Tuesday, May 25, 2010

POWER OF INNOVATION

It’s no mean feat to connect with rural consumers, but with ‘Jalsa’ and ‘ChotuKool’, Coca-Cola & Godrej have accomplished the task with ease

It’s not a cakewalk to think out-of-the-box and companies are aware of this harsh reality. But, if chiseled intelligently this bitter task can turn out to be a sweet verity for a company and that too without even an iota of doubt. Don’t agree? Ask Coca-Cola India and you’ll come to know that how through a unique consumer engagement initiative named ‘Jalsa’ this soft drink major has slotted its rural balls in the right net. And all that it took to accomplish this heavy duty chore were just few shows!

The company had organised shows (with an audience base of around 15,000-20,000) in small towns and villages of Uttar Pradesh and Bihar last year to connect with the locales. Based on a local “Folk Fare” narration through dance, poetry and plays, the show had professional dancers performing live on popular Hindi and Bhojpuri songs and the show generally lasted for about 2-3 hours. Interestingly, the company did all its advertising through an auto rickshaw, just three days prior to the event.

Moreover, in order to participate in ‘Thums Up Jalsa’ the consumers had to purchase a bottle of Thums Up (For instance, Coca-Cola gave one free ticket with every RGB bottle and two free tickets per 600 ml bottle). Not only this, sometimes the ticket also carried a unique number which gave consumer a chance to win attractive prizes like TV, music system, et al, in contests organised during the show. As Atul Singh, President and CEO, Coca-Cola India admits, “In the 3rd quarter of 2009, unit case volume growth for Coca-Cola India grew by 37% against the 18% increase in the prior year.” Apart from innovative thinking in terms of engaging consumers with the brand, the company has also introduced a mirco-nutrient drink ‘Vitingo’ especially keeping in mind the micro-nutrient malnutrition that is caused by the lack of sufficient micronutrients in the diet of the people rural India. Available in 18 gm sachet at Rs.2.50, Vitingo provides affordable nutritional beverage alternatives to the “bottom of the socio-economic pyramid” population.

It’s not just Coca-Cola, which is trying to exploit such opportunities through innovative thinking. In fact, FMCG major, Godrej, has already made its way into the hearts of rural customer and that too through a nano refrigerator – ChotuKool. The refrigerator was specially designed for the Indian hinterland. Red in colour, ChotuKool weighed only 7.8 kg and was priced at Rs.3,200 only. It even ran on battery and had no compressor. Result: Godrej had not only added 1,700 new small towns and 5,000 villages to its rural coverage in the last six months but is now looking at expanding its reach to 50,000 villages in the next three years. Now, that’s what you call the power of innovation!

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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