Coca-cola in India- A brief
Coca Cola had entered Indian market in 1970 and was the market leader for 7 years. In 1977, it had to exit the country because of changes in government policies. Over the next few years, Parle launched new brands like Thums up, Limca and emerged as a strong player in the market.
In 1990, Indian Government opened the market for big international players. Pepsi entered and established itself in the country. Tough competition broke between Pepsi and Thums Up. Coca-cola re-entered Indian market in 1993 and launched brands like- Coca Cola, Diet Coke, Sprite and Fanta. Coca Cola resulted in the decline of Thums Up sales from 60% in 1993 to 15% in 1998. Later, Coca Cola bought Thums Up. By 2009, Coca Cola became the market leader with a share of 59%.
Coca-Cola after re-entry
After its re-entry, Coca Cola had to face severe competition from Parle, Pepsi and others. In the absence of Coca Cola, Pepsi got a head start. Coca Cola had a second mover disadvantage and hence, in order to establish itself in the country, it brought in various innovations which helped it to reach the top. Some of the innovations brought about were:
Targeting the rural markets
In order to penetrate the rural markets, Coca Cola launched the Chhota Coke (200ml for Rs.5). It was easily affordable by the lower income group people. To further gain peoples’ attention and achieve a higher share, Aamir Khan was made the ambassador of Coca Cola. “Paanch ka matlab chhota coke” was the tagline which became popular with the advertising campaign.
"The rural market is a significant part of our marketing strategy which enables us to help the
consumer link with our product."
- Sanjeev Gupta, Marketing Director - Cola-Cola India, in August 1995