Cafe Coke - Organised retailing

Soft Drinks industry is rapidly growing in India. Increase in population, increase in disposable income, trendy lifestyle and some other factors are giving impetus to this growth. The industry is cashing on these factors and little or nothing is being done to think of new marketing channels or distribution channels. The industry seems to have stagnated after introducing pet bottles, tin cans, and fountains. There is a need to develop new marketing channels which not only will open new opportunities for its products but also help brand building.



The traditional distribution channels in this industry ie, multiproduct, multibrand retail shops are being flooded with new products every day. Every company is trying to grab that most visible shelf space in such shops. The companies even do not mind giving additional benefits to the retailers even for a mere display of their products. As a result, the space for display of soft drinks is reducing every day. Intensive distribution of soft drinks is resulting in lesser average sale per retailer, which in turn, acts as a demotivating factor for the retailer. The soft drinks industry, initially, spent huge amouts to bag that space in the retail shops, for visi-coolers, POPs, Display Boards, etc. Soon they realised that such tactics have a very shortlived effect on the independant retailer and he takes no time in shifting favours if one brand stops meeting his ever increasing demands which the other brand promises to deliver. This poses a serious challenge to the soft drinks marketeers as their point of purchase visibility is going down gradually.



With Pepsi and Coke, fighting tooth and nail for that "top of the mind awareness" and "motivation" of the consumer, their advertisements have been reduced to a mere celebrity parade than anything else. Although how effective are these advertisements is a matter of research, one thing is suer that these advertisements are good for entertainment purpose. Rather than the products, viewers are surely interested in watching their celebrities doing a variety of acts, that too...free of cost. With the increasing costs of such advertisements and the fragmented nature of the electronic media, it is imperative for the soft drinks companies to have something which will give them a solid brand image as well as a fair amount of permancy.

I propose, soft drinks industry should do organised retailing. The concept of having Coke Cafe is one of the ideas. The idea shall be further explored and explained in my subsequent blogs. Readers are welcome to go through this and post their comments.