Coca Cola India has chalked out its summer strategy which primarily aims at expanding the existing geographical coverage of its key brands-Coke and Fanta- in the country from 50 per cent to 70 per cent.
The expansion in geographical coverage will be achieved by Cokes acquisition of 5 more bottling units by the end of this summer. In a clear departure from its earlier marketing tack of pushing only a select few brands within its portfolio, Coke has decided to push all five main brands-Coke, Fanta, Thums Up, Limca and Citra. All five brands would be available in packages of 1-1.5 litre pet bottles for better retail distribution. As part of a major thrust in rural markets and class B and C cities, it plans to increase retail outlets by 20 per cent.
To conquer the new markets, Coke plans to sell its soft drink at Rs 5 for 180-ml cups through a specially designed post mix machine which runs without electricity. These pouring junctions will be priced at Rs 8,000-Rs 10,000 per unit and are intended mainly for the rural markets.
The major thrust has been to promote all the brands this year rather than a select few. We have lined up an advertising blitz for all the five brands which we would be pushing. There are 11 advertising campaigns for various Coke brands on air this summer, pointed out Donald W Short, chief executive officer, Coca Cola India.
In fact, ads for Limca and Citra, which have been created by Chaitra Leo Burnett, are being telecast nationwide after a gap of nearly 3 years. Even Mazaa is being given a facelift through visual ads. However, Thums Up and Coke, which constitute over 35 percent of Cokes turnover, would be given the maximum marketing push, he said.
Besides the acquisition of 5 more bottling units, which will take Cokes bottling operations to over 12 territories, the company would actively push its distribution network to penetrate rural areas.
We know that the metropolises would be areas of stiff competition. Hence, the rural areas would be the markets with greatest growth potential and we would be targeting those areas including the suburbs, pointed out Short.
Though the export obligation on Coke, as per the foreign investment approval, was in a 3:1 ratio of export earnings against import, Coke has surpassed the requirement and has generated export earnings of $5 for every $1 of import.
We are planning to build an international brand in blended tea procured from India which would be marketed globally. We have already launched Georgia Madras Blend, a canned coffee, in Japan from coffee procured locally from southern India, revealed Jacob R Robbins, director, International Trade & Purchase.
