Consumer Behavior Assignment: - HVM For Sprite

ABOUT THE COMPANY Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. With access to 53 of Parles plants and a well set bottling network, an excellent base for rapid introduction of the Companys International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this was based on numerous commitments and stipulations which the Company agreed to implement in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident shareholders by June 2002. Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range

of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the Company. The complexity of the Indian market is reflected in the distribution fleet which includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.

Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of Indias new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide. Reason for selection:sprite has a market share of 14 per cent while Thums Up has a 15 per cent share and the lemony drink has reached a tipping point where it is poised to overtake Thums Up. Following the two Coca Cola brands, Sprite and Thums Up, is Pepsi, which industry estimates puts at having a 11.2 per cent market share. Sprite is also the largest selling sparkling (carbonated) soft drink brand in China as well, according to industry players. Brand Coke itself follows Pepsi with a 7.5 per cent share. Several other brands such as Fanta and Mirinda with a similar share of the market as Coke jostle for the fourth place in terms of share. The cola segment of the market is around Rs 5,000 crore in size, while the lime and lemony segment is much larger at Rs 6,500 crore, according to industry estimates. The orange segment stands at Rs 2,700 crore. The overall market for CSDs is around Rs 14,000 crore annually.

Sprite is all set to unveil its new summer campaign with a tagline of chalo apni chaal. It will continue with its characteristic no-nonsense campaign which has been resonant with its target audience of youth. Its earlier campaign of Sprite quenching thirst, period, while other ad planks were mere nonsense, also struck a chord with its audience. The two new TVCs give a flavour of different situations where the Sprite guy is faced with competition and he makes his own unique move to achieve what he wants. Sprites success has to do with the fact that consumers are quaffing more clear drinks th an cola and also by the fact that the drink tastes fine even when its not cold, unlike a cola. With huge power cuts around the country, this has helped lemony drinks cause, apart from Sprites edgy advertising. ACV Laddering:Consumer Profile:Name : Rutvik patel Age 23 Occupation Student Place Bangalore Interview Part 1:Interviewer: - Do you like sprite more than dark carbonated soft drinks. Respondent: - Yes. Interviewer: Would you be more likely to drink a sprite with friends, why is that? Respondent: Yes, because I like sprite more than dark soft drinks like cock and Pepsi, I like its transparent color and its taste also. No extra additives. Interviewer: When was the last time you had a sprite? Respondent: Last weekend.

Interviewer:

Okay, why sprite last weekend?

Respondent: I was sitting with my friends, they were drinking and I dont drink so I had a bottle of sprite. Interviewer: Why was it important to not get wasted at the party last weekend? Respondent: When I am at a party I like to socialize, talk to my friends, and hopefully make some new friends. If I get wasted I am afraid I would make an ass of myself and people wont invite me next time. Summary:V C C A Belonging Socialize Avoid wastage Clear and transparent

Interview part 2:Interviewer: - what time you would like to have sprite. Respondent: - Not very sure, but generally after work when I feel tired. Interviewer: - Why when you tired you want sprite? Respondent: - It gives me feeling of freshness. Interviewer: - What would you drink if you dont have a sprite available to you? Respondent: - probably I will go for 7 up Interviewer: - what is better in sprite then a 7 up Respondent: - Not very special, I just like sprite. Interviewer: - What so special about sprite that make you drink it? Respondent: - Nothing very special, but I love to drink sprite with my friends and some times with it, I can spend time with them. Summary:V C C Good social life Able to talk to my Friends Dont fall asleep

C A

Freshness Refreshment

Interview part 3:Interviewer: - what would you like to have, a small bottle of sprite or a bigger one? Respondent: - Smaller one. Interviewer: - Why smaller one? Respondent: - I dont want to drink a lot, it is just for refreshment. Interviewer: - Why not a bigger bottle? Respondent: - I cannot drink it all and I have to throw it away. Interviewer: - So how do you feel when you have to throw it away? Respondent: - It makes me mad because I am wasting my money Interviewer: - what is the importance of money for you? Respondent: - I am not from a very rich family so I have to understand my responsibilities and should spend accordingly.

Summary: V C C C C A Responsibility to family Waste money Throw it away Gets warm Too much to drink Larger size

Interview part 4 Interviewer- you said that you most often drink sprit with your friends. Why is that? Respondent- I never thought about that really. Interviewer- Is there a change in your drinking habits compared to a couple of years ago? Respondent yes I drink other brand also sometimes. Interviewer Why is that? Respondent Now I am in collage. So because of friends I came across lots of other brands also. And I found them good also. Interviewer So, why you are still drinking Sprite?

Respondent I love the color of bottle and I feel good when I drink sprite. Interviewer- Why is that important for you? Respondent - I think it is related to my image that I am a student. Summary Part 4V Like my Friends (Belonging) C sophisticated image C More masculine A bottle shape A fancy label Interview part 5 Interviewer- what do you think about the carbonation in Sprite? Respondent I dont think there is any benefit of carbonation in the sprite. Interviewer- Then why do you like it in a sprite? Respondent It just gives me a feel of having a drink that is crisp and refreshing as well. Interviewer Is that important for you? Respondent- yes, it helps to quench my thirst. Interviewer- How you feel after that? Respondent Accomplished Summary part 5 V C C C A A Accomplishment Reward Thirst-quenching Refreshing Crisp Carbonation

Total Summary of the interview Values:1. Belonging 2. Good Social life 3. Responsibility 4. Accomplishment

Consequences 1. Socialize 2. Avoid wastage 3. Able to talk to my friends 4. Dont Fall Asleep 5. Freshness 6. Money wastage 7. Throw it away 8. Gets warm 9. Too much to drink 10. Sophisticated image 11. More masculine 12. Refreshing 13. Thirst quenching 14. Reward Attributes 1. Fancy label 2. Bottle shape 3. Large Size 4. Refreshment 5. Clear and transparent 6. Crisp 7. Carbonation

Hierarchical value map for Sprite:-

Values

Responsibility

Good Social Life

Accomplishment

Belonging

Waste money
Able to talk to friends

Reward
Socialize

Sophisticated Image

Throw it away

Dont fall asleep

Thirst Quenching

Consequences Gets Warm

More masculine

Refreshing
Freshness
Too much to drink

Avoid wastage

Fancy label
Attribute

Bottle Shape

Large Size

refreshment

Crisp

Carbonation Clear And transparent

Conclusion:According to the HVM for this Sprite we can understand that all the ladders finally terminates into main four value for the customer. Or we can say product has got 4 main important values. Also in those value Belongings has got the maximum potential for the product. So company should strategies accordingly to have a better positioning for the product and for better market share as well. Submitted By: - Chetan K Dubey Marketing IJK , 1221209