FORMATIVE ASSESSMENT 1 [100 Marks]

Read the case study and complete the task below. Coca Cola India's Thirst for the Rural Market

In early 2002, Coca-Cola India (CCI) launched a new advertisement campaign featuring leading Bollywood actor - Aamir Khan. The advertisement with the tag line - 'Thanda Matlab Coca-Cola was targeted at rural and semi-urban consumers. According to company sources, the idea was to position Coca-Cola as a generic brand for cold drinks. The campaign was launched to support CCI's rural marketing initiatives. CCI began focusing on the rural market in the early 2000s in order to increase volumes. This decision was not surprising, given the huge size of the untapped rural market in India. With flat sales in the urban areas, it was clear that CCI would have to shift its focus to the rural market. Nantoo Banerjee, spokeswoman - CCI, said, "The real market in India is in the rural areas. If you can crack it, there is tremendous potential. However, the poor rural infrastructure and consumption habits that are very different from those of urban people were two major obstacles to cracking the rural market for CCI. Because of the erratic power supply most grocers in rural areas did not stock cold drinks. Also, people in rural areas had a preference for traditional cold beverages such as 'lassi' (curd with salt or sugar and flavourings) and lemon juice. Further, the price of the beverage was also a major factor for the rural consumer. CCI's Rural Marketing Strategy CCI's rural marketing strategy was based on three A's - Availability, Affordability and Acceptability. The first 'A' - Availability emphasized on the availability of the product to the customer the second 'A' - Affordability focused on product pricing, and the third 'A'- Acceptability focused on convincing the customer to buy the product. Answer ALL the questions in this section.

Question 1 (25 Marks)

With reference to the article, in India, the idea was to position Coca-Cola as a generic brand for cold drinks. With this in mind, evaluate Coca-Colas positioning strategy in the rural and semi-urban areas of India.

Question 2 (25 Marks)

According to the article, the price of the beverage was also a major factor for the rural consumer. In this regard, critically analyse the factors influencing Coca-Colas pricing strategy in India and argue whether global pricing strategies would have been suitable in India.

Question 3 (25 Marks)

India has a vast array of social issues, different preferences and challenges as one meanders from the north to the south of the country. In lieu of this, make recommendations to the CCI marketing team on the key factors and dynamics impacting on the marketing initiatives that contribute to the creation of successful long term growth in India.

Question 4 (25 Marks)

CCI's rural marketing strategy was based on three A's - Availability, Affordability and Acceptability. The first 'A' - Availability emphasized on the availability of the product to the customer the second 'A' - Affordability focused on product pricing, and the third 'A'- Acceptability focused on convincing the customer to buy the product. Against this backdrop propose a marketing communications strategy for CCI. In your answer substantiate why the chosen element of the marketing communications mix is suitable.