IUP Publications Online
     
Recommend    |    Subscriber Services    |    Feedback    |     Subscribe Online
 
Advertising Express Magazine:
Coca-Cola in India: Innovative Distribution Strategies with 'RED' Approach
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 

Children represent the direct purchase power for kids' products and indirect purchase influence for products not intended to be used by them. Marketers tend to lure children by targeting ads at them and, in turn, exploit their credulity and inexperience and the advertising induced demand leads to family tension and conflict and creates desires for products, which are either not useful or harmful to them. This article analyzes the ethical issues involved when marketing to children.

 
 

Over the years, CCI had built its strong distribution system consisting of company-owned, franchised and contract manufactures and distributors. With its focus on effective execution, in 2006, CCI introduced `Right Execution Daily' (RED), a distribution plan which boosted the sales of its products in urban markets through efficient brand displays and visibility programs. India, being a predominately rural economy and all major MNCs targeting the potential rural markets with their products, CCI was no exception. It made its presence felt in the rural markets of India with its unique marketing and distribution strategies. It further plans to implement RED in these markets. However, the question to be answered is—what are the challenges that the company might face in reaching out to the customers in Indian rural markets and how far can RED be extended to rural India?

Coca-Cola, the world famous and best tasting cola product originated as soda fountain beverage in 1886, in Atlanta, US. TCCC is the largest beverage company in the world with its operations spread in more than 200 countries. It leads the beverage markets in the world benefitting from its broad reach and scale. It markets nearly 500 global brands such as Coca-Cola, Sprite, Fanta, Maaza, etc., and more than 3,000 beverage products including sparkling cola drinks, juices, sports drinks and energy drinks. With the largest product portfolio, Coca-Cola allows the people across the globe to enjoy its beverages for about 1.6 billion times a day. The company has been able to create a global reach with local focus through its `Coca-Cola System' strength, consisting of the company, bottling partners and customers (Exhibit I). Coca-Cola manufactures the concentrates, beverage bases and syrups and sells them to the bottling partners. It owns the brands and focuses on marketing the brands to reach the consumers. It works with around 300 bottling partners ranging from international, regional to family-owned operations, responsible for producing, packaging, distributing and merchandising its products worldwide forming the world's largest beverage distribution system. Its customers are retail stores, restaurants, drug stores, etc., who in turn sell its products to end consumers.

 
 

Advertising Express Magazine, Coca-Cola, Innovative Distribution Strategies, Urban Markets, Marketing Strategies, Beverage Markets, Distribution System, Indian Consumer Market, Rural Markets, Distribution Assets, Global Brands, Marketing Channels, Fast Moving Consumer Goods.