?
The study looked at shopper loyalty and behaviour across different retail formats in Eurasia and Africa. There were several learnings for us from this study. The key is segmented execution. Shoppers are different in different neighbourhoods. They can be segmented based on dayparts, even on the basis of a month. If we can target each of these moments with the appropriate product, it not only makes a big difference to us, but also to our suppliers and retailers. Sales at the shop floor or service counter would be a lot more easier.
Can you highlight what these moments you just spoke about are?
By moments, I mean in a month we see distinct periods. One is shopper or customer behaviour during weekdays. The next is shopper behaviour during the weekends and the third is behaviour induced during weekends following their paydays. Each of these period is different from the other. Shoppers have different loyalty drivers on each occasion. They go to different channels to meet their needs, and their shopping baskets during each of these moments is also very different. What it means for us is that at the store level where our products are stocked, we cannot have the same proposition on weekdays or weekends or when consumers are out following their paydays. It has to be different.
Coke’s go-to-market model is based on what it calls the occasion, brand, price, promotion and channel strategy. Does the current study reinforce what you have been doing for some time now?
Yes, it does. We need to get more aggressive on market segmentation and invest behind it to be able to deliver it interestingly to consumers. This is even more relevant today, since consumers are increasingly becoming very discerning and will simply spurn you if you do not meet their needs at that particular moment. Hence, understanding what drives a consumer at which time of the day or month is important while pushing your products. It also gives us a sense of how our portfolio of products should be tailored.
What are the India-specific findings of your study?
The market is very dynamic here. Both traditional and modern trade will grow. While traditional trade is dominant here and marketers have understood how to reach out to consumers through the kirana store, consumer needs are undergoing a transformation driven by macroeconomic factors. You have to reinvent yourself. On the modern trade front, the challenge is to entice consumers to step in and buy, since it is an emerging format. The challenges in both the places are very different, but interesting for us since, as a marketer, our objective is to reach out to as many people, wherever they are.
Is Coke’s set of products in India capable of handling the varied dayparts or occasions you emphasised earlier?
We do have a rich portfolio of products in India. I am not saying you cannot add more. You can. But, the current portfolio is quite robust across the spectrum, from carbonated to non-carbonated. The local management here continues to monitor the scenario and see what else can be added to the list. The challenge is to improve not just the width, but also the depth of consumption. Most players, including us, are focusing on such efforts.
