FMCG companies in India are all looking towards increasing their penetration into rural markets. Coke, the world's largest non-alcoholic beverage company is looking at semi-urban and rural markets as its future growth paths.
The 'Parivartan' Program- targeting retailers
Coke's new strategy involves training retailers in a program launched by the Coca-Cola University. In 2007, the company launched Coca-Cola University — a virtual, global university for all learning and capability-building activities.
The company calls this the "parivartan" program (meaning "Change" in English). Shop owners (traditional retailers) are given training on displaying and stocking products well. The goal of the innovative training program is to provide traditional Indian retailers with the skills, tools and techniques required to succeed in a constantly changing retail scenario.
Presentations (including audio/visual technology) in local Hindi language help small retailers (with stores less than 200 square feet in average size) to better understand the concepts involved. Each retailer also receives a Coca-Cola "Certified Retailer" certificate at the conclusion of the program.
The program, which debuted on Dec. 18 in Agra, will equip "mom-and-pop" shop owners with the skills, tools and techniques required to succeed in India's evolving retail landscape. All invited retailers attended the session, which allowed them to learn in a formal setting using leading-edge audio/visual technology and engaging presentations conducted in the local Hindi language.
Here are some of them: print a visiting card with your telephone number; around 80% of your business comes from 20% of your products, so build up visibility for these; try and display posters of discounts; organise a home delivery facilty; be courteous to your customers-SundayET. The content is structured around the four pillars of retail—customer, shop, stock and finance.
And this seems to be just the tip of the iceberg. The Programme has covered 20,000 retailers in North India so far. “Based on their feedback we are developing ‘Advanced Parivartan’ that will cover issues like shop layout and location, display, basics of finance, knowledge of credit card transactions, people management skills, among others.
For Coca-Cola it’s a big pie. There are around 12 million retailers in the country, out of which kirana stores account for over 90% of the Rs 7,40,000-cr retail business in India. But a company official maintained that these retailers would not be pushed to stock Coca-Cola products through this programme. Some of these retailers don't even stock soft drinks.
The idea was supposedly born out of a meeting at the World Economic Forum in Davos around two years ago when Coke’s global chief met the commerce minister of India and suggested running the programme in India. Also, as a token of goodwill gesture, an accidental death insurance of Rs 1 lakh is being provided free of cost to all the attending retailers as a protection against any eventualities.
In bigger cities the company has conducted Parivartan programme in classrooms or by hiring hotels. The classroom Parivartan programme has been organised across cities in UP and Punjab -Agra, Ludhiana, Chandigarh, Amritsar, Gorakhpur, Lucknow, Bareilly, Haldwani, Bilaspur, Kolkata, Faizabad, and Rajamundry.
The ‘Coca-Cola University on Wheels’ has also covered small towns such as Hoshiarpur, Mukeria, Nakodar, Phagwara, Nawanshahar, Malerkotla, Barnala, Khanna, Moga, Jalandhar, among others. Going forward in the future, Coca-Cola’s plan is to scale up this initiative by taking it across India.
http://article.wn.com/view/2009/05/03/CocaCola_India_launches_CocaCola_University_on_Wheels/
http://economictimes.indiatimes.com/Features/The-Sunday-ET/Coca-Cola-India-launches-Coca-Cola-University-on-Wheels/articleshow/4477620.cms
http://www.casestudyinc.com/Articles/Coke-Strategy-Training-Retailers.html
http://www.thecoca-colacompany.com/citizenship/news_india_retailers.html
