Friday, July 30, 2010

Can you take the heat?

With a mission to foray into the energy drink market of India, cola major Coca-Cola India recently unveiled its energy drink brand Burn in India. The initiative was to connect with the trendsetting, socially active and adventurous young adults. But the connectivity might not be easy with the existence of the big daddy Red Bull. Ricardo Fort (RF), VP-Marketing, Coca-Cola India reveals his Burn game plan to 4Ps B&M and talks about Coca Cola’s future momentum in India.

4Ps B&M: What was the thought behind Burn?
RF: The characteristics of Burn are potency and energy and it’s explained by the tagline ‘Can you take the heat?’ We needed this brand to complete our product portfolio. We are the largest beverage company in the market and our portfolio is also very very wide, so we thought we should have a brand in this segment.

4Ps B&M: You are now spearheading the marketing operations of Coca Cola in India. What will be the focus areas in 2010?
RF:
Innovation has always been the hallmark of Coca-Cola’s business strategy in India. And such innovations would be implemented in our marketing program also. Like with Burn, we launched Burn cars as a 360 degree integrated marketing communication involving on-ground consumer activations including experiential sampling and community marketing initiatives.

4Ps B&M: SBurn is one of your most successful offerings globally. How do you view the energy drink market in India?
RF:
Internationally, Burn is one of the most successful energy drink’s from the Coca-Cola stable and globally the energy drink market is growing at 50%, specially in countries like Russia, Ukraine, France, Italy and UK. In India, it’s growing at more than 75% and its launch in India is a testament of the evolution of the ready to drink packaged beverage industry in the country. We know we have a good market for Burn.

4Ps B&M: But then why did you keep the distribution channel so limited, specially when the rival (Red Bull) is so ubiquitous?
RF:
We have kept the availability of Burn very limited, it would be available only in night clubs of selected metros as our target customers are young adults. It would be made available in select premium channels and outlets in cities like Mumbai, Delhi NCR and Bangalore. We are constantly evaluating and exploring the opportunities to expand and diversify our beverage portfolio and all our initial launches would be available in selected places.

4Ps B&M: So are you following the strategy of testing waters before the pan-India launch?
RF:
We are experiencing a major transformation in the way people react to brands and you need to have an innovative marketing strategy. To support a brand, first of all it should be established in its target audience and then plans should be made for a pan India launch. So for our future brand launches too, we would be first testing the market and then launch it on a pan India basis.

4Ps B&M: Coca Cola India has been growing at an astonishing 37% per annum. What are your plans to support the growing demand?
RF:
We are constantly increasing capacity to support the growing demand. Almost all our products are category leaders in India. So to support the growing demand, not only the company but also the bottlers are trying to increase the capacity. Our brands like Thums up, Sprite, Limca have been leading the market and we would be enhancing the market share of these brands.

Angshuman Paul

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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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