Marketing Strategy of Coca Cola in India

Topics: India, Beer, Environmental scanning Pages: 10 (3443 words) Published: August 16, 2011
India has a GDP of over USD 1.236 trillion (2009 estimate), the 12th largest in the world (4th largest in terms of GDP on purchasing power parity basis of USD 3.57 trillion) and per capita income of just USD 1,100 (136th in the world). Even during recessionary period of the last two years, economy has been growing at over 7%, 2nd fastest in the world (after China), that means its average income will double within 10 years. Demographic Trends

India’s population stood at 1.157 billion (July 2010 estimate), growing at a rate of 1.407% (2010 estimate) with 64.3% of total population accounting for people between age bracket of 15-64 years and 30.5% below 15 years of age. Sex ratio of total population remains at 1.08 males to one female (2010 estimate). Following are the changes being observed in the structure of Indian population and its impact on the companies targeting the Indian consumers over the last decade: * Women are increasing becoming career-oriented and prefer to have children at a later stage in life. Especially in urban areas, there has been a tendency to have maximum one or two children which resulted in parents spending more per child (leading to better quality of life and education) and has allowed women to stay at work longer (increasing household incomes and encouraging the purchase of labor or time saving products).

* Alongside a declining number of children has been a decline in the average size of households. The growth of small size households has had numerous marketing implications, ranging from an increased demand for smaller units of housing and smaller size but better quality of clothing and groceries. Social, Cultural and Lifestyle Developments

In the last decade, India has seen more global influences than ever before. Technology has brought the diverse nation get closer, leading to evolution of communication patterns and reducing the bridges between urban and rural areas. This cultural shift has definite impacts on the Indian work scenario. Existing companies have redefined their strategies and companies have realized the importance of understanding the Indian playground in depth. Following are the key trends observed in socio-cultural environment of India, which give insights into new aspects of thought and communication that largely drive the nation today. * The role of women in society is changing as men and women increasingly share expectations in terms of employment and household responsibilities. For example, products like ready prepared meals will have more scope for growth which will relieve working women of their traditional role in preparing household meals.

* Leisure is becoming a bigger part of many people’s lives, and companies have responded with a wide range of leisure related goods and services.

* Greater life expectancy is leading to an ageing of population and a shift to an increasingly elderly culture. Or at this time with 64% of the population being in the age of 15-40 years the Indian market is considered a youth market. Technology changing lives of Indian Consumers

The pace of technological change is becoming increasingly rapid in the Indian consumers market, allowing new goods and services to be offered to consumers (for example, Internet banking and mobile telecoms). New technology can allow existing products to be made more cheaply, thereby widening the market for such goods by enabling prices to be lowered. In this way, more efficient and low cost airlines have allowed new markets for domestic air travel to develop. Outlook:

We have looked at socio-cultural implications of Indian Consumers during the last decade. Importantly, steps in the right directions need to be taken immediately to avail of the existing opportunity to boost economic growth and enhance the socio-cultural landscape of India. CASE – 1 (MANUFACTURER)

Changing Consumer Demand: Coca Cola’s strategy to exploit India’s Rural Markets during last decade Coca-Cola’s operations...

References: 15) India Ministry of Information and Broadcasting (2009). India: a reference annual. New Delhi: Govt. of India
16) ComScore report on social networking sites in India (
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