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Excerpts Contd...
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Maaza
Maaza, the mango drink constituted around five percent of the company's total volume. The mango-flavored fruit juice market was valued at about Rs 300 crore...
Advertising and Sales Promotion
In the late 1990s, CCI identified four major passions of Indian consumers - music, popular sports events, food and movies.
Coke even had its own template - Eat Cricket (or Movies or Music) Sleep Cricket, Drink Only Coca-Cola - for connecting its brand with the four obsessions...
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Distribution
To reach India's 300 million soft drink consumers, CCI distributed its products in over 700,000 retail outlets serviced through trucks, converted three-wheelers, tricycles and pushcarts. In the urban areas, CCI moved bottles directly from the plant to the retail outlets. However, in the rural areas, the company used a three-tier hub-and-spoke distribution model to ensure deeper penetration...
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Concluding Notes
For the fiscal year 2004, CCI along with its bottlers, planned fresh investments of about Rs 70 crore. This was in addition to its investment of Rs 100 crore in 2003.
The company planned to expand the number of retail outlets by over 23 %. According to Sanjiv Gupta, who became the president and CEO of CCI in July 2003, CCI would combine the affordability strategy with aggressive cost reduction to boost sales and profits. The company proposed to follow a high-volume, high-growth, low-cost model for sustained long-term growth...
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Exhibits
Exhibit I: CSE Findings (2003)
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